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Time of India
3 days ago
- Automotive
- Time of India
High road tax, off-track fuel policies hitting revenue & vehicle sales in MP
Madhya Pradesh's high vehicle road tax is causing substantial revenue losses. The Federation of Automobile Dealers Association (FADA) has highlighted that customers in MP are purchasing vehicles from adjacent states with lower taxation rates. Ironically, despite repeated appeals to the state govt for tax reduction, no action was taken. MP is losing money on different types of vehicle sales. People who want fancy cars (costing over Rs. 20 Lakhs) are buying them in Chhattisgarh or Arunachal Pradesh. Why? Because the road tax is lower there. MP charges 16% road tax. FADA claimed that Chhattisgarh only charges 10%. Arunachal Pradesh has a fixed rate of Rs. 35,000. This difference is a big deal for expensive cars. Electric vehicles (EVs) and hybrid vehicles also have tax issues. The road tax on two-wheeler EVs in MP went up from 1% to 4%. People want the govt to bring it back down. Chhattisgarh and Uttar Pradesh have zero road tax on EVs. Chhattisgarh even gives subsidies of up to Rs. 15 Lakh on EVs and hybrid vehicles. This makes buying these vehicles much cheaper in Chhattisgarh, added FADA officials. Ambulance registrations are another problem. People prefer to register ambulances in Chhattisgarh. This is because MP charges 10% road tax on ambulances. Chhattisgarh has no road tax on them. This makes ambulances cheaper to register in Chhattisgarh. The way MP calculates road tax is also being questioned. Right now, road tax includes the GST (Goods and Services Tax). A suggestion was made to calculate the tax before GST is added. This would lower the amount of tax people pay. MP has a great location in the middle of India. This could make it a big logistics hub. The govt could offer incentives to car companies. This could help them deliver cars faster. It could also create more jobs in MP, said FADA officials. Fuel taxes are also a problem. MP has some of the highest VAT (Value Added Tax) rates on fuel in India. Because of this, truck drivers and others often fill up their tanks in other states. This means MP loses out on tax money. It also makes fuel more expensive for people who live in MP. The govt needs to take these issues seriously to "prevent tax revenue losses." It will help to "reduce the financial burden on MP's population." By fixing these tax problems, MP can keep more money in the state. FADA MP raised four crucial concerns. "These include advocating for lower road tax rates in MP, seeking a reduction in fuel VAT, highlighting MP's potential as a logistics hub due to its central location, and addressing the incorrect practice of road tax calculation on GST," said Chairperson FADA Madhya Pradesh , Ashish Pande. He added, "It's worth noting that MP's sales performance was significantly lower than the national average over the past 4 months, resulting in reduced revenue collection for the state, both in terms of GST and road tax. This needs immediate attention from the state govt." Transport department officials did not respond to the calls made to them.
Time of India
4 days ago
- Automotive
- Time of India
High road tax, off-track fuel policies hitting revenue & vehicle sales in MP
Bhopal: Madhya Pradesh's high vehicle road tax is causing substantial revenue losses. The Federation of Automobile Dealers Association (FADA) has highlighted that customers in MP are purchasing vehicles from adjacent states with lower taxation rates. Ironically, despite repeated appeals to the state govt for tax reduction, no action was taken. MP is losing money on different types of vehicle sales. People who want fancy cars (costing over Rs. 20 Lakhs) are buying them in Chhattisgarh or Arunachal Pradesh. Why? Because the road tax is lower there. MP charges 16% road tax. FADA claimed that Chhattisgarh only charges 10%. Arunachal Pradesh has a fixed rate of Rs. 35,000. This difference is a big deal for expensive cars. Electric vehicles (EVs) and hybrid vehicles also have tax issues. The road tax on two-wheeler EVs in MP went up from 1% to 4%. People want the govt to bring it back down. Chhattisgarh and Uttar Pradesh have zero road tax on EVs. Chhattisgarh even gives subsidies of up to Rs. 15 Lakh on EVs and hybrid vehicles. This makes buying these vehicles much cheaper in Chhattisgarh, added FADA officials. