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Assisted driving systems struggle with collision tests: Study installed in Tesla Inc, Hyundai Motor Co and Subaru Corp vehicles failed to avoid head-on collisions in testing done by AAA, though Tesla's did slow the vehicle to a walking speed before striking an oncoming, foam model of a car. The AAA, a U.S. consumer and travel services organization, said the tests illustrate how current assisted driving and automated braking systems fall short of true autonomous driving, and require drivers to stay in control of vehicles. A fast-growing number of new vehicles are equipped with , or , that partially automate functions such as steering, staying in a lane and braking. Tesla's Autopilot is one of the best-known such systems, but most major automakers offer similar technology. Regulators, auto insurers and automakers warn that ADAS systems cannot safely substitute for a human driver's full attention. In their latest study of the limitations of assisted driving technology, researchers for AAA set up four scenarios for the three tested models: Overtaking a dummy car traveling in the same direction as the tested vehicle; overtaking a dummy cyclist heading in the same direction; confronting a dummy car on a head-on collision course at 25 miles per hour; and avoiding a dummy bicycle rider crossing the test car's path. All three tested vehicles detected and avoided hitting the dummy vehicles and cyclists traveling in the same direction, ahead of the tested vehicles, AAA said. But the Hyundai Santa Fe and Subaru Forester did not appear to detect or slow to avoid colliding with the foam dummy vehicle during a simulated head-on collision, AAA said. The Model 3 did automatically hit its brakes when it detected the oncoming dummy car, slowing to 3.2 miles per hour or slower before colliding with the dummy car. Tesla did not reply with comments on the study. Hyundai said in a statement it "is reviewing the findings in AAA's report as part of our ongoing commitment to customer safety." Subaru is looking into the AAA test to understand the methodology and does not have a detailed response at this time, spokesman Dominick Infante said in an email. The automaker has improved its EyeSight assisted driving system for the 2022 model year Forester, he added. AAA said a Subaru Forester it tested failed to detect a simulated bicycle rider crossing its path in five test runs. A Tesla Model 3 and a Hyundai Santa Fe did see and brake for a dummy cyclist crossing their paths. Also Read:
Mahindra Last Mile Mobility sells 40,000 E3Ws in 8 months of FY24 New Delhi: Last Mile Mobility Limited (MLMML), a subsidiary of Mahindra & Mahindra Limited, in the 8 months of FY24 sold 40,000 EVs fuelled by the launch of two new products – and e-Alfa Super rickshaw and cargo variants. It continues to dominate the electric three-wheeler market. Building on its success, MLMML so far has sold over 1.4 Lakh electric vehicles and has a market share of 9.3% in the electric three-wheeler space in India. In the L5 EV category, MLMML is the leader with a 55.1% market share, YTD FY24, the company said in a media release. This significant achievement showcases the accelerating demand for Mahindra's electric vehicles and highlights the company's commitment to pioneering sustainable last-mile mobility solutions. To meet this sustained demand for three-wheeler EVs, production has been increased threefold. MLMML’s manufacturing plants are situated in Bengaluru, Haridwar and Zaheerabad, the release said. , MD and CEO, MLMML said, “In FY24, our customer-first approach has helped intensify our efforts to electrify the last mile transportation space. Sales of 40000 e-3-wheelers within eight months reflects the inclusive income generation our EVs accord to the drivers. We’re committed to enhancing our customer’s lives by consistently delivering value-for-money, innovative and sustainable last-mile mobility solutions." As part of its customer-centricity approach, Mahindra Last Mile Mobility Limited offers the UDAY program. This program, on purchase of a MLMML EV, provides drivers with an accident insurance cover of INR 10 Lakh for the first year, the release added.
Stellantis Ventures to aid ‘Dare Forward 2030’ plan, makes 11 key Investments , the corporate venture fund of N.V., has been formed to support and amplify the execution of Dare Forward 2030 strategic plan. Ten startup companies and one mobility venture fund have been considered so far as its first key investments. Three of the projects backed by Stellantis Ventures are launching this year, validating the fund’s mission to accelerate deployment of innovative, customer-centric mobility technologies and support Stellantis’ Dare Forward 2030 efforts in leading the change to a more sustainable mobility and better in-vehicle experience for all customers. “Transforming Stellantis into a mobility tech company means we need to have the mindset of a startup, focused on our customers and working with a dash of impatience,” , Stellantis Chief Technology Officer, said. “We are using the strength of Stellantis Ventures to connect with companies that are developing cutting-edge technology that we believe can transform the in-cabin experience and improve the mobility sector, for our customers and for society as a whole.” Investments support the Dare Forward 2030 strategy and are aligned to the three core pillars: Care, Tech and Value. 6K: 6K enables advanced sustainable manufacturing to ensure clean, low-carbon emission material production. 6K’s UniMelt plasma process is a cutting-edge platform for producing domestic sustainable critical materials for EV batteries, 3D printing, and endless other applications. 6K delivers true sustainable manufacturing - faster, cleaner, and at a lower cost. Beweelsociety : Beweelsociety, a startup with roots inside Stellantis, is a developer of connected e-bikes and provider of a wide range of services from purchasing to cycling through one unique digital app, including financing, insurance, facilitation and care services (maintenance, anti-theft). Expanding the vision beyond traditional auto, beweelsociety helps Stellantis accelerate the growth of sustainable and soft mobility. The first e-bikes will be available to purchase from specialized cycling networks and technology-focused retailers in Europe, starting the last quarter of 2023. NetZero: NetZero is a climate venture specializing in long-term carbon removal from the atmosphere by turning agriculture residues into biochar, a very stable form of carbon. Biochar can be mixed with agricultural soils, improving yields and reducing the need for fertilizers. NetZero’s mission is to bring biochar at scale in the tropics - for climate and people. Nauto: Nauto deployed artificial intelligence and computer vision technology combined with advanced risk data science to over 800 commercial fleets to help save money and lives through safer driving. Nauto’s safety system assesses both driver behavior risk and external road risk, warning and coaching drivers to reduce distracted driving and prevent collisions in real time while respecting driver privacy. Nauto Cloud and mobile
both driver behavior risk and external road risk, warning and coaching drivers to reduce distracted driving and prevent collisions in real time while respecting driver privacy. Nauto Cloud and mobile applications help fleet safety and risk managers operate fleets more efficiently, identify and coach at-risk drivers, and accelerate claims processing. The Nauto solution will be available this summer in the United States on Stellantis commercial fleet vehicles. Trails Offroad: Staffed by off-road experts and enthusiasts, Trails Offroad offers a digital library of more than 3,000 detailed offroad trail guides throughout the United States and Canada that can be loaded in the Jeep Uconnect system. Each trail guide provides detailed information including route description, key waypoints, difficulty ratings, points of interest, videos and reviews. Beginning in summer 2023, select new Jeep® vehicles will have access to over 200 notable trail guides, including the 62 Jeep Badge of Honor trails. The full catalog will be offered as a subscription service. Viaduct: Viaduct is an artificial intelligence platform designed to improve vehicle analytics for quality and maintenance. The platform deploys its machine learning algorithms to identify anomalies in fault and sensor data, predict vehicle health and enhance preventative maintenance routines, making vehicles safer, more reliable, and personalized. Geoflex: Geoflex is a worldwide operator of satellite positioning augmentation technology designed to augment accuracy, integrity, and continuity of operation of all global navigation satellite systems receivers, whatever the brand is. Its hypergeolocation services provide accurate, safe and resilient positioning down to 4 cm accuracy everywhere in the world, on land, at sea and in the air. Envisics: Envisics is a globally renowned pioneer of dynamic holographic technologies and its application for augmented reality head-up displays (AR-HUDs) and automotive sensor systems. The advancement of Envisics technology has the opportunity to transform automotive displays and revolutionize the in-car experience. Electra Vehicles: Electra Vehicles, a leading provider of battery software solutions for electric mobility. Electra provides active and adaptive controls for battery management systems, predictive battery analytics and battery pack design software. With embedded and cloud-based artificial intelligence and machine learning (AI/ML) battery enhancement features, Electra aims to maximize the full potential of battery power to enable electric mobility to take us further. : Lyten created Lyten 3D Graphene, a unique decarbonization materials platform tunable for a wide range of advanced applications: lightweight composites for reduced vehicle weight, advanced sensors to improve driver experience, and a breakthrough highly sustainable lithium-sulfur battery that uses zero nickel, cobalt or manganese, has higher energy density, lower carbon footprint, and enables supply
driver experience, and a breakthrough highly sustainable lithium-sulfur battery that uses zero nickel, cobalt or manganese, has higher energy density, lower carbon footprint, and enables supply chain independence. Stellantis Ventures will be present at MOVE 2023 on June 21-22 as an exhibitor on booth #36 and a main speaker, delivering the opening keynote on June 22 titled “Start Me Up! The central role of incubators in driving mobility forward”, and joining a panel discussion on “The start-up ecosystem and the unicorn journey”. Stellantis Ventures is not disclosing the name of the mobility venture fund investment. Stellantis Ventures was announced in March 2022 as a key component of the Stellantis Dare Forward 2030 strategic plan. Dare Forward 2030 sets out a series of important targets, led by deep emission cuts to slash CO2 in half by 2030, benchmarking the 2021 metrics, and achieve carbon net zero by 2038 with single digit percentage compensation of the remaining emissions. Core targets for Dare Forward 2030 also include 100% of passenger car sales in Europe and 50% of passenger car and light-duty truck sales in the United States to be BEVs by the end of the decade; the ambition of doubling by 2030 (versus 2021) and sustaining double-digit Adjusted Operating Income margins throughout the decade; and the aim to become number one in customer satisfaction for its products and services in every market by 2030.
Oil prices rise on strong fuel demand data rose in early Asian trade on Thursday after strong demand for fuels in the US outweighed concerns about the possibility of the world's biggest oil producer and consumer defaulting on its debt. rose by 26 cents, or 0.34 per cent, to USD 76.67 a barrel by 0015 GMT. US crude futures rose 28 cents to USD 72.84. Latest US data showed consumer prices rose in April, increasing the likelihood that the will maintain higher interest rates which can have the knock-on effect of reducing oil demand. Rising global interest rates have weighed on oil prices in recent months, with traders concerned about . However, fuel demand in the US is showing signs of strength. US gasoline inventories fell by 3.2 million barrels last week, much more than the 1.2 million barrel draw forecast by analysts. Distillate stocks also declined, data from the US Energy Information Administration showed on Wednesday. US jet fuel demand rose to its highest level since December 2019. Meanwhile, detailed talks on raising the US government's USD 31.4 trillion debt ceiling kicked off on Wednesday with Republicans continuing to insist on spending cuts. The standoff has rattled investors, sending the cost of insuring exposure to US government debt to record highs, as Wall Street grows more concerned about the risk of an unprecedented default.
Explore free bus travel for labourers: Arvind Kejriwal New : Chief minister on Wednesday asked the to explore the possibility of providing all registered labourers in the capital free travel in public buses. He also directed officials to explore the possibility of providing subsidised housing to them. In a meeting to review the ongoing projects of the department, which was attended by labour minister Raaj Kumar Anand and senior officers, the chief minister also asked them to assess the possibility of providing group life insurance to the labourers. While there are 13.4 lakh workers registered under Delhi Building and Other Construction Workers Welfare Board, the number of those who have got the bus pass made for free travel is very less. Officials said the CM has directed the officials to explore the possibility of providing each worker with a free bus pass, in addition to those who are already availing of the facility. He asked the officials to discuss with the DTC whether the government can pay a standard charge for these passes and the workers can get to use the buses for free. "This way, the DTC will earn revenue and workers will also get a free bus pass. We can actively persuade these workers to come and collect their bus passes. A lot of people do not even know of the schemes available to them," he said. The Delhi government has already made the commuting of women passengers free in public buses. Kejriwal emphasised that the labour department should prepare a plan within a week for positive and effective use of the funds available with it. He further urged the department to speed up the registration of workers under various schemes. The CM said if government schemes are publicised properly, 25-30 lakh workers would get registered with the board. He said nearly 23.5 lakh workers were registered with the Centre's e-shram portal. "We have made so many schemes for our workers, but many don't come forward to avail them. We should try to get the workers to register under our schemes to provide them with maximum benefits," Kejriwal said. "Can we launch some 'carpet bombing' scheme where everyone is benefited? For example, during Covid, all workers were benefited regardless of whether they applied or not," the CM added. He asked the department to make disability related schemes more accessible. Kejriwal also directed it to start a scheme on the lines of the Jai Bhim Mukhyamantri Pratibha Vikas Yojana to provide free coaching to children of construction workers.
CEA V Anantha Nageswaran pegs medium term India growth at 6.5-7% The Indian economy is likely to grow 6.5-7% in the medium term, buoyed by a revival in the capital formation cycle, chief economic adviser (CEA) said, but warned that a proposed price limit by the West on Russian crude oil would be a matter of concern. The International Monetary Fund has forecast the economy to grow by 6.8% in the current fiscal year and 6.1% in the next. “Taking a baseline scenario of oil…under $100 (per barrel), our medium-term (growth) outlook would be closer to 6.5-7%, rather than closer to 6%, because the capital formation cycle will turn up and there are already insipid signs that it is happening,” Nageswaran said. He was speaking at a mid-term review of the Indian economy by the (NCAER) on Saturday. India’s balance of payments may be in deficit this year and the next, the CEA added, though it would be manageable, with the existing gold and foreign exchange reserves, as well as better remittances expected this year. “It’s not the end of the world because we do have about $530 billion (in reserves), and currencies alone about $480 billion worth of reserves at end of October,” Nageswaran said. “We should be able to ride through this space because FDI flows are stable.” The country could also face a problem of rupee appreciation next year, Nageswaran said. India’s growth cannot be completely decoupled from global risks, he added. NCAER’s review said the economy was showing growth and resilience in 2022 despite an unprecedented global environment. The next year is slated to be tougher and subject to uncertainty, NCAER said in its review. ET reported earlier in the week that Russia had become India’s biggest crude supplier in October. Led by the US, advanced economies have proposed a price cap for Russian crude for global buyers to create economic hardship for Moscow while ensuring that global energy supplies are not disrupted. Countries that violate the cap will not have access to key maritime services such as insurance. The price cap, which has yet to be decided, will kick in from December 5. “In this situation, what is really important for us to worry about is the oil price cap…(which) basically means insurance and shipping services will not be available to those who buy Russian crude...,” Nageswaran said. It could deny India cheaper Russian oil that has allowed New Delhi to keep import costs low. India imports 85% of its crude requirement. The chief economic adviser said given the way the limit had been structured, some contracts entered into before December 1 would not be subject to the ceiling, resulting in hoarding of crude by traders.
Passenger vehicles sales gather speed on Dhanteras Sales of cars, sedans and sports utility vehicles went up by nearly a tenth in the two days of , as consumers drove home their dream vehicles this festive season after the low-key celebrations seen the last two years on account of the pandemic. Senior industry executives and dealers ET spoke with said retail sales would have been even stronger if automakers were able to produce vehicles in line with underlying demand. With the industry still sitting on orders of 800,000-850,000 units, retail sales are expected to be robust in the remaining part of the year with increased component supplies helping automakers to step up production as well. Dhanteras is celebrated as the first day to mark the beginning of Diwali. Hindus, Jains and Sikhs buy brass, silver and gold on this day as it is regarded as one of the most auspicious days to purchase expensive objects. This year, Dhanteras was celebrated on October 22 and 23. Market leader is estimated to have delivered 21,000 units by the end of day two, up 8-9% over the same period last year. said on Sunday that its deliveries over the two days doubled compared with 2021. Automakers saw robust demand for new models, especially SUVs, such as the Maruti Suzuki Brezza and Grand , Hyundai Venue, Mahindra Scorpio and Tata Nexon. "Our Dhanteras retails have increased over last year, but are down by about a fifth when compared with average sales seen in the pre-Covid years," said Shashank Srivastava, senior executive director (marketing and sales) at Maruti Suzuki. The company currently has bookings for 450,000 units. "We are delighted with the growth this festive season. On the back of robust demand for our new range of cars and SUVs, our deliveries during Dhanteras more than doubled ... For the festive period so far, our retail growth has been 43% in FY23 compared to last year. Demand has been well supported this year with a significant ramp up in supply," said Shailesh Chandra, managing director of Tata Motors PVs and Tata passenger electric mobility. Two-wheeler makers saw improved sales across urban, semi-urban and rural markets, especially at the entry level where demand has been depressed for nearly three years due to a rise in acquisition, insurance, and running costs since the transition to BS-VI standards. Federation of Automobile Dealers' Association president Manish Raj Singhania said he expected strong retail sales across all categories of vehicles this festive period. Overall, passenger vehicle makers are expected to close the fiscal year with sales just shy of 4 million units. Two-wheeler sales are forecast to increase by 16-17%. Maruti Suzuki's Srivastava said with passenger vehicle sales clocking record numbers so far this year, the Dhanteras volumes appeared slightly out of line with expectations but mostly on account of production challenges related to most sought-after models. The industry though is on track to register record sales this year.
appeared slightly out of line with expectations but mostly on account of production challenges related to most sought-after models. The industry though is on track to register record sales this year. "There is a huge order backlog in the industry. It will be a record year for passenger vehicle sales. Only after pending orders are delivered, we will be able to assess the impact on demand in the coming months," he said. With new launches and sustained strength on the demand side, for the first time in history as many as 1,027,000 passenger vehicles were sold in the local market last quarter, up 38.5% from a year earlier. Read More:
Berkshire Hathaway boosts stake in Occidental Petroleum to 25% Hathaway Inc said on Wednesday it has acquired more shares of , boosting its stake in the oil company to above 25%. The conglomerate, controlled by billionaire , said in a regulatory filing that it paid about USD 122.1 million for 2.14 million shares between June 26 and June 28. Berkshire had also purchased about 4.66 million Occidental shares on May 30. 's company began buying shares of Houston-based Occidental early last year, around when Russia invaded Ukraine and as oil prices were rising. It also recently owned about USD 9.5 billion of Occidental preferred stock carrying an 8% dividend, plus warrants to buy another USD 5 billion of Occidental shares at USD 59.62 each. Berkshire bought the preferred stock and obtained the warrants in 2019 when it helped finance Occidental's purchase of Anadarko Petroleum Corp. At the annual shareholder meeting on May 6 in Omaha, Nebraska, Buffett praised Occidental's management and business, but said Berkshire was not planning to acquire the company. "We're not going to buy control," Buffett said. "We've got the right management running it." Berkshire had amassed a 22.6% stake in the BNSF railroad before paying USD 26.5 billion for the remainder in 2010. BNSF now generates about one-fifth of Berkshire's operating profit. Berkshire also owns dozens of other businesses including Geico car insurance and many energy, manufacturing and retail companies, as well as stocks such as Apple Inc.
Mahindra launches Jeeto Strong at a starting price of INR 5.2 Lakh New Delhi: Mahindra Last Mile Mobility Limited (MLMML), a subsidiary of Mahindra and Mahindra, Wednesday launched “Mahindra Jeeto at INR 5.28 Lakh for diesel and INR 5.55 Lakh for CNG, ex-showroom Pune. Jeeto Strong is made for last-mile cargo transportation with a payload capacity of 815 kg in diesel and 750 kg in CNG. According to the company, it stands out with best-in-segment mileage (32.00 kmkg in CNG), a first in a sub-2 tonne ICE cargo 4-wheeler - electric vacuum pump-assisted braking, a user-friendly brand-new digital cluster and improved suspension. Mahindra also offers free accidental insurance worth INR 10 Lakh for the driver, ensuring safety and security of its customers with a 3 Year or 72000 km warranty. Jeeto Strong is a successor to the Jeeto Plus (diesel & CNG) with 100 kg more payload than the latter. , Managing Director and CEO, MLMML, said, "At Mahindra, we constantly listen to customer feedback and their evolving needs. A testimony to our commitment to constant advancement - the Jeeto Strong – with its now unmatched payload capacity, superior mileage as well as attractive pricing makes for a compelling option in its segment. It will not only transform last mile cargo delivery but also the lives of our driver partners, allowing them to deliver more, save more, and achieve more.”
