In a groundbreaking development, Indian carmakers have reached an agreement to eliminate import taxes on a limited number of vehicles in a trade deal with Britain. According to Reuters, the move promises improved access to India's thriving automobile market, the third-largest in the world. While the proposal seeks to enhance trade prospects, industry experts debate the extent of its impact due to the limited quota.

India currently imposes import taxes ranging from 70 percent to 100 percent on cars, but under the proposed plan, these rates will be gradually reduced to 10 percent over a five-year period. However, this tax reduction will only apply to a maximum of 46,200 vehicles, as proposed by the Society of Indian Automobile Manufacturers (SIAM) to the government. Additionally, SIAM has expressed openness to a zero percent import tax if deemed necessary during the negotiations.

Outside of the limited quota, SIAM has suggested a gradual reduction of the import tax on cars to 30 percent over a ten-year period, with the possibility of further cuts beyond the fifth year, contingent upon the growth of overall import volumes from Britain.

India's automobile market, known for its high import taxes, has long been a topic of contention for global automakers. Companies such as Tesla previously postponed their entry into the Indian market due to the challenging tax environment. The proposed import tax reductions aim to address this concern and open up new avenues for international automakers, fostering increased competition and innovation.

India witnessed a record-breaking sale of 4 million cars in the fiscal year ending March 31, 2023. SIAM's proposal for zero duties initially focuses on 26,400 cars in the first year, gradually increasing to a maximum of 46,200 vehicles over a decade. It is important to note that this quota applies exclusively to combustion engine cars, with electric, hybrid, hydrogen, and fuel cell vehicles excluded from the proposal.

While some experts argue that the limited number of vehicles proposed under the scheme might not yield significant results, others believe that even a small entry into India's vast market can be highly profitable and influential.

This marks the first time that Indian carmakers have agreed to such substantial import tax cuts, reflecting their response to mounting pressure from the government to relinquish their protectionist position. However, concerns have been raised regarding the potential impact on domestic manufacturing, with some arguing that cheaper and easier imports for global automakers could hamper investments in the domestic industry.

Additionally, the fear of setting a precedent in future trade negotiations with other major players like the European Union (EU), Japan, and South Korea has been expressed by industry sources. The outcome of the ongoing India-Britain trade pact negotiations holds significant implications for the trajectory of trade relationships and potential economic growth.

The negotiations between India and Britain began in January of the previous year with the aim of doubling trade to a staggering $100 billion by 2030. Although the countries missed the initial October 2022 deadline to conclude the deal, discussions have continued, highlighting the complexity and significance of this trade agreement.

How reduction in import taxes can be helpful

The reduction in import taxes is seen as a crucial step toward unlocking India's immense market potential and attracting foreign investment. It is anticipated that this move will foster healthy competition, stimulate technological advancements, and provide consumers with a wider range of options at more competitive prices.

First and foremost, it will create an environment conducive to increased foreign investment. By lowering the financial barriers associated with import taxes, international automakers will find it more enticing to establish a presence in India. This, in turn, can lead to the establishment of new manufacturing facilities, job creation, and the infusion of advanced technologies into the domestic automotive sector.

Moreover, the reduction in import taxes will foster healthy competition among both domestic and international players. As automakers vie for a larger share of the Indian market, consumers can anticipate a wider selection of vehicles at more competitive prices. This will not only provide greater choice and affordability but also incentivize the development of vehicles tailored to Indian preferences and needs.

(Inputs from Reuters)

In a groundbreaking development, Indian carmakers have reached an agreement to eliminate import taxes on a limited number of vehicles in a trade deal with Britain.

