The week saw several important developments – from start of a new partnership to break-up of a promising one, from launch of a new SUV to a shocking rise in cess on big vehicles. Here is the complete list of the all stories that made headlines this week.
Cess on large vehicles increased to 25%
The finance ministry decided to increase the cap on cess on large cars to 25 percent from the existing 15 percent to put an end to the anomaly in pricing of such vehicles because of the implementation of the Goods and Services Tax (GST).
All cars and SUVs, which are bigger than 4 meters in length, could be slapped with an additional 10 percent cess. The GST Council which is meeting next month, will decide on the extent of cess, categories of cess (if any) and its implementation date.
Bajaj Auto partners UK’s Triumph Motorcycles
Bajaj Auto, the Pune-based maker of Pulsars and Avengers, joined hands with UK’s largest and one of world’s oldest bike makers Triumph Motorcycles for products targeted for India and the world markets.
The two companies will jointly develop mid-capacity motorcycles (350-650cc), primarily for the leisure rider category, which will be made at the Chakan factory of Bajaj near Pune. These bikes will compete against the like of the Royal Enfield range.
Tata-Skoda end alliance
Five months after signing a tripartite memorandum of understanding Tata Motors and Skoda Auto have decided to abort plans of jointly exploring the future of mobility solutions. Though Volkswagen was the third company in the partnership group company Skoda was the front company for the venture.
The alliance looked at tapping expertise of each other through sharing of technology and manufacturing. Joint product development besides sharing of next-gen technologies were on the cards. However the alliance had to be called off as cost challenges could be addressed.
Tata Motors and TVS Q1 results
Tata Motors posted a rise of 42 percent in net profit at Rs 3200 crore for the quarter June 30, helped by a one-time gain on account of changes made to the JLR pension scheme. There was a stand-alone net loss of Rs 467 crore during the same quarter.
Chennai-based TVS Motors posted a rise of 7 percent to Rs 130 crore for the quarter ended June 30, missing analyst’s expectations, as additional discounts hurt margins. The company further said it will launch a hybrid two-wheeler by end of this year and a electric scooter next year.
New Land Rover Discovery launched
Tata Motors-controlled luxury brand Land Rover launched the all-new Discovery at Rs 68.05 lakh (ex-showroom, India). The seven-seater SUV will be available in five variants and with petrol and diesel options, with the top-end variant costing Rs 1.03 crore.
The SUV gets a 3.0 litre turbo-petrol V6 engine that makes peak power of 340hp and a 3.0 litre V6 diesel engine that generates maximum power of 258hp. Both versions are mated to a eight-speed automatic gearbox.
Bridgestone to invest Rs 1940cr to hike capacity
One of India’s biggest tyre makers Bridgestone has lined up investments of Rs 1940 crore to ramp-up capacity and add more different-sized tyres to its portfolio.
The company will increase tyre making capacity by 15,000 tyres per day across its Pune and Indore plants bringing the total daily production from both plants to approximately 41,000 tyres by 2022. This will create jobs for 450 skilled workers.
Maruti Suzuki to revamp True Value
Maruti Suzuki, the country’s largest car maker, announced a complete revamp of True Value, its pre-owned car division. The Delhi-based company, along with its dealers, will set up 150 brand new True Value outlets by March next year and take its tally to 300 in the next 2-3 years.
These outlets will be digitally integrated through a portal so that customers can access details of all cars available at True Value outlets nationwide. A 376-point check will be carried out on all cars sold through True Value with a certificate issued by a certified engineer indicating the health of the car through a star rating process.
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