Page 19 - Auto Sector
As crisis deepens, auto industry seeks stimulus package from govt
Auto industry leaders on Wednesday asked the government for a stimulus package, including GST reduction on vehicles, for the sector which has been hit by an unprecedented slump in sales. In a meeting with Finance Minister Nirmala Sitharaman, industry leaders, including Maruti Suzuki Chairman R C Bhargava, M&M President - Automotive Sector Rajan Wadhera, who is also president of SIAM, along with representatives from components sector body ACMA and dealers body FADA drew attention to the challenges, including job losses, faced by the industry. "Yes, we have asked for certain enablers for the auto industry and they have thought on it. I am very hopeful that there will be a stimulus package (for the auto industry) coming soon," Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera told PTI. The government wanted to understand from the industry about reasons for the slump in demand and possible solutions to the issue, he said, adding that the heavy industries ...
 "As crisis deepens, auto industry seeks stimulus package from govt")
Mahindra warns of job losses in auto sector, seeks government's help
A slump in sales is also triggering massive job cuts in the sector that employs 35 million people directly and indirectly
 "Mahindra warns of job losses in auto sector, seeks government's help")
India's auto crisis deepens, tens of thousands losing jobs: Report
To revive the sector, auto executives plan to demand tax cuts and easier access to financing for both dealers and consumers
PVs best placed in auto sector; Maruti is favoured pick in the listed space
The auto sector has been the worst performer among sectoral indices over the last year, shedding 34.5 per cent, while the Sensex and the Nifty were down marginally
 "PVs best placed in auto sector; Maruti is favoured pick in the listed space")
Replacement segment gives smooth ride to Apollo Tyres amid auto slowdown
Slowing auto sales, higher commodity costs remain major areas of concern
 "Replacement segment gives smooth ride to Apollo Tyres amid auto slowdown")
SBI tightens lending terms for auto dealers as sector sees downturn: Source
As part of the revised terms, the country's largest bank by assets has decided to halt lending to dealers of Hyundai Motor India unless they provide a minimum of 25% collateral
 "SBI tightens lending terms for auto dealers as sector sees downturn: Source")
Next 6 months will be volatile for auto sector over BS-VI shift: MRF CMD
Indian automotive industry is at an inflection point where both opportunities and challenges abound in equal measure
Beating the downturn: Car buyers lap up new SUVs amid gloom and doom
If the response to three new launches - the MG Hector, Hyundai Venue, and Mahindra XUV3OO, all launched this year - is any indication, buyers of cars are snapping them up
 "Beating the downturn: Car buyers lap up new SUVs amid gloom and doom")
Maruti Suzuki slashes production by 16% in June, posts fifth cut in a row
The car market leader had cut total production by over 18 per cent in May
 "Maruti Suzuki slashes production by 16% in June, posts fifth cut in a row")
Utility vehicles array in auto market as India's aspirations rise
Compact SUVs lead the charge in this segment, far ahead of growth in the others
 "Utility vehicles array in auto market as India's aspirations rise")
Domino effect of auto crisis: Livelihoods, India's GDP growth may take hit
35 million jobs at stake with India's automobile sector in trouble, components business could be impacted as well
 "Domino effect of auto crisis: Livelihoods, India's GDP growth may take hit")
Selective buying in auto sector
But it may be a very long haul before the industry sees a stable recovery
 "Selective buying in auto sector")
Are Maruti, Tata Motors and M&M good bets post their Q3 earnings?
Most analysts expect slowdown in the auto industry to continue due to lack of pick-up in rural demand on account of liquidity crisis in NBFC and higher monsoon deficit in select regions.
 "Are Maruti, Tata Motors and M&M good bets post their Q3 earnings?")
New vehicle registration up 8.5% to 1.5 million in January: Dealers
Passenger vehicle sales reported nearly 33.97 per cent growth, which is almost double compared to the past
 "New vehicle registration up 8.5% to 1.5 million in January: Dealers")
Nissan India, Tata Motors expect near-flat industry growth in FY19
Nissan launch its electric car 'Leaf' in the next six months, Thomas Kuehl said, adding, all the models would conform to the BS-VI emission standards
 "Nissan India, Tata Motors expect near-flat industry growth in FY19")
Rely on auto sector
With many stocks hitting 52-week lows, this could be a good time to enter. But be prepared to hold for two-three years
Once a hot favourite, mid-sized sedans grapple with shrinking sales
H1 offtake down 7% to 83,498 vehicles; Honda City and Maruti Suzuki Ciaz see a double-digit decline
 "Once a hot favourite, mid-sized sedans grapple with shrinking sales")
Q1 earnings: Auto companies lag behind Street estimates by wide margin
The miss was most evident in revenue earned by companies during the quarter, even as profits and margins also lagged behind expectations
 "Q1 earnings: Auto companies lag behind Street estimates by wide margin")
Dividend drive turns automobile promoters richer by Rs 39 billion in FY18
The biggest dividend income in the sector is earned by Japan's Suzuki, which holds a 56% share in Maruti Suzuki
 "Dividend drive turns automobile promoters richer by Rs 39 billion in FY18")
Auto sector preview: High fuel prices to potentially impact growth
High fuel prices and slow growth of monsoon could affect the sector adversely
