After the rigorous months of perpetual launches and the unveiling of newer technologies and wide-ranging varieties of vehicular design and development, its time of the year when heavy investments pour in the second largest automobile industry in the world.
Affected by the BS IV upgradations, ACMA group leader Rattan Kapur said in a statement that 70% of the cost sharing shall come on the shoulders of OEMs against the usual 30% to 40 %, thus costing them around 30 thousand crore rupees to make an overall compensation for the loss. The investments shall also mean to compensate for the abrupt switch from manual and semi-automatic cars to all-electric cars, neglecting the bridging of hybrid cars in between. It has been clearly notified by the GST that levies 43% tax on hybrids against 12% on all-electric cars.
Recently Maruti Suzuki invested $ 1 billion in the research and development front of the company and infrastructural improvements in the fields of health and insurance along with a promise of 15 new launches for Indian customer base strengthening.
Hyundai revealed its plan to invest 5 k crore in Indian volume sales growth up to 1 million units till 2021. For this, the company from S. Korea will bring 5 model updates and 3 all new products to our land.
UNO Minda Group shall be investing Rs. 500 thousand crores in our auto sector to change the manufactured units from BS II and BS IV to BS VI compliance regulations by the year 2020. It has already been warned by the government to directly jump up to BS VI, and not BS V norms to make India a pollution free country. And for the same, Minda group shall invest heavily in the manufacturing firms for the major engine and other vehicular changes.
Apart from investments, our component manufacturers are also bagging huge investments from foreign car majors, thus strengthening their belief in Indian manufacturing and building a good repo with the overseas investors. Recently, Talbros India bagged investments of Rs. 175 crore by a German auto firm. And now, Precision Camshaft Pvt Ltd. has got a whopping investment of Rs. 550 crore by American car majors in India, Ford Automakers. It shall be liable to export 8 million cicra camshafts to Ford till 2019 in China and Spain. Also, the company is in talks with Toyota to manufacture ductile camshafts for it in the near future.
