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EV ownership process stumbles on poor access to finance; experts call for end-to-end collaboration New Delhi: Poor access to finance is the single largest stumbling block for the potential buyers of (EVs) in India, though all other factors for the EV ecosystem are gathering strength. The demand is growing and many OEMs are shifting their portfolios and getting into EV manufacturing. Anxieties connected with ownership and operation of an EV are getting resolved. Still customers are finding it hard to buy an EV in the country because of this one common bottleneck - access to finance. In order to make the consumer experience of owning an electric vehicle hassle-free, experts of this domain at the underlined the need for an end-to-end collaboration. “Certainly, EV industry in India is having a few teething issues but ultimately, if you're able to build effective ecosystem partnerships, with manufacturers, with fleet operators, with charging providers, with insurance companies, with IoT device companies and with the financiers, I believe we can create an ecosystem that works for everybody where the driver and the vehicle remain roadworthy most of the time,” Sameer Aggarwal, Founder and CEO of a fintech startup, , said. In a panel discussion on ‘ ’ experts acknowledged that knowing the landscape of financing will be helpful for lenders and dealers to understand consumer preferences and make informed decisions as more models continue to be introduced. “Today the private sector financiers are not only focused on products but they are keenly looking to lend for ecosystem development,” Saurav Kumar, founder and CEO, Euler Motors, said. He highlighted that the dire need of financing is felt in the entire supply chain of EVs beginning from battery manufacturing to the finished vehicle purchased by the end user and to infrastructure development With a huge number of startups breaking into India's nascent EV market, panelists think that there are plenty of opportunities for the new-age fintech companies as compared to captive finance companies. According to Aggarwal captives are lagging behind as they have not fully embraced digitalization. “EV does not work like a traditional automobile as there is a lot of data involved. We as an organization integrate specific functionalities of the value chain such as IoT to gain advantage. Captive financing companies on the other hand are still taking a traditional approach and haven't really modernized the process," he explained. While governments have played a central role in increasing EV adoption, panelists feel that bringing EVs in the Reserve Bank of India’s (RBI) priority sector lending (PSL) will streamline capital deployment in this sector. In January, Niti Aayog said that the inclusion of EVs under PSL guidelines can complement the USD 300 million facility and encourage the financial sector to mobilize necessary capital. “Everybody is testing the waters at the moment. But I do believe that at some stage the
can complement the USD 300 million facility and encourage the financial sector to mobilize necessary capital. “Everybody is testing the waters at the moment. But I do believe that at some stage the government has to provide a big push that incentivizes people to start lending in this space. Otherwise, it will become very challenging as the cost of borrowing is very high that no matter how hard the lenders try, they cannot reduce the interest rate to the end-borrower,” Sumit Chhazed, co-founder, said. The cost of borrowing in this space is high because EVs are perceived as a high-risk product and the absence of that risk assessment makes financing difficult, he added. Also Read:
India's imports from OPEC at all-time low as Russian oil buy peaks' New Delhi: Oil producers cartel 's share in 's oil imports fell to an all-time low of 46 per cent in April as purchases of cheaper peaked, industry data showed. Organization of the Petroleum Exporting Countries (OPEC) nations, mainly in the Middle East and Africa, had a 72 per cent share of all India imported in April 2022. This share slid to 46 per cent in April 2023, according to energy cargo tracker Vortexa. OPEC made up for as much as 90 per cent of all crude oil India imported at one point of time but this has been sliding since Russian oil became available at discount in the aftermath of Moscow's invasion of Ukraine in February last year. continued to be the single largest supplier of crude oil, which is converted into petrol and diesel at refineries, for a seventh straight month by supplying more than one-third of all oil India imported. The imports from Russia are now more than combined purchases from Iraq and Saudi Arabia - India's biggest suppliers in the last decade. From a market share of less than 1 per cent in India's import basket before the start of the in February 2022, Russia's share of India's imports rose to 1.67 million barrels per day