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Uber, Lyft trade group questions Biden's labor nominee's gig workers stance Rideshare and want the administration's nominee for the Department of to clarify her position on an incoming worker-classification rule that could expand workers' rights, a trade group representing the companies said on Monday. The Department of Labor in October proposed a rule that would make it more difficult for companies to treat workers as independent contractors, which would shake up ride-hailing, delivery and other industries that rely on gig workers. The Flex Association, which represents companies such as , sent a letter to Biden on Monday asking that his nominee to lead the U.S. Department of Labor, Julie Su, explain how she would implement the proposed rule in a "manner that protects independent work." The group this month said Su's record on flexible work was "troubling" and called for a "meticulous review" of her record in the Senate confirmation process. Democrats' narrow control of the Senate means Su's confirmation is unlikely to be impacted but the final worker classification rule is expected this year and the push to lobby against it by groups such as the Flex Association is picking up momentum. A White House official said Su, in her role as deputy secretary of labor, has ensured that "workers receive all the rights and protections available to them under Federal law - she will continue that commitment if confirmed as Secretary of Labor." The official, who did not wish to be named, said proper classification protects workers and ensures that they are eligible for basic things like minimum wage, overtime and unemployment insurance. "Julie has always and will continue to defend these basic rights, consistent with Federal law," the official said. Most federal and state labor laws, such as those requiring a minimum wage and overtime pay, only apply to a company's employees, who can cost companies up to 30% more than independent contractors, studies suggest. Biden this month urged the U.S. Senate to quickly confirm Su and hailed his nominee for her past work to increase worker wages and expand protections. Before joining the U.S. Department of Labor, Su was the secretary for the California Labor and Workforce Development Agency, and before then was California labor commissioner from 2011-2018. A report on her tenure released in May 2013 found that her work resulted in a spike in enforcement activity. There was a concerted push by many union and labor officials, as well as progressives in the Democratic Party, to get Biden to appoint Su to the role both for her familiarity with the agency and labor policy.
Myles launches one-month car subscription plan in Delhi NCR, Mumbai, Bengaluru New Delhi: Myles, India’s that provides and sharing plans, has launched a one-month subscription plan that will enable people to change every month. The users can subscribe unboxed or as good as a new vehicle for one month by paying a subscription starting at INR 29,909. The one-month subscription plan comes with services like maintenance, insurance, and roadside assistance to ease up the process of owning a car. The subscription process is very simple as users only have to visit the or Website and opt for the subscription tenure and complete a simple KYC process. For the subscription the company offers on a monthly basis cars, including the Hyundai i20 at INR 29,909, Maruti Brezza at INR 34,670, and Tata Nexon at INR34,670. With zero maintenance costs and down payments, the platform’s latest offering aims to provide a hassle-free and flexible ownership experience, the company said in a media release. Myles currently has a 99% of renewal rate for its subscription plans. The offer is available in Delhi NCR, Mumbai, and Bengaluru. The company aims to help people subscribe to 5000 cars in the next 12 months with immediate delivery Sakshi Vij, Founder & CEO, Myles, said, “Our innovative car subscription plans have given millennials a more convenient and budget-friendly way of owning a vehicle. Today's generation does not prefer a long waiting period, and that’s what we are catering to with our smart subscription plans. We are easing the process of maintaining cars and removing the burden of installments, and delivering it to your doorstep in a shorter period.” The popularity of car subscription services is rising in the country and it is expected that in the next five years 50% of car buyers will be making use of this service due to the ease it provides in owning and . Read More:
Mobility insurance market to double by 2030; India ahead of global peers: Capgemini The global mobility insurance market is projected to double to USD 1.38 trillion by 2030, driven by the increasing adoption of autonomous, connected, electric, and shared (ACES) mobility, according to a report by . The report draws data from 22 key markets, including , Australia, the United Kingdom, the United States, China, Mexico, Hong Kong, and several European countries. "Revenues (of the automotive industry) are on track to reach USD 3.8 trillion by 2030, up 35% from 2020. By the end of the same period, autonomous, connected, and electric vehicles (EVs) may comprise about 40% of the market, up from 10% in 2020," the report stated. As per the report, the automotive industry is on the cusp of "profound change". It suggests that while traditional auto insurance will continue to grow by adjusting pricing based on factors such as age, postal code, driving experience, and insurance history; The autonomous, connected, electric, and shared (ACES) nominal premium will see an eightfold increase, surpassing USD 0.5 trillion by 2030. Of the total mobility insurance market, the premiums collected through the traditional market stood at USD 0.58 trillion in 2021, the report said, adding that the same is estimated to rise to USD 0.81 trillion by 2030. On the other hand, the premiums collected through the ACES market, which stood at USD 0.07 trillion in 2021, is expected to soar sharply to USD 0.57 trillion by 2030, it added. As the mobility market evolves, it also predicts that carriers will shift from insuring assets to protecting mobility journeys by launching new business models focused on personalisation. According to Capgemini, the growth is supported by increasing adoption of innovative technologies such as 5G, AI, and telematics in the automotive sector, as well as declining EV battery prices and government incentives. Industry veterans further suggest that insurers need to focus on "embedded solutions", keeping in mind the changing customer sentiment. "Future-focused mobility solutions are disrupting traditional coverage as policyholders demand embedded protection for their journey," said , CEO, Mobility & Assistance, Member of the , . On a similar line, , the Head of Corporate and Business Development at American insurance major , said, "As insurers think about embedded solutions, they should consider how core value propositions align with embedded opportunities and how economies of scale can be leveraged to create better point of sale, servicing, and claims experiences." India Insights India is expected to adopt innovative mobility options faster than other countries, with 86% of Indian respondents showing an interest in connected and alternative energy vehicles, and 73% expressing interest in autonomous vehicles, while globally, the numbers stand at 66% and 49%, respectively. However, country's insurance players consider technology capabilities and competition as
expressing interest in autonomous vehicles, while globally, the numbers stand at 66% and 49%, respectively. However, country's insurance players consider technology capabilities and competition as the key challenges in their journey towards the future of mobility, according to Capgemini. Insurers will need to address customers' demands for innovative mobility coverage options, with 40% of Indian respondents expressing the desire for a singular coverage plan that would cover all risks related to mobility, the report highlighted. "Overall, Indian insurers are marginally ahead in terms of value chain maturity but must continue to adapt to the evolving landscape of the future of mobility," it added.
Vehicle financiers bet big on festive season to revive demand Mumbai: With the continued fall in , disbursements by are also expected to moderate in the September quarter. According to a note released by , there is a persistent slowdown in the new vehicle financing space (including commercial vehicles) led by delayed replacement demand, weak rural sentiment and seasonal slowdown due to monsoons. “Sales have been weak in July and August 2024 on year basis and are expected to remain subdued in September quarter as well following low activity during the ‘Pitru Paksha’ period,” said Jignesh Shial, Head of BFSI Research at . “Our discussions indicate that all hopes lie on the expected demand pick-up in October on the back of the upcoming .” Meanwhile, the momentum in used vehicles remains relatively healthy, but stiff competition has affected lenders’ ability to price the risk appropriately. Also, after the Reserve Bank of Indoa flagged risks on experts are seeing a demand moderation in that segment. Providing support to existing borrowers in the form of top-up loans especially in the case of commercial vehicle financiers has been a common practice. Such top-up loans are given mostly to the existing clients for productive purposes such as tyre replacement, insurance purchase, filling up fuel, working capital needs, as well for consumption purposes. “The trend of such top-up loans continues at a healthy pace, but top-up loans given in the used car segment are seeing moderation after the rise in defaults as well as the displeasure expressed by the regulator,” Shial said. Research conducted by InCred analysts also forecasts a high level of stress and bounce rates. This is largely due to the semi-urban & rural economies that have come under heavy strain due to general elections in India, heatwave, and a delayed monsoon. This resulted in a higher as well as increased bucket movements leading to a spike in for most lenders. “We are seeing the trend of an elevated EMI bounce rate continuing in second quarter amid seasonality factors as well continued strain in rural and semi-urban geographies,” Shial said. “The leading indicators point towards the demand improving in the second half which should stabilize the EMI bounce rate, but we remain watchful of the debt servicing trend in this segment.” As per InCred, considering the slowing growth and the potential volatile trend in asset quality, vehicle financiers with rising diversity, experienced management which has witnessed multiple cycles as well as lenders with an improved underwriting mechanism, will be able to perform well.
Why Pay-as-You-Drive car insurance can be a game changer? New Delhi: In thе traditional rеalm of , fixеd prеmiums oftеn posе a challеngе for many drivеrs, particularly thosе whosе vеhiclе usagе variеs. Pay-as-You-Drivе (PYAD) insurancе, howеvеr, introducеs a paradigm shift by rеcalibrating thе vеry foundation of insurancе pricing. Instead of adhеring to an onе-sizе-fits-all approach, policiеs pivot around thе concept of fairnеss and customisation In India, traditional car insurancе faces a transformativе shift with Pay-as-You-Drivе (PAYD) insurancе. It tailors costs to driving habits, ditching fixеd prеmiums. PAYD calculatеs еxpеnsеs based on actual vеhiclе usе, prioritising fairnеss and pеrsonalisation. Analysing behaviour through tеlеmatics, it еncouragеs еco-conscious driving, offers savings for occasional drivеrs, and supports innovation. This modеl aids flееt managеmеnt, еnhancеs affordability, and adapts to divеrsе drivеr nееds and urbanisation. Intеgrating comprеhеnsivе covеragе, PAYD appеals to Indian drivеrs sееking vеrsatilе, usagе-basеd insurancе solutions. Car insurancе has long bееn a nеcеssity for vеhiclе ownеrs, providing sеcurity against unforеsееn circumstancеs. Howеvеr, thе traditional approach to car insurancе might soon witnеss a rеvolutionary shift in India. Thе advеnt of PAYD insurancе is poisеd to transform thе landscapе of auto insurancе, offering tailorеd solutions that align morе closеly with individual driving habits. Undеrstanding PAYD insurancе In thе traditional rеalm of auto insurancе, fixеd prеmiums oftеn posе a challеngе for many drivеrs, particularly thosе whosе vеhiclе usagе variеs. PAYD insurancе, howеvеr, introducеs a paradigm shift by rеcalibrating thе vеry foundation of insurancе pricing. Instead of adhеring to an onе-sizе-fits-all approach, PAYD policiеs pivot around thе concept of fairnеss and customisation. Benefits of PAYD insurance Thе bеnеfits of PAYD arе substantial and catеr to thе еvolving nееds of drivеrs in India: 1. Usagе-basеd pricing At thе corе of PAYD insurancе liеs thе concеpt of usagе-basеd pricing. Rathеr than sеtting a standard prеmium, PAYD policiеs takе into account thе actual usagе of thе vеhiclе. This can еncompass factors such as thе distancе drivеn, thе timе spеnt on thе road, or еvеn thе driving behaviour itsеlf. By lеvеraging data on how, whеn, and how much a vеhiclе is drivеn, insurеrs can calculatе prеmiums morе accuratеly. 2. Flеxiblе cost structurе Thе inflеxibility of fixеd prеmiums oftеn lеads to ovеrpaymеnt for many drivеrs, еspеcially thosе who don’t еxtеnsivеly usе thеir vеhiclеs. PAYD insurancе addresses this issue by offering a more flеxiblе cost structure. Drivеrs arе chargеd in proportion to thеir actual usagе, aligning thе cost of insurancе morе closеly with thе valuе thеy dеrivе from it. 3. Driving bеhaviour analysis PAYD policiеs frеquеntly incorporatе tеlеmatics dеvicеs or smartphonе apps to monitor driving bеhaviour. Thеsе tеchnologiеs track variablеs likе spееd,
dеrivе from it. 3. Driving bеhaviour analysis PAYD policiеs frеquеntly incorporatе tеlеmatics dеvicеs or smartphonе apps to monitor driving bеhaviour. Thеsе tеchnologiеs track variablеs likе spееd, accеlеration, braking habits, and еvеn thе timеs of day thе vеhiclе is usеd. This data еnablеs insurеrs to assеss risk morе accuratеly, rеwarding safе driving habits with lowеr prеmiums and еncouraging morе rеsponsiblе bеhaviour bеhind thе whееl. 4. Fairnеss and customisation PAYD insurancе еmbodiеs a fairеr approach to pricing. It rеcognisеs that not all drivеrs havе thе samе risk profilеs or usagе pattеrns. By tailoring prеmiums to individual behaviour and usagе, PAYD policiеs offеr a morе еquitablе and pеrsonalisеd insurancе еxpеriеncе. 5. Potеntial savings For drivеrs who don’t covеr еxtеnsivе distancеs or usе thеir vеhiclеs infrеquеntly, PAYD insurancе can translatе into substantial savings. Rathеr than paying a fixеd amount rеgardlеss of usagе, thеy can bеnеfit from rеducеd prеmiums that align morе closеly with thеir actual timе on thе road. 6. Environmеntal impact PAYD insurancе can indirеctly contribute to rеducing carbon еmissions. By еncouraging fеwеr milеs drivеn through its pricing modеl, it promotes morе conscious usе of vеhiclеs, aligning with sustainability goals. This rеduces thе еnvironmеntal impact of еxcеssivе driving. 7. Accеssibility and affordability PAYD policiеs can makе car insurancе morе accеssiblе to a widеr rangе of drivеrs, еspеcially thosе who might find traditional fixеd prеmiums financially challеnging. It opеns up opportunities for morе pеoplе to afford insurancе by aligning costs with actual usagе, potentially increasing thе numbеr of insurеd vеhiclеs on thе roads. 9. Accuratе risk assеssmеnt By utilising tеlеmatics and data-drivеn insights, PAYD insurancе еnablеs insurеrs to assеss risk morе accuratеly. This data-drivеn approach provides a clеarеr understanding of individual driving behaviours. This allows insurеrs to sеt prеmiums that bеttеr rеflеct thе actual risk associatеd with еach drivеr. 10. Encouragеs carpooling and sharеd mobility PAYD insurancе could incorporate carpooling or sharеd mobility options. Drivеrs participating in sharеd ridеs or carpooling could sее rеducеd prеmiums sincе thе vеhiclе's usagе is dividеd among multiplе individuals. Thus promoting morе sustainablе and еfficiеnt usе of vеhiclеs. 11. Improvеd traffic managеmеnt With PAYD insurancе еncouraging drivеrs to bе morе conscious of thеir milеagе and driving habits, it could potentially lеad to rеducеd congеstion during pеak hours. Drivеrs may opt for altеrnativе transportation mеthods or adjust their travеl timеs, indirеctly contributing to bеttеr traffic managеmеnt. 12. Rеal-timе monitoring and assistancе Tеlеmatics usеd in PAYD policiеs can providе rеal-timе monitoring and assistancе. In casе of еmеrgеnciеs or accidеnts, thеsе systеms can alеrt еmеrgеncy sеrvicеs or providе roadsidе assistancе quickly. Thus, potentially rеducing rеsponsе
rеal-timе monitoring and assistancе. In casе of еmеrgеnciеs or accidеnts, thеsе systеms can alеrt еmеrgеncy sеrvicеs or providе roadsidе assistancе quickly. Thus, potentially rеducing rеsponsе timеs and еnhancing ovеrall drivеr safеty. 13. Adaptability to changing lifеstylеs PAYD insurancе is adaptablе to changing lifestyles. For instance, if somеonе switchеs to rеmotе work and significantly rеducеs their commuting distancе, their insurancе prеmiums can adjust accordingly. This еnsures thеy'rе not ovеrpaying for thеir rеducеd usagе. 14. Encouragеs tеchnological innovation Thе adoption of PAYD insurancе еncouragеs furthеr tеchnological advancеmеnts in thе automotivе and insurancе industriеs. It incеntivisеs thе dеvеlopmеnt of morе sophisticatеd tеlеmatics systеms and innovativе solutions that bеnеfit both insurеrs and drivеrs. 15. Young drivеr support PAYD insurancе can be particularly advantagеous for young or new drivеrs. As thеy tеnd to havе lеss еxpеriеncе and might bе subjеct to highеr prеmiums, PAYD policiеs offеr a fairеr pricing structurе. Safе driving behaviours can lеad to lowеr prеmiums, incеntivising rеsponsiblе habits among youngеr drivеrs. 16. Flееt managеmеnt solutions For businеssеs with vеhiclе flееts, PAYD insurancе offеrs еnhancеd flееt managеmеnt solutions. It allows companies to monitor and optimisе their flееt's usagе, potentially rеducing opеrational costs and еnsuring bеttеr rеsourcе allocation. 17. Customеr engagеmеnt and loyalty PAYD insurancе fostеrs grеatеr customеr еngagеmеnt and loyalty. By offering pеrsonalisеd and fairеr pricing modеls, insurеrs can build strong relationships with their customers. This leads to higher satisfaction and increased rеtеntion rates. 18. Insurancе affordability for low-incomе earnеrs PAYD policiеs can catеr to individuals with lowеr incomеs. By adjusting prеmiums according to actual usagе, it provides an opportunity for thosе on limitеd budgеts to afford nеcеssary insurancе covеragе without thе burdеn of fixеd prеmiums. 19. Risk mitigation for high-risk drivеrs High-risk drivеrs, such as those with previous accidеnts or traffic violations, might find it challenging to obtain affordablе insurancе. PAYD policiеs offer thеsе drivеrs an opportunity to dеmonstratе improvеd driving bеhaviours. This gives them the chance to еstablish safе driving habits and obtain reductions in premiums over time. 20. Encouragеs vеhiclе maintеnancе With PAYD insurancе, drivеrs might bеcomе morе attеntivе to vеhiclе maintеnancе. As insurancе costs arе linkеd to usagе, maintaining a wеll-functioning vеhiclе bеcomеs a priority to еnsurе optimal pеrformancе and potеntially lowеr insurancе prеmiums. 21. Data-drivеn insights for policyholdеrs PAYD insurancе can provide policyholdеrs with valuable insights into their driving habits. Thе data collеctеd through tеlеmatics can offеr fееdback on driving bеhaviour, еncouraging sеlf-assеssmеnt and improvеmеnt in driving skills for rеducеd risks and costs. 22. Adaptability
habits. Thе data collеctеd through tеlеmatics can offеr fееdback on driving bеhaviour, еncouraging sеlf-assеssmеnt and improvеmеnt in driving skills for rеducеd risks and costs. 22. Adaptability to urbanisation trеnds As urbanisation incrеasеs and city dwеllеrs oftеn rеly on public transport or sharеd mobility options, PAYD insurancе can catеr to this shift. It offеrs flеxibility for urban rеsidеnts who might not usе thеir vеhiclеs daily, еnsuring thеy only pay for thе timе or distancе thеy drivе. Comprеhеnsivе insurancе and PAYD In thе rеalm of car insurancе, comprеhеnsivе covеragе rеmains pivotal for safеguarding against various risks. PAYD policiеs can bе structurеd to includе , еnsuring protеction against thеft, damagе, and othеr unforеsееn incidеnts. Intеgrating comprеhеnsivе insurancе within PAYD modеls furthеr еnhancеs thе appеal of thеsе policiеs to Indian drivеrs sееking holistic covеragе. Conclusion India's car insurancе landscapе undеrgoеs a transformativе shift with Pay-as-You-Drivе policiеs. Tailorеd for divеrsе driving habits, this еvolution signifiеs a customеr-cеntric approach, promising cost-еffеctivе covеragе and safеr roads. It hеralds an еra of pеrsonalisеd insurancе, rеshaping vеhiclе protеction and promoting road safety. Note: Thе abovе information is for illustrativе purposе only. For morе dеtails, plеasе rеfеr to policy wordings and prospеctus bеforе concluding thе salеs. (Disclaimer - The above content is non-editorial, and ETAuto hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content.)
