The words you are searching are inside this book. To get more targeted content, please make full-text search by clicking here.

February 2017 issue of FADA Journal

Discover the best professional documents and content resources in AnyFlip Document Base.
Search
Published by FADA Journal, 2017-02-23 05:57:17

FADA Journal - February 2017

February 2017 issue of FADA Journal

Office Bearers PRESIDENT’s MESSAGE contents
INDUSTRY TRACK
President 7 A Realistic Budget Without Frills
8 Auto Market Slowly Recovering from Demonetisation Pain
JOHN K PAUL
Popular Vehicles & Services Pvt Ltd
Kuttukaran Centre, Mamangalam, Kochi - 682 025
Tel: +91-484-234 1134 / 7872 / 5013
E-mail: [email protected];

[email protected]

Vice President UNION BUDGET 2017 11 • A Prudent Budget with Positive Impact on Auto Sector: ICRA
OPINION • India Budget 2017 - On the Growth Path: PwC
ASHISH KALE
Provincial Automobile Co. Ltd COMPETITION LAW 20 • M&HCV Sales - At the Edge of a Precipice: India Ratings
Kingsway, Near Railway Station, Nagpur - 440 001 • Domestic PV Sales to Grow by 9-10% in FY2018: ICRA
Tel: +91-712-391 1129 / 1150
E-mail: [email protected]; 26 Competition Law Updates - G R Bhatia

[email protected]

Secretary General & Editor, FADA BUDGET REACTION 28 Auto Industry Terms Union Budget 2017 as Positive
Journal
NADA VISIT 29 FADA Delegation’s Participation at NADA 2017 Convention in
GULSHAN AHUJA NEW ON WHEELS New Orleans and Visit to Dealerships in Atlanta
Federation of Automobile Dealers Associations UPGRADES & VARIANTS
805, Surya Kiran, 19, K G Marg, New Delhi 30 • Honda Cars India Rolls Out New City 2017
Telefax: +91-11-6630 4852, 2332 0095 NEWS BASKET • India Yamaha Motor Launches FZ25
E-mail: [email protected] • Web: fada.in
KNOW OUR MEMBER 32 • Hyundai Introduces New 2017 Grand i10
ADVERTISERS’ INDEX • Honda Unveils New Activa 125
• Mercedes-Benz Launches A-Class and B-Class ‘Night Edition’
Back Cover 60
V E Commercial Vehicles 35 • Ashok Leyland to Open a New Assembly Plant in Bangladesh
2 • Tata Motors Forays into Future Mobility Solutions with TAMO
Front Inside Cover • Maruti Suzuki Remains the Most Preferred Brand Amongst Indian
Tata Capital Financial Services 59 Automobile Buyers: Droom’s Annual Report
• Toyota Kirloskar Motor Opens 303rd Dealership
Back Inside Cover 3 • Maruti Suzuki Inaugurates its 200th Nexa Showroom
Tata Motors 4
6 39 Profile of Raba KRR Automobiles, Tirupur (TN)
Inside Pages 10
• Mahindra & Mahindra Financial Services 19 SURVEYS & STUDIES 40 Automotive Dealers Moderately Optimistic
• Bagga Link 22 CONSUMER CASE STUDIES - Sewells MSXI Survey
• HP Lubricants 35
• Elofic Industries 27 NADA MUSINGS 46 NCDRC : Ramesh Chander Verma - Petitioner
• Fiem Industries 38 Versus
• Tradewings Earthmovers 42 Sai Ram Tata Motors - Respondents
• Prime Honda 44
• Shri Ram Commercial Vehicle Finance 44 48 Major developments affecting Automobile Industry in US
• AMPL 47
• SKF Group 51 SALES REPORTS 52 Vehicle and Tractor Sales & Exports and Y-o-Y Growth - Jan’17
• Olympia Honda 54
• Maurya Motors 55
• Marikar Group 58
• Force Motors
• BikeDekho.com
• Sansera India
• Carazoo Online Solutions

For Advertisement query, please contact Printed and Published by G K Ahuja on behalf of Federation of Automobile Dealers Associations,
Ankush Sethi at [email protected] 805, Surya Kiran, 19, Kasturba Gandhi Marg, New Delhi-110001.
Printed at Sita Fine Arts P Ltd, A-22, Naraina Industrial Area, Phase-II, New Delhi-110028.
Editor: G K Ahuja


President’s Message A Realistic Budget Without Frills

Dear friends,

Mr Arun Jaitley, Union Finance Minister has adopted a cautious
and balanced approach and focussed on long-term growth
prospects while presenting the Union Budget 2017. The automotive
sector, which has been reeling under severe slowdown in the wake
of demonetisation of high currency notes, was expecting the
announcement of immediate relief measures in the Union Budget
for its revival. The Union Budget 2017 falls short of the expectation
in that there are no specific budget proposals giving relief to the
auto sector or, for that matter, manufacturing sector.

We, in auto retail business, were anticipating slew of measures,
including higher depreciation rates for motor vehicles and
incentives for the scrapping of old vehicles. These support measures
will have not only given boost to the struggling auto market, but
will also have had a significant positive impact on environment
and road safety due to renewal of vehicle parc and modernisation
of road transport fleet. We were also expecting an announcement
for reduction in transaction charges payable by merchants in case of payments received through credit cards, which would
have gone a long way in promoting the widespread use of credit cards and less-cash economy.
The Finance Bill 2017 proposes to amend Income Tax Act to prohibit cash transaction of more than Rs. 3 lakh, which is likely
to have an adverse impact on rural market. The idea is good inasmuch as the proposal seeks to curb black money. There is no
gainsaying that the rural people still use cash in a big way for sale & purchase transactions. We, therefore, feel that the
proposal should have been implemented after 1 or 2 years when transactions through banking or digital medium are expected
to become the norm and all-pervasive.
All the same, the big push given in the Budget to the infrastructure development and renewed emphasis on rural & agriculture
sector with substantially higher outlays, as also the 25.4% increase in central capital expenditure during the financial year
2017-18 will have ripple effect on the economy as a whole, including auto sector. Another comforting feature of the Budget is
that the Fiscal Deficit for the year 2017-18 has been pegged at 3.2% without compromising on the outlays for various sectors
and economic growth.
We hope, the Finance Minister will consider our suggestions, including suggestions for increased depreciation for motor
vehicles and incentives for scrapping the polluting & unsafe old vehicles before the Finance Bill is passed by the Lok Sabha.
Adverting to the auto market, the vehicle sales seem to be picking up after being jolted by the demonetisation impact. The
tempo of sales is nowhere near the pre-demonetisation buzz, though. I am hopeful that the buoyancy will return to the auto
market soon.
As for activities of FADA since my previous column, you will be glad to know that FADA took a large delegation, comprising
more than 40 members to participate at NADA’s 2017 Convention & Expo from 26th to 29th January 2017 at New Orleans,
which also marked the completion of 100 years by NADA as the Voice of Dealers in USA since its inception in 1917. The FADA
delegation also visited two auto dealerships in Atlanta to understand the business practices, working and revenue model of
dealerships in US. It was an enriching experience for all the delegation members. The participation helped the delegation
members learn and identify the good business practices that could be adopted by the dealerships in India for improving
productivity, efficiency and profitability. It was also an occasion to celebrate. The visit under the banner of FADA also promoted
fellowship between FADA and NADA, on one hand, and among the members of delegation, on the other. The visil also helped
in building and deepening relations with other auto retail organisations in various parts of the world.
Please feel free to send your inputs and suggestions, if any.
With best wishes,
Yours sincerely,

John K Paul

7 February 2017


Industry Track

Auto Market Slowly Recovering from Demonetisation Pain

The pent-up demand built up over the past two months, when optimistically looking forward to positive growth. Hyundai has
the consumers withheld their purchases due to cash crunch shown growth on account of a good performance by the Grand
and uncertainty caused by the demonetization of high i10, Elite i20 and Creta and without any new mass model
currency notes, helped auto market recover, albeit slowly, in launches. The Union Budget will give a boost to the economy,
the first month of the new year. January 2017 saw mixed especially rural India, with its focus on infrastructure creating
results, with passenger vehicles and commercial vehicles a robust business environment, thus helping the auto
showing semblance of traction and 2 & 3-wheelers continuing industry.”
in the rut. Total domestic sales across various vehicle categories Mahindra & Mahindra sold 20,096 passenger vehicles in the
added up to 1,620,045 units in January 2017 – down 4.7% vis- Indian market in January 2017, down 9.0% (January 2016:
à-vis 1,700,141 units in January last year. 22,088 units).
Pravin Shah, President and Chief Executive (Automotive),
Passenger vehicles regain traction M&M, commented, “The auto industry continues to see mixed
reactions and some of the segments including the rural market
Passenger vehicle sales were back on growth trajectory after and the commercial vehicles category continue to face
two subdued months, post-demonetisation. Domestic challenging times. Going forward, we expect Union Budget
passenger vehicle sales grew by a healthy 14.4% to 265,320 2017 to positively impact the economy and also the industry,
units in January 2017 from the corresponding sales tally of especially in view of the emphasis and the allocations made
231,917 units a year ago. for rural, agriculture and infrastructure. We are confident that
Leading the charge, passenger vehicle market leader, Maruti this will spur demand.”
Suzuki India (MSI) reported domestic sales of 133,768 units The sustained demand for Tiago hatchback helped Tata
in January 2017, a handsome 25.7% increase vis-à-vis 106,383 Motors post a 13.4% growth in domestic passenger vehicle
units in January 2016. The company’s bread-and-butter duo sales, including cars, UVs and vans, which stood at 14,721 units
of the Alto and Wagon R sold 37,928 units in domestic market in January 2017 vis-à-vis 12,987 units a year earlier. With the
during January 2017 (January 2016: 34,206 units), which launch of Hexa in MUV space, Tata Motors’ sales are expected
translated into 10.9% uptick. Domestic sales of MSI in to get further boost in the coming months.
the compact car segment, comprising Swift, Ritz, Celerio, Ignis, Toyota Kirloskar Motor (TKM) maintained the growth
Baleno and Dzire posted 25.2% growth at 55,817 units (January momentum, riding on its new offerings, viz. Innova Crysta and
2016: 44,575 units). Ciaz premium sedan clocked 6,530 units new Fortuner. The company witnessed a decent 21.4% growth
in domestic sales, up 20.2% compared to the January 2016 in domestic sales, which increased to 10,336 units in January
sales of 5,431 units. The domestic sales of two vans – Omni 2017 from 8,511 units a year ago.
and Eeco – at 14,179 units, grew by 34.9% y-o-y. Domestic UV According to N Raja, Director and Senior Vice-President (Sales
sales (Gypsy, Ertiga, S-Cross, Vitara Brezza) zoomed 101.0% y- & Marketing), “Even with demonetisation effect, we have still
o-y to 16,313 units in January, thanks to the continuing robust managed to record a 17 percent growth in sales in the past
demand for Vitara Brezza that contributed 8,932 units to the three months. This has been possible due to the overwhelming
sales tally. With the new Gujarat plant having begun customer response to the new Fortuner and Innova Crysta.”
production from February 1, starting with the premium Baleno
hatchback, the carmaker will be able to increase production
of the much-in-demand Vitara Brezza, which continues to have
a long waiting period.

