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China poses greatest risk to Europe's carmakers LONDON - Chinese-made electric vehicles (EVs) pose the greatest risk to Europe's carmakers and could cost them 7 billion euros ($7.7 billion) a year in lost profits by 2030 unless policymakers take action, according to an report. According to the report released on Tuesday by the unit of German insurer Allianz, policymakers need to meet the challenge with reciprocal tariffs on imported cars from China, do more to develop materials and technologies, and also allow Chinese carmakers to build cars in Europe. Europe's carmakers face a dual threat from the prospect of falling sales of their own vehicles in China, where local EV makers have been growing market share, and from rising sales of imported Chinese EVs - made by Chinese or Western carmakers. Global carmakers have pledged to make a comeback in China with a large number of EVs in a fast-moving market where the pressure to cut prices is getting more intense. A crowded market for all-electric SUVs in China is putting pressure on local carmakers to export more vehicles to Europe. Chinese EV imports could cost the European Union over 24 billion euros in economic output in 2030, or 0.15% of the bloc's gross domestic product, Allianz Trade said. But the "automotive-dependent economies of Germany, Slovakia and Czech Republic could face an even bigger hit" of between 0.3% to 0.4% of GDP, said the report, titled: "The Chinese challenge to the European automotive industry". "The stakes are high for Europe's automotive industry: four out of five cars sold in Europe are assembled locally," the report added. "Europe is also the world's export powerhouse in the sector, with car trade generating between 70 billion and 110 billion euros in trade surplus for the European economy every year over the past decade." The report said the (IRA) had made Europe a target for Chinese exports. While Europe remains comparatively open to imported EVs - Tesla, for instance, accounts for 20% of fully-electric car sales in Europe - the United States is "set to be a much tougher market to crack for Chinese vehicles" because of the IRA, the report said. ($1 = 0.9071 euros)
BMW will not provide direct access to in-vehicle data to third parties: CEO BERLIN - BMW will never provide direct access to operating systems inside its car to third parties in order to secure the privacy of its customers, its chief executive Oliver Zipse said at an event by autos supplier Robert Bosch in Berlin. "Securing the privacy of our customers is the most important promise BMW is making to its customers... there will never be a direct access to the operating system inside the car by third parties," Zipse said, adding he knew suppliers wanted access to this data. Companies in Europe are vying for control of vehicle data, with EU regulators looking to hammer out the world's first laws for the growing industry of web-enabled vehicles in order to provide fair access to entities like subscription services, insurers and repair shops. BMW said to Reuters in March it can share nearly 100 data points with third parties if drivers personally requested it, and could make more available if companies prove a real business need for them and a willingness to take responsibility for cybersecurity risks. (Reporting by Victoria Waldersee Editing by Madeline Chambers)
Yamaha Motors’ lending arm MBSI partners with Alt Mobility to finance E2Ws New Delhi: ’ Bengaluru-based leasing company, (MBSI), has partnered with . IIT Delhi-based Alt Mobility is a technology enabled EV leasing and lifecycle management platform enabling electrification of commercial fleets with simplified leasing solutions, Yamaha Motors said. The partnership is for 500 , financed by MBSI and leased and managed entirely by Alt Mobility, through its state-of-the-art , the company said in a media release. The integrated FleetOS platform enables (a) hassle free, capex light leasing offering to B2B commercial logistics fleet operators, and (b) helps financing partners get transparent and secure access to vehicle portfolio including vehicle health, security, dynamic residual value, utilization, collections and other features to reduce financing risk, the release added. “This partnership aims to unlock access to finance for the underserved electric mobility segment by eliminating capital barriers to EV transition. Our platform’s strength in asset management, predictive fleet maintenance and utilization, deep insights into driving patterns, early warning systems using advanced data analytics derived from operational fleets, combined with Yamaha Motors experience and strong standing aims to set a new benchmark for commercial vehicle financing,” Dev Arora, co-founder and CEO of Alt Mobility said. MBSI provides vehicle leasing and other support services for tech startup companies that focus on the shared mobility space in India. MBSI’s mission is to increase the usage of vehicles on shared/rental platforms, create employment opportunities and contribute towards improving people’s quality of life in India. Over the past year, MBSI has managed over 3500 assets and plans to invest INR 100 Crore in vehicles in 2023. The company targets to manage 1 million vehicles by 2028, the release added. As part of the partnership, Alt Mobility and MBSI strive to enable more businesses, fleet operators and drivers to lease from Alt Mobility at an affordable rate, which saves upto 30% of the operational costs, compared to ICE vehicles and upto 20% compared to conventional financing options. In addition, the partnership will also facilitate routine service, spare parts, and breakdown support and comprehensive insurance policies for all vehicles. Shoji Shiraishi, Managing Director, MBSI said, “MBSI is thrilled to officially kick start our operations in the asset finance segment in New Delhi by partnering with Alt Mobility. India is seeing rapid growth in sales of Electric Vehicles (EVs) as manufacturers and users rush to switch from gasoline-powered vehicles due to the rising cost of fuel. With a key potential market of 1.4Billion Indians, there is potential to unlock a huge market. We will continue to onboard electric vehicles across multiple cities and generate employment avenues for the youth of India. We plan to work with more mobility companies in the future and to
market. We will continue to onboard electric vehicles across multiple cities and generate employment avenues for the youth of India. We plan to work with more mobility companies in the future and to transform the overall shared mobility space in India by bringing our financial and strategic experience from our stakeholders.” MBSI will finance electric two and three-wheelers that will be jointly leased out to Alt’s customers. These vehicles will be provided to B2B logistics fleet operators and aggregators at an affordable monthly lease value, which in turn will ensure regular income and the agenda of creating employment. “We are on a mission to catalyze access to low-cost debt for financing the in India by using data-driven decision-making to improve lending efficiency. Our work together with MBSI will strive to create transparency and generate insights to improve the bankability of EV finance, generating confidence in the sector,” Arora added. Read More:
Opinion: How to deal with challenges to adoption of E-CVs in India New Delhi: The (E-CVs) market in India is expected to grow in the coming years. According to a report by Research and Markets, the market is projected to grow at a Compound Annual Growth Rate ( ) of 22.57% during 2020-2025. This growth is primarily driven by the increasing government support, rising environmental concerns, and the need for cost-effective transportation solutions. Source: Niti Aayog-RMI Report, RedSeer, MoEVing, BCG and others The key players in the Indian E-CV market include Tata Motors, Mahindra Electric, Ashok Leyland, JBM Auto, Piaggio, Kinetic, and others. These companies are investing heavily in research and development. In terms of L5 logistics 3W vehicles, Mahindra and Piaggio had a clear lead in 2022-23. PMI, Olectra, and Switch Mobility have also made notable breakthroughs in the electric bus segment. Ola is leading the way in 2W sales, closely followed by Hero, Okinawa, and Ampere, while TVS and Ather are contending for the third spot. It is still early for commercial 4W delivery, with the launch of the first TATA Ace EV in January 2023. in India The adoption of electric vehicles in India is still in its early stages, with E-CVs yet to receive a significant share of incentives under the revised FAME II policy. While there has been growth in the EV market, it is important to note that the numbers are relatively modest. In 2020, approximately 1.19 lakh EVs were sold, which increased to 3.11 lakh in 2021 and 4.19 lakh in 2022. However, compared to the staggering number of 6.3 crore non-electric vehicles, the sales of EVs in the country over the past four years amounted to only 10 lakh units. This highlights the need for further efforts to accelerate the adoption of electric vehicles and increase their market share in India. Opportunity tailwinds via green transition Many fleet owners and freight movers in India have made commitments to transition towards greener operations in a phased manner. Amazon has pledged to incorporate 10,000 electric three-wheelers and four-wheelers into its fleet by 2025. Similarly, companies like Flipkart, BigBasket, and Ecom Express have set their goals for adopting electric vehicles. As the Indian government aims to achieve a 30% overall share of electric vehicle sales by 2030, with a particular emphasis on accelerated adoption of E-CVs, it is expected that further support will be provided for light, medium, and heavy in the near future. This indicates a growing momentum towards sustainable transportation solutions and underscores the potential for a significant shift towards electric vehicles in the commercial sector. However, there are several technological, ecosystem, financing, and business model challenges that Original Equipment Manufacturers (OEMs) and operators must address to transform this vision into a reality. Challenges to E-CV adoption and mitigation strategies A. High cost of EVs compared to conventional vehicles:
Manufacturers (OEMs) and operators must address to transform this vision into a reality. Challenges to E-CV adoption and mitigation strategies A. High cost of EVs compared to conventional vehicles: The elevated price of electric vehicles (EVs) is primarily attributed to the expensive battery technology and the heavyweight legacy chassis structures, which require a higher kilowatt-hour (kWh) per kilometer of range than the optimal level. Additionally, for commercial electric vehicles (ECVs), the upfront purchase cost and the total cost of ownership are currently considerably high, surpassing 180 USD per kilowatt-hour for battery packs. With advancements in indigenization and the scaling of battery cells, along with continuous developments in high-density chemistries and vehicle light weighting techniques, it is anticipated that the upfront cost of electric commercial vehicles (ECVs) will decrease in the next 2-5 years. These advancements will result in higher range capabilities and improved cost efficiency, making ECVs more affordable and attractive to potential buyers. Volume-weighted average lithium-ion battery pack and cell price split, 2013-2022 The BloombergNEF denotes an exponential price decline curve until 2021, before supply-chain snags increased the average battery prices in 2022. On scale, large Chinese and US manufacturers are expected to breach the $100component/battery manufacturing and EVSE in 2021 Financier’s doubling down, but more commits needed: Axis Bank and the United Kingdom’s Private Infrastructure Development Group (PIDG) announced a capital financing guarantee of INR 1,500 crores (US$200 million) towards manufacturing, distribution, and servicing of EVs, batteries, components, and charging infrastructure. Policy Push needed: Including EVs in the Reserve Bank of India’s priority sector lending (PSL) guidelines can complement the $US300 million facility and encourage the financial sector to mobilise necessary capital. D. Lack of awareness and education: There is a lack of awareness and education among fleet operators and freight movers about electric commercial vehicles. While everyone agrees that the upfront cost of purchase must reduce and electricity is cheaper than CNG, most customers are still not familiar with TCO calculations and how EVs are extremely beneficial in the long run. While the need for sustainability propels the EV adoption in western countries, the price vs cost debate must be overcome to do the same in India. Case Studies of E-CVs in India Several electric commercial vehicles have been introduced in India, showcasing the potential of this market. Here are some notable examples: 1.Eicher Pro 2080 electric bus: This electric bus can travel up to 120 km on a single charge and has a seating capacity of 35 passengers. It is equipped with regenerative braking and can be fully charged in 4 hours. 2.Mahindra Treo Zor electric three-wheeler: This electric three-wheeler has a payload capacity of 550 kg and can
It is equipped with regenerative braking and can be fully charged in 4 hours. 2.Mahindra Treo Zor electric three-wheeler: This electric three-wheeler has a payload capacity of 550 kg and can travel up to 125 km on a single charge. It also comes with a fast-charging option that can charge the vehicle in just 2 hours. 3.Tata Ultra T.7 electric truck: This electric truck has a payload capacity of 7 tonnes and can travel up to 120 km on a single charge. It is equipped with a fast-charging option that can charge the vehicle in 2 hours. 4.Ola Electric scooter: This electric scooter has a range of 75 km on a single charge and can be charged up to 50% in just 18 minutes. It also comes with a portable charger for on-the-go charging. 5.Altigreen 3 Wheelers – Cargo: These vehicles have Exponent energy’s proprietary charging solution which completely charges the battery in 15 minutes giving it full range. This helps to reduce the range anxiety, increases charger utilisation, and also reduces the energy costs by providing zero downtime for the users. The outlook The future outlook for the ECV market in India is promising, with a projected double-digit compound annual growth rate (CAGR) over the next decade. Government policies and advancements in technology will fuel this growth. It is estimated that by 2030, electric vehicles (EVs) could represent up to 30% of total vehicle sales in the country. To fully realize this potential, several key recommendations can be made. Firstly, the government should continue to provide incentives and enact supportive policies to encourage EV adoption. This includes further expanding the charging infrastructure network, reducing taxes and duties on EVs, and offering financial incentives specifically targeted towards fleet operators. Secondly, there needs to be a concerted effort in developing and implementing innovative business models for EV charging and battery swapping. Additionally, continuous investment in technological advancements is crucial. This includes research and development in lightweighting techniques, battery technology improvements, vehicle-to-grid (V2G) technology, and autonomous driving technology. These advancements will enhance the range, efficiency, and overall performance of EVs while providing ancillary benefits such as energy storage capabilities and improved safety features. Finally, it is crucial to launch comprehensive education and awareness campaigns to promote the adoption of electric vehicles (EVs) among both customers and fleet operators. These campaigns should highlight EVs’ numerous benefits, including lower operating costs, reduced emissions, and improved sustainability. By raising awareness about the advantages and dispelling misconceptions surrounding EVs, a positive perception can be built, encouraging more individuals and businesses to consider ECVs as a viable transportation solution. Going forward, India's large population and rapidly growing economy provide a strong foundation for
encouraging more individuals and businesses to consider ECVs as a viable transportation solution. Going forward, India's large population and rapidly growing economy provide a strong foundation for ECV adoption. With the implementation of appropriate policies and strategic investments, India can leverage its strengths in technology and manufacturing to contribute to a more sustainable and greener future. By capitalizing on these opportunities, India can establish itself as a frontrunner in the global ECV market and make substantial progress toward achieving its environmental goals. (Disclaimer: Randheer Singh is the Director at Government’s think-tank body Niti Aayog; and Gagan Agrawal is the Founder of Planet Electric Inc. Views are personal)
Next-gen Volvo VNR Electric production to begin in Q2, 2022 New Delhi: has announced that production of the enhanced model will begin in Q2, 2022. It features up to 85% increased range for supply chain flexibility, faster charging, and even more configurations for heavy-duty transport. The next-generation Volvo is now open for order, the company said. The commercial vehicle manufacturer continues to lead in the deployment of sustainable Class 8 zero-tailpipe emission vehicles for the North American trucking industry. According to a company release, it first began taking customer orders for its first Volvo VNR Electric model in December 2020, with commercial production starting in quarter two of 2021 at the company's New River Valley manufacturing plant in Dublin, Virginia. Peter Voorhoeve, president, Volvo Trucks North America, said, “It is a testament to Volvo Trucks' leadership that in a continuously evolving industry we are bringing the enhanced version of our VNR Electric to the market a year after sales of the VNR Electric first started." "Volvo Trucks is at the forefront in the industry, always innovating and improving while upholding the highest standards in design, construction and safety. Our team is proud of its role, together with dealers and customers, in accelerating the shift to electromobility and a more sustainable future," he added. According to the company, the enhanced Volvo VNR Electric has improved battery life in terms of technology, design, management, and package offerings. Improvements in battery design have resulted in an up to 40% increase in storage capacity for each battery. A dedicated Battery Thermal Management System (BTMS) was added to manage and maintain ideal environmental temperatures. Volvo Trucks has also introduced a new six-battery package option. Combining all three boasts increased energy storage of up to 565kWh and offers an operational range of up to 275 miles. The enhanced Volvo VNR Electric also reduces the required charging time, as the state-of-the-art 250kW charging capability provides an 80% charge in 90 minutes for the six-battery package and 60 minutes for the four-battery version, the company added. Andy Brown, product marketing manager, Electromobility, Volvo Trucks, said, "Volvo Trucks is continuing to expand the capabilities of the VNR Electric to make it more efficient, satisfy our customer demands for expanded range, and provide a better driving experience. The electric driveline featuring a two-speed I-Shift transmission provides best-in-class, powerful, and smooth acceleration. Innovations such as Volvo Active Driver Assist and Dynamic Steering make driving effortless and precise, while at the same time improving safety." The commercial vehicle manufacturer is focused on supporting customers in their electromobility transition by expanding its network of Volvo Trucks Certified Electric Vehicle (EV) Dealerships that consult with fleets who are considering making the investment in the
in their electromobility transition by expanding its network of Volvo Trucks Certified Electric Vehicle (EV) Dealerships that consult with fleets who are considering making the investment in the Volvo VNR Electric, it said. Volvo Financial Services offers complete financing and insurance solutions for the Volvo VNR Electric and charging infrastructure, the company said. Moreover, the OEM introduced the Volvo Gold Contract in conjunction with the initial launch of the Volvo VNR Electric to provide peace of mind for new electric truck owners incorporating maintenance, towing, uptime services, and full coverage of major components. Also Read:
Few midsize cars excel in updated side crash test: IIHS New Delhi: Only three of seven midsize cars tested earn good or acceptable ratings in the ’s updated , announced today. The is the only midsize car to earn a good rating. With somewhat higher levels of occupant compartment intrusion, the Hyundai Sonata and manage acceptable ratings. Overall, this initial group of midsize cars did not perform as well as the first batches of small and midsize SUVs evaluated earlier. One reason could be their lower ride height. "With vehicles that sit lower to the ground, the striking barrier hits higher on the door panel,” said , President, IIHS. “That potentially puts sedans and wagons at a disadvantage in this evaluation but reflects what happens in a real-world crash when these vehicles are struck by a higher-riding pickup or SUV.” The head-protecting airbags for the driver and rear passenger performed well in the Outback, Sonata and Jetta, contributing to a low risk of head and neck injuries for occupants in both seating positions. However, injury measures were somewhat elevated for the driver’s pelvis and rear passenger’s torso in the Jetta and the rear passenger’s pelvis in the Sonata. The Honda Accord earns a marginal rating, and the Chevrolet Malibu, and Toyota Camry earn poor ratings, IIHS said. There was a moderate intrusion of the B-pillar into the occupant compartment of the Accord. Injury measures for the driver’s pelvis were somewhat elevated, and the driver’s head moved down past the side curtain airbag to contact the windowsill during the crash. The Altima and Malibu showed substantial intrusion into the occupant compartment, but the safety cage of the Camry held up well. Injury measures indicated a high risk of torso and pelvis injuries for the driver in the Altima, a moderate risk of torso and pelvis injuries for the driver and high risk of pelvis injuries for the rear passenger in the Camry, and a high risk of head or neck injuries for the driver in the Malibu. In all three vehicles, the heads of either the driver or rear passenger dummy or both slipped below the side curtain airbag to contact the windowsill. IIHS developed the updated side crash test after research showed that many of the real-world side impacts that still account for nearly a quarter of passenger vehicle occupant fatalities are more severe than the original evaluation. The updated side crash test uses a heavier barrier traveling at a higher speed to simulate the striking vehicle. The new barrier weighs 4,200 pounds — close to the weight of today’s midsize SUVs — and strikes the test vehicle at 37 mph, compared with a 3,300-pound barrier traveling at 31 mph in the original evaluation. All seven of these vehicles earn good ratings in the original side test. Also Read:
PLI scheme to create jobs, employers expect hiring hike in next 2 years, says TeamLease report New Delhi: A recent report, which analyzes the impact of (PLI) scheme on job creation across sectors, projects that 60% of employers expect hiring to increase due to PLI over the next two years. The highest positive hiring sentiment is in the pharmaceutical industry (68%), followed by white goods industry (67%) and textile products (62%). The boost from the PLI scheme is also estimated to impact the MSME ecosystem and bring more women to the workforce. According to the report on ‘PLI Impact on Job Creation’ by TeamLease, a leading composite staffing firm, from an organization size perspective, small and medium-sized organizations (70% each) lead from the forefront, followed by large organizations (22%). The overall intent to hire across small and medium sized organizations is highest in Indore (86%), Chennai (73%) and Pune and Gurgaon (65% each). The report further finds employers from cities such as Indore, Pune and Ahmedabad anticipate a 20%+ incremental growth in employment in the next two years. Sumit Sarabhai, Business Head - Emerging Vertical, TeamLease Services, said, “The PLI scheme is a revolutionary one. It will not only boost and growth across industries but is also expected to lead a significant surge in employment opportunities. Over 60% of employers in India Inc. are planning to hire more due to the PLI scheme over the next couple of years. Another major aspect that PLI will address is diversity of the workforce. PLI is expected to bring more women to the forefront. According to our report, while cities like Gurgaon and Indore (71% each), Kolkata (69%), Delhi (67%) and Nagpur (67%) still prefer hiring male candidates; cities like Chandigarh (31%), and Chennai (30%) are more inclined towards female employees, especially across industries like textiles, pharmaceuticals, and large-scale electronics manufacturing. Interestingly, the pharmaceutical industry is also inclined towards hiring from the LGBTQ community. However, a few industries such as Textile Products (37%), Pharmaceuticals (36%), and Large Scale Electronics Manufacturing (30%) believe that there will be a preference for hiring female employees as a part of the PLI scheme.” “ Even for the , which contributed to about 30% of our GDP, the PLI scheme is a positive foot forward as it will boost in MSMEs especially in Textile Products, Specialty Steel and Automobile and Auto Components industries,” he added. In terms of the job profiles, the large scale electronics manufacturing industry (70%) employers hiring blue collar workers and (60%) employers hiring for temporary staffing is foreseeing up to 10% net incremental growth. On the other hand, both the large-scale electronics manufacturing (60%) industry and the textile industry (66%) are foreseeing up to 10% net incremental growth for female workers. Besides hiring, employers also anticipate that PLI-related benefits will boost
(60%) industry and the textile industry (66%) are foreseeing up to 10% net incremental growth for female workers. Besides hiring, employers also anticipate that PLI-related benefits will boost employee productivity and contribute to business growth. The is created on the basis of the employer’s reaction toward job creation based on the incentives mentioned by the government in the PLI scheme and their projection towards hiring in the next two years. It has surveyed 344 mid to senior-level, general managers / talent acquisition managers across 14 cities and 08 industries in India. The survey is specially tailored to highlight both moderate and significant changes in terms of hiring as a result of the PLI scheme, an initiative taken by the government in India aimed at boosting domestic manufacturing and increasing employment opportunities.
