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July 2017 issue of FADA Journal

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Published by FADA Journal, 2017-07-25 03:21:33

FADA Journal - July 2017

July 2017 issue of FADA Journal

Office Bearers contents


JOHN K PAUL INDUSTRY TRACK 8 Impending GST Rollout Impacts Vehicle Sales in June
Popular Vehicles & Services Pvt Ltd
Kuttukaran Centre, Mamangalam, Kochi - 682 025 OPINION 11 Multiple Factors Lead CV Sales to Fall in Q1 in FY’18 - ICRA
Tel: +91-484-234 1134 / 7872 / 5013
E-mail: [email protected];

[email protected]

Vice President SURVEYS & STUDIES 12 Automotive Dealers Optimistic, Reveals Sewells MSXI Survey

ASHISH KALE 23 Key Findings of 2017 India DSWAMI Study - J D Power
Provincial Automobile Co. Ltd
Kingsway, Near Railway Station, Nagpur - 440 001 16DECODING GST Tweet FAQs on GST in Government of India’s GST Portal
Tel: +91-712-391 1129 / 1150
E-mail: [email protected]; NEW ON WHEELS 28 • Honda Launches 110cc Scooter - CLIQ
• New BMW 5 Series Launched in India
[email protected]
UPGRADES & VARIANTS 30 • ŠKODA Auto Rolls Out New Octavia
Secretary General & Editor, FADA FADA ALBUM • MahindraLaunchesJeeto MinivantoRedefineLastMileTransportation
Journal • Honda Cars Introduces ‘Privilege Edition’ of Honda Amaze
GULSHAN AHUJA 33 • FADA’s MoU with Haymarkets for Dealership Performance Awards
Federation of Automobile Dealers Associations BLOG • GM’s Dealers Stage Protest Dharna
805, Surya Kiran, 19, K G Marg, New Delhi • FADA’s Council Meeting
Telefax: +91-11-6630 4852, 2332 0095
E-mail: [email protected] • Web: 35 • TVS Partners with Abans Auto to Sell 3-Wheelers in Sri Lanka
• GM India Starts Export of Chevrolet Beat Sedan to Latin America
ADVERTISERS’ INDEX 56 • ŠKODA Achieves Best First Half Year in the Company’s History
• Ashok Leyland Forms Strategic Alliance with SUN Mobility
Back Cover 2 • Hyundai Launches ‘HyBUY’ - An Online Buying Experience in India
V E Commercial Vehicles
55 38 The Moment That.. Millennials Rewrote the Rules on Car Usage
Front Inside Cover - Guillaume Saint, Global Dev. Director, TNS Automotive
Tata Capital Financial Services 3
4 CONSUMER CASE STUDIES 40 NCDRC : Tata Motors Ltd - Petitioner
Back Inside Cover 6 Versus Girja Shanker Tamta & Anr - Respondents
Tata Motors 10
15 COMPETITION LAW 43 Competition Law Updates - G R Bhatia
Inside Pages 32
• Mahindra & Mahindra Financial Services 34 SALES REPORTS 45 Vehicle Sales & Exports and Y-o-Y Growth - June 2017
• AMPL 39
• HPCL 42 KNOW OUR MEMBER 51 Profile of Oriental Motors, Jabalpur and Satna
• United Group of Institutions 44
• Marikar Group 47 NADA MUSINGS 52 Major developments affecting Automobile Industry in US
• HPCL 50
• Satyam Centre of Professional Excellence 55
• Maurya Motors
• Prime Honda
• Bagga Link
• SKF Group
• Carazoo Online Solutions
• Shriram Transport Finance

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

Hello GST

Dear friends,
As expected, GST has become a reality effective from 1st July 2017. While
the implementation of GST is a revolutionary step and will avoid
multiplicity of taxes and cascading effect thereof in the earlier tax regime,
there are a lot of apprehensions and a number of grey areas concerning
compliances, classification and rates.
For automobile dealers in particular, the taxation of secondhand vehicles,
including taxation of resale of demo cars and company owned cars;
taxation of repair & servicing of motor vehicles, entailing sale &
replacement of parts and consumables; taxation of insurance claims for
repair and painting of accident vehicles; and non-availability of input tax
credit for duties paid on stocks more than one year old on the appointed
date, are some of the major issues, which need to be addressed at the
earliest. There are host of other issues as well, which are bugging the
automobile dealer community.
I wish to assure my dealer friends that we, in FADA, are alive to the
challenges of GST implementation. We have taken up the major issues of
concern to the automobile dealers with the Government and are awaiting the clarification. We are also trying to meet the
concerned officials within the GST Council and CBEC in order to expedite the response to the issues taken up by us.
To guide and educate automobile dealers on the implications of GST and the preparedness required on their part for smooth
transition, an initiative was taken to organise series of seminars on GST in various parts of the country. 14 seminars on GST
have been held under the banner of FADA in Mumbai, Delhi, Raipur, Lucknow, Nagpur, Aurangabad, Kochi, Chennai, Bangalore,
Vijayawada, Kolkata, Guwahati, Hyderabad & Jaipur. What is heartening is that the seminars received massive response, with
each seminar attracting over 150 participants.
While arrangement with Ms Puloma Dalal for advising and guiding FADA members on GST/Service Tax continues, FADA is in
touch with other GST Consultants as well to clarify the members’ queries on GST. Members’ queries are also being posted by
FADA on Government’s GST Twitter handle.
Besides, FADA has tied up with to provide education and guidance on GST to its members through the latter’s
GST Digital Learning Course. As part of the digital learning course, GSTStreet will create GST learning community for FADA
members on its portal or any other technology platform, led by subject matter experts like Dr Sanjiv Agarwal to address
questions of registrants enrolled for digital learning course, up to 2 return period.
FADA has created Statewise Groups of FADA Members on WhatsApp with objectives: (i) to sustain the interest of members and
keep them abreast of FADA’s activities, (ii) to foster fellowship among members, (iii) to know what is happening in the industry
and trade through sharing of experiences and information, and (iv) to receive feedback. I would urge my fellow dealers to join
appropriate State WhatsApp Group, if you have not joined as yet.
As you are aware, sudden decision of General Motors India to stop sales in the Indian market from 1st January 2018 has left the
automobile dealers and customers shell-shocked. This abrupt decision of General Motors India is contrary to the assurances
given by the company from time to time and has caused huge loss to the company’s dealers, GMI dealers staged a dharna at
Jantar Mantar, New Delhi on 27th June 2017 under the banner of FADA, which evoked a massive response and coverage in the
media. Further measures to ensure justice to the GMI dealers are being contemplated.
Please feel free to send your inputs and suggestions.
With best wishes,
Yours sincerely,

John K Paul

7 July 2017

Industry Track

Impending GST Rollout Impacts Vehicle Sales in June

With manufacturers and dealers rationalizing their inventories unified single market,” commented Rakesh Srivastava, Director
and customers postponing their purchases due to expected - Sales & Mktg, HMIL.
reduction in vehicle prices post GST implementation, the Honda Cars India Ltd (HCIL) posted domestic sales of 12,804
vehicle sales were in slow lane during June 2017. Discounts units in June 2017 against 11,407 units in corresponding month
and freebies offered by the OEMs and dealers to clear their last year, registering a growth of 12.2%. Honda City clocking
stocks during June, did not find many takers. Total vehicle sales 5,187 units in domestic sales was the company’s best-seller in
in June 2017 at 1,818,829 units were flat, crawling up by June 2017, followed by WR-V – 4,243 units, Jazz - 1,307 units,
measly 1.3% vis-à-vis 1,796,172 units a year ago. Amaze - 1,193 units, BR-V – 567 units, Brio – 283 units, and
CR-V – 24 units. HCIL also exported a total of 450 units in June
Expectation of reduced prices post-GST rollout puts 2017.
brakes on passenger vehicle sales

Passenger vehicle segment that had been witnessing a steady Yoichiro Ueno, President and CEO, HCIL, said “HCIL conducted
growth for some time hit a roadblock, as customers preferred a price protection in June to those customers who purchased
to wait and watch to see how prices play out on introduction cars before GST rollout in order to counter the sales challenge
of GST. Even the UV sales that were clocking healthy double- during pre-GST period. It helped us maintain good sales
digit growth riding on compact SUVs introduced in the market numbers. We foresee that the GST rollout, good monsoon
of late, were down 11.3% y-o-y in June 2017. Passenger cars forecast and upcoming festive season will further improve the
and vans saw their domestic sales decline year-on-year by buyers’ sentiment. The 4th Gen Honda City reached yet another
11.2% and 10.7%, respectively. Total passenger vehicle sales milestone in its successful journey in India, recording
in domestic market at 198,399 units in June 2017, compared cumulative sales of over 2.5 lakh units in June 2017. City also
to 223,454 units a year ago, posted a 11.2% decline, making it became the highest selling mid-size sedan in H1 of 2017.”
the steepest fall since May 2013, when due to the economic Tata Motors’ passenger vehicle sales, including cars, UVs and
slowdown and rising fuel prices, overall PV numbers were vans, in domestic market at 13,148 units during June 2017
down by 11.24%. were down 12.2%, vis-a-vis 14,973 units in June last year. The
Thanks to the continuing significant contribution of Vitara company called it as a blip, saying that the sales would recover
Brezza in compact SUV segment and Baleno in compact in the coming months, post-GST.
segment to its sales tally, the car market leader, Maruti Suzuki Another home-grown player, Mahindra & Mahindra (M&M)
India (MSI) managed a marginal 1.0% uptick in domestic sales was also in negative terrain, reporting a 5.3% fall in its domestic
that stood at 93,057 units in June 2017 vis-à-vis 92,133 units passenger vehicle sales that added up to 16,169 units in June
in June 2016. 2017, as against 17,068 units a year earlier.

Hyundai Motor India Ltd (HMIL), No. 2 player in the Indian With the aim of reducing inventories at its dealerships before
passenger vehicle market, registered a 5.6% drop in domestic GST rollout, Toyota Kirloskar Motor (TKM) withheld supplies
sales from 39,806 units in June last year to 37,562 units in to dealers. The company sold just 1,973 units in the domestic
June 2017. HMIL’s exports also slid by 16.4% y-o-y to 13,291 market and exported 1,655 units of the Etios series in June
units during the month. 2017, clocking a total of 3,628 units. The domestic sales

“In a challenging market fueled with speculations on the GST witnessed a massive 85.5% plunge, while the exports were up
structure, Hyundai registered highest ever half year (H1: Jan – 24.9% y-o-y.
June 2017) domestic sales at
2,53,428 units with a growth of 4.1% Sales (Domestic + Exports) during June 2017 viz-a-viz June 2016

on account of strong acceptance of
super performer brands Grand i10,
Elite i20 and Creta in Pre-GST
business environment. We expect a
positive demand pull post the
successful implementation of GST in
the coming months, as industry will
witness heightened level of
customers’ interest in a seamless

July 2017 8

Industry Track

N Raja, Director & Sr VP, Sales & Mktg, TKM said, “In line TVS Motor clocked domestic sales of 228,518 units in June
with our “Customer First” philosophy, Toyota Kirloskar Motor 2017, up 10.4% (June 2016: 207,012 units). Its scooter sales
has taken a conscious decision to lower the volumes of vehicles grew by 34.0% y-o-y to 86,296 units during the month.
sold to dealers this month. We believe that our dealers are Notably, the growth in TVS scooter sales was driven by its
our first customers, who cater to the requirements of our end bestselling 110cc Jupiter scooter, which is also India’s second
customers. This strategy has been undertaken to ensure that largest selling scooter model. TVS’ motorcycle sales in
there is minimum burden on our dealer partners and they domestic market were up 13.4% to 76,920 units in June 2017
can focus on clearing the existing stocks at the dealerships.” over 67,859 units in June 2016, while domestic moped sales
Similarly, Ford India also took a massive 35.1% hit in domestic at 65,302 units were down 12.6% y-o-y.
sales, logging 6,148 units in June 2017 vis-à-vis 9,469 units in Bajaj Auto sold 108,109 units in the Indian market in June
June 2016. With exports of 14,679 units in June, the company 2017, as against 168,625 units sold in June 2016, which
remained in fast lane, posting a healthy growth of 42.7%. marked a sharp 35.9% decline. The company’s two-wheeler
Renault India posted domestic sales of 6,840 units in June exports were also down 7.8% y-o-y to 96,558 units during
2017, which translated into a negative growth of 42.2%, the month.
compared to 11,837 units a year ago. Domestic sales of India Yamaha Motors slipped by 10.0% to
Ditto for Nissan India that witnessed a 12.1% decrease in 60,472 units in June 2017 from 67,204 units a year back. The
domestic sales at 4,582 units in June 2017 vis-à-vis 5,212 units company, however, clocked an impressive 30.5% growth in
a year ago. The company’s exports were also down 50.9% y- two-wheeler exports that added up to 15,221 units in June
o-y to 3,751 units during the month. 2017 vis-à-vis 11,663 units in June 2016.
Suzuki Motorcycle India registered domestic sales of 33,565
Two-Wheelers hold steady units in June 2017, witnessing a spectacular 58.5% surge
compared to 21,172 units a year ago.
Bucking the uncertainty arising from GST implementation, Unstoppable, Royal Enfield continued to grow at scorching
two-wheeler sales stayed on course. Total two-wheeler sales pace. Selling 61,671 units in the Indian market during June
at 1,527,049 units in June 2017 (June 2016: 1,468,363 units) 2017, the company posted a decent 25.7% growth over the
grew by modest 4.0%. corresponding sales tally of 49,060 units in June 2016.
Hero MotoCorp Ltd (HMCL) came up with a stellar
performance, standing out as the biggest volume gainer in Commercial Vehicles continue to face headwinds
June 2017. The company reported total sales (including
exports) of 624,185 units June 2017, up 13.6% (June 2016: Commercial vehicle sales in the Indian market remained in
549,533 units). Hero registered robust growth on the back of low gear. While M&HCVs were in negative terrain, posting a
solid performances by both – scooters and motorcycles. While 6.5% dip in domestic sales, LCVs managed to stay in positive
the domestic sales of motorcycles at 537,187 units (June 2016: territory with domestic sales numbers posting a modest 6.9%
477,540 units) increased by 12.5%, those of scooters posted a uptick.
24.7% growth to 75,482 units in June 2017. The market leader, Tata Motors registered a flat growth in
Honda Motorcycle & Scooter India (HMSI) witnessed domestic CV sales that numbered 23,706 units in June 2017,
domestic sales of 416,365 units in June 2017, growing by a as against 23,700 units a year ago.
paltry 2.1% (June 2016: 407,979 units). The company’s Ashok Leyland was on course, clocking domestic sales tally of
domestic scooter sales volume at 271,007 units grew by 2.1% 10,980 units in June 2017, which marked a 5.0% growth over
from 265,361 units in June 2016. The domestic sales of 10,455 units in June 2016.
motorcycles at 145,358 units inched up by 1.9% y-o-y. Honda VECVs registered domestic sales of 3,382 units of Eicher
2-wheeler exports jumped by 46.4% to 28,163 units in June branded CVs in June 2017 - lower by 20.5% y-o-y.
2017 from 19,243 units in the same month a year ago. Domestic sales of Mahindra commercial vehicles rose by
Y S Guleria, Sr VP - Sales & Mktg, HMSI, said, “In June 2017, 11.8% to 15,132 units in June 2017 from 13,540 units a year
customers preferred to buy Honda 2Wheelers even though earlier.
many in the industry offered pre-GST discounts. Starting July With monsoons living up to the forecast and the dust
1, Honda is passing on the GST benefit applicable in most of generated by GST settling down gradually, the vehicle sales
the States to our valued customers who now get significant are expected to pick up in the coming months
savings going up to Rs. 5,500 depending on the model and
the state of purchase.”

