The Indian automotive sector has been the constant progression from the past few years with the introduction of new-generation utilities, technologies and facilities. The present year is most exciting and witnessed for more highlights and fewer hazards in the domestic market. The comprehensive levels of innovation and strategy in offering the models have received by the domestic manufacturers. There are big launches made by the auto manufactures in the country to increase the buyer’s potential as well as boost up the automobile business. Along with these, the automobile industry has faced a different kind of exciting incidents like the new rules from the government, recalling processes and new programs in this year. Following is the information of 2015 Automotive Industry highlights and Hazards.
Government’s FAME scheme:
To increase the presence of electric and hybrid vehicles (cars) in the domestic auto market, the central government started the new FAME (Faster Adoption and Manufacturing of Hybrid and Electric vehicles) scheme. It is one part of the NEMM (National Electric Mobility Mission) plan and with the scheme, all electric and hybrid vehicles to get incentives. As part of the scheme, the two-wheelers and cars are to be offered by the incentives up to Rs. 29,000 and Rs. 1.38 lakhs respectively and the government has to be invested around Rs. 795 crore for this scheme in the first two fiscal years.
Under this scheme only, Maruti Suzuki has imported the Suzuki’s technology of SHVS, a mild hybrid system for its products. The LCVs (Light Commercial Vehicles), three-wheelers and two-wheelers like scooters and motorcycles, to get incentives in the price range of Rs. 17,000 to Rs. 1.87 lakh, Rs. 3,000 to Rs. 61,000 and Rs. 1800 to Rs. 29,000 respectively. The government will offer Rs. 34 to 66 lakh incentives on the buses.
Registration ban of diesel vehicles:
Due to controlling the pollution levels, the Supreme Court has passed the new rule that is the heavy diesel vehicle registration ban in the capital city and NCR. As a trial basis, the plan is to be processed for three months, from 1st January 2016 to 31st March 2016. With the ban of over 2000cc diesel vehicles, the domestic and luxury carmakers, Mahindra, Maruti Suzuki to Mercedes-Benz are to be affected in Delhi NCR.
Make In India:
To encourage the domestic manufacturers, the present government has started the Make in India campaign. Many of the industries have influenced by this program, especially the automotive industry had the great impacts for local manufacturing and assembling vehicles. Through this program, the manufacturer’s production cost declined so that the retail price of the products automatically decreased in India. This program majorly supports the luxury car segment and the luxury car companies like BMW, Audi and Mercedes-Benz have started the production of cars in India.
Hyundai Creta- reaches 1lakhs orders:
Hyundai’s new compact SUV is Creta received many order bookings from the domestic market as well as the international markets. By the end of this year, the compact SUV is likely to be received 1,00,000 orders based on the current reports and within the less than 5 month period, the company has received 3,40,000 enquiries in which more than 70,000 are booking orders placed by customers. The Hyundai Creta has been receiving the highest competition from its segment products including the Mahindra TUV 300, Ford EcoSport, as well. Though, it is nearest to reach the milestone of 1 lakh booking orders in the short duration.
The Volkswagen scandal is the biggest issue in the global automotive Industry whereas the country is also affected. Due to the fitting of defeat regulator in the Volkswagen diesel vehicles, the company has recalled the 3.23 lakh vehicles in the domestic market after receiving the order from the Government. Based on the regulations from the central government, the ARAI has been submitted the investigation reports by testing all vehicles of the Volkswagen group. With a total issue, Volkswagen is looking for a new tagline as it has decided to discontinue its existing slogan of Das Auto. The domestic country is also to get the new slogan for Volkswagen by the starting months of the next year.
Maruti Suzuki’s NEXA showrooms-more buying experience:
These are the high range of outlets that provides new hospitality services than the regular showrooms across India. The Indian car manufacturer is planning to open approximately 100 NEXA showrooms in the country to provide premium retailing experience to the desirable customers. The NEXA outlets of Maruti Suzuki have decorated with the black and white colored themes and designed based on a monochromatic theme. These outlets are inaugurated by the company to retail the premium cars like Baleno and S-Cross.
The Maruti S-Cross is the first product has been selling through the NEXA dealerships and after that the newly released Baleno hatchback is also selling under the same network. In this year, these showrooms have witnessed for adopting the most of the customers with the premium cars so that the company has to increase the new NEXA network range in the domestic market for its upcoming premium products.
Major recalling processes from auto companies Honda, General Motors:
In the country, this year is witnessed for the many recalling and refitting processes from the auto manufacturers like Honda, Volkswagen, General Motors, as well under the SIAM’s recall policy. Honda has recalled a total of 90,120 diesel vehicles due to the defective fuel pipe, in which 64,428 of Honda City and 25,782 units of Honda Mobilio. The German company, Volkswagen has decided a recall of 3.23lakh vehicles whereas the US-based company, General Motors has committed to the recalling process of 1,01,597 Chevrolet Beat diesel vehicles due to the defeat clutch pedal.
Chennai Floods-up to $2.2 billion loss for Auto Industry:
Due to the heavy rainfall in Chennai and the surrounded regions of Puducherry, the Chennai-based automotive manufacturers are majorly affected. Based on the yesterday’s report from Economic Times, the country has estimated to receive more than Rs. 15,000 crore lose due to the floods in Chennai. When comes to the auto sector, the big auto companies like Hyundai, Royal Enfield, BMW, Ford India and Renault India are closed their total of operations in Chennai, which is also a major area for the auto component Industry. With the completely shutdown of manufacturing units for over a week, the automotive Industry is likely to hit up to $2.2 billion loss.
A range of premium launches including new models, facelifts as well as the special editions done by the automakers in the country
Mahindra TUV 300: It is a new compact SUV from Mahindra introduced a few of months back in India with a motto of the toughest utility vehicle and which has been receiving the many order bookings from the domestic customers.
Maruti Suzuki Baleno: A premium hatchback from the leading manufacturer is Maruti Baleno, which is one of the top-selling hatchbacks sells under the NEXA network. It may be exported to the Japanese market from the next month.
Renault Kwid: The smallest car from Renault India launched in the country with a low price tag of Rs. 2.56lakh (Delhi, Ex-Showroom) to beat the top two domestic automakers, Maruti Suzuki and Hyundai.