In a groundbreaking development, Indian carmakers have reached an agreement to eliminate import taxes on a limited number of vehicles in a trade deal with Britain. According to Reuters, the move promises improved access to India's thriving automobile market, the third-largest in the world. While the proposal seeks to enhance trade prospects, industry experts debate the extent of its impact due to the limited quota. India currently imposes import taxes ranging from 70 percent to 100 percent on cars, but under the proposed plan, these rates will be gradually reduced to 10 percent over a five-year period. However, this tax reduction will only apply to a maximum of 46,200 vehicles, as proposed by the Society of Indian Automobile Manufacturers (SIAM) to the government. Additionally, SIAM has expressed openness to a zero percent import tax if deemed necessary during the negotiations. Outside of the limited quota, SIAM has suggested a gradual reduction of the import tax on cars to 30 percent over a ten-year period, with the possibility of further cuts beyond the fifth year, contingent upon the growth of overall import volumes from Britain. India's automobile market, known for its high import taxes, has long been a topic of contention for global automakers. Companies such as Tesla previously postponed their entry into the Indian market due to the challenging tax environment. The proposed import tax reductions aim to address this concern and open up new avenues for international automakers, fostering increased competition and innovation. India witnessed a record-breaking sale of 4 million cars in the fiscal year ending March 31, 2023. SIAM's proposal for zero duties initially focuses on 26,400 cars in the first year, gradually increasing to a maximum of 46,200 vehicles over a decade. It is important to note that this quota applies exclusively to combustion engine cars, with electric, hybrid, hydrogen, and fuel cell vehicles excluded from the proposal. While some experts argue that the limited number of vehicles proposed under the scheme might not yield significant results, others believe that even a small entry into India's vast market can be highly profitable and influential. This marks the first time that Indian carmakers have agreed to such substantial import tax cuts, reflecting their response to mounting pressure from the government to relinquish their protectionist position. However, concerns have been raised regarding the potential impact on domestic manufacturing, with some arguing that cheaper and easier imports for global automakers could hamper investments in the domestic industry. Additionally, the fear of setting a precedent in future trade negotiations with other major players like the European Union (EU), Japan, and South Korea has been expressed by industry sources. The outcome of the ongoing India-Britain trade pact negotiations holds significant implications for the trajectory of trade relationships and potential economic growth. The negotiations between India and Britain began in January of the previous year with the aim of doubling trade to a staggering $100 billion by 2030. Although the countries missed the initial October 2022 deadline to conclude the deal, discussions have continued, highlighting the complexity and significance of this trade agreement. How reduction in import taxes can be helpful The reduction in import taxes is seen as a crucial step toward unlocking India's immense market potential and attracting foreign investment. It is anticipated that this move will foster healthy competition, stimulate technological advancements, and provide consumers with a wider range of options at more competitive prices. First and foremost, it will create an environment conducive to increased foreign investment. By lowering the financial barriers associated with import taxes, international automakers will find it more enticing to establish a presence in India. This, in turn, can lead to the establishment of new manufacturing facilities, job creation, and the infusion of advanced technologies into the domestic automotive sector. Moreover, the reduction in import taxes will foster healthy competition among both domestic and international players. As automakers vie for a larger share of the Indian market, consumers can anticipate a wider selection of vehicles at more competitive prices. This will not only provide greater choice and affordability but also incentivize the development of vehicles tailored to Indian preferences and needs. (Inputs from Reuters)

India-UK automobile trade likely to get a big boost. Here's why

India’s auto sector will take 3-4 years to recover from this current situation. Cars and Suv's sales slumped in june due to the poor demand in market. Two wheeler sales goes down by 39 percent due to Coronavirus pandemic

Cars, Suv's sales slumped in june due to poor demands in market

India's car sales fell to a historic low last month in what the automobile body said was <a href="https://www.wionews.com/business-economy/indias-monthly-car-sales-log-records-steepest-drop-in-august-worst-since-1998-248569">worst ever since 1997-98</a> when the association began keeping auto records.

Passenger vehicle sales plunged 31.57 per cent year-on-year to 196,524 units in August, falling for the 10th straight month, the Society of Indian Automobile Manufacturers (SIAM) said.

The automobile association said passenger car sales fell 41.09 per cent.

Companies had sold 417, 736 cars in 1997, according to auto data. The sale of passenger cars had picked up dramatically in the late 80s and especially after liberalisation in 1991 when car sales zoomed to 193, 601 going up to 605, 628 in 2000-2001.

Watch: Auto Sales Slowdown - Impact On Economy

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However, in the past&nbsp;five years, car sales have been largely stagnant. In 2013, 2.5 million cars were sold in the country which went up to 3.3 million last year. Passenger cars dominated the list of cars sold annually selling over 25 lakh units&nbsp;which peaked to over 33 lakh in 2018-19. It was followed by commercial vehicles, three-wheelers and two-wheelers.

In all, over 1,84,23,223 vehicles were sold in India in 2013-14 which peaked to 2,62,67,783 in 2018-19. The automobile associated said today that passenger vehicle sales plunged 31.57 per cent year-on-year to 196,524 units in August 2019 as auto companies urged the government to revive the sector.

Interestingly, electric cars are way down the scale with just over a thousand sold in 2016, peaking to 2,000 in 2017 and then it fell last year to 1,200 last year.

The situation is grim not just in India, China too has experienced a dip in sales. In April, car sales fell 14.6 per cent in the world's largest automotive market. Last year in China, car sales fell for the first time since the 1990s.

