Industry Performance in 2014

8/17/2019 Industry Performance in 2014

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Industry performance in 2014-15Production

The industry produced a total of 23,366,246 vehicles including passenger vehicles, commercial

vehicles, three wheelers and two wheelers in April-March 20! as against 2,!00,6! in April-March

204, registering a growth of "#6" percent over the same period last year#

Domestic SalesThe sales of $assenger %ehicles grew &y 3#'0 percent in April-March 20! over the same period last

year# (ithin the $assenger %ehicles segment, $assenger )ars and *tility %ehicles grew &y 4#''

percent and !#30 percent respectively, while %ans declined &y +- 0#' percent in April-March 20!

over the same period last year#

The overall )ommercial %ehicles segment registered a de-growth of +- 2#"3 percent in April-March

20! as compared to same period last year# Medium .eavy )ommercial %ehicles +M.)%s grew

&y 6#02 percent and /ight )ommercial %ehicles declined &y +- #! percent#

Three (heelers sales grew &y 0#"0 percent in April-March 20! over the same period last year#

$assenger )arriers and 1oods )arriers grew &y 2#6 percent and !#2 percent respectively in

April-March 20! over April-March 204#

Two (heelers sales registered growth of "#0' percent in April-March 20! over April-March 204#

(ithin the Two (heelers segment, cooters, Motorcycles and Mopeds grew &y 2!#06 percent, 2#!0

percent and 4#! percent respectively in April-March 20! over April-March 204#

Exports

n April-March 20!, overall automo&ile eports grew &y 4#"' percent over the same period last

year# $assenger %ehicles, )ommercial %ehicles, Three (heelers and Two (heelers grew &y 4#42

percent, #33 percent, !#44 percent and #'3 percent respectively during April-March 20! over

the same period last year#

SIAM MEME!S

•

5verview

• 1ross Turnover

• nstalled )apcity

• ndustry )omposition

• $roduction Trends

• omestics ales Trends

• 7port Trends

1ross Turnover of the Automo&ile Manufacturers in ndia +n *Million

200"-0# 200#-0$ 200$-10 2010-11 2011-12 2012-1%

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2/13

36,62 33,2!0 43,2'6 !",!"3 66,264 6,60

+* )onversion 8ate 40 46 4 46 4 !0

•

o nstalled )apacity +n Million

o +20-2

o

A& 'our ()eelers!#"

o & *+o , *)ree ()eelers

"#'!

o & En.ines

#00

•


3/13

o nstalled )apacity +n Million

o +202-3

o A& 'our ()eelers

6#!'o & *+o , *)ree ()eelers

20#4

o & En.ines /In Millions

#0

Domestic Maret S)are for 2015-1

$assenger %ehicles 4

)ommercial %ehicles 3

Three (heelers 3

Two (heelers "0

3rand *otal 100


4/13

Automo&ile $roduction Trends

ate.ory 2010-11 2011-12 2012-1% 201%-14 2014-15 2015-1

$assenger

%ehicles

2',"2,2 3,46,06' 32,3,0!" 30,",'3 32,2,4' 34,3,"!'

)ommercial%ehicles

,60,3! ',2',36 ",32,64' 6,'',03! 6,'",2'" ,"2,"4


5/13

Three (heelers ,'',!!3 ",',2"' ",3',4" ",30,0" ',4',0' ',33,'!0

Two (heelers ,33,4',34'

,!4,2,!32

,!,44,!6

,6","3,04'

,"4,"',3

,"",2',"6

3rand *otal 1"#$240$

20%#202

204"11

2150015

2%%5#04"

2%$040$

Automo&ile omestic ales Trends

ate.ory 2010-11 2011-12 2012-1% 201%-14 2014-15 2015-1

$assenger%ehicles

2!,0,!42 26,2',"3' 26,6!,0! 2!,03,!0' 26,0,236 2,"',6"

)ommercial%ehicles

6,"4,'0! ",0',4'' ,'3,2 6,32,"! 6,4,'4" 6,"!,04

Three (heelers !,26,024 !,3,2" !,3",2'0 4,"0,0"! !,32,626 !,3",0'2

Two (heelers ,,6",'0

,34,0',!0

,3,',"! ,4",06," ,!',!,!6

,64,!!,'

3rand *otal 154#1%#1 1"%1"$ 1""$%"01 1#42%22% 1$"24%"1

204$%#5


6/13

Automo&ile 7ports Trends

ate.ory 2010-11 2011-12 2012-1% 201%-14 2014-15 2015-1

$assenger %ehicles 4,44,326 !,0","3 !,!',44 !,'6,42 6,2,34 6,!3,""'

)ommercial %ehicles 4,043 '2,2!" "0,02 ,0!0 "6,'3' ,0,6"'

Three (heelers 2,6','6" 3,6,!3 3,03,0"" 3,!3,3'2 4,0,600 4,04,44

Two (heelers !,3,6' ',!, ',!6,3" 20,"4,000 24,!,466 24,",'3

3rand *otal 2%1$$5 2$%"$05 2#$#$0" %1105#4 %5"%%4 %41212

e)icle ate.ory Excise Duty

mall cars 2#!9

/ength :4m &ut engine capacity less than !00cc 249

/ength :4m and engine capacity more than !00cc 29

*%s;M*%s +length :4m, engine capacity :!00cc and 1round clearance :0mm 309

.y&rid cars 2#!9

pecified components of .y&rid vehicles 69

7lectric cars,


7/13

pecified components of 7lectric vehicles 69


8/13

)B containing engine or gear&o or transmission mechanism in pre-assem&ledform &ut not mounted on a chassis or a &ody assem&ly