No global carbon price? Some companies set their own A growing list of global companies are setting a price or charging themselves for each metric ton of their carbon emissions, looking to shape their investments and business for future pollution taxes or other new climate rules. Their prices are all over the place, from less than USD 1 per metric ton of carbon emissions to USD 1,600, the most of any company worldwide, set by California drugmaker Amgen. Regulators, too, have offered a range of prices, including the administration's "social cost" of carbon, around USD 200, and a suggestion from the International Monetary Fund that it should be at least USD 85 by 2030. Incorporating the cost of carbon dioxide and other greenhouse gas emissions into business decisions has been a dream of climate activists for decades as a way to force corporations to cut emissions. While a standardized global carbon price is not going to be set at the COP28 climate summit underway in Dubai, the concept has many uses in business such as enabling executives to charge their own divisions extra to use power from fossil fuels, thus making renewables more attractive. "While there are other strategies to do so, failure to use this tool could imply that companies may be failing to adequately plan for the medium- to long-term realities of the cost of carbon," said Amir Sokolowski, global director for climate change at CDP. An analysis by the non-profit for Reuters found that 20% of 5,345 global companies making climate-related disclosures said they used an internal carbon price last year, up from 17% the year before. Another 22% planned to do so in the next two years, although historically only a fraction of the companies that planned to implement one have done so. The analysis from CDP, not previously published, reveals both that companies have embraced the new planning tool but also that much debate remains about what prices will spur significant action by companies to cut emissions. Shown the trends, several analysts told Reuters the emerging picture is one of executives getting ready for some type of new emissions regulation even if they lack a clear sense of what's ahead. Companies are "getting ready for the reality that it's going to be required" said Columbia University economist . But the median prices are still too low to have a major impact on corporate decision-making, making the effort a "mixed bag", the Nobel Prize winner said. Companies do not have a simple path to follow, since using a high carbon price can dramatically change investment plans, while using a low one can bring charges of "greenwashing." Several executives who spoke with Reuters said internal pricing plans help them cut emissions and clarify the implications of capital spending and other business activities for the planet. Market prices for carbon offsets can range from USD 5 to USD 1,500 a metric ton, said Joe Speicher, chief sustainability officer at software maker Autodesk. Autodesk has
activities for the planet. Market prices for carbon offsets can range from USD 5 to USD 1,500 a metric ton, said Joe Speicher, chief sustainability officer at software maker Autodesk. Autodesk has steadily raised its internal carbon price to USD 20. Ideally regulators would clarify how companies should treat emissions costs, Speicher said. " 't it be nice to have a public authority to help to create a more coherent market?" he said. The company uses the price to help identify things like the value of its investments in carbon-removal projects, he said. TYING IN TO MARKETS Various carbon markets operate globally, including the European Trading System, where carbon currently trades around USD 70 per metric ton. Many companies have designed their own internal mechanisms. When carmaker Volvo embraced internal carbon pricing, it could not find a good model to follow because "very, very few companies" used such prices throughout their business, Jonas , Volvo's head of climate action, said in an interview. Volvo has incorporated a "shadow price" of 1,000 krona per metric ton, about USD 92, in decisions ranging from which model vehicles to produce to what materials to use in factories. Adding the cost of carbon pollution to aluminum, for instance, made using aluminum created with renewable energy a "super high priority" because it has less than a quarter of the carbon emissions of typically made material, he said. Similarly, Volvo reconsidered the real cost of its bigger cars as stricter EU rules come into effect. The discussion "actually made us change the whole volume planning of the company to say that we should not prioritize some cars versus other even though they look more profitable, because they will actually sort of give us a penalty that other cars won't," Otterheim said. Drugmaker Amgen assesses an "internal fee" of USD 1,000 per metric ton on higher-emitting projects. Proceeds are then used to fund emissions-cutting projects. For example, a utility expansion project in Ireland added USD 700,000 to its sustainability budget, a spokesperson said. In its 2023 CDP climate report, Amgen said it also uses an "investment evaluator" to judge whether to buy new emissions-reduction equipment, using an even higher price for carbon. "Sustainability projects that cost more than traditional projects but are less (than) USD 1,600 per (metric ton) of CO2e emissions reduced are considered reasonable for design," the report states. Amgen as a science-based company aims to be carbon-neutral within its own operations by 2027, the spokesperson said. A PRICE THAT BITES Several analysts who spoke with Reuters offered a range of views about what price companies should use. , a board member of German insurer Allianz and a member of a U.N. climate advisory council, said a comprehensive global carbon market would be "a massive boost" to efforts to cut emissions. But the current variation in prices is a problem, especially with some prices below USD 5 per metric ton.
a comprehensive global carbon market would be "a massive boost" to efforts to cut emissions. But the current variation in prices is a problem, especially with some prices below USD 5 per metric ton. "I fear this is going in the direction of greenwashing," he said. However, Anita McBain, head of EMEA ESG Research for Citi, said practical uses matter more than high prices. "We'd rather see a carbon price with teeth than one without. We'd rather see a USD 25 price that's actually influencing decisions versus a USD 75 price that's just a tick-the-box," she said.
Opinion: How new business models transform car aftermarket in India By Ashim Sharma Around 35 million cars are running on Indian roads now. Over 25 million of them are running out of warranty and most of their owners find little or no incentive to visit OEM authorized service centres for their needs. The reasons may be the perception of higher service costs at dealerships or the hassle to find an authorized service centre at a convenient location. The customers look for reputed multi-brand aftermarket service providers close to them. An added boost for the aftermarket has been longer retention of cars as well as large proliferation of second-hand cars on account of the rise of personal mobility in the face of the Covid-19 pandemic. Over the past decade, in India have improved their service networks considerably – both in availability and efficiency, and have managed to grab a pie of these out of warranty vehicles. However, despite great efforts, the service retention ratio for most OEMs in India remains at 40%. This means that 60% of the 25 million out of warranty vehicles still rely on the unorganized service centres to meet their service and repair needs. Assuming that an average car spends INR 10,000 in a year on service and repairs, these 16 million-cars-strong unauthorized markets stand at a massive INR 15,800 crore or USD 2 billion a year. unorganized service Network There are an estimated 300,000 unorganized service and repair workshops in India. These are spread across the length and breadth of the country – in metro cities, tier 2 extended. There have been business model innovations to capture the unorganized service network. An example is the Gurugram-based company, GoMechanic, backed by global PE firms such as Tiger Global. It intends to aggregate the unorganized workshops through a franchisee model. To make them more attractive for the customers they are keeping a check on the service quality, through manpower training and standardization of SOPs and on service costs through parts supply contracts with tier-1 suppliers and smart inventory management. But Go Mechanic is not alone in the market. There are other companies such as PitStop and Mahindra First Choice (Multi-brand). All of them are innovating in technology and business models to capture the huge potential that lies in the unorganized car servicing market in India. Similarly, GOpreuner, a recent initiative, is promoting self-employment programmes in Tier-2 & Tier-3 cities and also conducting training programmes. Several startups are utilizing the block chain technology to maintain all vehicle-related information including title, service providers, prior damage, maintenance etc. Their range of services are being tailored for users, OEMs, producers and distributors of spare parts, insurance companies as well as fleet management services. All these are intended to make the spares and service business more efficient and also create transparency about the vehicle history in the
insurance companies as well as fleet management services. All these are intended to make the spares and service business more efficient and also create transparency about the vehicle history in the used car market. A few other recent trends also suggest a convergence of the organized and unorganized service industries in India. Though at a nascent stage and sporadic, such collaborations might hold the key to unlock the huge potential in the aftermarket service industry. One such collaboration is the tie-up between GoMechanic and Revolt Intellicorp, an electric motorcycle manufacturer in India. Through this tie-up, GoMechanic will act as exclusive service partner for all revolt motorcycles in India. Another one is the tie-up between GoMechanic and Eurorepar, the independent part manufacturing company within the PSA group. Unorganized market aggregators are also tying up with the tier-1part suppliers for their inventory needs. Through these tie-ups it is evident that in the long run, both the organized and the unorganized markets have a lot to learn and contribute to each other’ success. While OEMs can leverage the huge reach and lean cost structure of the unorganized players, these smaller players and aggregators have a lot to gain in the form of technical knowhow, manpower training and OEM brand equity. In addition, tie-ups like the one with Europar are a step towards harnessing the huge potential of branded generic spare parts which has a significant share of the pie in developed markets. The case for In the developed countries, reconditioned or remanufactured parts have been accepted widely since long. They have proven to be very effective in keeping the parts cost down for users, OEMs and workshops, simultaneously helping the automotive industry in boosting the circular economy. As per the European Remanufacturing Council, this is a Euro 30 billion industry in Europe alone. The recently-announced vehicle scrappage policy in India can be further evolved by including provisions of spare parts reconditioning. Once a vehicle comes for disassembly, good auto components can be removed, reconditioned, reassembled, and obsolete parts can be junked. Then quality tests can be conducted before these parts are equated as new and put to fresh use either in the organized or unorganized market. However, a big lacuna in achieving this goal is to have proper certification and testing procedures in place and a central agency certifying the authenticity of such parts. If this is achieved, the cost of spare parts will go down for users, along with the risk of using spurious parts for older vehicles. Future of car servicing industry The Indian car market has witnessed a shift towards premium cars and SUVs and the customer preferences are continuously evolving in favour of safer and feature-laden cars. But the fact remains that a large chunk of the Indian car buyers are still price conscious. A large section of buyers also base their buying decision on the service
of safer and feature-laden cars. But the fact remains that a large chunk of the Indian car buyers are still price conscious. A large section of buyers also base their buying decision on the service cost and network availability, especially in the smaller towns and cities as well as rural areas of India. This is perhaps one of the biggest ‘chicken and egg’ questions that OEMs in India (OEMs with lower volumes and new entrants) are continuously trying to solve – how to maintain a fine balance between service network expansion and sales growth. Analysis shows that there is a strong correlation between OEM market share and their service network. Market leaders have a strong network of more than 5,000- plus service centres. Smaller OEMs have a service network of just ~300 service stations across India. While addressing the aftermarket needs for ICE vehicles, OEMs have to also prepare their service network in-line with requirements specific to electric mobility. EV parts will significantly change the traditional TOB (tyre, oil, battery) revenue model for ICE spare parts. From a warehouse perspective, routine spare part kit management will also differ from ICE to EVs and shortage of critical parts such as battery for EV, will pose a challenge since transporting batteries by air freight is regulated by design and performance attributes. Moreover, long duration storage of parts such as EV batteries may result in leakage and loss of charge, leading to increased battery management cost. If we consider the parking lot and store-yard perspective, additional investment into charging infrastructure facilities will be required. Hence OEMs will also need to plan their future investment into EV spare part management very judiciously. This question becomes even more pertinent for global OEMs that have either announced, or are on the verge of announcing their India entry plans. To keep their cost structure lean initially, and to make sure the availability of service stations closer to the customer, the new entrants can leverage the aftermarket network either through self-franchising or tying up with aggregator companies. While traditional tier 1 suppliers are definitely set to gain with the expansion of the OEM service network in the unorganized market, global independent parts manufacturers can also leverage this opportunity by supplying their parts to the unorganized market through new age aggregators like GoMechanic and PitStop. The automotive industry has witnessed a lot of innovations across the value chain in the recent past. We have seen new technology and business models dramatically changing the way traditional auto businesses are run. It would not be a farfetched conclusion to say that vehicle servicing and aftermarket is going to be the next target of such innovations where traditional players and new entrants will collaborate with each other and use innovative business models and technology to provide the best after sales experience to the customer.
innovations where traditional players and new entrants will collaborate with each other and use innovative business models and technology to provide the best after sales experience to the customer. (Disclaimer: Ashim Sharma is Partner and Group Head at NRI Consulting & Solutions India. NRI’s Yogesh Shivani (Senior Manager) made significant contributions in this article. Views are personal) Also Read:
Strong competition coming Tesla way with budget segment electric cars New Delhi: Within a couple of years, Tesla will face strong competition from traditional automakers like Volkswagen, Toyota and Stellantis, which released their ambitious vehicle electrification plans last year, a new report said on Monday. Though it will be difficult for them to overtake Tesla sales any time soon, Tesla will witness a reduction in its share across major markets, according to Counterpoint Research. "The reason behind this is the price band in which Tesla operates. It mostly operates in the high-to-premium price band, whereas the traditional OEMs are planning to launch vehicles in the budget segment," research associate Abhik Mukherjee said. The rising cost of a few key and inflationary impact on production have pushed Tesla to increase its vehicle prices worldwide a couple of times. "This might play against the sentiment of new customers, which will, in turn, affect the next quarter's financials," he added. In the first quarter of 2022, Tesla reported record revenue of $18.8 billion and grew its deliveries. During Q1 2022, the company delivered more than 300,000 units of vehicles, an increase of 68 per cent (YoY). Tesla has also started deliveries to car rental service provider Hertz against its huge 100,000-vehicle order, which is also a reason for high vehicle production and delivery during the quarter. "The urge to achieve L4 autonomy by the end of 2023 and to roll out robotaxis by early 2025 can be a major reason for Tesla's big R&D spend. Besides, Tesla could also be conducting research on developing new battery chemistry," Mukherjee added. The soaring prices of some key battery components like nickel and lithium have put the auto OEMs in a spot. "Most EV makers around the globe have been forced to raise prices by a few thousand dollars to cope with the rising prices of battery-related raw materials," the report noted. After Tesla's Shanghai plant became operational, the company's sales boomed globally, especially in China. In 2021, China remained its top market followed by the US and Europe. Apart from vehicle sales, Tesla has a strong network of charging stations and insurance services. Till Q1 2022, Tesla had 3,724 superchargers and 33,657 supercharger connectors worldwide. Keeping parity with vehicle sales and revenue growth, Tesla's gross profit during Q1 2022 reached $5.4 billion. Also Read:
Global Capacity Centres in India to add 2,00,000 jobs in FY22 India-based captive units of multinational companies are set to increase their employee count by 180,000-200,000 by the end of this fiscal as per an estimate based on plans of existing and upcoming global capability centres (GCCs). With several new captives in the making and over 500 new GCCs to set up their captive tech centres by 2025, the total headcount is set to double to 3.0-3.2 million by FY25 from 1.5 million now as the market size is estimated to increase to $60 billion from $36 billion, according to data put together for ET by staffing solutions firm . There are currently about 1,500 GCCs in India across sectors such as banking, financial services and insurance (BFSI), IT software, automotive, pharmaceuticals, retail and oil and gas. This cohort of companies together net added about 170,000 in India in 2021-22, while gross hiring stood at around 350,000, according to Xpheno data. The growth of GCCs in India accelerated since the outbreak of Covid-19, which led to an increasing number of organisations opening up to the idea of remote working. As a result, locations like India that have the talent pool – especially in the field of technology – and cost advantages are increasingly turning into a strategic hotspot for multinationals, top industry officials said. “India has a very deep talent pool and a large number of resources from across engineering and finance backgrounds,” said Dilipkumar Khandelwal, CEO of Deutsche India, which will hire 3,000 people this year mainly in its technology and operations teams. “India is a very important location in terms of Deutsche Bank’s overall footprint outside of Germany.” He said the startup landscape in India is getting bigger by the day and banks and financial services companies are collaborating with the fintechs on specific areas, integrating those services within the technology stack, making India a preferred destination for talent. Anil Ethanur, cofounder at Xpheno, said, “The pickup in hiring post-pandemic is powered by a release of pent-up demand and expansion hiring by active GCCs. Further, the hiring action by and for new captives in the making has added to the funnel of hiring action.” Top recruiters among s in India are BFSI companies. In FY22, the BFSI GCC cluster net-added more than 60,000 jobs, accounting for nearly one-third of the total net additions during the fiscal. Other top sectors include software, automotive, pharma, retail, and oil and gas. Companies on top of the hiring action include Amex, Bank of America, Wells Fargo, Citi, Barclays, Morgan Stanley, HSBC, Standard Chartered, Goldman Sachs, Amazon, Target, Walmart, Shell, GSK, Abbott, , J&J, , and , among others, according to Xpheno data. “India as a market is very attractive from a commercial perspective. It also has one of the largest university systems with both quality and quantity of talent,” Mohit Kapoor, global chief technology officer at consumer
very attractive from a commercial perspective. It also has one of the largest university systems with both quality and quantity of talent,” Mohit Kapoor, global chief technology officer at consumer researcher Nielsen IQ, had told ET in a recent interview. Nielsen is planning to hire over 5,000 people in the country at its three global hubs in Chennai, Vadodara and Pune by the end of 2023. “Our India hubs will be of strategic advantage for us going ahead,” Kapoor said. The roles in demand are across the spectrum. However, with an enhanced focus on digital transformation post-pandemic, top talent and roles in demand are in the tech and digital space. Roles in solutioning, core development, DevOps, cloud and cyber security, virtualisation, data analytics, and enterprise mobility are in demand. That apart, roles in artificial intelligence/machine learning, internet of things (IoT), robotic process automation (RPA), and blockchain continue to be in demand.
Uber continues global expansion with launch in Israel Technologies Inc said it was launching its ride-hailing platform in by connecting to a nationwide network of licensed taxis, as it continues to expand globally. Thousands of taxi drivers - both independent and working for companies -- have already joined up, with the service that also includes ride sharing mainly available to passengers in Israel's two largest cities, Jerusalem and Tel Aviv, it said. Uber, which operates in more than 70 countries and 10,000 cities globally, will compete locally with services such as and . A previous attempt by Uber to operate in Israel was halted by a court in 2017. Israel’s Transportation Ministry, Taxi Driver Union, and a rival ride-hailing company had won the injunction after complaining that the U.S. company used drivers who lacked the proper business licenses and insurance. "We want to use technology to turn taxi services, working with other public transportation services, into the alternative to the private car they can be," said Gony Noy, general manager of Uber Israel. The partnership in Israel follows similar deals in Italy, Spain, Germany, Austria, Turkey, South Korea, Hong Kong as well as New York and San Francisco. The company has said it wants to have every taxi available on its app by 2025.
An INR 35,000 EV is part of a first-gen engineer's crusade for affordable electric mobility in rural markets Born and brought up in the weaving community of rural Coimbatore ( ), where girls are married at an age as early as 15, is (41)- the first female in her family’s history to get an engineering degree. In the quest for sustainable and affordable mobility, Panneer put to use her engineering knowledge and skillset when she started work on her venture– – in 2018. Incorporated in December 2021, the company today employs about 35 people who are working on producing low speed two wheelers for the rural markets. The model is in the prototype stage and expected to hit the markets by next year. Alongside, it is also producing , which have been approved by the testing agency ARAI. With her business venture, Panneer intends to offer the low speed electric two wheeler with swappable battery in two variants. First, with a 1kWh battery offering a range of up to 40 kilometers. This will be priced at around INR 35,000 (ex-showroom). For longer distances, there is another variant of up to 70 kilometer range with a battery of over 2kWh. This will be available at around INR 70,000. The target is to not exceed the vehicle weight over 50 kg. “Due to the road conditions in rural areas, we have used tires with an extended width to avoid the worry about their punctures.” Currently Yulu Wynn and Kinetic Zulu are the most affordable EVs available in the category where AR4 is working to operate in. However, these bikes have not found a promised market in the Tier-3, 4 towns of the country yet. Interestingly, Panneer is working on low speed scooters with a sodium ion battery technology and claims to find it as a better solution when compared to the traditional lithium ion technology. This she attributes to being well placed, superior safety, high thermal resistance, water resistance, and impact resistance. However, she noted that there is a gap in the skilling and processing industry. “Sodium ions can be produced indigenously, but India doesn’t yet know how to process minerals the way China can. The Chinese understand the minerals to the core,” she said in a conversation with ETAuto. The startup has been bootstrapped and received a funding of close to INR 1.8 crore from Singapore-based Sodion Energy, a leading developer of . Experts suggest sodium-ion battery chemistries are being widely considered as a potential alternative to li-ion and the industry could see it in production sooner than expected. Some of the companies that made a move toward sodium-ion batteries include mainland Chinese automakers including BYD. Stellantis and Northvolt have also joined the league. Retrofitting to give a new life Panneer and team have also built a retrofit kit for two wheelers. Having tested them for models like five models namely Honda Activa, Suzuki Access, TVS Zest, TVS XL and Hero Splendor, it has received an approval from the testing agency ARAI in February this year for
tested them for models like five models namely Honda Activa, Suzuki Access, TVS Zest, TVS XL and Hero Splendor, it has received an approval from the testing agency ARAI in February this year for running in Tamil Nadu and Karnataka. “Retrofitment is the solution for Tier-3,4 markets as the price of new electric scooters even with subsidies is way out of pockets for most people here,” she said. The team is working through the process of receiving an approval for a few other Southern states to supply the kits for price sensitive, mass market applications. Further, Panneer highlighted the need for awareness on the customers' part. She shared that the re-registration process for these retrofitted EVs require the vehicle to be within the life cycle of 15 years, have an original registration certificate, an insurance policy and no penalty attached to it. “Not checking the background and vehicle history before registration can lead to the customer paying the penalties and other dues of the previously owned vehicle.” The company is currently working on appointing dealerships to sell retrofit kits.The long term goal is to enable retrofitment of EVs across categories including two wheelers, four wheelers, tractors, and wheelbarrows for agricultural equipment, the woman entrepreneur said. Tracing the roots Considering her family history, Panneer was proud of the fact that her parents ensured her college education despite reluctance from their society and the extended family. A graduate in computer science engineering, Panneer’s luck was flying high until the day a tragedy took place and she was no longer allowed to continue her studies or receive support from the family. Married off right after her graduation, she could not sit for placements. However, with support from her husband she got the encouragement to pursue a postgraduate degree to complete her M.Tech and later got a job. Post this, she gained knowledge on the field and continued to work, until she got the confidence to start her own venture six years back. Panneer sure has a long way to go before her product makes its way in the homes of rural India. And even though there already are several startups in the country offering EVs and retrofitment solutions in the market, her story of determination is one to behold!
