A month in the India Transport Sector

January, 2012

FOCUS : CAR MARKET

FIRST TIME IN 11 YEARS INDIA SEES A DROP IN CAR SALES The Indian automobile sector has seen its first drop in sales in years. This flourishing car market has come to a halt and for the first time in 11 years India has seen a drop in car sales an unexpected trend for a country touted as being one of the leading auto markets of Asia. More information on ITP DIESEL CARS AVAILABLE AT THE PRICE OF PETROL CARS Today, the price of diesel cars is almost on par with that of petrol cars. With the rising cost of diesel oil, many aspects of the automotive industry have been hit and in particular the cost to purchase a diesel-fuelled vehicle. More information on ITP SALES OF DIESEL CARS TO TOP THE LIST With an increasing gap of around Rs 20 between diesel and petrol, diesel-powered vehicles are becoming increasingly popular. Just as companies are likely to bring about more vehicles with diesel engines, top officials from car manufacturing companies such as Hyundai, Toyota and Maruti think that this increase in diesel car sales will persist if the price gap between petrol and diesel widens. More information on ITP GUEST POST: INDIAN AUTOMOBILE INDUSTRY CURRENT SCENARIO AND CHALLENGES AHEAD TO MEET AMP 2016 There has been a sudden spurt in the Indian Automobile Industry, especially since last two years when the industry posted double digits growth and turned the heads to the global car makers towards the Indian market. Since that time, there have been some big bets on the Indian Automotive Scenario a decade hence. More information on ITP

EDITORIAL
The first year of India Transport Portal ends with 2011. All the ITPs team would like to thank you for your loyalty and wishes you a happy new year. Our increasing success among transportation stakeholders allows us to tackle 2012 with confidence. We have several exciting projects for this year and we cannot wait to present them to you! Meanwhile, we are proud to invite you to have a look at our publications in Intertraffic World India. We have released seven in-depth analyses that address several and various transportation issues. From the road safety to the truck overloading through Intelligent Transport System, these analyses are our contribution to the Transportation understanding.

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February 23 - 25, 2012 Mumbai METRO RAIL INDIA SUMMIT February 23 - 24, 2012 Bangalore 2ND ANNUAL METRO EXPANSION February 23 - 24, 2012 New Delhi 2ND ANNUAL INTELLIGENT TRANSPORT SYSTEM February 27 - 28, 2012 New Delhi TRAFFIC INFRA TECH EXPO May 17 - 19, 2012 Chennai

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A month in the India Transport Sector FUEL ISSUE

DEMAND FOR DIESEL HIGHER THAN PETROL A NEW TREND FOR INDIA The governments decision to deregulate petrol prices in 2010 spelt unimaginable woes for consumers as oil companies now have the power and authority to dictate the price of petrol according to international crude oil prices. The very high cost of petrol and the innumerable hikes in petrol prices in 2011 have proved that. More information on ITP FREQUENT RISE OF PETROL PRICE: GROWING CONCERN FOR CONSUMERS Abrupt and unexpected increases in the price of petrol have become a major concern for Indian consumers. In the current financial year the country has witnessed several hikes in petrol pricing leading to a number of consequences: the flourishing automobile industry has been badly hit by the ever increasing petrol prices as it has become very expensive to run a car. More informations on ITP PRICE OF PETROL HAS GONE DOWN Petrol users in India were able to heave a sigh of relief last month as the price of petrol went down. On 16th November the first cut in petrol prices for the current financial year was announced, a first since January 2009. In June 2010, petrol pricing was released from government control and since then the prices have witnessed increase after increase to the dismay of consumers and businesses. More informations on ITP RISING FUEL PRICES MEAN RISE IN PRICE OF COMMODITIES A few days after the oil minister completely distanced himself from all questions relating to the petrol hike, oil marketing companies started taking action. Indian Oil Corporation has decided to increase the price of petrol by Rs 1.80 per litre. Oil marketing companies such as BPCL and HPCL will soon follow suit and increase their prices as well. It is believed that this price hike is important as the Rs 15000 Crore compensation which has been promised by the Central Government has yet to be handed over. More information on ITP

January, 2012 ELECTRIC VEHICLES

ELECTRIC VEHICLES MARKET SET TO GROW IN INDIA Though the congested Indian roads cannot take any more vehicles, electric/hybrid vehicles will be more than welcome as they will serve the twin needs of pollution free environment and saving on the petro fuel which is a major import for the country. Indias import bill for oil on an average is over $100 billion a year. Apart from improving the environment there are other major drivers for the market for electric vehicles in Indi. More information on ITP

FREIGHT TRAINS
GURGAON MUNDRA DOUBLE STACK TRAINS TO BECOME OPERATIONAL Indian railways will soon be putting into operation double-stack trains and these will be running between Gurgaon and the port of Mundra within Gujarat. This is done in an attempt to strengthen the transportation of steel, cars as well as consumer goods. This service was due to be operational from September. Research Designs and Standards Organisation has given its consent for its operation. The preparations which are needed as far as safety approval is concerned have all been completed. This will be a 19-feet high train which will clear containers from the port zones. More information on ITP

