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New Delhi, Jan 27 () Leading bicycle maker Hero Cycles on Monday urged the government to reduce GST on bicycles from 12 per cent to 5 per cent ahead of the Union Budget to revive demand in the rural markets.
 The company has also sought extension of FAME-II benefits to electric bicycles.
 "The budget must focus on reviving slumping demand across the country through a series of measures including re-adjusting GST slabs to put more disposable income into the hands of people," Hero Motors Company (HMC) Chairman Pankaj M Munjal said in a statement.
 The bicycles are largely used by low income group and rural populations and therefore need to be made cheaper by slashing GST from the current 12 per cent to the lowest 5 per cent slab, he added.
 "Similarly, we also want the government to extend FAME-II benefits to electric bicycles," Munjal said.
 Lower GST on bicycles would provide relief to millions of low income households, the company said.
 "We hope the government recognises the need to promote electric bicycles as much as the need to promote electric cars. While electric cars address the problem of pollution, they do not address the concern of traffic congestion in Indian cities," Munjal said.
 Electric bicycles are both eco-friendly and space friendly and also offer a viable solution to the problem of range anxiety that comes with lack of charging infrastructure as they can be easily pedaled back in case of battery loss, he added.
 Extending the subsidy benefits of FAME-II to electric bicycles will help manufacturers offer more affordable products to consumers, Munjal noted. MSS RUJ
RUJ

Reduce GST on bicycles to 5 pc from current 12 pc: Hero Cycles

New Delhi, Jan 26 () High GST rates, import duties and registration taxes are limiting the growth of luxury car market in India and the government must consider reducing these in the upcoming Budget, according to German luxury car maker Audi.
The company, which saw 28.92 per cent decline in sales at 4,594 units in 2019 as against 6,463 units in 2018, said every major player in the luxury segment saw decline in sales last year and government support would help in overcoming the downturn.
"Luxury car sales are impacted by high GST rates, import duties and registration taxes, which is limiting the segment to a mere 1.2 per cent of the overall car market; when compared to other global markets," Audi India head Balbir Singh Dhillon said.
He further said, "Every major luxury car player has de-grown in volumes during 2019."
Hence, Dhillon said, "We would urge the government/GST council to reduce GST, import duties and rationalise the vehicle registration cost on luxury cars, across the country."
Indian luxury car market comprising top five players -- Mercedes, BMW, Audi, JLR and Volvo -- witnessed a total sales of 40,340 units in 2018 and is expected to see a decline in 2019. Some of the companies are, however, yet to release their up to date sales data.
Luxury car market leader Mercedes Benz had reported 11.28 per cent decline in retail sales at 13,786 units in 2019 as compared to 15,538 units in 2018, while German compatriot BMW reported 13.8 per cent dip in its sales at 9,641 units in India last year as compared with 11,105 units sold in 2018.
Dhillon further said, "Easy lending by the banks and NBFCs will help expand the market and boost the overall automotive industry."
Stating that the government has placed a definitive emphasis on electric vehicles, he, however, said setting up of necessary charging infrastructure is key to the success of the EV-centric ecosystem.
"It is also worthwhile to mention that plug-in hybrid vehicles should also be encouraged with lower GST, import duties and registration taxes. This will encourage customers to take the first step towards PHEVs (plug-in hybrid electric vehicle) and eventually move to electric mobility in India," he added. RKL MKJ

Higher taxes, other levies hurting luxury car sales; govt must address: Audi India head

Tesla CEO <keyword id="6355315" type="UNKNOWN" weightage="20" keywordseo="elon-musk">Elon Musk</keyword> said that his <keyword id="381751" type="ORGANIZATION" weightage="20" keywordseo="Electric-vehicle">electric vehicle</keyword> (EV) company wants to launch cars in India, but the country's <keyword id="564430" type="PERSON" weightage="20" keywordseo="import-duties">import duties</keyword> on EVs are "highest in the world by far". Replying to an Indian YouTuber on <keyword id="6354616" type="UNKNOWN" weightage="20" keywordseo="Twitter">Twitter</keyword>, who asked him to launch <keyword id="4241163" type="PERSON" weightage="20" keywordseo="Tesla-cars">Tesla cars</keyword> ASAP in India, <keyword id="364027" type="PERSON" weightage="20" keywordseo="Musk">Musk</keyword> blamed high import rates in the country. "We want to do so, but import duties are the highest in the world by far of any large country!" he wrote. "Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India," he added. Last year, a report said that India has taken a slew of measures to promote the use of electric cars in the country. The government slashed Goods and Services Tax (GST) on electric vehicles to five per cent from earlier 12 per cent but to protect domestic automakers, it levies 125 per cent duty on imported vehicles. "I'm told import duties are extremely high (up to 100 per cent), even for electric cars. This would make our cars unaffordable," Musk earlier said while responding to a tweet from an Indian follower. Close on the heels of the <keyword id="6360189" type="ORGANIZATION" weightage="20" keywordseo="union-budget">Union Budget</keyword> providing tax relief for buying electric vehicles, the GST Council in its meeting last year in July cut the tax on electric vehicles (EV) from 12 per cent to 5 per cent, effective August 1, 2019. The twin rate cuts are set to further boost the EV sector. The Budget, last year, had proposed an Income Tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase electric vehicles. SEE ALSO- <a href="https://www.businessinsider.in/business/news/reliance-retail-the-cash-cow-for-mukesh-ambanis-ril-may-be-hit-by-the-second-wave-of-the-pandemic/articleshow/84644924.cms">Reliance Retail, the cash cow for Mukesh Ambani’s RIL, may be hit by the second wave of the pandemic</a> <a href="https://www.businessinsider.in/tech/news/zomato-paytm-sony-liv-disneyhotstar-down-as-massive-internet-outage-sweeps-across-many-countries/articleshow/84653441.cms">Zomato, Paytm, Sony LIV, Disney+Hotstar back up after glitch takes down internet</a>

