Auto Industry seeks incentives on tax from Government

After facing a tough time from many months, the automobile industry is asking government to make the taxation structure uniform and take away the uneven excise duties on passenger vehicles.

At present the excise duty on automobiles range from 12% to 30% while it is 12% on commercial vehicles. The government has already been asked to cut the excise duty on CV to 8%.

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INDUSTRIAL SLOWDOWN TO PUT ADDITIONAL STRESS ON CV LOANS

Mahindra & Mahindra joins hands Canara Bank to finance vehicle

Mahindra & Mahindra got into a preferred financier tie-up with Canara Bank to facilitate its customers with an option to avail loan on cars.

This tie-up will help both the entities to take advantage of each other’s wide network across India, which includes 4,600 branches of the bank and Mahindra’s 250 dealers.

As per industry sources, the bank is enhancing its operations in the financing of passenger vehicle. 

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What to Look Out for in a Used Vehicle

Tata Motors reveals new petrol engine

Tata Motors Ltd. is all set to launch new series in its petrol engines, which is likely to power a few of its future cars. While catering to the change in consumer preference for fuel, the company revealed its new series’ first variant on Monday.    Due to government’s go ahead on increasing diesel prices, the gap between diesel and petrol price is diminishing; thus generating demand for petrol cars. The company is going to use the latest 1.2 litre turbocharged engine in its compact vehicle. Some of them are likely to be unveiled later this year.  Read more news, kindly click here

Corolla Altis’ production came to a halt; Toyota all set to launch a newer version

Toyota Kirloskar Motor has brought the production of Corolla Altis to a halt from January, 2014. After making a mark in many countries, the company is all set to give a newer version of the car in next 4-5 months. Its production will take place at the company’s second plant, located in Bangalore, which can produce upto 2.1 lakh units per year.   

   

As per industry sources, Corolla Altis’ new version is expected to be powered by the existing 1.8 litre petrol along with some more features. On the other hand, the diesel variant is probably going to be extra powerful in comparison to the current 1.4 litre one. The first look of the car is likely to be showcased in the upcoming Auto Expo in New Delhi.  

Five things to know while buying a used car

Auto manufacturers and dealers are promising fabulous discounts and freebies for those planning to make a purchase of new or used cars in India. Go through the following pointers before you avail of them.

1. New year, old model

Car companies usually offer big discounts in December to clear their inventories before they hike prices and launch new models in January. If you buy now, your vehicle will bear the registration date of December 2013, and in a few days, it will be last year's model.

This should not matter if you are planning to use the car for at least 7-8 years. However, if you plan to change the car in 3-4 years, the registration date will matter. A 2013 model will fetch a lower resale price four years down the line.

Hence, it will be prudent to wait till January to buy it. Remember that a new car should be used for at least 8 years to get a full return on investment. Sell it earlier and you could lose out on its value.

2. Buy within your means
The bigger the car, the fatter the discounts being offered. However, don't let the freebies entice you into making a purchase you can't afford. The golden rule is that the price of a car should not be more than 60% of your annual takehome income.

3. Consider the offers closely

While you should not look a gift horse in the mouth, when it comes to freebies from car dealers, a closer look is necessary.

4. Transfer the no-claim bonus

All car owners know that if you don't make a claim in a year, the next year's premium fetches a discount. However, few know that a noclaim bonus can be transferred to another vehicle, bringing down the insurance cost of a new car.

5. Petrol, diesel or CNG?

Petrol is the costliest car fuel, but petrol cars are the cheapest. Diesel is inexpensive, but the diesel variants of cars are costlier by Rs 75,000-1 lakh. They also require higher maintenance.

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News: Fresh models required by new banks to flourish

As per the market sources, new banks will have to develop a fresh business model to succeed, including making profits in rural areas and tackling risks associated with technology and cash management.

RBI is currently in the process of shortlisting applicants for new banking licenses. However, licences are being issued after a gap of about a decade and those to have applied in the current round also include Shriram group, India Post, LIC Housing, IDFC, Indiabulls, JM Financial, India Infoline and Edelw.

For more news keep visiting to SAMIL blog

Buying a used car? Here's what to look out for

New Delhi: The used car market in India is still largely unorganised. Although most major auto companies now offer certified used cars, most of the transactions still take place in the open market.

Maruti, Hyundai, General Motors, Toyota, Tata Motors, Mahindra & Mahindra etc. all sell certified used cars complete with warranty, not just from their own stable but across brands.

There are different stages of checking and testing that these cars undergo, before being certified by the companies.

However, because these cars go through rigorous testing, the companies charge much more than what the neighbourhood used-car dealer would. 

There are also cars sold by these auto companies, without the certifications and the warranty, which cost substantially less, but they would still be more expensive than the dealer operating in the unorganised sector.

There's no reason to be too wary about the unorganised sector, as many a time you can pick up a great deal from there.

Buying a second-hand car is not a bad idea, but if you have the means, most people would suggest you go for a new car- simply because of the fact that there are less hassles involved. A new car is unlikely to give any trouble in the first three odd years at least.

Even if a car is in mint-condition, and has only run a few months or a few miles, it will attract a price much less that its original price, while being sold, because it is a depreciating asset. It is a good idea to keep a lookout for such deals while buying a used car.

"If you buy a new car for around Rs. 10 lakh and want to to sell it off immediately, you can easily shave off a lakh (Rs. 1 lakh)," says auto expert Tutu Dhawan.

The more premium and high-end the car, the better a deal the new buyer stands to get, opines Mr Dhawan.

For cars within the Rs. 5 lakh bracket, Rs. 50,000 can easily be discounted if it is being sold off in a month or two, he says.

Read more at http://profit.ndtv.com/news/industries/article-buying-a-used-car-heres-what-to-look-out-for-374408