Automotive

Public-Private Partnerships in India’s National Highways

Sept. 15 – The Indian government foresees Rs. 50,000 crore (US$10.54 billion) in private investments in the highways sector this fiscal as it awards contracts for building 7,300 kilometers (4,536 miles) of roads.

According to India’s Ministry of Road Transport and Highways, bids for about 4,600 kilometers have already been received or invited this year and the Ministry will award concessions for 7,300 kilometers before the year ends.

In the first four months of the current year, the government has awarded public-private partnership (PPP) projects with an investment of over Rs. 21,000 crore. The bids received are far better than estimated bids for these projects. This will give the government additional revenues of more than Rs. 10,000 crore. Continue reading →

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Ford to Invest US$1 Billion in New Gujarat Plant

Jul. 29 – U.S. auto giant Ford said yesterday it would invest US$1 billion to build a vehicle assembly and engine plant in Gujarat as it increases production to exploit the country’s burgeoning car market. The new factory will employ around 5,000 workers and will be the firm’s second in India.

“Ford has very aggressive expansion plans in India and in Asia Pacific and Africa,” stated Joe Hinrichs, president of Ford Asia Pacific and Africa. Continue reading →

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Indian Businesses Active in Foreign Cooperation

Mar. 31 – Indian businesses have been busy recently signing new cooperations with foreign companies across the world. Here we provide a summary of some of the most important deals Indian companies have signed across several industries.

Ashok Leyland and Nissan unveil first LCV
India’s second largest heavy commercial vehicle manufacturer Ashok Leyland rolled out its first light commercial vehicle (LCV) Dost together with its partner, the Japan-headquartered automaker Nissan. As the current joint venture between the two companies covers cooperation in manufacturing, technology and power train for LCV production, in the future the two parties will likely expand their JV to include van design and development. Continue reading →

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2011 Budget Proposal May Lead to Price Hike in Luxury Cars

Mar. 23 – India’s auto companies that import parts for their assembled car manufacturing may face a cost increase due to the country’s growing customs duty on pre-assembled parts and the expanded definition of semi-knocked down (SKD) kits.

The recent Indian 2011 budget proposal says that automakers that import pre-assembled components will need to pay a 60 percent customs duty, while the import duty for completely-knocked down (CKD) kits is only 10 percent. At the same time, the new proposal also set up a wider definition of SKD kits: not only is a pre-assembled engine, gearbox or transmission mechanism considered as an SKD kit, but now a body assembly coupled with an assembled engine, gearbox or transmission installed is also counted as an SKD kit. Since those two categories were previously classified as CKD kits, the definition alteration means auto companies that produce with those imported components will bear a higher customs duty. Continue reading →

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Rolls Royce to Double India Dealerships

Feb. 22 – Luxury car-maker Rolls Royce has stated they will be expanding their network in India to take advantages of the new sales opportunities in the country. India is the manufacturer’s second-fastest growing market in Asia.

“India is one of the major markets for us in Asia, the second-fastest growing after China,” Rolls-Royce Motor Cars Chief Executive Officer Torsten Muller Otvos told reporters in Delhi. “We want to be present where our customers are, so we are looking at enhancing our distribution.” Continue reading →

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Car Part Manufacturers in India Enhance Capacity

Investment of up to US$3 billion is needed over the next decade to turn out engine, suspension and braking parts, and drive transmission and steering components, meeting projected demand.

Dec. 14 – Coming off a particularly strong year, Indian suppliers of automotive parts are boosting their manufacturing capability to respond to rising orders at home and abroad.

Total revenue in the sector grew 20 percent year-on-year to reach US$22 billion in the fiscal period ending March 2010. Consumption surged in the latter half, driven primarily by the domestic market. Continue reading →

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General Motors Targets India’s LCV Market

Oct. 11 – U.S.-based General Motors, alongside its joint venture partner in China, Shanghai Automotive Industry Corporation, will enter the rapidly expanding light commercial vehicles market in India by 2012.

“We are working very aggressively for the launch of commercial vehicles in India and GM hopes to corner sizeable numbers in the market soon after their launch,” GM India President Karl Slym told The Times of India. Continue reading →

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Court Ruling Says Payment in Kind Also Subject to Tax

Aug. 4 – A recent Supreme Court decision has ruled that payment made in kind will also be subject to taxes in India.

This was based on an appeal made in court by local company Kanchanganga Sea Foods regarding its payment in kind to Hong Kong-based company Eastwide Shipping for lending the use of vessels and personnel. The Indian company gave Eastwide 85 percent of fish catch as payment. It was able to get its foreign partner official permission to fish in an Indian economic zone. Continue reading →