Sales had dipped 2.8 per cent in 2018 to 28.1 million units, according to China Association of Automobile Manufacturers (CAAM). The constant decline has pushed Chinese carmakers to push for new designs and resort to price cuts in order to revive sales while the government has taken measures to revive the sector.

India's car sales fell to a historic low last month in what the automobile body said was worst ever since 1997-98 when the association began keeping auto records.

India's car sales fell to a historic low last month in what the automobile body said was worst ever since 1997-98 when the association began keeping auto records. Passenger vehicle sales plunged 31.57 per cent year-on-year to 196,524 units in August, falling for the 10th straight month, the Society of Indian Automobile Manufacturers (SIAM) said. The automobile association said passenger car sales fell 41.09 per cent. Companies had sold 417, 736 cars in 1997, according to auto data. The sale of passenger cars had picked up dramatically in the late 80s and especially after liberalisation in 1991 when car sales zoomed to 193, 601 going up to 605, 628 in 2000-2001. Watch: Auto Sales Slowdown - Impact On Economy × However, in the past five years, car sales have been largely stagnant. In 2013, 2.5 million cars were sold in the country which went up to 3.3 million last year. Passenger cars dominated the list of cars sold annually selling over 25 lakh units which peaked to over 33 lakh in 2018-19. It was followed by commercial vehicles, three-wheelers and two-wheelers. In all, over 1,84,23,223 vehicles were sold in India in 2013-14 which peaked to 2,62,67,783 in 2018-19. The automobile associated said today that passenger vehicle sales plunged 31.57 per cent year-on-year to 196,524 units in August 2019 as auto companies urged the government to revive the sector. Interestingly, electric cars are way down the scale with just over a thousand sold in 2016, peaking to 2,000 in 2017 and then it fell last year to 1,200 last year. The situation is grim not just in India, China too has experienced a dip in sales. In April, car sales fell 14.6 per cent in the world's largest automotive market. Last year in China, car sales fell for the first time since the 1990s. Sales had dipped 2.8 per cent in 2018 to 28.1 million units, according to China Association of Automobile Manufacturers (CAAM). The constant decline has pushed Chinese carmakers to push for new designs and resort to price cuts in order to revive sales while the government has taken measures to revive the sector.

Car sales at historic low in India; auto companies urge government to revive sector

March 19, 2018. MG Motor, a 93-year-old British brand that kick-started as an out-and-out racing sportscar brand, announced their launch in India. With an intriguing plan of investing about Rs 5000 crore in India, and a well-constructed blueprint of their future operations for India, MG Motor caught the attention of automotive and business fraternity in the country.

"Our plan is to launch one product every year after 2019. We'll launch our first product in 2019, and subsequently launch one product every year," said Rajeev Chaba, President &amp; MD, MG Motor India, during the company's launch event earlier this year.

As much as this news excited the enthusiasts, some critics and big industry players felt hesitant &amp; iffy of MG's plan. Afterall, MG Motor might be a British brand, but it is owned by a Chinese company. And, the last time a Chinese car company did business in India, it did not end well for the company.

WION breaks down the strategy and the product offensive of MG Motor India. But to understand this let's take a minute and look at something that happened a year ago.

THE FAILURE OF GENERAL MOTOR IN INDIA

Lack of strong products and a failure to update and market their cars, meant American carmaker General Motors (GM) quit India after 22 years of doing business in the country. Just before GM was slowly fading into oblivion, the American carmaker took some frugal steps to revive the brand. Other than joining hands with multiple brands like Hindustan Motors &amp; Daewoo, GM's one last shot at reclaiming its lost glory was led by its Chinese partner SAIC. The partnership with the Chinese failed miserably, and the debacle of SAIL sedan proved to be the final nail in the coffin for GM.

<img alt="A view of the General Motors plant" data-entity-type="file" data-entity-uuid="8783d504-de6c-4980-ac75-4aafd50542e8" src="/sites/default/files/inline-images/gm-plant-wion.jpg" />

A famous Mandarin proverb reads 'The temptation to quit is the greatest just before you are about to succeed'. Staying true to the proverbial idea, the Chinese company decided to re-enter the Indian market. This time, with MG Motor - the British brand they acquired a decade ago.

Having already burnt their fingers experimenting in the Indian marketplace, SAIC is now ready to fight fire with fire. To make most of the brand history &amp; cult-following MG enjoys in India, SAIC is now targeting the premium-car space. They've already acquired the now-defunct General Motor's plant in Gujarat's Halol, and revamped it to manufacture cars in India, for India. However, most of the MG cars for global markets are still produced in China.

