NEW DELHI: Automakers have raised objections to the Niti Aayog’s proposal that a cess be levied on fossil fuel-powered automobiles to cross-subsidise electric vehicles, cautioning that it would hurt a manufacturing industry bringing in billions of dollars of investment and creating thousands of jobs. Central and state taxes on passenger vehicles in India add up to 70%, making this the highest in the world, the Society of Indian Automobile Manufacturers (SIAM) said, urging the government to utilise the extra cess, charge or taxes currently being levied on diesel vehicles to promote environment-friendly options, instead of imposing a new cess. The industry body recognised the need to incentivise and promote greener technologies, but said it would be too premature at present to further penalise the manufacturers of conventional vehicles. Passenger vehicles attract the highest rate of goods and services tax (GST) at 28%. In addition, a cess of 3-22% is levied on diesel vehicles, … [Read more...] about Auto companies have a problem with Modi government’s green Niti
Amid intense lobbying for a reduction in goods and services tax (GST), the government is expected to send a message that a tax cut is only possible if the compensation cess on luxury and sin goods such as tobacco, soft drinks and cars is increased or its coverage is expanded to include more products. Alternatively, states will have to forgo a part of the compensation from the Centre for any “revenue loss” since the kitty is already stretched. As part of the grand GST bargain, the Centre had agreed to compensate states for five years, if the annual rise in revenues was less than 14%. The law provides for payment of compensation only from a fund where the cess flows. While the Centre has budgeted to collect close to Rs 1-lakh-crore cess on sin and luxury goods during 2019-20, or around Rs 8,000 crore a month, the mop-up in August was Rs 7,273 crore. So, there is a possibility of lower than budgeted collections. In contrast, for the first four months of the year, the Centre … [Read more...] about GST relief for auto companies may raise burden on other goods
India’s top manufacturers of passenger vehicles and two-wheelers have announced factory shutdowns stretching over several days in the ongoing quarter, which could help them reduce unsold inventory in a weak market but make it tough for the automobile industry to achieve its production and growth targets. More than half a million passenger vehicles worth $5 billion (nearly Rs 35,000 crore) are lying unsold in dealerships at the beginning of June. In the two-wheeler segment, the number is as high as 3 million, valued at about $2.5 billion. Seven of the top 10 passenger vehicle makers, including Maruti Suzuki, Tata Motors and Mahindra & Mahindra, have announced plant shutdowns between May and June. While some have completed the process, it is either ongoing or scheduled to happen in the coming days for the others. “What’s the point in producing and pushing stock when the offtake is weak. We have calibrated our production based on demand in May and we will do so in … [Read more...] about Auto companies slam brakes on production
NEW DELHI: Using the “polluter pays” principle, the government has drafted a plan to impose a fee of Rs 12,000 on purchase of new petrol and diesel cars to raise money for incentivising electric vehicles (EVs) and battery manufacturing, under a new policy that is nearing finalisation. A note prepared by NITI Aayog after a meeting of top secretaries has proposed incentives of up to Rs 25,000-50,000 in the first year for those buying electric two-wheelers, three-wheelers and cars, top government officials told TOI. To ensure that the gains aren’t pocketed by automakers, officials have proposed a direct benefit transfer to EV buyers while offering km-based incentives for state agencies operating e-buses. The revamped policy, which will require ministerial clearance, has been drafted after Prime Minister Narendra Modi junked an earlier draft and asked bureaucrats to ensure that batteries were incentivised to lower costs instead of offering sops to automakers. Sources … [Read more...] about Govt may put Rs 12,000 levy on new cars to push e-vehicles
Monkeys were crammed into small rooms into which nitrogen dioxide was channeled. And humans too were exposed to higher levels of the same gas. The experiments were done on behalf of or sponsored by a research group of the German auto industry. This certainly conjures up terrible memories in the minds of many people who may think of the gas chambers in Auschwitz-Birkenau and elsewhere. Or they may think of the Nazi's T4 campaign during which 70,000 handicapped people were gassed. In short, memories of the darkest chapter in German history. Who would have thought that Germany's showcase industry could fall even deeper after Volkswagen's emissions-cheating scandal that started in the US and has since spread to other carmakers; or after revelations about massive collusion among German carmakers uncovered by Der Spiegel magazine last summer? Crisis rituals work splendidly Of course, you have to get all the details first to be able to assess what exactly happened to the humans … [Read more...] about Opinion: Car industry going from bad to worse?
CHENNAI: Martin Schwenk, Managing Director and CEO of Mercedes-Benz India on Thursday said plug-in hybrid electric vehicles (EV) present an alternative he considers more viable than conventional hybrid vehicles in the near-to-medium term till factors like infrastructure in India were better equipped to handle the requirements of EVs. "The electric vehicles (EV) segment is in its nascent stage," he said at the launch of the company's V-class Elite. "There is a lot of learning that needs to happen and we (Mercedes-Benz) are not in a rush. We want to see how our global portfolio develops because you need to have the right momentum in place. From an infrastructure and framework perspective too it is at a very early phase in India and even customers are not so focused on electric vehicles yet." He went on to add that the cost would be a factor that customers would consider when it comes to EVs and luxury car makers would have to ensure that the demand was enough to introduce these … [Read more...] about We are not in a rush to introduce EVs in India: Martin Schwenk, Mercedes Benz MD & CEO