<keyword id="1392572" type="PERSON" weightage="20" keywordseo="automobile-dealers">Automobile dealers</keyword>' body FADA on Tuesday said <keyword id="762866" type="PERSON" weightage="20" keywordseo="passenger-vehicle">passenger vehicle</keyword> (PV) retail sales in November witnessed a year-on-year increase of 4.17 per cent to 2,91,001 units as <keyword id="8202952" type="COMPANY" weightage="20" keywordseo="diwali-dhanteras">Diwali-Dhanteras</keyword> period led to rise in <keyword id="815780" type="PERSON" weightage="20" keywordseo="Vehicle-registrations">vehicle registrations</keyword>. According to <keyword id="9396466" type="COMPANY" weightage="20" keywordseo="the-federation-of-automobile-dealers-associations">the Federation of Automobile Dealers Associations</keyword> (FADA), which collected vehicle registration data from 1,265 out of the 1,472 regional transport offices (RTOs), PV sales stood at 2,79,365 units in November 2019. Two-wheeler sales, however, declined 21.4 per cent to 14,13,378 units last month, as compared to 17,98,201 units in November 2019. Commercial vehicle sales also slipped 31.22 per cent to 50,113 units, as against 72,863 units a year ago. Similarly, three-wheeler sales fell 64.98 per cent to 24,185 units last month, from 69,056 units in the year-ago period. Tractor sales, however, grew by 8.47 per cent to 49,313 units last month, against 45,462 units in the same month last year. Total sales across categories declined 19.29 per cent to 18,27,990 units last month, compared to 22,64,947 units in the year-ago period. "While registrations during Navratri were tepid, people came out in good numbers to purchase their dream vehicles during the Dhanteras - Diwali period," <keyword id="9993894" type="UNKNOWN" weightage="20" keywordseo="fada-president-vinkesh-gulati">FADA President Vinkesh Gulati</keyword> said. New launches and specially compact SUV's continued to show good demand in the PV segment, he added. The two-wheeler segment continued to witness a shift from 100cc to 125cc and above category due to good harvesting coupled with Dhanteras-Diwali and marriage season, Gulati said. Commenting on small goods commercial vehicles, he said the segment continued to see good demand with increased level of transportation and last-mile connectivity needs. With schools and colleges continuing to remain closed, demand for buses remains weak. Similarly, the medium and heavy commercial vehicle (M&amp;HCV) segment continues to play spoilsport with excessive capacity, high prices of BS-VI models, finance issues and high fuel price, Gulati noted. "FADA once again urges the government to increase infrastructure spending, including timely payment to vendors and introduce attractive incentive based scrappage policy to revive the M&amp;HCV segment," he added. On sales outlook, Gulati said with the festive season coming to a close, demand revival now solely depends on year-end schemes. "If the supply chain issues in the passenger vehicle segment are controlled, we may see continued growth in December," he added. Gulati also cautioned the two-wheeler Original Equipment Manufacturer (OEMs) and dealers to keep a check on vehicle inventory as post festivals, demand may remain subdued. SEE ALSO: <a href="https://www.businessinsider.in/science/health/news/bharat-biotech-applies-for-emergency-use-approval-for-its-covid-19-vaccine-covaxin/articleshow/79617391.cms" data-type="tilCustomLink">Bharat Biotech applies for emergency use approval for its COVID-19 vaccine Covaxin</a> <a href="https://www.businessinsider.in/science/health/news/covid-19-vaccine-in-india-expert-panel-to-review-pfizer-serum-and-bharat-biotechs-emergency-use-application-tomorrow/articleshow/79617336.cms" data-type="tilCustomLink">COVID-19 vaccine in India: Expert panel to review Pfizer, Serum and Bharat Biotech's emergency use application tomorrow</a>

Passenger vehicle retail sales rise 4%, two-wheelers decline 21% despite festive boost: FADA

