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Germany may ask India for rollback of duty on CKd kits for luxury cars

 

NEW DELHI: Germany may ask India not to impose higher import duty on completely knocked down kits of luxury cars and SUVs.

German Finance Minister Wolfgang SchAuble, who is expected to accompany Chancellor Angella Merkel on her India visit beginning Tuesday, is likely to take up the issue with his Indian counterpart, Pranab Mukherjee.

Luxury carmakers including Germany's Audi, Volkswagen and Mercedes Benz are facing higher duty after the finance ministry changed the definition of 'completely knocked down' (CKD) kits in this year's budget to bring in components like pre-assembled engines, gear boxes, transmission and chassis under import duty.

Last fiscal, luxury car sales grew 60% to 15,702 in India, the second-fastest growing car market after China. The finance ministry has sought the view of the department of heavy industries on the issue, but is not open to any change in the regime, a government official told ET.

"Deferring implementation of duty at this juncture could open a can of worms leading to legal issues on car assembled and sold from the date the duty came into effect and date of any change," the official said.

The ministry's move on CKD kits , aimed at promoting domestic production of such components, has led to import duty on some components rising to 30%, from 10% earlier. Carmakers are seeking a status quo, as duty at 30% takes the total tax incidence to 80%, inclusive of countervailing duty and local levies.

A finance ministry official said a further cut in duty was not feasible at this juncture, especially on luxury cars. "The government has already reduced the duty to 30% from 60% in the original budget proposal," the official said. Mukherjee had reduced the duty from 60% during his reply to the debate on the Finance Bill.

"We have asked the government in give a timeframe for companies to develop facilities and adhere to the new policy on the CKD. Car companies could develop the required infrastructure to localize components and confirm to the new policy in 18-24 month period," Vishni Mathur, director-general of the Society of Indian Automobile Manufacturers, said. India is a growing market for luxury carmakers. The segment swelled 70% to 15,000 units in FY11, driven by demand for sedans like the BMW 5Series, Audi A6 and Mercedes-Benz C class.

Source: Economic Times 30/05/2011

 

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Car sales slow down on high rates

Costlier Fuel,Rising Raw Material Prices Likely To Hurt Industry Output


New Delhi: Spiraling fuel prices and hardening interest rates singed car sales that lost steam and veered towards a slowdown with demand coming down and footfalls falling at showrooms.Though two-wheeler sales remained healthy with Hero Honda and TVS clocking double-digit growth,Maruti Suzuki,Indias largest car maker,and GM saw marginal increase in sales while Honda reported a decline.
Poor show by car makers along with a not-so-healthy demand for durables does not augur too well for industrial output,where growth has already been dragged down by the capital goods industry.Economists say higher interest rates would further deter companies from expanding capacity and may result in modest growth in factory output.The first signs of overall moderation in economic expansion emerged on Tuesday when the Central Statistics Office release data that showed GDP grew 7.8% in January-March 2011,the slowest pace of growth in five quarters as higher interest rates and input costs pulled down manufacturing and industrial growth.
RBI has had to raise key policy rates nine times since March 2010 to tame inflation,which is nearing the double-digit zone.The central bank and the government have decided to accord inflation higher priority over growth.
Sales numbers released by auto companies for May showed fatigue creeping in as companies saw demand slowing down despite offering discounts.Maruti appeared to be troubled as its bread-and-butter small car portfolio (cars like Alto,Wagon-R,Zen,Swift,Ritz,A-Star ) saw numbers go down by 3% to 61,048.This was the second straight month when its small car portfolio has seen negative growth.
However,gains in sedan portfolio of SX4 and Dzire helped the company make up for this loss and finish the month up 4% at 93,519 units against 90,041 units in May last year.Mayank Pareek,managing executive officer (sales & marketing) at Maruti Suzuki,said interest rates and fuel prices were hitting demand badly.So despite having a 23% increase in inquiries at dealerships,sales have managed to grow only 4%. Pareek said while the car industry did expect sales to moderate,the slowdown was more than anticipated due to a variety of negatives.This is bad,and we have a bad Indian summer.
Hyundai,however,had a smoother month as its domestic sales grew 15% at 31,123 units,mainly on the back of the companys new sedan Verna which was launched last month.The market has slowed down considerably after the first quarter of the year because of increasing interest rates and rising fuel prices,among other factors, said Arvind Saxena,the companys marketing and sales director.
GM also complained of slowdown pangs.Although we have recorded a marginal growth,the numbers are not on the desired lines as the footfalls in the show-rooms have started to come down.Given the hike in interest rates,fuel prices,commodity prices,we expect the market to remain depressed in the coming months as well, P Balendran,vice president at GM India,said.
Woes for Honda continued as the company's numbers went down 43% in May.The company,that has been forced to cut production due to supply constraints from the quake-and-tsunami-hit Japan,is also facing stiff competition from new models like Volkswagen Vento and Hyundai Verna.
Analysts said that numbers will stay depressed in the coming months due to the combined build-up of negatives.The only comforting factor for the industry is that these months are traditionally weak months.
The rising cost of input materials had also seen companies increase prices of vehicles,which has also hit their affordability.Margins are already under pressure and it will not be possible for firms to absorb the higher manufacturing costs.This will also give them less elbow room to offer discounts

