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the tools they need for success.” Niraj Bajaj, Chairman, Ltd., said, “As stewards of the Bajaj legacy, we recognize our responsibility of giving back to society. Our new initiative, Bajaj Beyond, truly goes beyond mere training programs. What we have launched is a holistic approach that trains and prepares first-generation graduates from smaller towns and cities to realize their full potential." "By addressing all aspects of employability—attitude, skills, and knowledge—Bajaj Beyond equips them to build successful careers. We are not just closing the skill gap; we are creating a versatile pool of skilled resources that will drive India’s growth story in a comprehensive manner and strengthen the economy to compete in the global arena.” At the launch of the initiative, Rajiv Bajaj, Managing Director, Bajaj Auto Ltd., said, "Launching the Bajaj Engineering Skills Training (BEST) last year has been a valuable learning experience for us. It gave us a very clear picture of the critical gap between theoretical education and practical skills needed in the manufacturing industry." "The insights gained through BEST acted as a cornerstone in laying down the groundwork. With Bajaj Beyond, we will expand our skilling efforts across the group. Together, we will design future-proof curriculums, provide real-world, hands-on experiences, and equip our youth with the adaptability and innovation required to thrive in the ever-evolving mobility landscape." Sanjiv Bajaj, Chairman & Managing Director, Bajaj Finserv Ltd, said, “Inspired by our founder, Jamnalal Bajaj, the Bajaj Group has a legacy of working for the ‘common good’ of society and of serving the nation. Skilling has been at the heart of our social impact initiatives and we have seen the positive multiplier effect it has on the well-being of youth and their families." "Our Certificate Programme in Banking, Finance and Insurance (CPBFI) prepares youth for employment in the fast-expanding financial services sector which is currently seeing a shortage of talent. With Bajaj Beyond, we commit to strengthening India’s skilling ecosystem, especially in the hinterland, enabling greater access to economic prosperity,” he added.
Time to forget RPA? Why Intelligent Automation companies can be real blue-chip investments This has now become an important topic of debate. Which one is true? Let me attempt with a point of view. A digital revolution led by ( ) has been underway and is very subtly but quickly changing the way work gets done. In my view, this is a good thing - with an aging population in several developed and nearly developed economies, we are in dire need to find alternate ways to get the work done, either through automation or . Globally, RPA has been the go-to tactical lever to reduce operating costs by automating rules-driven, error-prone manual processes. The benefits of RPA extend beyond cost reduction due to headcount release. People thus released can be retrained and deployed to perform important strategic roles or those that require human intelligence based on subjective knowledge. Results have shown that RPA can manage nearly 60% of the processes across most organisations that are either manual, straight through, or error prone. However, this does represent the true picture, because this 60% of processes are not end-to-end enterprise-wide processes. In terms of end-to-end enterprise-wide processes, RPA can address about 25-35% of the enterprise-wide processes. You may automate a large part of Procure to Pay (standard) using RPA and pieces of order to cash, but touchless end-to-end procure to pay or order to cash using RPA is mostly a pipe dream. Another point to note is that most of the processes being automated are primarily in Finance, HR, IT, and reporting and not really on the operations side like manufacturing, inventory management, supply chain, logistics, research & development. Besides industries have not yet consistently adopted RPA e.g., banking, financial services, and shared services are the furthest ahead with consumer products, retail, and manufacturing following close behind. Engineering, metals, mining, hospitality, healthcare, insurance, etc have some catching up to do. Thus far, RPA was at best a tactical initiative barely visible to the CEO and the Board. But the disruption driven by the pandemic has forced the businesses to leverage emerging technology in a far more strategic manner to truly complement the human worker e.g., automate processes end to end in a lights out mode and not just in finance, HR, and IT but enterprise-wide. Now the next question is how does one automate processes end to end and enterprise-wide? These can be addressed through a combination of such as RPA, , and generation, , , etc. As an example, let us look at the process of invoice processing with varied invoice inputs (structured and unstructured inputs), invoice classification of goods vs services, and correct tax verification. This can be solved using NLP for reading varied invoice input formats with structured and unstructured inputs, invoice classification and tax validation can be done by a machine learning algorithm and the approval and posting can be
reading varied invoice input formats with structured and unstructured inputs, invoice classification and tax validation can be done by a machine learning algorithm and the approval and posting can be done by RPA. is now a strategic lever to help organisations operate in a lights out mode – it is the intelligent digital worker – that can not only automate key processes end to end, but also help organisations to create new products and services e.g., the ability of the pharma companies to conduct large scale research and create vaccines and drugs to fight the pandemic in record time, efficiently scale the supply chain and helping humanity. Needless to add they improved their revenue and profitability. Finally, let’s look at some numbers. Per a Forrester report, the RPA market is set to be around $2.9 billion in 2021 up from $125 million in 2016. This is dwarfed by the enterprise application market pegged at around $215 billion (by several analysts such as Allied Market Research, IDC, etc). Interestingly as per a Gartner report from FY20, the process agnostic software that powers hyper-automation (e.g. RPA, Low Code application platforms, , virtual assistants) is likely to be around $25 billion in 2021 and $30 billion in 2022. So, is RPA the darling of PEs vs PEs that need to look beyond? The simple answer is that traditional RPA has matured and is now being replaced by Intelligent Automation, which is a combination of RPA, ML, NLP, NLG, intelligent chatbots, and intelligent workflow. A pure-play RPA product company (most barring a few are despite whatever they claim) looks exciting in the short term (2-3 years at best) and may not be a great investment option. On the other hand, product companies that are focussed on Intelligent Automation can be the real blue-chip and investment multipliers both in the short and long term as not only can Intelligent Automation be leveraged to automate routine and mundane error-prone manual processes, but also automate complex processes that need subjective knowledge and can help organisations create new products, new services, new experiences, improve revenue, improve margins and EPS – in short, improve tangible stakeholder and shareholder value in the long term. The writer is Partner - Intelligent Automation at EY India.
Tesla's China sales slow as price-cut boost wanes 's electric vehicle (EV) sales in China rose last week but were still running short of the pace seen in the fourth quarter, indicating the bump from discounted prices in its biggest overseas market is waning. The U.S. automaker nearly doubled weekly retail sales in the week of Feb. 20 to 10,703 vehicles versus a week prior, showed data from China Merchants Bank International (CMBI) on Tuesday, which tracks weekly retail sales based on car insurance registrations. The tally was the highest after that of the week of Jan. 9 when sold 12,654 Model 3 and Model Y cars after lowering prices by as much as 14% on Jan. 6. However, year-to-date average daily sales was 1,016 cars, whereas in October and November the figure was 1,317, indicating that price cuts may not be enough to accelerate sales in the first quarter compared with the fourth. Tesla didn't immediately response to a request for comment on Tuesday. Sales are slowing in part due to an ageing product line, said Yale Zhang, managing director at Shanghai-based consultancy Automotive Foresight. Consumers are also delaying purchases while waiting to see if other EV makers cut prices, Zhang said. The U.S. automaker has lagged competitors in China in introducing new models, improving navigation systems and adding luxury interior touches or white-glove customer service to meet a developing range of consumer tastes, analysts and fans said. Chief Executive will announce the third part of Tesla's "Master Plan" on its March 1 Investor Day, when the firm has to convince investors that even though rivals are catching up, Tesla can widen its lead with another leap forward. While competition intensifies, Tesla aims to grow exports and expand into new markets to digest output from its factory in Shanghai. It has started delivering cars to Thailand and set up its first Supercharger station in the Southeast Asian country earlier in February. Tesla had planned to keep Shanghai's average weekly output at 20,000 vehicles in February and March, while its plant in German capital Berlin increased Model Y production to a third of that in Shanghai. Tesla's performance is in line with China's overall EV sector, which has suffered from the end of a more than decade-long government subsidy. Its share of the country's fragmented new energy vehicle market including both all-electric and plug-in hybrid cars slightly declined to 9% from 10% a year earlier, according to CMBI data. Meanwhile, the market share of BYD Co Ltd surged to 37% from 27%, CMBI data showed. Smaller EV players such as Leap Motor and 's Ora are among those whose market share shrank. Also Read:
Mercedes-Benz, BMW and Audi may steer clear of India's new EV policy New Delhi: The of such as Mercedes-Benz, BMW and Audi may steer clear of the government’s new electric vehicle (EV) policy, which stipulates a sharp cut in on condition that a USD 500 million investment is made in local manufacturing. The luxury car makers that have already been present in India for decades would rather accelerate local assembly of in the country as the money will need to be ploughed in within three years of receiving approval under the scheme, said auto executives. The aforementioned companies didn’t officially comment on investments under the new policy. Given that luxury car manufacturers have already invested in India through plants and operations, they don’t see much benefit in another large investment for a segment that’s currently less than 2% of the broader car market. Besides, assembling kits in India already allows for a lower duty structure. “Anybody can assemble any car in India. The duty on CKD (completely knocked down) kits is 15% and this can be done without any commitment of further investments for manufacturers who already have plants for internal combustion engine vehicles,” a senior industry executive said on condition of anonymity. “The new has been designed to help new companies such as Tesla and to set up operations in the first few years before they can start local assembly.” Under the announced March 15, the government will allow the import of completely built-up (CBU) electric cars that have a minimum cost, insurance and freight value of USD 35,000 (INR 29.2 lakh) at 15% import duty for a period of five years in exchange for a minimum investment of USD 500 million to start local manufacturing. India levies import duty of up to 100% on completely built-up cars. Vietnamese EV maker VinFast is signing up for the policy. “With a long-term growth commitment in India, we have pledged an expenditure of USD 500 million, which includes the electric vehicle manufacturing facility in Tamil Nadu,” VinFast India CEO Pham Sanh Chau had said in a statement on March 18. “This forward-looking policy will help us introduce a wide variety of smart, green, premium-quality SUVs at inclusive prices, along with outstanding after-sales policies.” The Volkswagen Group, which sells vehicles under the VW, Skoda, Audi, Porsche and Lamborghini brands in the country, is studying the new EV policy. “We are examining the implications of the policy at the group,” said Balbir Singh Dhillon, head, Audi India. “There are commitments required related to investments and localisation.” Dhillon didn’t elaborate on future investments. A Mercedes-Benz India spokesperson didn’t specify the company's plans with regards to EV policy. "We are invested in the market, having an aggressive product strategy with more than 12 new products planned for debut in 2024, of which 3 will be new BEVs." A BMW India spokesperson declined to comment. Elon Musk-founded EV maker Tesla, which had
product strategy with more than 12 new products planned for debut in 2024, of which 3 will be new BEVs." A BMW India spokesperson declined to comment. Elon Musk-founded EV maker Tesla, which had lobbied for duty reliefs, didn’t respond to queries. Currently, 100% duty applies to CBUs priced at USD 40,000 (INR 33.5 lakh) and more, while those below that are subject to 70% tax. The companies that join the EV scheme will have to comply with additional conditions such as increasing the rate of localisation to 25% within three years and to 50% in five years. “Today, everything is being looked at from the regulatory or greenhouse reduction point of view,” said VG Ramakrishnan, managing partner at Avanteum Advisors, a boutique management consulting and advisory firm. “What’s unknown with regards to the switch to EVs is whether the consumer — the biggest stakeholder in the entire ecosystem--will move at the pace at which the governments of various countries would want them to move.” It will take six-eight months for benefits under the new EV scheme to start being felt in the market, said an auto industry executive, “By the time they apply and get approvals… There could be some impact (on account of the policy) starting the end of this year or beginning of next year.”
How Bajaj Finance and Shriram Group's super apps are shaping up As the financial super app race gets hotter, companies are upping their efforts to stay ahead. has lined up a series of steps to grow its presence in the super app space. In the first phase which has gone live, the company is offering 30 services across financial services, travel, entertainment, food, utility, and shopping among others in its super app. In the upgraded app, customers can secure loans, repay, get EMI cards, track fixed deposits and houses insurance, investment and no-cost EMI marketplaces. They can also avail rewards in the form of cashback, vouchers and . Also, the insurance marketplace on the app has nine players offering around 800 products. The Phase I features will be made available to all customers by this month-end, but will depend on how many upgrade their apps. Second phase The company will give the first update on Phase II in the second quarter of FY23 and the implementation will happen in three to four parts. In the second phase, Bajaj Finance will increase the app features from 52 to 72. Among the new features, the app will provide context and geographical-based searches, have personalised app features, etc. It will also host a two-wheeler marketplace, loans against fixed deposits, , short-term wallet loans, and merchant sponsored vouchers, among others. The number of merchants on the app offering no-cost EMI will also increase from 24,000 to 27,000. While old customers will be able to access the new features when they update the app, new customers will all be onboarded onto the new app. Any new customer choosing to secure an EMI card or loan through online or physical channels will have to use the app to access the loan agreement. All customer journey will be through the app with all information and updates provided through it. After the completion of the merger process of its companies by October, the Shriram Group will launch a super app for its financial products as well as for selling products of its partners. The super app will be a comprehensive platform for purchasing all types of automobiles at discounts, besides accessing financial products, including loans, mutual funds and insurances. The group wants to leverage its 20 million customer base and cross-sell the products post the merger. The group is in the process of merging (SCUFL) and with STFCL to create one of the largest non-banking finance companies (NBFCs) in the country, with Rs 1.5 lakh crore worth of assets under management. The super app developments come when India's top conglomerate the , and Adani Group are building their super apps to take on the super apps of Amazon and . SBI, and others are also in the race to offer a host of services under one umbrella. Also Read:
MSME revival panel submits report to govt Coimbatore: Seven months after its formation, the expert committee for the revival of micro, small and medium enterprises ( ) submitted its report to chief minister M K Stalin on Wednesday in the presence of minister , chief secretary , secretary and industries commissioner . According to a top secretariat official, the report contains short-term, medium-term and long-term recommendations for the revitalization of MSMEs. The official said the committee, headed by retired IAS officer Dr N , had suggested cluster-based development for MSMEs and identified a few sectors in the manufacturing and services industries that required the state government’s special focus. “The panel has proposed ease of doing business, ways to improve the single-window system and recommendations on implementing the credit-guarantee scheme. Some of the recommendations might find a place in the upcoming state financial budget,” the official said. He said they wouldn’t be publishing the report now. “The government will study it first. There will not be any problem in accepting the recommendations, but it depends on the time frame of implementation. It might take two months to plan the implementation.” The official said while some of the recommendations sounded innovative, it was uncertain whether any private sector partner could implement them on behalf of the government. “There is a suggestion to provide insurance for MSMEs affected by natural calamity. We have to check with the Insurance Regulatory and Development Authority to know if any company is offering such a product.” When contacted, the committee chairman said it was now up to the government to accept or reject some of the recommendations. Since the report is under consideration by the state government, Sunderadevan said he could not disclose their suggestions in the report. Constituted on July 28, 2021, the committee had held more than 60 meetings to ready the report. Also Read:
'Remarkable' surge in auto insurance costs fans US inflation Even as U.S. inflation has eased in the last year, an unusual culprit has emerged in recent months as a surprise force in preventing consumer prices from falling even further: . Consumer prices in December overall rose 3.4% from a year earlier, the said on Thursday in the release of the monthly Consumer Price Index, more than the 3.2% economists polled by Reuters had expected and up from 3.1% in November. Several familiar categories accounted for much of the overshoot, with stubbornly high shelter costs in particular accounting for close to two-thirds of the increase. But the highest annual increase for car insurance in nearly half a century made a notable upward contribution that may not be fading soon. "The behavior of the MVI ( ) component of the CPI has truly been remarkable, and I don't see any evidence of near-term relief," Tom Simons, U.S. economist at Jefferies, said in an email. Motor vehicle insurance premiums skyrocketed by 20.3% in December from a year earlier, the largest increase since the mid-1970s, the government data showed. Premiums have risen persistently all year on a monthly basis, too, climbing 1.5% last month. That is roughly on par with the average monthly increase over the last year, a rate that exceeds all monthly increases prior to the pandemic. What's more, auto insurance - an expense category that has rarely registered as a hefty influence in overall inflation - accounted for 15% of headline price increases over the final quarter of 2023. 'STICKY STUFF' Simons said several factors are adding to the rising premiums, such as increasing costs for the labor and parts to repair damaged vehicles, and the overall rise in vehicle prices over the last several years, which lifts the underlying collateral being insured. Declining demand from reinsurers is also a factor, he said, and "natural disaster risk is probably contributing on the margin." Auto insurance is typically regulated on a state-by-state basis, and costs are subject to major regional differences. "We may have some authorities there as well but those sit with independent agencies," White House National Economic Council Director Lael Brainard said when asked about the outsized jump in insurance costs. There is also a "call to big business to bring down those prices that they increased so much when supply chains were snarled." All of the U.S. government's independent agencies have "a real focus on tackling unfair and deceptive price practices," Brainard said. Still unclear is the degree to which insurance costs alone can impede further progress on inflation and disrupt the outlook for Federal Reserve interest rate cuts later this year. "It's hard for me to see how this might increase so much more from here that it would have an influence on monetary policy," Simons said. "I don't think we're looking at another 10-20% increase from here for the next 12 months, but again, I'm no expert on insurance." "This is
it would have an influence on monetary policy," Simons said. "I don't think we're looking at another 10-20% increase from here for the next 12 months, but again, I'm no expert on insurance." "This is a great example of the 'sticky stuff' in the inflation data ... prices for services that are largely non-discretionary and have no substitute."
Park+ to organise drive-through Covid vaccination camp in Gurugram Gurugram: The health department of Gurugram district, in association with and , is organising a drive-in vaccination camp for eligible 15-18 and 60+ age groups at Cyber Hub, Gurugram, on Sunday. With the third wave of Covid-19, the government of India has opened up vaccination for the 15-18 age group and a booster dose for the 60+ age group. Park+ organised 60+ drive-through vaccination camps in 2021 in Haryana and Uttar Pradesh and over 25,000 people benefitted from the same. Park+ is India's highest rated car app with close to 2 million downloads and is building an entire ecosystem for car owners. Amit Lakhotia, Founder & CEO, Park+, said, "With an increase in the number of cases, we felt it was our duty to do everything possible in order to help the community against COVID-19. Park+ is exploring possibilities to organize similar drive-through vaccination camps across the country." Virender Yadav, CMO, Gurugram district, said, "This initiative is aimed at benefiting teenagers (1st dose) and adults with comorbidities (booster dose) since they are the most vulnerable in the current situation. Drive through, in association with Park+ and DLF cyber hub will help maximise convenience as these people can get vaccinated in the comfort of their own car. We plan to have many more similar camps in Gurugram in the coming weeks." This vaccination camp is scheduled on Sunday at Cyber Hub, Gurugram. One needs to be registered on CoWin to get vaccinated at this drive-through vaccination camp. Eligible people can use the Park+ app to check the real-time availability of vaccination slots, drive to the camp and get the jab while sitting in the safety of their vehicle. As many as 300 doses of Covishield and 300 doses of Covaxin will be available at the drive-through vaccination drive. The timings for the drive-through vaccination camp are 10am- 5pm and the entire camp will be organised in accordance with ICMR rules. Founded by Amit Lakhotia, Park+ is a building an entire ecosystem that solves the daily challenges faced by car owners ranging from parking, FASTag management, car insurance, to advanced and automated vehicle access control systems in malls, corporate parks & residential apartments. Park+ is the market leader in through FASTag and the majority of parking FASTag transactions in India are currently being processed through . The entire parking process is 100% contactless, ensuring extra safety during the pandemic. Park+ access control and parking automation solutions are deployed at prime locations including airports, malls and 3000+ residential apartment gates. Installations include prominent properties of Blackstone, Brookfield and Mindspace real estate investment trusts, as well as Airtel head-office (Gurgaon), One BKC (Mumbai), Select City Walk Saket (Delhi), Pacific Malls (multiple locations) among others. Park+ enabled MG to launch Astor as the world's first car where users can book
(Gurgaon), One BKC (Mumbai), Select City Walk Saket (Delhi), Pacific Malls (multiple locations) among others. Park+ enabled MG to launch Astor as the world's first car where users can book and pay for parking via the car's head unit infotainment system. As more OEMs shift towards Electric and Connected Vehicles, Park+'s solutions will set the default industry standard. Also Read:
How car, bike insurance premiums will get cheaper with IRDAI's 'Pay as You Drive, How You Drive' Insurance companies will soon offer vehicle owners analytics-based insurance that include policies like ' ', and ' ' wherein the premium varies according to driving behaviour of an individual. Apart from that, insurance companies have also been allowed to issue ' ' for multiple vehicles belonging to the same owner. "As a step towards facilitating technology-enabled covers, has permitted general insurance companies to introduce tech-enabled concepts for the motor own damage (OD) cover," the Insurance Regulatory and Development Authority of India (IRDAI) said in a statement. According to the regulator, the advent of technology has created a relentless pace for the insurance fraternity to rise up to interesting yet challenging demands of millennials. The insurance regulator has introduced these add-ons in a bid to increase the penetration of own damage (OD) insurance cover in the country. As of now, a majority of customers are inclined to opt for only third-party covers that are mandatory, and overlook the benefits of OD covers. How does it work, and how will it impact buyers? 'Pay as you drive' add-on will allow customers to pay a premium based on their usage. Vehicles spending more time on the road may attract a higher premium compared to the ones used less. This will be beneficial for car owners that commute by public transport and use own vehicles on weekends. If you drive less, your premium would be lesser. 'Pay how you drive' add-on will depend on the driving behaviour of the owner. Vehicles with more fines and accidents will have to pay a higher premium. Your driving telematics could be collected through vehicle's GPS system, and you will be billed accordingly. If a buyer drives their vehicle in a rash manner, they would have to pay a higher premium since the risk associated would be greater. A 'floater policy' will allow the vehicle owners to get a single policy for multiple vehicles including two-wheelers, instead of buying separate policies. Hence, this would benefit people who, for example, have both a car as well as a two-wheeler at home. Insurance companies welcome the move "With the new add-ons permit, own damage policy coverage can now be tailored based on a customer's driving behaviour pattern, general upkeep, mileage and vehicle usage pattern to offer the best features they need. This will do away with 'standard premium for all' practice," said Rakesh Jain, chief executive of Reliance General Insurance. With regards " Pay as you Drive" and "Pay How You Drive", introduction of such covers will nudge customers towards a utility based "Pay as you Use" model, lending greater flexibility and convenience in customer choice. Currently, there is price equity due to lack of user behavior based pricing of insurance Premium, which will change. This will make it cost effective for low usage customers esp. ones who drive less than 10,000 kms a year.
equity due to lack of user behavior based pricing of insurance Premium, which will change. This will make it cost effective for low usage customers esp. ones who drive less than 10,000 kms a year. On the flip side, such a move will eliminate the cross subsidy currently enjoyed by high usage customers, possibly resulting in slightly higher premiums for this set, said Susheel Tejuja, Principal Officer, Founder & Managing Director – PolicyBoss.com (Landmark Insurance Brokers). Meanwhile Edelweiss General Insurance recently introduced the country's first telematics-based called 'SWITCH'. This on-demand policy generates a real-time driving score and dynamically rates the premium. Moreover, it also detects motion and automatically activates insurance when the vehicle is driven, making it convenient and hassle-free for users.
