Auto sector News

In these 75 years of its journey, many major changes took place in the Auto Sector of India. In this segment, know how many people used to have cars or bikes at the time of independence, which has completely changed now.

The Auto industry asked for faster approval and implementation of the scrappage policy, said the sources They also urged the minister for incentives under the Scrappage policy Nitin Gadkari assured the auto industry that the policy will be approved soon

Exports of auto components witnessed degrowth of 3.2 per cent to Rs 1.02 lakh crore Slowdown in the domestic market also reflected on imports of component into India. Component imports fell by 11.4 per cent to Rs 1.09 lakh crore.

The company had sold a total of 13,626 units in the domestic and export markets in April 2019, Ashok Leyland said in a statement.

Vehicle registrations in the country declined 15 per cent on a year-on-year basis to 16.06 lakh units after two months of positive growth, data from Federation of Automobile Dealers Associations (FADA) showed on Tuesday. FADA's statement said that it looks forward to demand spurring initiatives in the Union Budget 2020 and specific initiatives for the auto industry based on its feedback for the faster revival of much-needed sustainable growth.

The new Scrappage policy aims at discontinuation of 15 year old Petrol vehicles and 10 year old  diesel vehicles from operating on the roads.

Auto sector has demanded that the GST should be brought down to 18 percent from 28 percent to reverse the consumption slowdown.

Mahindra and Mahindra said that as part of aligning its production with sales requirements, it would be observing No Production Days during the second quarter of the Financial Year 2019-2020.

Gadkari also said that that he has discussed the issue of GST reduction on automobiles with the Finance Ministry.

Finance Minister Nirmala Sitharaman also responded to a plethora of questions ranging from the slump in the economy to the slowdown in the automobile sector, among other political issues.

Ashok Leyland will observe 16 non-working in Ennore, 5 non-working days in Hosur 1,2 and CPPS, 10 non-working days in Alwar, 10 non-working days in Bhandara and 18 non-working days in Pantnagar.

The industry which is suffering from high GST rate and lack of adequate liquidity had recorded a slump of 18.71 per cent in July, the highest monthly sales de-growth in the last 19 years.

The industry has demanded that the GST should be brought down to 18 per cent to reverse the consumption slowdown.

The slowdown has forced the value-chain operators across the automobile industry to reduce production and downsize workforce.

Lately, all major OEMs, comprising passenger, commercial, two- and three-wheeler manufacturers, have reported huge decline in domestic sales.

According to Maruti Suzuki Chief Executive Kenichi Ayukawa, the government is sensitive to the implications of the auto sector slowdown and is taking steps to reverse it.

According to the Engineering Export Promotion Council (EEPC) of India analysis, the export market for auto manufacturers, along with their component vendors, has been depressed, in-sync with other key engineering export items from the country.

The automobile industry value chain includes parts manufacturers, OEMs, dealerships and workshops. The entire value chain is one of the largest employers in the country and has a substantial contribution to the country's GDP.

The auto sector is the worst-hit sector in the current slowdown and apart from huge inventory build-up, the companies are resorting to production shutdowns to cope up with poor sales.

Automobile sector has posted the worst sales in two decades in the month of July with some top passenger car makers even plunging to their worst show in about two decades.