9 July 2017


Multiple Factors Lead Commercial Vehicle Sales to Fall in Q1 FY 2018: ICRA

Pent-up demand post GST to support recovery

The domestic Commercial Vehicle (CV) industry ended the Q1 In contrast to the prior year, the bus segment has witnessed
FY 2018 with a contraction of 9% in unit sales, primarily led lower growth (i.e. 5.7% in FY 2017). This is primarily on account
by sharp decline in sales of medium & heavy commercial of lower deliveries to state road transport units (SRTU)s (during
vehicles. This was triggered by combination of factors including H1 FY 2017) on account of delays by states in submitting
pre-buying (in Q4 FY 2017 ahead of the BS-IV roll-out), progress report to the Central Government for release of
deferment by fleet operators before GST roll-out and supply funds. The segment also benefitted from stable demand from
disruptions because of limited availability of components for travel operators that cater to corporate travelers as well as
BS-IV vehicles. As a result , the M&HCV (Truck and Bus) sales from online aggregators.
collapsed by 33% and 23%, respectively during the quarter. Despite contraction in sales during Q1 FY 2018, the domestic
However, on a comparative basis, the light commercial vehicles bus segment would still register a growth of 5-7% in FY 2018
(LCV) segment has witnessed healthy growth (up 13%) aided in unit terms aided by pick-up in demand from SRTU segment
by strong replacement-led demand, gradual uptick from (backed by GOI’s focus on improving urban as well as rural
consumption sectors and fresh orders from logistics players transportation and focus towards smart cities initiatives). Over
catering to the e-commerce segment. Apart from this the CV the past few years, the segment has also benefitted from
financing environment has also improved. healthy demand from online aggregators and staff carriers
According to Subrata Ray, Sr Group VP, ICRA,” Despite weak segment besides Schools & College which remain a stable
performance in the first quarter, the industry will find its source of bus market in India. ICRA research indicates that
momentum back, a) aided by increased thrust on fleet replacement cycle is gradually reducing with rising
infrastructure and rural sectors in the recent budget, b) customer expectations for comfortable journey. This is likely
potential implementation of fleet modernization or scrappage to reduce average fleet age and spur replacement-led demand.
program, and c) higher demand from consumption-driven “With lower sales in Q1 FY 2018 (on account of partial pre-
sectors. Given these considerations, domestic CV industry is buying in Q4 FY 2017 and implementation of GST), competitive
likely to register a growth of 6-8% in FY 2018.” pressures (as reflected by high discount levels) and recovery
Within the CV industry, the M&HCV (Truck) segment will get in input material prices, margins of CV OEMs may remain
support from pent-up demand post GST, higher budgetary under pressure in FY 2018. Furthermore, OEMs may not be
allocation towards infrastructure and rural sectors, potential able to completely pass on the cost related to BS-IV technology
implementation of vehicle scrappage program and stricter upgradation owing to relatively subdued demand. Over the
implementation of regulatory norms, especially related to medium-term, the key sensitivity to profitability indicators of
vehicle length (for certain applications) and overloading CV OEMs would continue to be a) increasing competitive
norms. In addition, the National Green Tribunal (NGT’s) thrust pressures (as foreign OEMs scale-up volumes on back of new
on phasing out old diesel vehicles along with Government’s model launches and expanding sales network) and b) higher
proposed vehicle modernization program would trigger investments in developing new models and technologies (to
replacement-led demand. Apart from favourable regulatory meet next level of emission norms),” says Ray.
developments, resumption of mining activities in select states Despite marginal contraction in margins, credit profile of CV
would also support demand for tippers, a segment which has OEMs will be stable in the near to medium term on back of
outperformed the industry during the current fiscal. relatively limited capital expenditure requirements. As
Post demonetization, the LCV segment is on a structural industry’s capacity utilization levels remain around 50-55%,
uptrend and has witnessed swift recovery with improvement most OEMs are unlikely to invest in Greenfield units over the
in liquidity situation. In the near-term, replacement-led next 2-3 years. This implies that overall investments will be
demand (following almost three years of declining sales) and limited to a) new product development, b) addressing portfolio
expectation of stronger demand from consumption-driven gaps and c) technology upgradation related to next level of
sectors and E-commerce focused logistic companies would emission norms. With an eye of growing international
remain key growth drivers for the segment. Over the medium- business, some of the OEMs are also contemplating setting-
term, the segment would also benefit from roll-out of GST up assembly units overseas. ICRA estimates the CV OEMs will
and its impact on logistics sector and preference for hub-n- spend approximately Rs. 31-33 billion p.a. (on aggregate basis)
spoke model. Accordingly, ICRA expects the LCV (Truck) over the medium-term in the aforementioned areas
segment to register a growth of 7-8% in FY 2018.

11 July 2017

Surveys & Studies

Automotive Dealers Optimistic, Reveals Sewells MSXI Survey

The automobile industry continued to hog the limelight in This latest edition of the ADCI captures the sentiment of the
media despite many other important political, sporting and automotive dealer fraternity during Jan - Mar quarter of 2017.
business events happening in the country. The findings of this survey are compared with the findings of
However the industry news remained dominated by the the previous three editions to map the trend.
headlines on the automobiles’ impact on pollution. Be it the
temporary ban on registration of diesel vehicles above 2000cc The high level findings of the survey at the end of Jan – Mar
in Delhi and NCR, ban on diesel vehicles over 10-year old or 2017 quarter are:
the ban on the sales of BSIII vehicles. • The overall ADCI during Jan - Mar 2017 indicates that the
However, in the midst of all this the industry showed a stellar
sales performance led by domestic sales. Passenger vehicles dealers are slightly optimistic with the present business
segment performed consistently well over the past few months conditions in the country.
occasionally supported by Two-Wheelers. Hopefully, this led • The overall ADCI stood at +25 indicating a slightly
to an increase in the dealers’ business confidence. optimistic sentiment amongst the dealers. It has gained
In the automotive industry, dealers enjoy a unique position. +2 points since the last survey.
On one hand they are close to the customers, on the other, • Passenger Car ADCI stood at +24, representing a slight
they are also in constant touch with factory staff, other dealers, optimism in the dealers. It has declined by -6 points since
financiers and market intermediaries. Consequently, a dealer the last survey.
has exposure to a plethora of information that, in turn, shapes • Two-Wheeler ADCI stood at +28, representing a slight
his/her views about the future of his business in short and optimism in the dealers. It has gained +9 points since the
medium terms. last survey.
The Sewells MSXI Automotive Dealer Confidence Index (ADCI) • Commercial Vehicle ADCI stood at +25, also indicating
captures and quantifies this sentiment on a quarterly basis moderately optimistic sentiment. It has gained +13 points
across Cars, CV and 2W segments. The movement of this since the last survey.
collective sentiment in the form of an index indicates the
direction of the wholesale and the retail sales in the industry. ANALYSIS OF SURVEY FINDINGS
The index derived in this report can be viewed as a precursor 1. Current Economic Environment
to the business performance of automotive retail in India.
The ADCI is designed to vary between -100 and +100, where • Overall, 69% of the dealers felt that the current
an index score of -100 represents the most pessimistic outlook, economic environment in the country is positive. This
and +100 indicates the most optimistic outlook. The index is is a major jump in confidence compared to last
based on how dealerships see the overall market and their survey’s findings, wherein 92% of the respondents
businesses performing in next six months. reported a negative sentiment.

• More than 62% of all Passenger Car dealers felt that
the economic environment is positive in the country.

July 2017 12

• Interestingly, more than 73% of all Commercial 4. DealershipPerformanceviz-a-vizSamePeriodLast Year
Vehicle dealers felt that the economic environment
is positive in the country. SALES • INVENTORY • PROFITS
• 60% of the dealers felt that they had higher sales in
• Two-Wheeler dealers were the most upbeat in this
sentiment with 87% of them stating ‘Positive’ the Jan - Mar 2017 quarter. This is around six-fold
economic environment in the country. increase in dealers stating higher sales, compared to
last survey.
2. Impact of Current Economic Environment on the • A whopping 89% of Two-Wheeler dealers felt that
Local Market their dealership sales were higher in Jan - Mar 2017
• 56% of the dealers felt that the impact of the economic • Passenger Car and Commercial Vehicle dealers also
environment on their local market was positive. This showed confidence in sales with 55% and 57% of
is again a major shift from the last survey’s findings, dealers reporting higher sales.
where 95% dealers expressed negative impact of SALES • INVENTORY • PROFITS
economic environment on their local market. • 44% of the dealers stated that they were carrying
more inventory compared to same period last year.
• Two-Wheeler dealers felt most confident with 71% This is a significant decline in this percentage since
respondent stating positive impact on the local market. the last quarter wherein 69% of the dealers reported
having high inventory.
• Passenger Car and CV dealers also felt positive impact • Commercial Vehicle dealers seem to be carrying
of current economic environment on their local a higher inventory with 37% of stating that they
market. However their percentage is lower, compared to have much higher inventory than the same period
Two-Wheeler dealers, at 48% and 64%, respectively. last year.
• Two-Wheeler dealers also stated carrying higher
3. Impact of Current Economic Environment on inventory with 29% of dealers reporting they are
Dealership Business carrying much higher inventory.
• Passenger Car dealers also felt carrying high
• After a continuous decline in confidence on inventory. However, only 13% of the dealers felt
dealership business for the past three quarters, this carrying much higher inventory.
quarter saw an increase in dealer confidence. 56%
of the dealers felt that the current economic
environment is positive for dealership business.

• Commercial Vehicle (64%) and Two-Wheeler (71%)
dealers felt more confident for their dealership
business, as compared to Passenger Car dealers (48%).

13 July 2017

Surveys & Studies

SALES • INVENTORY • PROFITS 6. Expected Economic Environment Next Six Months
• 49% of dealers felt that the profit level of their Compared to the Present

dealership has been higher in this quarter as • Overall, 85% of the dealers felt that the economic
compared to the same quarter last year where only scenario in the country is going to improve in the
17% of the dealers felt higher profits. next six months. This trend may be attributed to the
• None of the Commercial Vehicle dealer felt that the proposed GST implementation in the coming months.
profits were much higher in this quarter.
• More than 50% of Passenger Car dealers stated • Across all the categories, strong sentiments were
having higher profits in this quarter. expressed for a positive economic environment in the
country in the next six months. More than 80%
5. Dealership Performance viz-a-viz Last Quarter dealers across Passenger Car, Two-Wheelers and
Commercial Vehicle felt that the economic
SALES • INVENTORY • PROFITS environment will be positive in the country.
• 52% of the dealers felt that their sales in the Jan -
7. Expected Market Performance Over Next Six Months
Mar 2017 quarter were higher than the sales in Oct -
Dec 2016 quarter. This is only a marginal increase, as • In line with the expectations of a better economic
compared to last survey’s result. environment over next six months, 83% of the dealers
• Passenger Car dealers felt they had higher sales in felt that the market performance will be good in the
the Jan - Mar 2017 quarter. Out of 57% such dealers, next six months. Of these, 18% felt that it will be
5% reported much higher sales. ‘Quite Good’.
• None of the Commercial Vehicle or Two-Wheeler
dealers stated ‘Much Higher’ sales, though 43% and • However, the proportion of those expecting a poor
46% dealers stated a little higher sales. performance has not changed significantly in this
• 72% of the dealers felt that their inventory levels went
up as compared to 82% who felt the same in the last • Passenger Car dealers are the most optimistic of the
quarter. The reduction in dealers expressing higher lot. 23% of the dealers felt that the market
inventory may be attributed to the sales on account performance will be ‘Quite Good’ over next six months.
of greater availability of currency after lifting of curbs
on bank withdrawals. 8. Expected Dealership Performance Over Next Six
• A much higher proportion (94%) of CV dealers stated Months - OVERALL
higher inventory, compared to Passenger Car and
Two-Wheeler dealers. • For the last two quarters, dealers have expressed
• 84% of Two-Wheeler dealers also stated carrying positive sentiments for an improved dealership
higher inventory. This can be attributed to the high performance over next six months, which also
inventory pile-up due to BS III ban in the country. coincides with the expected market performance
SALES • INVENTORY • PROFITS captured in this report.
• 54% of the dealers stated that their profit was higher
than the previous quarter. This is a significant • 31% of the Passenger Car dealers felt that the
increase, as compared to last survey where only 29% performance of their dealership will be ‘Quite Good’,
dealers stated having higher profits. compared to 25% of overall respondents.
• More than 50% of the Passenger Car and Two-
Wheeler dealers felt that their profit was higher than • Commercial Vehicle and Two-Wheeler dealers were
that in the last quarter. not as upbeat as Passenger Car dealers. Only 10%
• Interestingly, 10% of the CV dealers felt that they had and 13% of these dealers felt that their dealership
much higher profits compared to Passenger Car and performancewillbe ‘QuiteGood’ overthe next6 months.
Two-Wheeler dealers at 5% and 3%, respectively
9. Expected Dealership Performance Over Next Six

• Overall, 65% of the dealers felt that their sales will

be higher than the present level in the next six
months. 10% out of these felt that the sales will be
‘Much Higher’ compared to the present level. This
optimism has sustained over the last three quarters.

