[volkman10]

Expect a muted sales this festive season, Maruti Suzuki to have 2 'Non Production' days in September.

Maruti Suzuki has decided to shut down production of passenger vehicles in Gurugram and Manesar plants in Haryana for two days( on 7th and 9th September, 2019).

Link

[tarik.arora]

Originally Posted by volkman10

Expect a muted sales this festive season, Maruti Suzuki to have 2 'Non Production' days in September.

The news on GST reduction will make customers wait and watch. September will see steep fall in numbers because of this. If GST reduction goes through this month, we may see some pull in demand for the next couple of months.

[AWD]

The Auto Industry has the Solution to bump up sales, its in their own hands, they themselves can do it. Then why are they waiting for the Govt. to offer more sops! Auto Industry has looted the gullible Indian public all this time & has been spoiled by the Govts. by offering sops all the time. Its a rich industry & running around with a begging bowl all the time makes no sense!

Go on reduce the prices of vehicles considerably to reasonable levels(almost half or more) & help yourself for once. Give back to the public what they've given you all this while. After doing this you'd be in a position to ask Govt. for cuts. Do your part first, the Country has far greater issues which need funds infusion.

[srishiva]

I think its the complete ownership cost that people are getting uncomfortable about. The fuel prices are high too and govt has made too much money from it.

Looking at recent measures announced by govt, I was surprised to see so much taxing that has been happening in every nook and corner of economic activities.

[Chetan_Rao]

It's usually a variety of factors. When people are concerned about their overall financial health, they won't be willing to spend a large chunk of their earnings and savings on a discretionary item. Cars still are a (relatively) rich man's toy in India.

Discounts and tax rebates may drive some short-term spurts in sales, but the overall situation is far more complex to be solved by a handout or two.

[Dry Ice]

Originally Posted by srishiva

I think its the complete ownership cost that people are getting uncomfortable about.

Originally Posted by Chetan_Rao

It's usually a variety of factors. ..
.. but the overall situation is far more complex to be solved by a handout or two.

+1.

More than the upfront cost, its the regular expenses that are going through the roof. Service, spares, insurance (regular hikes in TPC), fuel, tolls, parking etc - all these do pile up.

For NCR guys (for now - may spread to other cities/states too) there is another headache of resale of their diesels.

Risk of harassment the moment you step out of your vehicle's registration state has proportionately gone up just as the traffic fines.

Then there's also the age old problem of moving states (road tax refunds).

I doubt a tax cut on the upfront cost will make any significant difference in the current scenario.

[adi.mariner]

The prices of cars have increased multi-fold. Also there are no reasonable upgrade options without paying a hefty premium. The increase in Fines as per the new Motor Vehicles Act could be another deterrent to the sale of Cars. It has become expensive and inconvenient to use your car (specially inside the city) when there are other options like Scooters/Public Transport.

[volkman10]

India likely to drop to 5th Position behind Germany in passenger vehicle sales in 2019.

Between 2015 till 2018, India was the fastest growing among the top light vehicles markets.

With domestic sales continuing to slide month on month due to an economic slowdown and rise in cost of ownership, Asia’s second biggest economy may record the steepest fall in production among the world’s top 10 passenger vehicle markets this calendar

Many consumers around the world are opting to use other transportation solutions instead of buying cars.The new technologies, better communication, and the increasing problems and costs of owning a car is forcing many people to stop buying cars.

Link

[Ithaca]

Nitin Gadkari, Minister of Road Transport & Highways acknowledges slowdown in auto industry. Petrol, Diesel Vehicles May Get GST Cut

Speaking at the SIAM Conclave, Nitin Gadkari, Minister of Road Transport & Highways has acknowledged that the Indian automobile sector is going through a slowdown and is in need of help. The Cabinet Minister has assured that he will take up SIAM's request of reducing GST on petrol and diesel vehicles with the finance minister.

