[guru_max]

The hike for heavy good vehicles are absolutely crazy, one could even tolerate the hike for bikes and cars. EV trucks and buses have a long way to go.

[fordday]

Originally Posted by srini1785

There is method in madness. The last line holds the key to this craziness. Govt policy guidelines are getting more clearer now.

I can understand the imposition of higher levies on buying a new car. It is also good policy for getting incentives on buying EVs and on scrapping your old car.

But hiking renewal charges to such higher amounts is absolutely crazy. A car with all its fitness in place should not be charged so much for renewal. Running an old car means not adding one more new car to the chaos.

The govt is trying or rather forcing people to scrap your old and buy a new car. This could only mean benefits for the car manufacturers and in turn the political party whom these manufacturers fund.

Overall its a loss for the common man.

[PGA]

I always thought that registration and road tax issues were in States domain and not in Centre's. But then if Centre recommends, States will have to go along and implement.

If these proposals come through then what I feel from here on is:-

Second hand market may see quite a bit of decline in availability. Hinterland has huge demand for pre owned cars of metros. And my experience is that they don't care much about registration or other formalities unless struck in some legal tangle. So the nett result may be steadiness of prices or may even rise.

Sustainability of public (bus) transport, private players in my area cut huge corners to maintain profitability. To an extent new engines on buses which have speed limiting governor issues get replaced with older models to enable speeds beyond 80kmph. In metros too two wheelers changes hand so rapidly amongst the young blue collar workers and from what I hear the vehicles keep on moving ahead on affidavit declarations. Wonder how is Govt going to manage all that except in case of initial purchase

These changes are going to further dampen the purchase decisions. Only issue now I feel is Govt must maintain certainity of policy and we will all evolve sooner than later.

[Sheel]

From my friend who is M&M dealer, has won the highest selller award for Scorpio. Indeed tough times ahead.

[volkman10]

Slowdown continues, no relief seen in the horizon.

- Maruti not to push stocks at dealerships before festival season

Manufacturers of four- and two-wheeler segment traditionally start pushing inventory to dealerships from August in anticipation of higher sales during the festival season

Vehicle manufacturers generate at least a third of their overall retail sales in a fiscal during the festival season

The decision of not pushing stocks at dealerships is a prudent approach since most dealers have been struggling due to low retail sales and lack of credit availability from banks and other financial institutions like non-banking financial companies.

Link

[ramzsys]

Originally Posted by fordday

But hiking renewal charges to such higher amounts is absolutely crazy. A car with all its fitness in place should not be charged so much for renewal. Running an old car means not adding one more new car to the chaos.

It's targeted at the BS 2,3 commercial vehicles i guess. Emission centers keep giving them 'pass' certificates and they happily belch blue/black smoke.

[Mukund]

More bad news for Hyundai dealers and the industry in general.

Hyundai Motor India dealers feel squeeze as loan norms tightened

Come October, some dealers of Hyundai Motor India may need to furnish collateral of anywhere between 25% and 50% of the loan amount taken from State Bank of India, depending upon the lender’s internal rating. However, there are dealers who have already furnished the collateral at the time of renewing their loans or getting them enhanced.

An SBI circular dated March 27 noted that dealers would need to provide a minimum 25% or 50% of collateral security based on a rating obtained when the loan was renewed or enhanced or a period of six months, whichever was earlier. The collateral can be an immovable asset, fixed deposits or specified securities. Earlier, lenders rarely asked dealers for any collateral. In a letter to Hyundai, SBI had communicated it has reduced the credit period from 90 days to 60 days, with a 15-day grace period to pay back the loan.

Post the grace period, interest rate will be levied at the rate of 6% compared with the 2% levied earlier.

The rules relating to dealer financing are understood to have been tightened for dealers of Maruti Suzuki. A senior bank executive said the terms were slightly different for Maruti. Sector experts noted the slowdown in the automobile industry and the closure of some 200 dealers has made lenders understandably cautious. Emails sent to Hyundai Motor India and Maruti Suzuki did not elicit a response till the time of going to press.