The <keyword id="20077" type="General" weightage="20" keywordseo="automobile-industry" source="Orion">automobile industry</keyword> is still not out of the woods and the Reserve Bank of India's (<keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword>) move to increase the repo-rate by 45 basis points will make vehicle loans expensive, said a top official of the Federation of Automobile Dealers Association (<keyword id="354719" type="General" weightage="80" keywordseo="fada" source="Orion">FADA</keyword>). Comparing the auto sales in April 2022 with that of April 2019 FADA President Vinkesh <keyword id="188080" type="General" weightage="80" keywordseo="gulati" source="Orion">Gulati</keyword> said the sector is still not out of the woods as overall retails were down by minus six per cent. Apart from PV (passenger vehicle) and tractors which grew handsomely by 12 per cent and 30 per cent, two/three wheelers, commercial vehicles are yet to turn green as these categories were down by minus-11 per cent, 13 per cent and 0.5 per cent, respectively, Gulati said. "The month of April (2022) saw similar Auto Retail figures as March'22. While YoY comparison with April'21 shows all categories in green with high growth rate, it is important to note that both April'21 and April'20 were affected by nation-wide lockdown due to phase 1 and 2 of the Covid wave which witnessed no to negligible business. Hence a better comparison will be with Aprila�19 which was a normal pre-covid month," Gulati said. He said the RBI's out of turn announcement of increasing repo-rate by 45 bps has taken everyone off-guard. "The move will curb excess liquidity in the system and will make auto loans expensive," he added. While the passenger vehicle segment may be able to absorb this shock due to long waiting periods, the two wheeler segment is already reeling due to an underperforming rural market, vehicle price hikes and high fuel costs. High interest rates for vehicle loan due to RBI's move will be an additional blow for this segment. Certainly, this move will slow the speed of auto retail and dampen the sentiments further, Gulati said. On the other hand, Private consumption is regaining traction backed by a recuperating contact-intensive services and rising discretionary spending. "With the Russia-Ukraine war continuing and China under lockdown, the global auto industry continues to witness supply crunch as semi-conductor shortage along with high metal prices and container shortage prevails. Customers of the PV segment hence continues to witness long waiting period," Gulati said. Referring to the Skymet's normal monsoon forecast and if the monsoon is evenly distributed there will have a positive rub-off on rural sentiment as farmers will be able to get better crop realisation thus increasing their disposable income. It will thus benefit tractor and two wheeler sales. This along with the marriage season in coming days will also see traction in auto retail. Overall, FADA changes its stance from extremely cautious to cautious in terms of slight recovery in near term. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/jio-and-airtel-introduce-new-plans-with-disney-hotstar-subscriptions/articleshow/91336737.cms">Jio and Airtel introduce new plans with Disney+ Hotstar subscriptions – price, benefits and validity</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/dealshare-is-now-on-a-lookout-to-hire-1500-employees-acquire-10-businesses-this-year/articleshow/91336481.cms">Social commerce unicorn DealShare is now on a lookout to hire 1,500 employees, acquire 10 businesses this year</a>

RBI to increase repo rate by 45 basis points making vehicle loans expensive, says FADA