Mahindra rolls out 50,000th e-Alfa from Haridwar plant Mumbai: (LMM), a division of , has rolled out its 50,000th e-Alfa from the Haridwar Plant. LMM sells as well as . The milestone vehicle was a red e-Alfa Mini. e-Alfa Mini is one of the highest selling Mahindra electric 3-wheelers and was launched in 2017. Mahindra launched the cargo version in 2021, the company said. The Mahindra e-Alfa has a sturdy full metal body construction paired with a lead acid battery pack. While both the e-Alfas produce 1.5 kW of peak power, the Cargo variant is equipped with an optional High Torque Gear for improved performance. Both the vehicles have a real-world range of 80 km/charge. Mahindra is the only OEM to offer driver accidental insurance of INR 10 Lakh, 24x7 roadside assistance and downtime guarantee. A best-in-class vehicle warranty of 2 years (1 year standard + 1 year extended) makes this electric 3-wheeler a compelling proposition, the company said in a media release. On this occasion, Mahindra dealers are helping customers to upgrade to the superior e-Alfa Mini with an INR 7500 exchange bonus scheme. Along with every e-Alfa Mini sold, customers also stand to get an assured gift. Both the offers are valid till stocks last, the release said. Suman Mishra, CEO, Mahindra LMM, said, “The is seeing tremendous growth and I’m happy to announce that we’ve rolled out 50000 e-Alfas. The immense earning potential, trust of Mahindra and solid reliability of our EVs make them a preferred sustainable option for our customers.”
EVs can’t fix a global epidemic of ‘car harm,’ study finds promise cleaner air and less climate pollution. But a new analysis suggests that even a global all-EV fleet would perpetuate some of the most devastating impacts of cars and auto infrastructure. The modern world moves itself around in roughly 2 billion motor vehicles, 65% of which are cars. That’s 16 automobiles for every 100 people, but the rate of car ownership is much higher in richer industrialized countries, where cars give shape to cities and set the patterns of daily life. This fleet requires substantial, ongoing investment in , car storage (or “parking,” in the jargon), oil exploration and fuel production, metals mining and manufacturing, insurance and much more. All of these activities levy regular costs in the form of fatalities and injuries as well as that cause climate change. A comprehensive review published last month provides a litany of what the authors call “ ,” in estimated global totals of death, injury, disease and other miseries, over the course of automotive history. In part because the system “prioritises speed over safety,” as the authors put it, motor vehicles are responsible for one out of 34 deaths, or 1.7 million people every year, either directly or through pollution. “It’s quite a grim paper,” acknowledged lead author Patrick Miner, a PhD candidate at the University of Edinburgh, whose dissertation focuses on how car culture influences urban land use. It took Miner two-and-a-half years to survey roughly 400 papers covering everything from noise pollution, to cumulative deaths (60 million to 80 million), to injuries (2 billion), to oil’s 35% contribution to historic fossil-fuel and cement emissions. These are conservative estimates, he and his co-authors write. The motivation for the study came out of a simple need, Miner said. When speaking with peers or policymakers about the violence built into the transportation system, “it’s helpful to have one document that you can point people to,” instead of dozens across many disciplines. “That was the impetus for this paper.” The report concludes: In 2019, 43% of people killed by motor vehicles were walking, using a wheelchair or riding a bike. Motor vehicles kill more than 700 children a day. Traffic deaths occur at the highest rates in Africa and Southeast Asia, and, in the US and Brazil, crashes disproportionately kill Black and Indigenous people. SUVs, which make up nearly half of car sales globally, are eight times more likely than traditional cars to kill children. Traffic-related air pollution is linked to circulatory and heart disease, lung cancer, asthma and, according to a cited study, “acute lower respiratory infections in children.” Other car harms include drunk driving, drive-by shootings, carbon monoxide poisoning and, in the US, traffic stops that “are a setting for police violence against Black, Latine/x, and Indigenous people,” they write. Access to oil has played a role in a quarter to half of wars
and, in the US, traffic stops that “are a setting for police violence against Black, Latine/x, and Indigenous people,” they write. Access to oil has played a role in a quarter to half of wars between countries since 1973. The electric car, a juggernaut of the energy transition, “fails to address a majority of the harms,” they write, including crashes, sedentary travel, inequality and cities designed more for cars than people. EVs cause less greenhouse gas pollution than combustion cars — their headline benefit — but also promise inertia when it comes to aggregated small-scale dangers. Swapping engines for batteries isn’t changing how much cities pave themselves to accommodate cars, and or how cars kill people, the authors write. Although their tailpipes don’t spew carbon monoxide, they are often heavier than their internal-combustion counterparts, which means more fine-particle pollution from tires on highways. The analysis builds on a framework for thinking about mobility justice put forward years ago by Mimi Sheller, a sociology professor who’s dean of the Global School at Worcester Polytechnic Institute, and her late colleague John Urry. Violent deaths, illness, inaccessibility and the other harms affect communities to wildly varying degrees, and spotlighting these inequalities should be central to policymaking, she has written. Sheller, who wasn’t involved in the new research, said that the authors developed a way to incorporate voluminous data into her framework. The review ends with a nod toward “existing interventions that are already reducing .” The authors list nine practices that would address many of the local consequences; many are already in effect or on their way in various cities. In the US, Sheller’s city Worcester, Massachusetts, launched a Vision Zero campaign to reduce car-related deaths and major injuries to zero. It’s part of a national network that also includes New York City (launched in 2014); Tampa, Florida; Albuquerque, New Mexico; Columbia, Missouri; and Eugene, Oregon. Bike-sharing services are common in hundreds of places. New York is the first US city to begin an experiment with congestion pricing. Yet despite these efforts, there’s still a very long way to go: Pedestrian deaths in the US reached a 41-year high in 2022. And more than half of spending from the 2021 US Infrastructure Investment and Jobs Act is going toward expanding and resurfacing highways, with only 20% for public transit and rail, according to a recent analysis by Transportation for America, an advocacy group. To increase awareness that car harms are “systematically built in and statistically expected to happen” in car-centric modern environments, even our language matters, Sheller said. Safe-streets advocates have called to retire the phrase “car accident” and use “car crash” instead, and to avoid the passive voice when describing crashes. “You don’t say, ‘A person was hit by a car’,” said Sheller. “You say, ‘A driver crashed into a bicyclist,
and use “car crash” instead, and to avoid the passive voice when describing crashes. “You don’t say, ‘A person was hit by a car’,” said Sheller. “You say, ‘A driver crashed into a bicyclist, killing them.’ Make it the active voice. Identify the subject — who’s doing it.”
Nissan India reports domestic sales of 3,010 units in December New Delhi: on Saturday reported a sales growth of 159% to 3,010 vehicles for Nissan and Datsun brands in December 2021. The company had wholesales of 1,159 units in the same month of 2020. Nissan said it has recorded domestic sales of 27,965 units in April-December 2021 as against 6,609 units in the corresponding period in 2020, registering 323% growth. Export sales of 28,582 vehicles in April-December 2021 against 17,785 vehicles in April-December 2020, with a 61% growth. Rakesh Srivastava, managing director, Nissan Motor India Ltd, said that Nissan has recorded cumulative growth of 323% in spite of the challenges of Covid-19 and semiconductor shortages affecting supplies. The company has delivered 35,000 units of the Magnite. The SUV’s 31% of the 77,000 bookings were digital, he said. The company said it offers a subscription plan that enables customers to own a vehicle with a ‘White Plate’ and a “Buy Back Option” in Delhi NCR, Mumbai, Pune, Bengaluru, Hyderabad and Chennai. The plan comes with Zero Down Payment, Zero Insurance Cost, Zero Maintenance Cost, share back and save and an option to own. Also Read:
In ten years 95% of new vehicles will be connected - Shivalik Prasad, Vice President - Strategic Alliances and Sales, Sibros Q: What is the role of Sibros in the ? Everybody is talking about the software-defined vehicle these days. A revolution is underway in the manner in which the entire automotive sector operates and monetizes and also in the way the drivers choose and use vehicles. We are powering the rapidly developing connected vehicle ecosystem with a full platform for the pillars it rests on: data logging and updates as well as remote commands and diagnostics. This encompasses every vehicle and propulsion out there, from a tractor-trailer to a sailboat. The connected vehicle will only be as good as its data in transit and at rest, and Sibros delivers building blocks for the path towards the transportation of the future. Our products are not only agnostic of the in-vehicle hardware, but also of the powertrain. We are working with OEMs of all kinds, be it an electric or , a high-mileage tractor-trailer with a hydrogen fuel cell, a heavy construction vehicle powered by a hydrogen ICE, or a boat with any given propulsion. All these will soon be connected vehicles with numerous electronic units in them. Q: In the era of the software-defined vehicle, how do you help OEMs simplify the complex technology and architecture? Let us have a look at the big picture first: OEMs are organizations that for more than 100 years have produced and sold hardware. Now, within a decade, they have to switch to a software mindset, including new development cycles, life cycle monetization, and selling services and experiences. This is a profound change and task and we support it in more than one way. First, Sibros delivers a product that provides 95% functionality out of the box, with only 5% integration effort necessary. It can be deployed in Second, our solution is , with embedded firmware validated to run on all major telematics control units and gateway platforms and combinations. Data from vehicles can be logged with complex conditions, and based on triggers and events, subsequently uploaded to the cloud, displayed and analysed. To update and control a fleet of any scale, an OEM will simply define what we call a Device Model, which specifies the topology of the vehicle architectures involved. This is a process done once and it enables full control of these vehicles and provides exact insights into the update status of every individual vehicle and control unit including full traceability of the updates. This is something the customers will have at their fingertips, but may never need, because their fleet is entirely, granularly managed. Third, our customers receive all the tools they need as a one-stop-shop, including a Web Portal and full API access. Q: What changes do you think that the OEMs should make in their engineering departments to adopt this technology? The engineering departments to a certain extent will have to get used to the fact that their
changes do you think that the OEMs should make in their engineering departments to adopt this technology? The engineering departments to a certain extent will have to get used to the fact that their organization is not a core hardware shop anymore. This means that the development cycles and other work habits are changing, and it is a profound shift that does not come easily. The engineering departments will have a whole different data foundation to develop future features. Simulation, for example, with all its problems and pitfalls, can be replaced by billions of data points from real-world use. This enables accomplishments like the reductive design of features that may have been unused, misused, or abused before. It may enable the redefinition of battery size for a certain market and more importantly it will boost ADAS and related functions. Q: How is the adoption of this by the OEMs? OEMs are in arguably the most difficult transition of the 120 years of automobile mass production - a genuine revolution. There is a clear awareness that this is a bus that nobody can afford to miss, but there is great insecurity about how to navigate many aspects. What we see is that startups that have software in their DNA move more swiftly. However, the big industry players are making extraordinary efforts to get into the game. But software is a field they are not quite familiar with. One of our tasks is to help OEMs navigate this, as well as to build long-term, in-depth partnerships. There will be an entirely new ecosystem of OEMs and software companies working together to deliver the transportation modes of the future and this ecosystem is coming into existence within this decade. Q: Which vehicle segment will adopt this technology faster? We see the moving faster in this space. To make this clear, our solution is propulsion agnostic and will function on a sailboat just as well as in a heavy construction machine with a hydrogen fuel cell, but startups with new propulsion principles do have software and the connected vehicle baked into their DNA. However, it is not a question of vehicle segment, propulsion, or usage, it is a question of openness to and awareness about change. From the end-user’s perspective, the acceptance of connected vehicle services will grow exponentially, with increased demand for infotainment and navigation features leading the acceleration. Drivers and end-users will begin to see these products and services in action, which will spark interest and in turn stoke up production. Q: What are the benefits of this technology for OEMs and their customers? With its Deep Connected Platform, Sibros provides massive and essential value for the software-defined vehicle by paving the path to real-time, real-world data, thereby creating a digital twin of the vehicle. In high-level terms, the benefits come in all the classical categories - reduced cost, value-added options, increased margins for the OEM, and new services and options for the drivers.
the vehicle. In high-level terms, the benefits come in all the classical categories - reduced cost, value-added options, increased margins for the OEM, and new services and options for the drivers. The range of benefits is from usage-based insurance to true predictive maintenance to faster prototyping to vehicle customization and personalization functions. We will see safer roads through better ADAS and related features and new services and mobility modes, for example by sharing. Paid feature upgrades will be an option that both the OEMs and drivers will be aware of. Q: The OEM legacy system vs. new connected vehicle technology from Sibros, what are the key added advantages? As a company, we provide a product that is highly modular and flexible, comprehensive, integrated, and apt for any vehicle architecture. The Deep Connected Platform is a (SaaS) solution for fast integration that does not only reduce program risk, but allows every customer to profit from the experiences and improvements that are derived from the work with all customers. Furthermore, there are no surprise elements of cost. All our customers know upfront exactly what they are getting and what they are paying for it. The risks of software development, of which there are plenty and which OEMs are not accustomed to deal with, have been borne by the Sibros’ highly experienced team. Q: In terms of ROI, what timeline should OEMs look at after adopting this technology? This depends on how an OEM monetizes the options that our solution opens up for it. In one of our classic examples, we calculate that by using our Deep Logger, instead of an in-house developed solution, an OEM can be cash flow positive five years earlier. And this is only the cash flow, assuming standard timelines. The adoption of a ready-to-be-deployed solution like ours considerably reduces, as said, risks for the OEM as well. OEMs simply outsource all this to us, reap the early cash flow and profit, and take advantage of an ever-developing product. Q: How fleets and commercial operators can benefit from a deeply connected platform? To give an example, Sibros enables a unique Truck-as-a-Service business model for a European with an ambitious goal of zero downtime for production vehicles. Data Logging will, for the first time, enable true predictive maintenance which can be a major cost saver. Advanced driving assistance functions will support drivers and reduce accidents. There will be options for usage-based insurance, advanced theft protection, remote diagnostic commands, and more. Q: What is the future roadmap for Sibros business in India? Sibros was founded in 2018 by cousins Hemant and Mayank Sikaria in the belief that automotive Over-the-air (OTA) programming will redefine the future of transportation. With headquarters in San Jose, the heart of Silicon Valley, and a main office in Pune, a hub of the Indian automotive industry, the rapidly growing startup has a headcount of 100-plus and additional offices in
in San Jose, the heart of Silicon Valley, and a main office in Pune, a hub of the Indian automotive industry, the rapidly growing startup has a headcount of 100-plus and additional offices in Detroit, Atlanta, and Munich. The company recently concluded series B funding of USD 70 million. From the beginning, the company has prided itself on hiring the best talent from around the world to develop viable, reliable, and practical connected vehicle products. Sibros’ leadership brings in decades of combined experience from companies like Tesla, Waymo, Faraday Future, and Uber. Sibros’ target is to further the software defined vehicle and enable transportation 2.0 and in the future 3.0 Also Read:
Vehicle theft increases by 2.5x in India in 2023; Delhi tops the list: ACKO report New Delhi: ACKO brings out its second edition of Theft Report ‘Theft & the City 2024’ that reveals a 2X spike in vehicle thefts in India between 2022 and 2023, with Delhi continuing to top the charts. The report reveals that Delhi is followed by Chennai and Bengaluru. These two cities witnessed a sharp spike in rising from 5% in 2022 to 10.5% in 2023 and 9% in 2022 to 10.2% in 2023 respectively. Meanwhile, Hyderabad, Mumbai, and Kolkata have emerged as cities with the least number of vehicle thefts in the country. The first edition of the report was launched in 2022 that analyzed data from the company to discover the most theft-prone areas in India during the year. Diving deep into the vehicle theft scenario of New Delhi, its overall share of vehicle thefts in comparison to other cities in India came down from 56% in 2022 to 37% in 2023. While Bhajanpura and Uttam Nagar continue being the most theft-prone areas from 2022, the report reveals three new locations in the northern part of the geography appeared as the most theft-prone areas namely, Shahdara, Patparganj, and Badarpur. To put this in perspective, one vehicle is stolen every 14 minutes in the national capital region as per a media report, with 105 cases of vehicle theft being reported, on average, every day in 2023. To be more precise, in 2023, the most vehicle thefts occurred on three days – Tuesday, Sunday, and Thursday. While one would need to be cautious, especially on the three days, it is important to note that thefts were distributed evenly across the seven days of the week. Further the report highlights that 47% of all stolen cars are Maruti Suzuki. Cars with the greatest demand and consequently, longer delivery timelines are most susceptible to thefts. Therefore, India’s most popular hatchbacks - the Maruti Wagon R and Maruti Swift are the most frequently stolen cars in Delhi NCR. They are closely followed by the Hyundai Creta, Hyundai Grand i10, and Maruti Swift Dzire in third, fourth, and fifth place respectively. There is more to these robbers' skills than we know. As cars get more technology-heavy, so do the thieves. The new-age cars come with advanced safety features such as keyless entry which operates on barcodes that are embedded in windshields. Thieves scan these barcodes and share the codes offshore to unlock cars and even gain remote access. Interestingly, 2023 was a year for bike thefts. India witnessed a 9.25x increase in bike thefts as compared to cars. India’s top-selling bike Hero Splendor took the first place for the most stolen bikes, followed by Honda Activa. The Royal Enfield Classic 350 made a repeat appearance in 2023 as a favourite amongst robbers. Honda Dio and Hero Passion were the new entrants on the thieves list. As per the Gurugram Police, Hero Splendor, Splendor Plus, Hero CD Deluxe, and Hero HF Deluxe constitute over 60% of the total two-wheelers stolen in Gurugram.
the new entrants on the thieves list. As per the Gurugram Police, Hero Splendor, Splendor Plus, Hero CD Deluxe, and Hero HF Deluxe constitute over 60% of the total two-wheelers stolen in Gurugram. This interest in Hero bikes, according to the police, is attributed to higher resale value and the demand for spare parts of Hero bikes spare parts. There are several reasons which make Delhi NCR the vehicle theft capital of India but some of the most pertinent ones are the lack of parking space in buildings and colonies, leading to vehicles being parked on the roads. As per The Hindu, in 2023, Delhi Police official data says they received 7,328 calls reporting violent disputes over parking on neighborhood roads which is more than the number of calls received in 2022 and 2021. In the case of vehicle theft, customers should immediately inform the police and the insurance company. Submit the FIR copy with vehicle registration certification, driver’s license etc., to the insurer and customers might also have to submit the original car keys. The police will issue a non-traceable certificate if they fail to locate the vehicle in the stipulated time frame. Based on the certificate, the insurer will settle the claim as per the terms and conditions specified in the insurance policy. Animesh Das, Chief Executive Officer, (subject to regulatory approval) at ACKO, said, “The surge in vehicle ownership brings with it rise in vehicle theft cases. Our second edition of the vehicle theft report brings insights and perspective into the issue after delving deep into 2000 claims received in 2023. By understanding the underlying factors, our aim is to empower individuals with knowledge and promote heightened awareness on the importance of opting for the right insurance policy to safeguard themselves from unexpected situations.”
