Tweet
Gold up; car sales down
The best bet of investors in time of economic crisis—gold, is each day smashing its own record to reach a new high but on the other hand car sales in the country has witnessed the biggest fall in 10 months in August as problems like high fuel prices, increased cost of loans and fears of job losses kept buyers away from the market.
While gold prices touched new all-time high of Rs 32,500 per 10 grams in the bullion market on Monday, domestic cars sales in August stood at 1,18,142 units compared to 1,45,066 units in the same month last year, down 18.56 per cent
Gold dazzles at record high of Rs 32,500 per 10 gm
Gold continued its upward journey on US Fed hope and seasonal demand in the country as the precious yellow metal touched new all-time high of Rs 32,500 per 10 grams in the bullion market on Monday.
Gold, which has been on a record setting spree for the past three weeks, rose by Rs 50 to Rs 32,500 per 10 grams.
Traders said sentiment in gold remained bullish as the metal rose to near six-month high in global markets on speculations that central banks from the US and China would bring in more stimulus measures to revive economic growth, raising demand outlook for the precious metal.
In New York, the yellow metal surged by $34 to $1,734.30 an ounce in the previous session.
Also, sustained buying by stockists to meet the wedding season demand further fulled the uptrend.
On the domestic front, gold of 99.9 and 99.5 per cent purity advanced by Rs 50 each to Rs 32,500 and Rs 32,300 per 10 grams, respectively.
Sovereign shot up by Rs 200 to Rs 25,500 per piece of eight grams.
Silver prices, however, remained flat.
Silver ready held steady at Rs 61,800 per kg on restricted buying by industrial units and coin makers, while weekly-based delivery rose by Rs 235 to Rs 64,230 per kg on speculators’ support.
Silver coins continued to be asked around previous level of Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.
SIAMasks Govt for stimulus
Auto sales decline in almost all the segments in the month of august forced auto body SIAM to ask for cut in excise duty from the Government. Car sales declined the most in 10 months by 18.56 per cent in August.
With exports also posting the highest decline in more than 11 years, falling 26.83 per cent during the month SIAM sought a stimulus package similar to the one given during the 2008-09 downturn, stating the industry is “now entering a desperate situation”.
The overall vehicle sales in the country also registered a drop of 3.9 per cent to 13,54,436 units in August this year, the biggest decline in more than three and half years.
According to the latest SIAM figures, domestic cars sales in August stood at 1,18,142 units compared to 1,45,066 units in the same month last year, down 18.56 per cent. The rate of decline is the highest since October 2011, when sales declined by 23.74 per cent to 1,39,095 units.
“This is the time when wholesale numbers should be picking up as dealers stock-up to meet festive season demand, but this has not happened. We are entering a desperate situation. We need help from the Government,” SIAM Senior Director Sugato Sen told reporters here.
He said the excise duty on automobiles, which was increased in this year’s Budget, needs to be reduced, particularly for the commercial vehicles segment.
“The stimulus package, which was provided during the 2008-09 downturn, needs to be provided. If something is not done by the Government, we are going to suffer,” Sen added.
Car exports during the month stood at 36,104 units, down 26.83 per cent. The previous lowest decline in exports was recorded in March 2001, when overseas shipments dropped by 48.37 per cent to just 2,221 units.
“The decline in exports has also affected the overall production of the companies here in India,” he said.
In this year’s Budget, excise duty on small cars was hiked to 12 per cent from 10 per cent. For petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1,500 cc, but the length exceeding four metres were increased to 24 per cent from 22 per cent and a fixed duty of Rs 15,000.
Petrol and diesel driven vehicles having length exceeding four metres and engine capacity of over 1,200 cc and 1,500 cc respectively were charged with an ad valorem duty of 27 per cent, instead of the earlier 22 per cent and a fixed duty of Rs 15,000.
During the 2008-09 downturn, the Government had provided a stimulus package by reducing CENVAT by 4 per cent. For the commercial vehicles segment, public sector banks were allowed to provide line of credit to NBFCs on new purchases and one-time assistance under Jawaharlal Nehru National Urban Renewal Mission to purchase busses for urban transportation.The month-long lockout at Maruti Suzuki’s Manesar plantfrom July 21 impacted the industry’s numbers last month.
Sen, however, said this was not the sole reason for the decline in car sales as the overall market is down due to high interest rates and fuel prices along with inflationary pressure.
“The drop of nearly 19 per cent for the industry is too big for a single company to make up,” he said.
In the passenger car segment, market leader Maruti Suzuki’s sales fell by 49.99 per cent to 31,653 units. Rival Hyundai Motor India’s sales, however, increased by 6.58 per cent to 28,192 units. Homegrown auto major Tata Motors’ car sales were up by 31.23 per cent at 17,727 units.