in April, taking a 36 per cent share. OPEC supplied 2.1 million barrels per day out of 4.6 million bpd oil India imported in April. This gave it a 46 per cent share, according to Vortexa. Indian refiners in the past rarely bought Russian oil due to high freight costs but now they are snapping up plentiful Russian cargo available at a discount to other grades as some Western nations rejected it because of Moscow's invasion of Ukraine. The purchases from Russia in March were double of 0.81 million barrels per day (bpd) of oil bought from Iraq, which had been India's top oil supplier since 2017-18. Saudi Arabia has been pushed down to No.3 spot with 0.67 million bpd supplies. Month-on-month, purchases from Russia rose marginally from 1.64 million bpd of oil imported from the country in March. The UAE, which in March overtook the US to become the fourth largest supplier, sold 185,000 bpd, higher than 119,000 bpd oil sourced from the US. "India's imports of Russian crude in April have set a new record once again, but the month-on-month increase has slowed and could possibly be peaking this month," said Vortexa's head of Asia-Pacific analysis, Serena Huang. Increased competition for Urals from China will likely put a lid on upsides to India's imports of Russian crude. "OPEC's crude market share in India has fallen to 46 per cent last month, down from 72% a year ago, a multi-year low. OPEC may face an uphill battle in winning back the market share as refiners will ultimately be going for the crude that gives the highest margin, outside of fulfilling their term contracts," Huang said. Russia is selling record amounts of crude oil to India to plug the gap in its energy exports after the banned imports in December. In December, the EU
of fulfilling their term contracts," Huang said. Russia is selling record amounts of crude oil to India to plug the gap in its energy exports after the banned imports in December. In December, the EU banned Russian seaborne oil and imposed a USD 60-per-barrel price cap, which prevents other countries from using EU shipping and insurance services, unless oil is sold below the cap. Industry officials said Indian refiners are using the UAE's dirham to pay for oil that is imported at a price lower than USD 60. According to Vortexa, India imported just 68,600 bpd of oil from Russia in March 2022 and this year the purchases have jumped to 1,678,000 bpd.
Insurance companies to pay Rs 3 crore in 2016 road accident case : In one of the highest payouts in an accident claims case, a Motor Accident Claims Tribunal ordered two insurance companies to pay a compensation of around Rs 3 crore to the Bhandup-based 65-year-old woman, mother of a Kotak Mahindra Bank Ltd executive who died after a car rammed into his stationary vehicle on Mumbai-Ahmedabad Highway in 2016. The victim, Bhushan Jadhav, had stayed in the car with his father while the rest of his family and friends made a quick stop to visit relatives in a village on the highway. The family was on their way to Palghar. The 38-year-old victim, working as an assistant vice president, was earning a monthly salary of around Rs 2 lakh. He was engaged to be married. Holding that this was a case of composite negligence, the tribunal directed the offending car, 's insurance company, owner and driver to bear 70% of the liability. The insurer, driver and owner of the Innova car in which the victim was travelling is to pay the remaining 30% of the compensation. The tribunal held that the Innova was negligently parked on the side of a National Highway. "..it is not open to everyone to park the vehicle by the side of National Highway on which the vehicle is being driven at high speed. Therefore, as the driver of Innova vehicle has parked his vehicle by the side of National Highway, to some extent he is also responsible for accident," the tribunal said. The tribunal, however, said that the Mahindra Pickup was mainly responsible. "In the instant case, the accident took place in daylight at about 8:30am...At the relevant time, he was at high speed. In that event, he was unable to control his vehicle and gave dash to the rear portion of Innova car which is obviously visible for him from long distance...Therefore, though some negligence has occurred on part of driver of Innova Car by parking on National Highway, the major negligence and rashness is attributed to the driver of offending vehicle i.e, Mahindra Pickup," the tribunal said. The tribunal said it had no hesitation to say that the rash and negligent act of the driver of Mahindra Pickup was responsible for the accident and untimely death of Bhushan Jadhav. Bhushan's mother Rajani Jadhav told the tribunal that her husband, too, was sitting next to her son in the car, but survived with grievous injuries. In 2017, two insurance companies agreed to pay a compensation of around Rs 3 crore to the 68-year-old father of a pilot who died in a car crash on the Western Express Highway in 2015.
