Auto Dealers

Auto dealers can claim ITC on demo cars used for promoting sales: CBIC

Automobile dealers using demonstration vehicles or demo cars for promoting sales can claim input tax credit (ITC) under the GST law, the CBIC has said. However, no ITC would be available if demo cars are used by dealers for their own purpose during the course of the business. In a circular, the Central Board of Indirect Taxes and Customs (CBIC) said authorised dealers are required to maintain demo vehicles at their sales outlet as per dealership norms which are used for providing trial runs and for demonstrating features of the vehicle to the potential buyers. These vehicles are purchased by the authorised dealers from the vehicle manufacturers against tax invoices and are typically reflected as capital assets in books of account of the authorized dealers. As per dealership norms, these vehicles may be required to be held by the authorized dealers as demo vehicle for certain mandatory period and may, thereafter, be sold by the dealer at a written down value and applicable tax is ..

Auto retail sales up marginally in June amid heatwaves: Dealer association

Inventory levels in passenger vehicles reach record high, ranging from 62 to 67 days

Auto dealers' satisfaction improves, policy concerns remain: Fada

The overall satisfaction of automobile dealers with regards to their relationship with manufacturers has improved but dealer viability and policy issues remain major concerns, Federation of Automobile Dealers Associations said on Wednesday. In its 'Dealer Satisfaction Study 2023' conducted in collaboration with PremonAsia, a consumer insights and advisory services firm, Federation of Automobile Dealers Associations (FADA) said at an aggregate industry level, the average dealer satisfaction score stood at 767 out of a maximum 1,000 points, an increase of 48 points from a year ago. Commercial Vehicle (CV) dealers were the most satisfied with 778 points, followed by mass market four-wheeler (4W) dealers at 769 points and two-wheeler (2W) dealers with 763 points. "The year-on-year improvements underscore the indispensable value of this annual study in identifying critical issues to fortify the auto OEM-dealer partnership. While auto dealers are increasingly optimistic, concerns related

Auto dealers should also open vehicle scrapping facilities: Nitin Gadkari

Union Road Transport and Highways Minister Nitin Gadkari on Thursday said dealers of automobiles should also open vehicle scrapping facilities. Addressing the fifth Auto Retail Conclave, Gadkari said the government is encouraging a circular economy, and accordingly the government will give permission to dealers to start vehicle scrapping facilities. He also noted that India is encouraging use of alternate fuel and biofuel and pointed out that the government is working to make India the largest manufacturer of green hydrogen. The minister pointed out that India is the fastest growing major economy in the world and auto dealers will play an important role in making India a USD 5 trillion economy. India is the fourth largest manufacturer of passenger vehicles and the sixth largest manufacturer of commercial vehicles, he said. Gadkari said his dream is to make India the top automobile hub in the world.

Nearly all Tata Motors vehicle dealers turn profitable after a decade

Tata Motors' diversification into multiple electrified models, which are priced on average Rs 3-3.5 lakh higher than traditional internal combustion engine models, has increased profit margins

Automobile dealership industry revenues to grow by 11-13% in FY24: Icra

Aided by robust sales, revenues of domestic automobile dealership industry are expected to grow by 11-13 per cent in the current fiscal, rating firm Icra said on Thursday. The revenue growth this fiscal will be aided by expected 6-9 per cent volume growth and an increase in vehicle prices during the current financial year, it added. Factors like improving consumer sentiments, as seen through a continued preference for personal mobility and rising disposable income, easing supply-side constraints, better features in the new product models, change in product-mix with increasing skew towards high-priced vehicles, etc., are expected to favourably support the sales growth in the consumer segment, Icra said. In the commercial segment, improving economic activities, rising spends in infrastructure and mining activities, a stable financing environment shall support the growth, it added. Potential headwinds could arise from adverse monsoons or the occurrence of the El Nino and its impact on

Top headlines: GST authorities quiz auto dealers, electronics exports up

Business Standard brings you top news at this hour

Suzuki Motorcycle ties up with Standard Chartered to give funds to dealers

Suzuki Motorcycle India on Wednesday said it has joined hands with Standard Chartered Bank to provide wholesale funding to its dealer partners for vehicles and spare parts. The initiative will support the company's dealer partners across the country and enable them to expand their businesses and operations, the two-wheeler maker said in a statement. "As a responsible company, we are committed to support our dealer partners so that they can meet their financial requirements. This programme is a testament to our commitment, and we look forward to a successful partnership with Standard Chartered Bank," Suzuki Motorcycle India Executive Vice President, Sales, Marketing and After Sales Devashish Handa noted. Standard Chartered Bank Regional Head Global Subsidiaries, India and South Asia, Corporate, Commercial and Institutional Banking Chandandeep Kaur said the bank is committed to support businesses in India by providing them with the necessary financial tools and developing customised .

Second-hand car market to be regulated, dealers to play a bigger role

When the vehicle is received for reselling by the dealer, it will be registered for sale. The dealer will then become the sole responsible person for any untoward incident like theft etc

We're reading too much into weak two-wheeler demand: Hero Moto exec

The optimism is in contrast with the dealers' confidence, which flagged the recovery in motorcycles and scooters "as an area of concern"

Dealers and automakers have a tumultuous relationship, says FADA President

Says manufacturers' financial clout has led to inequitable contracts between the two

Indian auto dealers ask government for help after Ford exit setback

The Federation of Automobile Dealers Association (FADA) said in a letter to India's industries ministry, sudden exits by global companies "cause great distress."

CCI slaps fine of Rs 200 crore on Maruti Suzuki over dealer discount policy

During the probe, Maruti - which has more than 50 per cent share of India's car market - told the regulator that it imposed no such policy and that the dealers were free to offer any discounts

Auto dealers predict slow sales recovery as Covid spreads to rural areas

Auto sales, especially cars and sport-utility vehicles (SUVs), bounced back strongly last year as buyers rushed to buy private vehicles to ensure safety and maintain social distance

Auto dealers can work as sales channel for motor insurance: Irdai panel

They may work as insurance intermediaries in much the same way as an insurance broker, but must solicit motor insurance business only

Auto dealers looking at rationalisation of infrastructure, manpower: FADA

Kia Motors and Toyota Kirloskar Motor met expectations of their dealers better than other companies in the passenger vehicle segment during the Covid-19 lockdown, FADA said

Rising sales numbers not a reflection of ground reality, say auto dealers

Dealers say that with more job cuts and salary reduction, banks and NBFCs have become more cautious

Job losses in dealerships could be worse than 2019's auto slowdown: FADA

Between May and July last year, the automobiles dealerships across the country shed around 200,000 jobs to tide over the impact of an unprecedented sales slump

Covid-19: Maruti reopens 600 dealerships, introduces norms across outlets

The auto major said it has put in place a comprehensive standard operating procedure (SoP) across its sales outlets and reinforced digital infrastructure for vehicle purchase amid COVID-19 pandemic

How auto firms plan to woo customers, motivate sales staff post lockdown

As India eases some restrictions and many automobile dealerships restart operations after over a month of keeping their shutters down, what will be the primary target for brands?