RBI holds rates, auto retail to stay flat and first time car buyers to defer entry as financing remains expensive New Delhi: The automobile manufacturers are rejoicing in the unprecedented growth of wholesale dispatches from factories last fiscal. Dispatches of vehicles, especially of passenger cars, reached an all-time high. Other vehicle segments have also fared better than expected, despite the comparison being on a high base of previous years. But this euphoria in factory dispatches masks the anxiety at the retail showrooms, where discounts are at unprecedented levels across price segments, particularly for the entry level cars and two wheelers, as sales remain weak. In this scenario, the decision of the this morning to keep lending rates unchanged at 6.5% would continue to badly impact the , especially entry level vehicles. The typical buyers of small cars and lower end bikes are extremely price sensitive. Given the continued inflationary trend without any relief in finance rates, these prospective buyers may continue to hesitate. “After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, it decided by a 5 to 1 majority to keep the policy repo rate unchanged at 6.5%,” , Governor of the Reserve Bank of India, said. Das pointed out some green shoots. He said rural demand, which was lagging urban demand earlier, picked up since Q2 (July-September) 2023-24. Rural markets account for a sizable portion of sales of entry level cars and bikes in India. “This is also suggested by performance of indicators such as two-wheeler sales (30.% growth during January-February), (Mahatma Gandhi National Rural Employment Guarantee Act) demand (declined by 9.8% year-on-year during February-March 2024) and retail tractor sales (increased by 16.1% in January-February)...With rural demand catching up, consumption is expected to support economic growth in 2024-25. Urban consumption stayed buoyant,” Das said. But are these green shoots enough to ensure growth in the new fiscal year? Even in a remarkable year (2023-24), two wheeler sales did not race past pre-Covid highs, pointed out Nikunj Sanghi, past President of the Federation of Automobile Dealers Association (FADA). Stress at the entry level segment continues to impact sales of a large chunk of vehicles. According to data from the Society of Indian Automobile Manufacturers (SIAM), just entry level motorcycles (between 110-125 cc, excluding scooters and mopeds) accounted for nearly 18% of total two wheeler sales in the domestic market between April and February last fiscal. In passenger cars, the micro segment accounted for about 3% of overall car sales though this segment was nearly a third of the market some years ago. Many industry experts have pointed out that continuous price hikes, specially post Covid19, have shrunk the entry level segments in both, two wheelers and cars, besides also having a significant impact on two-wheeler owners willing to upgrade to cars
price hikes, specially post Covid19, have shrunk the entry level segments in both, two wheelers and cars, besides also having a significant impact on two-wheeler owners willing to upgrade to cars (the first time buyers in many cases). An industry executive said the entry hatchback segment in cars “has shrunk badly as car affordability for this section of the consumer is a big issue”. In two wheelers, while the entry level segment did start showing some green shoots late last calendar year, the growth has been very slow. Though the general trend in cars as well as two wheelers is towards premiumisation, volumes remain in the entry level segment in two wheelers. The auto industry has been seeking lower GST on entry level two wheelers and more measures from the government to increase the income levels of the target customers for such vehicles. Auto industry runs on finance: Sanghi said that the automobile industry moves on finance “and the RBI decision to hold rates is a disappointment for prospective entry level car customers.” At least 9 in 10 vehicles sold in the domestic market are financed. The interest rates are levied on the invoice value (ex-showroom price, does not include road tax and insurance). Sanghi said that if the CIBIL rating of the customer is good (750+ points) then the current interest rate for a small car purchase is 9.5%. But for the same car, it can go up to 11.5% if the customer’s CIBIL rating is poor. For two wheelers, finance rates are nearly double those for cars. “The two wheeler rates are nearly double of those for cars since the loan amount per vehicle is lower and administrative and collection costs for such deals are higher”. Besides, banks offering vehicle loans do not often have the margin to reduce interest rates as provisioning requirements (by the RBI) have been getting tougher by the day. Sanghi said even now, banks have not passed on the entire rate cut relief (for an earlier cut in lending rates) for the automobile segment. So, in all, the decision of the MPC to retain lending rates is no music to the ears of prospective entry level vehicle buyers. But , Partner at EY, did not see any major impact on entry level segments in different vehicle categories due to the RBI decision to hold rates. One, he said, this was expected since the MPC meeting was being held just before the General Elections. “Anyway, spending in India is increasing as is India’s per capita income. There is unlikely to be any major impact on vehicle sales”. Meanwhile, , Managing Partner at Avanteum Advisors, said vehicle finance rates will hold steady for the time being. “But what is also of importance is the risk weight attached to retail assets and vehicle loans as a class of asset. The risk weightage also plays a role in interest cost.” He pointed out that in the recent past, RBI has been worried about retail loan default, in particular credit card leverage. So what is the forecast for auto sales in the new fiscal year? Ramakrishnan said
out that in the recent past, RBI has been worried about retail loan default, in particular credit card leverage. So what is the forecast for auto sales in the new fiscal year? Ramakrishnan said that after Covid19, there was good growth in sales “but that will slow down now as the pent up demand has been fulfilled. There will be a short period of consolidation but if the GDP continues its robust growth, vehicle sales will bounce back next year.”
Bond yields lower tracking fall in oil prices By Bhakti Tambe Indian government bond yields edged lower on Monday, tracking downward movement in and as long-term investors stepped in due to the absence of major triggers. The benchmark 10-year yield was at 7.3637% as of 10:23 a.m. IST (0454 GMT), after ending at 7.3889% on Friday. "The U.S. markets are closed today, so our market is a bit directionless. But there's some value-buying from long-term investors, like insurance companies in longer-duration bonds, supporting prices," a dealer with a private bank said. The U.S. markets are shut on Monday for the Presidents' Day holiday. "The next key psychological level is 7.40% and then yields could find some support at 7.43%. However, in the absence of major triggers, any sharp upward movement is unlikely," said a trader with a state-run bank. "Therefore, players like provident funds and insurance companies felt that current levels are good to enter into long-term bonds." Market participants also took comfort from the fall in on Friday, on worries that future rate hikes could weigh on demand. Prices, however, reversed some losses in early on Monday. India imports nearly two-thirds of its oil requirements and price fluctuations have a bearing on domestic . The country's more than expected in January, as it did in the United States. That will make the policy minutes from the central banks of both countries, due later this week, critical. U.S. Treasury yields have been rising on market expectations of tighter in the coming months. Yields rose last week, though they eased to 3.8280% on Friday. Also Read:
Red Sea shipping pause: Industry sees 30% rise in costs, 2-week delay New Delhi: Industry is bracing for a 30% rise in freight and insurance costs, and delays of around 15 days for consignments to reach Europe, with global shipping majors avoiding the and . Sector watchers said that the alternate route between Europe and Asia through the Cape of Good Hope will take two-three weeks more, depending on where the consignment is to be delivered. This is likely to result in containers being held up in transit for longer and firming up. The Red Sea and Suez Canal are on a crucial shipping route for India as goods between Europe and Asia move through them. The decision to avoid the Red Sea route was announced by AP Moller-Maersk, MSC, CMA CGM, and Hapag-Lloyd in the last few days. This was an outcome of attacks on commercial ships by Iran-backed militants in . It is estimated that roughly 12% of global trade through 30% of all containers in the world move through the Suez Canal. "A call on whether to reroute ships through South Africa has not yet been taken. For now, the decision is to just hold the position of vessels at the nearest safe harbour," a representative at one of the four shipping companies told ET, adding that the situation is dynamic. The decision could have a significant impact on sea shipments, said Ajay Sahai, director general, Federation of Indian Export Organisations (FIEO). "It may lead to a rise in freight also since the alternative is to around the Cape of Good Hope, which adds up to 10 days sailing time for ships from Asia to North Europe and East Mediterranean," he said. Sahai said that overall, there could be a 30-40% rise in costs. "We don't know whether the attacks will stop in a week or will take more time," said the first person quoted above. This situation has already started putting pressure on exports from India. "We could not find ships to load cars which we export to Europe from India," said a representative for a foreign shipping line in India. "The vessels market is already saturated with Chinese demand and Christmas, New Year-related commerce." While exports are under pressure, India's imports may not be as impacted, according to Amitabh Kumar, India's former director general of shipping.
G7 coalition to keep Russian oil price cap at USD 60 per barrel The Group of Seven ( ) coalition will keep a USD 60 per barrel price cap on seaborne Russian oil, a coalition official said, despite rising global crude prices and calls by some countries for a lower price cap to restrict Moscow's revenues. The G7 and Australia made the decision to maintain the cap over the past few weeks after a review of the USD 60 price - set in December with an aim to reduce Moscow's ability to finance its war in Ukraine, the official said on condition of anonymity. It comes after four weeks of gains in benchmark oil prices helped by an output cut announced by , which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, as well as a recovery in Chinese consumption. The market was consolidating on Monday with Brent and U.S. crude futures holding above USD 80 per barrel. Russian crude has been selling at a discount of around USD 30 to Brent, the official said. Coalition officials concluded the price cap was working to both limit Russian revenue while maintaining energy market stability, but said they would continue coordinating to ensure effective monitoring and enforcement, the official added. COMBATING EVASION The coalition will also intensify efforts to combat evasion of the price cap and sanctions imposed on Russia, including the use of deceptive practices to access insurance and other coalition services for oil traded above the cap. Coalition members plan to provide guidance to help service providers identify red flags for evasion, such as manipulation of ships' location tracking or failure to itemize shipping, freight, customs, and insurance costs separately from the oil itself, the official said. Later on Monday, the U.S. Treasury issued a warning to U.S. companies of possible evasions of the price cap on oil exported through the Eastern Siberia Pacific Ocean (ESPO) pipeline and ports in eastern Russia. It recommended that traders retain documents showing that Russian oil and oil products were bought at or below the cap. The oil price cap bans G7 and European Union companies from providing transportation, insurance and financing services for Russian oil and oil products if they are sold above the cap. The U.S. and Britain have also imposed restrictions on Russian oil imports. The official noted that a recent International Energy Administration (IEA) report concluded that the G7 sanctions regime had been effective "in not restricting global crude and product supplies, while simultaneously curtailing Russia's ability to generate export revenue." The IEA said on Friday that Russian's March oil revenue rose by USD 1 billion month on month to USD 12.7 billion, but was still 43% lower than a year earlier. Russian crude exports have been consistent at over 3 million barrels per day and global markets have been steady, the G7 official said.
GST authorities to investigate auto dealers for sending fake invoicing The tax are probing a section of automobile dealers who have supposedly generated fake invoices without providing any service. This move is a punishable offense under goods and services tax ( ) law. The authorities are going to question the car dealers to explain the services they provided to general insurance companies. The investigators are suspecting that automobile dealers pitched for insurance schemes that gave them commissions in excess of those insurance regulations permit, according to a business daily. Without an underlying supply of services, the dealers raised fake invoices and on the basis of those, insurance firms claimed input tax credit, two officials privy to the probe said. Notably, the limit is 15%-20%, depending on the products prescribed by the Insurance Regulatory and Development Authority of India (IRDAI). Effective from April 1, IRDAI separated limits for commission and has imposed an overall ceiling on operating expenses and commissions. With this, there is a 100% penalty and the registration of the fake invoice issuer could be also cancelled. The offense is not bailable. In the GST regime, issuing an invoice without supply means a jail term up to five years, if the amount involves INR 5 crore or above. Along with that, there is a 100% penalty. "The tax evasion in this case is suspected to be around INR 12,500 crore, which is much higher than the earlier estimate of INR 1,000 crore. As the probe progresses, we could see a nexus between insurance companies and lots of such intermediaries flouting regulations to avoid tax. The matter is to be decided soon," a senior government official told the business daily The move is to widen the investigation the Directorate General of GST Intelligence (DGGI) has launched against 16 insurance companies since September last year, for allegedly paying commissions as high as 60%-70% to intermediaries like these, and then availing themselves of input tax credit on the bills raised in the name of marketing and sales services. Source: Business Standard
Cos boost incentives for SUVs, minivans to stimulate demand Sport utility vehicles (SUVs) and , the two segments with significant sales traction, see a spike in incentives. The minivan segment saw average incentives jump from INR 33,720 in May this year to INR 43,727 in June 2023. The SUV segment, too, saw similar incentive increases from INR 32,296 to INR 42,215 for the same period. Body styles such as the micro-car and mini-MPV segment maintained its incentive levels at INR 38,997 and INR 17,665, respectively. Hatchbacks and sedans saw a marginal rise for the quarter ended June 2023, according to data. During the pandemic, supply was severely constrained, which allowed OEMs to raise prices and operate with negligible discounts. However, with a build-up of stocks in the pipeline, OEMs are now using incentives as a form of price discrimination to generate demand. While PV sales have recorded the highest-ever volumes of almost a million cars for the April-June quarter, paradoxically, OEMs are also offering big sales promotion incentives on many models, said experts. Incentives can be a combination of cash discounts, exchange or trade-ins and freebies like extended warranty, free insurance. "This paradoxical situation has emerged from the demand-supply mismatch and the supply constraints in semiconductor components issues," said Shashank Srivastava, senior ED at the country's largest carmaker, . "While there is growth in incentives on specific models and body styles, we're also beginning to see an increase in average weighted incentive for both luxury and mass production models. The change in incentives happens at a time when the industry inventory is swelling to almost pre-pandemic levels according to some dealers," said Ravi Bhatia, president, Jato Dynamics. Some models have huge pending bookings and long-waiting periods, and many other models that have better production, leads to higher inventory and hence discounts. For Maruti Suzuki, we have almost 3,80,000 bookings in such models as , Jimny, Fronx, Brezza, XL6, Ertiga and Dzire. These models obviously see little or no discount. On the other hand, hatchbacks have better supply position hence good sales promotion incentive schemes. It is a function of demand-supply gap that determines discount levels, added Srivastava. While overall industry inventory level of 2.6 lakh, which is about 25-27-day inventory is quite normal and similar to pre-Covid times, there are models where inventory has crossed the 45-day level. While dealers point to these high inventory levels, customers are feeling the brunt of low inventories of some models. At , SUVs form a key part of its product line-up and strategy. While the industry has witnessed a slew of new SUV launches over the past couple of years, has a wide SUV portfolio, which includes Creta, Venue, Alcazar, Tucson, Ioniq 5, . "Visibly, our SUVs have been gaining strong momentum and the upcoming launch of Hyundai Exter, we're confident that this positive
portfolio, which includes Creta, Venue, Alcazar, Tucson, Ioniq 5, . "Visibly, our SUVs have been gaining strong momentum and the upcoming launch of Hyundai Exter, we're confident that this positive momentum will not only sustain, said Tarun Garg, chief operating officer ( ), Hyundai Motor India. Notwithstanding the record volumes in June, growth will be in low single digit, as the base of last year was high at 3.21 lakh. This may lead to a negative growth in July, said Srivastava.
Tesla, insurers take different paths to deal with expensive repairs Inc's are expensive to repair - so much so that the automaker and insurers are addressing the issue in sharply different ways. Chief Executive says Tesla is making design and software changes to its vehicles to lower repair costs and insurance premiums. Insurance carriers, meanwhile, are writing off low-mileage Tesla Model Ys that have been in crashes, and sending them to salvage auctions after deeming many too expensive to repair. During Tesla's fourth-quarter earnings call on Wednesday, Musk said premiums from third-party insurance companies "in some cases were unreasonably high" and that the EV maker's insurance arm was putting pressure on those carriers by offering lower rates to Tesla owners. Musk also said "we want to minimize the cost of repairing a Tesla if it's in a collision," citing changes to vehicle design and software. "It's remarkable how small changes in the design of the bumper (and) providing spare parts needed for collision repair have an enormous effect on the repair cost," he said. "Most accidents are actually small - a broken fender or scratched side of the car." Tesla did not respond to a request for further comment. So far, Tesla's reputation for expensive vehicle repairs does not seem to have dampened demand, which Musk says is running well ahead of the company's ability to produce. Salvaged The data on crashed low-mileage Teslas showing up at auction presents a slightly different - and previously unreported - picture, according to a Reuters analysis. Of more than 120 Model Ys that were totaled after collisions, then listed at auction in December and early January, the vast majority had fewer than 10,000 miles on the odometer, according to online data from Copart and IAA, the two largest salvage auction houses in the United States. The retail prices of those cars ranged from about $60,000 to more than $80,000. Copart and IAA auction listings note whether the vehicles were involved in front, rear or side collisions, and typically include after-crash photos of each vehicle. But the listings do not disclose specific details on the type of damage suffered. Insurance companies typically "total" a vehicle - that is, choose to scrap it and reimburse the owner - when the estimated cost of repair is deemed too high. Copart listings in some cases included the names of insurance companies that had bought back crashed vehicles, then listed them at auction. Those companies include State Farm, Geico, Progressive and Farmers. Geico is part of Warren Buffet's Berkshire Hathaway Inc. Insurance companies contacted by Reuters either declined to comment or did not respond immediately to requests. Low mileage Tesla launched its own insurance affiliate in August 2019, promising rates up to 30% lower than competitors. During Wednesday's earnings call, Chief Financial Officer Zachary Kirkhorn said at year-end was generating premiums at an annual rate of $300 million and growing
up to 30% lower than competitors. During Wednesday's earnings call, Chief Financial Officer Zachary Kirkhorn said at year-end was generating premiums at an annual rate of $300 million and growing at a quarterly clip of 20% - "faster than the growth in our vehicle business." All the Model Ys in the Reuters analysis were 2022 or 2023 models, and were built at either the Fremont plant in Northern California or the Austin, Texas, plant. Of the 15 Model Y Long Range vehicles built in Austin from June through November and sent to auction after being totaled in crashes, all but one had fewer than 10,000 miles on the odometer. An Austin-built 2022 Model Y Long Range involved in a front collision and listed by IAA in early January had a retail price of $61,388 and estimated repair cost of $50,388. The vehicle's owner was not listed. A second Austin-built Model Y, involved in a side collision and listed by IAA, had a retail price of $72,667 and estimated repair cost of $43,814. Representatives from Copart and IAA were not immediately available for comment. Also Read:
EU struggles with Russian oil price cap, talks to resume when positions converge By Jan Strupczewski European Union governments remained split on Thursday over what level to cap at to curb Moscow's ability to pay for its war in Ukraine without causing a global oil supply shock, with more talks possible on Friday if positions converge. The EU states failed to reach a deal on the price level for on Wednesday because a (G7) proposal for a cap of $65-70 per barrel was seen as far to high by some and too low by others. The European Commission, the , the United States and G7 presidency Germany were all engaged in talks on Thursday to bridge differences and reach a deal before the price cap is due to come into force on Dec. 5. "There are a lot of bilateral talks going on now at very high levels. There will be a meeting of representatives of all EU countries once there is progress. There is no point in calling another meeting if there is no change," one EU diplomat said. Diplomats said that six of the EU's 27 countries opposed the price cap level proposed by the G7. Poland wants the cap to be set at $30, arguing that with Russian production costs that some estimate at $20 per barrel, the G7 proposal would allow Moscow too much profit. Lithuania and Estonia back Poland. "In principle, Poland supports the price cap on the Russian oil but the proposed level is extremely too high," said Adrian Biernacki, a spokesman for the Polish representative to the EU. "This level should refer to the production costs per barrel of crude oil, and not to current market price," he said. Some 70%-85% of Russia's crude exports are carried by tankers rather than pipelines. The idea of the cap is to prohibit shipping, insurance and re-insurance companies from handling cargos of Russian crude around the globe, unless it is sold for less than the price set by the G7 and its allies. Because the world's key shipping and insurance firms are based in G7 countries, the price cap would make it very difficult for Moscow to sell its oil - its biggest export item accounting for some 10% of world supply - for a higher price. Cyprus, Greece and Malta, countries with big shipping industries that stand to lose most if Russian oil cargoes are obstructed, argue the cap is too low and want compensation for the loss of business or more time to adjust. Cyprus is especially concerned about tankers sailing under its flag changing their registration to other flag-of-convenience countries outside the EU like Panama or Liberia. Russian Urals crude oil already trades within the discussed range at around $68 per barrel. "That means the proposed cap would either be the same as, or slightly higher than, the price Russian oil is fetching on the open market. It would be, in other words, another price cap that does not cap," the Eurointelligence think tank said in a note. Also Read:
Government must review tax structure to keep auto industry on fast lane, says R C Bhargava India needs to re-examine the tax structure on automobiles – which stands highest even among partly-developed nations in the world – if the industry is to attract new buyers and grow in a sustained manner, said R C Bhargava, chairman of . While the industry has grown in strong double-digits this year, demand is coming from the more premium end of the market, indicating stress on affordability at the entry-level, head of the country’s largest pointed out. Several policy measures pertaining to enhanced safety and implemented in the last three years have resulted in a steep increase in vehicle prices. The burden of regulatory changes on is higher than that on bigger vehicles and that is changing the whole market behaviour, Bhargava said on Monday evening. “People who are buying small cars are not buying small cars in near the same numbers,” he said. “Personally, I think it’s not a good thing, either for the or the country. We need to add new buyers to the market in a steady manner for the auto industry to grow sustainably. The base of ownership of cars must increase every year. Only then, when the whole pyramid becomes a larger one, will it be able to balance itself.” The skewed growth rates being registered across segments will not warrant a uniform tax rate across smaller and larger vehicles in the Indian market, Bhargava said. “I don’t see it as becoming an inverted pyramid. That the car industry becomes an industry in India where there is hardly any growth in the small segment and all the growth takes place in the higher segments,” he said. “So, that factor has to be kept in mind, the regulatory effect on the car, and that’s one argument for not having a uniform rate of tax on all small and big cars.” At present, automobiles are taxed at 28% with additional cess ranging from 1-22% depending on the type of vehicle. Cars imported as completely built units (CBU) attract customs duty ranging between 60-100% depending on engine size and cost, insurance and freight (CIF) value being less or above $40,000. Electric vehicles, however, attract a uniform GST rate of 5%, irrespective of the body style. “There’s no differential tax rate there. So, there already that uniform taxation happening,” Bhargava said. Compared to developed markets like Europe and Japan where per capita income is far higher, Bhargava elaborated taxes on cars in India are much higher. “Now, somebody needs to think about that. Should cars be charged more than the average rate of taxation? If it is, then we are, in some way, accepting the thing that cars or luxury products should be taxed more than non-luxury products, which is the old socialist way of thinking and taxation,” he said. Tax on automobiles in Europe stands at about 19%. Overall, Bhargava said the Indian economy is doing well and is expected to register GDP growth of 7% this year. It is, however, unlikely that the country can clock a
in Europe stands at about 19%. Overall, Bhargava said the Indian economy is doing well and is expected to register GDP growth of 7% this year. It is, however, unlikely that the country can clock a similar rate of growth next year due to macroeconomic headwinds in global markets. India’s economic growth rate could be higher if the grows fast, he said. The manufacturing sector here has trailed behind countries such as Germany, South Korea and Japan despite the best efforts of the Narendra Modi-led government at the Centre due to implementation gaps at the ground level, Bhargava said, adding that it is imperative for the automobile industry to grow for manufacturing GDP to increase. “You can’t grow an automobile industry with 50% taxation,” he said. “Where in the world has an industry like automobiles grown with 50% taxation? But it’s the wisdom of the policymakers and the political leadership.” State governments also need to come forward to enhance ease of doing business, Bhargava said. Separately, Maruti Suzuki said it will showcase 16 vehicles including two all-new sports utility vehicles and a concept electric SUV at the next month, continuing its onslaught in a segment where it has been working at increasing its presence the last year. Maruti Suzuki managing director Hisashi Takeuchi said the company will continue to introduce new products to recoup lost market share over the next couple of years. Also Read:
Start-up firm Automovill launches accidental claims app to reduce cost has introduced a mobile application for registration and processing of for all agents and brokers across the country, an official said on Tuesday. The objective of the initiative is to reduce claim costs by bringing more efficiency into the system for all stakeholders, including insurance companies and their customers, he said. The online platform will provide an interface with over one lakh agents and is currently available for android-based devices, CEO Mridu Mahendra Das said. The app will cater for users of the iOS operating system by June this year, he said. "The mobile application will function as a complete motor insurance platform serving agents and car owners and facilitating any such claim. "An agent can simply sign up and register a claim, which would be submitted to Automovill and after estimate generation, the insurer concerned will process it. Status of processing will be visible on the app," Das, who hails from Assam, said. The start-up firm, a leader in handling motor claims across India, is "offering not less than a 40 per cent cost reduction as compared to authorised service providers", he claimed. In the first phase, the company aims at onboarding at least 20,000 agents across the country and servicing over one lakh claims in the current calendar year, Das said. Started operations in 2016, Automovill has a presence in 20 cities and is providing services to nearly 4,000 car owners per month. Also Read:
China blocks some Taiwan imports but avoids chip disruption BEIJING - China blocked imports of citrus and fish from Taiwan in retaliation for a visit by Nancy Pelosi, a top American lawmaker, to the self-ruled island but has avoided disrupting one of the world's most important technology and manufacturing relationships. The two sides, which split in 1949 after a civil war, have no official relations but multibillion-dollar business ties, especially in the flow of Taiwanese-made processor chips needed by Chinese factories that assemble the world's smartphones and other electronics. They built that business while Beijing threatened for decades to enforce the ruling Communist Party's claim to the island by attacking. Two-way trade soared 26% last year to $328.3 billion. Taiwan, which produces half the world's processor chips and has technology the mainland can't match, said sales to Chinese factories rose 24.4% to $104.3 billion. "The global economy cannot function without chips that are made in either Taiwan or China," said Carl B. Weinberg of High-Frequency Economics in a report. On Wednesday, Beijing blocked imports of citrus fruits and frozen mackerel from Taiwan after Pelosi, speaker of the House of Representatives, arrived in Taiwan late Tuesday. But the ruling party avoided disrupting the flow of chips and other industrial components, a step that would send shock waves through the shaky global economy. Beijing also announced four days of military exercises with artillery fire in waters around Taiwan. That might delay or disrupt shipping to and from the island, one of the biggest global traders. The potential disruption adds to concerns over weakening global economic growth, but Asian stock markets rose Wednesday after there was no immediate sign of Chinese military action. The Pelosi's visit might embolden Taiwan to make its decades-old de facto independence permanent. Beijing says that would lead to war. The administration of U.S. President Joe Biden has sought to tone down the volume on the visit, insisting there's no change in America's longstanding which recognizes Beijing but allows informal relations and defense ties with Taipei. Meeting leaders in Taiwan, Pelosi said she and other members of Congress in a visiting delegation were showing they will not abandon their commitment to the self-governing island. "America's determination to preserve democracy, here in Taiwan and around the world, remains ironclad," Pelosi said in a short speech during a meeting with Taiwan's President Tsai Ing-wen. "Facing deliberately heightened military threats, Taiwan will not back down," Tsai said. The ban on imports of citrus fruits and frozen mackerel will hurt suppliers seen as Tsai's supporters. Taiwan plays an outsize role in the chip industry for an island of 15 million people, accounting for more than half the global supply. Its producers including Taiwan Semiconductor Manufacturing Corp. make the most advanced processors for smartphones, tablet
of 15 million people, accounting for more than half the global supply. Its producers including Taiwan Semiconductor Manufacturing Corp. make the most advanced processors for smartphones, tablet computers, medical devices and other products. Taiwan says chip sales to China factories rose 24.4% last year to $104.3 billion. Beijing has invested billions of dollars in developing its own industry, which supplies low-end chips for autos and appliances but cannot support the latest smartphones, tablet computers, medical devices and other products. Chips are China's biggest import at more than $400 billion a year, ahead of crude oil. That concentration has fueled concern in the United States and Europe about relying too heavily on supplies that might be disrupted by conflict. The U.S. government is trying to expand its domestic chip production capacity. Overall, China is Taiwan's biggest trading partner, taking more than twice as much of its exports as the United States, the island's No. 2 foreign market. Beijing has tried to use access to its markets to undermine Tsai and other Taiwanese leaders it accuses of pursuing independence. The customs agency blocked imports of cookies and other food products from more than 100 Taiwanese suppliers on Monday ahead of Pelosi's visit, according to the Global Times and other Chinese news outlets. There was no official announcement. The Communist Party also has used military action in the past to try to hurt Taiwanese leaders by disrupting the island's economy. The mainland tried to drive voters away from then-President Lee Teng-hui ahead of the island's first direct presidential elections in 1996 by firing missiles into shipping lanes. That forced shippers to cancel voyages and raised insurance costs but backfired by allowing Lee to brag about standing up to Beijing in front of cheering supporters. Lee won the four-way election with 54% of the vote.
Russian oil output falls below 10 million bpd, lowest since July 2020: Sources Russian oil and gas condensate production fell below 10 million barrels per day (bpd) on Monday to its lowest since July 2020, two sources familiar with data said on Tuesday, as sanctions and logistical constraints hampered trade. Russian oil production has been under a massive downward pressure amid sanctions from the West over Moscow's role in . The United States introduced its ban on oil imports from last month, while sanctions on Moscow's financial institutions made it hard to process payments for Russian oil. Sources said Russia's average oil output fell to 10.32 million bpd on April 1-11 from 11.01 million on average in March, a decline of more than 6%. OPEC told the on Monday that current and future sanctions on Russia could create one of the worst ever oil supply shocks and it would be impossible to replace those volumes, and signalled it would not pump more. Russian Deputy Prime Minister Alexander Novak said on Thursday that Russian oil production may decline by 4% to 5% in April from March due to problems with insurance and usage of vessels. The sources said, output fell further to 9.76 million bpd on Monday alone, according to Reuters calculations, the lowest since 9.37 million bpd on average in July 2020, when output and demand were dented by the spread of coronavirus. One of the sources also said that Russian largest oil producer by output, Rosneft, has registered the largest decline in output, which fell to 2.87 million bpd on April 1-11 from 3.35 million bpd in March. and Rosneft did not respond to a request for comments.
Haryana CM Khattar announces INR 50,000 for industrial workers' daughters to buy electric two-wheelers Daughters of pursuing higher education will be granted INR 50,000 to purchase , Haryana Chief Minister announced on Sunday. Speaking at an event at the Shri Vishwakarma Skill University in Palwal district, Khattar said the move will promote mobility and enable the daughters of industrial workers to be independent. Khattar also made announcements regarding for the children of industrial workers. They will receive identical scholarship amounts with immediate effect, according to an official statement. Scholarships ranging from INR 10,000 to INR 21,000 will be provided to students from Class 9 to various degree and postgraduate programmes. Earlier, these scholarships ranged from INR 5,000 to INR 7,000 for students of classes 9 and 10 and INR 11,000 to INR 16,000 for those enrolled in degree programmes. To mark Vishwakarma Jayanti and Prime Minister Narendra Modi's birthday, Khattar unveiled a series of welfare measures aimed at improving the lives of industrial workers and their families, the statement said. Khattar also applauded Modi as a visionary leader who has propelled India forward through innovation and service. He extended his warmest wishes to the prime minister on his birthday and prayed for his long and continued service to the nation. In another announcement, the Haryana chief minister said workers will receive enhanced financial assistance to purchase bicycles, raising the grant amount from INR 3,000 to INR 5,000. The financial assistance to women workers for purchasing sewing machines has also been raised from INR 3,500 to INR 4,500. Workers suffering from chronic diseases will receive a monthly stipend of INR 2,000 "to promote healthy eating habits", the statement quoted Khattar as saying. In a bid to enhance health care accessibility, the chief minister announced that ESI ( ) dispensaries will be established in Fatehabad and Harsaru, Kadipur, and Wazirabad of Gurugram district. Additionally, ECG facilities will be made available at all ESI dispensaries across Haryana. Recognising the challenges faced by workers who frequently migrate for employment, the chief minister announced that the government will provide 500 flats each in Faridabad, Gurugram, Sonipat and Yamunanagar districts in the first phase, ensuring safe and affordable housing options. The Shri Vishwakarma Skill University will also launch the Guru Shishya to identify and certify the skill potential of 25,000 craftspeople, artisans and informal sector workers, Khattar announced. This initiative aims to promote skills-based apprenticeship training, benefiting 75,000 youngsters. Successful trainees will receive certificates, paving the way for higher salaries, self-employment and entrepreneurship. The scheme, spanning five years, is estimated to cost INR 208.66 crore, he said. Earlier in the day, at an event in Sirsa, Khattar flagged off a cyclothon to mark a crucial step
and entrepreneurship. The scheme, spanning five years, is estimated to cost INR 208.66 crore, he said. Earlier in the day, at an event in Sirsa, Khattar flagged off a cyclothon to mark a crucial step in the drugs-free Haryana campaign. During his address at the Shaheed Bhagat Singh Stadium, Khattar expressed his appreciation for the overwhelming public response to the event. The cyclothon began on September 1 from Karnal and is scheduled to conclude on September 25, after covering 15 districts. Its core objective is to disseminate the message of de-addiction and strive towards a drugs-free Haryana, the statement said. The chief minister expressed deep concern over the drugs problem, with a specific focus on Sirsa and Fatehabad, where the issue is most acute. He outlined three critical steps for the campaign's success -- rehabilitation of drug addicts, stringent legal action against traffickers and comprehensive awareness programmes targeting youngsters. The senior BJP leader, who also rode a bicycle, cited the example of 74-year-old Kamlesh Rana from Rohtak, who is participating in the cyclothon to combat the addiction problem. Her journey began in 2020 and her dedication remains an inspiration to all the participants. Two other participants aged 75 and 76 have displayed admirable determination, he said. Khattar commended them for being an inspiration for all.
Opinion: If data is the new oil, connected cars are ‘oil fields’ The term ‘connected car’ is a broad one; there are several arms to this rapidly evolving technology. In its simplest form, any car outfitted with internet accessibility is termed a connected car. In the Indian auto market, this term was first popularised by MG Motors when it launched the MG Hector. Hector’s badge on the rear reads ‘Internet Inside’. Automakers use two kinds of connected car systems – the first is the ‘embedded’ type that features a factory fitted chipset with a built-in antenna. The vehicle can, therefore, connect by itself to other devices or to a remote server. The second type is ‘tethered’, where the driver’s smartphone’s network is used to connect to the vehicle’s hardware or to the manufacturer. It is expected there will be 400 million by 2025 – an almost two-fold increase from 237 million in 2021. Forecasts suggest that by 2030, 96% of all vehicles will be connected. In terms of potential total revenue it can generate globally, it represents a dizzying USD 450 billion -750 billion, by 2030. Considering how this figure is higher than the market cap of all traditional automakers—such as Ford, Toyota, Chrysler, and Volkswagen—combined, automakers have only scratched the surface in terms of using or monetising connected vehicle data. A dvantages of connected car In the case of one connected car pioneer, its i-SMART technology offers features such as the ability to start the vehicle through an app, turn on its climate control, open and close the sunroof, create a geo-fence and record telemetry data. Using this data, a detailed insight can be obtained, on let's say, how well or poorly the car was driven. A level higher in the connected car hierarchy are the vehicles equipped with an Advanced Driver Assistance System (ADAS). An ADAS system allows a vehicle to drive itself autonomously to some extent although the driver must retain his or her hands on the steering wheel at all times. Several tech giants—including Google and Apple—have a strong presence in autonomous vehicle or AV development. Despite the advantages, however, connected cars’ user opinions vary across geographies. A report highlighted that “... while 79% of consumers in China believe increased connectivity will be beneficial, only 35% of German consumers feel the same.” Meanwhile, from an original equipment manufacturers’ (OEM) standpoint, the data collected from connected cars presents significant opportunities. The OEM challenges that connected cars solve The vast datasets generated by connected cars are yet to be fully monetised. In fact, automakers are still exploring ways to enhance their revenue per user – a metric that is widely used in other tech-based industries like telecommunications, OTT platforms and mobile gaming. In this regard, one automaker has spearheaded data monetisation by offering subscription-based services for its in-car features. A German marque began offering heated seats
and mobile gaming. In this regard, one automaker has spearheaded data monetisation by offering subscription-based services for its in-car features. A German marque began offering heated seats (USD18 per month) as one such subscription-based service, in 2020. Other subscription services this OEM offers are a high beam assistant for headlamps, a heated steering wheel, and an Iconic Sounds Sport, among others. This latter feature allows a user to choose different engine sounds that will play in their vehicle. A second area where connected cars are expected to offer a key advantage for is boosting customer retention. According to an Ericsson report, “Brand alone will not be sufficient to retain the customer control that automakers currently enjoy.” Rather, it is suggested that manufacturers “must successfully integrate the customer’s connected lifestyle with existing mobility solutions.” Consumers are, in fact, willing to purchase another brand if it means getting more connected features in their cars. In China, 56% of users demanded connected cars. Likewise, 39% of consumers were keen to unlock additional digital features following their vehicle purchase. This figure rose to 47 percent in the case of consumers purchasing luxury brands. A further domain where connected cars trump their traditional counterparts is their ability to receive OTA or over-the-air updates. Since software recalls account for a large share of current vehicle recalls, OTA updates mean sizable cost savings for OEMs as physical visits to a dealership are not required to resolve recall issues. Advantages for individual economies , and especially , are safer than vehicles driven by humans. In fact, 90% of motor vehicle accidents are due to human error. Since connected AVs are able to communicate with each other (called vehicle-to-vehicle communication), and their surroundings, they can avoid collisions with other vehicles, cyclists or pedestrians. The true measure of connected vehicles’ enhanced safety–-and how it can hugely reduce costs–-can only be grasped when the associated costs are taken into consideration. A McKinsey report said, “For every person killed in a , 8 are hospitalised, and 100 are treated and released from emergency rooms.” As a result, the aggregate annual cost of vehicle collisions—in the US alone—was USD 212 billion, in 2012. Crash related costs in the US have only escalated over the past decade; it was a staggering USD 340 billion, in 2019. Given how connected AVs hold potential to reduce collisions by as much as 90 percent, such vehicles could save the US economy as much as USD300 billion annually. Lower collisions will also mean lesser insurance premiums for vehicle owners. Opportunities galore An area of concern is connected vehicles owners are reluctant to share their data. In the US, 31% of consumers do not trust "anyone" with their data although an identical 31% do trust their OEM. The two core determinants—in terms of data usage—were how much trust
share their data. In the US, 31% of consumers do not trust "anyone" with their data although an identical 31% do trust their OEM. The two core determinants—in terms of data usage—were how much trust consumers reposed in their OEM, and whether they had received full disclosure on who the data can be accessed by, and what exactly it was going to be used for. In this regard, connected cars will possibly have to incorporate blockchain usage to solve for trust and to maintain anonymity. OEMs are seeking blockchain development partners; according to Allied Market Research, this segment comprising connected cars and blockchain could register USD5.6 billion, by 2030. What is evident is the auto sector is on the cusp of a shift. There is, no doubt, that innovation and upgrades have been a mainstay since Henry Ford’s Model T made personal mobility accessible to the masses. But going forward, connected car uptake is expected to have positive implications for a wider array of stakeholders – spannings OEMs, entertainment providers, tech companies and even 5G network service providers. The consumer, meanwhile, will be spoilt for choice. (Disclaimer: is CEO of Group, India. Views are personal)
CarDekho Group narrows loss to Rs 246 crore in FY22 Auto-tech firm on Monday said it has narrowed total losses to Rs 246 crore in 2021-22. The group had posted a total loss of Rs 341 crore in FY21, said in a statement. The revenue from operations in FY22 increased to Rs 1,598 crore from Rs 884 crore in FY21, it added. The firm -- which enables buying and selling cars and bikes, including electric vehicles, besides providing information and research; insurance broking and financing for cars on its platform -- said it witnessed significant growth across all its business segments in FY22. "The group registered over 50 million unique monthly visitors, generated over 9 million leads, helped issue 16 lakh insurance policies and facilitated disbursal of over 1 lakh auto loans in FY22," it added. CarDekho Group co-founder and CEO said the group has successfully leveraged its house of brands strategy, operating through multiple brands, such as CarDekho, , InsuranceDekho, Rupyy and Zigwheels. "Our multiple business lines create opportunities for us to be present across several touch points in the consumer experience journey by offering end-to-end digital solutions," he added. On CarDekho's IPO plans, said, "...we are definitely evaluating it, subject to requisite approvals and conducive market conditions". He said the group has a clear path to turn profitable at a consolidated level by FY24. Also Read:
Volkswagen offers pay-offs for employees who quit major Russia plant Volkswagen is offering pay-offs to employees at one of the company's two plants in Russia if they agree to quit voluntarily, the Kommersant newspaper said on Thursday. The paper said the offer - which in some cases would amount to six months' salary - was aimed at the 200 people working at the Nizhny Novgorod plant. Volkswagen announced in March that production at its Kaluga and Nizhny Novgorod sites would be suspended until further notice because of Western sanctions, and vehicle exports to Russia will be stopped with immediate effect. Kommersant cited union sources as saying that employees who agreed to the company's offer before June 17 would receive six months' salary. The deal would also include medical insurance until the end of 2022, the paper said.
Red Sea Crisis: RBI and IRDAI asked to help limit impact on exports The finance ministry has written to the banking and insurance regulators to monitor export credit availability and insurance premium increases to help Indian exporters deal with trade disruptions in the due to Houthi attacks on cargo ships. In a letter, which was also addressed to state-run export finance institution , the finance ministry last month told the and Insurance Regulatory and Development Authority of India ( ) to monitor and look into the concerns raised by exporters with the commerce ministry about these disruptions potentially inflating India's export costs, officials said. "After our deliberations with the commerce ministry and other stakeholders, including exporters, it was decided that sectoral regulators will keep a watch and take necessary action wherever possible," a government official said. Banks have also been briefed separately to factor in such hikes while sanctioning fresh credit limits to exporters and other businesses, the official said. In February, financial services secretary Vivek Joshi said the government has asked state-run banks and insurers to deal with trade financing and insurance with sensitivity in view of the crisis. An email sent to RBI, IRDAI and did not elicit any response until press time Tuesday. A bank executive said they are already factoring in the increase in freight costs and insurance premiums while sanctioning new credit limits. "We are taking that into consideration," he added. According to an IMF blog, in the first two months of 2024, trade dropped by 50% from a year earlier while trade through the Panama Canal fell by 32%, disrupting supply chains and distorting key macroeconomic indicators. Officials said India's exports have not been impacted much by the . Exports from India are continuing as the sailings of ships carrying containers from the country have been diverted via the Cape of Good Hope route. Industry representatives said Red Sea is hardly being used and while shipping freight to the Far East countries and the east coast of the US has declined, it has risen in case of the US west coast.