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like ¿Cómo obtener un segundo ingreso invirtiendo $100 con IA? [CFD] Digital Group Prueba ahora Undo Ambulance registrations are another problem. People prefer to register ambulances in Chhattisgarh. This is because MP charges 10% road tax on ambulances. Chhattisgarh has no road tax on them. This makes ambulances cheaper to register in Chhattisgarh. The way MP calculates road tax is also being questioned. Right now, road tax includes the GST (Goods and Services Tax). A suggestion was made to calculate the tax before GST is added. This would lower the amount of tax people pay. MP has a great location in the middle of India. This could make it a big logistics hub. The govt could offer incentives to car companies. This could help them deliver cars faster. It could also create more jobs in MP, said FADA officials. Fuel taxes are also a problem. MP has some of the highest VAT (Value Added Tax) rates on fuel in India. Because of this, truck drivers and others often fill up their tanks in other states. This means MP loses out on tax money. It also makes fuel more expensive for people who live in MP. The govt needs to take these issues seriously to "prevent tax revenue losses." It will help to "reduce the financial burden on MP's population." By fixing these tax problems, MP can keep more money in the state. FADA MP raised four crucial concerns. "These include advocating for lower road tax rates in MP, seeking a reduction in fuel VAT, highlighting MP's potential as a logistics hub due to its central location, and addressing the incorrect practice of road tax calculation on GST," said Chairperson FADA Madhya Pradesh, Ashish Pande. He added, "It's worth noting that MP's sales performance was significantly lower than the national average over the past 4 months, resulting in reduced revenue collection for the state, both in terms of GST and road tax. This needs immediate attention from the state govt." Transport department officials did not respond to the calls made to them.
Hindustan Times
25-05-2025
- Automotive
- Hindustan Times
Tata Motors expects car sales growth to be in low single digits in FY26, hopes hatchbacks to bounce back
Tata Motors is expecting PV sales to be in a slow growth lane in FY26. Tata Motors is expecting PV sales to be in a slow growth lane in FY26. Check Offers Tata Motors expects its passenger vehicle sales in the Indian market to record a low single-digit growth in FY26. This comes in line with the overall industry estimate. The Society of Indian Automobile Manufacturers (SIAM) estimates that the passenger vehicle industry in the country will see a sales growth between one and four per cent in the current financial year. Tata also holds a similar projection when it comes to its own PV sales this fiscal. In an interview with the news agency PTI, Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicle Ltd and Tata Passenger Electric Mobility Ltd. said that the automaker is going with the triangulated view coming from various agencies, forecasting agencies, as well as the view of SIAM a similar kind of moderation as was in FY25. "The scenario at this stage, as we are speaking, looks to be pretty much similar to the FY25 situation, because in the last five to six months, we have not seen significant shift either way," he said, adding that the benefit of income tax relief on annual income of up to ₹ 12 lakh announced in the Union Budget is yet to be reflected in the market. Also Read : Upcoming cars in India After witnessing a robust growth in the past two to three years, passenger vehicle sales in India had moderated on a high base due to various factors, including high inflation and weak consumer sentiment, especially in the urban market. According to the data released by the Federation of Automobile Dealers Associations (FADA), retail sales of passenger vehicles in the domestic market grew by 4.9 per cent at 41,53,432 units in FY25 as compared to 39,60,602 units recorded in FY24. Speaking of Tata Motors, its passenger vehicle retail sales declined marginally to 535,960 units in the FY5, as compared to 539,567 units sold in FY24, as per FADA data. Tata Motors bets big on new Altroz for hatchback sales revival The homegrown auto major launched its updated premium hatchback Altroz earlier this week. Tata Motors seems to be betting big on that to see a bounce back of hatchbacks. Launched at an introductory price, ranging between ₹ 6.89 lakh and ₹ 11.29 lakh (ex-showroom), the new Tata Altroz is available in petrol, diesel and CNG powertrain options, while transmission choices include a manual gearbox, a dual-clutch automatic unit, as well as an AMT. Chandra has stated that the company is betting big on the new Altroz to bounce back in the segment. However, it has paused plans to introduce an electric version of the Altroz due to overcrowding in the price segment in which it was envisaged to be