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    Five important things that had an impact upon Indian motoring in 2017

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    Omkar Thakur

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    Indian motoring and its future

    The year 2017 has been an interesting one for India Inc. The automotive industry which dominates a large part of the manufacturing sector, obviously, was in the thick of things. Along with policy decisions, taxation and future strategies, much has changed in the Indian context in 2017. We pick the five most important things that will have a long running impact on the Indian motoring scene.

    1. GST

    GST has been one of the most talked about tax reforms in the past two decades. Aiming at a singular tax ambit for all, GST has been riddled with operational ambiguity. The continued changes in tax slabs has had the automotive industry reeling for stability. But now that things seems to have settled down and the tax credits have begun easing out the tax burdens, car sales have picked up again and it should surpass previous year’s record of cumulative car sales.

    2. Mission Electric 2030

    This has been one of the biggest surprises from the Indian government. India has been lagging behind the global developments in terms of automotive technology but this mission should get us at par with the developed countries. With Germany aiming to go all electric by 2025, India’s electrifying aim is a distant dream, but an important step in the right direction.

    3. New players

    The Indian car market has been one of the highest growing markets in recent times and thus is attractive to a lot of global car makers. Global bigwigs like Ford, Nissan, GM, FCA et al have tried, but the uniqueness of the Indian market has turned out to be quite a challenge. GM has shut shop and Ford has shifted focus on exports. FCA’s new brand, Jeep, has had a great start after the Compass, but the path ahead is challenging. Also, new players like Kia, Peugeot and MG Motors have announced their arrivals over the next couple of years and the ultimate winner of this bigger competition would be the Indian car buyer.

    4. Motorsport

    While business and profits dominate the proceedings in all board meetings, it is motorsport that makes sure that the love for cars keeps growing. In India, motorsport has been a neglected asset, but still we have found a few gems. Gaurav Gill won the Asia Pacific Rally Championship for the third time in a row while Volkswagen developed the Ameo Cup racecar entirely in India. Young racers like Mira Erda are leading women’s charge into the male bastions while veterans like Aditya Patel are shining in the international arena. 

    5. BS-VI

    Apart from Mission Electric 2030, India has also decided to leapfrog to BS-VI norms from BS-IV to be at par with global emission standards. With air pollution haunting us all, this is a major step towards reining in pollutants emitted from automobiles. After the initial resistance from car makers, owing to the investments involved, everyone is now working towards shifting to BS-VI standards by 2020. The oil companies have also announced introduction of BS-VI quality fuel which will further ease the transition.

    With the advent of newer technologies, the electric push and the government’s intent to hasten our pace, the automotive industry seems to be ready to undergo a complete transformation in the times to come. Also, India is being established as an export hub with all the global carmakers participating in the Make in India initiative.

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