The state of the Indian economy: 2022 Roundup On December 6, 2022, the World Bank revised its GDP growth outlook for India for 2022-23 from 6.5% to 6.9%, on the back of the economy’s strong performance in Q2. The World Bank went on to say that the nation was “well placed” to steer through any potential global headwinds in 2023. The has proven to be remarkably resilient in the face of the deteriorating global situation due to the strong macroeconomic fundamentals that place it well ahead of other emerging market economies. Here's a look at how the economy has fared through 2022, which positions India for growth in 2023. 2022 – The Year in Review There was no dearth of headwinds throughout the year, which impacted India’s path to economic recovery. The year began with the threat of the Omicron variant of the coronavirus. Fortunately, the threat subsided fairly quickly, without impacting the economy in any significant way. The only problem was that this headwind was replaced by Russia’s invasion of Ukraine in mid-February, leading to further disruptions in the global supply chain. The next development to impact the economy was the decision of several major central banks, especially the US Federal Reserve, to reverse their loose monetary policy stance. The ripple effect of the policy-tightening measures was felt worldwide. The RBI wasn’t too far behind in tightening its stance either, with the first interest rate hike being announced in May. Some of the key aspects of the economy that deserve special mention are: The Indian GDP In the first half of the current financial year, India’s GDP registered a growth of 9.7%, compared with 13.7% a year ago. Gross Value Added (GVA) also rose, albeit below the level seen in the same period last year, at 9% versus the 12.8% growth a year ago. GDP growth accelerated in the June-end quarter although below the RBI's expectation, rising to 13.5%. This growth was driven by an increase in gross fixed capital formation and private consumption spending. Some normalisation was seen in the September-end quarter, with GDP growth slowing to 6.3%, driven by the contraction in the mining and manufacturing sectors, along with high inflation, declining exports and rising input prices. Inflation Retail inflation, as reflected by the Consumer Price Index, remained above the RBI’s upper tolerability level of 6% for 10 consecutive months to November, when it eased slightly to 5.88%. Retail inflation recorded an eight-year high in April, with rural inflation rising to 8.4% and urban inflation being recorded at 7.1%. This surge was attributed by analysts to the sharp rise in food inflation, which recorded a 17-month high of 8.4% in April. This rise was driven to a large extent by the worldwide spike in crude oil prices, which impacted not just food and commodity prices but also communication and transport costs. Interest Rate Hikes Although the Monetary Policy Committee (MPC) of the RBI left the rate unchanged at 4% in April, it voted
just food and commodity prices but also communication and transport costs. Interest Rate Hikes Although the Monetary Policy Committee (MPC) of the RBI left the rate unchanged at 4% in April, it voted unanimously on increasing the repo rate during its off-cycle meeting in May. As a result, the repo rate rose 40 basis points to 4.40%. The MPC has raised rates at each of its three subsequent meetings this year, hiking the repo rate by 50 basis points each time, till the rate peaked at 5.9% in September. It was only recently in December that the RBI decided to moderate its rate hikes, raising the repo rate by 35 basis points to 6.25%. The It has been an action-packed year for the Indian stock market. The first hit was from the Russia-Ukraine war, which led the Sensex to plunge 2,702 points on February 24, the day Russia invaded Ukraine. But both Sensex and Nifty bounced back fairly quickly, driven by a better-than-expected corporate earnings season in Q1, along with moderation in global commodity prices and domestic inflation. Investor sentiment also received a boost from the return of FIIs to the Indian market, sending the Sensex and Nifty to new highs. With rapid geopolitical and economic developments worldwide, Sensex saw over 1,000 rallies, with its largest single-day gain coming in on February 15, when it rose 1,736 points. On the flip side, the Sensex also saw major crashes, with the index plunging at least 1,000 points in a single day at least 14 times through the year. Nifty, India’s economic bellwether, also remained volatile through the year, recording a gain of almost 3%. While the big winners during the Covid era, pharma and IT, did not fare well in 2022, the financial sector proved to be an outlier, with the Nifty Bank index up by almost 18% at the end of December, driven by rising interest rates, recovery in credit demand and a steep decline in non-performing assets. Looking Ahead at 2023 The new year brings hopes for continued momentum in India’s growth story, backed by the sustained strength in domestic demand, according to a recent report by Morgan Stanley. In addition, the OECD is optimistic that India could become the second-fastest growing economy among the G20 nations in FY2022-23, after Saudi Arabia. This is expected despite a potential slowdown in global demand, inflationary pressures and continued monetary policy tightening. Credit Suisse’s Global Equities Strategy team has also upgraded India from “Underweight” to “Benchmark” for 2023, given the nation’s underlying economic strength. With respect to investments, sectors that are projected to perform the best include financial services, banking, insurance, capital goods, housing, defense, infrastructure and the railways. Having said that, investment decisions cannot be based on hope. It is important to continue to do your due diligence to make well-informed investments.
EV bike-makers misusing rules for low-powered vehicles: Centre NEW DELHI: The Centre has urged states to crack down on manufacturers and dealers of electric two-wheelers who are bypassing the regulatory norms by taking advantage of legal provisions that allows certain categories of such twowheelers out of the ambit of “motor vehicles”. According to the rules, vehicles equipped with electric motors having 30 minutes power of less than 0. 25 kw and having maximum speed of less than 25 kmph are not treated as motor vehicles. Hence, norms such as type approval, insurance and mandatory display of number plate are not applicable for such vehicles. Sources said the manufacturers and dealers are misusing this provision. After getting the go ahead from testing agencies by complying with the norms, they are flouting the provision and are fitting batteries of higher capacity that allows these vehicles to run at higher speed. “These pose a huge risk to the road users. We have received several complaints and hence have asked states to act against this menace,” said a road transport ministry official. “These manufacturers and dealers are supplying higher battery capacity models which are plying with top speed 40-50 kmph without type approval, insurance and vehicle identification as per norms. These vehicles are tampering with the verification undertaken by the testing agencies,” the ministry said in a communication to all state governments.
Centre notifies new vehicle insurance rates The centre on Wednesday approved the new base premium rates for third party motor . These revised rates will be applicable from June 1, 2022. These rates were last revised for financial year 2019-20 and were kept unchanged during the COVID-19 pandemic. According to a gazette notification from the Ministry of Road, Transport, and Highways, the annual rate of for private cars not exceeding 1000 cc has been fixed at Rs 2,094, up from Rs 2,072 in 2019-20. Under the new rates, third party insurance for private cars with an engine capacity between 1000 cc and 1500 cc has been raised to Rs 3,416 from Rs 3,221 in 2019-20. Larger private vehicles that have an engine capacity above 1500 cc will see the premiums fall to Rs 7,897 from Rs 7,890. For two wheelers over 150 cc but not exceeding 350 cc, the insurance premium will be Rs 1,366 while two-wheelers over 350 cc will command a premium of Rs 2,804. The three-year single premium for a new car not exceeding 1000 cc has been fixed at Rs 6,521, while for a car between 1000 cc and 1500 cc it has been fixed at Rs 10,640. A new private vehicle exceeding 1500 cc will be insured at Rs 24,596 for three years under the newly notified rates. The five year single premium for two wheelers not exceeding 75 cc is Rs 2,901, exceeding 75 cc but not 150 cc is Rs 3,851, and exceeding 150 cc but not 350 cc is Rs 7,365. A two wheeler exceeding 350 cc can be insured for five years at Rs 15,117 under the new rates. A new private electric vehicle (EV) can be insured at Rs 5,543 for three years if it is not exceeding 30 KW. If the EV exceeds 30 KW but is less than 65 KW, the three year premium will be Rs 9,044. Larger EVs exceeding 65 KW will be insured at Rs 20,907 for three years. New two wheelers EVs can be insured under five year single premiums for Rs 2,466 if they are not exceeding 3 KW. EV two wheelers exceeding 3 KW but not 7 KW will be insured for Rs 3,273, and exceeding 7 KW but not 16 KW for Rs 6,260. Higher powered EV two wheelers with a capacity exceeding 16 KW will be insured at Rs 12,849 for five years.
A Beginner’s Guide For Car Insurance 101 - A Beginner's Guide Car insurance is the first step of responsibility after purchasing a car. Once you have chosen the car you want to purchase, ensure that you look into different aspects of purchasing a suitable car insurance policy. Here is a beginner’s guide that will help you understand more and take this step confidently. What is car insurance? Car insurance is where the owner of the car and the insurance company sign a contract between them. This agreement enables the owner to protect against any kind of losses or damage to the car by agreeing to pay an insurance premium amount to the insurance company. In return, the insurance company agrees to pay the costs associated and covered under the particular policy and its terms. Is car insurance necessary in India? Yes. The Government of India has made it compulsory for every car owner to obtain . According to The of 1998, getting a car insurance policy is mandatory before they can ply the road. Driving on roads without a car insurance policy in India is illegal. In case of an accident without a valid car insurance policy, 2 types of cases will be filed against you. One will be the criminal case (for negligent driving). The second one will be to get the claim you would have to give compensation to the family of the deceased. Two Types of Car Insurance Policies: : policy is a basic and mandatory car insurance policy in India. It covers financial losses that occur like bodily injuries, and losses caused to any third-party property/ vehicle by the insured car. Comprehensive Car Insurance Policy: This type of car insurance policy provides a lot of coverage which includes car thefts, losses to a third party, damages to the vehicle due to accidents, personal injuries or death caused in an accident, damages to the car caused by fire, or due to any other natural damages. How to choose the right car insurance in India? Know your requirement from the car insurance policy. Know your insurer and their credibility in the market. Know the key terms used in the insurance industry. For example Insured Declare Value, No Claim Bonus Compare the plans online to choose the most suitable option. Complete check of policies and terms & conditions to avoid any future tensions and shocks. Check the claim process for a better understanding. Ask about add-ons & including them in the policy if required. Know about the claim settlement ratio of the insurer. Purchase online for a hassle-free process. Easy renewal process available online. Car insurance is designed to financially protect you if you're involved in an accident or if your vehicle is damaged. Do not forget to consider the deductibles and premiums as well as driving experience and track records when choosing an insurer. Look at the key terms like the IDV value, No Claim Bonus, etc before diving into the purchase decision of an insurance policy. Make sure you evaluate your needs and then make the best suitable decision for
the key terms like the IDV value, No Claim Bonus, etc before diving into the purchase decision of an insurance policy. Make sure you evaluate your needs and then make the best suitable decision for your care. To read more about the car insurance policy offered at , .
Single-year vs. multi-year bike insurance policy New Delhi: Choosing the right insurance for your bike is a critical decision. One of the primary dilemmas faced by bike owners is deciding between a single-year and a multi-year insurance policy. Both come with their own set of advantages and disadvantages. Single-year bike insurance policies allow you flexibility and can be cheaper upfront. However, multi-year or long-term two-wheeler insurance, while seemingly more expensive initially, provides a range of benefits, like saving you from annual renewals, protection against yearly premium hikes, and ensuring coverage for an extended period of time. Therefore, understanding the specifics of each can help you make an informed decision that suits your requirements and budget and provides adequate protection for your bike. This discussion explores the fundamental differences between single-year and multi-year policies, enabling you to weigh the pros and cons of each option. 1.Understanding bike insurance Bike insurance, though mandated by law, has benefits beyond just fulfilling a statutory obligation. It protects owners from unexpected financial burdens arising due to unforeseen circumstances like accidents, theft or damage caused by natural disasters. In addition, it covers repair or replacement costs that might incur, keeping your two-wheeler in the best possible shape. Furthermore, bike insurance also includes liability coverage, protecting policyholders from possible claims made by third parties involved in accidents. This includes both damage to the third-party vehicle and any bodily harm. Therefore, comprehensive bike insurance acts as a shield, securing both your bike and finances. 2.Single-year bike insurance Single-year bike insurance offers a comprehensive package for motorcycle owners, safeguarding their vehicles for one full year. The main advantage of this policy is the affordable premium rates it offers when compared to longer-duration policies. Under this insurance plan, the insurer protects your bike from various risks, such as damage caused by natural calamities like floods and earthquakes or man-made disasters such as vandalism and theft. The insurance also extends its cover to third-party liabilities. This includes compensation for any injury, death, or damage to the property of a third party caused by your insured vehicle, providing complete peace of mind. 3.Why choose single-year bike insurance? A single-year policy is usually more flexible, permitting you to modify or alter it yearly based on the alterations in your needs or circumstances. This flexibility is particularly beneficial if your lifestyle or personal situations change significantly over a year, necessitating different insurance coverage. Furthermore, if you plan on selling your bike or acquiring a new one within the year, it might make financial sense to choose a single-year policy. It would avoid unnecessary expenses of a multi-year policy, especially if you won't be
your bike or acquiring a new one within the year, it might make financial sense to choose a single-year policy. It would avoid unnecessary expenses of a multi-year policy, especially if you won't be owning the bike for that long. Thus, for individuals with such evolving needs, a single-year policy might be an intelligent choice. 4. Understanding multi-year bike insurance This insurance policy ensures that your two-wheeler is protected over an extended period, typically up to five years. With such a policy, you eliminate the necessity for annual insurance renewals and re-assessments of your coverage needs, making the process more straightforward and less time-consuming. Another benefit is the shielding against potential annual premium increases, as you lock in a set rate for several years. The insurance also includes continuous third-party coverage, offering you peace of mind, knowing that your potential liabilities towards third parties are taken care of without needing to renew the coverage annually. Overall, a multi-year two-wheeler insurance policy is a long-term commitment that provides enduring financial protection and convenience. 5.The perks of multi-year bike insurance In comparison to single-year policies, long-term two-wheeler insurance offers more extensive benefits. It mainly removes the hassle of annual renewals, giving policyholders continuous coverage over the policy term. With the ever-increasing rates of premiums, the chance to lock in a stable rate is a key advantage. A long-term policy insulates policyholders from this annual cost escalation. Another key feature of a long-term policy is the assurance of continuous coverage, ensuring that there are no gaps where your two-wheeler could potentially be uninsured. This significantly reduces the risk of out-of-pocket expenses in case of any damage or theft. Despite its higher upfront cost, a multi-year bike insurance policy provides long-term benefits. It shields policyholders from the effects of annual insurance premium hikes, thus offering cost efficiency in the long run. Besides, multi-year policies often come with added benefits, like no-claims bonuses and special discounts, further increasing their value for money. Overall, long-term two-wheeler insurance guarantees peace of mind and financial protection for an extended period. 6.Single-year vs. multi-year bike insurance: Single-year bike insurance offers convenience and flexibility. Bike owners are attracted to its short commitment period, enabling them to evaluate their needs annually and make adjustments if necessary. However, it requires yearly renewals, which could be an administrative hassle. On the other hand, multi-year insurance offers coverage for multiple years, typically two to three years. This means, for the length of the policy, the bike is covered, and there's no need to renew annually, reducing the hassle for bike owners. Moreover, this policy safeguards the owners from potential yearly hikes in premiums.
of the policy, the bike is covered, and there's no need to renew annually, reducing the hassle for bike owners. Moreover, this policy safeguards the owners from potential yearly hikes in premiums. Hence, each of these insurance types caters to different customer needs based on convenience and peace of mind. Your bike, your choice The decision between a single-year and multi-year bike insurance policy ultimately depends on individual needs. If you plan to use your bike for a short time, you might opt for a single-year policy. Conversely, if you're looking for convenience and long-term security, a multi-year policy is probably your best bet. A rider's financial capabilities, time, effort, and the life expectancy of the bike are critical considerations in this decision. A single-year policy could be more beneficial for individuals prioritising minimal initial expenditure or who plan to replace their bikes soon. Meanwhile, a long-term policy may be more attractive for individuals preferring convenience in terms of administration, alongside the extended coverage period offered by these policies. Thus, the choice of a bike insurance plan depends significantly on the unique needs and circumstances of each rider. Conclusion As an intelligent bike owner, your focus should be on the overall safety of your bike and ensuring adequate coverage against potential threats. The right third-party bike insurance policy - whether single-year or long-term two-wheeler insurance can go a long way in ensuring financial stability during unanticipated adversities. So, choose wisely and ride with confidence. Note: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales. Disclaimer - The above content is non-editorial, and ETAuto hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content.
Self-driving car companies zoom ahead, leaving U.S. regulators behind from Inc to General Motors Co's Cruise are racing to start making money with their technology, outrunning efforts by regulators and Congress to write rules of the road for robot-driven vehicles. On Tuesday, Cruise said that SoftBank Group Corp will invest another $1.35 billion in anticipation of Cruise launching commercial robo-taxi operations. Cruise needs one permit, from California's Public Utilities Commission, to start charging for rides around San Francisco in vehicles with no human driver. Cruise, Tesla, Alphabet Inc's and Aurora Innovation Inc are among many companies aiming to deploy fully autonomous vehicle technology in the United States within the next two to three years, whether or not federal regulators give them a clear legal framework for doing so. Autonomous vehicle (AV) startups and automakers are under pressure to start generating revenue from billions of dollars of engineering investment over the past decade. Proposed legislation to create a national framework of rules to govern remains stalled in Congress, despite the industry's lobbying. That has left autonomous vehicle companies free to deploy robo-taxis or self-driving trucks in some states, such as Arizona and Texas, but not in others. Waymo has provided thousands of rides in driverless robo-taxis in Phoenix, though the service remains limited. "Providing guard rails is helpful, at the federal level," said Chris Urmson, chief executive of automated vehicle technology company Aurora Innovation. "Today we have different regulations across the 50 states." Aurora is testing its Aurora Driver in Class 8 trucks, but so far cannot operate those trucks in California without human drivers. That cuts off a potentially rich market for autonomous truck companies hauling loads from Southern California to distribution hubs to the east. "We look at the Port of Los Angeles ... and the supply-chain challenges we see. There's a real urgency for this technology" to address the shortage of truck drivers, Urmson said to an audience at the Washington Auto Show last month. AV industry lobbyist Ariel Wolf told a U.S. House of Representatives panel on Tuesday that autonomous trucks "will not lead to mass layoffs." Instead, he said, autonomous trucks driving long-haul routes will allow human drivers to "spend more nights in their own beds instead of in the sleeper berth of a truck." PROTECTING JOBS Unions, however, urged Congress to be skeptical. "We are at risk ... of losing hundreds of thousands of manufacturing and frontline transportation jobs if Congress fails to act decisively and the AV industry is left completely unregulated," Transport Workers Union president John Samuelsen told the House panel Tuesday. Unions and trial lawyers also want autonomous vehicle companies to disclose more data about accidents and other aspects of their systems. "All workers deserve to know that an autonomous vehicle or bot traveling next to
also want autonomous vehicle companies to disclose more data about accidents and other aspects of their systems. "All workers deserve to know that an autonomous vehicle or bot traveling next to them is safe enough to share the same road or worksite," said Teamsters official Doug Bloch. In the absence of new laws tailored to automated vehicles, the National Highway Traffic Safety Administration, which oversees vehicle safety in the United States, has put forward voluntary guidelines and last year required companies to report accidents involving automated driving systems. But the agency has not issued comprehensive standards for robot-driven cars or trucks. The U.S. Federal Aviation Administration has the power to review new technology before it is used in aircraft. But motor vehicle manufacturers are free to certify for themselves that a feature is safe. The NHTSA steps in if new features turn out to be a safety hazard. NHTSA officials have intensified scrutiny of Tesla's automated driving systems over the past year. The agency on Tuesday said it had pressed Tesla to change a feature of its Full Self Driving, or FSD, automated driving system that allowed vehicles to keep moving through stop signs rather than come to a complete halt. So-called rolling stops are illegal. In December, NHTSA opened a review of a feature that allowed Tesla models to play videos over dashboard screens, and last August opened a formal investigation of the Autopilot driver assistance systems in 765,000 U.S. vehicles after a series of incidents in which Teslas collided with emergency vehicles. Still, Tesla Chief Executive Elon Musk made no mention of regulatory concerns during an investor call on Jan. 26 when he said the company could soon use an over-the-air software download to enable its vehicles to drive themselves and be used to offer autonomous ride services. "I would be shocked if we do not achieve full self-driving safer than a human this year," Musk said. When Tesla enables its vehicles to drive autonomously via an over-the-air software download, Musk said, vehicle owners could offer rides that would "cost less than the subsidized value of a bus ticket." One potential path for the industry and safety advocates involves voluntary agreements on standards, said David Harkey, president of the Insurance Institute for Highway Safety, a vehicle safety research organization backed by the insurance industry. Harkey said the IIHS could be part of such an effort. "We have to get to the point where it's not the Wild West," he said. Also Read:
Tesla may head to India on incentive-paved road US electric automaker could soon set up shop in , with the government close to finalising a policy to extend concessional import duties on electric cars exceeding INR 30 lakh (about USD 36,000) for 2-3 years. The reduced import duties are likely to be offered in lieu of bank guarantees by Tesla for a proposed investment to build an electric vehicle factory in India, people aware of the developments told ET. India imposes 100% on cars with cost, insurance and freight value of more than USD 40,000 (about INR 33 lakh), and 60% for those below that threshold. Tesla is willing to invest up to USD 2 billion if the Indian government offers reduced import duty of 15% on imported electric cars in the first two years of operations, ET had reported. The Centre is keen that foreign automakers entering the large and growing Indian market accelerate plans for local manufacturing to boost employment generation while bringing down prices of through localisation. "The government is looking at reducing import duties temporarily, based on bank guarantees. The quantum of the bank guarantee has not been determined (yet), but the thought is that this will help ensure that companies make timely investments and set up local factories," said one of the persons cited above. Bank guarantees can be encashed in the event of non-compliance with timelines specified for making investments. Faced with the prospect of relaxed import duties for Tesla, Indian automakers are taking a cautious wait-and-watch approach before making any move. A senior industry executive who did not wish to be named said while the industry has not yet formally communicated any objection to the government, several carmakers have been concerned that any reduction in import duty will result in an unfair advantage to the American carmaker, which has yet to make a firm investment plan. Last month, Mahindra & Mahindra (M&M) managing director Anish Shah said his company had made representations to government officials, saying global makers must be nudged to invest in India. "It should be a level playing field... investing in India is important. Our approach is essentially to create a stronger industry in India, and not to be in a situation where manufacturing is done outside India, and India just becomes an importer of products," Shah said at the World Economic Forum in Davos, without referring to Tesla by name, as per media reports. Homegrown auto majors like and M&M already produce EVs locally.
