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Auto retail sales far from growth trends; FADA sceptical about any immediate recovery New Delhi: Passenger vehicle registrations saw year-on-year growth to 2,63,152 units in May 2022, owing to healthy demand and single digit cancellations due to waiting periods, says the data shared by Federation of Automobile Dealers Associations ( ) based on VAHAN. Retail sales of two wheelers also increased to 12,22,994 units in May this year from just 4,10,871 units in May last year. According to the dealers’ lobby body report, total vehicle registrations at regional transport offices (RTOs), which are proxy for sales, stood at 16,46,773 units in May this year, over 5,36,795 units in May 2021. On a year-on-year comparison, all the segments were in green and witnessed multi-fold growth. , President, FADA, said, “Indian auto industry during May’22 continued its flat run for the 3rd consecutive month. While YoY comparison with May’21 shows exceptionally healthy growth rate across all categories, it is important to note that both May’21 and May’20 were affected by nation-wide lockdown due to Covid. Hence a better comparison will be with May’19 which was a normal pre-Covid month.” “Similar to last month, May’22 when compared to May’19 reveals that Auto retail is still not on a growth trajectory as overall retails were down by -10%. While PV and Tractors continued its positive run by growing 11% and 33%, 2W, 3W and CV are yet to show any signs of healthy run-rate (compared to pre-covid months) as they de-grew by -14%, -19% and 11% respectively,” he said. “The Government made a bold decision to cut excise duty on fuel prices thus reducing and economic distress. While this will have a positive rub-off on sale of vehicles especially 2W, the increase in 3rd party insurance premium will act as a deterrer for some,” Gulati added. According to the FADA President, “The 2W segment has seen slight improvement in overall sales when compared with April’22. While 2W EV sales were growing rapidly though on a low base, various fire incidents across almost all EV brands has created a fear in the mind of the customer. This coupled with supply chain issues, has decreased 2W EV sales drastically from last month.” “The PV segment which has already surpassed May’19 numbers is witnessing huge demand. Dealers are not able to fulfil the same due to supply side issues. This has not only led to an increase in waiting period (ranging from 3 months to 2 years) but is also keeping the customers frustrated. Healthy booking and single digit cancellation shows that demand may stay put even when normal supply resumes in months to come. The CV segment especially buses are showing good demand due to re-opening of educational institutions,” he said. The auto dealers’ body informed that “with its persistent follow- up with the Andhra Pradesh Transport Ministry, the state has now migrated vehicle registration to Vahan. While this has happened towards the end of May, full month numbers will only come
follow- up with the Andhra Pradesh Transport Ministry, the state has now migrated vehicle registration to Vahan. While this has happened towards the end of May, full month numbers will only come later. The only states remaining are Telangana, Madhya Pradesh and Lakshadweep. With this Vahan now covers 91.6% RTOs across the country.” About the near term outlook, FADA said that while the Russia – Ukraine war continues to create demand supply mis-match thus delaying the availability of PVs, RBI has warned of more inflation as the increase in wholesale prices will get passed on to the end consumers. This will result in a lower disposable income which will ultimately hamper Auto Sales. RBI’s observation has come at a time when WPI Index rose by record 15.1% in the wake of high commodity prices and the impact of the breakdown in supply chains due to the War and the strict lockdown by China. “FADA hence continues to remain cautious for any further recovery in auto sales in the near term,” it said.
China uses vulnerability of sanction-hit Russia to buy cheap oil After several governments in the West imposed economic sanctions on Russia after it invaded Ukraine, Russian offered discounts on its oil and China grabbed the offer. When some foreign governments and companies imposed sanctions, Russia was left with fewer buyers. So to counter that, it started offering discounts on oil to countries. China has been most active in grabbing the offer. China was one of the largest buyers of even before the Ukraine war. But, once the Russian attack on Ukraine started, Beijing's purchases of oil from Moscow only increased. Although China chose not to condemn Russia's attacks on Ukraine for economic interests publicly, it has called for an early end to the war trying to act as a friend to both Ukraine and Russia. Observers are expecting China to continue with the present course, reported Portal Plus. China has defended the purchase of oil from Russia, saying it must source crude oil from wherever it is available at a cheap rate. China also continues to buy oil from the Middle East as well as Angola and Brazil, although in July, Russia remained its top supplier for the third month in a row. From March to May, China bought 14.5 million barrels of oil, which marks a three-fold increase from the same period last year. Portal Plus reported quoting Asia Times that prices for global oil had collapsed by more than 60 per cent since the start of 2020 due to the one-month-long oil price war between Russia and Saudi Arabia, the world's second and third largest oil producers. The adverse impact of the Covid-19 pandemic on the had knocked oil prices and futures contracts down to levels not seen in decades. Under the current scenario, diplomatic relations between Russia and China are getting stronger by the day as Russia has been becoming totally dependent on China. The reason why China has become so crucial for Russia is the fact that the bulk of Western sanctions has left Moscow with no other option than allow China in becoming its largest market, Portal Plus said quoting Ukrainian analysts. China's imports from Russia have jumped a record 80 per cent in May last year, Portal Plus quoted Oksana Lesnyak, Head of the Asia-Pacific Bureau of the Kyiv-based Center for Global Studies Strategy XXI However, China too is experiencing financial difficulties due to its COVID-19 lockdowns and property crisis. So, if it gets an opportunity to fill in its soil reserves by purchasing cheaper oil, it will definitely use that opportunity. "Lots of these things can be done more constructively behind the scenes than in the limelight", Portal plus quoted China expert Victor Gao, a professor at China's Soochow University and vice president of the Center for China and Globalization as saying. "As this relationship develops, Russia's position will become weaker, hence China will be pushing for higher discounts on Russian oil and gas exports", he added. The is expected to impose further
"As this relationship develops, Russia's position will become weaker, hence China will be pushing for higher discounts on Russian oil and gas exports", he added. The is expected to impose further sanctions on Russia in the coming December. It is expected to include a ban on insurance for tankers transporting Russian oil. A price cap on Russian oil is also expected later, reported Portal Plus. So, the situation provides China with an upper hand while negotiating oil prices with Russia and demand more discount on oil and it will ensure grabbing the opportunity with both hands. Read More:
Red Sea Crisis: No disruption in oil flows to India, only freight up: HPCL head The ongoing attacks on shipping vessels by militants in the Red Sea have not impacted the flow of crude oil to India but freight has gone up due to rerouting via the , (HPCL) chairman said. India, the world's third-biggest oil importer, gets a bulk of its Russian supplies through the Red Sea. Russian supplies made up for over 35% of India's total crude imports in 2023, amounting to 1.7 million barrels per day. Russian ships and cargoes are not being prime targets of the attacks at this stage however rerouting of ships around the southern tip of Africa instead of transiting through the and Red Sea has led to ships taking longer voyages, resulting in the shortage of ships and rise in freight charges. In a post-third quarter earnings call with investors, Joshi said HPCL has tied up crude oil supplies till mid-April and it does not see any supply disruptions. HPCL meets 44-45% of its crude oil needs on term contracts with national oil companies such as those in Saudi Arabia and Iraq. The remaining is on the spot or from the current market, he said. "Term crude has not been impacted (due to the )," he said, adding the spot imports are on DES basis where the shipping is arranged by the supplier. "The spot supplies too are not impacted." HPCL, he said, has "already tied up crude requirements till fiscal year end (in March) and the first couple of weeks of April." "Crude oil supplies have not seen any disruption as of now. This has definitely impacted the freight rates and freight rates have travelled northward." Spot imports include opportunity crude such as Russian oil which is sold at a discount because some western nations have shunned it due to Moscow's February 2022 invasion of Ukraine. "So far as supply is concerned, I am quite confident that supply requirements are being met. We also have to see how this situation unfolds in the next few weeks, basis that we will have to take a call but as far as the procurement side is concerned, I am already in a comfortable situation till March 31 and two weeks of April," he said. Joshi said HPCL has tied up both term and spot supplies including opportunity crude till mid-April. "We are not experiencing any disruption there.". On Russian imports, he said Russian oil made up for 30% of all crude oil imported by HPCL in 2023. While the supplies are not being impacted, the rerouting of ships could inflate insurance costs and crimp refining margins. Shippers are avoiding the Red Sea and Bab al-Mandab Strait after a US-led coalition struck Iran-backed Houthi militants in northern Yemen. This however has impacted diesel exports to Europe. Longer voyages have hit diesel cargo cost, which has increased by USD 850,000-1 million. Due to the rerouting of a voyage through the Cape of Good Hope instead of going through the Suez Canal, shipments from India to the US will take an additional 10-14 days, while shipments from Europe/the
to the rerouting of a voyage through the Cape of Good Hope instead of going through the Suez Canal, shipments from India to the US will take an additional 10-14 days, while shipments from Europe/the Mediterranean will take 20-25 days.
Second-hand markets in adjoining states, lack of parking spaces behind Delhi vehicle thefts: Police Non-availability of , casual attitude of owners towards anti-theft precautions and accessibility of second-hand markets in neighbouring states are among the major factors responsible for motor vehicle thefts in the capital, according to police. data showed that during the year 2021, a total of 36,177 were reported as against 33,128 in 2020. The decrease in motor vehicle theft cases in 2020 can be attributed to the coronavirus pandemic. According to police, a majority of the vehicles stolen are two-wheelers since they easy to break while cars have more high-tech security systems that are difficult to crack. Among the , 26,432 were two-wheelers, 6,441 cars and 3,304 others. A total of 4,431 stolen vehicles were recovered and 5,717 auto-lifters arrested in 2021 as against 3,922 vehicles recovered and 4,888 auto-lifters arrested in 2020, the data cited. The police officials said non-availability of parking places in residential and commercial areas of the national capital is among major factors responsible for motor vehicle thefts. Among other factors, the police said, there is a casual attitude of owners towards anti-theft precautions and parking safety. Even lagging behind in full implementation of High Security Registration Plates (HSRPs) that facilitates quick changeover to fake number plates is also an important factor contributing towards motor vehicle thefts, the police officials cited. They said second-hand markets in other states and cities play a major role in sale and salvaging of stolen vehicles and their expensive parts. The senior police officials cited that these vehicles, stolen from , are found disposed of in Uttar Pradesh, Bihar, West Bengal, Jammu and Kashmir, northeastern states and neighbouring countries of Nepal and Bangladesh. To check the rise in motor vehicle theft cases, the police started identifying the affected places and vulnerable time zones for proper deployment of staff in these areas. "We also deployed barriers and nakas in affected and vulnerable areas to prevent motor vehicle thefts. Manufacturers were impressed upon for installing anti-theft devices at the factory and showroom stage," said the traffic police officials. The police said they have also kept computerized record of stolen vehicles, parking attendants are regularly sensitized, coordination with insurance agencies. To create awareness among public through educational literature on preventive measures and educational advertisements in newspapers and FM channels, police said. Also Read:
Tesla steps to revive India plans for projected capacity expansion A senior delegation, mostly from its supply chain function, met the Union officials in New Delhi, and, it is believed, executives of a Mumbai-based EV manufacturer, over a two-day visit last fortnight, according to a business daily. Tesla's tryst with has been on and off for over two years. In May last year, the Elon Musk-founded company decided following rounds of talks, letter exchanges with the government, and a plethora of tweets from Musk to shelve its India plans after it failed to convince the government to reduce high import duties so that it could test the waters by importing completely built units (CBU) cars. Faced with tough opposition from Indian car makers, who contended that such a reduction would be unfair when there is a high localisation threshold for domestic competitors, the government asked Tesla to assemble the cars (completely knocked down or CKD operations) in India rather than import them from China as other global car companies such as Hyundai and Mercedes Benz were doing. The EV maker also failed to extract concessions for single-brand Tesla showrooms. This time, multiple sources aware of the discussions said rather than CBU duty reductions, the Austin, Texas-headquartered multinational is looking for long term stability and clarity in the tax regime before investing in a CKD assembly plant. A CKD assembly makes the car far more affordable, since the duty is only 10% against 70% on the cost, insurance, and freight (cif) value of an imported car t of less than USD 40,000 and 100% on imported cars above USD 40,000. It is also looking at expanding its component supply chain from India and a possible lithium-ion battery unit. The India rethink is the result of Tesla's plans to make 20 million electric cars a year by 2030, an exponential jump from 1.3 million sold last year. Musk has also stated that to reach this goal it will require ten to a dozen-odd gigafactories around the world- from just five located in the US, China, and Germany. Tesla is also, like other multinationals, looking to hedge its heavy dependence on China both for production and sales. Last year, half of its cars were made in its Shanghai plant, and China accounted for one third of those sales. In a recent interview, Musk said the decision on new locations would be taken by the end of the year and when queried specifically on whether Tesla was interested in India for the new factory he quipped "definitely." The same report mentioned that Tesla's search for new assembly destinations is also driven by the fact that it is planning a compact EV, priced at half its best-selling Model 3, or around USD 25,000 (with CKD duty that would be less than 25 lakh). The market for this car would be in Asia and Latin America, 3 where governments are pushing for aggressive electrification. Tesla has to do cost engineering, not feature engineering, which is what it is used to doing. Global manufacturers such
Latin America, 3 where governments are pushing for aggressive electrification. Tesla has to do cost engineering, not feature engineering, which is what it is used to doing. Global manufacturers such as Daimler and even others have tried to do it but failed," a senior executive of a leading automaker with EV plans, said, adding, "But if it does, competition in India will be more interesting." Tesla can leverage India's attractive large component base in the country to localise and pare prices further. A veteran in the car business who has run South Korean auto giants estimates that building an assembly plant would not require more than USD 100 million and they can easily buy global supply chain tyres, seats and other components from India where it is already a global player. The company already sources differential gears from Sona for the globe and other components from Sandhaar's Mexico unit. But India has competition, South Korea being a front-runner. It has a large domestic market, is accelerating towards EVs, has an FTA with the US and access to fast growing East Asian markets. In April, South Korean president Yoon Suk Yeol met Musk in Washington at the latter's request to set up a gigafactory in the country, and the Korean government is on record on its intention to offer Tesla major concessions. Then there is Indonesia, where Tesla has been looking at setting up a battery and EV plant leveraging the huge availability of local nickel mines, a key raw material for batteries that it wants to secure. In Mexico it has already announced its sixth gigafactory. So what does India offer? The Indian luxury car market is very small at around 37,000-38000 ICE (internal combustion H engine) cars, which grew at over 50 per cent in 2022 over the previous year, much quicker than the overall market. But in 2022, only 40,000 electric cars were sold, mostly by Tata Motors. But analysts suggest that the nature of this market could change dramatically in three or four years with car makers from Hyundai, M G Motors, Volkswagen, Tatas, Ola Electric, BYD, and Volvo lining up launches. Some 10% to 15% of the 3.8 million car market would be electric, still less than the government's target of 30 per cent, but reasonable enough to attract new investment. Tesla could also negotiate with the government for the production linked incentive (PLI) scheme for electric vehicles and components by tying up with component makers and making India a hub for its global supply chain. Ahead of that, however, the government has requested the Tesla team to talk to successful global players who are making India into a manufacturing base. It will also have to rebuild its India team since most of those involved in the earlier proj- ect earlier have left or moved to the US. Starting from scratch, Tesla could learn from the experience of Apple, which was initially snubbed by the government for its proposal to sell second-hand refurbished mobiles in India. Since then, after months of tough
Tesla could learn from the experience of Apple, which was initially snubbed by the government for its proposal to sell second-hand refurbished mobiles in India. Since then, after months of tough negotiations, it has become a model of the PLI scheme. Source: Business Standard
Tesla blamed drivers for failures of parts it long knew were defective Shreyansh Jain was ecstatic in March when he picked up his first , a brand-new 2023 . He used a sizable chunk of family savings to buy it with cash. "We were over the moon!" said Jain, an electronics engineer in Cambridge, England. His exuberance came to a "grinding halt" one day later, with 115 miles on the odometer, Jain told Reuters. As he drove with his wife and three-year-old daughter, he suddenly lost steering control as he made a slow turn into their neighborhood. The vehicle's front-right suspension had collapsed, and parts of the car loudly scraped the road as it came to a stop. "They were absolutely petrified," Jain said of his wife and daughter. "If we were on a 70-mile-per-hour highway, and this would have happened, that would have been catastrophic." The complex repair required nearly 40 hours of labor to rebuild the suspension and replace the steering column, among other fixes, according to a detailed repair estimate. The cost: more than USD 14,000. refused to cover the repairs, blaming the accident on "prior" suspension damage. Jain is one of tens of thousands of Tesla owners who have experienced premature failures of suspension or steering parts, according to a Reuters review of thousands of Tesla documents. The chronic failures, many in relatively new vehicles, date back at least seven years and stretch across Tesla's model lineup and across the globe, from China to the United States to Europe, according to the records and interviews with more than 20 customers and nine former Tesla managers or service technicians. Individual suspension or steering issues with Teslas have been discussed online and in news accounts for years. But the documents, which have not been previously reported, offer the most comprehensive view to date into the scope of the problems and how Tesla handled what its engineers have internally called part "flaws" and "failures." The records and interviews reveal for the first time that the automaker has long known far more about the frequency and extent of the defects than it has disclosed to consumers and safety regulators. The documents, dated between 2016 and 2022, include repair reports from Tesla service centers globally; analyses and data reviews by engineers on parts with high failure rates; and memos sent to technicians globally, instructing them to tell consumers that broken parts on their cars were not faulty. Neither Tesla nor top executive responded to detailed questions for this article. Musk has acknowledged some build-quality problems with Teslas in the past, particularly the entry-level Model 3. But he also says his cars have no peer. "We make the best cars," he said of Tesla at a New York Times event last month. "Whether you hate me, like me or are indifferent, do you want the best car, or do you not want the best car?" Tesla's handling of suspension and steering complaints reflects a pattern across Musk's corporate empire of
me, like me or are indifferent, do you want the best car, or do you not want the best car?" Tesla's handling of suspension and steering complaints reflects a pattern across Musk's corporate empire of dismissing concerns about safety or other harms raised by customers, workers and others as he rushes to roll out new products or expand sales, Reuters has found. A Reuters investigation in November documented at least 600 injuries at rocket-builder SpaceX, where employees described a culture of rushing dangerous projects with little regard for workers' safety worries. In July, the news agency revealed how Tesla had created a secret team to suppress thousands of customer complaints about poor driving range. The report, which found that Tesla rigged an algorithm to inflate its cars' in-dash range estimates, sparked a federal investigation. Late last year, Reuters exposed how hurried experiments at Musk's brain-chip startup, Neuralink, resulted in the unnecessary suffering and deaths of laboratory animals, despite objections from workers seeking to protect them. Neither Musk nor any of his companies commented for these reports. But he recently lashed out at critics of his social-media company, X, formerly Twitter, which has seen its revenue and market value plummet since Musk bought the firm for USD 44 billion about a year ago. At the live Times event, he went after advertisers who boycotted X over Musk's endorsement of an antisemitic post on the social-media site. "Go fuck yourself," the billionaire told companies who pulled their business. Unlike traditional automakers, which use independent dealers to sell and repair vehicles, Tesla sells directly to customers and owns and operates a large portion of its service centers. That gives the automaker extraordinarily detailed real-time visibility into parts failures, repairs and warranty claims, which Tesla engineers meticulously tracked and analyzed for years, the company records show. Yet the company has denied some of the suspension and steering problems in statements to U.S. regulators and the public - and, according to Tesla records, sought to shift some of the resulting repair costs to customers. Tesla has blamed frequent failures of several parts on Tesla owners, alleging they abused the cars, according to interviews with former service managers, company records and a 2020 Tesla letter to the U.S. National Highway Traffic Safety Administration (NHTSA). In other cases, the automaker charged customers with out-of-warranty cars to replace parts that Tesla engineers internally called flawed or that they knew had high failure rates. Engineers ordered repeated redesigns for several parts and discussed seeking money back from suppliers because of the defects. The records reveal persistent problems with low-tech suspension connections, such as upper and lower control arms, and fore and aft links. These parts are relatively inexpensive for Tesla and largely invisible to most consumers. But they play a
suspension connections, such as upper and lower control arms, and fore and aft links. These parts are relatively inexpensive for Tesla and largely invisible to most consumers. But they play a critical role in safely connecting a car's axle and wheels to its body and steering apparatus. Two more complex and expensive parts also frequently failed: half shafts - the left and right drive axles - and steering racks, which often needed replacing after sudden power-steering outages that some Tesla owners said nearly caused accidents. One driver said in an interview that his brand-new 2023 Model Y jerked to the right when the power-steering suddenly failed at speed, nearly putting the vehicle into a ditch. At least 11 drivers told Tesla a crash was caused by a failure in the suspension, steering or wheel assembly, company records show. Those accident claims, which have not been previously reported by the media, were recorded by Tesla staff between 2018 and 2021 and assigned to engineers or technicians for review. In April 2021, the owner of a 2020 Model 3 with less than 15,000 miles on the odometer, went to a Tesla repair center in Brooklyn, New York, after an accident. The technician's summary: "Front wheel fell off while driving on Autopilot at 60 mph," referring to Tesla's automated driving system. The wrecked car was sold, without the front wheel, in November 2021, auction records show. The following month, another owner of a 2020 Model X in Madrid reported a wheel falling off while driving, the records show. Neither driver is identified in the records, which also do not detail how Tesla responded. The suspension collapse in Jain's car fortunately occurred at low speed. It was nonetheless shocking in a car he had owned for less than 24 hours. The automaker told him the suspension collapse was caused by the separation of a lower control arm from the steering knuckle, which connects to the wheel assembly. Jain expected Tesla to cover the damage. A Tesla Service representative had texted Jain that an initial inspection found "no evidence of any external damage" that caused the incident and implied Tesla would pay for the repairs, according to a copy of the text Jain provided to Reuters. About a week later, Tesla sent Jain a letter denying responsibility, saying it had inspected the vehicle and determined that the cause was "a prior external influenced damage to the front-right suspension." Jain said he was the only driver of the car during the one day he owned it and hadn't had an accident before the suspension failure. "I was like, 'Bloody hell, how can metal just snap like that when I know for sure the car has not hit anything?'" he said. The repair took about three months. Jain paid a deductible of about USD 1,250 to have the work covered by his insurance company, which after the claim hiked his rates sharply on another car he owned, he said. Fed up with the ordeal, Jain sold the repaired Tesla - for about USD 10,000 less than the USD 55,000 he paid