EV batteries remain major challenge for insurers: Thatcham Research A lack of data on electric vehicle (EV) batteries continues to challenge insurers who are forced to scrap EVs after mild accidents, potentially undermining EV adoption, Thatcham Research said on Wednesday. The British automotive risk intelligence company cited a "concerning lack of affordable or available and post-accident diagnostics" in a report entitled "Impact of BEV Adoption on the Repair and Insurance Sectors" the Government's innovation agency Innovate UK funded to examine differences between EVs and . Insurers have complained that many EVs have no way to repair or assess even slightly damaged battery packs after accidents, forcing them to write off cars with low mileage - leading to higher premiums and undercutting gains from going electric. Batteries can make up half of an EV's cost and Thatcham found a replacement battery can cost more than the used price of the vehicle after only one year, making replacing them uneconomical. Adrian Watson, Thatcham's head of engineering research, said in an ideal world insurers could make informed decisions about whether to repair EVs or write it off based on access to data on its state of health after an accident. "The reality is that's not the situation we're in at the moment," he told Reuters. "The diagnostics we have do not enable you to really know what the status of the battery is." Only around 1.65% of cars on Britain's roads are electric, but Thatcham said EV-related insurance claims are already 25.5% more expensive than for fossil-fuel equivalents and take 14% longer to repair. Due to their potential fire risk, damaged EVs awaiting repair must be stored outside at least 15 metres (49 ft) from other objects. An outside facility for 100 fossil-fuel cars today would have space to safely quarantine just two EVs, Thatcham said.
Years later, key challenges still haunt Musk's Tesla in India , who has been trying to launch Tesla in India for the past couple of years, is still haunted by the "key challenges" at the governments end that have grounded his electric cars from running on domestic roads. Despite the government luring him with various schemes and promises and repeated "come and manufacture/assemble your cars here" calls from the top ministers, Musk is "still working through a lot of challenges with the government". What are those key challenges that have stopped Tesla from taking concrete steps to finally roll out the most-coveted electric car for its fans in India? According to industry experts, the main challenge for Tesla to enter the Indian market is import duty. With a $39,990 global price tag, may remain as an affordable model in the US but with import duties, it would become unaffordable in the Indian market with an expected price tag of around Rs 60 lakhs. Currently, India levies 100 per cent tax on the imported cars of price more than $40,000 (Rs 30 lakhs) inclusive of insurance and shipping expenses, and cars less than $40,000 are subject to 60 per cent import tax. The government may consider lowering import duty along with offering other sops to Tesla but for that, the EV major would have to invest in setting up a manufacturing facility in the country. "This has been ongoing for the last few years. Tesla wants to sell completely finished products in India where the Indian government wants to bring complete knocked down (CKD) products initially and start assembling in India," Soumen Mandal, research analyst, IoT, Automotive and Devices Ecosystem at Counterpoint Research, told IANS. Tesla wants to test the Indian market by importing cars before making any commitments for manufacturing. "The Indian market is very price-sensitive and we think Tesla will find difficulty in getting much market share," Mandal added. In 2015, Prime Minister Narendra Modi visited the Tesla headquarters at Palo Alto, California and met Musk who gave Modi a tour of the company's electric car plant. Since then, Musk has been tweeting about key challenges he faces in India. He has always blamed the Indian government's policies for giving up on his India dreams and also criticised the FDI norms for the delay in the electric car maker's entry into the Indian market. "Would love to be in India. Some challenging government regulations, unfortunately," Musk had tweeted. In the current scenario, the Indian government is encouraging the Indian automotive industry through a performance-linked incentive (PLI) scheme and Tata Motors, Mahindra & Mahindra, Ola Electric, Hyundai Motor and MG Motor have already started supporting domestic manufacturing. Another premium car brand, Mercedes-Benz is planning to launch India assembled flagship electric sedan, 'EQS' this year. "The hesitation of Tesla in launching locally-manufactured cars may affect it in getting early mover advantage and
is planning to launch India assembled flagship electric sedan, 'EQS' this year. "The hesitation of Tesla in launching locally-manufactured cars may affect it in getting early mover advantage and Mercedes-Benz may get the benefit of this situation," Mandal emphasised. Tesla in 2021 was busy testing Model 3 at several locations in the country. In November, Union Minister for Road Transport and Highways, Nitin Gadkari, informed that a Tesla car would cost about Rs 35 lakh in India, indicating that both Tesla and the government have a mutual interest in it. Tesla has already set up a corporate office in Mumbai, secured an office in Bengaluru and is looking for key executives to start operations in the country. Moreover, India is trying to reduce imports, especially from China. "Tesla will prefer China for importing cars to India compared to the US for reducing the cost of cars. This may be another reason the Indian government isn't relieving import duties to Tesla," Mandal told IANS. According to Prabhu Ram, Head-Industry Intelligence Group, CMR, from the near short-term perspective, Tesla may not see feasibility to channelise investments for making in India, or making direct imports. "However, from a long-term perspective, with India's e-mobility rapidly maturing, India may turn out to be a good growth bet for Tesla," Ram told IANS. Also Read:
Green hydrogen sounds like a win for developing countries. But cost and transport are problems Hydrogen is used mainly to make chemicals such as fertiliser, and in oil refineries. Most hydrogen in the world today is made from - methods associated with large carbon dioxide emissions. Developed countries are therefore looking to " " instead - produced using renewable electricity such as solar and wind power. Energy experts explain green hydrogen's potential benefits and challenges. Global hydrogen demand reached 94 million tons in 2021, and contained energy equal to about 2.5 per cent of global final energy consumption. Only about 0.1 per cent of current global hydrogen production is green, but big expansions are planned. New applications for green hydrogen are also envisaged. Liebreich's classification is a useful indicator of the potential markets for green hydrogen. Since the objective of using green hydrogen is really to reduce carbon dioxide, the applications to target first should be those that will yield the largest reductions in emissions. Liebreich's ladder shows which they are. The applications in the (green) top row are an efficient use of valuable green hydrogen. But green hydrogen currently costs much more to make than less clean types of hydrogen. Using it to produce the 180 million tons per annum of ammonia required globally for fertiliser production would have a severe knock-on effect on food prices. So it is difficult to see how this transition is going to occur. Green hydrogen is made from water. Using renewable ("green") electricity, equipment called separates the hydrogen from oxygen in water (H₂O). The process is called electrolysis. Green hydrogen production emits no carbon dioxide, but the construction of renewable electricity infrastructure currently uses fossil fuels, which do emit carbon dioxide. Hydrogen has traditionally been made from non-renewable energy sources like coal ("black hydrogen") and natural gas ("grey hydrogen"). When these methods are combined with carbon capture and storage, the hydrogen produced is known as "blue hydrogen". Although the costs of renewable power generation have been coming down, the cost of electrolysis is still not commercially competitive. Today, green hydrogen has an estimated energy equivalent cost of between USD 250 and USD 400 per barrel of oil at the factory gate, according to the . Future cost reductions are forecast but these are uncertain. Current oil prices are around USD 100 a barrel - much less than it would cost to use green hydrogen instead of conventional petroleum products. The costs of transporting hydrogen must be taken into account too. Unfortunately, the physics of hydrogen is against low-cost hydrogen transport. It is much more challenging than oil-based liquid fuels, liquefied petroleum gas or liquefied natural gas. Ocean transport of hydrogen has to be at very low temperatures (-253 C). Petrol or diesel doesn't need costly refrigeration: it is transported at
liquefied petroleum gas or liquefied natural gas. Ocean transport of hydrogen has to be at very low temperatures (-253 C). Petrol or diesel doesn't need costly refrigeration: it is transported at ambient air temperature. And hydrogen carries only 25 per cent of the energy that a litre of petrol does, making it much more expensive to transport and store the same amount of energy. Alternative ways to transport hydrogen have been investigated. Because ammonia (NH₃) is much easier and cheaper to transport than hydrogen, the International Renewable Energy Agency has recommended "storing" hydrogen in ammonia for shipping. But that requires additional equipment to put the hydrogen into ammonia and strip it out at its destination. These processes add costs of about USD2.50-USD4.20/kg (equivalent to USD123-USD207 per barrel of oil) according to the agency. Hydrogen is more difficult to handle than conventional fossil fuels. It is a colourless, odourless and tasteless gas, unlike conventional hydrocarbons. This makes leak detection more difficult and increases the risk of fire or explosion. Hydrogen fires are invisible to the human eye. Historically, hydrogen has been controlled within factory perimeters and managed by trained people. The widespread introduction of hydrogen into society will require new measures and skills, including insurance, materials handling, firefighting and disaster management. Construction of the first gigawatt scale green hydrogen project in Saudi Arabia has already started. Many of the pioneering projects will be built in the southern hemisphere, mostly in developing countries. This is because they are less densely populated and have better renewable energy resources (solar and wind) for generating the necessary electricity. Although this may sound positive for developing countries, there are big risks in developing hydrogen mega projects. For one thing, the "iron law" of megaprojects states: "Over budget, over time, under benefits, over and over again". Project owners bear the project execution risk. Risks also include exchange rate risk, remote locations, pioneering technology, and a lack of skills. Prospective host countries will have to balance these risks against the temptations of improved investment, employment and balance of payments. They would be wise to extract guarantees from their customer countries so as to avoid the injustice of the global south subsidising the global north as it transitions to cleaner energy. now has a "Hydrogen Roadmap" after many years of government funding. There is talk by the energy company Sasol and vehicle manufacturer Toyota of a "Hydrogen Valley", a geographical corridor of concentrated hydrogen manufacture and application industries. And the South African government and Sasol are talking of establishing a new port on the west coast at Boegoebaai for the manufacture and export of green hydrogen. In , Hive Hydrogen is planning a USD 4.6 billion green ammonia plant. Namibia also has big
of establishing a new port on the west coast at Boegoebaai for the manufacture and export of green hydrogen. In , Hive Hydrogen is planning a USD 4.6 billion green ammonia plant. Namibia also has big plans for a USD 10 billion green hydrogen project. The key to reducing green hydrogen costs in the future lies mainly in technological improvements and cost reductions related to mass manufacture and a scale-up in electrolysis. And to a lesser extent, incremental cost reductions in transport and handling. Read More:
How to get the export logistics process right? A multitude of aspects come into play during the process, including shipping lines, ports at origin and destination, loading services, container stations, freight forwarders, customs brokers and insurance agencies. Steps to follow So, what are the steps that should be taken to ensure that this process is done in an efficient manner and in a way that can utilise costs as well as time better? Sylvestor D’mello, Director-Operations, , says optimising the logistics process is very crucial to ensure a profitable and smooth journey. He lists planning, effective people management and selecting the best transport mode as those that need to be deliberated upon carefully for good results. “Advanced planning helps deliver the product on time and save considerable revenue by avoiding last-minute surge charges. Besides this, since export is a labour-intensive job both on the dock and while shipping, it is crucial to effectively deal with the on-ground workforce. Then there is the mode of , which is a vital part in optimising export logistics as it would directly impact profitability and costing,” he says. In addition to this, aspects like proper storage to preserve the quality of goods and checking their perishability well in time will hold exporters in good stead. Another relevant resource in logistics in the present day and age is digitisation. D’mello adds that the shipping and logistics industry needs to digitise to be more resource-efficient and customer-friendly. “Tech-backed digital freight forwarders have understood this need and provide end-to-end digitised services to cater to all requirements — from planning to real-time tracking of the shipment. Another critical feature that digitisation can help with is using artificial intelligence and machine learning to garner insightful and predictive data for better pricing and delay-risk analysis,” he says. Documentation needed Beyond the key steps that need to be kept in mind, getting the right set of documentation at the various phases of the process is necessary to make things seamless. Bhaskar Priyadarshi, Logistics Expert, Cogoport, breaks it down into arranging documents during the pre-booking, booking, post-booking and discharge stages. “Documents are necessary in international trade and shipping. A trade transaction involves having to deal with piles of paperwork.” The pre-booking stage, Priyadarshi says, would include a packing list or an itemised list of the shipment’s contents, commercial invoice, certificate of origin of the goods. The booking stage would require a booking note, essentially a contract for reservation of carrier space and dangerous goods declaration if required; documents in post-booking such as gate pass, marine insurance, let export order (LEO) and bill of lading, among others. At the discharge stage, there is the bill of entry, delivery order, certificate of analysis and fumigation certificate to confirm that the wooden packaging
(LEO) and bill of lading, among others. At the discharge stage, there is the bill of entry, delivery order, certificate of analysis and fumigation certificate to confirm that the wooden packaging material is free of pests. Choosing the mode of transportation Next comes knowing the various modes of transportation and what will work best for the consignment to keep costs and time manageable. Ocean freight shipping accounts for almost 90% of international trade by volume. Large volumes of goods are packed into containers and transported in ships via this mode. Modes of ocean freight shipping comprise either less than container load (LCL) shipping or full container load (FCL) shipping. In contrast to shipping by sea, air freight shipping makes up less than 1% of the global trade volume. When it comes to rail, it acts as a big volume mode and is the most cost-effective and environment-friendly option. The other form of road transport — trucks and trailers — is another cargo transport solution, moving volumes on big and small routes. However, the high risk of accidents, weather disruptions and traffic snarls can act as a drawback for this mode. Another arm of inland transportation after trucks and trains is barges — long, flat bottomed cargo boats — to move cargo in bulk. Cogoport’s Priyadarshi says the international shipping process often requires a combination of two or more modes of transportation between the origin and destination. “This is called multimodal or intermodal shipping. If, for example, you are sending a shipment overseas. The cargo might cover the main leg of its journey by a ship or a plane, but it will need truck transportation for the journey from your factory to the portterminal of destination to the buyer’s warehouse,” he says. Export logistic tracking Another vital step in the logistic process is accurate shipment tracking for smooth transport and to ensure proper delivery. Freightwalla’s D’mello says that going beyond the basic and conventional tracking system offered by freight forwarders could help exporters stay more updated. “The conventional one usually offers two-level tracking at dispatch and arrival of the shipment with ETA (expected time of arrival). But new digital freight forwarders are changing the tracking system with technology by providing real-time information of the shipment and intelligent insights to avoid any delay or mishap,” he adds. Following the export logistics process by taking note of such crucial aspects can help exporters gain a competitive edge as far as completion of orders is concerned. On the other hand, logistics management, if not done in the optimal way, will add to logistics cost and lead to bad service. Also Read:
Government expects positive response to electric vehicle policy from multiple companies The government stated on Saturday that India anticipates a positive response from numerous regarding its (EV) policy, which was unveiled in March with the aim of attracting global players such as Tesla. Rajesh Kumar Singh, the Secretary in the Department for Promotion of Industry and Internal Trade ( ), mentioned that in the policy, the government has implemented tariff adjustments without incurring any expenses to encourage manufacturers to establish a presence in India. "Everybody talks about one company (US-based EV major Tesla), but we are expecting responses from many companies to that policy," Singh said here at CII's annual business summit. On March 15, the government approved an electric-vehicle policy. Under this policy, duty concessions will be provided to companies that establish manufacturing units in the country with a minimum investment of USD 500 million. This initiative is designed to attract major global players such as Tesla. According to the policy, a company will have a three-year period to establish manufacturing facilities in India, commence commercial production of e-vehicles, and achieve 50% domestic value addition (DVA) within a maximum of five years. The companies setting up manufacturing facilities for electric vehicle passenger cars can import a limited number of cars with a reduced customs duty of 15% on vehicles priced at USD 35,000 and above for a period of five years from the government's approval letter issuance. Currently, cars that are imported as completely built units (CBUs) are subject to customs duty ranging from 70 to 100%. The duty amount depends on the engine size and the cost, insurance, and freight (CIF) value, whether it is less than or above USD 40,000. The policy aims to encourage India to become a hub for manufacturing electric vehicles and to attract investments from well-known global electric vehicle manufacturers. As per the scheme, the company will have the permission to bring in completely built units of e-4W that they have manufactured, at a discounted customs duty rate of 15%, with certain conditions to be met. Singh also mentioned that they have secured investment commitments in India in the tire sector from two major multinational companies. "Two major multinationals came to us with certain products that were on a restrictive (import) list and they wanted that (those goods) to be allowed for imports. We informed them that we would permit imports, but with the condition that these product lines must be manufactured in India. After they made those commitments, we granted the relaxations,' he further mentioned. India has implemented compulsory quality control standards for specific types of tires in the country, in addition to including some in the licensing list to promote domestic manufacturing. Citing the example of EVs and tyres, he said, "there are other ways to ensure that the kind of goals that we
in addition to including some in the licensing list to promote domestic manufacturing. Citing the example of EVs and tyres, he said, "there are other ways to ensure that the kind of goals that we have under the PLI (production linked incentive) scheme for investments can be met even by prudent use of tariff-and non-tariff policies'. The secretary mentioned the free trade agreement between India and the four-nation European bloc EFTA (European Free Trade Association), which was signed in March. This agreement is unique as it includes investment commitments. "Those commitments are going to be monitored and there is a provision even to claw back the market access if those commitments are not met," he said. On March 10, India and EFTA signed a free trade agreement (FTA). As part of the agreement, New Delhi received an investment commitment of USD 100 billion over 15 years from the grouping. The agreement also allows for lower or zero duties on several products including Swiss watches, chocolates, and cut and polished diamonds. The members of EFTA include Iceland, Liechtenstein, Norway, and Switzerland. He added that several FTA negotiations are under way and "my own anticipation is that you (industry) will see India becoming a little less conservative when it comes to these FTAs'. He recommended that the industry should get ready for a future with reduced tariff and customs duties. In a trade agreement, two or more trading partners either greatly reduce or remove customs duty on the highest number of goods traded between them. Developing countries such as India have slightly higher customs duties on sectors such as agriculture, alcoholic beverages, and automobiles. "Of course while doing so, you (domestic industry) have every right to expect that any distortionary and any inversion in our tax regime should be corrected," he said adding there are many commodities where both on the GST (Goods and Services Tax) side and on the customs duty side, there are inverted duty structures. The inverted duty structure impacts the competitiveness and export abilities of Indian industries. This structure involves taxing inputs at higher rates compared to finished products, leading to the accumulation of credits and cascading costs. DPIIT is doing a cross-sectoral study to ensure that "both in the GST Council and through the finance ministry, we try to rationalise and ensure that those inversions are removed to improve the competitiveness of our manufacturing sector," Singh said.
Banks seek govt help to check chip shortage have sought the government's intervention to address the shortage of semiconductor chips that has hit card issuance. They have also suggested an investigation by the (CCI) into the practices of chip suppliers. Banks collectively through the Indian Banks' Association (IBA) reached out to the government over the issue last month, people familiar with the development said. The banking industry has been reeling under shortage for some time in the wake of Covid-19 shutdowns in China, slowing card issuance. Banks are finding it difficult to provide cards to the new Pradhan Mantri Jan Dhan Yojana (PMJDY) account holders, which is delaying the insurance coverage of beneficiaries, a bank executive said. Supply shortages have pushed up prices of chips globally, triggering price increases by local vendors. A government official said that due to ongoing global uncertainties, the card shortage is expected to remain for some time. "We are aware of the challenges being faced by the industry and some long-term solutions, including promoting local manufacturing, will be looked at," he added. Bank executives say local vendors had raised prices despite existing supply contracts and were colluding with each other to keep prices inflated. "Local vendors are pushing to increase the prices despite existing supply contracts," the official said justifying the demand for a CCI review into possible cartelisation. About 319.7 million RuPay cards have been issued till August 24 this year. In the first four months of this fiscal around 3.5 million cards were issued. Beneficiaries under PMJDY accounts have increased from 430.4 million to 463 million in the last year.