German insurers renew cover for blast-damaged Nord Stream gas link German insurers Allianz and Munich Re have renewed cover for the damaged Russia-controlled 1 gas , five sources with knowledge of the matter said, indicating that its revival has not been ruled out after an alleged sabotage attack. Insurance by two of Germany's biggest companies is critical for any long-term future of the pipeline, which was the main route for to Europe for a decade before the blast last September. The insurance stands in contrast to Germany's public stance of severing ties with Moscow, but one of the five sources said the German government had not opposed the cover. Most Western investors have written off their stakes in the pipeline. Munich Re, Allianz and Germany's chancellery declined to comment, while the economy ministry said insurance was not part of the support the government had in the past provided for the pipeline. Russia has a 51% stake in Nord Stream 1 through a subsidiary of state-owned energy group . Some of Nord Stream's German shareholders favour at least preserving the damaged pipeline in case relations with Moscow improve, two people familiar with the matter said separately. One of the people said that Berlin tolerated such an approach to the infrastructure, even though it has said that energy ties with Russia are severed. All of the insurance industry and trade sources declined to be named because of the sensitivity of the issue. The insurance policy covers damage to the pipeline and business interruption issues, one of the sources said. Having insurance would also facilitate any repair work needed to resume gas supplies under the Baltic Sea to Europe. While the import of Russian crude oil and oil products is banned under European Union (EU) sanctions, Russian gas imports are allowed. The West, however, is trying to find alternatives. 'OLD LOGIC' Europe's imports of Russian gas have fallen from around 40% of EU gas supply to less than 10% since Russia's invasion of Ukraine began in February last year. The economy ministry spokesperson said the aim was to stop using gas from Russia and elsewhere. "Russia showed everyone last year that it is not a reliable partner," said the spokesperson. "We need more renewable energies and must become independent of fossil imports." The stance represents a major shift from Germany's previous whole-hearted support for Russian gas, in defiance of warnings from other EU countries and the United States. Some German officials, politicians and others familiar with German government thinking told Reuters a minority still hoped Nord Stream 1 can be revived, even if few saw any prospect of that happening in the near future. Michael Kretschmer, conservative leader of the eastern Saxony region, told the Berliner Zeitung newspaper in January the pipeline should be repaired and Germany should retain the option of importing through it again. Veronika Grimm, one of the government's chief economic experts who advises the
newspaper in January the pipeline should be repaired and Germany should retain the option of importing through it again. Veronika Grimm, one of the government's chief economic experts who advises the chancellery, said Germany's previous policy of relying on cheap Russian gas to support its economy and build political ties was no longer viable. "There are still some who follow an old logic with regards to rebuilding energy ties to Russia after the (Ukraine) war," Grimm told Reuters. The economy ministry spokesperson said the Federal government in 2010 supported the construction of Nord Stream 1 with export credit guarantees and a separate financial credit guarantee, adding that there was no further federal support. In September 2022, several unexplained underwater explosions ruptured the Nord Stream 1 and newly-built Nord Stream 2 pipelines, each more than 1,200-km-long, that link Russia and Germany across the Baltic Sea. Last month, sources told Reuters Nord Stream's undersea gas pipelines were to be sealed and there were no immediate plans to repair or reactivate them. Other sources described this process as keeping the pipeline dormant. OTHER INSURERS Prior to Russia's invasion of Ukraine last February, Nord Stream 1 was insured by multiple European underwriters including some from the Lloyd's of London market, sources told Reuters. Industry sources with knowledge of the situation said some Lloyd's underwriters were believed to have cut insurance arrangements that came up for renewal in late 2022 in part because of UK sanctions imposed on an entity connected to Gazprom. Three of the Lloyd's syndicates previously involved in insurance cover were unlikely to have renewed their exposure, three of the insurance industry sources said. However, a fourth source said its underwriting syndicate from the Lloyd's market continued to provide insurance for the project. They all declined to provide further details. Lloyd's of London declined to comment. Customers often renew insurance contracts when their property is damaged and this is taken into account when agreeing the contract terms, industry sources said. Nord Stream 1's policy was a two-year contract which renewed after the first year, two of the sources said. However, policy-holders and insurers can often break such a contract after the first year, depending on the terms, two insurance industry sources said. It was unclear if insurer Zurich was part of the new arrangements. Zurich, which one of the five sources said was among the pipeline's insurers when the damage occurred, declined to comment. Gazprom is subject to sanctions by Britain, Canada and the United States, as well as some EU restrictions. Gazprom and Swiss-based Nord Stream AG did not immediately respond to requests for comment.
India's unwavering appetite for Russian crude lifts January inflows to record high BENGALURU: 's appetite for in January rose to unseen levels, continuing to remain above traditional middle eastern suppliers for the fourth month in a row, as refiners rushed to snap up plentiful cargoes available at a discount to other grades. From a market share of less than 1 per cent in India's import basket before the start of the Russia-Ukraine conflict, Russia's share of India's imports rose to 1.27 million barrels per day in January, taking a 28 per cent share, according to energy cargo tracker Vortexa. India, the world's third-largest crude importer after China and the United States, has been snapping Russian oil that was available at a discount after some in the West shunned it as a means of punishing Moscow for its invasion of Ukraine. From a market share of just 0.2 per cent in India's import basket before the start of the Russia-Ukraine conflict, Russia's share of India's imports rose to 28 per cent in January 2023. Officials attending (IEW) 2023 here said India will continue to buy crude oil from anywhere in the world, including Russia, to meet its energy needs. The executive body of the has asked its 27 member countries to cap the price of Russian oil at $60 as part of the West's attempt to squeeze Moscow's oil revenues and limit its ability to wage war in Ukraine while keeping global prices and supplies steady. "Unlike Iran and Venezuela, there are no sanctions on buying oil from Russia. So, anyone who can arrange for shipping, insurance and financing outside of the EU can buy oil," an official said. The price caps are part of the EU's plan to use its clout in insurance and shipping industries to crimp Moscow. "We will continue to buy oil from anywhere in the world, including Russia," he said. Under the price-cap system that kicked in on December 5, companies shipping Russian oil outside of Europe would only be able to access EU insurance and brokerage services if they sell the oil at or under $60. Industry sources said crude shipments being purchased by Indian companies were below the G7's price cap of $60 per barrel. "So for all practical purposes, if I can send a ship, cover insurance and device a mode of payment, I can continue to buy oil from Russia," an official said, explaining how the mechanism works. "All options are on the table." For R sia to keep oil sales going, it and its buyers need to use ships, insurance and financing outside the jurisdiction of the G-7. The US is comfortable with Russia selling its oil outside the cap but using non-Western shipping, insurance and banking services, which will likely be more costly. Russia's market share in January was an improvement over 26 per cent in December. Iraq, which was relegated to the second spot in October 2022, supplied some 20 per cent of all the oil India imported. Saudi Arabia shipped 17 per cent while the US improved its share to 9 per cent from 7 per cent in December. supplied 8 per
in October 2022, supplied some 20 per cent of all the oil India imported. Saudi Arabia shipped 17 per cent while the US improved its share to 9 per cent from 7 per cent in December. supplied 8 per cent crude. All three middle-east suppliers improved their market share by one percentage point each, which came at the expense of Africa, whose share fell from 9 per cent to 6 per cent in January. The rising share of Russian crude sales to India has also taken a toll on the country's appetite for African crude. This, combined with a tighter market structure, as well as increased volatility in freight markets has led to the share of West African crude dropping from 12.5 per cent in 2021. Russian crude traded at a record discount of up to $40 per barrel in the aftermath of Russia's invasion of Ukraine as key buyers in Europe shunned Moscow's oil. The bulk of Russia's crude exports flowed to refiners in Asia, with China and India being its key customers. Also Read:
Hyundai expands free anti-theft software installation mobile clinics in US New Delhi: As part of its ongoing efforts to assist customers and communities affected by the social-media driven thefts of certain vehicles not equipped with push-button ignitions and engine immobilizers, Hyundai has announced five national multi-day anti-theft mobile clinics to occur before year-end. Following the successful pilot mobile service centers in Washington D.C. and St. Louis County, Missouri, as well as regional events operated by Hyundai dealers in Phoenix and Baltimore, these clinics will provide customers in the following metro areas free software installations to prevent a method of theft popularized on social media: New York City, NY: Saturday, October 28 – Sunday, October 29 Chicago, IL: Friday, November 3 – Sunday, November 5 Minneapolis, MN: Friday, November 10 – Saturday, November 11 Saint Paul, MN: Sunday, November 12 – Monday, November 13 Rochester, NY: Friday, November 17 – Saturday, November 18 In addition to these events, Hyundai is supporting several single-day, regional clinic locations before year-end that will be operated by Hyundai dealers. Hyundai and its extensive dealer network have partnered with local law enforcement, as well as government officials and other community organizations to support ongoing efforts to combat increases in vehicle thefts within their communities and to raise awareness of the free software upgrade to eligible residents. The software upgrade has been installed on nearly one million eligible Hyundai vehicles and is working as designed to prevent the method of theft that has spread on social media. “Our customers are the top priority and we encourage all eligible Hyundai owners and lessees to take advantage of the free software upgrade to help protect their vehicle,” said David VandeLinde, vice president of after-sales, Hyundai Motor America. “We are committed to ensuring the quality and integrity of our products, all of which are fully compliant with federal anti-theft requirements.” The software upgrade, which takes less than 30 minutes for installation, is part of a broader service campaign launched earlier this year that also provides free steering wheel locks to law enforcement agencies for distribution to local residents who own or lease an affected vehicle. Hyundai has also collaborated with AAA to offer insurance options for affected owners and lessees. All Hyundai vehicles produced since November 2021 are equipped with an engine immobilizer. Software Upgrade Details: The software upgrade modifies certain vehicle control modules on Hyundai vehicles equipped with standard “turn-key-to-start” ignition systems. As a result, locking the doors with the key fob will set the factory alarm and activate an “ignition kill” feature so the vehicles cannot be started when subjected to the popularized theft mode. Customers must use the key fob to unlock their vehicles to deactivate the “ignition kill” feature. Hyundai is
feature so the vehicles cannot be started when subjected to the popularized theft mode. Customers must use the key fob to unlock their vehicles to deactivate the “ignition kill” feature. Hyundai is notifying customers about the anti-theft service campaign through multiple points of contact (e.g., mail, email, outbound phone contact, paid media and a dedicated website) with instructions to bring their vehicle to a mobile clinic or the nearest Hyundai dealership to have the free software installed. Some 2011-2022 model year vehicles without engine immobilizers cannot accommodate the software upgrade. For these customers, Hyundai is reimbursing them for their purchase of steering wheel locks. Eligible Affected Vehicles
Delhi HC notice on plea for mandatory insurance for electric two-wheelers New Delhi: The Delhi High Court on Wednesday issued notice to the Centre and the Delhi government on a plea seeking directions for mandatory insurance for electric two-wheelers. Seeking response from the and the city government, the division bench of Acting Chief Justice Vipin Sanghi and Justice Navin Chawla slated the matter for October 20. The Public Interest Litigation (PIL), filed by Rajat Kapoor through advocate R.K. Kapoor. sought the respondents to ensure insurance cover for two-wheeler under Section 146 of the . "The demand for Electric Vehicles (EVS) is slowly gathering pace in India. Apart from being a green alternative to petrol and diesel vehicles, they can also be cheaper to run in the long term. As the EV market is still developing in India, prospective buyers may have concerns about where they can find suitable Electric Vehicle Insurance," read the plea. Apart from insurance coverage, it also sought to ensure reliable and long-lasting batteries in the vehicle by the manufacturers in a way to avoid overheating and fire accidents. The plea also sought safety guidelines to be ensured such as wearing helmets irrespective of the capacity of the vehicle. In recent times, electric two-wheelers going up in smoke have become frequent. Electric two-wheeler makers like Okinawa, and Ola have recalled several of their vehicles.
Vehicle dealers in Odisha must display price chart in showrooms Bhubaneswar: The (STA) in has asked all the automobile dealers to mandatorily display details of payment to be made by the purchaser for each category of vehicle in their showrooms, officials said. In an order, the STA has directed that it is mandatory for all the dealers to display details of payment to be made by the purchaser for each category of vehicle on a notice board on a conspicuous place in their showrooms that is clearly visible to the customers. The dealers have to mention on the notice board that no extra payment will be charged other than the ones mentioned on the display board, the order said. All the charges, whether essential or optional, must be clearly mentioned on the display board. For all charges so taken, the dealer must issue a receipt, said the order. The RTOs have been asked to inspect the automobile showrooms to ensure that they have complied with the above instructions. As per the order, automobile dealers cannot charge any amount from a customer without giving a proper receipt. Also, the dealers cannot force the buyer to get the vehicle insured with them. The STA has informed that starting January 1, 2022, the transport department is issuing driving licence and registration certificate of vehicles in digital mode. Resultantly, the fee of registration of vehicles payable by the purchaser has been reduced from INR 282 to INR 140. However, it has been learnt that some dealers are not passing on this benefit to the customers and are continuing to charge the earlier fees. Therefore, this order has been issued, an official said. It has been alleged that some vehicle dealers are charging extra amount from the customers who are buying two or four-wheelers. The government charges only registration and tax amount for new vehicles and hence, distributors should charge only that and not take any extra amount in the name of handling charges etc., the order said. If any dealer is found violating the order, action will be taken for suspension or cancellation of the trade certificate of such errant dealer, warned the transport authority. Also Read:
Five essential commodities that will be hit by war in Ukraine The war in Ukraine is threatening further disruption to already stretched supply chains. Ukraine and Russia may only account for a small proportion of the imports of major manufacturing nations like Germany and the US, but they are essential suppliers of raw materials and energy for many crucial supply chains. Though the economic consequences of a war that threatens the lives and livelihoods of many Ukrainians will always be secondary to the looming humanitarian crisis, here are five areas likely to see trouble ahead: 1. Energy Many European countries are heavily dependent on Russian energy, particularly gas through several vital pipelines, and this may have coloured their approach to the crisis. Russian gas reliance has been suggested as the reason Europe has been reluctant to remove Russia from the international payments system SWIFT, for example, though it's worth pointing out that the Germans have indefinitely suspended new Baltic gas pipeline Nord Stream 2. While a complete suspension of Russian gas flows is unlikely at the moment, even small disruptions will have a significant impact. Global gas reserves are low due to the pandemic and energy prices are already rising sharply, impacting consumers and industry. With gas an essential input to many supply chains, disruptions to such a fundamental supply will have widespread economic consequences. When gas prices first surged in autumn of 2021, for instance, fertiliser plants in the UK shut down as high energy cost made production untenable. This led to shortages of carbon dioxide, which is essential for everything from medical procedures to keeping food fresh. Such consequences are likely to magnify with rising oil and gas prices. 2. Food Global food prices already rose sharply during 2021 due to everything from higher energy prices to climate change. Food producers are likely to come under further pressure as prices of key inputs rise now. Russia and Ukraine together account for more than a quarter of global wheat exports, while Ukraine alone makes up almost half of exports of sunflower oil. Both are key commodities used in many food products. If harvesting and processing is hindered in a war-torn Ukraine, or exports are blocked, importers will struggle to replace supplies. Some countries are particularly dependent on grain from Russia and Ukraine. For example, Turkey and Egypt rely on them for almost 70% of their wheat imports. Ukraine is also the top supplier of corn to China. Stepping up production in other parts of the world could help to reduce the impact of interruptions to food supplies. However, Russia is also a main supplier of key ingredients for fertilisers, so trade sanctions could affect production elsewhere. Meanwhile, we can also expect diversions to trade flows: China has already said it will begin importing Russian wheat, for instance. 3. Transport With global transport already severely disrupted in the aftermath
can also expect diversions to trade flows: China has already said it will begin importing Russian wheat, for instance. 3. Transport With global transport already severely disrupted in the aftermath of the pandemic, a war could create further problems. The transport modes likely to be affected are ocean shipping and rail freight. Since 2011, regular rail freight links between China and Europe have been established. Recently, the 50,000th train made the journey. While rail carries only a small proportion of the total freight between Asia and Europe, it has played a vital role during recent transport disruptions and is growing steadily. Trains are now being rerouted away from Ukraine, and rail freight experts are currently optimistic that disruptions will be kept to a minimum. However, countries like Lithuania are expecting to see their rail traffic severely affected by sanctions against Russia. Even prior to the invasion, ship owners started to avoid Black Sea shipping routes, and insurance providers demanded notification of any such voyages. Although container shipping in the Black Sea is a relatively niche market on the global scale, one of the largest container terminals is Odessa. If this is cut off by Russian forces, the effects on Ukrainian imports and exports could be considerable, with potentially drastic humanitarian consequences. Rising oil prices due to the war are a worry to shipping more generally. Freight rates are already extremely high and could rise even further. There is also a worry that cyber attacks could target global supply chains. As trade is highly dependent on online information exchange, this could have far-reaching consequences if key shipping lines or infrastructure are targeted. The ripple effects from a supply chain cyber attack can be enormous. 4. Metals Russia and Ukraine lead the global production of metals such as nickel, copper and iron. They are also largely involved in the export and manufacture of other essential raw materials like neon, palladium and platinum. Fears of sanctions on Russia have increased the price of these metals. With palladium, for example, the current trading price of almost US$2,700 per ounce, up over 80% since mid-December. Palladium is used for everything from automotive exhaust systems and mobile phones to dental fillings. The prices of nickel and copper, which are used in manufacturing and building respectively, have also also been soaring. The aerospace industries of the US, Europe and Britain also depend on supplies of titanium from Russia. Boeing and Airbus have already approached alternative suppliers. However, the market share and product base of leading Russian supplier VSMPO-AVISMA make it impossible to fully diversify away from it, with some of the aerospace manufacturers having signed long-term supply contracts up to 2028. For all these materials, we can expect disruptions and potential shortages, threatening to lead to increased prices for many products and services. 5.
signed long-term supply contracts up to 2028. For all these materials, we can expect disruptions and potential shortages, threatening to lead to increased prices for many products and services. 5. Microchips Shortages of microchips were a major problem throughout 2021. Some analysts had been predicting that this problem would ease in 2022, but recent developments might dampen such optimism. As part of the sanctions towards Russia, the US has been threatening to cut off Russia's supply of microchips. But this rings hollow when Russia and Ukraine are such key exporters of neon, palladium and platinum, all of which are critical for microchip production. About 90% of neon, which is used for chip lithography, originates from Russia, and 60% of this is purified by one company in Odessa. Alternative sources will require long term investments prior to being able to supply the global market. Chip manufacturers currently hold an excess of two to four weeks' additional inventory, but any prolonged supply disruption caused by military action in Ukraine will severely impact the production of semiconductors and products dependent on them, including cars. (Sarah Schiffling is Senior Lecturer in Supply Chain Management, Liverpool John Moores University; and Nikolaos Valantasis Kanellos is Lecturer in Logistics, Technological University Dublin) (This article is syndicated by PTI from The Conversation) Also Read:
Russian crude oil imports to India fall 4% in November India's of Russian fell 4% sequentially in November to 1.49 million barrels a day amid a broader decline in crude imports by New Delhi, according to energy cargo tracker . Imports of is expected to fall further in December. Despite the drop in November shipments, Russia remained the top supplier with a 33% share in India's total crude imports last month, falling from 34% in October and 39% in September. Iraq (23%) and Saudi Arabia (15%) were the second- and the third-largest suppliers. Iraq and the (7%) gained in crude exports to India while Saudi Arabia, the US (3%) and Africa (5.5%) lost some share in November over the previous month. "There has been an increase in Russian crude being discharged into Turkey (up nearly 130,000 barrels per day (bpd) in November, presenting competition for Indian refiners. Russian crude has likely remained attractively priced to Indian refiners, so it is just a matter of availability," said Serena , an analyst at Vortexa. Russian crude arrivals into Turkey in November was one of the highest historically, and there could be limited upsides for Turkey to take more Russian crude, she added. "Russian crude exports in November are down over 15% month-on-month, which would likely see lower arrivals into India in December," Huang said. Ships take about a month after loading at Russian ports to reach India. On Thursday, Russia said it would deepen its voluntary oil supply cut to 500,000 barrels per day from the previously pledged 300,000 bpd, which could further constrain Russian exports. This is part of the additional voluntary supply curbs various members of the producer club OPEC+ have announced. Poor weather conditions in the Black Sea have also contributed to lower Russian crude exports in November. The G7 price cap of $60 per barrel hasn't been a deterrent for Russian oil trade. For months, ships have been able to deliver Russian oil purchased above the cap although the US has acted against some ships recently. "The US sanctions on the three shipping companies and their three vessels are likely to have limited impact on India's from Russia," Huang said. "Unless there is strict policing and large-scale clamp down on violators of the price cap, I doubt that the recent US sanctioning will be much of a deterrence." The G7 sanctions bar the use of Western shipping, finance, and insurance for Russian oil sold above the cap. India's overall crude imports fell 1% sequentially in November to 4.51 million barrels a day.
Imported long-range Tesla Model Y spotted in India Bengaluru: While has announced not to bring Tesla cars to India unless his demands are met, the rich and the famous are not deterred from importing a Tesla vehicle to the country. A privately imported long-range model of Tesla Model Y on the street of Bengaluru has now surfaced online. In the posts shared on social media by carcrazy.india, the car is shown at a wash shop, where the tailgate and the left side door of the car are shown open. Model Y is a crossover version of Model 3 and is slightly more expensive than that of Model 3, which is the entry-level Tesla vehicle and was supposed to enter India last year. The dual motor long-range Model Y starts at a base price of $62,990 and can reach $83,990 with all the available features. According to Tesla, long-range Model Y is able to carry 7 passengers and their cargo. Each second row seat folds flat independently, creating flexible storage for skis, furniture, luggage and more. The liftgate opens to a low trunk floor that makes loading and unloading easy and quick. The long-range variant offers a driving range of 524 kms and has a top speed of 217 kmph. It can do a 0-100 kmph sprint in just 4.8 seconds. Musk last month said that Tesla will not manufacture cars in India unless it is allowed to sell and provide service to its electric vehicles. "Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars," Musk tweeted. The team Musk hired in India last year has now been diverted to focus on the Middle-East and the larger Asia-Pacific markets. Currently, India levies 100 per cent tax on the imported cars of price more than $40,000 (Rs 30 lakhs), inclusive of insurance and shipping expenses, and cars less than $40,000 are subject to 60 per cent import tax. Musk has said that he wants to launch cars in India but the country's import duties on EVs are "highest in the world by far".
