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Growth-Oriented Budget to Increase Demand for Indian Auto Inc.: Here’s What Industry Leaders Feel

Published at February 2, 2023 by BikeJunction

The government’s focus on increasing infrastructure spending, raising tax brackets for individuals, promoting green energy, and lowering taxes on EV parts bodes well for the auto industry.

The Indian government used a middle-of-the-road strategy in the most recent budget by concentrating on measures with a significant impact. As a result, the Finance Minister, Nirmala Sitharaman, made certain decisions that met industry expectations and others that fell short.

The effective provision of Rs 13.7 lakh crore, a 33% increase in capital outlay, was welcomed by Vinod Aggarwal, President of SIAM and MD & CEO of VECV. This would help to stimulate economic growth, which would have a favorable influence on the auto sector.

He further commented on the funding for various government departments to replace the old vehicles and “some lowering of effective personal income tax rates, which will help drive personal consumption.”

According to Sunjay J. Kapur, President of the ACMA, the budget is a roadmap for an Aatmanirbhar Bharat that is digitally empowered and includes policies that would quickly promote equitable and sustainable growth.

“Focus on exports, manufacturing, local value addition, and encouraging green energy and mobility are indeed steps in the right direction. Further, the proposals for personal income tax will put more money in the hands of people thus fuelling consumption and leading to economic growth.”

The component industry also welcomed the initiatives for training and research in high-tech fields like AI, robotics, 5G, Mechatronics, and 3D printing. “With increasing telematics and software content in vehicles, these measures will ensure that our industry continues to be relevant and globally competitive.”

He continued by saying that the budget also considered the difficulties MSMEs faced in meeting contractual obligations during the pandemic. In addition, continued reductions in taxes on steel inputs and copper scrap would also help to increase the supply of raw materials for the automobile industry.

According to Satish Sharma, Chairman of the Automotive Tyre Manufacturers Association (ATMA), the growth-oriented budget will give the economy’s growth trajectory a clear boost. All industry areas, including the tyre sector, which serves as the economy’s wheels and is closely correlated to economic growth, would benefit from the large 33% increase in capital expenditures, which reached Rs 10 lakh crore, the highest level ever.

Satish further added, “However, the enhancement of duty on Compound Rubber has come as a matter of concern for the industry. As such India is deficient in rubber production, both Natural and Synthetic. In fact, Natural Rubber in India attracts the highest rate of duty of 25 percent despite the fact that there is a wide gap between demand and availability and imports are inevitable. The increase in duty will lead to increase in cost of production and affect price competitiveness. In the interest of Make in India, the increase in duty on a key raw material in which India is deficient needs reconsideration.”

The aim to scrap all old government vehicles by assisting State governments will boost sales in all segments, according to Manish Raj Singhania, President of FADA, who also notes that the capital outlay of Rs 10 lakh crore towards infrastructure spending will unquestionably aid commercial vehicle sales.

“The reduction in individual tax slabs will benefit the ailing entry-level two-wheeler and passenger vehicle segment. Reduction in the highest tax surcharge from 37 percent to 25 percent will also benefit luxury vehicle sales. With a focus on electrification, relaxation on import duties of lithium-ion batteries will help in price reduction of EVs, thus making it affordable for the masses,” added Singhania.

Singhania further added, “On the business front, being part of the MSME universe, cost of credit guarantee will reduce by 1 percent thus helping auto dealers in raising funds. The budget has also focussed on ease of doing business by reducing more than 39K compliances and enabling entity-level Digi locker for storing and sharing documents.”

Dr Anish Shah, MD & CEO of Mahindra Group, also commented, saying, “This is an outstanding budget as it is disciplined, growth-oriented, inclusive and sustainable. The Finance Minister has done a commendable job by tabling a budget that is big on consistency and driven majorly by capex. The steep increase in capex, to the tune of Rs 10 lakh crore, will ensure the continuum of cyclical recovery.”

Dr Shah further said, “Capex spending is good because it has a higher multiplier effect: every rupee spent on capex has a multiplier of Rs 3 as compared to just about Rs 0.9 for revenue expenditure. That apart, higher capex also creates jobs in the hinterland. The focus on core infrastructure, including increased funding for railways and clean energy, as well as the government’s ambitious plans for the agricultural sector, will help to improve rural incomes. Above all, it is encouraging to see the government setting the pace for climate action by announcing a ‘green budget’ that will pave the way for a greener, cleaner planet.”