 

 


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Source: Times of India 02/06/2011
ashikawa2011-06-02 09:00:46

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Maruti strike: 11 workers sacked, production halted

Car maker Maruti Suzuki India on Monday sacked 11 workers employed at

its Manesar facility, which has been crippled by a strike since

Saturday.

"The services of 11 persons, who were inciting workers

to go on an illegal strike and created an atmosphere where safety of

people were in danger, have been terminated," Maruti Suzuki India

chairman R C Bhargava told PTI.

The company's stock was trading

at Rs 1,215.50 apiece in early trade on the Bombay Stock Exchange on

Monday, down 1.46 per cent from the previous close.

Bhargava

said the workers had gone on strike without any notice but added the

management is continuing the dialogue with the striking workers.

Refusing

to accept the worker's demand, Bhargava said: "There is no other

union... If they have any issue, they should have at first written to us

and discussed with us."

He, however, said the company is hopeful of finding an amicable solution soon.

Source: Rediff/Business Standard

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Here's the actual breaking news: 2 Audi A7 test mules were spotted on NH-8 which went zooming past by me. I was in Honda Civic and was in no mood to speed up and try to match up!

 

 

 

 

 

 

 
BornFree2011-06-09 16:58:20

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Audi begins production of its next generation A6 in India

 

By CarDekho Team 09 Jun, 2011 at 6:09:00 PM

Audi, the German luxury car manufacturer, has announced the start of production of the all new Audi A6 in India in Aurangabad. More than 2,000 units of the next generation Audi A6 will run off the production line every year, in the initial years, at the Group

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Ratan Tata: The JV with FIAT is not going as per the expectation and the JV is to be critically examined. A line in CNBC TV18.

What will happen to Vista / Manza if the JV is broken. Does FIAT plan totally new dealership and ASS to change it's image as orphan child..

Just Wait..

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Ratan Tata: The JV with FIAT is not going as per the expectation and the JV is to be critically examined. A line in CNBC TV18.

What will happen to Vista / Manza if the JV is broken. Does FIAT plan totally new dealership and ASS to change it's image as orphan child..

Just Wait..

The divorce, if and when it happens, will help Fiat immensely. VW a relative new comer is in an unassailable position, whereas Fiat which was one of the early entrants to the Indian market, is fighting for it's survival. Same can be said of Mitsubishi HM marriage; where HM is nothing but a 'gangrenous foot' awaiting amputation.