company, which after the claim hiked his rates sharply on another car he owned, he said. Fed up with the ordeal, Jain sold the repaired Tesla - for about USD 10,000 less than the USD 55,000 he paid for it. "I lost complete confidence in the car," he said. RECALLING PARTS IN CHINA - BUT NOT IN THE U.S. The Tesla records reveal the company's extensive knowledge of systemic suspension and steering problems, even as the company denied some of the same problems to regulators and customers who expected the company to pay for repairs. One especially problematic part was the aft link. A series of 2016 suspension failures in China bears striking similarities to the incident with Jain's car seven years later. Some of Tesla's earliest China customers told the automaker that a front wheel had collapsed while turning at low speeds on its Model S luxury sports car, Tesla's first mass-produced vehicle. The front aft link, an aluminum-alloy suspension arm, had snapped, Tesla engineers found, according to company records that documented half a dozen such incidents. Between 2016 and 2020, Tesla resolved about 400 complaints involving aft-link failures in China, according to a former Tesla employee with direct knowledge of the matter. The company fixed cars under warranty or by making so-called goodwill repairs for out-of-warranty vehicles, the former employee said. Tesla redesigned the part four times because the initial revisions did not fully fix the problem, the automaker's records show. "The collapse of the suspension is terrifying to the customer," Riccardo Dong, a Tesla engineer then based in China, wrote in 2016 on the company's troubleshooting platform. "Many owners are asking for a recall." Dong did not respond to a request for comment. Tesla delayed a recall for four more years, until Chinese regulators pushed for one. China's State Administration for Market Regulation, in a statement, cited a "risk of accidents" in extreme cases of the aft-link part failure. Yet the automaker never recalled the part in the United States and Europe despite reports of frequent failures globally. Tesla told U.S. regulators the failures were caused by "driver abuse." The company also instructed service centers, in a February 2019 "talking points" memo, to use the same explanation with customers experiencing aft-link failures. They were told to blame "vehicle misuse," such as "hitting a curb or other excessive strong impact." Tesla uses the terms "abuse" and "misuse" in the conditions of its warranty contract language that allow the automaker to decline claims for repairs or damage. Tesla employed this deny-and-delay strategy as its ballooning costs of warranty repairs threatened the company's profitability at a critical juncture - when investors were scrutinizing its long-term prospects. During the fourth quarter of 2018, Tesla paid nearly USD 500 for repairs, on average, for every Tesla in operation at the time, service engineers were told in a series of memos. In total,
prospects. During the fourth quarter of 2018, Tesla paid nearly USD 500 for repairs, on average, for every Tesla in operation at the time, service engineers were told in a series of memos. In total, an April 2019 memo noted, Tesla's repair business lost USD 263 million in the quarter because of the high volume of warranty and goodwill repairs. For comparison, that was nearly double Tesla's quarterly profit of USD 139 million. Some U.S. customers with out-of-warranty cars paid more than USD 1,000 to repair aft links, and Tesla records show many European customers were frustrated at paying for replacements. Tesla's basic U.S. warranty lasts four years or 50,000 miles, and coverage is similar in most other markets. Tesla has also fought in court to avoid making repairs to suspension parts, including control arm assembly components. The automaker scored a recent victory in a prospective class-action lawsuit alleging Tesla was aware that Model S and X cars made from 2013 to 2018 had a "suspension defect," yet refused to cover repair costs, even for vehicles still under warranty. A federal judge in California dismissed claims from one plaintiff in January 2023, ruling he had failed to show Tesla "knew or should have known" of an alleged defect in his car. The class-action lawsuit, however, didn't cite the Tesla records Reuters reviewed for this article. The other two plaintiffs voluntarily dismissed their claims without prejudice, which could allow them to refile a similar case later. Tesla has had nine recalls in the United States for steering and suspension issues since 2018, NHTSA records show. Most affected a relatively small number of vehicles. The largest was in 2018, to replace steering-rack bolts on more than 70,000 Model S vehicles because of the risk that corrosion could cause a loss of power steering. Tesla engineers were still examining the aft-link failures as recently as 2022, company records show. In February of that year, one company data review noted that the multiple revisions to the part, over several years, had finally fixed all "major flaws." Earlier, in April 2019, Netherlands-based Tesla Product Support Engineer Ralf van Gestel presented findings on the aft-link issue in an analysis. He found Tesla had spent nearly USD 4 million on suspension warranty repairs globally for models S and X over the previous 12 months. Aft-link failures, often on cars less than two years old, accounted for the largest portion, USD 1.3 million. In the 12 months before van Gestel's analysis, Tesla had replaced about 11,000 of the parts, about two-thirds of them under warranty, the data collected by van Gestel showed. In September 2020, Tesla engineers in Europe examined the long history of aft-link failures. Valentin Oetliker, an engineer and company intern based in France, expressed alarm that the part had a "high failure rate" despite a redesign. In an analysis written for other engineers, he noted that many customers were dissatisfied at paying for
based in France, expressed alarm that the part had a "high failure rate" despite a redesign. In an analysis written for other engineers, he noted that many customers were dissatisfied at paying for the repairs in newer vehicles. At the time, about 5% of the 12,858 Model S and Model X vehicles on the road in Tesla's southern Europe and Middle East markets had needed repairs because of aft-link failures, according to a Reuters calculation of the data reported by Oetliker. Oetliker did not comment. That same month, in a September 3, 2020, letter to U.S. regulators, Tesla denied there were any defects with the same aft links that its engineers had determined were flawed. It told NHTSA it would not recall the part for U.S. customers, despite its recall of the same part the month before in China. The company told NHTSA it had voluntarily recalled the aft link and another suspension part under pressure from China regulators, even though it disagreed with their assessment, because fighting them presented a "heavy burden." At the time, Tesla was looking to ramp up production at its newly built Shanghai Gigafactory, which would become the world's most productive and profitable electric-vehicle plant. By contrast, Tesla took a firm stance with U.S. regulators. "There is no defect in the subject components and no associated safety risk," a senior Tesla lawyer wrote to NHTSA, again blaming owners: "The root cause of the issue is driver abuse." The letter cited a drastically lower failure frequency than the 5% failure rate for the aft link in the markets that Oetliker analyzed. Addressing both aft links and the other part it recalled in China, a rear suspension upper link, Tesla told NHTSA: "The occurrence of such failures in China (approx. 0.1%) and elsewhere (less than 0.05%) remains exceedingly rare." NHTSA has not ordered Tesla to take any action on the parts the company recalled in China. The agency has not explained why. The U.S. safety regulator, however, has since 2020 been investigating a similar front suspension part known as a fore link, and its risk of breaking, in models S and X. The agency has said it received dozens of complaints about the part breaking, including several about failures happening at highway speeds. NHTSA confirmed to Reuters it was investigating the fore link. The agency also launched a probe into power-steering outages in July. NHTSA declined further comment on both inquiries. In July 2021, Henrietta Wooten, a retiree outside St. Louis, was backing her 2015 Model S out of the driveway when she heard a "screeching noise" and a "big old thump," she said in an interview. The wheel had collapsed after a break in the fore link that NHTSA is investigating. The repair cost her about USD 980. In March, the agency asked Tesla for more information on fore-link failures, including any reports of fires related to the part breaking. Such a part failure could cause a fire if the battery, which is embedded in the floor of Tesla vehicles,
on fore-link failures, including any reports of fires related to the part breaking. Such a part failure could cause a fire if the battery, which is embedded in the floor of Tesla vehicles, scrapes the ground, said Michael Brooks, executive director at the Center for Auto Safety, a consumer advocacy group. Suspension parts are critical for safety because a failure "pretty much means that your car is going to have some sort of loss of control and a much higher chance of a crash," Brooks said in an interview. Tesla owners have filed about 260 complaints with NHTSA over suspension and steering problems this year, compared to about 750 for General Motors and 230 for Toyota. That makes Tesla's complaint rate far higher when considering the number of GM and Toyota vehicles on the road. GM has a 21% share of U.S. cars in operation; Toyota, 15%. Tesla's share: less than 1%, according to data analytics firm Experian. TROUBLE IN NORWAY When Tesla engineer van Gestel examined common suspension problems, he found control-arm failure failures had been the second-most expensive failure for the automaker in the 12 months preceding April 2019. Control arms on the Model X had failed more than 3,000 times during that period, despite a redesign of the part. The engineer found that front upper control arms in models S and X were prone to early failure, with most replacements happening within 2-1/2 years of ownership, he said in a report for Tesla engineers. Van Gestel recommended "next steps," including "improve quality" of the part and "charge back supplier" for the failures. The records do not make clear whether Tesla ever received any money back from suppliers. Van Gestel did not respond to a request for comment. The control-arm problem continued for years, across Tesla's model lineup. The automaker replaced front upper control arms on about 120,000 cars globally from January 2021 through March 2022, according to a Reuters analysis of repair records included in the Tesla documents. Most of the replacements came on the Model 3, Tesla's least expensive vehicle. Many of the customer complaints were for noise. Tesla paid for most of the 120,000 vehicles repaired under warranty, but owners with older cars also paid for 31,000 repairs, the Reuters analysis showed. An upper control arm can cost about USD 90 on a Model 3 and more than USD 280 for a Model X, according to invoices provided by customers. That doesn't include labor, which can run USD 200 an hour or more for a Tesla technician. Such suspension defects are rare on relatively new cars, said David Friedman, former acting NHTSA administrator under the Obama administration. "You certainly shouldn't be expecting suspensions to fail within the first few years of owning a vehicle," Friedman said in an interview. Former service managers and technicians in Norway, the country with the most Teslas per capita, said in interviews that they were inundated with angry customers complaining of early control-arm failures. They
managers and technicians in Norway, the country with the most Teslas per capita, said in interviews that they were inundated with angry customers complaining of early control-arm failures. They said that tension increased as the automaker, starting in 2017, told service employees to push the cost of the frequent and repeated failures onto customers to cut warranty and goodwill repair costs. One manager said he was forced out after resisting the company's push to blame customers for the failures of faulty control arms. "I said: 'Now, we have to quit talking bullshit,'" he recalled. A service technician said he started in 2018 and quit a year later over the issue. "I wasn't doing anything else than just constantly changing those control arms," he said. One senior manager defended the company's push to cut costs, saying some service managers were giving away repairs in Norway at a rate that would "bankrupt any company." 'WOMP-WOMP-WOMP' The problematic control arms and links were cheap and simple parts. But two more complex and expensive Tesla components - steering racks and axle half shafts - also frequently failed on newer vehicles. Trace Curry had a slew of problems with his 2016 Model X. After paying about USD 110,000 for the vehicle, the Cincinnati surgeon had to replace the control arms twice, once under warranty and once at his own expense. Later, after the four-year warranty ran out, he paid about USD 10,000 more out of pocket for suspension and drive-axle parts that failed, according to invoices Curry provided to Reuters. In 2018, Curry had to replace both front half shafts, the left and right drive axles that connect to the wheels, under warranty. Then he had to pay about USD 1,500 last year to replace both of them again. When suspension parts rust or wear out, the first symptom can be an annoying squeak, frustrating some Tesla drivers who paid six-figure sums for a luxury vehicle that promised whisper-quiet, breakneck acceleration. "It sounds like you're driving a jalopy from the 1970s," Curry said. "It defeats the purpose of the high speed if you're afraid that your front wheels are going to fall off if you accelerate quickly." Tesla tracked noise complaints on the new Model 3 in 2018 and 2019, company records show. Repair centers handled about 300 cases where owners who had half shafts or wheel hubs replaced reported a wide array of strange noises alerting them to the problem. The complaints included descriptions of "clicking," "clunking," a "whir," a "loud bang" or a "womp-womp-womp" noise increasing with speed. In those 300 cases, Tesla tracked "days to failure," the total number of days between the start of a vehicle's new-car warranty and a repair. The average was about eight months. When the half shafts failed in Curry's Model X, the SUV vibrated severely, especially under acceleration. He called the multiple replacements "insane" in a car that new: "Have you ever heard of anybody having to replace the axles when you didn't have
SUV vibrated severely, especially under acceleration. He called the multiple replacements "insane" in a car that new: "Have you ever heard of anybody having to replace the axles when you didn't have an accident?" Tesla engineers heard about it quite a lot, company records show. One repair analysis showed the company replaced nearly 66,000 half shafts between January 2021 and March 2022. Customers paid for about 10% of those repairs. Lars Heykers, a senior technician in Belgium, wrote on a company messaging system in September 2021: "We have a car which already had the newest revision of the half shafts 6 weeks ago, and the same issue has returned. Is there another fix for this or just replace them again?" More than one engineer made a point of saying the issue had nothing to do with damage caused by customers. Engineer Anastasia Skolariki, who was troubleshooting repair problems and customer complaints for Tesla in Europe, wrote in May 2020 to other engineers and technicians that the problem was a design issue "and not abusive behavior from the customer side." The company needed to cover repairs for cars under warranty, she said, "no matter how many times the vehicle comes to Service with the same issue." Neither Heykers nor Skolariki responded to requests for comment. In 2019, a Tesla engineer in Shanghai flagged a failure on a brand-new Model S with 160 kilometers (99 miles) on it. The car's rear left half shaft had broken into three pieces when the owner stepped on the accelerator; one of the pieces pierced the electric-drive unit that powers the car. Another problem seen in brand-new Teslas: sudden power-steering outages. In May, less than two months after buying his 2023 Model Y, Jamie Minshall felt it jerk suddenly to the right while driving outside Portland, Oregon. A dashboard error message popped up: "Steering assist reduced," indicating a loss of power-steering. Losing the power function makes the steering wheel suddenly more difficult to turn. "Fortunately, I was able to hit the brakes quick enough and not go into the ditch, but, yeah, it was pretty terrifying," said Minshall, who has raced cars as a hobby. "It tried to kill me." In July, NHTSA began investigating power-steering outages in 2023 Model 3 and Model Y vehicles. Between late 2017 and early 2022, more than 400 Model 3 or Model Y owners told the automaker about power-steering failures, according to a Reuters review of customer messages sent through Tesla's service app. Some reported outages of other safety systems at the same time. The steering complaints accelerated in late 2021 and early 2022. One Tesla owner from Charlotte, North Carolina, who is not named in the Tesla records, reported to the automaker on Dec. 27, 2021: "Our Model Y started to buck" before power steering and stability control stopped working. Two weeks later, a Model Y driver near White Plains, New York, told service technicians: "I cannot drive the car. None of the power functions work." When NHTSA
and stability control stopped working. Two weeks later, a Model Y driver near White Plains, New York, told service technicians: "I cannot drive the car. None of the power functions work." When NHTSA started its investigation into power steering in late July, it did so on the basis of complaints from 12 drivers. Tesla had known of more than 30 times that number of complaints since 2017 on models 3 and Y, its records show. NHTSA declined to comment on whether Tesla had disclosed consumer complaints about power steering or safety incidents to the agency. Andrew Lundeen, of Santa Rosa, California, was driving his wife's 2018 Model 3 in August when he rode over a speed bump and lost power steering. Lundeen said in an interview that a Tesla service manager told him that a power-steering connector had corroded. The manager said the likely cause was a car wash, which he described as a known problem. Lundeen paid USD 4,400 to replace the steering rack and a wiring harness. "This is the only car that I've ever heard of where a car wash can damage the wiring," Lundeen recalled telling the manager. Lundeen said he was so shocked by the manager's frank explanation of Tesla's part failures that he wrote it down: "All I can tell you," the Tesla manager said, "is we're not a 100-year-old company like GM and Ford. We haven't worked all the bugs out yet."
ElectricPe opens mobility centres in Bengaluru to ease EV ownership , a leading electric vehicle (EV) solutions player, has opened virtual and physical mobility centres to simplify . At these stores or via the ElectricPe App, customers can identify and test drive electric two-wheelers (E2Ws) from a wide variety of OEM brands before purchase, as well as choose charging solutions for their home or work. Customers can also take advantage of attractive subscriptions, financing options, and assistance with vehicle exchange, insurance, and registration at the mobility centres, the company said. The stores are now in Bengaluru, with more outlets planned for 2024. Additionally, with an EV purchase, customers will gain access to ElectricPe’s complete suite of services, including the setup of a charging point and access to ElectricPe’s dense across India, the company said in a media release. “Mass EV adoption still has two major problems – range anxiety, which we have solved with our dense charging network, and 200+ EV two-wheeler brands to choose from, which creates a lot of confusion. To alleviate consumer confusion, our mobility centres and online apps serve as educational hubs, empowering buyers to make informed decisions aligned with their specific needs,” Avinash Sharma, Co-Founder, and CEO of ElectricPe, said. “Our holistic approach, encompassing test rides, seamless vehicle exchange, access to the comprehensive ElectricPe bundle covering charging, battery ownership, insurance, and more, all under one roof, will be the differentiator,” he added. Co-Founder and CPO of ElectricPe, Raghav Rohila, said, “Our latest initiative will create the accessibility needed to make EV ownership easier, helping further the sector's growth. Additionally, all the offerings and services available in our stores are seamlessly accessible through the ElectricPe App and conveniently delivered to our customer's doorsteps. In just October, our mobility stores facilitated the sale of 6% of Bengaluru’s E2Ws, showcasing the positive impact of our efforts within the city.” In alignment with its commitment to drive widespread EV adoption in India, ElectricPe has established a holistic ecosystem dedicated to and customer support. With ‘The ElectricPe Mobility Center,’ the company aims to address and resolve buyers’ anxiety surrounding EV ownership. More details about the stores can be found at ElectricPe Shop, the release added.
Uniform tax on small, big cars will not augur well for auto industry growth: Maruti Suzuki Chairman New Delhi: The regulatory burden is the highest on , a key segment of the Indian and having a uniform tax structure across all segments of vehicles will not augur well for the sector growth, according to India Chairman RC Bhargava. He also said India's economic growth rate could be higher if the manufacturing sector grows fast, which 'unfortunately' has remained a laggard despite the best efforts of the Narendra Modi-led government at the Centre due to implementation gaps at the ground level. "The burden of regulatory changes on the small cars is far higher than the regulatory burden on big cars and that is changing the whole market behaviour. People who are buying small cars are not buying small cars in near the same numbers. Personally, I think it's not a good thing, either for the car industry or the country," Bhargava said in an interaction on Monday evening. For the healthy growth of the automobile industry, there must be a steady increase in the number of new customers in the car parc. The base of ownership of cars must be increasing every year. Only then when the whole pyramid becomes a larger one, which is able to balance itself, he added. "I don't see that as becoming an inverted pyramid and the car industry becomes an industry where in India there is hardly any growth in the small segment and all the growth takes place in the higher segments. So, that factor has to be kept in mind, the regulatory effect on the car, and that's one argument for not having a uniform rate of tax on all small and big cars," Bhargava asserted. He was responding to a query on his views about having a uniform tax rate across all segments of automobiles. At present, automobiles are taxed at 28 per cent with additional cess ranging from 1 per cent to 22 per cent depending on the type of vehicle. Cars imported as completely built units (CBU) attract customs duty ranging between 60 per cent and 100 per cent, depending on engine size and cost, insurance and freight (CIF) value being less or above USD 40,000. Bhargava, however, said for electric cars, GST has been kept at 5 per cent "whether it's a small electric car or big electric car. There's no differential tax rate there. So, there is already that uniform taxation happening". He also lamented that the auto sector continues to be heavily taxed, which in a way has affected the growth of the industry. "Throughout our history," he said all motor vehicles "have been in the highest tax brackets". In response to a query on the impact of clarification on the definition of SUVs for taxation purposes, he said it "confirms that they should charge 22 per cent (cess) when four conditions are met, which puts it into the 50 per cent kind of tax bracket". "You can't grow an automobile industry with 50 per cent taxation. Where in the world has an industry like automobiles grown with 50 per cent taxation, but it's the wisdom of the
kind of tax bracket". "You can't grow an automobile industry with 50 per cent taxation. Where in the world has an industry like automobiles grown with 50 per cent taxation, but it's the wisdom of the policymakers and the political leadership," Bhargava noted. He said that compared to developed markets like and Japan, where per capita income is far higher, taxes on cars in India are much higher. "Now, somebody needs to think about that, should cars be charged more than the average rate of taxation...? If it is, then we are, in some way, accepting the thing that cars or luxury products should be taxed more than non-luxury products, which is the old socialist way of thinking and taxation," he said. On the overall growth of the , he said India is doing well with "a growth rate of nearly 7 per cent" although next year it looks difficult to achieve that rate "because there are too many international events, which are in the sense of negative headwinds for us or in the rest of the world". "The growth rate could be higher if manufacturing in India could grow fast. Unfortunately, manufacturing in India has still remained a laggard. Mr Modi has given great emphasis to a whole lot of reforms and changes have happened but for some reason, we are not able to make the sort of progress we should be making, something that we need to look at," Bhargava said. He pointed out that one of the main reasons for not achieving the desired growth in the manufacturing sector is due to the gaps in implementation at the ground levels despite the Centre pushing with policy reforms. At a time when India is looking to improve its economic growth, GDP and employment creation, manufacturing is a key input for that, Bhargava said. Also Read:
Maruti Suzuki Subscribe has over 10,000 customers New Delhi: has crossed the milestone of 10,000 new car Subscription sales since its inception in July 2020, signalling a growing demand for tailor-made car buying options. , Senior Executive Officer, Marketing and Sales, India Limited, said, “Since its introduction, the Maruti program has steadily been gaining acceptance among Indian buyers who prefer flexible buying and ownership experience. The model is gradually gaining momentum in the country, and most of the customers for us are based out of Delhi-NCR, Mumbai, Hyderabad, Chennai, and Bangalore. Interestingly, over 50% of the total Maruti Suzuki Subscribe customers have been added in the current financial year. This speaks volumes about the growing inclination of modern customers towards such ownership options. Additionally, Brezza, Baleno, Grand Vitara, and Ertiga are among the most popular subscribed models, accounting for over 53% of the overall subscriptions.” Introduced with the vision of providing flexible and hassle-free vehicle access to customers, Maruti Suzuki Subscribe has quickly gained traction in the Indian market. The service offers customers the convenience of driving a brand-new Maruti Suzuki car without the burden of ownership, including insurance, maintenance, and other associated costs, the company said. Currently offered through 5 partners, Maruti Suzuki Subscribe added 5,000 new customers in the current financial year and registered a growth of 44% in FY24 YTD over FY22-23 YTD. Notably, more than 65% of the subscriptions were from users opting for 3-4 years of tenure period. This further reinforces a growing acceptance of the subscription model among new-age customers who prefer flexible ownership options, the company said in a media release. Maruti Suzuki Subscribe is now available across 25 major cities including Delhi, Gurgaon, Noida, Ghaziabad, Faridabad, Bengaluru, Hyderabad, Pune, Mumbai, Navi Mumbai, Thane, Chennai, Ahmedabad, Gandhinagar, Jaipur, Indore, Mangalore, Mysore, Kochi, Kolkata, Chandigarh, Ludhiana, Lucknow, Nagpur and Visakhapatnam, in partnership with five subscription partners, the release said.