positioned. The auto company is looking to regain 25 per cent share in the premium hatchback segment, having seen it fall in the last one and a half year, said Chandra. The new Altroz comes revising its competition with rivals such as the Maruti Suzuki Baleno, Hyundai i20, as well as the Toyota Glanza. "With the new Altroz, we should see a significant growth. While the hatches might still see a decline this year at an industry level, with a low base that we have, and which was the key reason for our market share pressure, that should revive. On the SUV side, hopefully the market will keep growing," Chandra said while also noting that due to ageing, Altroz sales had come down to about 2,000-2,500 units a month last year from a peak of about 6,000 units earlier. "Both Tiago and Altroz were aged, and therefore their demand had gone down. We lost about 50,000-60,000 units last year just because of the hatches going down," he said. The top Tata official also said that after the introduction of the new version of its mid-segment hatchback Tiago earlier this year, the model has regained its best monthly volume level of about 7,000 to 7,500 units. Chandra said that despite a rapid decline in the last five years in the overall hatchback sales in the Indian market to about 25 per cent of the overall PV market from 45 per cent earlier, there is a big opportunity in the mid and premium segment of the category. "The way we are seeing the hatch segment is that the entry hatchback segment will be under tremendous two sub-segments within the hatchback are actually increasing in share. One is the premium hatchback segment, where we are positioned with Altroz, and the second is the mid hatchback segment, where we have Tiago," he said. In the overall industry, the hatchback segment is expected to do around 10 lakh to 12 lakh units annually, Chandra said, adding the share of premium hatchback within the overall hatchback segment has been increasing to about one-third. "So we find that this is a very promising segment for the future. The high-income households are going to double in the next five to six years. Nearly 65 million households will have income above ₹ 15 lakh per year, and this is the segment which would go for a premium hatchback to start with," he noted. With over 10 lakh hatchbacks sold in the last three years, Chandra said, 'We believe hatchbacks remain a critical part of India's mobility landscape." Check out Upcoming Cars in India 2024, Best SUVs in India. First Published Date: 25 May 2025, 09:52 AM IST
Time of India
23-05-2025
- Automotive
- Time of India
Tata Motors expects PV sales growth to be in low single-digit in FY26, hatchback to bounce back
Tata Motors expects to maintain low single-digit growth in passenger vehicle sales this fiscal in line with the overall industry estimate, with the company betting on premium hatchback sales to bounce back with the introduction of its all-new version of Altroz, a top company official said on Thursday. The company is looking to regain 25 per cent share in the premium hatchback segment, having seen it fall in the last one-and-a-half year, Tata Motors Passenger Vehicle Ltd and Tata Passenger Electric Mobility Ltd Managing Director Shailesh Chandra told PTI here in an interview. However, it has paused plans to introduce an electric version of the premium hatchback Altroz due to overcrowding in the price segment in which it was envisaged to be positioned, he said. The all-new Altroz has been launched with introductory prices ranging from ₹6.89 lakh to ₹11.29 lakh across petrol, CNG and diesel variants. "I am also going with the triangulated view coming from various agencies, forecasting agencies, as well as the view of SIAM a similar kind of moderation as was in FY25," Chandra said. He was responding to a query on whether Tata Motors subscribed to the Society of Indian Automobile Manufacturers (SIAM) estimate of around 1-4 per cent passenger vehicle sales growth for FY26. "The scenario at this stage, as we are speaking, looks to be pretty much similar to the FY25 situation, because in the last five to six months, we have not seen significant shift either way," he said, adding the benefit of income tax relief on annual income of up to ₹12 lakh announced in the Union Budget is yet to be reflected in the market. After witnessing robust growth in the past two to three years, PV sales in India had moderated on a high base due to various factors, including high inflation and weak consumer sentiment specially in the urban market. As per Federation of Automobile Dealers Associations (FADA) data, retail sales of PVs in the domestic market grew by 4.9 per cent at 41,53,432 units in FY25 as