With the domestic auto market going on a downhill slide, Tata Motors and Maruti Suzuki India (MSI) have cut production. Car makers, however, are hoping that a slew of upcoming new launches will help revive the market
New Delhi: With the domestic auto market going on a downhill slide, Tata Motors and Maruti Suzuki India (MSI) have cut production as the automobile industry braces up for a single-digit sales growth this fiscal, reports PTI.
Car makers, however, are hoping that a slew of upcoming new launches, including MSI's Swift, Honda's new Jazz and Brio, Volkswagen's Jetta, and the recently introduced Beat diesel by General Motors India will help revive the market.
"Our production is exactly as per demand. We keep in mind the need to keep inventories at both the company and dealers' end in balance," a Tata Motors spokesperson said.
If there is a requirement for adjustment in production, the company does it. At the moment there is a slowdown in demand, he added, but did not specify details of the cut.
In July, Tata Motors' car production was down 26.96% to 19,985 units as against 27,362 units in the same month last year. Its domestic car sales were also down 43.13% to 13,997 units.
Last week, MSI had said it has cut production of most of its models, including the best selling Alto, by 5%, during this month due to slump in demand in the domestic market.
MSI managing director and CEO Shinzo Nakanishi had said the company reduced production of all the models, except Swift and DZiRE in August citing bad market conditions.
In July, MSI's car production was at 72,587 units, down by 21.08% as compared to the same month last year, mainly due to non-production of Swift. Its domestic sales were down by 31.04% to 52,483 units.
While admitting that the market is on a downhill drive, other firms like General Motors India, Honda Siel Cars India and Hyundai Motor India, however, have not taken such steps but are hoping that new launches will help sales counter ticking.
"The industry is in a bad shape. Yet, there are a lot of new launches happening. Any new launch gives an impetus to the market and that should help the market. Moreover, the festive season is round the corner and we are hopeful that the demand will revive," Honda Siel Cars India (HSCI) senior vice-president (sales and marketing) Jnaneswar Sen said told PTI.
This week Maruti is launching its new Swift, while Volkswagen and HSCI are also introducing new versions of sedan Jetta and hatchback Jazz respectively in the market.
General Motors India (GMI) vice-president P Balendran said a lot of uncertainties like high interest rate and fuel prices were having a negative impact on auto sales.
"Earlier we were expecting double-digit growth but it is likely to be only in single digits this fiscal. If the industry grows at 6%-7%, we should be happy," he said.
In July this year, domestic passenger car sales fell for the first time after 30 months of continuous growth, registering a 15.76% decline mainly due to hikes in lending rates and fuel prices.
This is in contrast to the 29.72% growth witnessed last fiscal to touch 19,82,702 units.
Despite the present situation, Mr Balendran said General Motors India has not cut its overall output due to good demand of the newly launched Beat Diesel.
"As for other models, we have always produced based on demand, which we are continuing that right now," he added.
An official of Hyundai Motor India (HMIL) said the company is not contemplating any move to reduce production at present.
Last month, HMIL had produced 55,353 units, up 5.94% as compared to July last year. Its domestic car sales were, however, down by 11.49% to 25,501 units.
Mr Sen of HSCI also said the company is maintaining production at 5,000 units a month level and there were no plans to change it at the moment despite the difficult market conditions.
"With the difference between petrol and diesel prices, there is a preference for diesel vehicles. We are the only manufacturer without a diesel car in our portfolio. Despite that we are managing well," he said.
The Gandhian anti-corruption crusader has been arrested and sent to Tihar. A number of concerned citizens have written to us, protesting the draconian action on Team Anna
It was with a sense of disbelief that the nation woke up when news started coming in than the government had made 'pre-emptive' arrests to prevent Team Anna from carrying out its peaceful protest against corruption and the call for a more comprehensive Lokpal Bill.
Here are a few responses that Moneylife has received from various groups of concerned citizens:
1) Forum for Better Visakha (FBV, a coalition of NGOs and concerned citizens, based in Vishakhapatnam): EAS Sarma, former power secretary, and convener of FBV, wrote to us, condemning the government's "action to trample the Fundamental Rights of Shri Anna Hazare and his team." FBV called it an "onslaught on the civil society and the people of India."