July 2017 14

Surveys & Studies

• The proportion of those who expect ‘Much Higher’ the present. It is supported by the sentiment of 65%
sales was the greatest in the case of CV dealers (14%) dealers, who felt that their sales level will improve in
followed by Two-Wheeler dealers (10%). the next six months.
• Commercial Vehicle dealers stated a stronger
• Two-Wheeler dealers were the most upbeat amongst manpower requirement over the next 6 months with
the three segments. 72% of the dealers felt that their 20% stating that the manpower strength required will
sales will be higher in next six months. be ‘Much Higher’.
• Passenger Car and Two-Wheeler dealers also stated
SALES • SUPPLY • PROFITS more requirement of manpower in the next six months.
• The apprehension about the inventory levels • Two-Wheeler dealers stated the lowest growth in the
requirement of manpower.
continued and 77% of the dealers expected higher
supplies in next 6 months. 11. Dealers Response on Proportion of BS III Vehicles
• 94% of the Two-Wheeler dealers expected higher in inventory on 31st March 2017
supplies over next six months.
• This proportion is higher compared to Passenger Cars • None of the dealers were carrying 100% BS III vehicles.
and Commercial Vehicle dealers. • 66% of the dealers reported carrying ‘Less than 25%’
• The expectation of higher profit has taken a slight inventory as BS III vehicles
dip, as compared to the previous quarter. The
number of dealers who felt that the dealership profits
will be ‘Much Higher’ in the next six months have
dropped by more than half compared to last survey.
• Passenger Car dealers expressed the most confidence
on this parameter. 74% of the dealers expect higher
profits over next six months.
• More than 50% of both Two-Wheeler and
Commercial Vehicle dealers felt they will have higher
profits over next six months.

10. Expected Manpower Strength Over Next Six Months

• Only 40% of dealers plan to strengthen their
manpower in the next six months, as compared to


DSK Benelli Motowheels Pvt Ltd - Benelli Motorcycles; Eicher Motors Ltd - Royal Enfield Motorcycles; Honda Motorcycle
& Scooter India Pvt Ltd - Honda Motorcycle & Scooters; Mahindra First Choice Wheels Ltd - Pre-Owned Cars; Nissan
Motor India Pvt Ltd - Nissan Cars and Datsun Cars; Skoda Auto India Pvt Ltd - Skoda Cars; Canon India Pvt Ltd - Canon

Products; Gabriel India Ltd; NXT Automart (India) Ltd - Drivol, Duracell, FIAMM, Bluechem; PETRONAS Lubricants (India)
Pvt Ltd; R&R Textile - Ramraj, Ramyyam; TIDC India Ltd; and Whirlpool of India Ltd - Home Appliances.

Branches: Alappuzha, Aluva, Attingal, Chavakkad, Cochin, Irinjalakuda, Kalamassery, Kollam, Kozhikode, Kulasekharam,
Marthandam, Nagercoil, Nedumangad, Pathanamthitta, Thrissur, Trivandrum and Varkala.

Phone: 0471 - 2477420, 2471814, 2465882 | Hotlines: 9961 88 9000 | Fax: 0471 2462630 | E-mail: [email protected]

15 July 2017

Decoding GST

Tweet FAQs on GST

Some of the tweets received by the Government at its GST Twitter handle @askGST_GoI were scrutinized and developed
into short FAQs, which are reproduced hereinbelow for the information of FADA members. It should be noted that the
tweets received or the replies quoted are only for educational and guidance purposes and do not hold any legal validity.

REGISTRATION Whether aggregate turnover includes turnover of
supplies on which tax is payable by the recipient under
Does aggregate turnover include value of inward reverse charge?
supplies received on which RCM is payable?
Outward supplies on which tax is paid on reverse charge
Refer Section 2(6) of CGST Act. Aggregate turnover does basis by the recipient will be included in the aggregate
not include value of inward supplies on which tax is turnover of the supplier.
payable on reverse charge basis.
If there are two SEZ units within same state, whether
What if the dealer migrated with wrong PAN as the two registrations are required to be obtained?
status of firm was changed from proprietorship to
partnership? SEZs under same PAN in a state require one registration.
Please see proviso to rule 8(1) of CGST Rules.
New registration would be required as partnership firm
would have new PAN. Is an advocate providing interstate supply chargeable
under Reverse Charge liable for registration?
A taxable person’s business is in many states. All
supplies are below Rs. 10 Lakhs. He makes an Inter Exemption from registration has been provided to such
State supply from one state. Is he liable for registration? suppliers who are making only those supplies on which
recipient is liable to discharge GST under RCM.
He is liable to register if the aggregate turnover (all
India) is more than Rs. 20 Lakh or if he is engaged in When is registration in other state required? Will
inter-State supplies. giving service from Nasik to other state require
registration in other state?
Can we use provisional GSTIN or do we get new GSTIN?
Can we start using provisional GSTIN till new one is If services are being provided from Nasik then
issued? registration is required to be taken only in Maharashtra
and IGST to be paid on inter-state supplies.
Provisional GSTIN (PID) should be converted into final
GSTIN within 90 days. Yes, provisional GSTIN can be I have migrated under GST but want to register as ISD.
used till final GSTIN is issued. PID & final GSTIN would Whether I can apply now & what is the procedure?
be same.
A separate & new registration is required for ISD. New
Whether trader of country liquor is required to registrations are being opened from 0800 hrs on
migrate to GST from VAT as liquor is out of GST law? 25.06.2017.

If the person is involved in 100% supply of goods which I have enrolled in GST but I forgot to enter SAC codes.
are not liable for GST, then no registration is required. What should I do? The status is migrated.

Not liable to tax as mentioned u/s 23 of CGST means The same can be filled while filing FORM REG-26 for
nil rated supply or abated value of supply? converting provisional ID to final registration.

Not liable to tax means supplies which is not leviable I have ST number on individual name and have
to tax under the CGST/SGST/IGST Act. Please refer to migrated to GST. I wish to transfer this on my
definition under Section 2(78) of the CGST Act. proprietorship firm.

Whether civil contractor doing projects in various This conversion may be done while filling FORM REG-
states requires separate registration for all states or a 26 for converting provisional ID to final registration.
single registration at state of head office will suffice?
Please tell if rental income up to Rs. 20 Lakh attracts
A supplier of service will have to register at the location GST or attracts any other charge?
from where he is supplying services.
GST is leviable only if aggregate turnover is more than

July 2017 16

Decoding GST

Rs. 20 Lakh. (Rs. 10 Lakh in 11 special category States). What If I am not liable to register under GST but I was
For computing aggregate supplies turnover of all registered under Service tax?
supplies made by you would be added.
You can apply for cancellation of Provisional ID on or
If someone trades only 0% GST items (grains, pulses) before 31st July 2017.
then is it necessary to register for GST, if the turnover
exceeds Rs. 20 Lakh? When turnover of agents will be added to that of the
principal for registration?
A person dealing with 100% exempted supply is not
liable to register irrespective of turnover. No.

Is it correct that person dealing exclusively in NIL rated If I am not an existing taxpayer and wish to newly
or exempt goods/ services liable to register if turnover register under GST, when can I do so?
> Rs. 20/10 Lakh?
You would be able to apply for new registration at the
There is no liability of registration if the person is dealing GST Portal on 25th June 2017
with 100% exempt supplies.
If I register voluntarily though turnover is less than
Rs. 20 Lakh, am I required to pay tax from 1st supply I I have a pending export refund in Service Tax. What
make post registration? will happen?

Yes, you would be treated as a normal taxable person. Refunds under earlier laws will be given under the
respective laws only.
Whether a separate GSTIN would be allotted to a
registered person for deducting TDS (he has PAN and As an exporter, how do I ensure that my working
TAN as well)? capital is not blocked as refunds?

Separate registration as tax deductor is required. Appropriate provisions have been made in the law by
providing for grant of 90% refund on provisional basis
Is separate registration required for trading and within 7 days from filing of registration.
manufacturing by same entity in one state?
There will be only one registration per State for all activities.
What will be the impact of GST on coal? Will the clean
I am registered in TN and getting the service from energy Cess on coal go or will it stay?
unregistered dealer of AP, should I take registration
in AP to discharge GST under RCM? Clean Environmental Cess on coal will be replaced by
GST Compensation Cess.
Any person who makes inter-state taxable supply is
required to take registration. Therefore in this case, AP COMPOSITION SCHEME
dealer shall take registration and pay tax.
Suppose I am in composition scheme in GST. If I
Is there any concept of area based exemption under GST? purchase goods from unregistered person, then GST
will be paid to Government by me or not?
There will be no area based exemptions in GST.
Yes, you will be liable to pay tax on reverse charge basis
If a company in Maharashtra holds only one event in for supplies from unregistered person.
Delhi, will they have to register in Delhi? Will paying
IGST from Maharashtra suffice? CUSTOMS

Only if you provide any supply from Delhi you need to What duties will be levied on import of goods?
take registration in Delhi. Else, registration at Mumbai
is sufficient (and pay IGST on supplies made from Customs duty and cess as applicable + IGST+ GST
Mumbai to Delhi) compensation cess. IGST and GST compensation cess
shall be paid after adding all customs duty and customs
How long can I wait to register in GST? cess to the value of imports.

An unregistered person has 30 days to complete his EXPORTS
registration formalities from the date of liability to
obtain registration. Present Procedures have Service Tax on Nepal, but no
Goods Tax on Nepal. But, with GST, what tax will apply?

17 July 2017

Decoding GST

The export procedure for Nepal would be same as that In case of service supplied, should the credit be given
to other Countries. to the state where it is billed or the state it is rendered?

Are there exemptions for SEZ? How will a SEZ Tax will be collected in the State from which the supply
transaction happen in GST regime? is made. The supplier will collect IGST and the recipient
will take IGST credit.
Supplies to SEZs are zero-rated supplies as defined in
Section 16 of IGST Act. Company is engaged in manufacturing of cement &
power. Which rule to be referred for reversal of credit
How would the sale and purchase of goods to and related to power business?
from SEZ will be treated? Will it be export / input?
Detailed rules for reversal of ITC when the supplier is
Supply to SEZs is zero rated supplies and supplies by providing exempted and non-exempted supplies have
SEZs are treated as imports. been provided in ITC Rules.

Please clarify status of international export freight How will the credit / debit note from unregistered
under GST as the same was exempt under POPS rules. supplier be reported to GSTN and ITC claimed in the
It is zero rated in most countries. same?

POS for transport of goods is determinable in terms of Like invoice, credit/debit notes on behalf of
sec 12(8) or sect 13(8) of IGST Act, 2017, depending unregistered person will be given by registered person
upon location of service provider/service receiver. only. Further, GSTR2 provides for reporting of same by
Exports are treated as zero rated supplies. the recipient.

When goods are being imported from SEZ who will INVOICE
pay IGST?
A shop sells taxable & exempt products to the same
Such supply is treated as import and present procedure person (B2C), is it required to issue tax invoice and
of payment of duty continues with the variation that bill of supply separately?
IGST is levied in place of CVD.
In such a case the person can issue one tax invoice for
Who will pay IGST when goods are procured from SEZ? the taxable invoice and also declare exempted supply
in the same invoice.
Today importer is paying both BCD and CVD. Such
supply is treated as import and present procedure of Do registered dealers have to record Aadhaar/PAN
payment continues with the variation that IGST is levied while selling goods to unregistered dealers?
in place of CVD.
There is no requirement to take Aadhaar/PAN.
All expenses like freight / transport / packing which
Can SGST of Rajasthan charged by supplier on are charged in Sales Invoice are taxable in GST? How
purchase from Rajasthan be utilised for payment of to charge in bill?
SGST in Madhya Pradesh?
All expenses will have to be included in the value and
SGST of one State cannot be utilized for discharging of invoice needs to be issued accordingly. Please refer to
output tax liability of another State. Section 15 of CGST Act and Invoice Rules.

How one can use SGST credit for the payment of IGST Can we move construction material to builders on
on another state? delivery challan and issue tax invoice post completion
of activity?
SGST Credit can be used for payment of IGST liability
under the same GSTIN only. If the goods are meant to be supplied in the course of
construction, an invoice is necessary. If the goods are
Can one State CGST be used to pay another state tools which are to be used for construction, then
CGST? delivery challan should be issued.

