Narendra Modi-led government, expected to bring reforms in auto sector

India is all set to experience a new era with the renewal of government. While Narendra Modi takes the charge of Indian government system, here's what the automobile industry expects out of the system:

·         No change in the current excise duty.

·         Faster growth rate in manufacturing.

·         Improvement in customer sentiment.

·         Fall in interest rates to make vehicle financing attractive for the customers.

·         GST and DTC implementation.

·         A speedy pick up of stalled infrastructural projects.

·         Initiatives to enhance footfall in auto dealerships.

·         More job opportunities.

Tata to introduce India's 1st AMT diesel car at an affordable price

Tata now plans to shift from the 'most affordable' to the 'first affordable' tag by creating its route in the growing AMT car space. The company is going to give India its first diesel-powered automated manual transmission car at an affordable price.

As per the company sources, the future cars of Tata are going to incorporate advanced technologies from Harman. This system includes car-to-mobile phone interface and in-car connectivity applications.

Apart from Tata, a number of other car makers are trying to get into the AMT cars range, following the success of Maruti Celerio.

14% increase in passenger vehicles’ mileage is mandatory now

New norms for used passenger vehicles, namely Corporate Average Fuel Consumption, have been notified by Bureau of Energy Efficiency BEE under which it will be mandatory to increase their mileage by 14% from 2016-17 and 38% five years late to that.  

At present, the passenger vehicles’ mileage is 16 km per litre and as per the new norms it is expected to be 18.2 km by 2016-17 and 22 km by 2021-22.  

These new norms will be compulsory for entire automobile industry while covering all types of fuels, namely diesel, gas and petrol. And, once implemented, they will certainly put India into a league of nations, like United States, Japan, China and Germany where harsh penalties are enforced on the violation of norms.  

Read more news at :
http://shriramautomall.blogspot.in/2014/02/industrial-slowdown-to-put-additional.html

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. 

Read more news:

What to Look Out for in a Used Vehicle

Investment of Rs. 500crore on CV development by Mahindra Trucks and Buses

Mahindra Trucks and Buses Ltd. plans to invest Rs.500Cr in 2-3years on developing products and strengthening of the line-up of commercial vehicles.

Of total, Rs300Cr will be in the development of a completely new platform for ICV as it offers a lot of opportunity and this segment is considered to bestow a promising future.

The present size of the market is around 1lakh units annually, which can grow up to 1.5lakh units.

The remaining Rs.200crore will be invested on strengthening the current product line-up of trucks and buses including the refurbishing of existing LCV’s.

At the Auto Expo, the company will also display TORRO 25 Tipper, LCV load product like Loading ZOOM Container Truck and Tipper and the Tourister COSMO bus.

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Auto Expo 2014 preview; expect glory at its best!

Looking at early signs, Auto Expo 2014 is expected to be the biggest auto show that India is going to witness in its history. In comparison to a figure of 40 in 2012, this year 47 vehicle manufacturers are going to participate. 69 model launches (58 in 2012) are anticipated along with 15 global unveilings; all this promises to make the petrol (and diesel) heads go drool. The venue area at India Expo Centre is 64,000 sq m which was 44,000 sq m in 2012.   

As the director general at SIAM, Vishnu Mathur is going to steer the auto show for the second time after he joined the apex auto industry body in 2010. Happening in Greater Noida for the first, this auto show is probably going to be the biggest bash for Rs144,000-crore auto industry. And, this certainly means that a big number is at stake for the man along with the sector. 

Mahindra & Mahindra, all set to expand the Andhra Pradesh plant for LCV manufacturing

Mahindra & Mahindra (M&M) is on the verge of enhancing its product line to include light commercial vehicles (LCVs) in its manufacturing facility. With a total investment of Rs. 250 crore, the company will carry on the expansion plan in its Andhra Pradesh plant, located at Zaheerabad.

Aiming at 92,000 vehicles per year, M&M will produce four wheeler sub-one ton light commercial and passenger vehicle for which it seeks sops from government. Based on the automaker’s request along with State Investment Promotion Board recommendation, the government agreed on incentives but only on certain conditions.

According to company sources, M&M aims at enhancing its presence in the commercial vehicle arena of Indian automobile industry because of which it is going to focus on running the LCV, Truck and Bus business as a separate division.    

Read more news at : http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/mahindra-mahindra-to-expand-its-andhra-pradesh-plant-to-manufacture-lcvs/articleshow/29210937.cms

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.  

Mercedes Benz India Expects To Unveil 8 New Cars In 2014

Mercedes, which entered the Indian market in 1995, is all set to have its 50,000th car on the Indian roads later this month. 2013 being the most successful year for Mercedes Benz in India with total sales of 9,003 cars, the company aims at double digit growth in 2014.