Year-end discounts on cars rise to the highest in 4 years If you are looking to buy a new car, this could be the best time for it. Year-end discounts from have risen to a four-year high as pent-up demand starts drying up on the back of improved production. are making the deal sweeter with benefits ranging from ₹25,000 to ₹1,00,000. Driving this trend is the softening of demand in certain car segments and fuel types. To shore up sales, most carmakers are offering discounts between 4.5% and 5% on their vehicles this month compared with 2-2.5% two years ago. The most generous price benefits are in the entry-level car segment and the petrol segment of (SUVs), thanks to a mix of cash discount from automakers, exchange bonus benefit, lower own damage premium by insurance companies, and schemes run by dealers. Discount on , too, has increased to an all-time high of about ₹60,000 as buyers are giving CNG models a miss owing to the narrowing price gap between the green fuel and fossil fuel. While carmakers are not worried about the larger discounts this time round - given that they have a robust order book of 417,000 units and there's expectation of a strong retail in December - they are cautious of the road ahead. Tarun Garg, director (sales, marketing and service) at , said retail in December is strong and is expected to be 20% higher than November. But he said "the demand momentum, going forward, will depend on multiple factors like inflation, interest rates and general market sentiment". is offering discounts from ₹17,000 to ₹18,000. This is on par with the discount levels of 2018-19, said Shashank Srivastava, senior executive officer at . "Unlike in 2018-19, the yearend discounts are confined to certain segments and the trend is not secular. In terms of demand and enquiries, the momentum remains strong. Having said that, we cannot afford to take our eyes off the headwinds, such as high interest rates and inflation," said Srivastava. According to him, discounts on the entry-level models should be seen as a reflection of better availability instead of a tepid demand. "Dealer inventories are back to pre-pandemic levels of 45-50 days," Puneet Gupta, director at S&P Mobility, said, adding that this is mounting pressure on dealers to liquidate the vehicle even if they have to offer discounts. The increase in interest rates has added to their woes, Gupta said. Demand for electric cars, too, appears to be waning. The waiting period for ' e-Nexon is down from a few months earlier to let a buyer walk into a dealership and drive out in a new vehicle. Also Read:
Tesla woos China customers with cheaper cars after Musk defers India visit Inc. has reduced prices for all its vehicles in China, according to its official website, as the US car giant faces stiff competition from China while its boss also had to defer visit to India that would open up a new big market for the company. This move follows price cuts on Model Y, Model X, and Model S cars in the United States. The starting price for the updated Model 3 is now 231,900 yuan, reduced from the previous 245,900 yuan, as shown on the website. Similarly, the starting price for the Model Y has been lowered to 249,900 yuan, down from the previous 263,900 yuan. This comes days after Tesla introduced fresh incentives in the world's largest auto market to attract consumers. These incentives included insurance subsidies, as the U.S. electric vehicle giant engaged in a prolonged price battle against established competitors like China's behemoth automaker BYD. Amid decreasing demand and tougher competition, Tesla had reduced prices for certain Model 3 and Y cars in China in January. They also gave cash discounts for some Model Ys starting from February. Their main competitor in China, BYD, also cut the starting price of a new version of its Song Pro hybrid SUV by 15.4% earlier. BYD, which overtook Tesla as the world's leading EV maker in Q4, responded with even larger discounts on various new car versions in February. The U.S. electric vehicle-maker is grappling with slow demand and strong competition in China, while its first-quarter sales dropped sharply below market estimates. Tesla is dealing with tough competition worldwide, especially from Chinese electric car companies. These companies are flooding the market with cars priced as low as USD 10,000. Meanwhile, Tesla has decided not to make the affordable car they had promised. Investors were hoping for this car to help Tesla become a big car company for everyone. Tesla Inc. stocks continued to fall in 2024, causing the value of the electric car company to drop below USD 500 billion. This drop came after the company announced job cuts recently, which spooked investors. Meanwhile, Musk had to defer his visit to India and planned meet with Indian Prime Minister Narendra Modi. He was also set to meet with senior officials from state governments where Tesla is considering establishing an electric vehicle assembly unit. India had recently offered a new EV policy with lower import tariffs, laying out the red carpet for entry of foreign automakers such as Tesla. Tesla's arrival in India provides a significant boost to the country's Make-in-India initiative, especially after securing another major brand like Apple for iPhone manufacturing. However, India also offers valuable opportunities to Tesla at a time when the iconic car company is facing challenges such as declining sales, falling stock prices, reduced investor confidence, and a lack of innovative ideas. This comes amid increasing competition from American and
car company is facing challenges such as declining sales, falling stock prices, reduced investor confidence, and a lack of innovative ideas. This comes amid increasing competition from American and European rivals, as well as aggressive Chinese car manufacturers. India's huge car market, with a new love for SUVs, can offer a much needed scope of growth for Tesla if it makes and sells its affordable EV here. Although there are worries about Chinese companies flooding into India following the new EV policy, potentially posing a threat to Tesla with their more affordable electric vehicles, this scenario appears improbable. The Indian government has been actively discouraging Chinese investments, making it unlikely for these companies to dominate the market. Reuters reported last July that China's BYD informed its Indian joint-venture partner of plans to halt a new USD 1-billion investment in building electric cars due to scrutiny from the government regarding its investment proposal.
Reducing taxes on automobiles can boost sector, benefit economy: Vikram Kirloskar Mumbai: A roadmap to reduce taxes on automobiles by half over a 10-year period to make the Indian auto industry more competitive globally and provide large scale employment to benefit the economy needs consideration, according to Vice Chairman . Although at the moment India cannot afford to slash the tax rate on automobiles drastically, he said a plan to reduce cess on the industry can be looked at considering the sector's contribution to the overall GDP of the country. "The auto industry is highly taxed. If we look at a car by the time it's produced and by the time it's sold, in most cases it is 30 to 50 per cent more than the ex-factory prices (after adding) GST and all the other taxes, including road taxes," he told PTI in an interview. He further said, "We as an industry are very competitive. I think in the world, cost wise, quality wise, we have become quite competitive. So I think a plan to reduce taxes over a period of time will really benefit the industry." Over a 10-year period, he further said, "Can you reduce it by half?...is it possible to do a long-term plan on how to reduce the taxation in the auto industry to make it grow pretty large, which will make it even more competitive for domestic and for export and provide large scale employment and benefit the economy?" At present, automobiles are taxed at 28 per cent GST, with additional cess ranging from 1 per cent to 22 per cent depending on the type of vehicle. Cars imported as completely built units (CBU) attract customs duty ranging between 60 per cent and 100 per cent depending on engine size and cost, insurance and freight (CIF) value being less or above USD 40,000. Kirloskar stressed that such a step to reduce the taxes gradually would also benefit the country in terms of employment and boosting economic growth. The car industry is a huge source of employment generation -- all the way from steel making to cast iron making, raw materials and dealerships, he said, adding, "It's a big part of the economy, 7-8 per cent of GDP." However, he acknowledged that a drastic cut in taxes on automobiles at the moment is not a feasible idea. "We can't afford to as a country...I've never asked for a GST reduction. I'm just saying because is it possible to plan a long-term plan and how to reduce the taxation in the auto industry to make it grow pretty large, which will make it even more competitive for domestic and for export and provide large scale employment and benefit the economy?" Kirloskar added. On demands from a section of the auto industry to reduce customs duty on imported electric vehicles to spur electrification of automobiles in India, he said, "Why can't you make it here?" Kirloskar said companies need to develop supply chains here in India in order to enhance localisation.
Audi opens Audi Approved: plus for used car sales in Nagpur New Delhi: German luxury carmaker Audi has opened a new pre-owned car facility, along with a new service facility at Central MIDC Road, Hingana, Nagpur. Balbir Singh Dhillon, Head of Audi India, said, “We are very happy to inaugurate our 18th Audi Approved: plus facility in the country. Nagpur is one of the key industrial cities of Maharashtra and we enjoy a strong presence in this region. We are rapidly expanding our pre owned car business and will end this year with 22 such facilities.” The luxury carmaker said that every pre-owned vehicle displayed and sold at Audi Approved: plus showrooms undergo mechanical, bodywork, interior and electrical inspections at over 300 multi-point checks and thorough multiple-level quality checks along with a full on-road test to ensure customers’ peace of mind while buying the car. It also offers 24x7 Roadside Assistance and complete vehicle history before purchase. Customers can also avail easy financing and insurance benefits. Prashant Kesharwani, Dealer Principal, Audi Nagpur, said, “There is an increased demand for pre-owned cars in Nagpur and with this new facility, we will make pre-owned luxury cars more accessible to customers in the region.” “In addition, a new service facility has been inaugurated and we are very happy to extend our association with Audi India and look forward to serving our customers in Nagpur,” he said.
JSW Energy raises INR 5,000 crore from Abu Dhabi Investment Authority, others New Delhi: has raised INR 5,000 crore by selling shares to institutional investors, including (ADIA), to accelerate its growth plans. In a regulatory filing on Friday, the company informed that it has successfully completed its INR 5,000-crore Qualified Institutions Placement (QIP). said, the proceeds from the QIP will further bolster its capital structure, enhance financial flexibility and enable the company to accelerate its ambitious growth plans. "The issue garnered a very strong interest from marquee global long-only investors, domestic mutual funds and insurance companies...," it added. The QIP witnessed more than 3.2 times subscription. Some of the largest global asset managers, such as GQG, Blackrock, Nomura, Wellington, UBS and ADIA, participated in the QIP issue. "This marks the first-ever equity raise by the company since its listing in 2010," JSW Energy said. This is the largest primary equity raise in the Indian power sector in the last decade and among the top three largest primary equity raises in the history of the Indian power sector, the company said. Sharad Mahendra, joint managing director and CEO of JSW Energy, said: "India's strong investment cycle-driven economic growth momentum bodes well for power demand outlook. The strong institutional investor interest reflects their unwavering confidence in our positioning as a diversified energy transition platform focused on growing both the generation and storage businesses, with optionality for green hydrogen and its derivatives." At JSW Energy, he said, "We are not just witnessing the transformation of the energy sector, we are actively shaping it, setting new benchmarks for industry leadership, and aiding India's journey towards net-zero targets by 2070." Jefferies India Private Limited was the sole book running lead manager. Khaitan & Co. was the legal counsel to the company while Shardul Amarchand Mangaldas & Co. and Linklaters Singapore Pte. Ltd. were counsels to the book running lead manager. JSW Energy Limited, a part of the USD 23-billion JSW Group, has presence in sectors such as steel, energy, infrastructure, cement and sports, among others. JSW Energy began commercial operations in 2000, with the commissioning of its first 2x130 MW thermal power plants at Vijayanagar, Karnataka. Since then, the company has steadily enhanced its power generation capacity from 260 MW to 7,189 MW having a portfolio of thermal 3,508 MW, wind 1,615 MW, hydel 1,391 MW and solar 675 MW. The company is presently constructing various power projects to the tune of 2.6 GW. JSW Energy has total locked-in generation capacity of 12.5 GW comprising 7.2 GW operational, 2.6 GW under-construction assets. Besides, the company has 3.4 GWh of locked-in energy storage capacity through battery energy storage system and hydro pumped storage project. The company aims to reach 20 GW generation capacity and 40 GWh of energy storage
3.4 GWh of locked-in energy storage capacity through battery energy storage system and hydro pumped storage project. The company aims to reach 20 GW generation capacity and 40 GWh of energy storage capacity before 2030. It has set the target of achieving carbon neutrality by 2050.
India's Russian oil purchases since Ukraine invasion more than double 2021 total India has bought more than twice as much crude oil from Russia in the two months since its invasion of Ukraine as it did in the whole of 2021, according to Reuters calculations, as Indian refiners snapped up discounted oil that others have shunned. Refiners in India have placed orders for at least 40 million barrels of since the invasion on Feb. 24, Reuters calculations based on information from crude tenders and traders show. The purchases are for loading in the June quarter. That compares with total imports of Russian oil into India of 16 million barrels in the whole of last year, according to Reuters calculations. The world's third biggest oil importer and consumer ships in over 85% of its crude oil needs of 5 million barrels per day (bpd). Its refiners are buying cheaper Russian oil to partly offset the impact of higher official selling prices of some producers like Saudi Arabia, company sources said. "We try to insulate consumers as much from price shocks as we can, but we need to protect our profits as well... so we are buying Russian oil," an official at one refiner, who declined to be named, said. According to Reuters calculations, purchases of Russian barrels by private refiners and Nayara Energy outstrip imports by state refiners , Hindustan Petroleum Corp, and Corp. has purchased at least 15 million barrel of Russian oil so far for the June quarter, trade sources said last week. Reliance did not respond to a request for comment at that time. Nayara Energy, part owned by Russia's top producer Rosneft , has purchased 8 million to 9 million barrels of Russian crude for loading in April-May, trade sources said. Nayara did not respond to a Reuters email seeking comments. Western sanctions against Russia since its invasion of Ukraine, which Moscow calls a "special operation", have prompted many oil importers to shun trade with Moscow, pushing Russian crude's discount to other grades to record levels. While New Delhi has called for an immediate ceasefire in Ukraine, it has not explicitly condemned Moscow's actions. Defending India's oil imports from Russia, the country's oil minister Hardeep Singh Puri on Friday said that India's purchases from Russia are a minuscule fraction of the country's overall oil needs. Indian companies are buying Russian oil on a delivered basis, with sellers arranging for shipping and insurance. Washington has already said it does not object to New Delhi buying Russian oil below market rates, but warned against a steep rise in imports as that could hamper the U.S. response to the war in Ukraine. Analysts said India's Russian oil imports may taper off as a full-scale implementation of the European and U.S. sanctions from mid-May and late June might hit logistics. "Indian refiners' capacity to process Russian oil is limited, and also there could be logistic challenges like insurance, tankers and payment mechanism once full European and
might hit logistics. "Indian refiners' capacity to process Russian oil is limited, and also there could be logistic challenges like insurance, tankers and payment mechanism once full European and U.S. sanctions against Russian kick in," said Giovanni Staunovo, commodity analyst at UBS Group AG. Already under pressure from sanctions, some trading houses are scaling back their dealings in Russian oil, he said. Also Read:
India in talks to increase Russian oil imports from Rosneft is looking to double down on its Russian with state-owned refiners eager to take more heavily-discounted supplies from PJSC as international players turn down dealings with Moscow over its invasion of Ukraine. State processors are collectively working on finalizing and securing new six-month supply contracts for Russian crude to India, said people with knowledge of the companies’ procurement plans. Cargoes are being sought on a delivered basis from Rosneft, with the seller set to handle shipping and insurance matters, they said. These supply agreements, if concluded, will be separate and on top of shipments that India already buys from via other deals. Details on volumes and pricing are still being negotiated with Indian banks set to fully finance all cargoes, said the people who asked not to be identified as discussions are confidential. Indian refiners will increasingly procuring directly from Russian companies such as Rosneft as top international traders such as Glencore Plc wind up their dealings, they added. State refiners include , and Bharat Petroleum, while private processors are and Nayara Energy, which is partly owned by Rosneft. Procurement activities for state and private companies are done independently. Spokespeople at the three largest state-owned companies couldn’t immediately comment when contacted on the matter. Both state and privately-owned refineries in India have been ramping up purchases of Russian crude as sanctions and trade restrictions rolled out by the US, UK and European Union have caused most buyers to flee and offer levels to crash. An unprecedented amount of Russian crude was heading to India and China last month as European buyers scrambled for replacements and reached as far as United Arab Emirates for alternatives. The ensuing panic and rerouting of global oil flows have lifted oil by more 20% since late-February when Russia invaded Ukraine. Refiners in Asia’s second-largest oil consumer have been enjoying elevated profits from turning cheap crude into fuels that’s sold domestically and also in the export market to customers in Europe and the US. Russian crude forms just part of India’s overall basket of crude oil feedstock, alongside other long-term as well as spot purchases from the Middle East and Africa. The potential ramp-up of Russian crude purchases will likely weigh on the South Asian nation’s spot imports, said the people. India has bought more than 40 million barrels of Russian oil between late-February and early-May, which comes to about 20% more than flows for all of 2021, according to Bloomberg calculations based on trade data. Russian oil arrivals into India for May were at 740,000 barrels a day, up from 284,000 barrels in April and 34,000 barrels a year earlier, according to data from Kpler. Although India’s purchases of Russian crude aren’t illegal or in breach of any sanctions, the country has come under pressure from the Biden
barrels a year earlier, according to data from Kpler. Although India’s purchases of Russian crude aren’t illegal or in breach of any sanctions, the country has come under pressure from the Biden administration and EU to stop doing business with Moscow in order to cut off Kremlin’s access to oil revenue and funds. The Asian nation has reiterated that its volume of Russian imports are minuscule as compared to Europe’s purchases, and just a tiny fraction of the country’s total consumption. Discounted Russian oil has provided some relief to India -- which imports more than 85% of its oil -- just as inflation skyrockets alongside surging prices of everything from food to fuel. The access to cheap crude is already boosting India’s oil imports, which grew almost 16% in April from last year. The share of oil from the Eurasian region, which includes Russia, expanded to 10.6% in April versus 3.3% a year earlier, according to oil ministry data.
Rana Group to invest Rs 1,900 crore in EV business in phases New Delhi: , which has diversified business interests, on Friday said it will invest Rs 1,900 crore in the electric vehicle business in phases, a top company official said. The group has also roped in cricketer Sourav Ganguly as a brand ambassador for its three subsidiaries Erisha Agritech, Erisha E Mobility and Erisha Edu Support. "We have signed two MoUs with the Uttar Pradesh government. We have to set up 100 in PPP mode, and the will be approximately Rs 400 crore. Another MoU is for an EV park in Jhansi to spread in an area of over 300 acres, and the investment will be around Rs 1,500 crore," Rana Group Chairman and CMD Darshan Singh Rana told PTI on the sidelines of a company event. Rana Group launched and four different apps for smart farming, education, smart charging for charging stations and OHEO, complete solutions for electric vehicles, starting from assisting sales, after-sales, financing, insurance, vehicle engagement, passenger service aggregator, organising the labour for porter service and other related services. The group announced the opening of 101 showrooms pan India and started billing electric three-wheelers to end customers. "We will start selling EV 2 Wheelers from July. Our EV charging hub business is expected to start in 2-3 months, and the facility in Jhansi should start within 6-7 months," Singh said. The company is in the process of fundraising at an estimated valuation of over Rs 4,000 crore, he added.
