NEW DELHI: It’s the end of the road for diesel vehicles in the Maruti Suzuki stable. The country’s largest carmaker, which accounts for one out of every two vehicles sold, has said that come April next
Swaraj Baggonkar / Mumbai July 17, 2008, 0:48 IST The story about India enticing world auto majors will add another feather in European giant Volkswagen's (VW) cap as it prepares for its first fully-original Indian Volkswagen car, made with the help of expertise provided by Indian engineers and designers. The company, which is also Europe's largest car maker, will follow in the footsteps of Maruti Suzuki, India's biggest passenger vehicle maker, which is also preparing to launch a similar car in the next three to four years.
Vehicles above 1500-1999 cc face duty of Rs. 15,000 Those with 2000 cc and above will cost Rs. 20,000 more In a firm move to discourage fuel guzzlers on the road in the wake of rising fuel prices, the government on Friday imposed a stiff additional excise duty of about Rs. 15,000-20,000 as a specific levy on large cars, MUVs (multi-utility vehicles) and SUVs (sports utility vehicles).
Companies May Lower Tags, Offer More Discounts To Offset Impact The hike in petrol, diesel prices will fuel a slowdown in the auto industry in the short-term, feel car majors like Maruti, Hyundai and Honda. And, it may spell good news for consumers in terms of lower prices and greater discounts from car makers, who will try to offset the negative impact on the industry, which is already hit by higher interest rates and tighter retail financing.
AFTER a splendid run for most of last fiscal and in April, passenger car sales are decelerating as consumers apprehend a hike in petrol and diesel prices. With crude oil price hitting a record $133 per barrel and a fuel price hike looking imminent, Indian customers are postponing their car purchases. The biggest hit is the price-sensitive small-car segment, which accounts for 75% of the total sales.
Metal costs, largely responsible for vehicle price hikes, will soon cease to pinch the automobile manufacturers' margins as they become increasingly aware of the benefits of using engineering plastic instead of metals in vehicles. Home-grown automotive players like Tata Motors, Ashok Leyland, Bajaj Auto, Hero Honda, TVS Motors and Maruti Suzuki are augmenting the use of plastics in engine components in an ambitious effort to reduce dependence on key metals like steel and aluminium, all of which have witnessed stupendous rise of 35-50 per cent in the past 5 months.
The domestic auto market is showing signs of revival thanks to the 4 percentage point cut (400 bps) in excise duty on cars and two-wheelers announced in February. April witnessed a jump of more than 17 per cent in the car segment, while sales in the utility vehicle segment rose by 31 per cent, as compared with the corresponding month last year. According to the figures released by the Society of Indian Automobile Manufacturers (SIAM), the passenger-vehicle segment, which also includes multi-purpose vehicles, grew by 21 per cent. The motorcycle sales grew by 8 per cent during the month.
: Japanese automaker Nissan is all set to kick off fresh competition in India as it plans six new launches by 2012, including a hatchback car in the volume segment and commercial vehicles. The small car will be produced at its upcoming Chennai factory, slated to start production by 2010, a senior company official said. While Nissan will source Maruti-Suzuki's yet-to-belaunched compact
At Rs 1.92 lakh, Maruti is the cheapest small car now Nano, the Rs 1 lakh car, could expect some competition from Maruti's user car business, True Value.
The lines are shut at the second plant of Hyundai Motor India (hmil) near Chennai and hundreds of unfinished i 10s are sitting on the brand new assembly line as journalists tour the new facility that the South Korean carmaker has established at a cost of Rs 4,000 crore.