This year Mercedes Benz plans to launch about eight new products in India. The company also expands network presence in smaller cities in different parts of the country. 

Read it at : http://timesofindia.indiatimes.com/business/india-business/Expect-to-launch-8-new-cars-in-2014-Mercedes-Benz-India/articleshow/28702110.cms

Auto Industry Review

The domestic sales during April-December 2013 grew slightly by 2.30% over the same period last year due to growth in two wheelers sales. In December 2013, the Auto Industry registered a growth of 2.15% by producing 1,734,593 vehicles.

Boss - a CV launched by Ashok Leyland; Mercedes-Benz came up with latest version in S-Class luxury sedan

The flagship company of Hinduja, Ashok Leyland, launched a LCV named BOSS ranging between Rs.10.5 to 12 lacs.

 It contains the features of both passenger car and commercial-purpose truck.  Boss is manufactured at ALL’s plant in Pantnagar, Uttarakhand and will be available in the LX and LE variants.

On the other hand, Mercedes-Benz launched the latest version of the S-Class luxury sedan. Being introduced for the first time in India, the car is priced at Rs.1.57 crore. As per the company sources, initially it will be sold as a completely built unit and later as the locally-assembled product.

Read more at: http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/ashok-leyland-launches-commercial-vehicle-boss/articleshow/28554363.cms

Shriram Life – Launching 7 New Products

Today Shriram Life Insurance Company, a division of Shriram Group, launched seven new products, belonging to the life insurance segment in market. As per the words of company’s CEO, Mr. Manoj Jain, four products out of seven are market-linked, whereas the remaining three belong to the traditional product category. While serving better value proposition with respect to better death benefits and higher surrender value, Jain told, the new products score high on their customer-friendly factor. According to him, these products fulfill the new guidelines of Insurance Regulatory and Development Authority. While answering a query, he informed that three to four new products are with IRDA for approval. After the launch, the company now has 13 products to offer to its customers.  Read more at: http://www.financialexpress.com/news/shriram-life-insurance-launches-seven-new-products/1216490

Hike in petrol and diesel price by 75p and 50p, respectively

India is on the verge of witnessing a hike in petrol and diesel prices. The alterations in the prices came to effect from January 4, 2014. Now, the cost of petrol in Mumbai will be Rs 79.52 per litre and for diesel, it will be Rs 61.42.  

The major reason for the increment is because of the Government’s decision to raise the commission, paid to petrol pumps.

Visit here at https://www.facebook.com/ShriramAutomall for daily news.

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.

Read more at:
http://economictimes.indiatimes.com/articleshow/27725870.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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

SENTIMENT AVERTING FROM INVESTING

The last 12 months for automobile industry has been a steady decline. It has been an extremely tough year especially the commercial vehicles have been hard it. As per TOYOTA it’s sentiment that is preventing people from investing.

As per SIAM GDP growth of 4 to 4.5% is not enough, to experience super growth in the automobile industry it should be 6.5-7 or 8%.

India has potential to be competitive in manufacturing provided the industry concentrate on people, skill development and our process that adheres to concentration on quality. And secondly look out at strategies for market India and factory India.

If you want to know more about the used vehicle industry click here: http://www.youtube.com/watch?v=aSj1oAY6goE

Mahindra Thar off-road experience

Thar rules the waves as much as it relishes tarmac as Adil Jal Darukhanawala found out after putting it through the toughest terrains in western India that too during one of the most welcomingly fiercest of monsoons last month.

 

The June-July period in my part of the world is one where once the monsoon sets in, transforms the area all around the western belt of Maharashtra into a lush green playground. I use the term playground because the myriad possibilities of tackling diverse terrain, whether on foot or horseback, not just to take in the terrain and the exercise but also experience the joy of soaking in the stunning vistas of countryside is unparalleled. However what is even more intoxicating for petrol heads like us all, is the sense of adventure once the rains thunder in gets magnified and you do want to get off the road and tackle the rough and tumble countryside, hill and dale, stream and rivulet.

 

Mahindra's Great Escape at Lonavala last month was a major catalyst in steering me towards doing more than the official escape from the humdrum regular. Held in the lush game park slam bang in front of the high profile Aamby Valley, it was all about hitting the forest trails with the rains pouring down, making it ultra slippery on rocky terrain and slushy in the muddy sections while also deep and dangerous in streams which had transformed into raging rivers. Ideal situation tailor-made for dedicated off-roaders armed with a variety of Mahindra’s - Scorpios, CJs of various hues and also of course the ubiquitous Thar.

 

Read more at :http://www.zigwheels.com/news-features/news/mahindra-thar-offroad-experience/17099/