Goldstone Tech and Quantron AG forge JV to build digital platforms for e-mobility services Mumbai: (GTL) is setting up a Joint venture company partnering with German major, . The JV will operate out of Augsburg, in Germany and from Hyderabad, with plans to set up a US entity in Q3 2023. The JV company operating out of Germany will be focusing on providing various solutions through an AI-supported platform. GTL and Quantron, by developing this platform, will be serving a market which needs sustainable integrated solutions for mobility and logistic companies for their fleet management solutions. The new company will be a key enabler for a zero-emission transport transformation, the companies said in a media release. The addressable market size will be between EUR 150 billion and EUR250 billion by 2030 enabling OEM-agnostic mobility as a Service (MaaS) Solution. The target markets are , the USA, India, and the Middle East with QUANTRON, and ETO Motors as the first customers. Both parties are planning to invest over EUR 20 million in the next 36 months in these platforms. GTL as a development partner will provide the software and manage the integration of the customised platform and Quantron will utilise the digital platform as an enabler for its 360° ecosystem for its customers. The new software will enable an AI-driven SaaS-based platform to serve both as a transaction and customer-facing platform, featuring a for e.g., the performance measurement of fleets, etc. The JV has enough enquiries including the partners' fleets where the beta version will be launched soon. GTL will bring People, Processes and Technology together to solve complex business problems, and BI, Analytics and Sustainability solutions help customers succeed with data. GTL’s world-class IT Service offerings aim to deliver focused, flexible, and high-quality solutions at optimal costs, thereby building trust-based relationships with customers and reducing time to value. GTL will be developing the Minimum Viable Product (MVP) of the platform, in collaboration with Quantron. Roadzen Inc.is a strategic partner in this JV to support with a digital product portfolio to offer Insurance-as-a-Service (IaaS), Roadside Assistance & Extended Warranty modules. The JV would also cover the distribution, sale & commercialization of the software as a white-labelled solution to third parties. One of the objectives of the JV is to give logistics providers opportunities to convert their existing analogue processes into digital environments. The focus of the JV is on the value addition the clients get from solutions, not just the solutions themselves. Starting out as a horse-drawn carriage business in the year 1882, Quantron combines e-mobility knowhow with over 140 years of commercial vehicle experience and plans to introduce heavy-lift e-mobility logistics solutions to the . The JV will announce the plan for the Indian market with the MaaS and Fleet Management services, with the view to become
and plans to introduce heavy-lift e-mobility logistics solutions to the . The JV will announce the plan for the Indian market with the MaaS and Fleet Management services, with the view to become OEM-agnostic and focus on the future needs of fleets in the Zero Emission World.
Oil prices fall on demand concerns after US stock build fell on Thursday, as concerns over low demand following a surprise outweighed jitters over global trade disruptions and in the Middle East. fell 65 cents, or 0.8%, to USD 79.05 a barrel by 0120 GMT while U.S. West Texas Intermediate crude was at USD 73.67 a barrel, down 55 cents, or 0.7%. Both benchmarks edged up on Wednesday as investors worried about trade disruptions as major maritime carriers chose to steer clear of the Red Sea route, with longer voyages increasing transport and insurance costs. "Market focus returned to sluggish global demand as the impact on the Red Sea is seen to be limited on oil as long as it does not spill over into the Strait of Hormuz," said Tsuyoshi Ueno, senior economist at NLI Research Institute. "A build in U.S. crude stocks and record domestic oil production also added to pressure," he said. The U.S. Energy Information Administration (EIA) said on Wednesday that U.S. crude inventories rose by 2.9 million barrels in the week to Dec. 15 to 443.7 million barrels, compared with analysts' expectations in a Reuters poll for a 2.3 million barrel drop. EIA also said U.S. crude output rose to a record 13.3 million barrels per day (bpd) last week, up from the prior all-time high of 13.2 million bpd. For shipping, about 12% of world traffic passes up the Red Sea and through the Suez Canal. However, the impact on oil supply has been limited so far, analysts said, because the bulk of Middle East crude is exported via the Strait of Hormuz. "Since there will be no additional production cuts by OPEC+ this year, oil prices will likely remain in range through the end of the year, with focus on key economic statistics and the U.S. dollar's reaction to them," said Naohiro Niimura, a partner at Market Risk Advisory, a research and consulting firm. He predicted WTI would trade between USD 70 and USD 75 this month. The U.S.-led coalition imposing a price cap on seaborne Russian oil announced changes on Wednesday to its compliance regime that the Treasury Department said would make it harder for Russian exporters to bypass the cap.
India to decide....to buy oil in keeping within price cap: White House on Russian oil White House National Security Council (NSC) Coordinator for Strategic Communications said on Tuesday said that it is up to India to decide to buy and hoped that India will continue to buy Russian oil in keeping within the price cap. Speaking on the price cap on Russian oil, Kirby said, "The price cap is working and proven effective. It's working and we are gratified to see that. It is up to India to decide and we hope that India will continue to buy oil in keeping within the price cap." In December last year, the United States and its allies went after Russia's all-important oil revenues after a European ban and price cap on Russian oil. Europe, along with the United States and other major economies, like the United Kingdom, Japan, Canada, and Australia, agreed to a maximum of USD 60 per barrel on Russian seaborne oil, which means anyone who still wants to buy Russian oil has to pay that price or less if it wants to ship cargo through operators or insurers based in the EU or other countries who signed on to this price cap. John Kirby said that India is a "key and important partner" for the United States not just in the Indo-Pacific but globally. He stated that Prime Minister and US President will have discussions on a number of issues. He noted that India and US bilateral ties in the future will be "one of the most defining and important." "India is a key and important partner, not just in the Indo-Pacific, but globally for the United States. In fact, it's one of the most defining bilateral relationships in the world now and if you just look ahead, look at where things are going, not just in that region, but elsewhere, I think it's safe to say that it's going to be one of the most defining and important bilateral relationships well into the future," said Kirby. "And so in the context of that, you can expect that over the next few days, President Biden and Prime Minister will have wide-ranging discussions about a lot of issues. Some issues are always easier to discuss than others, but that's what partners do, you have those kinds of conversations. I'm not going to get ahead of them. And I'm certainly not going to speak for either leader until they have a chance to speak for themselves at the end of their visits and meetings. But, I think you will see that the agenda they end up discussing is very robust and covers many issues," he added. John Kirby noted that US President Joe Biden never shies away from holding discussions with foreign issues about issues on which they don't see eye-to-eye. He called the India-US bilateral partnership "hugely important" for Washington. It is pertinent to note here that India continues to buy Russian oil even after the ongoing conflict between Russia and Ukraine. When asked about Russia evading sanctions, Kirby said, "I mean, this is why we have constant dialogue with allies and partners and friends in the region and around the
between Russia and Ukraine. When asked about Russia evading sanctions, Kirby said, "I mean, this is why we have constant dialogue with allies and partners and friends in the region and around the world. We don't want to see anybody try to skirt these sanctions. We want to see Mr Putin held to account and the Kremlin held to account. Now, obviously, every nation has to make these decisions for themselves, but our view has been very clear. We want to see all the international sanctions ascribed to and enforced appropriately so that Mr Putin can't benefit and we have no compunction about having conversations privately with allies, partners, and friends throughout the world, certainly on the European continent, about our concerns in that regard. But, obviously, we wouldn't get into detail about what the diplomatic conversations are." "As I've said earlier, President Biden never shies away, nor would you expect him to from having conversations with foreign leaders about issues on which we don't always see eye to eye. That's important. That's why you have visits, that's why you have meetings. That's why you have these discussions so that you can work through all of those things. But, this is not only a very important visit for us, but this is a hugely important bilateral relationship that the President and his entire team Secretary of State Antony Blinken, Secretary of Defense Lloyd Austin, and Secretary of Commerce, Gina Raimondo have all put a lot of energy into." Prime Minister Narendra Modi arrived in New York on the first leg of his historic state visit to the United States. During his visit to New York, PM Modi will meet CEOs, Nobel laureates, economists, artists, scientists, scholars, entrepreneurs, academicians, and health sector experts today. He will attend Yoga Day celebrations at the UN headquarters on June 21. PM Modi will then travel to Washington DC and receive a ceremonial welcome at the White House on June 22.US President Joe Biden and First Lady Jill Biden will host a State Dinner in honour of the Prime Minister the same evening. The Prime Minister will also address a Joint Sitting of the US Congress on the same day. On June 23, the Prime Minister will be jointly hosted at a luncheon by US Vice President Kamala Harris and the US Secretary of State Antony Blinken. In addition to official engagements, the Prime Minister is scheduled to have several interactions with leading CEOs, professionals, and other stakeholders.
Tesla slashes China prices by up to 9% as analysts warn of 'price war' has cut starter prices for its Model 3 and Model Y cars by as much as 9% in , reversing a trend of increases across the industry amid signs of softening demand in the world's largest auto market. The price cuts, posted in listings on the electric vehicle ( ) giant's China website on Monday, are the first by Tesla in China in 2022, and come after Tesla began offering limited incentives to buyers who opted for Tesla's insurance last month. The price cuts come after Tesla Chief Executive said last week that "a recession of sorts" was under way in China and Europe and Tesla said it would miss its vehicle delivery target this year. Musk told analysts last week that demand was strong in the current quarter and said he expected Tesla to be "recession-resilient". China Merchants Bank International (CMBI) said Tesla's price cuts underlined the growing competitive risk for EV makers in China, with industry-wide sales projected to slow into 2023. "The price cuts underscore the possible price war which we have been emphasising since August," said Shi Ji, an analyst with CMBI. Data on Monday showed retail sales in China grew 2.5% in September, below the expected 3.3% rise and less than half August's 5.4% growth. Analysts are warning of a growing car inventory glut for autos in China, where auto sales growth slowed in September while EV sales rose at their slowest pace in five months. The U.S. automaker and several Chinese rivals have hiked prices several times since last year amid rising raw material costs. But Tesla has also regularly adjusted prices of its cars in China, including reductions, reflecting government subsidies. Tesla told Reuters it was adjusting prices in line with costs. Capacity utilisation at its has improved, while the supply chain remains stable despite the impact on the economy of China's stringent zero-COVID restrictions, leading to lower costs, it said. The starting price for the Model 3 sedan was reduced to 265,900 yuan ($36,727) from 279,900 yuan, while that for the Model Y sport utility vehicle was cut to 288,900 yuan from 316,900 yuan, the product prices listed on its Chinese website showed. The average price for a new Tesla in the United States, the EV maker's largest market, has been climbing steadily since last year and was just under $70,000 in August, according to research company Kelley Blue Book. Tesla upgraded its Shanghai factory earlier this year in a development that brought the factory's weekly output capacity to around 22,000 units compared with levels of around 17,000 in June, Reuters previously reported. Tesla delivered 83,135 China-made EVs in September, an 8% increase from August, and set an output record for the Shanghai factory since production began in December 2019. CMBI analysts warned last week that 2023 would bring more competition to the EV sector, saying that it expected to see sales growth for EVs and hybrids on a combined basis to
began in December 2019. CMBI analysts warned last week that 2023 would bring more competition to the EV sector, saying that it expected to see sales growth for EVs and hybrids on a combined basis to drop below 50%. Tesla is currently China's third best-selling EV maker after BYD Motor and SAIC-GM-Wuling, and is the only foreign player in the top 15 list published by the . CMBI said it expected that other automakers would need to cut prices on battery-electric and plug-in hybrid cars, following Tesla's lead because of a projected increase in production capacity next year. ($1 = 7.2399 Chinese yuan) Read More:
Two-wheeler makers should provide helmets to vehicle buyers at a discount: Nitin Gadkari Union minister on Wednesday said two-wheeler manufacturers should provide helmet to the purchaser of the vehicle at a discount or reasonable rate as many people die in road accidents just for not wearing . Addressing an event here, Gadkari said 50,029 people lost their lives in accidents in the country in 2022 when they were not wearing helmets. "I am thinking of requesting two-wheeler manufacturers... if they can give some reasonable discount on helmets to the purchaser of the vehicle then we can save the life of the people," he said. The road transport and highways minister also stressed on the need to plan the parking arrangement for school buses. Noting that the Motor Vehicles (Amendment) Act, 2019 has enforced hefty penalties on traffic offences, he said, "But actually, effective enforcement is also a big challenge." Gadkari said his ambition is to start driving school in every taluka of the country. According to a new report titled "National Strategy for Prevention of Unintentional Injury", compiled by the Ministry of Health, road crashes cause the most deaths due to in India, accounting for more than 43 % of such fatalities, with overspeeding being the leading reason. "There were 4,30,504 deaths from unintentional injuries and 1,70,924 deaths due to intentional injuries in India in 2022. From 2016 to 2022, there has been a marginal increase in deaths due to unintentional and intentional injuries. Road traffic crashes are the highest cause of unintentional injuries (43.7 %)," the report had said.
Sheerdrive launches used vehicle auction portal – Sheerdrive Pro New Delhi: , a Mumbai-based pre-owned vehicle platform with a SaaS-based offering, has unveiled a comprehensive used vehicle auction portal - . This innovative platform, to be showcased at the in New Delhi, seamlessly brings together an extensive array of options from various sources such as banks, insurance companies, fleet operators, new car dealerships, and individual sellers, the company said. CEO and founder of Sheerdrive, , said “Standing as a singular solution for both individuals and businesses, Sheerdrive Pro offers an unparalleled range of used vehicles tailored to every budget and requirement. Leveraging state-of-the-art technology, the platform redefines the vehicle auction process, making it efficient, transparent, and accessible to a broad audience. Sheerdrive's commitment to revolutionizing the used vehicle market is exemplified through this cutting-edge portal, providing a game-changing platform for both buyers and sellers.” The Sheerdrive Pro will offer access to the largest selection of used vehicles, a fair and transparent auction process, an intuitive UI, complete vehicle information, a vast network of buyers, a secured transaction process and end-to-end customer service, the company said in a media release. New appointments: Sheerdrive has appointed as Vice President, and as Assistant General Manager. They will play a pivotal role in steering the strategic direction of the organization, implementing effective business strategies, and driving growth.
OLX Autos partners with Times Prime to introduce exclusive benefits for its customers has entered into a strategic partnership with Times Prime, India’s premium bundled lifestyle product, to launch a nationwide rewards programme for its customers. OLX Autos is India’s leading player in the pre-owned automobile segment and the partnership will enable its customers to enjoy complimentary Times Prime subscriptions. Customers getting their inspected with OLX Autos will get an assured three-month exclusive membership. In addition, those selling their car to OLX Autos will be offered a customized Times Prime Annual membership which will also include mobility, insurance, travel, hotel and fine dining with a perceived value of benefits worth Rs 1,50,000. Launching the program Siddharth Agrawal, country marketing head at OLX Autos said: “At OLX Autos, we continuously strive to enhance the experience for our customers and we believe the Times Prime subscription with its premium benefits will provide this differentiated experience enabling them to enjoy unique benefits that will distinctively add to their lifestyle.” Some of the popular brands that are part of the exclusively designed package for OLX Autos customers under the Times Prime Annual Membership include Zoomcar, GoMechanic, EaseMyTrip, AmbiPur, PVR Cinemas, and OTT platforms like Disney+ Hotstar, Discovery Plus, and Sony LIV, to news subscriptions such as TOI+ and ET Prime; Uber, and many more. OLX Autos has always kept its customers at the center offering the best price for their vehicles along with hassle-free transfers and inspections. This exclusive program is yet another step towards its customer-first approach and delivering the best experience for its customers. Speaking on the collaboration, Harshita Singh, business head of Times Prime said: “In the cluttered space of lifestyle industry, Times Prime has a unique offering of combining the best of all and providing an elevated lifestyle to its members. We have identified a similar synergy with our new brand partner OLX Autos which has seamlessly integrated the ease of buying and selling cars for its own customers. This new partnership will be a valuable addition to their current & potential customers and it will reinforce the potential of Times Prime as the ultimate lifestyle subscription in the market.” Also Read:
Government allows UAE's Adnoc to export oil from Indian strategic storage The government has allowed ( ) to export it has stored in underground strategic storages at Mangalore to give operational flexibility to the foreign firm, an order of the Ministry of Commerce and Industry said on Saturday. At present, crude oil, which is the raw material for producing fuels like petrol and diesel, is not allowed to be exported except through the state-owned Indian Oil Corporation (IOC). In an order, the ministry said the condition of export being allowed only through IOC will continue, but "AMI (Adnoc Marketing International (India) RSC Limited India) is exempted from STE conditions and is allowed to re-export crude oil from their commercial stockpile at Mangalore strategic petroleum reserve, at their own cost". India, the world's third-biggest and consumer, imports over 85% of its oil needs and has built strategic storages at three locations to store up to 5.33 million tonnes of oil as insurance against any supply disruption. The storage at Visakhapatnam (1.33 million tonnes) in Andhra Pradesh, Mangalore (1.5 million tonnes), and Padur (2.5 million tonnes) in Karnataka can meet about 9 days of national demand. The has leased half of the 1.5 million tonne capacity in Mangalore storage to Adnoc. The remaining was retained by ISPRL. The idea behind leasing the storage to foreign companies was that they could store oil for sale to domestic refiners. But in case of an emergency, India held the first right on oil usage. Adnoc had sought permission for the export of its oil from the cavern in cases where it could not find buyers in Indian refiners. After the notification, Adnoc can now export oil stored in the Mangalore storage.
Aurangabad plans to purchase 250 EV four-wheelers by March-end Aurangabad: The Marathwada Auto Cluster has launched the Aurangabad Mission ( ) with the help of people's participation. Through this initiative, Aurangabad is set to purchase 250 electric four-wheelers by the end of March 2022. So far, the documentation of around 150 four-wheelers is completed, Marathwada Auto Cluster Chairman Munish Sharma told reporters on Friday. A joint press meet of Sharma, CII office-bearer Prasad Kokil and Chamber of Marathwada Industries and Agriculture ( ) former president Ashish Garde took place on Friday at the Marathwada Auto Cluster of Waluj. Aurangabad earlier purchased Mercedes luxury cars in bulk. Now, the city is set to purchase 250 electric vehicles in the first phase of the 'Aurangabad Mission Green Mobility (EV)'. The further steps will be the purchase of 500 EV three-wheelers (loading and passenger), 1,000 two-wheelers and 50 buses. These will be brought in Aurangabad and parts of the Marathwada region, CMIA former chairman Ashish Garde said. 'Aurangabad is already known for its industrial strength. Now, to contribute towards the environment, the city has decided to undertake Aurangabad Mission Green Mobility (EV). "As a beginning, people working in different verticals will come together to purchase 250 electric four-wheelers by March-end this year. So far, we have finished the initial formalities of nearly 150 cars of their choice," Sharma said. Sharma said that for tier-II cities like Aurangabad, it may take little time to have . "But if we undertake such impactful activity, the infrastructure can come up with pace due to the available number here." "Through this mission, we have approached the concerned agencies for prices, special service, insurance and interest rates, loan-related benefits. This is a step undertaken through collective wisdom. This step is a promise to give clean water, air and soil to further generations," Kokil said. Through this initiative, EVs are made available for the test drive at seven locations in Aurangabad city, Ashish Garde said. Also Read:
Musk prefers to visit Indonesia as top Indian ministers fail to impress him and SpaceX CEO has decided to visit Indonesia in November this year, as he reportedly wraps up Tesla operations in amid continuous requests from top ministers and senior politicians to come and manufacture electric cars in the country. The Indonesian government wants to set up a world-class electric batteries industry as the country has vast nickel reserves. Indonesian President Joko 'Jokowi' Widodo met Musk in Starbase, SpaceX's rocket production facility, test site, and spaceport in Boca Chica, Texas, over the last weekend and invited him to come to Indonesia. According to Jakarta Globe, Musk admitted that he is very much interested in the future of Indonesia, which he feels has "great potential" for some collaboration with Tesla and SpaceX. "Musk also mentioned Indonesia's large population and consistent economic growth as factors that make him interested in the most populous country in Southeast Asia, the report said. Tesla has been aggressive in sourcing nickel for its electric vehicle batteries. Meanwhile, ministers in India, especially and Highways Minister , keep on making requests to the Tesla CEO to come and manufacture electric cars in India. From Telangana Minister for Industries, KT Rama Rao, to Maharashtra Minister and state President Jayant Patil, several Indian leaders have made repeated appeals to Musk to bring Tesla to India, but to no avail. Musk had said that he faced challenges from the government for releasing its products in India. Currently, India levies 100 per cent tax on imported cars priced at more than $40,000 (Rs 30 lakh), inclusive of insurance and shipping expenses, while cars less than $40,000 are subject to 60 per cent import tax. With a $40,000 (over Rs 30 lakh) price tag, Tesla Model 3 may remain as an affordable model in the US but with import duties, it would become unaffordable in the Indian market with an expected price tag of around Rs 60 lakh. Meanwhile, the team Musk hired in India last year has now been diverted to focus on the Middle-East and the larger Asia-Pacific markets. , in-charge of establishing Tesla's supercharger network in India, has updated his LinkedIn profile to Charging Operations Lead-APAC. Manoj Khurana, who was 's first recruit, responsible for public policy and business development, relocated to California last month to take up a product role.