Hyundai, Kia must face insurers' lawsuits over vehicle thefts A U.S. judge rejected bids by and to dismiss litigation by several hundred insurers seeking to recoup more than USD 1 billion they claim to owe drivers whose vehicles were stolen or damaged in a social media-inspired theft spree. In a decision on Wednesday, U.S. District Judge in Santa Ana, California, rejected arguments that it was unfair to let insurers recover because they had collected premiums and assumed theft risks, and did not specifically identify which drivers were victims. Selna also found sufficient arguments that the lack of on 14.3 million Hyundais and Kias made from 2011 to 2022 made thefts foreseeable, despite the South Korean automakers' assurances that their cars were safe. The complaint, he said, supports the idea that thefts were a "predictable consequence" of Hyundai's and Kia's actions. "Though (the insurers) have received premiums, defendants allegedly failed to include any anti-theft device as required under federal regulations," Selna wrote. "Thus, the level of fault is almost entirely on the defendants." Hyundai said on Thursday it was disappointed with the decision and looked forward to an eventual dismissal. It also said its dealers have installed anti-theft software on more than 1 million vehicles. Kia said it remained confident that the plaintiffs' legal claims had no merit, and said its vehicles complied with federal safety and theft-protection standards. Both companies also said they are working with law enforcement on matters related to the thefts. Lawyers for the insurers did not respond to requests for comment. Hyundai and Kia generated much criticism and a slew of litigation over their failure to install anti-theft devices known as immobilizers on most of their vehicles. Thefts began to increase in 2021, exacerbated by TikTok videos showing how to steal cars that lack push-button ignitions and immobilizers in a matter of seconds. On Oct. 31, Selna granted preliminary approval to a class action settlement with Hyundai and Kia covering more than 9 million vehicles. That settlement has been valued at $200 million, with up to $145 million of the payments going to drivers. Selna also oversees litigation by municipalities seeking to recoup public safety and other costs tied to vehicle thefts. The case is In re Kia Hyundai Marketing, Sales, Practices, and Products Liability Litigation, U.S. District Court, Central District of California, No. 22-ml-03052.
More of young India aspires for luxury cars, reports Spinny Max New Delhi: The substantial increase in disposable income is inspiring the younger generation to explore the in a big way. In its analysis of the discernible trends in 2022, , the used luxury car segment of Spinny, attribute the rising aspirations of the young customers for luxury cars to the frequent launches of new products, increased options and transparency for the buyers, easier availability of finance, insurance, servicing, warranty options, and better awareness. Spinny Max provides pan-India delivery home service across 250 cities and has physical hubs in Delhi NCR, Bangalore & Mumbai. According to the year-end report 2022 by Spinny Max, BMW, Audi, and Mercedes-Benz were the most preferred brands of the consumers. Audi Q3, Mercedes-Benz C-Class, and BMW 3 series were the hot favourites. JLR and Volvo also were in demand. White, grey, and black, specifically in that order, were the favourite colours of the Spinny Max buyers. Gurugram, Delhi, Bengaluru, and Mumbai had the maximum number of buyers for luxury car brands, the report said. Niraj Singh, founder and CEO of Spinny, said,“ Used luxury cars saw a massive uptick in 2022. The market emerged as great value for money as it allows accessible luxury. In addition, used in the tend to have a lower average age compared to non luxury brands, making them an attractive option. Each car is thoroughly vetted and test drives and ownership, with an option of extended warranty are designed with highest levels of quality and support keeping customer delight and simplicity at the forefront.” “We realized that with the rise in disposable incomes, professionals in the age group of 30-40 are increasingly aspiring to own luxury cars. As a result, there is a surge in demand for used luxury cars in metros as well as tier-1 cities. Interestingly, even tier 2 and 3 cities are now experiencing substantial traction in this segment, thanks to organized retail platforms that offer premium experience and services.”, he added. Approx 5000 people with a C-Sat score of 93% & 70% were first-time luxury buyers, the report said. Besides its core markets, Spinny Max shipped more than 50 cars across India to such places as Nanded (Maharashtra), Patna, Nasik, Shimla, Kozhikode. The report said that to ensure the optimum quality of products, Spinny MAX sources its stocks largely from individuals. Also Read:
CESL places rate contract for five-year lease of 1,000 E-cars nationwide : Convergence Energy Services Limited ( ), a wholly-owned subsidiary of (EESL) under the , has placed a rate contract for the 5-year lease of 1,000 electric cars (E-cars) on a basis. The deployment, which is part of the first phase under CESL's 'EV as a Service' model, aims to include fleet management services that cover maintenance, insurance, and optional driver provisions. CESL's Managing Director and CEO, , said, "EV as a Service has followed a unique procurement model that enables CESL to deploy E-Cars of any make/model available in India, which are eligible as per Make in India guidelines." He emphasized the compliance with statutory rules to ensure seamless lease and rental of these vehicles. The initiative is poised to promote wider acceptance of electric vehicles in the lease and rental market, contributing to the country's clean and green mobility goals.
Energy sector leaders map growth path for renewables New Delhi: ETEnergyworld successfully concluded its mega initiative, the 2023, on Friday with the leaders of the global and the domestic energy sector mapping the growth path for the larger industry. The annual event is a major platform for the energy sector professionals - including both policy makers and CEOs - to discuss and debate upon some of the most crucial aspects of the solar industry. This year's version was executed by ETEnergyworld in partnership with Sunsure, Climate Trends, Hero Future Energies, Jinko Solar, Vibrant Energy, , Sterling and Wilson, O2 Power, Jakson Green, , Trina Solar, Gautam Solar, and NSEFI. Lok Sabha MP Jagdambika Pal, who is also the Chairperson for the Parliamentary Standing Committee on Energy, graced the occasion as Guest of Honour and said Ultra Mega Solar parks of 40 GW capacity will be set up by March 2024, and Prime Minister has set a clear roadmap for renewable energy adoption. Speaking at the inaugural session of the event, Nina Fenton, South Asia Head of European Investment Bank, said the EU-owned bank wants India to play a more important role in the global supply chain. She said EIB is keen to work with the Indian private sector for undertaking corporate finance as it is committed to finance at least USD 1 billion for India's Green Hydrogen Mission. Fenton said India has played a key role globally for solar power generation. , MD, Solar Energy Corporation of India (SECI) delivered the keynote address at the event and said the company has established itself as the biggest renewable energy trader in the country and it will soon launch battery storage and green hydrogen aggregation. , Director General, The Energy and Resources Institute said that it is important for India to become a hub for solar energy manufacturing. "Rural India can only grow if there is abundant energy. Renewable energy powered cold chambers are needed in rural areas for storing perishable items," she said. The partner address at the event was delivered by , Founder, Chairman & CEO, Sunsure Energy, who said that energy access to people is an important aspect of development and building digital infrastructure, and financial inclusion are important aspects of a country's development. Speaking at the first panel discussion on "Scaling up Solar Energy - Leveraging Policy, Capital Transition, and Business Innovation for AChieving 2030 targets", Ajay Mathur, Director General of the International Solar Alliance said India is among the best in operating large solar farms and the need of the hour is to reduce the risks associated with them. On the issue of pooling wind, solar energy, Sushanta K Chatterjee, Chief (Regulatory Affairs), Central Electricity Regulatory Commission said it is a positive step. "Transmission cost is 4-5 times higher if capacity utilisation is 19-20 per cent," Chatterjee said. Participating in the discussion, SunSure's Shashank Sharma said rooftop solar remains an
step. "Transmission cost is 4-5 times higher if capacity utilisation is 19-20 per cent," Chatterjee said. Participating in the discussion, SunSure's Shashank Sharma said rooftop solar remains an important segment of renewable energy generation but standardization of policy framework is needed. According to , CEO & MD, Vibrant Energy, who was also a part of the discussion, India has a strong transmission network but yet to tap the huge opportunity it presents, and the government is serious about the electricity sector being market based. Srivatsan Iyer, Global CEO, Hero Future Energies said recent developments like the launch of battery storage tenders in India is a very positive development and his company is very bullish on the renewable energy sector given the large size of the market. The event hosted an exclusive panel discussion on "Steps to Catapult India into Leadership Position in Solar Manufacturing". Manish Narula, Executive VP, South Asia, Jinko Solar, who was among the participants, said exports from India should be incentivised under the solar module PLI scheme. “India needs to look decades ahead for it to be able to lead in the development of new technologies and investment should be undertaken in R&D for developing technology," he said. Speaking at another special Panel Discussion on Green Hydrogen, Vish Iyer, Global Chief Commercial Officer of Jakson Green, said the Indian industry should look at the US and European way of executing green hydrogen projects. In another panel discussion on Utility Scale Solar projects, Parag Sharma, Founder & CEO, O2 Power said all the incremental demand for energy has to be met from renewable sources, and the country's solution of mixing solar and wind energy for supply is an innovative move. Rahul Morde, General Manager - Business Development, LONGi India, who was speaking at the same session, said the Indian market has huge potential but independent power producers need to have policy support, even as technological evolution is set to lower cost and enhance longevity of solar power plants. The event concluded with a panel discussion on the role of policy measures and financial institutions towards India's Energy Transition Goals, where Praveen Gupta, Former MD & CEO, Raheja QBE General Insurance Co, said LIC needs to focus on renewable energy projects and that the involvement of women is important for addressing challenges associated with energy. Debal Mitra, Senior Program Manager, Climate Policy Initiative said India is able to generate financial savings and needs to make this capital available to the clean energy sector. “Insurance is one of the risk mitigation measures in the Indian energy sector but needs the right policy framework,” added Mitra. He said that off-grid solar has capital requirements and there is a need for blended finance in the renewable energy sector.
Tesla officially enters Turkish market San Francisco: Elon Musk-owned company Tesla has officially entered Turkish market. According to GizmoChina, Emir Tuncyurek, a former consultant of and co-founder of E-Garaj, will be managing Tesla Turkey's operations. In 2021, nearly 4,000 electric cars were sold in total in Turkey. The EV maker is also currently working on developing a Supercharger network in the country. Tesla's website lists that it is coming up with Superchargers in Ankara, Antalya, Aydin, Bursa, Edirne, Istanbul and Konya, to name a few regions of the country. Recently, Musk informed that the EV-maker is facing a "lot of challenges" for its car launch in India. "Still working through a lot of challenges with the government," Musk tweeted. Musk was replying to a Twitter user, who asked: "Yo @elonmusk any further update as to when Tesla's will launch in India? They're pretty awesome and deserve to be in every corner of the world!" Tesla wants to begin selling imported cars in India this year but says taxes in the country are among the highest in the world. Currently, India levies 100 % tax on the imported cars of price more than $40,000 (INR 30 lakh) inclusive of insurance and shipping expenses, and cars less than $40,000 are subject to 60 per cent import tax. Also Read:
ASDC upskills 300 two, three-wheeler mechanics as EV service techies New Delhi : In a bid to provide an upgraded workforce to the electric vehicle (EV) industry, ( ) has undertaken a new initiative in collaboration with Private Limited. The project was to upskill two and three-wheeler mechanics as EV service technicians to provide a skilled workforce to the EV industry. The pilot project, which began on December 1, 2022, has now successfully concluded. The program implemented a (RPL) approach, conducting a10-day training in Agra and , Uttar Pradesh. The training focused on enhancing the skills, understanding of new technology, and repair techniques of 300 two and three-wheeler mechanics in the EV industry. , CEO, ASDC, emphasized the immense potential of India's youth and the importance of tapping into their talents through skill training programs. As the world's largest motorcycle market, India faces a significant shortage of skilled manpower in the motorcycle industry. By providing training opportunities, the country can bridge this skills gap and meet the industry's demands. “Upon completion of the training, participants were awarded an NSQF certificate, wage-based incentives, a tool kit, and one year of accident insurance coverage. These certifications, tool kits, and incentives provide participants with opportunities to secure employment in the industry or pursue entrepreneurship with the help of bank loans,” he added. “ , MD and CEO, Livguard Batteries, said, ”The primary objective of the training program was to protect and enhance the livelihoods of 300 mechanics, enabling them to work in the growing EV market. Additionally, participants also benefited from soft skills and communication training alongside EV training based on ASDC standards. By equipping service technicians with the necessary skills and expertise, this initiative contributes to the growth and advancement of the EV industry in India while also improving the livelihoods of mechanics in the sector.”
Volvo Car India appoints Jyotsana Singh Kaushik as Director - Marketing and PR New Delhi: Volvo Car India has appointed as Director - . With two decades of experience in the fields of brand management, performance marketing, PR and communication, product strategy, and customer experience (CX), Jyotsana brings a wealth of expertise to her new role, the company said in a press release. She has previously held Marketing roles in GE Money, Tetra Pak, Aviva, Roca and Canara HSBC Life Insurance. Jyotsana is a Post-Graduate in Marketing & Communications, known for her innovative and strategic approach to marketing and public relations. She has successfully navigated the intricacies of both B2C and B2B environments and will now be a valuable addition to the Volvo Car India team. In her new role as Director - Marketing and PR at Volvo Car India, Jyotsana will play a pivotal role in strengthening the brand's presence in the Indian market, crafting innovative marketing strategies, enhancing public relations initiatives, and driving customer engagement through creative campaigns, the company said. Jyoti Malhotra, Managing Director, Volvo Car India, said, “We are thrilled to welcome Jyotsana Singh Kaushik to Volvo Car India. Her extensive experience and remarkable track record in marketing and public relations will be invaluable to our team as we continue to strengthen our brand presence in the Indian market. We look forward to the innovative strategies and fresh perspectives she will bring to our organization." Jyotsana Singh Kaushik said, “I am truly delighted to join the Volvo Car India family. Volvo is synonymous with innovation, safety, and sustainability, and I am excited to be a part of a brand that embodies these values. I look forward to working with the talented team at Volvo Car India and contributing to the continued success and growth of this renowned brand in the Indian market. Together, we will create new milestones and deliver exceptional experiences to our customers.” Swedish luxury car Company Volvo established its presence in India in 2007. The company currently markets products through 24 dealerships in Ahmedabad, Bengaluru, Chandigarh, Chennai, Coimbatore, Delhi NCR – South Delhi, West Delhi, Gurgaon, Hyderabad, Indore, Raipur, Jaipur, Kochi, Kozhikode, Kolkata, Lucknow, Ludhiana, West Mumbai, South Mumbai, Pune, Raipur, Rajkot, Surat, Visakhapatnam and Vijayawada.
Chennai: myTVS launches Super App ‘Life360’ CHENNAI: , ’s leading independent integrated multi-brand car service provider, on Wednesday announced the launch of a connected car platform ‘ app’ - ‘myTVS Life360’ for all the post-warranty passenger cars. This is the first time an aftermarket player is offering a ‘Super app’ to passenger car customers in India and it will provide an entire range of services for cars and SUVs of four metre and above. The Super app will provide vehicle service, emergency assistance, parts, insurance, payment platform and accessories among others and it will go live from July 15 this year. Connected to a personalized device provided by myTVS, it enables safe and personalized experiences to car owners and includes driving behaviour, geo-fencing, engine performance and safety alarm, besides a personalized travel map to give access to , fuel stations as well as nearest police stations and hospitals, a company release said. “It is a first of its kind pan-India product that connects the customers with the aftermarket ecosystem across 1,000 plus in real-time for all their car care, emergency and repair needs. It is also for the first time that car service has become a lifestyle product that integrates telematics of the car with a host of travel needs like post and pre travel check-ups for long and weekend travel,” said G Srinivasa Raghavan, managing director, Ki Mobility Solutions, which offers a gamut of services through myTVS. Going forward, customers of the Super app can avail multiple other solutions including used car sales and leasing options, besides travel insurance among others. Customers could opt for this subscription-based service model priced at Rs 4,999 for a three-year period. “We hope to acquire about 50,000 connect customers by March, 2023,” said Raghavan. Ki Mobility had achieved a turnover of around Rs 1,200 crore last fiscal and the company has been doubling its turnover every two years.
Ashok Leyland distributor Deluxe Trucks & Buses inks pact with Kenya Commercial Bank for vehicle financing New Delhi: ’s authorized distributors, Deluxe Trucks, and Buses in on Wednesday signed a partnership with to jointly promote the Ashok Leyland Brand of Vehicles. Kenya Commercial Bank (KCB) is the largest financial institution in the region offering an array of services. With this partnership, Ashok Leyland customers will now be able to access flexible financing options in a deal from Kenya Commercial Bank. The partnership will see customers enjoy up to 95% financing with an extended repayment period of 72 months as well as a comfortable 60-day payment holiday. In addition, customers will have the privilege to access an embedded tracking and insurance package and access to unsecured working capital of up to KES 3 million among other bank products available at the bank. Also catered for are KCB SAHL Banking customers who under the Shariah-compliant banking model, will be able to purchase trucks from at affordable rates. Amandeep Singh, Head of International Operations, Ashok Leyland said, “Ashok Leyland Trucks and Buses has a wide future-ready portfolio in commercial vehicle categories ranging from 2.55 Ton GVW to 55 Ton GVW and buses suited for all applications. The Ashok Leyland range of vehicles offers the best-in-class mileage in all these categories. This partnership with KCB will enable customers to avail financing options to purchase at industry best terms and conditions.” Speaking during the event, KCB Bank Director of Corporate Banking, Esther Waititu added, “We are delighted to partner with Deluxe Trucks & Buses, for financing Ashok Leyland products. It is a reflection of our commitment to supporting key customers to derive value from their long-standing loyalty.” On his part, Ameet Shroff, Managing Director, Deluxe Trucks & Buses E.A. said, “The partnership targets individuals, Small Medium Size companies, and large commercial businesses for flexible financing of up to 95% of the vehicle cost. Delivering uptime to customers is our key objective and we will ensure that our customers are continuously served with complete satisfaction.” , which is wholly owned by Simba Corp, was appointed the sole authorized distributor of the full range of Ashok Leyland brand of trucks and buses. The vehicles are locally assembled at Associated Vehicle Assemblers (AVA) which is also owned by Simba Corp. The firm recently opened a modern sale, and service equipment center at Xylon Complex, located along ICD Road, Off Mombasa Road, Nairobi, in a move that will ensure that customers get access to specialized services post-purchase, given the rising demand for vehicles used by SMEs and MSMEs, it said. Deluxe Trucks and Buses current network includes dealerships in Nairobi, Nakuru, Mombasa and Thika, and plans to appoint dealers in other major towns countrywide. Also Read:
Oil traders to cut Russian oil purchases from May 15 - sources By Julia Payne LONDON: Major global trading houses are planning to reduce crude and fuel purchases from Russia's state-controlled oil companies as early as May 15, sources said, to avoid falling foul of . The EU has not imposed a ban on imports of in response to , because some countries such as Germany are heavily dependent on Russian oil and do not have the infrastructure in place to swap to alternatives. Trading companies are, however, winding down purchases from Russian energy group Rosneft as they seek to comply with language in existing EU sanctions that were intended to limit Russia's access to the international financial system, the sources said. The wording of EU sanctions exempts oil purchases from Rosneft or Gazpromneft, which are listed in the legislation, deemed as "strictly necessary" to ensure Europe's energy security. Traders are wrestling with what "strictly necessary" means, the sources said. It may cover an oil refinery receiving Russian oil through a captive pipeline, but it may not cover the buying and selling of Russian oil by intermediaries. They are cutting purchases to ensure they comply by May 15, when EU restrictions take effect. The inclusion of Russia's state infrastructure firm Transneft that owns the key ports and pipelines will add a further layer of complexity for any future sales. Trafigura, a major Russian oil buyer, told Reuters it "will comply in full with all applicable sanctions. We anticipate our traded volumes will be further reduced from 15 May." Vitol, another big buyer, declined to comment on the May 15 deadline. Vitol has previously said traded volumes of Russian oil "will diminish significantly in the second quarter as current term contractual obligations decline," and it will cease trading Russian oil by the end of 2022. The war and sanctions on Russia have already led many western buyers of Russian crude such as Shell to stop new spot purchases. Refiners in Europe are becoming increasingly reluctant to process Russian crude. That has already disrupted Russian exports, although purchases by India and Turkey have made up for some of the slack. Sales to China also continue unabated. Rosneft and Gazpromneft volumes accounted for 29 million barrels, or nearly 1 million barrels per day (bpd) in April, which is over 40% of overall Urals crude oil exports from Russia's western ports in April, according to the loading plan. The International Energy Agency said on Wednesday Russian oil supply could be down 3 million bpd from May. Rosneft declined to comment. Gazpromneft did not immediately respond to Reuters' requests for comment. Other Russian oil buyers, Gunvor and Glencore, declined to comment on the impact of the deadline. Energy trading firms face compliance and reputational risks from the current raft of Western sanctions. They have to examine closely which entities they can pay as well as their employees' nationalities. Also, the lack of an
compliance and reputational risks from the current raft of Western sanctions. They have to examine closely which entities they can pay as well as their employees' nationalities. Also, the lack of an outright ban complicates ending existing contracts. "All companies are sitting down with their lawyers to figure out what they can and cannot do," a senior trading source said. "It's unclear what this means for the whole supply chain, for shippers, insurers," adding that his firm was looking at implications for non-state owned oil sales. "Lawyers are having a feast on this. Where there is uncertainty, companies will step back. Russian oil flows will be greatly reduced going forward." Also Read:
Europe rushes to stock up on diesel ahead of Russian ban is set to ban imports of products on February 5 in a move that is already causing massive shifts in global trading. Buyers are rushing to fill European storage tanks with Russian diesel, with flows this month on track to hit a one-year high. The banned seaborne Russian crude imports from December 5 and will ban Russian oil products from Februaray 5, in a move aimed at depriving Moscow of revenue. The Group of Seven nations (G7), Australia and the 27 European Union countries also implemented on December 5 a price cap on Russian crude. This allowed non-EU countries to continue importing seaborne Russian crude oil, but it will prohibit shipping, insurance and re-insurance companies from handling cargoes of Russian crude around the globe, unless it is sold for less than $60. Russian Urals crude prices fell in December. Russian crude was sold to countries such as India well below the $60 per barrel price cap, according to trading sources, despite Russia saying it would not abide by the cap even if it has to cut production. Vessels carrying Russian crude loaded before December 5 and unloaded at their destination before Jan. 19 will not be subject to the price cap, according to the U.S. Treasury Department. The G7 including the United States, Australia and the EU, are designing a similar price cap mechanism for Russia's refined fuels such as diesel, kerosene and fuel oil, from Feb. 5. There will be on products trading at a premium to crude oil as well as those trading at a discount, according to a G7 official. But experts have struggled to see how the price cap will work for refined fuels. Capping oil product prices is more complicated than setting a price limit on crude, because there are many oil products and their price often depends on where they are bought, rather than where they are produced. Since Europe is heavily reliant on Russian diesel imports, the Feb. 5 ban is expected to support profit margins for the fuel, analysts say. WoodMac expects European diesel margins, the profit that a refiner theoretically makes from refining crude into diesel, to average $38 a barrel in the first half of the year, more than double the 2018-22 average based on Reuters calculations. European diesel imports have averaged 700,000 barrels per day (bpd) so far this year, their highest since March 2021, according to oil analytics firm Vortexa, as traders rush to fill tanks ahead of the ban. At the same time, Europe has been raising its diesel imports from Asia and the Middle East, the two regions expected to shoulder most of its exports after the ban comes into place. The longer voyages, however, and higher demand for tankers shipping the fuel into Europe, has meant that freight rates are rising, adding to the cost for consumers. New refinery projects are expected to raise global diesel production, boosting flows to Europe later in the year and helping to ease the crunch, analysts say. New additions include
for consumers. New refinery projects are expected to raise global diesel production, boosting flows to Europe later in the year and helping to ease the crunch, analysts say. New additions include expansion of the 400,000 bpd Jizan refinery in , Dangote's 650,000 bpd oil refinery in Nigeria which is expected to come on stream in the first quarter, the new 615,000 bpd al-Zour refinery in Kuwait and a number of sites in . Also Read:
Popular Vehicles and Services to float IPO on Mar 12 New Delhi: Ltd, which is engaged in automotive dealerships, is set to launch its Initial Public Offering (IPO) on March 12. The initial share sale will conclude on March 14 and the bidding for anchor investors will open for a day on March 11, according to the Red Herring Prospectus (RHP). The IPO comprises a fresh issuance of equity shares worth INR 250 crore and an Offer For Sale (OFS) of 1.19 crore equity shares by II, LLC. At present, promoters hold a 69.45% stake in Popular Vehicles and Services and owns over 30 % stake in the company. Proceeds of the fresh issue will be used for payment of debt and general corporate purposes. The Kerala-based company is a leading diversified automotive dealership in the country with a presence across the automotive retail value chain, including the sale of new passenger and commercial vehicles, services and repairs, spare parts distribution, sale of pre-owned passenger vehicles, and facilitation of the sale of third-party financial and insurance products. It operates passenger vehicle dealerships of Maruti Suzuki, Honda, and JLR and the commercial vehicle dealership of Tata Motors. ICICI Securities, Nuvama Wealth Management and Centrum Capital are the book-running lead managers for advising the company on the IPO. The equity shares of the company will be listed on the BSE and NSE.