The CGST and SGST Credit for a State can be utilized for How to treat following transaction in GST (i) Delivered
payment of their respective CGST/SGST liabilities within supply shortages in Transit; (ii) Customer gets less
that State for the same GSTIN only. quantity and pays less?

July 2017 18

Decoding GST Salary will not be liable for GST.

The supplier may issue credit note to the customers Sec 9(4) of CGST Act 2017. Do I need to pay under
and adjust his liability. RCM if I purchase stationary worth Rs. 100 from an
unregistered stationery shop?
Should we issue Self Invoice for GST liability discharge
on RCM or GST can be discharged through expenses It has been decided that Rs. 5,000/- per day exemption
booking voucher? will be given in respect of supplies received from
unregistered person.
For RCM liabilities, tax invoice has to be issued on self.
What is the treatment of promotional item given free
RETURNS to end consumers by FMCG companies? If taxable,
whether ITC is allowed?
What would be done on tax paid on advance receipt,
if advance has to be refunded in any circumstance? Tax is payable on consideration received for the supply.

Advance refunded can be adjusted in return. Whether GST will be leviable in case of returnable
packing material like drums supplied with finished
Do registered dealers have to upload sale details of goods?
unregistered dealers also in GST?
GST will be levied on the value charged for the supply
Generally not. But required in case of inter-State only.
supplies having invoice value of more than Rs. 2.50 Lakh.
How will disposal of scrap be treated in GST?
How to incorporate two supplies in return for Pharma
with same HSN code of four digits but having different If the disposal is in the course or furtherance of business
tax rates? purposes, it will be considered as a supply.

Returns provide for furnishing rate wise details. I am from MP and providing service to a customer in
Maharashtra. I outsource the work to a service
SUPPLY provider in Maharashtra, what tax I need to charge?

Should we discharge GST liability for all reverse charge Generally, these will be two supplies, where the supplier
having small amounts of Transaction or any amount from MP will charge IGST from the recipient in
limit is there? Maharashtra. The service provider in Maharashtra will
charge IGST from the recipient in MP.
It has been decided that Rs. 5,000 per day exemption
will be given in respect of supplies received from If address of buyer is Punjab and place of supply is
unregistered person. For supplies above this amount, same state of supplier (Rajasthan), then IGST will
a monthly consolidated bill can be raised. apply or CGST/SGST?

What is treatment of promotional item given free to If the place of supply and the location of the supplier
end consumers by FMCG companies? are in the same State, then it will be intra-State supply
and CGST / SGST will be applicable.
Tax will be charged only on the total consideration
charged for such supply. Why is bifurcation of cash deposit as CGST-SGST-IGST
required? Is cash held against a GSTIN, to be adjusted
How to comply with 9(4) of CGST Act if POS is in via return u/s 39?
another State of the unregistered supplier?
Three levies are under three different statutes and are
Any person making inter-state supply has to required to be separately accounted for.
compulsorily obtain registration and, therefore, in such
cases, section 9(4) will not come into play. What is the difference between ‘Nil rated’, ‘taxable at
0%’ and exempted goods and services? Especially in
Under supply from unregistered dealer, the purchaser relation with ITC?
have to pay GST on RCM basis so whether stipend paid
to intern will also come under RCM? Exempt supply includes Nil rated (taxable at 0%) and
non-Taxable supplies and no ITC is available for such
Stipend paid to interns will be employer-employee supplies.
transactions. Hence, not liable for GST.
19 July 2017
Salary by partnership firm to Partners as per Income
Tax Act liable to GST?

Decoding GST

Will professional tax be abolished in Maharashtra Yes, deemed credit will be available, subject to
after introduction of GST? satisfaction of other conditions as prescribed.

Professional tax is not a tax on supply of goods or I am a trader. I have excise paid purchase invoice.
services but on being in a profession. Professional tax Whether I can claim credit of full excise duty on closing
is not subsumed in GST. stock of 1st July 2017?

Employer provides bus service, meal coupon, Full transition credit of such duty will be available on
telephone at residence, gives vehicle for official and stock in hand in respect of which you have duty paying
personal use, uniform and shoes, any GST? excise document subject to conditions under Section
140(3) of the CGST Act.
Where the value of such supplies is in the nature of
gifts, no GST will apply till value of such gifts exceeds If a trader purchases directly from manufacturer &
Rs. 50,000 in a financial year. has documents showing excise, will he get full excise
credit or 40% of CGST?
The definition of composite supply and the description
of same u/s 8 differ. Please explain consequences. Full transition credit of such duty will be available on
stock in hand in respect of which you have duty paying
Section 2(30) defines what will be considered as a excise document subject to conditions under Section
composite supply. Whereas, Section 8 provides that in 140(3) of the CGST Act.
case of a composite supply, the treatment for tax rate
etc. will be that of principal supply. If a fsd purchases directly from manufacturer and has
value cum excise duty and excise duty is not separately
Whether slump sale will attract GST. If yes, then under shown will he get full credit?
which Section?
Full transition credit of such duty will be available on
It will have the same treatment as normal supply. stock in hand in respect of which you have duty paying
excise document subject to conditions under Section
Salary by Partnership firm to Partners as per Income 140(3) of the CGST Act.
Tax Act liable to GST?
Is the full excise credit also available to traders who
Partners are not employees of the firm. Salary will not purchases directly from manufacturers and excise is
be leviable of GST. separately shown in invoice?

TRANSITION Full transition credit of such duty will be available on
stock in hand in respect of which you have duty paying
How do I avail transition credit ? excise document subject to conditions under Section
140(3) of the CGST Act.
Transition credit can be availed by filing the respective
forms under Transition rules upto 30.09.2017 In June 2017 Vat return no amount carried forward &
held stock of Rs. 50 Lakh. Then can we take credit of
Please provide the clarity on area based exemption that stock or not?
Notification No. 50/2003 in UK & HP.
The supplier would be eligible to carry forward the
Area based exemptions will not be continued under closing balance of ITC from VAT return for June 2017.
GST. It will be operated through the route of
reimbursement as prescribed. What will be the impact of closing stock, which has
already been paid VAT on 1st July?
We manufactured excisable goods. But unit availed
the exemption benefits in Notification No. 50/2003. The supplier would be eligible to carry forward ITC on
What about my dealers stock? such stock from VAT return for June 2017.

The dealer will get deemed credit @ 40% / 60% of the If in VAT return, refund claimed in June 2017 and there
CGST paid on supply of such goods in GST. If the goods is no balance credit in GST. Then what’s the position
are branded and greater than Rs. 25,000, full credit of submission of Form C.
using CTD can be availed.
Refund claimed under existing law will be handled as
A trader buys from manufacturer is not registered in per the provisions of the existing law. Form C to be
excise as his turnover is below Rs. 1.50 crore. Then in
such case can trader take ITC on stock up to 40%?

July 2017 20

Decoding GST

submitted in terms of provision of Rule 1(1) of Will Clean Energy CESS on imported Coal @ Rs. 400
Transition Rules. PMT continue to be applicable in GST?

Some service was provided on 28.06.2017 but No. Clean Energy Cess is being repealed. Coal,
Invoice will be raised on 05.07.2017. Whether we however, will be subject to compensation cess @ Rs 400
have to charge Service Tax or GST? per tonne.

If Point of Tax arises after appointed date, then GST Whether closing balance of education cess and
will be chargeable on such supply. secondary higher education cess prior to 1st March
2015 be carried forward in GST?
Would we be eligible for credit on Capital Goods in
transit and received post GST? No, it will not be carried forward in GST, as it is not
covered by definition of “eligible duties and taxes”
No provision for such credit is there in GST law. under Section 140 of the CGST Act.

What about VAT balance pending on transition Can you clarify regarding 40% benefit on closing
date? stock, does 1 year limit apply or not?

Balance VAT credit in the return will be transferred Deemed credit will be available for all stock procured
to new provisional ID as SGST Credit. within a 1 year period.

What about deemed export against Form H? Till what time is transition credit available? Where
do I need to declare my input stock?
Form H will not be there in GST.
The window to declare transition credit forms is
Who will bear tax difference on closing stocks as three months from the appointed day. Please refer
on 30th June 2017? Whether the manufacturer/ to transition rules for more details.
dealer or government?
Closing ITC in VAT return will be allowed to be carry
forward in GST. Will there be GST in A&N Islands, as previously
there was no VAT
How will we get input credit on stock in hand for
spare parts billed from other state, excise, CST and Yes. For supplies within A&N, CGST plus UTGST would
entry tax paid? be leviable.

For all inputs with duty paying documents available OTHERS
respective CGST / SGST credit will be available. But
credit of CST will not be available. Whether IGST would be levied twice on high seas
sales? First on high seas sales and second on custom
A trader buys from manufacturer not registered in clearance. IGST paid on 1 available as ITC?
excise as his turnover is below 1.5 crore. Then in
such case, can traders take ITC on stock up to 40%. IGST shall be levied only once on imports.

Deemed Credit will be available on stock in hand Will Krishi Mandi Fee (imposed in UP) be waived
provided the conditions of section 140(3) read with off in GST?
Rule 1(4) of Transition Rules are satisfied.
GST does not concern such fee; so, GST does not
Whether we will be eligible for credit of duty paid affect it.
on Capital Goods in transit and received post GST?
Is E-Way Bill applicable from 1st July 2017
No such provision in GST.
The present system for E-way Bill in States to
Can ITC of Swach Bharat Cess or Krishi Kalyan Cess continue, till the E-Way Bill procedures are finalized.
be carried forward under GST?
Is there a sunset clause for Anti-Profiteering law?
Yes, the sunset clause for Anti-profiteering Authority
is of two years

21 July 2017

Attention: Members

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 tax law and procedures. She will, on reference made by FADA,
guide and give legal opinion on various issues relating to GST/service tax 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 tax 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 office at 804-805, Surya Kiran, 19, K G Marg, New Delhi (E-mail Id: [email protected]).

The service is offerred to FADA Members free of charge.

Get Yourself GST Ready- Another initiative by FADA

There are a number of issues arising out of the GST implementation, which are bothering the automobile dealer fraternity.
To address these issues & concerns, FADA has tied up with GSTStreet to provide education and guidance through digital
learning initiative.
This is customized to automobile industry covering 30+ business scenarios in simple language. Get yourself and your
staff enabled in GST to reap benefit of expert connect and Q&A support in experts led virtual community till 31st December
FADA and GSTstreet are committed to offer best experts providing guidance to all members on registration, transition,
migration, automation, input matching, composition, rate and schedules like many evolving migration issues.
This Course worth Rs. 10,000 plus GST has been negotiated for FADA members at special price of 5,000 plus GST. To
claim this rebate use code “FADA”.
All your queries regarding GST raised by members registered for this Course will be answered till 31st December 2017
and GSTStreet will include all of them in an exclusive community led by well known experts.
For taking advantage of this subsidized tie-up with please log on to and click on ‘Get Yourself
GST Ready’ and get yourself on to journey of GST enablement with the help of national level well known GST experts
You may also connect through your mobile phone by logging on
You should submit your Queries to expert by using common Q&A form made LIVE on the Learning portal (only for
registered members)
GST Street has also offered two additional services – i) Registration Support at a fee of Rs. 1,000 + GST and ii) Form
Tran-1 ( Credit Migration ) review services at a fee of Rs. 5,000 + GST by experts associated with GSTStreet ecosystem
across India. These services can be procured online by clicking at the following links:
For further details you may visit and or get in touch with GSTStreet : Mr
Rishabh K Sawansukha, Twitter - @StreetGST, E-mail - [email protected]

July 2017 22


Fieldwork : January to March 2017
Survey Area : The survey was conducted in more than
Method : 200 cities across India.
The survey was administered to
Respondents : authorized dealers primarily
Profile through CATI (Computer Assisted
Research : Telephonic Interview) methodology.
Partner For some respondents, the survey was
administered via self completion
questionnaire method.
Dealer Principals or General Managers,
who were supported by their respective
Department managers.
The study was conducted in association
with the Federation of Automobile
Dealers Associations (FADA).

