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Indian automotive market could recover faster than other markets
The Indian automotive market continues to be robust and could recover faster than other markets, said SS Kim, managing director of Hyundai Motor India in an interview. He sees a short-term upswing during the Indian holidays in autumn, but sales figures will not return to pre-coronavirus levels until the beginning of next year. Only this month Hyundai has resumed production at its Chennai plant. Initially, production will be run in two shifts and an additional shift will be added as needed. Due to the corona virus, there are still restrictions in the supply of components and the corresponding skilled and unskilled labor.
Managing Director Kim sees a change in consumer behavior in India from public transport to own vehicles. He predicts a flourishing trade in used cars and a stronger demand for small cars. “Hyundai India has a long-term product strategy and we will continue to maintain this after the coronavirus crisis. Our goal has always been to make vehicles safer and to provide them with technological innovations that set us apart from our competitors,” Kim said. Hyundai is also hoping to benefit from the recent government stimulus measures for the automotive industry and its suppliers.
The government intends to use the funding to build an improved domestic supplier industry and establish several industrial centers. This is intended to promote economic growth on the one hand and reduce dependence on foreign suppliers on the other. In order to encourage consumers to buy a new car, a reduction in value-added tax or wage and income tax is under discussion. The automotive industry is also calling for a scrapping bonus. The Hyundai managing director praised the support of local governments in the area of logistics and freedom of movement of the workforce with regard to the current coronavirus situation in India.
Vehicles in India are subject to the corresponding technical automotive standards, known as Automotive Industry Standards or AIS for short. These are based on the UNECE standards. The Automotive Industry Standards are issued by the Ministry of Road Transport and Highways, the ministry responsible for regulating the automotive sector in India. AIS certification is required for automotive components. The process of AIS certification according to the Indian AIS (Automotive Industry Standard) can be challenging and complex. We are happy to support you in the AIS certification process and are always available to answer your questions.
Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769261, US: +1 773 654-2673).
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Nissan plans to launch 8 new models in Africa, the Middle East and India
Car manufacturer Nissan recently unveiled its plans to launch eight new models in Africa, the Middle East and India. This is part of a four-year strategy, taking into account the overall restructuring of the group, a Nissan spokesperson said. The new business plan focusing on these regions is in line with the global strategy of rationalizing and strengthening the core business with successful models. Africa, the Middle East and India together account for approximately 10 percent of the global automotive market.
Part of the restructuring plan is to strengthen the existing presence and cooperate with partners for the production of the vehicles in South Africa, Egypt, India and Nigeria. As part of the four-year plan, Nissan aims to optimize its regional product range and reduce local manufacturing costs by approximately 20 percent. According to Nissan COO Ashwani Gupta, at least one SUV is among the eight new models. According to Gupta, mid-range SUVs are particularly popular in India.
The company is also considering integrating the new production sites for the export of vehicles into the Nissan group strategy. With appropriate capacity utilization and local suppliers, this could also reduce manufacturing costs. Last month, Nissan CEO Makoto Uchida presented the group’s global restructuring plans. These plans include sustainable growth, solid finances and a profit at the end of fiscal 2023.
India operations are subject to the relevant technical automotive standards, known as Automotive Industry Standards or AIS for short. These are based on the UNECE standards. The Automotive Industry Standards are issued by the Ministry of Road Transport and Highways, the ministry responsible for regulating the automotive sector in India. AIS certification is required for automotive components. The process of AIS certification according to the Indian AIS (Automotive Industry Standard) can be challenging and complex. We are happy to support you in the AIS certification process and are always available to answer your questions.
Indian government extends period for duty-free import of diamonds
The Indian government allows the duty-free re-importation of cut diamonds, which are currently abroad for valuation and evaluation, for another three months. The measure is intended to help the gold and jewelry industry in view of the difficult economic situation due to the coronavirus pandemic. The relevant authority, the Central Board of Indirect Taxes and Customs, said importers can import cut diamonds from foreign laboratories with confirmation of their value and quality.
The scheme will make it easier for traders whose diamonds are stuck abroad during the coronavirus pandemic and the usual period for import has expired. Many shipments are also stuck at customs both in India and abroad. In detail, the new scheme allows the re-importation of cut diamonds duty-free for a further three months, which were normally supposed to return to India between February 1 and July 31, 2020, but there were interruptions due to the coronavirus situation. For the re-importation, traders are exempt from Basic Customs Duty and Integrated Goods and Service Tax under certain conditions. In addition to observing the deadline, dealers must provide proof of average annual export sales of the equivalent of USD 680,000 in the past three years.
India is one of the largest centers for the cutting of diamonds and precious stones and the manufacture of all kinds of jewelry. Statistically, 11 out of 12 diamonds that are later set in a piece of jewelry worldwide are cut and polished in India. India is also an important trading center for jewelry made of gold and other precious metals. The industry contributes about 7% of India’s GDP, employs millions of people and is an important source of foreign exchange earnings. The gemstone and jewelry industry generated an economic output of $60 billion in 2017 and is expected to grow to $110 billion by 2022.
The Indian certification landscape is very difficult to understand with its different authorities and processes. Indian certifications such as AIS (ARAI), BIS, WPC, TEC or PESO are part of the portfolio of MPR International – India Certification. We also offer a customs service for India, because sometimes a company has to import a newly developed product for research or a machine for testing or other purposes to India. Should your product actually require a specific certification for import, you can still, under certain circumstances, import your product into India. We will be happy to assist you in verifying that your products require certification in India.
Here you can find more information about the AIS certification, BIS certification, WPC certification and TEC certification.
Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).
You can also download our brochures about the compulsory certifications here.
India: Mandatory BIS certification for vehicle rims planned
The Indian government has drawn up appropriate quality standards for vehicle rims in order to restrict inferior imports and promote the local industry. The draft, entitled “Automobile Wheel Rim Component (Quality Control)”, presented by the Indian Ministry of Industry, Heavy Industry Department, stipulates that from October 1, 2020, all rims and imports offered in India must be certified in accordance with the BIS standard. In addition, the Ministry has sent the draft to the World Trade Organization (WTO) and is awaiting comments from member countries within the next 30 days.
The new regulation is intended to improve road safety. In line with this, the government is in the process of revising the technical specifications of another 350 products to increase safety and quality, restrict imports and promote local production. According to a government spokesman, suppliers are to be discouraged from buying imported products and instead use Indian products from the “Make in India” campaign. The draft for quality control of rims includes products for two-wheelers, three-wheelers, electrically powered vehicles, passenger cars and commercial vehicles. The Bureau of Indian Standards (BIS) is responsible for the certification and implementation of the new quality standards.
Stricter quality standards have already been introduced in recent months for products such as toys and steel products. The EU rejects the mandatory BIS certification for the import of steel products to India and instead demands that accredited laboratories in the countries of origin can carry out certification in accordance with Indian standards. India replied that the international standards were not sufficient and also not applicable to Indian production processes. In order to promote the production of car rims in the country, the Indian government has issued an ordinance that requires manufacturers of electric and hybrid vehicles to purchase their rims or hub motors from local suppliers in order to receive subsidies. BIS stands for the Bureau of Indian Standards and is the national Indian certification body under the umbrella of the Indian Ministry of Consumer Protection, Food & Public Distribution. It is the central issuing body for BIS certification. We would be pleased to advise you on Indian certification and are always available to answer your questions.