Ki Mobility's myTVS to launch AI-led diagnostics platform for aftermarket car segment ’s will launch an artificial intelligence (AI)-led diagnostics platform later this week which will cater to the that can help customers monitor their car’s health and aid technicians at service centres with several functions including identifying where the scratches and dents are by merely taking a picture of the car to quoting how much it would cost a customer to get their car fixed. “The connected diagnostics platform has been branded ‘Drivenostics’. It offers customers the choice to diagnose their cars and is available across 1,000 outlets, allowing for a live health record of the vehicle,” Ki Mobility’s managing director G Srinivasa Raghavan told ET. “We call the service model the uberisation of service for a modern, on-demand approach to vehicle repair.” While the product is currently free for customers, soon the company will look to monetise it. The addressable market for the service is estimated to be 10-12 million vehicles for starters, with a specific focus on those vehicles that are 4-meters and above in length. “The plan is to eventually provide this data to third parties like insurance agencies as well," said Raghavan. “We work with around 23 insurance companies. Very soon we will be launching myTVS specific insurance in collaboration with an insurance partner and the diagnostics platform will be the built-in product for that." He said all the recommendations, including how to bring down the cost of repair, improve asset quality or even the resale value of the car, are invaluable for insurance companies as they can reduce the cost of ownership of the vehicle. Seeing the value that the solution can provide, the company is also piloting projects in the UK and Turkey to take the AI-led diagnostics platform to a thriving commercial vehicle market. “We are doing pilots currently in the UK and Turkey for commercial vehicle fleets in particular,” Raghavan said. “We see a significant opportunity for this if the pilot is successful in the European region as it is a big commercial vehicle market. We will be observing how things progress till March and potentially scale it up next year.” He said if the pilot is successful, it would open up an avenue of opportunity like IT outsourcing did for aftermarket vehicle management.
Odisha: E-detection portal to identify vehicles without valid docs Bhubaneswar: To keep a check on vehicles plying without valid documents, the Odisha government is going to roll out an on national highways with effect from January 1, 2023. For a vehicle to ply on a road, it is mandatory to have valid documents like registration certificate, fitness certificate and permit if it is a transport vehicle, insurance, and a (PUCC) for all vehicles and driving license for all . As per sample data collected from toll gates on the national highways, it is observed that a substantial number of vehicles are plying without valid documents. In order to detect such vehicles plying through national highways and state highways in Odisha, the transport department has developed the e-detection portal, said Dipti Ranjan Patra, joint commissioner transport (technical). The objective of the portal is to collect the data from various toll gates on the national highways. In the first phase, toll gates on NHs have been integrated with the portal. Later, data will be collected from mining and industrial areas as well, he said. Patra said the data will be collected, analysed with details in Vahan portal and automatically challan will be generated for the vehicles plying without valid documents The data will be collected in accordance with the data fetched through the FASTag and images captured when a vehicle will pass through a toll gate, he stated. Patra urged the vehicle owners to keep the vehicle documents up-to-date to avoid penalties.
Lenders line up offers to turbocharge Rural auto sales Mumbai: The slowdown in for automobiles has prompted banks and finance companies to dole out offers for the festive season including lower , free insurance and longer repayment tenures. Experts said India’s auto industry is saddled with nearly INR 80,000 crore worth of inventory. Tractor sales, which tend to pick up after good crop yield and farm product sales, have fallen over the last two months, making with growing exposure in rural markets tread with caution. The rural areas account for a sizable chunk of sales for two-wheeler maker , and car makers Maruti Suzuki, and Mahindra and Tata Motors, the leading sellers in these markets. “Rural customers, for now, are looking at lower ticket size products, due to which used entry cars and tractors are seeing better traction in such upcountry markets,” said a senior executive of a south India-based finance company. Even with the arrival of the festive season (August to October), the rural market remains under significant strain due to delayed customer purchases, poor consumer sentiment and persistent heavy rains. “The overall monsoon story looks good, which will boost rural growth. We hope to see cash flow improving with the upcoming harvest output,” said Shripad Jadhav, president - retail agriculture and gold loans—at Kotak Mahindra Bank. “The penetration of tractors as well as passenger vehicles is still low in rural markets. With aspirations in these markets going up, we are optimistic about the future.” Industry experts said they expect rural consumers to start buying new products from the fourth quarter of the current fiscal. “With a good monsoon, we expect rural sentiments to further pick up as we approach the festive season,” said a spokesperson for Mahindra Finance. “Our offerings will cater to regional markets, including remote geographies, and would be designed for local centric requirements.” Jefferies Brokerage has put a “hold” rating on Mahindra Finance’s shares based on expectation of good rural demand in the second half of 2024, as well as steady disbursement trends for the company. Experts said that if heavy rains continue in September, it could damage crops and weaken rural purchasing power. Manish Raj , president of Federation of Automotive Dealers Associations (FADA), said weather anomalies impact the auto retail market. “In August, India witnessed 15.9% excess rainfall across the country, with northwest India seeing a surplus of 31.4%, 7.2% in the east and northeast, 17.2% in central India and a minor deficiency of 1.3% in the peninsular region. These weather anomalies have had a direct impact on India's auto retail market, which registered a modest year-on-year growth of just 2.88% in August," Singhania said. “Inventory has reached alarming levels, with stock days now stretching to 70-75 days and inventory totalling 780,000 vehicles, valued at an alarming INR 77,800 crore.” The two-wheeler market saw a month-on-month decline
alarming levels, with stock days now stretching to 70-75 days and inventory totalling 780,000 vehicles, valued at an alarming INR 77,800 crore.” The two-wheeler market saw a month-on-month decline of 7.29% in August, largely due to excessive rains and flooding, which disrupted demand. As the festive season approaches, there are several challenges that could impact auto sales in the near term. India experienced 16% above-normal rainfall in August, with additional rainfall forecast for September, according to the country’s weather office. This excessive rainfall poses a significant risk to crops nearing harvest, particularly those planted in late June with a 75 to 90 days maturity cycle. “Continued heavy rains could negatively affect rural sales, as reduced agricultural output may lead to diminished purchasing power too,” said a senior executive of a Mumbai-based finance company. While the festive season and improved rural demand present promising opportunities for growth, the ongoing weather uncertainties and high inventory levels may temper the overall recovery. Linked Images (1) Lenders Line Up Offers to Turbocharge 20:45, 8 Sep ETEPAPERAUTOLIVE Preview
India's forex reserves rises after 4 weeks of fall 's rose around $2.4 billion during the week ending July 29 after falling for the four consecutive weeks. The rise was seen on back of positive inflows by the foreign investors in the Indian equity market. The country's foreign exchange reserves rose by $2.315 billion to $573.875 billion during the week ending June 29, according to the 's ( ) weekly supplementary statistical data. "India's foreign exchange reserves, supplemented by net forward assets, provide insurance against global spillovers. Our umbrella remains strong," RBI Governor said. "The Reserve Bank has also used its foreign exchange reserves accumulated over the years to curb volatility in the exchange rate," he added. During the current financial year (up to August 4), the US dollar index (DXY) has appreciated by 8.0 per cent against a basket of major currencies. In this milieu, the Indian rupee has moved in a relatively orderly fashion depreciating by 4.7 per cent against the US dollar during the same period, faring much better than several reserve currencies as well as many of its EME and Asian peers. The depreciation of the Indian rupee is more on account of the appreciation of US dollar rather than weakness in macroeconomic fundamentals of the Indian economy. "Market interventions by the RBI have helped in containing volatility and ensuring orderly movement of the rupee. We remain watchful and focused on maintaining stability of the Indian rupee," Das added. In July, foreign investors turned net buyers in the Indian equities nearly after 10 months, with an investment of around Rs 4,980 crore in the Indian equity markets. This comes heavy sell-off by these entities of around Rs 50,203 crore. According to the data NSDL data, investment of foreign investors in July month stood at Rs 4,989 crore, as compared to over Rs 50,000 crore outflows in June, Rs 39,993 crore in May and Rs 17,144 crore in April. The other central banks of the asia also used their foreign exchange reserves to defend their currency. Despite the resultant drawdown, India's foreign exchange reserves remain the fourth largest globally.
Audi India opens Audi Approved: plus facility in Indore New Delhi: Audi, the , today inaugurated a new , Audi Approved: plus in Indore, Madhya Pradesh. The facility is located at MR 11 Kataria Complex, Ring Road, Near Metro Wholesale, Dewas Naka, Indore-452010, Madhya Pradesh. This is ’s 20 th Audi Approved: plus facility in India, the company said. Balbir Singh Dhillon, Head of Audi India, said, “We are very happy with the opening of our 20 th Audi Approved: plus facility in India. Indore is an important market for our brand and has great growth potential. With Audi Approved: plus Indore we will address the growing demand for our in the pre-owned luxury car market and surrounding regions. Audi Approved: plus has grown by 73% in the first nine months of 2022 and we are confident of continued growth in the coming months.” Every displayed and sold at Audi Approved: plus showrooms undergo mechanical, bodywork, interior and electrical inspections at 300+ multi-point checks, thorough multiple-level quality checks, and a full on-road test to ensure customers’ peace of mind while buying the car. Under the Audi Approved: plus programme, Audi India offers 24x7 Roadside Assistance and complete vehicle history before purchase. Additionally, customers can also avail easy through the programme, the company said in a media release. Gaurav Anand, Dealer Principal, Audi Indore, said, “We are delighted to inaugurate our new Audi Approved: plus facility in Indore – a showroom that will provide the best retail experience. The demand for pre-owned has been rising in Indore and neighbouring regions, and we anticipate an exciting response from customers. We are enthralled and look forward to serving our customers.” Also Read:
RBI sees India global bond inclusion this year The expects the inclusion of Indian sovereign bonds in global bond indices this year. "Going forward, a strong pipeline for in 2022 and the likely inclusion of sovereign bonds in global bond indices may support inflows," said in its State of the Economy report. A flash flood It said the trajectory of the new variant in South Africa has boosted hopes that there will be more of a flash flood than a wave. The report said that while India encountered headwinds from a rapid surge in infections due to Omicron, aggregate demand conditions are resilient amid upbeat consumer and business confidence and an uptick in bank credit. It also pointed out that manufacturing and several categories continue to remain in expansion mode. In contrast, the global outlook remains clouded by considerable uncertainty. "Inflation continues to mount across geographies amid disruptions in production, supply chains and transportation. Consequently, the divergence between monetary policy stances across jurisdictions has widened," the report said. Despite inflationary pressures, it made a case for policies favouring growth. "There are indications that supply chain disruptions and shipping costs are slowly easing, although the waning of may take longer. This provides a window of opportunity to focus all energies on accelerating and broadening the global recovery". Primary market exuberance The RBI bulletin noted that the primary market for equities was exuberant with 12 companies being listed in December, the highest for any month in 2021. These companies raised Rs 15553 crore during the month. In 2021, 64 companies mobilised Rs 1.2 lakh crore through IPOs, up sharply from 14 companies that raised Rs 26,312 crore the previous year. Most of the companies that raised funds in 2021 were new-age platform companies that operated in areas such as food delivery, insurance, auto and financial services, the paper noted. Separately, the RBI paper said foreign exchange reserves stood at $632.7 billion as on January 7, which provides a cover equivalent to 13 months of imports projected for 2021-22. "A robust accretion to foreign exchange reserves in 2021-22 has, inter alia, improved the coverage of short-term debt (on residual maturity basis) to 248.2 per cent at end-September 2021 from 226.9 per cent at end-March 2021," it said. Consumer confidence The bulletin includes a study on consumer confidence. According to this, despite the low perception of the prevailing situation, respondents' expectations for the year ahead showed faith in economic recovery after the subsidence of the pandemic. This is despite the pandemic severely denting consumer confidence in India, which reached historic lows as the unfolded. "Sentiments of households across strata were influenced by the spread of infections and fatalities. There was an enduring impact on consumers' sentiments on their financial conditions as well as the general economic situation - with the
were influenced by the spread of infections and fatalities. There was an enduring impact on consumers' sentiments on their financial conditions as well as the general economic situation - with the latter increasingly driven by the former," the study said. Consumers in cities severely hit by the pandemic expressed more negative sentiments as compared to respondents in the other cities. Also Read:
From LIC agent to owner of Sonalika Tractor, India's oldest billionaire Lachhman Das Mittal , 92, is now India's oldest billionaire after the demise of Mahindra & Mahindra Ltd Chairman Emeritus on April 12 at the age of 99. The third-largest in India, the , was founded and is led by Mittal. He began his professional career as an insurance agent at , served as zonal manager until his retirement in 1990, when he launched his own business at the age of 65. In 1996, Mittal, a native of Hosiarpur, Punjab, began his own business career by starting Sonalika Group, which is today a major tractor manufacturer in the nation. Mittal's net worth is at $2.5 billion thanks to , making him India's oldest billionaire. Mittal's career is impressive since he previously related an intriguing tale about how the Maruti Udyog turned him down for a dealership. According to Mittal, he previously applied for a but was turned down. He distributes dealerships today. In 2013, he made his debut on the Forbes Billionaires list. Lachhman Das has now retired from running the business, and his sons are now in charge. Amrit Sagar, the company's eldest son, serves as vice-chairman, while Deepak, the youngest son, serves as managing director. The second son of Mittal is a prominent physician in the US, and Usha Sangawan is the first female managing director of LIC.
CPPIB-led InvIT buys Brookfield's India road portfolio for Rs 9300 crore (CPPI Investments), the largest pension money manager in Canada has agreed to buy a portfolio of Indian road assets from Canadian asset manager in a deal valued at around Rs 9375 crore ($1.2 billion), in what could be one of the largest transactions in the country. , an infrastructure investment trust ( ) led by Canada Pension Plan Investment Board, has entered into an agreement with investment holdings of Brookfield- BIF India Holdings Pte Ltd. and Kinetic Holdings 1 Pte Ltd, on Friday to buy the entire equity shareholding of five operational road projects from Brookfield, said the press statement. Brookfield is finalising the sale of its roads portfolio in India to IndInfravit Trust, for an enterprise valuation of Rs 9,000-9,500 crore, ET first reported in April. The transaction values the equity of the five operational road assets that Brookfield owns through platform Peak Infrastructure at around Rs 6,000 crore. The business also has debt of Rs 3,000-3,200 crore debt, Et report added. Omers and German insurer Allianz are the other key shareholders of the IndInfravit Trust along with L&T Infrastructure Development Projects (L&T IDPL), which also acts as sponsor of the vehicle. The Roads Portfolio comprises three toll roads and two annuity roads, with approx. 2,400 lane kms in Andhra Pradesh, Bihar, Maharashtra and Uttar Pradesh. The Roads Portfolio has been operational, on an average, for approximately 9 years, and has an average residual concession period of 20 years, added the statement. IndInfravit currently holds a portfolio of thirteen operational road concessions with approx. 5,000 lane kms spread across five states. This acquisition will expand the portfolio into three additional states, Andhra Pradesh, Bihar and Uttar Pradesh. “We remain a committed supporter of IndInfravit – a portfolio that encompasses significant and critical roads assets,” said Scott Lawrence, Managing Director and Head of Infrastructure, CPP Investments. “This acquisition provides growth and geographic diversity to the InvIT and will ensure the continued delivery of high-quality infrastructure to different regions across India. Increasing our interests in Indian infrastructure is part of our ongoing commitment to deliver solid long-term risk-adjusted returns to CPP contributors and beneficiaries,” said Delphine Voeltzel, Managing Director, Asia for OMERS Infrastructure. "Our investment in IndInfravit gives us an opportunity to be part of the vibrant and highly crucial infrastructure sector in India. We look forward to working jointly with our partners on the further development of the IndInfravit platform creating a high quality, well-diversified asset portfolio” said Andrew Cox, Co-Head - Infrastructure for Allianz Capital Partners. Brookfield entered the road sector in India in 2015 after buying the road assets of . It then acquired road assets from Hyderabad-based KMC Constructions. Peak
for Allianz Capital Partners. Brookfield entered the road sector in India in 2015 after buying the road assets of . It then acquired road assets from Hyderabad-based KMC Constructions. Peak handed back two projects acquired from Gammon, Andhra Expressway and Rajahmundry Expressway, to NHAI after managing them. In 2019, Brookfield had tried to sell its 150-km, Mumbai-Nashik Expressway and engaged in talks with several players such as Cube Highways and . However, a deal didn’t fructify. ET first reported on September 6 last year that Brookfield was planning to sell Peak for $1.2 billion in enterprise value. KPMG is advising Brookfield on the sale process. On Thursday, the UK based global investor Actis acquired a portfolio of six operating highway toll road projects in India from Limited (WEL), part of the Group, for an aggregate Enterprise Value of $775 mn (Rs. 6,000 crore). In April, rating agency had revised the outlook on the toll roads sector for FY2023 to Positive from Stable. The change in outlook primarily factors in the expected healthy increase in toll collections in FY2023, supported by healthy toll rate increase on the back of high inflation and improved economic activity. Toll collections are expected to increase by 17-20% during FY2023 owing to sharp rise in toll rates, traffic growth and adjustment of 3-4% revenues which were lost due to the second wave of Covid in Q1FY2022, ICRA said.
New Force Gurkha launched at a starting price of INR 16.75 lakh New Delhi: has launched its all-new 5-door and 3-door 2024 Force Gurkha at a starting price of INR 16,75,000. The ex-showroom pan India price of the 3-door variant (4-seater) is INR 16,75,000- for the 5-door (7-seater) variant (exclusive of TCS). Accessories, road tax, registration and insurance charges will be payable extra as applicable. Despatches to Gurkha dealers shall commence from this week and the test drives/deliveries to customers shall commence from mid-May. Booking for the vehicle can be done with a payment of INR 25,000 at the nearest Gurkha dealership, the company said. The new Force Gurkha is powered by a 2.6 litre turbocharged intercooled diesel engine delivering 140PS and peak torque of 320Nm over a wide band from 1400 to 2600rpm, the company said in a media release. The improved power and torque output enables it to cruise on the expressways at triple-digit figures and also enables it to easily extricate itself from tricky situations off the road better than any other vehicle in this class. Prasan Firodia, Managing Director, Force Motors, said, "The Force Gurkha is a testament to our commitment towards providing an unparalleled driving experience by combining our legacy of robust engineering and manufacturing excellence.” “India’s diverse geography offers innumerable opportunities to explore and experience, from snow-capped peaks to deserts, scenic coastlines, tropical rainforests, wildlife sanctuaries, and ancient architectural heritage sites. The Force Gurkha is a unique vehicle that is equally comfortable doing daily commutes, highway drives, and overlanding across the country,” Firodia added. Force Gurkha comes with fully locking mechanical differentials on both axles and Electronic shift-on-the-fly for effortless shifts into 4WD when the terrain gets rough. Force Gurkha retains the iconic and much loved Mercedes Gelandewagen inspired design synonymous with its rugged character and extreme potential. Maximum space, maximum comfort. The new Gurkha is the most spacious vehicle in its class offering commanding driving position, panoramic all-round visibility, and the most comfortable seating for all occupants. To keep the occupants safe is the all-metal body that is frontal crash-compliant, along with the dual airbags, ABS, and EBD, the release added.
Ola partners with Alliance Insurance Brokers to provide personal accident cover for drivers on duty New Delhi: , a leading insurance service provider, risk manager, and reinsurance broker, has joined hands with the ridesharing company, , to provide insurance security to its national network of Ola drivers. Through this initiative, Alliance Insurance Brokers is providing insurance protection to the drivers of Ola, with almost 2 lakh Ola drivers insured on a daily basis while they are on duty. In case of any unprecedented event like an accident, Ola drivers7. This facility is powered by the Alyve Health platform, a comprehensive health benefits platform that enables seamless connection to healthcare providers right from the driver app. Arvind Kumar Sharma, Associate Director, Alliance Insurance Brokers, said, "Our partnership with Ola enables us to take healthcare to the palms of lakhs of drivers, a community at high risk that is always on the move and needs such instant care. Preventive action can potentially save the drivers many days of hospital stays and enable them to earn a consistent and predictable income. There are a number of drivers who meet with accidents and other challenges on a daily basis during their duty hours. It gives me immense satisfaction to design the best risk solutions for this esteemed group. We are protecting almost two lakh drivers, on a daily basis, ensuring their end-to-end financial protection. We are soon looking at more such associations and tie-ups." Pranshu Diwan, Sr. Director – , said, "Ola has sponsored the entire premium for its drivers, and Alliance Insurance Brokers ensures smooth and seamless insurance coverage in three categories: cab rides, three-wheeler and two-wheeler rides. INR 5 lakh is provided as an insurance cover for death; INR 1000 under hospi-cash per day and INR 30,000 under OPD treatment, child education, etc., in addition to other benefits, including 24/7 doctor tele-consultation services".
Duty rebate on Scotch Whisky, EVs likely to be taken up with UK in Jan Duty concessions on and and are yet to be resolved in the proposed between India and the UK, and are likely to be taken up in the next round of talks in January, an official said on Friday. India is also considering discussing longer transition period and tax restoration for its exporters once the UK's carbon border tax on imported goods kicks in from 2027, as part of the trade pact. Yet, New Delhi remains hopeful of closing three trade pacts - with the UK, Oman and the European Free Trade Association (EFTA) - early next year, the official said. Iceland, Liechtenstein, Norway, and Switzerland comprise the EFTA. In the negotiations with the UK, the two sides have resolved most of the issues related to rules of origin and intellectual property rights chapters, the official said. The pact has 26 chapters. The UK's demand for liberalisation of norms in services sectors like banking, insurance, and legal, and India's ask for easy movement of professionals are some of the unresolved issues. "A few issues are also pending in the proposed bilateral investment treaty," the official said. India is considering tariff rate quotas to meet the UK's demand for a reduction in import duties on its EVs as part of the proposed trade deal. The UK has also sought easier value addition norms for its EVs.
