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<ul><li>Japanese automobile multinational <keyword id="46283" type="COMPANY" weightage="20" keywordseo="Nissan">Nissan</keyword> is considering laying off 12,500 employees worldwide in the next three years — including 1,710 in India. </li><li>This accounts for 9% of the company’s total workforce. </li><li>The company will trim nearly 4,700 employees in the US, Mexico, UK, Spain, Indonesia and Japan. </li><li>The Japanese major will also decrease its production capacity by 10% by 2022.</li></ul>The slowdown in auto sales led to a job crisis in the sector. Japanese multinational Nissan is considering laying off <a href="https://economictimes.indiatimes.com/news/international/business/nissan-to-cut-over-10000-jobs-worldwide-report/articleshow/70356290.cms">12,500 employees</a> worldwide in the next three years — 9% of the total workforce. And, as many as 1,710 of these jobs will be slashed in India. The layoffs are expected to take place this year. However, the car maker has not specified the job roles which will be most affected. Auto makers in India have been cutting production after sales have been dull for a year now. Jobs have been on the line too, as auto component makers and dealers are also facing the heat of declining sales. The passenger vehicle sales in India dipped by 17% in April — the lowest in the last eight years, as per data by Society of Indian Automobile Manufacturers (SIAM). Nissan’s jobs cuts however extend beyond India. It will impact its employees mostly in the US, Mexico, UK, Spain, Indonesia and Japan, where it will trim nearly 4,700 jobs. And, a further 6,100 jobs will be cut across countries, between 2020 and 2022. The Japanese major will also cut its production capacity by 10% by 2022 to “improve product competitiveness by focussing investment on global core models and strategic regional models,” BusinessLine<a href="https://www.thehindubusinessline.com/specials/auto-focus/nissan-to-cut-1700-jobs-in-india/article28712488.ece"> reported.</a> This is in an effort to optimise operational cost, improve profits, and maintain consistency. The automaker’s net profit slumped drastically to a nine-year low at nearly ₹200 billion as on March 2019. The company has been in trouble since November 2018, when its CEO, Carlos Ghosn was arrested in Tokyo on suspicions on <a href="https://www.bbc.com/news/business-47808730">financial misconduct</a>. Ever since, the automobile giant witnessed slump in sales in almost every location. Ghosn also sued Nissan for <a href="https://www.rushlane.com/tata-h2x-suv-and-altroz-share-parts-12318280.html">₹1.16 billion</a> saying that it had provided no evidence of misconduct. See also: <a href="https://www.businessinsider.in/auto-sector-slowdown-puts-one-million-contractual-jobs-at-risk/articleshow/70373751.cms">Auto sector slowdown puts one million contractual jobs at risk</a> <a href="https://www.businessinsider.in/budget-2019-proposal-lower-tax-likely-on-cars/articleshow/69723060.cms">With 32 million jobs at stake in India’s auto sector, the Modi government may ease tax burden on cars</a> <a href="https://www.businessinsider.in/deutsche-bank-will-cut-18000-jobs-as-it-shuts-down-most-of-asias-loss-making-equities-business/articleshow/70123709.cms">Deutsche Bank will cut 18,000 jobs as it shuts down most of Asia's loss-making equities business</a>

Nissan may lay off over 1,700 employees in India as car sales slow down

Post <a href="http://www.businessinsider.in/searchresult.cms?query=demonetisation&amp;sortorder=effectivedate">demonetisation</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=automobile+sector&amp;sortorder=effectivedate">automobile sector</a> has seen a steep decline in sales. The number of people visiting the dealership has gone down significantly low. 
 
With small business and trading communities are holding themselves from purchasing decisions because of cash crunch, retail sales are expected to go down by 30%. 
 
The situation is worse in the used car market and service stations as these mostly have transactions that are done in cash. 
 In markets such as Gujarat, Delhi and Punjab where the number of people that pay in cash is higher, sales may have dropped as much as 50% after the <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword> was announced on November 8, bankers and dealers said.But all of that may not be lost sales. 
 "In Gujarat, where a lot of car purchases used to be in cash, actual car sales are nearly 50% down. But, some of this looks like short-term implication; the long-term demand is intact. This only looks like postponement of purchases,” <keyword id="384178" type="PERSON" weightage="20" keywordseo="Dipak-Gupta">Dipak Gupta</keyword>, joint managing director at <a href="http://www.businessinsider.in/searchresult.cms?query=Kotak+Mahindra+Bank+&amp;sortorder=effectivedate">Kotak Mahindra Bank </a>told ET. 
 