Safeguarding connected cars from cybersecurity threats In an age where technology seamlessly integrates into various aspects of our lives, the concept of has become increasingly prevalent. These modern vehicles boast an array of features aimed at enhancing convenience, safety, and connectivity. However, along with these advancements comes the looming threat of cybersecurity breaches, which can compromise the safety and privacy of both the vehicle and its occupants. "The automotive industry is witnessing a paradigm shift as vehicles become increasingly integrated with digital systems. With this evolution comes the pressing need for robust cybersecurity measures to safeguard against potential cyber threats. As vehicles evolve into sophisticated digital platforms, it’s imperative to stay ahead of emerging cyber threats," cybersecurity firm HackersEra's CEO Vikash Chaudhary said. Here are some essential strategies to fortify the security of your smart vehicle: Stay Updated with Software Patches and Updates: Just like any other connected device, smart cars require regular software updates to address vulnerabilities and patch potential loopholes. Manufacturers often release updates to mitigate newly discovered cybersecurity risks. Hence, it is crucial to stay vigilant and install these updates promptly. Implement Strong Passwords and Multi-factor Authentication: Many smart car features, such as remote unlocking and engine ignition, are accessible through mobile apps or web portals. To prevent unauthorized access, users should set robust passwords and enable multi-factor authentication wherever possible. This adds an extra layer of security by requiring additional verification steps beyond just entering a password. Utilize Secure Wi-Fi Networks: Smart cars often rely on Wi-Fi connectivity for various functions, including software updates and data transmission. However, connecting to unsecured Wi-Fi networks can expose the vehicle to potential cyber threats. To mitigate this risk, prioritize connecting to secure and trusted networks, such as those at home or reputable public hotspots. Disable Unnecessary Connectivity Features: While smart car features offer convenience and connectivity, not all of them may be essential for your needs. Evaluate the necessity of each feature and consider disabling any that you do not frequently use. By reducing the number of entry points for potential hackers, you can minimize the risk of cyber intrusions. Be Cautious of Third-party Devices and Apps: Accessories and applications designed to enhance the functionality of smart cars may inadvertently introduce security vulnerabilities. Before integrating any third-party devices or apps into your vehicle's ecosystem, conduct thorough research to ensure their legitimacy and security measures. Invest in a Comprehensive Cyber Insurance Policy: Despite best efforts, cybersecurity incidents can still occur. To mitigate the financial repercussions of potential cyber attacks or data
measures. Invest in a Comprehensive Cyber Insurance Policy: Despite best efforts, cybersecurity incidents can still occur. To mitigate the financial repercussions of potential cyber attacks or data breaches, consider investing in a robust cyber insurance policy specifically tailored for smart cars. Such policies can provide coverage for damages, liability claims, and recovery costs in the event of a security incident. Stay Informed and Educated: Cyber threats are constantly evolving, making it essential for smart car owners to stay informed about the latest trends and best practices in cybersecurity. Regularly educate yourself about potential risks and mitigation strategies through reliable sources such as manufacturer updates, cybersecurity forums, and industry publications. "Car users can also opt for customised services like real-time monitoring and incident response, vulnerability assessments and cybersecurity consulting from specialised cybersecurity firms. These firms provide round-the-clock surveillance of automotive systems, enabling prompt detection and neutralization of cyber threats. They also conduct continuous assessments to identify potential security weaknesses in vehicle systems, followed by penetration testing to fortify defenses against cyber-attacks," HackersEra's CEO Vikash Chaudhary said. Enable Firewall and Intrusion Detection Systems: Utilize advanced cybersecurity tools such as firewalls and intrusion detection systems to monitor and filter network traffic entering and leaving the smart car. These systems can detect and block suspicious activities, thereby reducing the risk of unauthorized access and data breaches. Encrypt Data Transmission: Ensure that all data transmitted between the smart car and external devices or networks is encrypted using robust encryption protocols. Encryption scrambles the data, making it unreadable to unauthorized parties, thus safeguarding sensitive information from interception or tampering. Regularly Audit Connected Devices: Periodically audit and review the list of devices connected to your smart car's network. Remove any unauthorized or unrecognized devices to prevent potential security breaches. Additionally, consider implementing network segmentation to isolate critical systems from non-essential devices. Implement Physical Security Measures: In addition to cybersecurity measures, physical security also plays a vital role in protecting smart cars from unauthorized access. Store car keys and access devices securely, and avoid leaving them in easily accessible locations. Consider using physical locks or steering wheel locks to deter theft and unauthorized access. Monitor and Limit Data Collection: Be cautious of the data collected by your smart car's onboard systems and connected services. Review privacy policies and settings to understand what data is being collected, how it is used, and with whom it is shared. Opt-out of data collection practices that are unnecessary or intrusive to
Review privacy policies and settings to understand what data is being collected, how it is used, and with whom it is shared. Opt-out of data collection practices that are unnecessary or intrusive to maintain control over your personal information. Practice Safe Driving Habits: Encourage safe driving habits to mitigate the risk of cyber attacks targeting vehicle control systems. Avoid tailgating or aggressive driving, as these behaviors can potentially expose the vehicle to remote attempts. Additionally, remain attentive while driving and be mindful of any unusual behavior or malfunctions in the vehicle's systems. Report Suspicious Activity: If you notice any suspicious behavior or experience unusual system malfunctions in your smart car, report them to the manufacturer or authorized service center immediately. Prompt reporting can help identify and address potential cybersecurity threats before they escalate into more significant issues. While the integration of technology into automobiles offers unparalleled convenience and connectivity, it also exposes vehicles to cybersecurity threats. By implementing proactive security measures and staying vigilant, smart car owners can effectively safeguard their vehicles and personal data from potential cyber intrusions. Remember, the key to a secure smart car lies in staying informed, cautious, and proactive in addressing cybersecurity risks.
UK seeks customs duty concessions on EVs in FTA with India The UK has sought customs duty concessions on exports of electric vehicles to India under the proposed free trade agreement ( ), which is under negotiations, an official said. However, the official said, no decision has been taken so far on the issue. There is a demand to provide concessions on a specified number of vehicles per year, the official added. The fast-growing is catching the eyes of global players. The UK is also looking at phasing out ICE (internal combustion engine) vehicles by 2035, and the British auto market is export-driven. According to experts, the UK's major export destination for vehicles is Europe, and they are looking to diversify their exports. "The UK has sought concessions on electric vehicles from India as part of the ongoing free trade agreement negotiations," the official, who did not wish to be named, said. India's electric vehicles market is expected to grow to one crore units in annual sales by 2030 and create five crore direct and indirect jobs, according to the Economic Survey 2022-23. As per industry estimates, the total EV sales in India stood at around 10 lakh units in 2022. On the back of increasing EV demand, the Indian government is providing fiscal incentives to promote domestic manufacturing of these cars. It is also attracting US major Tesla to set up a plant in India. The government has rolled out production-linked incentives (PLI) schemes for advanced chemistry cell (ACC) battery storage with an outlay of INR 18,100 crore and INR 26,058 crore PLI scheme for auto, auto-components and drone industries. In India, is the leading player in passenger electric vehicles. The company's current EV portfolio comprises Nexon EV range, Tiago EV and Tigor EV. The negotiations for the FTA are underway, and both sides are discussing issues that are slightly complex in nature. So far, 13 rounds of talks have been completed. Issues under negotiation include social security pact, automobiles, medical devices, movement of professionals; rules of origin; intellectual property rights (IPINR ); duty concessions on electric vehicles, scotch whiskey, lamb meat, and chocolates; and liberalisation of norms in services sectors like banking and insurance. India and the UK launched the talks for a free-trade agreement (FTA) in January 2022, with an aim to conclude talks by Diwali (October 24, 2022), but the deadline was missed due to political developments in the UK. There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.
Complaints about car financing, insurance race up UK ombudsman's in-tray Britain's Financial Ombudsman Service ( ) said on Thursday that complaints about financing and insuring cars have spiked as claims management firms pile in with "speculative" claims that are mostly rejected. FOS, which handles complaints that people are unable to settle directly with a financial firm, said that in the second quarter of this year vehicle-related complaints shot up to become 25% of all cases, reaching a five-year high. There were 4,622 complaints about car hire purchase agreements, 1,569 about conditional sales, or where a customer owns the car after all payments are made, and 4,036 complaints about motor . "Buying a vehicle can be costly and stressful, and we're now also increasingly hearing from people worried about whether they can pay their finance deals," Abby Thomas, chief executive and chief ombudsman at FOS, said in a statement. The vast majority of complaints about car finance agreements are being submitted by claims management firms, but the "uphold" rate for complaints from such firms is just 8%, compared with a 42% uphold rate when cases are brought directly by consumers, FOS said. "While professional representatives can play an important role in resolving financial disputes, we're seeing too many speculative and poorly evidenced complaints," James Dipple-Johnstone, deputy chief ombudsman, said. The two other categories in the top five complaints were current accounts at banks - the most complained about product overall - and credit cards. FOS does not charge for handling complaints, but last week it launched a public consultation on new powers to charge claims management firms and other professional representatives.
A second life for EV batteries? Depends how long the first is Global automakers have touted plans to re-use electric vehicle (EV) batteries when they lose power, but competition for battery packs and cell materials, and the appetite for affordable cars cast doubt on this part of the circular economy. An array of startups offers second-life energy storage using old EV batteries. But creating the viable industry envisioned by carmakers such as Nissan would mean fighting off competition from recyclers, refurbishers and the needs of drivers squeezed by the cost-of-living crisis. "The assumption that EV batteries are only going to last eight-to-10 years and then owners will swap them out is just not true," , founder of consultancy Circular Energy Storage (CES), which tracks battery volumes and prices, said. "It's going to be tricky to make second-life work." While a possible solution for buses, trucks and other commercial vehicles, it will take longer for batteries from passenger cars to be re-used at scale. The second-life energy storage idea is in theory simple. As EV batteries' capacity falls below 80%-85% after eight-to-10 years of use, the theory goes, they will be repurposed to power buildings or even balance local and national energy grids. Investors believing in the circular economy, where products and materials are repaired and re-used, have provided around USD 1 billion in funding to nearly 50 startups globally, according to Reuters calculations. In addition, carmakers from Mercedes to Nissan have set up their own second-life operations. The problem is a lack of old EV batteries that shows no sign of easing. The rising average age of fossil-fuel cars on the road - now a record 12.5 years in the U.S. according to S&P Global Mobility - suggests many EVs will stay on the road for years to come even if their batteries are depleted. "The 80% threshold is an arbitrary number that does not reflect the real-life usage of EVs," CES' Melin said. As EVs built a decade ago remain in use, , business development manager for automotive at German second-life battery startup Fenecon, said there was "as good as no market for second-life batteries" at present, although he predicts a "tsunami" of batteries within the next five years. TWICE THE PRICE OF NEW Competition from outfits using EV batteries to power anything from fossil-fuel classic cars to boats pushed prices to USD 235 per kilowatt hour in late 2022, according to CES - around double the price major carmakers pay for new batteries. The long-range Tesla Model 3 has a 75KWh battery pack. At that rate, it would cost USD 17,625 on the used market. Car and battery-makers increasingly offer energy storage systems using new batteries - from Tesla to the UK's AMTE Power and even Croatian electric sports car maker Rimac. Although more energy- and therefore carbon-intensive, recycling also presents another form of competition to re-use as demand for cell materials makes it economically compelling. "The big
Rimac. Although more energy- and therefore carbon-intensive, recycling also presents another form of competition to re-use as demand for cell materials makes it economically compelling. "The big question is, if you have pretty valuable raw materials in a battery and you ask 'how can I get the most out of it?' the answer is recycling might be better," said , head of sustainability at BMW, which has a second-life battery storage facility at its Leipzig plant. DEMAND SURGE Demand for used batteries for storage is likely to soar as intermittent renewable energy takes on a bigger role. By 2030 global battery capacity for grid storage could grow to 680 gigawatt-hours, from 16GWh at the end of 2021, the Paris-based International Energy Agency estimates. Britain alone pays around 1 billion pounds (USD 1.27 billion) annually to switch off wind farms when the grid does not need the power - there is no way yet to store it because of the battery shortage. It also often has to buy electricity from Europe when it has a shortfall. U.S. startup Smartville has found a solution in buying packs from EVs written off by insurers. Because they cannot assess the extent and cost of even minor damage to EVs batteries, entire cars, often with almost 100% battery capacity, have been scrapped. CEO Antoni Tong estimates over 1 GWh of salvaged batteries will hit that U.S. market annually by 2026. He said the company was trying to negotiate directly with insurers because refurbishers and overseas buyers often outbid it at salvage auctions for Tesla batteries. DISAPPEARING INTO THE WILD The biggest issue is people keeping their vehicles longer. , a resident of Coeur d'Alene, Idaho, illustrates the challenge. Last September, he became the third owner of a used 2011 Nissan Leaf he bought for USD 3,750. After 12 years' use, the electric car's driving range had fallen to 40 miles (64 km) from 120 miles. That was no problem for Rivera, who used it to commute 18 miles to work, forgoing the heater in the winter because it drained the battery. He has just sold the car for USD 3,000 to pay down credit card debt, but wants another used EV. "That car handled 90% of my driving needs," Rivera said. "If treated right, it should last another five, six years." Even when their owners part with them, many cars simply disappear - in the UK, for instance, the figure is around 20% - and are often sold overseas. "A Nissan Leaf that's been in the wild for 10 years - there's very limited visibility into where even is that battery?" said Asad Hussain, a partner at Mobility Impact Partners, a private equity firm focused on transportation. "How do you get it back?" Commercial vehicles provide the best hope thus far for second-life batteries, industry officials said. London-based startup , for instance, teams up with bus companies wanting to go electric. They buy the buses, but Zenobe buys and manages the battery, then takes it for second-life energy storage. Since 2017, Zenobe has raised around USD 1.2
up with bus companies wanting to go electric. They buy the buses, but Zenobe buys and manages the battery, then takes it for second-life energy storage. Since 2017, Zenobe has raised around USD 1.2 billion in debt and equity funding. It owns 435 megawatt-hours of batteries in around 1,000 electric buses in the UK, Australia and New Zealand, which should grow to 3,000 buses by 2025. Founder Director said once Britain's 40,000 buses all go electric, they will have 16 gigawatt-hours of batteries on board - about one third of Britain's peak demand in 2022. "That's a gigafactory on wheels waiting to happen," he said. (USD 1 = 0.7851 pounds) (Reporting by in London, Paul Lienert in Detroit and in Berlin, additional reporting by Daniel Leussink in Tokyo; editing by Ben Klayman and Barbara Lewis)
Indian refiners pay traders in dirhams for Russian oil NEW DELHI: have begun paying for most of their purchased via Dubai-based traders in United Arab Emirates instead of US dollars, four sources with knowledge of the matter said. While Western sanctions against Moscow are not recognized by , and purchases of Russian oil may in any case not violate them, banks and financial institutions are cautious about clearing payments so as not to unwittingly fall foul of the many measures imposed against Russia following its invasion of Ukraine. Indian refiners and traders are concerned they may not be able to continue to settle trades in dollars, especially if the price of Russian crude rises above a cap imposed by the Group of Seven nations and Australia in December. That has led traders to seek alternative methods of payment, which could also aid Russia's efforts to de-dollarise its economy in response to the Western sanctions. Previous attempts by Indian refiners to pay traders for Russian crude in dirhams through Dubai banks failed, forcing them to switch back to the US currency. But India's top bank, the (SBI), is now clearing these dirham payments, the sources told Reuters, providing details of transactions that have not previously been reported. The SBI, which has overseas branches including in the United States, did not respond to requests for comment. The prohibits any Western company, such as the insurance and shipping service providers that underpin much of global trade, from involvement in trading Russian crude if the purchase price is above $60 a barrel at the loading point in Russia. That remains the case even if the oil is bound for countries such as China and India which do not recognize the cap. The shift to dirham payments was also triggered by the SBI asking refiners looking to make dollar payments for Russian crude to provide a breakdown of the costs of the oil, freight and insurance, allowing it to vet trade and avoid violating the cap. "The SBI is very conservative in its approach," one of the sources said, even though India does not follow the price cap mechanism and Western insurance and shipping are not used for delivery. Indian refiners typically buy Russian crude from traders at a price that includes delivery to India. An invoice for such a deal seen by Reuters showed traders asking for an average crude price including freight for Urals crude. The document calculated the price of the cargo in dollars and dirhams. The four sources said Indian refiners are buying Russian oil on a delivered basis to mitigate any risks arising during shipping, and so far the calculated cost at the point of loading has been below the price cap. Indian refiners mostly buy Russian crude from Dubai-based traders including Everest Energy and Litasco, a unit of Russian oil major Lukoil. Everest Energy and Litasco did not respond to requests for comment. India's oil secretary last month said Indian companies were not facing any problems in paying for
unit of Russian oil major Lukoil. Everest Energy and Litasco did not respond to requests for comment. India's oil secretary last month said Indian companies were not facing any problems in paying for Russian oil as the latest actions by the West do not impact the trade settlement mechanism. Also Read:
EV insurance market is expected to grow at a CAGR of over 40% New Delhi: The tectonic shift towards non-ICE (Internal Combustion Engine) vehicles in the market escalated the demand for electric vehicles (EVs) in India. Automobile manufacturers have accepted the transition (ICE to EV) with the launch of several models like Tata Punch.ev, Tata Tiago.ev, Volvo XC40, Mahindra XUV 400, MG Comet, and others. From approximately 2 lakh units sold in 2019 to 13 lakhs in 2023, the auto industry witnessed a commendable growth in EV sales. Generally, EVs consist of several components like electric motors, batteries, charging socket(s), and others, thus demanding more care and protection. In light of this many moving parts EV owners or potential owners should consider buying at least comprehensive EV insurance to keep their vehicles protected. However, one challenge is that for buying an EV insurance, owners need to shell out more money from their pockets than their counterpart conventional fuel vehicle owners. There are several Insurance companies providing insurance on EVs like , , , , and many more. As the world moves towards an eco-friendly mode of transportation, insurance on EVs can aid the owners in getting better coverage of their vehicles if any mishap occurs. The insurance coverage covers all the components of an EV during accidental damage. Non-accidental risks, such as damage due to electric surge or water ingress, which are traditionally excluded, can be included through optional add-ons. Insuring an EV differs from an ICE vehicle due to different mileage patterns and customer segments for EVs. Hence experts say that insuring an EV is costlier than similar ICE vehicles. “Variations in vehicle components, such as the heavier battery and the use of more plastics, along with differing manufacturing costs, directly impact the average size of insurance claims following an accident,” said Neel Chheda, Senior Executive Vice President & Head - Auto & Actuarial Analytics, TATA AIG General Insurance. Cost of EV insurance EV insurance coverage consists of several EV vehicle specific components like batteries, charging set-up, electric motors and others. Experts cite that insuring all of these EV specific components is riskier hence they charge a higher insurance premium than ICE vehicles. The cost of EV batteries accounts for nearly 60% of the total vehicle cost while the cost of the motor would vary based on the model of the vehicle. It may range from INR 20,000 (roughly for two wheelers) to INR 1,00,000 (roughly for four-wheelers). The service cost difference depends on various factors like periodic maintenance. For example, typical maintenance seen in internal combustion engine (ICE) vehicles like oil replacement etc. will not be applicable to EV vehicles. Hence, the normal service cost is nil in electric vehicles when compared to traditional ICE vehicles. However, as infrastructure for EVs expands, these costs are expected to decrease over time, says ,
the normal service cost is nil in electric vehicles when compared to traditional ICE vehicles. However, as infrastructure for EVs expands, these costs are expected to decrease over time, says , Head – Motor Product, Digit General Insurance. However, in the event of damage or flooding, it's important to note that most of the parts in an electric vehicle may not be repairable, requiring complete replacement. Expensive components and the need for specialized mechanical expertise in electric vehicles (EVs) generally lead to higher maintenance costs compared to internal combustion (IC) vehicles. IRDAI has stipulated a 15% discount on third-party premium for EVs and a 7.5% discount for hybrid vehicles, which makes it affordable to buy EV insurance. Before buying an insurance for EVs few key components should be noted such as coverage for EV components, repair cost, incentives, discounts, range of coverage, emergency services, and policy flexibility, , President Retail Business, HDFC ERGO General Insurance, told ETAuto. However, the higher purchase cost, increased probability of filing claims, and larger average claim size for EVs, compared to ICE vehicles within a similar segment, contribute to the elevated insurance costs associated with electric vehicles. It has to be noted that every insurance company would offer EV insurance at different costs due to their different add-on cover packages. Though they will cover similar risks and mishaps but the prices may vary across the insurance industry. Apart from taking a look at the insurance coverage, one should also evaluate the insurer based on various parameters like claim settlement ratio, customer complaints, online customer ratings, etc, before zeroing in on an insurer said, Mayur Kacholiya. Mayur Kacholiya further told ETAuto through a table how EV insurance is different from an ICE. Where he says EVs total premium to IDV cost (cost of premium as a percentage of total vehicle cost) also typically tends to be better in comparison to ICE vehicles. The same is illustrated in the illustration below: EV Insurance market growth The Indian EV insurance market in 2023 was around INR 1,000 crores when we talk about insurance premiums, according to industry sources. This figure reflects a substantial growth compared to the preceding years, indicating a positive trend in the EV insurance sector. “The is expected to experience significant growth in the coming years, as more people are switching to electric vehicles due to their lower carbon footprint and potential cost savings on fuel. With this shift, the EV insurance market is expected to evolve to meet the unique needs of electric vehicle drivers, and the market is likely to see continued growth in the coming years”, said Parthanil Ghosh. Talking about the growth of the EV insurance market in India, Chheda from TATA AIG said, it is expected to grow at a CAGR (Compound Annual Growth Rate) of over 40% in the future. However, it's crucial to note that this
of the EV insurance market in India, Chheda from TATA AIG said, it is expected to grow at a CAGR (Compound Annual Growth Rate) of over 40% in the future. However, it's crucial to note that this projection is contingent on the rate of EV adoption, as the growth rate is sensitive to the prevailing trends in electric vehicle usage in the country. Tata AIG aims to maintain a market share of around 8%-9% for EVs in 2024, aligning with their current market share in ICE vehicles. “As part of our strategic focus, we plan to prioritize and overweight our portfolio in favor of electric vehicles throughout 2024,” he added.