In a written response the lender said: “SBI is one of the biggest providers of credit for financing of auto dealers and auto loans to individuals. In view of the current slowdown in auto sector, the Bank is continuously reviewing its exposure to the sector. The Bank is actively engaged with the auto majors, dealers and the industry associations like Federation of Automobile Dealers Associations (FADA). The Bank in consultation with auto majors has taken steps to provide support to the dealers for inventory funding by them to tide over the current phase.

Responding to the recent downturn in the auto industry, we at SBI proactively got in touch with our customers, Original Equipment Manufacturers (OEMs), dealers as well as their associations such as FADA for gaining insights into their issues and modifying our product suitably so as to ensure that the sector does not face any stress and the Bank is committed to take any further steps necessary in this regard.”

“A credit period of up to 90 days excluding grace period will be provided selectively by the sanctioning authority to dealers, if recommended by Hyundai,” the circular read. It also said this will be subject to certain conditions, such as in cases where a minimum of 25-50% collateral is available and the dealer is availing the inventory funding with the bank for the last two years. Other conditions include a minimum of 20% coverage of the banks retail loan portfolio of the dealers total retail and a higher rate of interest where credit period is beyond 60 days.

Source.

[tj123]

Looks like there is no slowdown for Hyundai Venue, they managed to get 50K bookings in 60 days. Similarly Hector had to close their bookings. In my view this is an initial surge in demand for a new product which may fizzle out in due course of time.
Source :https://economictimes.indiatimes.com...w/70449021.cms

[volkman10]

Originally Posted by volkman10

Bosch announces 5-day production cut at TN plant.

--

Bosch to suspend production for 3 days at Bidadi plant.

The company had earlier announced to suspend production at Bidadi plant for one day on July 29.

it has decided to shut manufacturing at the plant for three days in order to adjust production to meet the demand for products and to avoid unnecessary buildup of inventory

Link

[PGA]

https://economictimes.indiatimes.com...w/70477408.cms

Almost 70% drop in Alto and Wagon R and overall 36%, I think this is huge and the fine prints tells us where the pain is most

[tarik.arora]

Originally Posted by PGA

https://economictimes.indiatimes.com...w/70477408.cms

Almost 70% drop in Alto and Wagon R and overall 36%, I think this is huge and the fine prints tells us where the pain is most

Decline in Alto volumes could be the S-Presso impact. Is maruti replacing Alto with S-presso? I initially thought that both products will co-exist.

But yes, the overall decline is very very steep. I don't think the industry would have declined by this margin and thus Maruti will loose big on market share.

[padmrajravi]

Alto and WagonR sales decline can only mean one thing.The lower middle class is short of disposable income. A major chunk of entry level car sales is the first time car owners. Somewhere there is a difference in the picture of economic condition that governement is painting an the actual situation out there. It is a bigger problem than automotive sales decline. The whole economy will start to go down with a domino effect.

[volkman10]

A new low for the Auto Industry, almost all report a double digit negative growth, the same is reflected in most sectors:






Link

[ashis89]

Originally Posted by padmrajravi

Alto and WagonR sales decline can only mean one thing.The lower middle class is short of disposable income. A major chunk of entry level car sales is the first time car owners. Somewhere there is a difference in the picture of economic condition that governement is painting an the actual situation out there. It is a bigger problem than automotive sales decline. The whole economy will start to go down with a domino effect.

These small cars are popular among OLA and Uber operators. There's definitely lesser new cabs on the road these days. So some part of this fall could be attributed to cab sales.

[vinit.merchant]

Originally Posted by PGA

https://economictimes.indiatimes.com...w/70477408.cms

Almost 70% drop in Alto and Wagon R and overall 36%, I think this is huge and the fine prints tells us where the pain is most

The reporter has analysed it wrongly here.
Old WagonR included in Mini, whereas new one included in Compact.
This will obviously show a grim picture of Mini cars and slightly better picture of the compact cars, since Old Wagon R is discontinued.