New on Wheels

Honda Launches 110cc Scooter - CLIQ

Honda Motorcycle & Scooter India Pvt Ltd (HMSI) unveiled 5.91 Kw of power and a kerb weight of only 102 kgs, it has
CLIQ - a new 110cc offering on June 20. one of the best power to weight ratios, which makes it
Reiterating Honda’s next big step on taking scooterization extremely exciting to ride.
beyond metros, Minoru Kato, President and CEO, HMSI, said, Ahead of its time, CLIQ comes equipped with Combi Brake
“Six out of 10 two wheelers sold in India belong to 100-110cc System (CBS) with Equalizer technology. The unique Equalizer
segment. Within this segment, automatic scooters have in Honda’s advanced CBS distributes braking force
witnessed tremendous growth and now count for almost half proportionately between front & rear wheels simultaneously
of the total size. With the highly increasing demand and varied by pressing just the left lever. This results in reduced braking
customer needs, this segment is poised to sub segmentation. distance & improved balance, leading to more confident riding.
As the leaders of scooter category, Honda has developed CLIQ Better comfort with convenience
which would address the needs of customers with additional CLIQ’s unisex design makes it equally comfortable to be ridden
value of comfort and convenience.” by both male and female riders. Far more convenient than
Yadvinder Singh Guleria, Sr VP - Sales & Mktg, HMSI, said, using clutch and engaging gears, CLIQ’s automatic transmission
“Focused at up-country customers with a progressive mindset, ensures low cost of ownership and a smoother ride. With
CLIQ is a perfect blend of practicality, versatility and value for lower seat height, lighter weight, CLIQ is easy to manoeuvre
money. Breaking the price barrier of automatic transmission through dense traffic as well as narrow lanes.
on two wheels, only Honda, as the market leader in automatic The mobile charging socket ensures that you always remain
scooters with its unparalleled economies of scale & assured connected while tubeless tyres, maintenance-free battery and
trust, could challenge traditional preferences by bringing this viscous air filter adds to the convenience of the rider.
kind of disruption in the 100-110cc segment.” Optional Accessories
‘CLIQ’ Delivers maximum utility with practicality Customers can choose from a variety of optional parts
An industry first in terms of OEM fitment in the 100-110cc 2- including Front Screen, Floor Cover, Box Center, Cap Cover,
wheeler category, CLIQ’s special block pattern tyres with deep Rear Grip, which would enhance both utility and aesthetics
grooves provide extra grip and better control over patchy roads of CLIQ.
under all weather conditions. Colours, Variants and Availability
Wide & spacious foot-board, large under-seat storage space CLIQ is manufactured at Honda’s 2nd factory in Tapukara, Alwar
and rear carrier (optional) enhance the comfort and utility of District of Rajasthan. Starting with Rajasthan, it will be made
increased load carrying capacity. available for sale across India in a phased manner. The new
Honda Reliability & Trust CLIQ comes in four colours: Patriotic Red with White, Black,
CLIQ is powered by the trusted 110cc Honda BS-IV HET (Honda Moroccan Blue with White, and Orcus Grey. It is available for
Eco Technology) engine, which delivers superb mileage with sale in Standard & Graphic variants and attractively priced
no compromise in performance. With the engine delivering starting at Rs. 42,499, Ex-Showroom, Delhi.

July 2017 28

New on Wheels

New BMW 5 Series Launched in India

The 7th generation of the premium sedan - BMW 5 Series - at 1,450-4,800 rpm. The car accelerates from 0-100 km/hr in
was launched in India on June 29, by the legendary sportsman just 6.2 seconds. The 2-litre 4-cylinder diesel engine of the
Sachin Tendulkar in the presence of Vikram Pawah, President, BMW 520d produces an output of 140 kW/190 hp and
BMW Group India. produces a maximum torque of 400 Nm at 1,750-2,500 rpm.
The car accelerates from 0 -100 km/hr in just 7.5 seconds.
Speaking on the occassion, Vikram Pawah said, “The BMW 5 The eight-speed Steptronic Sport automatic transmission
Series is the most successful business sedan on the planet. performs smooth, almost imperceptible gear shifts.
With the new generation of the car, we are once again setting The new BMW 5 Series offers more headroom in the rear as
the benchmark in all areas; it combines dynamic excellence well as an increased boot capacity of 400 litres.
and comfort to the best possible effect. Plus, the new 5 Series The new BMW 5 Series is equipped with BMW ConnectedDrive
Sedan is at the leading edge of technology when it comes to systems like BMW iDrive with BMW Navigation Professional
driver assistance and connectivity.” (with touchscreen), Park Distance Control & Parking Assistant
with Surround View Camera, BMW Apps, Connectivity through
The new BMW 5 Series is available in: three exclusive design Bluetooth and USB/AUX-IN connectivity. The rear-seat
schemes – Sport Line, Luxury Line and M Sport; three diesel entertainment experience equipment provides two 10-inch
variants – BMW 520d Sport Line, BMW 520d Luxury Line and colour displays on the rear side of the front seat backrests.
BMW 530d M Sport; and one petrol variant - BMW 530i Sport Overwhelming driving comfort of the new car is a result of
Line, which are locally produced. the Dynamic Damper Control that improves ride quality and
suspension by stabilizing all irregularities of the road surface.
The Ex-Showroom prices are as follows: Using the Driving Experience Control switch, the driver is able
to choose between different driving modes to suit the driving
BMW 530i Sport Line: INR 4,990,000 conditions (Comfort, Sport, Sport+,ECO PRO and Adaptive).
BMW’s exemplary safety provides optimal support with six
BMW 520d Sport Line: INR 4,990,000 airbags, Anti-Lock Braking System (ABS) with brake assist,
Dynamic Stability Control (DSC) including Dynamic Traction
BMW 520d Luxury Line: INR 5,360,000 Control (DTC), Cornering Brake Control (CBC), Hill Descent
Control (HDC), Side-impact Protection, Runflat tyres (RFT) with
BMW 530d M Sport: INR 6,130,000. reinforced sidewalls, electronic vehicle immobiliser, crash
sensor and integrated emergency spare wheel.
The new BMW 5 Series continues to break the innovation BMW Service Inclusive and BMW Service Inclusive Plus are
barrier with game changing technologies such as BMW optionally available. These service packages cover all routine
Gesture Control, Remote Control Parking with BMW Display service and maintenance work with a choice of plans from 3
Key, Wireless Charging, Parking Assistant with Surround View years / 40,000 kms to 10 years / 2,00,000 kms
and the next generation BMW Head up Display.

The 3-litre 6-cylinder diesel engine of the BMW 530d produces
an output of 195 kW / 265 hp and a maximum torque of 620
Nm at 2,000-2,500 rpm. The car accelerates from 0 -100 km/
hr in just 5.7 seconds to a top speed of 250 km/hr. The 2-litre
4-cylinder petrol engine of BMW 530i produces an output of
185 kW/252 hp and produces a maximum torque of 350 Nm

29 July 2017

Upgrades & Variants

ŠKODA Auto Rolls Out New Octavia

ŠKODA AUTO India rolled out the new OCTAVIA at an attractive Engines and Transmission
price of INR 15.49 Lakh (Ex-Showroom, all India) on July 13. As a pure petrol engine, the 1.4 TSI achieves a power output
Commenting on the launch of the new Octavia, Ashutosh Dixit of 110 kW (150 PS), a maximum torque of 250 Nm (at 1,500
– Director - Sales, Service & Mktg, ŠKODA AUTO India, said, to 3,500 rpm) and accelerates to 100 km/h in 8.1 seconds,
“OCTAVIA changed the dynamics of the executive sedan reaches a top speed of 219 km/h with a fuel-efficiency of 16.7
segment, when it was introduced in India. While retaining its kmpl when combined with the 6-speed, manual transmission.
strong characteristics of space, all-round comfort, safety and The powerful 1.8 TSI sits at the top of the petrol engine range
technology, the New OCTAVIA will be a compelling proposition, with a power output of 132 kW (180 PS) and a maximum
a game changer in its segment and will continue to drive torque of 250 Nm (between 1,250 and 5,000 rpm). From a
ŠKODA’s success in India.” standing start, it accelerates to 100 km/h in 7.3 seconds and
New OCTAVIA will be available in four colour options - Quartz reaches a top speed of 231 km/h. When combined with the
Grey, Brilliant Silver, Candy White and Magic Black. 7-speed automatic transmission, the 4-cylinder is extremely
Precision design down to the last detail economical, consuming 15.1 kmpl.
The new OCTAVIA gets strong chiseled hood, massive elegant The turbocharged 2.0 TDI is available with four cylinders and
front butterfly grille with a distinctive all LED lighting unit. four-valve technology in two versions with different
The newly developed full Quadra LED headlights come with transmissions. ŠKODA OCTAVIA 2.0 TDI with 105 kW (143 PS)
CrystalGlo LED Daytime Running Lights. comes with a 6-speed manual transmission as standard. In
Adding to the elegant exterior are the newly introduced rear addition, a 6-speed DSG transmission is also available.
LED lights. The redesigned rear bumper, with its subtle Safety, Comfort and Convenience
contours, create an impression of the light clusters being The new OCTAVIA sets a new benchmark for safety and
embedded. A break separating the lines in the upper corner comfort in the segment. Hands free Parking feature makes
makes the design even more striking. parking in tight spots much easier during both parallel and
Infotainment: the technology of the future perpendicular parking. AFS (Adaptive Front light System) is
New OCTAVIA offers a host of technically advanced and automatically activated by the light sensors, which switch the
intelligent connectivity features. Equipped with 8-inch colour headlights on in low light conditions.
touchscreen display and eight speakers, the new OCTAVIA Dual airbags in the front and sides comes as standard in the
offers BossConnect through ŠKODA Media Command App OCTAVIA reiterating ŠKODA’s strong emphasis on safety. The
integrated into the Amundsen navigation system, which helps Style plus trim gets an additional set of side and curtain airbags
occupants control functions like Radio, Playing Music from SD in front and rear too. Thus, a total of 8 airbags ensure complete
card or USB, Volume control, and Navigation from the rear safety of the occupants. Additional safety features include
seat. In addition, SD Card Reader, USB, AUX-IN, Apple Devices Safety Seat Belt Signal (audio) driver and passenger and iBuzz
Connectivity come standard across all variants. Fatigue Alert. Child seats can be secured using Isofix and top
tether anchor points.

July 2017 30

Upgrades & Variants

Mahindra Launches Jeeto Minivan to Redefine Last Mile Transportation

Mahindra & Mahindra Ltd announced on July 13, the launch Key Features of the Jeeto Minivan
of the Jeeto Minivan, its stylish and comfortable passenger
carrier developed on the successful Jeeto platform. The Jeeto Stylish & Distinctive Looks
Minivan is best suited for urban and semi-urban modes of Jeeto sports a distinctive and contemporary exterior with
transportation and will cater to last mile connectivity, contract an impressive front grille that lends it a distinguished look.
and stage carriage use for tour/travel purposes and intra-city Also, bringing in a touch of exclusivity are the dual tone
people movement. Competitively priced, Jeeto Minivan starts interiors and a contemporary dashboard and instrument
at Rs. 3.45 Lakh (Ex-Showroom, Mumbai for BSIV diesel cluster. Jeeto Minivan will be available in three attractive
variant) and will be available in two body forms, namely hard colours, namely Sunrise Red, Ultramarine Blue and
top and semi hard top and 3 fuel variants, including diesel, Diamond White
petrol and CNG. Car like Comfort & Convenience
Speaking at the launch of the Jeeto Minivan, Rajan Wadhera, Jeeto has many car like features, including well-cushioned
President, Automotive Sector, M&M said, "The popular Jeeto seating and large cabin space with better headroom and
brand has already set new benchmarks in innovation, legroom for greater comfort to make the journey more
performance, safety and comfort and the launch of the Jeeto pleasant. The better ergonomics and car like smooth gear-
Minivan will further extend this platform for last mile shift quality further enhance the Jeeto's fatigue free driving
passenger transportation. At Mahindra, we have identified pleasure. The easy ingress and outgress for passengers and
specific need gaps amongst customers and I am sure that the the lockable Glove Box add to the convenience.
Jeeto Minivan will provide a more efficient, safe & comfortable Performance
mode of transportation. In fact, this new product presents an Jeeto Minivan is technically designed to meet the exacting
ideal option for 3-wheeler customers to upgrade their vehicles. requirements of customers. It is powered by m_Dura, the
Jeeto Minivan is powered by m_Dura, a Direct Injection (DI) BSIV compliant Direct Injection (DI) engine that delivers a
and BSIV emission compliant engine from the Mahindra stable. power of 11.9 kW (16 HP) and a torque of 38 Nm. It also
Designed for superior performance with a power of 11.9 kW boasts of best-in-class pick-up. Besides its superior
(16 HP) and torque of 38 Nm, Jeeto Minivan delivers fuel- performance, it is extremely fuel-efficient and gives a
efficiency of 26 km/l. Further, the Jeeto Minivan, with its lower mileage of 26 km/l.
maintenance cost, fatigue free car-like drive-ability, spacious Safety & Strength
cabin and wel-cushioned seating for best-in-class comfort and Jeeto Minivan provides the highest level of safety in its
distinctive exterior styling, offers a superior value proposition category. The cabin has been designed to provide better
over its competitors. safety to the driver and co-driver in the event of a crash.
In its endeavour to upgrade 3-wheeler customers to the Jeeto In addition, (ELR) seat belt systems, head restraints and
Minivan, the company has introduced attractive exchange and bucket seats provide safety against sudden impact.
finance schemes with significantly low down payment options
and a longer tenure for affordable EMIs.

July 2017 31

Upgrades & Variants

Honda Cars Introduces ‘Privilege Edition’ of Honda Amaze

Honda Cars India Ltd (HCIL) announced on July 18, the support for Smartphone Connectivity; Internet access for
introduction of 2017 ‘Privilege Edition’ of its sedan Honda Browsing, Email and Live Traffic via optional Wifi Receiver;
Amaze. The Privilege Edition comes enriched with advanced Voice Commands for Media, Navigation and Calling;
infotainment system, enhanced exterior and safety features. Smartphone Voice Assistant Activation; Bluetooth for
Speaking about the Privilege Edition of Amaze, Jnaneswar Sen, Handsfree Telephone and Audio Streaming Support; AM/
Sr VP, Mktg & Sales, HCIL said, “Our endeavour has always FM Digital Radio Tuner, MP3/WAV, i-Pod/i-phone
been to offer best-in-class features to our customers and we compatible; andUSB slots (2 Nos.), Micro SD Card Slots
are happy to offer the Privilege Edition of the Honda Amaze for Maps and Media (2 Nos.) & HDMI-IN port.
with Digipad for advanced infotainment. The new edition with • Privilege Edition Themed Beige colour Seat Covers -
its enhanced value is a compelling offer for our Amaze Privilege edition’ embossed premium new seat covers
customers and is available as limited edition.” offer a very comfortable seating.
The limited edition is based on Amaze S (O) MT grade, which • Centre Arm Rest for the driver - The newly offered Centre
has features like Dual Airbags, ABS (in Diesel Variant) , Power Arm Rest for the driver enhances the ease and comfort
Adjustable ORVMs, Steering Mounted Controls, Driver Seat during every journey in the Amaze.
Height Adjuster, Digital AC Controls and Premium Dual tone
interiors. The Privilege edition is priced at INR 648,888 for Exterior
Petrol and INR 773,631 for Diesel, Ex-showroom New Delhi. • Sophisticated Body Graphics
Interior • Privilege Edition Emblem.
• DIGIPAD – 17.7 cm Advanced Infotainment with A/V and Safety
• Rear Parking Sensors - The Rear Parking Sensors help in a
navigation system, which features In-built Satellite Linked
3D Navigation; Internal Memory 1.5 GB; Mirror Link safer and more convenient parking experience

July 2017 32

News Basket

TVS Motor Partners with Abans Auto to Sell 3-Wheelers in Sri Lanka

To launch TVS King, India’s first 200cc Three-wheeler in Sri Lankan market

TVS Motor Company announced on June 28, its partnership Abans Auto has an unrivalled distribution of 200 showrooms
with Abans Auto, a leading distributor in Sri Lanka. Through and touch points across the country. Known for providing
this tie-up, TVS King, the 200 cc passenger three-wheeler, will superior customer experience in sales and service, it is an ideal
be launched in the Sri Lankan market. platform for TVS King to gain acceptance in the country.”