Vision 2047: Mega plan for building highways soon India could soon roll out a new mega construction programme, in line with Narendra Modi-led NDA government , replacing Pariyojana to enhance connectivity in the country. The proposed programme will clearly spell out parameters for eligibility criterion of roads to be identified as a national priority coupled with changes in Model Concession Agreement for expeditious infrastructure creation and minimising contract disputes and litigation. "Future projects will be awarded under a new scheme. It will be different from Bharatmala," a senior government official told ET. Contract changes in the works Besides the change in approach, tweaks in Model Concession Agreement (MCA) for all road building contracts are being readied to minimise contract disputes and litigation. "We have studied court cases where government lost out to contractors. Provisions that were found to be unfavourable for government and driving unnecessary litigation will be plugged. The law will be tightened for better project implementation and ensuring better quality roads," a third official said. According to a proposal under consideration, there shall be no arbitration for a dispute involving a claim value up to INR50 lakh. Further, for cases involving higher amounts, neither government nor concessionaire shall be entitled for any pre-reference or pendentelite interest. In addition to this, it has also been suggested that insurance during the concession period (to compensate in cases of project failure) should also include the government arms as joint beneficiaries. Bharatmala progress According to official data, the country has been annually constructing over 10,000 kilometres of (NH) since the launch of Bharatmala in October 2017. The goal of the scheme was to build 74,942 kilometres (km) of NH, of which 34,800 km was approved as the first phase for development (till September 2022) against INR5.35 lakh crore investment. Further, contracts for 27,384 km of highways have been awarded under Bharatmala and the constructed length stands at 15,045 km. While the scheme successfully drove the country into a faster pace of highway construction, there have been concerns around escalated expenditure. BOT approach It is now expected that any remaining NH contracts awarded this fiscal will be under the Build Operate Transfer (BOT) model which entail negligible financial outgo from the exchequer. "The Centre is giving an impetus to BOT projects about 11 stretches aggregating to INR22,000 crore have been put up for bids," said Jagannarayan Padmanabhan, Senior Director - Transport logistics and Mobility - CRISIL Ltd. Sector watchers say these BOT projects will help achieve the goal of awarding 10,000 kms of NH in the current fiscal.
Red Sea disruptions ring India alarm bells The targeted strikes by the and the on militia have increased the worry for policymakers as the disruption around has now begun to impact supply chains apart from making shipping schedules erratic. While the commerce department is working on an inter-ministerial consultation next week to address some of the concerns and ensure that supplies are not affected, exporters said fears of an intensification of the tension in the area will increase costs. Oil prices went up by 2% on Friday with Brent crude futures edging past USD 79 barrel around 9.15pm India time, while US West Texas Intermediate crude futures rose to USD 73.53. Container rates have already soared with the benchmark Shanghai Containerised Freight Index rising 16% week-on-week to 2,206 points. The spot rates for a 20-feet container from Shanghai to Europe saw an 8% increase in a week to top USD 3,103. In India too, prices have gone up but there are other disruptions. For instance, a leading insurance company has stopped providing marine insurance. "The government should impress upon companies to provide insurance as exporters can pay a higher premium. In the absence of a cover, they will have to send the goods uninsured," said Fieo director general Ajay Sahai. On the Amsterdam-Asia route, war risk premiums have increased, from 0.1% in early December to the current range of 0.5 to 0.7% and may go up further in case the tension escalates. A key problem that businesses are now facing is delays as ships are going around the Cape of Good Hope, which is taking longer and they have to sail for an additional 14 days or so. Sources added that the impact is likely to be more for the shipping lines that provide weekly container shipping service. They added that as only the detour of ships is taking around two extra weeks, it's natural that the services will be impacted and the less availability of containers will also be felt soon. Sahai said some of the shipping lines are not sticking to the schedule and are even unwilling to get a new date on when they intend to set sail. A longer sail time will also impact container availability in the market. Commerce department officials, who are keeping a close tab, said supplies haven't been impacted so far but there may be issues in case the problem persists. On Friday, Tesla announced a shut down of its Berlin plant from January 29 to February 11 due to delays in supply chains. According to estimates, around 10-15% of global shipping passes through the Red Sea and its vital link for commercial goods, including seaborne oil and LNG. Around 40% of Asia-Europe trade passes through this route.
Russian insurance shores up oil exports to top buyer India are playing a growing role facilitating the country's shipments to India, its biggest buyer, data obtained from trade and shipping sources shows, helping to protect Moscow's export revenue despite western sanctions. Russian firms provided insurance cover for 60% of Moscow's oil cargoes to India in July, up from 40% in December last year, according to Reuters calculations based on the vessels' documents. By using n insurers, Moscow can sell the oil above a USD 60 per barrel price cap that the Group of Seven (G7), the European Union and Australia imposed aiming to limit Russia's oil revenue following its invasion of Ukraine. Over 60% of Russia's seaborne oil exports go to India. Western services such as shipping and insurance can only be used for Russian cargoes sold at or below the price cap. Russian companies providing the insurance for exports to India in July included , Rosgosstrakh, Alfastrakhovanie and VSK Insurance. Prior to the Ukraine war, shippers mainly used large western insurers for protection and indemnity (P&I) cover. Earlier this year, India extended approval to several Russian insurers for providing marine cover to tankers after state-run Russian National Reinsurance Company provided a financial guarantee. In July, India overtook China to become the top buyer of Russian oil, even with China receiving pipeline and seaborne deliveries. For seaborne cargoes alone, India has been the largest market for Russian oil since an EU embargo on Moscow's oil took effect in 2022. Russia's leading insurer Ingosstrakh was the largest insurance provider for tankers carrying Russian oil to India in July, the data showed. Ingosstrakh said in an email response to Reuters that its "relations with India are long-term - the company has been present on this market since 1967", adding that it was not able to assess its share or a share of Russian insurance of oil tankers supplying to India. Ingosstrakh also said that its entire shipping P&I portfolio accounts for less than 1% of its total premiums. Rosgosstrakh declined to comment. Alfastrakhovanie and VSK Insurance did not reply to Reuters' requests for comments. Insurance cover for the remaining 40% of tankers that shipped oil to India in July was provided by western companies. Russian insurance companies are mostly used by oil shippers with strong links to Russia, such as Russian shipping company . Shipping firms based in countries such as Greece, the United Arab Emirates and China more often use western insurance when transporting Russian oil, the data shows. While many western insurers withdrew from covering Russian oil shipments for fear of breaching the , some still provide cover.
Global automakers such as General Motors, Volkswagen face electric shock in China If global automakers think they can extend their dominance in China into the electric era, they may be in for a shock. Kings of the combustion age such as and are falling behind local players in the booming electric vehicle (EV) market in China, a country that's key to funding and developing their electric and autonomous ambitions. For Beijing office worker Tianna Cheng, the main dilemma when she was buying a 180,000-yuan ($27,000) crossover was whether she should go for a car instead, or a Nio; she did not seriously consider overseas marques. "If I was buying a gasoline car, I may have considered foreign brands," the 29-year-old said as she drove home from work. "But I wanted an EV, and other than , I saw few foreign brands applying advanced smart technology properly." Buoyed by demand from consumers like Cheng, are rocketing in China's roughly $500 billion auto market, the world's biggest. In the first four months of 2022, the number of new energy passenger cars - pure EVs and plug-in hybrids - more than doubled from a year earlier to 1.49 million cars, according to data from the China Association of Automobile Manufacturers. The cleaner technologies accounted for 23% of China's passenger car market, where overall vehicle sales fell 12%, reflecting a steep decline in demand for gasoline cars. There are no foreign brands among the top 10 automakers in the new energy vehicle (NEV) segment this year, with the notable exception of U.S. electric pioneer Tesla in third place, according to China Passenger Car Association data. All the rest are Chinese brands, from BYD and Wuling to Chery and Xpeng. China leader BYD has sold about 390,000 EVs in the country this year, more than three times as many as global leader Tesla sold there. The top-ranked traditional carmaker is Volkswagen's venture with FAW Group, in 15th place for EV sales. Cheng said that overseas marques, whether the Buick Velite 7 or Volkswagen's ID. series, failed to provide what she was looking for: an EV capable of giving her the "comfort" of having a smartphone-like experience in her vehicle. "Foreign brands are so far from my life and lifestyle," said Cheng, whose digital assistant handles connections to apps like Alipay and Taobao and "does everything for me from opening the windows to turning on music", while her car software provides over-the-air updates. It's quite a reversal. Global brands have dominated in China since the 1990s, typically winning a collective 60-70% share of passenger car sales in recent years. In the first four months of 2022 they captured 52%, with their April monthly share at 43%. Signalling the scale of the challenge facing traditional automakers, Nissan CEO Makoto Uchida told Reuters that some brands "could disappear in three to five years" in China. "Local brands are becoming stronger," said Uchida, who was formerly Nissan's China chief, adding that the quality of EVs from
that some brands "could disappear in three to five years" in China. "Local brands are becoming stronger," said Uchida, who was formerly Nissan's China chief, adding that the quality of EVs from Chinese makers had improved rapidly, with advances being made in the space of months. "There will be a lot of transformation in China and we need to carefully watch the situation," said the CEO, adding that carmakers had to be nimble in the design, development and launch of new models. "In those aspects, if we were slow, we would be left behind." 'HI-TECH NATIVES' Bill Russo, a former Chrysler executive who now heads Shanghai-based consultancy Automobility, said global brands need to turn the situation around quickly because they controlled less than 20% of China's only growth auto market. "Chinese brands are wining the race to EV," said Russo, adding that consumers' shift to cars that are essentially smartphones on four wheels appeared irreversible and that traditional carmakers were having trouble keeping up. "I think it's a secular shift toward hi-tech," he said of the consumer demand for a "user-centric digital services experience" with a focus on interface, connectivity and apps. "Traditional companies are not hi-tech natives." Volkswagen Group brands, including Volkswagen, Audi, Bentley, Lamborghini, Porsche and Skoda, have led the market for much of the past two decades, alongside General Motors marques such as Buick, Chevrolet and Cadillac. The two global groups had overall auto market shares of almost 13% and 12% respectively in China last year, according to LMC Automotive. Detroit giant GM also has a 44% stake in the locally controlled SAIC-GM-Wuling Auto (SGMW) venture, and includes its sales in group numbers, though SGMW does not make American brands, only Wuling and Baojun cars. GM is now focused on winning over younger buyers in big cities that have hitherto largely snubbed its models according to two people familiar with the automaker's business in China. The group has announced electrification plans to spend more than $35 billion globally by 2025, including more than 30 new EVs, over 20 of them in China, starting this year with the launch of the all-electric Cadillac Lyriq crossover SUV. The two sources said the Lyriq launch would be followed by an electric Buick SUV and a smaller, sportier electric crossover, both also planned for as early as this year. Sales of Buicks have declined 32% over the last five years to 828,600 vehicles in 2021, while Chevrolet has shrunk more than half to 269,000 vehicles, according to LMC Automotive. GM told Reuters it was aiming to install capacity to produce 1 million EVs a year by 2025 in China, adding that demand for the Buick Velite NEV family and Chevrolet Menlo EV "both grew significantly" in 2021 and the first three months of this year. It said it was deploying smart technologies including hands-free driver assistance on highways, "aviation-grade" cyber security and over-the-air software updates.
the first three months of this year. It said it was deploying smart technologies including hands-free driver assistance on highways, "aviation-grade" cyber security and over-the-air software updates. AUTOBAHN SPEED? Volkswagen, which is spending around $55 billion globally on EVs by 2026, launched its new-generation of ID. series in China early last year but missed its goal of selling 80,000 to 100,000 cars last year. It aims to sell 160,000 to 200,000 ID. cars this year, though it has sold only 33,300 through April. A key concern for foreign brands, according to one of the people close to GM plus a Volkswagen insider, is that their new EVs are being designed more for American and European markets in mind, with a heavier focus on performance and durability. "Autobahn speeds? In most big cities in China traffic is so congested people can't even drive above 60 km/h on most days," said the source close to GM, who is familiar with the automaker's product plans and product-development processes. Volkswagen said NEV demand in China was strongly linked to the "smart car" theme, adding that it was investing in local R&D, especially in software. "Our strategy will enable us to achieve our ambitious targets in China. By 2030, we also want to be the market leader in e-vehicles and thus ensure that Volkswagen remains the number one in China in the future," it added. The challenge for global brands is to find the formula to win over consumers in big cities with disposable incomes, like Cheng in Beijing and Li Huayuan, a civil engineer from Shanghai. Li only half-heartedly considered Japanese and German brands when he bought his BYD electric sedan last year for 290,000 yuan including insurance. "Seems to me only Tesla stands out when it comes to American brands," he said from his parked BYD car in the Sichuan provincial city of Mianyang where he's working on a project. "The other brands don't even look competitive to me."
Next leg of ‘Name Your Skoda’ campaign for new compact SUV begins New Delhi: Skoda Auto India has ushered in the New Era with the announcement of the all-new compact SUV. Taking a stride further into the New Era with user engagement and involvement, the company has also announced ‘ ’, a campaign where participants contribute to what the name of will be. , Brand Director, Skoda Auto India, said, “India is driving growth for Skoda Auto globally. The key enablers of this so far have been the first products specifically developed for India – the Kushaq and the Slavia. These cars, apart from being built on an India-specific platform, have also been named keeping legacy, heritage and culture in mind. Kushaq, for instance, is from the Sanskrit word for an emperor. Slavia is the name of Skoda’s first ever product, a bicycle. The naming process of a car is important for us. With ‘Name Your Skoda’ we want to extend this tradition to our upcoming all-new SUV and want the people, customers and fans to be involved in the naming process of their new car. We look forward to people across India embracing our new family member, which is locally developed, locally engineered and locally manufactured.” The initiative: Name Your Skoda’ is a campaign that enables the involvement and engagement of users, customers and the Fans of Skoda in picking the name for a car that will hit the roads in 2025. This is a step further in Skoda Auto India’s endeavour for listening to people, fans and customers. An endeavour that began with the MQB-A0-IN platform – that is developed with a focus on safety (developed with a 5 star Global NCAP rating in mind), on reasonable cost of ownership (including insurance) while retaining the Skoda DNA of design, agility and dynamics --and Skoda Auto India’s customer touchpoint expansion to be closer and more accessible to customers. The naming tradition: It is a tradition going back to the company’s first ever full-fledged 7-seater luxury 4x4, the Kodiaq, in 2017. The name reflects the qualities of both, the Kodiak bear and the Kodiak Archipelago to the south of Alaska, USA that it inhabits. The nomenclature is a reflection of the beauty, grandeur and toughness of both the bear and the terrain it calls home. The Skoda Kushaq takes this legacy forward and the all-new compact SUV, that will make its world debut in India in March 2025, will also follow Skoda’s SUV family naming tradition. The next leg - Polling contest: Through ‘Name Your Skoda’, participants have suggested names for the compact SUV that begins with the letter ‘K’ and ends with the letter ‘Q’ with one or two syllables. The campaign resulted in over 1,30,000 names with close to 20,000 unique names. In the next leg, participants can visit the campaign microsite, nameyourskoda.com and cast votes for the shortlisted names and also suggest new ones if not done already. Participants can also share their favourite name with #NameYourSkoda on Facebook, Instagram or X (formerly Twitter)
cast votes for the shortlisted names and also suggest new ones if not done already. Participants can also share their favourite name with #NameYourSkoda on Facebook, Instagram or X (formerly Twitter) channels. The winner of this naming contest stands the opportunity of owning this all-new Skoda compact SUV - being one of the first owners when it hits roads in the first half of 2025. Another 10 winners will get to visit Skoda Auto in Mlada Boleslav including the very impressive Skoda Museum, and also a tour of Prague, one of the most attractive cities in Europe. The next leg of the campaign starts from March 28, 2024 and runs till April 12, 2024. The ‘Name Your Skoda’ aims at inculcating a sense of pride and belonging among participants whenever they see this all-new SUV on the roads after its world debut in India. The Jury: The jury for this campaign comprises of Martin Jahn - Member of the Board of Management for Sales & Marketing, Skoda Auto; Piyush Arora - Managing Director and CEO, Skoda Auto Volkswagen India; Jan Bures – Executive Director, Sales, Marketing and Digital, Skoda Auto Volkswagen India; and Petr Janeba - Brand Director, Skoda Auto India. The car: The all-new compact SUV is Skoda Auto India’s first ever foray into the compact SUV segment. This SUV is based on the MQB-A0-IN platform, the same as the one of the Kushaq SUV and the Slavia sedan. The MQB-A0-IN was specifically developed for India by teams in India and the Czech Republic with an eye on versatility, safety, dynamics while focussing on localisation, low maintenance costs and a hassle-free ownership experience. The Kushaq SUV debuted in India and the world in July 2021 and the Slavia sedan in March 2022. Since then, these two India-developed cars have taken Skoda Auto India to witness its biggest year in sales and take the shortest time to achieve the landmark of over 100,000 cars sold. The all-new compact SUV will be the third all-new, India-specific product developed by Skoda Auto India.