One Moto India inks pact with Reliance General Insurance to provide motor insurance Electric two-wheeler maker on Thursday said it has partnered with to provide to its customers. The company, which has launched three electric scooters -- Byka, Electa, and , said the partnership will enable easy insurance service to its customers. One Moto India Vice-President, Marketing & Sales, Aditya Reddy said the company has been strengthening its services and product portfolio. As the company moves ahead in sync with the strategy, he said the association with Reliance General Insurance is another milestone achieved. "As the nation makes the responsible shift towards e-mobility for a better and greener future, we have an equally significant contribution to make in the process. Our partnership with One Moto reflects our commitment and is aimed at achieving those goals," Reliance General Insurance Chief Distribution Officer Anand Singhi said. Earlier this year, the company had announced plans to invest Rs 250 crore to set up a manufacturing unit in Telangana with a capacity of 40,000 units in the first phase. Also Read:
Owners of old vehicles unable to get HSRP Even though the deadline for the installation of (HSRP) was May 31, the State Government has informed the High Court that it won’t take any penal action until June 12, as only 19% of vehicles in the state have installed HSRP. However, there are numerous technical challenges in installing HSRP. Many are facing difficulties because some vehicle manufacturing companies have closed down, making it impossible for them to obtain the required HSRP. Companies like Java, Yezdi, Ford, Kinetic Honda, Willys, and others have shut down, leaving owners of these vehicles in a predicament. The has made HSRP mandatory for all vehicles registered after 2019, citing security concerns. The State Government has also implemented this order, and new vehicles have been affixed with HSRP at showrooms since 2019. However, owners of vehicles purchased before 2019 are facing difficulties in obtaining HSRP, especially if their vehicle’s manufacturing company has closed down. Pradeep Nair, owner of a vintage car, said, “The government’s move to make High Security Registration Plates (HSRP) mandatory aims to improve and prevent the counterfeiting of number plates. However, the closure of several vehicle manufacturing companies has created a challenge for owners of older vehicles, who are now struggling to obtain the required HSRP. To address this issue, the government has provided an where owners of older vehicles can apply for HSRP and pay the required fee. The portal allows owners to select their vehicle’s company and apply for HSRP, but it does not include the names of all the closed companies, causing confusion among vehicle owners.” Sources said that the government has authorised certain agencies to manufacture and supply HSRP, but these agencies are not producing HSRP for vehicles from closed companies. This has left owners of such vehicles in a difficult situation, as they are required to affix HSRP within the specified deadline to avoid penalties. The challenges faced by owners of older vehicles in obtaining HSRP due to the closure of vehicle manufacturing companies and the lack of clarity in the government’s guidelines have been raised multiple times. When contacted, Additional Commissioner of the (Enforcement) C. Mallikarjun said, “This issue continues to cause significant inconvenience, highlighting the need for clear and inclusive guidelines to assist vehicle owners in complying with the new regulations.” So far, out of the over 2 crore vehicles in the state, only 36 lakh vehicles have complied. Guidelines from the Transport Department state that certain transactions at RTOs, such as change of ownership, address modification, duplicate RC issuance, insurance updates, fitness approvals, etc., cannot proceed without HSRP affixation in the state. The department warns against counterfeit HSRP plates lacking unique laser codes and security features like high visibility in low light. HSRP serves as a security measure with
in the state. The department warns against counterfeit HSRP plates lacking unique laser codes and security features like high visibility in low light. HSRP serves as a security measure with embossed unique numbers, holograms, and other elements to enhance vehicle identification and security. It became mandatory for all new vehicle registrations from April 1, 2019, to deter theft and misuse.
Indian refiners seeking 6-month Russian oil import deal: Report NEW DELHI: Indian refiners are negotiating a six-month oil deal with Russia to import millions of barrels per month, multiple sources with knowledge of the matter said, as the world's third largest importer seeks more Russian crude despite Western sanctions. India has already bought more than twice as much crude from Russia in the two months since its invasion of Ukraine on Feb. 24 as it did in the whole of 2021, according to Reuters calculations. Russia calls the attack a "special military operation" to disarm Ukraine. Western sanctions against Russia have prompted many oil importers to shun trade with Moscow, pushing spot prices for Russian crude into record discounts against other grades. Rosneft is in talks with Indian and Chinese companies about supply deals after the company lost Western term buyers, two sources said. While New Delhi has called for an immediate ceasefire in Ukraine, it has not explicitly condemned Moscow's actions. That provided Indian refiners, which rarely used to buy , an opportunity to snap up low-priced crude. India's top refiner Indian Oil Corp. (IOC), Bharat Petroleum Corp and Hindustan Petroleum Corp are negotiating the deal with Russia's Rosneft, the sources said. IOC is negotiating a deal to import 6 million barrels of oil per month with an option to buy another 3 million barrels, they said. BPCL and HPCL are looking for monthly imports of 4 million barrels and 3 million barrels, respectively, the sources said. The companies are looking for supply from June, they said, adding Rosneft could deliver oil through non-sanctioned intermediaries and trading companies based in countries that have not announced sanctions against Moscow. One of the sources said that the volume and tenure of the deals could change depending on the discounts offered by Rosneft and the impact of sanctions. The Indian refiners did not respond to Reuters' emails seeking comments, while no immediate comment was available from Rosneft. Since the Ukraine crisis, Indian refiners have been buying Russian oil from global trading companies on a delivered basis, with traders arranging for shipping and insurance. However, global traders Vitol and Trafigura are winding down Russian oil purchases as EU sanctions will take effect from May 15. India has also run into shipping issues recently with Oil and Natural Gas Corp (ONGC) struggling to find vessels to load crude from its Sakhalin-1 operations in Russia. India imports more than 85% of its needs at 5 million barrels per day (bpd). Defending India's oil imports from Russia, oil minister Hardeep Singh Puri last week said that the purchases represent a fraction of India's overall annual needs and the government does not intervene in companies' import deals. New Delhi has also asked its state-run energy companies to evaluate the possibility of buying European oil major BP's stake in sanctions-hit Russian firm Rosneft, two people familiar with
deals. New Delhi has also asked its state-run energy companies to evaluate the possibility of buying European oil major BP's stake in sanctions-hit Russian firm Rosneft, two people familiar with the matter told Reuters. Washington has said it does not object to New Delhi buying Russian oil below market rates, but has warned against a steep rise in imports as that could hamper the US response to the war in Ukraine. Also Read:
Rupee gives up opening gains as Fed meeting comes into focus The Indian pulled back from earlier gains on Tuesday, aligning with its Asian peers as traders cited dollar buying by large players ahead of the Federal Reserve meeting. The rupee was at 82.64 per dollar by 11:00 a.m. IST, after opening slightly higher at 82.54. The closed at 82.6350 on Monday. Among efforts to stem further crisis in the U.S. banking sector, a media report said officials were looking at ways to temporarily expand Federal Deposit Insurance Corp's coverage to all deposits. The impact of this report, however, "would not last long" as the U.S. central bank's meeting on Wednesday would likely overshadow it, said Anindya Banerjee, head of research - FX and interest rates at Kotak Securities. "Therefore, we could see range-bound price action in the USD/INR pair between 82.35-82.75." Some large corporates were bidding for dollars, but the rupee was unlikely to weaken past 82.70 as exporters would likely offload the U.S. currency at those levels to capitalise on higher premiums, said a private bank trader. Dealers added they were trading "with small positions" as uncertainty loomed ahead of the Fed meeting. Fed funds repricing has been quite volatile off late, as at one point on Monday it indicated higher chances of a pause than a hike. Currently, it was back to showing a 73% probability of a 25 basis point (bps) rate increase. Bets of a pause went up this week after global central banks pledged funding to backstop UBS's takeover of Credit Suisse to tide over the banking crisis that has roiled financial since last week. Asian currencies were lower, with the Chinese yuan down to 6.8820 per dollar and the Thai baht 0.5% weaker, failing to take respite from a softer dollar index.
Rupee likely to strengthen towards 79 by end-FY24: UBS Securities Narrowing current account deficit will help the rupee strengthen against the dollar and appreciate to around 79 by the second half of the current fiscal, says a foreign brokerage report. The rupee is likely to strengthen towards 79 by end-FY24 from an average of 82 to the US dollar in FY23, Tanvee Gupta , the chief India economist at said in a note. Even as the rupee is likely to be volatile in the near-term, as global financial stability risks remain elevated, she expects the local unit to gain towards 79 against the greenback by year-end FY24, on a narrowing current account deficit ( ) and weaker dollar index. CAD narrowed to 2.2 per cent of GDP or USD 18.2 billion in the third quarter and the Swiss brokerage UBS Securities sees it further improving to 1.2 per cent of GDP in the current fiscal from an estimated 2 per cent in the just concluded fiscal. Jain said the Reserve Bank will cap any significant rupee gains to rebuild buffers (forex reserves) to provide insurance against potential global spillover. It can be noted that last year the used up as much as USD 115 billion to defend the rupee which was under pressure due to the rising interest rates across the world and the US in particular. On the FY24 outlook she says even though the global financial market volatility has significantly clouded the growth outlook for all, the domestic economy will suffer limited spillover from the strains of the USbarrel in FY24 down from USD 95 a barrel in FY23. The better show in Q3 deficit was led by a narrowed goods trade deficit along with a record high services exports. The monthly goods trade deficit narrowed significantly to 6.2 per cent of GDP annualized in February from a peak of 10.8 per cent of GDP in September 2022, as imports slowed more than exports on easing global commodity prices and weakening domestic demand. That said, services exports have been resilient so far in FY23, at USD 326 billion up 1.7x from the FY20 level. This has the country's share in global services trade share rising to 4 per cent in 2021 from 3.4 per cent in 2019. The pick-up in services exports has been largely driven by software and business consulting services. But Jain expects the growth to moderate going forward as more than 50 per cent of our software services exports go to the US and Canada as the agency believes that the US economy is heading for a hard landing in 2023.
Volkswagen India extends service support to flood-hit customers in Tamil Nadu European automaker has extended its enhanced service support to affected customers in following the impact of heavy rains and flooding in the state, the company said on Saturday. The initiative, with effect from December 22, would offer service support to flood affected car owners including Roadside Assistance, on parts, and car care treatment among others. "Extended service support across regions such as Chennai, Tirunelveli, Tuticorin cities. In addition, the warranty and extended warranty coverage for flood-affected vehicles at these locations are extended until January 31, 2024," a company statement here said. The benefit can be availed by customers opting for insurance or cash claims. In collaboration with insurance companies, Volkswagen India said it was also ensuring swift settlement of claims, facilitating a streamlined process for affected customers. Affected customers can directly contact Volkswagen Roadside Assistance at its toll-free number 1800-102-1155 or 1800-419-1155. Across its dealer networks in Chennai, Tirunelveli and Tuticorin, Volkswagen India said it is implementing special support measures with the objective of ensuring a quick and quality service offering to its customers.
How the world is paying for Putin's war in Ukraine In early March, as the US and its allies unleashed a wave of sanctions on , US President stood in the White House and said they wanted to deal a “powerful blow to ’s war machine.” But as the war in Ukraine approaches its 100th day, that machine is still very much operational. Russia is being propelled by a flood of cash that could average $800 million a day this year — and that's just what the commodity superpower is raking in from oil and gas. For years, Russia has acted as a vast commodity supermarket selling what an insatiable world has needed: Not just energy, but wheat, nickel, aluminum and palladium too. The invasion of Ukraine has pushed the US and the European Union to rethink this relationship. It’s taking time, though the EU took a further step this week by hammering out a compromise agreement on Russian oil imports. Russia is far from unscathed by the sanctions, which have made it a pariah across the developed world. Corporate giants have fled, many walking away from billions of dollars of assets, and the economy is heading for a deep recession. But Putin can ignore this damage for now, because his coffers are overflowing with the revenue from commodities, which have become more lucrative than ever thanks to the surge in global prices driven in part by the war in Ukraine. Even with some countries halting or phasing out energy purchases, Russia's oil-and-gas revenue will be about $285 billion this year, according to estimates from Bloomberg Economics based on Economy Ministry projections. That would exceed the 2021 figure by more than one-fifth. Throw in other commodities, and it more than makes up for the $300 billion in foreign reserves frozen as part of the sanctions. EU leaders know that they should stop buying from Russia and indirectly funding a devastating war on Europe’s doorstep. But for all that ambition, national governments also know there will be repercussions for their own economies. They agreed this week to pursue a partial ban on Russian oil, paving the way for a sixth package of sanctions, but only after weeks of haggling and division. “There are always political constraints on the use of sanctions,” said Jeffrey Schott, a senior fellow at the Peterson Institute in Washington. “You want to maximize the pain on your target and minimize the pain on your constituency at home, but unfortunately, that’s easier said than done.” In the US, officials are debating ways to ratchet up the financial pressure, possibly by helping to impose a cap on the price of Russian oil or slapping sanctions on countries and companies still trading with Russian businesses under restrictions. But such secondary sanctions are deeply divisive and risk damaging relations with other countries. The US has already banned Russian oil, but Europe is only slowly weaning itself off this dependency. That’s giving Moscow time to find other markets — such as commodity guzzling behemoths China and India — to
already banned Russian oil, but Europe is only slowly weaning itself off this dependency. That’s giving Moscow time to find other markets — such as commodity guzzling behemoths China and India — to limit any to damage to export revenue, and its financial war chest. That means the money is gushing into Russia’s accounts, and the financial figures are a constant reminder to the West that dramatic change is needed. Oil-export revenue alone is up 50% from a year earlier, according to the International Energy Agency. Russia’s top oil producers made their highest combined profit in almost a decade in the first quarter, Moscow-based SberCIB Investment Research estimates. And wheat exports continue — at higher prices — as sanctions on Russian agriculture aren't even being discussed because the world needs its grain. The current account surplus, the broadest measure of trade in goods and services, more than tripled in the first four months of the year to almost $96 billion. That figure, the highest since at least 1994, mainly reflected a surge in commodity prices, though a plunge in imports under the weight of international sanctions was also a factor. The ruble has become another symbol used by Putin to project strength. Once mocked by Biden as “rubble” when it initially collapsed in response to the sanctions, it’s since been propped up by Russia to become the world’s best-performing currency against the dollar this year. Putin has also tried to leverage Russia’s position as a commodity superpower. Amid concern about food shortages, he’s said he’ll allow exports of grain and fertilizer only if the sanctions on his country are lifted. “If the goal of sanctions was to stop the Russian military, it wasn't realistic,” said Janis Kluge, senior associate for Eastern Europe and Eurasia at the German Institute for International and Security Affairs in Berlin. “It can still fund the war effort, it can still compensate for some of the damage sanctions are doing to its population.” One of the big holes in the sanctions against Russia is the willingness of other nations to continue oil purchases, albeit at a discount in some cases. Indian refiners purchased more than 40 million barrels of Russian oil between the start of the Ukraine invasion in late February and early May. That’s 20% more than Russia-India flows for the whole of 2021, according to Bloomberg calculations based on trade ministry data. Refiners are seeking private deals instead of public tenders to get Russian barrels cheaper than market prices. China is also strengthening its energy links with the country, securing cheaper prices by buying oil that’s being shunned elsewhere. It’s boosted imports and is also in talks to replenish its strategic crude stockpiles with Russian oil. It’s a similar story for steelmakers and coking coal. Imports from Russia rose for a third month in April to more than double last year’s level, according to official custom office data. And some sellers of Russian oil and coal
and coking coal. Imports from Russia rose for a third month in April to more than double last year’s level, according to official custom office data. And some sellers of Russian oil and coal have tried to make things easier for Chinese buyers by allowing transactions in yuan. “The vast majority of the world is not involved in imposing sanctions,” said Wouter Jacobs, founder and director of the Erasmus Commodity & Trade Centre at the Erasmus University in Rotterdam. “The trade will go on, the need for fuels will be there” and buyers in Asia or the Middle East will step up, he said. When it comes to gas, Russia has fewer options for diverting supplies, but the countries at the end of pipelines from Russia — some of which run through Ukraine — are also locked into a mutual dependency. About 40% of the EU’s gas needs are met by Russia, and this will be the bloc’s hardest link to sever. European deliveries even jumped in February and March as the invasion caused a price spike in European gas hubs, making purchases from Russia’s Gazprom PJSC cheaper for most customers with long-term contracts. Volumes have decreased since then, thanks to warmer weather and record inflows of liquefied natural gas from the US and other countries. There’s also been disruptions because of military activity, and Russia itself halted supplies to Poland, Bulgaria and Finland, which refused Putin’s demand to pay in rubles. Even as the EU reduces its dependency — Germany says it’s down to 35% from 55% — there are complications at every step. Several big buyers of Russian gas have gone out of their way to keep buying the crucial fuel, and utilities such as Italy’s Eni SpA and Germany’s Uniper SE expect supplies to continue. While progress is slow, the direction is only toward more and more restrictions. Even with the uncertain timetable, the pressure on the Russian economy, and Putin’s finances, will eventually mount. The country’s energy sector is also facing an array of other factors beyond demand, from shipping and insurance restrictions to weak domestic demand. Oil production may drop more than 9% this year, while gas output may decline 5.6%, according to Russian Economy Ministry's base-case outlook. “In the Kremlin there's some optimism and even surprise that the Russian economy didn't collapse from the onslaught of sanction,” said Tatiana Stanovaya, founder of political consultant R.Politik. “But looking ahead two to three years, there's a lot of questions about how the energy and manufacturing sectors will survive.”
Here's why drone has become new buzzword in Indian tech space New Delhi: are multi-utility equipment that can easily be used for various purposes ranging from wedding photoshoots to border surveillance. This has led them to become the latest point of interest in the Indian tech space for youth, business fraternity and policymakers. They are basically , the policy regarding which has constantly been updated and upgraded by the Indian government while keeping in mind the country's national security and privacy. Last year, in his tweet about the liberalised Rules, 2021, Prime Minister said, "The will tremendously help start-ups and our youth working in this sector. It will open up new possibilities for innovation and business. It will help leverage India's strengths in innovation, technology and engineering to make India a drone hub." The government has enhanced the coverage by drones from 300 kgs to 500 kgs, under the new Drone Rules. It would also bring down the permit fees to operate drones. India has categorised drones into five segments: Nano drones- Less than or equal to 250 grams Micro drones- Greater than 250 grams and less than or equal to 2 kg Small drones- More than 2 kg and less than or equal to 25 kg Medium drones- More than 25 kg and less than or equal to 150 kg Large drones- More than 150 kg Even though the rules in India for flying drones are mostly for the bigger ones, nano drones only can be operated within 50 feet and permission is required to fly them in restricted airspaces. The Cabinet cleared the production-linked incentive (PLI) scheme in September 2021. This was done to provide incentives up to 20 per cent to the drone manufacturers and drone components over the value addition that they make. In Budget 2022, an initiative to promote and facilitate drones as a service through startups was announced by the Indian government. Though a ban has been imposed on the import of drones in India, the government's aim is to ease the rules of owning and operating civilian drones in India. Individuals who fly drones for commercial purposes or heavier than 2kgs are no longer required to obtain a 'Remote Pilot Licence' to operate legally, instead, they just need a Remote Pilot Certificate, stated the Civil Aviation Ministry, according to Saudi Gazette. One can now obtain a 'Remote Pilot Certificate' from the DGCA-approved drone-training institute after passing the course that would make him eligible to fly micro drones for commercial purposes. A 'Remote Pilot Certificate' can be obtained from the DGCA-approved drone-training institute after passing the course that would grant the eligibility to fly micro drones for commercial purposes. All UAVs will have to be registered and provided with a Unique Identification Number (UIN) before they can be operated. Saudi Gazette has reported that according to a PwC report "Data on Wings -- A close look at drones in India", the drone space in India is catching up with that in other nations and gaining
operated. Saudi Gazette has reported that according to a PwC report "Data on Wings -- A close look at drones in India", the drone space in India is catching up with that in other nations and gaining considerable momentum. Further, the outlet also stated that according to 6Wresearch, the Indian UAV market is poised to grow at a CAGR of 18 per cent during 2017-23 in terms of revenue. Although these numbers will continue to be led by the long-range UAV segment, medium and mini-UAVs are also poised to register healthy growth. The six segments in which drone-based applications are being explored include agriculture, insurance, energy and utilities, media and entertainment, infrastructure and mining. Out of these, infrastructure and agriculture are seeing the most traction, in line with global trends. Governance, strategic planning, security, regulation and proper awareness are some of the aspects of the collaborative approach required for the implementation of drone technology. The successful implementation of drone technology also requires participation from various stakeholders. As per Saudi Gazette, according to a report by FICCI, in collaboration with EY, on Unmanned Aircraft Systems (UAS) market, adoption of UAS is increasing in India and it is projected that the value of the industry and market would be around USD 885.7 million. The same report also pointed out drones' ability to reduce costs of compliance, quality and scope information, enable real-time monitoring and manage geographic spread. Also Read:
The new technology that is making cars easier for criminals to steal, or crash There is much talk in the automotive industry about the " " ( ). This describes a network of and other vehicles that could exchange data over the internet in an effort to make transportation more autonomous, safe and efficient. The IoV could help vehicles identify roadblocks, traffic jams and pedestrians. It could help with a car's positioning on the road, potentially enable them to be driverless, and provide easier diagnoses of faults. It's already happening to some extent with smart motorways, where technology is used with the intention of managing motorway traffic in the most effective manner. A more sophisticated IoV will require even more sensors, software and other technology to be installed in vehicles and surrounding road infrastructure. Cars already contain more electronic systems than ever, from cameras and mobile phone connections to infotainment systems. However, some of these systems might also make our vehicles prone to theft and malicious attack, as criminals identify and then exploit vulnerabilities in this new technology. In fact, this is already happening. Security Bypass Smart keys are supposed to protect modern vehicles against theft. A button on the key is pressed to disable the car's immobiliser (an electronic device that protects the vehicle from being started without a key), allowing the vehicle to be driven. But one well-known way to bypass this requires a handheld relay tool that tricks the vehicle into thinking the smart key is closer than it is. It involves two people working together, one standing at the vehicle and the other close to where the key actually is, such as outside its owner's house. The person near the house uses the tool that can pick up the signal from the key fob and then relay it to the vehicle. Relay equipment for carrying out this kind of theft can be found on the internet for less than £100, with attempts often being carried out at night. To protect against them, car keys can be placed in bags or cages that block any signal emitted from the keys. However, a more advanced method of attacking vehicles is now increasingly being adopted. It is known as a "CAN (Controller Area Network) injection attack", and works by establishing a direct connection to the vehicle's internal communication system, the CAN bus. The main route to the CAN bus is underneath the vehicle, so criminals try to gain access to it through the lights at the front of the car. To do this, the bumper has to be pulled away so a CAN injector can be inserted into the engine system. The thieves can then send fake messages that trick the vehicle into believing these are from the smart key and disable the immobiliser. Once they have gained access to the vehicle, they can then start the engine and drive the vehicle away. Zero trust approach With the prospect of a potential epidemic in vehicle thefts, manufacturers are trying new ways to overcome this latest
they can then start the engine and drive the vehicle away. Zero trust approach With the prospect of a potential epidemic in vehicle thefts, manufacturers are trying new ways to overcome this latest vulnerability as quickly as possible. One strategy involves not trusting any messages that are received by the car, referred to as a "zero trust approach". Instead, these messages have to be sent and verified. One way to do this is by installing a hardware security module in the vehicle, which works by generating cryptographic keys that allow the encryption and decryption of data, creating and verifying digital signatures in the messages. This mechanism is increasingly being implemented by the automotive industry in new cars. However, it is not practical to incorporate it into existing vehicles due to time and cost, so many cars on the road remain vulnerable to a CAN injection attack. Infotainment system attacks Another security consideration for modern vehicles is the onboard computer system, also referred to as the "infotainment system". The potential vulnerability of this system is often overlooked, even though it could have catastrophic repercussions for the driver. One example is the ability for attackers to use "remote code execution" to deliver malicious code to the vehicle's computer system. In one reported case in the US, the infotainment system was used as an entry point for the attackers, through which they could plant their own code. This sent commands to physical components of the cars, such as the the engine and wheels. An attack like this clearly has the potential to affect the functioning of the vehicle, causing a crash - so this is not just a matter of protecting personal data contained within the infotainment system. Attacks of this nature can exploit many vulnerabilities such as the vehicle's internet browser, USB dongles that are plugged into it, software that needs to be updated to protect it against known attacks and weak passwords. Therefore, all vehicle drivers with an infotainment system should have a good understanding of basic security mechanisms that can protect them from hacking attempts. The possibility of an epidemic of vehicle theft and insurance claims due to CAN attacks alone is a scary prospect. There needs to be a balance between the benefits of the internet of vehicles, such as safer driving and an enhanced ability to recover cars once they are stolen, with these potential risks.