The group's observations are:
a) We are shocked and deeply distressed at the manner in which the government and its minions have trampled on the Fundamental Rights of Shri Anna Hazare and his team. It is nothing but a blatant attempt to shield the corrupt and gag the voice of the people of this country against the scourge of corruption and black money in India. The government's motives are clear.
b) It is ironic that those who are corrupt among the ruling elite are allowed to move freely on the streets of Delhi and along the corridors of power in the Central Secretariat and elsewhere, whereas Anna Hazare who has spoken out vehemently against corruption should be arrested and put behind bars in Tihar Jail.
c) When senior persons in authority were prima facie found to have plundered the nation of its natural resources and stashed away their black monies in tax havens all over the world, the same government had treated them with kid gloves and allowed them enough leeway to erase the evidence and cover their tracks.
d) What all Anna Hazare had said was that the Bill in question should have the necessary strength and ambit to allow Lok Pal to be an effective custodian of the people's resources and their interests. Anna Hazare has not asked the Prime Minister for a lucrative portfolio in his Cabinet, as others did, not grabbed the precious spectrum for personal gains as the Prime Minister's colleagues did, not grabbed prime mineral blocks and valuable public lands non-transparently as some in the government allowed their associates to do and not stayed in five-star hotels as some Union Ministers did. By treating Anna so ham-handedly and in such an insensitive manner, the government has literally brought back memories of the Emergency days of 1975-77.
e) It is ironic that this should happen soon after the Prime Minister delivered his resounding speech from the ramparts of Red Fort on the 64th Independence Day that he would combat the evil of corruption with all his might.
f) The public anger against the scams and the scandals that have characterised the government during the last few years is reflected in the demonstrations and dharnas that the people all over the country have organised today to express their solidarity with the national campaign against corruption. On our part, we, the members of FBV too express our support to and solidarity with Anna Hazare's movement against corruption.
g) The government should know that, while the Parliament is supreme, it is the people of this country in whom the Constitution has vested the ultimate authority to determine the country's future. The people of this country are determined to invoke that authority.
h) The Constitution has conferred Fundamental Rights on each and every citizen. These include the right to freedom of expression of views. No government can ever suppress that right wantonly.
i) We appeal to the civil society organisations all over the country to support Anna Hazare, despite differences in perception, if any, as Anna Hazare's struggle against corruption is the people's struggle against the well-entrenched corrupt.
j) We are confident that Anna Hazare will succeed. We are confident that the people of this country will overcome the insensitive attitude of the government and succeed in setting up a durable institutional structure as the bulwark against corruption.
Moneylife has had more responses coming in from across the country, here's a response we received from OP Monga, trustee of Mumbai-based Forum for Fast Justice, whose two trustees have been arrested in New Delhi: "We hereby inform you that Bhagvanji Raiyani and M Venkatraman, Trustees of Forum for Fast Justice, Mumbai, have been arrested in Delhi along with Shri Anna Hazare at Delhi today morning. They were taken to a stadium which has been converted into a temporary jail by the Delhi Government. They were fasting along with Anna Hazare. They had gone to Delhi to support Mr Hazare.
"The Forum for Fast Justice strongly supports the anti-corruption crusade led by Anna Hazare. We are ready to sacrifice anything for this cause."
In a media release from Hyderabad, Lok Satta party President, Dr Jayaprakash Narayan, said that the detention of Anna Hazare was "senseless."
"Through its reckless and senseless detention of Anna Hazare and team, the Union Government squandered away a precious opportunity to build a national consensus on creating an effective mechanism to curb corruption," Dr Narayan said today.
He said there could be honest and legitimate differences of opinion and approach to the creation of the Lokpal, Lokayukta, and ombudsmen institutions between the Government and civil society. Some of the demands of the civil society on the Lokpal institution may be far-fetched, Dr Narayan said.
In such a situation, the Government is obliged to exercise patience and restraint, explain its viewpoint, and convince the public. Instead, Dr Narayan, said, the Government has resorted to the heinous practice of levelling corruption allegations against Anna Hazare and others fighting against corruption. "The Government's conduct is improper, immoral, immature, and counter productive. If there is any substance in the allegations it is making now, why has it not acted earlier," he asked. Instead of strengthening the Constitutional processes, the Government by its vindictive attitude is alienating people, Dr Narayan said.
He said that the Lokpal Bill has now become Parliament's property and the civil society should recognise that Parliament is an institution elected by people. It is time that all sections including the Government, political parties, civil society, and media mount concerted and authentic efforts to curb corruption, he said.
Dr Narayan regretted that the public debate on the Lokpal Bill has ignored corruption at the State and local Government levels. The Government should strengthen investigating agencies like the CBI (Central Bureau of Information) and the ACB (Anti-Corruption Bureau) and insulate them from political interference by bringing them under the protective umbrella of the Lokpal and Lokayukta.