Hyundai reserves 35% shares of IPO for retail investors , in its latest Initial Public Offering (IPO), is set to dilute approximately 17.5% of its stake, the company informed the SEBI in a filing on Tuesday. The IPO includes an Offer for Sale of up to 142,194,700 equity shares, each with a face value of INR 10. The company has allocated shares to various types of investors. According to the filing, the retail investors are set to receive 35 percent of the total shares, amounting to not less than 49,768,145 equity shares with a face value of INR 10 each. This category includes individual investors who invest up to INR 2 lakh. The Qualified Institutional Buyers (QIBs) are slated to receive up to 50% of the equity shares, totalling not more than 71,097,350 shares, each with a face value of INR 10. It includes banks, insurance companies, and mutual funds. These institutional investors possess the expertise and financial capacity to carefully assess and invest in capital markets. The Non-Institutional Bidders (NIBs) will be allocated 15% of the shares. This category includes High Net-worth Individuals (HNIs), Non-Resident Indians (NRIs), trusts, companies, and societies. NIBs, by their nature, have significant financial resources to invest in such offerings. India has also clarified that it does not currently have any employee stock option schemes in place as of the date of this draft IPO offer. On the financial performance of the company, Hyundai India reported that the weighted average return on net worth for the three financial years 2021, 2022, and 2023 stands at 19.53%. Specifically, the return on net worth for the year 2023 was recorded at 23.48%. The performance highlights about the company's financial health. By diluting 17.5% of its equity, Hyundai is opening up ownership to a broader investor base, which includes retail investors, QIBs, and NIBs. It will help the company to enhance its capital structure and provide the necessary funds for future expansion and growth initiatives.
Audio Interview: The Future of Global Work: Virtual, Hybrid or In-Office Options to Consider GlobalAutoIndustry.com’s latest Audio Interview "The Future of : Virtual, Hybrid or In-Office Options to Consider" features Allen C. Koski is President of Insured Nomads, the first insurtech in global benefits. Previously Allen was a Senior Vice President at United Healthcare Global and prior to that instrumental in the growth and development of Cigna Global in roles that ranged across sales and . In the 15-minute Audio Interview, Koski discusses these questions: -What do each of the three work options (virtual, hybrid, in-office) ? -Are companies actually going to work from anywhere? If yes, do they have any restrictions in place? -As it is hard to find workers, how do work options affect hiring? Any generational issues? -What is supporting this work from anywhere office? Are their privacy issues? -How does this affect the global supply chain and the ? Pros and Cons?
Texas sues GM for allegedly violating drivers' privacy has been sued by the state of Texas, which accused the automaker of installing technology on more than 14 million vehicles to collect data about drivers, which it then sold to insurers and other companies without drivers' consent. Texas Attorney General said Tuesday's lawsuit arose from a probe announced in June into whether several automakers collected and sold mass amounts of data without drivers' knowledge. Paxton said 's data were used to compile "Driving Scores" assessing whether more than 1.8 million Texas drivers had "bad" habits such as speeding, braking too fast, steering too sharply into turns, not using seatbelts and driving late at night. Insurers could then use the data when deciding whether to raise premiums, cancel policies or deny coverage, Paxton said. The technology was allegedly installed on most GM vehicles starting with the 2015 model year. Paxton said GM's practice was for dealers to subject unwitting consumers who had just completed the stressful buying and leasing process into believing that enrolling in its OnStar diagnostic products, which collected the data, was mandatory. "Companies are using invasive technology to violate the rights of our citizens in unthinkable ways," Paxton said in a statement. "Our investigation revealed that General Motors has engaged in egregious business practices that violated Texans' privacy and broke the law. We will hold them accountable." GM said in a emailed statement: "We've been in discussions with the Attorney General's office and are reviewing the complaint. We share the desire to protect consumers' privacy." Texas filed its lawsuit in a state court in Montgomery County, near Houston. It seeks the destruction of improperly collected data, compensation for drivers, civil fines and other remedies for violations of the Texas Deceptive Trade Practices Act.