The rural part of the nation also has seen a very tremendous decline in demands as people there aren’t comfortable with banking systems. 
 
"Rural people are not so comfortable with the banking system and they believe in keeping cash at home,” a top executive at another auto firm, who didn't want to be named, told ET. 
 
Many prospective customers are preoccupied in managing the cash crunch, and probably have little time to think about things that aren't urgent, like buying of a car or a bike. 
 "Even where loans have been sanctioned people don't want to draw money right now,” <keyword id="55942" type="PERSON" weightage="20" keywordseo="Rajiv-Anand">Rajiv Anand</keyword>, executive director for retail banking at <keyword id="6355975" type="CITY" weightage="20" keywordseo="Axis-Bank">Axis Bank</keyword>, told ET. 
 
Auto dealers said they were writing to manufacturers to reduce dispatches looking at the demand situation. 
 
However, according to experts, there is demand, but buying has been delayed due to lack of funds. 
(image: indiatimes)

Demonetisation: November retail sales in automobile sector feared to go down by 30%

<ul><li>The drop in automobile sales will cost India nearly a million jobs. </li><li>The auto sector employs roughly 5 million workers in India, including 3.5 million contractual roles. </li><li>The auto sector saw a 17% drop in passenger vehicles sale in April. </li><li>Employers hire contractual staff at the time of growth while nearly 20% jobs are lost during production cuts.</li></ul><keyword id="46211" type="ORGANIZATION" weightage="20" keywordseo="Auto-sales">Auto sales</keyword> have been going down for over a year now, and it has resulted in production cuts. So much so, many dealerships have shut down too. The trickle down effect for the sector has started— as a <a href="https://economictimes.indiatimes.com/auto-component-industry-fears-loss-of-10-lakh-jobs-due-to-prolonged-slowdown/articleshow/70362395.cms">million contractual workers are at risk of losing their jobs</a>. This accounts for nearly 10%-15% layoffs per company. What’s worse is that the industry pegs this number much higher, owing to its tepid sales. The passenger vehicle sales in India saw a dip in April at 17% — the lowest in the last eight years, shows the data by Society of Indian Automobile Manufacturers (SIAM). This unprecedented decline has impacted both contractual and permanent employees. The <keyword id="6369865" type="UNKNOWN" weightage="20" keywordseo="job-loss">job loss</keyword> is largely due to the slowdown in sales in Gurugram-Manesar belt of Haryana, Pune, Jamshedpur and some parts of Madhya Pradesh, according to Automotive Component Manufacturers Association of India (ACMA). The auto sector employs roughly 5 million workers in India — including 3.5 million employed contractually. The sector employs a high percentage of contractual workers due to vagaries in production and demand in the sector. Employers hire contractual staff at the time of growth while <a href="https://www.livemint.com/auto-news/slowdown-in-auto-sales-10-15-people-lost-jobs-in-auto-component-industry-1563960909599.html">nearly 20% jobs</a> are lost during production cuts, explained Vinnie Mehta, director general, ACMA. “The industry needs urgent government intervention. There is an immediate need to stimulate vehicle demand and also sustain it post BS-VI implementation, as vehicles will become significantly expensive thereafter,” Ram Venkataramani, President, ACMA <a href="https://www.thehindubusinessline.com/economy/auto-component-industry-fears-loss-of-10-lakh-jobs-due-to-prolonged-slowdown/article28697949.ece">told</a> BusinessLine. “Whenever there is production cut of 20% by OEMs then there is job losses across the value chain of component manufacturers," he added. The exports in the sector also dropped to 17% during the last fiscal, which accounts to roughly ₹1 trillion. The industry exports nearly 26% of its components and products. See also: <a href="https://www.businessinsider.in/mahindra-mahindra-joins-maruti-suzuki-to-announce-a-car-price-hike/articleshow/69868857.cms">Car sales are woefully slow in India but prices are rising due to new green norms</a> <a href="https://www.businessinsider.in/maruti-mahindra-had-the-toughest-quarter-in-a-decade-as-car-sales-are-slow/articleshow/70287195.cms">A global investment firm has 'SELL' rating on 70% of Indian car makers because sales may not pick up speed</a> <a href="https://www.businessinsider.in/cellestial-e-mobility-has-raised-funds-to-launch-electric-tractors/articleshow/70344435.cms">A Hyderabad-based startup has raised funds to launch its electric tractors</a>