Elon Musk wants to bring Tesla to India but high import duties are a challenge

<ul><li>At a meeting of the Society of Indian Automobile Manufacturers, transport minister <keyword id="26680" type="PERSON" weightage="20" keywordseo="Nitin-gadkari">Nitin Gadkari</keyword> outlined a plan to make EVs comprise 15% of total vehicle sales in <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> in the next five years. </li><li>This is a significant jump from the 4% target announced by the government in May this year. </li><li>The government plans to boost EV sales by removing permit requirements and levying a modest rate of 12% on them under the GST regime. </li></ul>The Indian government wants you to know that it’s serious about mainstreaming electric vehicles (EVs) and reducing its reliance on oil imports. On September 6th, at a meeting of the Society of Indian Automobile Manufacturers, India’s ministers for transport and highways, Nitin Gadkari, announced that the government was aiming to make EVs comprise 15% of total vehicle sales in India within the next five years. This is a significant jump from the <a href="https://www.livemint.com/Industry/erIpud75QuSBuRaz94bSvN/Govt-sets-modest-target-for-electric-vehicle-sales-as-chall.html">4% target</a> announced by the government in May this year. In March 2018, it also announced a goal to make EVs account for 30% of all cars on Indian roads by 2030. Either way, making EV sales reach the 15% threshold by 2023 won’t be an easy task. <keyword id="381751" type="ORGANIZATION" weightage="20" keywordseo="Electric-vehicle">Electric vehicle</keyword> sales currently comprise a little over 1% iof all car sales in India. However, Gadkari outlined a few measures aimed at achieving this target. Firstly, electric vehicle owners won’t need road permits for their cars. The government has decided to exempt EVs and CNG vehicles from permit requirements in a bid to boost their sales. Secondly, EVs will be taxed at a rate of 12% under the GST without any further taxes. Thirdly, EVs that are imported for the purposes of testing will not exempt from duties. Additionally, government could also require ride-sharing services like Uber and Ola to have a certain amount of EVs in their fleet, a move that will be easier in the absence of permit restrictions. The Indian government will need to complement these measures with the establishment of adequate <keyword id="17408" type="DOMAIN" weightage="20" keywordseo="infrastructure">infrastructure</keyword> like charging stations under its the National E-Mobility Programme. The news comes as a number of car manufacturers are looking to introduce EV models in the country. Through a proposed joint venture, Toyota and Suzuki reportedly plan to <a href="https://economictimes.indiatimes.com/industry/auto/auto-news/toyota-suzuki-revs-up-plan-to-roll-out-hybrid-electric-vehicles-here/articleshow/65693024.cms">launch four models</a> of electric or hybrid vehicles in India by 2021. Maruti-Suzuki is said to be currently testing an electric version of its compact Wagon-R model.

India now plans to make EVs comprise 15% of all vehicles sales by 2023

Greater Noida, Feb 5 () German luxury carmaker Mercedes Benz will kick off its EV journey in India with the launch of electric SUV EQC model in April, as it mulls more such products to be introduced here. The company is analysing which electric vehicle could be launched in India out of the ten electric vehicles (EVs) that it is planning to launch globally in the next two years. It is also considering local assembly of some models. "We are introducing the EQC in the (Indian) market. We are quite bullish on this segment. What we see today is a GST advantage in selling fully electric vehicles," Mercedes-Benz Cars Head overseas region Matthias Luehrs told reporters here on the sidelines of Auto Expo. The company, therefore, sees the government supporting in the strategy of electrification into the Indian market. "We are building on that. Our strategy is to evolve towards this segment in the future." The goods and services tax (GST) subvention is a clear sign of the government's support for EVs, he added. When asked if the company would continue to fully import EVs to India, he said: "At the moment, yes". He, however, added that the company's research and development unit in Germany had plan to introduce ten different EVs worldwide in the next couple of years. "Obviously, we are also studying and always analysing what kind of cars we could possibly bring at a certain stage and also manufacture locally. We have not determined which one or if (the company with go ahead with it)," Luehr said. As the company has done in the past with internal combustion engine vehicles, it will assess the viability of local assembly for EVs in the same manner, he asserted. At present, Mercedes Benz locally assembles nine models at its plant in Pune. These comprise Maybach S 560, S-Class, E-Class Long Wheelbase, C-Class, CLA luxury sedans and the GLA, GLE and the GLS luxury SUVs. RKL ANSANS