Hyundai Motor India Ltd (HMIL, the second Sales (Domestic + Exports) during January 2017 viz-a-viz January 2016
largest player in the Indian passenger vehicle
market, registered domestic sales of 42,017
units in January 2017, as against 38,106 units
in January 2016, clocking a 10.5% rise.

Commenting on the sales performance,
Rakesh Srivastava, Senior Vice-President
(Sales & Marketing), HMIL, said, “2017 looks
promising with the entire industry

February 2017 8


Industry Track

Ford India stayed on course, the company’s domestic January 2017, posting a measly 1.7% uptick vis-à-vis 361,739
passenger vehicle sales rising by 13.5% to 7,995 units in units in January 2016.
January 2017 (January 2016: 7,045 units). TVS Motor Company’s domestic two-wheeler sales at
“We continue to grow faster than the industry which is a 172,101 units in January 2017 were more or less flat,
testament to our strategy focused on product-led innovation, compared to the domestic sales figure of 172,162 two-
delivering differentiated customer experience and busting wheelers a year ago.
the myth of cost of ownership,” said Anurag Mehrotra, Bajaj Auto posted 14.9% y-o-y decline in domestic sales of
Executive Director (Marketing, Sales and Service), Ford two-wheelers, which aggregated 119,803 units in January
India. 2017.
Nissan Motor India registered domestic sales of 4,346 units, Royal Enfield continued its dream run, clocking a 23.3%
comprising both the Nissan and Datsun brands, in January growth in domestic sales to 58,133 units in January 2017,
2017, up 62.9% over 2,668 units in January 2016. vis-à-vis 47,140 units in January 2016. In the process, Royal
Commenting on the sales results, Arun Malhotra, Managing Enfield pipped India Yamaha Motor to become the 5th largest
Director, Nissan Motor India, said, “We have started the new two-wheeler player in terms of sales volume.
year on a positive note. Despite the challenging market India Yamaha Motor recorded domestic sales of 34,117 units,
conditions, we have seen a substantial year-on-year growth witnessing a steep 41.9% decline y-o-y.
in January, which signifies strong customer response and
trust in the Nissan and Datsun brands.” Commercial Vehicles still weighed down by
Apart from M&M, Honda Cars India Ltd (HCIL) was another demonetization impact
car major to record negative growth. The company saw its
domestic sales volume decline by 9.0% to 15,592 units in Commercial vehicles came up with a much improved sales
January 2017 from 17,135 units a year ago. The popular City performance in January 2017 after December 2016’s sluggish
continued to be Honda’s best-seller with 6,355 units, sales. However, overall sales numbers were still in negative
followed by Amaze (3,911 units) and Jazz (3,124 units). BR-V terrain. Total CV sales in domestic market stood at 61,239
SUV contributed 1,458 units to the company’s domestic sales units in January 2017, reflecting a 0.7% dip y-o-y.
tally; Brio, 627 units; and Mobilio, 63 units. With the launch Ashok Leyland rebounded with a 9.2% growth in its domestic
of new Honda City, HCIL’s sales numbers are expected to get sales that added up to 13,715 units in January 2017 (January
fillip. 2016: 12,564 units).
Yoichiro Ueno, President and CEO, Honda Cars India, said, Volvo Eicher Commercial Vehicles (VECV) also turned in a
“Our sales results recovered in January as consumer decent performance to notch up an 11.2% uptick in domestic
sentiment and the currency situation have started improving sales at 3,796 units in January 2017, compared to 3,415 units
gradually. We hope the situation normalises and the market a year ago.
recovers quickly.” The CV market leader, Tata Motors was in negative terrain.
The company’s domestic CV sales at 26,707 units in January
Two-Wheeler Sales Continue to Struggle 2017 were down 6.0% y-o-y.
Likewise, Mahindra & Mahindra (M&M) witnessed a 3.4%
Although there are straws in the wind indicating that two- drop in domestic CV sales that clocked 13,890 units in January
wheeler sales reeling under the impact of demonetization 2017 vis-à-vis 14,385 units in January last year.
are on comeback trail, the total domestic sales in January While the auto market is slowly recovering, the commercial
2017 remained negative. The total 2-wheeler sales in vehicle and two-wheeler segments are still weighed down
domestic market across industry at 1,262,141 units, were by the demonetization blues. Given that BS IV emission
down 7.4% y-o-y in January 2017, building up inventories at standards will be mandatory for all CVs from April 1, 2017,
the dealerships. a feverish pre-buying of CVs is expected to happen till
The two-wheeler market leader, Hero MotoCorp selling March 2017. With rural & agriculture sector getting boost
471,720 units in the Indian market during January 2017 from the Union Budget 2017, rural market is also expected
witnessed negative growth of 13.7% y-o-y. to pick up gradually. The outlook for the auto market in
India’s second largest two-wheeler maker, Honda Motorcycle India is promising
& Scooter India (HMSI) reported sales of 367,972 units in

9 February 2017


Union Budget 2017

A Prudent Budget with Positive Impact on Auto Sector: ICRA

The expectations from this year’s Budget were unusually high, major change in indirect taxes, except some tinkering with
and so were the challenges. The need to ‘stimulate’ the the customs duty. The reduction in tax rates for MSMEs with
economy had created wide expectations of a cut in tax rates, turnovers of up to Rs. 50 crore, apart from providing relief to
an increase in allocations to the social sectors and enhanced them, may also aid the process of formalisation of the
infrastructure spending. At the same time, fiscal prudence had economy. There have also been some steps designed to
to be maintained, amidst considerable uncertainties about the increase the ease of doing business with respect to areas like
impact of the currency ban on nominal GDP growth, the gains transfer pricing and increase in the threshold limit for levy of
that could be expected on account of voluntary disclosures of presumptive taxes.
untaxed income & penalty schemes, and the manner in which
tax revenues would evolve after the implementation of GST. The higher 10.7% expansion of capital expenditure compared
The most significant aspect of the Budget is its commitment to the 5.9% rise in revenue expenditure in FY2018 budget
to curtail the fiscal deficit to 3.2% of the GDP, despite the FRBM estimates (BE), relative to FY2017 revised estimates (RE), would
committee providing a leeway to relax it to 3.5% of the GDP, augment the quality of spending. The Budget has incorporated
with no major populist giveaways and tight control on lower dividends (partly because of the Railways) and non-tax
expenditure. On expected lines, there has been an increase in revenues from communication services in FY2018 BE relative
budgetary allocations to the infrastructure and the rural to FY2017 RE. The forecasts for growth of nominal GDP
sectors and a mild consumption stimulus through a reduction (11.75%) and gross tax revenues (12.2%) may prove somewhat
in personal tax rates in the lowest slab. Attempts to clean up optimistic, in the light of the initial hiccups in the transition to
electoral funding, abolition of FIPB approvals from next year the GST. Moreover, the disinvestment and strategic divestment
and some innovative proposals like the time-bound listing of target of Rs. 72,500 crore also appears high.
identified CPSEs and creation of integrated public sector oil
major are other highlights of the Budget. However, the Overall, the tone of the Budget appears prudent, with an
inadequate allocation for bank capitalisation and fertiliser emphasis on public investments, incremental steps to promote
subsidy as well as lack of any attempts at resolving the “twin schemes like Digital India and Skill India, and the absence of
balance sheet stress” is disappointing. populist giveaways and negative shocks pertaining to the
Given the decline in the Gross Fixed Capital Formation over capital gains tax on equity investments. Nevertheless, the
the last few years, the Budget has focused on reviving public achievement of the revenue and disinvestment targets would
investments. Accordingly, capital investment for roads, railways be crucial to ensure the budgeted reduction in the fiscal deficit
and other infrastructure sectors is projected to increase by to the GDP ratio, and the lower than expected gross borrowing
around 11%, including borrowings through extra budgetary figure. Also the Government has factored in a pickup in inflows
sources. There are also some announcements with regard to from small savings schemes and if the latter doesn’t
using the PPP route for undertaking O&M at airports owned materialise, the market borrowing figure may need to be
by the AAI, expansion of broadband connectivity in rural areas revised upward. The other risk to fiscal arithmetic could stem
as also modifications in the Metro Railway Act. There is also a from crude oil prices, as the subsidy allocation for fuel would
mention on strengthening the dispute resolution mechanism be inadequate for crude prices beyond US $ 58-60 /bbl.
for contracts in the infrastructure sector, which has been a
long pending demand of the players in this sector. Budget Impact on Automotive and Allied Sectors
Apart from transport, affordable housing has been a major AUTO COMPONENTS
focus in this Budget, given the multiplier effect it has in terms
of employment generation and increased demand for products Proposals
like cement and steel. Other areas that received focus are • Increased outlay for Pradhan Mantri Gramin Sadak Yogna
tourism and skill development. The significant expansion of
agriculture credit, setting up funds for micro irrigation and (PMGSY) and rural sector positive for segments such as
dairy processing and increased coverage of e-NAM are in line two-wheelers, tractors and passenger vehicle industry.
with the Government’s emphasis on improving the social/ rural • Reduction in personal income tax up to Rs. 12,500 positive
infrastructure. for 2W and small-ticket PV segments.
With the GST to be implemented next year, there has been no • Reduction in income tax rate to 25% from 30% for MSME
with annual turnover below Rs. 50 crore.
• Basic custom duty on Alumax (used in ceramic substrate
of catalytic converter) reduced to 5% from 7.5% earlier.