The Budget 2023, according to PB Balaji, Group CFO of Tata Motors, is well-rounded and realistic and gives the car industry—which has been rebounding from the pandemic—further momentum while also turbo-charging investments. Strategically, the budget calls for a massive increase in capital spending of 33% to Rs 10 lakh crore, which would give India more momentum toward becoming a globally competitive economy. This budget’s distinguishing element would contribute to private sector investments, economic expansion, job creation, and structurally lower long-term inflation. It would also incentivize additional infrastructure investment to extend the 50-year loan to state governments without interest for another calendar year. The increased investments directly affect and significantly benefit Tata Motors’ Commercial Vehicles business.

He continued by saying that the nearly Rs 55,000 crore investment in energy transition and the National Green Hydrogen Mission for a low-carbon and green economy, as well as the customs duty exemption on importation of capital goods and equipment needed for the production of lithium-ion cells for batteries used in electric vehicles, are forward-thinking and positive steps. In addition, reduced excise taxes on blended CNG will lower the price of operating a CNG vehicle. It also bodes well for the auto sector and will reduce carbon emissions from earlier-generation vehicles if sufficient funds are allocated to dismantling old Central and State Government vehicles.

These actions will energize this emerging economy and reaffirm the government’s commitment to achieving net zero carbon emissions by 2070. These measures bode well for our company, given Tata Motors’ dedication to environmentally friendly transportation. The transition to a greener future is aided by it. Overall, this assured, an expertly balanced budget would boost spending, draw in investments without triggering inflationary fears, increase investor confidence in India’s sustainable economic story, and move the country swiftly closer to achieving “Amrit Kaal.”

He said, “While doing so, the government has aimed at a fiscal deficit target of 5.9% for the upcoming year with a clear glide path to bring the fiscal deficit below 4.5 per cent of GDP by 2025-26. The budget not only focuses on inclusiveness, youth empowerment, and skill development but also aims to give impetus to ‘Green Growth’ with sufficient outlays for supporting the recently announced National Green Hydrogen Mission, doubling of allocation for FAME 2 scheme, and providing viability gap funding for Battery Energy Storage System (BESS).”

He applauded the government’s decision to scrap old vehicles, which will help new vehicle sales further.

According to Dheeraj Hinduja, Executive Chairman of Ashok Leyland, the budget emphasizes the expansion of the digitalization of the economy and the building of a comprehensive national infrastructure. “The road transportation sector plays an important role in national development and would have an even more impactful role. The announcement that old vehicles owned by the central government and state governments will be replaced as part of the vehicle scrapping policy presents a significant opportunity for fleet modernization. This budget also echoes our sentiment and commitment to clean energy vehicles for a cleaner and greener future, as part of a national mission to achieve the net zero carbon emission goal.”

Nirmal K. Minda, Chairman, and MD of Uno Minda , praised the budget’s emphasis on encouraging consumption as well as capital expenditures. “It also offers steps to boost domestic manufacturing and encourage green energy, and mobility. The announcement of Rs 35,000 crore fund to support green projects will give a massive boost toward India’s net zero goals. Additionally, the Green credit programme, will further encourage responsible companies to take more environmentally sustainable and responsible actions.”

Minda further added, “All these steps are also going increase the jobs in these sectors. We are particularly encouraged by the push that the budget is likely to give to the auto sector in the form of a Vehicle Replacement policy which will allow States to replace old polluting vehicles. This will, in turn, benefit auto sales and electric vehicles.
We look forward to understanding the FM’s proposal to reduce basic customs duty on some goods from 21% to 13%, including lithium-ion cell batteries used in EVs.’

TVS Motor Company’s MD, Sudarshan Venu, commented that the budget was well-balanced. “The Finance Minister has put inclusivity, capital expenditure, consumption, digitization and the middle-class front and centre. The emphasis on increased infrastructure spends and support for lithium-ion battery manufacturing will be a great multiplier for the industry overall.”