Auto sector slowdown puts one million contractual jobs at risk

New Delhi [India], July 12 (ANI): The <keyword id="20025828" type="General" weightage="20" keywordseo="two-wheeler-sales" source="keywords">two-wheeler sales</keyword> in India in June registered a growth of 21.3 per cent year-on-year (Y-o-Y), highlights the sales data released by the <keyword id="20163832" type="General" weightage="20" keywordseo="society-of-indian-automobile" source="keywords">Society of Indian Automobile</keyword> Manufacturers (SIAM) on Friday. The data highlighted that in June the total sales of the two wheelers were recorded at 16,14,154 units which is a 21.3 per cent increase from 13,30,826 two wheeler sold in June 2023. The sales of the scooters also surged to a record 42 per cent Y-o-Y in June to 5.4 lakhs, last year in June it was at 3.8 lakhs. The sales of Bikes also registered two-fold growth with sales increased by 11 per cent in June to 10.3 lakhs as compared to 9.1 lakh last year during the same period. The <keyword id="20028264" type="General" weightage="20" keywordseo="passenger-vehicle-sales" source="keywords">passenger vehicle sales</keyword> also registered a growth of 3 per cent Y-o-Y in June. The total passenger vehicle sales during June stands at 3,37,757 units, it was 3,27,788 units during June 2023. The sales of <keyword id="20412606" type="General" weightage="20" keywordseo="three-wheelers" source="keywords">three-wheelers</keyword> surged twofold by an increase of 12.3 per cent, according to the data total 59, 544 units of three wheelers were sold in June 2024 as against 53, 025 units sold in June 2023. The sales data for June demonstrates a positive outlook for the Indian <keyword id="20081560" type="General" weightage="20" keywordseo="automobile-industry" source="keywords">automobile industry</keyword>. The substantial growth in two-wheeler sales, particularly scooters and motorcycles, along with the steady increase in passenger and three-wheeler sales, reflects a resilient and expanding automobile market in India. Earlier in May, the sales of passenger cars dropped by over 11 per cent, according to the data by the Society of Indian Automobile Manufacturers (SIAM). The domestic sales of passenger cars also slipped 11 per cent from 1,20,364 units in May 2023 to 1,06,952 units in May 2024. The auto companies also reduced the production of passenger cars by 13 per cent, from 1,63,619 units in May 2023 to 1,42,367 units 2024. Export of passenger cars too saw a drop of about 20 per cent from 35,806 units in May 2023 to 28,802 units in May 2024. However, the sales number of June showed the positive signs of growth in the automobile industry.

Auto sales see a positive trend in June, two-wheeler sales register 21% annual growth: SIAM data

<keyword id="118101" type="UNKNOWN" weightage="20" keywordseo="automobile-companies">Automobile companies</keyword> think that the decision of the Reserve Bank of India (<keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword>) to cut interest by 25 basis points is "too little, too late." "While this is definitely a welcome move, but it is too little too late. We were expecting a rate cut of 50 basis points," PTI quoted <keyword id="44666" type="COMPANY" weightage="20" keywordseo="General-Motors-India">General Motors India</keyword> Vice President <keyword id="310541" type="PERSON" weightage="20" keywordseo="P-Balendran">P Balendran</keyword>. 
 Similarly, <keyword id="6357085" type="PERSON" weightage="20" keywordseo="Ashok-Leyland">Ashok Leyland</keyword> Vice- President (Buses) T Venkataraman said, "25 basis points cut is way too less." 
 