FADA to study ways to improve ties with F&I co.s for better customer service New Delhi: The automobile retail is becoming a core business in India with the multiplicity of OEM brands, their variants, different fuel options, and electric vehicles. Dealers have to deal with not only the OEMs but also with the finance and insurance companies for enhanced customer satisfaction, the cornerstone of their business. The annual dealer satisfaction study by the OEMs in association with the ( ), the apex national body of automobile retail in India, has become the benchmark in understanding the dealer-OEM relationships. FADA wants to take a step further to understand the different aspects of relationships with the finance and insurance companies, the key players, after OEMS, in the dealer business. FADA aims to understand the ease of getting finance and insurance policy, the training needed for the dealership staff for loan disbursements, selling insurance products, and making the claims. FADA also wants the finance and insurance companies to design new products, services and processes to help dealers and end-consumers. .In order to meet all these objectives in a scientific manner FADA has initiated a a dealer satisfaction study (DSS) for finance and insurance in association with PremonAsia, a consumer-insight led consulting and advisory firm based in Singapore. The study will cover the relationship of the finance and insurance (F&I) companies with the dealers. The results of the exercise are expected to help the dealers and the F&I sector work on key areas of concern in order to improve services to the end customers, FADA said in a media release. FADA President, Manish Raj Singhania, said, "With the annual Dealer Satisfaction Study, becoming the benchmark in understanding the dealer-OEM relationships, FADA is happy to take a step further to launch the Dealer Satisfaction Study for Finance & Insurance Companies. The study will focus on key aspects of the relationship between Dealers and Finance & Insurance companies and therefore, provide a platform to understand the nuances of this relationship. I am sure that the study will get overwhelming support from the F&I Sector as this is the first attempt towards understanding the issues faced by auto dealerships with companies in this sector." The Study will look in to the key factors and attributes impacting the business relationship across areas of retail and wholesale finance and insurance. The DSS for F&I will try to understand the different aspects of relationships starting with the ease of finance and insurance policy, training of dealership personnel selling these products, disbursements and claims. It is expected that the results of the study will help F&i companies to design newer products, services and processes to help dealers and end-consumers, the release said. The study will cover three broad sectors – Retail, Wholesale, and Finance and Insurance. Within each of the sectors Dealer Principals will be
to help dealers and end-consumers, the release said. The study will cover three broad sectors – Retail, Wholesale, and Finance and Insurance. Within each of the sectors Dealer Principals will be requested to choose the most preferred partners and rate them on different attributes and factors related to services offered and the processes. Based on the Dealer ratings, the best F & I companies will be listed depending on the score that they get in different segments of the automotive industry-4-Wheeler Mass, 4-Wheeler Luxury, 2 Wheeler Mass, 2 Wheeler Luxury, 3 Wheelers and Commercial Vehicles (CVs), the release said. FADA Treasurer and Director DSS F&I, Amar Jatin Sheth, said, "In line with FADA's stated objective of helping Dealers with all aspects of running their dealership, the DSS for F&I is the first study to be launched covering the Insurance and Finance company relationships with the dealers. The results of the exercise are expected to help the dealers and the F&I sector work on key areas of concern in order to improve services to the end customers." The idea of starting a study of this nature was conceived last year and FADA along with its knowledge partner PremonAsia started identifying various requirements and expectations that the Dealers have with different F&I companies. The broad structure of the questionnaire was prepared and discussed with industry professionals for their inputs. With their suggestions incorporated in the questionnaire, it was then tested with key automotive dealers across segments of the industry to include any other area that may have been missed out, FADA said. The Survey is open to all Automotive Dealerships and FADA is sending invites requesting dealers to take this survey and help the study to be successful with large participation. The questionnaire has been hosted on the web and will be open till May end. The results of the study will be announced to the industry at the Annual FADA Insurance and Finance Summit on June 14 in Mumbai. Based on the results of the study, the top players under each segment of the automotive industry will be awarded, the release added.
An average Indian spent 59 minutes to commute one way to work in 2023: Report Indian employees may be working fewer days from office thanks to hybrid work arrangements, but they are spending more time commuting than in pre-pandemic days as the distance to the workplace and the traffic on road have increased, says a new report. An average Indian spent 59 minutes to travel 20 kms one way to work last year in key metro cities, compared with 51 minutes to cover 17 kms before the pandemic, said the report, '2023 On Wheels: How India Moved In Sync', by office commute platform . Indian employees spent 8% of their time (almost two hours) traveling to and fro on days when they worked from the office. They were on the road for 15% more time than in pre-Covid times. At 64 minutes and 25 kms, the average commute time and distance were the most in the National Capital Region. In Bengaluru, employees travelled an average 17 kms in 54 minutes, compared with 15 kms in 49 minutes before Covid. While the number of vehicles on Indian roads has gone up, increasing the time required to negotiate the traffic, the data also suggest that Indians are gradually moving further away from their offices, resulting in longer travelling