india transport portal newsletter - august, 2013

7/27/2019 India Transport Portal Newsletter - August, 2013

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A month in the India Transport Sector (No 27) August, 2013

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Copyright India Transport Portal. Edited by Digital Bizzline Ltd. All rights reserved

DOMESTIC AUTO SECTOR: FTA TALKS WITH THE EUROPEAN

UNION CAUSING APPREHENSION

The Indian automobile industry, which is

experiencing the first slump in over a decade is

poised to receive another setback. The ongoing

EU-India Free Trade agreement (FTA) talks which

have been in progress in Brussels since 2007 are moving

towards breaking down trade barriers in the Indian markets.

More information on ITP

LUXURY CAR PRICES TO SEE A SPECTACULAR DIP IN PRICES

The reason behind the drastic price drop is

credited to the Indian Governments plan to cut

prices of customs duty on cars shipped from

countries in the European Union, along with SouthKorea and Japan, countries with which it has FTA

or Free Trade Agreement.


BUYERS CHOOSING SEDANS AND CROSSOVERS OVER

MICRO MODELS

The Renault Duster has emerged as the best-selling

SUV on Indian markets, highlighting a radical

change in the preferences of the Indian

population. Indian buyers are increasingly

choosing sedans and crossover models although the market

has traditionally favoured smaller more economical micro

cars.


CONTINUED INVESTMENT DESPITE INDIAS SLUMPING CAR

MARKET

In spite of the drop in car purchases in India, the

investment in the automobile sector continues

undeterred. This positive outlook of carmanufacturers is understandable in the light of the

fact that the sales of luxury cars continues to grow unabated.


MOTORCYCLES AND SCOOTERS: STEADY PRICE INCREASES

Top two-wheeler manufacturers in India such as

Bajaj Auto, TVS Motor Company and Honda

Motorcycle and Scooters India (HMSI) have

decided to finally increase prices on all their two-

wheeler vehicles from April 1st, 2013.


A SHIFT TO EXPORT PARITY PRICING

FOR FUEL IN THE OFFING

The Ministry of Finance has

decided to shift from a

trade parity pricing policing

(TPP) to one based on

export parity (EPP) for fuel with the

intention of reducing the fiscal deficit.

The oil companies managed by the

public sector are already struggling

and this move could negatively

affect their profitability.

More information in ITP

INDIAS BIGGEST TRADING PARTNER,CHINA, FACES DELAYS

The Chairman of Chinas

National Development

Reforms Commission,

Zhang Ping, was in India

late in 2012, with a group of

delegates, to hold strategic talks

about committing to improving the

economy in one others countries.

According to the official Chinesenews agency, Xinhua, Mr.Ping had

said that they intend to push forward

cooperation in infrastructure

including railway.


CHINAS GROWTH: A THREAT TO

INDIAN TYRE MAKERS

Indian tyremakers are

facing the threat of being

adversely affected by the

recent changes in

government policy and the

rise of Chinese tyre manufacturers

which are steadily making inroads

into the Indian tyre market.


CAR AND VEHICLES MARKET MACRO FACTORS
http://indiatransportportal.com/2013/07/fta-talks-with-the-european-union-causing-apprehension-in-the-domestic-auto-sector/http://indiatransportportal.com/2013/07/luxury-car-prices-to-see-a-spectacular-dip-in-prices/http://indiatransportportal.com/2013/07/buyers-choosing-sedans-and-crossovers-over-micro-models/http://indiatransportportal.com/2013/07/continued-investment-despite-indias-slumping-car-market/http://indiatransportportal.com/2013/07/motorcycles-and-scooters-to-see-steady-price-increases/http://indiatransportportal.com/2013/07/a-shift-to-export-parity-pricing-for-fuel-in-the-offing/http://indiatransportportal.com/2013/07/indias-biggest-trading-partner-china-faces-delays/http://indiatransportportal.com/2013/07/chinas-growth-threatening-indian-tyre-makers/http://indiatransportportal.com/2013/07/chinas-growth-threatening-indian-tyre-makers/http://indiatransportportal.com/2013/07/indias-biggest-trading-partner-china-faces-delays/http://indiatransportportal.com/2013/07/a-shift-to-export-parity-pricing-for-fuel-in-the-offing/http://indiatransportportal.com/2013/07/motorcycles-and-scooters-to-see-steady-price-increases/http://indiatransportportal.com/2013/07/continued-investment-despite-indias-slumping-car-market/http://indiatransportportal.com/2013/07/buyers-choosing-sedans-and-crossovers-over-micro-models/http://indiatransportportal.com/2013/07/luxury-car-prices-to-see-a-spectacular-dip-in-prices/http://indiatransportportal.com/2013/07/fta-talks-with-the-european-union-causing-apprehension-in-the-domestic-auto-sector/


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FRENCH VINCI: AN INTEREST IN INDIAN ROADS

The French construction giant, Vinci, has shown an

interest in Indias road-building sector. At a time

when other construction majors such as GMR

Infrastructure Ltd. and GVK Power and

Infrastructure Ltd. have backed out of their contracts with

the National Highways Authority of India (NHAI), Vinci

believes it can overcome obstacles that have plagued the

road sector.


PUBLIC PRIVATE PARTNERSHIP PROJECTS: FUNDING FROM

BANKS

According to the Department of Economic Affairs

of the Ministry of Finance, 53 % of all the PPPprojects in the country are road projects, and their

value accounts for 46.1% of the total.