SAIC - CHINA'S LARGEST AUTOMAKER

MG cars are produced in four manufacturing bases across China. WION spent a day at MG's Lingang facility, about 50km from China's business capital Shanghai. The facility, built with an investment of four billion yuan, is responsible for the production of SIAC's two important brands from its line-up - MG Motor &amp; Roewe.

<img alt="The SAIC plant in China" data-entity-type="file" data-entity-uuid="5538983b-15a2-4af6-9532-b058bd211c65" src="/sites/default/files/inline-images/saic-plant-china-wion.jpg" />

MG and Roewe are both interchangeable brands of SAIC Motor Corporation. Post the tremendous success of Roewe cars in the mainstream Chinese automotive market, SAIC now aims to share its technologies with the MG brand. What's exciting for the Indian drivers is that SAIC is thinking of bringing these technologies to India with the MG brand.

A MANUFACTURING POWERHOUSE

<img alt="The Lingang plant" data-entity-type="file" data-entity-uuid="0ba9fe53-5c76-48d0-8a75-6dbfa7fc6214" src="/sites/default/files/inline-images/lingang-plant-wion.jpg" />

The Lingang manufacturing plant is almost completely automated with three lines producing most of the cars. The facility, which is capable of churning out an impressive 40 cars per hour, houses a paint shop and engine assembly plant. One aspect of the factory that caught our fancy, and we think should be carried over to MG's Halol facility, is that the assembly area was tuned to produce both Internal Combustion Engined-vehicles and electric cars on the same lines.

GETTING A TASTE OF MG CARS

It all looked good at first sight - the cars, the design centre and the production unit. But they say looks can be deceptive. So, we decided to give the cars a good thrashing to decipher their abilities at Guangde proving ground, the largest such ground in the ASEAN region, in Guangde County in Anhui, China.

<img alt="WION at MG Motors plant in China" data-entity-type="file" data-entity-uuid="7d7943a7-b1ba-4bca-8508-eff0a464b79e" src="/sites/default/files/inline-images/MG-cars-china-wion.jpg" />

Even though we were pressed for time, all the cars were put through tailor-made courses to test different driving credentials. We started off by driving the Blue Marvel from the Land of the Red Dragon.

Roewe Marvel X

<img alt="The Roewe Marvel X" data-entity-type="file" data-entity-uuid="257bf789-43dc-4cd1-90b9-b0e653170ee9" src="/sites/default/files/inline-images/ROEWE-MARVEL-X-WION.jpg" />

Beautiful lines and clear details, topped off by a giant shiny grille, the Marvel X is probably the best-looking car out of the MG line-up. Offering generous amounts of space on the inside, with good quality leather and a 12.3-inch touchscreen infotainment system developed by Alibaba, the Marvel X ticks all the boxes on paper.

<img alt="Marvel X Static" data-entity-type="file" data-entity-uuid="614bd5e6-5d7c-4b88-84ab-1e0b393ab3c2" src="/sites/default/files/inline-images/ROEWE-MARVEL-X-STATIC.jpg" />

Off paper, and on the course, the driving dynamics of Marvel X truly stand out. A 52.5 kWh battery helps the car to go from 0 to 100 km/hr in just 4.8 seconds with power being distributed to all the wheels. Essentially a mid-size SUV that offers a stunning 500km on a single charge, the Marvel X came out as an all-round winner on a patch used to test the ride-quality of the car.

MG HS

<img alt="The MG HS Static" data-entity-type="file" data-entity-uuid="f52f7a48-356c-4a1c-9ba3-87f2c3636e63" src="/sites/default/files/inline-images/MG-HS-STATIC-WION.jpg" />

The MG HS, on the other hand, is a full-blown SUV, and it comes across as an ideal car for MG's first car in India. The Hyundai Creta rival not only looks premium on the outside, it reeks of luxury on the inside. Electrically-adjustable front seats, dual zone climate control, adaptive cruise control and the liberal use of high-quality plastics are some of the elements you'll truly appreciate. Most importantly though, the entire MG HS range received a commendable five-star rating in the Chinese NCAP crash tests.

<img alt="Testing the MG HS Static" data-entity-type="file" data-entity-uuid="e9b2e162-f687-4181-b367-224cf7142540" src="/sites/default/files/inline-images/mg-hs-testing-wion.jpg" />

At the heart of the MG HS is a 2.0-litre turbocharged petrol engine that produces 231 PS of power and 360 Nm of torque, and is mated to a 6-speed automatic transmission. To check out the electronics that's available in the electric car, the MG HS was put through a simulated rain and snow track. Even at full throttle on the super-slippery surface, the MG HS was mighty skillful - thanks to ABS and traction control system. The course highlighted the practicality of the safety system that would come handy if the going got tough.