Kia presents global EV strategy, 3 new models at ‘EV Day’ in Korea, set to be held annually Kia Corporation Thursday unveiled three new small- to medium-sized electric models at the brand’s annual Day in Korea, reaffirming its ambitious global strategy to lead and accelerate the ‘EV revolution’. During the event, the brand presented its vision of ‘EVs for all’ and strategy to expand its EV model line-up significantly and rapidly. Having successfully established itself as an electric vehicle brand with the launch of the EV6 and EV9, it has illustrated how it is now broadening its model line-up further with three new small- to medium-sized electric models that offer more people greater options and access to EVs . The presentation featured the debut of the EV5, a compact electric SUV for millennial families, as well as the introduction of two concept models. The EV3 aims to deliver the Kia EV9's benefits in a compact SUV, while the Kia Concept EV4 reimagines electric sedans with a striking design. In addition to unveiling the lineup, the event showcased Kia's EV strategy, aimed at improving customer convenience, reliability, and addressing common concerns, including charging infrastructure. “Kia is keenly focused on providing solutions to the concerns that continue to cause hesitation when it comes to making an EV purchase. We will meet customer expectations by offering a full line-up of EVs at various price points and improve charging infrastructure availability,” Ho Sung Song, President and CEO, said. “As a sustainable mobility solutions provider, Kia’s transition to electric vehicles is a must, not an option. By developing advanced EV technology, bold design, and intuitive services, and applying them to our entire EV line-up, our ultimate aim is to provide Kia’s unique value to as many people as possible. The acceleration towards electrification begins now,” he added. The brand has also unveiled plans to improve various customer experience offerings. This includes streamlining different functions into a user-friendly smartphone application, introducing new services at their physical locations, and providing customers with in-vehicle artificial intelligence (AI) services. “Kia aims to provide sustainable mobility solutions and fulfill the needs of our customers by eliminating perceived difficulties. We want to make the entire customer journey, from digital to offline to in-vehicle interactions, as effortless and enjoyable as possible. This includes the stages of pre-purchase, purchase and post-purchase,” Charles Ryu, Head of Brand and Customer Experience Division, said. “We will continue to fulfill the needs of our customers through new digital platforms and technologies so that we can keep finding better ways to move forward. Because at the core of Kia’s DNA lies our promise to offer more advanced sustainable mobility solutions that improve people’s lives,” he said. The brand’s goal is to achieve an annual sales target of one million electric
Kia’s DNA lies our promise to offer more advanced sustainable mobility solutions that improve people’s lives,” he said. The brand’s goal is to achieve an annual sales target of one million electric vehicles by 2026 and increase it to 1.6 million units per year by 2030, driven by the products and initiatives revealed today. Making EVs more accessible to customers: Kia announced its plan to develop a wide-ranging EV line-up priced from USD 30,000 to USD 80,000, featuring existing models such as the EV6 and EV9, as well as future offerings tailored for the popular B- and C-segments. The brand aims to introduce smaller EVs like the EV5, EV4, and EV3, with prices ranging from USD 35,000 to USD 50,000, to accelerate the widespread adoption of EVs. In emerging markets with slower EV adoption rates, the initial launch will focus on the EV6 and EV9, with subsequent releases of strategic models including the EV5, EV4, and EV3. This approach aims to diversify product offerings and cater to various customer preferences. Efforts are underway to establish a reliable system for EV production and battery supply, with the brand’s goal of expanding its global EV production facilities to a total of eight by 2025. These facilities will encompass research, development, production, and supply, with Korea serving as the central hub. In Europe, it will focus on the production of small and medium-sized EVs, while in China, the emphasis will be on mid to large-sized EVs. Strategically designed EV models tailored for emerging markets will be produced in India. Kia also plans to introduce a diverse range of EV models in North America, in response to the Inflation Reduction Act (IRA). Furthermore, the brand is actively establishing battery joint ventures to ensure a stable global battery supply system in sync with its global EV production network. Kia EV model line-up: Each EV model plays a key strategic role in accelerating the EV transition by expanding the appeal and democratization of EV models to an ever-broadening customer demographic. While each model is created uniquely to meet specific and diverse customer needs, they share common elements such as the brand’s cutting-edge electric platform technology, the innovative ‘Opposites United’ design philosophy, and the brand’s sustainable color, material, and finish (CMF) strategy. The latter entails incorporating sustainability at scale through action, such as using ten must-have sustainable items in the construction of each model, including bio plastic, bio paint and recycled PET or fishing net carpet. Kia EV5 SUV: he Kia EV5, the third dedicated BEV in its line-up, is built on the brand’s dedicated EV platform, E-GMP. It introduces a new era of electric mobility and distinctive SUV design. Featuring a form shaped by the brand’s unique design philosophy ‘Opposites United’, it combines exceptional versatility and outstanding comfort with advanced technology, dynamic performance, and pioneering safety to deliver a
the brand’s unique design philosophy ‘Opposites United’, it combines exceptional versatility and outstanding comfort with advanced technology, dynamic performance, and pioneering safety to deliver a harmoniously balanced vehicle. The EV5 features an interior that completely reimagines the vehicle’s interior space. Drawing additional inspiration from the recently launched larger EV9 SUV, it offers an extensive interior space that is closer in concept and execution to a home lounge than a traditional car cabin. Electric Powertrain and driving experience: The EV5 will be offered the company’s dedicated EV platform, E-GMP, providing a solid foundation for the vehicle's performance and contributing to its excellent overall driving dynamics. Production of the EV5 will take place in both China and Korea, and the Chinese market will have access to three variations: standard, long-range, and long-range AWD. The standard model, equipped with a 64kWh battery pack and a 160kW motor, is expected to have a driving range of 530km per charge according to the Combined Charging and Load Cycle (CLTC) standards. The long-range model, featuring an 88kWh battery and the same 160kW motor, aims to achieve a range of 720km per charge. The long-range AWD model will feature an 88kWh battery pack and a combined output of 230kW, with a front-wheel 160kW motor and a rear-wheel 70kW motor. With AWD model, Kia is targeting a driving range of 650km based on the CLTC standards. Additionally, the model offers fast-charging capability, allowing the battery to be charged from 30% to 80% capacity in just 27 minutes. For Korea, all variants of the EV5 models, including standard, long-range, and long-range AWD versions, are in development, with potential adjustments being considered. The standard model will have a 58kWh battery and a 160kW front motor. The long-range model will feature an 81kWh battery and the same 160kW front motor. The long-range AWD model will include an extra 70kW rear motor, resulting in a combined power output of up to 225kW. The driving range of each model will be tailored to meet market demands. The EV5 battery has been engineered to function effectively throughout all four seasons, even in extreme hot and cold weather. An advanced heat pump system, an already popular feature of the EV6, has been incorporated into the EV5 to manage the battery’s temperature, ensuring consistent performance regardless of external conditions. It will offer regenerative braking system and an i-Pedal system that allows drivers to both slow down and accelerate using a single pedal, thereby minimizing fatigue, and enhancing the comfort of driving. “The EV market is expanding from one catering to the smaller early-adopter group to a more broader mass majority of customers. As a leader in the great EV transition, we have quickly expanded our EV line-up beyond the EV6 and EV9 to include a variety of small- and medium-sized models such as the EV5. Our competitive, growing EV line-up
in the great EV transition, we have quickly expanded our EV line-up beyond the EV6 and EV9 to include a variety of small- and medium-sized models such as the EV5. Our competitive, growing EV line-up will accelerate the popularization of electric vehicles and provide consumers with more options from which to choose,” Spencer Cho, Head of Global Business Planning Sub-Division, said. “The Kia EV5 is not just the next addition to our rapidly expanding EV line-up, but also the embodiment of how we will accelerate the EV revolution. For us, it is the perfect representation of both our future EV strategy and our commitment to accelerating the worldwide transition to EVs,” he added. The EV5 will also be available in a GT, offer further performance features and engaged driving experience. More information regarding the EV5 GT trim will be revealed later. Infotainment and connectivity: The EV5’s spacious, light, well-ventilated cabin is equipped with cutting-edge infotainment and connectivity technology that enhances efficiency and convenience on every journey while enabling occupants to remain safely engaged with the digital world as they travel. It is equipped with the connected car Navigation Cockpit (ccNC) infotainment system and supports over-the-air software updates. It incorporates a Panoramic Wide Display, which combines a 12.3-inch cluster and 12.3-inch infotainment system, along with a 5-inch climate control display. These features provide the driver with comprehensive information and content for a convenient and immersive driving experience. The brand’s new Unified Graphical User Interface (GUI) is applied between the audio-visual, navigation, and telematics (AVNT) screens, and the CDU ensures enhanced information display consistency. Simple-to-navigate menus provide improved usability of EV-specific functions and enable drivers to monitor aspects such as range and EV charging at a glance. The seamless flow of information is further augmented by an optional windshield HUD (Head Up Display). Throughout the cabin, physical buttons are kept to a minimum. Beneath the central AVNT screen, four hidden hard keys provide a startwarmer. The unit provides food warming and beverage cooling functions with a temperature range of 5 to 55 degrees Celsius and a 4.0-liter capacity. It can be used in numerous ways, such as keeping takeout breakfast warm during commutes, heating beverages like tea and coffee, and storing ice-cold drinks and water during summer camping trips. Naturally, the EV5’s interior designers have also thought of a feature to enable occupants to enjoy their food, whether they choose to dine alfresco or in-cabin. It takes the form of the highly versatile Multi Table luggage board, which can instantly be transformed into a table. The Kia Concept EV3: The Concept EV3 represents the brand’s vision for an electric compact CUV that effortlessly blends practicality with the sheer joy of driving. It offers users the technology, practicality and
EV3: The Concept EV3 represents the brand’s vision for an electric compact CUV that effortlessly blends practicality with the sheer joy of driving. It offers users the technology, practicality and design of Kia’s flagship SUV, the EV9, in a compact and accessible form. While those qualities might seem incompatible to some, delivering creative, groundbreaking design solutions by fusing seemingly contrasting sources lies at the heart of Kia’s ‘Opposites United’ design philosophy. And in the case of the Concept EV3, Kia’s designers have drawn a high degree of inspiration from the ‘Joy for Reason’ pillar of the design philosophy. “Joy can be seen as the antithesis of reason. One is a positive, emotional response, and the other is derived from logic. When the two are combined, though, their contrasting qualities merge into a powerful and highly impactful design,” Karim Habib, Executive Vice President, and Head of Kia Global Design Center, said. “With the Concept EV3, the ‘Joy for Reason’ influence is evident in the contrasting qualities of a robust body combined with a dynamic silhouette. In addition, the unexpected treatment of volumes and graphics simultaneously interlock with each other, creating a logical yet emotional design.” The design treatment of the cabin, with the windscreen pushed forward and the long sloping roofline, creates a unique silhouette. The robust architecture of the squared wheel arches, cut with asymmetrical angles, results in an unexpected logic and a strong impression. This, in turn, is contrasted by the wrap-around windscreen and disconnected C pillar, which link the glasshouse surfaces and give the roof a floating effect. Inside, the Concept EV3 blends exceptional practicality with transformative cabin ambience and design. As with the vehicles’ exterior, the ‘Joy for Reason’ pillar plays a fundamental influencing role, merging seemingly opposing values to execute a precise product design language, resulting in a cabin that feels joyful to travel in, while providing ample space to support an active lifestyle once occupants reach their destination. Its cabin also provides an environment that promotes emotional wellbeing. Enhanced by soft mood lighting, the compelling, ultra-clean shape and surface of the dashboard, crafted through exquisitely refined character lines, creates an expansive visual sense to offer up the possibility of boundless opportunities on every journey. Advanced ergonomic seat design and environmentally friendly materials, in keeping with the brand’s ethos of achieving sustainability at scale, combine with mini tables that rotate in length, position, and angle. In conjunction with the movement of the seats, the tables support four customer experience-enhancing modes – Focus, Social, Refreshing and Storage. The folding bench-type rear seat is equally flexible and can be effortlessly folded upward, allowing for storing bulky luggage such as electric scooters and bicycles. The Kia Concept EV4: Redefining the
folding bench-type rear seat is equally flexible and can be effortlessly folded upward, allowing for storing bulky luggage such as electric scooters and bicycles. The Kia Concept EV4: Redefining the essence of the EV sedan The Concept EV4 represents the purity of the ‘Power to Progress’ pillar of the ‘Opposites Untied’ design philosophy. ‘Power to Progress’ focuses on the skills, expertise and creativity developed during Kia’s recent era of design-led transformation. This approach fuels the creation of innovative products that transcend the establishment of new standards for individual vehicle design to redefine entire sectors. Such is the case with the Concept EV4. Its four-door format might suggest it should be categorized as a sedan. However, the model's potent and impactful lines represent not just another sedan, but an entirely new type of EV sedan that stands as a symbol of innovation. Inspired by the ‘Power of Progress’ and manifested through a harmonious fusion of confident, geometric diagonal character lines and rich yet technical surfaces, the Concept EV4 represents a new value, approach, customer experience, and typology. Aspects such as the evocative sleek low nose, the elongated, dynamic long-tail silhouette, and the technical roof spoiler, all attributes reminiscent of sports and racing cars, affirm the EV4’s status as an entirely new type of EV sedan. An aggressive facial impression complements the Concept EV4’s progressive, technological silhouette. Featuring a wide, imposing stance, with headlamps located vertically at the extreme outer edges of the hood and front bumper, the model further symbolizes the brand’s determination to push boundaries and accelerate the EV Revolution. The interior features a sleek and spacious horizontal layout, incorporating stylish design elements that prioritize the driver's experience without obstructing their view. To achieve this, Kia designers have placed an air conditioning control panel that can be neatly stored in the center console when not in use and applied pin-style air vents that offer the flexibility to change patterns, among other refinements to the interior design. The cocoon-like ambience of the cabin enables the driver to engage with the vehicle in a new and unobtrusive way. Presented via twin digital screens, a slimmed-down instrument panel delivers subtle levels of driver orientation, helping clear the mind from distractions and prepare for upcoming tasks. The Concept EV4 comes with a new 'Mind Modes' feature that adjusts ambient lighting and animated ventilation patterns. In ‘Perform’ mode, the driver is presented with all the information they require to perform at their optimum and get the most out of their day. In contrast, ‘Serenity’ mode offers a range of digital graphics to create a more relaxed ambience for reflection and restoration. Expanding charging infrastructure Looking to help address the ongoing challenge of reliable and available charging infrastructure, the brand
a more relaxed ambience for reflection and restoration. Expanding charging infrastructure Looking to help address the ongoing challenge of reliable and available charging infrastructure, the brand is actively expanding global charging networks. In North America, Kia has announced its decision to adopt the North American Charging Standard (NACS) for their EVs starting from the fourth quarter of 2024. This move will grant Kia customers access to approximately 12,000 Tesla Superchargers. As part of a coalition of six OEM groups, Kia is working to build 30,000 fast-charging stations across North America by 2030 to address charging accessibility concerns. In Europe, it has collaborated with four OEM groups to create IONITY, installing 2,800 fast-charging stations along key highways. The aim is to have a total of 7,000 operational stations by 2025, providing efficient charging options for the brand’s EV owners. Kia’s new EV experience: To accelerate the EV revolution and provide a diverse and comprehensive offer to all its customers, the brand will leverage all aspects of the customer journey, thus ensuring the adoption of EVs is as convenient and effortless as possible. This strategy involves optimizing every single customer touchpoint, from pre-purchase to ownership experience. In the first half of 2024, the 'Kia App' is scheduled for release, with the aim of offering customers with a comprehensive and hassle-free experience, from vehicle research and test drives to contract finalization. The app will include an AI chatbot to help customers with their questions and provide quick responses. It will also offer insurance premium discounts linked to insurance products. The standout feature of the app is the ‘E-routing’ function, which uses the current battery status of the vehicle to suggest the best route, considering charging stations. The app's home screen will display location-based information, like nearby restaurants, to improve the user experience. Customers can conveniently manage the charging port and monitor real-time charging status on the home screen using the 'Handle Layer' feature in the app. Kia also aims to enhance offline customer experiences to highlight the advantages of EV models, with existing efforts like the 'Digital City Store' and 'EV Unplugged Ground' in Korea, as well as the 'City Store' located outside Korea. Future plans to establish exclusive EV stores in the United States, Europe, China, and India. Harnessing virtual reality (VR) and mixed reality (MR) technologies, the aim is to provide immersive experiences that motivate customers to engage more deeply with the products. Efforts will also focus on improving the customer service capabilities of global sales representatives in the EV sector and introducing product specialists tailored to specific regions, enabling personalized consultations and test drives aligned with each area's unique characteristics. Kia is set to embrace generative AI technology to revolutionize the
tailored to specific regions, enabling personalized consultations and test drives aligned with each area's unique characteristics. Kia is set to embrace generative AI technology to revolutionize the in-vehicle experience, including partnering with top generative AI model providers to roll out innovative services. This will allow customers to access a wide range of services like schedule management, electric vehicle route optimization, travel planning, entertainment, and emergency support by simply engaging in conversations with the generative AI assistant. Generative AI technology will debut in the 2024 EV3 model, with subsequent integration into the EV4 and EV5, and continuous enhancements via over-the-air updates. Future EV Days Going forward, Kia will continue to showcase new electric models, concepts, and groundbreaking technologies at EV Day each year and leverage the event as a platform for the brand to present its progressive EV strategy and vision for future mobility, the company said.
Oil falls on China growth concerns even as EU weighs Russia import ban MELBOURNE- fell on Monday in holiday-sapped trade in Asia as concerns about slowing economic growth in China, the world's top oil importer, outweighed fears of potential supply disruptions from a looming European Union ban on Russian crude. fell $1.21, or 1.1%, to $105.93 a barrel at 0205 GMT, while (WTI) crude futures fell 99 cents, or 1%, to $103.70 a barrel. Markets in Japan, India and across Southeast Asia were closed for public holidays on Monday. Prices fell after China released data on Saturday showing that factory activity in the world's second-largest economy contracted for a second month to its lowest since February 2020 because of COVID lockdowns. "A slowing to that extent, when China is already suffering from a property bust and worries about its (until recently) increased regulation, is potentially a major issue for commodity markets and the world economy," said Tobin Gorey, a Commonwealth Bank commodities analyst, in a note. On the supply side, Libya's National Oil Corp (NOC) said on Sunday it would temporarily resume operations at the Zueitina oil terminal to reduce stockpiles in storage tanks to avert an "imminent environmental disaster" at the port. NOC in late April declared force majeure on some shipments at Zueitina as political protesters forced a number of oil facilities to suspend operations. Limiting the down side for oil prices is a possible dent in supply with the European Union leaning towards banning imports of Russian oil by the end of the year, two EU diplomats said after talks between the European Commission and EU member states on the weekend. Around half of Russia's 4.7 million barrels per day (bpd) of crude exports go to the EU, supplying about one-fourth of the EU's oil imports in 2020. While Western countries have curbed buying Russian oil as sanctions have hit shipping and insurance for the country's exports, the impact on global supply has been cushioned as India has been picking up lower priced Russian cargoes. Royal Bank of Canada analysts estimated India's crude imports from Russia have grown from less than 100,000 bpd in 2021 to 800,000 bpd in April and expect India to continue ramping up imports as long as Washington does not impose secondary sanctions. Reuters reported on Friday that Indian refiners are negotiating a six-month oil deal with Russia to import millions of barrels per month.
Japan may buy Russian oil from Sakhalin-2 to secure LNG supply: PAJ head may buy Russian crude from the Sakhalin-2 oil and gas project, if needed, to secure a stable supply of liquefied natural gas ( ), the president of the (PAJ) said on Wednesday. But , in general, is not necessary for a stable supply to and Japanese refiners should instead look for sources in other countries where risks are lower, PAJ President Shunichi Kito said, pointing to the hurdles of securing payment, ships and insurance for Russian crude. "At least, as an individual company, we don't intend to stick to Russian crude," Kito, who is also the president of Idemitsu Kosan Co Ltd, told a news conference. Still, LNG from the Sakhalin-2 project in Russia's far east is important as a power generation fuel in Japan, and associated with securing stable LNG from the project may emerge, he said. Japan is sounding out major oil refiners about buying Russian ultra-light crude from Sakhalin-2 to ensure that the plant can continue to operate smoothly, two sources with direct knowledge of the talks told Reuters late last year. Refiners in the world's third-largest economy, which is heavily reliant on energy imports, have suspended Russian oil purchases since mid-2022 after Tokyo agreed to phase them out with other G7 countries in response to Moscow's invasion of Ukraine. They have sought alternatives from the Middle East, such as Saudi Arabia, which boosted Japan's oil dependence on the region to 94 percent. Asked how Japan can lower its reliance to the Middle East, Kito said: "We'd like to diversify our suppliers, but it is difficult to find stable partners or countries." "So it's important to further strengthen the connections with the Middle East in terms of energy security for the time being," he said. Also Read:
Japan's Nikkei pressured by drop in chip stocks, China worries Japanese stocks on Wednesday retreated from the one-week highs hit in the previous session, weighed down by an overnight drop in and lingering worries over China's COVID-19 situation. By mid-day, in thin year-end trading, the Nikkei Average was down 156.91 points, or 0.6%, at 26,290.96. Losses for the year so far are around 8.7%. Traders said there was early selling of stocks after the Nasdaq Composite and the Philadelphia (SOX), which have a high proportion of high-tech stocks, fell on Tuesday. Of the 33 industries on the , six sectors rose, including electricity and gas as well as insurance, while prices fell in 26 industries, including real estate and air transportation. The declines in stocks of Fast Retailing and weighed the most on the Nikkei. Softbank shares hit their lowest in five days. Earlier in the day, the Bank of Japan released the minutes of its December 19-20 monetary policy meeting, in which the central bank kept its ultra-easy policy but shocked markets with a surprise tweak to its bond yield control, so that long-term interest rates can rise more. Norihiro Fujito, chief strategist at Mitsubishi UFJ Morgan Stanley Securities, said those minutes, showing BOJ board members discussed growing prospects that higher wages could finally eradicate the risk of a return to deflation, was "not being considered as a factor in the market so far". The policy tweak has pushed yields higher, stoked expectations of wage rises and and also pushed the yen up, creating a conflicting mix of drivers for stocks. The dollar traded at 134.04 yen, up 0.42% during the session. Naka Matsuzawa, chief Japan macro strategist at Nomura, said this week could see the after-effects of the BOJ's policy surprise linger, "with this primarily appearing as speculation that the Bank will raise short-term policy rates (lift negative rates)." "...this speculation is the main driver behind unexpected JPY appreciation and weakening in the stock market." The largest percentage gainers on Wednesday were Hitachi Zosen Corp, up 2.09%, followed by IHI Corp. The volume of shares traded on the Tokyo Stock Exchange's main board was 0.56 billion, compared to the average of 1.2 billion in the past 30 days. The broader Topix was down 0.28 %, while the Mothers Index of start-up firm shares lost 1.07% . Also Read:
Truckers and subsidies rev up interest in fuel cell vehicles Interest in using hydrogen fuel cells to power and vans is getting a boost from fleet operators looking for a more practical alternative to electric vehicles and rising government aid, particularly the U.S. Inflation Reduction Act ( ). While most of the world's combustion engine cars and short-distance vans and lorries should be replaced by (BEVs) over the next two decades, fuel-cell proponents and some long-haul fleet operators say batteries are too heavy, take too long to charge and could overload power grids. Vehicles with hydrogen fuel cells, in which hydrogen mixes with oxygen to produce water and energy to power a battery, can refuel in minutes and have a much longer range than BEVs. "The fact is we need both BEVs and hydrogen," Daimler Truck Chief Executive Martin Daum told Reuters. "The amount of energy BEVs need is so enormous that I see a strain on our grid that ultimately it can't fulfill." Daimler Truck will invest up to 15 billion euros ($16 billion) on fuel cells over the next decade, Daum said. British supermarket chain Asda, with 1,000 large diesel vehicles hauling goods around the clock between hubs and stores, would be forced to add to its fleet if it turned to BEVs, and so is looking closely at fuel cells. "I'm not closing the door on batteries, but the benefit of hydrogen is it doesn't need that dwell time (for charging) and has better range," Asda fleet manager Sean Clifton said. Like BEVs, hydrogen's main challenge is infrastructure, which is too scant to support fleets today. But more governments are offering subsidies, including for producing more hydrogen from renewable power or rolling out fuelling stations. Asda, for instance, is part of a consortium including British fuel cell startup HVS that has received a UK government grant to develop a self-driving hydrogen heavy goods vehicle. In the United States, the IRA provides subsidies for cheap hydrogen and fuelling infrastructure that industry executives say will speed development of hydrogen semi-trucks and heavy-duty pickup trucks. The European Union is negotiating renewable energy targets, including hydrogen. "Thanks to the IRA, things will move faster in the U.S.," said Philippe Rosier, CEO of French fuel cell maker Symbio, a joint venture between Faurecia and Michelin. Carmaker Stellantis is buying a stake in Symbio. Rosier said that will accelerate plans, particularly in North America where it aims to be ready for hydrogen pickup trucks by 2026. Symbio, which supplies fuel cells for Stellantis vans, expects global fuel cell vehicle sales to reach 2 million units annually by 2030 and wants a 10 percent share. 'NOT SUSTAINABLE' Vittore Fulvi, owner of a trucking company based in Perugia, central Italy, runs a fleet of 60 diesel semi-trucks that manage 2,000 km (1,243 miles) - four days driving - on one tank. Fulvi Trasporti is considering hydrogen because heavy BEV alternatives would cut its load capacity 15
of 60 diesel semi-trucks that manage 2,000 km (1,243 miles) - four days driving - on one tank. Fulvi Trasporti is considering hydrogen because heavy BEV alternatives would cut its load capacity 15 percent and require daily charging. "We would need to buy more lorries, more than one for every 10 we own," Fulvi said. "That is not sustainable." Ford fleet customers run large diesel vans up to 600 miles (966 km) daily, often carrying refrigerated goods requiring extra energy that would overwhelm a BEV. "We need a plan B for those customers," Ford's UK head Tim Slatter said. Heavy-duty pickup trucks used for everything from delivery trucks to ambulances in the United States could also switch to hydrogen. With the notable exception of Tesla, whose CEO Elon Musk derides fuel cells as "fool cells," almost all automakers have invested in hydrogen technology. Both General Motors (GM) and Toyota are testing fuel cells for larger vehicles including semi-trucks and trains to build scale and lower costs. Toyota recently received UK government funding in partnership with insurance industry research group Thatcham Research to develop a hydrogen version of its Hilux pickup, with prototypes due this summer. GM has received a U.S. government grant to develop four heavy-duty hydrogen fuel cell pickups, which should become a "sweet spot" for the technology, said Charlie Freese, executive director of GM's Hydrotec business. Volkswagen truck unit Traton is not currently investing in hydrogen, because it is so saddled with debt from its acquisition of U.S. truckmaker Navistar it can only afford BEV investments, CEO Christian Levin said. Traton will rely on others for hydrogen if needed, he said. While Volkswagen is not currently investing in fuel cells, it has hundreds of patents around the technology. Also Read:
Tesla workers strike in Sweden over union demands mechanics in Sweden walked off the job on Friday to protest against the electric carmaker's refusal to sign a collective wage agreement, the metalworkers union said. The strike affects around Tesla's 130 mechanics at seven workshops across Sweden, spokesman Jesper Pettersson told AFP. Pettersson said Tesla employees had "lower wages, don't have the same insurances, and have lower pensions" than other industry workers. Negotiated sector-by-sector, collective agreements are the basis of the Swedish labour market model, covering almost 90 percent of all Swedish employees and guaranteeing standard wages and working conditions. IF Metall which has some 300,000 members said the agreements also allow for companies "to operate on a level playing field". "Many" of Tesla's workers in Sweden are members of IF Metall, Pettersson said, but would not disclose an exact number. Despite being union members, they cannot benefit from industry-wide collective bargaining agreements. Pettersson said Tesla informed them Tuesday it would not sign a collective bargaining agreement, adding that the carmaker told the union they "don't do that anywhere in the world." Tesla has not responded to AFP's request for comment. Tesla founder and chief Elon Musk has consistently rejected calls to allow the company's 127,000 employees worldwide to unionise. Tesla strikers in Sweden were being paid compensation by the union equivalent to their wages, Pettersson said. He said that unless Tesla changed its position, IF Metall would widen its strike on November 3 to cover all workshop repairs on Tesla cars across Sweden, not just those done by Tesla employees.