Share of Russia crude in oil imports falls to 34% in August New Delhi: 's share in 's fell to 34% in August from 42% in July as state-run refiners sharply reduced imports from Russia. Supplies from Russia fell 23% month-on-month to 1.47 million barrels per day (mbd) in August, even as India's overall crude imports fell 5% to 4.35 mbd, according to energy cargo tracker Vortexa. Russia's seaborne crude exports to China, however, increased to 1.4 mbd in August from 1.3 mbd in July. Indian state refiners took 8,52,000 barrels per day of Russian oil in August, 30% less than in July while private sector refiners' intake of 617,000 barrels per day was 13% lower than in July. Imports from Russia fell due to the planned maintenance work at some refineries in India as well as a reduction in the availability of Russian supplies, analysts said. "There is no indication that Russia's crude exports will see a rebound in the near term, which means that India's imports of Russian crude will likely remain subdued," said Serena Huang, analyst at Vortexa. Russian exports are shrinking as the country is focused on slashing crude production and meeting its increased domestic fuel demand, an industry executive said. The key beneficiary of a drop in Russian supplies to India was Saudi Arabia, which exported 820,000 barrels per day to Indian refiners in August, 70% more than in July. This boosted Saudi Arabia's share in the Indian crude market to 19% in August from 11% in July. The share of other top suppliers barely changed, with Iraq at 20%, the UAE at 6% and the US at 5%. "Russian discounts to dated Brent have narrowed in recent weeks as a result of lower supplies, which has likely dampened the appetite of Indian refiners as well," Huang said. Urals, the flagship Russian grade, comprised 73% of Russian supplies imported by India in August, lower than 83% in July. The Urals had mostly traded below the G7-imposed price cap of USD 60 per barrel but has breached the cap in recent weeks. Urals is trading around USD 69 per barrel while the international benchmark Brent is around USD 88. Indian state refiners take Russian oil on a delivered-at-port basis, leaving the suppliers with transportation and insurance risks, which increase when the oil is priced above the cap.
DriveU partners with SMC Insurance to provide car insurance for its customers New Delhi: DriveU, leading car driver service and a super-app for car owners, announced on Thursday its partnership with to provide for over 650,000 DriveU customers. Through this partnership, all the new and existing customers of DriveU will be able to buy or renew their car insurance easily. The aim is to make the insurance buying process a more gratifying and a less daunting task. All users will also get a chance to choose a DriveU benefit including, DriveU Coins, that can be redeemed across services, instant discounts on their next driver booking, and a specially curated car ownership gift box, the company said in a media release. With this collaboration, DriveU, is one step closer to rewarding the entire car ownership journey with every transaction on the DriveU platform further reducing the cost of owning a car, and consolidating the needs of car owners under one roof, the release said. Ashok Shastry, co-founder and CEO, DriveU, said, ” is one of the most expensive, unrewarding annual purchase a car owner is obligated to invest in. Ultimately, it’s bittersweet, the only time one benefits is when an unfortunate incident occurs, and DriveU is here to change that with additional ‘DriveU Benefits’ by purchasing through our platform. With our deep tech integration, our users can seamlessly and quickly customise, compare, and renew motor insurance plans from all the popular insurance providers and unlike other players get rewarded immediately.” Pravin K Agarwal, Director, SMC Group of Companies, said, “DriveU is a super app for , and a platform which helps you to comfortably reach the desired destination and get a secured, seamless driving experience with trained drivers. So, in case of any issues during the ride, one does not have to worry as the vehicle is insured and quick assistance is provided by the company. Through this partnership, all types of insurance policies from different insurance companies will be available on a single platform designed for car owners. Hence with just a few clicks, users can now have experts smoothen their insurance purchase process.” DriveU has revolutionised the way individuals hire drivers for their own cars and how businesses maintain a stable, reliable supply chain of professional drivers. In addition to their new motor insurance vertical and on-demand drivers, DriveU also offers doorstep detailing, servicing by trusted integrated brands, FASTag recharge, and annual roadside assistance plans. Also Read:
Dealer-point vehicle registration, digital RCs yet to be rolled out in Karnataka BENGALURU: Two plans of the transport department — to implement and introduce digital (RCs) to reduce corruption, delays and red tape — are yet to take off. Around 15 lakh vehicles are being registered in every year, of which some 90% are non-transport vehicles. States like Maharashtra, Kerala, Gujarat, Uttarakhand, Punjab, Haryana, West Bengal, Uttar Pradesh, Delhi, Madhya Pradesh, Rajasthan, Odisha, Telangana and Assam have already rolled out dealer-point registration (DPR). Under DPR, registration of non-transport vehicles with fully built body from manufacturers can be done at the dealer level itself. This is expected to reduce time taken for registration of vehicles, corruption, paperwork and workload. RTOs across the state are facing severe staff shortage. As part of DPR, dealers will upload all documents (relevant forms, insurance, etc.) on the Parivahan portal once a customer selects a new vehicle and makes payment at the showroom. A receipt with registration number will be generated online once tax is paid and a high security registration plate (HSRP) will be fixed in an hour. This means a customer who visits an automobile showroom could return home with the vehicle the same day. “The Centre is now insisting on undertaking various reforms like e-payment of taxes, dealer-point registration, online application for registration, contactless issuance of learner’s licence, etc. There are complaints of a nexus between some lower-level officials and middlemen,” said a senior official. He said vehicle data and sale amount details are obtained from the portal so the dealer can’t edit them. Motor vehicle tax is also calculated based on the sale amount. Officials said Motor Vehicles Act, 2019 empowers the state government to delegate authority to any other individual/agency to register new vehicles (with fully built body). The department also mandates dealers to provide a bank guarantee of Rs 20 lakh with respect to four-wheelers and Rs 5 lakh for two-wheelers before they are appointed as registering authority. The transport department’s move to stop issuing smart cards for RCs and DLs and to provide them only in digital format also remains on paper. The Centre had allowed motorists across the country to use mParivahan or DigiLocker on mobile phones from October 1, 2020 instead of carrying physical documents while travelling. ‘Paperless, green move’ “It is paperless as well as environment friendly. In the present digital era, most people carry only gadgets so it is better to do away with the age-old practice of carrying RCs physically,” said an official. There have been several complaints on delay in getting new RCs or DLs due to shortage of smart cards. The plan was to allow motorists to use digitally signed certificates like RCs and DLs through DigiLocker or let them show printouts if any traffic cop or transport official asks for them. They can also laminate the
allow motorists to use digitally signed certificates like RCs and DLs through DigiLocker or let them show printouts if any traffic cop or transport official asks for them. They can also laminate the digital document on the lines of Aadhaar. In 2009, the department switched from paper-based licences and RCs to smart cards. However, neither the department nor traffic police had card readers so there was no way to check their authenticity. Also Read:
India may not extend EV concessions to Chinese firms: Report India may not extend electric vehicle concessions to Chinese EV companies like owing to national security concerns, according to a report of Moneycontrol. “The concessional import duty policy is linked to actual investments in that sense. BYD does not come into the picture because it will not be able to provide FDI commitment that this EV policy needs. Because FDI will require clearances, BYD is, in the sense, out. Meaning, if it has to come, it will have to pay the existing duty of 70 and 100%,” an official told the website. Indian government approved the new EV policy in March this year, under which import duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of USD 500 million. The companies that would set up manufacturing facilities for EV passenger cars will be allowed to import a limited number of cars at lower customs/import duty of 15% on vehicles costing USD 35,000 and above for five years from the date of issuance of the approval letter by the government. At present, cars imported as completely built units attract customs duty ranging from 70-100%, depending on the engine size and cost, insurance and freight value less or above USD 40,000. Earlier, a report of think tank Global Trade Research Initiative (GTRI) warned that the new EV policy may lead to large-scale entry of Chinese auto firms in the local market. The GTRI report said that in the "next few years, every third electric vehicle and many passenger and commercial vehicles on India roads could be those made by Chinese firms in India alone or through Joint Venture with Indian firms". Last month, a senior govt official told a TV channel that under the new EV policy, there are no restrictions on the import of from any country, including China.
Bike owner must compensate for pillion rider’s death Pointing out that a is a and not a third party, the high court reversed an order passed by Motor Accident Claims Tribunal at Kunigal in Tumakuru district. In his order, Justice CM Joshi directed Nisammuddin, owner of the offending vehicle (a Hero Honda bike), to pay the amount awarded by the tribunal. On March 24, 2011, Siddiqullah Khan, who is into scrap business, was riding pillion on Nisammuddin’s bike from Kunigal. Due to the rider’s rash and negligent driving, the Hero Honda bike fell into a ditch. A grievously injured Khan was taken to Bengaluru and he succumbed to injuries on March 26, 2011. His family members, who had spent INR 1.2 lakh towards his treatment and other expenses, moved the tribunal seeking INR 15 lakh relief. On August 24, 2017, the tribunal awarded INR 7,27,114 with 6% interest as compensation. National Insurance Company Limited was directed to pay the compensation. Both the insurer and Khan’s family members challenged the order. The insurer argued that it was an ‘act-only policy’, and therefore, the pillion rider, who was a gratuitous passenger on the two-wheeler, was not covered and no additional premium was collected to cover him. Khan’s family members claimed the tribunal hadn’t properly assessed their claim petition. Justice CM Joshi noted that the accident had occurred owing to Nisammuddin’s negligence and no other vehicle was involved. “It is an ‘act-only policy’; the cover is for the owner-cum-driver and limited to INR 1 lakh. Nowhere is it mentioned the pillion rider or the occupant is also covered under the policy. However, it is mentioned the seating capacity of the vehicle is ‘1 + 1’, on the basis of which the tribunal had fastened the liability on the insurance company,” the judge pointed out.
Insurance claims independent of human errors: Industry players New Delhi: The death of former Tata group chairman in a road accident has ignited a debate over the eligibility of insurance claims in accident cases but industry players say the very purpose of buying insurance is to hedge against risk, whether due to human error or otherwise. Human error or violation of rules is unlikely to vitiate an and will continue to be honoured albeit in exceptional cases the compensation amount may be lowered. Insurance documents per se do not list out acts, such as not wearing a seat belt, that could impact payment of compensation in case of death of occupants other than the driver, they said. However, most policies mention "any accidental loss or damage suffered whilst the insured or any person driving the vehicle with the knowledge and consent of the insured is under the influence of intoxicating liquor or drugs", the compensation amount may be limited and would vary from car make and the kind of policy taken. It is to be noted that the former Tata Sons Chairman and a friend of his died in a tragic road accident on Sunday afternoon while driving back to Mumbai from Ahmedabad along with two other persons, who have sustained injuries. As per the preliminary investigations by the state police, the deceased were not wearing seat belts and termed over-speeding and an "error of judgement" by the driver to have led to the accident. "Majority of the accidents happen because of human negligence. We are here because such human errors happen, if such human errors didn't happen, then very less number of accidents will happen. One buys a policy which actually covers hishiding the truth, fraudulent claims, delay in intimation, policy lapse, car modification without informing the insurer, among others. However, negligence such as driving a car in a flooded area despite the manufacturer's manual stating the car will break down if driven in such condition, an insurer has a full right to reject the claim. Even violation of conditions, such as driving a personal car for commercial purposes, can also lead to the rejection of the claim. Also Read:
Opinion: How telematics will impact future development of automotive industry in India By Vikas Marwah is gaining strong traction in the . In the coming years there will be an of 30% CAGR till FY2030. The Union government focus on favourable policies and the shift in the regulatory framework will act as potential growth drivers. The Indian OEMs are trying to localize and this will further enhance the market size. The automotive Industry is going through a transition, and its future will depend on the telematics solutions. Penetration of their applications will be significantly higher in the upcoming electric and connected vehicles. India saw a rapid shift in the regulatory framework by adapting new norms which are equivalent EU standards. The implementation of new policies on safety also has to be supported by telematics applications in the , and . Telematics ecosystem in India is at a nascent stage. To be a “Full System Supplier” it is important to develop local capabilities of design & development, software including cyber security features and of manufacturing footprint. The has taken cognizance of the importance of developing local capabilities. The PLI scheme is giving an opportunity for the Indian suppliers to be leaders in this space and to represent India at the global level. The PLI scheme will enable the Indian manufacturers to supply telematics solutions at the global level. New business avenues will open up with the extensive use of telematics applications in the . New ways are getting introduced to enhance business efficiency. The data collected in telematics will change the future of insurance and accurately reflect the assets insured and provide additional layers of protection. Telematics technology for automakers will be quickly converted into a huge global market. In essence, telematics enables transportation companies to monitor their assets by using GP. Onboard diagnostics will help them record data, such as driving habits, geographic footprint, abnormalities resulting in collisions and so on. Companies like Lumax Auto Technologies which has government-approved AIS140 and other telematics devices are at the forefront of the development of these telematics and connected vehicle devices amplifying growing technological prowess of the Indian auto component sector. (Disclaimer: Vikas Marwah is CEO of the Lumax Group. Views are personal.)
SBI vs ICICI Bank vs HDFC Bank vs Bank of Baroda: Top banks’ car loan interest rates For many owning a car is no longer a luxury, rather it has become a necessity. And buying a car would probably be the second most expensive purchase a person will make in their life right after buying a house. Many funds this by taking a loan. Among the financial institutions that offer car, loans are banks. Like with any other loan, a key factor to consider while taking a is the interest rate offered on the loan Those looking to take a car loan must shop around for the lender who is ready to give you the right amount of loan at the lowest interest rate. Here are the car loan of State Bank of India (SBI), ICICI Bank, HDFC Bank and Bank of Baroda. SBI car loan According to the SBI website, to avail an SBI Car Loan, you should be an individual aged 21 to 67 years. For regular employees, the maximum amount sanctioned will be 48 times of the Net Monthly Income. Minimum Net Annual Income of applicant or co-applicant if any, together with should be a minimum of Rs 3,00,000, as per SBI website. For professionals, self-employed and businessmen the maximum amount sanctioned will be 4 times Net Profit or Gross Taxable income as per ITR after adding back depreciation and repayment of all existing loans. For persons engaged in agriculture and allied activities, the maximum amount will be 3 times of Net Annual Income. ICICI Bank New car loans with a fixed interest rate are available from ICICI Bank. The interest rate on a car loan with a fixed interest rate will remain constant during the loan's term. The interest rate varies between 7.50-9% depending on tenure and other factors. Interest rates on new cars are determined by factors such as automobile segment, CIBIL score, customer relationship, loan tenure, and so on, according to ICICI bank website. Bank of Baroda Bank of Baroda provides financing of up to 90%, according to its website. The interest rate varies between 7% and 9.75%. Customers who do not purchase credit insurance coverage will be charged a risk premium of 0.05 percent, as per current norms. HDFC Bank Within six months of receiving the car loan, no foreclosure is permitted for HDFC Bank Car loan customers. According to the HDFC Bank website, preclosures within one year of the 7th EMI would be charged 6% of the Principal Outstanding. Preclosure within 13-24 months of the first EMI, 5% of the principal outstanding and 3% of outstanding principal for preclosures after 24 months from the first EMI. Eligibility Your car loan eligibility is determined by your current income, the value of thecar, and an assessment of your repayment capacity based on your current expenses. The loan amount and interest rate may vary from bank to bank. In most situations, financial institutions like banks lend up to 80% of the car's on-road price. Some lenders claim to lend up to 100% of the car's cost. EMI payments When availing car loan, it is critical that you select equated monthly
like banks lend up to 80% of the car's on-road price. Some lenders claim to lend up to 100% of the car's cost. EMI payments When availing car loan, it is critical that you select equated monthly instalments (EMIs) that are appropriate for your repayment ability. Do not choose a lower EMI and a longer loan term simply because you have the option; do so only if it is something you can afford. This is because a lower EMI and a longer loan term will result in unnecessarily higher interest outgo. Regardless of the amount borrowed, make sure your EMIs are manageable and do not put a strain on your resources. On the other hand, you should avoid opting for higher EMIs at the cost of sacrificing monthly contributions towards crucial financial goals. Regardless of the amount borrowed, you must first ensure that your EMIs are easily payable and not a strain on your finances. Tenure Loan providers typically provide new car loans with terms ranging from one to seven years. You have the option of selecting the loan term that best suits your needs. Processing Fee When applying for a car loan, many banks impose a processing fee. Before choosing a loan, make sure to evaluate the processing fees. Some banks offer to waive processing costs or even lower their present rates over the festive season. Also Read:
India wants Russia to discount its oil to less than USD 70 a barrel is trying to get deeper discounts on Russian oil to compensate for the risk of dealing with the OPEC+ producer as other buyers turn away, according to people with knowledge of the matter. The South Asian nation is seeking Russian cargoes at less than USD 70 a barrel on a delivered basis to compensate for additional hurdles such as securing financing for purchases in high level talks between the two countries, said the people, asking not to be identified as discussions are confidential. Global benchmark Brent is currently trading near USD 105 a barrel. Both state and private refiners in the world’s third-biggest oil importer have bought more than 40 million barrels of Russian crude since the invasion of Ukraine in late February, the people said. That’s 20% more than Russia-to-India flows for the whole of 2021, according to Bloomberg calculations based on trade ministry data. India -- which imports more than 85% of its oil -- is among the few remaining buyers of n crude, a key source of revenue for Vladimir Putin’s regime. Evaporating European demand is putting severe pressure on Russia’s oil industry, with the government forecasting output could drop by as much as 17% this year. Flows of Russian oil to India aren’t sanctioned, but tightening international restrictions in areas such as marine insurance and pressure on New Delhi from the U.S. are making the trade more difficult. Prime Minister Narendra Modi has so far resisted Western encouragement to scale back its relationship with Moscow because of the opportunity to get heavily discounted oil. India is also highly dependent on imports of Russian weapons. India’s state-run refiners can take about 15 million barrels a month -- about a tenth of overall imports -- if Russia agrees to the price demands and delivers the oil to India, the people said. Government-affiliated processors will stand to benefit from any potential agreement, they said. Private refiners such as Reliance Industries and Nayara Energy typically procure their feedstock individually. The Indian government didn’t immediately respond to an email seeking comment. Moscow is looking at ways to keep supplies flowing to India -- both from the west via the Baltic Sea and on routes from the Russian Far East that become more accessible during the summer, the people said. The two countries have even been exploring re-routing some crude through Vladivostok in the Far East. While the sea trip from there to India would be quicker there would likely be major costs and logistical hurdles with this. Also Read:
India's new EV policy to help launch many eco-friendly premium-quality SUVs: VinFast Auto Vietnam's electric car maker on Monday said 's new policy that provides for companies setting up units in the country with a minimum investment of USD 500 million will allow it to introduce a wide variety of eco-friendly premium-quality at inclusive prices. The 's new electric vehicle (EV) scheme aims to drive large investments in manufacturing, create competencies and upskilling, set up a robust supply chain and offer consumers world-class, zero-tailpipe emission vehicles, CEO Pham Sanh Chau said in a statement. "This forward-looking policy helps us introduce a wide variety of smart, green, premium-quality SUVs, at inclusive prices, along with outstanding aftersales policies," he added. Chau further said, "With a long-term growth commitment in India, we have pledged an expenditure of USD 500 million, which includes the electric vehicle manufacturing facility in Tamil Nadu." In February this year, -- a major competitor to American EV had stated that it would invest INR 4,000 crore over the next five years in the initial phase, which will generate 3,500 jobs in the Tuticorin region. The plant will have a capacity to produce 1.50 lakh vehicles once it becomes operational. Ola Electric Founder and CEO Bhavish Aggarwal in a post on X, also lauded the new , saying it is a win for the Make in India initiative. "Great to see the Indian government's progressive decision to lower import duties on EVs for companies investing in India. This is a win for the #MakeInIndia initiative & strengthens our manufacturing ecosystem, propelling India towards a greener future. India will become the global EV hub of manufacturing and technology!," he wrote. Commenting on the policy, Society of Indian Automobile Manufacturers (Siam) President Vinod Aggarwal said a holistic view has been taken by the government of India in the best interests of the country. "The Indian automobile industry and members of Siam will adapt to this new policy and remain committed to bring new, innovative, and aspirational products and work towards developing a robust EV ecosystem in the country," he added. Last week, the government approved an EV policy, under which import duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of USD 500 million, a move aimed at attracting major global players like US-based Tesla. The companies that would set up manufacturing facilities for EV passenger cars will be allowed to import a limited number of cars at lower customs/import duty of 15 per cent on vehicles costing USD 35,000 and above for five years from the date of issuance of the approval letter by the government. At present, cars imported as completely built units attract customs duty ranging from 70-100 per cent, depending on the engine size and cost, insurance and freight value less or above USD 40,000. The policy seeks to promote India as a
built units attract customs duty ranging from 70-100 per cent, depending on the engine size and cost, insurance and freight value less or above USD 40,000. The policy seeks to promote India as a manufacturing destination for EVs and attract investment from reputed global EV manufacturers.