Roewe ERX5.0

<img alt="THe Roewe ERX5.0" data-entity-type="file" data-entity-uuid="67536489-2c79-4c33-a313-deab859b1852" src="/sites/default/files/inline-images/ROEWE-ERX5-WION.jpg" />

The first in-house developed internet-enabled car by SAIC is the Roewe ERX5. A rather monotonous skin on the outside, is perfectly contrasted by the 11.8 kWh Ternary battery pack under the skin.

The ride quality on offer was pretty impressive for a SUV. The ERX 5.0 was driven over a path that consisted of rough patches, and bumps. Even though it was not the best car we drove at Guangde Proving Grounds, the ERX 5.0 stands out because it is SAIC's first in-house developed internet connected car. Basically, this means that if you happen to pass through a toll gate, the car lets you do the payment. Similarly, at any restaurant's drive-through you can pick up your food and make the payment through your car. It also syncs your calender, e-mail, maps and gives you a notification of upcoming events, and flights. If at all MG get any of these technologies to India, an internet-connected car could truly be a game-changer in the Indian market which is undergoing a rapid digital transformation.

MG e6

<img alt="MG e6 Static" data-entity-type="file" data-entity-uuid="93c1aea8-149e-4058-8ff2-54d30df783ae" src="/sites/default/files/inline-images/MG-e6-static-wion_0.jpg" />

The last car we drove was the e6, a fastback hybrid sedan from the MG stables. Part of the standard equipment on the eMG6 are the electronic parking brake, and remote-control driving system, which allows drivers to control the car at low speeds via a mobile application.

<img alt="Testing the MG e6" data-entity-type="file" data-entity-uuid="419208dd-54c7-4da5-80ce-e2230cd072f5" src="/sites/default/files/inline-images/MG-test-wion_0.jpg" />

A complicated slalom test course and lane-changing sections, set up entirely with cones, brought out the true road-holding potential of the car at high-speeds. With power figures of 228 PS and 622 Nm, the car had absolutely no problem getting off the line. The eMG6 left us with a wide smile on our faces, as the sedan always seemed game for more, with an abundance reserve power available on tap.

CHALLENGES THAT LIE AHEAD

After getting a taste of MG's engineering prowess, we believe SAIC has genuinely capable products in its arsenal. However, the Indian market is not only about products. To get a sense of the strategy and the formula for Indian market, we spoke to Chaba, the man who calls the shots at MG Motor.

WION: What exactly is MG Motor's game plan for the Indian market?

Rajeev Chaba: We are launching our first car in Q2 of 2019. It is going to be a C-segment SUV, which is a large size SUV for our country. Overall, if I can say in one word, it will be that we will try to succeed the consumer expectations in whichever areas we touch. Hopefully, we are able to execute it.

WION: What's more interesting is that you have a strong electric car portfolio, and a specific electric car planned for India. Could you throw some light on the electric mobility plans you have for India?

Rajeev Chaba: SAIC has invested a lot in future technologies, EV and connected systems. So we are trying to get this EV to India at this point of time when the government is showing us the vision, the direction and an intention to introduce electric policies and infrastructure. We are going to launch an electric car as our second car in India. Right now, we are talking to the government about charging infrastructure and policies, so based on that it will depend how much of localisation will be done to the car. But it is not going to be an imported car, the electric car will be manufactured in our Halol facility in Vadodara.

WION: Is there a possibility of developing a shared platform between MG Motor, Volkswagen &amp; General Motors?

Rajeev Chaba: In SAIC's joint-venture with GM and VW, there are some common platforms that are accessible to both partners. So it means if SAIC wants, it can introduce some common platforms in certain territories if they have the contract with GM &amp; VW, so that's possible.

WION: How nervous are you about venturing into the Indian market, this time with a new brand?

Rajeev Chaba: I think the joke in the international auto circle is that if you're successful in India, you can be successful anywhere. This is because, in India we have an unique demand structure, and we have to be relevant. See, consumers are willing to pay if the products are relevant and meaningful for them. So, frankly if you ask me, I'm nervous, I'm not over-confident, I know the challenges, our team knows the challenges, but that keeps us on our toes to make sure that we are able to walk the talk. We are going to do our best, and we are very cautious.

Only when you drive cars like these, and explore car markets like China, do you realise how far India as a car country is. Tier-4 cities in China have charging stations for electric cars. You also understand the kind of potential manufacturers like MG Motor have to dynamically impact the marketplace and do something revolutionary.

Having said that, India is a&nbsp;tough market to crack. Several brands that have done business in India (some of them even quit Indian market) have found India to be a challenging market do to business in. This is mainly due to the fact that India is still a very value-conscious market.