11 February 2017


Union Budget 2017

Impact: Neutral Impact: Neutral
The Government’s increased budgetary outlay for the rural
and agrarian segment would lead to higher disposable Government has increased outlay for rural sector, with special
incomes and demand in the sector, especially for 2W, PVs thrust for doubling the rural income over next five years and
and tractors, which together account for 70% of domestic improving road connectivity under PMGSY. These initiatives
OE demand. The 5% reduction in income tax (Rs. 12,500) is are positives for the passenger vehicle industry, especially
another positive factor for the 2W and small-ticket PV entry level cars and utility vehicle segment. The proposal to
segments. Considering the prevalence of MSMEs in the auto reduce the existing rate of tax for individual with income
component value chain, (Tier-II and Tier-III suppliers), the between Rs 2.5 and 5.0 lakh to 5% will result in incremental
reduction in corporate tax rates (for companies with turnover cash inflow of ~Rs 12,500 for tax payer, which should support
of less than Rs. 50 crore) is positive. On the custom duty consumption in mid-income group, enabling entry level vehicle
front, there is a marginal reduction on Alumax, which is used purchase. In order to curb black money and tax evasion,
in the ceramic substrate of catalytic converters. government has restricted cash transaction in excess of Rs 3
lakh, slightly impacting the luxury car segment. Nevertheless,
COMMERCIAL VEHICLES with significant financing penetration in the domestic
passenger vehicle sales, the restriction on cash purchase
Proposals should not have any material impact on the overall PV growth
• Allocation for infrastructure increased to Rs. 3.96 lakh volume. Also, the proposed budgetary discipline should keep
interest rates low, benefitting both the PV industry.
crore in FY2018.
• Allocation for road sector (including rural roads) increased However, in absence of any direct benefits such as scrappage
scheme for older vehicles or greater incentives to promote
to Rs. 91,000 crore from Rs. 76,000 crore. usage of electric/hybrid vehicles, the announcements made
• Development of 2,000 km of coastal roads to improve in Budget 2017-18 would overall be neutral for the sector.

connectivity to ports. TRACTORS
• Focus on multi-modal logistics and integration with railways.
Impact: Neutral Proposals
Commercial Vehicle (CV) sector will benefit from the • Institutional farm credit target increased by 11% to Rs.
Government’s plans to significantly increase allocation towards
infrastructure sector, especially development of roads and 10 lakh crore; allocation of Rs. 1,900 crore to Primary
highways including those in rural areas. These investments Agriculture Credit Societies for development of core
will not only support sales of vehicles used for providing last banking platform to facilitate seamless flow of credit.
mile connectivity but will also be positive for tipper sales that • Total allocation for rural, agri and allied sectors enhanced
constitute approximately 25% of M&HCV Truck sales in India by 24% to Rs. 1.87 lakh crore; allocation under MNREGA
and has registered healthy growth (~35-40%) in the current increased to Rs. 48,000 crore from Rs. 38,500 crore.
fiscal. Also, the proposed budgetary discipline should keep • Allocation for dedicated irrigation fund under NABARD
interest rates low, benefitting both the CV industry. increased to Rs. 40,000 crore from Rs. 20,000 crore;
However, in the absence of any clarity on implementation of additional Rs. 5,000 crore for setting up a dedicated micro
vehicle fleet modernisation program (for older vehicles) and irrigation fund and Rs. 8,000 crore for setting up a dairy
greater incentives to promote usage of electric/hybrid vehicles, development fund.
the announcements made in Budget 2017-18 is overall be • Increase in allocation for Pradhan Mantri Fasal Bimal
neutral for the sector. Yojana to Rs 9,000 crore from Rs 5,500 crore; coverage
under the programme to be increased to 40 per cent
PASSENGER VEHICLES (2017-18) and 50 per cent (2018-19) of cropped area.
• Continued focus on rural infrastructure development;
Proposals allocation of Rs. 19,000 crore for Pradhan Mantri Gram.
• Increased outlay for Pradhan Mantri Gramin Sadak Yogna • Sadak Yojana and Rs. 23,000 crore to Pradhan Mantri
Awas Yojana.
(PMGSY) and rural sector is a positive for segments like • Assistance to rural entrepreneurs to set up soil testing
entry level cars and utility vehicles. labs in Krishi Vigyan Kendras.
• Personal income tax cut for Rs. 2.5-5 lakh category. • Expansion of National Agriculture market (e-NAM
platform) from 250 to 585 markets.

February 2017 12


Union Budget 2017

Withholding tax on rent charitable purposes, it is proposed to amend section 11 to
It is proposed that individuals paying rent of INR 50,000 or provide that any contribution by a trust out of its income to
more for a month / part of the month during the previous another charitable trust or institution with a specific direction
year should withhold income tax at the rate of 5% in the last that it shall form part of the corpus of the recipient trust or
month of the previous year or last month of tenancy. institution shall not be treated as application of income for
Corporate Tax charitable or religious purposes.
Foreign company A similar amendment is proposed in respect of contributions
Corporate tax rates remain unchanged at 40% (plus applicable made by a specified trust, educational institution, hospital
surcharge and education cess). or medical institution as referred to in section 10(23C) to a
Domestic company charitable trust or institution for determining application of
Corporate tax rate reduced to 25% (plus applicable surcharge income.
and education cess) for domestic companies having total The proposed amendment shall be applicable from AY 2018-
turnover/ gross receipts in the previous year (2015-16) not 19 onwards.
exceeding INR 500 million. In other cases, the tax rates remain Cost of acquisition in respect of transfer of asset of a trust
unchanged at 30% (plus surcharge and education cess). that ceases to be for charitable purposes
MAT/AMT To ensure that the intended purpose of exemption granted to
Tax rates of both MAT and AMT remain unchanged at 18.5% a charitable trust or institution is achieved, a new “exit tax”
(plus surcharge and education cess). was introduced from 1 June, 2016 on accreted income of a
Tax on dividends registered charitable trust/ institution that claimed to be
Rate of DDT remains unchanged at 15% (plus applicable exempt from tax in earlier years, when the trust ceases to be
surcharge of 12% and education cess of 3%). for charitable purposes.
Non-corporate resident taxpayers earning more than INR 1 This exit tax is leviable on the fair market value of the assets
million of dividend to pay tax at 10% (plus surcharge and minus the liabilities on a specified date.
education cess) in addition to the DDT paid by the company. It is proposed that for the purposes of computing capital gains
Small taxpayers at the transfer of such asset of the trust or institution, the
Exclusion from requirement to audit books of account “cost of acquisition” of such capital asset on which exit tax
An eligible individual opting for the presumptive taxation has been paid shall be the fair market value of the asset taken
scheme as per section 44AD(1) shall be excluded from the into account for computation of the exit tax.
requirement to get his/her accounts audited. This proposed amendment is applicable retrospectively from
Presently, every individual carrying on a business or profession 01 June, 2016.
shall get its accounts audited u/s 44AB, if the total sales, Fresh registration to be obtained in case of modifications of
turnover or gross receipts exceed INR 1 crore. A press release the objects of the trust
was issued by the CBDT clarifying that if an eligible individual It is proposed that in case a charitable trust or institution,
opts for the presumptive taxation scheme as per section which has been granted registration under section 12A/ 12AA,
44AD(1) of the Act, he/she shall not be required to get his/ adopts or undertakes modifications of its objects that do not
her accounts audited if the total turnover or gross receipts of conform to the conditions of registration, it would be required
the relevant previous year does not exceed INR 2 crore. It is to obtain fresh registration under such section within a
now proposed to incorporate the above press release in law prescribed timeline.
through an amendment to section 44AB of the Act. The proposed amendment shall be applicable from AY 2018-
This amendment will apply in relation to assessment year 19 onwards.
2017-18 and subsequent years. Requirement of filing the return of income by the trust within
the prescribed timeline to claim exemption
Charitable Trusts and Institutions It is proposed to insert an additional condition that a charitable
Restrictions on application by way of corpus donation trust or institution would be required to file its Return of
To ensure that their income is actually expended towards Income within the time prescribed under the Act in order to
claim exemption under section 11 of the Act.