"The need of the hour is mature negotiations and arriving at a consensus, said Dr Narayan and added there is no place for inflexible views in public debate. He appealed to all sections of society to "protest peacefully against the detention of Anna Hazare and others" without "disrupting people's normal life."
The Lok Satta Party is planning mass dharnas throughout the State on 17th August and demonstrations in association with others on 18th August to protest against the arrest of Anna Hazare and his team.
The National Alliance of People’s Movements (NAPM) has said that the anti-corruption campaign is a struggle for democracy. It also called upon the government to heed this national call, not just for a strong Lokpal Bill, but also for bringing in systemic change against the corrupt, corporatized, communal, consumerist governance and development model. The entity has also called for an unconditional apology to the nation from the Prime Minister and meaningful dialogue with all people’s struggles on the issue of strong anti-corruption legislation and systemic reforms.
All India Bank Employees Association’s (AIBEA) General Secretary Vishwas Utagi said in a statement on Wednesday, “Release Anna Hazare unconditionally. Don’t curb the democratic right to protest. Remove corrupt people from government. All our unions should hold demonstrations in all cities and towns on these demands.”
Section 144 of the Criminal Procedure Code is invoked depending on the urgency of the situation, so as to act absolutely—and that the emergent situation must be sudden and the consequences grave.
Did Anna Hazare's peaceful movement warrant such a draconian crackdown? We'll keep you posted as and when we get more responses from citizen groups and concerned citizens.
Security concerns still high as Indian Navy intercepts Iranian vessel drifting within Indian economic zone without intimation
The day after MT Pavit, the oil tanker which ran aground at Juhu in suburban Mumbai a fortnight back and was re-floated on Monday, a shipping veteran has demanded that the captain of the vessel be summoned, to find out why he abandoned the ship that had no fault in it.
"This is a clear case of incompetence," said Captain Ashok Malkani. "The MT Pavit, staunch , stout and upright, was carried by the ocean currents for over a month, unmanned and adrift .It drifted unobserved , untracked and unreported till it gently washed up like some jetsam on Juhu beach." he said.
According to information available, the 999-tonne vessel was abandoned off the Oman coast on 29th July, apparently due to engine failure. The salvage operation that took about four days was completed yesterday and the ship is being towed to Dighi port in Maharashtra.
While describing the salvage operation as a perfect one, Captain Malkani said that the Directorate General of Shipping should inquire into the case and that the captain of MT Pavit should be called to testify about the circumstances in which the ship was abandoned. "This will also help clear doubts about whether there was any attempt to make a false claim on the insurance company," he said.
Meanwhile, the Directorate General of Shipping has said that it would undertake an investigation into the matter under the Merchant Shipping Act, 1958. The directorate stated that, "The owners (of the MT Pavit) have been directed to summon the crew for making depositions before the investigating authorities."
Several security as well as environment concerns have been raised since the vessel ran aground on 31st July. Within a couple of days, yet another vessel, MV Rak Carrier, sank off Mumbai where it had been anchored for some days, apparently without the knowledge of the coastal and shipping authorities.
Rak was carrying 60,000 tonne of coal from Indonesia to Dahej in Gujarat, besides over 300 tonnes of fuel oil and more than 50 tonnes of diesel at the time. The Coast Guard and ONGC have been fighting the oil spill from the vessel which appears to have decreased.
Then on Sunday, the Indian Navy intercepted an Iranian cargo vessel off Mumbai, which had been found to be drifting in the Arabian Sea, within India's exclusive economic zone, without any official intimation. MV Nafis was spotted during a reconnaissance air patrol. On a search of the ship, the navy police founder two AK-47s and a pistol. Five crew members have been detained.
Veeresh Malik, seafarer and Moneylife columnist, has consistently raised these questions and forcefully too, in the current instances. "The case of the Pavit is a complete mystery of how a ship that was allegedly sinking, landed up off Mumbai with oil drums lashed and intact on deck, is going to need more forensic capabilities than shown so far." (Read: "Why are overage ships with improper documents being chartered for Indian ports?")
EAS Sarma, former finance and power secretary, who is settled in Visakhapatnam, the Eastern Naval Command base, told Moneylife, "There have been many instances of ships having been abandoned off the Mumbai shore. There might be a possibility that these ships are dumping scrap in our waters, thinking that regulators won't take any action. So a thorough investigation from the security and environmental damage should be initiated."
Moneylife has raised these concerns in previous reports, but there has been little or no effective action to ensure that such instances do not recur. (Read, "Danger ahoy! Questions arise on Indian naval safety after repeated shipping fiascos".)