This week in Auto: Tata-VW stare at break up, GST pulls down prices

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With little headway in talks the Indo-German partnership of Tata Motors and Volkswagen has hurtling towards a break up. That news was out in open when reports started emerging about a likely break up. GST, meanwhile has brought good news to vehicle buyers with a lower tax translating to cheaper price tag. This and much more in the weekly review of the top automotive news of the week gone by.

The roll out of the much awaited tax reform Goods and Services Tax (GST) has led to a reduction in prices of cars, SUVs, bikes and scooters in the range of 1.8-14 percent. GST, which has replaced at least five older taxes, is in force from July 1.

Just few days before the onset of GST automotive dealers were forced to give hefty discounts to clear their old stocks which will get negatively impacted by the GST.

The ambitious partnership that looked to address future mobility needs and challenges is believed to have hit a dead-end with both Tata Motors and Volkswagen finding little synergies in the proposed tie-up.

Both companies which have been struggling against market leader Maruti Suzuki for the past several years were keen on developing cost-effective solutions as well as future technologies like electric powertrains and driverless cars.

Bajaj Auto, India’s third largest two-wheeler maker, has launched the Pulsar NS160, a younger sibling to the original Pulsar NS200, at Rs 80,648 (ex-showroom, Mumbai). The bike has a single cylinder 160cc engine that generates 15.5bhp of peak power.

It will compete in the premium segment of the below Rs 1 lakh category against Honda CBR 150, Yamaha FZ, Hero Xtreme Sport, Suzuki Gixxer and the Pulsar 150.

One of China’s biggest automobile companies SAIC announced its plans to enter the Indian market through a full-fledged manufacturing facility that will go on stream in 2019.

The company is in the process of finalising its manufacturing facility and is firming up its product strategy for the Indian market, details of which will be announced at a later stage. It will debut the British brand MG (Morris Garages), which it had bought some years ago.

Unhappy over the compensation package offered to them around 140 dealers and their employees of General Motors (GM) India staged a peaceful protest at the Jantar Mantar early in the week.

The US-based GM exited the domestic market after several years of unfruitful operation. Its business remained in the red despite multiple launches and several efforts of reviving it.

General Motors Logo

BMW India, the country’s second largest luxury car maker, launched the new avatar of its most successful model 5 Series priced at Rs 49.9 lakh (ex-showroom, Delhi). The 5 Series is one of the best-selling executive luxury sedans in the country.

The all-new BMW 5 Series will compete against the Mercedes-Benz E-class, Audi A6, Volvo S90 and the Jaguar XF. BMW claims that the 5 Series is the market leader in its segment. The car will come in four variants, three diesel and one petrol. It will be available post July 1.

BMW 530e iPerformance