[truezealous]

More production shutdowns:

TVS group auto component maker Sundaram-Clayton Ltd (SCL) on Friday said it will be shutting its Padi factory in Tamil Nadu for two days owing to slowdown in the automotive industry, joining two-wheeler major Hero MotoCorp which also announced closure of its plants for four days.

source

[fache89]

It is quite evident that we are in for a nasty recession. The government which was probably living in cognitive dissonance is finally coming to fore to redress it.

But, is it all doom and gloom ?

I want to think that in a slowdown, there are still some positives. Sales might go down, but a lot of people will retain their old cars. This means there will be considerable business for the after sales industry. Yes, some may not choose to go to official dealers, but in the long run the spare parts industry may see a surge. But, I could be dogmatic as I do not have evidence from history to prove my point.

If this downturn really turns ugly, then desperate times warrant desperate measures. I would not be surprised to see some small manufacturers adopt 'Tesla' style of selling or adopt an ecommerce model. VW is coming up with boutique showrooms housing no more than 2 cars. Cars can always be driven to customers for test drive. A lot of backoffice work must not rest at dealership level where real estate is at a premium.

All I can say, precarious time lie ahead.

[aargee]

Cat is gradually getting out of the bag
https://thewire.in/economy/weak-grow...policy-minutes

https://www.livemint.com/news/india/...393002540.html

In my perception, we're heading towards, not recession but depression

[racer_ash]

Looking at some of the posts in the other threads of the Nios, Venue etc. which illustrate how car prices have reached stratospheric levels, I am surprised that the slowdown didnt come any sooner.

I mean, slowdown is bad and all. But what we need is a major correction in pricing strategy by every manufacturer. We keep saying that govt taxes keep increasing. But can anyone point out to how much the taxes have actually increased? I feel the percentage increase in prices from manufacturers is more than the tax increase by our dear government.

If this results in a disruption in the industry in terms of VFM pricing, then I am all for it.

[FrozeninTime]

Originally Posted by aargee

Cat is gradually getting out of the bag
https://thewire.in/economy/weak-grow...policy-minutes

In my perception, we're heading towards, not recession but depression

I feel we are in starting stages or even deep in recession but policy makers and media don't want to acknowledge.
Automobile Industry as usual never learn and in crisis want taxpayers to bail them directly or indirectly( GST rate cut).

[.sushilkumar]

Originally Posted by FrozeninTime

I feel we are in starting stages or even deep in recession but policy makers and media don't want to acknowledge.
Automobile Industry as usual never learn and in crisis want taxpayers to bail them directly or indirectly( GST rate cut).

+1 . When greed takes over, the logical thinking goes off the window. Need of the hour for these auto makers is to innovate and bring new products than sitting on cash pile of profits. They never complained when they were selling cars like potatoes and now that people have slowed down, they are asking for GST cuts with wide mouth.

Why should as a tax payers, do i subsidies a bussiness being run for profit. Its a survival of the fittest. if they cannot innovate & compete, I had rather let them die.

[aargee]

Originally Posted by FrozeninTime

I feel we are in starting stages or even deep in recession

Like I said, its not recession, its mostly depression that we might head into, which I personally pray it isn't

[Nilesh5417]

The slowdown is not just in auto industry, it is wide spread across the entire economy. It's hitting even the FMCG sector that started with the 1rs shampoo packet to beat the slowdown in the past.
If the automotive lobby thinks they can stop the bleed when everything else is in the grip of economic depression, they are seriously smoking something! People are simply not spending cause they are not sure of their jobs and not sure of their savings growing. Just look at the markets and the seriousness of the issues in the banks and financial sector overall. Buying a car will probably be not the top priority for many.

[srini1785]

Recession due to depression. Depression due to what?.