Automobile sector growth to level off in fiscal 2024 Growth across the automobile sector segments will level off next fiscal as the base effect of last fiscal wanes. But it will still be in line with, or above, India’s real projected GDP growth for next fiscal. Commercial vehicle sales are expected to drive past pre-pandemic levels next fiscal along with passenger vehicles, which did so this fiscal, and tractors, which recorded an all-time high in pandemic-impacted fiscal 2021. Two-wheelers will continue to lag as the hike in their total cost of ownership (TCO) has been much sharper than for passenger vehicles. Between fiscals 2018 and 2023, TCO rose 36% for two wheelers compared with 26% for passenger vehicles. Improving income sentiments, a low base of the past three fiscals and an improvement in supply chains should continue to support the automobile sector’s recovery in this fiscal. While tractors will continue to build on best ever numbers recorded in fiscal 2021 post a blimp in fiscal 2022, passenger vehicle (PV) sales in fiscal 2023 are expected to surpass pre-pandemic level highs of fiscal 2019. However, sales of two wheelers and commercial vehicles (CV) could continue to lag pre-pandemic levels. Earlier, the sector saw three fiscals of muted/negative growth due to a general economic slowdown, depressed demand due to a drop in mobility and subdued income sentiments of buyers following the pandemic. Further, vehicle prices rose steeply due to the transition to BSVI emission norms, while vehicle ownership costs rose owing to a sharp rise in fuel bills amid elevated crude oil prices, a rise in total cost of acquisition due to input cost inflation-led price hikes, higher insurance rates, and compulsory purchase of three-year third-party insurance cover. Moreover, shortage of supplies, supply chain disruptions, semiconductor shortages amid pandemic-led lockdowns affected vehicle production. Hence, the recovery in fiscal 2022 was optical on the low base of fiscal 2020 and 2021. The passenger vehicle sector was the hardest hit in fiscal 2022 due to semiconductor shortages on account of rising semiconductor intensity per vehicle. Research expects domestic volumes to rise 27-29% on-year to ~3.9 million vehicles, surpassing the pre-pandemic high of 3.4 million vehicles. The volumes would be supported by strong pent-up demand, a healthy order book across original equipment manufacturers (OEMs), improving model availability, new model launches and the loan-to-value (LTV) inching towards near 100% of on-road financing. Improving vehicle supply owing to an increase in availability of semiconductors and a large orderbook due to much awaited multiple model launches by OEMs should lead to a projected sales increase of 7-9% to 4.1-4.3 million units in fiscal 2024 with increasing interest rates restricting further growth. CV domestic sales volumes are expected to rise 31-33% on a low base of fiscal 2022, driven by materialisation of deferred replacement
2024 with increasing interest rates restricting further growth. CV domestic sales volumes are expected to rise 31-33% on a low base of fiscal 2022, driven by materialisation of deferred replacement demand, an improvement in transporter profitability attributable to improved freight load supported by healthy economic growth, an improving manufacturing industry in India, healthy demand from the infrastructure segment and a healthy offtake of buses with reopening of educational institutes and offices. In fiscal 2024, we expect overall CV domestic sales volumes to breach the pre-pandemic peak of fiscal 2019 and grow 9-11% on a strong base of fiscal 2023 driven by improving fleet utilisation and transporter profitability levels, higher replacement demand and expectations of robust economic growth. Improving urban sentiments, increased public mobility with reopening of educational institutions and offices and positive rural sentiments backed by a regular monsoon and increased minimum support prices (MSPs) across crops, coupled with improved model availability and demand for electric vehicles (EVs), are expected to drive two-wheeler sales to 21-23% in fiscal 2023. Sales in fiscal 2024 are likely to be driven by expectations of a normal monsoon, coupled with improved model availability and demand for EVs. Tractor sales are estimated to rise 7-9% on-year amid positive farmer sentiments in fiscal 2023 aided by higher wheat exports, healthy reservoir levels due to above normal monsoon, good moisture content and higher MSP announcements. Assuming a normal monsoon season, tractor demand is expected to rise 5-7% on-year in fiscal 2024 driven by healthy demand from commercial and construction activities and higher replacement demand. Despite an expected decline in the fiscal, farmer profitability will still be higher than the last five-year average, further boosting demand. Two wheelers and three wheelers account for over 80% of vehicle sales in India and domestic EV penetration is expected to be led by two-wheeler and three-wheeler segments. The favourable total cost of ownership (TCO), vehicle uptake from the delivery segment, and continued national and state-level subsidies are likely to boost sales. In passenger vehicles, TCO for EVs is not favourable compared with internal combustion engine (ICE) vehicles. Further, faster adoption and manufacturing of electric vehicles (FAME) subsidy support is available only for commercial PVs, making EVs less viable for the personal segment which accounts for over 85% of sales. Automotive OEMs – The overall credit outlook of OEMs is expected to remain stable on the back of strong balance sheets and healthy operating cash flows led by a strong demand recovery in CV and PV segments in fiscal 2023. Also, regular price hikes helped mitigate the pressure of volatile input prices and moderated the impact on operating profitability of OEMs. Domestic demand is expected to moderate for CVs and PVs in fiscal 2024 and yet remain
mitigate the pressure of volatile input prices and moderated the impact on operating profitability of OEMs. Domestic demand is expected to moderate for CVs and PVs in fiscal 2024 and yet remain steady. This, coupled with improved profitability due to moderation in commodity prices and prudent funding of capex, will ensure a ‘stable’ credit outlook for OEMs. Anuj Sethi is Senior Director, CRISIL Ratings Ltd and Pushan Sharma is Director-Research, CRISIL Market Intelligence and Analytics.
India received USD 339.55 billion FDI in last 5 years New Delhi: India has received ( ) inflows worth USD 339.55 billion in the last five years, Union Minister of State for Commerce and Industry said on Wednesday. There has been a continuous increase in the inflow of FDI in recent years. It increased from USD 45.15 billion in 2014-15 to USD 81.97 billion in 2020-21. During the year 2019-20, the FDI inflows to India stood at USD 74.39 billion. In 2018-19, it stood at USD 62 billion. In 2017-18, it was USD 60.97 billion and in 2016-17, the FDI inflow to India stood at USD 60.22 billion. To promote FDI, the Government has put in place an investor-friendly policy, wherein most sectors are open for 100 per cent FDI under the automatic route, Parkash said in a written reply to a question in the Lok Sabha. "Further, the policy on FDI is reviewed on an ongoing basis, to ensure that India remains attractive & investor friendly destination. Changes are made in the policy after having consultations with stakeholders including apex industry chambers, associations, representatives of industries/groups and other organizations," he said. The government has recently undertaken a number of reforms across sectors. In the last one year alone, reforms in the FDI policy have been undertaken in sectors such as insurance, defence, petroleum and natural gas, and telecom. The Minister noted that Foreign Direct Investment inflows serve to augment domestic investments, promote industrial development and employment generation across sectors and ancillary industries. "Further, such investments bring international best practices and latest technologies which facilitate in skill development, export promotion and improvement of overall competitiveness of economy leading to overall economic growth and development in the country," he added. Also Read:
Swan song for General Electric as it completes demerger New York: The US conglomerate , co-founded more than 130 years ago by , is opening a new chapter in its history on Tuesday: its break-up into three independent entities which will then concentrate on their disparate core businesses. The group announced its "spin-off" project in November 2021, which was to be carried out in several stages. An initial split took place in January 2023 with the creation of GE HealthCare, bringing together all the health care activities. The official finalization of the separation comes Tuesday, with General Electric disappearing in favor of , dealing with energy activities, and GE Aerospace, the new name of the late GE. They will be listed in New York, one on Nasdaq and two on the NYSE. There will be no holding company, and the three firms will publish their results independently of one another. "As independently run companies, the businesses will be better positioned to deliver long-term growth and create value for customers, investors and employees," General Electric explained in 2021 when it announced the demerger. Among the "many reasons" for the spin-offs were a desire to simplify the company by getting rid of non-core activities and improving performance by withdrawing from low-growth or low-profitability sectors, of told AFP. "Within this there is usually always a value play that either bolsters the share price or creates more value for investors and owners," he said. "Managing multiple divisions across disparate areas is harder for a board of directors," he continued, adding: "It is also harder in terms of communicating vision and strategy to investors." - Capital allocation - The conglomerate 3M -- which manufactures scotch tape and post-it notes, among other things -- has also taken the route of General Electric's demerger: In July 2022, it announced the separation of its health-related activities. The new company, named Solventum, began trading on the NYSE on Monday. "This is an important day for 3M and Solventum," 3M chief executive said in a statement. "Both companies are positioned to pursue their respective growth and tailored capital allocation plans," he added. Like GE, which distributed all the shares in GE to the conglomerate's shareholders, 3M distributed all the shares in the new company to its shareholders. Both firms gave one share in the "child company" for every four shares held in the "parent company." However, the parent company can still retain a stake, usually with the intention of monetizing it at a later date. This is what General Electric did with GE HealthCare, in which it retained a 19.9 percent stake. However, its spinoff GE Aerospace now holds just 6.7 percent of the company, according to a spokeswoman for the group. "It won't be GE Aerospace's intent to hold this in perpetuity," she told AFP. According to , an ancillary business that has become independent can develop further by doing business with companies that are
be GE Aerospace's intent to hold this in perpetuity," she told AFP. According to , an ancillary business that has become independent can develop further by doing business with companies that are competitors of its former "parent company." Other big names on Wall Street have also chosen in recent years to spin off certain activities. For example, the giant Johnson & Johnson has retained its business-to-business activities and created the listed Kenvue for its consumer products. And in June 2021, the breakfast behemoth Kellogg announced its intention to split into three companies, but in the end opted for just two: WK Kellogg for cereals, and Kellanova for snacks, which came into being in October 2023. "Kellogg's is a good case in point with the company splitting off its low-growth cereals business from the very fast-growing snacks business," said Saunders from GlobalData. "But it's not without its disadvantages." These include the loss of economies of scale resulting from the sharing of certain structural functions like accounting and human resources, or a size effect, as is the case in health insurance. According to CNBC, some thirty-six spin-offs are planned worldwide by 2024. On March 19, British hygiene and food giant announced its intention to spin off its ice cream businesses - including Ben & Jerry's and Magnum - following disappointing sales in 2023. "A demerger of Ice Cream is the most likely separation route," the company said at the time, adding it was seeking above all to "maximize returns for shareholders." In Unilever's case, the aim is simplification, Neil Saunders said, because ice cream operates on "a very different operating model" from Unilever's other products.
Tesla Cybertruck's stiff structure, sharp design raise safety concerns -experts The angular design of 's has safety experts concerned the electric pickup truck's stiff stainless-steel exoskeleton could hurt pedestrians and cyclists and damage other vehicles on roads. Reuters spoke to six safety professors and officials who viewed videos of crash tests conducted by Tesla on its first new vehicle in nearly four years and shown during a webcast delivery event last week. Crash test videos that Tesla live-streamed at a Nov. 30 event were heavily discussed on social media. Experts who spoke to Reuters said they needed crash-test data to reach firm conclusions about the safety. "The big problem there is if they really make the skin of the vehicle very stiff by using thick stainless steel, then when people hit their heads on it, it's going to cause more damage to them," said Adrian Lund, the former president of the Insurance Institute for Highway Safety (IIHS), whose vehicle crash tests are an industry standard. Tesla touted the structures of the truck that absorb impact during the crash. Tesla CEO said in a social media post on Tuesday that he was "highly confident" Cybertruck will be safer than other trucks for occupants and pedestrians. Tesla, whose shares were slightly up at USD 243.64 in Friday afternoon trading, did not immediately respond to requests for comment on concerns raised by safety experts. The vehicle designed with flat planes and long, linear edges is visually distinct. It is the first car with a stainless-steel exterior since the launch of the DeLorean car which was featured in the 1985 movie " ." The material has even broken the stamping machine that forms the panels, Musk said, touting the vehicle's toughness. During the launch event at the factory in Austin, Texas, Tesla said cold-rolled, stainless body panels are designed to absorb impact during a crash. The front and rear structures have energy-absorbing ribs that help dissipate energy, and during a side impact the skin of the door carried a majority of the crash load, it said. George Washington University auto safety professor Samer Hamdar raised concerns about limited "crumple zones," but added that other features might make up for that. Crumple zones are parts of the car that deform in a crash in a way to more safely absorb the energy of an impact. "There might be a possibility of shock-absorbent mechanism that will limit the fact that you have a limited crumple zone," Hamdar said. Starting at USD 60,990, Cybertruck will not be a high-volume vehicle like Tesla's Model Y, but Musk has said Tesla was likely to reach a production rate of roughly 250,000 Cybertrucks a year in 2025. 'RED FLAGS' IN A CRASH Much of the concern was focused on those outside the Cybertruck. "If you have an argument with another car, you will win," Musk said. David Friedman, the former acting head of the National Highway Traffic Safety Administration, described the effect for the loser of the crash: "If
argument with another car, you will win," Musk said. David Friedman, the former acting head of the National Highway Traffic Safety Administration, described the effect for the loser of the crash: "If you're in a crash with another vehicle that has a crumple zone and your car is more stiff, then their cars are going to crush and yours is resistant," he said. Julia Griswold, director of the University of California, Berkeley's Safe Transportation Research and Education Center, said she was "alarmed" by the crash test videos Tesla posted. She said the heavy weight of the trucks and their high acceleration "raise red flags for non-occupants." Tesla has not said whether it will sell Cybertrucks in Europe, but its chief engineer this month told motoring publication TopGear that EU safety rules aimed at protecting pedestrians by limiting external protrusions could make it tough to sell there. "We hope Tesla don't bring this vehicle to Europe. A vehicle of this size, power and huge weight will be lethal to pedestrians and cyclists in a collision," the Brussels-based nonprofit European Transport Safety Council said in a statement. U.S. regulators rely on vehicle makers to self-test and certify their adherence to safety standards. Musk said in a recent interview with auto consultant Sandy Munro that the Cybertruck had passed regulatory review. The first dozen or so trucks were released to buyers last week.
When should you sell your car, how to ensure that it fetches you a good price Selling a car is often a subjective choice, with some wanting to dispose it of within two years, while others want to retain it for 20 years if it’s still in working condition. If, however, you are keen on getting a good resale value for your car before you buy a new one, what should you do? When should you sell it and how should you ensure that it fetches you a good price? When should you sell? When maintenance costs are low: “The best time to sell a car is after 4-5 years, or within 1,00,000 km of running, as it starts to give problems and requires maintenance after that,” says Vikramjeet Bakshi, CEO, Pineview Technology Private Ltd, one of the four government authorised vehicle scrapping dealers in Delhi/NCR. “Besides, most people have taken loans and extended warranties for around five years, making it the best time to sell it after this,” he adds An easy way to decide if it is the right time to sell is to find out the current value of your car and the immediate or expected repairs and maintenance in the next six months or a year. If the costs add up to more than the car’s value, it doesn’t make much sense to retain it. When resale value is high: Importantly, the car depreciates in value by around 50% after 4-5 years, and if you want to get a good resale price, you should sell it before it slides down further. Most people do not want to buy a car that has done more than 50,000-60,000 km or is older than 4-5 years as it will incur a higher maintenance cost. When usage drops significantly: In the post-Covid work scenario, where many organisations have decided to implement the work-from-home policy permanently, you could be better off selling the car at a good price rather than letting it idle or retaining it for minimal usage, and have it depreciate in value. Similarly, if you have shifted to another city or state where your car usage is negligible, you could be better off selling it. When affordability falls: If your salary is unable to keep up with the rising prices of petrol or diesel, as has happened in the past few months in the country, it would be a good idea to dispose of your car and get a more fuel-efficient option such as the CNG or an electric one. You can get various subsidies and tax benefits on buying an electric car. State governments offer a range of cash subsidies on purchase of electric cars which include exemption from road tax and registration fee, as well as lower public charging fare. These exemptions are besides the 5% lower GST on electric cars and tax deduction of Rs 1.5 lakh on interest under Section 80EEB, if you decide to take a loan for buying an electric car. When should you scrap it? If you have retained your car for as long as its legally permissible working age in your state, you will have two options. You can either sell it in another state where the expiry date is longer, or scrap it as you will not be allowed to use it beyond this
permissible working age in your state, you will have two options. You can either sell it in another state where the expiry date is longer, or scrap it as you will not be allowed to use it beyond this period. For instance, if you are in Delhi, you will not be allowed to drive a petrol car for more than 15 years, but in states like Andhra Pradesh, you can run it for longer if it is in good working condition and if you can obtain a certificate of fitness for your vehicle from the . To avoid the hassle of selling a car in another state, you can have it scrapped. “You can also get a 5% discount on purchase of a new car if you provide the scrapping certificate from an authorised scrapper,” says Bakshi. This is besides the 25% rebate on road tax and registration fee waiver on buying a new car, if you scrap your old car. Best way to sell While you can sell your car directly to dealers or manufacturers, even through mechanics or social media, the best option these days is online car selling companies, which have a huge network of dealers. They carry out the valuation, inspection, legwork as well as paperwork for you and ease the process of selling. It is, however, a good idea to compare several websites before agreeing to a price. You should also ensure that your car is clean, serviced, well-maintained with all the service records and other documents in place before starting the sales process. Transfer insurance & benefits: After selling the car, you will need to inform the RTO about the transfer so that you are no longer liable for any misuse or illegal activities involving the car. You should also inform the insurer, especially if you are passing on the insurance. If not, inform them about the cancellation of the policy. Also Read:
Motor insurance claims higher for EVs due to parts Insurance claims from damage to electric vehicles two-wheelers are turning out to be up to 20% higher in value than conventional vehicles, while they are 50% higher for four-wheelers. Also, the frequency of claims is higher in electric vehicles compared to internal combustion engines. The higher value of claims is because of the need to replace an entire assembly rather than repair it due to the non-availability of child parts. Also, there is a higher usage of plastic and fibre to keep the vehicle weight low which increases the damage. “The frequency of claims largely because many first-time users are not familiar with the high acceleration which leads to minor accidents,” said T A , Chief , ( ). According to Ramalingam, the share of EV has quadrupled from less than one per cent of total vehicles insured before the pandemic to around 4% now. In both two-wheelers and four-wheelers, 98% of claims are due to loss claims caused due to accidents. However, fire loss, improper charging leading to fire, damages to charging unit, and flood losses were other common causes for claims as well. Ramalingam said that insurers are in talks with top EV manufacturers to introduce child parts and reduce the cost of replacements. They are also speaking to the manufacturers to educate customers on the proper use of the vehicle to bring down the damages. is in talks with its foreign parent Allianz group companies to get the experience from underwriting EVs in Hong Kong and China. This will help the company to come out will new innovations including a cover for the battery and a cover for cyber risks faced by EVs. If insurers are not able to control the claim costs in EVs the premium of these vehicles might need to be revised up wards. Insurance claims for electric vehicles are high because of costly spares.
Reliance General Insurance and Ola Electric join to enhance 2W customer experience New Delhi: In a pioneering move set to redefine customer satisfaction, , one of India's leading private general insurance companies, has announced the tie-up of its Extended Warranty Product with . This strategic alliance aims to transform the total ownership of customers and provide them peace of mind while fortifying the company's position as an industry frontrunner. This collaboration leverages the expertise of Reliance General Insurance and the reputable standing of Ola Electric, as a leader in the electric mobility category. The Extended Warranty Product addresses customer concerns around battery life and performance. The battery cover offers to protect the battery life beyond the 3 years of the manufacturer warranty till the fourth and fifth year and provides performance coverage for up to 60,000 km. The comprehensive cover offers coverage for EV components like motor, controller, charger, and battery. With this joint commitment to excellence shared by both companies, customers can now enjoy an extended and worry-free ownership experience. , Chief Distribution Officer, Reliance General Insurance, said "With the combined strengths of Reliance General Insurance and Ola Electric, this collaboration is set to expand the depth of insurance penetration within the large audience base of two-wheeler EV enthusiasts. The product offers an umbrella protection to meet the diverse needs of Ola electric vehicle owners. This product not only acts as a safeguarding pillar for OLA’s customers but also provides them with expert assistance in a quick time.” , Chief Business Officer, Ola Electric, said - "“Our partnership with Reliance General Insurance is a testament to our commitment to delivering exceptional value to our customers. Our unwavering dedication to provide the best ownership experience nationwide remains steadfast. We firmly believe that this collaboration will act as a catalyst for prospective EV buyers, driving the rapid adoption of EVs."
Massachusetts takes Uber, Lyft to trial over status of gig workers and are set to face trial on Monday in a ' attorney general alleging the ride-share companies misclassified their drivers as independent contractors rather than more costly employees. The non-jury trial in Boston comes amid broader legal and political battles in the Democratic-led state and elsewhere nationally over the status of drivers for app-based companies whose rise has fueled the U.S. gig worker economy. Attorney General Andrea Joy Campbell is asking a judge to conclude that drivers for and Lyft are employees under state law and therefore entitled to benefits such as a minimum wage, overtime and earned sick time. Her office claims the companies for years misclassified thousands of Massachusetts drivers and cannot meet a three-part test under the state's worker-friendly laws that would allow them to be deemed independent contractors. Studies have shown that using contractors can cost companies as much as 30% less than using employees. Uber and Lyft argue that they properly classified the drivers, saying they are not transportation companies that employ drivers but technology companies whose apps facilitate connections between drivers and potential riders. The companies warn that, should Suffolk County Superior Court Judge Peter Krupp rule against them, they would be unable to maintain their flexible business model in the state and may be forced to cut or cease operations in Massachusetts. Rohit Singla, a lawyer for Lyft, during a Thursday pre-trial hearing said his client's "current business cannot support drivers as employees, is not set up for that and wouldn't work that way." The case is going to trial a week after Massachusetts' highest court heard arguments over whether to allow an industry-backed ballot measure to go before voters in November that defines the drivers as contractors but entitles them to some new benefits. The court appeared open to allowing some version of that proposal to go on the ballot along with a rival, labor-backed ballot measure that seeks to allow the drivers to unionize. The lawsuit going to trial was filed in 2020 by Campbell's predecessor, Maura Healey, now the state's Democratic governor. Should the state prevail, it has said the companies could face large penalties for not properly classifying their drivers. By not classifying their Massachusetts drivers as employees, Uber and Lyft avoided paying USD 266.4 million into workers' compensation, unemployment insurance and paid family medical leave over 10 years, according to a report by the state auditor.
