BMW all-new X7 SUV launched at Rs 98.90 lakh

NEW DELHI, July 25: BMW has launched the all-new X7 SUV in India at Rs 98.90 lakh. The new flagship SUV sits above the X5 and comes with two engines to choose from.

The xDrive40i is powered by a 3.0-litre straight-six, turbo-petrol engine that puts out 340hp and 450Nm of torque while the xDrive30d gets a 3.0-litre straight-six turbo-diesel unit that produces 265hp and 620Nm of torque.

Both these engine options come paired to an 8-speed automatic transmission and BMW’s xDrive four-wheel drive system with surface-specific modes.

In terms of design, the X7 sports an upright front end with slim LED headlights and BMW’s large kidney grille. At the rear, it gets wide LED tail-lights that are connected by a strip of chrome. All things considered, the SUV’s design masks its large dimensions well and its muscular stance provides it with a lot of presence.

On the inside, it is similar to the new BMW X5. However, what’s different is that the X7 comes with three rows of seating, in six- and seven-seater configurations. Features on offer include a large 12.3-inch touchscreen infotainment system with Apple CarPlay and gesture control, a digital instrument cluster, five-zone climate control, BMW's Laserlight headlamps, ambient lighting that is also present on the three-piece glass sunroof, park assist (autonomous parking) and a reclining function for all-three rows.
The petrol 40i variant misses out on a few features though: it's climate control system is a four-zone unit, and its headlamps are adaptive LED units and the rear entertainment package. In addition, the diesel variant is a 6-seater as standard, while the petrol model is a seven-seater as standard but has the option to come with a six-seat configuration.

For our market, the 30d variants are locally assembled while the 40i be brought in via the CBU route. BMW will also launch the range-topping X7 M50d with a 400hp/760Nm, 3.0-litre in-line six-cylinder, quad-turbocharged diesel engine, later in October this year.
In terms of rivals, the X7 will compete with other large, luxurious SUVs like the Mercedes-Benz GLS and the Range Rover.

10 lakhs can lose jobs in auto sector

NEW DELHI, July 24: Industry body ACMA on Wednesday said around 10 lakh jobs could be on the line if the prolonged slowdown in the automobile industry continues, while seeking immediate government intervention such as slashing GST to stimulate demand.

The Automotive Component Manufacturers Association of India (ACMA), which represents the auto component industry that alone employs around 50 lakh people, sought a uniform GST of 18 per cent for the entire automobile sector in order to revive the vertical which has now witnessed 10 months of continuous decline in sales.

Terming the situation as “unprecedented”, ACMA President Ram Venkataramani said vehicle sales in all segments have continued to plummet for the last several months thus impacting the component segment as well.

“Considering the fact that the auto component industry grows on the back of the vehicle industry, a current 15-20 per cent cut in vehicle production has led to a crisis-like situation,” he said, adding “if the trend continues, the layoffs are inevitable and an an estimated 10 lakh people could be laid off”. When asked if layoffs have started, Venkataramani replied in the affirmative.

“In the components industry, nearly 70 per cent of the workforce is contract workers. So, whenever there is demand slump, there is reduction in workers,” he said. Subdued demand, recent investments made for transition from BS IV to BS VI emission norms, lack of clarity on electric vehicle (EV) policy has left the industry unsure of its future and has caused it to stop all future investments, he added.

“The industry needs urgent government intervention… We strongly recommend that the government bring 18 per cent GST rate across the entire auto and auto component sector,” he added. Under the GST regime, already around 70 per cent of auto components have come under the 18 per cent GST slab. However, around 30 per cent remain in the 28 per cent bracket. Besides, automobiles currently attract GST rate of 28 per cent with additional cess ranging from 1 per cent to 15 per cent, depending on the length, engine size and type.

He also sought for a long term clarity on government’s electrification policy while pitching for technology agnostic approach to deal with issues like air pollution and crude oil imports. Commenting on the need for a stable policy for electric mobility, Venkataramani said any further changes in targets for roll-out of EVs would increase the country’s import bill and damage the current components manufacturing ecosystem.

