Here is the full list of key developments from the automotive space this week
Several key developments in electric vehicles space kept the auto industry revving, even as there were no new launches in the segment. The theme was dominant even at the Frankfurt Motor Show where leading carmakers announced commitment for electric mobility in the future. Here is the full list of key developments from the automotive space this week.
Suzuki Motor Corporation along with Denso and Toshiba will invest $180 million (Rs 1,150 crore) in setting up a battery pack manufacturing plant in Gujarat that will supply to electric and hybrid cars starting 2020.
In addition, with a total installed capacity of 750,000 units a year Suzuki also announced new investments of Rs 3,800 crore in setting up a third plant in Gujarat. The plant presently has a capacity of 250,000 units and two more plants with equal as much capacity each are set to come up.
Electric vehicles dominate Frankfurt Motor Show
The concept of electric mobility dominated the theme of biennial International Motor Show in Frankfurt, Germany. From Volkswagen (VW) to Renault-Nissan to Mercedes-Benz companies made a beeline in making a series of announcements on electric vehicle plans.
While VW said that it will launch 300 electric vehicles in the next 13 years Renault-Nissan said it will launch 12 electric vehicles in the next few years. Audi and Mercedes showcased some electric vehicle concepts that could be possibly.
With rise in cess on large cars Honda and Toyota raised prices of their cars thus passing on the hike. The cess of 2, 5 and 7 percent was over and above the goods and services tax (GST) and also the cess levied at the GST roll out.
While Honda increased prices of the City, BR-V and CR-V up to a maximum of Rs 89,000 Toyota raised prices of the Etios, Corolla, Innova Crysta and Fortuner by up to Rs 160,000. The revised prices were brought into effect from September 11.
New bus orders could dry up
New bus orders could potentially run the risk of hitting a slowdown from states which either have announced a farm loan waiver or are contemplating it. More than Rs 108,000 crore in farm loans is set to be waived off by about half a dozen states.
STUs (transport buses bought and owned by the state) form 40 percent of the total bus sales of the industry. In many cases states have appeared keen to allow private companies manage and run the transport services within the boundaries of municipal corporations as many STUs have run up huge losses.
India’s burgeoning used-car market saw sales of 3.6 million units last year, recording a growth of 9 percent over the previous year helped by a growing class of first-time buyers. The growth came despite the negative impact of demonetisation in November, which as per a study done by Indian Blue Book released by Mahindra & Mahindra.The new car market during the same period grew by 9 percent to 3.04 million units from 2.78 million units, as per data shared by the Society of Indian Automobile Manufacturers.