Auto mobile Sector Current Affairs - 2020

Union Government imposes anti-dumping duty on Chinese auto parts

The Union Finance Ministry has imposed anti-dumping duties on imported Chinese auto parts used in commercial vehicles for a period of five years.

Decision in this regard was taken following recommendations of the Directorate-General of Anti-Dumping and Allied Duties (DGAD).

Chinese items like Front-axle beam and steering knuckles meant for heavy and medium commercial vehicles were imported into India at prices less than even cost of production in domestic market.

Anti-dumping duties was also imposed on

  • Fully-drawn/oriented yarn, spin-drawn yarn and flat yarn of polyester (non-textured) imported from China and Thailand for 5 years.
  • Plain medium density fibre board of thickness six mm and above imported from Malaysia, China, Thailand and Sri Lanka for a period of 5 years.
  • Hexamine used in making of phenolic resins imported from China and the United Arab Emirates (UAE) for 5 years.

Anti-dumping duties: It is counter import measure used by a country under the multilateral World Trade Organisation (WTO) regime to protect its domestic producers and market from below-cost/cheap imports. It varies from product to product and from country to country.

Get these updates on Current Affairs Today Android App

Hero Motocorp to buy assets of bankrupt US Company

India’s largest two-wheeler manufacturer Hero Motocorp’s wholly owned subsidiaries in U.S is to buy certain tangible and intangible assets worth of USD 2.8 million of U.S based Erik Buell Racing (EBR). This purchase is a part of the settlement deal with court-appointed receiver in the bankruptcy matter.

The two subsidiaries Hero Moto Corp Ltd (HMCL) Americas, Inc. and HMCL (NA), Inc. have entered into a “Settlement Agreement” in the bankruptcy matter filed by Erik Buell Racing (EBR) and Erik Buell LLC.

With this deal Hero Motocorp is envisaging foraying into the US two wheeler markets and has planned to market its products in the US through the EBR network.

This deal will be second for Indian manufacture to buy any foreign motorcycle company’s assets after Eicher Motors who owned majority stakes of Royal Enfield in 1993.

EBR is on the verge of bankruptcy as in mid 2013 it has sold its 49.2 per cent stake to Hero Motocorp for USD 25 million (148 crore Rupees) and on April 15, 2015 it has filed for bankruptcy protection and had ceased all its operations.

This Settlement Agreement will help Hero MotoCorp’s in-house research and accelerate development teams in certain consulting projects.

About Erik Buell Racing (EBR)

It is an American motorcycle sport company which produced street and racing motorcycles which was founded by Erik Buell in 2009 and is based in East Troy, Wisconsin, USA.

Its first effort was to produce complete racing motorcycles and its parts under license from Harley-Davidson, but company went into bankruptcy in April 2015.

Get these updates on Current Affairs Today Android App