"The festival season is around the corner, it is imperative that these decisions are taken quickly and announced without delay so that the industry could hope for a better festival season that could harbinger a recovery in the industry," Wadhera said.

Source: TV18 News

Admitting that the automobile industry is witnessing a slowdown, Road Transport and Highways Minister Nitin Gadkari on Thursday said the government was mulling steps to help create demand in the sector, including exports incentives and Goods and Services Tax (GST) incentives.

Source: The Hindu

Now that the minister himself is acknowledging a slowdown in the auto sector, seems like it would be advisable to hold those purchases till it becomes clearer and manufacturers / dealers start doling out the new prices.

Moderators may create a new thread in case they feel this news deserves its own thread.

[cool_dube]

Originally Posted by AWD

Auto Industry has looted the gullible Indian public all this time & has been spoiled by the Govts. by offering sops all the time. Its a rich industry & running around with a begging bowl all the time makes no sense!

Could not agree more! I picked up a Safari EX 4x4 in 2009 at 10.xx lac on-road in Bangalore - beat that! Things have changed drastically since then and one does not get to see VFM pricing anymore. We as car buyers have been milked incessantly by greedy car manufacturers as well as ridiculous govt. policies like atrocious road tax in states like Karnataka. All the euphoria around getting car loans at the drop of a hat has fizzled out, with people realizing the reality of "EMI-trap" they are falling into, blindly aping the mortgage-driven society of the Western world.

Originally Posted by Dry Ice

More than the upfront cost, its the regular expenses that are going through the roof. Service, spares, insurance (regular hikes in TPC), fuel, tolls, parking etc - all these do pile up.

Spot on! Overall car ownership experience has become a very costly affair for a middle-class Indian, and definitely not worth it. Insurance prices are at all time high. Authorized service centers are ready to fleece uninitiated customers at the smallest opportunity with insane labor charges, inflated spare costs, unwarranted jobs like "silencer coating", "A/C disinfecting", etc. Add to that the sky-high fuel costs, toll charges for ill maintained roads, bumper to bumper traffic in metros (leading to more fuel consumption and more wear and tear, leading to more maintenance costs), and you are bound to have a low sentiment when it comes to buying new cars. It makes much more sense to stick to one's old car (which were built to last much longer, compared to today's cars) or buy a well-maintained used car and save on quite a few heads associated with buying a new car - road-tax, insurance, etc.

Net-net, at the risk of sounding like a sadist, I am rather enjoying this scenario and would fervently wish that the govt. does not dole out unnecessary incentives at the cost of taxpayer's money.

[wheelguy]

Indian auto industry growth story is about to collapse, says Guenter Butschek, CEO Tata Motors, at SIAM convention.

Indian automobile industry growth story is on the verge of collapse thanks to uncertainty in consumers’ minds, electrification and BS-VI transition, Guenter Butschek, CEO Tata Motors said while speaking at SIAM convention here.

“We all know it. As far as the car industry is concerned, the growth story is about to collapse,” he said. He was speaking on the background of passenger vehicle sales touching 19 years low. In the period of April to August car s de-growth of 20%.

Further pointing out the confusion within the industry on GST, he said we need to have inclusive and clear thoughts. He also added that ICE and electric vehicles should be seen as the evolving technologies rather positioning enemy of each other.

Link

[Deepsp]

Tata Motors shared it's MD and CEO Mr. Guenter Butschek's recommendations to win back customers' confidence.
Link: https://twitter.com/TataMotors/statu...777077761?s=19

[rrnsss]

I must say that it is a well deserved break for the auto Industry. It is also good for the environment.

Driving in India is becoming more and more dangerous, costly, stressful and tedious. These days, I prefer NOT to be in a car for more than 30 or 45 minutes. I prefer to take a train to my farm if I am going to stay for just a few days. The only reason why I take my car, is if I want to travel with my dogs, If I am going to stay for a longer period.

