SIAM Convention's 65th Edition Kicks Off In Delhi

Summary

The NATV Profit interviews feature top executives from Ashokand, Maruti Suzuki, Mahindra & Mahindra, and Hyundai discussing key developments in India’s automotive sector. Highlights include Ashokand’s focus on sustainable mobility, EV technology, and local battery supply chains; Maruti and Hyundai passing full GST 2.0 benefits to consumers to boost festive season sales; and Mahindra’s strategic dispatch and inventory management. Executives emphasize cost reduction, circular economy initiatives, and meeting pent-up demand while balancing rural and urban markets. Overall, the discussions underscore how policy reforms, technological innovation, and strategic planning are shaping India’s automotive growth and EV adoption in both domestic and export markets.

Takeaways

• 🔋 Ashok Leyland is focusing on sustainable mobility through EV technology, alternate fuels (CNG, LNG, hydrogen), and building a localized supply chain for batteries and components.
• ♻️ Ashok Leyland is also implementing circular economy initiatives by establishing three Recycling & Vehicle Scrapping Facilities (RVSFs) to support EV sustainability.
• ⚡ The partnership between Ashok Leyland and Calb aims to secure EV battery technology, expected to roll out in Q1 2027, to reduce total cost of ownership (TCO) of electric trucks and buses.
• 💰 GST 2.0 reform, reducing tax rates to 18% and 40%, is expected to boost demand across all segments, including light, medium, and heavy vehicles, as well as two-wheelers.
• 🚗 Maruti Suzuki is passing full GST benefits to customers, making small cars more affordable and reviving demand in the entry-level segment, with EV launches prioritized for Europe before India.
• 📈 Mahindra & Mahindra anticipates mid-to-high teens growth due to GST reforms and festive season demand, using proactive schemes to ease dealership inventory pressures.
• 🏭 Hyundai India sees positive momentum from GST cuts and increased affordability, leveraging new plant capacity in Pune and export growth to strengthen both domestic and international market share.
• 🎉 Festive season demand is a major driver for all OEMs, with pre-booking strategies and promotional offers being used to manage stock constraints and capitalize on pent-up consumer demand.
• 🌍 The automotive industry is aligning with government initiatives on localization, global competitiveness, and sustainability, including incentivizing scrappage and EV adoption.
• 🚀 OEMs expect rural markets to remain growth engines while urban markets benefit from increased affordability and GST-driven incentives, particularly in the sub-10 lakh rupees SUV segment.
• 📊 Overall, the industry is balancing short-term boosts from GST cuts and festive sales with long-term strategies in EV technology, supply chain resilience, and sustainable mobility.

Q & A

What were the main focuses of the 65th annual CM convention according to Mr. Shinu Agarwal?

The main focuses were sustainable mobility and positioning India as a global leader in the automotive sector, with discussions on creating a clear roadmap for both goals.

What are the three pillars of sustainable mobility highlighted by Ashokand?

1) Developing efficient alternate powertrains including electric, CNG, LNG, and hydrogen vehicles; 2) Building a localized supply chain to reduce import dependency, especially for EV batteries; 3) Creating a circular economy through initiatives like RVSFs for recycling and reuse.

Why is Ashokand entering the battery space in partnership with CALB?

The battery constitutes 40–50% of the cost of EV vehicles. By entering the battery space, Ashokand aims to lower costs, foster local supply chains, and enhance innovation, making EVs more competitive with diesel vehicles.

How does Mr. Agarwal view the adoption of electric vehicles for heavy trucks compared to light commercial vehicles?

Light commercial vehicles and buses are expected to adopt EVs first, while medium and heavy-duty trucks will take longer. The key factor is reducing the total cost of ownership to match diesel vehicles.

How are Maruti Suzuki and other OEMs planning to pass on the GST benefits to consumers?

Maruti Suzuki is passing full GST benefits to customers, lowering small car retail prices by about 8.5%, making entry-level cars more affordable. Other OEMs are implementing similar strategies and promotional schemes to attract buyers.

What impact is the GST reduction expected to have on the festive season demand?

The GST reduction is expected to boost demand in the short term, especially during the festive season, by making vehicles more affordable and encouraging upgrades. Dealers are preparing stock to meet this surge in demand.

How is Hyundai India preparing for the increased demand due to GST cuts?

Hyundai is offering pre-booking at GST-inclusive prices and additional promotional offers. They are also coordinating with dealers to manage stock and ensure deliveries start from 22nd September to capture festive-season demand.

What market segments are expected to see the highest growth after the GST cut according to Hyundai?

The sub-10 lakh rupees segment, particularly SUVs, is expected to see the maximum growth, followed by higher-end SUVs and entry-level cars, due to increased affordability and purchasing power.

How are Mahindra & Mahindra managing inventory and customer demand with the GST change?

They implemented a scheme starting 6th September to provide the GST benefit to customers in advance, encouraging walk-ins and pre-bookings. This approach helps manage dealer inventory and prepares for the anticipated festive-season demand.

What strategies are all the discussed OEMs using to align with global competitiveness and sustainable mobility?

Strategies include adopting EV and alternative powertrain technologies, creating local supply chains, fostering recycling and circular economy initiatives, aligning with government policies and incentives, and planning production and export schedules to meet both domestic and global demand.

Why is awareness creation considered important for vehicle scrapage policies?

Awareness is crucial to encourage customers to scrap old vehicles and purchase new ones under supportive policies. Effective awareness combined with discounts and incentives ensures higher participation and adoption of sustainable practices.

How is Ashokand addressing circular economy initiatives in the EV sector?

Ashokand is implementing circular economy initiatives by establishing RVSFs (Recycling and Vehicle Scrapping Facilities), with at least three planned before the end of the fiscal year, to efficiently recycle EV components and batteries.