Automobile dealers' <keyword id="10245801" type="UNKNOWN" weightage="20" keywordseo="body-fada">body FADA</keyword> on Monday said <keyword id="762866" type="PERSON" weightage="20" keywordseo="passenger-vehicle">passenger vehicle</keyword> (PV) <keyword id="87998" type="PERSON" weightage="20" keywordseo="Retail-sales">retail sales</keyword> in October witnessed a year-on-year decline of 8.8 per cent to 2,49,860 units, as <keyword id="507386" type="COMPANY" weightage="20" keywordseo="registrations">registrations</keyword> slowed down owing to supply issues. According to <keyword id="9396466" type="COMPANY" weightage="20" keywordseo="the-federation-of-automobile-dealers-associations">the Federation of Automobile Dealers Associations</keyword> (FADA), which collected vehicle registration data from 1,257 out of the 1,464 regional transport offices (RTOs), PV sales stood at 2,73,980 units in October 2019. Two-wheeler sales declined 26.82 per cent to 10,41,682 units last month, as compared to 14,23,394 units in October 2019. Commercial vehicle sales also slipped 30.32 per cent to 44,480 units, as against 63,837 units a year ago. Similarly, three-wheeler sales fell 64.5 per cent to 22,381 units last month, from 63,042 units in the year-ago period. Tractor sales, however, grew by 55 per cent to 55,146 units last month, against 35,456 units in the same month last year. Total sales across categories declined 23.99 per cent to 14,13,549 units, last month compared to 18,59,709 units in the year-ago period. Commenting on the sales data, FADA President Vinkesh Gulati said the Navratri period witnessed robust vehicle registrations, but could not save October to go in red as compared to last year when both Navratri and Diwali were in the same month. While new launches continued to be in demand in the passenger vehicle segment, entry-level motorcycles witnessed a lean demand in the two-Wheeler segment, he added. "With supply-side mismatch, most of the passenger vehicle dealers ended up with limited stock of high selling items and odd variants, which did not attract much demand. This coupled with lower discounts, compared to last festivals also played a spoilsport," he noted. Gulati said that while small commercial vehicles were witnessing robust demand due to local goods transportation back to pre-COVID levels, the medium and heavy commercial vehicle segment continued to bleed. "FADA urges the Government to urgently announce an attractive incentive based <keyword id="2155714" type="COMPANY" weightage="20" keywordseo="Scrappage-policy">Scrappage Policy</keyword>. It also requests the Government to release funds for infrastructure projects which it has awarded as this will help demand generation and will lead to higher production of vehicles," he added. On the sales outlook, Gulati said as the industry approaches the last leg of festivals and many cities in the middle of a third COVID wave, there is a sense of cautiousness amongst customers. Due to the lockdown announced in few European countries, procurement of spares will also be a cause of hindrance for the smooth supply of vehicles in Indian markets and this will create a supply and demand mismatch thus affecting the passenger vehicle sales, he cautioned. "FADA once again cautions both OEMs and dealers to keep a check on vehicle inventory, as post festivals, demand may remain subdued. Since Inventory levels are at its highest during this financial year, it may impact dealers' financial health, thus leading to closures and job losses," Gulati noted. SEE ALSO: <a href="https://www.businessinsider.in/politics/world/news/kamala-harris-indian-ancestral-village-celebrates-her-victory-as-she-becomes-vice-president-of-the-united-states/articleshow/79117206.cms" data-type="tilCustomLink">Kamala Harris' Indian ancestral village celebrates her victory as she becomes Vice President of the United States</a> <a href="https://www.businessinsider.in/tech/news/hyperloop-pod-carries-two-humans-through-a-tube-at-over-160-kmph-for-the-first-time-ever/articleshow/79121765.cms" data-type="tilCustomLink">Hyperloop pod carries two humans through a tube at over 160 kmph for the first time ever</a> <a href="https://www.businessinsider.in/tech/news/top-cyber-espionage-groups-that-have-india-in-their-crosshairs/slidelist/79120867.cms" data-type="tilCustomLink">Top cyber espionage groups that have India in their crosshairs</a>

Retail passenger vehicle sales down 9% in October, registrations slow down due to supply issues

