[anjan_c2007]

At a function to inaugurate new medical equipment and consumables manufacturing plant in Butibori, near Nagpur, the Transport and Highways Minister stated that he intends to raise the turnover of our automobile industry from Rs 20 lakh crores to Rs 50 lakh crores. He said, “During my tenure as transportation minister, India’s automobile turnover has surged from Rs 7 lakh crore to Rs 20 lakh crore in a decade. In the last three months, we have surpassed Japan, positioning ourselves as the third-largest automobile market. The United States leads with Rs 80 lakh crore turnover, followed by China with Rs 40 lakh crore."

Butibori is an industrial area near Nagpur which was also advocated as a good location for starting an automobile unit. Natural resources strategist Pradeep Maheshwari highlighted Vidarbha’s potential to become an automobile hub. “The automobile industry in Vidarbha can produce all types of passenger and heavy commercial vehicles with 20-25% less cost. This is because Sunflag Steel in Bhandara district, the country’s largest auto-grade steel maker, supplies products to all leading the companies. JSW Steel in Kalmeshwar in Nagpur, which manufactures flat steel (cold rolled steel) used for vehicle bodies, is also an approved vendor with leading automobile companies,” Maheshwari said.

The newslink:-

https://timesofindia.indiatimes.com/.../111546046.cms

[fhdowntheline]

Originally Posted by anjan_c2007

At a function to inaugurate new medical equipment and consumables manufacturing plant in Butibori, near Nagpur, the Transport and Highways Minister stated that he intends to raise the turnover of our automobile industry from Rs 20 lakh crores to Rs 50 lakh crores. He said, “During my tenure as transportation minister, India’s automobile turnover has surged from Rs 7 lakh crore to Rs 20 lakh crore in a decade. In the last three months, we have surpassed Japan, positioning ourselves as the third-largest automobile market. The United States leads with Rs 80 lakh crore turnover, followed by China with Rs 40 lakh crore."

US and China are, by various measures, roughly 3 times the geographical size of India. Both these countries (China I assume, US I know from experience) have good road discipline and regard for traffic laws in general. In the US, most of the car owning population of the urban areas stays in suburbs where parking etc. are not a criteria since houses are single floor bungalows for the most part. There is simply no comparison of the road infrastructure and related technology of these countries with India, inspite of whatever recent and past efforts. What kind of pipe dreams are we cooking?

[Noctis]

Originally Posted by fhdowntheline

US and China are, by various measures, roughly 3 times the geographical size of India.

Apart from the reasons you mentioned, the elephant in the room is the extremely high taxes on PV in India.

China has a 10% tax on vehicles, with further reductions for certain small/green vehicles. In the US the rate changes between states but the national average is similarly low. In comparison we are looking at GST of upto 50% and RT of around 10-20% even for locally manufactured vehicles. The market will always be hampered by this fact and there is only so much other measures can accomplish.

[fhdowntheline]

What is really required is strong and effective urban planning and monitoring. There needs to be a moratorium on expansion of commerce and residential real estate in the top 10 metropolitan cities for the next 5 years at least. The only infrastructure that should be built is for mass transportation and urban re-development from sustainability perspective. Pune, for example is becoming a ten-headed hydra by gobbling up all the nearby villages and replacing good farmlands with 20 plus storey residential towers. Basic urban facilities like roads and other civic amenities have been stretched beyond redemption. And in all this, the core infrastructure like mass transportation (bus, metro, rail, airport) are in shambles. I am sure this is also the story of other big metros in varying terms.
If industry has to be established it should only be in the B/C towns with proper urban planning & development. This particular department of the government should be in the list of critical ministries , even more than agriculture, in my opinion. The real growth of the economy is in the urban areas, that's beyond a debate now.

[sirius]

Stupid target. Why doesn't this guy target China like public transport instead? It is good for public health, wealth, and the environment. A clean environment and stress-free transport will improve the health and happiness of the working class. Low transport costs can make people work at a reduced price or higher savings of people translate to wealth creation rather than buying oil.

All these will eventually lead to productivity and cost-effectiveness which is where China is miles ahead.

All these guys are interested in milking taxes from vehicle sales but don't care about people or the environment.

[Cresterk]

So does that mean he is reducing taxes on cars? Or are they going to continue making 10 year old cars illegal for “environmental reasons” to force the masses to buy new cars?

Are they not atleast going to pretend that they are going to improve public transport?

[ToThePoint]

Another Day, another brain fart....

All I think these guys are interested in is creating a bubble in the stock market and filling their own pockets.

