Spending
Small Cars Are Taking off Again

Increased demand from booming rental services is reshaping the car sales scenario

 

The introduction of smaller cars in the Hyundai Santro and Maruti Eeco/Omni size range, coupled with app-based taxi services which offer fares lower than auto-rickshaws, has transformed the public transport scenario in Delhi and the National Capital Region. How this will impact the sales of new cars is yet to be seen; but friends in the dealership trade are expecting a shakeout and change in the business model, where fewer outlets in prime areas are anticipated.

 

One of Delhi’s oldest car dealership showrooms, British Motor Car Company in Connaught Place, appears to be re-inventing itself as a mall of sorts.

 

Likewise, many car dealerships and automobile garages in the Scindia House complex, that occupies much of the space between Connaught Place, Janpath and Kasturba Gandhi Marg, are rapidly giving way to other businesses. Even the Delhi Transport Corporation office at Scindia House has been pushed back into a by-lane and can just about be reached by foot now.
 
There is certainly a big change in the offing, with the way automobiles, especially cars and two-wheelers, will be sold. Expect many of these changes to creep in with the huge volumes of 2014 manufactured cars and bikes lying unsold as we move into the new year—2015. Barring a couple of models that have a waiting list, the rest will, eventually, need to be sold cheap and probably not through dealerships, as we know them.
 
A Simpler Babudom
 
The cars which have a genuine waiting list largely include the sub-four-metre sedans like the Maruti D’Zire, Tata Zest and Hyundai XCent. One reason for this is the increased demand from government buyers, with the new rule that the total cost of a new replacement car should not exceed Rs4.75 lakh and fuel consumption per month should be within 200 litres. This also applies to cars that are rented for official purposes.
 
A friend of mine who is secretary to the Central government, was spotted in a Maruti D’Zire, a few days ago, considering that it does not get higher than that in the IAS, I hope the message—that large cars are little more than vanity—filters down to the rest of us car-buyers too.
 
A Checklist for Car Servicing
 
With service intervals for cars now reaching 15,000 kilometres or a year, some simple maintenance chores have to be performed by owners without waiting for the service, even if it means heading for a workshop. Here’s a shortlist:
 
Get the air filter or filters cleaned at least every four months. Dust is no longer the only culprit; simple air pollution and smog is playing havoc with air filters in many Indian cities. Many car-owners cannot do this on their own. I write on automobiles, but hesitate to mess up the air filter in our new car, because I simply do not have the correct tools. And blowing a pressure hose through the filter can ruin the filter!
 
Check the engine oil levels. While modern cars and engines do not lose engine oil like older cars and engines would, trouble is that stop-go driving as well as the over-use of air-conditioners, at low engine speeds, is also playing havoc with engine oil consumption.
 
Tyre rotation is another problem. Typically, I would like to see tyre positions rotated every 5,000km at least; but, if that is not possible, they should be inter-changed at least once between services. 
 
Finally, blow through or clean-out air-conditioner units. Again, don’t wait till the annual service for this; since, along with the others, this impacts fuel consumption too.
 
(Veeresh Malik started and sold a couple of companies, is now back to his first love—writing. He is also involved in helping small and midsize family-run businesses re-invent themselves.)

User

Nifty, Sensex will stay weak – Tuesday closing report

Indian markets are now battling massive fear across the world. Rallies will be sold

 

We had mentioned in Monday’s closing report that Nifty and Sensex are making an attempt to stabilise and rise, but a rally will materialise only if Nifty closes above 8270.
 
Today the market opened lower and started to move sharply down. Every attempt to revive was met with further selling. The indices made the highest losses today since 8 July 2014.
 
Sensex opened at 27,181 and hit a high almost at the same time at 27,199. Nifty opened at 8,173 and reached up to 8,189. The indices moved lower to hit a low at 26,736 and 8,053. Sensex closed at 26,781 (down 538 points or 1.97%) while Nifty closed at 8,068 (down 152 points or 1.85%). NSE recorded a higher volume of 102.38 crore shares. India VIX rose 16.32% to close at 16.3075.
 