Fret not, flight of FPI capital could slow ( ) outflows from the have reached $39 billion in the past nine months, including June, as the differential with advanced economies narrowed and investors switched attention to commodity-producing nations during an upcycle. The exposure of FPIs is affected both by its speed in raising interest rates as well as its dependence on imported energy. The has increased its policy interest rate by 1.5 percentage points since the beginning of its monetary contraction earlier this year. In comparison, the ( ) has raised rates by 0.9 percentage points. India also imports 85% of its crude oil and 45% of its natural gas. The oil and gas import bill, netted for exports of refined petroleum, climbed to $113 billion in 2021-22, from $63.5 billion in 2020-21 and $92.7 billion in 2019-20. Brent crude averaged $71 a barrel in 2021; RBI's latest projection for the Indian basket is $105 a barrel in 2022-23. The net FPI outflow of $32 billion in the last nine months exceeds by a wide margin the cumulative net outflows over the decade to 2019-20. The Indian equity market has managed this degree of reversal mainly because of the rise of a new segment of retail investors that is channelling a bigger chunk of household savings into stocks. The number of demat accounts in the country grew 63% in 2021-22 to 89.7 million. Net inflows by retail investors in the National Stock Exchange (NSE) cash market segment have reduced the dominance of FPIs in trading turnover. Their holdings, too, are now matched by local mutual funds and insurance companies. Surging domestic retail investments have stretched valuations of Indian stocks, and a correction due to FPI outflows would, at some point, draw in value investors. The flight of capital could slow as the Fed's rate hiking trajectory eases, by which time the demand contraction in the US may make commodity producers less attractive to investors.
BMW India launches 5 Series Long Wheelbase at INR 72.9 Lakh New Delhi: has launched the all-new , available exclusively as a petrol variant, with bookings open at and online. Deliveries for the vehicle are set to start in September 2024. The introductory ex-showroom price for the BMW 530Li M Sport variant is INR 72,90,000. The new BMW 5 Series Long Wheelbase is locally produced at the BMW Group Plant Chennai. Customers are advised that the ex-showroom price includes GST and compensation cess but excludes Road Tax, Tax Collected at Source (TCS), RTO statutory taxes Atlas Grey and Maritime 40,000 km and extendable up to 10 years19-inch M alloy wheels with tubeless tires, adaptive LED headlights with vertical strips, and slim LED taillights with L-shaped twin light design, emphasizing the car’s width. Inside, the BMW 5 Series Long Wheelbase offers a spacious and comfortable environment. It comes with comfort seats covered in perforated vegan leather upholstery with active seat ventilation in the front and increased knee room in the rear. Four-zone air conditioning allows individual cabin temperature adjustments. The Bowers & Wilkins Surround Sound System provides a high-level audio experience. The first 500 customers will receive individually customized headrest cushions in the rear. The BMW Curved Display includes a 12.3-inch Information Display behind the steering wheel and a 14.9-inch Control Display, merging into a single digital unit. The BMW Intelligent Personal Assistant adopts the driver’s individual habits and offers useful driving tips. Regular Remote Software Upgrades ensure the car remains up to date. MyBMW App functions allow users to monitor the vehicle's status at all times. The digital key services enable any smartphone to become a car key, transferrable to up to four additional users, along with personal vehicle settings. The new control panel on the center console includes the iDrive Controller, a new gear selector switch, the start 258 hp and a maximum torque of 400 Nm at 1,500 – 2,500 rpm. The engine also includes a 48V Electrical Motor, optimizing efficiency and dynamics. The car accelerates from 0 to 100 kmh. The 8-speed Steptronic transmission ensures smooth gearshifts and works closely with the engine for optimal power and efficiency. The Comfort Suspension offers a luxurious ride with minimal body roll and high stability. The M Steering wheel, with a flattened bottom, includes paddle shift functions. BMW My Modes allow users to customize their driving experience with options like Personal, Efficient, Sport, Expressive, Relax, and Digital Art, combining sound, light, temperature, and seat functions. The range of Connected Drive and Driver Assistance Systems supports comfort and safety extensively. Standard systems include Cruise Control, Attentiveness Assistant, Parking Assistant Professional, Comfort Access, Remote Parking via smartphone, Manoeuvring Assistant, Reverse Assistant, Lane Change Warning, Cross Traffic Warning,
Control, Attentiveness Assistant, Parking Assistant Professional, Comfort Access, Remote Parking via smartphone, Manoeuvring Assistant, Reverse Assistant, Lane Change Warning, Cross Traffic Warning, Front & Rear Collision Warning, Exit Warning, and Active Pedestrian Protection. BMW EfficientDynamics features in the car include the 8-speed Steptronic Automatic Transmission, Auto Start-Stop, ECO PRO mode, Brake-Energy Regeneration, Electronic Power Steering, and 50:50 Weight Distribution, among other innovations. BMW Safety features include eight airbags, Attentiveness Assistance, Dynamic Stability Control (DSC) with Cornering Brake Control (CBC), an electric parking brake with auto hold, side-impact protection, an electronic vehicle immobilizer with crash sensor, and child seat mounting.
Insurance companies are now a part of RBI's Account Aggregator In a recent move, the of India (IRDAI) has given its go-ahead to insurance companies to become a part of the 's (RBI) (AA) system. The circular includes a guideline on how Insurers- life, non-life and health can share data with the , who are NBFCs that retrieve financial information from entities to provide all savings and data at one place. Once fully functional, investors can register on any of the above platforms and get their bank account, mutual fund, insurance, PF investment, PPF and other financial data at one place. "Insurers can share information with AAs only after taking the due consent of policyholders," the circular stated. Account aggregation sometimes also known as financial data aggregation is a method that involves compiling information from different accounts, which may include bank accounts, credit card accounts, investment accounts, and other consumer or business accounts, into a single place. The regulator has said that insurers will have to enter into a contractual agreement with AAs with defined rights & obligations of each party and modalities of dispute resolution mechanism before sharing any information. "There shall be adequate safeguards built in IT systems of (FIPs) in the insurance sector to ensure that it is protected against unauthorized access, alteration, destruction, disclosure or dissemination of records and data,” said the insurance watchdog added. IRDAI has also asked the companies to build a required interface based on RBI specification for receiving the consent, authentication and safely sharing the information with AAs. The guidelines state that the Insurers will have to prominently display the names of the aggregators with whom they share data. Besides this they will have to abide by code of conduct applicable to them including redressal of grievance of the customer before sharing any data with AA, clarified IRDAI. The inclusion of insurance along with banking and capital markets in the AA ecosystem can impact the way MFDs service their clients as they will have access to a lot more information. Also Read:
Automotive sector growth to be moderate in near-to-medium term: ICRA New Delhi: The saw a healthy revival in FY2023, aided by a recovery in economic activities and increased mobility. The demand sentiments for a majority of the , the , and tractors remained healthy, aiding in improved offtake for the industry participants. However, the two-wheeler industry continues to struggle with industry volumes still below the pre-covid peak levels; even as improved offtake in the recent festive and marriage season provided optimism, a sustained recovery in demand sentiments is yet to be seen. A similar trend of relatively weak offtake was seen for the entry-level car segment, implying that the purchasing power of the consumers at the bottom end of the pyramid was eroded to an extent over the past few years by the significant rise in (a result of price hikes to combat inflationary pressures and meet stringent regulatory requirements) and disruptions caused by the pandemic. Shamsher Dewan, Senior Vice President and Group Head - Corporate Ratings, ICRA, said, “We expect growth across automotive industry segments to remain at high single-digit levels in FY2024. While the passenger vehicle, commercial vehicle, and tractor segment volumes would continue to trend upwards, aided by favourable demand drivers, the two-wheeler industry is also expected to record moderate growth in volumes aided by a low base. The Union Budget 2023-24 is expected to include enhanced budgetary outlays towards rural employment under MGNREGA, rural infrastructure development, enhancement of irrigation facilities, crop insurance scheme, as well as an increase in targets for agricultural credit. With measures to help rural communities expected to be at the heart of its policies, the budget is expected to aid in boosting the rural led demand across segments”. EV segment Spurred by Government support in the form of subsidies (under the FAME-II policy), enhanced awareness, and increasing product launches, the has seen a significant upturn in prospects over the past 18 months. Even as e-2W’s have accounted for approximately 85%-90% of the total EV sales (excluding the e-rickshaw segment) aided by subsidies offered by the Government, electric vehicle penetration across segments is increasing at an exponential rate. Amid the ongoing electrification transition, OEMs are expected to incur significant in the development of ground-up electric vehicle platforms and enhance manufacturing capacities. In the past few years, the government has rolled out several schemes, such as the FAME II scheme and production-linked incentive schemes, to help the local manufacturing ecosystem grow; the government is likely to make more announcements in this area, such as better financing terms for electric vehicles, as it continues to work towards its “Make in India’ goals.” Exhibit: Segment-wise growth outlook Source: ICRA Research Over the near term, domestic industry volumes will continue to drive growth, with
it continues to work towards its “Make in India’ goals.” Exhibit: Segment-wise growth outlook Source: ICRA Research Over the near term, domestic industry volumes will continue to drive growth, with export prospects remaining weak amid a shortage of dollar availability in some key markets and inflationary pressures. Many nations have put restrictions on imports to conserve forex, which is expected to curtail export volumes in the near term. Over the medium term, however, competitive manufacturing capabilities and ongoing efforts by OEMs to enhance the distribution network are likely to aid export volumes. ICRA has a forecast of a CAGR of ~6%-9% across automotive segments over the medium to long term. Supporting underlying factors such as rising per capita incomes, demographic profile, low vehicle penetration, favourable policy environment including infrastructure development etc. are expected to help grow the industry demand at a steady pace. Also Read:
Formal job creation under ESIC fell by 17.1% to 1.02 million in November 2021 under the Employees State Insurance Corporation fell by 17.1% to 1.02 million in November 2021 against 1.23 million in the previous month, official data showed on Tuesday. Even subscribers under the fell by 5.8% to 64,870 as against 68,870 in October. The formal employee addition under the , however, went up in November 2021 by 25.6% to 1.39 million compared to 1.11 million net new subscribers added in October 2021. As per the report, 0.83 million male subscribers were added to ESIC while 0.19 female subscribers were added to ESIC. Of the total 1.39 million net subscribers added to EPFO during the month, 0.82 million new members have come under the social security cover of EPFO for the first time and 0.56 million net subscribers exited but rejoined EPFO by changing within the establishments covered under the purview of EPF & MP Act, 1952. Highest number of net enrolments were registered in the 22-25 years age group with 0.36 million net new additions during November while the 18-21 years age group saw an addition of 0.28 million net enrolments. The latest data is part of a report released by the (NSO). As part of the report, 41,053 state government employees were added to NPS, 13,748 central government subscribers were added to NPS and 10,069 were corporate sector employees. The NSO report is based on the payroll data of new subscribers of various social security schemes run by ESIC, the Employees' Provident Fund Organisation (EPFO) and Pension Fund Regulatory and Development Authority (PFRDA). It has been releasing such data of these bodies since April 2018, covering the period starting from September 2017. The report, titled 'Payroll Reporting in India: An Employment Perspective - November 2021', said since the number of subscribers is from various sources, there are elements of overlap, and the estimates are not additive. NSO also said the report gives different perspectives on the levels of employment in the formal sector and does not measure employment at a holistic level. Also Read:
Audi India opens Audi Approved: plus facility in Noida New Delhi: Audi, the German luxury car manufacturer, has opened a new pre-owned car facility, , in Noida, Uttar Pradesh. It is the 24th Audi Approved: plus facility in India. , Head of , said, “The first half of 2023 has seen a 53% growth in Audi Approved: plus, reflecting the rising demand for pre-owned cars. With this encouraging trend, we remain committed to investing in this segment. The inauguration of Audi Approved: plus Noida is a testament to our dedication, and we are on track to introduce two more such facilities this year.” Every pre-owned vehicle showcased and sold at Audi Approved: plus showrooms undergoes an exhaustive evaluation process, including over 300 multi-point checks covering mechanical, bodywork, interior, and electrical aspects. Multiple-level quality assessments are conducted, and each car undergoes a comprehensive on-road test, ensuring customers' confidence in their purchase. The Audi Approved: plus program includes 24x7 Roadside Assistance and a detailed vehicle history report, further enhancing the buying experience. Additionally, customers have access to convenient financing and insurance options through the program. , Chairman of , said, “Today, we are pleased to announce the inauguration of our latest pre-owned car facility in Noida, representing another milestone in our ongoing journey with Audi India. This expansion reinforces our commitment to delivering exceptional service and experiences to dealership customers. Adventure Auto Car India, in collaboration with Audi India, now serves customers in three major Indian cities – Delhi, Kolkata, and Noida.”
States can't regulate NBFCs registered with RBI, says Supreme Court NEW DELHI: In an important judgment, the on Wednesday ruled that state laws cannot apply to over 9,500 non-banking financial companies (NBFCs) registered with the ( ). Sawing off attempts by the Kerala and Gujarat governments to bring the NBFCs under the purview of their legislations regulating money lending business, a bench of Justices Hemant Gupta and V Ramasubramanian said, "We are of the considered opinion that the Kerala Act and the Gujarat Act will have no application to NBFCs registered under the and regulated by the RBI." Writing the judgment, Justice Ramasubramanian said that no can carry on business without being registered under the RBI Act. "A NBFC which takes birth with the registration under the Act is liable to be wound up at the instance of the RBI. The entire life of a NBFC from the womb to the tomb is also regulated and monitored by RBI under the Reserve Bank of India (Amendment) Act, 1997." "Once it is found that Chapter IIIB of the RBI Act provides a supervisory role for the RBI to oversee the functioning of NBFCs, from the time of their birth (by way of registration) till the time of their commercial death (by way of winding up), all activities of NBFCs automatically come under the scanner of RBI. As a consequence, the single aspect of taking care of the interest of the borrowers which is sought to be achieved by the state enactments gets subsumed in the provisions of Chapter IIIB," the bench ruled. However, it said that some of the NBFCs, exempted from RBI supervision, are regulated by other regulatory bodies. "For instance, are regulated by the National Housing Bank; Merchant Banking companies, Venture Capital Fund Companies and the like are regulated by SEBI; Nidhi companies and mutual benefit companies are regulated by the Ministry of Corporate affairs; Chit Fund companies are regulated by state governments; and Insurance Companies are regulated by IRDA," it said. The bench said though it is true that many times RBI might not be controlling the rate of interest charged by the NBFCs on the loans advanced by them, but it did not mean that they have no power to step in. It said, "The moment Parliament stepped in to codify the law relating to registration and regulation of NBFCs, by inserting certain provisions in Chapter IIIB of the RBI Act, the same would cast a shadow on the applicability (even assuming it is applicable) of the provisions of the Kerala Act to NBFCs registered under the RBI Act and regulated by RBI." It drew a similar conclusion with regard to the applicability of Gujarat legislation to NBFCs.
Aggregator policy mandating EVs approved by Delhi CM Arvind Kejriwal New Delhi: Enhanced security features for passengers that include a 24x7 control room to track and monitor the movement of drivers, integration of panic buttons with enforcement agencies and corrective measures against drivers being awarded a rating less than three stars in more than 25% of the rides undertaken in a month are the highlights of the approved by on Tuesday. The file on and has now been sent to the LG's office and will be notified after his approval. The entire fleet of aggregators, old and new, have to complete the shift to EVs by April 1, 2030. The policy also paves the way for giving legal status to bike taxis in Delhi with a set of guidelines. Operators will need licence in 90 days Significantly, only electric bike taxis shall be registered as a motorcycle for taxis, will need an insurance cover for passengers and drivers, and the driver will need to have a passenger service vehicle badge issued by the transport department. In a fleet of four-wheelers, 5% should be (EVs) in six months, 50% in three years and 100% in five years. In fact, the of all aggregators, delivery service providers and e-commerce entities will have to undergo a phased conversion to electric mobility by 2030. "With this, Delhi has become the first state in India, and among very few cities globally, to mandate a time-bound transition of commercial vehicle fleets of aggregators, delivery service providers and e-commerce entities to zero-emission electric vehicles," said Kejriwal. "We firmly believe that this scheme holds the potential of not only safeguarding our environment but, more significantly, enhancing the well-being of the citizens of Delhi," said Delhi's transport minister, Kailash Gahlot. The scheme will cover those with 25 or more motor vehicles (two-wheelers, three-wheelers and four-wheelers, excluding buses) in their fleet and those who use a digital intermediary, such as an app or web portal to connect with consumers for their services. All existing and new operators must obtain a licence within 90 days of the scheme being notified or before commencing operations. The licence will be valid for five years with an annual fee to be paid but electric vehicles will be exempted. A 50% rebate will be given to vehicles that are less than two years old. The scheme has some stringent provisions for enforcing compliance with violations attracting monetary penalties, ranging from Rs 5,000 to Rs 100,000 in each instance. The policy also lays down that aggregators should provide sufficient accessible cars for persons with disabilities. It also calls for inclusion of a feature enabling the rider to share the live location and status of his/her ride. The aggregator is required to have an emergency number on the app to report any concern or harassment during a ride to the enforcement authorities.
EV maker One Moto India ties up with Royal Sundaram General Insurance New Delhi: British Automobile Brand One-Moto India on Tuesday entered into a partnership with Co. Limited (Royal Sundaram) for the issuance of insurance policies to its customers for EVs at the point of dealerships. The brand’s tie-up with Royal Sundaram General Insurance comes as another step toward offering more convenience to the users and as a “one-stop-shop” for all customer requirements including insurance at the point of sale, said a media release. According to the company, the customers will be able to avail of an add-on Cover- Depreciation Waiver, to their motor policies issued by the brand. Apart from this, the customers will also be offered competitive pricing, and a cashless facility for claims at One Moto centres, it added. “It is our ambition to offer the customers the best of the services. In order to achieve the same, we are trying to create a bouquet of services in addition to the world-class array of EV products. Understanding that the majority of the customer base is experiencing EVs for the first time, they seek more support to enable the transition from ICE to EV,” Aditya Reddy, VP, Sales & Marketing, One Moto India, said. Currently, the brand has three different : Byka, Electa, and Commute. The EV startup recently announced its association with Global Assure to provide easy Roadside Assistance Services across India. One Moto India is one of the three companies that the Government of India has approved for e-AMRIT (accelerated e-Mobility Revolution for India’s Transportation).
Duty cut benefit in EV policy not to impact domestic players; to expand mkt New Delhi: Import duty concessions announced in the on Friday will not impact domestic players and on the contrary, expand the Indian electric vehicles market, a top government official said. Department for Promotion of Industry and Internal Trade ( ) Secretary Rajesh Kumar Singh said that the government has taken the view of all the concerned stakeholders on the policy, which was balanced to the public interest. "We are not trying to, you know, tailor a package for anybody. This is open to everybody. The idea is to kickstart the four- wheeler e-car manufacturing in India, with very stringent kind of value-addition norms, while also ensuring that we allow imports in a very limited quantity. we will be allowing only 8,000 for a company in a year and a maximum cap of 40,000. It's not zero (duty," he told reporters here. The government on Friday approved an electric-vehicle 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 . 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 a period of five years. At present, cars imported as completely built units (CBUs) attract customs duty ranging from 70 % to 100 %, depending on engine size and cost, insurance and freight (CIF) value less or above USD 40,000. "Our intention therefore is really not to cannibalize their (domestic players) market but to expand the EV market by bringing in new players, give the consumers the latest technology, kickstart the transition to EVs by bringing in you know proven technology and while at the same time creating a competitive framework where the domestic manufacturers can also grow in that same space," Singh said. Citing an example, he said when these EV manufacturers come in, the ecosystem also comes including vendors and the market is expanded. "It's not that the market cannibalizes on anybody's existing share...," he said, adding that few cars are being sold in the domestic market in the price range of USD 35,000. In the USD 35,000 plus price range, in India, the total number of vehicles being sold is about less than a lakh. "So it's not where people are present, domestic manufacturers are operating," Singh said adding there is no concessions other than the import duty thing. When asked about discussions with US EV major Tesla, he said discussions happen with everyone but that doesn't influence the government's decision. "The final call we take is based on what is good for the country and what is good in the public interest. The policy again is not tailored for any company," he said. "It is a very limited concession for a very limited number of imports and it is
for the country and what is good in the public interest. The policy again is not tailored for any company," he said. "It is a very limited concession for a very limited number of imports and it is underwritten by very stringent performance criteria guarantee from him," he said. For up to USD 35,000 import price, the customs duty is 70 % and above that, it is 100 % and it is one of the highest in the world, Singh said. When asked except for Tesla, any other car companies interested in setting up plants here, without taking the name of any firm he said: "Yes there are. I would just say that there are multiple such expressions of interest in it. At least two are there.. But there could be more".
LMV licence enables one to drive transport vehicle too: Himachal HC The Himachal Pradesh High Court has ruled that a light motor vehicle ( ) licence enabled the holder to drive a too. Observing that there is only licence category i.e. LMV, Justice Vivek Singh Thakur dismissed an appeal filed by Oriental Insurance Company against the Workmen Compensation Commissioner's order who held it liable to indemnify the claimants. As per the case, Raj Paul was engaged as a driver of a pickup jeep. He met with an accident on December 3, 2003, and died. His licence was valid for driving motorcycle and scooter as well as LMV non-transport only. The vehicle involved in the accident was a goods carrying , but undoubtedly falls in the category of LMV in terms of the , 1988. Counsel for the insurance company pleaded that being holder of the licence valid for LMV (non-transport), Paul was not authorised to drive a transport vehicle. The court held that there was no provision in the Motor Vehicle Act to make endorsement of LMV non-transport.