distances. In 2023, the average travel distance between the home and the office increased 17.6% from the pre-Covid times, according to the findings of MoveInSync, which it said were based on an analysis of the travel time data of 30 million trips taken by employees of 300 companies using its platform. Meanwhile, employees are using hybrid work to their advantage, resulting in a reduction in the frequency of their travel to offices. The average Indian employee worked only 2.8 days per week from office last year. This number was the highest in the NCR, where they worked 3.4 days per week from office, and the lowest in Kolkata at 2.6 days. "We are observing a consistent trend of employees traveling for longer hours and longer distances as time progresses," said Deepesh Agarwal, cofounder and chief executive of MoveInSync. "However, the number could have been much worse if corporates in India had not adopted hybrid work models and without the development of like . While these factors have reduced congestion, an increase of 30% vehicular density has led to the increased travel time." Amid changes to the city landscape and the challenges to commuting, companies are tweaking the arrangements for work and commute for employees. At data management and storage company NetApp India, employees can opt for either the nodal service that refers to pick-up and drop between the closest point from the employee's residence and the office, or a shift-based model that accommodates various time zones, said Krishna Bettan, its director, workplace experience. Commute time from home to office is seen as a big challenge, and perhaps a key cause of resistance to 100% work from office, said Maneesh Menda, head of human resources, international hubs, at UK banking and
time from home to office is seen as a big challenge, and perhaps a key cause of resistance to 100% work from office, said Maneesh Menda, head of human resources, international hubs, at UK banking and insurance holding company NatWest Group. "Most of the Tier 1 cities in India have large-scale infrastructure upgrade projects underway, which have in turn resulted in a significant increase in commute time and cost through these phases of development and change. Those who work from home are able to focus a lot more on work-life balance given the ability to save on logistics and commute time," said Menda. Organisations are now open to allowing employees to work out of office locations close to employees' place of residence rather than their home/base office, which is possible for larger organisations that have multiple office locations, said Mansee Singhal, partner and rewards consulting leader at Mercer India. "However, this has to be considered within the realm of business needs." As per its report, Wednesdays stood out as the most preferred day to work from the office, while Mondays were the least preferred. MoveInSync is backed by investors including , and Athera.
AI to use numberplate, detect 19 different violations on road Getting away with breaking laws on the road might become more difficult now. Artificial intelligence-powered cameras capable of checking 19 violations, including helmetless riding, three riders on a two wheeler and not using the seat belt, will soon be installed in various locations in the city. The Delhi Transport Infrastructure Development Corporation has floated a tender for the supply, installation, commissioning and operation of ( ) detection system that employs to spot contraventions of the law. Currently traffic policemen book motorists mostly for speeding, zebra crossing violation and not wearing helmets. This project would, however, increase the number of violations that could be caught by the hi-tech cameras, which are capable of nailing people who drive in the wrong lane or two wheelers being ridden on footpaths, even detect duplicate licence plates. The ANPR cameras will also be able to detect end-of-life vehicles, , and stolen vehicles by matching the data of Vahan or other government agencies with the number plates, claimed a senior transport department official. “The system will help us save resources by making it possible to detect restricted vehicles trying to enter Delhi during the operation of special arrangements such as the odd-even scheme or GRAP restrictions,” the official said. Another official said the system would capture the licence plates and store the information in the system database. A transport department official explained that the ANPR cameras would check with the Parivahan database to determine whether a vehicle was overaged or its pollution certification was pending. "The cameras are powered by algorithms and so can also tell whenever a vehicle is overloaded," the official said. The pre-bid meeting will be held on January 19 and the contract winner will be given six months to install at least 100 cameras on pedestrian bridges, at traffic junctions and entry points into Delhi. “The monitoring will be done by different agencies, but all challans will be issued through government portals,” the official said. For instance, the integrated traffic management system (ITMS), for which the cameras are being acquired, will provide a video-based speed violation notice to cars whose licence plates are captured by the cameras. The system will generate a violation alert and the operator will be able to review the captured event. The challan will be issued through the Intelligent eChallan System, which has the ability to generate e-notices against all vehicles violating the rules detected through video analytics or through integration with multiple databases such as those of Vahan or GST. The ANPR cameras can similarly capture the licence plate of vehicles violating the red light or stop line at intersections. Experts are optimistic these cameras will rein in habitual rule breakers. Professor PK Sarkar, former head, transport planning, School of Planning
the red light or stop line at intersections. Experts are optimistic these cameras will rein in habitual rule breakers. Professor PK Sarkar, former head, transport planning, School of Planning Architecture, said, “Artificial Intelligence technologies will be handy for traffic management in Delhi because they have been given a proper trial at the back end and would have identified violations correctly 99% of the time.”