Society of Indian Automobile Manufacturers (SIAM) Deputy Director General Sugato Sen welcomed the move, but he also added that it was not enough. "The 25 basis points reduction is not going to have any impact on the EMIs. We expect the rates to further come down in the next few months and also the banks to reduce their lending rates," he said. 
 Rakesh Srivastava, senior vice president, sales and marketing, <keyword id="108829" type="CITY" weightage="20" keywordseo="Hyundai-Motor-India">Hyundai Motor India</keyword> Ltd said, "We look forward to further reduction and further initiatives on the ease of getting finance and low cost of financing. This will help the auto industry by bringing down the cost of ownership of vehicles and will act as catalyst to bring growth in the automobile sector." 
 
He further added that the move would help the auto industry and the manufacturing sector in general, which is an integral part of the Narendra Modi government's Make in India campaign.

Automobile Companies Term RBI’s Rate Cut As “Too little Too Late”

<ul><li>The sharp slump in car sales has squeezed profits in India’s auto sector, which employs 32 million people. </li><li>Half a million passenger vehicles worth $5 billion, are lying unsold at dealerships. </li><li>The automobile sector currently attracts 28% GST slab. </li><li>Seven of the top ten auto manufacturers like Maruti Suzuki, Tata Motors and Mahindra have announced factory shutdowns. </li></ul>The newly appointed Finance Minister Nirmala Sitharaman is mulling taking a few items off the list which attracts the highest tax under India’s goods and services tax (GST) regime. And, auto sector, which has been weighed down by piling inventory and sales slowdown, is most likely candidate, according to an <a href="https://economictimes.indiatimes.com/news/economy/policy/more-items-likely-to-go-off-highest-gst-slab/articleshow/69718462.cms">ET report</a>. Currently, the automobile sector attracts 28% GST along with personal-use aircrafts, lotteries and five-star hotels and unhealthy foods like aerated water. The sector <a href="https://www.bsmotoring.com/news/domino-effect-of-auto-crisis-livelihoods-indias-gdp-growth-may-take-hit/17095">employs around 32 million people</a> across the country, directly or indirectly, and has been the single-greatest engine of economic growth across the world. Any benefits that flow into the sector, trickles down to every sector. As the government looks to create employment, this sector which is capable of moving the growth engine, is seen as a favourite. Right now, the sector is facing shutdowns after a long spell of slowdown. This will have a much deeper effect on the employment in the sector which employs skilled and unskilled workers. As per the latest data, <a href="https://www.businesstoday.in/sectors/jobs/jobless-in-motown-employment-auto-industry-fell-2017-18/story/336097.html">hiring in the sector</a> went down by 2.5% in 2017-18 annual data. Unsold inventory at $5 bn According to<a href="https://economictimes.indiatimes.com/industry/auto/auto-news/auto-companies-slam-brakes-on-production/articleshow/69718548.cms"> an ET report</a>, seven of the top ten auto manufacturers like Maruti Suzuki, Tata Motors and Mahindra have announced factory shutdowns. Almost half a million passenger vehicles worth $5 billion, are lying unsold at dealerships. As many as 3 million two-wheelers valued at $2.5 billion are unsold too. Auto dealers too have been shuttering down as they are unable to move cars from the showrooms. In the slow lane For the month of April, the Indian auto sales declined by almost 16% annually, according to the Society of Indian Automobile Manufacturers (SIAM). All the segments like commercial and passenger vehicles, two wheelers moved to the red. The wholesale passenger vehicle sales segment went down by 17%, impacted by various factors. “Passenger vehicles sales volume declined due to the weak buyer sentiments on account of higher insurance premiums, the increase in fuel prices as well as the interest costs. Sales were also impacted by various regulatory changes in the industry such as BS-VI, FAME-II as well as alternate mobility. The lack of clarity on the policy front could lead to uncertainty in the demand pattern in 2019-20,” said a report by India Ratings on April sales volume. Little room for a cut The central government led by Narendra Modi, has to walk a tightrope this Budget. The country is on the verge of a slowdown as GDP growth is all set to be lower than the expected 7%. At the same time, their ability to provide sops is also low as tax collections have come in slowed down. The government tax receipts this year <a href="https://www.businessinsider.in/there-is-a-lot-of-bad-news-that-modi-has-to-budget-for-this-year/articleshow/69635372.cms">are 5% lower </a>than what they were last year, throwing government into cost savings mode. SEE ALSO: <a href="https://www.businessinsider.in/there-is-a-lot-of-bad-news-that-modi-has-to-budget-for-this-year/articleshow/69635372.cms" data-type="tilCustomLink">There is a lot of bad news that Modi Government has to budget for, this year</a>

