[arin_12]

Meanwhile MG Hector is oversold. Booking is closed. They have received over 20,000 bookings for the SUV in 45 days since opening bookings.


https://economictimes.indiatimes.com...utm_content=23

[volkman10]

Bosch announces 5-day production cut at TN plant.

Production will be suspended to adjust production to meet the demand for products and to avoid unnecessary build-up of inventory,

Link

[rovingeye]

Starting to receive some irrelevant resumes for a job post that's live on various platforms for my company. Irrelevant to me, but relevant to this thread.

The resumes are from project managers and program managers from mechanical engineering backgrounds working in auto-ancillary industries, desperately looking for jobs.

With credit not easily available any longer, due to the unravelling of the NBFC saga and ominous news starting to trickle in about contagion in banks, the industry is really struggling.

[maven]

The effect maybe compounded by a consistent uptrend in prices. The closure of bookings in case of MG due to unexpected high demand does to some extent point that customer will flock when they perceive a strong value in pricing vs features offered.

On a different note, In a country with already overcrowded roads less cars being sold maybe a good thing in some sense.

[Mukund]

Nissan to cut 10,000 jobs worldwide

Japanese car giant Nissan plans to cut more than 10,000 jobs around the world as part of efforts to turn itself around, Kyodo News agency said Tuesday (July 23), citing company sources.

The additional cuts come on top of the 4,800 jobs Nissan announced in May it was trimming from its global workforce of around 139,000.

Nissan's net profit fell to a near-decade low in the last business year and it has already warned of "a difficult business environment" for the next 12 months.
The company has been hit by a fall in sales in the United States and Europe and is still reeling after the shock arrest of former boss Carlos Ghosn on financial misconduct charges.

It has also been facing tensions with its French partner Renault, which owns 43 percent of the Japanese manufacturer, and is undergoing an overhaul intended to strengthen governance at the firm.

Source.
To add a little more context, Nissan employs a lot of people in India as well.

[Ithaca]

Quality of vehicles has improved causing customers to avoid spending money to replace their reliable vehicles.
Average vehicle prices have gone up and interest rates have inched upwards. Customers have to rationalize purchasing new vehicles in this environment when a trade war looms, well paying jobs are uncertain & consumer confidence is taking a beating.

‘We’re Full,’ Car Dealers Say as Auto Sales Slow After a Long Boom
NY Times 23.07.2019

Car dealers around the country said that the upgrade cycle they rode to rich profits in recent years appears to be ending and that they are seeing fewer buyers despite offering discounts and other incentives. So, dealers say they are ordering fewer vehicles from manufacturers.

“We are turning down cars and are being more picky on the cars we stock,” said Brian Benstock, general manager of Paragon Honda in New York City. “We just can’t take more. We’re full.”

A slowdown in auto sales could weigh on the United States economy. The auto industry is the largest manufacturing sector and makes up about 3 percent of gross domestic product. Automakers, parts manufacturers and dealers directly employ more than two million people. Car companies spend billions of dollars every year on research and development.

In the United States, after many years of strong sales, many consumers are driving vehicles that don’t need to be replaced. Newer cars and trucks tend to be more durable and hold up longer than cars made even a decade or two earlier.

At the same time, the average price of new vehicles has risen to around $35,000, while interest rates on auto loans have edged higher. That means people have to be willing and able to spend more to buy a new car than they were just a few years ago.

“It’s a double whammy,” said Mike Jackson, chairman of AutoNation, the nation’s largest chain of new-car dealerships. “Customers are having monthly payment shock.”

The slump in car sales has already forced some companies to cut production and jobs. General Motors recently stopped making cars at a plant in Lordstown, Ohio, that made the Chevrolet Cruze and is winding down manufacturing at another factory in Detroit. Honda recently ended a shift at its plant in Marysville, Ohio, that makes its Accord sedan and other models.

What is perhaps most worrying for the industry is that sales of larger vehicles — S.U.V.s and trucks — that had more than made up for a recent collapse in purchases of sedans, are showing signs of strain.