India's merchandise exports rose 7.27% to $25.96 billion in November 2014 over November 2013, data released by the Ministry of Commerce & Industry after trading hours yesterday showed. Imports jumped 26.79% at $42.82 billion in November 2014 over November 2013. The trade deficit rose sharply to $16.86 billion in November 2014, from $9.57 billion in November 2013.
 
India's gold imports in November reached 151.58 tonnes, according to data provided by India's trade ministry on Tuesday, marking a 38% increase from 109.55 tonnes in October.
 
A fall in oil prices favours airlines and Jet Airways (7.20%) was the top gainer in ‘A’ group on the BSE. The Indian rupee slumped to low of 63.45 per dollar in the early trade today. This is the weakest level in past 11 months. IT stocks were among the major gainers today. HCL Technologies (4.58%), TCS (3.40%) and CMC (2.48%) were among the top four gainers in the group. TCS was at the top in the Sensex 30 pack followed by Infosys (0.69%).
 
Reserve Bank of India on Monday eased rules for long-term loans by banks to the infrastructure sector and heavy industry. The RBI said only loans where the combined exposure by lenders in a single project is more than Rs 500 crore would be eligible under the eased regulations. Unitech (10.75%) was among the top two losers in ‘A’ group on the BSE.  Sharp fall in the crude oil price brought Sesa Sterlite (7.77%) to the bottom of the Sensex 30 stocks. 
 
On Monday US indices closed in the red. US manufacturing output recorded its largest increase in nine months in November as production expanded across the board, pointing to underlying strength in the economy. Factory production rose 1.1% after advancing 0.4% in October, the Federal Reserve said on Monday.
 
Most of the Asian indices closed in the red. Nikkei 225 (2.01%) was the top loser. China's flash manufacturing purchasing managers' index from HSBC Holdings Plc and Markit Economics fell to 49.5 for December, from 50 last month. It's the first time since May that the gauge has slipped below 50, the threshold between expansion and contraction.
 
In a move to try to arrest the rouble's crash, Russia's central bank made a drastic interest rate move overnight, raising its key rate from 10.5% to 17%.
 
European indices were showing mixed trading. US Futures were trading sharply lower.
 
The PMI data out of Germany showed multi-month lows for the services and composite PMIs, but the manufacturing PMI rose to 2-month high. France's manufacturing PMI fell to a four-month low.

User

COMMENTS

VGANESAN

2 years ago

This is exactly ihave mentioned in ur recent fortnightly market view.Ur editor says buy on shallw correction.On the same day i have posted comment inur site u may say sell on rallies. Today exactly it happened u r saying sell on rise.Now i request u to concentrate on ur longterm fundamental calls more.

CBI questions P Chidambaram in Maxis-Aircel deal investigation

P Chidambaram's questioning was in relation to his inappropriate clearance to the Aircel-Maxis deal, which he was not authorised to clear, according to the CBI

 

A PTI report said that CBI examined former Finance Minister P Chidambaram in connection with the Foreign Investment Promotion Board (FIPB) clearance given to Rs3,500-crore Aircel-Maxis deal in 2006.
 
The Finance Minister was competent for giving sanction only up to Rs600 crore and the Aircel-Maxis deal was way above that limit. The CBI had sought to examine ex-FM Chidambaram in this regard.
 
A deal of this size could only have been cleared by the Cabinet Committee on Economic Affairs headed by the Prime Minister and yet Chidambaram did not refer the deal to the CCEA.
 
When contacted, Chidambaram told PTI “they (CBI) took a brief statement from me on the FIPB approval. I repeated what I said in my press statement earlier. Nothing more than that.”
 
Chidambaram had said in September that the file regarding the case was put up before him by officials and he had approved it "in the normal course."
 
“In the Aircel-Maxis case, the FIPB sought the approval of the Finance Minister in accordance with the rules. The case was submitted through the Additional Secretary and Secretary, DEA. Both of them recommended the case for approval. Approval was granted by me, as Finance Minister, in the normal course”, Chidambaram had said in the statement.
 
He had said “I understand that the officials of FIPB who dealt with the matter have explained to the CBI that under the rules, as they stood then, the case required only the approval of the Finance Minister.”

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)