Mercedes Benz to launch electric SUV EQC in April

As part of his ambition to make <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword> a green economy, Union minister <keyword id="19897455" type="General" weightage="20" keywordseo="nitin-gadkari" source="keywords">Nitin Gadkari</keyword> wants to slash GST on hybrid vehicles and has vowed to rid the country entirely of the over 36 crore petrol and diesel vehicles. "One hundred per cent," <keyword id="19934966" type="General" weightage="20" keywordseo="gadkari" source="keywords">Gadkari</keyword>, the Union Minister for Road Transport and Highways, said when asked whether it is possible for India to get rid of petrol and diesel cars altogether. "It is difficult but not impossible. This is my vision," Gadkari said in an interview to PTI. He said India spends Rs 16 lakh crore on fuel imports. This money will be used for improving the life of farmers, villages will be prosperous and the youth will get employment, the minister said. Gadkari did not give any timeline to meet this ambitious target which even proponents of green energy believe is mind bogglingly difficult. The proposal to reduce GST on hybrid vehicles to five per cent and to 12 per cent for flex engines has been sent to the Finance ministry which is considering the requisition, Gadkari said. The minister said he firmly believes the country can end fuel import by promoting the use of biofuels. Environmental activists welcomed Gadkari's vision for increasing green mobility, but also struck a word of caution by flagging the use of fossil fuels in the production of electricity. "In India, we are still heavily dependent on a fossil fuel-based energy system to power electric cars, and this needs to be changed. There is urgent need to ensure 100 per cent renewable energy alongside electric vehicles to tackle the climate crisis," <keyword id="21152150" type="General" weightage="20" keywordseo="avinash-chanchal" source="keywords">Avinash Chanchal</keyword>, a campaigner for Greenpeace India, told PTI. Gadkari said he has been pitching for alternative fuels since 2004 and is confident things will change in the coming five to seven years. "I cannot give you a date and year for this transformation to take place as it is very difficult. This is difficult but not impossible," Gadkari asserted. He said he firmly believes that given the speed with which electric vehicles are being introduced, the coming era will be of alternative and biofuels and this dream will come true. Gadkari said auto companies such as Bajaj, TVS and Hero are also planning to manufacture motorcycles using flex engines and auto rickshaws using similar technology too were on the way. "I roam around in a car that runs on hydrogen. You can see electric cars in every other household. People who used to say this was impossible, have changed their views now and started believing in what I have been saying for the last 20 years," the minister said. "Tatas and <keyword id="19906966" type="General" weightage="20" keywordseo="ashok-leyland" source="keywords">Ashok Leyland</keyword> have introduced trucks that run on hydrogen. There are trucks that run on LNG/CNG. There are 350 factories across the country of bio-CNG," he said. "Definitely, a revolution is taking place. The fuel imports will end and this country will become self-reliant - <keyword id="19952544" type="General" weightage="20" keywordseo="atmanirbhar-bharat" source="keywords">Atmanirbhar Bharat</keyword>. I strongly believe in this," Gadkari said. SEE ALSO:<a href="https://www.businessinsider.in/business/telecom/news/ussd-based-call-forwarding-to-be-suspended-soon-to-curb-fraud/articleshow/108933705.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/telecom/news/ussd-based-call-forwarding-to-be-suspended-soon-to-curb-fraud/articleshow/108933705.cms" target="_blank">USSD-based call forwarding to be suspended soon to curb fraud</a><a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-and-two-wheelers-launching-in-india-in-april-2024/slidelist/108869757.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-and-two-wheelers-launching-in-india-in-april-2024/slidelist/108869757.cms" target="_blank">Upcoming cars and two-wheelers launching in India in April 2024</a><a href="https://www.businessinsider.in/tech/apps/news/from-ai-photo-editing-to-international-upi-payments-here-are-upcoming-whatsapp-features/articleshow/108815797.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/apps/news/from-ai-photo-editing-to-international-upi-payments-here-are-upcoming-whatsapp-features/articleshow/108815797.cms" target="_blank">From AI photo editing to international UPI payments, here are upcoming WhatsApp features</a>

Gadkari vows to eliminate petrol, diesel vehicles in India, bats for lower tax for hybrid cars