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><keyword id="44717" type="General" weightage="20" keywordseo="automobile" source="Orion">Automobile</keyword> industry is already reeling with pain since 2019 due to factors such as new emission norms, semiconductor shortages and COVID-19’s impact on demand.</li><li>Now due to the Russia and Ukraine crisis, the situation may remain bleak as Ukraine is a big hub for many gases used in semiconductor manufacturing.</li><li>The automobile dealers association says that car sales will get impacted by supply chain shortage.</li></ul>Comparatively fewer people are buying cars post COVID-19 outbreak because of <a href="https://www.businessinsider.in/finance/news/petrol-and-diesel-are-likely-to-get-more-expensive-as-the-cost-of-crude-oil-hits-a-seven-year-high/articleshow/89559986.cms#:~:text=Crude%20oil%20prices%20have%20risen,voting%20day%20this%20election%20season.">rise in fuel prices</a>, commodity prices like <a href="https://www.businessinsider.in/stock-market/news/tata-steel-jindal-steel-hindalco-nalco-and-other-steel-and-metal-stocks-up-today-because-russias-supply-disrupted/articleshow/89939527.cms">steel</a>, shortage of semiconductors and a lockdown impacting demand and production operations of the manufacturers. Following this, auto company stocks were the most hit during the period as vehicle sales continued to remain low mainly because of poor buying sentiment in rural India and severe <keyword id="10561060" type="General" weightage="20" keywordseo="semiconductor-shortage" source="Orion">semiconductor shortage</keyword> around the world. With COVID-19 showing signs of relief and recovery for the <keyword id="34478" type="General" weightage="20" keywordseo="auto-industry" source="Orion">auto industry</keyword> it seemed as if the auto industry was at the cusp of recovery until Russia invaded Ukraine. The war has had a ripple effect on several industries including automobiles. <div type="image" title="car sales 2" height="900" width="1200" msid="90002008" hostid="261"></div>While the automobile industry has been reeling with pain since 2019 due to factors including new emission norms, COVID-19’s impact, semiconductor issues, and now the shock from <a href="https://www.businessinsider.in/stock-market/news/indian-markets-are-the-second-worst-performers-this-week-in-asia-hit-by-the-russia-ukraine-war/articleshow/89984960.cms">Russia Ukraine war is ruling the market</a>. The industry body, Federation of Automobile Dealers Associations (FADA), has warned that the Russia-Ukraine conflict could further impact the production of semiconductors. “Even though the PV [passenger vehicle] segment saw some launches and slight respite in supply due to better production, it was not enough to meet customer demand. Vehicle waiting period thus remains similar to what it was in the last few months," said Vinkesh Gulati, President of FADA. Further, he also noted that Russia is one of the largest producers of rare-earth metals, especially Palladium, which is an essential metal for semiconductors. Ukraine, on the other hand, is one of the biggest producers and exporters of neon gas, which is used in the manufacturing of semiconductors. “Due to the ongoing war, we once again fear the shortage in semiconductors which will create additional supply side issues for PVs,” FADA said. Top vehicle makers like Maruzi Suzuki, Hyundai saw a fall in their sales in February. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top 10 car manufacturers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sales in Feb 2022 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change on year </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Maruti Suzuki </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.33 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-7.4% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hyundai </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">44,050 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-14.6% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Motors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">39,981 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">46.8% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mahindra &amp; Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">27,663 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">79.7% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kia </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">18,121 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Toyota </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8,745 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-37.8% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Honda </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7,187 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-22.9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Renault </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6,568 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-40.5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">MG </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4,528 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.6% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Skoda </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4,503 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">427.9% </td></tr></tbody></table> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/meet-sanjiv-kapoor-the-new-ceo-of-jet-airways-2-0/slidelist/89987676.cms">Sanjiv Kapoor is back in aviation. This time as the CEO of Jet Airways 2.0</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/indian-markets-are-the-second-worst-performers-this-week-in-asia-hit-by-the-russia-ukraine-war/articleshow/89984960.cms">Indian markets are the second worst performers this week in Asia hit by the Russia-Ukraine war</a>

The curious case of Russia's Palladium, Ukraine's Neon and Indian auto industry's pain

<ul><li>Tata Motors finally has a ‘BUY’ rating from CLSA after three years. </li><li>For the quarter ending in September, Jaguar Land Rover sold 128,953 cars, slightly down (-0.7%) compared to the same period a year ago.</li><li>Investors believe that the downtrend in sales may finally be coming to an end.</li><li>The expected stability in <keyword id="1159034" type="PERSON" weightage="20" keywordseo="JLR-sales">JLR sales</keyword> has given hope to many ancillary companies like tyres, batteries and other auto parts makers.</li></ul>Months of despair have given way to some good news from Tata Motors. It’s British luxury car unit Jaguar Land Rover’s sales seem to be stabilsing. At least, that’s what the street believes. After three years of having a ‘SELL’ rating, Tata Motors has finally been upgraded to ‘BUY’ rating by global broking firm CLSA. Tata Motors’ share price spiked over 13% after the company’s second-quarter earnings. 
 
 
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 Between July and September 2019, Tata Motors reported a net loss of ₹216.5 crore but that was still a massive improvement from the same quarter in the previous year⁠— when the loss was nearly five times more. For the quarter ending in September, Jaguar Land Rover retail sales nearly the same (down 0.7%) as a year earlier⁠— but the losses were less because the company had cut costs. Jaguar Land Rover saw a 24.3% jump in its sales in China, which is a big market for the company. “JLR’s volume is showing signs of bottoming-out on a low base in China and the ramp-up of the recently upgraded Evoque model—the start of defender sales in 4QFY20 should provide a further boost,” the CLSA report said. Earlier this year, global rating agencies Fitch Ratings and Moody’s both had downgraded Tata Motors with a negative outlook. In June 2019, Jaguar Land Rover retail sales was down by 9.6% as compared to the same month the previous year. In May 2019 too, the company had seen a 12% decrease as compared to the same month in the previous year. “Against challenging market headwinds, for the third consecutive month we have achieved double-digit growth in China, benefitting from our local turnaround plan and performing ahead of the broader market. We have also outperformed shrinking markets in other regions,” said Felix Brautigam, Jaguar Land Rover Chief Commercial Officer in a statement. JLR cheer is spreading The market excitement is visible not just with Tata Motors’ share price but that of many ancillary companies in the business. For the <keyword id="34478" type="PERSON" weightage="20" keywordseo="auto-industry">auto industry</keyword> which has been hit by a slowdown for a year now, the comeback of Tata Motors and JLR is a positive sign for many others. Stocks like Bharat Forge, Motherson Sumi, and Exide, which make parts for automobiles, are also celebrating what they believe is a light at the end of the tunnel. Motherson Sumi, the largest manufacturer of automotive wiring harnesses and mirrors for passenger cars, too saw its stock trading at a 10% jump on Tuesday afternoon. 
 