17 February 2017


Union Budget 2017

The proposed amendment shall be applicable from AY 2018- Funds to members of defence forces. The amendment
19 onwards. is effective from 10 September 2004.
• Retrospective exemption for payment of service tax on
Indirect Tax Proposals one-time upfront amount (premium, salami, cost price
and development charge by whatever name called) for
Excise long-term lease of 30 years or more of industrial plots
There are no major changes to Central Excise since GST is likely by State Government Industrial Development
to be implemented soon. Corporation or Undertaking. The amendment is
The limited changes are largely towards incentivizing goods effective from 1 June, 2007 to 21 September, 2016. The
that promote digital economy and are primarily used in the following should be noted:
renewable energy sector. • This change is line with a similar exemption issued from
Service tax 22 September, 2016 onwards.
The effective rate of service tax remains unchanged. Further, • Refund is to be filed for service tax already collected.
no major changes made in service tax exemptions or legislative Application for refund is to be filed within a period of
provisions. six months from the date of enactment of Finance Bill,
1. Changes in exemptions with effect from 2 February, 2017 2017.
• Retrospective amendments have been introduced for
• Scope of exemption for services provided by Indian valuation of works contract where taxable value
Institutes of Management by way of 2-year full-time recovered from customer includes the value of land as
post-graduate programmes has been widened – well. In such cases, the amendment prescribes that the
earlier, only residential programs were exempted; value for payment of service tax would not include the
however, all 2-year full-time post-graduate value of land.
programmes would now be exempted. Customs duty
With GST on the anvil, the Finance Minister has not announced
• Exemption has been provided to services of any significant change in Customs laws. While the general
transport of passengers provided by airlines to the effective customs duty rate has remained unchanged, the
government against viability gap funding (VGF), Finance Minister has exempted import duties on specific
embarking or terminating from a Regional products, inputs and raw materials to promote the “Digital
Connectivity Scheme Airport. Exemption is available India” and “Make in India” initiatives of the government.
up to one year from date of commencement of such Rate of duty
airports. Median rate of BCD has been retained at 10%.
R&D Cess Act
2. Changes effective from date of enactment of Finance Bill, • R&D Cess Act is proposed to be repealed from 1 April,
2017 2017. In such case, w.e.f. April 2017, no R&D Cess would
• Exemption from service tax for services by way of be paid on import of technology under a foreign
carrying out any process amounting to manufacturing collaboration.
or production of goods (excluding liquor for human • In such case, no adjustment from service tax would be
consumption) shifted from Negative List to Mega required w.e.f 1 April, 2017.
Exemption Notification. There is no change in effective Goods and Services Tax Act
taxability. • The following were highlighted in relation to GST:
Exemption for intermediate production process as job - GST Council has finalized its recommendations on
worker has been restricted to cases where such process
does not amount to manufacture. In case the process most issues based on consensus;
amounts to manufacture, exemption is already covered - Preparation of IT system for GST is on schedule;
in another clause. - Extensive reach-out efforts to trade and industry for

3. Changes effective from retrospective date GST will commence from 1 April, 2017
• Retrospective exemption to life insurance services
provided by Army, Naval and Air Force Group Insurance

February 2017 18


Opinion

M&HCV Sales - At the Edge of a Precipice: India Ratings

The medium and heavy commercial vehicle (M&HCV) segment of M&HCVs was the driver of volumes in FY16 but has declined
will post a steep decline in volumes in FY18, due to slowing very sharply in FY17, suggesting overcapacity in the road
replacement demand, weak industrial activity, rising diesel transportation industry. India Ratings believes that the
prices and overcapacity, says India Ratings and Research (India demonetisation drive has impacted the second hand CV
Ratings). Despite the FY18 budget focus on the rural sector, market (significant proportion of transactions take place in
India Ratings does not expect a substantial increase in rural cash) impeding the efforts of fleet operators to sell their old
demand for CVs. Weak sales volume trends as well as macro- vehicles to raise funds for part-funding of their new CV
economic trends observed in FY17 for the M&HCV segment purchases. In addition, the level of industrial activity as
could lead to the fall in volumes in FY18. The decline in M&HCV reflected in the Index of Industrial Production (IIP) remains
volumes in the April to December 2017 period is around 2% inconsistent, declining from March 2016.
yoy. The agency, however, does not expect a significant Ind-Ra believes that the implementation of Goods and
reduction in domestic M&HCV volumes in FY17 due to certain Service Tax (GST) in FY18 would reduce transportation time
exceptional demand drivers. significantly as goods will be transported freely from one
Despite the government’s commitment to double rural state to another bypassing various check points and octroi
incomes in the next five years and the high allocation for rural posts. There would create additional spare capacity in the
agriculture and allied sectors in FY18 of INR 1,812 billion, Ind- road transportation sector, creating a drag on new M&HCV
Ra does not expect a material increase in rural demand for sales.
CVs. Transporters would primarily base their purchase Factors Supporting MHCVs in FY17: In the current financial
decisions on the demand-supply position in the road year MHCV sales, especially in the higher tonnage segments
transportation space in their respective regions and the extent were supported to an extent by the 31 December 2015
to which it will be possible to deploy the trucks. notification by the National Highways Authority of India to
Lack of Support in FY18: The agency believes that replacement toll plazas to levy a toll of 10 times the usual toll on overloaded
demand, a key driver of M&HCV sales in FY16 and FY15 has trucks and to release the vehicle only after ensuring that the
largely depleted. Given the continued uncertainty on the excess load is removed. India Ratings does not believe that
industrial front, the agency expects freight rates to remain this factor would support vehicle sales for an extended period,
flat. Any further rise in diesel prices, may squeeze margins of considering that large fleet operators have already been
transporters/fleet operators. The >25 ton capacity segment investing in heavier vehicles to optimise operating cost.

February 2017 20


India Ratings believes another factor supporting M&HCV sales migrating towards compact UVs given the regulatory
in FY17 is the implementation of Bharat Stage IV emission challenges – such as the ban on registration of new large diesel
norms across India from 1 April 2017. This would increase passenger vehicles (PVs) in the National Capital Region which
vehicle costs by upto INR 100,000 for incorporating changes has hurt large diesel UVs in particular. In addition, the
to the power train to improve fuel efficiency and reduce proliferation in the compact UV models which are available
emissions, and there would also be certain recurring costs to at attractive price points and availability of both petrol and
ensure BS-IV compliance in terms of the purchase of diesel diesel variants have also fuelled demand.
exhaust fluid, which would cause a marginal increase in For the April to December 2016, UV volumes grew by 33%,
operating costs. As a result, there are likely to be some pre- compared with a mere 2.5% for cars. The overall growth rate
emptive purchases in Q4FY17 which would support M&HCV of 8.6% for passenger vehicles (PV) for this period was pushed
sales volumes in the current financial year. into the fast track by UVs. The surge in UV sales volumes can
Drivers for M&HCV sales in FY15, FY16: Replacement demand in turn be attributed to the success of the new compact UV
as well as the decline in diesel prices had led to improvement models namely, Grand Vitara, S-Cross and Vitara Brezza from
in cash flows for transporters as the freight rates didn’t reduced Maruti Suzuki India Ltd (MSIL) and Creta from Hyundai Motor
commensurately. The agency in its outlook FY17 report India Ltd (HMIL). In line with the increased volume contribution
‘Sustained Revival Likely in Car Demand; Stable Outlook from UVs, the share of UVs in total domestic PV volumes has
Maintained for Auto for FY17’ highlighted that M&HCV volume increased to almost 25% in April to December 2016 from 21%
growth in FY16 was driven by sales of high tonnage goods in FY16.
carriers. This was possibly on account of fleet operators trying Due to the intensely competitive nature of the domestic auto
to lower their per ton transportation costs by relying on high industry, the launch of new models on a regular basis has
tonnage vehicles to transport higher quantum of cargo in each become a driving strategy for companies aspiring for high
trip. This was facilitated by the improvement in road volumes and significant market share. It is observed that on
infrastructure in the country, particularly along the golden the launch of a new model, sales volumes tend to spike initially,
quadrilateral. before other factors such as sustained on-road performance
and consequent consumer perceptions determine monthly
Inding Ratings had also highlighted the lack of supporting volumes over an extended period. The new launches in the
factors to maintain M&HCV sales growth at rates witnessed UV segment in the past one year particularly by MSIL have
in FY6 (in view of inconsistent IIP trend) and had indicated the supported volume growth in the segment in FY17.
likelihood of a reduction in the growth rate of M&HCVs in
FY17.

Auto Sales Fuelled by ‘Aspirational’ Utility Vehicle
Volumes

Surging volumes of compact utility vehicles (UVs) revs up
growth for passenger cars in FY17, adds India Ratings. In the
agency’s assessment, the key contributors to higher demand
for UVs are shifting preferences among buyers to aspirational
products such as UVs and more options available in the
segment. In addition, buyers having opted for larger UVs are

21 February 2017


Attention: Members

2017 India Dealer Satisfaction Study

We wish to inform that for the 7th consecutive year, J D Power Singapore Pte Ltd is conducting the Dealer Satisfaction with Automotive
Manufacturer Study in India in association with the Federation of Automobile Dealers Associations (FADA). From this year onwards,
besides Passenger Vehicle dealers, dealers of Commercial Vehicles and Two-Wheelers will also be covered in the scope of the study.
We invite you to kindly participate in this study in the interest of auto retail and automobile dealer fraternity.
As dealers, you have to work within a dynamic marketplace, where you may need the support and direction of your OEMs (Principals/
Manufacturers). The primary objective of the study is to measure your satisfaction with the OEM that you represent so as to increase
the quality of service and level of support that the OEMs can provide to you. In addition, the study also examines your views on a
variety of issues relevant to the automotive industry and the retail distribution system, which are of importance to both manufacturers
and dealers. Hence, your frank opinion is very valuable to this study.
The study is an opportunity for you to share your opinions with automobile manufacturers’ top management, dealer councils and
board of directors. By participating in the survey, you will be taking a role in ensuring that manufacturers hear the voice of the dealer.
This survey will be conducted through a telephonic interview and should take approximately 45 minutes to complete. For questions
requiring operational knowledge, you may consult with the appropriate staff members before answering or pass on their name and
contact details to the interviewers, who will contact them separately.
We would like to assure you that all information collected will be reported at an aggregate level. Individual dealer information will
be kept confidential and will NOT be released without prior approval.
The survey will be conducted by a reputed survey agency in India on behalf of J D Power Singapore Pte Ltd. If you do not receive a call
from J D Power or have any questions, please send an email to Shantanu Nandi Majumdar at [email protected]
Please note that the survey will be conducted in the months of January to March 2017. Your participation during this period is greatly
appreciated.

NADA 2017 Workshop Handouts with the Talk Video

A delegation of over 40 automobile dealers led by John K Paul, FADA President participated at NADA 2017 Convention in New Orleans
held from January 26 – January 29, 2017.
FADA has purchased 50 workshop compilations from NADA at special rate of USD 250 (Rs. 17,500) per user for the benefit of automobile
dealers especially those who could not participate.
A special feature of the compilation is that both the video & the hand-outs are synchronised. The proceedings are avalable in limited
numbers and will be made avaialble on First-Come-First-Serve basis.
Those interested in buying the compilation of Workshop proceedings may remit the payment of Rs. 17,500 by DD/Cheque in favour
of Federation of Automobile Dealers Associations payable at Delhi.
The payment can also be deposited/transferred directly in FADA’s savings bank account with Yes Bank, Account Name: Federation
of Automobile Dealers Associations, Account No. 013694600000359, Branch: 56, Janpath, Connaught Place, New Delhi – 110 001,
MICR No. 110532031 and NEFT IFSC Code: YESB0000136.