“This will also result in significant job losses. Therefore, a stable technology-agnostic e-mobility policy is the need of the hour to ensure a smooth transition and creation of a string local supply base,” he added.

ACMA Director General Vinnie Mehta also stressed on the need for a stable overall roadmap towards transition to EVs stating that Niti Aayog’s aggressive target to move to EVs has made the auto industry nervous, especially after taking part in thorough deliberations with Department of Heavy Industries for framing FAME II scheme.

The government think tank NITI Aayog has proposed transition to electric vehicles (EVs) for three-wheelers by 2023 and two-wheelers by 2025. Commenting on sector’s performance in 2018-19, Mehta said the auto components business stood at 3.95 lakh crore (USD 57 billion), registering a growth of 14.5 per cent over the previous fiscal. Auto component exports grew by 17.1 per cent in 2018-19 to Rs 106,048 crore (USD 15.16 billion), he added.

“The first-half of the fiscal 2018-19 witnessed a robust double digit growth, however, the second-half saw a significant slump in vehicles sales,” Mehta said. The automotive component industry contributes 2.3 per cent to country’s GDP providing employment to 50 lakh people.

India's auto sales sees biggest fall

NEW DELHI, June 14: On Tuesday, the Society of Indian Automobile Manufacturers (SIAM) reported that domestic sales of passenger cars in May 2019 suffered the steepest annual drop in almost two decades. The annual growth in domestic passenger car sales in May 2019 was -26%, the lowest since the -31% figure in September 2001. To be sure, annual growth in passenger car sales has been going down since November 2018.

Even two-wheeler domestic sales have been falling continuously since December 2018. When read with the fact that India’s GDP growth has been going down for four consecutive quarters (beginning June 2018), the car and two-wheeler sale statistics paint a disconcerting picture. Should we brace ourselves for an even bigger fall in GDP growth in the next quarter?

Looking at past statistics might offer some answers. A comparison of domestic sales of two-wheelers and passenger cars with quarterly GDP figures suggests that the recent deceleration in vehicle sales is in keeping with the fall in GDP growth.

However, there have been periods in the past where an increase in GDP growth has been accompanied by fall in car sales growth. There have also been times when growth in car and two-wheeler sales has moved in opposite directions.

Another set of statistics from the Reserve Bank of India’s Consumer Confidence Surveys (CCS) can help us understand this better. CCS gives the current perception of respondents in urban areas on key economic metrics such as general economic situation, income, employment and essential and non-essential spending. A comparison of these values shows that net current perceptions on non-essential spending, which is what car and two-wheeler purchases can be termed as, is often at variance with current perceptions on general economic situation and income.

For example, while net current perception (difference between respondents with positive and negative perceptions) on general economic situation and income was the lowest during the November 2017 CCS round, non-essential spending recorded its highest value. These comparisons include statistics from the September 2015 CCS round onwards , which was the first to record perceptions on non-essential spending.

A comparison of passenger car sales growth and net perception on non-essential spending shows that the two move together more closely and have achieved their maximum and minimum values in almost the same periods. The relationship is not as strong in the case of two-wheeler sales growth. This makes sense, given the fact that CCS tracks only urban economic sentiment, and two-wheelers have a large market in rural India.

These statistics suggest that the current crash in car sales could be rooted in a crisis of consumer confidence in the urban economy, than overall activity levels in the economy. For example, Index of Industrial Production (IIP) grew at 0.1%, 0.4% and 3.4% in the months of February, March and April this year. However, growth in domestic passenger car sales in these months was -4.3%, -6.9% and -20% in these months. This shows that even as activity levels in the urban economy could have gone up, car sales have actually plummeted.

This crisis of confidence is not a benign issue. If urban consumers start cutting back on big-ticket spending in anticipation of bad times ahead, it can actually lead to a deceleration in economic activity via a negative multiplier effect. Herein lies the biggest policy challenge for the government with just weeks before the Union Budget. Any policy which hurts consumer sentiment in pursuit of fiscal or welfare goals could also hurt economic activity.

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