Drive Safe, Pay Less: Ushering in a new era of Motor Insurance As a driver who rarely uses your car, or as a driver who drives safely, do you feel that you are paying too much for your premium? Regulatory and Development Authority of India ( ), in a circular dated 5th July 2022, has permitted Motor to offer (UBI) add-on covers to Indian customers, as part of their basic motor insurance policies. The philosophy behind UBI is that a customer should pay premiums based on the risk they pose and not based on generic historical patterns, thereby offering them fair and transparent pricing. UBI can be of two types – (PAYD) or (PHYD). Pay As You Drive (PAYD) essentially means the customer pays insurance premium only for the number of kilometers they drive. The premium is calculated by multiplying the number of kilometers driven by a vehicle in a month by its per kilometer rate (which in turn is linked to the vehicle’s Insured Declared Value (IDV)). PAYD helps customers to save on premiums if their vehicle usage is low - for example, hybrid or work-from-home employees, or for second cars in the family. With Pay How You Drive (PHYD), insurance premiums are linked to the driving behavior in the form of a Driving Score (or Safety Score). This is built on several parameters of driving behavior, such as - speeding, pace of acceleration, intensity of braking, smoothness of turns, length of a drive (which can be linked to driver fatigue). PHYD rewards safer driving through cheaper premiums. This may even compel risky drivers to change their driving behaviour, or else pay higher insurance premium proportionate to their risk. PHYD can contribute, in particular, to improving the road behaviour of the commercial vehicle segment, where high vehicle usage, employment of poorly trained drivers who are also made to work very long hours, is rampant. Technology solutions like telematics are the foundation on which UBI solutions and policies are built. Telematics solutions can be either hardware based on mobile phone based. Hardware devices plug into the On Board Diagnostics (OBD) 2 port of the vehicle and gather data on vehicle usage and driver behaviour and share that information with the insurer. Mobile based solutions use the motion sensors of the phones to capture driving behaviour. For PAYD policies, mobile based solutions can also be used to take a picture of the vehicle’s odometer thereby measuring monthly mileage. Modern connected cars already capture these data points, which can be accessed by insurers via connected car data platforms. These connected cars do not require any additional installation of hardware devices. The key challenge with installing a hardware device is that it requires an upfront investment. This could be a prohibitive barrier in India where average annual premium is low. Mobile-based solutions do not need this investment, but have a marginally lower accuracy and some data loss as compared to the hardware based solutions. Apart from making
annual premium is low. Mobile-based solutions do not need this investment, but have a marginally lower accuracy and some data loss as compared to the hardware based solutions. Apart from making motor insurance fair and transparent, UBI will benefit both customers and insurers. Telematics solutions can be used not only to track the number of kilometres driven and driver behaviour, but can also coach drivers and help them improve their driving habits through detailed feedback, alerts, and rewards for safe behaviour. UBI enables insurers to not just reduce risk, but also improve customer experience and build a long-term relationship with them. It provides them with a platform to innovate and redefine insurance as a preventive safety and customer focused service. That being said, UBI is not a magic bullet. The cost of the hardware device is not the only challenge it faces. Motor insurance premium rates in India are much lower than global ones, which means that there may be limited financial benefit for car owners in opting for PAYD or PHYD products. Installing a hardware device or downloading an app for insurance is a new concept, and could be another barrier. Some customers might also be put-off by concerns regarding data privacy. To overcome these challenges, and turn UBI into a massive opportunity, insurers need to see this as an inflection point - a way for them to re-invent themselves as customer-centric, digital-first service providers and focus on creating meaningful value for customers in the form of improved safety, better customer experience, and financial benefits. They will need to believe in the long-term benefits of safer drivers and improved customer retention and commit to this path. Globally, both PAYD and PHYD have seen encouraging early success. In the US, Progressive Insurance, which offers only PHYD policies, has grown to become the country’s third largest insurer. However, UBI is still in its early days worldwide and makes for less than 5% of policies sold globally. But it is expected to grow steadily and become mainstream. IRDAI has set the ball rolling and it now lies firmly in their court of insurers and technology providers. ( Pallav Singh is the CEO of Kruzr and Prerak Sethi is the Founder of RIA Insurance and Co-Founder of the India InsurTech Association. The views expressed are solely of the author.)
G7 to hold off revising Russian oil price cap this week Group of Seven Nations are not likely to revise a on this week, two officials and one official from a coalition member told Reuters on Monday. The was due in mid-March to revise the price cap put in place in December, but the officials said EU countries' ambassadors were told by the over the weekend there is no appetite among the G7 for an imminent review. Some EU countries including Poland have sought to lower the G7 price cap level to further restrict the revenue Moscow can use to fund its war in Ukraine. The cap on Russian seaborne crude exports was set at USD 60 per barrel, a level designed to sit below the market price and therefore curb the revenue Moscow can receive from selling oil, while keeping it flowing to avoid a global supply shock. "We have always reserved the right to support future changes to the price cap levels to meet our dual goals, should market and economic conditions warrant," an official from a coalition member country said on condition of anonymity. Brent was trading at around USD 73 per barrel on Monday. The G7 stance shared with EU countries was first reported by Bloomberg News on Monday. The G7 measure bans companies from providing transportation, insurance and financing services for Russian crude oil and oil products if they are sold at a price above the cap. In addition, the 27-country European Union halted its own imports of Russian crude oil delivered by sea from Dec. 5. The United States and Britain have also imposed restrictions on Russian oil imports. Russia's revenues from oil and gas exports dropped by nearly 40% in January as a result of price caps and , the said last month.
Comprehensive car insurance vs third-party car insurance: Which is better? vs : Which is Better? is a crucial aspect of , offering protection against financial losses that may arise from accidents, theft, or other unforeseen events. When choosing the right car insurance, motorists often face a choice between comprehensive car insurance and third-party car insurance. Each type of insurance serves a distinct purpose and provides specific advantages. This article explores the key differences between comprehensive and third-party car insurance, helping you determine which option is best suited to your needs. Understanding Comprehensive Car Insurance Comprehensive car insurance is a broad and all-encompassing policy that offers extensive coverage for a wide range of risks. This type of insurance is designed to cover not only damages caused to third parties but also any damage to your own vehicle, regardless of who is at fault. The coverage typically includes: Comprehensive insurance is often considered the most robust form of coverage, offering peace of mind to drivers by covering a wide array of potential risks. Understanding Third-Party Car Insurance Third-party car insurance, on the other hand, is the most basic form of car insurance that is legally required for all vehicles on the road. It is designed to cover damages or injuries caused to third parties in the event of an accident where you are at fault. The coverage typically includes: Third-party car insurance does not cover any damage to your own vehicle or injuries to yourself. Its primary purpose is to provide financial protection against claims made by other people, which makes it a more affordable option for drivers who are less concerned about protecting their own vehicles. Key Differences Between Comprehensive and Third-Party Insurance The most significant difference between comprehensive and third-party car insurance lies in the scope of coverage. While comprehensive insurance offers extensive protection for both your vehicle and others, third-party insurance only covers damages to third parties. When Comprehensive Insurance Is the Better Option Comprehensive car insurance is often the preferred choice for drivers who seek extensive protection for their vehicles. It is particularly beneficial in the following situations: When Third-Party Insurance Might Be Sufficient Third-party insurance may be a suitable option for drivers who are primarily concerned with meeting the legal requirements for car insurance and are looking to save on premiums. It may be sufficient in the following scenarios: The Apps In today’s digital age, have become an essential tool for drivers. These apps provide a convenient way to manage your policy, file claims, and access roadside assistance. Whether you choose comprehensive or third-party insurance, using car insurance apps can streamline the process of managing your coverage. These apps often feature real-time updates, easy payment options, and even tools to
or third-party insurance, using car insurance apps can streamline the process of managing your coverage. These apps often feature real-time updates, easy payment options, and even tools to compare different insurance policies, making it easier to find the best option for your needs. Conclusion: Which Is Better? The choice between comprehensive and third-party car insurance ultimately depends on your individual circumstances, including the value of your vehicle, your budget, and your risk tolerance. Comprehensive insurance offers broader protection and peace of mind, making it ideal for those who want to safeguard their investment in their vehicle. On the other hand, third-party insurance is a more economical option for drivers who are primarily concerned with fulfilling legal requirements and protecting themselves from liability. Regardless of the type of insurance you choose, it is essential to consider the specific risks you face as a driver and select a policy that offers the right balance of coverage and cost. With the help of , managing and customising your policy has never been easier, allowing you to make an informed decision that best suits your needs.
All you Need to Know about Zero Depreciation Add-on Cover on Motor Insurance Ever since the made it mandatory for car owners to have a policy, Insurers have provided a diverse range of that protect the insured from the financial jolt that follows in cases of accidental repairs. Zero-depreciation is one such cover that offers comprehensive coverage. With the rise in road accidents and increased sales of luxury or sports cars, choosing an insurance policy that offers comprehensive coverage is recommended. in car insurance ensures complete coverage, negating the impact of depreciation. Depreciation is the devaluation in the value of an asset due to natural wear and tear, usage and obsolescence. Apart from the engine and the moving parts, other parts of a vehicle are also prone to depreciation - such as plastic and metal. Based on the car's age, the accumulation of depreciation ranges from 5% during 0 to six months to 50% for vehicles above 10 years of age. When an accident occurs, insurers pay for replacement of parts impacted due to the accident after deducting the depreciation. In such cases, the insured needs to pay for the difference between the value of the new part and the depreciated value. However, if one has a zero-depreciation add-on cover, which can be availed at a nominal premium, the insured can receive the entire amount of damaged parts without considering the amount of depreciation. "Car insurance is not an expense but an investment. Higher the investment, the greater the rewards that one can benefit from. At Raheja QBE GI, customer satisfaction has always been our priority and we believe in delivering a superior customer experience. Zero depreciation is one such add-on cover which ensures complete coverage, negating the impact of depreciation hence, choosing such cover is highly recommended," adds Mr. Pankaj Arora, MD and CEO, Raheja QBE General Insurance. An extensive Zero depreciation add-on cover offers many benefits, some of which are enhanced coverage, reduced expenses for the insured and peace of mind. These factors liberate the insured from worrying about costly repairs while enjoying the ownership of their car. Zero depreciation add-on cover can be added to your existing car insurance policy and can also be chosen when buying a new insurance policy.
China's Lithium dominance faces Indian challenge: Mass-scale Li-metal from recycled materials India's , a company in the sustainable energy and battery materials space, has become the first company outside of China and one of only five globally to successfully produce in its pure metallic form at a large scale. The company said that it has achieved this feat following two years of Research & Development. It is worth noting that there have been other companies that have been in the Li-ion battery recycling powder space in India but Lohum will be the first company outside China to produce pure Lithium metal after recycling batteries. Speaking to TOI Auto, Rajat Verma, Founder & CEO, informed about the company’s expansion plans. “In India, we plan to add our fourth facility within the Delhi NCR region, where the other three facilities are located. With the fourth facility in place, the company plans to have a combined capacity of recycling 20,000 tonnes of batteries each year.” The company plans to expand its R&D and recycling capacities with the fifth plant. The new facility will allow the company to increase the headcount in R&D to 200 from the current 60. “Today, our customers and partners are all across the globe in the US, EU, Middle East, and Africa, and we are expanding our partnerships in each of these geographies.” he added. Speaking about the sources that the company is getting batteries from, Verma said “We currently get source batteries from OEMs, Dealers, Fleet Players, and Insurance Companies” While there’s still time for the recycled Lithium metal to be used in EVs, the company has adopted Chakiya village near Lucknow - to provide power through second-life batteries of MG Motors. These are charged by solar energy and are capable of providing electricity for about 4-6 hours. It is interesting to note that the technology has implications for small-sized Lithium-air batteries, which could power an electric vehicle for approximately 1,000 kms on a single charge, thus eliminating any sort of range anxiety, which is currently posing a roadblock in the adoption of EVs. The company said that its efficiency to recycle and refine Lithium metal from battery waste, ores, slag, and production scrap is set to effectively break China's monopoly on battery materials and cell technology. Pure Lithium metal finds applications in a wide array of industries, including electric vehicle batteries, consumer electronics, aerospace, advanced metallurgy, medical devices, and industrial compounds.
Allies aim for risky Russian oil price cap as winter nears WASHINGTON: US officials celebrated in early September when top allies agreed to back an audacious, never-before-tried plan to clamp down on Vladimir Putin's access to cash as he wages war on Ukraine. The idea sounded simple enough: The countries would pay only cut-rate prices for Russian oil. That would deprive Putin of money to keep prosecuting his war in Ukraine, but also ensure that oil continued to flow out of Russia and helped to keep global prices low. A month later, the Group of Seven, representing some of the world's leading economies, is still figuring out how to execute the plan - a far more complex task than it might seem at first blush - and the Dec. 5 deadline to marshal participants is fast approaching. In the meantime, the war grinds on. The Kremlin is mobilizing 300,000 more troops to join the invasion of Ukraine and Putin has annexed four Ukrainian regions after Kremlin-orchestrated referendums that the West denounced as shams. And while the US and European countries have levied thousands of financial and diplomatic sanctions on Russia, including recently announced penalties, Treasury leaders say a price cap on oil could deliver the most effective blow to Russia's , undermining its greatest revenue source. Pushed by Treasury Secretary Janet Yellen, the price cap plan is testing the bounds of statecraft and capitalism. Yellen made her reputation as a Federal Reserve chair who helped steer the US into the longest expansion in its history. Now she's trying to use global energy markets as a vise to stop a war and keep oil prices from rushing upward this winter. Yellen and her team at Treasury have been lobbying their counterparts on the price cap since at least May. The US has already blocked , which were small to begin with. "This is an entirely new way to use financial measures against a global bully," Elizabeth Rosenberg, Treasury's head of Terrorist Financing and Financial Crimes, said at a recent congressional hearing. "A price cap coalition requires unprecedented coordination with international partners, as well as close partnership with global maritime industries, and exceptional resolve in the face of hostile Russian bluster and threats, including the risk that Russia may seek to retaliate," Rosenberg said. The risks of this new form of economic warfare are immense to the global oil supply. If it fails or Russia retaliates by stopping the export of oil, then worldwide could skyrocket. US consumers could feel the ramifications in another spike in gasoline prices. "I don't have a crystal ball. I don't know exactly what Russia will do here. There are a lot of different options," Ben Harris, Treasury's assistant secretary for economic policy, said during a recent Brookings Institution presentation. He added: "The price cap provides an opportunity for a bit of a release valve and the hope that these Russian barrels will find the market, but at a reduced price." The Dec. 5
presentation. He added: "The price cap provides an opportunity for a bit of a release valve and the hope that these Russian barrels will find the market, but at a reduced price." The Dec. 5 deadline for setting the price for discounted oil comes just before a year-end wider European embargo on seaborne Russian crude oil and a complete ban on shipping insurance designed to prevent Russian oil from reaching non-European buyers. The embargo and insurance ban could eliminate up to 4 million barrels a day from the world's daily supply of petroleum, a loss of roughly 4 per cent. Treasury's hope is that the price cap kicks in first and allows some of that oil to keep flowing via exceptions to the embargo and the insurance ban, albeit at prices lower than market rates. While Treasury officials and leading economists express confidence that the plan will work - and already is working - some oil analysts are wary of trying to implement it before winter, in a global economy already scarred by supply shocks, and a Europe facing fast-rising inflation. The unknowns are too many, they say. "The wildcard factor to me is what the Russians do, because the Russians have made abundantly clear that they do not want to play along with price caps," said Helima Croft, global head of commodity strategy at . "We should prepare ourselves at least," she said, "that they may withhold oil." Ed Morse, head of commodities research at Citi Group, said at the Brookings Institution recently: "It's an experiment that's never been done in world history. I think it is a poor judgment call to do this at this time." Oil is the Kremlin's main pillar of financial revenue and has kept the Russian economy afloat so far in the war despite export bans, sanctions and the freezing of central bank assets that began with the February invasion. Before the war, Russia exported roughly 5 million barrels of oil per day as one of the world's biggest oil exporters. That figure - accounting for roughly 9 per cent of the - has largely been unchanged despite all the sanctions. Russia has vowed to take retaliatory measures to offset the impact of the price cap. Last week, Kommersant, a Russian business newspaper, reported that the Kremlin is considering raising $50 billion in additional revenue from taxes on exported energy, in response to the plan. Analysts are hopeful the Russians are bluffing. Deutsche Bank recently assigned a "low probability" to Russia stopping its exports and cut its forecast for the price of crude by 10 per cent. The German bank cited the US Treasury's announcement that India could have flexibility to buy from non-EU providers if it doesn't join the price cap coalition, among other factors. And while it's assumed China and India won't be part of an official coalition on the price cap, lower prices paid to Russia by these nations would help accomplish the coalition's goal, Treasury officials say, getting more oil on the market with less revenue for the Kremlin. Already, Russia is
lower prices paid to Russia by these nations would help accomplish the coalition's goal, Treasury officials say, getting more oil on the market with less revenue for the Kremlin. Already, Russia is locking in long-term contracts to limit the loss of potential oil revenues. Raoul LeBlanc, vice president of energy at Insights, said in some ways the discounts Russia is already providing countries show that a price cap could work. LeBlanc said the complete loss of Russian oil on the global marketplace "would be catastrophic to the world economy" and losses would most heavily affect Latin America and much of South Asia. Many European countries are already seeing major impacts of the war on their economies without a price cap in effect. The Organization for Economic Cooperation and Development last week said the global economy is set to lose $2.8 trillion in output in 2023 because of the war. On other energy matters, European Union energy ministers on Friday levied a tax on fossil fuel companies' windfall profits, but could not agree on a natural gas price cap. Treasury is navigating a host of tricky questions as it works to implement the oil price cap plan. Among them: figuring out the size of the discount the G-7 and others would force on Russian oil, how the price cap would interact with the coming embargo and insurance ban, how companies would conduct their business as they try to avoid sanctions and how to stop Putin from getting around any cap. Ben Cahill, a senior fellow at the Center for Strategic and International Studies, said he believes the price cap is "better than the status quo" - the expected European embargo on oil and ban on maritime insurance. But, Cahill adds, it will create complexities in the market that could drive up the cost of doing business. "It's a big gamble," he said. Read More:
Hiring demand up 9% in May: Report Job demand continued to be on a growth trajectory in May, witnessing a 9% rise year-on-year, mainly supported by telecom, banking, financial services and insurance and import and export sectors, a report said on Tuesday. The job market continued to show growth for the second consecutive month of FY23 with a benchmark year-on-year recovery of 9% in May, according to the Index ( ). However, the index levelled down by 4% month-on-month reflecting cautious recruiter sentiments in May amid worries over high inflation driving up costs due to the current socio-economic scenario globally, it noted. "The beginning of FY23 has shown positive hiring scales given the anticipated 5G roll-out and the recovery of several business segments across the country. So far, the Indian job market is faring well despite the current sentiment on sobered hiring," said , CEO of Monster.com, a company. Recruiters have not scaled down their ambitions to hire talent and there is most definitely unmet demand in the market today, he stated. "In terms of the job outlook, businesses will continue to grow, and we see this demand reflected in segments such as import and export, telecom, travel and hospitality and (Banking, Financial Services and Insurance), which continue to grow on the back of growing digitisation efforts," he added. Industries such as telecom, BFSI and importautomation (up 101%), real estate (up 25%) have seen promising growth patterns. Retail (up 11%) continued to hire with moderate growth this month, added the report. The report revealed that having observed a dip since September 2021, media and entertainment sector continued on a steep slope of decline (19%) indicating a long way towards post-pandemic recovery. Online recruitment activity contracted in engineering, cement, construction, iron and steel (down 9%) although minor improvement was seen last month. Shipping and marine (down 4%) also noted a first annual dip from a year-ago level, it added. The Monster Employment Index is a broad and comprehensive monthly analysis of online job posting activity conducted by . The report further revealed that tier II cities are well on their way to post-pandemic recovery with significant growth numbers, while tier I cities continue to fuel growth. City-specific data indicated that Coimbatore (up 27%) tops the chart once again surpassing growth numbers witnessed by top metro cities in India, tailed by (up 26%), according to the report. Delhi-NCR and Hyderabad marked a 16% annual growth in job opportunities, closely followed by Chennai (up 15%), Pune (up 13%), Ahmedabad (up 15%), Bangalore (up 9%) and Kolkata (up 6%). The BFSI industry particularly saw substantial hiring activity once again across key metro cities with the highest spike in Pune and Delhi-NCR, said the report. Tier II job markets continued to fuel hopeful employment patterns this May 2022 across Baroda, Chandigarh, Jaipur and Kolkata, which reflected growing annual demand
and Delhi-NCR, said the report. Tier II job markets continued to fuel hopeful employment patterns this May 2022 across Baroda, Chandigarh, Jaipur and Kolkata, which reflected growing annual demand in the range of 2 to 12%. Job creation in said locations continues to emerge consistently since the previous month indicating bullish prospects for employment generation, it added.
Tankers newly sanctioned by US supplied Russian oil to India New Delhi: Three oil tankers, newly sanctioned by Washington, regularly shipped Sokol crude from Russia's Far East to Indian Oil Corp, the country's top refiner, in recent months, according to shiptracking data from LSEG, and trade sources. The U.S. on Thursday imposed sanctions on maritime companies and vessels for shipping sold above the Group of Seven's price cap, as Washington seeks to close loopholes in the mechanism designed to punish Moscow for its war in Ukraine. The Liberian-flagged ships hit with sanctions are the Kazan, and NS Century, according to the Treasury Department. All three Aframax-sized tankers discharged Russian Sokol crude in India in September while two of them made the trip in October, the data showed. In the short-term, sanctions may reduce the number of ships carrying Russian oil and prompt India to seek supplies elsewhere, but they are unlikely to stop the trade altogether due to its lucrative nature, several traders who declined to be named, said. As long as there are willing buyers, sellers and shippers will always find a way to make the oil flow, one trader said. One trader also said India may seek supply from the Mediterranean and North Sea to replace Russian Sokol. NS Century is currently on its way to discharge Sokol crude at Vadinar port in Gujarat for Indian Oil Corp ( ) on Nov. 25, LSEG and Kpler data showed. IOC buys Sokol under an annual contract with Russian oil major Rosneft. A spike in global prices led to Russian oil being sold at above the price caps imposed by western nations of $60 a barrel. The three vessels last year obtained safety certification from the Indian Register of Shipping (IRClass), according to its website. Ligovsky Prospect and Kazan, managed by (SCF) Management-FZCO, were certified on Sept. 14, and May 7 last year, according to IRClass website. NS Century, managed by Dubai-based Sun Ship management (D) Ltd was certified on Sept. 15, 2022. Societies such as London-headquartered Lloyd's Register, the American Bureau of Shipping and IRClass provide services, such as seaworthiness checks and certification, which are vital for securing insurance and entry to ports. IOC and IRClass did not immediately respond to requests for comment. Sokol crude is produced at the Sakhalin-1 project, managed by a Rosneft subsidiary after the exit of ExxonMobil. Prior to sanctions and restructuring of the project's ownership, India's ONGC Videsh, the overseas investment arm of state-run Oil and Natural Gas Corp, and Sakhalin Oil and Gas Development Co (SODECO), a consortium of Japanese firms had a stake in the project.