Tesla gets USD 330 million tax deal for Nevada expansion, truck plant won more than $330 million in tax breaks from Nevada on Thursday for the company's commitment to a massive expansion of its sprawling east of Reno, including construction of a new factory. Approval from the Governor's Office of Economic Development came as Gov. Joe Lombardo cited the benefit of good-paying jobs and a nearly decade-long boost to the local economy around Tesla's huge Gigafactory. "Tesla has far exceeded every promise they made going back to 2014," said Lombardo, a Republican who chairs the board made up of top state elected, education and business officials. The deal is the latest to mark Northern Nevada as a focal point in the U.S. transition to green energy, as Democratic President 's administration seeks to move away from gas-powered vehicles in the larger fight against climate change. Lombardo took office in January and has proposed a two-year state budget of $11 billion. He tweeted a photo of himself Jan. 24 with Tesla CEO at the industrial park east of Reno-Sparks and called the pending agreement "an incredible investment in our state." Musk also owns Twitter and the rocket company SpaceX. However, the $330 million figure remained secret until Monday due to a nondisclosure agreement between Tesla and state officials. That drew complaints from some lawmakers in the Democratic-controlled state Legislature about having only three days to review a 20-year tax abatement. "There is little to no opportunity to explore how this deal may affect housing supply, public schools, public safety, and other vital government services in the region," Sen. Dina Neal said in a statement. The Democrat from North Las Vegas is chair of the chamber's Revenue and Economic Development Committee. Neal did not immediately respond Thursday to messages seeking further comment. Lombardo's statement said Tesla has spent $6.2 billion on its existing 5.4 million square foot (501,676-square-meter) Gigafactory, which the governor said provided 17,000 construction jobs and more than 11,000 "highly paid permanent jobs." Tesla projects it will make another $3.6 billion capital investment, creating 3,000 new jobs at an average hourly rate of $33.49 with health insurance for 91% of its employees. The company plans to add 4 million square feet (371,612 square meters) of production space at two new factories at the Truckee-Reno Industrial Center, about 20 miles (32 kilometers) east of Reno-Sparks along Interstate 80. One plant will have capacity to produce batteries for 1.5 million light-duty vehicles a year, the company said. The other will have Tesla's first production line for electric combination trucks. Musk has said the goal is a battery range of 500 miles (805 kilometers) when pulling an 82,000-pound (37,000-kilogram) load. Public support for the deal came from the White House and Mitch Landrieu, Biden's infrastructure chief; from University of Nevada, Reno President Brian Sandoval, a
(37,000-kilogram) load. Public support for the deal came from the White House and Mitch Landrieu, Biden's infrastructure chief; from University of Nevada, Reno President Brian Sandoval, a Republican who as Nevada governor approved an initial $1.3 billion Tesla abatement deal in 2014; and a preschool at the factory site that said it will expand its hours to accommodate workers. Three elected lawmakers in rural Storey County, where the Tesla factory is located, lauded the economic benefit to the region. But they said the county of just 4,100 permanent residents deserves more tax revenue to support infrastructure and services including police, fire and EMS. Tom Burns, executive director of the Governor's Office of Economic Development, said in a statement that Tesla's Gigafactory has propelled the state manufacturing industry and established lithium-ion batteries as the state's eighth-largest export. A Nevada-based recycling plant for electric vehicle batteries won a $2 billion green energy loan from the Biden administration in February. On Wednesday, a federal appeals court refused to block construction of the largest lithium mine in the U.S., which is set to be dug in Northern Nevada, while the court considers claims by conservationists and tribes that the government illegally approved it in a rush to produce raw materials for electric vehicle batteries.
RBI proposes to expand scope of TReDS to improve cash flows for MSMEs Delivering the Monetary Policy Committee report on Wednesday, the Reserve Bank of India ( ) Governor said the central bank would expand the scope of the Trade Receivables Discounting System ( ) to improve the cash flows for MSMEs. "It is now proposed to expand the scope of TReDS by providing insurance facility for invoice financing, permitting all entities and institutions to undertaking factoring business to participate as financiers in TReDS and permitting rediscounting of invoices," Das said. Because MSMEs don’t have deep pockets, they often face a cash crunch. A delay in payment for goods or services provided to a client — government or private — can sometimes land a heavy blow on small businesses. The fear of such a situation forces many to stay away from undertaking projects that are lucrative but may have a delayed payment cycle. MSMEs became even more hard-pressed for funds after the Covid pandemic began. Units that were not able to manage the acute resource crunch had to cease operations. The insurance facility proposed by the RBI is likely to encourage discounting of payables of buyers irrespective of their credit ratings. Accordingly, insurance companies will be permitted to participate as a “fourth participant” on TReDS, apart from the sellers, buyers and financiers, according to the report. It also said that the secondary market would allow financiers to offload their existing portfolio to other financiers within the same TReDS platform. All entities that can undertake factoring business under the Factoring Regulation Act would be allowed to participate as financiers in TReDS, said the statement. These decisions are aimed to put more money in the hands of MSMEs involved in executing a project. These would help small businesses get cash more easily to keep its engines running while a client is yet to make payment for the goods or services. Prakash Sankaran, MD & CEO of TReDS platform Invoicemart, says the three steps announced by the RBI governor will bridge the credit gap of a much larger set of MSMEs and help in increased formalisation in the sector. "TReDS volumes have doubled in the last 2 years and an increase in liquidity on the platforms is critical for it to scale up. With insurance companies being allowed to participate as 'fourth participant' on TReDS, we expect the appetite for a large segment of moderately rated corporates to increase. The secondary market for financiers to sell their TReDS portfolio will free up capital to finance fresh transactions on the platform. With more entities now being allowed to undertake factoring business, we expect an increase in NBFC registrations on TREDs platforms resulting in access of funds to a more broad-based range of MSMEs,” he adds. After TReDS was introduced in 2014, three entities got permission to operate TReDS platforms, and two more have been granted in-principle authorisation. "These entities process about
MSMEs,” he adds. After TReDS was introduced in 2014, three entities got permission to operate TReDS platforms, and two more have been granted in-principle authorisation. "These entities process about Rs 60,000 crore worth of transactions annually," added the MPC report. The objective of the TReDS is to enable financing of invoices/bills of MSMEs, drawn on corporate and other buyers, including PSUs and the government departments, by way of discounting by financiers. The aim behind this was to cut down time taken for sellers to receive payments. Sundeep Mohindru, MD and CEO, M1xchange, says the announcements aim to fulfill the requirement of a lot of SMEs doing business with medium-sized companies but don’t have a good credit rating. So they do not get finances easily and their invoices don’t get a discount. “Now, this insurance will act as a support to guarantee the low-risk profile buyer so that MSMEs can get the discounting done. If there is any payment default by the buyer, the bank can recover his juice through the insurance cover. So this is a big progressive step that will help thousands of MSME and get the invoices discounted," he says. The discounting plan will lead to more liquidity flow into the platform. “As a result, the MSMEs’ financing will increase," he adds. Also Read:
Xiaomi's SU7 bedazzles at India showcasing, may take some time to hit the road Chinese technology company Xiaomi on Tuesday showcased its electric vehicle even as it remained tight-lipped about launching it in India. Alongside, a host of other electronic products including the Star-Redmi 13 5G were launched. The company also launched Redmi Buds 5C, the Xiaomi Robot Vacuum Cleaner X10, the Xiaomi Pocket Power Bank 10000mAh, and the Xiaomi Power Bank 4i 10000mAh. Xiaomi's Chinese peers like and have already ventured into India as they look to tap into the nascent electric vehicle market. The SU7 may rival BYD's Seal, Hyundai's Ioniq 5, and Kia's EV6. Xiaomi's EV display move comes at a time when US electric carmaker is still to make any firm commitment on its India entry. "The SU7 was brought to India solely for showcase purposes. It is not for sale in the Indian market," a Xiaomi official said at the event. The SU7, a sports sedan, is Xiaomi's first electric car. The car created a buzz at the international level and witnessed a flying start in China. The model SU7 is a pet project of Xiaomi CEO Lei Jun and carries a price under USD 30,000 (around INR 25 lakh) for the base model, which is nearly USD 4,000 (INR 3.3 lakh) cheaper than the base model of Tesla's Model 3 in China. The SU7 closely resembles the Porsche Taycan electric car but costs less than one-fifth of the Taycan's price, which ranges from USD 140,000 to USD 275,000 in China. The Xiaomi SU7 is 4,997mm long, 1,963 mm wide, and 1,455 mm tall, with a wheelbase of 3,000 mm. As an electric vehicle, it features a 105-liter front trunk ("Frunk") and a 517-liter traditional boot storage. The SU7 comes in two versions - one with a driving range of up to 668 km with a single charge and another with a range of up to 800 km. The top-tier Xiaomi SU7 Max Performance variant includes a 101 kWh battery with an estimated range of 800 km (CLTC). This model boasts a dual-motor system producing 663 bhp and 838 Nm, with a top speed of 265 kmh in just 10.67 seconds. Xiaomi SU7 Max lets you get back on the road with an incredible 510 kilometres of range after just 15 minutes of charging. Even the standard Xiaomi SU7 offers a 350-kilometer range boost in the same timeframe. Not an easy road Earlier, ET reported that India may make changes to its new EV policy in order to incentivise automakers that have already made investments in the country. The policy, which aims to accelerate the local manufacturing of high-end electric cars, currently supports only fresh investments. The government is contemplating including investments in facilities that manufacture both internal combustion engines and electric vehicles in its incentive program. This move aims to enhance scalability and ensure significant investments are feasible for automakers Several car manufacturers, including Volkswagen-Skoda, Hyundai-Kia, and VinFast, have shown interest in the new policy, known as the (SMEC). Under the SMEC, the government will
for automakers Several car manufacturers, including Volkswagen-Skoda, Hyundai-Kia, and VinFast, have shown interest in the new policy, known as the (SMEC). Under the SMEC, the government will permit imports of fully assembled electric vehicles (EVs) with a minimum cost, insurance, and freight value of USD 35,000 at a 15% import duty rate for up to five years, provided that companies invest a minimum of USD 500 million in establishing new manufacturing facilities. Currently, Xiaomi’s biggest consumer product business in India is focused on smartphones. However, the company has launched many new products that will be sold in different categories. Consumer electronics still a focus The company has also launched 5G Star-Redmi 13 5G, the Redmi Buds 5C, the Xiaomi Robot Vacuum Cleaner X10, the Xiaomi Pocket Power Bank 10000mAh, and the Xiaomi Power Bank 4i 10000mAh. Xiaomi said that it's aiming to ship 70 crore devices across devices over the next decade, having achieved 25 crore sales over its 10-year presence in the India market. Beyond smartphones Xiaomi left a significant mark as it quickly gained a foothold in India's smartphone market after entering the scene in 2014. Within just three years after India entry, it captured a 24% market share, surpassing the long-time leader, Samsung. At one point, half of all smartphones sold online in India were Xiaomi products, according to a report by Ken. According to an IDC report, three major smartphone brands—Vivo, Xiaomi, and Samsung—dominated the Indian market by focusing on mass-budget smartphones. These three companies collectively held a 53% share in this segment. Conversely, shipments of entry-level smartphones saw a decline. Xiaomi was particularly successful in the under USD 100 category, followed by Poco and Itel. The company also packaged itself in 'Make in India' wraps after the escalation of the India-China border row. Beijing has regularly raised objections to India's increased scrutiny of Chinese businesses since 2020. This year, Chinese smartphone giant Xiaomi communicated to India's government that "confidence building" measures were necessary. The company noted that component suppliers were hesitant to set up operations in India due to compliance and visa issues.
Russia's oil export ban may bolster India crude imports 's decision to ban oil exports to potential Western buyers supporting a price will likely boost Indian imports of Russian crude, industry executives told ET. The , which insists on a strict price cap on supplies from Moscow, has already imposed a ban on the bulk of n crude exports. Some residual volumes still being imported into via pipelines could now be affected by the latest move. This could leave Russia with surplus crude oil volumes, something Moscow may want and China to absorb. However, since China is struggling with Covid infections, it may not have the demand for incremental Russian supplies, an Indian refinery executive said. "This would leave India with an opportunity to import more from Russia," said this executive, who didn't want to be named. This would also give India a greater bargaining power with prices, said the executive. The US and its allies have barred their shippers, financiers, and insurers from backing any trade in at prices exceeding $60 per barrel. Some Russian grades trading below price cap This has prompted Russia to ban the sale of its oil from February 1 to "foreign companies and individuals if the contracts on these sales include the use of this mechanism, directly or indirectly". The ban "applies to all stages of sales up to and including the final buyer," the Russian government said in a statement. To be sure, the prices of certain crude-oil grades might not breach the price ceiling. "It's clear that the oil purchase contracts can't have any reference to the price cap," said another industry executive, unwilling to be named. "But that doesn't mean the contract prices will necessarily be above the price cap since some Russian grades are already trading below the cap." Russia's flagship crude Urals is currently trading around $54 per barrel, lower than the cap of $60, and at a deep discount to the international benchmark Brent, which is around $82. ESPO and , Russia's other crude grades, are selling for $71 and $76 per barrel, respectively. "It's unclear how Russia will implement its plan going up to the final buyer," said the second executive cited above. Russia relies heavily on traders to sell its crude and it will be hard to track every cargo, especially at a time when shipments are changing destinations and customers midway. Russia has also amassed a large number of ships to deal with any shortage that might arise due to the price cap. Executives believe the Russian fleet will be helpful in transporting such grades of oil that are trading above the price cap. For the flagship Urals crude, which is trading below the cap, services from the West will anyway be available. In November, Urals comprised about 80% of India's Russian crude-oil imports. Also Read:
Aureus Investment to sell 3.2% stake in Sona BLW via block deal on Wednesday: Report Promoter Pvt Ltd plans to sell 3.25% stake in through a block deal on Wednesday, according to reports. Aureus Investment is offering up to 19 million shares, with the base size being 12 million shares. The floor price for the sale is INR 500 a share, a discount of 7% to Tuesday’s closing price of INR 535.50. Aureus Investment aims to raise INR 950 crore (USD 115 million) from the sale of stake. As of March end, Aureus Investment held a 33% stake in the . is the sole broker for the block deal. In March, private equity major sold the balance 20.5% stake in . Before the sale, Aureus Investment and Blackstone held 33.0% and 20.5% stake, respectively, in Sona Comstar as the 's co-promoters. The sale by Blackstone saw strong demand from foreign institutional investors, sovereign wealth funds, domestic mutual funds and insurance companies. Marquee investors like the Government of Singapore, Fidelity, FMR, ICICI Prudential Life Insurance and MF bought shares from Blackstone in the block deal. In 1 month, shares of Sona BLW have given over 11% returns, and 19% returns in a quarter. For FY23, the company reported 26% growth in revenue to INR 2,676 crore. Net profit rose 28% to INR 395 crore. Sona BLW stock has an average target of INR 574.33, which represents an upside potential of nearly 8% from the current levels. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Assam transport dept to enable Aadhar-based contactless services through CSC network now of Assam inked an with under for facilitating the people at panchayat level to avail Aadhar-based contactless services at 13,568 CSCs. Assam Chief Minister Himanta Biswa Sarma launched 10 Aadhar-based contactless services of the Transport Department at . The Transport Department had launched and successfully implemented three online Aadhar-based services last year, applying learner’s driving license from home, renewal of driving license and issue of duplicate driving license. The 10 services launched by the department on Saturday are 6 Nos of Vahan Software-based services relating to vehicles which are Transfer of Ownership related (of vehicle on sale or death of the owner), hypothecation Cancellation, Hypothecation Endorsement, No Objection Certificate (NOC for inter-district & inter-state transfer of vehicle from one DTO office to another), Change of Address (of vehicle owners after taking NOC from one DTO office to another), Duplicate Registration Certificate (in case of Loss, torn, mutilated etc.) Four Sarathi-software based services relating to Driving License International Driving Permit (to authorize one Indian Driving License holder to drive in another country), Replacement of Driving License (in case of torn or mutilated Driving License), Surrender of Class of Vehicle & Driving Licence Extract (in case required by any agencies like the insurance investigators). All these 10 services are expected to reduce footfalls at DTO offices by about 4 lakh people annually. A total of 4,52,000 people have been able to obtain learner’s license through online mode till now after launch of the service. Asserting that the Government of Assam is setting new benchmarks in efficient and hassle free public service delivery, the Chief Minister said that all efforts are being made to minimise compliance burden for common people in obtaining government services in pursuance of Prime Minister Narendra Modi’s vision. These online services are a step in that direction, he said. The Chief opined that DTOs should have less burden so that they can focus solely on enforcement of rules and regulations. By gradually phasing out offline application and service delivery in Transport Department DTOs would be made free to work in enforcement, he added. Sarma said that it is one of the top performing Departments of the State Government in the last nine months and similar growth is expected from the Department in the future as well. In addition to the ten services, the Chief Minister also launched a night navigation facility for Guwahati based ferry services and e-ticketing system for Dhubri and Silchar ferry services at today’s programme. An MoU was also signed today between Common Service Centres (CSCs) under Ministry of Information Technology and Transport Dept for facilitating the people at panchayat level to avail the above mentioned online services. 13,568 CSCs in Assam will enable
(CSCs) under Ministry of Information Technology and Transport Dept for facilitating the people at panchayat level to avail the above mentioned online services. 13,568 CSCs in Assam will enable people to obtain online services of the department. Also Read:
Savings, green concerns main reasons to opt for EVs: Survey NEW DELHI: Reduction in running cost and environmental concerns are the two main triggers for people to choose electric vehicles (EVs), a survey conducted across 10 cities has found. While nearly 56% of the respondents who intend to buy EVs said “desire to do good for environment” is the main reason, nearly 63% of the EV owners cited the same reason for buying vehicles that run on clean fuel. The study conducted by general insurance provider Acko, which covered both existing EV owners and those intending to buy them, found that the current infrastructure is not fully equipped for EVs, but 89% of them also felt will be ready for required infrastructure for EVs by 2030. Nearly 66% of the respondents felt EVs will surpass petrol and diesel vehicles by 2030. “There is a clear shift from practicality among EV intenders to being seen as consumers who care about the environment and are making an effort to reduce their own carbon footprints,” the report said. According to the survey, which covered respondents from cities including , , , Bengaluru and , shared concerns over the safety, charging infrastructure and performance of these vehicles. It has also highlighted that time taken for a full charge of the battery and availability of fast charging options are major barriers for people to go for EVs. The report found that nearly 42% of those who intend to buy electric cars had apprehensions of charging provisions at houses or buildings. Nearly 40% of such respondents were worried about the safety of electric cars due to incidents of fire. About 37% of respondents who want to go for EV two-wheelers were worried about the same. One in every three EVs owners felt that these cars are not as safe as conventional cars, an issue that needs immediate attention of vehicle manufacturers. Interestingly, the survey has also revealed how both EV owners and the potential buyers want EV specific insurance products and nearly 70% respondents said they would pay a premium for this. Also Read:
China's Xpeng to acquire Didi's smart EV unit in deal worth up to USD 744 mln Chinese electric car company said it will acquire ride-hailing giant 's smart electric vehicle (EV) unit in a deal worth as much as USD 744 million and the two companies will form a strategic partnership. Xpeng's shares surged around 13% in Monday trade. As part of the deal, Xpeng will launch an A-class model next year under a new brand, currently called MONA, aiming to expand in the mass-market segment with the car to be priced in the USD 20,000 price tier. "Project 'MONA' will accelerate the Company's production and sales growth and help achieve greater economies of scale," Xpeng said in a statement. The deal comes amid slowing demand and excess manufacturing capacity in China's EV industry that has made it hard for relative newcomers such as Didi to enter the market. Smartphone maker Xiaomi only recently won a regulatory nod to manufacture EVs - two years after first announcing such plans, sources have said. Didi said it will support the launch by "providing access to its mobility market" and the two companies will explore strategic cooperation in a number of areas, including marketing, financial and insurance services. Other possible areas of cooperation include charging, robotaxis and jointly developing an international market. Didi has been working with Chinese carmakers to develop robotaxis which it aims to put in service by 2025. Didi will acquire around 3.25% of Xpeng shares under the deal, which could increase depending on whether production and sales targets are fulfilled. The likely maximum deal value of USD 744 million includes potential milestone payments.
