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Bumpy ride for automakers but road ahead seems smooth (2012 in Retrospect)
Photo Credit: FETHI BELAID, Getty Images

Bumpy ride for automakers but road ahead seems smooth (2012 in Retrospect)

Dec 26 2012, 1:18am CST | by

Chennai, Dec 26 (IANS) The Indian auto industry hopes the New Year will usher in good times again with some tax cuts, economic revival and better sentiments after a year marked by low volumes and labour unrest at some units.

Chennai, Dec 26 — The Indian auto industry hopes the New Year will usher in good times again with some tax cuts, economic revival and better sentiments after a year marked by low volumes and labour...

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1 year ago

Bumpy ride for automakers but road ahead seems smooth (2012 in Retrospect)

Dec 26 2012, 1:18am CST | by

Chennai, Dec 26 (IANS) The Indian auto industry hopes the New Year will usher in good times again with some tax cuts, economic revival and better sentiments after a year marked by low volumes and labour unrest at some units.

Chennai, Dec 26 — The Indian auto industry hopes the New Year will usher in good times again with some tax cuts, economic revival and better sentiments after a year marked by low volumes and labour unrest at some units.

"It has has been a dull and lacklustre year for the auto sector," said V.G. Ramakrishnan, senior director (South Asia, Middle East and North Africa) for automotive practice at consultancy firm Frost and Sullivan.

"But some segments like utility, light and small commercial vehicles grew. The car segment did not grow significantly while two-wheeler makers managed to log growth," Ramakrishnan told IANS.

The economic slowdown resulted in lower freight, forcing truck operators to stick to their existing fleet and thereby bringing down the sales of medium and heavy trucks while light and small trucks showed growth, Ramakrishnan added.

According to the Society for Indian Automobile Manufacturers (SIAM), cumulative production growth during April-November was just 4.8 percent over same period last year. The industry produced 1,646,495 vehicles in November 2012 as against 1,816,977 in November 2011, a decline of over nine percent.

In 2011-12, the industry had produced 20,366,432 vehicles of which the share of two-wheelers, passenger vehicles, three-wheelers and commercial vehicles was 76 percent, 15 percent, 4 percent and 4 percent, respectively.

Yaresh Kothari, research analyst at Angel Broking, told IANS that the mining ban in some states like Karnataka and Goa also affected truck sales. "Overall sales of medium and heavy trucks came down by around 15 percent," he said.

Kothari said that the demand for two-wheelers was also sluggish owing to high fuel costs and that lower-powered motorcycles are registering better growth than high-powered ones.

Out of 16 car manufacturers, nine companies reported decreased production, three reported marginal growth (less than four percent) and only four have been doing well this fiscal, as per figures available with the auto industry.

Carmakers Nissan Motor, Toyota Kirloskar, Honda Cars India, Hyundai Motor, Maruti Suzuki, Renault India and Skoda Auto are seven companies that have posted growth during April-November 2012.

"It has been a mixed bag. We saw a number of new model launches and aggressive pricing from various automotive manufacturers," Takayuki Ishida, managing director and chief executive of Nissan Motor India, told IANS.

"There are many variables that caused the slowdown, including inflation, interest rates and fuel price increase. The consumer sentiment continued to be down even during the festival season," he said.

According to P.Balendran, vice president at General Motors India, the entry-level gasoline cars have been hit the hardest, showing a decline in the growth rate. There was also talk of additional diesel tax which caused a lot of uncertainties in business and investments plans.

"The interest rates have not been coming down. As over 85 percent of the buyers in the Indian car market purchase cars through finance from banks, there is negative consumer sentiment prevailing and people are postponing car purchases," Balendran told IANS.

On the utility vehicle market, Nissan's Ishida said the segment is growing with projections upward of 30 percent in this segment and that his company's Evalia model was positioned well to meet demands.

Balendran said General Motors was preparing for the launch of Enjoy, an MPV, and Sail, a sedan, as a replacement for Aveo, early next year.

Looking forward, Ramakrishnan said more the 40 new launches are planned by the auto industry in 2013. Experts expect Maruti Suzuki to bounce bank while Mahindra and Mahindra is also readying more new models.

"A decent budget and positive numbers in the index of industrial production are expected to crank start the sector's fortunes," Ramakrishnan remarked, even as others wanted a cut in excise duties to the 2010-11 levels and the introduction of the goods and services tax (GST).

"Import duties on CBUs (completely built units) for cars should be retained at the same level across all regions to encourage local manufacturing. There has to be a renewed focus on infrastructure, especially hybrid and electric vehicles for which funds need to be made available by the government," Balendran added.

Experts also said while companies are expected to hike their prices in 2013 due to increase in the input costs and unfavourable currency movements, the first half of the next year will continue to be challenging.