Engagement of GST/Service Tax Consultant

A GST/service tax consultant – Ms Puloma Dalal, FCA based in Mumbai, has been engaged by FADA on retainership to help members
deal with the complexities of GST/service law and procedures. She will, on reference made by FADA, guide and give legal opinion on
various issues relating to GST/service as applicable to automobile dealers.
FADA will forward the queries raised by members to Ms Puloma Dalal for her opinion.
While Ms Puloma Dalal will, essentially, give legal position and clarification, supported by case law, on various GST/service issues
raised by FADA members, those wanting to engage her as counsel to fight their cases in litigation, will have to pay separately as per
terms that may be mutually agreed to.
Members seeking clarification or legal position relating to GST/service tax as relevant to automobile dealers, may send their queries
to FADA, 804-805, Surya Kiran Building, 19, K G Marg, New Delhi - 110 001 (E-mail ID: [email protected])

25 February 2017


Competition Law Updates

Four school bus company Portugal Competition Authority raids driving schools
owners convicted of bid Following suspicions to fix prices in the allocation of
rigging for transportation driving licenses, Portugal’s Competition Authority has
services. raided the headquarters of at least two driving
associations in collaboration with the Central Department
G R Bhatia, Partner & Head, Department of Justice’s of Criminal Investigation and Action and the Public
Competition Law Practice Group, anti-trust division has Security Police.
charged Gavino Herrera, Unannounced dawn-raids is a tool, which is deployed in
Luthra & Luthra Law Office Luciano Martínez, Alfonso anti-trust investigation to unearth anti-competitive
Nevarez and René agreements. In India too, the Office of the DG after having
Rodríguez for bid rigging. obtained permission from the Chief Metropolitan
The bid relates to a 2013 Magistrate, Delhi is empowered to conduct such
auction to award contracts unannounced search and seizures (dawn-raids).
for four-years for public bus Supreme Court stays the COMPAT order that imposed
transportation in Caguas penalty on 3 car companies
(USA). The Competition Appellate Tribunal (COMPAT) vide its
order dated 09.12.2016 disposed of appeals filed by three
The DOJ argued that the four individuals had agreed to car companies against the CCI order of 27.07.2015.
allocate market during meetings and during other The COMPAT directed the car companies to:
communications. The federal jury in Puerto Rico found • Remove all restrictions imposed through agreements
them guilty of engaging in the criminal cartel conduct
between August 2013 and May 2015, and found the bus and practices on original equipment suppliers.
operators guilty of mail fraud for defrauding the • Open additional distribution channels to the open
municipality of Caguas. The sentence is to be pronounced
on 30.05.2017. market for spare parts on a country-wide basis.
• Remove all restrictions on supply of spare parts by
Competition Commission of India delivers its first
leniency decision original equipment suppliers to authorized dealers.
• Allow original equipment suppliers, authorized
The CCI India issued its first leniency decision in a bid-
rigging cartel for electronic parts on India’s railways on dealers and authorized distribution channels to sell
19.01.2017. spare parts/diagnostic tools, etc. to independent
repairers.
The CCI in its order observed that Pyramid Electronics had • Remove blanket condition that warranties would be
admitted participation in an alleged conspiracy to fix four cancelled if the consumer avails of services of any
tenders for the supply of electrical equipment on the independent repairer.
Indian railways in 2013 before the investigation report was • Develop extensive information system with the
framed. The CCI also noted that Kanwar Electricals and objective of removing asymmetry in information on
Western Electric and Trading Company also participated details of automobiles and their spare parts.
in the cartel, and together the three companies allocated • Make available in public domain information
the market, coordinated the exchange of information and regarding spare parts, their price, over-the-counter
shared the prices of tenders to supply air ventilation fans availability, alternatives, maintenance costs, warranty
for the Indian Railways and Bharat Earth Movers. provisions, etc.
On appeal, the Supreme Court has granted interim relief
Pyramid Electronics would have been fined 6.2 million to Toyota, Ford and Nissan by staying the order of the
rupees (€84,700), but the Commission cut the penalty to COMPAT. The next date of hearing is 17.02.2017
1.5 million rupees (€20,500) based on the company’s
cooperation as a leniency applicant. Pyramid, however did
not receive full immunity, as it only participated in the
leniency program after the CCI had launched the
investigation and had sufficient evidence for the existence
of the cartel.

February 2017 26


Budget Reactions

Auto Industry Terms Union Budget 2017 as Positive

Opportunities for Growth to Rebound for Auto Industry: SIAM However, the issue of 10-13 seater small buses, falling under
SIAM welcomed the Budget 2017-18, stating that it has a lot heading 8702, which continues to attract 27% excise duty due
of positives for the automotive industry. SIAM expects the to a separate classification for such vehicles, remained
growth in auto industry to rebound to the pre-demonetization unaddressed.
level through revival of the rural market and substantial
increase in expenditure on infrastructure, which are two key He also expressed satisfaction on noting that as suggested by
factors responsible for the recent growth of the industry. SIAM, the R&D Cess on import of technology has been
The decrease in corporate tax rate for MSME will give relief to abolished and the scope of domestic transfer pricing provisions
the tier-2 and tier-3 automobile component manufacturers have been restricted to reduce compliance burden. SIAM had
and help them make investment for future expansion. Also, submitted many more procedural simplification suggestions
the reduction in personal income tax at the lower level will for GST and hope that those suggestions will be taken into
cheer the market and improve sentiments, boosting personal consideration when GST Rules are framed.
consumption expenditure, which should be helpful in
enhancing demand for two-wheelers and small passenger ACMA welcomes Remonetisation of Indian Economy

vehicles. However, ACMA welcomed the measures announced in the Union
automobile sale Budget providing the much needed thrust to the economy
depends on bank through measures for rural development, infrastructure
finance and there is development, skilling, announcement of GST, affordable
an urgent need for housing, among others.
recapitalization of
banks, which cannot Congratulating
be adequately
addressed with only the Finance
Rs. 10,000 Minister, Arun
budgetary support.
Vinod Dasari, Jaitley, President
however, expressed
Vinod Dasari, President, Society of Indian his disappointment ACMA, Rattan
Automobile Manufacturers (SIAM) that Auto industry’s Kapur, said, “The
and Managing Director, Ashok Leyland request for the
incentive based fleet modernization scheme has again not Budget unveiled
found support in the budget. Moreover, there was a genuine
case for continuation of 200% weighted deduction on R&D by Finance
expenses for Auto industry, which remained unacknowledged Minister gives
in budget proposals. However, he expressed satisfaction that
Rs. 175 crores has been allocated towards funding of the adequate focus to
electric & hybrid vehicle program, through FAME scheme.
He thanked Ministry of Finance for addressing one of the key development of
concerns of SIAM regarding the payment of TCS on sale of the rural and
motor vehicles of the value exceeding ten lakh rupees to a social sector, as Rattan Kapur, President, Automotive Component
public-sector company, which is engaged in the business of well as, to the Manufacturers Association (ACMA)
carrying passengers. In addition, he welcomed the correction industry and and Managing Director, Mark Exhaust Systems
of an anomaly in CNG vehicles falling under tariff heading 8702,
that surfaced due to amendment to Central Excise Tariff Act infrastructure. The emphasis on strengthening the rural
in 2016, whereby the tariff sub-headings for Petrol/CNG run
buses were changed due to which inadvertently the excise economy will lead to positive impact on demand for vehicles
duty on these buses got increased from 12.5% to 27%. and farm equipment. ACMA also welcomes the reduction in

corporate tax on MSMEs giving them the much needed

encouragement and relief; over 70% of the companies engaged
in the auto component sector are SMEs. Further, with growing

content of electronics in vehicles, most of which is imported,

it is encouraging to note that the budget has an increased
allocation of Rs 745 crores for electronics manufacturing.”

“Further, we are happy to note that GST is taking a concrete
shape. We do hope that the components, an intermediary
industry, will attract a moderate rate of tax as higher rate will
adversely impact the industry, especially the aftermarket,”
added Rattan Kapur

February 2017 28


Upgrades & Variants

Honda Unveils New Activa 125

Honda Motorcycle & Scooter India (HMSI) unveiled the 125cc Offering convenience and comfort, the new Mobile charging
automatic scooter - new Activa 125 - on February 9. socket ensures that you always remain connected, while the
New Activa 125 comes with a Frontastic style overhaul and is Retractable front hook takes your extra-storage worries away
Industry’s first automatic scooter to meet both Automatic with style. The new Activa 125 comes with the telescopic
Head Lamp On (AHO) and BS-IV emission norms. suspension, longer & wider seat, bigger 12-inch rim size at
front wheel, and longer wheelbase.
• NEW Frontastic looks Striking LED position lights
integrated in front chrome chest Technologically advanced 125cc scooter in India

• ‘Alloy wheels with Drum brake’ added to existing two variants Activa 125 is the only 125cc automatic scooter in India
• NEW Mat Crust Metallic colour introduced equipped with Combi Brake System (CBS) with Equalizer
• NEW Features: Mobile charging socket and Retractable technology. The unique Equalizer in Honda’s advanced Combi
Brake System distributes braking force proportionately
front hook for more convenience between front and rear wheels simultaneously by pressing
• MORE Safety: Automatic Headlamp On (AHO) for the left lever. This results in reduced braking distance &
improved balance, leading to more confident riding compared
improved visibility in all conditions to conventional braking.
• Honda’s 125cc HET engine is Bharat Stage-IV compliant
• PRICE starting Rs. 56,954 (Ex-Showroom, New Delhi). High power with smooth performance

Automatic Headlamp On (AHO) is a new Government The superb net power of 6.35kw (8.52 BHP)@6,500 RPM and
notification effective April 1, 2017, according to which, the higher torque of [email protected],000 RPM give it better pick-up,
headlamp of all two-wheelers manufactured in India should load carrying and superior climbing capacity.
be equipped to automatically turn on as the vehicle starts.
BS-IV emission standards will be mandatory in all two-wheelers Colours, Variants & Price
starting April 1, 2017.
Y S Guleria, Sr Vice President - Sales & Mktg, HMSI said, “Activa The new Activa 125 comes in 5 stunning colours – Mat Crust
125 is No. 1 selling 125cc automatic scooter of India with over Metallic (new) in addition to existing Pearl Amazing White,
6 lakh customers and counting. Invigorating the segment once Midnight Blue Metallic, Black and Rebel Red Metallic.
again, Honda’s Activa 125 is now the first automatic scooter
in India to meet both the AHO and BS-IV norms.” Honda has also introduced a new mid variant – alloy wheels
Frontastic looks & added features with drum brakes.
New Activa 125 comes with the new striking LED position lights
integrated into the premium front chrome chest and a larger Activa 125 is available for sale starting as below:
3D Honda emblem for differentiated style.
Variant Price (Ex-Showroom, Delhi)

Standard (with CBS) Rs. 56,954

New - Alloy Drum (with CBS) Rs. 58,900

Alloy Disc (with CBS) Rs. 61,362.