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A month in the India Transport Sector EVENT REPORT : ASIAN TYRE & RUBBER CONFERENCE
THE NEWS The tyre industry in India has been sorely hit this year and consumers have had to deal with many price hikes during that time. As a result, they are finding themselves paying a lot more for cars and tyres than they would have a year or two ago. More information on ITP THE CHALLENGES Consumers using cars for personal and business travels are the greatest users of automotive tyres today, according to Indias ATMA (Automotive Tyre Manufacturing Association). There are 40 tyre companies in India (2011 figure), and of these, the top seven manufacturers produce 85% of the tyres used. More information on ITP THE MARKET The demand for tyres in India has continued to grow. People who want or need tyres the most are the ones buying and maintaining cars. The industrial use of tyres was actually far lower in 2011 than that of private use. Unfortunately demand has started to exceed supply and with the loss of rubber tree crops in Thailand, obtaining supplies of good rubber in 2012 will be even more difficult. More information on ITP

January, 2012 METRO/RAILWAYS

RAILWAY PASSENGER FARE SOON TO BE REVISED The Railway Ministry has proposed to revise its passenger fares upwards to avoid further economic problems and improve safety. This particular proposal came at a time when the railways unions as well as the Planning Commission were also calling for a price revision something that hadnt been done in the last eight years. More information on ITP REAL TIME TRAIN INFORMATION SYSTEM LAUNCHED BY INDIAN RAILWAYS Indian Railways is one of the most popular and affordable modes of transport that caters for the bulk of the population in the country. With a passenger base of around 30 million and tracks covering over 114,500 km, Indian Railways truly epitomises the concept of public transport in India. More information on ITP

TO GO FURTHER
THE ADVANTAGES OF RADIALS Radial tyres have gained enormous popularity in recent times over the normal bias ply or cross ply tyres as they come with many benefits. The construction of a radial tyre is different than that of the traditional cross ply tyre. More information on ITP

DELHI METRO HAS HELPED EASE OUT ROAD CONGESTION Indian Railways is one of the most popular and affordable modes of transport that caters for the bulk of the population in the country. With a passenger base of around 30 million and tracks covering over 114,500 km, Indian Railways truly epitomises the concept of public transport in India. More information on ITP

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A month in the India Transport Sector ROAD TRANSPORTATION

A LOT OF TRUCK CAPACITY IS REQUIRED WHICH INCORPORATES LATEST TECHNOLOGY.S.SRIRAMAN, PROFESSOR OF TRANSPORT ECONOMICS There is a huge requirement by way of transportation infrastructure and services in the Indian context. This could be more apparent than real. I say this because there is a lot of unused capacity in a significant part of the network while some part is saturated. The larger issue of dispersal of the developmental process has still to be solved in any reasonable way. Yes, there are costs of dispersal but then there are huge costs of concentration also especially reflected in the metropolitan cities which are growing without the sort of infrastructure that is required. More information on ITP

January, 2012 CAR COST

CAR LOANS TO SEE A HIKE Car loans in India are about to witness an increase according to reports from the Reserve Bank of India (RBI). The short-term lending rate will increase to almost 7.5 per cent. The short-term borrowing rate will also increase by a similar amount to almost 6.5 per cent. More information on ITP

INCREASE OF ROAD TAX IN DELHI Amongst motor vehicle taxations in India, road tax constitutes one of the key components. All vehicles that are not governmentowned come under the purview of this tax structure at the time of registration of the vehicle. More information on ITP

OVERLOADED VEHICLES FACE STRICT SCRUTINY Overloaded vehicles on Indian roads are an unfortunate yet common sight. While city roads are spared to some extent, highways are another story. Trucks after trucks, carrying more than their maximum capacity, navigate busy Indian roads. Up until 2005, overloaded trucks did not face any scrutiny nor did they have to pay a penalty. While most state governments issued tokens allowing the overloading of trucks after the payment of a fixed charge, others issued private passes through Transport Offices to allow overloaded trucks to pass through the state. More information on ITP

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ABOUT US
EMISSION STANDARDS ON INDIAN ROADS As we know, the number of vehicles has a direct bearing on the environment we live in. Considering the long term ramifications vehicles create on our ecology, it is imperative to have emission standards. Emission norms set the upper limit on the amount of pollutants that can be transmitted in the environment. The need and usefulness of emission standards on Indian roads is unquestionable. More information on ITP Indian Transport Portal is an online news center covering the most critical industrial issues related to transport markets in India. India Transport Portal and India Transport Portal are edited by Digital Bizzline Ltd. a UK based press agency recently launched by a group of freelance journalists. Digital Bizzline Ltd. is registered at the Companies House UK: 07301455

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