FLAT OUT ON FULL THROTTLE AT RECESSION TIME
Article Abstract:
Most of the segments of the automobile industry in India are expected to record negative growth in 1998-99. The automobile industry has sought a 10 percent reduction in excise duty on utility vehicles to stimulate the demand for them. The excise duty on utility vehicles is 30 percent now. It also wants the excise duty on commercial vehicles to be reduced from 15 percent to 10 percent. In the commercial vehicles segment, the revenue from excise duty had fallen to Rs1,236 crore on a turnover of Rs10,748.98 crore in 1997-98 (Rs1,656 crore on a turnover of Rs14,398.16 crore in 1996-97). In the past 2 years, sales in this segment have slumped by 53 percent. In the components sector, production has fallen by 30-50 percent with most of the units operating at 60 percent capacity utilisation. This was due to reduction of production by leading companies like Ashok Leyland and Tata Engineering and Locomotive Company (Telco). In the multi-utility vehicles segment, sales fell by nearly 18 percent in the first half of 1998-99. In the last 3 years, the tax on multi-utility vehicles has been raised from 10-15 percent to 30 percent. (gs) (kvr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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FIAT SHIFTS GEARS TO DRIVE `WORLD CARS' IN INDIA
Article Abstract:
Fiat India, a subsidiary of Fiat SPA of Italy, intends to launch its global brands, Sienna and Palio, in India during 1999. It plans to open 49 outlets all over India by December 1998. The number of outlets are expected to increase to 70 by 1999. It intends to have 50 authorised service centres initially, which are expected to increase to 200 by 1999. It also plans to widen its network in north India. Fiat India holds majority stake in Ind Auto, which manufactures the Uno brand in India. (gs)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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