With 32 million jobs at stake in India’s auto sector, the Modi government may ease tax burden on cars

<ul><li>India's auto sector continues to reel under the economic impact of the Covid-19 outbreak, as only 3,500 <keyword id="81756" type="PERSON" weightage="20" keywordseo="dealerships">dealerships</keyword> are operational across the country now.</li><li>In fact, half of these dealerships are just utilising their workshops capacities.</li><li>According to the <keyword id="609771" type="COMPANY" weightage="20" keywordseo="Federation-of-Automobile-Dealers">Federation of Automobile Dealers</keyword> Associations (FADA), even under lockdown 3.0, as on date just 20% of the total network has opened up.</li></ul>India's auto sector continues to reel under the economic impact of the Covid-19 outbreak, as only 3,500 dealerships are operational across the country now. The low number of operational dealerships comes even after relaxed movement norms were implemented across the country in the third phase of the nationwide lockdown. In fact, half of these dealerships are just utilising their workshops capacities. According to the Federation of Automobile Dealers Associations (FADA), even under lockdown 3.0, as on date just 20 per cent of the total network has opened up, which is close to 3,500 outlets. Currently, FADA represents over 15,000 automobile dealers having 25,000 dealerships, including 30 Associations of Automobile Dealers at the regional, state and city levels, accounting for 90 per cent of the total market share in India. "This number is going up on a daily basis as many dealers are in the process of obtaining permission to open up their businesses" Ashish Harsharaj Kale, President, FADA, told IANS. At present, the country has entered into the third and a more relaxed phase of lockdown. Some industrial and retail activities are allowed under this phase, depending on the geographical area of the operations. The whole country is divided into zones which are designated as red, orange or green depending upon the number of Covid-19 cases detected in these areas. The lockdown has dealt a heavy blow to commercial activities, leading to temporary closure of shopping malls, dine-in restaurants, grounding of aircraft, shutting down of factories, leaving major market places deserted. Not just the automobile sector, even the government's own revenue collection has been impacted. In terms of <keyword id="6357824" type="UNKNOWN" weightage="20" keywordseo="sales">sales</keyword> during the current month, Kale said: "May is going to be a slow month in terms of sales, as the auto industry is currently focusing on getting operational. It is difficult to comment on how the recovery in business is going to be like." Business and demand revival will strongly depend on the withdrawal date of the nationwide lockdown. More importantly, the support package offered by the government to kick start the economy and the extent of it, along with new initiatives taken by the vehicle makers for boosting retail, will also have a bearing on demand revival. The country's auto sector is a key engine of economic activity. Presently, the automotive industry accounts for almost 50 per cent of manufacturing gross domestic product (GDP), 15 per cent of Goods and Services Tax (GST) and employs 37 million people directly and indirectly in India. See also: <a href="https://www.businessinsider.in/business/auto/news/maruti-suzuki-and-ford-will-home-deliver-cars-in-india-as-people-in-most-cities-are-still-under-strict-lockdown/articleshow/75571077.cms" data-type="tilCustomLink">Maruti Suzuki and Ford will home deliver cars in India as people in most cities are still under strict lockdown</a> <a href="https://www.businessinsider.in/business/news/audi-india-launches-online-sales-initiative-amid-coronavirus-pandemic/articleshow/75671863.cms" data-type="tilCustomLink">Audi India launches online sales initiative amid coronavirus pandemic</a>

Only one in five car dealerships have opened for business after India relaxed lockdown norms

