India’s export hub image: RC Bhargava, Maruti Suzuki Chairman, Make in India can reinforce

New Delhi: Even as connected, autonomous, shared and electric mobility solutions are disrupting the automotive landscape globally, vehicle makers can’t afford to take their eyes off conventional vehicles which will continue to be a formidable part of business in the future.

Maruti Suzuki Chairman RC Bhargava on Thursday emphasised there is a need to focus on alternate energy solutions such as biofuels and compressed natural gas in India’s drive to bring on road cleaner and greener vehicles and reduce the dependency of oil imports.

Given the current cost structure of electric vehicles, customer acceptance would continue to be a challenge in the near future. In the meantime, hybrid vehicles — vehicles powered by biofuels and compressed natural gas — can contribute significantly towards reducing India’s oil import bill.

“Only 10 million cars, out of the 70 million vehicles on road by 2030, will be electric.

So for the non-electric vehicles, we need to consider energy solutions which are clean and green,” Bhargava said on the sidelines of the ETAuto Global Auto Business Summit.

The day-long summit deliberated and discussed issues right from ‘Make in India’ to mobility solutions for future including the role of startups and innovators in this disruptive environment.

Industry stalwarts including RC Bhargava, Vivek Chand Sehgal, chairman of Samvardhana Motherson Group, and Shi Jie, head of engineering at China’s largest car maker SAIC Motor, gave their views on the disruptions ahead.

Sehgal cautioned that there is no doubt the automotive industry is being influenced by connected, shared, autonomous and electric vehicles, yet they still account for a very small portion of the overall industry.

“Yes, there is a lot of talk, but the action is not as big as talk. About 102 million cars were sold, only one million were electric, there are factors emerging on the horizon but they are not dramatic, there will be a gradual shift. The core market is still very strong and one cannot lose sight of it to grow,” added Sehgal.

Motherson Sumi today has become the fastest growing auto component maker in India and fast expanding wings globally.

India is on the radar of the biggest vehicle makers in the world and it is set to become the third-largest car market in the coming three to five years. The experts attending the event underlined that beyond the significant domestic demand opportunity of the future, India can reinforce it’s image of an exports hub with ‘Make in India’ for not just small cars but electric or hybrid vehicles.

Ashok Taneja, MD & CEO of Shriram Pistons, welcomed governments move to offer no import duty for electrical vehicle components. However, he stated that these duties should be gradually hiked in order to promote local manufacturing. 

BMW Chief Says Considering Second U.S. Manufacturing Plant

BMW is considering a second U.S. manufacturing plant that could produce engines and transmissions, Chief Executive Harald Krueger said on Tuesday, shortly after a report that U.S. President Donald Trump would impose tariffs on imported cars from next week. Krueger in an interview at the Los Angeles Auto Show also said he backed British Prime Minister Theresa May's current Brexit plan to divorce the United Kingdom from the European Union.

"The compromise on the table is something I can clearly support," he said. May is drumming up support for the divorce deal with the European Union ahead of a December 11 vote in British parliament. "We're at the range where you could think about a second location" in the United States, he said, adding that such a factory would provide a natural currency hedge.

BMW is considering changes to U.S. operations as sales in the region grow, Krueger said. BMW has a U.S. vehicle assembly plant, in South Carolina, is planning to open a Mexico factory next year, and is considering changes to its current scheme of importing engines and transmissions.

BMW India Cars To Become More Expensive From January 2019

BMW India has announced a price increase of 4 per cent across its product range.

BMW India has announced to increase the prices across its model range by up to 4 per cent from January 2019. The rise in prices could be because of the cyclical revision which happens due to various macro-economic factors such as increase in the input cost, or increase in freight rates due to increase in fuel prices. However, BMW India has not cited any such reason. According to the information, the increase in prices is only limited to BMW and Mini cars which are sold through 44 BMW dealerships across India. The information did not mention anything about BMW Motorrad.

Speaking about the decision, Vikram Pawah, Chairman- BMW Group India said, "BMW India remains at the forefront of the luxury car market, offering 'Sheer Driving Pleasure' through its aspirational products and unmatched levels of customer centricity. From 1 January 2019, BMW India will increase the prices of its cars by up to 4%. BMW India will continue to present an extremely attractive value to its customers through pioneering products, best-in-class service experience and comprehensive financial solutions and offers from BMW India Financial Services."

The range of locally produced BMW cars in India include the BMW 3 Series, the BMW 3 Series Gran Turismo, the BMW 5 Series, the BMW 6 Series Gran Turismo, the BMW 7 Series, the BMW X1, the BMW X3, the BMW X5 and the MINI Countryman. BMW also sells the X6 SUV, the Z4 Convertible, the M2 Competition, the M3 Sedan, the M4 Coupe, the M5 Sedan, the X5 M SUV, the X6 M SUV and the i8 which are available in the country as completely built-up units (CBU).

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