Shriram Group plans to add 2,500 employees for merged entity in 18-24 months Chennai-based , which is in the process of merging its two non-banking financial companies, is planning to hire additional 2,500 people for the proposed entity over the next 18-24 months, a top company official said on Monday. Last year in December, the diversified financial group announced the merger of Shriram Capital Ltd (SCL) and ( ) with ( ). The merged entity, to be known as Ltd, will be the largest retail finance non-banking finance company (NBFC) in the country. SCUF's Managing Director and CEO YS Chakravarti said that currently, the combined employee strength of SCUF and STFC is 51,000. While STFC has branches in Bihar, Rajasthan, North-East, West Bengal and Odisha, SCUF doesn't have much presence in these states, he said. "Once the merger happens, we will recruit people to sell SCUF's products in these states. We will be adding 2,500 people over the next 18-24 months on the sales, credit and collection sides," Chakravarti, who is also the Managing Director and CEO-designate of the proposed entity, said. SCUF offers two-wheeler, commercial vehicle, passenger vehicle, MSME, gold and home loans, whereas STFC has a presence in the commercial vehicle financing business, consumer finance, life and general insurance and stock broking. In the back offices of SCUF and STFC, he said that there will be the rationalisation of some of the employees, who are going to be re-skilled and moved to the back offices of other group entities. Chakravarti said that post-merger, the group plans to divide the business into five different geographical areas, each being led by a joint managing director (JMD). Last week, the group said it received approval for the merger of SCL and SCUF with STFC from the ( ). It is now awaiting approval from the insurance regulator Insurance Regulatory and Development Authority of India (Irdai) and Competition Commission of India (CCI), Chakravarti said. The ( ) has called for the voting of creditors and shareholders of STFC, SCUF and SCL, which is expected to be over by July 7, he added. "From there, we expect the NCLT to come back to us with an approval anywhere between 60-90 days," the official said, adding that the merger process is expected to be over by October this year. The merged entity will have a combined asset under management (AUM) of over Rs 1.5 lakh crore and a distribution network of over 3,500 branches, the group had said in December.
Tesla rolls out new incentives in China as price war escalates Tesla unveiled new incentives, including insurance subsidies, on Friday to woo consumers in the world's largest auto market, where the U.S. electric vehicle giant is in a protracted price war against entrenched rivals such as BYD. Pickups of existing inventories of and Model Y SUVs by the end of March would be entitled to a maximum of 34,600 yuan (USD 4,807.76) worth of incentives, Tesla said in a post on its Weibo account. Among the incentives are a 8,000 yuan discount in car insurance products with partnerships with Tesla, and a 10,000 yuan discount if the buyer chooses a change of paint. Tesla also offers limited-time preferential financing plans that could save up to 16,600 yuan for purchases of Model Y. When asked about the amount of inventory Tesla had in China, a sales representative said it was limited, but declined to provide details. Tesla didn't respond to a request for comment. In the face of slowing demand and rising competition, Tesla slashed prices on some Model 3 and Y cars in China in January and offered cash discounts for some Model Ys from Feb. 1. Its biggest local rival BYD on Friday lowered the starting price of a new version of its Song Pro hybrid SUV by 15.4%. BYD, which dethroned Tesla as the world's top EV maker in Q4, had responded with even bigger discounts on an array of new car versions in February.
Government likely to trim fiscal deficit target as Omicron cases rise: Sources NEW DELHI: The government is aiming for a of 6.3% to 6.5% of gross domestic product (GDP) for the next financial year, a less ambitious target than previously planned as Covid-19 infections threaten the economic recovery, three government officials said. Finance minister Nirmala Sitharaman is due to unveil the 2022-2023 budget on February 1 and officials said the thinking was that sharp cuts in government expenditure could hurt growth prospects. India's case load of coronavirus infections is surging, fuelled by the Omicron variant and the worry is that consumer and business spending will be hit, leaving the government with little choice but to step in. The plan now is to target a 30-50 basis point cut in the fiscal deficit for the next financial year, the officials involved in the discussions said. They declined to be named as they were not authorised to speak to media. Policymakers were hoping to bring down the fiscal deficit by a wider margin, after cutting the deficit by 240 basis points to 6.8% in the current fiscal year ending in March. Some private economists and brokerages said the fiscal deficit could be brought down to around 5% of GDP from 9.4% in 2020-21, after the winding down of pandemic stimulus and surge in revenue receipts. Rising coronavirus cases have forced many states to impose restrictions, raising concerns among policymakers that falling consumer sentiment could affect the pace of the economic recovery and all budget calculations. Asia's third-largest economy could miss the 10% growth target for the current 2021-22 fiscal year as the new Omicron variant is seen disrupting economic activity through January-March and may also dampen sentiment in the next financial year, officials said. And, the economic growth target would not be more than 7% for the next financial year beginning April, two officials said. The finance minister is set to unveil new targets for government spending, tax receipts and economic growth while presenting her third annual budget in parliament. "The (budget) discussions are on," one of the officials said, adding the government aimed to bring down the deficit and increase capital spending while keeping revenue spending flat. A finance ministry spokesman declined to comment for the story. India's economy has been recovering since mobility curbs were lifted in June, but economists fear that new restrictions could drag on growth in the coming months. The economy contracted 7.3% in the last fiscal year. Any signs of economic slowdown and a higher , economists said, could delay the normalisation of the accommodative stance of the Reserve Bank of India's Monetary Policy Committee, which would meet from February 7-9 after the presentation of the budget. "We are likely to miss the divestment (privatisation) target by a wide margin," one of the officials said, adding that sale of companies such as BPCL, banks and insurance companies
of the budget. "We are likely to miss the divestment (privatisation) target by a wide margin," one of the officials said, adding that sale of companies such as BPCL, banks and insurance companies would be postponed to the next financial year. The government has so far raised Rs 9,330 crore ($1.3 billion), a fraction of the Rs 1.75 lakh crore target in receipts from privatisation in the current fiscal year, while higher tax collections have helped narrow the fiscal deficit. Also Read:
Tesla seeks import duty cuts but gives PLI scheme a skip The dream of driving a Made-in-India may continue to elude vehicle buyers for some more time with the American electric car maker - which has pitched for a cut in import duties ahead of a local launch - not applying to avail of incentives under the ₹44,000 crore approved by the government. The schemes are for manufacturing eco-friendly automobiles, auto components and advanced chemistry cells in India. "They (Tesla) have not applied. Tesla can avail of benefits under the PLI schemes for the , for making advanced chemistry cells but the company wants concessional duties without showing any commitment to produce here," a senior government source told ET. The government has lined up incentives of up to 18% to address cost disabilities and encourage auto and parts makers to deepen localisation of the supply chain and indigenously manufacture products with advanced auto technologies. It has already received investment proposals to the tune of ₹45,016 crore from the 20 approved applicants of PLI auto scheme. This includes , , , (M&M), Hero MotoCorp, Bajaj Auto and Ola Electric Technologies. The list of approved candidates from the component sector will be announced next month, separately. The government has also announced a scheme to incentivise advanced chemistry cell manufacturing in the country. Tesla has said that the levies imposed by India on automobiles are the highest among large countries and that it can only consider setting up a factory locally if it succeeds with imported models. CEO Elon Musk, who ended 2021 as the richest person in the world with a personal fortune of $273.5 billion as per Bloomberg Billionaires Index, last month said his company is facing a lot of challenges and working with the government to launch operations in India. The company had registered an Indian arm, Tesla Motors India and Energy, in Bengaluru in January 2021, indicating that it was set to launch vehicles in the country. The source added, "The government wants to enable Tesla to manufacture vehicles in India. But they have to first submit firm business plans." Tesla could not be reached immediately for a comment. India imposes 100% import duty on cars with cost, insurance and freight value of more than $40,000 and 60% on cheaper vehicles. In a letter to the road transport and highways ministry last year, Tesla had sought 40% import duty on fully assembled . Musk had earlier said that the duty structure for cars running on the electric powertrain should not be out of kilter with India's climate-change objectives. Also Read:
China auto market faces slowdown as inventory builds SHANGHAI - Automakers in China delivered a record number of cars to dealers in the first nine months of the year even as retail demand slowed, setting up the market for a slowdown in 2023, a leading Chinese brokerage said on Wednesday. Automakers had delivered 1 million vehicles to dealers in China over the first nine months of this year, a record volume for the world's largest auto market, analysts at (CMBI) said. In September, deliveries to dealers rose by 33%, while retail sales climbed only 9%, meaning that inventories on dealer lots jumped, a trend that could create an overhang that will weigh on sales next year, they said. The China Association of Automobile Manufactures reports overall vehicle sales. CMBI analysts used insurance registration data to track retail sales separate from wholesale deliveries to dealers. The diverging trend in deliveries to dealers and retail sales "makes us very concerned about automakers' wholesale volume in 2023," the CMBI report said. "We expect China's wholesale volume to fall in 2023, with more significant decline for internal-combustion engine (ICE) vehicles than this year." Signs of softening demand in China's market emerge as the economy weakens. China's auto sales growth slowed in September while EV sales rose at their slowest pace in five months. Auto industry officials have forecast a stronger end to the year as consumers rush to buy cars before government subsidies for electric vehicles and a tax cut for small-engine vehicles expire. Still, CMBI analysts warned 2023 would bring more competition to the EV sector, saying that it expected to see sales growth for EVs and hybrids on a combined basis to drop below 50%. "We believe it could be much more difficult to raise retail prices in 2023 vs 2022 to maintain margins," the brokerage said. CMBI said it believed that the consensus forecast for automaker net profit, including that of BYD , Guangzhou Automobile Group and Great Wall Motor was at risk of overstating how the industry would perform in 2023 because of the shifting market dynamics.
Combination of positive factors to jack up auto dealers’ revenue by 20-25% in FY23, says CRISIL New Delhi: are set to clock their fastest revenue growth in three fiscals with sales accelerating 20%-25% year-on-year in FY23 mainly owing to the 12%-14% volume growth and to the five supporting factors that are referred to as the firing of . They are the increasing preference for personal mobility, , easing supply-side constraints, shift in product mix towards higher priced vehicles, and price hikes of 5-7%. Improved credit risk profiles because of the stabilising profitability and stronger balance sheets also augur well for them, according to a recent study by . and greater contribution of the more profitable ancillary revenue (service, spare parts and insurance) to 10%-12% of total income in fiscal 2023 from 8%-9% last fiscal will help stabilise operating margin at 3%-5%. (4% in fiscal 2022). This could lead to healthier credit risk profiles, the study of 113 automobile dealers rated by CRISIL Ratings shows. , which plunged in fiscal 2021 and revived partially in fiscal 2022, continued to recover in the first five months (April-August) of this fiscal with recovery in retail demand and easing of semiconductor shortages. Recovery not to be uniform Recovery in revenue, however, will not be uniform across dealership segments. While (PV) dealers will continue to show robust recovery, (CV) and two-wheeler (2W) dealers will grow on a lower base due to subdued sales over the last 2-3 fiscals, the study reveals. Gautam Shahi, Director, CRISIL Ratings, said, “With strong recovery in sales, the operating profitability of PV and CV dealers will climb back to pre-pandemic levels of 4%-5%, while the margins of 2W dealers will rise gradually to 3%-4% this fiscal (against 4% pre-pandemic).” PV dealers will see strong volume growth of 17%-19% in the current fiscal in line with improved OEM growth outlook and increasing average realisation per vehicle due to higher proportion of higher priced utility vehicle sales, leading to overall revenue growth of 24%-26%. For the CV dealers, volume growth will be 20%-22%, on the back of revival in economic activity, higher replacement demand, and the government’s push. Price hikes of 4%-5%, following higher input costs, will push overall revenue growth in the CV segment to 25-27%. Though reopening of educational institutes and offices have been tailwinds for 2W sales growth this fiscal, slower recovery in rural demand, price hikes and competition from electric two-wheelers will continue to constrain volume growth to 9%-11%, leading to a modest revenue growth of 15%-18% on a low base of fiscal 2022. Sushant Sarode, Associate Director, CRISIL Ratings, said, “Better revenue and profitability growth should increase cash accrual of auto dealers in fiscal 2023 which, along with expected reduction in inventory following higher demand, will help auto dealers reduce working capital costs. Higher cash flows, lower inventory cost and
auto dealers in fiscal 2023 which, along with expected reduction in inventory following higher demand, will help auto dealers reduce working capital costs. Higher cash flows, lower inventory cost and strengthening balance sheets will improve debt metrics of auto dealers this fiscal.” While interest coverage ratio is likely to increase to 3.0-3.5 times in fiscal 2023 from 2.6 times in fiscal 2022, gearing is expected to improve to 1.0-1.1 times as on March 31, 2023, from 1.3 times in the previous fiscal. Credit ratio which improved to 5.25 in fiscal 2022 after falling to 0.44 in fiscal 2021, indicating strong recovery, is to remain healthy. However, volume, monsoon trend and inventory of dealers remain key monitorables, the study concludes. Read More:
Hyundai Motor and Societe Generale Group cos. set up captive finance JV New Delhi: The financial services subsidiary of , Hyundai Capital Services, and , a subsidiary of offering innovative financing solutions to the automobile and nautical distribution sectors, have launched a joint venture, (HCF). The joint venture strives to offer tailored solutions to meet the needs of Hyundai, , and Genesis brands globally with its new mobility-exclusive products and set up an automobile leasing company overseas, the company said. It further added that the joint venture will benefit from the support of Societe Generale Group and operate under the Hyundai Finance and Kia Finance brands within their respective networks and with dedicated teams. According to a media release, HCF will support Hyundai Motor France, Kia France, and their dealer networks, in lease and loan financing for new and used vehicles. It will also serve as a sales agent for relevant insurance policy products. Kim Hyun Joo, Executive Vice President and Head of Global Business Division, Hyundai Capital, said, "France is a strategically significant market for Hyundai Motor Group and we are very glad to form a joint venture with Societe Generale Group in this regard. Hyundai Capital, as a captive finance provider, aims to support Hyundai Motor Group's meaningful expansion in France with tailored products and services." France is one of the most important markets for the Hyundai Motor Group. The Group has opted for the strategy of setting up a captive finance company to further support vehicle sales in the European market by providing tailored financial services for customers and dealers. "We are very proud of this new chapter with the Hyundai Motor Group, which is the recognition of a long-term partnership. It will enable CGI Finance to continue to grow and support Hyundai Motor France, Kia France, and their dealers' network while offering services for more sustainable mobility to consumers," Ludovic Van De Voorde, CEO, CGI Finance, said. Also Read:
Oil merchants troubled by trading norms that don’t fit price cap The that the Group of Seven nations imposed on may finally be in place, but it’s yet to convince one vital group of people: the traders who can help get the supplies onto the global market. From last Monday, any company wanting to access G-7 services -- particularly European insurance and ships -- to move Russian oil can only do so if they pay $60 a barrel or less for the cargo. The initiative is aimed at punishing Kremlin for the Ukraine war by curbing oil revenue while maintaining exports. The US pushed for the measure as a way of softening European Union sanctions that threatened a far bigger supply disruption and surge in prices. Now the market is trying to figure out what effect the cap will have. But the measure is troubling traders because it doesn’t fit with how physical crude shipments are purchased and valued in the real world. This is creating challenges around risk management, which have only been exacerbated by wild swings on a daily, weekly and monthly basis since the war. A buyer today will often have to wait several weeks to learn the final per-barrel price they have to pay. In that period, it could have risen to an above-cap level, causing all sorts of complications. The that Bloomberg spoke to highlighted a potential risk for traders or middlemen to be stuck with an above-cap cargo giving them limited access to European ships and insurance. This poses difficulties on the physical handling of cargoes, in addition to the hedging of exposures. “Physical traders rarely trade on a fixed price,” said John Driscoll, chief strategist at JTD Energy Services Pte Ltd, who has spent over 30 years trading crude and petroleum in Singapore. “It’s a much more complex space where they trade on formulas and spot differentials to a benchmark crude for the trading of actual cargoes as well as for hedging that follows.” Typically, purchases of Urals, ESPO and Sokol - three top Russian grades - are priced on a forward and floating basis. That means their final prices aren’t known until several weeks after the cargo has been bought. As an example, in recent ESPO purchases done last week, Chinese refiners agreed to pay a discount to the average of front-month February ICE Brent contract. But this will be tabulated only at the end of December. The cap hasn’t all been bad news for Russia, or its ability to find buyers. Asian refiners such as Taiwan’s Formosa Petrochemical Corp. welcomed the news as an opportunity for buyers to resume Russian purchases after staying on the sidelines since the war. India, which has soaked up record Russian volumes in past months, said they will buy from wherever and isn’t expecting the cap to have any impact on imports. Russia has said that it will not cooperate with entities or countries that support the price cap on its oil. Its foreign minister said it intends to negotiate with its partners directly. While Russian oil can still flow using non-EU services
with entities or countries that support the price cap on its oil. Its foreign minister said it intends to negotiate with its partners directly. While Russian oil can still flow using non-EU services -- such as for cargoes not bought under the cap -- it’s unclear if there are enough ships and insurers to handle all the shipments diverted from Europe. --With assistance from Yongchang Chin. Also Read:
Collaboration, innovation, and cybersecurity to ensure safe future for connected vehicles: EY-Parthenon New Delhi: In the rapidly evolving landscape of , EY-Parthenon released a comprehensive report titled " 2.0; Navigating opportunities and risks in the digital era" at the ETAuto Connected Vehicle Summit '24. The report sheds light on the transformative journey of the automotive industry towards in-car connectivity, emphasizing the pivotal role of stakeholders in ensuring a secure and innovative future. Stakeholder Benefit: Enhancing the Connected Car Experience This section of the report underscores the positive impact of connected cars on consumers. The benefits include a reduction in range anxiety, safety improvements through (ADAS) for crash avoidance, and telematics for tracking insurance and efficiency. These features aim to create a seamless and secure in-car technology experience for users. However, the report doesn't shy away from addressing the elephant in the room - cybersecurity. With the increasing connectivity between vehicles, infrastructure, and humans, the risk of cyber threats becomes paramount. EY-Parthenon emphasizes the collective responsibility of all stakeholders, including Original Equipment Manufacturers (OEMs), regulators, component suppliers, insurance companies, and consumers, to prioritize cybersecurity and safeguard the connected world. , Partner at EY Future of Mobility, stated, “Connected car mobility marks one of the most ground-breaking opportunities. However, it introduces a unique challenge for OEMs - the necessity to innovate and conceptualize new business models. Success in this evolving landscape lies in effectively monetizing connected services and unlocking sustainable revenue streams.” EY-Parthenon outlines potential revenue streams for stakeholders, categorizing them into unpaid basic packages and paid add-on packages. Unpaid packages include essential vehicle information, convenience features, warnings, company app downloads, and OEM chat connects. On the other hand, paid add-on packages encompass offerings such as an OEM music store, engine diagnostic systems, advanced safety and security packages, service information packages, language packages, and more. Two insightful case studies explore the impact of connected technology. The first delves into electric vehicles (EVs) and how connected features can alleviate range anxiety by providing real-time information about charging infrastructure and timely alerts. The second case study focuses on connected dashcams, illustrating how they can revolutionize post-collision scenarios by providing push alert notifications, geo-coordinates, and event videos to insurance companies, emergency services, and the driver's family. The report highlights the role of telematics in claims, providing real-time data transmission on location, motion, speed, VIN number, acceleration, force of impact, and external environment conditions. Telematics not only enhances customer
in claims, providing real-time data transmission on location, motion, speed, VIN number, acceleration, force of impact, and external environment conditions. Telematics not only enhances customer protection by reducing underwriting and claim fraud but also streamlines the claims process, providing a more holistic protection cover for customers in cases of theft, accidents, and breakdowns. and Connected Dashcam integration EY-Parthenon suggests managing customer needs through core offerings, including Usage-Based Insurance (UBI) for individual and business needs. The integration of connected dashcams enhances risk selection, providing continuous improvement in capturing and analyzing driving behavior. The report encourages insurers to innovate their product offerings by providing value-added services, thereby increasing revenue, profitability, and customer retention. The key takeaway is the emphasis on collaboration, innovation, and cybersecurity to ensure a safe and thriving future for connected vehicle
Shriram Transport set to wear a brand new look beginning April In the new financial year, ( ) will wear a brand new look. Its proposed merger with subsidiary City Union Finance (SCUF) is set to reduce portfolio concentration risks at the vehicle financier even as the fortunes of an industry, in the cusp of momentous change, remain as agonizingly difficult to predict. The merged company will be called Shriram Finance Ltd, with a total asset size in excess of INR 1.55 lakh crore. “The move should cut the concentration risk that weighed on portfolios during the pandemic,” Umesh Revankar, managing director, Finance, told ET. "This will help in diversifying our loan book as we aim to foray more into rural retail. We expect at least one outlook revision in the next few quarters.” The integrated single entity stands a fair chance of an outlook revision as rating companies are assessing its future growth path. For now, it will likely avoid overseas borrowing but tap local resources. STFC is primarily engaged in second-hand truck purchases. SCUF deals in a wide range of retail credit, including funding to small and micro enterprises, two-wheeler purchases, loan against property and gold and personal loans. It has a separate subsidiary – . "The merger of two companies will pave the way for diversification of loan book, partly mitigating risks associated with lending to a single asset class," said Karthik Srinivasan, group head of financial sector ratings at ICRA. “With the formal merger, we will assess its impact on outlook and creditworthiness," he said. Shriram Transport reported about 6.5 percent fall in its standalone net profits at INR 681 crore in the third quarter. During the December quarter, the gross non-performing ratio, a gauge for bad loans, was at 8.40 percent versus 5.39 percent a year ago. The Shriram Group will aim to get the merger approved by the National Company Law Tribunal in this calendar year. While Shriram Transport is rated AA+, Shriram City Union is graded a notch lower at AA. The merged entity is likely to be rated AA+ benefiting City Union initially, market sources said. “We shall start introducing complementary products of each other's companies from April 1," Revankar said. Shriram Transport has 1,824 branches, which will be consolidated into 2,800 such units with the additional counts coming from Shriram City Union. "We will not lay off any people but train them to be reskilled to work for the larger entity," said the managing director. The company will raise resources tapping local credit lines like traditional bank loans, bonds and public deposits. "We will look at overseas resource mobilization after we establish credentials of the merged entity," he said. The merged entity will also cross/upsell group insurance products. Shriram Life Insurance and Shriram General Insurance are two companies that are expected to have access to this combined non-banking finance company. Also Read:
Rupee opens 25 paise higher vs dollar despite rise in oil prices; here's why NEW DELHI: After shedding around 1.5 per cent against the US dollar on Thursday, the regained some ground on Friday as domestic equity markets bounced back after a brutal selloff and as traders pinned their hopes on the Reserve Bank of India expending some of its formidable foreign exchange reserves. The partially convertible rupee opened at 75.40 per US dollar as against 75.65 per dollar at the previous close. So far in the day, the Indian currency moved in a band of 75.2780-75.4220 against the greenback. After giving up more than 4 per cent each on Thursday, the BSE Sensex and Nifty50 were up 2.6 per cent and 2.7 per cent, respectively, at 10:40 am. In line with other emerging market currencies, the rupee has suffered a heavy beating this week as Russia’s invasion of Ukraine sent global surging to multi-year highs, with Brent crude prices topping the $100 mark. For India, which is a huge importer of crude oil, the development threatens to push up the trade deficit and inflation. Crude oil prices again registered a sharp rise on Friday as Russia’s actions are seen attracting sanctions from Western powers which may disrupt global supplies of the commodity. Brent crude rose $1.99, or 2 per cent, to $101.07 a barrel around 0155 GMT on Friday. US West Texas Intermediate (WTI) crude climbed $1.89, or 2 per cent to $94.70 a barrel. While the hardening of commodity prices hurt market sentiment, dealers took heart from a sharp decline in the US dollar index on Friday. The dollar index, which had gained sharply on Thursday as investors flocked to safe-haven assets, was last at 96.85 as against 97.05 around 4 pm on Thursday. Some sales of dollars by banks - likely on behalf of overseas entities looking to invest in Life Insurance Corporation’s $8 billion initial public offering - also bolstered the rupee, dealers said. “Rupee opened near 75.40 after not so effective sanctions from the US and Europe and rise in US equity markets brought about risk-on sentiments,” Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors said. “Dips on the dollar to be bought as the war continues and none of the sides has made any indications to make any concessions. The range will be between 75 to 75.70. Exporters to sell near to 75.75 and importers to buy near 75.00 levels.” Government bonds were steady, with the yield on the 10-year benchmark 6.54 per cent 2032 paper unchanged at 6.76 per cent. Market players kept off large bets ahead of a primary auction of sovereign debt worth Rs 23,000 crore on Friday. Dealers do not anticipate firm demand at the sale as sentiment has taken a turn for the worse following the surge in oil prices and as demand-supply dynamics remain challenging, given the Centre’s decision to announce a record-high gross borrowing of Rs 14.95 lakh crore for the next fiscal year. Also Read:
GarageWorks raises USD 1 million in pre-series A investment round New Delhi: , which offers high quality two-wheeler servicing and maintenance to customers through a convenient at home-process, has secured USD 1 million in its Pre-Series A investment round funding led by various notable investors, namely Hiten Shah, Gowri Narayanan, Ram Trichur, Fred Towfigh, Abhijeet Kumar and Munendra Singh (ex-founders of BB Daily). This is the company’s second round of fundraising after an initial angel round. The present investors, Dr. Aniruddha Malpani, Pawan Sharma (ex-CEO of KPIT Technologies), Gautham Radhakrishnan and Gaurav Malhotra also participated in this round, the startup said in a release. GarageWorks will deploy the funds to expand its geographical footprint, enhance its technology suite, and recruit talent. Since its inception, GarageWorks has been serving two-wheeler owners with periodic maintenance, inspection, and repair. Users can digitally schedule a home visit by a trained and skilled service provider partner. Shishir Gandhi, co-founder, and CEO of GarageWorks, said, "With this successful fund raise, we aim to secure a foothold in the top 10-12 cities and make doorstep services a primary choice for our customers to manage their two-wheelers. Be they IC engines or EV, our focus on technology, data, and asset-light operations is enabling GarageWorks to disrupt the two-wheeler ecosystem from vehicle sales through to end-of-life." GarageWorks has served over 80,000 individual customers and enjoys 70% retention rate. It does over 200 vehicle servicing jobs daily and has completed over 1.2 lakh lifetime services. The brand also plans to create a robust marketplace for complete two-wheeler management, which will include tyres, batteries, insurance, loans, and warranty. Hiten Shah, a prominent investor in this fund raise round, Hiten Shah, said, "We are delighted to support Shishir and the team at GarageWorks as they seek to revolutionise the 2-wheeler market in India. We have been impressed by their achievements to date and excited by the opportunities for the brand in the financial services ecosystem." Another investor, Fred Towfigh, added, “We found GarageWorks’ unique approach of catering to the massive two-wheeler segment relevant not only for the Indian ecosystem but also see the potential to offer it in markets like Southeast Asia & Africa. We are excited with their vision to scale as a global player.” In the long run, GarageWorks aims to become the sole destination for a complete two-wheeler ownership lifecycle, from repair and maintenance to insurance to a marketplace for genuine parts and accessories. GarageWorks is also creating a self-sustaining ecosystem for self-driven individuals who wish to run their repair and servicing business. The digital ecosystem eliminates the need to have a physical setup, enabling anyone to start their business. The GarageWorks training and support enables them to become champion service providers. Also
digital ecosystem eliminates the need to have a physical setup, enabling anyone to start their business. The GarageWorks training and support enables them to become champion service providers. Also Read:
US imported more fuel from Russia than India NEW DELHI: For all the noise from the West over 's oil imports from , it has now emerged that not just European countries but even the US shipped more fossil fuels than India since Moscow attacked Ukraine. A report by think-tank Centre for Research on Energy and Clean Air (CREA) showed an uptick in Russian oil shipments to India and Egypt in the months after the conflict began. The situation is set to change. Indian government officials said the "hefty discount" - which some western agency reports pegged as high as $30 per barrel - has become not so attractive for Indian buyers as they are being asked to take delivery and then ship it. "You need to add the shipping cost, insurance and the war premium, (then find a willing insurer), which doesn't leave much on the table," an official familiar with the thinking in the government said. Russian authorities had proposed to the government that they were willing to offer a discount on crude as they battle sanctions that do not apply to energy, food and pharma products. Indian state-run companies and private sector had bought an aggregate 30 million barrels of Russian crude since the conflict broke out. This drew sharp criticism from US president and other European leaders. India has maintained that it will secure its interests, while calling for an end to the war and advocating diplomacy. The CREA report pointed out that in the two months since the invasion of Ukraine, 71% of the 63 billion euro worth of fossil fuels - crude, oil products, piped gas, LNG and coal - exported by Russia were to European countries, with Germany on top (see graphic). However, shipments were lower than the pre-war period. It noted that there was a sharp rise in vessels leaving Russia without a definite destination. "Oil shipments to India, Egypt and other 'unusual' destinations for Russian exports have attracted a lot of attention, and our data shows a clear pick-up from a base of almost zero. However, the shipments to these new destinations are by far not sufficient to make up for even the modest fall in exports to ," the think-tank said. In case of India, in the first three weeks of April, compared to January-February, there was a 130% rise in coal shipments and a 340% jump for crude. Also Read:
Ford resumes production at Tamil Nadu plant Production at the factory belonging to auto major has resumed after a section of employees consented to work after striking work since May 30 demanding a better severance package, officials said. While , the subsidiary of the United States car maker, said more than 300 people gave their consent to resuming production and the plant has resumed operation in double shifts from June 14, employees said only 100-150 of them (of the total about 2,600) have joined to commence work. In a statement to PTI, the company said, "The Chennai plant has resumed operation in double shifts with effect from June 14. More than 300 people gave their consent to resuming production and it continues to increase." "For employees continuing to be on an illegal strike, a loss of pay as per the Certified Standing Orders has come into effect with effect from June 14," Ford said. According to a union official, about 100-150 people have joined the duty at the factory since Tuesday and the unit was operating in double shifts. "Some employees have joined duty. About 100-150 of them. Others who were striking inside the factory have now come out of the unit and continue the strike outside...," the official told PTI. Ford said the severance package would only be available to those employees who resume production from June 14 and support the company in completing the production schedule. The company said it has very limited export production left to complete and warned that if employees do not resume production from June 14, there is a 'high likelihood' that the company would be required to call off production of remaining export volumes and bring vehicle production to a close. Asked about the severance package, the union official said his colleagues were yet to take a call and were keen on discussions with the management for a better severance package. On the severance package offered to the employees, Ford said many of the employees are having ongoing queries about the severance (package) offer and requesting more time for giving consent and the company has decided to extend the last date for submission of the form provided by 5 pm on June 18. The union official said the employees were keen on getting a better severance package and taking up the matter with the management. "Another meeting in the presence of the Deputy Commissioner of Labour along with the management and the employees has been fixed on June 20," he said. According to Ford, the company has offered severance packages for approximately 115 days of gross wages for each completed year of service (of an employee) which was significantly higher than the statutory severance package. The cumulative package accounts to an ex gratia amount equivalent to 87 days of last drawn gross wages as on May 2022, a fixed Rs 50,000 for every completed year of service benefits equivalent to a lumpsum amount of Rs 2.40 lakh and current medical insurance coverage until March 2024. "The cumulative
as on May 2022, a fixed Rs 50,000 for every completed year of service benefits equivalent to a lumpsum amount of Rs 2.40 lakh and current medical insurance coverage until March 2024. "The cumulative amounts will be subject to a minimum amount of Rs 30 lakh and a maximum cap of Rs 80 lakh," it said. To those employees who continue to engage in the strike, Ford said the company shall take appropriate actions, including imposing loss of pay, as per applicable legal provisions.
US proposes requiring automatic emergency braking in new vehicles The Biden administration on Wednesday proposed requiring ( ) on all new and and set new performance requirements, one of the most significant safety regulations proposed in recent years. The new requirements proposed by the (NHTSA) would require most vehicles to comply three years after being finalized and is expected to dramatically reduce crashes associated with pedestrians and rear-end crashes. The auto safety agency projects the rule would save at least 360 lives and reduce injuries by at least 24,000 annually. Congress directed NHTSA in the 2021 infrastructure law to create a rule to establish minimum performance standards for AEB systems, which use various sensors like cameras and radar to detect when a vehicle is close to crashing, and then automatically applies brakes if the driver has not done so. NHTSA chief counsel Ann Carlson said the proposal seeks to "require all cars to be able to stop and avoid contact with a vehicle in front of them up to 62 miles per hour. And the proposal would require pedestrian AEB, including requiring that AEB recognize and avoid pedestrians at night." The number of pedestrians killed in 2021 jumped 13% to 7,342, the highest number since 1981. The Alliance for Automotive Innovation, a group representing major automakers, said it was reviewing the proposal. The Insurance Institute for Highway Safety (IIHS) said requiring the system to prevent front-into-rear crashes at higher speeds "will improve the systems that are currently standard on most new vehicles. In 2016, 20 automakers voluntarily agreed to make automatic emergency braking standard on nearly all U.S. vehicles by 2022. In December, IIHS said 15 of the 20 automakers equipped at least 95% of vehicles with AEB, while General Motors had produced 73% of vehicles with AEB. GM said Wednesday it will make AEB standard on 98% of its 2023 model vehicles.
Cyrus Mistry death: Cops check if truck was in outer lane MUMBAI: Despite repeated reminders and awareness campaigns, truckers on highways are using the middle or outer lanes while driving. On highways or expressways, heavy vehicles are supposed to keep to the left and use the middle or the lane on the right only to overtake. Lighter or smaller vehicles such as cars and SUVs should ideally have right of way for the middle and outer lanes. However, this discipline is nowhere visible. Highly placed sources said police is even investigating the probability of a truck being involved in the accident in which two persons including former Tata Sons chief were killed. It is probable, they said, that a heavy vehicle may have veered to the right on the stretch, prompting the driven by Anahita Pandole to try and overtake from the left at high speed. Sources with the state government's infrastructure arm said the sudden narrowing of lanes over the bridge may have caught Pandole unawares at this point. She could have misjudged the width of the road and hit the concrete railing on the side on the left. Officials said police was carrying out a detailed investigation into this scenario. In a similar accident some weeks back, Vinayak Mete, a Maratha leader died on the Mumbai-Pune expressway when the driver of his SUV rammed into a multi-axle container truck in an attempt to overtake it. The truck was veering from the middle lane to the outer one. Nitin Dossa, chairman of the Western India Automobile Association, said lane indiscipline should be dealt with stringent implementation of fines so that no trucker dares to drive at high speed on the right side on highways. "Police should detain them instead of just slapping fines. They should be forced to undergo training before they are released from police stations," he said. "On the expressway, trucks for the most part are on the left and middle lane and not the first lane which is for cars. Whereas if you go on the Mumbai-Pune-Bangalore highway via the Pune bypass, you will find trucks in the outer lane. As you keep going further till you take a right to Mahabaleshwar, trucks are commonly found in this lane. As a car driver when you have trucks going at low speeds one is forced to overtake from the wrong side. If an accident happens, the cops or newspapers would say the car was overtaking from the wrong side. Insurance companies would say wrong driving. Taking the right lane once in a while by a trucker is understandable but it has become the norm more or less now," said Vinod Narayan, a regular motorist. Read Also:
Indian job market registered 15% YoY growth in hiring demand in April The surge in economic activity led to a continued growth in hiring activity in April. The registered a 15% year-on-year growth in hiring demand in April and 4% month-on-month led by positive , according to the Index (MEI). The saw recovery across several sectors that were impacted by the pandemic, showcasing the highest growth in the month of April, the survey showed. Sectors such as production & manufacturing, travel & tourism, import and export, have also shown marked improvement with the first double-digit annual growth in two years, reports MEI. While leadership roles with experience of over 16 years exhibited steepest growth of 29% amongst all experience levels, inter-mediate and mid senior level roles showed growth of 24% and 22%, respectively. Fresher roles or entry level roles too showed stable high teen growth. “The future of the job market is looking healthier by the day. With India achieving a new milestone of touching 100 unicorns, it is only a matter of time before these disruptive companies create further employment across sectors,” said Sekhar Garisa, CEO - Monster.com, a Quess company. “The emergence of fintech, edtech, and D2C brands has definitely helped stimulate economic recovery at a much faster rate than traditional companies.” The Monster Employment Index is a monthly analysis of online job posting activity conducted by . Based on a real-time review of millions of employer job opportunities culled from a large, representative selection of online career outlets, the Monster Employment Index presents a snapshot of employer online recruitment activity nationwide. Banking, financial services and insurance (BFSI) continued to remain the fastest job recovering sector with a 54% annual growth rate followed by retail that grew 47% annually and then production and manufacturing industry at 35%. The re-opening of brick-and-mortar stores have resulted in a sharp rise in the retail job market. Easing of Covid-19 curbs have resulted in consumers frequenting recreational centres such as malls, creating a demand for retail talent. Growth was witnessed in import and export (up 29%) and travel and tourism (up 15%) sectors. Real estate, which exhibited a continuous dip in Y-o-Y hiring demand since April 19, saw a dramatic recovery of 26% on the back of improved consumer sentiments who are now enthused by an upward looking market. Mumbai (up 29%) led all the monitored cities on a yearly basis, followed by Coimbatore (up 25%), Chennai (up 21%), Bangalore and Hyderabad (up 20% each). Rest all metro cities Delhi-NCR, Kolkata and Pune continued to reflect a positive year-on-year growth trend in the range of 6 to 18%. While production and manufacturing and the BFSI industry saw a significant jump for another consecutive month in all metros, rebounded for almost all the functions in Tier-1 cities. Following the reverse migration of workers to Tier-2 markets, and the newer trend
jump for another consecutive month in all metros, rebounded for almost all the functions in Tier-1 cities. Following the reverse migration of workers to Tier-2 markets, and the newer trend of work moving to talent has also created job opportunities in emerging cities and towns. Baroda (up 15%) exhibited a significant increase in hiring demand, followed by Kochi and Kolkata (up 8%) and Jaipur (up 3%). Though Chandigarh showed muted growth in April from the year-ago level, the overall city-wise data shows the perceptible signs of upcoming growth stories for job creation in these cities. Also Read:
Ford CEO says EV cost parity may not come until after 2030 The cost to make may not drop to the level for gas-powered cars until after 2030 when the process becomes simpler and less labor-intensive, Motor Co Chief Executive said on Wednesday. At an investor conference, Farley said that, for many automakers, EVs will remain more costly than their internal combustion engine counterparts until the second and third generation models go into production later in this decade. Analysts have predicted that EV cost parity could come as soon as 2025. Between 2030 and 2035, Farley added, much of the industry's EV cost savings will come from "dramatically lower labor content" because the vehicles will be simpler to build with fewer parts, and will be fitted with smaller batteries that use cheaper materials. He also predicted the industry could realize lower distribution costs from selling EVs online, as well as higher revenue from new software-driven digital services. Farley said Ford's software services business has 600,000 subscribers, triple the number a year ago. That includes 200,000 retail customers paying for the company's Blue Cruise driver assistance system and 400,000 Ford Pro commercial customers paying for a range of services including fleet management, EV charging, dynamic routing and more. As the company expands its ability to harvest data from vehicles and drivers, Ford could follow other automakers, including Inc and , in offering insurance, he said. Asked about the potential for industry-wide consolidation over the next five years, Farley instead predicted an "acceleration of cooperation," citing such deals as Ford's recent agreement to use Tesla's supercharger network for its future EVs. "Cooperation is essential," he said, especially for companies that may not have the resources to build out a full EV ecosystem.
A Tesla rival is driving into India. What lies ahead for it A small unprofitable ( ) maker, which had briefly become the third most valuable auto manufacturer in the world last year after and , leaving behind General Motors and Ford Motor, as its stock rose nearly 700% days after its listing on Nasdaq, is driving into India. Auto, which was formed in 2017 and began making EVs in 2021, is backed by Vingroup, Vietnam's largest conglomerate. It will hold the groundbreaking ceremony for its USD 2-billion integrated EV facility in Thoothukudi on February 25, ET has reported based on information from sources. VinFast will set up a kit assembly plant. VinFast, though smaller in size compared to the likes of Tesla, considers Tesla its rival. It is expanding fast and has ambitious plans to take on the Elon Musk-owned firm in the US where Tesla has more than a 50% market share. VinFast currently has a manufacturing facility in Hai Phong in Vietnam. On July 28, the company broke ground for its first American factory in North Carolina where the annual production capacity is expected to reach 150,000 vehicles in the first phase. VinFast delivered 34,855 EVs in 2023. The EV maker has handed over a total of 42,291 electric vehicles globally since it started out in 2021. VinFast's India plans VinFast enters India at a time when the EV penetration is low but the country is on its way to wide adoption. In addition to building the manufacturing facilities in Tamil Nadu, VinFast also has intentions to inaugurate a nationwide dealership network. This approach is to establish a strong brand presence and swiftly connect with customers across the country. Since it has chosen Tamil Nadu for its plant, VonFast is also looking at exports to Southeast Asian markets. While VinFast does not command the same brand value as Tesla, its cars are seen as affordable alternatives to Tesla and are expected to gain positive buzz in the Indian market for being cost-effective and value for money, analysts say. “Unlike Tesla, which uses a direct-to-consumer sales model, VinFast adopts a multi-channel distribution strategy and differentiates its models for various markets,” Ashwin Amberkar, automotive analyst at Canalys, had told ET last year. “VinFast is expected to adopt a similar model in India.” VinFast might have a good opportunity in the premium segment. Premiumisation in the Indian car market presents it with an opportunity to introduce premium features at prices more competitive than Tesla and other European luxury brands like Mercedes Benz, BMW, and Audi. VinFast might begin with two to three e-SUV models from its existing portfolio, ET had reported last year, based on information from sources. This would include a compact SUV crossover followed by a full-size sedan and more models subsequently. The first model, VF e-34, which is a compact SUV crossover, will be an imported one, said multiple people privy to the company’s plans. The subsequent e-SUVs including VF e-36, VF6 and
subsequently. The first model, VF e-34, which is a compact SUV crossover, will be an imported one, said multiple people privy to the company’s plans. The subsequent e-SUVs including VF e-36, VF6 and VF7 will be assembled locally in the initial phase before the local production of a few of them begins. The Indian terrain VinFast is entering India when the EV industry is very small. In 2023, sales were just 2.3 per cent of the total passenger vehicle sales, up from 2.1.28% in 2021, as per Jato Dynamics. In 2021, the sales were 0.48%. The Indian market will be a long haul for any EV maker entering the four-wheeler segment given the current ecosystem, Barnik Chitran Maitra, managing partner at Arthur D Little, India and South Asia, had told ET. "If profitability is an issue for the electric two-wheelers, range anxiety and charging infrastructure are the challenges in the electric car segment.” Given the muted demand, money has to be spent both on the front-end as well as back-end to get the customers excited about buying the EVs, he added. However, this could be the right time for VinFast to enter India. Given the low entry barrier in EVs and absence of Chinese manufacturers in India, companies other than those from China have a fair chance of making it big in India, an analyst at a management consulting firm had told ET. Tata Motors, the leader, commands a more than 80% share of India's electric car market, and competes with China's MG Motor and home-grown Mahindra & Mahindra. India's EV market has the potential to achieve over 40 per cent penetration with USD 100 billion revenue by 2030, as per a report by Bain & Company and Blume Ventures. The four-wheeler (cars) penetration is projected to grow to more than 20 per cent. However, several structural challenges need to be addressed to achieve this potential across five themes - new product development, go-to-market/distribution, customer segment prioritisation, software development, and charging infrastructure, the findings showed. Meanwhile, EVs are being overtaken by hybrids in India. In sharp contrast to global trends, Indian customers prefer hybrid vehicles, which have a blend of combustion engine and electric motors, to pure-play electric cars that are powered entirely by batteries or BEVs. They like to settle for an intermediate technology and familiarise themselves with alternative fuel before going all out for EVs. Car companies, quick to recognise this trait, have been luring the Indian clientele with 51 new model launches of hybrids compared with just 29 for EVs in 2023. Hybrids have become favourites due to their reliability, affordability and lower maintenance cost. Meanwhile, limited range, lack of charging infrastructure and expensive insurance are concerns that the EV ecosystem needs to aggressively address to make its India ride smoother. VinFast, which will be the first EV-only company to operate in India, can have an early-mover advantage over its other global players such as
to aggressively address to make its India ride smoother. VinFast, which will be the first EV-only company to operate in India, can have an early-mover advantage over its other global players such as Tesla which also plans to enter the Indian market due to its vast growth potential.
