Railways defers 15% freight surcharge, ups number of rakes for auto sector

For the beleaguered auto sector, which is looking to cut costs, the railways has decided to offer more rakes for the transportation of automobiles

The railways has deferred its busy season surcharge of 15 per cent on freight and hiked the number of rakes to be provided for the auto sector in a bid to increase freight loading, which is likely to take a hit due to the economic slowdown.

The national transporter on Thursday announced that it was suspending its busy season surcharge of 15 per cent, which is levied between October 1 and June 30, for the current season. “Considering the current economic scenario, to give a boost to the industry and freight, the railways has taken measures to facilitate industry, especially in reducing rail transport cost,” Railway Board Member (Traffic) P S Mishra told reporters. Additionally, a further waiver of 5 per cent will be given on loading mini rakes or smaller parcel size.

For the beleaguered auto sector, which is looking to cut costs, the railways has decided to offer more rakes for the transportation of automobiles. Earlier, it used to provide eight auto rakes, which has now been hiked to 26 and the national transporter has plans to provide as many as 50 rakes to the sector to transport their goods by this year end. “This is being done on the request of the auto sector,” Mishra said…

States rule out GST rate cut on automobiles amid grim revenue situation

Says slowdown in sector not linked to GST

Key states have expressed reservations on a cut in the goods and services tax (GST) rate for the auto sector because of the grim revenue situation, after the fitment panel refrained from recommending any such reduction.

Facing a deepening slowdown, the auto sector is pinning hopes on the GST Council meeting on September 20 for a GST rate cut from 28 per cent to 18 per cent. However, states including Bihar, West Bengal, Kerala, and Punjab are of the view that the slowdown in the auto sector is not because of the GST rate but structural issues in the economy.

“Bihar will not support any rate reduction on the auto sector, because the revenue position does not allow this,” said Sushil Modi, deputy chief minister, Bihar. Sushil Modi even ruled out supporting the sector by abolishing the cess component. “Where will the Centre get funds to compensate states? The revenue position is grim,” he said. The fitment committee in its meeting last week had stated a potential revenue loss of around Rs 50,000 crore annually in case the rate was reduced from 28 per cent to 18 per cent.

Auto industry fears collapse, Nitin Gadkari offers comfort at mega meet

With auto sales sliding for over 13 months now, industry captains went all out to demand a cut in goods and services tax as the only way to revive demand

This may be an odd time for the automobile industry to gather under a common roof to discuss a “new era”, but that exactly was the theme of the much awaited annual convention for the sector held in the capital on Thursday.

Around 1,300 delegates from vehicle, engine and component manufacturing companies were in attendance at the 59th Annual Convention of Society of Indian Automobile Manufacturers (SIAM) —Moving into a new era of auto industry. With auto sales sliding for over 13 months now, industry captains went all out to demand a cut in goods and services tax (GST) as the only way to revive demand.

Compared to previous years, the attendance at the SIAM meet was muted, in sync with the overall gloomy mood. “My company’s head of sales thought it would be more efficient to use the time meeting dealers rather than participating in a conference which would have no outcome,” said a senior executive of a carmaker.

“The Indian automotive growth story is about to collapse. The customer is confused,” Guenter Butschek, CEO & MD at Tata Motors said. Butschek has reasons to worry. Passenger vehicle sales at his firm had more than halved in August compared to last year….

‘Best time to buy diesel car’: Companies pitch offers as BSVI norms near

Ahead of the BSVI norms that take effect on April 1, 2020, passenger vehicle makers are pulling out all stops to woo the buyers in a bid to beat the price hike of 8-15 per cent on diesel models

If someone is looking at buying a diesel car, there can’t be a better time. Ahead of the BSVI norms that take effect on April 1, 2020, passenger vehicle makers are pulling out all stops to woo the buyers in a bid to beat the price hike of 8-15 per cent on diesel models.

Based on the engine size and body type, the gap between the acquisition cost of a diesel vehicle and its gasoline counterpart, which is close to Rs 110,000 to Rs 115,000, is expected to go up to Rs 170,000 to Rs 200,000 once the new emission norms kick in.

Depending on the make and model, buyers of diesel variants can avail of several benefits ranging from a hefty exchange bonus, cash discounts, and extended warranty. The offers come amid one of the worst and prolonged slowdowns that the automobile industry is witnessing. Auto sales in India have been on a decline for the past 13 months. Companies are hoping to minimise the decline in volumes with the sales push during the festive season. The two-month-long festive season began with Ganesh Chaturthi on Monday.

“I think, this is best time to buy a BSIV diesel car,” said Shashank Srivastava, executive director, sales and marketing, Maruti Suzuki India. Rajan Wadhera, president automotive sector, Mahindra and Mahindra, also agreed. If one is looking to buy a diesel vehicle, personal or commercial, the time is now,” said Wadhera.

All New Santro: Everything we know so far about Hyundai’s next-gen car

The name of the new car, which will be officially launched in New Delhi on October 23, is ‘All New Santro’

Korean auto major Hyundai on Tuesday showcased a next-gen Santro, which was the company’s first product in India way back in 1998. The ‘tall boy’ was Hyundai’s most popular product name in India. The name of the new car, which will be officially launched in New Delhi on October 23, is ‘All New Santro’.(Automobile)

Booking starts tomorrow with Rs 11,100 for first 50,000 customers.

Here are the key takeaways:

— 66.6 per cent of five million voted for the name

— Six key pillars for New Santro include style, tall boy design, comfortable and premium cabin, new age technology, customer-centric safety

— Company claims mileage of 20.3 kmpl (MT/AMT)

The original Hyundai Santro was launched on September 23, 1998. Two years later, Hyundai set up its base in India with an investment of $614 million, which was the biggest investment to have been made by any Multinational company in the Indian automotive sector till then.

The company had invested in Sriperumbudur near Chennai, Hyundai’s largest plant outside of Korea then.

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