The best bet of investors in time of economic crisis—gold, is each day smashing its own record to reach a new high but on the other hand car sales in the country has witnessed the biggest fall in 10 months in August as problems like high fuel prices, increased cost of loans and fears of job losses kept buyers away from the market.
While gold prices touched new all-time high of Rs 32,500 per 10 grams in the bullion market on Monday, domestic cars sales in August stood at 1,18,142 units compared to 1,45,066 units in the same month last year, down 18.56 per cent
Gold dazzles at record high of Rs 32,500 per 10 gm
Gold continued its upward journey on US Fed hope and seasonal demand in the country as the precious yellow metal touched new all-time high of Rs 32,500 per 10 grams in the bullion market on Monday.
Gold, which has been on a record setting spree for the past three weeks, rose by Rs 50 to Rs 32,500 per 10 grams.
Traders said sentiment in gold remained bullish as the metal rose to near six-month high in global markets on speculations that central banks from the US and China would bring in more stimulus measures to revive economic growth, raising demand outlook for the precious metal.
In New York, the yellow metal surged by $34 to $1,734.30 an ounce in the previous session.
Also, sustained buying by stockists to meet the wedding season demand further fulled the uptrend.
On the domestic front, gold of 99.9 and 99.5 per cent purity advanced by Rs 50 each to Rs 32,500 and Rs 32,300 per 10 grams, respectively.
Sovereign shot up by Rs 200 to Rs 25,500 per piece of eight grams.
Silver prices, however, remained flat.
Silver ready held steady at Rs 61,800 per kg on restricted buying by industrial units and coin makers, while weekly-based delivery rose by Rs 235 to Rs 64,230 per kg on speculators’ support.
Silver coins continued to be asked around previous level of Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.
SIAMasks Govt for stimulus
Auto sales decline in almost all the segments in the month of august forced auto body SIAM to ask for cut in excise duty from the Government. Car sales declined the most in 10 months by 18.56 per cent in August.
With exports also posting the highest decline in more than 11 years, falling 26.83 per cent during the month SIAM sought a stimulus package similar to the one given during the 2008-09 downturn, stating the industry is “now entering a desperate situation”.
The overall vehicle sales in the country also registered a drop of 3.9 per cent to 13,54,436 units in August this year, the biggest decline in more than three and half years.
According to the latest SIAM figures, domestic cars sales in August stood at 1,18,142 units compared to 1,45,066 units in the same month last year, down 18.56 per cent. The rate of decline is the highest since October 2011, when sales declined by 23.74 per cent to 1,39,095 units.
“This is the time when wholesale numbers should be picking up as dealers stock-up to meet festive season demand, but this has not happened. We are entering a desperate situation. We need help from the Government,” SIAM Senior Director Sugato Sen told reporters here.
He said the excise duty on automobiles, which was increased in this year’s Budget, needs to be reduced, particularly for the commercial vehicles segment.
“The stimulus package, which was provided during the 2008-09 downturn, needs to be provided. If something is not done by the Government, we are going to suffer,” Sen added.
Car exports during the month stood at 36,104 units, down 26.83 per cent. The previous lowest decline in exports was recorded in March 2001, when overseas shipments dropped by 48.37 per cent to just 2,221 units.
“The decline in exports has also affected the overall production of the companies here in India,” he said.
In this year’s Budget, excise duty on small cars was hiked to 12 per cent from 10 per cent. For petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1,500 cc, but the length exceeding four metres were increased to 24 per cent from 22 per cent and a fixed duty of Rs 15,000.
Petrol and diesel driven vehicles having length exceeding four metres and engine capacity of over 1,200 cc and 1,500 cc respectively were charged with an ad valorem duty of 27 per cent, instead of the earlier 22 per cent and a fixed duty of Rs 15,000.
During the 2008-09 downturn, the Government had provided a stimulus package by reducing CENVAT by 4 per cent. For the commercial vehicles segment, public sector banks were allowed to provide line of credit to NBFCs on new purchases and one-time assistance under Jawaharlal Nehru National Urban Renewal Mission to purchase busses for urban transportation.The month-long lockout at Maruti Suzuki’s Manesar plantfrom July 21 impacted the industry’s numbers last month.
Sen, however, said this was not the sole reason for the decline in car sales as the overall market is down due to high interest rates and fuel prices along with inflationary pressure.
“The drop of nearly 19 per cent for the industry is too big for a single company to make up,” he said.
In the passenger car segment, market leader Maruti Suzuki’s sales fell by 49.99 per cent to 31,653 units. Rival Hyundai Motor India’s sales, however, increased by 6.58 per cent to 28,192 units. Homegrown auto major Tata Motors’ car sales were up by 31.23 per cent at 17,727 units.