FPI holdings in domestic equities down 6% at USD 612 bn in March quarter: Report New Delhi: The value of ' (FPI) holdings in domestic equities reached USD 612 billion in the March quarter, down 6 per cent from the preceding quarter, according to a Morningstar report. This was largely on the back of a massive sell-off by foreign investors and correction in the Indian equity markets. At the end of March quarter, the value of in fell to USD 612 billion, which was lower than USD 654 billion recorded in the previous quarter, a fall of around 6 per cent, the report noted. In March 2021, the value of FPI in Indian equities was at USD 552 billion. Consequently, FPIs' contribution to Indian equity market capitalisation also fell during the quarter under review from 18.3 per cent to 17.8 per cent. Offshore mutual funds form an important component of total foreign portfolio investment, apart from other large FPIs such as offshore insurance companies, hedge funds and sovereign wealth funds. During the March quarter, FPIs were net sellers in Indian equities to the tune of USD 14.59 billion as compared to the net inflow of USD 5.12 billion in the previous quarter. On a month-on-month basis, foreign investors offloaded old net assets worth USD 4.46 billion in January, USD 4.74 billion in February and USD 5.38 billion in March. There was an exodus of foreign funds from Indian equity markets of epic proportion during the quarter ended March. The caution displayed among foreign investors was evident from the start of the quarter, which intensified as it progressed under the influence of worrying trends in both global and domestic markets. Explaining the sell-off, the report mentioned that weakness in the global markets triggered a risk-off approach in equities. The sentiments were dented from the start of the quarter with the US Fed signaling that it would start hiking interest rates soon and shrink its bond holdings. With that information, FPIs chose to move out of the markets that had rich valuations to invest in the ones offering relatively attractive valuation and better risk/reward. On the domestic front, the pro-growth budget and normalisation in the third wave of the pandemic in India did offer some relief and managed to check the exodus of funds to some extent in the interim. However, the scenario started to turn grim as tension started to escalate between Russia and Ukraine, the report noted. Rising crude prices and surging inflation in the US also continued to worry foreign investors as it was paving the way for the rate hike by the US Fed. These concerns ensured that foreign investors continue to offload their investments in the Indian equity markets on a rather regular basis, it added. However, FPIs went on a selling spree after Russia declared war on Ukraine and in March, the US Fed hiked rates for the first time since 2018 by a quarter percentage point and at the same time it indicated a series of more rate hikes this year. This opened the floodgates
and in March, the US Fed hiked rates for the first time since 2018 by a quarter percentage point and at the same time it indicated a series of more rate hikes this year. This opened the floodgates of outflows of foreign money from the Indian equity markets. So far this calendar year, FPIs have sold net assets to the tune of over USD 18 billion from Indian equity markets. Going ahead, foreign flows into Indian equities could continue to be under stress as there is nothing much to cheer up foreign investors and coax them to invest in Indian equities as of now. The ground reality remains grim, the report pointed out. "Besides the rate hikes by both RBI (Reserve Bank of India) and the US Fed, uncertainty surrounding the Russia-Ukraine war, high domestic inflation numbers, volatile crude prices, and weak quarterly results does not paint an incredibly positive picture. The recent rate hikes could also slow the pace of economic growth, which is also a concern," it noted. Adding to the worry is the resurgence of COVID-19 cases in China and in some other parts of the world. In such a scenario, FPIs typically turn risk-averse and adopt a wait-and-see approach until greater clarity emerges, it added.
Government should cut holding in public sector banks to under 50% The timing is impeccable. A day after the exit polls set the market on fire, a ( ) panel report has recommended that the government should divest its stake in state-owned banks to less than 50%, allow private equity houses to own 40% in distressed banks, and strip managers of private sector banks of their bonuses and Esops if they are caught ever-greening sticky loans. It has also said that RBI — and not the finance ministry — should have the last word on regulation of public sector banks which command 70% of the market share. “Boards (of PSU banks) are disempowered, and the selection process for directors is increasingly compromised,” said the report. The recommendations have the potential to transform Indian banks. The RBI-constituted committee is headed by PJ Nayak, the bureaucrat-turnedbanker who led Axis Bank for a decade. The panel has proposed an age limit of 65 years for CEOs and wholetime directors of private sector banks. Once implemented, lenders like IndusInd Bank and would have to identify successors for Romesh Sobti and Aditya Puri in the next two years. “Executive responsibility and corporate governance have not grown in tandem which is required for creating a healthy banking system and the report has tried to address it,” said Shinjini Kumar, director, PricewaterhouseCoopers. The Nayak committee has suggested certain checks and balances for banks where the promoter is also the CEO. “Where the principal shareholder in an entrepreneur-led bank is also the bank's CEO, RBI should satisfy itself that the board is adequately diversified and independent with professionals of high standing. Where RBI lacks confidence of such independence, the controlling shareholder should be asked to step down as CEO,’’ said the committee. Private lenders like YES and Kotak are led by promoter CEOs. However, the committee is in favour of promoters retaining up to 25% equity stake in banks as against RBI’s earlier policy under which they were directed to lower it to 15% in phases. In this connection, it has asked RBI to issue guidelines to allow shareholders to enjoy voting up to 26% and eventually aligning it with actual shareholding. The voting right continues to be capped at 10% (irrespective of shareholding) currently, despite a change in law. The most dramatic suggestion by the panel relates to ever-greening — an accounting trick to hide bad loans on banks’ books. It has proposed “cancellation of part or full, of unvested stock options of officers and whole-time directors, and the claw-back of monetary benefits like bonuses by the bank, in part or full.” Under such circumstances, the chairman of the audit committee would also have to step down from a bank’s board. In order to salvage sick banks in dire need of fresh capital, the committee believes India, like some of the other Asian countries, should permit private equity funds and sovereign wealth funds to acquire up to 40% equity in
banks in dire need of fresh capital, the committee believes India, like some of the other Asian countries, should permit private equity funds and sovereign wealth funds to acquire up to 40% equity in such banks. In order to weed out ‘unfit’ shareholders in a bank, the RBI, according to the panel, should have the right to freeze the investor’s voting rights and seek disinvestment of the shares within a time frame. The regulator should spell out a list of' ‘fit and proper’ investors like pension funds, provident funds, long-only mutual funds, long-short hedge funds, exchangetraded funds and private equity funds that would be permitted to hold 20% in a bank with no rights to appoint directors on the bank board. However, insurance companies and non-banking finance companies should not be included this list. With board representation, they would hold up to 15% stake in the bank. In case of PSU banks, the government, as per the report, should transfer its shareholding to a proposed Banks Investment Company (BIC) that would be empowered with the governance at the banks’ board. Also Read:
Goldstone Tech and Quantron AG float JV ROQIT for zero-emission solutions Goldstone Technologies (GTL), a leading Indian company for business intelligence, data and analytics, and , Germany, a specialist in sustainable passenger and goods transport, have entered into a joint venture, named ‘ ’. The name ‘ROQIT’ has been derived from ‘Rocks’ signifying durability and sustainability, with the letter ‘Q’ symbolizing Quality, eventually shored up by ‘IT’ as the last part of the name. The aim of the joint venture is to develop a digital transaction platform that will serve as the digital backbone of Quantron-as-a-Service (QaaS) in the future. In addition, AI-driven software solutions will be developed for the rapidly ramping up zero-emission fleet management market, that can be used independently of the manufacturer. The joint venture will operate from Augsburg in Germany and Hyderabad in India. A US facility is to follow by the third quarter of 2023 in order to address the global market for zero-emission solutions. Minister of State Florian Herrmann, Head of the Bavarian State Chancellery, sees great opportunities with AI in the mobility sector: "Mobility of the future will only become reality through the broad application of AI. It is only through AI-based efficiency and optimization solutions that we will be able to implement zero-emissions solutions globally. With the High-Tech Agenda, the Free State of Bavaria is investing a total of 5.5 billion euros in future fields such as AI, quantum technology or CleanTech. In this way, we are creating a unique ecosystem; the best conditions for the forward-looking joint venture between and Goldstone Technologies and for the broad roll-out of AI in the mobility sector." Jayesh Ranjan, Principal Secretary of the Industries & Commerce and Information Technology Departments of the Telangana Government, said, "This joint venture between Goldstone Technologies and Quantron AG is a testament to the global potential of Hyderabad's IT industry and the state's commitment to sustainable growth. We are confident that this collaboration will lead to the development of innovative zero-emission solutions that will address the growing demand for clean and efficient transportation in India and around the world. The collaboration between GTL and Quantron AG is an excellent example of how international cooperation can lead to innovative solutions that address global challenges." The integrated platform will consist of five digital pillars, namely fleet management, insurance-as-a-service, hydrogen economy, greenhouse gas accounting (GHG quotas) and data insights. The software offers a fleet overview dashboard, driver management, journey information, geo-fencing, charging or refuelling infrastructure management, smart navigator, carbon credit tracking, roadside assistance, reporting module and a mobile driver app. No other active digital solution offers a greater range of services and transparency. “The factors that distinguish
credit tracking, roadside assistance, reporting module and a mobile driver app. No other active digital solution offers a greater range of services and transparency. “The factors that distinguish this Digital Platform are that it is Partner Agnostic, Modular and OEM Independent. Data Insights, which is a crucial pillar, is estimated to reach a global market value of USD 71 Bn (INR 5.9 Lakh Crores) by 2032. Our contribution to this partnership will be to help customers drive impactful change through data-backed analytics to enhance their business through BI and Analytics Full Stack capabilities and Service Offerings”, according to Pavan Chavali, Managing Director of GTL. The joint venture of GTL and QUANTRON can already offer AI-supported solutions for fleet management for ensuring vehicle fleets can be operated more sustainably and efficiently. The demand for software-based efficiency and optimization solutions is particularly noticeable in Europe, USA, India and the Middle East. The first customers of the joint venture are QUANTRON AG and ETO Motors from Hyderabad. Michael Perschke, CEO of Quantron AGsaid , “We are looking forward to this Partnership with GTL in a bid to address the Fleet Management markets which is projected to exceed USD 70 Billion by 2032, combined with the Hydrogen Economy markets that anticipates over USD 320 Billion in global investments by 2030. The Indian ecosystem also presents a huge opportunity in this area, which would provide us the necessary expertise to make inroads into the global marketplace.”
Shriram Transport plans to raise USD 500 mn offshore MUMBAI: (STFC) plans to raise about USD 500 million from international investors in what will be the year's first offshore bond sale by a non-bank lender, three people with direct knowledge of the matter told ET. The financier of second-hand trucks is readying resources as it sees credit demand accelerating this year. The bonds are likely to have a tenor of five years. The proposed bond sale may be launched in the next two-four weeks. Citi, Deutsche, JPMorgan, HSBC and MUFG are among others helping the company raise overseas money. did not respond to ET’s query. Individual banks could not be contacted immediately for comments. Earlier in December, the Shriram Group announced that Shriram Capital (SCL) and Shriram City Union Finance (SCUF) would merge with STFC as part of the group’s corporate restructuring plan. The proposal involved the flattening of the holding company structure by demerging insurance and other non-lending businesses. Due to this, the last-mile-lender has become the largest retail non-banking finance company in the country with Rs 1.5 lakh crore worth of assets under management. “The merger announcement reduces the overhang that has existed over the company,” Emkay Research said in a note last month. “While the management expects Rs 200 crore in one-time integration costs, the benefits from the merger in terms of better cross-selling prospects improve the growth outlook for the firm over the medium term,” it said. The Shriram management expects a 10% merger benefit to the bottom-line over FY22-FY24 from a faster AUM growth via higher cross-sell possibilities across customers, and lower cost of fund advantage with SCUF currently being rated a notch lower than SHTF. About a year ago, the company raised $500 million through offshore bonds. Around that time, it carried a coupon of 5.375 percent. The 10-year US Treasury, a global rate gauge, was then yielding around 1.15 percent. However, those bonds were of three-and-a-half-year maturity. This time around, the company intends to raise five-year papers. “The company may cancel the fundraising if it does not obtain the long-term money,” said one of the persons cited above. Although the benchmark yield has shot up in the past year, the spread of Omicron virus has fanned doubts over faster economic recovery. The yield hovered around 1.50 percent in the last week of December after touching a year’s high of 1.74 percent on March 19. “This would be the right opportunity for Shriram to tap a global pool of investors before rates start rising in line with the increasing pace of economic recovery,” said another senior executive. Reliance Industries is set to hit the international market with a mega fundraising plan within two weeks, ET reported earlier. Also Read:
Motor insurance claims higher for EVs due to parts Mumbai: Insurance claims from damage to electric vehicles two-wheelers are turning out to be up to 20% higher in value than conventional vehicles, while they are 50% higher for four-wheelers. Also, the frequency of claims is higher in electric vehicles compared to internal combustion engines. The higher value of claims is because of the need to replace an entire assembly rather than repair it due to the non-availability of child parts. Also, there is a higher usage of plastic and fibre to keep the vehicle weight low which increases the damage. “The frequency of claims largely because many first-time users are not familiar with the high acceleration which leads to minor accidents,” said T A Ramalingam, Chief Technical Officer, (BAGIC). According to Ramalingam, the share of EV has quadrupled from less than one per cent of total vehicles insured before the pandemic to around 4% now. In both two-wheelers and four-wheelers, 98% of claims are due to loss claims caused due to accidents. However, fire loss, improper charging leading to fire, damages to charging unit, and flood losses were other common causes for claims as well. Ramalingam said that insurers are in talks with top EV manufacturers to introduce child parts and reduce the cost of replacements. They are also speaking to the manufacturers to educate customers on the proper use of the vehicle to bring down the damages. Bajaj Allianz is in talks with its foreign parent Allianz group companies to get the experience from underwriting in Hong Kong and China. This will help the company to come out will new innovations including a cover for the battery and a cover for cyber risks faced by EVs. If insurers are not able to control the claim costs in EVs the premium of these vehicles might need to be revised up wards.
Sept sets tempo for vehicle sales in festive season Fast growing rural demand along with urban demand for cars has propelled a rise in in September, setting the momentum for and Diwali sales. According to data by the Union ministry of road transport and highways, two-wheeler sales clocked a 66% rise in September whereas car sales went up by 8% compared to the corresponding period last year. "The overall demand for cars is certainly good as the supplies have streamlined from manufacturers and deliveries are taking place in time. Since car inventory levels are at an optimum, the deliveries are good as well," said Jigar Vyas, CEO of an Ahmedabad-based car dealership. The premium segment cars and SUVs and MUVs are primarily driving the demand for cars. The demand in the coming couple of months is expected to remain high on account of the festive season and muhurat purchases, coupled with discounts offered by dealers which include free insurance, cash discounts and exchange bonuses, among others. Dealers, however, have raised their concerns about the rise in the turnaround time for delivering cars after affixing number plates, especially after the regional transport office notified the new rules. "This will give rise to bottlenecks in the festive season. Dealers will not be able to make spot bookings for cars in the inventory. Spot bookings are often done on auspicious muhurats like Navratri, Dussehra and Dhanteras. This time, we will have to close the bookings about five days to a week in advance for deliveries scheduled on muhurat days," said an Ahmedabad-based car dealer. According to vehicle dealers, the growth rate of car and two-wheeler sales is much higher in the rural areas, thanks to good monsoon and improved agriculture earnings, compared to urban areas. The vehicle registration data with the RTO reveals that the January 1-September 31 period recorded the highest four-wheeler sales in the past five years. In the first nine months this year, 2.42 lakh vehicles were sold in the state against 2.40 lakh in the nine months of 2022 and 1.92 lakh and 1.30 lakh vehicles in the corresponding periods in 2021 and 2020 respectively. Explaining the trend, Pranav Shah, ex-chairman, Gujarat, Federation of Automobile Dealers' Association (FADA), said, "Two-wheeler sales was driven by the rural market this time instead of the urban market. Demand for gearless two-wheelers is particularly high in addition to high-end motorcycles here. Even electric vehicle sales is picking up well."