Shipping firm Maersk says it's preparing for resumption of Red Sea voyages after attacks from Yemen says that it's preparing to allow vessels to resume sailing through the Red Sea, thanks to the start of a US-led to protect shipping from attacks by in Yemen. Houthi attacks have led to a major disruption of shipping through the Suez Canal and the Red Sea, one of the most important arteries for trade in oil, natural gas, grain and consumer goods between Europe and Asia. Maersk said in a statement Sunday that "we have received confirmation that the previously announced multi-national security initiative Operation Prosperity Guardian (OPG) has now been set up and deployed to allow maritime commerce to pass through the Red Sea-Gulf of Aden and once again return to using the Suez Canal as a gateway between Asia and Europe. " The company said it was working on plans for the first vessels to make the journey "and for this to happen as soon as operationally possible." The Houthis are Iranian-backed rebels who seized Yemen's capital, Sanaa, in 2014, launching a grinding war against a Saudi-led coalition seeking to restore the government. The Houthis have sporadically targeted ships in the region, but the attacks have increased since the start of the Israel-Hamas war. The rebels have threatened to attack any vessel they believe is either going to or coming from Israel. That has escalated to apparently any vessel, with container ships and oil tankers flagged to countries like Norway and Liberia being attacked or drawing missile fire. Major shipping companies include Maersk have been avoiding the Red Sea and sending their ships around Africa and the Cape of Good Hope. That added what analysts say could be a week to two weeks of voyages. The disruption also hiked fuel and insurance costs. On Saturday, a US warship shot down four incoming drones originating from Houthi-controlled areas, and a Norwegian-flagged chemicals and oil tanker reported a near miss of an attack drone, while an India-flagged tanker was hit with no injuries reported., the US Central Command said Sunday on X, formerly Twitter. The incidents represented the 14th and 15th attacks on commercial shipping by the Houthis since October 17.
Mahindra Car Insurance Guide: Get the Best Coverage for Your Mahindra Choosing the appropriate is essential for protecting your vehicle. In India, it serves as both a legal requirement and a financial safety net. Driving without adequate insurance coverage can lead to financial losses in case of mishaps and may also land you in legal trouble. If you are researching different or specifically focusing on Mahindra , this guide provides all the necessary information. Undеrstanding Car Insurancе Typеs Not all car insurance is the same, as each type of coverage provides unique advantages. You have to get acquainted with thе diffеrеnt car insurancе typеs bеforе choosing a policy to makе surе you arе obtaining thе optimal protеction for your vеhiclе. 1. Third-Party Liability Only Covеr According to the 1988 Motor Vehicle Act, every automobile operating on roads in India must be covered by third-party liability insurance. This policy is the simplest type of coverage, specifically focusing on protection against damages or injuries inflicted on others by the insured vehicle. This kind of car insurance is mandatory as per the law and is usually the most cost-effective choice. It provides compensation for the following situations: ⦁ Damagеs to Third-Party Vеhiclеs: Costs for repairing or replacing vehicles damaged by the insured's car are covered. ⦁ Damagеs to Third-Party Propеrty: Damage caused by the insured vehicle to the third-party property is included. ⦁ Hospitalisation Costs: Medical expenses for injuries suffered by individuals other than the policyholder. ⦁ Liabilitiеs for Deaths: Providing compensation for fatalities resulting from accidents that involve the insured vehicle. Nevertheless, this policy does not provide protection for damage to your own vehicle, whether from a collision, acts of nature, or theft. 2. Own Damagе (OD) Covеr Own damage cover is meant to provide compensation for loss or any damage to your vehicle, such as that caused by accidents, theft, or natural disasters. This policy determines premiums depending on the vehicle's Insured Declared Value (IDV), which represents its current market price. If the cost of repairing the car is more than its Insured Declared Value, the insurance provider will compensate you the market price of the vehicle. It is crucial for vehicles with existing loans to have their own damage coverage. This cover is especially beneficial for people in accident-prone areas or those who commute daily through heavy traffic situations. Unlike third-party cover, comprehensive coverage provides financial protection against damages to your own vehicle. 3. Pеrsonal Accidеnt Covеr Personal accident cover is essential as it provides compensation for the medical expenses resulting from accidents. It provides financial assistance for hospitalisation and medical treatments for drivers and passengers alike. If the insured person dies, the policy provides a one-time payment to the family, helping with medical costs and other
for hospitalisation and medical treatments for drivers and passengers alike. If the insured person dies, the policy provides a one-time payment to the family, helping with medical costs and other related charges. This coverage is crucial to prevent unexpected accident-related expenses from causing a major financial burden on individuals and their families. Thus, it provides peace of mind and financial stability during difficult times. 4. Uninsurеd Motorist Protеction Uninsured motorist protection is essential if you are in a collision with an uninsured driver. This insurance coverage steps in to pay for costs usually handled by the responsible driver's insurance, like vehicle damage repair charges and medical expenses. If you do not have this protection, you may have to pay for considerable expenses from the accident. Uninsured motorist protection ensures you aren't responsible for the costs if the other party lacks sufficient insurance coverage. It ensures peace of mind and financial stability by filling insurance coverage gaps and protecting your financial health. 5. Comprеhеnsivе Car Insurancе Comprеhеnsivе coverage is the most inclusive type of It combines third-party liability and own damage covers and safeguards against various risks: ⦁ Damages from natural disastеrs like floods, earthquakes, cyclones, storms, etc. ⦁ Damages to the vehicle from man-madе calamitiеs like riots, terrorism, vandalism, еtc. ⦁ Loss of vеhiclе duе to thеft. ⦁ Damagеs causеd by firе. This policy excludes damages to the car caused by drunk driving, driving without a valid license, wear and tear, or illegal racing. It is perfect for individuals looking for comprehensive coverage for their vehicles. Add-On Covеragеs for Enhancеd Protеction In order to improve your comprehensive policy even more, you have the option to include several additional features: Roadsidе Assistancе Covеr: Coverage for roadside assistance provides around-the-clock help for problems such as flat tires or dead batteries, ensuring assistance is accessible even in remote or difficult areas, minimising the anxiety of unforeseen vehicle issues. Zеro Dеprеciation Covеr: Offers complete reimbursement for vehicle repairs without taking into account depreciation. Valid for vehicles under three years old, it guarantees you receive the entire repair expenses. Kеy Replacement Covеr: This covers the cost of replacing lost or damaged car keys, easing the financial burden and inconvenience of key replacements. No-Claim Bonus Protеction: It ensures that your no-claim bonus discount remains intact even after you make a claim, maintaining your premium benefits and lowering future insurance expenses. Rеturn to Invoicе Covеr: This add-on ensures that the policyholder receives the original purchase price of the vehicle in the event of car theft or total loss. Enginе Protеction Covеr: It provides repair or replacement expenses for the engine and its related parts caused by specific issues, ensuring the performance
in the event of car theft or total loss. Enginе Protеction Covеr: It provides repair or replacement expenses for the engine and its related parts caused by specific issues, ensuring the performance and dependability of your vehicle are maintained. Consumables Covеr: Guarantees reimbursement for the price of necessary consumables like lubricants, screws, and other items utilised in vehicle repairs, addressing extra maintenance expenses. Factors Affеcting Car Insurancе Prеmiums The cost of your Mahindra car insurance premium depends on multiple factors. ⦁ Typе of Covеragе: Comprehensive insurance usually comes with higher premiums than third-party liability cover because it offers a greater variety of coverage. ⦁ Add-Ons: Additional covеragеs will incrеasе thе prеmium. ⦁ Claim History: Making claims often could potentially increase your premium. ⦁ Vеhiclе Agе: Nеwеr vеhiclеs usually havе highеr prеmiums. ⦁ Dеductiblеs: Opting for highеr dеductiblеs can lowеr your prеmium. Choosing the Right Car Insurancе Policy When choosing car insurance, take into account the following factors: Type of Insurance: Choose between third-party, own damage, or comprehensive coverage, depending on your requirements. Coverage Requirement: Ensure that the policy covers all possible risks, such as theft and natural disasters. Add-Ons: Consider whether add-ons, such as roadside assistance or zero depreciation, are needed. IDV: Choosе an appropriatе Insurеd Dеclarеd Valuе for adеquatе compеnsation. Cashless Garage Network: Verify if the insurer offers a wide network of garages for smooth repairs. Conclusion Choosing the correct for your Mahindra vehicle ensures that you are safeguarded from a range of potential risks. Although third-party liability cover is mandatory, comprehensive coverage provides peace of mind due to its extensive protection. Check for typical auto insurance choices and Mahindra-specific policies to locate the optimal coverage for your requirements. Remain safe and drive with assurance! Disclaimеr: Thе abovе information is for illustrativе purposе only. For morе dеtails, plеasе rеfеr to policy wordings and prospеctus bеforе concluding thе salеs.
2022 TVS iQube Vs Ola S1 Pro Vs Ather 450 Plus: Price and specifications comparison TVS Motor recently introduced the 2022 iQube electric scooter in new variants, colour options and new features. The e-scooter rivals the likes of and in the Indian market. Here is how well they compete with each other, considering the price and specifications. Vs Ola S1 Pro Vs Ather 450 Plus: Price TVS has not revealed the top-spec iQube ST price in India, however the same can be booked for INR 999. The TVS iQube standard variant is priced at INR 98,564, while the mid-spec iQube S price is INR 1.08 lakh (both prices are on-road, Delhi). The base variant of Ola S1 Pro is competitively priced at INR 85,099, marking a difference of INR 13,465. The Ola and Ather electric scooter prices are ex-showroom, Delhi, including Fame-II subsidies, and exclude insurance, registration and road tax charges. TVS iQube Vs Ola S1 Pro Vs Ather 450 Plus: Battery and Charging Specifications The 2022 TVS iQube power output is the same as the earlier model and this time is available with big battery packs. The new iQube scooters now come equipped with a 3.04 kWh battery and the top-spec ST trim receives a 4.56 kWh battery. The iQube ST offers a claimed range of 145 km, whereas the top variant offers 145 km and it gets a 1.5 kW fast charger. The Ola S1 Pro produces a power of 8.5 kW and a torque of 58 Nm. The top speed of the Ola S1 Pro is 115 kmph. With a 3.9 kWh battery, it offers a real-world range of 135 km. Besides, the Ather 450 Plus is also a powerful performer even with a 2.9 kWh battery. This is how the 2022 TVS iQube rivals with its competitors on paper, however the real-world comparison will determine which electric scooter is the best.
Recession risk douses once-hot IPO market The market for share sales hasn’t been this bad in nearly two decades, with few willing to take a chance in a grim investment climate. Just $198 billion worth of (IPOs) and follow-on sales have been priced so far this year, a 70% drop from a year ago. That puts them on track for the lowest first-half haul since 2005, data compiled by Bloomberg show. Right now, who can blame sellers for holding back? The alternative is the challenge of trying to find willing buyers in astock market down 20% this year as surging inflation, aggressive central bank interest rate hikes and the risk of a global recession erode sentiment. And any lingering hopes for apickup in IPO action keep getting ground down. The jacked up rates by the most since 1994 on Wednesday, and even after a bounce on Friday, the S&P 500 suffered yet another weekly loss. “Until relatively recently, there was a well-balanced expectation for high-quality IPOs to come to market in September,” said James Palmer, Bank of America’s head of EMEA equity capital markets. “But given market events over the last two weeks, that’s re-weighted the degree of hope. ” Among those that have recently thrown in the towel are Coca-Cola, which delayed the planned IPO of a part of its stake in an African bottler, and Asian insurer FWD Group Holdings, said to have postponed a $1-billion listing in Hong Kong. Those that have forged ahead had to temper expectations. LIC, once slated to number among the largest fund-raisings of the year, slashed the size of its IPO by about 60%. The drop in volumes has been particularly pronounced in the US, where just $47 billion of equity offerings have been priced — an 85% fall from a year ago. Cross-border listings from China, once a steady source of business for New York’s investment bankers, have also stalled amid higher regulatory scrutiny in the aftermath of ’s debacle. A few markets have bucked the trend, most notably the Middle East. IPOs there are heading for a record first half as high oil prices and equity inflows shield the region. Energy giant Saudi Aramco is lining up a number of offerings for the second half, seeking to take advantage of elevated commodity prices. Elsewhere, there’s no dearth of candidates waiting for the right moment. They include chip designer Arm, whose owner Softbank Group aims to list the company by next March, Thai Beverage’s brewery business, which is making its third attempt at going public, and ’s planned share sale of Porsche. Market conditions are also creating incentives for a second-half rebound in other transactions, such as convertible bond sales and spinoffs.
India to continue to attract eyes of foreign investors, though global uncertainties pose challenges India may attract eyes of overseas investors in 2023 as well on account of measures such as rollout of the production linked incentive (PLI) schemes and projection of healthy economic growth, though global economic uncertainties due to tightening in the US and ongoing may remain cause for concern. Steps to promote ease of doing business, skilled manpower, presence of natural resources, liberal , huge domestic market and prospects of healthy are the reasons for optimism on the foreign inflows front for India in 2023 but issues such as delay in enforcement of contracts, cumbersome procedures and high are still sore points. According to the latest world investment report 2022 of UNCTAD, the recovery of greenfield investment in industry remains fragile, especially in developing countries. It has also stated that the fallout of the war in Ukraine with the triple food, fuel and finance crises, along with the ongoing COVID-19 pandemic and climate disruption, are adding stress, particularly in developing countries. India has so far received healthy foreign direct investment (FDI) in 2022. As per the latest figures of the government, India has received foreign investments worth USD 42.5 billion during January-September 2022. It stood at USD 51.3 billion in 2021. The country has registered its highest-ever total FDI inflows of USD 84.84 billion in 2021-22. FDI equity inflows into India, however, contracted by 14 per cent to USD 26.9 billion during the April-September period this fiscal. The total FDI inflows (which include equity inflows, reinvested earnings and other capital) too has declined to USD 39 billion during the first half of this fiscal as against USD 42.86 billion in the year-ago period. Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Anurag Jain said India is the preferred investment destination due to series of measures such as liberalisation in the FDI policy, steps to further promote ease of doing business, reducing compliance burden for industry, rollout of the PLI schemes and the PM GatiShakti National Master Plan for integrated infrastructure development. "For the past eight consecutive years, a new record FDI flow into the country has been set. However, given the challenges of sluggish economic growth and geopolitical realities, there are bound to be challenges in times ahead," Jain told PTI. He added that players worldwide are keen to avail the benefits of the PLI schemes and several global firms are looking to shift their manufacturing bases to India. Development of the National Single Window System (NSWS) portal is completely changing the way businesses used to seek approvals and it will also help investors to come to India, Jain said, adding free trade agreements with the UAE and Australia too will help attract healthy FDI inflows in 2022-23. The PLI scheme was announced for 14 sectors, including white
to come to India, Jain said, adding free trade agreements with the UAE and Australia too will help attract healthy FDI inflows in 2022-23. The PLI scheme was announced for 14 sectors, including white goods, telecom and auto components with an outlay of Rs 1.97 lakh crore to enhance India's manufacturing capabilities and exports. So far, 650 applications have been approved under 13 sectors. The RBI has projected a growth rate of 6.8 per cent for 2022-23. Experts have also exuded confidence that reform measures taken by the government would help India attract robust FDI inflows in 2023. Rumki Majumdar, Economist, Deloitte India, said going forward, the country's relatively better performance and strong growth outlook will help it stand out as an investment destination. She said that FDI from the US has dried up, but there is a healthy rise in the equity inflows from Japan, Singapore, the UK, and the UAE in the first half of 2022-23. "This shows that there is a rising confidence among global investors to invest in India and India's inflows are becoming more diversified," she noted. Kartik Ganapathy, Senior and Founding Partner, Induslaw, too said India's growth appears to be driven by a positive increase in domestic consumption, growth of services and the digital economy, and increased infrastructure spending. "In this backdrop, India remains an attractive destination for investment," Ganapathy added. The US central bank has increased its benchmark lending rate several times and has warned of more hikes to contain inflation. The ongoing Russia-Ukraine war too is disrupting global supply chains, adding pressure on the global economy. Total FDI into India has reached USD 887.76 billion between April 2000 to September 2022. About 26 per cent of the FDI came through the Mauritius route. It was followed by Singapore (23 per cent), the US (9 per cent), the Netherlands (7 per cent), Japan (6 per cent) and the UK (5 per cent). The UAE, Germany, Cyprus, and Cayman Islands accounted for 2 per cent each. The key sectors which attracted the maximum FDI include services segment, computer software and hardware, telecommunications, trading, construction development, automobile, chemicals and pharmaceuticals. Although FDI is allowed through the automatic route in most of the sectors, in certain areas such as telecom, media, pharmaceuticals and insurance, government approval is required for . Under the government approval route, a foreign investor has to take prior nod of the respective ministry or department, whereas for the automatic route, an overseas investor is only required to inform the Reserve Bank of India (RBI) after the investment is made. At present, FDI is prohibited in as many as nine sectors -- lottery, gambling and betting, chit funds, nidhi company, real estate business, and manufacturing of cigars, cheroots, cigarillos and cigarettes using tobacco. FDI is important as India would require huge investments in the coming years to overhaul its
real estate business, and manufacturing of cigars, cheroots, cigarillos and cigarettes using tobacco. FDI is important as India would require huge investments in the coming years to overhaul its infrastructure sector to boost growth. Healthy growth in foreign inflows helps maintain the balance of payments and the value of the rupee.