33 February 2017


Upgrades & Variants

Mercedes-Benz Launches A-Class and B-Class ‘Night Edition’

The country’s largest luxury car maker Mercedes-Benz Key Elements of the A-Class and B-Class “Night Edition”
India strengthened its portfolio by launching two stunning • Smartphone Integration Apple Carplay and Android
luxury compacts - A-Class and B-Class ‘Night Edition’ on
January 25. Auto
Launching the A-Class and B-Class ‘Night Edition’, Roland • Frameless, Free-Standing 8-Inch Media Display.
Folger, MD & CEO, Mercedes-Benz India, commented, “We • Diamond radiator grille with louvre in high-gloss black
are glad to remain the most preferred luxury car brand in
India and we begin this year in style, by launching two and chrome insert
products in the segment we have pioneered, ‘compact • “Night Edition” Badge
luxury’. The trendy and fashionable A-Class and B-Class ‘Night • Black mirror housing
Edition’ are synthesis of youthful design that emulates • Black hub cabs
modern luxury without compromising on performance. We • Overview of the Urban Package:
believe our new generation cars play a key reole in attracting • High Gloss Black trim on the front and rear bumpers
dynamic, affluent and young Indians to the brand and this
success story will be further amplified by the launch of the Sporty and high-quality Interior of the A-Class and B-
‘Night Edition’ variants.” Class ‘Night Edition’: The new A-Class and B-Class are
7-speed dual clutch automatic transmission (7G-DCT): The equipped with a leather wrapped multifunction steering
7G-DCT in A-Class and B-Class consists of two sub- wheel featuring a 3-spoke design with 12 function buttons
transmissions, one of which transfers the tractive power to as well as a shift lever in leather. As part of the Urban
the wheels while the other is preselecting the next gear. This package, the ARTICO man-made leather and fabric sport
leads to fast, smooth gear changing without any seats assure seating comfort while, at the same time,
interruptions in tractive power and results in improved giving the interior a sporty touch. Rear Seats in B-Class
acceleration. come with 60/40 splits, which allows more storage space
Expressive Exterior of A-Class and B-Class ‘Night Edition’: (488 to 1547 litres).
Night Package Striking lines, dynamically curved surfaces and
coupé-like window lines characterize the new exterior, Uncompromised Safety features and Driving Assistance
following the design philosophy of sensuous clarity. The
Night package also features selected design elements in • Reversing Camera | ESP, ABS, BAS | High structural safety
black, including the exterior mirrors, the high-sheen 43.2 cm of the body-shell
(17-inch) 5-spoke light-alloy wheels, the high-gloss beltline
trim strips and the high-gloss trim in the front and rear • 6 airbags and other restraint systems provide the best
bumpers. possible protection

• ATTENTION ASSIST | 5-star rating from EURO NCAP

February 2017 34


News Basket

Ashok Leyland to Open a New
Assembly Plant in Bangladesh

Ashok Leyland announced, on February 2, the opening of its to strengthen its overseas presence. With a capacity to roll
new assembly plant in Dhaka, Bangladesh. out 600-800 all range of vehicles each month, the plant is
Built over a period of 15 months, the plant is spread over an equipped with state-of-the-art manufacturing equipment and
area of 37 acres. The plant is a strategic joint collaboration/ assembly lines. It will also be facilitated with a bodybuilding
tie-up between Ashok Leyland and IFAD Autos Ltd, Bangladesh. and vehicle testing facility, which will become functional in
Speaking about expansion plans, Vinod Dasari, CEO and MD, the next two years. In addition, a canteen and dormitory/
Ashok Leyland said, “With a comprehensive product portfolio, rooms for workers and employees to stay will ensure the well-
Ashok Leyland is working towards a renewed thrust in the being of the team.
international markets, with network expansion and dedicated
products. Bangladesh is an important market for Ashok
Leyland. With the inauguration of this new plant, together
with the robust presence of IFAD Autos, we expect to make
significant inroads into this region.”
This announcement comes on the back of the company’s vision

Tata Motors Forays into Future Mobility Solutions with TAMO

An agile, ring-fenced vertical operating in an incubating environment towards new technologies,
business models and partnerships

As a core element of its transformation journey ‘FutuReady’, rapidly changing environment, the advanced mobility
Tata Motors presented its new Passenger Vehicle strategy and solutions space is of utmost importance. The introduction of
introduced its new sub-brand – TAMO. It will act as an TAMO will help us to co-design India’s automotive footprint
incubating centre of innovation towards new technologies, by taking new technologies and mobility concepts as a new
business models and partnerships in order to define future ecosystem to market.”
mobility solutions. Tata Motors’ New Passenger Vehicle (PV) Strategy
To achieve sustainable financial performance, while delivering
TAMO, as a new, separated vertical, will operate in the first exciting innovations, Tata Motors is aiming to be amongst the
step on a low volume, low investment model to provide fast top 3 passenger vehicles by 2019 in India. Taking an outside-
tracked technologies and concepts. TAMO will act as an open in approach, Tata Motors reviewed its existing PV product
platform to network with global startups and leading tech portfolio and formulated a new PV strategy based on the
companies, to get access to trends, innovations and solutions, evaluation of different customer segments and global
for the design of exciting future products and services. For progressions in terms of design, technology and innovation.
the rapidly changing automotive environment, TAMO will Tata Motors foresees a strong demand growth in the hatchback
transform the experience of interfacing and interacting with and the SUV segments, according to this study.
customers and the wider community. TAMO will provide a Speaking on its well-defined PV Strategy, Mayank Pareek,
digital eco-system, which will be leveraged by Tata Motors to President, PV Business, Tata Motors, said, “In line with our
support the mainstream business in the future. new PV strategy, our portfolio will include a mix of brand
enhancing products and ones that are well aligned to the rising
Speaking on the announcement, Guenter Butschek, MD & aspirations of the different target customer segments. Our
CEO, Tata Motors, said, “The success of our transformation strategy is to deliver 7-8 product variants from two platforms,
journey ‘FutuReady’ is measured by our vision and depends for greater coverage and sizable economies of scale. Our new
on our ability to deliver on our comprehensive strategies for architectural approach supports our effort to reduce
our business units. Our game plan addresses six themes – complexity, enables future technologies and ensures global
topline improvement, cost management, structural relevance. We have mapped technology solutions in key areas
improvements, customer centricity, new mobility solutions
and organizational effectiveness. To secure our future in a

35 February 2017


News Basket

such as powertrain systems, ADAS and enhanced connectivity Speaking on tapping innovative mindset globally, Dr Tim
to our future product portfolio and have defined the Leverton, President and Head Advanced & Product
application framework. Our goal is not to just comply with Engineering, Tata Motors, said, “With TAMO, we are starting
the emerging regulations but be ahead of the requirement.” a new era. The idea is to find new and agile ways of innovating
Technology drivers that will lead the future and experimenting. Our success in this new mobility world
The automotive industry is facing a discontinuity in the nature will be contingent to our ability to network globally and to
of mobility, and the products & services needed to satisfy the partner with new thought leaders. Our focus will be to scout
emerging customer preferences. These emerging trends may for new technologies and to explore opportunities at the
lead to a new set of competitors thus causing disruption in innovation hubs across the globe and to work with start-ups
the traditional operating models. To secure a future position in the new spaces. Since this requires a different way of
in a rapidly changing environment, Tata Motors is actively thinking, we will apply within TAMO also, new ways of working
exploring opportunities to offer products and solutions because leadership is all about time to market.”
catering to the discerning needs of our customers, new
approaches, technologies, business models and partnerships. The first product developed by TAMO will premiere at the
upcoming 87th Geneva International Motor Show on March 7.