<ul><li>Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> to head 35th edition of the <keyword id="3680839" type="PERSON" weightage="20" keywordseo="gst-council-meeting">GST council meeting</keyword>. </li><li><keyword id="6354553" type="COMPANY" weightage="20" keywordseo="real-estate">Real estate</keyword> sector expecting the government to change the <keyword id="6354679" type="DEFINITION" weightage="20" keywordseo="gst">GST</keyword> slab rate for cement </li></ul>With the 35th edition of GST council meeting beginning on June 21, the government is likely to take key decisions on reducing GST for electric cars, the revenue system of states, and the new return filing system. This will be the first meeting post general election in India. The real estate sector has high hopes from the first GST council meeting under the new government. At present, the GST rate slab for cement is 28% and the real estate sector is expecting their long-awaited demand of shifting it to the 18% slab. “By bringing the GST rate for cement into the 18% slab, the Government indirectly helps create more construction and development-related jobs, not only in the <keyword id="35061" type="DOMAIN" weightage="20" keywordseo="housing">housing</keyword> sector but also in the infrastructure industry. However, a reduced GST rate on construction materials like cement and steel would also result in increased financial strain in terms of overall revenue loss - perhaps not an ideal circumstance in a period of constrained economic growth,” said Anuj Puri, Chairman, ANAROCK Property Consultations Will homes get any cheaper? Even if the inputs costs of real estate sector do come down, experts wonder if they will actually aid the homebuyer. “This depends on whether the benefits of the reduced cost of raw materials is actually passed on to the consumers. It brings to mind a similar question related to home loan rates vis-a-vis RBI's announcement of repo rate reductions. The actual transmission of such reductions to home loan borrowers has been minimal, even though the RBI lowered its repo rates three consecutive times,” Puri said. Last year, cement rates actually come down on account of surplus production, but the rate cut in residential housing was never seen. However, there could be certain indirect benefits. Decrease in input costs will boost the supply pipeline, which can keep prices in check. The government’s dilemma There are many sectors other than real estate which are seeking possible change in GST slabs. The auto sector too is seeking relaxation as its sales are falling, by as much as 21% in May. This has led to a crisis in the sector where dealers <a href="https://www.businessinsider.in/passenger-car-sales-decline-sharply-in-april-on-back-of-low-demand/articleshow/69317716.cms">are shutting shops </a>and automakers are cutting production. As the GDP growth has fallen beyond expectations, the government might work on providing a stimulus to the sector. However, its tax revenues have also been falling, which means how much it can help the economy might come under question.

India's real estate developers want lower GST on cement-- but that is not going to make apartments cheaper

<ul><li>Shares of some Indian automobile companies have lost over 40% of their value since the start of the year.</li><li>Car makers have been the worst hit by the slump in demand triggered by slump in the Indian economy that has hit consumption.</li><li>The Narendra Modi government's rush to get people to move to electric cars is making business worse for makers of traditional cars that run on fossil fuels like petrol and diesel.</li></ul>Indian car makers are in dire straits. Sales have been falling for eight straight months now with no respite in sight. A weaker economy, rising unemployment and pessimism among consumers have led to a steady fall in demand for discretionary products like cars. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 The crisis has cost investors too. Share prices of car makers, which include some of the marquee names of corporate India, have lost a lot value-- some of them over 40% -- since the start of 2019. And now, there is more bad news that has taken the wind out of auto stocks like Ashok Leyland, Maruti Suzuki, Tata Motors, and M&amp;M today. <table style="width: 169pt;"> </colgroup></colgroup> <tbody><tr> <td class="xl65" style="height:15.0pt;width:73pt">Stock</td> <td class="xl71" style="border-left-width: initial; border-left-style: none; width: 48pt;">July 29</td> <td class="xl66" style="border-left-width: initial; border-left-style: none; width: 48pt;">Last 1 Year</td> </tr> <tr> <td class="xl67" style="height: 15pt; border-top-width: initial; border-top-style: none;">Ashok Leyland</td> <td class="xl69" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-3.44%</td> <td class="xl72" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-35.95%</td> </tr> <tr> <td class="xl67" style="height: 15pt; border-top-width: initial; border-top-style: none;">Maruti Suzuki</td> <td class="xl69" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-3.75%</td> <td class="xl72" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-40.48%</td> </tr> <tr> <td class="xl67" style="height: 15pt; border-top-width: initial; border-top-style: none;">Tata Motors</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-5%</td> <td class="xl72" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-45.94%</td> </tr> <tr> <td class="xl68" style="height: 15.75pt; border-top-width: initial; border-top-style: none;">M&amp;M </td> <td class="xl73" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-1.60%</td> <td class="xl74" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-39.23%</td> </tr></tbody></table> The government wants more Indians to adopt electric vehicles, and dump their old cars that run on fossil fuels like petrol and diesel. Electric cars may be better for environment but there are many concerns including the feasibility for customers and the availability of infrastructure to name a few. The government has cut the <a href="https://www.businessinsider.in/gst-council-slashes-tax-on-evs-and-ev-chargers/articleshow/70407724.cms" data-type="tilCustomLink" target="_blank">goods and services tax on electric cars</a> to less than half and <a href="https://www.businessinsider.in/union-budget-2019-indian-government-announces-tax-subsidy-for-purchasers-of-electric-vehicles/articleshow/70091003.cms" data-type="tilCustomLink" target="_blank">offered tax rebates</a> on interest paid loans taken to buy electric cars, aside from setting aside <a href="https://www.businessinsider.in/electric-vehicles-policy-under-fame-ii-offers-incentives-for-local-manufacturing-and-subsidies-for-buyers/articleshow/68314114.cms" data-type="tilCustomLink" target="_blank">a ₹100 billion earlier this year</a> to incentivise electric car manufacturing in India. 
 