We have a stable govt (at center) , overall GDP growth is around 5% or more ( correct me if wrong), a good median age population , far better infra than say 10 years back , gimme one good reason to get depressed. This phase that we are going through will pass in say 2-3 quarters. We have not lost our savings or have to pledge our gold ( remember the early 90s). True , a lot of people have lost jobs, heart goes out to them, but i would not quantify this phase as a recession. Recession is a phase of negative growth. I don't see that coming.

[prabhu.reddy92]

http://economictimes.indiatimes.com/...3.cms?from=mdr

Rajiv Bajaj blames the Indian automobile manufactures for their mediocre quality and bad products for the slowdown. This actually makes more sense for me.

[PPS]

New Car Registrations fall most in Western Suburbs of Mumbai!

https://timesofindia.indiatimes.com/...w/70867157.cms

The Andheri RTO, a pit stop for fancy wheels that the rich and famous want to possess, has fallen from the pole position of 19,656 new cars registered in 2017-18 to the second-lowest spot in the city with just 13,280 four-wheelers registered in 2018-19.
Recording the sharpest drop of 32% among the four city RTOs, the Andheri RTO tells the story of the sales slowdown in the automobile sector in the starkest terms.

[rajvardhanraje]

If the government heeds to the demands of the automotive manufacturers and reduces the GST from 28% to 18%, all other sectors (FMCG, Pharma, Metals, etc) will also form lobbies and pressurize the government demanding a similar tax reduction. Now if the government rejects them, it would look like the they are favouring one sector more then the other and would cause more outrage. The government definitely does not want to face such a situation. Many sectors are currently staring at a downturn though not as dire as the automotive sector.

I believe in the current scenario GST reduction will not take place since automobiles are considered more of a luxury than a necessity by the government. The only way the manufacturers can revive sales to some extent is by price correction. Exorbitant gov taxes apart, manufacturers have also been milking us for a long time and prices have risen exponentially much more than inflation and raw material costs.

[volkman10]

India woos foreign automakers, suppliers to cash in on U.S.-China trade war.

India is targeting automakers and companies including Apple, Foxconn and Wistron Corp. with a charm offensive aimed at encouraging them to shift business out of trade war-hit China

Several Indian officials met on Aug. 14 and discussed a list of "target companies" that also include Taiwan-headquartered contract manufacturer Pegatron Corp

Amid suggestions that India is late to capitalize on the trade war, government ministries have been asked to submit their policies and incentive structures to Invest India, the country's foreign investment promotion agency. Nine sectors including electronics, autos pharmaceuticals and telecoms will be targeted

The document said the government will meet companies between Aug. 26 and Sept. 5 to suggest the best investment zones for their operations

Indian officials this week separately met local delegates of automakers including Volkswagen Group, Hyundai Motor Co. and Honda Motor Co. to see if they would consider moving some supply chain operations from China to India, according to the source and an industry official who attended the meeting.

Link

[varunswnt]

https://www.thehindubusinessline.com...e29314299.ece#

India's largest passenger car maker Maruti Suzuki India (MSIL) on Sunday reported 36 per cent fall in its domestic sales during August to 93,173 units as compared to 1,45,895 units in August 2018.

The downward continues, still this month being a precursor to upcoming festive months, I was hoping a revival of sorts.

Check below manufacturers chart of Maruti dispatches in July 2019.

https://www.team-bhp.com/forum/india...ml#post4634265 (July 2019 : Indian Car Sales Figures & Analysis)

[varunswnt]

Originally Posted by varunswnt

https://www.thehindubusinessline.com...e29314299.ece#

The below quoted article clearly marks Domestic sales numbers.

https://www.livemint.com/auto-news/m...322578510.html

The country's largest carmaker Maruti Suzuki India on Sunday reported a 32.7% decline in sales at 1,06,413 units in August.

The company had sold 1,58,189 units in August last year, Maruti Suzuki India (MSI) said in a statement.

Domestic sales declined by 34.3% at 97,061 units last month as against 1,47,700 units in August 2018, it added.