Mahesh Babu, CEO of Switch Mobility, said in a statement, “The government’s focus on infrastructure with enhanced capex of Rs 2.7 lakh crore for roads and highways and the budgetary allocation for vehicle scrappage, will certainly accelerate the growth of the CV market in India. Meanwhile, in the EV sector, the government’s move to provide customs duty exemption for the import of specified capital goods and machinery required for the manufacture of lithium-ion cells for batteries is a welcome move, that will play a vital role in making local cell manufacturing cost competitive in the long run. Additionally, green growth is one of the top 7 priorities, with an allocation of INR 35,000 crore, is a step in the right direction. This will not just aid economic growth but will also accelerate the growth of the auto industry, especially EVs, as the country transitions towards net zero by 2070.”

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BSA Reveals 650 Scrambler Internationally
November 19, 2024

The news of the new BSA 650 Scrambler has just been unveiled internationally and is creating a buzz in the motorcycle world. This is the latest in a long line of scrambler models. The bike combines classic scrambler looks with modern engineering into a retro-inspired design with rugged components. Features such as knobby tyres, raised exhausts, and ground clearance are for optimum off-road capability. In addition, it is powered by a 650cc twin-cylinder engine for modern performance and reliability. Advanced features of this BSA 650 Scrambler include LED lighting, digital instrumentation, and a combination of retro style with modern practicality.  Quick Highlights:BSA 650 Scrambler blends retro and modern design.Powered by a 650cc twin-cylinder engine.Features rugged components for off-road capability.Same platform as the BSA Gold Star.Expected price range: Rs 3.40-3.45 lakh.  British motorcycle manufacturer BSA has unveiled a new 650cc Scrambler globally at the 'Motorcycle Live' show in Birmingham, UK. It is built on the same platform as the BSA Gold Star but still differs from the others because of its rugged look, modernised design, and colour scheme. Perfect Mix of Classic Styling and Modern PerformanceThe BSA B65 Scrambler represents proper scrambler styling, with a rough look from each view. The bike has a round LED headlamp with a protective grille, braced handlebars, interesting side panels, and high front and rear fenders. Furthermore, it comes with a single piece of seat, a specific exhaust, and block-patterned tyres. The fuel tank has a tag of the BSA Gold Star and comes with the standard BSA logo and a '65' decal on the side panels for that distinct look.  Additionally, the BSA Scrambler comes with the same single-cylinder, 650cc, liquid-cooled engine of the BSA Gold Star, along with a 45.6PS peak power and 55Nm of torque, matted through a 5-speed gearbox with slip-and-assist clutch. However, the engine may be tuned specifically for the scrambler's identity. It would also sport a bigger rear sprocket to enhance off-road torque.The BSA B65 Scrambler, for instance, has a round digital instrument cluster placed slightly towards the right. The twin-pod analogue cluster on the BSA Gold Star is different. The higher variants may even have smartphone connectivity features. BSA B65 Scrambler will likely feature the same frame as the BSA Gold Star, with some minor adjustments. It comes with a telescopic fork and fork gaiters, along with twin rear shocks. We expect that the suspension system will be slightly longer than that of Gold Star. The bike has disc brakes at both ends, accompanied by dual-channel ABS. The bike rides on 19-inch front and 17-inch rear spoked wheels, with 110-section front and 150-section rear Pirelli Scorpion STR tyres. Expected Launch and Pricing of the BSA B65 ScramblerBSA B65 Scrambler is likely to be released in the UK by December 2024 and could be available in India in early 2025. This variant may offer a premium of Rs 10,000 over the BSA Gold Star variant, priced between Rs 2,99,990 and Rs 3,34,990. The Scrambler will cost between Rs 3.40 lakh and Rs 3.45 lakh (ex-showroom). After its launch, it will compete with the Royal Enfield Bear 650.Before you go, have a look at the Top 5 Key Highlights of KTM 890 Duke R Follow us for the Latest Bike Industry UpdatesFacebook - https://bit.ly/BikeJunction_offl_fb    Instagram-  https://bit.ly/BikeJunction_ofl_insta    Twitter - https://bit.ly/BikeJunction_ofl_twitter

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Updated TVS Apache RTR 160 4V Launched in India at Rs. 1.39 Lakh
November 19, 2024

