[anjan_c2007]

The Society of Automobile Manufacturers Association (SIAM) way back in 2017 demanded that all 15 year old automobiles be scrapped to promote clean environment and clean air all over the country. Yes, SIAM was fully committed to "clean air" as it appeared way back then and the Ministry of Road Transport and Highways (MoRTH) was on a high on the vehicle scrapping policy since May 2016 in tow with the SIAM, after releasing its draft notification about the Voluntary Vehicle Fleet Modernisation Programme (V-VFMP).

Flashback 2017 (Indian Express of 07.09.2017)

Auto makers demand ban on 15-year-old vehicles to cut pollution

Auto industry body SIAM on Thursday asked the government to ban vehicles that are 15 years old in the country to reduce pollution. The industry body urged the government to come up with a legislation to ban such old polluting vehicles across the country.

“Auto industry is doing a lot of work to reduce pollution. We are working to move to BS-VI emission norms. In order to reduce pollution, we request the government to ban vehicles which are 15 years old,” SIAM President Vinod K Dasari said here.

Speaking at the annual convention of SIAM, he also asked the government to create a national automotive board and to increase design capability which would aid Make in India programme. Dasari also said the auto industry has been going through one of the most challenging and disruptive times due to frequent changes in policies for the sector.

Full Indian Express report on this link:

https://indianexpress.com/article/in...ution-4832729/

So genuine and committed were they it appears towards a clean environment ! The last sentence in the text above shows that the auto industry was facing one of the most "challenging and disruptive times" due to frequent changes in policies for the sector. Policy is a Finance Ministry and MoRTH domain where SIAM plays the obedient schoolkid. The Ministry of Heavy Industry used to be pivotal for the auto sector since many decades after Independence, but since the last few years it has almost been muted. To overcome such challenges and disruptions, SIAM recommended scrapping of 15 plus year old vehicles in 2017 to the government, solely to prop up their sales at the expense of vehicle owners, who happen to be the favourite whipping boys both for the SIAM, Finance Ministry and MoRTH.

Now the U-Turn by SIAM of 2021 !

In a Times of India report today (26.08.2021) two of the seniormost members of SIAM, who are auto industry mandarins have expressed their concern and displeasure over taxes and emission norms. The higher price tags with the implementation of the new safety and emission norms have rattled them, as their sales are not moving anywhere northward as expected. So in 2021, their commitment towards a clean environment takes the backseat.

Government and auto industry czars spar over taxes, emission norms

Industry stalwarts such as Maruti chairman RC Bhargava and TVS Motors promoter Venu Srinivasan complained that the industry was being ignored and high taxation and stricter safety and emission norms have made their products expensive and out of bounds for the common man.

Bhargava said apart from the mandate of transition to cleaner transition to cleaner BS6 vehicles, cost pressures on vehicles through safety and modern features, much in alignment with standards in Europe.

“If we follow all those European standards with the cost, which are involved, how do we make these vehicles affordable to the much, much lower levels of incomes that exist in India?” Bhargava said.

I think these aspects are often ignored when we make our plans.We tend to forget customers. We’ve always forgotten customers in the centralised planning system because the customer didn't matter,” he said.

Full ToI report on this link:

https://timesofindia.indiatimes.com/...w/85641957.cms

Maruti's Bhargava and TVS' Srinivasan express concern about the price + GST on new cars impacting the much lower levels of income. Bhargava goes further to say that centralised planning system forgets customers, who don't matter. Is this gentleman concerned about the lakhs from the low income level population, who may have to scrap their automobiles (a source of livelihood for many) in view of the new scrapping policy which is tailormade to suit the SIAM, Finance Ministry and the MoRTH ?

SAIM's main agenda is to push sales and more sales and have all high and towards the ceiling, moving auto sales graphics in their boardrooms by whatever means possible. No doubt, the auto industry is highly taxed but we can see through the games of the SIAM with its U-turn from 2017 to 2021, when now two of its most senior members decry the emission norms.

The U.K. will by 2025 implement the Euro VII norms for which detailed specifications are to be released very soon. Our SIAM is groaning under pressure and pain with the BS VI blow and talk about any BS VII norms will derail all their plans.

[shortbread]

Bhargava and Suzuki India will complain about anything that diverts from their status quo, building and selling cheap small light petrol cars using the same tech. An effective scrappage scheme for Maruti is replacing old Maruti with the same new ones.

If they had it their way India's top selling car would still be the carburetted 4 speed 800. The Indian govt. continues to throw spanner in the works by introducing stricter emission/safety norms. What a bummer?

Suzuki effectively dealt with regulations in wester markets by simply quitting them altogether. Eg. They do not sell passenger variant of the Jimmy in US or Europe.