India's new EV policy allows imports from any country, including China: Official India has no restrictions on the import of electric vehicles from any country, including , under a new , a senior government official told a TV channel on Tuesday. Last month, the Indian government approved the new EV policy, under which import duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of USD 500 million. The companies that would set up manufacturing facilities for EV passenger cars will be allowed to import a limited number of cars at lower customs/import duty of 15 % on vehicles costing USD 35,000 and above for five years from the date of issuance of the approval letter by the government. At present, cars imported as completely built units attract customs duty ranging from 70-100 %, depending on the engine size and cost, insurance and freight value less or above USD 40,000. The govt later said that the policy will not impact domestic players and on the contrary, expand the Indian electric vehicles market. "We are not trying to, you know, tailor a package for anybody. This is open to everybody. The idea is to kickstart the four- wheeler e-car manufacturing in India, with very stringent kind of value-addition norms, while also ensuring that we allow imports in a very limited quantity. we will be allowing only 8,000 for a company in a year and a maximum cap of 40,000. It's not zero (duty," Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Rajesh Kumar Singh said last month. However, a report of think tank ( ) warned that the new EV policy may lead to large-scale entry of Chinese auto firms in the local market. The GTRI report said that in the "next few years, every third electric vehicle and many passenger and commercial vehicles on India roads could be those made by Chinese firms in India alone or through Joint Venture with Indian firms". Notably, Chinese EV giant has already entered the Indian market and has plans to cover 90 % of the market this year itself. Last year in November, China's largest automaker SAIC Motor inked a joint venture (JV) agreement with the JSW Group to accelerate the transformation and growth of MG Motor in India. Many experts, however, backed the new electric vehicle policy saying that it help the country become a global manufacturing hub for future mobility solutions. "The policy not only aims to attract global EV majors to invest in India but also emphasises a significant Domestic Value Addition (DVA) criteria, ensuring the creation of a robust supply-side ecosystem," (ACMA) President Shradha Suri Marwah told PTI last month. Senior Vice President and Group Head -- Corporate Ratings -- Shamsher Dewan said the policy would help access global technologies, expand the product range, and improve cost competitiveness, all of which would facilitate enhanced EV adoption. "Further, countries that have been front-runners in EV adoption have also
technologies, expand the product range, and improve cost competitiveness, all of which would facilitate enhanced EV adoption. "Further, countries that have been front-runners in EV adoption have also developed a local vendor ecosystem. This policy is a step in the right direction and would aid in increasing EV components localisation in India, which is currently at 30-40 %," Dewan stated. (With agency inputs)
Auto parts industry reports highest ever revenue of INR 4.2 lakh crore New Delhi: With the increased production and sales in the first half of FY 22 due to recovery in auto industry, the cumulative revenue of India’s auto component makers jumped 23% to INR 4.2 lakh crore. However, the industry lost almost USD 600 million owing to the falling rupee, according to the data issued by the Automotive Component Manufacturers Association ( ) on Monday. Despite reporting the highest-ever revenue in rupee terms, auto component business in dollar terms stood at USD 56.5 billion in the last financial year compared to the peak sales of USD 57.1 billion in FY19 . Component sales to original equipment manufacturers (OEMs) surged 22% to INR 3.41 lakh crore in FY22. Exports grow by 43% to INR 1.41 lakh crore. Enhanced raw material prices, consumption of increased value-added components and shift in market preference towards larger and more-powerful vehicles contributed to the increased turnover of the auto-components sector, the industry body noted. The turnover of the aftermarket segment rose to INR 74,203 crore in FY22 from INR 64,524 crore in FY21. According to Sunjay Kapur, President, ACMA, and Chairman, Sona Comstar, whilst the automotive value-chain faced significant disruptions over the last two years in wake of the pandemic, vehicle sales, especially in the PV, CV and tractor segments now seem to have reached the pre-pandemic levels. "Of late, there has been some moderation in the supply-side issues of availability of semiconductors, the raw-material costs and constraints in the availability of containers continue. Increased value addition for regulatory compliance, fast recovery in external markets and traction in the domestic market, both OEMs and aftermarket, have contributed to the remarkable growth of the auto components sector in FY 2021-22," Kapur added. On the outlook, Kapur said with a slew of new launches, vehicle sales are expected to gain traction during the festive season. Further, he added increased focus by the auto industry on deep-localisation and the announcements of the PLI schemes by the Government on Advanced Chemistry Cell (ACC) Batteries and Auto and Auto Components will facilitate the creation of a state-of-the-art automotive value chain and aid in developing India into an attractive alternative source of high-end auto components, he said. "The component industry is also transforming itself as sales of two and three-wheeler EVs gain traction. I am hopeful that the buoyancy in the market will continue through the year and that FY22-23 will witness a healthy performance. Poor off-take of two-wheelers, increase in cost of insurance, high inflation, excessive fuel cost and extreme logistics costs are some of the issues of concern to the industry and do need urgent Government attention," Kapur noted.
35,000 autos plying illegally in Bengaluru; no staff to monitor : Autorickshaw drivers demanding exorbitant fares and refusing to ply may be common in the city, but the vehicle you flag down to take a ride may itself be illegal. According to the transport department, there are around 35,000 illegal autorickshaws plying on city roads. VK Moosa, regional transport officer (autorickshaws), Shantinagar, said, “We issued 1.35 lakh autorickshaw permits in Bengaluru so far, but only 1 lakh are plying with proper documents and fitness certificates.” He said even if the authorities seize all illegal autorickshaws, there is no place to park them. “Traffic police are facing a space crunch on their station premises, so they are not taking any action. We also have a severe shortage of staff for enforcement,” he said. He said FCs of autorickshaws should be renewed once every two years. “But these 35,000 permit holders are not coming forward to renew them. They may be plying without insurance too,” Moosa said. C Sampath, general secretary, , admitted there are several illegal autorickshaws in the city. “The main reason some drivers refuse to ply to some locations is they might not have a permit FC. The transport department along with traffic police, legal metrology department, and insurance companies should conduct special camps to regularise illegal autos. Those drivers are also ready to follow the rules, but the authorities will not allow this as they cannot harass and collect bribes from poor drivers if they have all the documents,” he said. Two-stroke autos illegal, but 10k still operate While registration of two-stroke autos in the city was stopped in 2005, many still ply on adulterated fuel and pollute the environment. In 2017, the government announced a subsidy of Rs 30,000 each for two-stroke drivers to switch to four-stroke LPG autos. However, drivers demanded that the amount be increased to Rs 50,000 as a new auto costs around Rs 2 lakh. While the transport department recommended increasing the subsidy, the finance department rejected it. Two-stroke autos were supposed to be banned in the city from April 2018 but it came into effect two years later. “It’s illegal to run two-stroke autos, but around 10,000 are still plying,” he admitted. Sources claimed many two-stroke auto drivers who scrapped their vehicles are yet to get subsidy. Sampath said his union has a list of 30 drivers who scrapped such autos. “Of them, 13 have submitted all documents to the transport department, but not one has received subsidy.” The transport department, however, said the amount allocated (Rs 30 crore) for this purpose has lapsed and the government has diverted it for other requirements. Meanwhile, the department’s proposal to introduce Aadhaar-based e-permits for autos is gathering dust. Many financiers are alleged to be in possession of multiple permits under different names. Aadhaar-based permits will expose such violations. Also Read:
ASK Automotive raises INR 250 cr from anchors; IPO opens today New Delhi: Auto ancillary player on Monday said it has mobilised a little over INR 250 crore from anchor investors ahead of its initial share sale which opens for public subscription on Tuesday. The company has allotted 88.71 lakh equity shares to 25 funds at INR 282 apiece, which is also the upper end of the price band, according to a circular uploaded on the website. At the price, the company has garnered INR 250.17 crore from anchor investors. (Singapore) Pte, Copthall Mauritius Investment Ltd, BNP Paribas Arbitrage, Societe Generale, Goldman Sachs Fund, , , Bajaj Allianz Life Insurance Company, Nippon India Mutual Fund (MF), Tata MF and Edelweiss MF are among the anchor investors. The is an offer for sale (OFS) of 2,95,71,390 equity shares by promoters -- Kuldip Singh Rathee and Vijay Rathee. Since the IPO is completely an OFS, the entire proceeds will go to shareholders divesting their shares. The issue, with a price band of INR 268-282 per equity share, will be open for subscription during November 7-9. At the upper end of the price band, the IPO is expected to fetch INR 833.91 crore. Gurugram-based ASK Automotive is one of the largest manufacturers of brake-shoe and advanced braking (AB) systems for two-wheelers in India with a market share of approximately 50% in Fiscal 2022. The firm supplies safety systems and critical engineering solutions with in-house designing, developing, and manufacturing capabilities. Its offerings are powertrain agnostic, catering to electric vehicles (EV) as well as internal combustion engine original equipment manufacturers. The company has clients including , , Greaves Electric Mobility, and . , Axis Capital Ltd, , and IIFL Securities Ltd are the book-running lead managers to issue. The equity shares are proposed to be listed on the BSE and NSE.
Shivam Autozone: A beacon of Maruti Suzuki excellence in Mumbai has firmly established itself as Mumbai’s most esteemed dealership. With a legacy spanning over a decade, Shivam Autozone has consistently delivered exceptional sales, service, and customer satisfaction, earning its place as a trusted name among car buyers. The dealership's commitment to providing a seamless and enjoyable car-buying experience is reflected in its state-of-the-art showroom facilities. The spacious and well-organised showrooms feature a diverse range of Maruti Suzuki models, catering to various customer preferences and budgets. From compact hatchbacks to premium SUVs, Shivam Autozone offers a comprehensive selection of vehicles to suit every lifestyle. Founded by Samir Jani, Shivam Autozone operates over 25 locations across Mumbai, Thane, and Palghar. It serves a broad spectrum of car buyers through its presence in all four Maruti Suzuki channels: Arena, NEXA, Commercial, and True Value. Shivam Autozone's dedication to customer satisfaction extends well beyond sales. Its service centers are equipped with advanced diagnostic tools and staffed by highly skilled technicians who ensure that every vehicle receives top-notch care. From routine maintenance to complex repairs, Shivam Autozone provides efficient and reliable service, keeping customers’ vehicles in optimal condition. The dealership also prioritises customer convenience by offering a range of value-added services. These include finance options, insurance plans, and accessories, all designed to make the car-buying process as hassle-free as possible. Shivam Autozone’s success can be attributed to its unwavering focus on customer satisfaction. By consistently delivering exceptional service, competitive pricing, and a personalised buying experience, the dealership has built a loyal customer base and earned a reputation for reliability and trustworthiness. This commitment has made it a preferred choice for those seeking a Maruti Suzuki vehicle in Mumbai. Shivam Autozone's enduring presence in Mumbai’s automotive market is a testament to its commitment to excellence. The dealership’s combination of quality products, exceptional service, and customer-centric approach has made it a beacon of Maruti Suzuki excellence in the city. Whether you're looking to purchase a new Maruti car or need reliable after-sales service, Shivam Autozone is the ideal destination for all your automotive needs. For more information, visit .
Bajaj Auto working on CNG bike, to hit road in June is developing a portfolio of clean fuel CNG motorcycles, and the first such bike will hit the market in June, Managing Director said here on Friday. The bike will run on CNG and would hit the roads in June, he said while announcing commitment of INR 5,000 crore towards ( ) spent over the next 5 years. The new bike would target mileage-conscious consumers and is expected to launch under a different brand. It is expected that CNG bikes will be priced higher than their petrol counterparts due to the higher cost of manufacturing besides having a special tank to offer petrol and CNG fuel options to offer convenience to customers. Bjaja also said that Pulsar launched 20 years ago will hit 2 million units soon. Meanwhile, the Bajaj Group committed INR 5,000 crore to social impact initiatives over 5 years, with a focus on skill development, under 'Bajaj Beyond'' the Group's new identity for all its CSR and charitable programmes. This will benefit over 2 crore of tomorrow's youth and enable them to take advantage of the employment and entrepreneurial opportunities offered by India's growing economy. "Social responsibility is deeply entwined in the Bajaj Family's businesses and its philanthropic endeavours through generations. In the last 10 years alone, the Bajaj Group has contributed close to INR 4,000 crore towards CSR initiatives largely focused on skilling and education, health, livelihood, water conservation, and several other areas of development," Bajaj Auto Chairman Niraj Bajaj said. The Bajaj Group's humanitarian efforts are channeled through several institutions. The , Jankidevi Bajaj Gram Vikas Sanstha, and the Kamalnayan Bajaj Hospital, among others, have worked unceasingly to uplift and empower communities, he said. The Group stays firmly committed to co-creating a thriving and inclusive future for all Indians, he added. Bajaj Group companies include Bajaj Auto, , , and . "Launching the Bajaj Engineering Skills Training (BEST) last year has been a valuable learning experience for us. It gave us a very clear picture of the critical gap between theoretical education and practical skills needed in the manufacturing industry. The insights gained through BEST acted as a cornerstone in laying down the groundwork. With Bajaj Beyond, we will expand our skilling efforts across the group," Rajiv Bajaj said. Speaking at the event , Chairman & Managing Director, Bajaj Finserv, said, "Skilling has been at the heart of our social impact initiatives and we have seen the positive multiplier effect it has on the well-being of youth and their families. Our Certificate Programme in Banking, Finance and Insurance (CPBFI) prepares youth for employment in the fast-expanding financial services sector which is currently seeing a shortage of talent." With Bajaj Beyond, Bjajaj Finserv commits to strengthening India's skilling ecosystem, especially in the hinterland, enabling greater access to economic prosperity, he
seeing a shortage of talent." With Bajaj Beyond, Bjajaj Finserv commits to strengthening India's skilling ecosystem, especially in the hinterland, enabling greater access to economic prosperity, he added.
China bets on open-source chips as US export controls mount When a Beijing-based military institute in September published a patent for a new high-performance chip, it offered a glimpse of China's bid to remake the half-trillion dollar global chip market and withstand U.S. sanctions. The People's Liberation Army's (PLA) Academy of Military Sciences had used an open-source standard known as RISC-V to reduce malfunctions in chips for cloud computing and smart cars, the patent filing shows. RISC-V is an instruction set architecture, a computer language used to design anything from smartphone chips to advanced processors for artificial intelligence. The most common standards are controlled by Western companies: x86, dominated by U.S. firms Intel and Advanced Micro Devices, and Arm, developed by Britain's Arm Holdings, owned by SoftBank Group. U.S. and UK export controls prevent the sale of only the most advanced x86 and Arm designs - which produce the highest-performance chips - to clients in China. But as the U.S. widens restrictions on China's access to advanced semiconductors and chip-making equipment, the open-source nature of RISC-V has made it part of Beijing's plan to curb its dependence on Western technology, although the emerging architecture accounts for a fraction of the chip market. "The biggest advantage of the RISC-V architecture is that it is geopolitically neutral," the Shanghai government's Science and Technology Commission said in a report published in April. Beijing and dozens of Chinese state entities and research institutes, many sanctioned by Washington, invested at least USD 50 million in projects involving RISC-V between 2018 and 2023, according to a Reuters review of over 100 Chinese-language academic articles, patents, government documents and tenders, as well as statements from research groups and companies. While the figure is modest, recent RISC-V breakthroughs and applications in China, many with government funding, have raised Beijing's hopes that the open-source standard could one day threaten the x86-Arm duopoly, according to state media. Intel and AMD did not respond to questions about the matter, while Arm declined to comment. RISC-V chips made by Chinese firms and research institutes can now power self-driving cars, artificial-intelligence models and data-storage centres, according to two industry figures and the previously unreported documents. The military science academy did not respond to a request for comment sent via China's State Council. GROWING MATURITY Arm and x86 are closed architectures, meaning they are proprietary and charge users a license fee. Their outlines are thousands of pages long, with complex instructions and numerous incompatible versions that can only be modified by their developers. RISC-V is free to use and has a simpler outline, often leading to more energy-efficient chips, and users can build atop the framework to suit their needs. Half of the more than 10 billion RISC-V chips shipped
free to use and has a simpler outline, often leading to more energy-efficient chips, and users can build atop the framework to suit their needs. Half of the more than 10 billion RISC-V chips shipped globally by 2022 were made in China, the state-run China Daily reported in August. Bao Yungang, deputy director of China's Institute of Computing Technology, told a chip conference last June that funding for RISC-V startups in China had reached at least USD 1.18 billion to that point. "The RISC-V ecosystem in China is the most mature globally", a result of the need of government and industry to develop technology that can circumvent U.S. sanctions, said a sales representative from a Beijing-based company that develops RISC-V chips, who was not authorised to speak publicly. Some 1,061 patents involving RISC-V were published in China last year, up from 10 in 2018, Anaqua's AcclaimIP database shows. While the U.S. saw a similar increase, 2,508 such patents have been published in China, to the U.S.'s 2,018. Chinese tech giants Alibaba and Huawei, neither of which responded to requests for comment, were the fourth- and fifth-largest filers. Arm is the dominant architecture in China, so RISC-V is a long-term bet to insure Beijing against a scenario in which Arm is forced to not just halt licensing to Huawei, as it did temporarily in 2019, but to all Chinese companies. While the performance of RISC-V chips lags Arm in complex computing tasks, the gap is closing as RISC-V startups proliferate and more tech companies invest in the open-source standard, said , principal analyst at the SHD Group, a market research firm. 'TRUE RISE TO POWER' RISC-V technology emerged last decade from labs at the University of California, Berkeley. A few months after Huawei was blacklisted by the Trump administration in May 2019, RISC-V International, a non-profit foundation that oversees development of the standard, moved its headquarters from Delaware to Switzerland. Calista , CEO of RISC-V International, told Reuters the move was not to "circumvent any legal restriction by any government" but "to ensure continued ecosystem growth of the open standard for years to come". Still, the foundation says on its website that the move alleviated uncertainty as there was concern from the RISC-V community "across 2018-2019" related to the geopolitical landscape, without mentioning China. Reuters reported in October that some U.S. lawmakers were urging the Biden administration to impose export restrictions around RISC-V, a move that Redmond has said would slow the development of new and better chips. The U.S. Department of Commerce's Bureau of Industry Security declined to comment. For China, there has been a geopolitical incentive to invest in the emerging standard. In 2019, researchers at the University of Electronic Science and Technology of China organised a seminar on how RISC-V could help China achieve tech self-sufficiency. "Everyone agreed...if domestic chip systems want to get rid
University of Electronic Science and Technology of China organised a seminar on how RISC-V could help China achieve tech self-sufficiency. "Everyone agreed...if domestic chip systems want to get rid of the limitations of x86 and ARM architectures and realise a true rise to power, RISC-V will be the biggest opportunity," says a summary of the seminar published on the university's website. Among recent breakthroughs in China, state-owned car maker Dongfeng Motor Corporation last year developed an automotive MCU chip, used to control the electronic systems of a car, using RISC-V. Dongfeng and China's Ministry of Science and Technology did not respond to requests for comment. MILITARY INTEREST Universities and research institutes linked to China's military have also developed and promoted RISC-V in recent years, Reuters' review found. The PLA-run National University of Defense Technology was in the top 15 for RISC-V patents filed in China since 2018, according to AcclaimIP, as was , which has partnerships with at least two defence-related institutes. At an academic conference in November 2022, researchers at Beihang University, whose scientists are involved in the development of Chinese military aircraft and missiles, presented the design for a RISC-V chip that processes radar signals. The year prior, researchers at the Institute of Software at the Chinese Academy of Sciences (CAS), a state think tank, co-developed a RISC-V chip to prevent a type of cyberattack. The institute is a PLA supplier, government tenders show. In May 2023, the CAS Institute of Computing Technology, which is under U.S. sanctions, unveiled the second generation of "Xiangshan", a RISC-V high-performance PC chip, and "Aolai", a RISC-V operating system. Interest from the Chinese institutes and universities, which did not respond to queries, echoes investment in RISC-V research labs and companies a decade ago by the U.S. government's Defense Advanced Research Projects Agency. An agency spokesperson said that while it did not directly fund the development of the RISC-V architecture, it funded efforts that used RISC-V to "create prototype chips and test research hypotheses in the interests of U.S. national security". Despite its promise, RISC-V so far has not broken x86 and Arm's dominance. The SHD Group estimated that 1.9% of all system-on-a-chip units shipped in 2022 had a RISC-V processor. But with demand for AI chips growing, RISC-V's low cost, ease of customisation and energy efficiency have made it attractive to some chipmakers. Original equipment manufacturers "want to develop highly customized cores. And RISC-V really fits that bill," , Qualcomm's senior vice president of product management, said in an interview published on the company's website in September. (USD 1 = 7.1497 Chinese yuan renminbi)
Chauffeur to India Inc, Ecos Offers Growth Ride in Mobility Ecos (India) Mobility and Hospitality, a provider of corporate car rental services, plans to raise ₹601 crore through an offer for sale by promoters, which will reduce their stake to 98% from 68%. The company has access to over 12,500 vehicles, ranging from economy to luxury cars, but only 6% of the fleet is owned by the company. This asset-light business model supports a high return on equity (RoE). The growing share of the organised market for employee transportation services driven by the expansion of global capability centres (GCCs) augurs well for the company. Given these factors, investors may consider the . Business: Founded in 1996, New Delhi-based operates in two segments: employee transportation services (ETS), which contributes two-thirds to the revenue and the rest is from chauffeur (CCR). The company provides services across 109 cities in India, although nearly 60% of the revenue comes from four metro cities: Bengaluru, Gurugram, Mumbai, and Hyderabad. The company’s clients include InterGlobe Aviation, HCL Corp, Safexpress, Deloitte, IndusInd Bank, and HDFC Life Insurance. Over 57% of the clients have been with the company for over five years. The combined market size for ETS and CCR in India is approximately ₹1 lakh crore, with organised players capturing 15% and 22% of the respective markets. Financials : Revenue increased by 94% annually to ₹554 crore between FY22 and FY24. Net profit rose to ₹62.5 crore from ₹9.8 crore while earnings before interest, tax, depreciation, and amortisation (Ebitda) grew by 123% to ₹89.9 crore during the period, achieving an Ebitda margin of 16.2%. It had a return on equity (RoE) of 70% in FY24. Risks: The ETS and CCR market is highly competitive with low barriers to entry, providing little competitive moat. Ecos Mobility’s business relies on relationships with vendors who supply vehicles and chauffeurs; any adverse changes in these relationships or inability to establish new ones could negatively impact the business. Valuation: The company seeks a price-earnings (P/E) multiple of 32 based on FY24 numbers. While there are no directly comparable listed players on the main board, Wise Travel and Shree OSFM, listed on the SME platform, trade at 25-28 times earnings but with lower RoE.
Sanjiv Bajaj takes over as CII president Mumbai: Bajaj Finserv’s chairman and MD has assumed office as the president of the ( ) for FY23. He takes over from MD & CEO . Bajaj, the president-designate for FY22, had earlier headed a CII committee on insurance & pensions and a task force on fintech. A Harvard Business School alumnus and a member of Indian School of Business’s board, Bajaj is also on the international technology advisory panel of the Monetary Authority of Singapore. chairman and CEO Pawan Munjal has taken over as CII president-designate for FY23. TNN Munjal was earlier chairman of CII northern region from 1996 to 1997 and has led CII committees on sports, environment and technology & innovation. Under his leadership, Hero MotoCorp became the world’s number one two-wheeler company in 2001 and has retained the position.

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