[anjan_c2007]

Referring to the Minister's statement as in the OP a number of intriguing and unanswered issues emerge:-

1. Will a huge proportion of the Rs 50 L crore production of automobiles be sold in India? Exports would be most likely amounting to the then production figures on a prorata basis. There are no extraordinary, worldclass R&D efforts being done here by automakers that can attract the overseas markets. Our production costs now are lower due to cheap labour and lower tooling costs which are plus points.

2. If almost twice the amount of automobiles are manufactured and sold here (our export position is clarified in sl.no.1) does the Minister intend that all these will constantly be used or get parked on the expressways or other NH's or State Highways ? Simply because, I cannot find any city or town with a futuristic infrastructure to accommodate the huge number of automobiles either run hassle-free on the roads or remain parked both in downtown areas and even in residential localities.

3. There is no reference to either his much touted and very, very favourite scrapping policy of 2021 which has gone for a toss. He cannot implement any more coercive measures at all now with the glaring fact that his government simply does not have the numbers in the Lower House.

4. He has also not referred to replacement or deadlines for ICE vehicles with EV's. Nor is he speaking about an all EV population by some future year like 2035 or 2040.

5. There is no talk about hydrogen powered cars too.

6. There is no reference to deadlines like 2027 for banishing diesels as scripted by some bureaucrats to please their MASTER.

7. And lastly with the uncertain markets creating huge waiting lists for some models just till a year earlier, but landing the automakers now in a cesspool with a huge, unsold inventory (62-67 days production) as described in the thread below, whether the Rs 20 L crore to Rs 50 L crore output rise as stated by the Minister will remain a pipedream ?

https://www.team-bhp.com/forum/india...inventory.html (Unsold inventory for carmakers at 60,000 Crore (62-67 days inventory))

[Gotcha]

Grand visions with no real actionable plans to either restructure automobile taxes for increased sales or build sustainable infrastructure such as alternative cities with better connectivity to support increased vehicle loads!

Just sensational forward looking statements which help build that illusionary progressive image and mask all critical reports of non performance and reflection of ground reality in main stream media. I'd take every announcement with a pinch of salt these days after that heavy dose of over optimism!

https://www.team-bhp.com/forum/stree...riorating.html (Are highways in India improving or deteriorating?)

[Sk8r]

I think we need a separate thread to collate all off Nitin ji's "weird / wacky" statements. That thread, 10 years down the line will stand a testament to where we are against where we were " supposed " to be.

[SmartCat]

Rs.20L cr. to Rs.50L cr in how many years?

Rs.7L cr to Rs. 20L cr in a decade was 11% pa growth
Rs.20L cr to Rs. 50L cr in the next decade is just 9.6% pa growth

Use the CAGR calculator to input the numbers:
https://cagrcalculator.net/

[IshaanIan]

Is this done by shoving unlabelled E20 down our throats or by threatening to bring NGT ban on 10 year old Diesels and 15 year old petrols to other states? Cars have gone from being heirloom material to becoming iPhone-esque in our country just in the last decade. Wonder how much worse things have to get to meet this mad man’s targets.

[PreludeSH]

With our middle class numbers supposed to hit 600 million by 2030, wonder what ails the car market. Prices are too high and you have to pay lot more and get half the value worth in most countries.

[FiatDiesel]

I find the minister completely blinded with following agenda:-

1. Ethanol - If you hear any of his speeches related to automobiles, even the recent CNG bike launch, he keeps on talking about Ethanol despite it not being related to the product being launched. He wants Ethanol in every automobile. As a tax payer and end user of automobiles. I used to be big admirer of his execution capabilities of tough projects however over the time I have started questioning his intent as I find his drive for ethanol without any thought of its implications to existing users. I personally feel its illogical and driven by bias beyond a certain point.

If you want to sell it, go ahead but don't push it down the throat of end users through forced policy implementations. If its too good for us, it will get automatically adopted in big way.

2. Neglect of existing industrial auto hubs in lieu of his own constituency. Not a single investment except recent sale of old GM plant to Hyundai has been marked to Pune which has strong auto industry and ancillary unit base. No Infrastructure investment as well despite being MH's second largest city which was once competing with Bangalore as an alternative IT HUB has now IT companies moving out due to absolute zero improvement in Infra in last decade.

https://indianexpress.com/article/ci...cture-9364468/


Pune is perfect example of the downfall of city's infrastructure / economy which was once buzzing as one of prime metro cities.

Please note I am not pro or against any political party, just that I feel we don't have any voice left to pass on the feedback to political class.

Sorry in case my rant has hurt you. Its just my personal view.

[rakesh_r]

A very good vision, but for that much turn over, you need to garner confidence from Investors. Statements like "Banning ICE engines" by 2030, banning Diesel cars in 10 years after collecting tax for 15 years doesn't instill confidence. Why do you need to ban if the emission norms are met? Am not even speaking about the taxation, the less said the better. If companies cant sell good cars, why will they invest?