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You are right DD, if FIAT urges to go ahead alone. But what I feel is, FIAT has born with lack luster attitude and playing game according to their plans, without reciprocating to the customer's requirement. See Uno, palio and Siena, were fantastic car and were given a good lift by ppl, but they can not reciprocate to the needs of customer for better ASS, F.E. aspect and up-gradation of car from time to time (learn from Hyundai's Santro). They were not able to change the face, interiors, other small cosmetic changes for years and so went in to COMA. Again they take the support of TATA for lifting themselves from the bed. So the PPL at Fiat are lazybones and deaf. This is my view. If the JV fails, (actually it is already a failure for FIAT) FIAT needs to rethink about their plans for India. They have to offer new models, up-gradation to current cars, dedicated service support, Indian style indicator leavers etc. But I feel they will supply engine to TATA for sure. Let's see what happens.

no sms lingo please.

sgiitk2011-06-14 10:08:15

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..What will happen to Vista / Manza if the JV is broken. Does FIAT plan totally new dealership and ASS to change it's image..

Tata will have to pay for each & every sold Quadrajet diesel & Safire petrol engine to Fiat, now which they're getting for free i.e By doing not any favour to the Fiat cars, neither in sales nor in service.

Instead it had even highlighted the another weakness of TML.

IMHO, Independently Fiat would have done better in our Market, see what the Nissan is doing with its Tiny Alto-sized car, An age-old Diesel engine & mere 21 dealers across the country.

Fiat is still having better product lineup though & Another chance to take the market with the launch of Fiat Punto EVO with Exclusive Display boutiques might not prove fruitful for Fiat as presently car seekers are very much scared of circular Red logo & they don't want to take risk with it.

Fiat needs to do what GM did few years back i.e To introduce another sub-brand for branding their cars or to introduce a new innovative logo to start a fresh beginning.

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I agree with the consensus. Tata is doing nothing but adding more burden to an already weakened brand in Fiat. The sole gainer from this JV has been Tata and all Fiat has to show in exchange is customer complaints for bad quality parts and customer complaints for bad service standards aka normal Tata service.

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UPDATED COROLLA ALTIS LAUNCHED!

Toyota Kirloskar Motors (TKM) has launched an updated version of its Corolla Altis saloon.

The refreshed model now comes with new set of headlamps, refreshed grille and bumper, updated rear lamps. The interiors now feature darker mock wood trim.

The petrol engine has been tweaked and will now deliver 138bhp, 7bhp more than the earlier model.The updated Altis now is equipped with new gearbox options; the 5-speed manual is now replaced by a new 6-speed unit while the top-end automatic version gets a new 7-speed CVT unit. Diesel models will feature the same 6-speed manual gearbox.

The prices of the petrol version have gone up by Rs 15,000-24,000 while the diesel prices have been hiked by Rs 15,000-30,000 depending on model. The Altis petrol is now priced from Rs 10.53 lakh to Rs 14.77 lakh while the diesel variant starts at Rs 11.46 lakh to Rs 14.55 lakh; all prices ex-showroom Delhi.

http://autocarindia.com/news/updated-corolla-altis-launchedasethi9192011-06-16 13:04:27

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Shocker! Diesel costlier by Rs 3/litre; LPG Rs 50 per cylinder

Get ready for a major shock! Diesel -- from Friday midnight -- will cost Rs 3 per litre more, while the price of cooking gas cylinder has been increased by a whopping Rs 50 per cylinder.

The price of the poor man's fuel -- kerosene -- too has been hiked by as much as Rs 2 a litre.

The decision to hike fuel prices was taken by the Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee. The increase was announced by Petroleum Minister Jaipal Reddy in New Delhi late Friday evening.

This is the tenth hike in the price of fuel in just over a year. With this hike, inflation is likely to rise sharply once again.

Source:rediff

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I guess one will have to sit down again with the calculator and do the math all over again to figure out if the hike in diesel prices and tentative increased insurance costs (as mentioned in another topic) will still make the diesel car profitable or not.