 
 
 
 
 <div type="ExtQuote" text="While the EV segment is still facing challenges of limited product availability, charging infrastructure constraints and product viability issues, the government is stepping up its efforts to kick-start its adoption, and appears willing to raise the regulatory burden on conventional vehicles to incentivise the former." auname="CLSA (a global broking house)"></div>











 More bad news The Ministry of Road Transport and Highways has come up with a draft policy to promote old car owners to scrap their vehicles in exchange for free registration for a new car. However, for those who can't avail the incentive, the registration fee will rise up to 40 times. <table style="width: 321pt;"> </colgroup></colgroup> <tbody><tr> <td class="xl64" style="height:15.0pt;width:137pt">Proposed Fees</td> <td class="xl65" style="border-left-width: initial; border-left-style: none; width: 86pt;">New Registration</td> <td class="xl65" style="border-left-width: initial; border-left-style: none; width: 26pt;">Hike</td> <td class="xl65" style="border-left-width: initial; border-left-style: none; width: 46pt;">Renewal</td> <td class="xl66" style="border-left-width: initial; border-left-style: none; width: 26pt;">Hike</td> </tr> <tr> <td class="xl67" style="height: 15pt; border-top-width: initial; border-top-style: none;">Two-wheeler</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">₹1,000</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">20x</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">₹2,000</td> <td class="xl68" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">40x</td> </tr> <tr> <td class="xl67" style="height: 15pt; border-top-width: initial; border-top-style: none;">Three-wheeler</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">₹5,000</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">17x</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">₹10,000</td> <td class="xl68" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">33x</td> </tr> <tr> <td class="xl67" style="height: 15pt; border-top-width: initial; border-top-style: none;">Private car</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">₹5,000</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">8x</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">₹15,000</td> <td class="xl68" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">25x</td> </tr> <tr> <td class="xl67" style="height: 15pt; border-top-width: initial; border-top-style: none;">Taxi</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">₹10,000</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">10x</td> <td class="xl63" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">₹20,000</td> <td class="xl68" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">20x</td> </tr> <tr> <td class="xl69" style="height: 15.75pt; border-top-width: initial; border-top-style: none;">Medium and heavy vehicles</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">₹20,000</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">13x</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">₹40,000</td> <td class="xl71" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">26x</td> </tr></tbody></table>Source: <a href="https://www.rushlane.com/new-car-registration-free-12318654.html" data-type="tilCustomLink" target="_blank">Rush Lane</a> "The government also intends to increase the cost of ownership of old vehicles by raising charges for their registration renewal. We, however, believe the above policy measures will be unable to trigger much replacement demand and hence are unlikely to provide much of a boost to auto demand. First, the number of vehicles that are older than 15 years and still in active use is very limited. The owners of such vehicles will usually have limited financial capability to buy new or other vehicles in the secondary market (even if incentives are transferrable), and hence are less likely to go for this voluntary scrappage scheme," CLSA explained. Car makers have had to offer deep discounts to bring people into showrooms. These discounts are far more than the incentive available on registration renewals and yet, they have failed to revive demand for cars. The policy squeeze will be an added burden on the companies. SEE ALSO: <a href="https://www.businessinsider.in/gst-council-slashes-tax-on-evs-and-ev-chargers/articleshow/70407724.cms" data-type="tilCustomLink" target="_blank">Buy electric vehicles for less now, GST council slashes rate from 12% to 5%</a> <a href="https://www.businessinsider.in/nissan-may-lay-off-over-1700-employees-in-india/articleshow/70389996.cms" data-type="tilCustomLink" target="_blank">Nissan may lay off over 1,700 employees in India as car sales slow down</a> <a href="https://www.businessinsider.in/Top-10-electric-cars-that-people-are-excited-about/Tesla-Model-X-507990-searches/slideshow/70404198.cms" data-type="tilCustomLink" target="_blank">Top 10 electric cars that people are excited about</a>

India's push for electric vehicles is haemorrhaging car makers

With the arrival of new stable government, <keyword id="6355261" type="POSITION" weightage="60" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="60" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> is all set to present the <keyword id="6360189" type="COMPANY" weightage="80" keywordseo="Union-Budget">Union Budget</keyword> 2015-16. Since it is the <keyword id="6360789" type="ORGANIZATION" weightage="80" keywordseo="Modi-Government">Modi government</keyword>’s first full-term budget and they already have promised a transformational budget, expectations are high on decisions to be taken for any sector of the country and automotive sector is no different. Here is AutoPortal’s take on the automobile industry and the budget impact on it. 
 