MG Motor has some of the brightest minds working for them, like designers and engineers who develop exciting products for them. They do have the resources and a strong R&amp;D wing to build interesting cars. But more than all this, what will be vital for MG is to provide a quality overall experience to the Indian buyer, and introduce cars that are value-for-money irrespective of the segment and the pricing.

March 19, 2018. MG Motor, a 93-year-old British brand that kick-started as an out-and-out racing sportscar brand, announced their launch in India. With an intriguing plan of investing about Rs 5000 crore in India, and a well-constructed blueprint of their future operations for India, MG Motor caught the attention of automotive and business fraternity in the country.

March 19, 2018. MG Motor, a 93-year-old British brand that kick-started as an out-and-out racing sportscar brand, announced their launch in India. With an intriguing plan of investing about Rs 5000 crore in India, and a well-constructed blueprint of their future operations for India, MG Motor caught the attention of automotive and business fraternity in the country. "Our plan is to launch one product every year after 2019. We'll launch our first product in 2019, and subsequently launch one product every year," said Rajeev Chaba, President & MD, MG Motor India, during the company's launch event earlier this year. As much as this news excited the enthusiasts, some critics and big industry players felt hesitant & iffy of MG's plan. Afterall, MG Motor might be a British brand, but it is owned by a Chinese company. And, the last time a Chinese car company did business in India, it did not end well for the company. WION breaks down the strategy and the product offensive of MG Motor India. But to understand this let's take a minute and look at something that happened a year ago. THE FAILURE OF GENERAL MOTOR IN INDIA Lack of strong products and a failure to update and market their cars, meant American carmaker General Motors (GM) quit India after 22 years of doing business in the country. Just before GM was slowly fading into oblivion, the American carmaker took some frugal steps to revive the brand. Other than joining hands with multiple brands like Hindustan Motors & Daewoo, GM's one last shot at reclaiming its lost glory was led by its Chinese partner SAIC. The partnership with the Chinese failed miserably, and the debacle of SAIL sedan proved to be the final nail in the coffin for GM. A famous Mandarin proverb reads 'The temptation to quit is the greatest just before you are about to succeed'. Staying true to the proverbial idea, the Chinese company decided to re-enter the Indian market. This time, with MG Motor - the British brand they acquired a decade ago. Having already burnt their fingers experimenting in the Indian marketplace, SAIC is now ready to fight fire with fire. To make most of the brand history & cult-following MG enjoys in India, SAIC is now targeting the premium-car space. They've already acquired the now-defunct General Motor's plant in Gujarat's Halol, and revamped it to manufacture cars in India, for India. However, most of the MG cars for global markets are still produced in China. SAIC - CHINA'S LARGEST AUTOMAKER MG cars are produced in four manufacturing bases across China. WION spent a day at MG's Lingang facility, about 50km from China's business capital Shanghai. The facility, built with an investment of four billion yuan, is responsible for the production of SIAC's two important brands from its line-up - MG Motor & Roewe. MG and Roewe are both interchangeable brands of SAIC Motor Corporation. Post the tremendous success of Roewe cars in the mainstream Chinese automotive market, SAIC now aims to share its technologies with the MG brand. What's exciting for the Indian drivers is that SAIC is thinking of bringing these technologies to India with the MG brand. A MANUFACTURING POWERHOUSE The Lingang manufacturing plant is almost completely automated with three lines producing most of the cars. The facility, which is capable of churning out an impressive 40 cars per hour, houses a paint shop and engine assembly plant. One aspect of the factory that caught our fancy, and we think should be carried over to MG's Halol facility, is that the assembly area was tuned to produce both Internal Combustion Engined-vehicles and electric cars on the same lines. GETTING A TASTE OF MG CARS It all looked good at first sight - the cars, the design centre and the production unit. But they say looks can be deceptive. So, we decided to give the cars a good thrashing to decipher their abilities at Guangde proving ground, the largest such ground in the ASEAN region, in Guangde County in Anhui, China. Even though we were pressed for time, all the cars were put through tailor-made courses to test different driving credentials. We started off by driving the Blue Marvel from the Land of the Red Dragon. Roewe Marvel X Beautiful lines and clear details, topped off by a giant shiny grille, the Marvel X is probably the best-looking car out of the MG line-up. Offering generous amounts of space on the inside, with good quality leather and a 12.3-inch touchscreen infotainment system developed by Alibaba, the Marvel X ticks all the boxes on paper. Off paper, and on the course, the driving dynamics of Marvel X truly stand out. A 52.5 kWh battery helps the car to go from 0 to 100 km/hr in just 4.8 seconds with power being distributed to all the wheels. Essentially a mid-size SUV that offers a stunning 500km on a single charge, the Marvel X came out as an all-round winner on a patch used to test the ride-quality of the car. MG HS The MG HS, on the other hand, is a full-blown SUV, and it comes across as an ideal car for MG's first car in India. The Hyundai Creta rival not only looks premium on the outside, it reeks of luxury on the inside. Electrically-adjustable front seats, dual zone climate control, adaptive cruise control and the liberal use