The Government of India has asked manufacturers to upload specifications of vehicles sold by them to a web portal, which will be functional by October. Manufacturers will be allowed to do this voluntarily in the first year. However, from October 2015, no vehicle will be registered anywhere in the country if details such as engine and chassis numbers, engine capacity, colour and fuel used are not provided to the Government.

In a notification issued last month, the Government has informed manufacturers that they would need to upload the specifications given during on a portal of the National Informatics Centre. Auto Companies generate these data for internal use, but do not usually share it with outside agencies. Every vehicle has unique chassis and engine numbers along with other specs. This data is useful to manufacturers when they issue recalls in case of technical flaws.

The move is aimed at simplifying the process and curbing malpractices in vehicle registration. With the data of all vehicles sold in hand, the authorities will be able to crosscheck the information before registering any vehicle. The Government claims that this move will also reduce the rush at transport offices, and help also in creating standard service options to service providers such as finance and insurance companies.

Additionally, the new project will give regional transport offices access to a digital bank and help track everything from registration to fitness of commercial vehicles, national permits and enforcement of penalties.

Source: Economic Times

Arun Jaitley, Union Finance Minister has proposed to invest Rs.37,880 crores in National Highways Authority of India and State Roads, including Rs.3,000 crores for the North Eastern part of India. In the Current Financial Year, the government targets to build 8,500 kms of road across the country.

This move will not only result in improved road connectivity across India but is also expected to give a boost to the struggling road construction industry as well as construction equipment manufacturers.

The National Highway Authority of India will also set aside Rs.500 crores for project preparation for development work on select expressways parallel to the development of Industrial Corridors.

Source

Hyundai Motor India Ltd has introduced a special new scheme called ‘Pride of India’ for Central and State Government, PSUs & Public Sector Banks employees. This nationwide scheme provides Government employees with benefits to the tune of Rs. 30,000 on purchase of select Hyundai cars. This scheme is not valid on recently launched cars like the Santa FE, Xcent and Grand i10.

With the 'Pride of India' campaign Hyundai strives to entice Government employees to their showroom, and hopes to boost sales.

Hyundai has been consistently selling approximately 34,500 cars per month since January 2014 (reference) and is currently, the second largest manufacturer in the country.

The Government of India has announced that it will extend the excise duty concession on vehicles by six months till December 31, 2014. Vehicle manufacturers are expected to continue passing on the benefits of the reduced rate of duty to their customers.

Earlier this year, in the interim budget for 2014, the Government of India had slashed the rates of excise duty on vehicles. The duty on small cars was slashed from 12% to 8%, medium-sized cars from 24% to 20%, large cars from 27% to 24%, SUVs from 30% to 24% and motorcycles and scooters from 12% to 8%. This step was taken to revive the automobile market in the country which was going through the worst slump in its history.

Following this, many manufacturers passed on the benefits of the reduction to the customers by slashing the prices of their products. However, this reduction in the rate of excise duty would have been applicable only till the June 30, 2014 after which, according to precedence and law, the duty structure valid before the interim budget would prevail. This would mean prices of cars and bikes could rise by 4.5-5% and those of SUVs by 6%, resulting in a drop in demand.

The Society of Automobile Manufacturers has welcomed the extension of the concession since it believes that it will contribute positively to improve buyer sentiment and help in bringing a sustained recovery in the automotive industry. Car manufacturers will be hoping that the Government announces additional measures to revive growth in the Union Budget on July 10, 2014.

Earlier this year, in the interim budget for 2014, the Government of India had announced that it was slashing the rates of excise duty on vehicles. Following this, many manufacturers passed on the benefits of the reduction to the customers by slashing the prices of their products. However, this reduction in the rate of excise duty would be applicable only till the June 30, 2014 and unless the new Government comes out with a notification before that date, according to precedence and law, the duty structure valid before the interim budget will prevail. This means that manufacturers will hike the prices of vehicles. Prices of cars and bikes are likely to go up by 4.5-5% and those of SUVs by 6%.

The interim budget, which was presented by the previous Government, announced the cut in duty to try and revive the flagging automobile market in India. The current Government will introduce a full budget for fiscal 2014 in July and rumours are doing the rounds that the excise duty on vehicles is likely to be hiked. While members of the Society of Indian Automobile Manufacturers (SIAM) have met the Commerce Minister in this regard, they are yet to receive a response.

With the economic slowdown, car sales in India have been falling. 17.87 million units were sold in the country during fiscal 2013-14 - down 4.65% from 2012-13. The fiscal 2012-13 ended with car sales 6.69% lower than the previous year.

Source: ET Auto

The Government of India has announced that it will take steps to improve road safety in the country by re-drafting the Motor Vehicle Bill. Safety norms of developed countries like USA, Canada, Germany, Singapore, Japan and UK will be studied and incorporated in the new bill. The bill is expected to be drafted in a month's time and presented in Parliament.

With the new bill, the Government will seek to cut down on human intervention and rely on sophisticated IT-based systems. The installation of CCTV cameras at traffic junctions will help the authorities identify offenders and challans would be issued to them within 24 hours.

Manufacturers of heavy vehicles like trucks will be asked to alter their designs to incorporate safety requirements.

Data for driving licences will be centralised, which is expected to prevent misuse. Many times individuals are found to possess more than one driving licence.

The Government will also revamp the Carriage by Road Act and Road Transport Corporation Act. Public transport vehicles plying in cities with a population of more than 10 lakh will be fitted with GPS tracking systems.

India has one of the worst road safety records in the world. In 2013, there were 4.9 lakh reported road accidents with a death toll of 1.38 lakh. Another 5.09 lakh persons were injured in road accidents during the year. The Government hopes to bring these numbers down with the new bill.

The Motor Vehicles Act was framed in 1988 and amended in 2001. In 2012, a bill for the amendment of the act was passed in the Rajya Sabha, but was not taken up in the Lok Sabha. The bill provides hefty penalties for offences like speeding and drunk driving. It also seeks to raise the compensation for death resulting from hit and run accidents from Rs. 50,000 to Rs. 1 lakh.

Source: Indian Express

After a long, poor run, the Indian automobile industry might just get something to smile about.

In the interim budget for 2014, the Finance Minister, Mr. P. Chidambaram has announced that the Government has proposed to cut excise duties on cars. The move is expected to boost manufacturing and growth.

The excise duty on small cars is being slashed from 12% to 8%. The excise duty on medium-sized cars and large-sized cars will be reduced from 24% to 20% and 27% to 24% respectively. SUVs will now attract an excise duty of 24% instead of 30%. Excise duty on motorcycles and scooters will also be slashed from 12% to 8%. These rates will be reviewed at the time of the budget.

The cut in the excise duty might prove to be a shot in the arm for the automobile industry, which has seen the worst slump in its history. The cut will enable manufacturers to price their cars lower, which will make them more attractive to buyers.