compared to 39,60,602 units in FY24. In FY25, Tata Motors' retail sales had declined marginally to 5,35,960 units as compared to 5,39,567 units in FY24, as per FADA data. "With the new Altroz we should see a significant growth. While the hatches might still see a decline this year at an industry level, with a low base that we have -- and which was the key reason for our market share pressure -- that should revive. On the SUV side, hopefully the market will keep growing," Chandra said. Due to ageing, Altroz sales had come down to about 2,000-2,500 units a month last year from a peak of about 6,000 units earlier, he noted. "Both Tiago and Altroz were aged, and therefore their demand had gone lost about 50,000-60,000 (units last year) just because of the hatches going down," he said. However, he said after the introduction of the new version of its mid-segment hatchback Tiago earlier this year, the model has got back its best monthly volume level of about 7,000 to 7,500 units. Chandra said despite a rapid decline in the last five years in the overall hatchback sales in the Indian market to about 25 per cent of the overall PV market from 45 per cent earlier, there is a big opportunity in the mid and premium segment of the category. "The way we are seeing the hatch segment is that the entry hatchback segment will be under tremendous two sub-segments within the hatchback are actually increasing in share. One is the premium hatchback segment, where we are positioned Altroz, and the second is the mid hatchback segment, where we have Tiago," he said. In the overall industry, the hatchback segment is expected to do around 10 lakh to 12 lakh units annually, Chandra said, adding the share of premium hatchback within the overall hatchback segment has been increasing to about one-third. "So we find that this is a very promising segment for the future. The high-income households are going to double in the next five to six years. Nearly 65 million households will have income above ₹15 lakh per year and this is the segment which would go for a premium hatchback to start with," he noted. With over 10 lakh hatchbacks sold in the last three years, Chandra said, "We believe hatchbacks remain a critical part of India's mobility landscape." When asked about the electric version of Altroz which the company had earlier showcased to be positioned in the ₹8-15 lakh bracket, he said due to the changing dynamics in the EV industry with battery prices coming down, the company has "paused" the plan. "When we have three products, which are and supporting the ₹8-15 lakh segment, we did not find a reason to right now position as a fourth car in that segment where there is a certain size of that segment." He further said, "The ( project has already reached a certain stage, but we have paused it because at some stage we felt that a fourth option need not be brought in the ₹8-15 lakh segment at this stage." Chandra, however, added,"In future, if we see that there is a need to bring this car again, we will be open to that option, but for the time being, we are not launching it."
New Indian Express
22-05-2025
- Automotive
- New Indian Express
Tata Motors aims to outpace PV industry growth in FY26
Homegrown auto-major Tata Motors expects its passenger vehicle (PV) sales to outpace industry growth this fiscal, driven by new launches and model upgrades. The automaker on Thursday launched the all-new version of Altroz to strengthen its presence in the premium hatchback segment and will launch the next month, followed by the highly anticipated Sierra SUV later this year. 'The growth will continue to be in low single digit like 4-5% for the PV industry this fiscal. In the last few years, Tata Motors hardly had any launches. This year, however. is going to be a year of launches. So, we expect a much higher growth than the industry,' Vivek Srivatsa, Chief Commercial Officer at Tata Passenger Electric Mobility told TNIE. The company also aims to reclaim a 25% market share in the premium hatchback segment. PV sales in India moderated last fiscal. As per Federation of Automobile Dealers Associations (FADA) data, retail PV sales in the domestic market grew by 4.9% at 41,53,432 units in FY25 as compared to 39,60,602 units in FY24. Tata Motors' retail sales had declined marginally to 5,35,960 in FY25 units as compared to 5,39,567 units in FY24, as per FADA data. The maker of Punch and Nexon SUV announced plans to expand its retail footprint in India and strengthen its international presence in FY26. 'We have re-entered Sri Lanka, entered Mauritius, and will soon tap into larger markets. We aim to be present in at least 4-5 new markets within the next year," said Srivatsa.