30

)B containing engine, gear&o and transmission mechanism not in a pre-assem&led condition

0

AM *117T5C 5C 155 78%)7 TAD +1T

The auto industry loo=s forward to introduction of 1T# .owever, &ased on whatever inputs we got, there

are several concerns of the industry which have &een mentioned &elowE

Taes to &e covered; su&sumed

All =ind of domestic indirect taes should &e su&sumed in the proposed 1T, as suggested &y Bel=ar

)ommittee# This should include 8oad Ta;Motor %ehicle Ta also#

After introduction of 1T, no additional ta should &e introduced; levied# A provision &e made in the law

that no new levy or ta &e introduced#

Any change, if reFuired, in future +for specific needs li=e calamity, education, infrastructure, etc# should

&e done through modifying the rate of taation under the 1T regime and not through any additional

levy;ta;cess, etc#


9/13

Tax Rates

The ta rate on inputs and output should &e fied considering the pattern of input purchase and output

sales which varies considera&ly# This has implications for the input ta credit# (hile vehicle manufacturingta=es place in a few states with supply to other states +local sales account for less than 09 of total

domestic sales, maHority of components +around 09 - "09 are procured from vendors within the state#

f ta rate of components;inputs is more than the ta rate at the time of supply of complete vehicles

+)ompletely


10/13

The document &ased credit should also &e dispensed with and could &e su&stituted &y appropriate

certification &y independent )hartered Accountant +or the Appointed )ompany Auditors# The same could

&e su&Hect to appropriate audits &y trained government officers and could &e T ena&led#

iesel and motor spirit should &e &rought under 1T with input ta credit and mechanism to avail thesame# %AT on diesel and motor spirit constitutes a significant element of cost for the transport industry# t

is suggested that total chain of input credit should remain un&ro=en and hence, all inputs should &e

treated eFually for the purpose of allowing input credit#

5thersn the proposed 1T system, it is not =nown whether stoc= transfer would remain eempted from ta +at

present, sales ta is not levied on toc= Transfer or would &e made taa&le in the importing stateK the

industry needs to understand the treatment of stoc= transfers for the purpose of input ta credit#

There should &e no distinction &etween input and capital goods# $resently, definition of )apital 1oodsunder )entral ecise law and state %AT is not uniform# *nder tate %AT, definition of capital goods and

also the rate of taation vary from state to state# As regards periodicity of ta=ing credit, ecise and %AT

laws differ#

n respect of eisting eemptions having sunset clause, appropriate transitional provisions should &e

introduced to ensure continuity of eisting &enefits# A clarification is needed on how the eisting sales ta

&enefit schemes e#g# loan, deferral would &e affected#

The tate 1oods and ervices Ta Act, tate 1T Act should &e a common Act operated;implemented &y

all the states and *nion Territories +similar to present )entral ales Ta Act covering transactions related

to goods, services and eports#

)oncept of ITa nvoiceJ should &e continued for availing tate 1T credit#

To ensure via&ility of 75* under severe competition, timely refund of ta is needed# 7ffective refund

system should &e in place for smooth operations of 75*s# $resently, 75*s are eligi&le to get refund of

)T on interstate purchase of inputs used in the production of eport goods and local %AT content of the

eport product is allowed to &e deducted against the TA ales and the &alance, if any, is allowed as

refund#

*nder a dual 1T structure +a )entral 1T and a tate 1T, there could &e a situation where the nput

Ta credits which remain unutiliGed would &e refunded to the assesses# ince the cross utiliGation of

credits &etween the )entral 1T and tate 1T are not permitted, there could &e a situation of payment

on the one hand and a refund situation on the other# n order to avoid this situation cross utilisation of

input ta credits should &e allowed#


11/13

$rocedural changes should &e notified in advance# The industry should &e given 6 months lead time

&efore introduction of 1T#

tate specific incentives should &e protected under 1T#

AM M7M


12/13

The industry was growing at the right pace until financial year 202 to achieve the targets set in AM$

206# .owever, the industry witnessed two difficult years, >L3 and >L4, in which the segments

across the industry witnessed de-growth, carrying nearly 609 surplus production capacity#

The current change in policy environment and consumer sentiments have &rought the industry out

from the &ottoms seen during the last two financial years# The 1overnment recogniGed the fact thatautomo&ile industry was one of the highest taed industry in ndia and the high taes were acting as

a deterrent for growth of the industry# .ence, in the nterim


13/13

The industry reFuires the 1overnment to support &y providing it an atmosphere that facilitates

growth# (hile the auto industry is focused on generating volumes in the different segments to garner

growth, it is in the interest of the 1overnment to continue with the lower ecise rates as this will help

increase volumes and garner additional ta revenue# .igh ta rates and conseFuent high prices of

vehicles have a harmful effect of lowering volumes, lowering gross ta collections and ultimately

lowering growth in the auto sector#

The 1overnment should facilitate a conducive environment for growth of auto industry &y defining

favoura&le long-term policy for investment# ue to the unfavoura&le policy environment in the

country where ta rates on vehicles are getting changed every year and 1overnment is negotiating

>TAs where custom duties are li=ely to come down, many international companies that had plans to

enter the mar=et have stalled the plan and are now considering other emerging mar=ets, such as

)hina and

Industry Performance in 2014

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