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Anyday i would say that the diesel car is worth buying. Even though many people's usage will not require a diesel car, but still you will know the benefit of a diesel car during long trips. Plus taking the intervals between petrol rate and diesel rate hikes, it is always preferable to buy a diesel cars because of the reason that diesel rate hikes are less frequent.

 

Out of topic-please pardon me- I do not understand what is the exact reason for such an increased inflation rate and what is our great Congress government doing.What is India gonna happen in the near future and growth of India in leaps and bounds is boon or a ban for a common man.
rki20072011-06-26 15:18:49

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Out of topic-please pardon me- I do not understand what is the exact reason for such an increased inflation rate and what is our great Congress government doing.What is India gonna happen in the near future and growth of India in leaps and bounds is boon or a ban for a common man.

Forgive me also for going OT: Couldn't resist: Corruption+Inefficiency+Frittering away resources in all 'senseless' Yojna's (making people lazy)= Inflation.

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Out of topic-please pardon me- I do not understand what is the exact reason for such an increased inflation rate and what is our great Congress government doing.What is India gonna happen in the near future and growth of India in leaps and bounds is boon or a ban for a common man.


Forgive me also for going OT: Couldn't resist: Corruption+Inefficiency+Frittering away resources in all 'senseless' Yojna's (making people lazy)= Inflation.

 

Ravi Sir you stay in one of the most corrupted states in India. A change in the government has happened. Lets see what AMMA (That is what the whole state calls, i do not know for what) has got to do.

 

Karnataka is also suffering with rotten politics here. Everyday a big Hungama like proving majority and safegaurding of the chair is happening. 

 

Agree with you completely. Laziness has developed to the most possible extent. What is that to give TV, mixie and grinder. What sheer nonsense is this.Is buying votes legally permitted by these means.

 

I hope no political party reads this.smiley36.gif
rki20072011-06-27 04:00:34

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Type R is a special car

almost 200bhp

will be sensational if it is launched

but wimps here will ask for a diesel one so it will flop

time to make diesel more expensive than petrol

bikers use petrol after all

 

 

 

 

Post edited; Please use regular fonts & sizes.
BornFree2011-07-01 16:50:56

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Renuka Kriplani just tweeted that the Jazz is being offered with a 1.7lac DISCOUNT! I think its a necessary step for Honda. Feed bad though since its a good car. Also feel bad for current owners who shelled out 7.5-8 Lacs.

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Jazz is being offered with a 1.7lac DISCOUNT! I think its a necessary step for Honda. Feed bad though since its a good car. Also feel bad for current owners who shelled out 7.5-8 Lacs.

 

I have always been emphasizing the fact that Honda cars in India don't warrant the Premium they come with, especially the case with Jazz.

 

Its a gala time for new owners, nothing to feel bad about. This is what should have been...

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Yeah mighty attractive for Polo, i20, etc. petrol buyers.

 

Could this turn out to be a golden ditch for ones looking out for diesel cars & ending up buying Jazz..!

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Jazz is being offered with a 1.7lac DISCOUNT! I think its a necessary step for Honda. Feed bad though since its a good car. Also feel bad for current owners who shelled out 7.5-8 Lacs.

 

I have always been emphasizing the fact that Honda cars in India don't warrant the Premium they come with' date=' especially the case with Jazz.

 

Its a gala time for new owners, nothing to feel bad about. This is what should have been...
[/quote']

 

I also personally have the same thing in my mind. So much of hype and premium pricing for the Honda products in India is not worth the rupee. (No offence meant, just a personal opinion).

 

As far the existing owners of Jazz, this news may not worry them much because a person who has invested close to 8.25 lakhs for Hatchback will never worry for these small price changes.

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You won't believe that i had these wild dreams of Jazz prices being slashed like this while finalising Polo. But never disclosed as i thought that people will laugh at me. Finally 'Taren Jameen Par'. . This shows that Honda charged insane premium in Indian market and ripped off customers for a long time. Those who just brought a Jazz might go blue after hearing this and a good news for seekers indeed.ashikawa2011-07-11 17:01:28

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