NATIONAL HIGHWAY AUTHORITY: TO DROP PUBLIC PRIVATE

PARTNERSHIP MODEL

The NHAI has decided to stop using the PPP model

for road development. The agency is currently

going through difficult conditions and cannot

employ the PPP model for its larger projects. Of the22 projects that are open for bidding, only 9 have received

bids in 2012-2013. Perhaps the main reason is the lack of

stable and satisfactory financing solutions.


SUPREME COURT: ENVIRONMENTAL CLEARANCE TO BE

SEPARATED FROM FOREST CLEARANCE

In March 2013, the Supreme Court of India

approved the separation of environmental

clearances (EC) from forest clearances (FC) for

construction projects. Matters had come to a

head between the National Highways Authority of India

(NHAI) and the Ministry of Environment and Forests (MoEF)

when the NHAIasked the SupremeCourt on January 5, 2013

to intervene so that their stalled projects could go ahead.


WITH DFC, RAILWAYS SHARE IN

FREIGHT TRANSPORTATION SHALL

AGAIN RISE PUNIT AGRAWAL

HEAD STRATEGIC MANAGEMENT

OF DFCCIL

Punit Agrawal is currently

Head Strategic

Management of DFCCIL,

New Delhi. He has more

than 15 years of

experience in Indian Railways and

Dedicated Freight Corridor

Corporation of India Limited (DFCCIL);


ANDHRA PRADESH RAILWAY

PROJECTS: MINISTER SEEKS RS.

40,000 CRORES

Kotla Jaya Surya Prakash

Reddy, Andhra Pradeshs

Minister of State for

Railways said that the

state needs a hefty sum of

Rs. 40,000 Crores (approx. 700 million

USD) to complete all pending staterailway projects. He said that there

are about thirty railway projects that

are yet to be completed and plans to

advance progress through phased

completion stages.


ROAD CONSTRUCTION RAILWAY CONSTRUCTION
http://indiatransportportal.com/2013/07/french-vinci-takes-an-interest-in-indian-roads/http://indiatransportportal.com/2013/07/public-private-partnership-projects-to-receive-welcome-funding-from-banks/http://indiatransportportal.com/2013/07/national-highway-authority-wants-to-drop-public-private-partnership-model/http://indiatransportportal.com/2013/07/supreme-court-separates-environmental-clearance-from-forest-clearance/http://indiatransportportal.com/2013/07/with-dfc-railways-share-in-freight-transportation-shall-again-rise-punit-agrawal-head-strategic-management-of-dfccil/http://indiatransportportal.com/2013/07/minister-seeks-rs-40000-crores-to-complete-andhra-pradesh-railway-projects/http://indiatransportportal.com/2013/07/minister-seeks-rs-40000-crores-to-complete-andhra-pradesh-railway-projects/http://indiatransportportal.com/2013/07/with-dfc-railways-share-in-freight-transportation-shall-again-rise-punit-agrawal-head-strategic-management-of-dfccil/http://indiatransportportal.com/2013/07/supreme-court-separates-environmental-clearance-from-forest-clearance/http://indiatransportportal.com/2013/07/national-highway-authority-wants-to-drop-public-private-partnership-model/http://indiatransportportal.com/2013/07/public-private-partnership-projects-to-receive-welcome-funding-from-banks/http://indiatransportportal.com/2013/07/french-vinci-takes-an-interest-in-indian-roads/


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OVERSUPPLY OF TRUCKS: CRASHING SALES FIGURES

There seems to be no light on the horizon for the

sustained weak phase in the Indian truck market as

it registered negative growth once again forJanuary 2013. With supply of new trucks flooding

an already saturated market, there is little sign of demand

picking up.


VE COMMERCIAL VEHICLES: TO EXPAND AGGRESSIVELY IN

INDIAS NORTH-EAST

In a bid to further strengthen its foothold in the

Indian commercial vehicle business, VECV has

opened a modern, state-of-the-art dealership for

Eicher trucks &buses in Guwahati. The Gargya

Group, who have been a part of the auto business for almost

14 years, will be responsible for the management of the

dealership.


SCANIA: A VISION FOR INDIAN BUS MARKET

Swedish automotive company, Scania, has set its

eyes specifically on luxury intercity bus services withthree specific models which include the 45-seater

double-axle and the 49 and 53-seater multi-axle

versions. Its inter-city bus coaches have been named Scania

MetroLink HD.


LAMBORGHINI: TRACTORS TO HIT INDIAN ROADS

Lamborghini, a name associated with luxury sports

cars, will soon be seen cruising through the Indian

agricultural fields. Italian Farm equipment giantSame Deutz-Fahr (SDF) Group recently announced

its plans to launch its range of tractors in India

sometime in the near future.



Indian Transport Portal is the leading

independent hub on indian

transportation (road safety, fuel

savings, carbon emissions,

transportation infrastructure,

sustainable transportation etc.).

India Transport Portal is edited by

Digital Bizzline Ltd. a UK based press

agency recently launched by a

group of freelance journalists.

Digital Bizzline Ltd. is registered at the

Companies House UK: 07301455

[email protected]

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New Delhi

TRAFFICINFRATECH EXPO

December 1720, 2013

New Delhi

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india transport portal newsletter - august, 2013

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