of high-quality plastics are some of the elements you'll truly appreciate. Most importantly though, the entire MG HS range received a commendable five-star rating in the Chinese NCAP crash tests. At the heart of the MG HS is a 2.0-litre turbocharged petrol engine that produces 231 PS of power and 360 Nm of torque, and is mated to a 6-speed automatic transmission. To check out the electronics that's available in the electric car, the MG HS was put through a simulated rain and snow track. Even at full throttle on the super-slippery surface, the MG HS was mighty skillful - thanks to ABS and traction control system. The course highlighted the practicality of the safety system that would come handy if the going got tough. Roewe ERX5.0 The first in-house developed internet-enabled car by SAIC is the Roewe ERX5. A rather monotonous skin on the outside, is perfectly contrasted by the 11.8 kWh Ternary battery pack under the skin. The ride quality on offer was pretty impressive for a SUV. The ERX 5.0 was driven over a path that consisted of rough patches, and bumps. Even though it was not the best car we drove at Guangde Proving Grounds, the ERX 5.0 stands out because it is SAIC's first in-house developed internet connected car. Basically, this means that if you happen to pass through a toll gate, the car lets you do the payment. Similarly, at any restaurant's drive-through you can pick up your food and make the payment through your car. It also syncs your calender, e-mail, maps and gives you a notification of upcoming events, and flights. If at all MG get any of these technologies to India, an internet-connected car could truly be a game-changer in the Indian market which is undergoing a rapid digital transformation. MG e6 The last car we drove was the e6, a fastback hybrid sedan from the MG stables. Part of the standard equipment on the eMG6 are the electronic parking brake, and remote-control driving system, which allows drivers to control the car at low speeds via a mobile application. A complicated slalom test course and lane-changing sections, set up entirely with cones, brought out the true road-holding potential of the car at high-speeds. With power figures of 228 PS and 622 Nm, the car had absolutely no problem getting off the line. The eMG6 left us with a wide smile on our faces, as the sedan always seemed game for more, with an abundance reserve power available on tap. CHALLENGES THAT LIE AHEAD After getting a taste of MG's engineering prowess, we believe SAIC has genuinely capable products in its arsenal. However, the Indian market is not only about products. To get a sense of the strategy and the formula for Indian market, we spoke to Chaba, the man who calls the shots at MG Motor. WION: What exactly is MG Motor's game plan for the Indian market? Rajeev Chaba: We are launching our first car in Q2 of 2019. It is going to be a C-segment SUV, which is a large size SUV for our country. Overall, if I can say in one word, it will be that we will try to succeed the consumer expectations in whichever areas we touch. Hopefully, we are able to execute it. WION: What's more interesting is that you have a strong electric car portfolio, and a specific electric car planned for India. Could you throw some light on the electric mobility plans you have for India? Rajeev Chaba: SAIC has invested a lot in future technologies, EV and connected systems. So we are trying to get this EV to India at this point of time when the government is showing us the vision, the direction and an intention to introduce electric policies and infrastructure. We are going to launch an electric car as our second car in India. Right now, we are talking to the government about charging infrastructure and policies, so based on that it will depend how much of localisation will be done to the car. But it is not going to be an imported car, the electric car will be manufactured in our Halol facility in Vadodara. WION: Is there a possibility of developing a shared platform between MG Motor, Volkswagen & General Motors? Rajeev Chaba: In SAIC's joint-venture with GM and VW, there are some common platforms that are accessible to both partners. So it means if SAIC wants, it can introduce some common platforms in certain territories if they have the contract with GM & VW, so that's possible. WION: How nervous are you about venturing into the Indian market, this time with a new brand? Rajeev Chaba: I think the joke in the international auto circle is that if you're successful in India, you can be successful anywhere. This is because, in India we have an unique demand structure, and we have to be relevant. See, consumers are willing to pay if the products are relevant and meaningful for them. So, frankly if you ask me, I'm nervous, I'm not over-confident, I know the challenges, our team knows the challenges, but that keeps us on our toes to make sure that we are able to walk the talk. We are going to do our best, and we are very cautious. Only when you drive cars like these, and explore car markets like China, do you realise how far India as a car country is. Tier-4 cities in China have charging stations for electric cars. You also understand the kind of potential manufacturers like MG Motor have to dynamically impact the marketplace and do something revolutionary. Having said that, India is a tough market to crack. Several brands that have done business in India (some of them even quit Indian market) have found India to be a challenging market do to business in. This is mainly due to the fact that India is still a very value-conscious market. MG Motor has some of the brightest minds working for them, like designers and engineers who develop exciting products for them. They do have the resources and a strong R&D wing to build interesting cars. But more than all this, what will be vital for MG is to provide a quality overall experience to the Indian buyer, and introduce cars that are value-for-money irrespective of the segment and the pricing.