1. Manufactures have shortchanged customers by offering stripped down products, at inflated rates. Example, Honda JAZZ. I really wanted one with a CVT and magic seats (I have 4 dogs). But a while back, they said CVT and magic seats do not come together in the same model. I waited a year to find out that there is NO magic seats anymore!!! While it is available everywhere else in the world. What is the Jazz if not with magic seats???

2. The government has been dipping deep into the pockets of middle class buyers by increasing the taxes and levies NON STOP for the past 15 years.

3. The insurance companies have not been kind to the middle class either

4. There is a marked change in traffic conditions between say 15 years ago and now. It is a nuisance to drive in the city and downright life threatening to drive in the highways. There is zero enforcement for Overloaded lorries, tractors without brake lights, slow moving autorickshaws on 6 lane highways, idiots coming on the wrong side with their lights flashing etc etc... There is ZERO concern for the welfare of the middle class.

5. There is no legal protection for law abiding drivers from errant road users. We live in a country where there is mob rule. The poorest and the richest people get special treatment, while the middle class is left holding the bag. We are allowed to exist, just so that we can pay taxes.

6. Profiteering by companies that offer decent quality products (like Hyundai and now joined by toyota) due to lack of any meaningful competition.

7. The propagation of the myth that EVs do not pollute. Ofcourse they do not pollute on the site of use, but energy is not free. It pollutes SOMEWHERE in SOME FORM. Humans are not supposed to move at 70 kmph . Someone has to pay the price for breaking nature's rules. EVs are the new 3 card monte for the green brigade. No one bats an eyelid or questions this logic about EV s .

8. The only way to bring down pollution is by bringing down POPULATION & CONSUMPTION. But this is an inconvenient topic . Religion/Commerce/Nation states will fall on their face if populations shrink.

9. Given this toxic mix of conditions of government fleecing, no legal protection for law abiding drivers from unruly mobs, indifferent car manufactures , lack of meaningful competition at eye watering international prices etc. etc. It is best to just wait and watch it all crash and burn.

[volkman10]

Maruti Suzuki bats for a single platform for making regulation on auto industry.

As of now more than 5 ministries – Ministry of Heavy Industries, Road Transport and Highways, Petroleum and Natural Gas, Environment, Science and Urban Development – are responsible for policy making related to different aspects of the automobile sector.

the carbon monoxide emission in a car is regulated by one ministry but the carbon dioxide emission is regulated by another ministry. While, the fuel that goes into the car is regulated by a third ministry. In addition, there are many courts and judicial bodies.

In the future, with more technologies and regulation, the complexity will grow manifold. How to navigate through these multiple bodies and ensure that there is alignment?,

Hence a single ministry or a platform should help policy formulation in the days to come.

Once the “regulatory end-objective" is taken care of, which design or technology is used should be left open to the customer to choose.

Link

[Hayek]

Some thoughts:

1) The slowdown in auto sales has multiple causes - (I) dealer inventory correction led by manufacturers given the need to get inventory of every single variant of every single model of Bharat IV cars to zero by March 31, 2020, (II) the impact of continuous increases in One Time Tax and Customs Duties on OTR prices of cars, (III) the impact of the slowdown of purchases by Ola and Uber drivers given the fact that the population of taxis in most cities now exceeds demand, and the poor economics of the underlying taxi trade is not being offset by subsidies from Ola and Uber’s equity shareholders; and (IV) the reduction in demand for cars due to Olas and Ubers being easily available.

2) Temporarily reducing GST before Bharat VI cars come in will not help - it may instead lead to more confusion as manufacturers struggle to estimate the demand impact, and may also lead to misalignment of dealer inventories

3) The slowdown in auto manufacturing is also because with crazy GST structures (such as the promotion of sub 4 m cars), and ever increasing customs duties, making in India for exports no longer makes sense. People will Make in India if they benefit from scale economies, and can sell cars made for India worldwide.

But this is just a precursor for what will come. Over the next decade, people may move away from owning cars to just paying to use them - and trying to incentivise a dying sector may be an exercise in futility.