Maruti Suzuki Remains the Most Preferred Brand Amongst Indian
Automobile Buyers: Droom’s Annual Report

- Bajaj Pulsar emerges as the most popular bike ahead of Hero Passion Pro and Bajaj Discover
- Harley Davidson and KTM lead the list of the most in-demand superbikes; BMW and Audi share the top

honours in the supercar category

Maruti Suzuki Swift, one of the most complete cars from the in sales from 34% to 44%. Hatchbacks also reported a drop in
house of Maruti Suzuki, has emerged as the most popular car sales from 43% to 40%, while Sedan and SUVs almost remained
amongst Droom consumers for the second consecutive year. at par to the previous year’s numbers. MUVs reported a slight
The model was followed closely by Toyota Innova and Honda increase from 6% to 9%.
City. Maruti Suzuki also scored over its competitors in terms
of the overall body make. Commenting on the latest reports, Sandeep Aggarwal,
Droom is India’s online automobile transactional Founder and CEO, Droom said, “The trends as seen in
marketplace. Droom’s analysis paints a distinct picture of the entire
In the bikes segment, Bajaj Pulsar emerged as the most popular automobile marketplace. Droom is still a largely urban
vehicle, followed by Hero Passion Pro and Bajaj Discover, while customer-oriented market, with the highest response coming
Honda Active staked its claim at the top of the scooter in from Delhi-NCR, Ludhiana, Bangalore and Jaipur. However,
segment, beating the likes of Suzuki Access and Honda Aviator. the response from Tier-II and Tier-III cities has been growing
The trends were identified from Droom’s platform data constantly, which gives us a lot of encouragement. While
corresponding to the 2015-16 period. Indian brands and tie-ups such as Maruti Suzuki and Hero
Another interesting insight that was drawn through Droom’s emerged as the most–trusted brands, foreign manufacturers
latest annual consumer survey was the category-wise like Hyundai and Honda are fast catching up. We believe the
distribution of sales volume and numbers. According to the comprehensiveness, relevancy, and structure of this review
report, 59% of queries and online sales closed by Droom will further enhance Droom’s popularity and motivate users
comprised two-wheelers (41% bikes, 26% scooters). Cars to choose it as the ideal platform to sell or buy used and
accounted for 38% of total sales, whereas the rest was new automobiles.”
occupied by superbikes and supercars. Bikes on the Droom
platform were bought at an average price of Rs 43,360, while The fast lanes of the supercar and superbike section – Droom’s
cars sold at an average price of Rs 5,76,969. latest offering – also attracted massive positive response. While
Somewhat surprisingly, petrol and CNG cars saw a dip in sales Harley Davidson and KTM featured amongst the most popular
from 59% to 52% and 7% to 4%, respectively, from 2015 to superbikes with KTM Duke bagging the top spot, BMW and
2016. Diesel vehicles, on the other hand, reported an increase Audi shared the distinction of being the most in-demand
supercars. Audi A4 again emerged as the most loved car for
Delhi’s rich and famous.

February 2017 36


3. Impact of Current Economic Environment on Dealership SALES • INVENTORY • PROFITS
Business • Decline in sales indicates a build-up of inventory at
• It is observed that there has been a gradual decline
in the dealer sentiment over the year on the the dealership. Accordingly, 69% of the dealers stated
economic environment in the country. that they were carrying more inventory compared
• Commercial Vehicle dealers expressed the most to same period last year. This is a three-fold increase
pessimistic sentiment about their dealership business copared to last quarter where only 21% of dealers
with 93% of them stating that the impact has been said that they were carrying more inventory.
‘negative’, followed by Passenger Car dealers with • Commercial Vehicle dealers seem to be carrying a
91% expresseing a negative sentiment. higher inventory with 68% stating that they have
• 90% of the Two-Wheeler dealers stated a negative ‘much higher’ inventory than same period last year.
impact on their business. • Passenger Car and Two-Wheeler dealers were also
seen carrying more inventory in this quarter at 66%
4. Dealership Performance vis-a-vis Same Period Last Year and 65%, respectively.
SALES • INVENTORY • PROFITS
• There has been a four-fold rise in the number of 41 February 2017
dealers who felt their dealership performance has
declined as compared to those in the previous
quarter.
• Opinion of the Passenger Car dealers about sales as
compared to the last year can be seen taking a dip in
this quarter. Only 16% of the Passenger Car dealers
felt that their sales have increased, as compared to
same period last year.
• Very large proportions of Two-Wheeler and
Commercial Vehicle dealers (90% and 96%
respectively) felt that the dealership sales, vis-à-vis
the same quarter last year, declined.


Surveys & Studies

SALES • INVENTORY • PROFITS • The Passenger Car dealers were more optimistic than
the others. 38% felt that their profit was higher than
• Across the segments, there was no dealer, who that in the last quarter.
stated that the profit of the dealership was ‘much
higher’ than same period last year. The proportion
stating that it was a little higher was just 17%, • More than 75% of the Two Wheeler and Commercial
Vehicle dealers felt that they were making less profits
compared to 53% saying the same in the previous compared to the previous quarter.
quarter.
6. Expected Economic Environment Next Six Month
• Only 17% of Passenger Car dealers and 22% of Two- Compared to the Present
Wheeler dealers stated a higher profit than last year.
This number is very low compared to the previous • Overall, 47% of the dealers felt that the economic
quarter’s findings wherein more than 50% of dealers scenario in the country is going to improve in the
had indicated higher profits. next six months. Interestingly, 53% of the dealers are
still not very confident on the economic environment
• 93% of the Commercial Vehicle dealers stated they in the country for the next 6 months.
had lower profits in this quarter.
• None of the respondents in the survey voted for a
5. Dealership Performance vis-a-vis Last Quarter ‘very positive’ economic environment in the
country. Among the lot, Passenger Car dealers had
SALES • INVENTORY • PROFITS the largest share of dealers (47%) expecting better

• 52% of the dealers felt that their sales in the Oct - economic environment in the country over next 6
Dec 2016 quarter were lower than the sales in Jul - months.

Sep 2016 quarter, this needs to be understood in 7. Expected Market Performance Over Next Six Months
the context that July - Sep quarter had the
inauspicious period of the year such as Shraddh in
north India, whereas Oct - Dec period had the full • In line with the hope for revival over next six months,
82% of the dealers felt that the market performance
festival season. will be good in the next six months. Of these, 25%

• 71% of Two-Wheeler dealers and Commercial Vehicle felt that it will be `quite good’.

dealers stated that they had lower sales than last • However, the proportions of those expecting a poor
quarter.
performance has almost doubled from 10% in the
previous quarter to 18% in this quarter.
• However, 62% of Passenger Car dealers stated that
their sales were better than last quarter. This may be
due to huge promotions undertaken by the car • The optimism was greater in the case of Two-Wheeler
dealers with 93% of dealers looking forward to a
industry. better market performance in next six months. 32%

SALES • INVENTORY • PROFITS of the Two-Wheeler dealers felt that the performance
of the market will be quite good. It might be on
account of a bumper harvest expected in the coming
• A whopping 82% of the dealers felt that their months.
inventory levels went up, as compared to 23% who
felt the same in the last quarter. This may be
attributed to stock piling in the dealership due to • In contrast, almost one third of the Commercial
demonetization, alongwith the build-up of vehicle Vehicle dealers expect the market performance to
supply from the OEMs. be poor.

• This view was carried by 88% of Passenger Car 8. Expected Dealership Performance Over Next Six Months
dealers, 62% of the Two-Wheeler dealers and 79%
of the Commercial Vehicle dealers. • For the last two quarters, dealers have expressed
positive sentiments for an improved dealership
performance over next six months, which also
SALES • INVENTORY • PROFITS coincides with the expected market performance

• 71% of the dealers stated that their profit was lower captured in this report. This might be accentuated
than that the previous quarter. by the low levels in the current quarter.

43 February 2017


MAURYA MOTORS LIMITED

Tata Authorised Dealer for Passenger & Commercial Vehicles

Plot No. C-1, Industrial Area
Patliputra

Patna - 800 013

Phones: 92636 32685 / 92636 39260 / 92346 66948
E-mail: [email protected]
[email protected]

February 2017 44


Surveys & Studies

• 38% of the Passenger Car dealers felt that the • Improvement in profit was also expected by both
performance of their dealership will be ‘quite Passenger Car and Two-Wheeler dealers. It should
good’, compared to 36% of overall respondents. be noted that dealers in both these categories were
The proportion in case of Two-Wheeler dealers was not as optimistic as Commercial Vehicle dealers.
45%. Only 8% and 16% shared the sentiment of ‘much
higher’ profits with the Commercial Vehicles
• The Commercial Vehicle dealers were more dealers.
optimistic about their business vis-à-vis overall
market. 61% felt that the dealership business will 9. Expected Manpower Strength Over Next Six Months
be somewhat good and 18% felt it would be quite • 66% of dealers expected higher manpower level in
good. the next six months, as compared to present. It is
supported by the sentiment of 85% dealers who felt
9. Expected Dealership Performance Over Next Six Months that their sales level will improve in the next six
Compared to the Present Level months.
SALES • INVENTORY • PROFITS • The proportion of Passenger Car dealers and the Two-
• Overall, 85% of the dealers felt that their sales will Wheeler dealers, who expect higher manpower
be higher than the present level in the next six strength in the next six months, increased compared
months. 17% out of these felt that the sales will be to the previous quarter.
`much’ higher compared to the present level. This • 83% of the Commercial Vehicle dealers expect their
optimism must be viewed from the perspective that manpower levels to be higher in the next six
the current sentiment is probably the lowest in a long months, as compared to 72% at the end of previous
time. quarter.
• The proportion of those who expect `much higher’
sales was the greatest in the case of Two-Wheeler 11. Dealership Opinion on How Does Vehicle Recall Impact
dealers (19%), followed by Passenger Car dealers the Sales at Dealership
(16%). • In this edition, we asked dealers about how vehicle
• The Commercial Vehicle dealers also maintained an recalls by OEM impact the sales at the dealership.
optimistic view ( 86%) and expected the sales to be Here is the response of the dealers.
higher in next six months. • 53% of the dealers believe that the customers
SALES • INVENTORY • PROFITS generally have no knowledge of such recalls.
• The apprehension about the inventory levels • 38% of the dealers felt that it has no impact on the
continued and 33% of the dealers expected higher sales as customers don’t care much about recalls.
inventories in next 6 months. • Only 18% of the dealers believe that there is a drop
• The apprehension was highest amongst Commercial in sales as the customers doubt the quality
Vehicle dealers. The Two-Wheeler and Passenger
Car dealers were a little less apprehensive. In fact,
45% of the Two-Wheeler dealers felt that their
inventory level will come down in next 6 months.
SALES • INVENTORY • PROFITS
• The expectation of profit is high, quite in line with
sales as we witnessed earlier. However, the dealers
are relatively little cautious about committing to
profit.
• The Commerial Vehicle dealers are more upbeat than
others on this aspect. 54% of the respondents
thought that their profits will be ’much higher’.