Source: N Y Times

[PGA]

An amusing reason for downturn. Hope this is not the case with us too. MS Excel can play havoc with finances and economics even in the hands of experts.

https://www.nytimes.com/2013/04/19/o...2fG6WOx9A59SK8

[RM Motorsports]

Indian Auto Parts Makers Warn Of 1 Million Job Cuts If Slowdown Continues

The auto parts industry could be forced to slash a fifth of its 5 million (50 lakh) or so workforce if the slowdown in vehicle sales continues, the president of the country's largest industry group for auto parts makers said.
India's auto industry is in the middle of one of its worst slumps. Passenger vehicle sales fell 18.4 per cent in the first quarter, and monthly passenger vehicle sales in June fell by the biggest margin in 18 years.

https://www.ndtv.com/business/as-aut...om=home-livetv

[srini1785]

There are some issues with government policy. First, there is no clarity on the issue of banning diesel engines. Second , no clear policy on the shift towards Electric vehicles. Third , No clear policy on improving infrastructure on public transport systems.

Now , more than ever, govt stand on these issues should be made clear. Auto companies worldwide are unclear which way forward and so are not investing much into R&D. Public demand is also low considering the above factors. There are rumors that FC for 15 year old Diesel vehicles would not be renewed which makes them scrap.

[volkman10]

India's largest PV manufacturer reports a 27% drop in profits for Q1 2019, though it beats analysts predicting a more grim picture.

Positives:

- Maintained margin above 10 percent level despite subdued environment.

- Numbers were ahead of estimates - profit of Rs 1,975.3 crore and Revenue during the quarter was Rs 19,719.8 cr.

Link

[Sk8r]

Just when we thought what could go worst for the Indian automobile market, the road transport ministry is looking to increase the registration charges across segments for petrol and diesel powered vehicles.

Source : https://m.timesofindia.com/india/hug...w/70403813.cms

[RM Motorsports]

Originally Posted by Sk8r

Just when we thought what could go worst for the Indian automobile market, the road transport ministry is looking to increase the registration charges across segments for petrol and diesel powered vehicles.

Source : https://m.timesofindia.com/india/hug...w/70403813.cms

This is absolutely crazy.

[srini1785]

Originally Posted by RM Motorsports

This is absolutely crazy.

There is method in madness. The last line holds the key to this craziness. Govt policy guidelines are getting more clearer now.

[jailbird_fynix]

Slowdown gnaws deeper into Maruti Suzuki as 3 Japanese Directors resign after dismal Q1 results, stocks get restricted & initial plan to double production capacity gets dropped

• Maruti Suzuki’s profits fall for the 4th consecutive quarter to its lowest in 3.5 years.
  
  The net profit for the April-June quarter fell more than 27% from a year earlier. Revenue at the local unit of Japan’s Suzuki Motor dropped more than 14%, the steepest decline since December 2011, even as vehicle sales slid 18%. “We don’t see any positive signal in the marketplace that will give a sense of optimism in the future. We will wait and watch.” - Senior Executive Director, RS Kalsi.
  
  
• The automaker said it would restrict stocks at dealerships to equivalent of 30 days’ sales despite the upcoming festive season.
  
  
• Suzuki Motor Corporation has decided not to double the production capacity of its fully owned factory at Gujarat to 1.5 million units as initially planned. If Suzuki requires additional capacity in the future, it could tap into one of Toyota Kirloskar Motor’s plants in Bidadi. By the end of this fiscal, plant-I’s 3rd assembly line with a capacity of 250k units will be ready for production.
  
  
• In a bid to reduce the risk from currency fluctuations, Maruti Suzuki has decided to fully pay royalties to parent Suzuki Motor in rupee terms. At present, 45% of the royalties is paid in rupee terms, or without adjusting to exchange rates. By 2021-2022, this would become 100%.

Source - ET Auto, Rushlane

[rdst_1]

Originally Posted by srini1785

There is method in madness. The last line holds the key to this craziness. Govt policy guidelines are getting more clearer now.

It would have made sense if there were viable options for those cars and their charging mechanism in India and people were not buying them. Presently, that is not the case and hence your deduction doesn't hold ground. Such measures only make sense if the infrastructure is already present to make electric cars a viable alternative. Government policies should be in relation to the ground realities and not based on some dream they have without actually working towards fulfilling that dream.
All this is nothing but a way to make up for the money being lost due to slow sales and as usual the brunt will be borne by the middle class.