 
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 With the festive sales, the October report of the auto industry is also expected to finally get a sigh of relief for the players. New entrants like MG Hector delivered 700 cars on Dhanteras while luxury car Mercedes Benz delivered 600 cars on the festive day. “Passenger vehicle sales, which were in the doldrums since late last year, have shown positive sales trajectory this year in comparison to the off-take witnessed during Dhanteras 2018”, reported IANS. "In terms of passenger vehicle sales, we have witnessed a similar off-take pattern to last year's Dhanteras day," Vinkesh Gulati, Vice President of the Federation of Automobile Dealers Associations (FADA) told IANS.

Not just Tata Motors, a lot of other companies are excited by Jaguar Land Rover numbers

<ul><li>The <keyword id="183099" type="ORGANIZATION" weightage="20" keywordseo="BSE-Auto-Index">BSE Auto index</keyword> surged nearly a percent on December 16, with Ashok Leyland and Tata Motors leading the way. The index has gained 16% since September 30. </li><li>A Parliamentary Standing Committee seeks more stimulus aside from other measures to boost demand, and revive the <keyword id="34478" type="PERSON" weightage="20" keywordseo="auto-industry">auto industry</keyword> in India. </li><li>The recommendations include regulatory relief, financial incentives for the scrappage policy, discount on research and development and more loans for dealers, but with less collateral. </li><li>The Committee also recommended reducing the GST rate to 18% from 28% to bring down a sizable amount in vehicle price. </li><li><a href="https://www.businessinsider.in/">Check out the latest news and updates on Business Insider.</a> </li></ul>Indian benchmark indices remained in the grip of bulls, recording fresh highs during the trade today and one of the big drivers of today’s rally were the auto stocks. The BSE Auto index surged nearly a percent on December 16, with Ashok Leyland and Tata Motors leading the way. Car and truck makers in India are not in good shape. The car makers were already broken with months of falling sales before the pandemic struck but now, there is hope in the horizon⁠— a parliamentary panel can see their pain. Their proposals include a recommendation to cut Goods and Services Tax (GST) rate by 10%. A Parliamentary Standing Committee, which pegged the loss to the industry at about ₹2,300 crore ($312 million), wants the government to release more stimulus to revive the sector. <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stocks </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Today's gain </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ashok Leyland </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.48% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Motors </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.07% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">M&amp;M </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.89 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TVS Motors </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.88% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">MRF </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.62% </td></tr></tbody></table>Source: BSE Auto Index There has been some recovery in auto sales in recent months. But, there is a peculiar situation in India, where the car makers and the dealers can’t agree whether the sales in the month of November were good or not! While the Society of Indian Automobiles, the lobby of car manufacturers, said <a href="https://www.businessinsider.in/business/auto/news/festive-boost-passenger-vehicle-sales-jump-13-in-november-two-wheelers-rose-14/articleshow/79676027.cms">it has been a great month</a>, the dealers association <a href="https://www.businessinsider.in/business/auto/news/passenger-vehicle-retail-sales-rise-4-two-wheeler-decline-21-despite-festive-boost-fada/articleshow/79622188.cms">wasn’t as excited</a>. The recommendation from the Parliamentary panel has come at a time when car makers like Maruti and Mahindra &amp; Mahindra have already announced discounts⁠— a usual fair at the end of every year⁠— after a losing an entire year to the pandemic and its extended impact. The recovery of this segment of industry is important because it employs a large number of people, many unskilled or less-skilled ones, and as per the panel’s estimate, 345,000 people have already lost their jobs. These are major items recommended by the Parliamentary Standing Committee: <ul><li>Consider wages paid to contract workers as charity: The committee recommended that the expenditure incurred by automakers