Important developments in the auto sector in 2012:

* Labour unrest in Maruti Suzuki

* Daimler India launches India-made trucks

* M&M to buy out US-based Navistar group's stakes in truck and engine joint ventures

* Hyundai Motor India and Ford India announced additional investment

* Two-wheeler makers India Yamaha Motors and Eicher Motors announce expansion

IANS

Source: IANS

 
Update
11

2 days ago

Toyota issues recall for 20,000 vehicles for possible fire risk

Sep 19 2014 10:58am CDT | Source: Driving Canada

Toyota is recalling roughly 20,000 vehicles across the globe over a potential fire hazard. The recall covers vehicles powered by the company’s 3.5-litre V6 engine, also known as the 2GR-FE. Affected models incluide the 2015 Lexus RX, as well as the 2014 Toyota Avalon, Camry, Highlander and Sienna. According to Automotive News, the issue revolves around a fuel delivery pipe in the engine bay may leak due ...
Source: Driving Canada   Full article at: Driving Canada
 

 
Update
10

4 days ago

This El Camino Version of the New Aston Lagonda Is El Spectacular

Sep 17 2014 11:33am CDT | Source: Car and Driver

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Source: Car and Driver   Full article at: Car and Driver
 

 
Update
9

1 week ago

Aston Martin Drops Photos of 2016 Lagonda Super Sedan, Details Brutal Hot Weather Testing

Sep 8 2014 5:30pm CDT | Source: Car and Driver

Is it possible for a car to be too pretty to torture test? The 2016 Aston Martin Lagonda may just qualify, but it’s undergoing absolutely savage-sounding hot-weather testing anyway. The limited-production Lagonda sedan will be sold exclusively sold in the Middle East, hence the brutal high-temperature evaluations, but more important than the four-door’s (admittedly) expected hot-air gauntlet is that Aston Martin has final ...
Source: Car and Driver   Full article at: Car and Driver
 

 
Update
8

2 weeks ago

New Pictures Of The Aston Martin Lagonda Are Warping My Brain

Sep 7 2014 8:14pm CDT | Source: Jalopnik

The old Aston Martin Lagonda was an alien spacecraft of a car, more otherworldly in person than you can imagine . I didn't think I'd like the new Middle East-only version , but I think it's warping ...
Source: Jalopnik   Full article at: Jalopnik
 

 
Update
6

2 weeks ago

Aston Martin tests new Lagonda super-sedan in Oman

Sep 7 2014 6:34am CDT | Source: Autoblog

Filed under: Sedan, Performance, Aston Martin, Middle East, Luxury Aston Martin has been on a long road towards reviving the Lagonda name. The last Lagonda - that famously wedgy sedan - ended production in 1990. The name came back on a crossover concept in 2009, but for better or worse, never reached production. Then about a month ago, Aston teased a new super sedan to revive the marque, and shipped it off to Oman for hot weather testing under the baki ...
Source: Autoblog   Full article at: Autoblog
 

 
Update
5

2 weeks ago

Gallery: Aston Martin releases photos of Lagonda sedan undergoing testing in Oman

Sep 7 2014 6:01am CDT | Source: Driving Canada

These are the latest photos of the new Aston Martin Lagonda undergoing severe heat testing in Oman. This latest Lagonda — similar in shape and concept to its famed 1976 namesake — is built on Aston’s ubiquitous VH platform and powered by its traditional 6.0-litre V12. But in most other ways — from its square-ish shape and its four full-sized doors — it is unique in Gaydon’s lineup. Indeed, demand from the Middle East means that this is one Aston Martin that is as good to be dr ...
Source: Driving Canada   Full article at: Driving Canada
 

 
Update
4

2 weeks ago

Lost in Translation: Aston Martin Lagonda Prototype Proudly Displayed . . . by Oman Air

Sep 2 2014 12:24pm CDT | Source: Car and Driver

It’s been nearly a month since Aston Martin announced the development of its Lagonda super-sedan, which it will offer solely to Middle East customers for something like a kazillion dollars, but other than a profile view and an obscured black-and-white shot of a partially assembled car on a lift, we haven’t seen the real thing. Enter Oman Air, which proudly published pictures of a Lagonda test vehicle that the airline transported to Muscat, Oman, for some hot-weather shenanigans. For its p ...
Source: Car and Driver   Full article at: Car and Driver
 

 
Update
3

3 weeks ago

Aston Martin Lagonda supersaloon gets official with first delivery

Aug 29 2014 9:24am CDT | Source: Autoblog

Filed under: Sedan, Performance, Aston Martin, Middle East, Luxury Over the past 67 years since Aston Martin acquired the Lagonda marque, the name has come and gone, but now it's back again. After an aborted attempt at reviving the brand with a much-criticized SUV concept at the 2009 Geneva Motor Show, Aston is building a new high-end sedan exclusively for the Middle Eastern market, and this is our best look at it yet. We first caught ...
Source: Autoblog   Full article at: Autoblog
 

 
Update
2

4 weeks ago

Tata approves plans to codevelop two SUVs with Land Rover

Aug 24 2014 10:09am CDT | Source: Autoblog

Filed under: SUV, Technology, Land Rover, India, Tata Over the course of this year, rumors have been building about Jaguar Land Rover and its parent company, Tata Motors, co-developing vehicles, especially SUVs. Up until now, the Indian company has generally left its luxury arm's tech and expertise alone. The latest evidence, though, suggests the two sides won't keep their engineering separa ...
Source: Autoblog   Full article at: Autoblog
 

 
Update
1

5 weeks ago

Rolls-Royce Ghost Special Edition

Aug 17 2014 6:00pm CDT | Source: Top Speed

Rolls-Royce has made a habit of releasing numerous special-edition models of its luxurious vehicles. Often unique, these luxo-barges are delivered in Middle East and China, the world’s most important luxury markets. Phantoms, Ghosts, Wraiths, you name it. Rolls-Royce will customize its interior, add a bespoke paint job, ask a hefty premium in exchange and call it a day. After launching the stunning Pinnacle Travel Phantom at the 2014 Beijing Auto Show, t ...
Source: Top Speed   Full article at: Top Speed
 

 

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<a href="/latest_stories/all/all/8" rel="author">Luigi Lugmayr</a>
Luigi is the founding Chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com. Luigi posts regularly on LuigiMe.com about his experience running I4U.

 

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