“TVS King is ideally suited for Sri Lankan conditions, and far
superior to the competition, with an affordable price, together
with financial assistance given to prospective buyers through
Abans Finance,” said Behman Pestonjee, MD of Abans PLC.

TVS King is a futuristic three-wheeler product with a good
combination of Power, Style, Comfort and Mileage and is
designed for today’s cities. TVS King is powered with a higher
capacity 200 cc, modern low friction 7-port engine with the
peak torque at lower rpm to climb gradients easily and drive
the vehicle in congested city traffic without frequent gearshifts.
The engine operates at lower revolutions for a given road
speed thereby improving the reliability of the engine and
delivers good mileage.

As a part of the agreement, the company will leverage Abans The vehicle comes with powerful twin headlamps (35 watts)
Auto’s network of over 200 showrooms and appointed dealers with bigger and brighter rear tail lamps and has a single large
in strategic locations around Sri Lanka. Furthermore, Abans windshield with laminated glass. Attractive interiors that add
Finance will provide finance schemes to the customers of TVS to the styling of the vehicle include a car-like dashboard with
Motor Company at affordable rates. fuel level indicators and mobile phone charging socket, dual
Commenting on the partnership R Dilip, Sr VP - International tone high quality seats, and an integrated bumper. TVS King’s
Business, TVS Motor Company, said, “Abans Group is a electric start option reduces driver’s fatigue. The vehicle has
respected and trusted brand in Sri Lanka. Their auto subsidiary, better head and legroom in the passenger compartment, while
the suspension and the seat are positioned so as to optimize
superior ride quality for longer duration.
TVS King is priced at 691,850 LKR and is available in all
showrooms of Abans Auto across Sri Lanka.

GM India Starts Export of Chevrolet Beat Sedan to Latin America

General Motors India began regular shipment of sedan Earlier this year, GMI began exporting the Chevrolet Beat
version of Chevrolet Beat from its Talegaon export hub to hatchback to Latin American markets.
Latin America Markets on June 28. “We are very happy with the launch readiness. Our highly
A consignment of 1200 Chevrolet Beat sedans was loaded skilled and committed workforce at Talegaon has developed
for shipping to Latin America, following the start of a mindset of zero defect to delight customers. The excellent
production on June 5, 2017. quality is supported by a classic design, enhanced
“Our Talegaon facility is a key export manufacturing hub for connectivity options, and ride and handling of the Chevrolet
GM,” said Asif Khatri, VP - Manufacturing, GM India. Beat sedan and we are confident that it will help us build on
“GM India’s exports have more than tripled in the past year. our success in the export markets,” said Asif.
GM was India’s third largest passenger vehicle exporter in General Motors India exports the Chevrolet Beat hatchbacks
May - recording our highest monthly total of vehicle exports and sedans to a number of left-hand-drive markets in Latin
at 8,297 units.” America.

35 July 2017

News Basket

ŠKODA Achieves Best First Half Year in the Company’s History

ŠKODA continued to grow globally in the first half of the year. (June 2016: 8,200 vehicles) and in the first six months of the
The Czech brand recorded 585,000 deliveries to customers year by 10.9 per cent to 51,200 vehicles (2016: 46,200
worldwide in the first six months – thus, surpassing last year’s vehicles). From January to June, deliveries also grew in Poland
record result by 2.8 per cent (January to June 2016: 569,400 (34,600 vehicles; +17.2%), Hungary (6,200 vehicles; +10.0%),
vehicles). 105,200 deliveries in June are also an all-time peak Slovenia (3,900 vehicles; +16.2%), Croatia (3,200 vehicles;
in sales (June 2016: 98,800 vehicles). Positive development in +59.9%) and Slovakia (10,700 vehicles; +11.1%).
the core market, Europe, and a two-digit rise in deliveries in With 3,800 vehicles in Eastern Europe, excluding Russia,
Russia contribute to the record result, as do the significant ŠKODA surpassed last year’s level by 14.9 per cent (June 2016:
increases in deliveries for the ŠKODA FABIA and SUPERB model 3,300 vehicles). In the entire first half of the year, growth is
ranges. With 27,100 deliveries since February, the new ŠKODA similarly strong with 13.0 per cent. ŠKODA delivered 19,300
KODIAQ SUV is having a successful start in markets worldwide. vehicles in this period (2016: 17,000 vehicles). Contributing
to this positive result were the developments in Romania
• Deliveries record: from January to June, ŠKODA achieves (5,200 vehicles; +8.0%), Serbia (3,200 vehicles; +6.3%), Ukraine
585,000 deliveries worldwide (2,600 vehicles; +65.9%) and the Baltics (3,900 vehicles;
• Best June of all time: 105,200 deliveries (+6.5%) In Russia, ŠKODA recorded a two-digit increase of 17.9 per
• International success: ŠKODA grows in Europe and Russia cent (5,700 vehicles) compared to the same month last year
• Successful models: deliveries increase for SUPERB and (June 2016: 4,800 vehicles). In the first half of the year, the
manufacturer achieved growth of 6.7 per cent to 28,700
FABIA; OCTAVIA remains brand’s bestseller vehicles (2016: 26,900 vehicles).
• Good market launch for ŠKODA KODIAQ: 27,100 In China, the biggest individual market worldwide, the long-
established Czech brand was able to improve deliveries in June
deliveries since February. by 5.3 per cent to 23,500 vehicles (June 2016: 22,400 vehicles).
This rise meets the manufacturer’s expectations. Tax increases
“Having delivered well over half a million cars, we have at the beginning of the year for various vehicle segments that
achieved the strongest half-year in ŠKODA’s history,” says ŠKODA is represented in had led to a decrease in deliveries. In
ŠKODA CEO Bernhard Maier, adding: “Our SUV campaign is the first half of the year, ŠKODA delivered 134,000 vehicles
proving effective. The high demand for the ŠKODA KODIAQ (January to June 2016: 145,800 vehicles; -8.1%).
has exceeded our expectations and confirms that we are on ŠKODA was able to record a positive result in India, where the
the right path.” manufacturer increased deliveries in June by 42.7 per cent to
With 45,900 deliveries in June, ŠKODA recorded an increase 1,400 vehicles (June 2016: 1,000 vehicles). In the first half of
of 2.1 per cent in Western Europe (June 2016: 45,000 vehicles). the year, ŠKODA saw double-digit growth of 21.7 per cent to
In the first half of the year, the brand improved deliveries by 7,900 vehicles (2016: 6,500 vehicles).
4.1 per cent to 252,300 vehicles (January to June 2016: 242,500 In Israel, ŠKODA made significant gains. 2,200 delivered
vehicles). In Germany, ŠKODA’s strongest individual European vehicles stand for an increase of 41.8 per cent compared to
market, deliveries increased in June by 0.7 per cent to 17,300 the same month last year (June 2016: 1,500 vehicles). In the
vehicles (June 2016: 17,200 vehicles). In the first six months, first half of the year, the manufacturer recorded a growth of
deliveries in Germany rose by 1.8 per cent to 88,000 units 11.6 per cent to 14,000 vehicles (January to June 2016: 12,500
(2016: 86,500 vehicles). ŠKODA achieved double-digit growth vehicles). In Australia, the traditional Czech brand performed
from January to June in Italy (13,600 vehicles; +18.4%) and well in June with growth of 23.8 per cent to 600 vehicles (June
Austria (12,900 vehicles; +13.7%). Deliveries also increased in 2016: 500 vehicles). The deliveries increased from January to
the United Kingdom (43,500 vehicles; +3.1%), Spain (13,500 June by 5.8 per cent to 9,700 units (January to June 2016:
vehicles; +2.5%), France (13,400 vehicles; +8.9%), Belgium 9,200 vehicles). With 416 deliveries to customers in June,
(11,400 vehicles; +6.7%), Sweden (8,900 vehicles; +8.4%), and ŠKODA recorded a growth of 4.0 per cent in Taiwan (June 2016:
the Netherlands (7,700 vehicles; +1.7%). 400 vehicles). In the first half of the year, the brand improved
In Central Europe, ŠKODA delivered 19,200 vehicles in June, its turnover by 8.2 per cent to 2,400 vehicles (January to June
an increase of 11.4 per cent (June 2016: 17,200 vehicles). In 2016: 2,300 vehicles).
the first half of the year ŠKODA recorded double-digit growth
of 14.0 per cent to 109,800 vehicles (2016: 96,300 vehicles).
In its home market of the Czech Republic, the manufacturer
increased deliveries in June by 8.3 per cent to 8,900 vehicles

July 2017 36

News Basket

Ashok Leyland Forms Strategic
Alliance with SUN Mobility

Ashok Leyland, flagship of the Hinduja Group, announced on Ashok Leyland has been a pioneer in electric buses, hybrid
July 18, the formation of a strategic alliance with SUN Mobility, buses, in both CNG as well as diesel, including those that do
promoted by Chetan Maini, founder of Reva and Uday Khemka, not require a plug-in. SUN Mobility aims to be the leading
Vice Chairman of SUN Group. This global partnership between provider of universal energy infrastructure and services to
Ashok Leyland and SUN Mobility will leverage India’s accelerate mass electric vehicle usage. SUN Mobility plans to
innovation and engineering potential to develop truly world revolutionise the transportation sector by deploying a unique
class electric mobility solutions. open-architecture ecosystem built around their proprietary
Speaking on the occasion, Vinod K Dasari, CEO & MD, Ashok smart batteries and a network of quick interchange battery
Leyland, said, “At Ashok Leyland, we have always proudly stations. These stations, predominantly powered by renewable
leveraged Indian engineering and innovation to develop world energy, will refuel electric vehicles at cost lower and speed
class solutions. We were the first and only manufacturer to faster than conventional diesel/petrol pumps.
achieve BS3 emission compliance using a mechanical fuel
pump. We were also the first in India to develop a SCR based
BS4 solution in 2010. In 2017, we were the world’s first and
only company to develop an EGR based BS4 solution, called
iEGR. Today’s partnership with Sun Mobility is yet another
step towards bringing world class solutions to India, developed
in India, and by Indians.”

Hyundai Launches ‘HyBUY’ - An Online Buying Experience in India

Hyundai Motor India Ltd (HMIL) launched a Unique and lives. HyBUY is the most innovative and unique digital initiative
Innovative Digital Marketing Initiative- ‘HyBUY’, redefining the in the Auto Industry. It is aimed to redefine car buying journey
car buying experience, on July 12. of customers and support the futuristic mass movement of
Hyundai is a modern premium brand and HyBUY is based on government’s ‘Digital India’.”
3 main pillars – Simple, Caring and Creative, fueling Hyundai
brand’s key vision of being “Lifetime partners in Automobile Customers on digital platforms are connected and look
and Beyond”. forward to an engaging experience. HyBUY utilizes the Social
Media Connectivity and benefits the customers in the most
• HyBUY is the most innovative initiative in the auto sector, convenient manner. Giving customers the power to incentivise
offering customers a unique online buying experience their own purchase journey to gain maximum benefits is a
way of giving the ‘Power to the People’ and adding the essence
• Hyundai Setting Industry Benchmarks, redefines the car of gamification to engage customers.
buying journey for customers through Gamification of
the Buying Experience The campaign has been designed to adopt an approach to
create buzz on digital. HyBUY initiative requires a customer
• HyBUYbenefits areoverandabovethe currentMarketOffer to sign up and join the deal on the website
• Benefits get more attractive as more people join the deal. . The customer can avail benefits by depositing a certain
amount of money and gain more rewards on sharing this
Speaking on ‘HyBUY’ initiative, Puneet Anand, Sr General deal with his friends and family to participate in this
Manager (Marketing) & Group Head, HMIL, said: “The time is program. HyBUY provides attractive offers and these
right as Digital India is growing incrementally. Hyundai always benefits increase when more people join the deal. The
strives to set Industry benchmarks and offer unique campaign is going to be just for a limited number of cars
experiences to customers adding ‘Brilliant Moments’ to their only, set with a pre-defined duration in real time and
benefits are over and above the current Market Offer. Only
booking is done online, rest of the buying experience
continues at the dealership end