With the increasing growth in demand on back of rising income, expanding middle class and young population base, in addition to a large pool of skilled manpower and growing technology, will propel India to be among the world's top five auto-producers by 2015. 
 A report published by Delloite says, “India is expected to become a major automobile manufacturing hub and the third largest market for automobiles by 2020”. The automotive industry in India accounts for around 22% of the country's manufacturing gross domestic product (<keyword id="35050" type="CITY" weightage="60" keywordseo="gdp">GDP</keyword>) and is one of the largest employment creators of the <keyword id="34412" type="ORGANIZATION" weightage="60" keywordseo="economy">economy</keyword>. 
 
However, sales of passenger vehicles in the domestic market grew just 3.67% in the April-December period (mainly after the excise cuts) this fiscal in comparison with the same period a year ago and the industry went through slowdown for most of last year. 
 The situation got worsen in January 2015, after the withdrawal of <keyword id="6356916" type="UNKNOWN" weightage="60" keywordseo="excise-duty">excise duty</keyword> concessions, car sales in India witnessed major decline with main players <keyword id="44883" type="CITY" weightage="80" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword> and <keyword id="596" type="CITY" weightage="80" keywordseo="Hyundai">Hyundai</keyword> posting single digit growth in January, while others like <keyword id="121834" type="COMPANY" weightage="80" keywordseo="GM-India">GM India</keyword> and Ford saw decline in sales. 
AutoPortal’s outlook on the upcoming budget over automobile industry is: 
 
· Reduction in excise duty: In February 2014 interim budget, excise duty on small cars, scooters, motorcycles and commercial vehicles was reduced to 8% from 12% previously. For SUVs, it was cut to 24% from 30%; for mid-sized cars, to 20% from 24%, and to 24% for large cars from 27% earlier, in the hope of boosting the sector. In June2014, the new government led by Prime Minister <keyword id="6354477" type="PERSON" weightage="80" keywordseo="Narendra-Modi">Narendra Modi</keyword> extended the excise duty concessions till December 2014. As a result, auto manufacturers were forced to increase prices. The auto industry SIAM, further wants to extend the relaxation in duties as this would keep the cost of ownership down for the ultimate owners and increase the interest for new buys. Further, long-term stability in excise duty structure is needed across the country, so that manufacturers can plan their products strategy for the next 3-5 years. 
 
· Inverted duty structure: The government is expected to address the inverted duty structure in the forthcoming Budget. Under the inverted duty structure, taxation of inputs is at higher rates than finished products that results in build-up of credits and cascading costs, thus favouring imports of raw material. Under the government’s “Make in India” approach, it is suggested to remove inverted duty structure to protect the interests of domestic industry. 
 
· Implementation of <keyword id="6354679" type="ORGANIZATION" weightage="60" keywordseo="GST">GST</keyword>: Implementation and speedy action on GST will bring in growth to the economy and create a uniform tax structure across all states. Also this will persuade more exports through increased competitiveness in the international market. The auto industry is keenly looking forward to the roadmap and introduction of GST. 
 
· Scrappage Subsidy Schemes: Introduction of Scrappage Subsidy Schemes on lines of European counterparts, which will clean old cars off the road. Budget should include Policy for scrapping old cars- 15 years and above, along with the infrastructure needed to scrap. This will benefit the environment, reduce fuel consumption and also propel further demands for automotives. 
 
· Green initiatives to manufacturing of electric and hybrid cars: With the upcoming budget, Green initiatives from the government to boost sale of electric and hybrid vehicles is expected and also needed as ‘Go Green’ is the motto for all leading economies of the world. The government is expected to announce special tax incentives to promote eco-friendly vehicles and provide more sops for hybrid/ alternative fuel for vehicles, to increase the marketability and usage of these vehicles and to improve environment and economy by bringing down fuel imports. Continuation of the tax incentives from the Budget for 2014-15 like investment allowance and duty cuts for hybrid vehicles/ parts is also expected. 
 
Electric cars are an eco-friendly variant of four-wheelers. But these cars need to be charged regularly which requires a particular infrastructure (charging locations) across the country. The auto sector needs the government to help setup the charging infrastructure across cities. 
 
· Custom duty unchanged for exported cars: Fully imported cars attract a customs duty in excess of 125%. To promote “Make in India” and to provide healthy competitive platform to domestic players, the auto industry hopes that the budget will retain the customs duty at the current rate which ultimately increases the cost of imported cars. 
 