Adoption of Electric Vehicles in India: The way forward New Delhi: India has been working towards reducing the carbon footprint and (GHG) emissions in line with its commitment to achieve net-zero emissions by 2070, which was announced at the 26th United Nations Climate Change Conference of the Parties (COP26). India is one of the many countries which committed to the (ZEV) Pledge by 2040. Although there are multiple pathways to achieve these commitments, the immediate solution to contribute to India’s net-zero targets is the uptake of (EV). There are, however, multiple challenges like high adoption cost, lack of charging infrastructure, as also negative consumer perceptions, that impede . The government and the industry are trying to accelerate EV adoption by reducing cost of acquisition, creating a network of charging infrastructure, improving the distance which can be covered between recharges, strengthening the overall electric mobility ecosystem etc. Among all these challenges, creating awareness and sensitizing all the relevant stakeholders is critical to make them understand their responsibility as a citizen, organization, government agency, OEMs towards contributing to the EV adoption. The level of sensitization should bring a feeling of pride and belonging, as catalyzing the EV adoption contributes to the overall economy and helps the nation by contributing to the commitments for curbing GHG emission. Building a cultural movement of Electric Vehicle enthusiasts in India In line with the above, the government recently announced a number of initiatives to build awareness among the EV ecosystem actors. Initiatives like ‘Go Electric’ for creating awareness on the benefits of EVs and EV charging infrastructure have been launched to boost EV adoption. Another campaign is ‘Shoonya’, aimed to promote the adoption of zero emission electric vehicles for last mile delivery. In order to create an integrated platform for EV ecosystem actors, the government has also launched the ‘e-Amrit’ portal on EVs, which is a one-stop shop for all the information related to EVs to encourage the consumers to consider well-informed shift towards electric. OEMs have also been supplementing the integrated platform for encouraging positive consumer perceptions. The paradigm shift in end consumer’s mobility perspective The EV consumers across the nation may form a strong community to exchange their experience and knowledge in EV adoption with a sense of contribution to India’s e-mobility ecosystem. There should be also a sense of exclusivity in terms of how these electric vehicles stand out vis-à-vis gas-guzzling vehicles. Some countries like France and USA are also implementing preferential parking and lanes for the electric vehicles to further this exclusivity narrative. There are mentions of Low Emission Zones in many policies, which are significant to discourage the prolonged use of ICE (Internal Combustion Engine) vehicles and encourage the adoption of EVs. Indian
There are mentions of Low Emission Zones in many policies, which are significant to discourage the prolonged use of ICE (Internal Combustion Engine) vehicles and encourage the adoption of EVs. Indian campaigns like ‘Switch Delhi’ are likely to play a vital role for sensitization of the general public towards EVs. The USA has a National Drive Electric Week which facilitates hundreds of EV test drive events across the nation to boost public sensitization on EV. China has released a along with ban on the ICE version of two and three wheelers in a few cities. A vision to bridge the existing gaps in electric mobility There is a necessity of long-term strategies to fulfill the international commitments, coupled with strong implementation roadmaps for the EV policies, both at the national and the sub-national levels. There could be added advantages to purchase of EVs like tax rebates as an incentive towards contribution of GHG emission reduction, preference in parking and lanes, lower toll charges and zero surcharge on vehicle insurance. There could be other benefits of owning EVs which could be introduced by OEMs like discounted charging infrastructure costs, roadside assistance, etc. A carbon credit system already exists in India which enables ownership of the equivalent of one metric ton of carbon dioxide that can be traded, sold or retired. Carbon, like any other commodity, has begun to be traded on India's Multi Commodity Exchange. Although this credit system exists for large companies in India, the same is not existent at an individual level anywhere in the globe. There are GHG trackers for individuals now available with the air-tickets that quantify the carbon footprint of the journey before the ticket is booked. Using IoT and digital platforms, the credit system can be automated. Greater score can result in greater incentives for the consumer. GHG emissions tracking can be enabled for transit systems on the ground and each person’s GHG emissions could be tracked through a unified carbon credit system which could be implemented for every consumer and as in case of a credit rating, benefits linked to a higher carbon credit score could be provided to the customers which can enhance the EV adoption rate and also help the general public to participate in the government’s plans to enable the EV transition. Also Read:
US employment boom leaves factory workers behind Dan Ariens laid off workers, cut shifts, and halted nearly all hiring last summer after sales slumped at his company, best known for making bright orange snow blowers and lawnmowers sold around the world. Headcount fell 20% to 1,600 people, and he doesn't see business improving until 2025. The experience of the , a fourth-generation family-owned firm in Brillion, Wisconsin, shows the stark contrast between U.S. factory employment - essentially flat-lining for more than a year - and the four-year boom in the wider job market. President , headlined by legislation passed in 2022 that sparked a surge of factory construction, is aimed at boosting semiconductors, electric vehicles and green technologies, as well as other sectors. As the presidential campaign shifts into higher gear ahead of November's election, Biden is touring factories to tout his accomplishments, especially to voters in battleground states. Even as construction is booming and some segments of heavy industry continue to hum, such as those that supply goods for government-funded infrastructure projects, the larger outlook for jobs in manufacturing is weak. Economists mostly attribute that to a combination of high interest rates, a slowing economy, and the end of the COVID-19 demand surge for many kinds of manufactured goods. The contends it's too soon to see the full fruits of its efforts. It takes about six to eight quarters for manufacturing investments to translate into factory jobs, a member of the White House Council of Economic Advisors told Reuters in an interview. And as the Federal Reserve moves to cut interest rates, which is expected later this year, more jobs will follow. "If you look in different pockets of the country - in North Carolina or Georgia - companies are already hiring before they're breaking ground," said Elisabeth Reynolds, a Massachusetts Institute of Technology manufacturing and economic development researcher, who previously served on Biden's National Economic Council. "That's a sign of things to come." For now, Deere & Co, Whirlpool Corp, 3M Co and other large producers have announced layoffs, though for the most part the reductions have been targeted rather than the recent mass cutbacks in technology. Many factories have opted to curb or eliminate hiring. Kondex Corp., a 280-employee producer of blades used mostly on farm machinery, not long ago was paying three times its normal pay rate to bring in workers from as far away as Georgia, putting them up in hotels near its Lomira, Wisconsin, plant. That's long over. Kondex's President Keith Johnson said he expects attrition to cut headcount by about 5% this year without layoffs. COMPOUNDED IMPACT The impact of hiring freezes and targeted cuts is compounded when they occur at multiple locations in rural areas and small towns. Deere last month said it would cut 150 workers at its sprawling campus in Ankeny, Iowa - a relatively small hit in a factory that
when they occur at multiple locations in rural areas and small towns. Deere last month said it would cut 150 workers at its sprawling campus in Ankeny, Iowa - a relatively small hit in a factory that employs about 1,700 people. Just days later Tyson Foods Inc said it would close a nearby pork-packing plant, leaving 1,200 workers jobless. Manufacturing's share of U.S. employment accounted for roughly a third of all jobs after World War Two. It has been in steady decline for decades as the economy re-oriented around services and as efficiency improvements and automation meant fewer bodies were needed on production lines. More recently, U.S. manufacturers faced increased competition from China and other cheaper sources of production. The erosion in factory jobs had leveled off in the run-up to the COVID-19 pandemic but resumed in late 2022 after the binge in goods consumption faded. Since late 2022, factories have accounted on average for just over 2,000 of the nearly 250,000 jobs of all types added monthly. In February, factory work fell to a record low 8.2% of U.S. employment, a 13.8 point drop from the 1979 peak of 22%. Data from the Institute for Supply Management this week showed manufacturing employment contracted for a sixth straight month in March, an unusually long run outside of a recession. To be sure, manufacturing jobs and output can grow with the aid of new technologies while also becoming a smaller share of the total economy - because other parts of the economy have grown even faster. For Jason Andringa, the chief executive of Vermeer, a Pella, Iowa, machinery maker with 4,500 employees which is still hiring, the job market comes as a relief. "We can be more selective now," he said. JOBS ON THE HORIZON Scott Paul, president of the Alliance for American Manufacturing, a group that promotes domestic producers, said the boom in factory construction is creating jobs for builders and those producing materials they need, including cement and steel. "The actual factory jobs that will come from all of this are still down the road," he said, "A lot of it will be in 2025 and out." Paul said the job picture could be worse. After the extreme labor shortages during the pandemic, many employers have been hesitant to shed workers. "There's a different philosophy in the sector compared to what they did years ago," he said. Ariens Company, the lawnmower maker, is an example. While shrinking its headcount, for three months last year the company required workers to take one week off for every week they worked. The company's CEO said this helped avoid further layoffs. Workers earned roughly the same as they would have gotten from unemployment insurance during this time and kept their health insurance. Office workers and those in distribution jobs continued working full time. As a privately owned business, Ariens Company doesn't face the same pressures to cut costs to get through a slump. The CEO acknowledged these efforts hurt profits. Then there's the
working full time. As a privately owned business, Ariens Company doesn't face the same pressures to cut costs to get through a slump. The CEO acknowledged these efforts hurt profits. Then there's the weather. Ariens said two winters of light snow in the Eastern U.S. and summer droughts added to the sales slump. "We're different in that weather affects as much, if not more than the economy," he said.
Musk shares update on Tesla launch in India, says facing challenges Tesla CEO on Thursday informed that the EV-maker is facing a "lot of challenges" for its car launch in India. "Still working through a lot of challenges with the government," Musk tweeted. Musk was replying to a Twitter user, who asked: "Yo @elonmusk any further update as to when Tesla's will launch in India? They're pretty awesome and deserve to be in every corner of the world!" Tesla wants to begin selling imported cars in India this year but says taxes in the country are among the highest in the world. With a $39,990 global price tag, Tesla Model 3 may remain as an affordable model in the US but with import duties, it would become unaffordable in the Indian market with an expected price tag of around Rs 60 lakh. Currently, India levies 100 per cent tax on the imported cars of price more than $40,000 (Rs 30 lakh) inclusive of insurance and shipping expenses, and cars less than $40,000 are subject to 60 per cent import tax. The government may consider lowering import duty along with offering other sops to Tesla but for that, the EV major would have to invest in setting up a manufacturing facility in the country. Earlier, Union Minister for Road Transport and Highways, Nitin Gadkari, informed that Tesla car would cost about Rs 35 lakh in India. Also Read:
Russia is China's top crude supplier for Jan-Feb; volumes up 23.8% yoy Russia overtook Saudi Arabia to be China's top oil supplier in the first two months of 2023, Chinese government data showed on Monday, as buyers snapped up sanctioned at steep discounts. Arrivals from Russia totalled 15.68 million tonnes in January-February, or 1.94 million barrels per day (bpd), up 23.8% from 1.57 million bpd in the corresponding 2022 period, according to data from the General Administration of Customs. Russia was China's second-largest last year, shipping 86.2 million tonnes. Imports of Saudi crude totalled 13.92 million tonnes in the two-month period, equivalent to 1.72 million bpd, down from 1.81 million bpd a year earlier. Saudi Arabia was China's top supplier in 2022, selling 87.49 million tonnes of crude during the year, equivalent to 1.75 million bpd. Western sanctions and a price cap on seaborne Russian crude following Moscow's invasion of Ukraine have limited the buyer pool for Russian supply, leading it to trade at deep discounts to international benchmarks. Independent Chinese refiners, many of them based in Shandong province, have been among the main beneficiaries of this shift in pricing power. February-arriving Russian ESPO crude at Shandong ports was bought in January at a discount of about $8 relative to the ICE Brent benchmark, though the pricing advantage has been somewhat eroded by the entry of private Indian refiners into the ESPO market. However, with domestic fuel demand rising following the lifting of COVID-19 restrictions, state-owned and resumed their purchases of grade cargoes in February after a brief pause in late 2022, just before the embargo on Russian oil started. Chinese refiners use intermediary traders to handle shipping and insurance of Russian crude to avoid violating Western sanctions. Customs data also showed that imports from Malaysia were 0.65 million bpd over the period, up 144.2% from the same period last year. Malaysia is often used as an intermediary point for sanctioned cargoes from Iran and Venezuela.
Reserve Bank has taken steps to promote rupee as preferred currency for global trade: FM Nirmala Sitharaman Finance Minister on Monday said the ( ) has taken steps to promote rupee as the preferred currency for global trade in order to promote exports. Last month, RBI asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency. "RBI has put in place the arrangement for invoicing, payment, and settlement of exports/imports in INR in order to promote growth of global trade with emphasis on exports from and to support the increasing interest of global trading community in INR," she said in a written reply to the . According to the minister, the central bank has put in place the arrangement in order to promote growth of global trade by reducing the dependence on hard currency, with emphasis on exports from India and to support the increasing interest of global trading community in INR. She also noted that an increase in exports may help reduce the . The framework allowing invoicing and payments for international trade in INR is applicable for any partner country seeking to undertake trade with India in INR in terms of RBI circular. As per the RBI circular, the approval process is that for opening of Special INR Vostro accounts, banks of partner countries may approach Authorised Dealer (AD) banks in India which may seek approval from RBI with details of the arrangement. In another reply, Sitharaman said the Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a one-year personal accident insurance scheme, renewable from year to year and is available on pan-India basis to bank or post office account holders in the age group 18 to 70 years who give their consent to join and enable auto-debit. The scheme offers coverage for Rs 2 lakh in case of accidental death or total permanent disability and Rs 1 lakh for partial permanent disability due to an accident, she said. The minister said the Jyoti Bima Yojana (PMJJBY) is a one-year life insurance scheme, renewable from year to year and is available on pan India basis to bank or post office account holders in the age group 18 to 50 years who give their consent to join and enable auto-debit. The scheme offers coverage for Rs 2 lakh in case of death due to any reason.
Global Road Safety Week: How technology and regulations serve as key pillars for safer road mobility New Delhi: Unfortunately, the number of road deaths in India is still the highest in the world. While the efforts have to be stepped up by all the stakeholders, the two key pillars for are and regulations. Prashant Banerjee, Executive Director, said that the industry body is not only prioritizing vehicle safety in the country, but spreading awareness and discipline on road safety as a curriculum for young minds in schools as well. He was speaking at the ETAuto’s webinar titled ‘Towards Safer Mobility -- Technologies and Regulations' on the occasion of the 7th . Stressing on the need for active and passive safety systems in vehicles, AV Manniker, Head Consultant, , talked about the implementations of the new regulatory standards in the country. He noted that Bharat NCAP is working on a four-point strategy. First, to prevent accidents with active safety technologies. Second, using a driver assistance system to assist the driver to avoid that accident. Third, passive safety measures to mitigate the injuries. Fourth, use of infrastructure and vehicles for emergency evacuation to be done, and e-call systems to be equipped. Bharat NCAP will recommend star rating for ‘popular vehicles’ with sales over 30,000 units in the country. There will be a need for mandatory rating for the base variant and optional rating for the additional variant. Pedestrian safety, seat belt reminders will be required to be adhered by even single star rated products. Some of the new initiatives by the Ministry include three point seatbelt for rear seat and the upcoming six airbag regulation to be mandated from Oct 1, 2023. Another regulation in the pipeline is the rear crash for multi-fuel vehicles and the child seat ISOFIX which will have to comply with regulation 182 which is in line with 145. Further, optimisation of the restraint system, full frontal collision under AIS 201 is under discussion. The government is working on enhancing the scope of offset frontal crash AIS 98 for up to 3.5 tonne CV and enhancing scope of side impact crash tests AIS 99, so the exemption granted for high-end vehicles will go away. “Overall there is a shift from passive safety to active safety. Other ongoing discussions are about the ABS for other than M1 category, AIS 184 driver drowsiness warning, blind spot Information System, the moving object information system, lane departure warning, cyber security, software update, automated lane keeping systems, event data recorder, automatically commanded steering control, all these standards are on the anvil and under high priority,” he said. Manniker added that the intervention of six airbags is a welcome move, provided all the passengers follow the prerequisite culture of wearing seat belts. "Even though there may be teething problems, supply chain issues and it may be challenging for small cars, it is not insurmountable. The change may not be as
culture of wearing seat belts. "Even though there may be teething problems, supply chain issues and it may be challenging for small cars, it is not insurmountable. The change may not be as smooth, but over the years it will prove to be a substantial move. For such changes, collaborative work is required. MAGIC will happen when everyone comes together- Media, Agencies, Government, Industry, Consumer." Technology as a driver of road safety Girkumar Kumaresh, Principal Advisor, Road Safety, Future Mobility & Expert Accident Research, Bosch India, noted that India loses 150,000 people every day and almost USD 3200 billion of the GDP every year including towards the loss of person, infrastructure, goods, insurance, medical, legal cost etc. The loss per accident per vehicle category per injury category turns out to be around USD 150,000 in case of a fatal accident and USD 41,000 if the accident is serious. In case of a minor injury, it amounts to USD 24,000 and in case of no injury it could be a little bit higher. As the technology is playing a key role in vehicle manufacturing, so is its need for road safety. Alejandro Furas, Secretary General, stressed on the need for the popular cars which are more economical as the first choice of a new car buyer to be equipped with safety features first. “With the upcoming changes in regulation, Maruti Suzuki will also be able to lead the market not just by sales, but also by offering the more affordable cars in the market with safety ratings as well.” GNCAP started testing vehicles in India in 2014. Furas said they noticed that at that time the popular models by price added front airbags as optional, while the side airbags and ESC were an exemption. “For safety, 2016 was a turning point for us as we have seen that just a single safety feature in a model triggered a larger demand from the consumer for cars with better safety equipment. The recent announcements about BNCAP have made tremendous shifts in the market with the OEMs,” he said. In July 2022, GNCAP updated its protocols for emerging markets including India. This is divided into 2 timelines- starting 2022-23, followed another in 2024-25. Furas stated that government regulations in a country should be seen as complementary to GNCAP safety ratings and not otherwise. The global agency said it is testing EVs under the same protocols as ICE. However, specific aspects like electric shock risks, monitoring the batteries at high temperature points are being evaluated for future. He added that the GNCAP will soon follow Latin NCAP in order to make the side impact protection even more challenging. "We are going to have heavier barriers with higher speed; the poll impact will become oblique." Durgadutt Nedungadi, SVP India and International Business, Netradyne, pointed out three key reasons for road accidents- high vehicle speed, distracted driver and not using restraints. According to him, technology is required to aid the drivers as a positive driver behavior can
out three key reasons for road accidents- high vehicle speed, distracted driver and not using restraints. According to him, technology is required to aid the drivers as a positive driver behavior can lead to driver safety. “We use vision based AI technologies to actually recognize events before they occur, and give real time warnings in the cabin to drivers. So that they can actually take corrective action.” Using artificial intelligence and machine learning, Netradyne analyzes G-force events, almost everything which is happening both inside as well as outside the vehicle. In commercial fleets, technology can provide support in rank the drivers in terms of their merit. Driver assistance also provides the ability to tell the driver that there is an impending event which is very critical. The government in India has already notified the AIS 197 and implementation date is awaited. It covers the vehicle selection guidelines, testing, protocols, star rating calculator. Furas urged the vehicle manufacturers to use seat belt reminders in cars which cannot be tricked by the users. "Or maybe induce the technology in such a way that if the passenger is not belted up, the car will not move over 20 kmph."