37 July 2017

The Moment That…

Millennials Rewrote the Rules on Car Usage

Guillaume Saint, Global Development Director, TNS Automotive

Once upon a time baby, boomers were teenagers, the 1. Offer timely ride solutions
American dream was gold and owning a car was the ultimate Today’s hyper-connectivity has enabled a deluge of fresh
status symbol. The automotive industry enjoyed limitless mobility solutions. The ‘on-demand economy’ has seen
enthusiasm from its customers, since so many important swarms of younger people adopting services like e-hailing
moments in their everyday lives depended on the freedom through the likes of Uber, or car sharing via BlaBlaCar or
their vehicles provided. Car2Go. In fact, our Mobility studies show that almost half of
Fast forward to now: a world of artificial intelligence, 18-29 year olds are keen to share their cars (compared to only
globalisation and urbanisation. Most young urbanites are tech- 1 in 3 of over 40s) and 75% of urbanites are using mobility
obsessed, air pollution is a health threat, and connection is apps to organise or guide their journey.
achieved via smartphones. Owning a car lacks the appeal it In addition smartphone-first platforms are also developed by
once held: millennial’s passion now lies firmly with technology, automotive brands, like the FordPass. These are innovative
as can be seen in their interest in pay per use models, one-stop mobility apps that enable people to instantly find
immediacy, and the sharing economy. the right mobility solution the moment they need it. They
represent a growing market that focuses on car ‘usage’ instead
• The ‘on-demand economy’ has seen swarms of of ownership, giving brands an opportunity to start building
younger people adopting services like e-hailing a relationship with young people much earlier than traditional
through the likes of Uber, or car sharing via BlaBlaCar car ownership allows.
or Car2Go. BlaBlaCar goes one step further, leveraging a key moment for
this audience (the need for a lift by match making those who
• Auto brands are appealing to this mindset by need a ride with those offering one).
extending leasing programmes for car usage almost In this ad, they bring to life a moment that young people can
everywhere, breaking the custom of ‘buying a car to relate to: being able to spend Valentine’s Day with their
own’ and replacing it with a monthly payment model. partner.
2. Introduce a ‘millennial-centric’ package
All of which is compounded by the limited spending power Hyper-connected millennials have very different needs to
of some millennials. The rising costs of city living mean affluent baby boomers or their Gen X parents.
payments must be prioritised, often in monthly rhythms. Auto brands which design with these needs in mind and
As a result, the desire to own amongst this audience has promote their product in a way that appeals to younger
been replaced by the desire to access goods and services. people, will reach this cohort.
Twenty-somethings tend to struggle to make ends meet Indeed, demonstrating a car’s connectivity features when
each month, prioritising instant pleasure and sacrificing presenting a car improves sales and usage, especially amongst
large purchases for more flexible models like rental or car a younger audience. Smaller, digitally enabled cars for cities
sharing. allow younger people to stay connected as they drive, meeting
Yet these issues also create exciting opportunities. The their infotainment needs, from sat-nav to Spotify, the moment
ascendancy of the sharing economy has created an increasing they arise. Among the three main benefits of connected cars
number of car-pooling services, presenting a big opportunity – improved safety, enhanced driving experience and
for new brands and platforms to expand and democratise infotainment, the latter appeals most to the younger audience.
access to cars. Advancements in smartphone technology mean Payment models are changing too, since younger people tend
that mobile phones can now be integrated with cars and car to measure affordability on a monthly basis, rather than as a
sharing services.
The question is: how can automotive and mobility brands meet
the needs of tech-savvy youngsters ‘in the moment’?

July 2017 38

total price to pay. Auto brands are appealing to this mindset a test drive right there and then. The results were striking:
by extending leasing programmes for car usage almost 67% of video chats led to test drives.
everywhere, breaking the custom of ‘buying a car to own’ and Moving further down the purchase journey, Hyundai have
replacing it with a monthly payment model demonstrating gone a step further, allowing customers to buy a car with a
the impact this audience is having on the sector. simple click online, appealing to the millennial hunger for
3. Digitise your showroom instant gratification in an on-demand economy.
The path to purchase for car buyers has evolved quickly in the Big challenges, huge opportunities
last decade, with digital touchpoints challenging the role of The automotive industry has responded to changing customer
dealer showrooms as the biggest influence on car buying needs and a big challenge from technology with a period of
decisions. Accordingly, our Connected Life study shows that intense innovation. From Nissan’s consumer-to-consumer
72% of 16-30 year olds already have their minds made up online forum which responds to potential Leaf customer’s
before entering a showroom to buy a new car. questions about this electric vehicle, to Chrysler ‘co-creation
Automotive brands must creatively reach people in other ways, portal’, designed by millennials for millennials, OEMs are
by anticipating and tapping into the moments that matter rethinking product design & marketingfor a techsavvy generation.
preceding a purchase. Brands must carefully define and target the key moments of
They established a virtual showroom called ‘Live Store’, which interaction with these new audiences, responding to the ways
allowed potential customers to view vehicles close-up from younger people live, what they value and how they spend
the comfort of their sofa, and ask questions of an expert their money. They must not be afraid to push the boundaries
wearing an eye-level camera. Not only that, but the device of their business models with pioneering products and services
allowed them to view accessories available on screen and book that meet these changing needs


Tata Authorised Dealer for Passenger & Commercial Vehicles

Plot No. C-1, Industrial Area

Patna - 800 013

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

39 July 2017

Consumer Case Studies

National Consumer Disputes Redressal Commission, New Delhi

Dr B C Gupta, Presiding Member, Dr S M Kantikar, Member

Tata Motors Ltd – Petitioner


Girja Shanker Tamta & Anr – Respondents

Revision Petition No. 3172 of 2006 Decided on 30.03.2017

(Against the Order dated 19.04.2005 in Appeal No. 456/2004 of the State Commission Uttaranchal)

CPA, 1986 – Section 15, 17, 19 and 21 – Automobiles – Manufacturing Defect – Complainant mentioned problems only in
gear box of vehicle – OPs replaced it with a new gear box – There was a satisfaction note signed by Complainant himself
saying that vehicle had been satisfactorily repaired under terms of warranty – Consumer Fora below could not have gone
beyond scope of consumer complaint and ordered overhaul of car and removal of many other defects – It was duty of State
Commission to have examined each and every issue raised in memo of appeal and given its finding on such issues, but same
had not been done – Orders passed by Consumer Fora below are perverse in eyes of law because Consumer Fora have no
jurisdiction to travel beyond scope of consumer complaint and to order repairs beyond warranty period of vehicle – Orders
passed by State Commission as well as District Forum set aside and consumer complaint dismissed - Revision Petition

Important Point

Consumer Fora have no jurisdiction to travel beyond scope of consumer complaint and to order repairs beyond warranty
period of vehicle.


1. Dr B C Gupta, Presiding Member - This revision petition the car, the Complainant brought the vehicle to the
workshop of the OP-1 at his own expense. The car was
has been filed under section 21(b) of the Consumer repaired and handed over to him by the OPs on
Protection Act, 1986, against the impugned order dated
19.04.2005, passed by the Uttarakhand State Consumer 22.01.2001. Again, for the third time, there was problem
in the gear box and a lot of noise was coming from the
Disputes Redressal Commission, Dehradun (hereinafter same. The vehicle was not repaired, even after sending
referred to as “the State Commission”) in Appeal No. 456/
2004, Tata Engineering and Locomotive Co. Ltd & Ors vs repeated information to the OPs. The Complainant then
sent a notice dated 23.03.2001 by registered post, saying
Girja Shanker Tamta, vide which, the order passed by the that a new vehicle should be provided by the OPs in view
District Consumer Disputes Redressal Forum, Nainital on
23.08.2004 in Consumer Complaint No. 108/2001, of the repeated problems in the vehicle, but there was
no response to the notice. The Complainant filed the
allowing the said complaint, was modified. consumer complaint in question, seeking directions that
the car should be returned to the OPs and its price along
2. Briefly stated, the facts of the case are that the with other expenses should be paid by the OPs to the
Complainant Girija Shanker Tamta purchased a Tata Indica Complainant.
Petrol Car on 31.05.2000 from the dealer OP-1, M/s Mega
Motors, manufactured by the present Petitioner for a sum
of Rs. 2,76,172.52. There was a warranty of 18 months 3. The OPs filed their common written reply to the
for the said car. It has been stated in the consumer complaint, in which they denied the allegations against
them and stated that the Complainant did not come in
complaint that in November, 2000, there was problem in the category of ‘consumer’. They also stated that the
the gear box of the car, about which, information was
sent to the OP-1 dealer. A mechanic was sent by the OP- vehicle had been driven on rough and bumpy roads
without proper maintenance. The service of the vehicle
1 dealer, who examined the vehicle and put it in running was also not got done from the authorised service
condition. However, just after four days, there was again
a problem in the gear box of the car, which was again centres. The OPs also stated that the defective gear box
in the vehicle had been replaced by a new gear box, for
intimated to the dealer. Since none came to attend to

July 2017 40

Consumer Case Studies

which the Complainant had presented a ‘satisfactory’ The learned counsel has invited attention to the orders
note dated 20.09.2002. The District Forum, after dated 04.10.2001, 05.11.2001 recorded by the District
considering the averments of the parties, directed that Forum, in which it was stated that the gear box had been
the vehicle should be returned to the Complainant, replaced. The learned counsel has further argued that
without charging any amount. Thereafter, the the order passed by the State Commission was vague and
sketchy and had not taken into consideration the grounds
Complainant could take the car to any authorised mentioned in the memo of appeal. The learned counsel
workshop for complete overhauling of the engine and
removal of other defects. The OP should ensure that has drawn attention to an order passed by the Hon’ble
Supreme Court in HVPNL vs Mahavir, (2001) 10 SCC 659,
the car is completely repaired. In addition, it was also stating that an appellate forum is bound to refer to all
ordered that the OPs should jointly pay a compensation
of Rs. 20,000 to the Complainant and Rs. 5,000 for the necessary materials on record and discuss the evidence
and dispose of the matter by giving valid reasons. The
transportation of the car. Being aggrieved against the order passed by the State Commission was, therefore, bad
order of the District Forum, the Petitioner/OP-2
challenged the same by way of an appeal before the in the eyes of law and the same should be set aside. The
learned counsel further stated that the Complainant had
State Commission. The appeal was partly allowed and taken the vehicle to some other dealer, got it repaired by
the order of the District Forum was modified to the
extent that compensation of Rs. 20,000 should not be paying an amount of Rs. 90,823 without the permission
of the State Commission. There was no case for refund
paid by the OPs and interest on the said amount @ 10% of the said amount.
should also not be paid. Being aggrieved against the
order of the State Commission, the OP-2 manufacturer
is before this Commission by way of the present Revision 5. Per contra, the learned counsel for the Complainant/
Petition. Respondent No. 1 stated that there was no illegality,
irregularity in the concurrent findings recorded by the
consumer fora below and the same should be upheld.
4. The learned counsel for the Petitioner vehemently argued The learned counsel has drawn attention to an order
that the contents of the consumer complaint in question dated 04.07.2006, passed by the State Commission by
and the period of warranty, etc. have to be properly seen, which, a review of the order of the State Commission had
before arriving at a decision in the present case. The been declined. The learned counsel has further drawn
learned counsel argued that as stated in the consumer attention to an order passed by the Hon’ble Supreme
complaint itself, the only problem in the car was that of Court in Gurgaon Gramin Bank vs Khazani & Anr, (2012)
the gear box only. The OPs did make an attempt to 8 SCC 781, saying that the court’s jurisdiction should not
remove the defects in the gear box and subsequently, be invoked for resolution of small and trivial matters.
replaced it completely. There was, therefore, no Unless substantive question of law was involved, affecting
deficiency on the part of the OPs vis-a-vis the a large number of persons or the stakes are very high,
Complainant. The learned counsel argued that by virtue the jurisdiction of the courts should not be invoked. The
of the orders passed by the consumer fora below, a learned counsel argued that the revision petition should
direction had been given for removal of all defects in the be dismissed and the orders passed by the consumer fora
vehicle. Considering the plea taken in the complaint itself, upheld.
there was jurisdictional error in the orders passed by the
consumer fora below, because the said fora could not have 6. We have examined the entire material on record and given
gone beyond the pleadings made in the consumer a thoughtful consideration to the arguments advanced
before us.
complaint itself. The learned counsel further argued that
there was a warranty of 18 months for the said car, which 7. A perusal of the consumer complaint in question dated
expired on 30.11.2001. Whatever defects occurred in the 19.04.2001 reveals that the Complainant mentioned only
car after the expiration of the warranty, could not have
been attended to by the OPs. The learned counsel has about the problems in the gear box of the vehicle in
question. The OPs made attempts to remove the defects
drawn attention to a ‘satisfaction note’ dated 29.07.2002 in the gear box and ultimately, the said gear box was
recorded by the Complainant, in which he categorically
stated that M/s Mega Motors had satisfactorily repaired replaced with a new gear box. There was a satisfaction
note dated 20.09.2002, signed by the Complainant
the vehicle. The learned counsel has drawn attention to himself, saying that the vehicle had been satisfactorily
the copies of the job cards also, saying that as per the
entries made, the problem was with the gear box only. repaired under the terms of the warranty. In the light of
these facts, there is considerable weight in the arguments

