2021’s Top 10 Headlines From The Indian Auto Industry
Mahindra Goes For A Divorce With Its JV Partner Ford Within A Year Of Alliance
On 1st January 2021, US auto major Ford Motor Co and India's Mahindra & Mahindra have decided to scrap their previously announced automotive joint venture and it will continue its independent operations in India as it is.
Mahindra Goes For A Divorce With Its JV Partner Ford Within A Year Of Alliance
Voluntary Vehicle Scrappage Policy
Similar to United States' 'Cash for clunker scheme'. The purpose of the scheme was to provide residents with an economic incentive to purchase a new, more fuel-efficient vehicle while trading in a less fuel-efficient vehicle.
Scrappage Policy Get the Green Light in Budget 2021
The Minister for Road Transport & Highways Shri Nitin Gadkari ji tabled an outline of the upcoming vehicle scrappage policy in Lok Sabha, offering incentives like 4-6% Scrap Value, 25% Rebate On Road Tax, 5% Discount On New Vehicle Purchase.
Gadkari Tables Scrappage Policy In Lok Sabha
PM Modi Launches Vehicle Scrappage Policy
Semi-Conductor Shortage
Automobile OEMs have started to witness a steady increase in vehicle demand due to the revival of car sales. However, the semiconductor industry is finding it difficult to address the increasing demand as it also caters to other industries like IT, consumer electronics, mobile and medical equipment that witnessed unprecedented demand during COVID-19.
EY Reports On Weak Semi-Conductor Supply to affect the Auto Industry.
Auto Industry Impacted by Chip Shortage Before Festive Season
Maruti Impacted By Chip Shortage, Reports A 53% Drop In Yo-Y Sales At 86,380 Units
Mg Motor India Logs A 28% Sales Increase In September 2021, Chip Shortage Hampers Production
Maruti Suzuki Expects Adverse Impact On Production Amid Semiconductor Shortage
Maruti Suzuki Reports A 51% Drop In Production In September
India Approves $10 Billion Plan To Lure Semiconductor, Display Makers
COVID Second Wave Hits the Auto Industry
The Second wave of COVID brought most of the country under lockdown and not surprisingly Auto Sales and Production for the month. According to data released by the Society of Indian Automobile Manufacturers (SIAM) the total production of Passenger Vehicles, Three Wheelers, Two Wheelers, and Quadricycle in the month of May 2021 was 806,755 units. Since April-May of 2020 the whole country was under complete lockdown to the initial wave of COVID-19 pandemic, the data is compared to May 2019, Sales figures for Passenger vehicles stood at 88,045 units a 61.2% degrowth for the segment, Two-wheelers sales in May saw 3,52,717 units, degrowth of 79.6% and Three-Wheelers at just 1,251 units saw 97.6% degrowth.
Second Wave COVID Lockdown Severely Impacts Auto Industry May 21 Sales And Production Numbers
Auto Components Major - Sona Comstar ₹ 5,550 Crore IPO
The Rs 5,550-crore initial public offer (IPO) of automotive supplier Sona BLW Precision Forgings (Sona Comstar) opened for subscription on June14th, was subscribed 2.33 times, with the portion meant for qualified institutional buyers (QIBs) getting subscribed 3.54 times and that of retail individual investors (RIIs) by 1.61 times. The non-institutional investor quota remained undersubscribed at 40 per cent.
FORD Stops Local Manufacturing, Exits India
Ford in India announced it will restructure its operations, Ford will continue to provide customers in India with ongoing parts, service, and warranty support. As part of the plan, Ford India will wind down vehicle assembly in Sanand by the fourth quarter of 2021 and vehicle and engine manufacturing in Chennai by the second quarter of 2022.
Ford To Stop Local Manufacturing In India
Cabinet Approves ₹ 26,058 Crore Production Linked Incentive (PLI) Scheme For Auto And Drone Industry
Taking steps forward towards the vision of an ‘Aatmanirbhar Bharat’, Cabinet, has approved the PLI Scheme for Automobile Industry and Drone Industry with a budgetary outlay of ₹ 26,058 crores. The PLI scheme for the auto sector will incentivize high-value Advanced Automotive Technology vehicles and products. It will herald a new age in higher technology, more efficient and green automotive manufacturing.
Cabinet Approves ₹ 26,058 Crore Production Linked Incentive (PLI) Scheme For Auto And Drone Industry
Fuel Prices See Record Highs
The price of petrol in Delhi rose to its highest ever level of Rs 102.14 a liter and to Rs 108.19 in Mumbai, according to a price notification of state-owned fuel retailers.
Diesel rates too touched a record high of Rs 90.47 in Delhi and Rs 98.16 a liter in Mumbai. Prices differ from state to state depending on the incidence of local taxes.
Petrol, Diesel Soar To New Record Highs As Rates Hiked Again
High Fuel Prices Linked To Global Rates: Nirmala Sitharaman
Tesla Sets Shop India, Govt Offers Full Support For Manufacturing In India
The road transport and highways minister said that he is still in dialogue with Tesla officials regarding the company's demand related to tax concessions. Last month, the heavy industries ministry had also asked Tesla to first start manufacturing its iconic electric vehicles in India before any tax concessions can be considered.
Nitin Gadkari Asks Tesla To Make Electric Cars In India; Assures Full Government Support
Mercedes-Benz India Implements Direct To Customer Sales With ‘Retail Of The Future’ (ROTF) Business Model
German Luxury Carmaker Mercedes-Benz, implemented the ‘Retail of the Future’ (ROTF) business model, This ‘direct to customer’ model which was first announced in June 2021, was launched after the successful beta testing phase. With ‘Retail of the Future’, Mercedes-Benz India will retain the ownership of the entire stock of cars and retail them via appointed Franchise Partners, by invoicing them directly to the customers. Mercedes-Benz will also be responsible for processing and fulfilling the customer orders. With ROTF, there will be one nationally set price by the company, which will be uniform across the country.