· Lowering of interest rates for financing vehicles: According to a Business World report, “Over 80% of the vehicles purchased in India are purchased with financing from banks and other institutes”. Thus, a reduction in bank <keyword id="37018" type="UNKNOWN" weightage="80" keywordseo="interest-rate">interest rate</keyword> on loans will overall reduce the cost for the consumer, ultimately improving the demand for the automobiles. 
 
Before it is too late and the auto industry is back to the days of poor demand and high taxes, it needs a big push from the upcoming Budget to be back on a growth trajectory. In the wake of the government's 'Make in India' and big expectations from the upcoming budget, Indian auto industry shall witness an unprecedented sales and demand growth. 
 
About the author: This article has been authored by Sagar Das, head-<a href="http://autoportal.com/">Autoportal.com</a>, ex-India dot com Product Management &amp; business of OnCars. 
 
Image source: Autoportal

Budget 2015: Auto sector demands tax sops

The auto industry witnessed biggest drop in 16 years in December as the sales fell by 18.66% in the month to 1.2 million units. 
 
This major fall is attributed to <a href="http://www.businessinsider.in/searchresult.cms?query=demonetisation&amp;sortorder=effectivedate">demonetisation</a>, which shook the industry. Now, the auto industry has high hopes from <a href="http://www.businessinsider.in/searchresult.cms?query=budget+2017&amp;sortorder=effectivedate">Budget 2017</a> that it will bring some reprieve for the automakers. 
 
"Budget is something which we all are hoping that the government will bring measures to boost consumer sentiment," <a href="http://www.businessinsider.in/searchresult.cms?query=SIAM&amp;sortorder=effectivedate">Society of Indian Automobile Manufacturers</a> (SIAM) Director General Vishnu Mathur said. 
 
READ ALSO: <a href="http://www.businessinsider.in/indias-auto-sector-witnesses-biggest-drop-in-16-years-thanks-to-demonetisation/articleshow/56470498.cms">India’s auto sector witnesses biggest drop in 16 years, thanks to demonetisation</a> 
 
The auto industry hopes <a href="http://www.businessinsider.in/searchresult.cms?query=arun+jaitley&amp;sortorder=effectivedate">Finance Minister Arun Jaitley</a> to announce a slew of initiatives such as concrete policy on fleet modernisation, specially of commercial vehicles and passenger vehicles. 
 
"We have also pointed out that the incentive scheme for electric mobility under the FAME scheme must be extended as most of the automobile companies have been working towards this direction," Mathur said. 
 
In order to promote eco-friendly vehicles, the government had formally launched the FAME India scheme in 2015 offering incentives on electric and hybrid vehicles of up to Rs 29,000 for bikes and Rs 1.38 lakh for cars. It envisaged Rs 795 crore support for the first two fiscals. Faster Adoption and <keyword id="3496050" type="UNKNOWN" weightage="20" keywordseo="manufacturing-of-hybrid-and-electric">Manufacturing of Hybrid and Electric</keyword> vehicles in India (FAME India) is part of the National Electric Mobility Mission Plan. 
 
On the taxation side, Mathur said it is unlikely that the <a href="http://www.businessinsider.in/searchresult.cms?query=GST&amp;sortorder=effectivedate">GST </a>will be implemented from April 1. 
 
"However, we have been seeking moderation of taxation for the automobile industry and reduction of slabs from the current four, ranging from 12-30 per cent, to two slabs," he said. 
 
SIAM had proposed a base rate for small cars and two- wheelers and another 8 per cent addition to that for larger cars, he added.

Hit hard by demonetisation, auto industry hopes for incentive schemes, moderate taxes in Budget 2017

