This week in auto sector: Govt removes 2030 deadline for e-cars; car sales rise 7% in December

Government formally came out with a breather for the industry regarding the deadline for electric cars last week, bringing relief for several automakers who were struggling to chart out their plans. With added time on hands, automakers can now focus on the next immediate challenge of Bharat Stage VI norms which will kick in from 2020. This, and much more in the weekly round-up of automobile news that made headlines this week.

Minister of State for Heavy Industries Babul Supriyo tabled a written statement in the parliament stating that at present there are no plans under consideration for vehicles to go all-electric by 2030.

Union Minister Piyush Goyal had last year said that India should look to having an all-electric car fleet by 2030. This was actively supported by Minister of Road Transport and Highways Nitin Gadkari, who said that the automotive sector should look at clean and alternative fuel to reduce dependence on imported fuels.

The Tesla Roadster electric vehicle is displayed during press days at the North American International Auto Show in Detroit, Michigan.

With the exception of Maruti Suzuki, Tata Motors and Honda, all other car makers either posted a decline or reported a fall in sales last month as dealers refrained from taking new stock just before the start of the New Year.

Seven of the top car makers, who control 98 percent of the total monthly passenger vehicle volume, reported a growth of seven percent to close the last month of 2017 at 2.17 lakh units as against 2.02 lakh units sold in the same month in 2016.

Interior of Hyundai Creta.

Kia Motors India (KMI) appointed Kookhyun Shim as the Chief Executive Officer (CEO) and Managing Director (MD). Shim will be responsible for driving Kia Motors’ expansion in the Indian market. Kia will be launching its first locally produced car in the second half of 2019.

Shim will play a leading role in ensuring KMI’s projected timeline and schedule of operations is achieved. He will also oversee the construction of Kia Motor’s first manufacturing facility in India. Kia’s future development in the Indian market will be supported by a USD 1.1 billion investment.

Kookhyun Shim, Managing Director and Chief Executive Officer, Kia Motors India.

Commercial vehicle market leader Tata Motors has formed an alliance with Canada-based Westport Fuel Systems Inc to source Bharat Stage VI type engines for its CNG-fired range of trucks and buses.

The development and supply agreement with Tata Motors is for its four and six-cylinder natural gas spark-ignited commercial vehicle engine family. As for the diesel range the Mumbai-based company will source BS-VI engines from Cummins.

Tata Motors Ultra.

Growth in demand for luxury cars beat growth in the mass market cars last calendar year as spooked buyers rushed to showrooms to beat the impending hike following implementation of the Goods and Services Tax (GST).

The segment is estimated to have sold a minimum of 38,700 units spread amongst six car makers, marking a growth of 15 percent last year. Mass market cars segment comprising Maruti Suzuki, Hyundai among other grew by just nine percent to 3.20 million units in 2017.

The newly launched Mercedes-AMG GLA 45 4MATIC Aero Edition in 'designo MAGNO' paint finish.