Russian oil shaves India's import costs by about USD 2.7 bln India saved roughly USD 2.7 billion by importing discounted Russian oil in the first nine months of this year, according to calculations based on government data, helping it support economic growth and easing pressure on its trade deficit. accounts for about a third of India's overall imports by value. The world's third-biggest oil importer and consumer replaced Europe as the largest buyer of seaborne Russian crude this year after the West imposed sanctions on Moscow over its invasion of Ukraine last year. Access to cheap Russian oil enabled India to cut imports from the , where prices strengthened following 's voluntary additional supply cuts since July. India imported 69.06 million metric tons of Russian oil, equivalent to 1.85 million barrels per day (bpd), between January and September, commerce ministry data showed, including Russian oil imported from South Korea, Greece and Spain through transshipments. The average price for Russian oil delivered to Indian refiners was USD 525.60 per ton during that period, including shipping and insurance costs, Reuters calculations based on ministry data showed. By comparison, the average landed cost of Iraqi oil, which is of similar quality to the medium-sour Russian Urals crude that accounts for the bulk of India's purchases from Russia, was USD 564.46 per ton during the same period. That equates to savings of USD 2.7 billion for India compared with what it would have paid if it had bought Iraqi oil instead, the calculations showed. Russia has surpassed Iraq as top oil supplier to India, with Saudi Arabia relegated to third place. Other Russian grades purchased by India include light sweet ESPO and Sokol. China, the world's top oil importer, has reaped savings this year of nearly USD 10 billion through record purchases of oil from countries under Western sanctions including Russia, based on Reuters calculations. Unlike China, India doesn't buy Venezuelan and Iranian oil. By importing Russian oil, Indian refiners benefit from lower feedstock costs, which have buoyed gross refining margins and curtailed revenue loss from subsidised retail fuel sales. State refiners have not revised pump prices for more than a year, aiding government efforts to rein in inflation, while refined products demand has grown about 14% this year.
Oil down $1 on China growth worries, while EU weighs Russian crude ban By Sonali Paul MELBOURNE: fell on Monday in holiday-sapped trade in Asia as concerns about weak economic growth in China, the world's top , outweighed fears of potential supply stress from a looming Brent crude futures fell $1.13, or 1.1%, to $106.01 a barrel at 0511 GMT, while U.S. crude futures fell $1, or 1%, to $103.69 a barrel. Markets in Japan, India and across Southeast Asia were closed for public holidays on Monday. Prices fell after China released data on Saturday showing that factory activity in the world's second-largest economy contracted for a second month to its lowest since February 2020 because of COVID lockdowns. "A slowing to that extent, when China is already suffering from a property bust and worries about its (until recently) increased regulation, is potentially a major issue for commodity markets and the world economy," said Tobin Gorey, a Commonwealth Bank commodities analyst, in a note. On the supply side, Libya's said on Sunday it would temporarily resume operations at the Zueitina oil terminal to reduce stockpiles in storage tanks to avert an "imminent environmental disaster" at the port. NOC in late April declared force majeure on some shipments at Zueitina as political protesters forced a number of oil facilities to suspend operations. Limiting the down side for oil prices is a possible dent in supply with the European Union leaning towards banning imports of by the end of the year, two EU diplomats said after talks between the European Commission and EU member states on the weekend. Around half of Russia's 4.7 million barrels per day (bpd) of crude exports go to the EU, supplying about one-fourth of the EU's oil imports in 2020. "In the absence of an immediate EU total oil embargo, eliminating mobility restrictions in China is necessary to drive oil out of its current range," said SPI Asset Management Managing Partner Stephen Innes. While Western countries have curbed buying Russian oil as sanctions have hit shipping and insurance for the country's exports, the impact on global supply has been cushioned as India has been picking up heavily discounted Russian cargoes. Royal Bank of Canada analysts estimated India's crude imports from Russia have grown from less than 100,000 bpd in 2021 to 800,000 bpd in April and expect India to continue ramping up imports as long as Washington does not impose secondary sanctions. Reuters reported on Friday that Indian refiners are negotiating a six-month oil deal with Russia to import millions of barrels per month. Also Read:
Crack down on EV sellers that claim low top speeds to evade regulation: Centre to states The , has cautioned state governments about higher battery capacity (EV) that are evading checks under the garb of low speed ones. An advisory to state governments said that many dealer showrooms have mushroomed across the country that have indulged in sale of battery operated two-wheelers in contravention to the provisions under the (CMVR), 1989. The state governments have been asked to take action against such errant operators. “These manufacturers and dealers are supplying higher battery capacity models which are plying with top speed 40-50 kilometres per hour (kmph) without type approval, insurance and vehicle identification as per norms. These vehicles are tampering with the verification undertaken by the ,” the advisory said. Under the existing rules, the maximum speed of EVs that can be sold without type approvals must not cross 25 kmph. The further specified that a two-wheeled battery operated vehicle shall not be deemed to be a motor vehicle if it is equipped with an electric motor having 30 minute power of less than 0.25 kW. Unladed weight (excluding battery weight) of these vehicles is not supposed to cross 60 kilogrammes. They also need to be fitted with suitable brakes and retro-reflective devices such as a white reflector in the front and a red one in the rear. Read More:
China auto sales rise at slowest pace in five months in Oct China's at their slowest pace in five months in October, from a weak base a year ago, as zero-COVID policies kept consumers away from showrooms and weighed on sentiment, while the effect of incentives for buyers also waned. The world's biggest posted sales of 2.51 million units in October, a 6.9% rise from the same month a year ago, according to data from the (CAAM) on Thursday. That represented a sharp slowdown from the 25.7% increase in September. from manufacturers to dealers, including passenger vehicles, buses and trucks. Total auto sales rose 4.6% from the same period last year, CAAM data showed, up slightly from 4.4% in the first nine months of the year. This time of year, known as "Golden September, Silver October", is usually a high point in sales for the industry, with consumers making purchases after staying away from showrooms during the stifling summer months. But automakers and investors are bracing for a downturn in the world's due to a sputtering economy, despite government incentives in recent months to boost sales, such as tax cuts and subsidies. In July, CAAM lowered its auto growth projection for 2022 to 3% from 5.4% previously. INVENTORY RISES Automakers in China delivered a record number of cars to dealers in the first nine months of the year even as retail demand slowed, setting up the market for a slowdown in 2023, analysts at (CMBI) said last month. "Although the trend is good with production and wholesales in the auto industry, the is weak and inventory level has improved," said Chen Shihua, CAAM's deputy secretary general, at an online conference. The average daily retail sales of locally produced cars in China fell 2.4% in the first three weeks of October from a year ago, with Chinese brands outperforming their foreign counterparts, according to a CMBI report based on auto insurance data. Sales of new energy vehicles -- which include pure (EV), plug-in hybrids and hydrogen fuel-cell vehicles --increased 81.7% in the month, the slowest pace in six months. Tesla added to its electric vehicle inventory in Shanghai at its fastest pace ever in October, brokerage data showed recently. BYD's sales more than tripled thanks to a wider range of EV and hybrid offerings, while Nio also saw sales increase 174.3% in October due to the introduction of new models such as ET5. Also Read:
Greaves Finance partners with ACKO to promote EV ownership in India Limited, a subsidiary of Greaves Cotton Ltd., has partnered with tech-first insurer to promote seamless electric vehicle (EV) ownership in India. Announced on July 10, 2024, the collaboration aims to encourage through Greaves' 100% EV-focused lending platform , which will now offer ACKO's insurance policies alongside financing options. This strategic partnership aims to provide consumers with optimal insurance and financing solutions conveniently. Customers will benefit from specialised financing support and tailored solutions from evfin that cater to their preferences and requirements. Additionally, the partnership will simplify the insurance procurement process by offering affordable policies designed to meet user needs. The collaboration between evfin and ACKO aims to alleviate the financial burden on EV owners in the event of accidents and hospitalisations, while also driving the development of new EV-centric products. This initiative is expected to accelerate the adoption of solutions across India. PB Sunil Kumar, Executive Director and CEO of Greaves Finance Limited, highlighted the growth of the , stating, "In FY24, the Electric 2W segment has witnessed a Y-o-Y growth of 30%, and we believe that accessible financing and insurance models will push this further, helping accelerate India’s potential to lead the charge in sustainable mobility. We are delighted to partner with Acko on this exciting venture to offer affordable and tailored solutions to our consumers. We share a mutual vision of leveraging technology to increase the accessibility of financial services to customers across India." Brijesh Unnithan, SVP - Internet Partnerships at ACKO, emphasised the importance of tailored insurance solutions for EVs, saying, "We understand the importance of tailored insurance solutions for EVs to accelerate EV adoption in India. Given the barriers to EV adoption, where the primary factors are cost and battery degradation, it is important to foster an ecosystem that facilitates affordable financing and insurance solutions to encourage individuals to consider EVs. ACKO’s collaboration with Greaves Finance Limited is a step in the right direction to enable this." Earlier this month, evfin celebrated its first anniversary. Its offerings are now available in leading EV 2-wheeler OEM dealerships, including Ather Energy, Ampere from Greaves, Vida from Hero Motocorp, OLA Electric, Bajaj Chetak, and TVS iQube across 31 cities in India.
FM likely to focus on growth, may announce steps for sovereign bond inclusion in global indices Finance Minister Nirmala Sitharaman will present the highly-awaited for FY2023 next week. The industry and market are eager to see how the government charts its course to come out of the Covid scenario and return the country to the desired growth rate on a sustained basis. One of the positive aspects of 2021 was the clean-up of off-balance sheet finances and the government is expected to continue the same path while showing fiscal consolidation given elevated debt levels. Previous two years’ stringent lockdowns had forced the government to alter its spending pattern somewhat and increase the focus on the social sector to alleviate the impact of the disruptions. During FY2022 and FY2023, the government spent substantial sums on subsidies and sops to support the economy. While the nationwide lockdown is behind us and the economy is on a growth path, the government is expected to turn its attention back to its key areas of infrastructure development and promoting the manufacturing sector for job creation. The PLI Scheme, having an outlay of Rs 2.5 trillion across various sectors and spread over a tenor of 3-6 years has seen initial success. The government is likely to increase the allocation for the scheme and might add a few sectors to this list in order to further boost the domestic manufacturing sector. Developing a strong renewable energy and EV (including charging infrastructure) sector has become important for India to meet its carbon emission targets and hence could be a special focus area. The earlier initiatives on digital and startup economy driven by the Prime Minister have also seen good success with the creation of several unicorns in India, and the impetus on the same is likely to continue in this budget as well. As a result of these initiatives India has been successful in attracting sizable FDI from global investors in the digital economy every year. The markets are also keenly watching for fiscal balance that the government is able to achieve between the need to spend more and to reduce deficit. Tax collections, both direct and indirect, have been strong this year on the back of healthy corporate taxes and GST collections, and are further expected to increase at about the nominal GDP growth of 12-14 per cent for FY2023. Even though the government has missed the divestment targets, the overall deficit is expected to be within the budgeted target due to strong tax revenues. On the expenditure side capex was a focus area in the previous budgets given the higher multiplier effect on the economy, and we expect the similar trend to continue in this budget as well with higher growth in capex spending as compared to revenue expenditure. From a fiscal deficit of 4.6 per cent in the pre-pandemic year of FY2020, the deficit increased to 9.2 per cent and 6.8 per cent in FY2021 and FY2022, respectively. The government is likely to gradually
a fiscal deficit of 4.6 per cent in the pre-pandemic year of FY2020, the deficit increased to 9.2 per cent and 6.8 per cent in FY2021 and FY2022, respectively. The government is likely to gradually consolidate its fiscal position and reduce the deficit to 6 per cent in FY2023 and provide a further path for faster consolidation in coming years. The gross central government borrowings would cross Rs 12 trillion for the third year in a row due to the large deficits. The market appetite for such large borrowings is limited and the government may explore alternative sources of finances such as borrowings from overseas investors. The Finance Minister is expected to announce steps that would enable the inclusion of Indian sovereign bonds in global bond indices which would help in attracting a good amount of foreign capital. The government is taking various reform measures outside of the budget to take India to a USD 5 trillion economy and this budget is expected to lay down the path to accelerate the pace of economic growth. (The author is Chief Investment Officer at Bajaj Allianz Life Insurance. The views expressed in this article/note are not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions) Also Read:
Verkor gets over 1.3 bn euros in financing for Dunkirk EV battery gigafactory French battery start-up said on Friday it had secured more than 1.3 billion euros (USD 1.41 billion) in green financing for its first in , finalising its funding. Europe is seeking to attract (EV) battery makers, as it tries to cut dependency on Asia and win a green subsidies race with the United States. The financing allows Verkor to fund construction of the plant, which will supply Renault's premium and Alpine electric models among others. The Grenoble-based startup's gigafactory is one of four electric vehicle battery factories planned in northern France. "This debt financing will enable us to finalize the construction of our gigafactory, which will produce its first low-carbon battery cells in 2025," said Benoit Lemaignan, CEO of Verkor. The gigafactory will have an initial production capacity of 16 GWh/year and create about 1,200 direct jobs and 3,000 indirect jobs within two years, Verkor says. This development follows Verkor's recent capital increase from investors, which included infrastructure funds and insurers. To date, and following Friday's announcement, the company has secured more than 3 billion euros in funding.
Will you gain from pay-as-you-drive motor insurance? Your car insurance premium could soon be decided by how much and how well you drive. The Insurance Regulatory and Development Authority of India (Irdai) has permitted insurers to launch pay-as-you-drive policies with premiums linked to mileage and quality of . The pay-as-you-drive policies allow buyers to set a mileage limit for their cars and offer discounts over the normal premium. The lower the limit, the bigger is the discount over the normal premium. The insurance is valid only up to the limit chosen by the buyer. One insurance company offers three slabs of 7,500 km, 5,000 km and 2,500 km. The insurance regulator has also proposed for vehicles. Just like floater health policies cover all members of a family, vehicle owners can get several vehicles covered under a single policy. In , floater policies are very popular, but whether they will become the preferred option in motor insurance is debatable. Vehicles owned by a family are usually registered in different names, which could be a hurdle in such floater covers. Irdai has also allowed insurance companies to offer discounts based on the quality of driving. A telematics device is fitted in the car to monitor the condition of vehicle and driving habits of the user. This data is then interpreted to give discounts to careful drivers. It can also penalise rash and negligent drivers. These developments appear to be good news for those who own multiple vehicles or have not been driving too much due to Covid restrictions. They won’t have to shell out the full premium if their vehicles are not being used too much. “The introduction of these options will help in giving the much needed fillip to motor own damage cover in the country and increase its penetration,” Irdai said in a statement. Expectedly, the insurance industry has lauded the move. “This is a transformational development in the motor insurance category. It will boost utility-based insurance purchases and also encourage safe driving habits,” says Sanjay Datta, Chief Underwriting and Claims, . “Irdai has created a win-win situation. Own damage coverage can now be tailored based on a customer’s driving behaviour. It will benefit customers who have low vehicle usage, take care of their vehicles and follow traffic rules,” says Rakesh Jain, CEO of . However, a closer examination shows that such policies can offer only limited benefits. The discounts offered on the premium are not too exciting (see table). If you choose the 7,500 km slab, you get only a small 10% off on the regular premium. Mind you, the discount only applies to the own damage premium, and the mandatory third-party premium and other add-on covers are not affected. The discount gets a little more attractive for a lower limit of 2,500 km, but that works out to an average commute of less than 7 km in a day. Consider that before you opt for a policy with a low slab. The good news is that buyers can switch to a higher slab or even
km, but that works out to an average commute of less than 7 km in a day. Consider that before you opt for a policy with a low slab. The good news is that buyers can switch to a higher slab or even to a regular unlimited policy if they end up driving more than the slab limit. But this upgradation should be done well before the threshold limit is exceeded. It is not possible to upgrade after a mishap or claim incident. “Insurers would have to clarify the process of settling a claim if a customer exceeds the declared usage,” points out Supriya Rathi, Whole Time Director, Anand Rathi Insurance Brokers. The installation of telematics devices is another ticklish issue because it raises privacy concerns for the car owner. No doubt it will reduce the insurance premium, but this discount comes at a cost. Go for it only if you are comfortable with the thought that the insurer will have 24x7 data on your car’s movement.
India needs policy push to harvest benefits of e-tractors New Delhi: Even though a record 1.66 million (EVs) were sold in India in FY24, according to the Ministry of Road Transport and Highways, only four were classified as agricultural tractors. Two-wheelers and three-wheelers made up for 94% of all EVs sold in FY24, though sales of electric cars and buses increased approximately 90% and 75%, respectively, over FY23. The e-tractor is a multifaceted opportunity to support India’s green growth by expanding exports and decarbonizing transport. Let’s dig into this and see how policy can help accelerate the market. It has been more than three years since the launch of the first e-tractor in India. While there are several more e-tractor models on offer for Indian consumers today, adoption is still negligible despite sales of close to 1 million tractors annually. Tractor sales are an indicator of rural economic growth and one of its key drivers. According to PPAC data, tractors recently consumed an average of 4.8% of India’s highspeed diesel, close to the amount consumed by buses (5.9%) and four times the amount consumed by three-wheelers (1.2%). Tractors are subject to Bharat Stage (CEVTrem) IV tailpipe emission standards apply to agricultural tractors with engine power of more than 37 kW. However, about 78% of tractors sold in 2021 had engines with less than 37 kW of power. While these will be regulated by upcoming BS (CEVTrem) IV standards. Tractors with engines less than 37 kW could be included in the BS IV regulation without waiting for the BS V standard in 2026. It’s technologically feasible, as Indian manufacturers are already meeting these standards in the tractors they manufacture for export to the United States, where similar standards are in place. There are still data gaps that hinder a full understanding of tractor applications and their usage patterns in India. For one, data to differentiate between the energy consumed by tractors for agricultural operations and for moving people and goods is lacking. Primary surveys are needed to better understand both the agricultural and social operations of tractors and their ownership models (purchase versus renting). Having this information would enable strategic policy interventions to accelerate e-tractor adoption in India. With a concerted policy push that starts soon, the central and state policymakers can leverage the descendants of the green revolution to support e-tractors and India’s green growth. (Disclaimer: Aravind Harikumar is a researcher with ICCT in India. Views are personal.)
California, other states seek recall of Hyundai, Kia vehicles over theft The California attorney general and the attorneys general of 17 other states on Thursday asked a federal regulator to recall and vehicles, saying they are more likely to be stolen because they lack safety features that are standard in other . Hyundai Motor Co and Kia Corp vehicles represent a large share of stolen cars in multiple U.S. cities, according to data from police and state officials. While most cars in recent years have been installed with industry standard , the Korean have no push-button ignitions and immobilizing anti-theft devices. Hyundai Motor is the biggest shareholder of Kia. "Kia's and Hyundai's failure to install standard safety features on many of their vehicles have put vehicle owners and the public at risk," California Attorney General Rob Bonta, who is spearheading the push by the states for a recall, said in a statement. The states have written to the with their concerns. Hyundai said its vehicles have engine immobilizers that prevent a vehicle from starting unless the correct key or fob is used, making it compliant with federal anti-theft requirements. "These specific models comply fully with all applicable federal standards, a recall is neither appropriate nor necessary under federal law," said Kia in a statement. U.S. theft claims were nearly twice as common for Hyundai and Kia vehicles compared with all other manufacturers among 2015-2019 model-year vehicles, the Insurance Institute for Highway Safety's Highway Loss Data Institute said last year. TikTok videos that show how to steal Kia and Hyundai cars without push-button ignitions and immobilizing anti-theft devices have spread nationwide, leading to a raft of car thefts. Bonta said the carmakers included the industry standard immobilizer in the same models in Canada and Europe but chose to "carve out" the United States. "Instead of taking responsibility with appropriate corrective action, these carmakers have chosen instead to pass this risk onto consumers and our communities," Bonta said. The automakers in February said they would offer software upgrades to 8.3 million U.S. vehicles to help curb thefts. However, upgrades will not be available for many affected vehicles until June and cannot be installed on some 2011-2022 models, Bonta's statement said.
Ferrari fever? Classic cars roar into investment funds In 1977, a owner offloaded his 1962 250 GTO because his wife complained it was too noisy, recounts Andrea Modena, head of Ferrari's classic car division. It was either her or the car. "Nowadays, I'm not sure the wife would have won out." Times have indeed changed. In 2018, the same Ferrari model became the most expensive car ever sold when it fetched USD 48 million at auction. Last year, that record was flattened by a 1955 Uhlenhaut Coupe that raced to 135 million euros (USD 149 million). These kind of megadeals are at the vanguard of billions of dollars of annual spending on globally in a wave of in this alternative asset. Vintage cars have risen 185% in value over the past decade, outstripping the growth of luxury rivals wine, watches and art, and ranking second only to rare whiskies, according to Knight Frank's 2023 wealth report. The market has expanded beyond a comparatively small community of collectors to include investors drawn by the prospect of high returns plus a lack of correlation with mainstream portfolio assets such as stocks and bonds. "We've been monitoring the market for a long time," said Giorgio Medda, CEO and global head of asset management at Italy's Azimut. "The track record of the past 30 years tells us classic cars have become a financial asset class we want our clients to have in their portfolios." This year, the asset manager is launching what it describes as the world's first "evergreen" fund to invest in vintage vehicles, and says it'll only bet on cars worth more than 1 million euros each. Advised by Alberto Schon, head of Ferrari and Maserati dealer Rossocorsa, the fund says it will pick vehicles with a unique history. While Azimut's fund will have no end date and can receive new money indefinitely, small Swiss asset manager Hetica Capital launched a 50 million euro 'closed-end' fund in 2021, which it also said was the first of its kind. The Hetica fund, which is targeting returns of 9%-15% after seven years, has bought a dozen cars so far and aims to get to 30-35 cars by the fifth year, leaving the last two years to sell the vehicles and pay investors. The plans are bold. "We've seen more than 100 attempts at setting up funds in the past. Nobody managed to build both a diversified investor base and a diversified car portfolio," said Dietrich Hatlapa, founder of classic car research house HAGI, which supplies the sector data used by Knight Frank. It's also not a sector for the financially faint-hearted. Registered in Luxembourg, both the Azimut and Hetica funds have a minimum entry investment bar of 125,000 euros. "We get loads of calls from people who're looking to invest 1,000-2,000 euros and we have to turn them down," said Walter Panzeri who runs Hetica's Klassik Fund. Moreover, a small scratch or dent, or a replacement part, can deal a heavy financial blow. For example, replacing just the bumper of a rare can cost USD 15,000, said Modena. KEEPING THE CARS
Fund. Moreover, a small scratch or dent, or a replacement part, can deal a heavy financial blow. For example, replacing just the bumper of a rare can cost USD 15,000, said Modena. KEEPING THE CARS ALIVE Running costs for car collections, including hefty storage and insurance fees, could easily amount annually to 5-6% of the portfolio's value, according to Florian Zimmermann, who started buying vintage cars when he worked at Mercedes-Benz and has since built a collection of 300 vehicles with a partner. "It's getting harder and harder to find the proper mechanics to keep these cars alive. And you have to spend quite an amount of money to keep all these cars in running condition," he said. Indeed investment funds managing car portfolios can be a money-spinner for the classic car divisions of , which not only provide repairs and parts, but also certify the authenticity of vehicles to take part in shows and competitions. The certification process alone can cost around 20,000 euros, according to Peter Becker of Mercedes-Benz Classic who said only the carmaker's experts, with access to its archives, could confirm the originality of a classic model. Nonetheless, the classic car market is expanding as the number of wealthy people also rises; the value of vintage cars grew 25% in 2022, their strongest performance in nine years and second only to art's 29% increase, according to Knight Frank. Classic vehicle insurer Hagerty estimates there are about USD 80 billion collector vehicle transactions a year globally, including all auctions and private sales. While North America remains the largest market for auctions, with Hagerty recording USD 3.4 billion in auction sales in 2022 versus USD 774 million in 2007, Zimmermann said a growing number of buyers had emerged in recent years in the Middle East, India and China. 'THEY'LL BE CULT OBJECTS' The global race to renounce will only serve to heighten interest in these relics of a vanishing era, say some market players. "Electrification will favour classic cars," said Cristiano Bolzoni, head of Maserati's vintage car unit Maserati Classiche. "Over time they will become cult objects." Ferraris are the most prized vintage autos, according to Adolfo Orsi, founder of the Classic Car Auction Yearbook which has been tracking auction sales data since 1990, who described them as "absolutely the blue-chips of this sector". Ferraris commanded an average value at auction of USD 589,000 in 2021-22, followed by Mercedes-Benz cars on USD 378,000 and Porsches with USD 348,000. "The classic car community has changed tremendously over the past five to 10 years," Zimmermann said. "Once it was only people who knew the cars inside out. But over time others simply thought: I like these cars, I can afford one and I don't lose money by buying it."