for making payments to the temporary and contract labour during the lockdown period should be eligible as corporate social responsibility (CSR) expense. This move will help the automaker from tax paid on salaries. </li></ul><ul><li>Give more time to pay suppliers and vendors: It also recommended that the condition to avail ITC (Input Tax Credit) requiring payment of invoice to the supplier within 180 days of invoice to be done away with, till the situation returns to normal. Or at least should be provided with a waiver of interest which is charged from the date of invoice of the supplier, as most payments to the vendors will be deferred in the present scenario. The input credit helps the automaker to reduce the already paid raw material tax at the time of paying tax on output. </li></ul><ul><li>Reduce need for testing and regulatory approvals: A provision should be made for acceptance of self-certification by OEMs, instead of testing and approval by Government agencies for meeting regulatory requirements. Also a prioritised attention should be given to new approvals of alternate materials/parts identified for testing for compliance and validation purposes and fast track approvals by testing agencies. </li></ul><ul><li>Double the waiver on demurrage charge: Instead of 50%, 100% waiver on demurrage charges to be provided at the Airports/Seaports and rail yards until 1 month post resumption of full commercial production. </li></ul><ul><li>Reduce depreciation on value of vehicles: To make up the lost sales in March 2020 vehicles purchased till May 30 be permitted to enjoy 6 months depreciation in FY 2019-2020 — which will help in stimulating sales. </li></ul><ul><li>Discount on research and development: The government should also give a temporary exemption on import/export taxes and a 50% discount in testing prices in National Automotive Testing and R&amp;D Infrastructure Project (NATRIP) facilities.</li></ul><ul><li>More loans for dealers, but with less collateral: The Committee also recommended that the collateral norms for regular loan products for Auto Dealers should be moderate for availing required finance. It addressed that though banks have been facing various challenges because of bad loans, however, they should not look at all financial lendings with the same eye as the recovery rate is very high in the <keyword id="46265" type="PERSON" weightage="20" keywordseo="Auto-sector">auto sector</keyword>.</li></ul><ul><li>Financial incentives in the Scrappage Policy: The committee said that in addition to setting of Automotive Vehicle Scrapping Facility (AVSF) centres across the country, the government should make provisions for upfront financial incentives in the Scrappage Policy to boost demand for purchase of new vehicles. </li></ul><ul><li>GST reduction: To mitigate this cost increase, the Committee said the reduced GST rate to 18% from 28% at the moment. It said it will bring down a sizable amount in vehicle price creating more demand for newer vehicles. The increased sale due to the reduction in GST rate, will cover up the loss in GST revenue.</li></ul>Federation of Automobile Dealers Associations of India President Vinkesh Gulati welcomes the recommendations from the Parliamentary Standing Committee. “We had recommended One Nation – One Road Tax. I am happy to note that the committee found it relevant. It will also be praiseworthy if the Government accepts the committee’s recommendation of introducing effective rate of depreciation as 25% on permanent basis thus helping in improving sales,” he said in a statement to Business Insider. SEE ALSO:<a href="https://www.businessinsider.in/business/corporates/news/interview-home-recipes-that-are-set-for-a-7-million-ipo-mrs-bectors-food-is-no-cookie-cutter/articleshow/79721783.cms" data-type="tilCustomLink"> INTERVIEW: Home recipes that are set for a $73 million IPO⁠— Mrs Bector’s Food is no cookie cutter</a> <a href="https://www.businessinsider.in/thelife/personalities/news/facebook-ceo-mark-zuckerberg-and-reliance-industries-mukesh-ambani-spoke-but-had-no-chemistry/articleshow/79739547.cms" data-type="tilCustomLink">Zuckerberg spoke to Ambani but there was no chemistry — even with a multi-million dollar partnership between them</a>

You Searched For "fada president vinkesh gulati" and got 7 results

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Not just Tata Motors, a lot of other companies are excited by Jaguar Land Rover numbers

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India’s auto stocks cheer after Parliamentary Panel agrees that they need more stimulus and the dealers need loans with less collateral

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