Cars from the land of Red Dragon ready for India

The Society of Indian Automobile Manufacturers (SIAM) has&nbsp;recommended that sixty percent of all new vehicle sales in the country should employ greener technologies like hybrids and other alternative fuels by the year 2030 for a complete shift towards electric vehicle regime by 2047.&nbsp;

SIAM on Wednesday presented a roadmap for the complete shift towards electric vehicle regime by 2047.

SIAM, which has suggested that forty percent of all new vehicle sales in the country should be electric vehicles by 2030, noted that all new vehicle sales for intra-city public transport fleets should be electric by 2030.

It also recommended that sixty percent of all new vehicle sales in the country should employ greener technologies like hybrids and other alternative fuels by the year 2030.&quot;To ensure smooth phasing in of pure electric vehicles and to sustain the transition to cleaner fossil fuel vehicles, the IC engine upgradation must continue over the next decade or so. Progressively cleaner fossil fuel vehicles would be an essential stepping stone in this journey towards hundred percent electric vehicle regime. Finally, all new vehicle sales should be the electric vehicle by 2047,&quot; SIAM said in an official release.

Dr Abhay Firodia, President, SIAM in a statement said that to make sure that this vision is realized, the industry, government and various stakeholders will need to collaborate and invest with 100 percent commitment. He further emphasised that the proposed policy measures by SIAM would be needed for creating a robust market and manufacturing eco-system for electric vehicles in the country and such a policy must be sustained over time to enable the industry to commit investments with full confidence.

Firodia also added that the policy should allow outcomes in a planned manner to ensure that the necessary transformation takes place with the minimum disruption and socio-economic impact in terms of industrial growth, employment and livelihood of people in the auto industry.

SIAM has made these recommendations in the White Paper on Electric Vehicles submitted to the government in line with the vision of Government of India of 100 percent electric vehicles for public mobility and 40 percent electric vehicles for personal mobility by 2030.&nbsp;

The Society of Indian Automobile Manufacturers presented a roadmap for the shift Wednesday

The Society of Indian Automobile Manufacturers (SIAM) has recommended that sixty percent of all new vehicle sales in the country should employ greener technologies like hybrids and other alternative fuels by the year 2030 for a complete shift towards electric vehicle regime by 2047. SIAM on Wednesday presented a roadmap for the complete shift towards electric vehicle regime by 2047. SIAM, which has suggested that forty percent of all new vehicle sales in the country should be electric vehicles by 2030, noted that all new vehicle sales for intra-city public transport fleets should be electric by 2030. It also recommended that sixty percent of all new vehicle sales in the country should employ greener technologies like hybrids and other alternative fuels by the year 2030."To ensure smooth phasing in of pure electric vehicles and to sustain the transition to cleaner fossil fuel vehicles, the IC engine upgradation must continue over the next decade or so. Progressively cleaner fossil fuel vehicles would be an essential stepping stone in this journey towards hundred percent electric vehicle regime. Finally, all new vehicle sales should be the electric vehicle by 2047," SIAM said in an official release. Dr Abhay Firodia, President, SIAM in a statement said that to make sure that this vision is realized, the industry, government and various stakeholders will need to collaborate and invest with 100 percent commitment. He further emphasised that the proposed policy measures by SIAM would be needed for creating a robust market and manufacturing eco-system for electric vehicles in the country and such a policy must be sustained over time to enable the industry to commit investments with full confidence. Firodia also added that the policy should allow outcomes in a planned manner to ensure that the necessary transformation takes place with the minimum disruption and socio-economic impact in terms of industrial growth, employment and livelihood of people in the auto industry. SIAM has made these recommendations in the White Paper on Electric Vehicles submitted to the government in line with the vision of Government of India of 100 percent electric vehicles for public mobility and 40 percent electric vehicles for personal mobility by 2030.

SIAM wants all cars in India to be electric by 2047

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