Beijing, Chinese tech giant <keyword id="6357456" type="COMPANY" weightage="20" keywordseo="huawei">Huawei</keyword> is planning to make <keyword id="6358835" type="UNKNOWN" weightage="20" keywordseo="Electric-cars">electric cars</keyword> under its own brand, and some models may even be launched before the end of this year. According to GSMArena, Richard Yu, head of Huawei's consumer business group, who was in charge of the company's amazing rise in the smartphone world, is said to shift his focus to EVs, which will target the mass-market segment. Huawei is in talks with state-owned <keyword id="372509" type="COMPANY" weightage="20" keywordseo="Changan-Automobile">Changan Automobile</keyword> and <keyword id="10843815" type="UNKNOWN" weightage="20" keywordseo="other-automakers">other automakers</keyword> to use their car plants to make its electric vehicles (EVs), according to two of the people familiar with the matter. Huawei is also in discussions with Beijing-backed BAIC Group's BluePark New Energy Technology to manufacture its EVs. In addition, another Chinese tech company <keyword id="874458" type="COMPANY" weightage="20" keywordseo="Xiaomi">Xiaomi</keyword> is also planning to build its own car and is considering it as a strategic decision, but specific details and the path it aims to take are yet to be determined. As far as project leadership is concerned, Xiaomi's current CEO, Lei Jun, will be directly heading it. Back in 2013, Lei Jun had visited the US twice to meet with Tesla CEO Elon Musk and now it seems that its interest on the field has grown. The Indian market has also seen a demand for smart vehicles, and auto companies like Tata, Mahindra and others are offering their electric vehicles. SEE ALSO: <a href="https://www.businessinsider.in/india/news/bharat-bandh-over-eight-crore-traders-across-india-shut-shop-in-protest-against-rising-fuel-prices-and-changes-in-gst-rules/articleshow/81223361.cms">Bharat Bandh – over eight crore traders across India shut shop in protest against rising fuel prices and changes in GST rules</a> <a href="https://www.businessinsider.in/finance/banks/news/ignore-low-cibil-score-for-street-vendor-loans-work-on-holidays-and-other-diktats-from-indian-government-to-banks-rushing-to-meet-march-target/articleshow/81223572.cms">EXCLUSIVE: Ignore low CIBIL score for street vendor loans, work on holidays, and other diktats from Indian government to banks rushing to meet March target</a> <a href="https://www.businessinsider.in/india/news/india-now-allows-you-to-avail-a-discount-on-flight-ticket-if-you-are-not-carrying-a-check-in-baggage/articleshow/81225977.cms">India now allows you to avail a discount on flight ticket if you are not carrying a check-in baggage</a>

Huawei aims to make electric cars later this year

<ul><li>The MG ZS electric vehicle is now available for purchase in 5 cities across India.</li><li>Customers who had pre-booked their ZS EV will get a discount of ₹1 lakh.</li><li>MG is offering a 5-year warranty on the car. Customers also get free fast charging at MG dealerships for a limited time period.</li></ul>MG Motor today launched its second car in India, the ZS EV. The variants Excite and Exclusive are priced at₹20.88 lakhs and ₹23.88 lakh, respectively. The British automaker who had a successful launch of MG Hector, is now doling out many attractive offers with the EV cars. Customers who have booked the car before January 17 will get a discount of ₹1 lakh. It is also offering a special warranty plan called MG eShield. This plan offers 5-year manufacturer's warranty for unlimited kilometers and 8-year or 1,50,000-kilometer warranty on the battery. The car which will be assembled at its Halol plant in Gujarat, is available for order in five cities – Delhi, Mumbai, Bengaluru, Hyderabad and Ahmedabad. “The ZS EV is a globally-successful product that operates at the intersection of an EV’s sustainability, an SUV’s practicality, and a sports car’s performance. It comes with best-in-class features and tech capabilities at a compelling price point. We are confident that this unprecedented value proposition will incentivise more consumers across India to go electric,” said Rajeev Chaba, President and MD – MG Motor India. The ZS EV’s running cost is pegged at ₹1 per km, as per electricity rates in Delhi-NCR. The carmaker also said that it has already received 2,800 bookings in 27 days after it announced it in December. “The number of bookings received for the ZS EV outpaces the total number of EV cars sold in India in 2019,” the press release says. Windmill inspires wheels The MG ZS EV can go from 0-100kmph in 8.5 seconds. It does not look radically different from regular cars, and that is probably by design. It has windmill-inspired wheels, projector headlamps with daytime running lights, and keyless entry/lock. Internally, the ZS EV has an 8-inch panel that helps manage the car. It comes with six airbags, 3-point seat belts for all passengers, a PM2.5 filter and a sunroof. The engine is rated at 141 BHP and 353Nm torque. MG claims that the ZS EV offers a range of up to 340km. MG has also set up fast chargers at its dealerships in the five cities mentioned above. These fast chargers can charge the ZS EV from 0-80% in 50 minutes. Buyers can charge their cars for free at these dealerships for a limited time period. Apart from this, MG will install a 7.4kW AC charger at the home or office of the car owners. This charger can fully replenish the battery of the ZS EV in 6-8 hours. See also: <a href="https://www.businessinsider.in/business/auto/news/mg-motors-new-car-mg-zs-ev-is-5g-ready-and-other-tech-features/articleshow/72342064.cms">MG Motors’ 5G ready electric car will send low battery-over speeding alerts – and even understand Indian accent</a> <a href="https://www.businessinsider.in/policy/economy/8-ideas-for-budget-2020-to-make-ev-batteries-cheaper/articleshow/73302145.cms">8 ideas for Budget 2020 to make EV batteries cheaper</a> <a href="https://www.businessinsider.in/budget/news/budget-2020-auto-industry-expectations-range-from-gst-cuts-to-another-ev-boost/articleshow/73250322.cms">Budget 2020: Auto industry expectations range from GST cuts to another EV boost</a>

You Searched For "GST on electric cars" and got 12 results

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