The Indian market is their umbilical cord, if they struggle to keep up with stricter environmental and safety regulations here, then Suzuki the car maker is good as dead.

[saikarthik]

Industry stalwarts such as Maruti chairman RC Bhargava and TVS Motors promoter Venu Srinivasan complained that the industry was being ignored and high taxation and stricter safety and emission norms have made their products expensive and out of bounds for the common man.

I can understand the pain of consumers on high taxation, but it's clearly a joke when they say sticker safety and sticker emission norms are not good in one hand and on another to help environment.

[condor]

Originally Posted by anjan_c2007

Now the U-Turn by SIAM of 2021 !

Anjan, this one does not look to be an official SIAM statment/stand. More of personal statements by Maruti and TVS bosses.

[anjan_c2007]

Originally Posted by condor

Anjan, this one does not look to be an official SIAM statment/stand. More of personal statements by Maruti and TVS bosses.

@condor this was in fact a SIAM seminar where two of its senior most members were speaking.

Revenue Secretary Tarun Bajaj, speaking at a Society of Indian Automobile Manufacturers seminar recently, hinted the government may be open to the possibility of lowering taxes. "I would be very happy to engage with you to see what we can do even on (GST) tax rates, what is the tinkering we can do to see to it that certain (vehicle) segments get the encouragement they deserve," he said.

Hence, prior concurrence of SIAM office bearers would be very necessary for raising such a common matter of concern before the Union Revenue Secretary in their own seminar.

The news link about this SIAM event uploaded by HT Auto this morning :

https://auto.hindustantimes.com/auto...950318291.html

The other ToI link from today in post #1 states about these deliberations during an industry event.

[Lalvaz]

Originally Posted by anjan_c2007

Now the U-Turn by SIAM of 2021 !

In a Times of India report today (26.08.2021) two of the seniormost members of SIAM, who are auto industry mandarins have expressed their concern and displeasure over taxes and emission norms. The higher price tags with the implementation of the new safety and emission norms have rattled them, as their sales are not moving anywhere northward as expected. So in 2021, their commitment towards a clean environment takes the backseat.

At the end of the day, both the gentlemen are businessmen and are primarily concerned with their sales and profits. If increased taxes and more stringent emission norms or safety features leads to higher car prices, and hence lower sales, then they will do their best to safeguard their turf. What is wrong with that? IMO, they would be failing in their role as businessmen, if they did not even attempt to highlight and fix the problems affecting their industry.

Originally Posted by anjan_c2007

Is this gentleman concerned about the lakhs from the low income level population, who may have to scrap their automobiles (a source of livelihood for many) in view of the new scrapping policy which is tailormade to suit the SIAM, Finance Ministry and the MoRTH ?

Perhaps he's not concerned about the impact on livelihood for the poor masses due to the scrappage policy, but then, he isn't the policy maker. That is NOT his domain, and just because SIAM supported scrapping since it suited him, doesn't mean they have a duty to look at the cons of the scrapping policy. Of course they will play the system to suit their convenience. If you entrust a fox to tend to the hens, don't blame the fox for the resultant carnage. The real duty of evaluating the pro's and con's of any automotive policy is with MoRTH and Ministry of Commerce & Industry. They seem to have erred in this, but to be fair, they probably had good intentions of modernizing the automotive industry, while also helping to increase tax collection, boost automotive firms fortunes, and reduce vehicular pollution.

Originally Posted by anjan_c2007

SAIM's main agenda is to push sales and more sales and have all high and towards the ceiling, moving auto sales graphics in their boardrooms by whatever means possible. No doubt, the auto industry is highly taxed but we can see through the games of the SIAM with its U-turn from 2017 to 2021, when now two of its most senior members decry the emission norms.

The U.K. will by 2025 implement the Euro VII norms for which detailed specifications are to be released very soon. Our SIAM is groaning under pressure and pain with the BS VI blow and talk about any BS VII norms will derail all their plans.

Yes, agree with all your points, but didn't we already know SIAM's agenda?
And isn't it a fact that the new norms will make vehicles more expensive and many indians won't be able to afford more expensive vehicles?

Anyways, perhaps all this is just a stop gap arrangement, since there seems to be a total revolution with the shift from IC to EV, and hopefully the emission norms won't even be that big a deal in the years to come.

[GTO]

Bhargava has proven time & again that his thoughts & philosophies are from the 1980s & 1990s. Leadership like his is the reason that Maruti continues with the same formula of cheap + VFM + light build + outdated technology (AMT or 4-speed AT LOL) + absolutely no R&D capability. It's why Maruti hasn't learnt how to build or sell products in the lucrative 12 - 25 lakh segment (even Tata & Mahindra have successes there), no clue about EVs (Tata is already selling the Nexon EV), no truly high quality or premium product, no focus on safety, no diesel engine on sale (despite having an awesome 1.5L diesel) and not even equipment like ventilated seats or panoramic sunroofs which are all the rage today.