A mini industry spawns under the hood of a booming car market Fuelled by rising disposable incomes, an influx of new sport-utility vehicles, and attractive loan rates, India's is racing ahead. India's passenger vehicle sales surged past 4 million units for the first-time ever in calendar year 2023. As per industry estimates, about 4.1 million passenger vehicles were sold in the last calendar year, an increase of around 8.2% compared with sales of 3.79 million units in 2022. Under the auto boom, a smaller industry is also growing: the used or pre-owned car market, where for every two new cars, three are sold. In a recent media interaction, CARS24 Co-Founder and CEO, Vikram Chopra, noted that the Indian is expected to touch the USD 100 billion-mark in 2034 as against USD 25-billion in 2023, owing to the rising disposable incomes and a growing middle class. As per the company’s internal report, the market is poised to grow at a 15% CAGR in the said period. With the used-car market still largely untapped, even the luxury carmakers are driving in. From Porsche to Mercedes-Benz in the luxury segment and from Maruti to Mahindra and numerous startups, all want a share of this growing market. Accelerate, clutch and boom It would only be fair to say that the is booming, so much that till FY27, it is expected to grow at a rate of 19.5% and an astonishing 30% in smaller towns or non-metro cities, as per a pre-owned car industry report. Notably, metropolitan cities accounted for 65% of used car supply in FY22. In FY23, the used rose 27% to 5.45 million units, ET had reported. Furthermore, the demand is only going to rise with the building of trust in this new market as it gets more organised over the years. In the second quarter of 2023, 57% of customers in the pre-owned segment were first-time buyers, but this number rose to 63% in the third quarter of the same year, as per data gathered by Spinny, a used car marketplace. Back in 2001, Maruti Suzuki was one of the first players in this segment with its True Value channel, enabling trust and breaking stereotypes attached to the purchase of ‘second-hand’ vehicles. Since then, the industry has evolved in more than one way and technology has been pivotal in its growth. Startups like CarDekho, SoftBank-backed CARS24 and Tiger Global-financed Spinny have carved a niche of their own with certifications, hassle-free payment system, refurbishing, quality checks and even financing, giving exactly what a young customer wants. Luxury brands such as Jeep, BMW, and Mercedes-Benz have also seen consistent growth. While Chopra of CARS24 says there’s a long way to go, the industry has come a long way too. The automobile industry’s own hiccups, including the semiconductor crisis, supply chain disruptions and geopolitical tensions gave a sudden big boost to the pre-owned cars market. Why is the Indian consumer shifting gears? As established, shortage of semiconductors, critical for advanced and new-age cars, had disrupted
gave a sudden big boost to the pre-owned cars market. Why is the Indian consumer shifting gears? As established, shortage of semiconductors, critical for advanced and new-age cars, had disrupted supply-chains and had a huge impact on sales of leaders of this sector. Due to this, customers had to face long waiting periods, as long as six to eight months, and this affected the whole idea of ‘buying a new car’ during the pandemic. Thus, opting for used cars became the immediate option for the buyers. In tandem with this market’s startling growth, loans for used cars, which have primarily carried higher interest rates, have also seen a key shift with narrowing of the interest rate from 400 to 250 basis points. High demand for popular utility vehicles, which make up half of all passenger vehicle sales in India, has further created a severe demand-supply mismatch in the used car market, raising the average selling price as well as margins of organised players and contributing to this particular segment. Growing disposable income levels and a rising number of young professionals seeking to commute in the city also contributed to the pre-owned car wave, alongwith rising costs of new cars equipped with high-end technology. The growth was also fuelled by digitisation of used-car business which has made the process a lot easier, accessible and trustable. Also, the new-age used-car purchase comes with perks like after-sales warranties, certifications, multiple checks, multiple payment options and easy delivery too. For instance, with a complete ‘consumer first’ approach, German sports luxury car manufacturer Porsche forayed into the pre-owned car segment in India in 2022. The Porsche Approved programme comes with a comprehensive warranty on pre-owned cars for a minimum of 12 months, including access to the 24-hour roadside service after passing a rigorous 111-point inspection. The age of cars is going down, causing more cars to land in the used car market. An Indian customer gets rid of a car after covering a distance of 70,000 kilometers on average. While the ideal age for a pre-used car is between 2 to 5 years old, it was about 4 years in FY22, compared to 4.4 years in FY21. Alert: Speed bump The used car segment must be catching pace but it is also marred by speed bumps. While the pandemic fuelled the sector’s growth when new car supply was squeezed, its waning slowed the market down as new car supply gathered pace. While for the used-cars segment, the increase in sale of new cars bodes well in terms of fresh supply of older cars coming to the market, it also takes away from the growth seen when customers with an appetite for four-wheelers had to turn to used cars given the long waiting periods for new vehicles. While capital drove business for startups initially, profitability has remained an issue. The topline growth was fuelled by heavy spending (which is not the case anymore) into marketing, advertising as well as expansion into newer markets,
initially, profitability has remained an issue. The topline growth was fuelled by heavy spending (which is not the case anymore) into marketing, advertising as well as expansion into newer markets, analysts have said. “For venture-backed companies, like Spinny and Cars24, they have raised a lot of capital that they were burning indiscriminately to gain market share from non-branded dealers," a mobility focussed venture investor had told ET in May last year. "They were offering prices 5-10% more than what one would normally get, just to get top line growth. They were losing around INR 40,000-INR 50,000 on every car. Now they’ve started giving reasonable pricing with a focus on the bottom line”. Startups have been compelled to explore new routes in order to sustain, if not get profitable too. According to an ET report, these firms faced the slowdown as the “growth-at-all-costs” push by venture-backed companies took a backseat and improving unit economics took all the light. Apart from tweaking their business models, these tech-driven startups moved towards auto financing, insurance and classifieds. While Spinny shut down its standalone portals for premium car sales and budget vehicles, CarDekho also closed its retail used-car sales and customer-to-business (C2B) segments citing “inviable unit economics”. Speaking to ET three months ago, the founder of a unicorn used-car startup said the overall market was buoyant but a change in the investment scenario for startups meant that priorities for them changed. “I would not say the market has shrunk…it has been doing decently well. But there was a sudden change for all of us in the business and how we approached things. Everybody had to take the tough call that there is a need to prioritise controlling costs in order to maximise the runway and delay a next round of funding. At least for the first six months of FY23 that was the case,” the founder said, asking not to be named. “It is difficult to fight that battle along with recording high growth levels. Sometimes you need to slow down a bit in order to grow faster later,” he added. The prospects for the used car market are bright despite the setbacks it has suffered as it is still maturing and organising. The more new cars are sold and the pricier the new cars get, the more the used car market will grow.
BLive and Awign partner to onboard 1ok riders for EV Rental Programme in India , an e-mobility platform in India, has formed a strategic partnership with , the country's largest work-as-a-service platform, to onboard 10,000 riders for BLive’s over the next 12 months, aiming to revolutionize last-mile delivery with affordable, sustainable electric vehicles (EVs). Awign, recognized for its work fulfillment solutions, focuses on streamlining work processes and managing costs for large organizations across various sectors, including Automotive, Retail, FMCG, Education, Manufacturing, Construction, and Pharmaceuticals. The platform boasts a community of over 1.5 million gig workers, making it a key player in the industry. This partnership with BLive provides gig workers access to electric vehicles, thereby transforming the last-mile delivery ecosystem. BLive’s EZY EV Rental Programme offers flexible rental terms and weekly rates as low as INR 1,500. Additionally, the programme includes a "Rent to Own" model that allows riders to own their EVs after 36 months, promoting both sustainability and economic independence. According to industry surveys, 77% of last-mile delivery riders prefer EVs for their environmental benefits, though financial barriers persist. BLive’s initiative tackles these issues by offering competitive rates to encourage wider EV adoption. By partnering with brands like TVS, Ather, Bounce, and Revolt, BLive ensures its fleet comprises top-tier electric vehicles that offer significant savings on fuel expenses, insurance, and maintenance. Through the BLive EZY platform, riders can acquire an EV with minimal deposits without needing a CIBIL check. The program includes comprehensive insurance, roadside assistance, and extended warranties, ensuring the reliability of service. Moreover, gig workers stand to benefit from substantial fuel cost savings and the opportunity to contribute to a more sustainable future. , CEO and Co-Founder of BLive, expressed his optimism about the partnership: “This collaboration with Awign marks a significant milestone for BLive. Our EZY EV Rental Programme has been instrumental in reducing the financial barriers for delivery workers, and this partnership will further accelerate the adoption of electric mobility in India. Together with Awign, we are committed to transforming last-mile delivery and promoting sustainable practices.” , Co-founder and CBO of Awign, commented on the partnership: "At Awign, we have been actively working in the space of sustainable mobility and related technologies for a while now. From deploying charger installation infrastructure across India to now onboarding 10,000 riders for BLive's EZY EV Rental Programme, we continue to work towards operational excellence as well as sustainability." Sustanability via collaboration The collaboration aims to accelerate electric mobility adoption among gig workers, enhancing operational efficiency and reducing environmental impact. Deploying 10,000
Sustanability via collaboration The collaboration aims to accelerate electric mobility adoption among gig workers, enhancing operational efficiency and reducing environmental impact. Deploying 10,000 electric bikes within the next 12 months, aim to set a new standard for sustainability and economic empowerment in the gig economy. The Indian EV industry is experiencing rapid growth, with the market for electric two-wheelers projected to reach 1.6 million units by 2025. The gig economy, especially last-mile delivery services, significantly contributes to this growth. This collaboration leverages the trend, making the transition to electric both accessible and advantageous for gig workers across India.
Car sharing platform Zoomcar elevates Nirmal NR as India CEO Domestic marketplace on Friday announced to elevate as the CEO for India market. Working as President for Growth and Marketplace at Zoomcar, Nirmal will now be responsible for all aspects of growth, operations and customer experience for the company in the country. "His diverse skillsets and seasoned leadership will play an instrumental role in continuing to scale the India business," said Greg Moran, CEO and Co-Founder, Zoomcar. With more than 10,000 cars already on the platform across several cities, the company expects to grow the platform to over 50,000 cars and 100 cities this year. At present, Zoomcar offers individual vehicle owners a joining bonus of Rs 10,000 along with additional incentives tied to high quality host ratings on the platform. A Zoomcar also offers enhanced incentives for the host's initial time on the marketplace. "At Zoomcar, we're currently sitting on the cusp of a dramatic transformation within personal mobility," said Nirmal. Headquartered in Bengaluru, Zoomcar employs over 300 people and operates in 50 cities pan-India and four countries globally. In 2020, it launched , the Company's enterprise SaaS based mobility solution to vehicle OEMs and insurance companies. In November last year, Zoomcar completed a $92 million private placement led by New York City-based SternAegis Ventures, along with participation from other investors. Also Read:
Over 11,000 vehicles scrapped till March 31 this year New Delhi: A total of 11,025 vehicles (7,750 private and 3,275 government vehicles) have been scrapped till March 31 this year by the registered vehicle scrapping facilities, Parliament was informed on Wednesday. In a written reply to the , Road Transport and Highways Minister further said 24 statescyclist. The proposed scheme is to take care of the immediate needs of the hospitalisation of the victims for the first 48 hours from the time of hospitalisation or provide necessary treatment up to a cost of INR 30,000, whichever occurs earlier. "For this scheme, NHAI has invited bids and technical bids of the tender are under evaluation," Gadkari said. The ambulance projects were sanctioned for the entire country, and state-wise separate funds were not allocated, the minister added. "In this regard, NHAI has sanctioned funds of INR 395.89 crore in the last 5 years for the deployment of ambulances through centralised agencies," he said.
Audi India opens Audi Approved: plus facility in Kozhikode, Kerala : , the German manufacturer, inaugurated on Friday a new facility, in Kozhikode, Kerala. The Sales and service facility is located at NH-17, Calicut-Kannur Road, Pavangad, Puthiyangadi. Spanning 6200sq. ft., the state-of-the-art 3S facility has the capacity to display 9 cars. The inauguration marks the opening of Audi India’s 22nd Audi Approved: plus facility in India. Balbir Singh Dhillon, Head of Audi India, said, “With the inauguration of our 22nd Audi Approved: plus showroom in Kozhikode, Audi India comes a step closer to the people of Kerala. The growing demand for pre-owned Audi cars in the region presents an exciting prospect for the brand and provides an opportunity for us to reach out to those with aspirations of luxury, and we enthusiastically look forward to customers and welcome them to the Audi family.” Every pre-owned vehicle 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 and complete vehicle history before purchase. Additionally, customers can also avail easy financing and insurance benefits through the programme. Rajiv Sanghvi, Dealer Principal, Audi Kozhikode, said, “We are delighted to announce the inauguration of Kozhikode’s very own Audi Approved: plus. There has been ample demand for pre-owned luxury cars in the region, and we look forward to servicing our customers at our state-of-the-art facility.” Also Read:
India has found a way towards mass electrification: swap batteries It may not have enough electric vehicles, powerpacks or the capital, but India has found a way towards : swap batteries. The solution, where empty batteries can be exchanged for charged-up ones, is still in nascent stages in China, the world’s largest EV market, where it is anchored in strong government policy. Elsewhere, it hasn’t quite taken off. But for India, it could help leap-frog the nation’s bid to reduce transport emissions and boost its electric footprint. Across the Indian capital’s dense localities, battery swapping stations are becoming a frequent site at local provision stores and small retail outlets. Meanwhile, the government has pushed out an policy draft in recent months to bolster adoption and supply. It’s also scouting sites along India’s emission-heavy highways for new stations for swapping and charging. For the most part, ambitious Indian startups have pushed their way forward. Sheru, a technology platform, allows electric autorickshaw drivers to swap batteries at retail stores or pay as they use them. It’s working with stakeholders across the energy storage value chain. Meanwhile, Battery Smart, which just raised $25 million in a funding round led by Tiger Global, is focused on quickly building a swapping network and is working with domestic battery manufacturers. Sun Mobility is partnering with Amazon India in the state of Maharashtra — home to the financial capital, Mumbai — to put swapping stations at its warehouses. For now, it’s showing promise because the Indian vehicle market is dominated by two and three wheelers, making it simpler to charge and swap out the smaller powerpacks. It brings down the costs of commute sharply for users while increasing energy efficiency. These smaller vehicles are also responsible for a significant share of the emissions. This way could prove to be a model for other emerging markets across the world struggling to meet their green promises. The policy draft, while a progressive step, will need to be backed by state governments and big bucks to be adopted in smaller, denser and more polluted second and third tier cities. It’ll also need to get meatier on details on the types of batteries to maintain quality, insurance for the safety of drivers and manufacturers, and providing better tax incentives for increasingly pricey powerpacks. In addition, state enterprises need to get involved, as they have in China. The longer-term challenge for India will be whether it can use battery swapping for cars effectively when mass adoption reaches the four wheeler category. Even the likes of Tesla Inc. have tried battery swapping. But Musk’s company abandoned the project after setting up just one battery station. Other attempts include a Renault-Nissan alliance that had agreed to manufacture 100,000 EVs to the specifications of Better Place, the now defunct venture capital-backed firm that developed and sold battery charging and switching
alliance that had agreed to manufacture 100,000 EVs to the specifications of Better Place, the now defunct venture capital-backed firm that developed and sold battery charging and switching stations. The firm launched its first station in Israel in 2011 and eventually filed for bankruptcy two years later because it was expensive and batteries needed to be common to drive utility. In China, Nio Inc. has had to make significant capital investments. As of the first quarter, the firm had installed over 960 battery swapping stations in 197 cities across the country . But it’s still running operating losses because of the rising depreciation and expenses. Nio expects losses associated with swap stations to increase for now, executives noted on the latest earnings call. That stands as a question — and a warning — for India when it eventually transitions battery swapping to four-wheel vehicles. Battery swapping is effectively buying New Delhi time to get its act together on broader decarbonization and clean power generation. In addition, as batteries get better or the variety of chemistries in use change, charging times will fall and range will increase. Over time, this could slow growth for swapping. Still, lithium ion batteries are proving to be in short supply, and expensive. Policymakers are already looking to move on from the widespread but costly lithium ion variety, towards those that are made from more abundantly available materials. For now though, there is enough to supply two and three-wheelers. If policymakers can drive investment and capital towards the startups pushing through swapping, the rising awareness and utilization will ensure consumers are prepped for more electric vehicles in the future and hooked to the longer-term cost efficiencies. Without that, India could lose a prime opportunity to go electric and get cleaner.
TN govt unveils logistics policy, aims at reducing cost; proposes incentives Chennai: The Tamil Nadu government on Saturday unveiled its ' 2023', featuring objectives including enabling a robust logistics infrastructure development. The targeted outcomes include a reduction in cost of logistics and leveraging private participation aided by initiatives like fiscal incentives for , , , , start-ups and technology service providers among other related enterprises. The government "intends to offer various fiscal incentives to market participants, operators and developers towards improvement in efficiency and visibility of trade and encourage business opportunities through private participation in the ," the policy said. The vision of the policy, released by Chief Minister in the Secretariat, is to promote an integrated, reliable, cost-efficient and sustainable logistics system in Tamil Nadu for enhanced competitiveness and fast-tracked economic development. The government of Tamil Nadu would, in coordination with the and through private participation, on pilot basis encourage commencement of container rail services and kisan rail services on strategic routes under market development approach. 'Strategic coastal shipping routes' would be assessed and identified to encourage and promote inter-modal transport that would result in cost effective services. Coordination with relevant agencies to improve quality of air cargo related services, working with Central Bureau of Indirect Taxes and Customs and other authorities and operators to take steps for reducing dwell time at air cargo complexes and seaports. The government would extend the existing single window clearance setup under the aegis of Guidance Tamil Nadu and FaMe TN department to logistics activities for enhancement of ease of doing business. Identification of skill gaps vis-a-vis logistics job roles and preparation of 'logistics sector skill plan' is one of the initiatives to skill the workforce. Also providing medical and health insurance to heavy vehicle drivers registered in the State at a nominal price would be explored. All such proposed initiatives form part of strategic interventions for cost-effective logistic services by supporting market development. Enabling integrated and robust logistics infrastructure development, promoting availability of cost-effective and high-quality services are among the strategic objectives. Adopting new age technologies, enabling skill development, and building resilience and sustainability in logistics eco-system form part of key objectives. The outcomes targeted are reduction of cost of logistics for export-import as well as domestic freight, leveraging private participation for development of logistics infrastructure and formulating an effective coordination mechanism between State and Central agencies for facilitation and execution of initiatives in logistics sector. Consistent high ranking of Tamil Nadu in the LEADS (Logistics Ease Across Different
mechanism between State and Central agencies for facilitation and execution of initiatives in logistics sector. Consistent high ranking of Tamil Nadu in the LEADS (Logistics Ease Across Different States) index of the Union government and enhanced economic growth and employment generation are among the other outcomes outlined in the policy. The interventions to achieve the objectives include leveraging the GIS (Geographic Information System) layers of the State Master Plan being prepared under the PM Gati Shakti National Master Plan for enabling integrated planning and connectivity enhancement. Identifying and resolving existing connectivity bottlenecks and development of new infrastructure is another area of intervention. Earmarking land parcels in upcoming industrial parks, clusters for the development of truck terminalestates/clusters in the State and make them available for logistics activities, wherever feasible." The government would identify and earmark land parcels, 'minimum 50 acres,' at strategic locations for development of Multimodal Logistics Parks, Logistics Park, Warehousing Clusters and Private Freight Terminal (PFT). The fiscal incentives would be applicable for 5 years from the date of 'promulgation of the policy' and further extension could be considered based on effectiveness and emerging requirements. Proposed incentives include providing one-time reimbursement of 100 per cent of the patent registration fee in India to technology providers, start-ups and other business units developing technology enabled solutions for logistics efficiency improvement subject to a cap of INR 25,000 per patent. One-time reimbursement of 100 per cent of vehicle registration charges and road tax for 1 year for reefer trucks including retrofitting of capacity more than 15 MT by logistics trucking companies in Tamil Nadu. The fiscal incentive will be provided to registration of first 500 reefer trucks in the State during the policy period.
Irdai to set up hubs on motor insurances The regulator on Thursday decided to set up two hubs on and property insurance and also an advisory committee with the overall objective to promote loss prevention measures in the general insurance industry. "It has been decided to form a hub on property insurance at 'National Insurance Academy (NIA)' and one on motor insurance at 'Institute of Insurance and Risk Management (IIRM)," the Insurance Regulatory and Development Authority of India (IRDAI) said in a statement. The decision to set up these hubs was based on the recommendations of a working group on loss prevention and minimisation in the general insurance industry. In addition, there will be an advisory committee under the chairmanship of the NIA director, which among other things will create a repository of past risk inspection reports and developing standard surveyinspection report formats. The advisory committee, which has a term of two years, has been asked to work progress report to the Irdai on monthly basis.

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