The new Apache RTR 160 4V has been launched in India by the company for Rs. 1,39,990 (ex-showroom). The immediate strength here is the new colour along with better updated parts. It still carries a sharp and sporty look that chases popularity among young riders. New paint options, include Granite Grey, Matte Black, and Pearl White. This TVS bike also comes equipped with golden USD front forks and red alloy wheels that seem to make it rich-looking. Such alterations make Apache RTR 160 4V look even more stylish and vibrant. Let's get into more details about this bike. Performance and MechanicsAlthough it features a new identity, the Apache RTR 160 4V retains the same 159.7cc oil-cooled engine with fuel injection. The engine is good for 17.55 bhp and 14.73 Nm of torque. Additionally, this engine comes with a 5-speed gearbox and claims to have a max speed of 114 kmph.  While the major mechanical upgrade has 37mm golden USD forks that help with handling and reduce unsprung weight. Moreover, the bike boasts a monoshock in the back and disc brakes at both the front and the back. The modes one can choose from are Sport, Urban, and Rain, depending upon riding conditions.  Tech-Packed RideSome added features to this TVS Apache RTR 160 4V include an LCD display showing turn-by-turn navigation, call and SMS alerts, lean-angle information, and the like. It also comes with multiple adjustable brake and clutch levers, Glide Through Technology (GTT), crash alerts, and more for safety. It weighs in at 146 kg with a seat height of 800 mm. Market Position and CompetitionThe updated Apache RTR 160 4V offers significant value, priced at Rs. 500 more than the top-tier variant. In the 160cc segment, it competes with models like Bajaj Pulsar N160 and Hero Xtreme 160R 4V. It remains a top pick for riders seeking style, performance, and cutting-edge technology.Before you go, don’t forget to check out the recently launched Brixton motorcycles in India. Follow us for the Latest Bike Industry UpdatesFacebook - https://bit.ly/BikeJunction_offl_fb    Instagram-  https://bit.ly/BikeJunction_ofl_insta    Twitter - https://bit.ly/BikeJunction_ofl_twitter

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Velocifero Tennis Electric Scooter Launched in India at Rs 1.30 Lakh
November 19, 2024

Velocifero, the renowned Italian two-wheeler brand, has launched the VLF Tennis in India. This electric scooter is priced at Rs 1.30 lakh (ex-showroom) and manufactured locally by KAW Veloce Motors in Kolhapur, Maharashtra. The facility has an annual capacity of 20,000 units. Deliveries will begin on November 25, and 20 dealerships are planned to open by mid-2025. Design and FeaturesVLF Tennis features a compact and angular design with a rectangular LED headlight. It weighs only 88 kg, which makes it easy to handle. It is equipped with a 5-inch colour TFT dashboard and smartphone connectivity. Moreover, the scooter has LED lights for modern functionality, which are placed really well and enhance the overall look of the scooter. Apart from this, underseat storage is limited to a half-face helmet. Performance and Specifications The Tennis EV scooter features a 2.5 kWh removable battery offering a range of up to 130 km. It is powered by a 1.5 kW hub motor with 157 Nm torque that reaches a top speed of 65 kmph. Furthermore, the charging takes three hours using the included 720-watt charger. The scooter has three ride modes, including Eco, Comfort, and Sport, providing flexibility for different needs.VLF Tennis offers a smooth ride with telescopic front forks and a cantilevered monoshock at the rear end. Moreover, the scooter comes with 12-inch wheels and disc brakes at both ends to ensure safety. The ground clearance is a decent 140 mm. Velocifero's Ambitious PlansVelocifero plans to expand across Tier 1 and Tier 2 cities like Mumbai, Bengaluru, and Jaipur. With three colour options, including Snowflake White, Fire Fury Dark Red, and Slate Gray, the Tennis aims to appeal to urban commuters. The global variant with a 4000W motor offers higher performance but is currently unavailable in India.Before you go, don’t forget to check out the top 5 500cc bikes to buy in 2024. Follow us for the Latest Bike Industry UpdatesFacebook - https://bit.ly/BikeJunction_offl_fb    Instagram-  https://bit.ly/BikeJunction_ofl_insta    Twitter - https://bit.ly/BikeJunction_ofl_twitter

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KTM reveals 2025 390 SMC R launch details for India
November 18, 2024