Maruti is like the McDonalds of the car industry; ubiquitous, everywhere and you cant go wrong with it, but no one really dreams about McDonalds. McDonalds is totally out-of-tune with today's focus on healthy eating & their focus is entirely on cheap / VFM junk food. A decades old formula, just like Maruti's.

He should permanently retire IMHO. While the government is working hard to make cars safer & less polluting, Bhargava says its not the right time for emission norms.

[Lalvaz]

Originally Posted by GTO

Bhargava has proven time & again that his thoughts & philosophies are from the 1980s & 1990s. Leadership like his is the reason that Maruti continues with the same formula of cheap + VFM + light build + outdated technology (AMT or 4-speed AT LOL) + absolutely no R&D capability. It's why Maruti hasn't learnt how to build or sell products in the lucrative 12 - 25 lakh segment (even Tata & Mahindra have successes there), no clue about EVs (Tata is already selling the Nexon EV), no truly high quality or premium product, no focus on safety, no diesel engine on sale (despite having an awesome 1.5L diesel) and not even equipment like ventilated seats or panoramic sunroofs which are all the rage today.

Maruti is like the McDonalds of the car industry; ubiquitous, everywhere and you cant go wrong with it, but no one really dreams about McDonalds. McDonalds is totally out-of-tune with today's focus on healthy eating & their focus is entirely on cheap / VFM junk food. A decades old formula, just like Maruti's.

He should permanently retire IMHO. While the government is working hard to make cars safer & less polluting, Bhargava says its not the right time for emission norms.

There's a load of hard hitting facts, however, Mr.Bhargava has also achieved some phenomenal milestones:

1) Sales: Under his leadership, Maruti Suzuki has achieved 48% market share in India. This is no mean achievement, especially considering all the negatives you've highlighted earlier, such as the lack of premium features in their cars, lack of a diesel powertrain in a price sensitive market, poor build quality, lack of safety features. Wonder what he's doing right, which the competition is unable to do.

2) Customer Service: He was instrumental in setting up the first call center for automobiles in 2000. Imagine the foresight, especially considering how some of the competition is still grappling with communicating with their consumers. And I daresay, their call center works, their processes work. I have never had to write an email or tweet to their CEO/MD/Chairman to address any issues at all. The beauty of their processes is that they work seamlessly and they have a defined escalation plan, which also works. Maruti doesn't make their customers feel very special, although Arena addressed that to a large extent, but nearly each and every Maruti customer feels that his grievance's are heard and largely addressed to their satisfaction. I think this comes largely from Mr.Bhargava's experience as a career IAS officer. He is a disciplinarian and he's been a very able administrator at Maruti since 1981.

3) Loyal: Suzuki (like most Japanese companies) don't trust too many outsiders. He has been able to surpass that inherent mistrust and enjoys their complete trust. Some of his actions have been anti minority shareholder, but he has given his most loyal service to Suzuki and that is reflected by the fact that in 2011 he was awarded 'The Order of the Rising Sun, Gold and Silver Star' by The Emperor of Japan for his contribution to the promotion of economic and bilateral relations between Japan and India.

4) Fitness: He is very fit, both physically and mentally (relative to his age), and has many more productive years ahead. If he ever chooses to hang his boots at Suzuki, I'm sure the competition would be waiting to lap him up.

I wish he continues at Maruti suzuki for years to come. Yes, he should make use of his eminent position to launch better build and safer Maruti cars. As a market leader, he should drive the change, rather than be a follower. But damn, he has set the bar so high, I'm scared if his replacement will be able to fill his shoes.

Just read this article to understand a little more about the man:
https://www.forbesindia.com/article/...s-seat/41221/1

[2000rpm]

While I agree with the Emissions and Safety drive, I do honestly feel that the taxation on cars is really excessive, especially for the salaried class. Who have to earn almost double the ex-showroom price to buy a car.

I dont think that this approach is meeting the objective to make the rick pay more taxes, as most of them set-it off as business expense, the salaried class is the one thats at the receiving end of this.

[BoneCollector]

Mr. Bhargava works on the principle of - If it ain't broke, why fix it?

Personally, I feel that changing a car at less than 10 years may not be feasible for everyone. This may drive people back to 2 wheelers from 4 wheelers. Since India has adopted the BS6 emission norms, the NGT and Government should formulate a better option. The present 10/15 year rule should be for BS4 and lesser diesel and petrol cars. For BS6, it should be 15 or 20 years for both.