Lexus India introduces 8-Year warranty for new models New Delhi: has recently announced 8-years 100,000 km to 8 years160,000 km reinforces our commitment of superior quality, durability, and reliability in every Lexus vehicle and signifies advancement in offering unmatched warranty and providing absolute peace of mind to our esteemed guests. They can now experience outstanding luxury and performance of their Lexus.” he added.
'Used car biz may more than double in 5 years' India's market for used cars is expected to more than double to almost $75 billion in the next five years, driven by increased customer preference for personal mobility after the pandemic, according to CarTrade, a platform for classified automobile ads. There has been a sharp increase in customer preference for personal mobility since the pandemic. This, coupled with easier access to financing solutions and the government's move to register sales of pre-owned vehicles to help expedite the transfer of ownership, will lay down a structure for the used car industry, managing director Vinay Sanghi said. The was valued at $32 billion in 2021. The Ministry of Road Transport & Highways recently issued a draft notification requiring used car dealers to secure an authorisation certificate from the respective state transport authority and to transfer the ownership of vehicles they are selling to their names. The measure, once implemented, will stakeholders, safeguard buyers and add an impetus to the used car segment in India, CarTrade said. "There is enough demand in the market. Supply though is a challenge currently," Sanghi said. "Sales of pre-owned vehicles grow basis the population of vehicles available in the market. It should be higher by 3-5% than new car sales this fiscal." According to Sanghi, who is also the company's chief executive, consumer behaviour has altered significantly since the outbreak of the pandemic, and the ability to consume digitally has gone up. "Almost every vehicle purchase today is researched online. We have seen robust growth on our platform," he said, adding that traffic on the platform had more than doubled in the last three years. CarTrade registered 30 million average monthly unique visitors on its platform in the January-March quarter. It had 1.2 million listings for auction in the fiscal year ended March 31. CarTrade has earmarked an investment of $100 million (around ₹800 crore) in the mid term to acquire and invest in companies which will either help it enter a new market or bring new products and technologies to customers, he said. "We want to digitise the entire ecosystem and offer value-added services, be it auto finance, leasing, insurance, servicing or ownership."
Indian diesel floods to Asia as Houthis imperil flows to Europe Shipments of from India into are at the lowest since 2022 so far this month as Houthi attacks on merchant shipping continue to disrupt international trade, driving more cargoes to Asia. Flows to the European Union and UK plunged as higher freight costs stoked by the ongoing turmoil in the Red Sea, as well as unplanned refinery maintenance in Asia, made trade economics better for sending cargoes east rather than west. Arrivals of fuel from India into Europe averaged just 18,000 barrels a day in the first two weeks of February, a plunge of more than 90% compared with January’s average, according to data from Vortexa Ltd., compiled by . The drop partly stemmed from the higher costs of shipping to the west last month, according to James Noel-Beswick, an analyst at Sparta Commodities. “The economics to export east — Singapore region — were a lot better than those west,” Noel-Beswick said. Tankers heading to Europe or the Atlantic Basin are being forced by the Houthi threat to go around South Africa’s Cape of Good Hope, increasing journey lengths and costs, or use the Suez Canal, “with the risks involved and extremely high war risk insurance.” There were no imports of diesel-type fuel into the EU in the first two weeks of February and only one shipment into the UK, according to the data. However, the Marlin Sicily and Marlin La Plata recently loaded barrels in India and are headed for Rotterdam, with the former signaling arrival later this month, according to port report and tanker-tracking data compiled by Bloomberg. Elsewhere, arrivals of diesel-type fuel from India to Asian destinations — including some cargoes into Saudi Arabia and Bangladesh — surged in the first two weeks of the month. More cargoes, on vessels such as the Peace Victoria and Orange Victoria, are sailing toward East Asia.
MobiKwik collaborates with Cholamandalam MS General Insurance Company, SBI General Insurance CHENNAI: Mobile wallet has collaborated with Ltd and to offer third party and comprehensive insurance plans on its platform. With this partnership, customers will now be able to insure their two-wheelers on the MobiKwik app in just a few simple steps, a statement said on Wednesday. A customer will just have to enter the vehicle number to buy insurance without having access to his/her registration certificate. The product suites would also include add-ons such as zero depreciation, personal accident and 24X7 road assistance, it added. Commenting on the partnerships, Bipin Preet Singh, co-founder, MD and CEO, MobiKwik, said, "We are certain that insurance offerings on MobiKwik platform will not just benefit our 120 million customers but will bring more people in the ambit of insurance. As an added advantage, soon, MobiKwik customers will also be able to utilize MobiKwik Zip, Buy Now Pay Later service to pay their insurance premium." Suryanarayanan V, managing director, Chola MS General Insurance, said that many surveys reveal that many vehicles are uninsured in the country. "It would be our endeavour to cater to the huge organic digital user base of the brand. We plan to innovate and introduce several other new products on this platform in the future," he said. Priya Kumar, head – emerging business, rural & agriculture, SBI General Insurance, said two-wheeler insurance’s significance has been underlined by making the liability plan mandatory. "We have observed that two-wheelers have a high uninsured rate, compared to other vehicles. In fact, as per IRDAI data, the total number of two-wheelers on road in FY 18-19 stood at 17.59 crore, while the total number of policies sold for two-wheelers in the FY 18-19 stood at 5.9 crore." Also Read:
ADAS and AD to co-exist, transform auto ecosystem New Delhi: Autonomy is the buzzword in the mobility world today. From Advanced Driver Assistance Systems ( ) to complete (AD), these technologies are racing against time to transform mobility into a seamless, connected, and convenient experience. Despite challenges related to tech, legal and ethical concerns, cybersecurity risks, and the need for infrastructure updates, the future undoubtedly lies in autonomous driving with degree of autonomy across markets defined as per purpose, demand and regulations. Deepak NG, MD, , says, "Noone could have predicted that ADAS L2 would become a reality in the mass market 10-15 years ago, but here we are. Similarly, while some argue that fully autonomous technology isn't quite ready from a safety standpoint, there's still a lot to be done in terms of safety protocols, regulations, product design, and addressing local and geographic requirements. That said, the fully autonomous system is undeniably the future." He adds that ADAS and AD will co-exist in the , each advancing in response to evolving consumer behaviour and regulatory demands, supported by rigorous testing mechanisms. "You can't view the technology solely from a product perspective. The entire ecosystem needs to evolve, embracing technological advancements to drive the progress towards enhanced autonomy." Shares Ravi G Bhatia, President and Director, JATO Dynamics, “The future of safety and autonomous vehicles is likely be driven by advancements in AI, sensor technologies, regulatory frameworks, and public acceptance.” He adds that AD can transform the automotive market by changing vehicle ownership models, reshaping urban planning, and altering transportation services. “Take MayMobility as an example. Here, autonomous vehicles are providing mobility services to remote locations in the US that cannot be cost-effectively covered via standard bus operations,” explains Dr. Wilfried Aulbur, Senior Partner, Roland Berger LLC. Highlighting that autonomy not only improves safety, but also addresses driver shortages in various parts of the world, Aulbur shares that as a consequence to autonomy, “we will have logistics operations that are cheaper, more reliable and provide better asset utilisation.” Moreover, he adds on the US to see "first relevant commercial application of autonomous applications in CVs this year with Gatik, Aurora and Kodiak. “China is working actively on autonomy as well, and on turning vehicles into ‘smartphones-on-wheels’. I do expect this market to continue to be relevant for autonomy going forward,” points Aulbur. Suraj Ghosh, VP, Minus Zero, says, "We are among the few companies in India working in the early stages of autonomous solutions like L2+, L3, L3+, and L4. The technological landscape shifts significantly when we move beyond ADAS L2, requiring a collaborative effort across the industry and ecosystem—regulators, homologation and testing agencies, manufacturers, and the entire
shifts significantly when we move beyond ADAS L2, requiring a collaborative effort across the industry and ecosystem—regulators, homologation and testing agencies, manufacturers, and the entire supply chain. While India is still evolving in these areas, we can take valuable lessons from markets like the US, Europe, Japan, and Korea." Citing that India is in the early stages of ADAS adoption (L1 and L2), Kavan Mukhtyar, Partner & Leader - Automotive, PwC India, says, “Indian auto industry will be banking big on ADAS L1 and L2 with it cascading down from luxury segment to premium sedans and sub compact SUVs. It looks promising with its impact on road safety and driver efficiency, and we will see industry focusing on localising the supply chain for the technology.” The technology is also expected to advance in CV segment along with scope for full autonomy. Globally, “L3 and L4 AD vehicles are being tested, but widespread readiness is still in progress,” shares Bhatia. Examples include Tesla's Full Self-Driving (FSD) beta, Waymo's autonomous taxis, and GM's Cruise vehicles. Tesla's FSD has faced controversy due to safety concerns and debates over its capabilities. Highlighting on the changing landscape with these software-driven vehicles, Bhatia shares, “Marketing needs to be done by emphasising the balance between advanced technology and user trust- differentiating safety (the car's ability to prevent accidents) from cautiousness (the car's decision-making process in uncertain situations).” Moreover, the experts point on EVs likely to bring better outputs at higher autonomy levels due to their inherent compatibility with advanced electronic systems and overall efficiency as against ICEs and other fuel driven vehicles. “Even if fully autonomous vehicles were available to the public today, they’d be sharing the road with human driven vehicles for decades to come, so we need to continue to look at ways to improve the safety of vehicles, drivers, and roadways. That includes improvements to proven safety technologies like AEB (Automatic Emergency Braking),” shares Joe Young, Director of Media Relations at IIHS (Insurance Institute for Highway Safety).
S.Africa's ArcelorMittal shares down 6% on second day of strike 's share price was down 5.97% at 1500 GMT on Thursday on the Johannesburg Stock Exchange on the second day of a strike over wages, as workers picketed outside its factories. The (NUMSA) began a strike at Africa's biggest steel company on Wednesday, after wage negotiations broke down last week. on Wednesday ordered that workers at the company's steel plants, blast furnaces and coke batteries be excluded from an ongoing job boycott, after ArcelorMittal argued these are essential services barred from striking by law, NUMSA said. "Justice Mahosi of the labour court interdicted the strike temporarily but only for workers in the blast furnaces, coke batteries and the steel plant, until a final judgment has been made," NUMSA said in a statement. The union wants a 10% pay increase, a housing allowance and payment of 80% of medical insurance costs, against the company's final offer of a 7% wage increase. ArcelorMittal was not available to comment. A NUMSA spokesperson said she could not immediately establish how many of union members worked in the departments affected by the court order but said NUMSA was the biggest union at ArcelorMittal, with about half of the company's permanent employees affiliated to it. The company, majority owned by Luxembourg-based ArcelorMittal SA, had 7,133 permanent workers at the end of 2021, its latest annual report showed. On Thursday, scores of striking workers picketed outside ArcelorMittal's Vereeniging plant about 100 kilometres south of Johannesburg, chanting protest songs, burning tyres and blocking roads with cement blocks and debris as police kept a close watch. "We want a 10% salary increase, that's why we are standing outside," Marake Mokoena, a crane driver, told Reuters. "This is because (the price of) everything is increasing, petrol, food and everything, but the company doesn't want to give us that percentage, so we will fight until we get that 10% increase."
I do not expect market to be so worried about inflation: Nirmala Sitharaman Privatisation of Air India was a complex case, a layered case where we had to do all the necessary tying up and be accountable. Others would be less time consuming. It should go as per plan which was announced last year in the Budget, says Finance Minister in an interview with ET Now. There is a committee for startups which you have already announced in your Budget. What is the idea behind that committee because the prime minister two years ago mentioned that the government would be open to considering overseas listing for startups? The committee which I have announced now is more for the private equities and venture capitals. For them there were so many different issues which they wanted us to address. They had a video conference with the prime minister. They also met me and we thought about that area because with all the existing limitations have come out so much that today the startups in India are in the process of becoming unicorns, are able to mobilise resources purely from our own venture capital, from our own private equity. So we thought we should sit and see what best they would want us to do so that they can be even more robust. On Bond Market Today the bond market or the 10-year paper closed at 7% and the view is that markets are nervous about the government borrowing programme and coming back. Is that fear justified, how would you address that fear? Markets have their own readings and I would not question them. After all they sense it and they have been successful in most of their assumptions and the way in which they sense things. But even with that said, I would say I do not expect them to be so much worried about it. They should not be because we are doing it in a very transparent process and also there are so many other revenues, non-tax and better improved collection, all of which will add to our tax buoyancy and non-tax collection as well. So whilst we announce the borrowing and are conscious of the ways in which we are readying ourselves, it should not fluster them. I am very confident that to a large extent, we will be able to manage and the announcement is not an irresponsible hasty knee-jerk announcement. I wonder if there is a direct correlation between my announcing the number of how much I am going to borrow and what is developing there. It is also partly because of the US Fed’s possible actions. Otherwise how do I read the bond market responding similarly like the way they have responded post my Budget, responding like that two or three days earlier, prior to budget too. The yield started going higher… That going up has nothing to do with the Budget. I did not announce any numbers and so I have a feeling they are alert to the global developments. They are sensing a lot of global changes and policy interventions, all of which probably is also working in their mind and it is just not my number. No decision has been taken on India’s bond inclusion
are sensing a lot of global changes and policy interventions, all of which probably is also working in their mind and it is just not my number. No decision has been taken on India’s bond inclusion in the global index. From the ministry standpoint, is that still up for consideration and since no decision has been taken. it is a shut case now? No, no decision has been taken. It is not a shut case. We would say if it is a shut case. Privatisation Plans I would like to draw your attention to the disinvestment numbers. Air India was a very tough disinvestment. The divestment process in India has changed now. It is no longer selling via ETF, in drips and drabs or pseudo disinvestment. Instead of divestment, should it be called privatisation now? I used the word privatisation in the last Budget and I was grateful to the media which received it very well. The process is on, we are going ahead with it. There is no change but it is true that the systems in the government consume a lot of time in complying with the existing rules. Air India was a classic case, a complex case, a layered case where we had to do all the necessary tying up and be accountable. Others would be less time consuming. It should go as per plan which was announced last year in the Budget. The indications we got is LIC IPO will hit the market very soon. Will LIC IPO hit the market with a 5-10% stake and will the government stake stay there because in some of the other government listings like Coal India, NTPC. in subsequent years the stake has come down. What are your thoughts there? At this stage, where the red herring prospectus is likely to be announced, it would not be good for me to comment or speculate on it. Just wait for the document to be out. As I said, our approach will continue to be what we have announced in the Budget last year. Through this Budget I want to provide the continuity, the stability and a predictable course for everybody saying what has been announced, will continue. The revenue secretary today mentioned the names – BPCL, Shipping Corporation, Container Corporation, Concor. So I am assuming that… All that which were mentioned earlier has been cleared by the cabinet already. But rather than looking at a number and comparing that with whether the number is big or small, it is important for our viewers to understand what is the roadmap on disinvestment and privatisation. You have extended this point in the past that the government only wants to be in the critical businesses. Yes that core sector definition has been given. Again in the last year’s Budget, we defined what were those absolute critical strategic sectors. Whilst opening up for the private sector, we will keep at least a bare minimum number of public sector units in that category. I will have a certain number of government owned banks. Similarly, in the insurance sector – general insurance, life insurance, insurance underwriters are the categories. Under each one, we will have to keep some core
number of government owned banks. Similarly, in the insurance sector – general insurance, life insurance, insurance underwriters are the categories. Under each one, we will have to keep some core control. So is Rs 65,000 crore just a moving number then because the whole mantra of minimum government and maximum governance ties beautifully with the privatisation process. Next year, will a lot of things happen? Absolutely. Yes. How much can you do within a year is also the question. That is why I am saying do not forget that from last year’s Budget, we are doing this continuously. So each year something or the other will have to happen. Are you being conservative and keeping cushions purposely on the assumption side for tax collection and also on the disinvestment side? No I am being realistic I would say. But that could also be a view of the economy because if you are assuming a conservative growth in taxes, that ties in with your view on the economy. It ties with the view that I have to be fair about the numbers I give. It ties with the view that I want to be honest about the numbers. On Market & Taxation Every time when there is a Budget, the equity market wants to know about the same question – STT, long term, dividend tax. Now the tax collections are coming back. Do you have enough data where you can take a view that all these three taxes should coexist? On the long term capital gains, when was it introduced and what was defined as long term then. Wasn't it at least three years and more? Yes. From the time of introduction of the latest LTCG, we have just completed three years and in the three years say two years have gone in the pandemic. So what is the measure with which I can test the performance or non-performance or failure of the policy of LTCG that was brought in by this government? Before I even assess that, before I even see what impact it has had on capital gains at all, there is a demand do something on it. Why? What? Please. I want to quote you from our last interaction exactly a year ago. I asked you will the taxes go down? Your reply was I have not applied my mind about bringing rates down or increasing, I want a stable tax regime, I am completely against a mercurial one that changes every year and the tax regime is being stable. But what about the DTCA roadmap and I specifically remember you had mentioned that on 75 years of independence, you could reconsider the surcharge on the super rich? I have already laid the roadmap for a Direct Tax Code which is more simple and easy to comply with in the year before last Budget. Last budget, we gave a twin track, get out of exemptions if you want and here is another track in which if you come in. it is simple and you pay this much which is easier, lesser tax and nothing to worry after that. That is the beginning that I have made. I am seeing progress in it. People are moving. So these are steps forward in that direction. The prime minister had promised incentives for honest tax payers. I
is the beginning that I have made. I am seeing progress in it. People are moving. So these are steps forward in that direction. The prime minister had promised incentives for honest tax payers. I have thanked them last year and this year, I have been thanking them. But just a thank you, nothing more? No, not even saying thank you also would have been a crime. I have crossed that one stage and I do not see anything more. There are things which have been done and first of all bringing faceless taxation, reducing the time to which your records will have to be kept, subjecting yourselves to reviews – all that has changed. I remember in 2019. the first loud call was tax terrorism. Would you say that today? Household searches will happen but harassment, no. This is the most underappreciated part a by lot of people that how ease of doing business and tax compliance has only been leading to better results. What are the numbers which prove that? First of all two things here; at a time when we are coming out of the pandemic, the GST collection is improving where it is the businesses who paid. The consumer end is being collected but the retailer or somebody who pays it. If it is increased, it is not just because businesses are expanding. Yes businesses are expanding but plugging of loopholes, plugging of leaks, stopping false claims, cutting down on fake claims are all ways in which the same number of people and size of business is yielding better results. So that is one of the things I am seeing working even in direct taxation. So bringing in technology in tax practice has made a lot of difference and that difference is something which I would like to continue because whilst it might impersonalise the matter, there could be still some people who would want to go and meet the office and say this is what I am doing, you are welcome to it, but the administration will have to be non-discretionary and it has to happen by default ideally. That is where we are taking the whole thing. So I would focus on that first. On Crypto The sovereign in its right has put in a transaction tax. That is the right of a sovereign. But is this also an indication by the sovereign that they are trying to curb speculation? Well if it eventually leads to cutting down on speculation, it could be one of the collaterals. But we are going there to make sure that if any profit is being made and they will have to pay a share to the government exchequer. But if it results in lack of or reduction in speculation, well… So we should not read too much into the intent of taxation? No, at this stage I am open minded about what is happening there. That is why the consultation and that is why I am steadfast at least about saying that I am not giving anything which is in my mind yet because I have to form my thoughts once the input comes. Because that is the view coming from the regulator? Of course, I have consulted both the SEBI and RBI not once, but several times. We have been having this