Mumbai, Jan 28 () Lubes maker Gulf Oil expects the government to announce vehicle scrappage policy and reforms in the Budget -- to be presented on February 1 -- to boost demand in slowdown-hit auto sector.
"We majorly expect some reforms to boost the auto sector as it has seen a significant slowdown. We hope to see measures aimed at increasing liquidity in the hands of consumers (including possible personal income tax benefits) which can stimulate spending in this sector.
"We hope to see a robust implementation of the auto scrappage policy. We hope the government continues its thrust on infrastructure to strengthen and propel us forward on the path to higher growth once more," Gulf Oil MD Ravi Chawla said.
In 2019, the automobile industry recorded its worst-ever sales decline in two decades, with an unprecedented slowdown hampering vehicle offtake across segments. 
As per the data released by Society of Indian Automobile Manufacturers (SIAM) early this month, all vehicle segments reported de-growth last year as low consumer sentiments, weak rural demand and economic slowdown took toll on sales.
Overall wholesale of vehicles during the year across categories, including passenger vehicles, two-wheelers and commercial vehicles, saw a decline of 13.77 per cent in 2019 at 2,30,73,438 units as against 2,67,58,787 units in 2018.
Stating that the long-term outlook for the automotive industry is "very strong" as both demographically and economically, Citroen India senior vice president for sales and marketing, Roland Bouchara said it is well-positioned for growth in coming years.
"We are expecting a pragmatic budget with key focus on providing impetus to manufacturing sector," he added. 
The sector will also benefit from the government's strong focus on boosting infrastructure, Bouchara said.
"We hope the government further encourages the automobile industry and lays down long-term roadmap to help the sector plan its investments in new technologies and skill development," Bouchara said.
Tata Technologies believe the government should continue to focus on 'Make in India' in the forthcoming Budget and provide further incentives for investment in manufacturing units, its Chief Financial Officer, J K Gupta said.
"Further, GST rationalisation for automotive products can provide great support to OEMs who have been fighting the continued automobile slowdown, while supporting the transition from BS4 to BS6," Gupta stated. IAS BAL
BAL

Gulf Oil expects reforms to boost auto sector in Budget

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. 
 
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Budget 2015: Auto sector demands tax sops

India's automobile <keyword id="87998" type="PERSON" weightage="20" keywordseo="Retail-sales">retail sales</keyword> rose in September on a sequential basis, industry data showed on Thursday. However, sales remained in the red on a year-on-year basis. <keyword id="9396466" type="COMPANY" weightage="20" keywordseo="the-federation-of-automobile-dealers-associations">The Federation of Automobile Dealers Associations</keyword> data showed that <keyword id="6785608" type="UNKNOWN" weightage="20" keywordseo="vehicle-registration">vehicle registration</keyword> in September rose to 13,44,866 units from 11,88,087 units sold in August and a retail off-take of 11,42,633 units in July. Nevertheless, on a YoY basis, September retail sales declined by 10.24 per cent to 13,44,866 units from 14,98,283 units off-take during the like month of last year. Commenting on September'20 performance, <keyword id="354719" type="COMPANY" weightage="20" keywordseo="FADA">FADA</keyword> President Vinkesh Gulati in a statement said: "With the government's persistent effort to unlock India, the month of September continued to witness automobile registrations on a rise as compared to previous months. "Passenger Vehicles for the first time saw positive growth coming back on YoY basis. With social distancing on customer's mind coupled with the government's push to further normalise business conditions and banks becoming more considerate to finance vehicles, entry level passenger vehicles saw good demand thus indicating a preference for personal transportation over public." He cited new launches and vehicle availability played their part as catalyst. "A lower base during last FY also helped the cause." On a yearly comparison, passenger vehicles retail sales grew by 9.81 per cent to 1,95,665 units from 1,78,189 units off-take during the like month of last year. In contrast, two-wheeler sales de-grew by (-) 12.62 per cent to 10,16,977 units from 11,63,918 units sold during September 2019. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/infosys-to-acquire-us-based-data-analytics-company-for-125-million-deal-expected-to-close-in-third-quarter/articleshow/78551010.cms" data-type="tilCustomLink">Infosys to acquire US-based data analytics company for $125 million — deal expected to close in third quarter</a> <a href="https://www.businessinsider.in/india/news/here-are-the-guidelines-issued-by-the-dgca-for-the-refund-of-airline-tickets-booked-during-the-lockdown-period/articleshow/78547292.cms" data-type="tilCustomLink">Here are the guidelines for refund of airline tickets booked during the lockdown period issued by the DGCA</a>

Indian automobile retail sales rise in September, Passenger Vehicles segment back in green