We are positive on financial, pharma & auto; cautious on FMCG: Mukul Kochhar , Head, Institutional Equities, , says , even though the probability of a negative or a disappointment in the election for the is very, very low, the outcome or the impact is going to be so severe that everybody today has stood up and started paying attention to what is happening to election related news flow. So, there is a definite change versus three weeks back to our conversation around this. You have put out a high frequency data story in charts but just anecdotally you must be interacting with a lot of clients and top of the mind is . What are the range of outcomes, what are the kinds of hypotheses you are building in? It may not be a very large issue for a long term, but for the medium term clearly it is something to watch out for as a monitorable. Mukul Kochhar: What makes this election more interesting than some of the others in the past is the level of complacency that we went into the elections with. Let me elaborate on that a little bit. The multiples were quite punchy. Honestly, it reflects the business momentum in the economy. The business momentum in the economy is very, very strong. But there was pre-elections hardly any debate about what is going to happen in the election outcome. So, there was this general sense that, okay, elections are a done deal. Now, that conversation has changed a bit. I am not saying that the outcome is any different or we expect the outcome to be any different versus what we thought three or four weeks back. Having said that, the range of outcomes, if the election does give you a surprise, is so steep. At one end, we are looking at maybe 10% to 20% downside depending on who you speak to and on the other hand upside is going to be fairly muted or this is going to be somewhat there if outcome is as expected, because that is largely priced in. So, even though the probability of a negative or a disappointment in the election for the markets is very, very low, the outcome or the impact is going to be so severe that everybody today has stood up and started paying attention to what is happening to election related news flow. So, there is a definite change versus three weeks back to our conversation around this. There is a view that this earning season, the top line growth is not very healthy across sectors; only certain sectors are showing top line growth and the margin expansion was showing because lower commodity prices may be also at risk in the coming quarters. What have you made of the earnings? How will this business momentum which you are referring to, translate to earnings in the next few quarters? Mukul Kochhar: Let me first talk about the business momentum and then I will address the earnings question, both are good questions. When we speak about the economy today, you cannot isolate a very major global economic event that happened two years ago, which is COVID. So, COVID created substantial stress in household savings across
we speak about the economy today, you cannot isolate a very major global economic event that happened two years ago, which is COVID. So, COVID created substantial stress in household savings across the world, globally. In the US, the federal government ran massive deficits to supplement those savings, so the consumer is very strong. In India, we did nothing like that, so the consumer obviously is still feeling the brunt of what happened during COVID. However, our forward looking outlook is exceptionally sort of good here. So, the consumer is recovering, then the pockets of consumers are good. Two-wheeler sales have been exceptional even though they are off pre-COVID. Where we derive our optimism from is the nascent shoots in the private capex cycle. I remember I spoke about this in your last show as well. We expect the private capex cycle to be exceptionally strong over the next three to five years if the current dispensation continue and there is stability and we expect the private capex momentum to be exceptionally strong and that is predicated on the fact that BSE 500 earnings have been very, very strong over the last three to five years. So, post-COVID, pre-COVID earnings of the BSE 500 were four to five trillion. In FY25, we expect that same earning for BSE 500 to be fourteen-and-a-half trillion rupees. Our analysis also reveals that the private companies have a tendency to invest whatever PAT they make or whatever profit they make back into capex. So, we expect almost INR 7 to INR 8 trillion of incremental private capex to come into the economy which is not a small number. This is $100 billion. It is also roughly 70% to 80% of the base central government capex that we do every year. We expect private capex to be strong, which is going to drive GDP growth, employment and more healthy consumption going forward, that is the reason why I am saying business momentum is strong. Earnings for the last two years have been fourteen-and-a-half trillion rupees. This is based on substantial year-on-year earning growth. So, up till FY24, earnings have been strong, margins have been expanding, which is what has been driving the market rally too. By the way, the entire market rally where people have made decent money from markets has been driven on the back of earnings growth. Multiple has expanded. We are at five-year average multiples in the market. So, it is a very healthy market which we see today. Going forward also, I expect earnings to be healthy. One small pointer, as you mentioned margin, there is a decent difference between your input cost inflation, which is measured through WPI, that is roughly zero percent today and CPI is at 5%. I do not want to complicate it too much. All I want to say is that companies have more pricing power today or they are able to exert more pricing power than the input cost inflation they are seeing. So, margins going forward are also going to be healthy and we will see reasonable expansion in that. What about
are able to exert more pricing power than the input cost inflation they are seeing. So, margins going forward are also going to be healthy and we will see reasonable expansion in that. What about earnings quality momentum from here on? BSE 500 is a very good representative. It covers a breadth of sectors and the larger indices are very narrow in my view. Which sectors in your view will lead the earnings momentum from here next two to three years? Mukul Kochhar: We are very bullish on financials. On a sequential basis, financials across the board, all lending franchises have seen a very, very strong growth. For instance, you would be surprised that on a sequential basis, PSU banks have registered north of 25% as a sequential basis PAT growth. Similarly, there is a double-digit growth in private banks. So, financials across the board given RBI's actions in the sector, will see differentiated advances growth across franchises which will create pricing power in the sector. NIMs or margins in banking sector will stabilise. So, there will be good profit growth going forward as well on the back of reasonable profit. This combined with the fact that the sector itself has not worked too much in the last couple of years, make us quite bullish on the lenders. In the financial space, we also like other plays like life insurance, general insurance, as well as wealth managers. We are very positive and expect good earnings momentum in the financial space. We are also quite positive on pharma. On the basis of more capital discipline in the sector and our analysts had a very good call on the space, counter consensus and he continues to be bullish. So that is another sector we are backing. Automobiles, really, really like automobiles, two wheelers especially, see further upside on earnings despite the fact that the sector has worked very well, we have been backing this call for the last two years, we have written it, but we still like the business momentum there and the multiples are also fairly reasonable. On the negative side, we are sort of cautious on FMCG, both on the multiples as well as earnings there. There was a very synchronous kind of a positive commentary from all consumer companies, Dabur, Britannia, Marico, all of them started talking about second half recovery and green shoots. Are you convinced or would you like to see more evidence before you go positive on that? Mukul Kochhar: Honestly speaking, the economy is going forward and I am all assuming continuity. If the market goes defensive on Tuesday and the nature of consumption in India changes, savings basket changes, etc, it is a different story. But what we see is a premiumising consumer which is able to meet their basic needs. So FMCG consumption in his basket is going to come down, he is going to do more discretionary consumption, premiumised consumption, as well as savings. That is the picture of the consumer we are looking at. So, broadly, volume growth which has come down for FMCG
going to do more discretionary consumption, premiumised consumption, as well as savings. That is the picture of the consumer we are looking at. So, broadly, volume growth which has come down for FMCG companies, while they may be talking about a small two quarters sort of bubble here or there. We think that the volume growth that has come down for FMCG companies is quite structural and valuations, as you already know, or anybody involved in the Indian markets they FMCG companies have punchy valuations. So, we are ignoring this small sort of upside that has happened in this quarter, short covering based on positive commentary. We think if the current dispensation continues, the current regime continues, staple consumption especially in India will be weak. Your thoughts on metals, interestingly the space is doing well and at least the largecap metal pocket in India, many of them have some special situations brewing, but what are your thoughts on metals and also steel in particular? Mukul Kochhar: So, nothing very big there. It is a global sector, very-very noisy. We are sort of more positive non-ferrous than ferrous. Broadly, I will leave it at that. I do not really have a very, very strong call on metals at one time. It is easier to call metals when they are at a peak or at a bottom, but they are neither here nor there right now and it is very volatile sector. I reserve my comment there. Your team has been studying the high frequency data. Net-net, what is the forward-looking picture on the economy which you are gathering from there? Mukul Kochhar: As I said, capex shoots are there. Private capex is looking very good. Tax collections are good. So, in one way, it speaks to the consumer as well because income tax collection is good, airline travel is good. We put the quarterly reports of earnings there. The quarterly reports are sort of mixed. As I said, the consumer segment is not out of the woods. Those stocks had a tough couple of years under COVID and they have not completely repaired their balance sheets. But where we are seeing good green shoots is on the investment side, which is going to lead recovery for next five years.
As EVs catch fire, insurance firms face pricing risk The woes of the electric vehicle owners who have been suffering after their vehicles caught fire may not be over as they may not get claims for it. While a third-party insurance policy does not cover fire damages, the comprehensive policies do cover fire claims but that is not guaranteed. A comprehensive plan includes own damage (OD) cover along with the third-party liability cover. The cover in comprehensive policies depends on the cause of the fire. It does not cover the damage if the fire is caused by the breakdown of any EV part. While the fires are being blamed on hot weather to other things, experts say thermal runway which leads to heating up of the battery may be the reason. In that case, the claim will be rejected as also when modifications are made to the vehicle which may have contributed to the fire. Also, there have been instances of detachable batteries of exploding while being charged and so won’t be covered as well. The bigger issue There are more fundamental problems staring at the insurance companies as EVs become ubiquitous on the roads. These problems exist across the automobile ecosystem, from insurance to financing. In insurance, this includes something as basic as finding a way to price EV risk into mathematical models. This stems primarily from the non-availability of data, as no one has any previous experience in EVs and in determining the risks it entails. Insurance is all about averaging out risks and the premium is fixed on the basis of mathematical models and years of data. At a relatively lower scale, this isn’t as much of a problem, but as the shift to EVs hastens, pricing issues will become more prominent. The pricing conundrum As of now, both own damage and third party insurance covers are calculated on the basis of years of data from the automobile. There is no specialised insurance for EVs, so vehicle owners have to buy the same insurance as for other petrol or diesel cars. This is soon set to change. With the demand for upcoming electric cars in India on the rise, auto-insurance providers want to develop bespoke insurance options that primarily cater to these variants. Such products will have to account for EV specific problems. With fewer moving parts, the cost structure for the maintenance and repair of EVs would be different, something that will massively impact OD premia. There is a high likelihood that even geographical location and the vagaries of climate in that location will affect things like the battery performance, all of which will have to be accounted for in the maths. Till the time they get further clarity on all aspects of EV pricing and insurance guidelines, insurance companies will continue insuring such vehicles with reference to the rates provision under GR 46 of rating of vehicles driven by non-conventional source of power. Traditionally, both premia have been calculated on the basis of the cubic capacity (cc) of the vehicle. But in the
under GR 46 of rating of vehicles driven by non-conventional source of power. Traditionally, both premia have been calculated on the basis of the cubic capacity (cc) of the vehicle. But in the case of EVs, that unit is irrelevant. In EVs, the ICE is replaced by the motor, with the power output measured in kilowatt (kW). The power-output measure for ICE engines would be horsepower (hp). Horsepower and kilowatt are directly related and can be converted from one to the other (1hp equals 0.746kW) This obviously leads to a problem. In one case what is measured is volume and in the other, what underpins the calculations is power output. It is impossible to find a similar equivalency between cc and kW. This is because hp, which is the equivalent of kW, is a unit of power and cc is a measure of volume. Power output or hp could differ between engines of similar volume. Thus, while EV premium calculations are currently being benchmarked against historical ICE data, that is clearly a fundamentally flawed formula. Also Read:
TVS Supply Chain seeks approval for IPO Ltd. has sought the Indian market regulator’s approval to raise as much as 20 billion rupees ($264 million) selling new shares in an initial public offering. The company’s existing shareholders, including founder TVS Mobility Pvt. and investors Gateway Partners and Ltd., plan to sell as many as 59.48 million shares in the , according to a draft prospectus. The Chennai-based company plans to repay some of its debt, and buy out minority shareholders in its U.K. unit from the proceeds. TVS Supply Chain, which counts Ltd., Daimler India Commercial Vehicles Pvt., Pvt. and Hyundai Motor India Ltd. among its customers in India, has a presence in the U.K., Spain, Germany, Australia and Singapore. Direct spending in the Indian logistics market is estimated to double to $365 billion by the year to March 2026, TVS Supply Chain said in its draft prospectus, citing data from consultant RedSeer. JM Financial Ltd., Axis Capital Ltd., J.P. Morgan India Pvt., BNP Paribas, Edelweiss Financial Services Ltd. and Equirus Capital Pvt. are the banks managing the share sale. Delhivery Ltd., another Indian logistics firm, received the market regulator’s approval last month for an initial share sale to raise as much as 74.6 billion rupees. It has yet to begin the share sale while state-run is due to submit its draft prospectus to the capital market regulator soon for a share sale in what is expected to be the nation’s biggest IPO.
Govt issues draft Motor Third Party Premium and Liability Rules for FY24 The government on Tuesday proposed new base premium rates for third-party motor insurance for different categories of vehicles, including two-wheelers, passenger cars and commercial vehicles, for 2023-24 fiscal. As per a draft notification issued by the and Highways (MoRTH), the base premium rates for have been proposed at INR 2,094 for private cars below 1,000 cc, INR 3,416 for cars (between 1000-1500 cc) and INR 7,897 for cars exceeding 1500 cc. The draft and for the Financial Year (FY) 2023-24 has been prepared in consultation with Insurance Regulatory and Development Authority of India (IRDAI), the ministry said. For two-wheelers not exceeding 75 cc, the rates have been proposed at INR 538, while for two-wheelers up to 350 cc and above the proposed rates vary in the range of INR 714 and INR 2,804. The proposed rates for (other than 3-wheelers) not exceeding 7500 kg is INR 16,049, while the rates vary in the range of INR 27,186-INR 44,242 for vehicles upto 40,000 kgs and above. For the goods carrying motorized three-wheelers and motorized pedal cycles except e-carts, the proposed rate is INR 4,492. For private e-cars not exceeding 30 KW, the rates have been proposed at INR 1,780 and for 30 KW-65KW proposed rates are INR 2,904, and e-cars exceeding 65 KW (INR 6,712). Proposed rates for e-two wheelers not exceeding 3 KW is INR 457, 3 KW-7 KW (INR 607), 7 KW-16 KW (INR 1161), and for 16 KW and above (INR 2,383). For battery-based goods carrying commercial vehicles (other than three-wheelers) not exceeding 7500 kg, the proposed rate is INR 13,642, 7500-12000 kgs (INR 23,108), 12,000-20,000 kgs (INR 30,016), 20,000-40,000 kg (INR 37,357), and for those exceeding 40,000 kg (INR 37,606). A discount of 15 % has been proposed for educational institution buses, 50 % has been proposed for a private car registered as vintage car, 15-7.5 % discount for electric vehicles and hybrid electric vehicles, respectively. Further, a reduction of about 6.5 % in the base premium rate has been proposed for 3-wheeled passenger carrying vehicles, the ministry said adding it invites comments and suggestions from all stakeholders within a period of thirty days.
Tesla's quarterly deliveries disappoint ahead of robotaxi unveiling reported a smaller-than-expected rise in third-quarter deliveries on Wednesday as incentives and financing deals failed to lure enough customers for its aging , sending shares down more than 6 %. That puts the - already grappling with rising competition and slowing demand for EVs - at risk of its first-ever decline in annual deliveries after years of rapid growth. Shares of the world's most valuable automaker were on track to erase by the end of Wednesday's session all of the gains made so far this year. The stock had risen in recent weeks on investor hopes for Tesla's Oct. 10 event in Los Angeles where it is expected to unveil its product in a bid to shift focus to AI-powered autonomous technologies. Tesla has been slashing prices and extending incentives, including insurance offers and zero-interest financing, especially in China, which accounts for a third of its sales. That helped boost China sales in July and August, according to data from the . Analysts believe the China strength continued in September but that U.S. and European demand was low. "We believe China showed relative strength this quarter but was offset by weakness in the US and Europe," Dan Ives, an analyst at Wedbush Securities, said in a note. Tesla handed over 462,890 vehicles in the July-September period, up 6.4 % from a year earlier, marking its first quarterly growth after two straight quarters of falling sales. But that fell short of 469,828 deliveries expected on average by 12 analysts polled by LSEG. While CEO has said he expects the company to in 2024 from the record 1.8 million vehicles it handed over last year, Wednesday's numbers make that "extremely difficult," said Sandeep Rao, a senior researcher at Leverage Shares, an investment management company with assets of about USD 1 billion, including in Tesla and other EV makers. Tesla now needs a record-breaking 516,344 vehicle deliveries in the fourth quarter to prevent a drop in 2024 sales. "There's only so much Tesla can do with price cuts and incentives while offering no fresh vehicles for customers," Rao said, adding that rivals, especially in China, have been launching a range of new models. Price cuts and incentives have also squeezed the company's profit margins - fallout that investors and analysts have said could prove detrimental in the long run. Some analysts said that a return to growth marked a positive sign for Tesla and showed that some of the incentives it had rolled out to boost demand were working. "Taking a step back, deliveries returning to growth were the most important thing to come from today's numbers," said Hargreaves Lansdown senior equity analyst Matt Britzman, who holds Tesla shares. The company delivered 439,975 Model 3 and , and 22,915 units of other models, which include the Model S sedan, Cybertruck and Model X premium SUV. It produced 469,796 vehicles during the July-September period. The deliveries were higher than
, and 22,915 units of other models, which include the Model S sedan, Cybertruck and Model X premium SUV. It produced 469,796 vehicles during the July-September period. The deliveries were higher than those of rival BYD , which handed over 443,426 battery-electric vehicles in the third quarter.
Refuse fuel to uninsured vehicles, suggest insurers The insurance industry has proposed that should not be allowed to refuel at oil pumps, looking to raise penetration of automobile insurance, industry executives familiar with the development said. The proposal was part of the presentation made during 'Bima Manthan', organised by insurance regulator, the Insurance Regulatory and Development Authority of India, or , earlier this month. Insurers have proposed an app that will be integrated with M-Parivahan and show whether the vehicle is insured or not. "The idea is to collaborate with oil companies and have such camera scans at pumps, which will instantly display the insurance status of the vehicle," said an industry executive aware of the development. Under the existing regulations, third-party motor insurance is mandatory. As per industry estimates, 54% of the vehicles are uninsured. Mostly commercial vehicles, which include tractors and three-wheelers, do not opt for insurance renewal. A similar trend is observed in the case of two-wheelers. Industry believes that denying fuel to uninsured vehicles would also aid government revenues. "This will also help the government, as our estimates indicate that 54% of uninsured vehicles amount to premia of INR 40,000 crore, which leads to an annual goods and services tax loss of over INR 7,000 crore," the executive, quoted above said, adding that the proposal may be taken up with concerned ministries and other stakeholders. Another executive said that if the proposal is accepted by the government, a system may be devised to offer uninsured cover on the spot. "We have also recommended that no uninsured vehicle should be given a as it will limit their movement," he said, adding that the industry council is also in discussion with the ministry of road transport and highways to leverage the FASTAG and VAHAN ecosystems and identify uninsured vehicles. "Such vehicles can be penalised, and we can build in provisions to purchase insurance via 'Bima-Sugam' architecture," he added. IRDAI is working on Bima Sugam, an online insurance marketplace, which will provide a one-stop platform for multiple services including sale of policy, renewal and settlement of claims. According to industry estimates, the current size of the motor segment is over INR 80,000 crore. In the last few years, the industry's loss ratios have consistently remained upwards of 80% except during FY21, when they touched 75.6%, mostly on account of Covid restrictions and low usage of vehicles. Earlier this month, IRDAI held its third Bima Manthan as a part of its aim to achieve universal insurance by 2047. It sought recommendations from the industry to further improve insurance penetration across all sectors.
Citroen C3 Aircross SUV variant-wise pricelist out New Delhi: French carmaker Citroen’s latest offering, the new C3 Aircross SUV, is now available at an introductory price of INR 9.99 Lakh (ex-showroom New Delhi). This mid-size SUV is over 90% localised and designed in India to cater to the varied needs of Indian consumers. The New SUV Introductory Prices (Ex-showroom New Delhi): Roland Bouchara, CEO & Managing Director, Stellantis India, said, “We are delighted to launch the highly anticipated new C3 Aircross SUV, designed, developed and made in India for the discerning consumers. This mid-size SUV is built featuring key elements of Citroen’s DNA -- Comfort and Innovation. It has received a positive response across the country since the start of bookings in September. We are ramping up our production to cater to the festive season demand. Our expanded and ever-growing network of showrooms and workshops is ready to deliver the new C3 Aircross SUV, with its class-leading features, distinctive eye-catching styling, and matchless versatility." Ease of ownership: Buy Now Pay in 2024 for all deliveries till 31 st October 2023. Citroen Finance, in association with its finance partner, is providing a unique loan offer wherein customers can buy the car till 31 st October 2023 while the EMIs will start from 2024, giving the customers the joy of experiencing the all-new Citroen C3 Aircross SUV during this festive period.With the launch of the C3 Aircross SUV, Citroen along with its partner insurance companies is introducing two new customer-centric vehicle insurance add-ons: Emergency Medical Expenses Cover, and EMI Protect Cover, the company said. Customers can also avail of Usage Based Insurance (UBI), a one-of-a-kind initiative in the industry. The innovative policy, connected with vehicle usage and driving behaviour, promotes road safety with savings on insurance renewal premiums. Citroen is committed to enhancing the ownership experience through innovative solutions and offers. New C3 Aircross SUV will come with a standard Warranty Programme of 2 years or 40,000 km (whichever is earlier) including 24/7 Roadside Assistance and an accessories warranty for 12 months or 10,000 km (whichever is earlier). Citroen also provides extended warranty and maintenance packages, available across our network. Citroen is offering 100% direct Online Buying through its website. Customers in major Indian cities can order directly from the factory and get doorstep delivery of their vehicle. The New Citroen C3 Aircross SUV is available for retail at 51 La Maison Citroen Phygital showrooms across 46 cities, the company said in a media release.
Decoding how connected vehicles can catalyse safer, sustainable mobility New Delhi: In today’s increasingly transformative world of mobility, the ( ) has emerged as a cornerstone of innovation, rapidly transforming how fleet owners interact with vehicles and the ecosystem. Initially focused on simple location services, in India today encompass a broad spectrum of advanced functions including real-time vehicle diagnostics, fuel efficiency insights, and driver behavior analytics. This expansion signals a significant leap in operational efficiency and has fundamentally transformed fleet management and stakeholder experience. The impact of CVP in India has been significant, thus far. By enabling real-time monitoring, it has improved fleet management for businesses, reducing fuel consumption and improving asset uptime through predictive maintenance. For drivers, CVP has enhanced safety features, based on driving behaviour, and even has aided in emergency responses through automatic crash notifications. These advancements have not only increased the value proposition of connected vehicles as a solution but are slowly fostering a culture of informed driving practices for the commercial vehicle industry at large. Reflecting this growth, India’s connected truck market is expected to see a rapid uptick in adoption, soaring from an estimated USD 51.6 million in 2022 to USD 205.6 million in 2027. As we navigate a period where technology continues to present new possibilities, the role and application of CVP is set to evolve further. Its potential remains vast, with opportunities ranging from fleet financing to advanced AI-driven insights, promising a future wherein the platform becomes an indispensable tool in our pursuit of a safer, more efficient, and sustainable transportation ecosystem. Emerging Opportunities The road ahead for CVP is to revolutionize not only how we manage vehicles but also how we envision mobility and transportation in the broader context. In fleet financing, it can overhaul traditional models by harnessing detailed vehicle usage and risk assessment data. This will facilitate creation of tailored financing solutions, reducing costs and improving accessibility for fleet operators. Furthermore, CVP can also assist the insurance industry by enabling usage-based insurance models. Insurance companies can leverage connected vehicles data to assess fleet usage more accurately. This could lead to fairer premiums based on actual vehicle utilization and driving behaviour. In emergency response services, the immediacy and accuracy of connected vehicles data can be a game-changer, enabling quicker dispatch of services to incident locations, potentially saving lives and reducing the impact of accidents and emergencies. In the coming years, the integration of sophisticated connected vehicle platform systems can lead to greater efficiency and optimization. While the platform currently provides valuable insights into driver behavior and vehicle
of sophisticated connected vehicle platform systems can lead to greater efficiency and optimization. While the platform currently provides valuable insights into driver behavior and vehicle performance, the integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies will elevate these capabilities as AI and ML algorithms excel at recognizing complex patterns and correlations within vast datasets, enabling them to uncover subtle trends. Moreover, these technologies are adept at detecting anomalies and deviations from normal behavior, allowing fleet owners to identify potential issues such as aggressive driving or mechanical problems more effectively. By leveraging historical data and real-time inputs, AI and ML models can also predict future outcomes with greater accuracy, enabling proactive maintenance scheduling and optimized route planning. In fact, Tata Motors already uses ML in its fleet management solution, Fleet Edge, which connects over 600,000 commercial vehicles across the country to analyse real world customer usage and offers solutions to its customers to significantly reduce their fuel consumption. Through smart technologies, Fleet Edge provides in-depth insights and analytics to enhance fleet performance, operational efficiency, and thus customer profitability. The Road Ahead The future of connected vehicles in India is fuelled by technological advancements and the growing demand for connectivity. This emphasizes the importance of seamless integration and real-time data exchange among ecosystem players for wider connected vehicles enabled use cases and adoption. Additionally, government initiatives promoting digitalization and road safety will further accelerate adoption of connected vehicles platforms across sectors. As the industry evolves, the convergence of technology, customer demands, and regulatory frameworks will drive a transformative shift towards highly intelligent and interconnected transportation ecosystems, placing the need for connected vehicles at the forefront. (Disclaimer: Bharat Bhushan is Head, Digital Business, Tata Motors Commercial Vehicles. Views are personal.)
