by admin | May 25, 2021 | Corporate, Corporate Governance, News, Politics
Nitin Gadkari
New Delhi : Union Transport Minister Nitin Gadkari on Thursday exhorted the automobile industry to develop technology to run vehicles on alternatives to petrol and diesel like electricity and bio-fuel.
He also asked them to come forward and invest in the country’s public transport system.
“There is economic viability in new technology. Let us plan for the next 25 years. I would strongly urge the sector to invest in public transport and develop electric bikes, electric cars…. I urge automobile companies to diversify in alternative fuel,” Gadkari said here at the 57th Society of Indian Automobile Manufacturers (SIAM) Annual Convention.
He said the government is planning to bring second generation ethanol as an alternative fuel.
Discouraging automobile manufacturers to make any more diesel-run vehicles, he said it was adding to the huge import costs and pollution levels, which the government was committed to bring down.
Gadkari said the companies which would make use of new technology to innovate on alternative fuel will benefit in the longer run.
He said the government’s policy was “crystal clear” on this.
“Pollution and high import of petrol, diesel are challenges. Second generation ethanol with the use of bamboo, compressed natural gas (CNG) can act as substitutes for these imports and bring down the import cost.”
“Alternative fuel like Liquefied natural gas (LNG) is the future fuel. CNG is also good for reducing pollution. We have abundant coal reserves to make methanol,” he said.
“I have seen engines running on methanol in foreign countries. The companies thus should spend a part of their profits on research on such fuels,” he added.
Urging the industry to invest in public transport, he said the rural and agricultural sector would benefit with this.
In a lighter vein, the minister also said the sector, which has 22 per cent share in India’s GDP, if continued to grow at the same rate for the next three years, the government would have to add another lane in national highway.
“I want growth rate of the sector be thus less.”
He also said the automobile companies should view the sector with an integrated approach — from fuel, parking, engineering to even driving training centres.
“The companies can contribute in skill development with driving training centres. Diversification and expansion is the key,” he said.
Gadkari also acknowledged the sector’s contribution in exports, job creation and growth of the country.
He said because of the abundant manpower, reasonable costs, plenty of raw material availability in the country, India can be developed as an export base for automobiles.
—IANS
by admin | May 25, 2021 | Opinions
By Venkatachari Jagannathan
Chennai:(IANS) Indian passenger car makers were under legal and regulatory spotlights in 2015, while for the automobile industry, in general, it was a year of mixed fortunes in terms of sales with growth rates ranging from double digits to the negative, experts maintain.
The apex court ordering ban on registration of diesel passenger vehicles of over 2,000 cc engines in the national capital region till March 2016 and the Delhi government’s proposal to allow odd and even number cars to ply on alternate dates, shocked the car makers.
But the Volkswagen emission scandal is probably the strongest jolt to have hit the automotive industry worldwide which had its impact in India as well.
The central government on its part introduced new crash test norms for cars from 2017 onwards.
“The year 2015 saw a spill-over of the safety concerns in Indian manufactured cars that were raised in early 2014. Most of the severe car crashes around the country were in the spotlight as hard reminders of the substandard safety norms that cars in India need to adhere to,” Collin Noronha, senior research analyst, Automotive & Transportation Practice at Frost & Sullivan told IANS.
According to Noronha, the government stipulating stringent crash test norms for all new cars from October 2017 is a giant leap for the Indian automotive industry.
For upgrades of existing models, the deadline will be from October 2018, he said.
“Despite the relatively weaker emission norms in India as compared to those in markets like the United States of America and the United Kingdom, action initiated by the Automotive Research Association of India (ARAI) has eventually led to Volkswagen Group India recalling approximately 323,700 cars fitted with 1.2-litre, 1.5- litre, 1.6-litre, and 2.0-litre EA 189 diesel engines that were manufactured and sold between 2008 and November 2015,” Noronha said.
Terming 2015 as a volatile year for the passenger vehicle segment Noronha said some segments showed strong gains in two to three months since January 2015.
The market is generally evolving in preference from small hatchbacks to the premium ones. Queried about the trend in the car segment, he pointed out the increasing electronics content in the compact segment.
“For the two wheelers segment 2015 was a mixed year growing by just two percent ending November 2015,” Yadvinder Singh Guleria, senior vice president-sales & marketing, Honda Motorcycle & Scooter India told IANS.
The automatic scooter segment logged 12 percent growth.
The overall motorcycle segment continued its downward trend with the two percent de-growth, he added.
“We expect the industry to grow by 3-5 percent subject to variables like monsoon, introduction of GST (Goods and Services Tax) and its timing. Scooters will continue to lead this growth,” Guleria said.
As for the commercial vehicles sector, Muralidharan R., director, corporate ratings with Fitch told IANS: “The MHCV (medium & heavy commercial vehicles) sales registered a strong year-on-year growth of 31.9 percent during January-October 2015, reversing falling sales over the last two years. However, sales volumes of the light commercial vehicles (LCV) fell by 6.1 percent.”
He said the resumption of mining activity along with green shoots in the manufacturing sector growth in second half of 2015, though erratic, has been positive for the sector.
Also the new regulations which make anti-lock braking system (ABS) and a speed-control devices mandatory for trucks (produced after October 2015 and sold after March 2016) is also likely to have contributed to additional sales with some truck/ fleet operators advancing their purchases,” Muralidharan said.
“Fitch expects MHCV to continue to post strong growth (around 10 percent) in 2016. We however expect LCV demand to remain weak during first half of 2016 before improving in second half of 2016,” he remarked.
Highlights of 2015:
Minority shareholders of Maruti Suzuki India gave green signal for sourcing cars from Suzuki Motor Gujarat Pvt. Ltd. (SMG).
Jan Dhan Yojana to make many people loan worthy to buy two wheelers.
Higher pension for ex-servicemen, implementation of 7th Pay Commission expected to drive vehicle sales in 2016.
Hero MotoCorp unveiled two 110 cc scooters completely developed in-house.
Hero MotoCorp starts manufacturing operations in Colombia.
TVS Motor Company to expand its Tamil Nadu’s Hosur at an outlay of Rs.350 crore.
(Venkatachari Jagannathan can be contacted at v.jagannathan. This is a part of a series of articles from IANS that look back at the year that was for a variety of subjects, running up to the New Year)