[Jude300]

Slightly OT, I firmly believe that the government needs to think out of the box and come with disruptive solutions to the pollution problem. While there is so much talk on pollution norms for automobile industry what's happening with the other industrial pollution? We are cruising in the reverse gear there. Many projects that affect the ecological balance have been approved. Norms diluted to promote quarrying, mining etc. Major rivers are heavily polluted. The policies are very inconsistent and favouring the industry big weights and people like Bhargava will continue to play their part in keeping things the way they are.

Coming back to the auto industry, I believe India has to make a leap by skipping a few steps to control pollution, if they really want to make a difference. Things like building electric charging infrastructure for EVs should be fast tracked. They could make it mandatory to provide EV charging ports in new houses/ apartments constructed. Promote research in EV technology which is mostly private funded now.

If they push hard towards that direction then others will fall in place. The world today is fast changing and adaptability is key for companies of all sorts. If Maruti is not ready to adapt then so let it be. They will soon be the Nokia against the smartphone wave.

Along with such measures, to tackle the problem tactically, the government should enforce compliance. Making pollution certificate mandatory for insurance claim is just a rule to promote pollution control but that will be fruitful only if it's done diligently. Have you been to a pollution checking centre lately and you will know what I mean.

Just coming up with some half baked policy is not enough. "Pollution" has to be seen along with other related problems we have (deforestation, ecological imbalance etc) and policies should framed putting them together and should be followed in letter and sprit. It also needs to provide solutions (not just rules) that make it easy for the 'aam aadmi' and the industry.

[Kosfactor]

Vast majority of the population would not want to drive 50 year old vintage cars to work everyday, they want something new and modern so if the sales is low - Dear government that is because people are struggling to find money to buy a kilogram of vegetables, let alone a car or the fuel to fill in it.

Create a market first and then worry about automobile sales.

You do not create a market by scrapping old cars in here, in a country with dismal levels of car ownership there is very little old cars to be found

[Anwesh]

According to Loksatta, Mr. Srinivasan's complaint was about the TVS XL100 coming under the highest level of GST. He said that it is a moped used by the low income group like dudhwallas, delivery boys, etc so charging 28% GST on that is not justified.

If that is what he said, then I agree with him.

Regards,

[Sunderdeep]

I don't want to sound like a Devil's advocate but somewhere Mr.Bhargava is right. Some Maruti cars like Eeco and Alto 800 have no alternatives. These cars comes at a very affordable price tag which helps middle class families to switch from a two wheeler or to use their car as Cargo/Small Business in the case of Eeco.

Segment above 7 lacs isn't Maruti's forte (other than Brezza) and none of their cars do great numbers. So MS is little worried that already lion's share is going to Hyundai/Kia/Tata and if in future prices are shoot up because of safety & emission norms, they further will lose middle class customers who eventually will delay their purchase decision.

Government definitely should find a middle way, like keeping lower GST rates for the cars under 4 meters (may be 18% instead of 28%) and no CESS, so that both customers and OEMs are in a win-win situation by following all kind of safety & emission norms with time.

[MaheshY1]

Originally Posted by GTO

He should permanently retire IMHO.

LOL.

He is probably a mouthpiece for the brand to manipulate the stock prices. I remember picking on his statement about not offering ABS and airbags, where he said, it's to keep the cars affordable for the 2-wheeler owner. But I never understood why the Swift VXI didn't have the kit.

From there, Maruti went on to become the first carmaker to offer ABS+2airbags for under Rs. 5 lakh ex-showroom in the Baleno. At the time, it was unimaginable to see a car with the safety kit but without the music system. Since Maruti's U-turn on safety, their valuation almost tripled in about 3 years.

So, I have to take his statements with some salt. Back in 2017-18, it looked like Maruti knew what they were doing.
- new diesel RnD
- electric RnD
- Swift and Dzire product differentiation
- going back to handling for Swift
- 4 engine transmission combos for Ignis, Swift, Dzire and other cars
- Buying real estate (rumoured to open up direct sales for EVs)
- Brezza (This was the only car that made Ford reconsider the EcoSport prices - although they revisit the price list of all cars pretty much every month)
- Introduced ISOFIX when even the media crowd didn't know what it was
- Nexa was working out well for them

Now, it looks like they have lost track. This is why they can't crack the Rs. 10 lakh level. They're too afraid of taking risks. Meanwhile, Tata, Hyundai and Kia are stealing their market share from under Maruti's nose. I think it's down from the peak of 55% to 40%. Once Tata adds CNG, Maruti will lose that edge too. Hyundai and Kia are already working on an MPV. And just wait for MG's entry into the sub-10L space with small SUV, hatchback and MPV. They know how to shake up an established rival.

If they want to be valued like a new-age growth company, then they have to keep the dreams alive. Maruti have become like a government company. Continue with business as usual, no big moves.