US auto insurance shoppers jump 6% in Q1, says TransUnion The number of shopping for in the first quarter was 6% higher than a year earlier, according to credit reporting agency TransUnion , underscoring efforts to cut costs as inflation squeezes consumer wallets. Insurance shopping refers to the practice of evaluating different policies to seek out the one best suited to a customer's needs. Customers shop for insurance more actively during times of financial strain to look for policies with cheaper premiums. Auto insurance costs in April climbed 22.6% from a year earlier, according to the Bureau of Labor Statistics, which is the largest annual increase since the 1970s. The surge was driven by a jump in costs associated with repairing increasingly complicated vehicles. Frequent vehicle damage due to adverse weather has also prompted insurers to charge higher premiums to account for losses incurred when they pay out customers' claims. "As insurers see improved profitability, it's likely that some will cautiously increase investments in customer acquisition," Stothard Deal, vice president of strategic planning for TransUnion's insurance business, said.
ONGC to get dividends instead of oil from Russia's Sakhalin-1 field ( ) has stopped receiving its share of oil from 's Sakhalin-1 but will get dividends from the field, according to people with knowledge of the matter. Until a little after the beginning of the Ukraine war last year, ONGC, which has a 20% participating interest in Sakhalin-1, used to get a proportionate share of oil from the field, which it could sell to anyone. But now all the oil from Sakhalin-1 is sold by a new company Russia formed last year to operate the field, which had stopped production for several months. It's now producing at near-normal levels of about 200,000 barrels per day, according to the people cited earlier. ONGC has a 20% stake in the new Russian operator, which would give the Indian firm a proportionate share in dividends whenever they are paid out, they said. Change in cash flow This will change ONGC's cash flows with respect to the project, a person familiar with the matter said. The ability to regularly sell Sakhalin-1 oil meant quick cash realisation. Dividends may come only once or twice a year. Since the beginning of the war, it's been hard for Indian state firms to repatriate dividends from a few other Russian oil and gas fields as Western sanctions have restricted cross-border money transfers. Indian state firms, including ONGC, , and , have stakes in a few other Russian fields where they receive only dividends but in Sakhalin-1, ONGC could previously sell its share of oil. Indian state firms have been unable to repatriate $300-400 million of dividends from Russia since the beginning of the war, a petroleum ministry official said last month. This also means that an Indian company finds it hard to send its share of capex and opex for a Russian field, according to people familiar with the matter. The operator uses the oil revenues to provide for much of the capex and opex for the project, instead of issuing cash calls to stakeholders, the person said. The oil from Sakhalin-1, known as the Sokol blend, has mostly traded above the Western price cap of $60 per barrel, which means increased efforts for sellers to find buyers, shippers and insurers.
Exide Industries misses Q4 profit view on high costs Indian lead-acid Industries Ltd reported a lower-than-expected quarterly profit on Monday, hurt by higher raw material costs. Exide's net profit after tax was at 2.08 billion rupees (USD 25.45 million) for the quarter ended March 31, while analysts on average expected a profit of 2.52 billion rupees, according to IBES data. The company's 41.20 billion rupees net profit after tax from a year earlier had included a one-time gain from the sale of Exide's insurance unit to HDFC Life Insurance Company Ltd. While Exide and other auto ancillaries benefitted from strong demand for vehicles and price hikes in the quarter they also grappled with high costs of lead and other raw materials. Exide's total expenses jumped 3.8%, including a 12% rise in the cost of materials consumed. The earnings before tax, depreciation and amortisation ( ) margin expanded marginally to 10.4% from 10.2% last year. "However, increase in raw material prices compared to the immediate previous quarter has impacted profitability on a sequential basis," said Subir Chakraborty, managing director and chief executive. The company, which has clients in the auto, industrial, telecom and railway sectors, reported a 3.7% rise in revenue from operations to 35.43 billion rupees. Overall volumes in the domestic market for the automotive vertical registered year-on-year growth, while "demand was strong from original equipment manufacturer, with supply side constraints easing out during the quarter," the company said in an exchange filing. The industrial verticals including industrial UPS, solar, traction, telecom and power saw growth amid an increase in capex and economic activity with strong order inquiry during the quarter, the company added. Exide's shares fell 0.5% briefly after the results and were up 3.5% as of 2:16 p.m. IST. The board of directors recommended a final dividend of two rupees per share for the financial year ended March 31, 2023.
Higher commodity prices dent Corporate India's Q3FY22 margins New Delhi: Higher have dented Corporate India's Q3FY22 margins said HDFC Securities in a research report. According to the report, the ongoing results season is behaving largely on expected lines as far as topline growth is concerned. However, margins across the board have fallen mainly due to higher commodity prices. Lately, Covid triggered supply side issues as well as other global developments have pushed commodity prices higher. Besides, it pointed out that the inability to fully pass higher cost due to "not so robust demand" especially from the rural side have added to the trend. "Some large are yet to report and one will watch as to whether the trend continues or reverses." "Q4 also will see some impact of the latest Omicron related disruptions." Amongst sectors, stocks of have performed well. However, refining, consumer durables, cement sectors stocks have performed below expectations. "Among sectors, textile, sugar or ethanol, engineering, PSU Banks, footwear, select chemical, steel, media, and IT stocks have done well." "Auto, paints, Life Insurance, pharma, refining, consumer durables, cement sectors have disappointed."
July-September hiring outlook at 8-year high Job creation is likely to see a strong boost in the upcoming September quarter, with employers reporting the most optimistic outlook in eight years, as companies look to speed up the post-pandemic recovery process and sustain growth, despite rising inflation. According to the Survey, shared exclusively with ET, about 63% of 3,080 employers said they will hire more in the coming quarter, while 12% see decrease in hiring intent and 24% expect to keep workforce levels steady. Only 1% were unsure about hiring intentions. This puts net employment outlook - the difference between companies looking to hire and those expecting a fall in headcount or hiring numbers - at 51%. When compared with the same period last year, hiring sentiment has improved by 46 percentage points. There is a 13-pp growth from the preceding quarter. Hiring markets in are ranked first in the region and third globally. India's on-year increase is ranked first globally, outperforming the 40-country average increase since the third quarter of 2021 by 28 points. "Overall, there has been an optimistic outlook across sectors and industries," said Sandeep Gulati, managing director, ManpowerGroup India. "As always, the IT-ITeS sector is taking the lead in job market growth. Digitisation and automation are driving the need for IT specialists across the board." Infra Focus Helping A payroll increase is forecast for all 11 industry sectors in the coming quarter. Companies in the IT, technology, telecom and media sectors report the strongest hiring outlook of 68%, followed by banking, finance, insurance and real estate (60%). Hiring forecast is least optimistic in the primary production and not-for-profit sectors, with a net employment outlook of 25% and 35%, respectively. Employers in all four regions expect payroll expansion in the first quarter of 2022. The net employment outlook for the north, west and south stands at 53% while for the east, it's 41%. Talent Gap Amid the hiring optimism, employers are faced with an unprecedented demand-supply gap, as indicated by the Manpower Talent Shortage Survey. Across sectors, companies are facing a challenge finding the people they need with the right blend of technical skills and human strengths. Global talent shortages have reached a 16-year high as 75% employers report difficulty in finding the talent they need. In India, the problem is worse - 83% of employers surveyed are finding it difficult to fill open positions. The top five soft skills that organisations have difficulty finding include creativity and originality; critical thinking and analysis; reasoning and problem solving; leadership and social influence; and taking initiative.
Non-life insurers violate law offering premium discount on vehicle third party liability insurance Are vehicle owners are being raped by the non-life insurers by charging more than a just price? It seems so, if one goes by a question that was raised in the by the Congress party member from Kerala, Hibi Eden. And there cannot be a smoke without a fire goes the adage. Eden had asked Finance Minister Nirmala Sitharaman whether the government is aware of the 'cut and pay' system practiced by some private non-life insurers in the case of vehicle third party insurance? The cut and pay system is one where the insurers collect a lower sum than what is stipulated but print the actual premium figure on the policy. In a written reply, Minister of State for Finance Bhagwat Karad told the Lok Sabha: " (Insurance Regulatory and Development Authority of India) has informed that they have not received any complaint raising the issue of difficulties faced by individual agents of public general insurance due to cut and pay system of some private insurers who offer third party premiums below the tariff but printing the tariff rates in policy." Industry officials had told IANS that some non-life insurers are adopting this system to gain business. Incidentally rebating premium by anyone is an offence under the Insurance Act. "General insurers are given a target of selling a certain number of vehicle third party insurance policies. This target they do not want. In order to fulfill the target, the companies come out with a campaign to sell third party liability policies where such premium discounting happens," a senior industry official told IANS not wanting to be quoted. The IRDAI has stipulated the target of third party sales to general insurers as they avoid selling the same burden falls on the public sector general insurers. From June 1, the motor third party liability insurance premium has been jacked up by the Central government despite the portfolio being hugely profitable for the insurers. Contrary to the claims made by the general insurers that they are incurring huge losses under the motor portfolio, the actual numbers as per the Insurance Information Bureau of India (IIB) and studies by industry lobby body General Insurance Council show the contrary. As per the Indian Non-Life Industry Year Book 2020-21 published by the General Insurance Council, the total premium earned under the motor insurance was Rs 67,389 crore by the industry. The industry invests the sum and earns income on this as well. The total claims paid during 2020-21 was Rs 28,726 crore towards vehicle damage Rs 17,834 crore, towards third party liability Rs 10,892 crore, netting the industry a whopping surplus of Rs 30,854 crore. The total number of third party claims settled during the year was 257,165. The average settlement per claim was Rs 423,541. During 2019-20, as per the data published by the General Insurance Council, the total motor insurance premium earned by the industry was Rs
257,165. The average settlement per claim was Rs 423,541. During 2019-20, as per the data published by the General Insurance Council, the total motor insurance premium earned by the industry was Rs 68,951 crore -- vehicle damage Rs 26,524 crore, third party liability Rs 42,427 crore. The total claims paid for 2019-20 was Rs 38,071 crore -- towards damage to vehicles at Rs 20,552 crore and third party liability at Rs 17,519 crore. The gross surplus was a whopping Rs 30,880 crore. The total number of third party claims settled during 2019-20 was 403,283 with an average pay out of Rs 434,409. In its annual report on motor insurance for the 2018-19 fiscal, the IIB said a sum of Rs 35,519 crore of motor claims -- towards vehicle damage Rs 18,262 crore and third party liability Rs 14,257 crore -- were settled during 2018-19, while the gross underwritten premium was Rs 64,522.35 crore. According to the report, the average settlement amount for death claims during 2018-19 fiscal was Rs 901,207 while for injury claims it was Rs 251,094. The blended average works to Rs 576,150 per claim. From the numbers above, one can note the decreasing average per claim amount from 2018-19 to 2020-21. The industry players also claim that a large number of vehicles run on the roads without third party insurance. However, they do not have any answer when asked how that impacts them as they pay claims only on those policies issued by them and it is for the police to penalise the violators.
High taxation limiting growth of super luxury car market in India: Lamborghini Chairman New Delhi: High taxation is limiting the of the in India, which otherwise is on a growth path, according to Chairman and CEO Stephan Winkelmann. Lamborghini, which sells a range of super luxury cars with prices starting from Rs 3.16 crore in India, had recorded its best-ever sales in the country in 2021 at 69 units, beating its previous record in 2019 when it sold a total of 52 units. "India is a market for us which is on a growth path like most of the markets we have around the world," Winkelmann said in a virtual interaction. When asked what is limiting the growth of super luxury car sales in the country, he said, "If we come to the specific of the , it's clear that the Indian market has, like other high taxation markets, a limit in growth. This is something we have to understand, if we look at what is happening in India." However, Winkelmann said, "We're very satisfied with (our) performance as we always said we are not running for a certain number. We want to keep momentum also in the future." At present, automobiles are taxed at 28 per cent GST with additional cess ranging from 1 per cent to 22 per cent depending on the type of vehicle. Cars imported as (CBUs) 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 more than USD 40,000. On the impact of the global economic slowdown, he said while India is a huge market "in the sense of population", Lamborghini is selling less than 100 cars a year. "So it's not really a big change even if the is slowing down in India, we will see what is going to happen but for the time being we are not seeing any negative impact in respect of our brand," Winkelmann added. Globally, in the January-September 2022 period, Lamborghini recorded an 8 per cent rise in its deliveries at 7,430 units on a year-on-year basis. "We have an order portfolio that already covers the first quarter of 2024, and this allows us to work with peace of mind, looking thoughtfully ahead to the challenges facing us in the future, such as the first step towards hybridisation from 2023," he said. Read More:
Quiklyz to expand presence in the electric mobility leasing space , the new-age vehicle subscription business of Mahindra & Mahindra Financial Services today announced its expansion plans in the electric mobility leasing space. The company will now offer customized leasing and subscription solutions for electric 3W and 4W to its partners. Quiklyz has financed over 1000 electric vehicles over the last 12 months including passenger vehicles and three-wheelers. With the new thrust, the company is aiming to broaden its EV portfolio in India to boost its offerings in the logistics and the last mile mobility space. Quiklyz has partnered with more than 15 electric last mile mobility delivery companies which include MoEVing Urban Technologies, Terrago Logistics, among others. The company has also tied up with several electric mobility providers which include Lithium Urban, and Ambassador Tours & Travels. Raul Rebello, COO, said, “The growing demand and increasing focus on green mobility has opened a new vista for EVs in India. Consumers, businesses, and corporates now prefer cleaner modes of transport. With these partnerships, we will venture into emerging EV financing in India, to tap the increasing opportunities in the e-mobility space, aligning with India’s commitment to become carbon-neutral by 2070”. Quiklyz has leased electric vehicles across tier 1 cities like Bengaluru, Chennai, Delhi, Gurugram, Hyderabad, Mumbai, and Noida, and tier 2 cities like Pune, Indore and Nagpur. It currently has one of the largest portfolios of electric vehicles and has provided Electric 4W across OEMs including Mahindra & Mahindra, , Hyundai, Mercedes-Benz as well as electric 3W load vehicles from , Piaggio, Omega Seiki etc. for e-commerce fleet operators. Mohammad Turra, Senior VP & Head, Quiklyz mentioned, “EV financing ecosystem is currently at a very nascent stage in India. It demands a specific financing approach, a developed understanding of the EV domain, an understanding of the customer’s unique business model and curation of customized solutions. So far, we have funded over 1000 EVs and our deep understanding of the ecosystem will enable us to further strengthen our future commitment to the Indian e-mobility space”. Quiklyz caters to broad product offerings across various customer segments for passenger and commercial vehicles from leading OEMs in India. Leasing and subscription offer hoard of incentives to customers including insurance, maintenance and road-side assistance and flexibility to upgrade. Quiklyz also provides dedicated relationship and account managers that ensures customer management, timely interaction, and issue resolution. Also Read:
Chinese carmakers target more European sales with five-star EVs SOLIHULL, England - Chinese electric vehicle (EV) makers have set their sights on winning over European drivers and large corporate customers with more affordable cars that come with top safety ratings and lots of high-tech features. In the last few months, several Chinese EVs have received five-star European New Car Assessment Programme (NCAP) ratings - an achievement that requires loading vehicles with active and passive safety features that go well beyond legal requirements. More are coming. "All want to achieve Euro NCAP five-star ratings in order to be more competitive in the European market," said Brian Gu, president of Chinese EV maker Xpeng. Gu said Xpeng has spent the last three years building stores and service centres in Denmark, the Netherlands, Norway and Sweden - with some initial sales in Norway - before an official launch next year of its electric P7 sedan and G9 sports-utility vehicle (SUV) in the four countries. Chinese EV makers have recognised that safety plays an incredibly important part of the sales process, said Matthew Avery, director at Thatcham Research, a British car research centre funded by insurers and a Euro NCAP board member. Five-star Euro NCAP ratings are seen as key to overcoming residual European concerns over the quality of Chinese-made cars, after awful crash test failures in 2006 and 2007 created an impression that cars from China were unsafe. Perhaps more importantly for sales, high safety ratings also open up the potentially huge corporate car fleet market for Chinese EV makers. Fleet sales make up about half of all car sales in major markets including Germany, France and the United Kingdom, and many corporate buyers put a premium on safety. "Fleet sales are very important and a lot of fleets have a mandatory five-star rating for buying cars," Avery said. CAR RENTAL COMPANIES What's more, many fleets want to switch to EVs fast to meet sustainability goals. But corporate fleets have struggled to get enough EVs in Europe as supply chain issues have pushed waiting times for some models to more than 12 months. High demand for electric cars amid supply chain shortages has allowed European carmakers to raise EV prices and focus more on retail clients, rather than customers such as car rental firms that have traditionally been less profitable for them. That has created a window of opportunity for Chinese EV makers that have already stolen a march on most foreign rivals in China, by far the world's biggest market for EVs. In October, for instance, German car rental company Sixt said it would buy about 100,000 EVs from BYD, starting with its Atto 3 SUV which received the coveted Euro NCAP five-star rating the same month. China's Great Wall Motors (GWM) received five-star ratings in September for its WEY brand Coffee 01 hybrid SUV and its ORA brand Funky Cat electric sedan. European carmakers are also pursuing five-star ratings for their EVs and
received five-star ratings in September for its WEY brand Coffee 01 hybrid SUV and its ORA brand Funky Cat electric sedan. European carmakers are also pursuing five-star ratings for their EVs and hybrids, from BMW's iX to Volkswagen's ID.4 and ID.5. In October, Mercedes got the top rating for its EQE sedan and its driver-assistance features received the highest marks to date from Euro NCAP. Chinese EV maker Aiways has yet to put its U6 electric crossover through its NCAP paces but it too is shooting for the highest rating on offer, said Alexander Klose, who heads the carmaker's operations outside China. He said Aiways has invested in extra safety features for the U6 to open up opportunities for sales to European fleets, including rental car firms, when it goes on sale next year. "There will be a natural demand for vehicles like ours that are fully equipped and come at very competitive prices," he said, adding that Aiways hopes to sell 30,000 EVs in Europe in 2023, up from about 5,000 this year. BASIC REQUIREMENT French auto consultancy Inovev said about 155,000 Chinese-made cars were sold in Europe in the first nine months of 2022, or 1.4% of the market. Chinese firms are on track to hit 150,000 cars this year, nearly double the 80,000 sold in 2021. But almost half the Chinese cars sold were EVs, according to Inovev, giving them a 5.8% share of Europe's fully-electric vehicle market. Inovev vice-president Jamel Taganza said all Chinese cars sold in Europe would be EVs within a few years, with more lower-cost models on the way. By 2030, Inovev estimates EVs will make up 40% of Europe's new car sales and that Chinese brands will represent between 12.5% to 20% of that fully-electric market, with sales of between 725,000 and 1.16 million vehicles. "This is a conservative forecast," Taganza said. "But it could increase more rapidly, especially if European carmakers do not answer the needs in Europe of affordable EVs." Getting a five-star rating is expensive for automakers because it means investing in additional safety features from extra airbags to collision avoidance, driver-assistance and driver-monitoring systems. Thatcham's Avery said Chinese EV makers have actively engaged with Euro NCAP and were eagerly making the investments necessary to land top ratings. "Forget what you might think that Chinese means lower quality or lower safety performance," he said. "Their quality is now better than others." BYD is launching three cars in a handful of European markets and will add more models and markets next year, all of which should have top safety ratings, said Michael Shu, managing director of BYD Europe. "We think a five-star rating should be a very basic requirement," he said. 'LEVERAGING THAT ADVANTAGE' Great Wall Motor's ORA Funky Cat, meanwhile, will launch in Britain, Germany, Ireland and Sweden later this year. Starting around 32,000 pounds ($36,330) in Britain, or about 5,000 pounds cheaper than VW's ID.3, the Funky Cat's features include
will launch in Britain, Germany, Ireland and Sweden later this year. Starting around 32,000 pounds ($36,330) in Britain, or about 5,000 pounds cheaper than VW's ID.3, the Funky Cat's features include facial recognition to store seating preferences, driver-assistance systems, reverse camera and wireless phone charging. Toby Marshall, UK sales and marketing director for GWM's ORA brand, said if a car is well made, laden with features, has a high safety rating and is competitively priced, it no longer matters where it was built. "Those are the key ingredients that matter to car buyers," Marshall said, while showing off the Funky Cat at his office in Solihull in England's midlands. Bill Russo, head of consultancy Automobility Ltd in Shanghai, said the problem for many international carmakers with was that they ceded the advantage to Chinese rivals when it comes to building lower-cost EVs. "The one place on the planet you'll find an affordable EV today is China," said Russo. "And they're leveraging that advantage." ($1 = 0.8808 pounds)

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