to form my thoughts once the input comes. Because that is the view coming from the regulator? Of course, I have consulted both the SEBI and RBI not once, but several times. We have been having this continuous interaction with them. It is not without the consultation with regulators of monetary affairs and regulators of the stocks. So as of today, it should only be read as tax on a transaction and sovereign in its right has put a tax on transaction, nothing more, nothing less? Absolutely. Rising Rates A very basic question. I am a borrower. I have a home loan, I have a car loan. Interest rates will move higher. If interest rates move higher, one of the reasons why demand made a comeback is because rates have been artificially low both locally and globally. Is rising interest rates the biggest challenge this year or next year? But equally there are saving elders, senior citizens, small savings people who for a very long time have been at the raw end. Their savings have not yielded anything to them. Senior citizens, whose lifetime savings are giving them minuscule amounts. They probably will be looking forward to the day when rates can go up. On GST rationalisation The decision to rationalise GST will be taken by the GST Council. Everybody is aware of that. But what is your personal view? Given that tax buoyancy is coming back, should rates be rationalised? No rates have to be rationalised at least to the extent where there is inversion. That is my first step because otherwise which business will agree with you giving refunds much more than earning out of any item? You are giving refunds much more than what is coming in the name of revenue. Is that a good business? There should not be any loss to anybody. Nobody should be taxed much more than what actually is pronounced or announced policy. But there are times when the government is ending up with collecting nothing. If anybody is giving refunds and there are some perverse incentives which have got built into the system whereby the more they produce, the more they manufacture, the more they sell, the more refunds they get. The perversion in the system which is crept in is not justifiable at all. To that extent, I want a correction. In order to keep consumer interest at bay, the government announced a retail fuel duty cut after Diwali. Crude prices have gone higher and given how there are imbalances and geopolitical challenges, if crude prices go higher, will you be forced to bring taxes down? I will have to see how it goes because last year we had extraordinary increases in fuel prices, extraordinary increases in fertiliser prices, all of which was absorbed partly in fuel but almost near totally in the case of fertilisers, for urea, which comes from elsewhere. So global prices have impacted us and last year we did take a huge share of that global price impact on ourselves. Indians are now changing their asset allocations. SIPs have started, Indians are investing in equities, they are betting on
year we did take a huge share of that global price impact on ourselves. Indians are now changing their asset allocations. SIPs have started, Indians are investing in equities, they are betting on Indian entrepreneurs. Gone are those days when FIIs were the only investors. It is a very proud moment for all us. That is why look at the number of demat accounts, net ones, unique ones. Is the finance ministry happy with that or do you think it is a bubble and would like to warn retail investors? No, the retail interest in the stock market is a healthy sign. Our youngsters are finding that there are ways other than keeping money in fixed deposits; there are ways in which they can engage, however risky it might be. If you were a discerning investor, you are able to see which are the companies doing well, which are run transparently, where board driven processes are guiding the companies and therefore invest in such companies. I welcome that. Your speech was relatively short but on the words you have really made a powerful impact. Was that the intent this time? Yes certainly. Last year too and this year too I have myself written the speech. I have spent a lot of time in making sure that the words matter and that it should not be a haranguing speech that people think oh! my God why she cannot end. I wanted it to convey what is there. Do you check stock markets, bond yields or even value of rupee on a daily basis? Don’t my answers reflect it. Also Read:
Why India@100 will lead tech innovation for the entire world For decades, it has almost been a joke that Indian parents only want their children to be either engineers or doctors. But the parents’ proclivity is today massively paying off for the country. The world’s most valued companies are technology companies. Every company and every country is trying to make technology an integral part of their operations. So, the world just can't seem to have enough of engineers, and those who know science, maths and statistics. And India, with its phenomenal and abundant talent in these fields, is in the sweetest spot it can think of as we celebrate the 75th anniversary of our independence. When we look ahead at the next 25 years and the role India will play in shaping the technology landscape worldwide, the potential looks immense. , president of the IT industry body , said on our webinar last week that we are in an amazing place today in terms of the opportunities that are present and the capabilities that we are seeing getting developed in India and by the Indian ecosystem. “Technology is the greatest tool we have in our hands to actually be in a position where we can think of solving some of the really big problems that's facing humanity. And I honestly believe that India is tremendously poised to lead this shift that we need to see – from the focus on innovation and implementation, to creating large-scale impact at scale across sectors, from healthcare to education, to agriculture.” Ghosh said the digital public goods platforms that have been built in India, like UPI, provide a unique advantage. Especially with regards to the scale of the solutions that are built. She said one should think of these platforms as the digital highways that will help connect every citizen to service providers. “These platforms enable companies – big and small, multinational or Indian – to all come and play together, and create their unique solutions and products with the ability to reach people right up to the grassroots level,” she said. The immense, untapped talent potential of the country is another factor that is expected to help India leapfrog other countries in tech domains in the next few decades. “If you look at the business process management (BPM) industry today, almost 50% are women. But the reality is, there is still a huge untapped resource base of women as well as other people,” said , group chief executive officer of , one of India’s leading BPM companies. Talent in smaller cities in India, Murugesh said, is the other main vein of gold waiting to be taken advantage of. “We are investing in more of these locations. Work from home has become a model that everyone is talking about, and we are creating new offices in these tier-2 and tier-3 locations, and telling staff that they don't need to leave their hometowns,” he said. , managing director for IBM India and the South Asia region, said the ability of our existing talent to grasp new technologies is also
staff that they don't need to leave their hometowns,” he said. , managing director for IBM India and the South Asia region, said the ability of our existing talent to grasp new technologies is also deeply impressive. “Very recently, we launched some programmes in the northeast, in places like Nagaland and Assam, and the output that we are seeing there, and the potential that we are able to untap there, with the right kind of skilling initiatives, it's just phenomenal,” he said. Patel said technology would be crucial for India to develop a prosperous economy over the next 25 years. “India's rollout of 5G communication technology, growing adoption of hybrid cloud, artificial intelligence, , internet of things, these are going to be critical in paving the way for a trillion dollar digital economy by 2025,” he said. Deep tech and data There is also tremendous opportunity in the deep tech space, Kunal Bahl, co-founder of the AceVector Group, said. AceVector includes Snapdeal, the e-commerce firm that Bahl co-founded 12 years ago. “India is still in the very early stages. We have really high-quality engineering talent, and it's driven largely by the history of many of the global technology companies opening their development centres here. This has created an enduring momentum of a huge talent pool that is very adept at understanding how global quality products are built,” he said. But talent alone, he noted, is not enough for a deep tech ecosystem to flourish. Availability of very large pools of data is crucial to train algorithms. Here too, Bahl said, India has a massive advantage. “I met a company some time ago that was building a deep tech product for insurance companies to assess, using a simple camera from the assessor’s phone, on whether a car has dents or not. Now, the challenge in western markets is they just don't have enough dents on cars. We don't have that problem in India. So, the team just walked around the city and took videos of cars parked on the street, and over a period of time built a huge data set that actually created an accurate algorithm that they're now selling to global insurance companies.”
Why are other automakers chasing Tesla's 'Gigacasting'? Toyota Motor said this week it will adopt a technology pioneered known as " " as part of a strategy by the Japanese automaker to improve the performance - and lower the cost - of future (EVs). Toyota is not alone in following Tesla's breakthrough. Here's a look at Gigacasting and how the innovation is forcing automakers to scramble to match Tesla: What is Gigacasting? The Giga Press is an aluminium die-casting machine adopted by Tesla at its factories in the U.S., China and Germany. The house-sized machines are able to produce aluminium parts far bigger than anything used before in auto manufacturing. The "giga" in the name is a nod to Tesla's convention of calling its plants "Gigafactories". Other automakers have taken to calling them "megapresses", which also can refer to smaller but still massive machines. In operation, the press takes in a shot of molten aluminium of 80 kg (176 lb) or more into a mould where it is formed into a part, released and then quickly cooled. Tesla has developed an aluminium alloy that also allows it to skip the heat treating traditionally used to increase the strength of the cast part. What's the payoff? Typically more than a hundred individually stamped metal parts have been welded together to make a car body. Fewer parts, lower costs and a simplified production line have contributed to Tesla's industry-leading profitability, analysts have said. For Tesla, the use of a single component in the rear of the Model Y - its best-selling model - allowed it to cut related costs by 40%, the company has said. In the Model 3, by using a single piece from the front and rear of the vehicle, Tesla was able to remove 600 robots from assembly, has said. It can also cut a vehicle's weight - an important consideration for EVs where the battery pack alone can weigh more than 700 kg. And it has the potential to reduce waste and greenhouse emissions from a plant. Toyota said it expected that using aluminium die-casting would eliminate dozens of sheet metal parts from assembly and reduce waste. Who makes the machine? Tesla sources its presses from Italy-based IDRA, which has been a unit of China's LK Industries since 2008. Competitors of IDRA and LK include Buhler Group in Europe, Ube and Shibaura Machine in Japan, and Yizumi and Haitian in China. The global aluminium die-casting market was worth almost $73 billion last year and is projected to top $126 billion by 2032, showed an AlixPartners analysis. Who's chasing it? In addition to Toyota, General Motors, Hyundai Motor and affiliates of China's Geely - Volvo Cars, Polestar and Zeekr - are using the technology or planning for it. Zeekr has started using massive aluminium die casts for a multi-purpose van it makes for sale in China and has said it will introduce the technology for other models. Volvo said last year it would invest more than $900 million to upgrade its plant near Gothenburg, Sweden, to include megapress technology.
has said it will introduce the technology for other models. Volvo said last year it would invest more than $900 million to upgrade its plant near Gothenburg, Sweden, to include megapress technology. What's the catch? Cost is one. Tesla records most of its sales with just two models: the Model 3 and Model Y. High sales volume on just two platforms make it easier to justify the investment in new production technology. Other EV startups also have that advantage. For legacy automakers with more complicated product lineups and factory machinery that is already amortized, the decision to invest tens of millions of dollars in new casting technology can be a harder call, analysts have said. Cars with body sections cast into single pieces could also be harder or more expensive to repair after an accident. That could add to the cost of operation for EVs. Already insurance companies are writing off EVs with low mileage if they have damaged batteries because there is often no way to repair even slightly damaged battery packs.
Zingbus launches free travel insurance for its customers NEW DELHI: , the technology-enabled intercity mobility company, has announced the launch of the first-ever insurance cover for all user bookings made via the zingbus web and mobile app. Based on the strategic partnership with (primary insurer)and (as an aggregator), this free-of-cost will safeguard travelers and enable them with the most vital trip protection benefits. Speaking on the launch, Prashant Kumar, CEO and Co-Founder of zingbus commented, "We’re excited to launch this insurance cover for bookings exclusively through our web & mobile platforms. This reflects our mission to focus on making intercity travel affordable and safe for everyone." Zingbus would offer this all-in-one insurance package as a comprehensive benefit to all its travelers while covering unforeseen circumstances. The insurance will benefit the travellers with personal accidental cover upto Rs 7, 50,000 Emergency medical cover up to Rs 3,00,000, Baggage loss claim up to Rs 5,000, Out-patient expense coverage up to Rs 25,000 & Medical evacuation up to Rs 10,000. In a statement, Prashant Kumar added, "We’re always on the lookout for new ways to elevate the safety coverage for our travelers. The scope of this integrated free insurance cover is to serve as a safety net, from the point customers on-board zingbus till they complete their journey. It would offer personal accidental cover & baggage loss cover, among others. And, having these risks covered will ensure additional protection for our passengers. This added benefit will help us to improve the customer experience while they’re traveling with zingbus."
Swiggy, Zomato operations hit as delivery workers strike in Mumbai Operations of food delivery majors and were hit in several parts of Mumbai on Monday as delivery workers went on demanding higher incentives and better working conditions. The strikes starting on Sunday are organised collectively by multiple organisations including Shiv Sena-affiliated Rashtriya Karmachari Sena and Indian Federation of App-based Transport Workers ( ). Thousands of delivery workers in Swiggy and Zomato joined the strikes, claimed Shaik Salauddin, national general secretary of IFATW. ET could not independently verify the number of delivery partners striking. Swiggy and Zomato did not respond to requests for comment on the strikes. Delivery workers’ demands include better distribution of orders and workloads, optimisation of pickup and drop distances, comprehensive insurance coverage for workers and their families, and equitable access to incentive programmes. IFATW has called for a ‘Social Security Bill’ for gig workers in Mumbai, similar to a recent legislation passed by the Rajasthan government. It also demanded a “tripartite board” with “representatives from aggregators, worker organisations, and the government” to implement schemes for workers, and asked that ecommerce platforms pay a “welfare cess” towards a collective fund for gig workers. “We know of about 3,500 delivery partners whose IDs have been deactivated by platforms, not just in Swiggy and Zomato but across platforms, due a variety of reasons that were beyond their control, like bad weather or packaging issues or wrong location. This kind of deactivation without verification or bargaining is very harmful for workers,” Salauddin told ET in an interaction. He said the striking workers were in conversations with delivery workers of other organisations like Zepto to join their protest. He did not give a timeline for how long the strikes would last, saying it would go on “as long as it does not start hurting the workers.” In April, delivery workers of Zomato-owned quick commerce platform had gone on strike after the company changed its payout system from a flat Rs 25 per delivery (plus Rs 7 during peak hours) to a Rs 15 per delivery minimum fee along with a distance-based component. The Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill, 2023, passed in the state assembly in July, is widely considered to be the first law of its kind in the country to protect gig workers.
After-sales service provider Automovill raises INR 2.15 cr in Pre-Series A round New Delhi : provider Automovill has raised INR 2.15 crore in a Pre-Series A round led by . Following a hybrid and flexible business model, Automovill has the 3 rd largest presence across India, while catering to over 15 lakh customers. Automovill has enhanced its technology offerings to strengthen and organize the automotive after-service and maintenance industry. In order to improve current products and bring about synergy in technology, the funds raised will primarily be used to expand the current scope of capital expenditure. It will also strategically channel and smoothen operations, and broaden its marketing scope. They include carrying out the on-going research on potential abilities to fix the challenges of car servicing by introducing hassle-free, open, and affordable solutions via a technological platform, and assisting in the accumulation of orders and creating direct and indirect jobs within the ecosystem and thus contributing to the growth of its partners. Mitesh Shah, co-founder, Inflection Point Ventures, said , “India is one of the largest automobile markets in the world. We have almost all the auto brands from affordable to being sold in India. However, the post-sales and service journey is quite broken at multiple stages. Maintaining cars by using dealers’ service centres is an extravaganza while the customers would not feel it safe to leave their cars with the local garage as it can lead to more problems than solutions. Automovill is tapping into this market which is highly expensive on one end and totally unorganized on the other. Our interest in the company comes from the fact that it is a hugely untapped market with only a few organized players, and we are confident that with the disruptive and tech-enabled strategy of Automovill, we will see it growing faster than its peers at an all India level.” was founded in 2015 by a trio of experienced partners, Mridu Mahendra Das, Chinmay Baruah, and later joined by Ramana Sambu, who found the cost-effective, hassle-free, and customer-oriented service for every car owner. At present, Automovill is present in 20 cities in India catering to retail customers and clients from used car sellers, ride-hailing, and auto insurance through its network of 200-plus workshops. Due to the limited number of players who are actively attempting to organize this market, Automovill has the advantage of capturing a larger share of the market before it becomes overcrowded. The garage network is built on stringent parameters. The partners who wish to come onboard Automovill’s platform are put through a selection process for service and repair work. Customers can make a service reservation through the company's website, mobile app, or customer service line. The operation executive sends a driver to pick up the car from the customer's location and deliver it to an appropriate vendor partner after receiving confirmation of the
or customer service line. The operation executive sends a driver to pick up the car from the customer's location and deliver it to an appropriate vendor partner after receiving confirmation of the request and comprehending the car issue. After the customer has approved the job estimate, the servicesemi-organized sector. Given that 98% of the off-warranty segment is currently catered to by the unorganized sector and conservatively assuming Automovill can garner only 1% of the unorganized market in the next 3 years, the top-line potential is INR 150 crore by FY24. : Indian used car volume was estimated at 3.9 million units (USD 18 billion in value) in FY21, down from 4.1 million in FY20 due to COVID. The used car market volume in the country is expected to reach 7.7 million by 2026 and is estimated to be valued at USD 44.7 billion In the upcoming years, it is anticipated that this segment's growth would increase even further. Compared to new car sales, used car sales will continue to increase as people's preferences for personal mobility and the after-sales industry will be more price sensitive. India is also competing with the developed economies and the used carnew car ratio of 3.5 and 2.4 respectively. Insurance claim: Automovill has grown immensely is Insurance claim which is contributing to 30% of orders now. It is facilitating cashless insurance claim in 20 cities for 18 insurance companies. Automovill has also developed its own insurance claim registration platform for agents and it is available in the playstore. Automovill has also started supplying high quality Lubes to its partnered network for better quality and control for the services rendered by its workshops. Also Read:
Centre hikes financial package for rubber sector by 23% to INR 708 cr New Delhi, The financial assistance for the under the 'Sustainable & Inclusive Development of Natural Sector' scheme has been increased by 23% from INR 576.41 crore to INR 708.69 crore for the next two financial years (2024-25 and 2025-26), the Commerce and Industry Ministry said on Monday. It said that to support the rubber industry, planting of rubber will be undertaken in 12,000 hectares (ha) in traditional areas during 2024-25 and 2025-26 with an outlay of INR 43.50 crore. "For this, the rate of assistance has been increased to INR 40,000 per ha from the earlier INR 25,000 per ha. This will help to cover the increased cost of production as well as provide additional incentive to growers for planting rubber," the ministry said. The ministry said that another 3.752 ha will be brought under rubber cultivation in non-traditional regions with an outlay of INR 18.76 crore during the same period. "Planting materials worth INR 50,000 per ha will be supplied by the Rubber Board. This will be over and above the plantation being carried out under the INROAD project in the North East. Planting assistance at INR 2,00,000 per ha will be provided for SC growers in non-traditional regions," the ministry said. It added that sponsored nurseries will be promoted by the Board in non- traditional areas for generating good quality planting material (new component). Assistance will be provided at INR 2,50,000 to 20 such nurseries. "The government is planning a slew of measures aimed at productivity enhancement of rubber produced. Towards this, support shall be provided for rain guarding in 67,000 Ha (60,000 in Traditional, 5000 in NT and 2000 in NE) area and plant protection (spraying) in 22,000 ha (20,000 in Traditional and 2000 in NT). An amount of INR 35.60 crore is envisaged to be provided for this in the next two years," the ministry said. The ministry said that the scheme promotes forums of smallholders of rubber viz., Rubber Producers Societies (RPS) for empowerment of rubber growers. "In the next two years assistance will be provided for the formation of around 250 new RPSs. The scale of assistance has been increased from INR 3000 to INR 5000 and the same will help support farmer education, seminars, group meetings, capacity building activities, exposure visits, model farms and other activities for the overall benefit of stakeholders," the ministry said. It added that the formation of another 1450 farmer clusters will be supported in non-traditional and NE regions. "The mobilisation of rubber growers into Rubber Producers Societies will help in improving price realisation for the rubber produced by the growers," the ministry said. It said that an assistance of up to INR 40,000 per RPS will be provided for latex collection and DRC testing equipment to 55 RPSs. "For farm mechanisation, RPSs will be supported for purchasing sprayerworkers and for attracting more tappers, particularly women
provided for latex collection and DRC testing equipment to 55 RPSs. "For farm mechanisation, RPSs will be supported for purchasing sprayerworkers and for attracting more tappers, particularly women tappers. "Various measures like Educational Stipend, Women empowerment schemes, Assistance for House construction, Group Life Insurance cum Terminal Benefit, Personal Accident Insurance Scheme and pension scheme have been provided for with an outlay of INR 7.02 crore for the next two years," the ministry said.