US inflation slowed sharply to 7.1% over past 12 months in the United States slowed again last month in the latest sign that are cooling despite the pressures they continue to inflict on American households. 7.1% in November from a year ago, the government said Tuesday. That was down sharply from and a recent peak of 9.1% in June. It was the fifth straight slowdown. Measured from month to month, which gives a more up-to-date snapshot, the inched up just 0.1%. And so-called core inflation, which excludes volatile food and energy costs and which the closely, slowed to 6% compared with a year earlier. From October to November, core prices rose 0.2% - the mildest increase since August 2021. All told, the latest figures provided the strongest evidence to date that inflation in the United States is steadily slowing from the price acceleration that first struck about 18 months ago and reached a four-decade high earlier this year. Gas prices have tumbled from their summer peak. The costs of used cars, health care, airline fares and hotel rooms also dropped in November. So did furniture and electricity prices. Grocery prices, though, remained a trouble spot last month, rising 0.5% from October to November and 12% compared with a year ago. Housing costs also jumped, though much of that data doesn't yet reflect real-time measures that show declines in home prices and apartment rents. immediately welcomed Tuesday's better-than-expected inflation data as providing further support for the Federal Reserve to slow and potentially pause its rate hikes by early next year. Dow Jones Industrial Average futures pointed to a jump of more than 700 points when trading begins. Even with last month's further easing of inflation, the Fed plans to keep raising interest rates. On Wednesday, the central bank is set to boost its benchmark rate for a seventh time this year, a move that will further raise borrowing costs for consumers and businesses. Economists have warned that in continuing to tighten credit to fight inflation, the Fed is likely to cause a recession next year. Several trends have started to reduce price pressures, though they won't likely be enough to bring overall inflation back down to levels that Americans were used to anytime soon. has sunk from $5 a gallon in June to $3.26 as of Monday. Many supply chains have also unsnarled, helping reduce the costs of imported goods and parts. Prices for lumber, copper, wheat and other commodities have fallen steadily, which tends to lead to lower construction and food costs. To some economists and Fed officials, such figures are a sign of improvement, even though inflation remains far above the central bank's annual 2% target and might not reach it until 2024. Fed Chair Jerome Powell in three different categories to best understand the likely path of inflation: Goods, excluding volatile food and energy costs; housing, which includes rents and the cost of homeownership; and services excluding housing, such as auto
understand the likely path of inflation: Goods, excluding volatile food and energy costs; housing, which includes rents and the cost of homeownership; and services excluding housing, such as auto insurance, and education. , Powell noted that there had been some progress in easing inflation in goods and housing but not so in most services. Physical goods like used cars, furniture, clothing and appliances have become steadily less expensive since the summer. Used car prices, which had skyrocketed 45% in June 2021 compared with a year earlier, have fallen for most of this year. Housing costs, which make up nearly a third of the consumer price index, are still rising. But real-time measures of apartment rents and home prices are starting to drop after having posted sizzling price acceleration at the height of the pandemic. Powell said those declines will likely emerge in government data next year and should help reduce overall inflation. Still, services costs are likely to stay persistently high, Powell suggested. In part, that's because sharp increases in . Services companies, like hotels and restaurants, are particularly labor-intensive. And with average wages growing at a brisk 5%-6% a year, price pressures keep building in that sector of the economy. Services businesses tend to pass on some of their higher labor costs to their customers by charging more, thereby perpetuating inflation. Higher pay also fuels more consumer spending, which allows companies to raise prices. "We want wages to go up strongly," Powell said, "but they've got to go up at a level that is consistent with 2% inflation over time." On Wednesday, the Fed is expected to raise its key short-term rate by a half-point, after four straight three-quarter-point increases. That would leave its benchmark rate in a range of 3.75% to 4%, its highest level in 15 years. Economists expect the Fed to further slow its rate hikes next year, with quarter-point increases in February and March if inflation remains relatively subdued. Also Read:
ETAutoEVC: EV maker VinFast to enter India ‘shortly’, plans to bring scooters, buses along with SUVs New Delhi: Vietnamese electric vehicle (EV) maker which is expected to make a foray into the Indian market by next year, is also looking to mark its presence in the bus and scooter segments, along with SUVs, to cater to a broader customer base. “We are in serious discussions, and plan to enter the Indian market shortly. In India, SUV is the only segment that is growing, and also where we will be present,” Ashwin Patil, Vice President & Director of Sales for VinFast in India, told ETAuto in an interview on the sidelines of the EV Conclave. While the share of hatchback and sedans has significantly dropped over the last few years, sports utility vehicles (SUVs) have doubled their market share in five years and now make up almost half of all passenger vehicle sales in India. “Apart from SUVs, electric scooters and electric buses will be a part of India's product portfolio. We have the capability and technology to produce them, but when they will be introduced is still under planning,” Patil added. Beginning operations in 2017 in Vietnam, the company introduced 3 ICE models (VinFast Lux SA2.0, VinFast Lux A2.0 and VinFast Fadil) by 2019. The carmaker partnered with German automaker BMW, Italian design house Pininfarina, and suppliers Bosch and Siemens, to produce its two planned car models. This helped the company to stand its business in the domestic market. By 2021, VinFast moved completely to EVs by launching VF e34, VF 8, VF 9, and delivering the first batch of vehicles to customers in Vietnam. In the same year, VinFast also launched two e-scooters (Theon & Feliz) and an e-bus. "Now it manufactures 7 electric SUVs catering to different segments along with electric scooter models and an e-bus," Patil stated. In March this year, the Vietnam-based automaker delivered its first set of EVs in the US. In August, VinFast debuted on Nasdaq. In the third quarter ended September 2023, the company reported a wider loss. Revenue increased to USD 342.7 million during the period, while net loss widened to USD 622.9 million, the automaker said in an exchange filing. This compares with sales of about USD 334.1 million and a loss of USD 526.7 million it reported in the second quarter. As per the filing, it also announced plans to set up a facility in India with an investment of USD 150 million to USD 200 million in the first phase. In India, VinFast is currently in the process of vehicle testing and establishing its plant location. “We are in the advanced stage of finalising a location for the plant,” Patil said. The company has set up its corporate office in Gurugram and is now hiring for various roles including sales, aftersales, network development etc. Initially, the models are expected to be imported, followed by local manufacturing to obtain government incentives and offer competitive prices in the market. Patil said the EV maker is “looking for support from
models are expected to be imported, followed by local manufacturing to obtain government incentives and offer competitive prices in the market. Patil said the EV maker is “looking for support from the government for the reduction of import duty to develop domestic technical capability.” VinFast is moving ahead with its India plans at a point when EV maker , whose tryst with India has been on and off for over two years, is also close to making its foray into the country. Amid a push from the American EV maker for special sops to set up its factory in the country, there were reports about customs duty concession for the global automakers in India. However, as per a recent PTI report, a top government official has said that India will never provide company or enterprise-specific incentives in the EV sector. At present, cars imported as completely built units (CBUs) attract customs duty ranging from 60% to 100%, depending on engine size and cost, insurance and freight (CIF) value less or above USD 40,000. Interestingly, several domestic vehicle manufacturers have lined up significant investments to develop the local supply chains. For the period of January to November 2023, India’s total EV industry sales across the segments (two wheelers, three wheelers, passenger vehicles, light commercial vehicle and buses) reported about 50% year-on-year growth at 13.87 lakh units, when compared with 9.24 lakh units of last year, according to the retail data sourced from VAHAN. However, the EV megatrend in India is being led by the two and three-wheeler segments.
Oil shock risks becoming 'nightmare' for Reserve Bank of India The ’s impact on global supply chains could force India’s central bank to raise its inflation forecast, but may leave little scope for it to tighten amid a deteriorating global growth outlook, according to economists. The surge in edible and are bound to feed into headline inflation, which has already breached the upper tolerance limit of the Reserve Bank of India’s 2%-6% target range. While the has blamed supply side shocks for the spike, higher prices will nevertheless eat into disposable incomes of consumers, the backbone of the economy that has yet to fully start spending after the pandemic. “This is the policy maker’s nightmare -- risk of persistent inflation, alongside a very uneven and unsatisfactory growth,” said Ananth Narayan, senior India analyst at Observatory Group, an economic and political advisory firm. With crude prices over $100 a barrel and amid geopolitical uncertainty, Narayan sees it possible for retail inflation to average 6% next fiscal year beginning April -- instead of the 4.5% forecast by the RBI. India, which relies on imports to meet about 85% of its needs, is expected to let pump prices rise once key state elections wrap up this month. “Inflation numbers purely based on could head higher if the government decides to pass on even half of the impact,” said Soumya Kanti Ghosh, an economist at State Bank of India. A 10% increase in retail prices of gasoline, diesel and liquefied petroleum gas could result in a 50 to 55 basis point rise in headline consumer prices over the course of a year, according to estimates by Saugata Bhattacharya, chief economist at Axis Bank Ltd. Still, the central bank may stay away from raising interest rates as it reconciles its roles of fighting inflation, supporting growth and managing the government’s debt issuance. The global market volatility following Russia’s invasion of Ukraine is already upsetting India’s budget math, stoking concerns the administration may need to rely on additional borrowings to make up for any shortfall. Prime Minister Narendra Modi’s government is rethinking the timing of its proposed share sale in Life Insurance Corp., which could deprive it of revenue and enlarge a budget deficit that’s already one of the widest in the world. Although India has, for now, ruled out borrowing more this fiscal year to bridge the gap, its debt plan for the year beginning April 1 is at a record, making cheaper interest rate an imperative. “Sharp rise in energy prices and pass through impact of other commodity prices will create more challenges for growth-inflation dynamics,” said Soumyajit Niyogi, associate director at India Ratings and Research. “Though the global central banks could still go for monetary tightening, domestically RBI is expected to continue with wait and watch policy.” More Risks Crude is not the only problem. Record cooking oil prices in global markets are complicating the job of policy makers. The sharp
RBI is expected to continue with wait and watch policy.” More Risks Crude is not the only problem. Record cooking oil prices in global markets are complicating the job of policy makers. The sharp rise in prices of commodities has started seeping into domestic prices, with cooking oil prices, particularly that of sunflower oil, rising by as much as 25 rupees (33 cents) a liter. Ukraine and Russia account for about 80% of world sunflower oil cargoes. Prices of commercial liquefied petroleum gas were revised up by 105 rupees at the start of this month, while cooking gas prices are expected to witness a sharp revision in April. India’s most popular dairy brand Amul hiked milk prices by 2 rupees a liter this month, citing higher costs for energy, packaging, logistics and cattle feed. Meanwhile, home appliances companies are citing intensive supply chain disruptions to raise prices. The crude oil price shock can shave off as much as 60 basis points of economic growth in India, according to Anubhuti Sahay, Mumbai-based South Asia chief economist at Standard Chartered Plc. Despite price pressures, the RBI has maintained an accommodative stance to support growth, drawing criticism from some quarters that it could fall behind the curve. Jayanth Rama Varma, the lone dissenter among India’s monetary policy setters, has said the central bank’s inflation-targeting credibility is at risk if it keeps policy loose for too long. Governor Shaktikanta Das, however, said in a speech Friday that the RBI has acted in line with its domestic growth-inflation dynamics. Also Read:
Almost 50% of Indian car buyers prefer to quit ICE tech; 24% to opt for HEVs: Deloitte study New Delhi: Almost 50% of Indian consumers intend to move away from Internal Combustion Engine (ICE) technology, which is proving to be a near-term challenge, and 24% of Indian consumers are inclined to purchasing ( ) as their preferred engine in their next vehicle, according to ’s 2024 Global Automotive Consumer Study (GACS) India findings. The study which reveals the dynamic shift in consumer preferences in the Indian automotive sector was conducted during 5-12, October 2023. Deloitte surveyed a sample of 1,000 consumers in India, a press release issued by Deloitte Touche Tohmatsu India LLP, said. .Affordability is a critical factor influencing purchasing decisions, with 80%t of the consumers choosing a vehicle within INR 5–25 lakh price range. Preferences for ICE and under INR 10– 25 lakh stand at 59–58%, respectively. Furthermore, the consumer preference for ICE and EVs in the price range of INR 10 lakh and below was 23% and 22%, respectively. About 68% of respondents cited environmental consciousness and 63% expressed concerns about the reduced fuel expenses. Charging infrastructure plays a pivotal role, with 66% intending to charge their vehicles at home and 22% at public charging stations. Fast charging is crucial, and most consumers prefer simple traditional creditfeatures, trying something different and upgrading to a premium brand. Other key emerging trends 1. OEMs are looking to offer in-house insurance products, signalling a significant disruption for the traditional value chain. About 83% consumers were interested in purchasing insurance directly from the manufacturer, citing “convenience” and “cost saving” over the current provider. 2. Connected vehicles: Safety is a key priority for India. Consumers are willing to share data andPersonally Identifiable Information (PII) data with the car manufacturer to receive the necessary updates for a better and safer driving experience. Indian consumers prioritise safety when it comes to connected vehicles. About 71%t consumers were willing to pay extra for connectivity features, with 88% desiring updates for road safety and collision prevention, and another 88% seeking maintenance updates and vehicle health reporting/alerts. 3. New vehicle versus used car trend: Despite consumers’ interest in new and used cars, most prefer buying a new car for the next vehicle. About 77% consumers are willing to switch brands, citing technology features (64%) and a desire for something new (50%) as primary reasons. 4. OEM commitment to sustainability: Most consumers (98%) believe that vehicle brands must commit to sustainable practices, such as using environmentally friendly materials and a low carbon manufacturing footprint. 5. Younger consumers opt for vehicle subscriptions: Younger consumers are driving overall interest in vehicle subscriptions. About 6 in 10 consumers want to give up vehicle ownership for a
footprint. 5. Younger consumers opt for vehicle subscriptions: Younger consumers are driving overall interest in vehicle subscriptions. About 6 in 10 consumers want to give up vehicle ownership for a subscription service. Cost control, convenience, availability of vehicles, and increased flexibility are the most important factors for these consumers. Nearly 67% of consumers in the age group of 18–34 preferred vehicle subscriptions. However, vehicle availability, higher monthly fees, and total ownership costs are the main concerns consumers have regarding vehicle subscription services.
Failure of car manufacturer to provide airbag system should be subject to punitive damages: SC Failure of a car manufacturer to provide an should be subject to punitive damages which can have a deterrent effect, the Supreme Court has said. "The failure to provide an airbag system which would meet the safety standards as perceived by a car-buyer of reasonable prudence, in our view, should be subject to punitive damages which can have a deterrent effect. "And in computing such punitive damages, the capacity of the manufacturing enterprise should also be a factor," said a bench of Justices Vineet Saran and Aniruddha Bose. The bench said that a consumer while buying a car would assume that the airbag would open automatically in case of collision. Further, a consumer is not meant to be an expert in physics calculating the impact of a collision on the theories based on velocity and force, the top court said. The observation came while hearing an appeal filed by against an order of the (NCDRC) which dismissed the appeal sustaining the compensation awarded by the . The appellant is a vehicle manufacturer and the appeal arises out of a complaint made by a car buyer concerning a defect in a vehicle, particularly concerning its safety features originating from its vehicle model Creta 1.6 VTVT SX+. The vehicle, purchased on August 21, 2015, came with two front airbags and met with an accident on the Delhi--Panipat highway on November 16, 2017, resulting in substantial damage to the car. The complainant suffered head, chest as also dental injuries which he attributed to non- deployment of airbags at the time of the accident. The state commission awarded a compensation of Rs two lakh for medical expenses and loss of income, Rs.50,000 for mental agony, and Rs 50,000 as the cost of litigation. The state commission also said that failure in replacing the vehicle of the appellant will also attract an interest of seven per cent per annum of the value of the vehicle from the date of default. The top court in its order said that the fact that the consumer has got the car repaired on insurance money would not impact the quantum of damages, which is partly punitive in nature in this case. "We accordingly do not want to interfere with the decision of the . We do not find the reasoning of the Commission or the operative part of the order awarding damages to be perverse," the bench said. Also Read:
Safeguarding Lives on Indian Roads: The Crucial Role of Personal Accident Cover In India, the escalating toll of fatalities and injuries from road accidents has emerged as a pressing concern for road safety. According to the , India accounts for 11% of the global deaths in road accidents, with just 1% of the world's vehicles. A total of 4,61,312 road accidents took place in India in the year 2022, claiming 1,68,491 lives and causing injuries to 4,43,366 people. This marks an increase of 11.9% in accidents, 9.4% in fatalities, and 15.3% in injuries compared to the previous year. The government has taken various initiatives to improve road safety, such as implementing the , identifying, and rectifying black spots on national highways, and collecting and analysing data on road accidents. However, these measures alone are not sufficient to prevent road accidents and save lives. The responsibility also lies with the vehicle owners, drivers, and passengers to follow the traffic rules, wear seat belts and helmets, avoid drunk driving and over speeding, and maintaining their vehicles properly. Global statistics emphasise the severity of the issue, underlining the need for personal responsibility. To fortify defence against road mishaps, it's crucial to choose vehicles equipped with safety features like airbags, seat belt alarms, helmets, and biking gears in addition to the safe driving behaviour. However, even with the best precautions, unfortunate accident can happen. This is where becomes a paramount. Personal accident cover, a type of insurance that offers financial aid to the owner-driver in cases of bodily injuries, death, or permanent disability resulting from a road accident. An important aspect of personal accident cover is that it also provides various assistance services, such as towing, ambulance, roadside assistance, and legal advice, in case of an emergency. These services can help the owner-driver to deal with the situation more effectively and reduce the stress and hassle involved. A personal accident cover is different from a comprehensive motor insurance, which covers the damage to the vehicle and the third-party liability arising from the accident. A personal accident cover is specifically meant for the owner-driver of the vehicle and does not cover the passengers, or the pedestrians involved in the accident. Therefore, it is advisable to have both a personal accident cover and a comprehensive motor insurance to ensure complete protection in case of a road mishap. The advantages of having a personal accident cover along with motor insurance are as follows: : It provides financial assistance for medical expenses, covering hospitalization charges, treatment costs, and medical bills incurred during the owner-driver's treatment. Compensation for Permanent Disability: In cases of permanent total disability, such as loss of limbs, eyesight, or hearing due to an accident, the policy ensures monetary compensation. The compensation amount is
for Permanent Disability: In cases of permanent total disability, such as loss of limbs, eyesight, or hearing due to an accident, the policy ensures monetary compensation. The compensation amount is usually equal to the sum insured of the policy, which can be up to Rs. 15 lakhs. Support for Nominee or Legal Heir: In the unfortunate event of the owner-driver's death resulting from an accident, the nominee or legal heir receives compensation. This helps the family cope with the financial repercussions, offering support for the loss of income and livelihood. The compensation amount is usually equal to the sum insured of the policy, which can be up to Rs. 15 lakhs. However, the policy may have certain exclusions, such as suicide, intentional self-injury, or driving under the influence of alcohol or drugs, which can affect the claim settlement. Peace of Mind: Beyond financial aid, personal accident cover provides a sense of security and peace of mind to the owner-driver. Knowing that unforeseen consequences of road accidents are covered fosters a proactive approach to road safety. In conclusion, personal accident cover is not just a financial tool but a crucial lifeline on India's perilous roads. Taking responsibility for one's safety and ensuring comprehensive insurance coverage can make a difference between life and death. Therefore, it is wise to invest in a personal accident cover and drive with confidence and care. This article is authored by , CEO, . All views expressed are personal.
India’s small towns turn boomtowns for auto financing Growing aspiration for is fuelling a surge in in India, extending beyond the metros to smaller cities. Consumers are also opting for longer-tenure loans to afford higher car prices, say executives. Top carmakers such as , , , Tata Motors, Honda, and Toyota expect finance penetration to rise to 75-84% in 2024 from 64-75% in the pre-pandemic period, according to data collated by Jato Dynamics. About 79.1% of in India are financed through bank loans or non-banking financial companies ( ), underscoring the car’s enduring role as a symbol of social progress in the world’s most populous nation. The preference for is more pronounced in tier II and III cities, where 75% opt for loans, indicating that the aspirational drive for car ownership is no longer limited to metros, said a senior official at a South India-based NBFC. While traditional financing dominates, alternative models such as leasing, and subscription are struggling to gain traction in the Indian market. Leasing penetration stands at a mere 1.5% and subscription at 0.1% of the market. The tepid demand is attributed to regulatory hurdles, complex logistics around insurance and maintenance, and a cultural preference for outright ownership, say experts. “We don’t get any GST benefits in leasing. Therefore, we are reluctant to offer it to the consumer,” said a senior official at a leading south India-based NBFC, who feels it works better only for dedicated leasing companies. Unlike India, leasing comprises about half of new car sales in developed auto markets such as Europe. The figure is projected to grow by 4.5% compounded annually to USD 12.17 billion during 2023 to 2028. Cash purchases still make up 19.3% of total car deals, representing both affluent buyers and those unable to secure loans, say experts. Finance penetration is growing exponentially, according to auto dealers. “Even though prices of vehicles have gone up, the consumer is now open to taking longer tenure loans, with limited margin money,” said Nikunj Sanghi, a leading automotive dealer. “The loan-to-vehicle ratio has also significantly gone up, to more than 85% against 30-35% earlier,” he said. According to Ravi Bhatia, president, Jato Dynamics, the willingness to take on long-term debt for depreciating assets like cars suggests confidence in future earning potential and economic stability among Indian consumers. Financiers, too, see a huge potential for auto loans in upcoming festive period, the most crucial period of a year for consumer goods purchases. Banks and NBFCs are getting aggressive by offering competitive interest rates and faster documentation while the self-employed preferring loans. “They prefer to deploy funds into their business as the return on investment is more than the interest cost,” said an official of a Mumbai-based bank, a leading auto financier, highlighting the factors behind the loan demand. With the calendar second half expected to outperform the
than the interest cost,” said an official of a Mumbai-based bank, a leading auto financier, highlighting the factors behind the loan demand. With the calendar second half expected to outperform the first half for vehicle financiers, “we expect to report 1.9% RoA (Return on Assets) for FY25,” Axis Capital said in a recent report.
RattanIndia Enterprises looks to tie up with all banks by March 2023 for fintech platform , which recently made a foray into the business, looks to have tie-ups with all the by the end of the next financial year. The fintech platform of the company, BankSe, has an arrangement with 21 banks and financial firms to offer loan products, at present. "Plan is to cover all the banks by the end of next financial year. So we will have all the banks offering their products on the platform," Enterprises chairperson told PTI. The two-wheeler and get approved in about two minutes, he said, more products would be onboarded going forward because the idea is to make it a full market place for all financial products. Besides, he said, the platform provides an opportunity to compare the best offer to customers. "This is something where our capital is not at risk and credit score check and lending to be done by the financial institution. Lending is done by banks or financial institutions as per the guidelines," he said. Customers can have the convenience of logging onto the app or website and uploading requisite documentation digitally to experience outcomes in real, quick time. As an additional feature any customer using BankSe will be able to get a personalized credit score, entirely free of cost. BankSe, an all-digital, financial aggregator platform can be accessed through android mobile web portal. It has developed a platform which connects with the defined processes of the lenders, thereby offering them instant visibility of customer's background and their historical financial records. He also said that bundled insurance with the loan product would be made available. Also Read:
Maruti Suzuki True Value sells 50 lakh pre-owned cars since 2001 New Delhi: Pre-owned car brand has sold 50 lakh pre-owned cars. Introduced in 2001, it has been a one-stop destination to buy and sell quality pre-owned cars. The hassle-free purchase and sale experience for customers along with cars that are safe and reliable have continuously ensured the success of True Value, the company said. , Senior Executive Officer, Marketing & Sales, , said, “True Value was launched to provide customers the opportunity of owning a pre-owned car in the most secure and hassle-free manner. With the successful completion of 22 years in the industry, Maruti Suzuki True Value has established itself as the preferred choice of 50 lakh happy customers. We are confident that we will continue to offer customers our industry-best services including professionally trained relationship officers, an intelligent & tech-driven digital interface to evaluate and certify cars, amongst a host of other services.” Maruti Suzuki True Value (MSTV) offers a systematic integration of technology and industry experience to our customers that make the whole process of buying and selling cars transparent and convenient. Complete peace-of-mind is ensured, thanks to services such as reliable RC transfer, hassle-free documentation, on-time payment, and AI-based pricing engine. Convenience factors from True Value include services such as free home evaluation for their car, online preview of cars with detailed information, to name a few, the company said in a media release. With over two decades of simplicity and transparency, True Value is currently present in more than 281 cities and operates from over 560 outlets pan-India. With a rigorous 376 checkpoint evaluation, refurbishment with Maruti Suzuki Genuine Parts, and a consequent certification process, cars come with up to 1-year warranty and 3 free services. Along with a wide selection of pre-owned cars and services including car insurance, finance, and accessories, True Value also ensures a comprehensive experience for all car-buying and selling services under one roof, the release added.

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