45 February 2017


Consumer Case Studies

National Consumer Disputes Redressal Commission, New Delhi

Ajit Bharihoke, Presiding Member and Dr S M Kanitkar, Member

Ramesh Chander Verma - Petitioner

Versus

Sairam Tata Motors – Respondent

Revision Petition No. 491 of 2016 Decided on 07.09.2016

(Against the Order in Appeal No. 311/2015 dated 19.11.2015 of the State Commission Chhattisgarh)

Consumer Protection Act, 1986 – Sections 15, 19, 19 and 21 – Automobile – Sale of Defective Car – Complaint dismissed by fora
below – District Forum did not find anything wrong in pre-delivery inspection done by Opposite Party to ensure that new car
in perfect condition is delivered to Complainant – Merely pre-inspection test was done and consequent minor repairs were
undertaken, it cannot be said that Complainant had been sold an old damaged/repaired car – There is nothing on record to
suggest that car suffered from any defect – Revision petition dismissed.

Important Point

Merely because a pre-delivery inspection is done and minor defects are removed by the dealer to ensure that new car in
perfect condition is delivered to Complainant, does not necessarily imply that the old/damaged car has been sold.

Order

1. Ajit Bharihoke, Presiding Member - Petitioner/ warning red light of the brake system is a sign of failure
Complainant being aggrieved of concurrent finding of of the brake system. The case of the Complainant is
the District Forum, Durg and the State Commission, that at the time of sale, the Opposite Party dealer
Chhattishgarh, resulting in dismissal of his consumer concealed from him that certain defects found in the
complaint No. CC/14/95, has preferred this revision car were removed on 17th December, 2013. Not only
petition. this, the hand brake system was rectified on 30.1.2014.
On the aforesaid allegations, the Complainant has
2. Briefly stated fact relevant for the disposal of the claimed that the Opposite Party sold him defective and
revision petition is that on 31st December, 2013, the repaired car. Therefore, he is entitled to replacement
Complainant/Petitioner purchased a car make Indigo of car, as also the compensation.
from the Opposite Party. 3. The Respondent/Opposite Party in its written
According to the Complainant, as per the sticker pasted statement took the plea that before the delivery of car
on the car, it was tested and found OK by the to the customer, it is obligation of the dealer to conduct
manufacturer company on 1.11.2013. However, at the pre-delivery inspection and rectify minor faults. Thus,
time of sale, the car had already run 35 kms and the on 17.12.2013, pre-delivery inspection was done and
warning red light of hand brake system was on. When it was found that fuel meter was not functioning
the Complainant asked for the reason as to why properly. It was, accordingly, replaced. As regards the
warning red light was on, the dealer assured him that mileage of 35 kms, it was pleaded that the vehicle
it was immaterial. It is further the case of the before sale, for the purpose of pre-delivery inspection,
Complainant that although he was assured that the car was put to test drive. It is alleged that the vehicle was
will give mileage of 25 kms per litre, its mileage was delivered to the Complainant in perfect state after pre-
much less i.e. 18 kms per litre. The Complainant, thus, delivery inspection and that in view of the on-line
contacted the Opposite Party on toll free number on registration done, the date of sale in the registration
19.1.2014 and he was told that on 17.12.2013, the certificate is shown as 16.1.2014. Otherwise, the
necessary rectifications had been done to remove the vehicle was sold on 31.12.2013. On the same day, it
defects in the car and to set right the average was got insured by the Complainant.
consumption. The Complainant, however, on 4. Learned District Forum on consideration of the
contacting some other mechanic came to know that

February 2017 46


NADA Musings

Auto CEOs Ask Trump to Revisit Obama-era Fuel Efficiency Rules

The chief executives of 18 automakers have asked President The agency said extensive analysis and data review, including
Donald Trump to reinstate a US Environmental Protection a report of more than 1,000 pages analyzing the feasibility of
Agency review of fuel-efficiency regulations through 2025 that the rules last summer, found no evidence that the rules needed
they say was unfairly cut short during the final days of the to be amended.
Obama administration. Automakers criticized the ruling as a political move to lock in
In a Feb 10 letter, executives including Mary Barra of General the industry’s greenhouse gas emissions standards, a key piece
Motors Co., Ford Motor Co.’s Mark Fields and Fiat Chrysler of President Barack Obama’s legacy on environmental policy,
Automobiles NV boss Sergio Marchionne asked Trump to before Trump took office.
return the review to its original schedule, giving the new Gloria Bergquist, a spokeswoman for the Alliance of
administration a chance to shape the outcome. Automobile Manufacturers, said the letter from the executives
Automakers agreed to the 2025 efficiency rules in 2011 in a reflects the industry’s desire to “put the review back on track
landmark deal brokered by the Obama administration to boost and have the data drive the outcome” of the analysis.
fuel economy to a fleet average of more than 50 mpg by 2025. ‘Truncated’ Process
The deal aligned greenhouse gas limits set by the EPA and “What we’re really trying to do is just restore the process,
California’s Air Resources Board with fuel economy regulations and because the process was truncated, we don’t really know
governed by the NHTSA. what the standards should be,” Bergquist said. The
Part of the deal included a mid-term review to determine Washington-based alliance represents the Detroit Three and
whether the final years of the program, the 2022-2025 model nine other automakers.
years, were feasible. Automakers say falling gasoline prices Roland Hwang, Director of energy and transportation at the
have squelched demand for the most fuel-efficient vehicles, Natural Resources Defense Council, criticized the request.
making achieving the standards more difficult. “We view this as the first step in the automakers’ attempt to
NHTSA’s portion of the review is ongoing. It must issue fresh weaken common-sense fuel efficiency and pollution standards,
rules by 2020 setting fuel economy standards from 2022 which would raise drivers’ fuel bills and threaten investments
through 2025. and jobs in clean-car technologies,” Hwang said in a statement.
No Changes The plea from the executives comes after Trump made the
Just a few week before Trump took office, the EPA concluded auto industry a major focus of his first days as president. After
its portion of the review, more than a year before an April a Jan 24 meeting with Barra, Marchionne and Fields, Trump
2018 deadline. It found that the standards for greenhouse vowed to ease regulatory burdens to lure more car factories
gas emissions through 2025 didn’t require any changes. to the US, calling environmental rules “out of control.”

GM’s Barra Meets with Trump Amid Travel Ban Angst

General Motors CEO Mary Barra met with President Donald immigration, regulatory relief, tax and trade, women in the
Trump’s Strategic and Policy economic forum on February 10 workplace, infrastructure and education.
in the panel’s first gathering since Trump’s controversial Barra, in a statement, said she was “pleased to have been part
executive order banning travelers from several Muslim- of a very constructive discussion on how we can all work
majority countries. together on policies that support a strong and competitive
Barra is one of several auto-related business leaders appointed US economy, create jobs and address safety and environmental
by Trump to the panel, which is intended to advise him on issues.
economic issues and jobs growth. “As we have stated, a vibrant US economy that is competitive
She sat next to the president in the meeting. Blackstone Group globally and that grows jobs is what we all want.”
CEO Stephen Schwarzman was seated on the other side of Trump focused mostly on economic issues, touting a new jobs
Trump. report that showed the US economy added 227,000 jobs in
Schwarzman said the group planned to cover issues of January

49 February 2017


PASSENGER VEHICLE SALES - JANUARY 2017

Domestic Sales Jan-17 Jan-16 Growth Y-o-Y (%) Exports Jan-17 Jan-16 Growth Y-o-Y (%)
6,264
OEM 288 630 -54.29 OEM 8,004 5,789 8.21
253 Ford India 981
Fiat India 7,995 376 -32.71 General Motors 9,817 5,701 40.40
Force Motors 1,808 Honda Cars 627
Ford India 29 7,045 13.48 Hyundai Motor 10,295
General Motors 15,592 Mahindra 5,750
HM Finance Corp 42,017 2,788 -35.15 Maruti Suzuki 758 400 145.25
Honda Cars Nissan Motor 287
Hyundai Motor - 25 16.00 Renault India 916 6,214 57.98
Isuzu Motors 20,096 Tata Motors 4,889
Mahindra 133,768 17,135 -9.00 Toyota Kirloskar 48,588
Maruti Suzuki 4,346 Volkswagen
Nissan Motor 8,791 38,016 10.52 Total 432 45.14
Renault India 1,220
Skoda Auto 14,721 14 - 7,223 42.53
Tata Motors 10,336
Toyota Kirloskar 4,060 22,088 -9.02
Volkswagen 265,320
Total 106,383 25.74 8,892 -35.34

2,668 62.89 --

8,031 9.46 458 -37.34

1,202 1.50

12,987 13.35 745 22.95

8,511 21.44 6,230 -21.52

4,018 1.05

231,917 14.40 42,084 15.45

Domestic Sales + Exports

OEM Jan-17 Jan-16 Growth Y-o-Y (%)

Fiat India 288 630 -54.29 Segment wise (Domestic Sales + Exports)
Force Motors 253 376 -32.71
Ford India 14,259 12,834 11.10 Category Jan-17 Jan-16 Growth Y-o-Y (%)
General Motors 9,812 8,489 15.58
HM Finance Corp 29 25 16.00 Cars 227,466 202,212 12.49
Honda Cars 16,573 17,535
Hyundai Motor 51,834 44,230 -5.49 UVs 69,652 58,006 20.08
Isuzu Motors 14 17.19
Mahindra - 22,520 Vans 16,790 13,783 21.82
Maruti Suzuki 20,723 113,606 -
Nissan Motor 144,063 11,560 -7.98
Renault India 10,096 8,031 26.81
Skoda Auto 9,549 1,202 -12.66
Tata Motors 1,220 13,445 18.90
Toyota Kirloskar 15,008 9,256 1.50
Volkswagen 11,252 10,248 11.63
8,949 21.56
274,001 -12.68
Total 313,908 Total 313,908 274,001 14.56
14.56 Source: SIAM

February 2017 50


Click to View FlipBook Version
Previous Book
If You Are Attractive and You Know It, Please Apply ...
Next Book
SES-15