SIAM – Maxabout News https://news.maxabout.com Latest Car & Bike News in India Wed, 13 Nov 2019 12:44:00 +0000 en-US hourly 1 https://wordpress.org/?v=4.8.9 https://news.maxabout.com/wp-content/uploads/2017/09/cropped-Maxabout-News-Favi-Icon-2017-32x32.png SIAM – Maxabout News https://news.maxabout.com 32 32 Auto Industry Slowdown: SIAM Wants Government to Slash GST to 18% https://news.maxabout.com/offbeat/siam-government-slash-gst/ https://news.maxabout.com/offbeat/siam-government-slash-gst/#respond Sun, 18 Aug 2019 07:13:22 +0000 https://news.maxabout.com/?p=517905 The stakeholders in the auto industry unanimously have requested the Government to cut down the rates of GST to 18%. The president of the Society of Indian Automobile Manufacturers (SIAM), Rajan Wadhera said in a statement that there is a major requirement to lower the rates of the GST to 18% from 28%. In an […]

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The stakeholders in the auto industry unanimously have requested the Government to cut down the rates of GST to 18%. The president of the Society of Indian Automobile Manufacturers (SIAM), Rajan Wadhera said in a statement that there is a major requirement to lower the rates of the GST to 18% from 28%.

In an official statement, he said – “Need for an immediate reduction in the GST rates has been agreed unanimously by all automobile manufacturers, including the two-wheeler OEMs. This was also reiterated at a recent meeting with the finance minister where all OEMs (original equipment manufacturers) participated”. Two-wheeler brands like the Hero MotorCorp have also nodded upon the idea.

There have been a number of reasons for this slowdown. First of all, the slump in our income growth and Non-Banking Financial Companies (NBFC) crisis is the reason. It is unlike the other cycles that happened due to the global crisis. Secondly, cost pressure has been witnessed as over the FY19-21, there will be a hike in prices from 13-30 per cent which will be due to safety, insurance and emission-related costs. From April 2020, India will upgrade to BS-VI from BS-IV which will also constitute in a price increase.

There has been an expansion in the size of the pre-owned market which as a result impacts the demand for new vehicles especially when there is a hike in prices going on. Also, the drop in the current cycle in gross and earnings before interest depreciation, and amortization (EBITDA) margins is huge. It’s the first time that the decline in EBITDA is higher than gross margin.

The auto industry is going through an unparalleled crisis which has caused a steep drop in sales over months now. Dealerships across the country have been closed, huge manpower has already been slashed, also the production of vehicles has also been decreased as there is a huge drop in the demand. On the contrary, the Finance Ministry said officially that the GST rate is already below expectations and a further reduction can complicate the situation.

Hyundai Grand i10 Nios Spotted
Hyundai Grand i10 Nios Spotted at a Dealership

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India is Now the World’s Biggest 2-Wheeler Market | Beats China https://news.maxabout.com/bikes/india-is-now-the-worlds-biggest-2-wheeler-market-beats-china/ https://news.maxabout.com/bikes/india-is-now-the-worlds-biggest-2-wheeler-market-beats-china/#comments Mon, 08 May 2017 05:30:49 +0000 http://news.maxabout.com/?p=13337 India is Now the World’s Biggest 2-Wheeler Market | Beats China Society of Indian Automobile Manufacturers recently announced that India has overtaken China in terms of two wheeler sales and comes out as the largest market for bikes and scooters around the world. Indian market registered a total sales of 17.7 million units in 2016, fetching […]

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India is Now the World’s Biggest 2-Wheeler Market | Beats China

Society of Indian Automobile Manufacturers recently announced that India has overtaken China in terms of two wheeler sales and comes out as the largest market for bikes and scooters around the world. Indian market registered a total sales of 17.7 million units in 2016, fetching over 0.9 million units more than the Chinese market (16.8 million units) . China saw a downfall in sales because some Chinese urban centers have banned the use of motorcycles.

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Honda Activa is the best-selling 2-wheeler in India

Year 2010 was a milestone year for Chinese market as they registered a sales of 27 million two wheelers while the sales felt considerably in next four years. High import duties led to a downfall of the two wheeler market in China. Not just that, around 200 cities have banned the use of motorcycles while few downtown areas have banned large displacement motorcycles to enter their premises. Cost effective Chinese cars are even a big reason into this decline.

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Bajaj Dominar 400

Two wheeler sales in India saw a different trend as people here are spared from all kinds of bans if they are riding a two wheeler. The sales have seen a rise since last few years and will reach even higher milestones are riding culture is flourishing at a higher rate in India. The bulk of yearly sales comes from four manufacturers namely Hero, Honda, TVS and Bajaj Auto. In India, the difference of prices in cars and bikes is still very high.

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2017 KTM Duke 390

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Most Talked-About Bikes in India

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