Hyundai, Kia agree to USD 200 million settlement in over US car thefts and agreed to a consumer class-action lawsuit settlement worth USD 200 million over rampant car thefts of the Korean ' vehicles, lawyers for the owners and the automakers said on Thursday. In February, the Korean automakers said they would offer software upgrades to 8.3 million U.S. vehicles without anti-theft immobilizers to help curb increasing car thefts using a method popularized on TikTok and other social media channels. The settlement covers about 9 million U.S. owners and includes up to USD 145 million for out-of-pocket losses for consumers who had cars stolen, lawyers for the owners said. Hyundai and Kia said they will compensate owners "who incurred or damage in addition to reimbursement for insurance deductibles, increased insurance premiums, and other theft related losses." For customers whose vehicles cannot accommodate security software upgrades, the Korean automakers will provide up to USD 300 for the purchase of steering wheel locks and other theft deterrent or prevention devices. "The settlement will provide benefits as soon as possible to those who have suffered out-of-pocket losses," said Steve Berman, a lawyer representing owners. TikTok videos showing how to steal cars without push-button ignitions and immobilizing has led to at least 14 reported crashes and eight fatalities in the United States, regulators said in February. The consumer settlement covers owners of 2011 through 2022 model year Hyundai or Kia vehicles with a traditional "insert-and-turn" steel key ignition system. It includes payments for total loss of vehicles up to $6,125, damage to vehicle and personal property up to USD 3,375 and insurance-related expenses. Other related expenses including car rental, taxi or other transportation costs not covered by insurance are also included by the settlement. Owners can get reimbursed for towing costs and for stolen vehicles that suffered crashes or were never recovered, as well as payments for tickets or other penalties or fines incurred arising from a stolen vehicle. Many major cities have sued the automakers over the thefts including St. Louis, Missouri, Cleveland, Ohio; San Diego, California; Milwaukee, Wisconsin; Columbus, Ohio; Baltimore and Seattle.
Audi India opens ‘Audi Approved:plus’ used car showroom in Mumbai West New Delhi: German luxury car manufacturer, on Monday inaugurated its pre-owned luxury car showroom - :plus, in Mumbai West, the company said in a release. According to the company, spread across 2000 sq.ft, Approved:plus will cater to the rising demand for pre-owned luxury cars in the suburbs of Mumbai and the nearby areas. With 300+ multiple level quality checks, every Audi pre-owned vehicle undergoes mechanical, bodywork, interior and electrical inspections along with a full on-road test. Balbir Singh Dhillon, head of Audi India, said, “We are fully geared to expand our retail presence of Audi Approved:plus facilities in 2022. Just a few weeks ago, we inaugurated a new pre-owned car facility in South Mumbai, and today, we are adding another one in Mumbai West.” “These new facilities will cater to the rising demand for pre-owned luxury cars in Mumbai as more individuals progress and want to seek an upgraded driving experience. Audi Approved:plus forms an important part of our overall business strategy and we will soon expand to many more cities in 2022,” he added. The Audi Approved: plus programme in India offers 24x7 Roadside Assistance and complete vehicle history before purchase. Additionally, customers can also avail easy financing and insurance benefits through the programme, the release said. Gautam Modi, dealer principal, Audi Mumbai West, said, “We share a long and fruitful relationship with the Audi brand and are glad to take our partnership forward with the opening of Audi Approved:plus showroom in Mumbai West. We are very happy to continue our partnership with the Audi brand with a pre-owned car showroom. We look forward to welcoming customers to our new showroom.” Also Read:
Adani Group's drone division exploring two revenue models similar to tractor industry The 's commercial drones division is exploring two revenue models -- dealer-based and service-based -- while keeping its primary focus on the agriculture sector, a top official of the conglomerate said on Saturday. In a dealer-based model, the equipment is sold directly to the customer. In a service-based model, the equipment is provided for various services for a fee in partnership with a local entrepreneur or an institution. The tractor industry uses both these sales models. "We are exploring both models -- dealer-based model and service-based model. Depending on the market response, we will take our decisions," Rangarajan Vijayaraghavan, Vice President, and Chairman's Office, Adani Group, told PTI in an interview, a day after the conglomerate announced acquiring 50 per cent equity stake in start-up . He said the Adani Group is considering multiple areas in the commercial drone sector and "one of the primary areas of focus" is agriculture. "This is in line with the prime minister's vision of use of drone technology to improve farmers' livelihood. With our commitment to nation building, we have been deeply inspired by the prime minister's vision and we believe there is a significant opportunity in the market," he mentioned. In the service-based model, the Adani Group will provide drones for services such as pesticide spray for a fee in partnership with a local entrepreneur or an institution, which in this case will be pesticide companies, he mentioned. He said the agriculture sector gets a unique benefit when a drone is used -- the combination of the pesticide deployment as well as the reduction in water and labour requirements provides cost as well as convenience advantage to the farmer. "We are hopeful that we will be able to leverage that (benefit) in the days to come," he added. The Adani Group had announced on Friday acquiring 50 per cent equity stake in agricultural drone start-up General Aeronautics for an undisclosed amount. The Bengaluru-based General Aeronautics specialises in developing robotic drones to offer tech-enabled crop protection services, crop health monitoring, precision farming and yield monitoring services using artificial intelligence and data analytics. Vijayaraghavan said General Aeronautics is into agricultural drone production and services. "Production is outright sale of the drone itself and the services are basically around charging a revenue per acre in order to do the pesticide spray," he mentioned. With this acquisition, the Adani Group expects to help General Aeronautics scale rapidly into multiple geographies as it has technology developed over the years and a national-level market access, thereby reaching millions of farmers in the country, he noted. While talking about revenue models in the commercial drone sector, he said a lot of parallel can be seen in how the tractor industry has evolved in the past. He talked about two
country, he noted. While talking about revenue models in the commercial drone sector, he said a lot of parallel can be seen in how the tractor industry has evolved in the past. He talked about two revenue models in the tractor industry. "One is that you have outright sale of the tractors by original equipment manufacturers (OEMs) in which case the primary channel of sale is through a dealership," he said. The second model is a service-based model where the company partners with an entrepreneur or an institution and offer the tractor on per hour or per acre basis to farmers. "We expect the outright sale model (or dealer-based model) in the commercial drone sector to evolve with time," Vijayaraghavan noted. Under the service-based model, a drone company or a local entrepreneur can offer a bundle of services to a farmer that include not just spraying of pesticides but also the pesticide itself, maintenance of the drone, etc., he mentioned. A service-based model also helps a company to build a connect with farmers as it has the ability to engage with them at an issue-level. "You build a respect and a stickiness with the farmer. Very valuably, you get a data out of it to understand the efficacy of the drones, the pesticides, and how it has helped the farmers' outcomes," he added. It is expected that the data will become powerful in itself that it will help farmers who are looking for things like crop insurance or loans against output, he mentioned. Asked about the company's manufacturing plans, he said the Adani Group already has manufacturing facilities in Hyderabad and Bengaluru which have been purposed for military applications. "With our stake acquisition in General Aeronautics, we expect to augment our manufacturing capabilities. They are, however, of different types. A military drone and an agricultural drone are not necessarily the same in terms of throughput. Agriculture is more about mass production, military drones are a lot more niche," he said. However, the Adani Group expects that there will be some cross pollination of knowledge to happen between the two, he added. Asked if the Adani Group's manufacturing plants -- which currently manufacture military drones -- will be manufacturing civilian drones, he said, "They will not manufacture directly the (commercial) drones. We expect the partner firm to manufacture the (commercial) drones." However, there could be common components that could be manufactured at these plants, he added. He said the Adani Group's presence has been strong in the military drone sector since 2016. "We have also had a good track record of working with small-sized to mid-sized companies (MSMEs) to help them scale up in the military drone sector. We are now looking to take the same skill set and apply it into the commercial drone sector," he added. Vijayaraghavan said around 70-80 per cent of the drone market has historically been about military applications. "We expect the trend to reverse in the next five years
drone sector," he added. Vijayaraghavan said around 70-80 per cent of the drone market has historically been about military applications. "We expect the trend to reverse in the next five years wherein 70 per cent share will be with the civilian drones and the remaining will be with the military drones," he mentioned.
Buying an electric vehicle? Here are the costs to consider With petrol and diesel at around INR 100 per litre, electric vehicles are gaining traction. As per reports, India saw remarkable sales of electric vehicles in August of about 9% month-on-month growth to 1,26,324 units, while year-on-year figures were at a staggering 43%. With festival season around the corner, the figures are expected to increase significantly. Due to the fact that petrol and diesel are around INR 100 mark and are less likely to fall in the future, people are increasingly gravitating towards EVs to reduce their expenditure on vehicles. However, there are many other associated costs—good and bad—with electric vehicles that you must be aware of before buying an EV. Tax benefit The government is offering a deduction of up to INR 1.5 lakh on the interest component of an electric vehicle loan under Section 80EEB. Low Maintenance EVs are known to have low maintenance as they have fewer parts than their ICE siblings. For an electric vehicle, it will cost between INR 1000 and INR 2000 a year, while for a petrol variant, you might have to shell out almost INR 4,000 to INR 5,000 a year. But you have to pay higher insurance. For EVs, you may have to pay more in insurance as the insurers consider the expensive battery of electric vehicles as a major component. Get ready to shell out more if the battery goes kaput Batteries are major components of electric vehicles, and there is no way to repair them. So in case the battery of your EV is not functioning properly, then you have to replace it, and as per estimation, you may have to pay more than INR 4 lakh for an electric car's battery, while for an electric two-wheeler, it could be around INR 50,000. Not much of resale value If you want to resell your electric car or two-wheeler, you may get much less than their ICE counterparts, as there won't be many buyers and also because the batteries of the EVs deteriorate with each passing day and may need replacement as they age. Non-cost factors The biggest challenge is the charging time, which is quite time-consuming. Installing one at home would cost you more, while charging at public places is not that convenient. As per an estimation, a 3.2 kW battery needs about 10 hours of charging time, thus providing about 21 km of range per hour of charging. Similarly, a 7.2 kW battery can give you about 54 km of range per hour of charging and need about four hours of charging, while a 30 kW battery needs 60 minutes to charge and can give you 216 km of range in an hour of charging. Do note that these figures could vary from model to model due to the fact that some fast chargers could charge the vehicle in much less time.
Foreign automakers see their chance in Japan with electric vehicles TOKYO: In September, did something still rare in Japan: she bought a foreign car, picking a Peugeot e-208 over a Honda e because, she said, the Peugeot can travel longer distances between charges. joined a tiny, but growing, band of Japanese drivers who are eschewing home brands for foreign battery (EVs). While the trend is unlikely to make a big dent in overall sales, it highlights a perception that many domestic automakers have been slower to embrace battery EVs, focusing instead on hybrids, hydrogen fuel-cells and alternative fuel for internal combustion engines. "I wanted to buy something that would be best for the environment," said the 30-year-old, who runs a company in Tokyo selling farm produce. Toyota has committed 8 trillion yen ($69 billion) on electrification up to 2030 and expects to sell around 3.5 million battery EVs worldwide by then. That represents around a third of Toyota's current annual auto sales. Germany's predicts half its cars will be battery EVs by then. Nine-tenths of the five million cars sold annually in Japan are from domestic firms such as Toyota Motor Corp, Honda Motor Co and Nissan Motor Co. But while overall car sales in Japan, not including small light vehicles, dipped 3.2% last year, sales of foreign models rose 1.7%. Imports of battery EVs jumped almost three times to a record 8,610 vehicles, according to the Japan Automobile Importers Association. Analysts estimate around half of those were Tesla Inc cars. Volkswagen, Europe's biggest carmaker, is one of the foreign makers that see a battery-EV opening in Japan. It plans to sell more than a dozen such models in Japan by 2024, including cheaper Audi and Volkswagen sports utility models this year that will target a broader swathe of consumers, country manager told a news conference in January. It expects battery EVs to account for a third of Audi sales, or around 10,000 vehicles, in Japan for 2025, he said. The VW group will expand the installation of fast chargers to 250 of its own showrooms by the end of this year, he said. Stellantis, the owner of the Peugeot brand that Abe bought, is also expanding its line-up in Japan, with two new models going on sale this year. They are being joined by South Korea's Hyundai Motor Co, which this month said it is returning to Japan 12 years after it left because of poor sales. Japanese drivers will be able to order its Nexo SUV hydrogen fuel cell EV and its Ioniq 5 midsize crossover battery EV from May. To bolster its chance of success this time round, the South Korean company has tied up with a car sharing service operated by online social gaming company DeNA Co and insurance company Sompo Holdings to let Hyundai owners rent out their zero-emission cars. Also Read:
ACMA with Howden India organizes cyber security-focused conference New Delhi: The Automotive Component Manufacturers Association of India ( ) in partnership with successfully conducted a ‘National Conference & Display on Automotive Cyber Security – Risks & Safeguard’ on Tuesday to highlight the emerging cyber risks and cyber security trends within the automotive industry. The conference focused on why automotive manufacturers need to supplement cyber security measures with adequate protection in the form of cyber insurance. With eminent speakers providing their advice across three technical sessions, the half-day conference provided valuable insights on a variety of subjects including Cyber security trends and outlook in the automotive industry, Emerging Cyber Risks, Mitigation, Legal & , and Emerging Risk & Other Key Issues with possible Insurance Solutions – Cyber Insurance, Product Liability & Recall insurance. With rapid digitalization raising several cyber security risks, especially those emanating from the increasing usage of devices and sensors across manufacturing plants and enterprise IT systems, there is an urgent need to safeguard automotive organizations against the associated cyber threats. The conference provided participants with an outlook on future cyber trends, and the legal and regulatory impact of cyber security breaches and even offered possible insurance solutions. “As India increasingly becomes a significant player in global manufacturing, we anticipate a surge in technology adoption and digitalization in the domestic automotive manufacturing sector. As a consequence, cybersecurity risks will also escalate rapidly, underscoring the need for a forum where ACMA members, IT service providers, Cyber insurance specialists, and the wider automotive industry can come together to examine current threats and discuss effective strategies to mitigate them. ACMA is committed to facilitating the necessary digital transformation through such initiatives that help automotive entities safeguard themselves holistically,” Vinnie Mehta, Director General, ACMA, said. “With a wealth of experience in providing risk management and consulting as well as insurance broking and portfolio management, Howden India has been advising a wide range of businesses and professional service organizations against a multitude of risks. As automotive firms pursue digital transformation initiatives, malicious entities will inevitably target their systems and will try to disrupt the functioning of business, necessitating a comprehensive cyber insurance cover. At Howden India, we believe that manufacturers ought to secure themselves against any financial impairments resulting from a cyberattack, even when they fortify their systems with advanced cyber security measures,” Amit Agrawal, Managing Director, Howden India, added. With Indian automakers being urged by the Ministry of Road Transport and Highways to ramp up efforts against cyber-attacks, it is important for
Amit Agrawal, Managing Director, Howden India, added. With Indian automakers being urged by the Ministry of Road Transport and Highways to ramp up efforts against cyber-attacks, it is important for manufacturing entities to adopt a multi-pronged approach consisting of integrating advanced IT security systems, undertaking necessary legal measures, and ensuring thorough cyber insurance coverage. By securing themselves against all possible risks, the Indian automotive industry can not only protect itself against maleficent cyber forces but also truly explore the unbridled potential offered by the country’s large skilled workforce and favourable economies of scale.
EkoTejas ties up with SBI insurance, Bajaj Allianz and others to support EV customers New Delhi: , a leading Electric vehicle (EV) brand, has tied up with with SBI insurance, Bajaj Allianz and other lending institutions for providing financial assistance to , the company said. Recently, the company has tied up with seven financial institutions, insurance providers and (NBFCs) including Bajaj Finance, TJSB Bank, Shriram Insurance, SBI insurance and Bajaj Allianz to help the customers buy electric 2 and 3-wheelers, the company said in a media release. Ekotejas has plans to launch its high-speed motorcycle alias Muscle bike ‘E-Dyroth’ this year. According to the company, the e-motorcycle is the first of its kind in the EV segment. The vehicle has a top speed of 100 km per hour, which can be achieved with its 4 kW high RPM mid-drive motor. EkoTejas has been making Tier 2 and 3 cities as its major markets. The company has an established dealer presence in about ten states including Maharashtra, Madhya Pradesh, Bihar, Haryana, Odisha, Uttar Pradesh, Andhra Pradesh, Telangana, Tamil Nadu and Karnataka. K Venkatesh, co-founder of EkoTejas, said, "We are trying to normalize having in every home. With all its added benefits, we are sure EV will be well accepted widely among Indian consumers.” EkoTejas began its journey in 2017, has almost 90% of its parts made in India, he said. The recent tie-up is expected to benefit the Only a few EV players are able to provide on-road insurance for the segment. Moreover, the company’s dealers will at the buyer’s parking spot, especially if the buyer lives in an apartment, the company said. Also Read:
China boosts imports of fuel oil blended from Russian barrels 's independent are ramping up imports of discounted blended from to use as low-cost feedstock amid a shortage of government for some of them, according to trade sources and data. Western sanctions over Russia's invasion of Ukraine, including the looming February 5 embargo and price cap on refined products, have been pushing Russian fuel oil barrels eastward into Asia at attractive discounts since last year. These have been flooding the ship-to-ship transfer hubs of and ' Fujairah since the second quarter of 2022. Traders blend these barrels with other oils to rebrand the fuel oil's country of origin, clearing the way for ship insurance and financing that would otherwise be banned under the sanctions, trade sources said. Discounts offered on these fuel oil cargoes help to improve margins at Chinese independent refiners and replace crude that some companies are unable to import without quotas, the sources said. The trade also provides a way to get Russian oil to market and bring much-needed export earnings to Moscow. "We've been looking at Russian fuel oil since December. It is cheap and does not require (crude) import quotas," said an executive with an independent refiner in eastern Shandong province. The refiner has not received any government crude quotas for the past year or so and buys mostly straight-run fuel oil to produce diesel and gasoline, said the executive, who declined to be identified as he was not authorized to speak to the media. These blended fuel oil barrels were last traded at about a $5 discount to benchmark crude ICE Brent on a delivered Shandong basis, said one source. High-sulphur fuel oil values relative to crude have plunged into deeper discounts since the second quarter last year, with cracks hitting record lows at end-October. China's total fuel oil imports surged to about 1.76 million tonnes in December, highest since September 2021, official customs data showed. The uptick was driven by a surge in shipments from Malaysia to more than a one-year high at 620,000 tonnes, while monthly imports from UAE rose to 471,000 tonnes, highest in two years. Meanwhile, direct imports of fuel oil from Russia slipped to 187,000 tonnes in December after peaking at 554,000 tonnes in October, even as total imports from Russia more than doubled year-on-year to 3.1 million tonnes in 2022. "The deep discounts offered are driving the trend as independent refiners are price sensitive. China is still recovering, with domestic demand for refined fuels uncertain," said Emril Jamil, Refinitiv's senior analyst for crude and fuel oil. "The trend will continue with the EU ban (on Feb. 5), with all natural outlets in Europe closed. Asia will continue to soak up cheaper Russian (fuel oil) barrels on top of crude," Jamil said. Western trading houses have been the main suppliers of these fuel oil shipments to China, said four senior trading sources, who closely track the flows, adding that the
on top of crude," Jamil said. Western trading houses have been the main suppliers of these fuel oil shipments to China, said four senior trading sources, who closely track the flows, adding that the elevated December levels will extend through February and beyond. One of the top suppliers channeling these barrels to China is Swiss-based trader Vitol, they said. Over the last four months, Brilliant Jewel, a floating storage facility chartered by Vitol, conducted ship-to-ship transfer operations with at least six vessels that previously loaded fuel at Russian ports, a Reuters analysis of shipping data on Refinitiv Eikon showed. Vitol did not respond to a request for comment. A second Chinese fuel oil trader said companies have become more relaxed in dealing with Russian barrels after initial confusion over the Group of Seven price cap and the potential risk of running afoul of sanctions. "Initially the market took a wait-and-see stance before Dec. 5, but now many traders are moving fuel oil from these two hubs, with the top western traders being the more active," said the trader. Leading Chinese bunker suppliers and traders like Sinopec and PetroChina's Chimbusco have also been sending more Russian high-Sulphur fuel oil to bunkering hubs in eastern China's Zhoushan and Qingdao, sources said. Sinopec and Chimbusco did not respond to requests for comment. Shipping records show the companies have chartered several fuel oil shipments from Malaysia's Tanjung Pelepas port to Zhoushan and Hong Kong over the last four months. Also Read:

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