The 2025 KTM 390 SMC R will be launched in India with many updates that make it an amazing bike for adventure and track enthusiasts. The bike design will be sharper, and the new look will give the bike an even more aggressive stance. Advanced features include much-needed technology updates for riders. The new 373 cc single-cylinder engine claims to enhance performance and handling to the core. Major updates include a new TFT display, a revised suspension setup, and a much better braking system. The new launch is scheduled for mid-2025, and KTM hopes to strengthen its market position in the premium segment further with this new offering. Quick Highlights:Aggressive design and updated features are expected.KTM 390 SMC R's launch is under consideration.Positioned between 390 Duke and Adventure R.Expected mid-2025 launch in India.Performance-focused 373cc engine with improved handling.KTM revealed the 390 SMC R, along with the 390 Adventure R and 390 Enduro R, at EICMA 2024. Though the 390 Adventure lineup will begin in India in the early months of 2025, there is no official confirmation regarding the introduction of the KTM 390 SMC R in the Indian automobile market. KTM 390 SMC R India launch plans for 2025However, from the sources we have got to know, KTM plans to launch the SMC R in India but later than their ADV range. KTM believes that the supermoto market isn't developed in India and the company will gauge the market response before launching the KTM 390 SMC R in our market. The first supermoto bike in India in the sub-500cc category, the KTM 390 SMC R. If launched, will probably be the 'ambassador' motorcycle KTM has to offer to the rider in India. Further, it will offer the agility of the 390 Duke with a long-travel suspension to handle diverse Indian road conditions. The 390 SMC R has the same 399cc, liquid-cooled engine as the 390 Duke. The engine produces 45.3bhp and 39Nm of peak torque-and is matched to a six-speed gearbox. It is shod with high-performance 17-inch wheels and seriously grippy rubber.If launched in India, the KTM 390 SMC R is expected to be priced and performance-wise between the 390 Duke and the upcoming 390 Adventure R.Before you go, have a look at the Indian Unvelied Redesigned Scout Sixty Models.Follow us for the Latest Bike Industry UpdatesFacebook - https://bit.ly/BikeJunction_offl_fb   Instagram-  https://bit.ly/BikeJunction_ofl_insta   Twitter - https://bit.ly/BikeJunction_ofl_twitter 

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Top 5 Key Highlights of KTM 890 Duke R
November 18, 2024

KTM 890 Duke R steps into the big-bike segment in India with a sharp, modern design—all marked by a split LED headlight and angular bodywork. Its lineup also includes a TFT display, smartphone connectivity, lean-sensitive traction control, and three ride modes. An 890cc engine churns out 121 bhp, and WP suspension and Brembo brakes care for it. With a price tag of Rs. 14.50 lakh, it will take on the Triumph Street Triple RS. What makes the KTM 890 Duke R stand out in the market?KTM 890 Duke R's aggressive design is not the only reason it stands out. With its lean-sensitive traction control and cornering ABS, the KTM 890 Duke R is not just different but distinguishable from others. Moreover, the bike came with a strong 890cc engine at 121 bhp and coupled with premium WP suspension; this bike stands at the crest of performance motorcycles. Let us know about the top 5 highlights of KTM 890: Design of KTM 890:KTM 890 R retains a strong lineup resemblance to the earlier 790 Duke yet still has a modern, sharp-edged look that caught everyone's eye. The split LED headlight with LED DRL adds to an aggressive posture. It has relatively compact proportions, with angular bodywork throughout and an upswept exhaust that keeps the side view clean and clutter-free. KTM 890 Features:In terms of standard equipment, the KTM 890 Duke R gets an LED headlight, a TFT display with smartphone connectivity, and advanced features. These features include lean-sensitive traction control, cornering ABS, nine levels of traction control, and three ride modes: Rain, Street, and Sport. Engine Specs of KTM 890:KTM 890 Duke R comes with an 890cc, liquid-cooled parallel-twin engine capable of delivering 121 bhp and 99 Nm of torque. It is coupled with a six-speed gearbox with a slipper clutch. KTM 890’s Hardware:KTM 890 Duke R gets WP Apex front forks and a WP monoshock. It comes on 17-inch alloy wheels, with dual 320mm front discs featuring Brembo radial callipers and a 240mm rear disc with a Brembo single-piston floating calliper. KTM 890 Price In India:The KTM 890 Duke R is priced at Rs. 14.50 lakh and competes directly with the Triumph Street Triple RS.Before you go, have a look at the Activa Electric motor partially unveiled in new teaser.Follow us for the Latest Bike Industry UpdatesFacebook - https://bit.ly/BikeJunction_offl_fb   Instagram-  https://bit.ly/BikeJunction_ofl_insta   Twitter - https://bit.ly/BikeJunction_ofl_twitter 

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