<ul><li>The Japanese car making giant has been hit by severe slowdown in car sales in India.</li><li>Suzuki shares have lost over a sixth of its share value this year due to the fear of depleting earnings.</li><li>Maruti accounts for over 52% of Suzuki’s global sale volumes.</li></ul>India’s largest car maker Maruti Suzuki has cut production for eight months in a row due to lack of buyers. The depleting earnings for Maruti is affecting its Japanese parent Suzuki, who just announced a nearly 40% cut in its estimate for operating income this year. The shares of Maruti fell over 2% immediately after the announcement from Suzuki. "The Company hereby revises the consolidated business forecast due to decrease in Japan production in the course of restructuring final inspection scheme, slowdown in Indian automobile market, and exchange rate fluctuations," <a href="https://www.release.tdnet.info/inbs/ek/140120191010406987.pdf" data-type="tilCustomLink" target="_blank">Suzuki said in a filing</a> with the stock exchanges in Tokyo. <table style="width: 188pt;"> </colgroup> <tbody><tr> <td class="xl63" style="height:15.0pt;width:101pt">March 2020 Forecast</td> <td class="xl63" style="border-left-width: initial; border-left-style: none; width: 87pt;">Cut</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Net sales</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">10.30%</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Operating income</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">39.40%</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Ordinary income</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">35.30%</td> </tr> <tr> <td class="xl64" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 101pt;">Net income </td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 87pt;">30%</td> </tr></tbody></table> Brokerage house CLSA has maintained a 'buy' rating on Maruti Suzuki with a target price of ₹7,950 over the next 12 months hoping that the new models will lure some buyers who are still on the fence. The slowdown in car sales is not unique to Maruti. Car sales in India fell 20.5% in September compared to a year earlier. Aside from the economic slump in India, car buyers have shied away from showrooms expecting duty cuts and lower prices as well as fearing a loss of value for their new cars when the new emission norms kick in next year. This has been a debilitating blow for Suzuki for whom India makes for <a href="https://economictimes.indiatimes.com/industry/auto/maruti-continues-to-drive-suzukis-global-growth-story/articleshow/67860711.cms?from=mdr">over half of all its global sale volumes</a>. “In view of the current sales environment, we lower our estimates for India domestic sales to +0.2% for FY2019 (from +5.4%) and +3.7% for FY2020 (+6.4%),” JPMorgan said in a report in June. The steady decline in car sales in India has been the worst in 18 years, according to the Society of Indian Automobile Manufacturers (SIAM). In September 2001, after the tech bubble burst plunging the global economy into a temporary crisis, the sales had dropped down by 21.91%. In rural India, the decline in demand for cars is attributed to a protracted farm crisis, made worse by the ongoing water crisis and deficient monsoon in many parts. This has had a significant impact on Maruti, which has a deeper reach and penetration outside the big cities too. People in India increasingly prefer cab aggregators like Ola and Uber, or even <a href="https://www.businessinsider.in/cars24-used-cars-startup-could-soon-turn-profitable-will-breakeven-by-december-2019/articleshow/69993448.cms">second hand cars to new ones</a>. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/mahindra-suvs-and-pick-up-trucks-are-a-rage-in-south-africa-even-in-a-shrinking-market/articleshow/71518308.cms" data-type="tilCustomLink" target="_blank">Mahindra SUVs and pick-up trucks are a rage in South Africa even in a shrinking market</a> <a href="https://www.businessinsider.in/union-budget-2019-indian-government-announces-tax-subsidy-for-purchasers-of-electric-vehicles/articleshow/70091003.cms">Tata Motors, Maruti, Mahindra will benefit from tax deductions on electric vehicles</a> <a href="https://www.businessinsider.in/cars24-used-cars-startup-could-soon-turn-profitable-will-breakeven-by-december-2019/articleshow/69993448.cms">EXCLUSIVE: Cars24 is racing towards profitability as Indians choose used cars over new ones</a> <a href="https://www.businessinsider.in/tata-motors-jaguar-land-rover-moodys-downgrade/articleshow/69889499.cms">Jaguar Land Rover is dragging Tata Motors along in its downward spiral</a>

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Budget 2015: Auto sector demands tax sops

Guest Author

Indian automobile retail sales rise in September, Passenger Vehicles segment back in green

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Suzuki just slashed its operating income forecast by 40% citing slower sales in India

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