41 July 2017

Consumer Case Studies

advanced by the learned counsel for the Petitioner/OP/ in the eyes of law, because these fora have no jurisdiction
manufacturer that the consumer fora below could not to travel beyond the scope of the consumer complaint
have gone beyond the scope of the consumer complaint and also to order repairs, beyond the warranty period of
and ordered the overhaul of the car and removal of many the vehicle. Further, the contention raised by the learned
other defects. The learned counsel also argued that the counsel for the Complainant that small and trivial matters
warranty of the vehicle was for 18 months only and had should not be attended to by the consumer fora, unless
expired on 30.11.2001. The OPs are not supposed to take substantial question of law is involved, does not hold good
care of the problems that arose in the vehicle, after the in the facts and circumstances of the present case. The
said warranty was over. In any case, the consumer fora relief allowed by the consumer fora below, which was
below had not advanced any reason, which could justify beyond the scope of the consumer complaint, leads to
that the overhaul/repair of the car should be carried out the conclusion that there was a patently legal error in
by the OPs, free of cost. It is also borne out from a perusal the orders passed by the consumer fora below.
of the order passed by the State Commission that the
points raised in the memo of appeal have not been 9. In so far as the repairs got carried out by the Complainant
properly dealt with, while passing the impugned order. himself is concerned, there is no justification for directing
We agree with the contention of the learned counsel for the OPs to reimburse the amounts spent by the
the Petitioner that it was the duty of the State Commission Complainant for the said repairs, because the said repairs
to have examined each and every issue raised in the memo would fall outside the scope of the consumer complaint.
of appeal and given its findings on such issues, but the Based on the discussion above, this revision petition is
same had not been done. allowed, the orders passed by the State Commission as
well as the District Forum are set aside and the
8. In the light of the discussion above, it is held that the Consumer Complaint is dismissed without any order as
orders passed by the consumer fora below are perverse to costs

July 2017 42

Competition Law Updates

PSA wins EU approval to parts, such as headlamps or daytime running lights that
buy General Motors’ were supplied to automobile manufacturers.
German Unit Opel The DG Competition’s investigation has revealed that for
more than three years, the companies met at trade fairs
French car-maker PSA and other places to discuss tenders, negotiation
Group has secured strategies and to exchange information on their
unconditional EU antitrust customers. Such conducts are also prohibited under the
approval on 05 July 2017 Indian Competition Law.
to acquire General Automotive Lighting and Hella were raided by the
Motors' German unit enforcer in July 2012, post which they filed leniency
Opel. applications and received 35% and 20% fine reductions,
respectively. Valeo, however received full (100%)
It is said that this immunity for revealing the cartel to the European
acquisition will help PSA Commission.
G R Bhatia, Partner & Head, compete better with the Czech Republic fines two car dealership companies
Competition Law Practice Group, The Czech Republic’s competition enforcer has fined two
Luthra & Luthra Law Office m arket leader car dealerships- NH Car and Auto Bilek penalties
Volkswagen. According to amounting to 4.5 million Czech koruna (€172,200) and
European Commission the deal did not pose any 84,000 koruna (€3,200) for coordinating prices on three
competition concerns. PSA, the maker of Peugeot and tenders to supply passenger cars to the country’s
Citroen cars expects that Opel and its British Vauxhall education board.
brand will turn into profits. The companies coordinated between 2012 and 2014 and
such conduct distorted competition in markets for the
EU Anti-trust regulator raids Irish Auto-Insurers supply of new luxury and lower-range multi-purpose vehicles.
Brazil opens auto parts probe into motor valves
European Commission’s antitrust officials carried out Brazil’s competition watchdog (CADE) has opened its 12th
unannounced inspections/raids at automotive insurance auto-parts cartel investigation into manufacturers of
firms in Ireland on 4 July 2017. motor valves, valve guides and valve seats.
CADE’s investigation reveals that at least 17 individuals
These raids were a result of suspicion that the from all 4 companies are involved in this conduct. Under
automotive insurers may have breached competition the Competition Act, 2002, the CCI can also impose
rules. penalty on delinquent individuals.
Supreme Court stays COMPAT order that imposed
The European Commission officials said that the penalty on 3 car companies
inspections did not mean that the companies were guilty The COMPAT by order dated 09.12.2016 directed Ford,
of anti-competitive behavior and further said that it Toyota and Nissan, to remove all restrictions imposed
respects the rights of companies to be heard during through agreements, to open up market for spare parts,
antitrust proceedings. remove all restrictions on supply of spare parts by
original equipment suppliers to authorized dealers etc.
Incidentally, the DG, CCI also has power to conduct On appeal, Hon’ble Supreme Court has stayed the
unannounced raid after having obtained warrant from operation of the Compat’s order. The matter is yet to
the CMM, Delhi, in cases where he suspects that come up for arguments
evidence is likely to be destroyed by entering into
correspondence with the charged party.

European Commission’s DG fines vehicle lighting

The most recent penalty that has been imposed by the
European Commission’s Director-General on two vehicle
lighting system manufacturers - Automotive Lighting and
Hella, amounting to €16.4 million and €10.4 million
respectively, for fixing the prices of spare lighting system

43 July 2017


Domestic Sales Jun-17 Jun-16 Growth Y-o-Y (%) Exports Jun-17 Jun-16 Growth Y-o-Y (%)
OEM 210 603 -65.17 OEM 5,305 10,285 42.72
139 Ford India
Fiat India 6,148 170 -18.24 General Motors 450 2,834 87.19
Force Motors 672 Honda Cars 13,291
Ford India 9,469 -35.07 Hyundai Motor 361 24.65
General Motors 44 Isuzu Motors 16
HM Finance Corp 12,804 1951 -65.56 Mahindra 384
Honda Cars 37,562 Maruti Suzuki 12,959
Hyundai Motor 46 -4.35 Nissan Motor 3,751 15,907 -16.45
Isuzu Motors 163 Renault India 999
Mahindra 16,169 11,407 12.25 Tata Motors 129 --
Maruti Suzuki 93,057 Toyota Kirloskar 1,688
Nissan Motor 39,806 -5.64 Volkswagen 8,597
Renault India 4,582 Total 62,248
Skoda Auto 6,840 188 -13.30 897 -57.19
Tata Motors 1,018
Toyota Kirloskar 13,148 17,068 -5.27 6,455 100.76
Volkswagen 1,973
Total 3,870 92,133 1.00 7,642 -50.92
5,212 -12.09

11,837 -42.22 161 520.50

1,002 1.60 164 -21.34

14,973 -12.19 1,352 24.85

13,567 -85.46

4,022 -3.78 7,554 13.81

223,454 -11.21 53,612 16.11

Domestic Sales + Exports

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

Fiat India 210 603 -65.17 Segment wise (Domestic Sales + Exports)
Force Motors 139 170 -18.24
Ford India 20,827 19,754 Category Jun-17 Jun-16 Growth Y-o-Y (%)
General Motors 5,977 4,785 5.43
HM Finance Corp 46 24.91 Cars 183,586 195,156 -5.93
Honda Cars 44 11,768 -4.35 UVs 64,793 68,308 -5.15
Hyundai Motor 13,254 55,713 12.63 Vans 12,268 13,602 -9.81
Isuzu Motors 50,853 188 -8.72
Mahindra 17,965 -4.79
Maruti Suzuki 179 98,588 -7.86
Nissan Motor 16,553 12,854
Renault India 106,016 11,998 7.53
Skoda Auto 8,333 1,002 -35.17
Tata Motors 7,839 15,137 -34.66
Toyota Kirloskar 1,018 14,919
Volkswagen 13,277 11,576 1.60
3,661 277,066 -75.46
Total 260,647 Total 260,647 277,066 -5.93
-5.93 Source: SIAM

45 July 2017


Domestic Sales Exports

OEM June-17 June-16 Growth Y-o-Y (%) OEM June-17 June-16 Growth Y-o-Y (%)
Bajaj Auto
H-D Motor 108,109 168,625 -35.89 Bajaj Auto 96,558 104,673 -7.75
Hero MotoCorp 220 323 -31.89 H-D Motor 192 124 54.84
HMSI 13.87 Hero MotoCorp
India Kawasaki 612,669 538,064 HMSI 11,516 11,469 0.41
India Yamaha 416,365 407,979 2.06 India Yamaha 28,163 19,243 46.35
Mahindra 2W -42.75 15,221 11,663 30.51
Piaggio 79 138 -10.02
Royal Enfield 60,472 67,204
Triumph 683 6,191 -88.97 Mahindra 2W 1,662 1,019 63.10
TVS Motor 4,515 2,327 94.03 Piaggio 636 177 259.32
61,671 49,060 25.71 Royal Enfield
Total 33,565 21,172 58.53 Suzuki 1,489 1,622 -8.20
TVS Motor 4,881 9,018 -45.87
183 168 8.93 40,120 33,224 20.76
228,518 207,012 10.39

1,527,049 1,468,263 4.00 Total 200,438 192,232 4.27

Domestic Sales + Exports

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

Bajaj Auto 204,667 273,298 -25.11

H-D Motor 412 447 -7.83

Hero MotoCorp 624,185 549,533 13.58

HMSI 444,528 427,222 4.05

India Kawasaki 79 138 -42.75

India Yamaha 75,693 78,867 -4.02

Mahindra 2W 2,345 7,210 -67.48 Segment wise (Domestic Sales + Exports)

Piaggio 5,151 2,504 105.71 Category June-17 June-16 Growth Y-o-Y (%)
Royal Enfield 63,160 50,682 24.62 Scooterettes 522,119 470,937 10.87

Suzuki 38,446 30,190 27.35 Motorcycles/ 1,139,324 1,112,454 2.42
Triumph 183 168 8.93

TVS Motor 268,638 240,236 11.82 Mopeds 66,044 77,104 -14.34

Total 1,727,487 1,660,495 4.03 Total 1,727,487 1,660,495 4.03
Source: SIAM

July 2017 46


Domestic Sales June-17 June-16 Growth Y-o-Y (%) Exports June-17 June-16 Growth Y-o-Y (%)

OEM -5 - OEM 1,353 653 107.20
AMW Motor 15 38 -60.53
Ashok Leyland 10,980 10,455 5.02 Ashok Leyland -64.01
Force Motors Force Motors 1,124 3,123 -31.75
Isuzu Motors 1,782 2,212 -19.44 Mahindra 172 252
JBM Auto Ltd Maruti Suzuki 8 - -
Mahindra 127 57 122.81 Piaggio Vehicles 50 56 -10.71
Maruti Suzuki SML Isuzu -37.97
Piaggio Vehicles - 50 Tata Motors 3,374 5,439 -19.13
SML Isuzu VECVs - Eicher 503 622
Tata Motors 15,132 13,540 11.76 -35.20
VECVs - Eicher Total 6,599 10,183
VECVs - Volvo
Total 206 - - M&HCVs (Domestic Sales + Exports)

269 246 9.35 Category June-17 June-16 Growth Y-o-Y (%)
Passenger Carriers
1,270 1,504 -15.56 Goods Carriers 4,174 5,177 -19.37

23,706 23,700 0.03 20,080 20,777 -3.35

3,382 4,256 -20.54 Total M&HCVs 24,254 25,954 -6.55

36 57 -36.84 LCVs (Domestic Sales + Exports)

56,890 56,082 1.44 Category June-17 June-16 Growth Y-o-Y (%)

Domestic Sales + Exports Passenger Carriers 5,032 6,328 -20.48
Goods Carriers 34,203 33,983 0.65
OEM June-17 June-16 Growth Y-o-Y (%)
Total LCVs 39,235 40,311 -2.67

AMW Motor - 5 - Segment wise (Domestic Sales + Exports)
Ashok Leyland 12,333 11,108 11.03
Force Motors -20.13 Category June-17 June-16 Growth Y-o-Y (%)
Isuzu Motors 1,797 2,250 122.81 24,254 25,954 -6.55
JBM Auto Ltd 127 57 M&HCVs 39,235 40,311 -2.67
Mahindra - 50 - LCVs
Maruti Suzuki -2.44
Piaggio Vehicles 16,256 16,663 50.00
SML Isuzu 378 252 12.60
Tata Motors 277 246 -15.39
VECVs - Eicher -7.07
VECVs - Volvo 1,320 1,560 -20.36
27,080 29,139 -36.84
36 57

Total 63,489 66,265 -4.19 Total 63,489 66,265 -4.19

Source: SIAM

July 2017 48


Domestic Sales June-17 June-16 Growth Y-o-Y (%) Exports June-17 June-16 Growth Y-o-Y (%)
3,006 3,268 -8.02 282 71 297.18
OEM 18,866 25,092 -24.81 OEM 14.75
Atul Auto 2,560 4,381 -41.57 Atul Auto 21,213 18,487 -15.79
Bajaj Auto 11,132 13,780 -19.22 Bajaj Auto 224 266 -
Mahindra 43 663 -93.51 Force Motors 347 - 34.70
Piaggio 884 1,189 -25.65 Mahindra -28.12
Scooters India Piaggio 2,166 1,608
TVS Motor TVS Motor 4,269 5,939

Total 36,491 48,373 -24.56 Total 28,501 26,371 8.08

Domestic Sales + Exports

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

Atul Auto 3,288 3,339 -1.53

Bajaj Auto 40,079 43,579 -8.03

Force Motors Ltd 224 266 -15.79

Mahindra 2,907 4,381 -33.65 Segment wise (Domestic Sales + Exports)

Piaggio 13,298 15,388 -13.58 Category June-17 June-16 Growth Y-o-Y (%)

Scooters India 43 663 -93.51 Passenger Carrier 56,196 65,761 -14.55
Goods Carrier 8,796 8,983 -2.08
TVS Motor 5,153 7,128 -27.71

Total 64,992 74,744 -13.05 Total 64,992 74,744 -13.05


CATEGORY June-17 June-16 Growth Y-o-Y (%)

PASSENGER VEHICLES 260,647 277,066 -5.93
TWO-WHEELERS 1,727,487 1,660,495 4.03
THREE-WHEELERS 63,489 66,265 -13.05
QUADRICYCLES 64,992 74,744 43.48

TOTAL 132 92 1.83

2,116,747 2,078,662

Source: SIAM


SALES June-17 June-16 Growth Y-o-Y (%)
Domestic Sales 64,808 65,938 -0.29
Exports 6,831 6,851 -1.58
Total (Domestic + Exports)
71,639 72,789 49

Source: TMA

July 2017

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