Indian stocks top Asian markets, strong economic growth fuels hope By Ankur Banerjee In a year when Indian equities emerged as the best performers in Asia and the country took advantage of a structural shift in supply chains from a pandemic-hit China, forecasts of robust economic growth are set to keep stocks on a firm footing. 's 50 index struck a record high in December and is up 5% this year, joining an exclusive group of markets worldwide that rose in spite of interest rate hikes and slower growth. In contrast, MSCI's broadest index of Asia-Pacific shares outside Japan shed 19%. Next year's optimism for India is driven by strong corporate earnings, a post-pandemic retail boom and an economy set to grow by 6% in the next fiscal year - which will make it the world's fastest-growing major economy in 2023. Amit Khattar, head of 's investment bank unit, said India has benefitted from predictability around large deals and confidence on the reforms agenda. "Global investors, sovereign funds and other institutions are looking to raise exposure to India in their emerging markets portfolios. Very large private players are looking to buy different businesses," Khattar said. The world-beating stocks performance has helped India to double its weight in MSCI's emerging markets index to 16% from 2019, but overseas investors have missed out in the local rally. Foreign portfolio investors sold a net $18 billion this year of Indian assets but turned buyers in November and December. While Asia M&A deals fell to 8-year lows, India stood out with total deal value jumping 33% on the year to $164 billion, mainly boosted by the $40 billion purchase by the country's largest private lender, , of its parent. India recorded its largest with the $2.7 billion issue of Life Insurance Corp of India, making it the fifth-largest valued firm though its shares have shed about 20% since it went public in May. The IPO came after the government offloaded its decades-old, debt-laden flag carrier Air India to for $2.4 billion in enterprise value. "India is going to be one of the main focuses within Asia for us in developing exposure in 2023," said Adam Watson, co-head of Asia Pacific at Partners Capital, which works with endowments, foundations and others globally, and handles $45 billion in assets. Though some analysts point to high domestic valuations, strategists polled by Reuters last month forecast India's stock market will rise another 9% by the end of 2023 despite widespread expectations of a gradual slowdown in the economy. GDP is projected to grow 6.8% to 7% in the current fiscal year. said current market valuations have priced in expectations of superior earnings growth over the next couple of years, noting that foreign flows could remain weak next year. Meanwhile, as Beijing and Washington remain mired in trade tensions and supply chains shift due to production disruptions from China's zero-COVID policy, which has only started to ease recently, India has been winning
and Washington remain mired in trade tensions and supply chains shift due to production disruptions from China's zero-COVID policy, which has only started to ease recently, India has been winning business. Apple said it will manufacture iPhone 14 in India, while a key supplier Foxconn plans to quadruple the workforce at its Indian plant, Reuters has reported. Also Read:
Tesla to keep output at upgraded Shanghai plant below maximum SHANGHAI: Tesla plans to hold production at its at about 93% of capacity through the end of year, despite a recent upgrade, two people with knowledge of the matter said, in a rare move for the U.S. maker of . Since the plant opened in its second largest market in late 2019, Tesla has sought to run the facility in China's commercial hub at full capacity, and recently upgraded its weekly output by 30%, to a maximum of 22,000 vehicles. The sources, who spoke on condition of anonymity as the matter is not public, did not give a reason for the decision not to run the plant at full tilt, though one said the figure was lower than he had expected. Tesla did not immediately respond to a request for comment on Tuesday. However, the company's move comes at a time of growing competition from of electric vehicles (EV) in a sharply weakening economy, as consumption falls amid strict COVID-19 curbs. The upgraded factory can produce 14,000 Model Ys and 8,000 Model 3s, the sources added. Tesla has sought to keep it running at full capacity, except during the upgrade and a city-wide COVID-19 lockdown for two months this year. Now Tesla plans to turn out 20,500 units a week for the rest of the year, for a total of 13,000 Model Ys and 7,500 Model 3s, the sources said. Tesla's China sales jumped nearly 60% in the first eight months of this year, figures from the showed. But that pace is much weaker than the overall market for new energy vehicles over the same period, which saw sales more than double. Since last month, the company has cut delivery waiting times in China at least four times, to a minimum of a week now, besides offering a rebate of 8,000 yuan ($1,100) to buyers of who take delivery between Sept. 16 and 30. Analysts have said the moves aim to lock in more orders. In the next few months, rising competition is expected to intensify a price war among EV makers, said Shi Ji, an analyst at China Merchants Bank International. Tesla sold 60% of its China-made cars in the domestic market during the first eight months, and exported the rest to overseas markets such as Australia, Europe, Japan and Singapore. ($1=7.1623 Chinese yuan renminbi) Read More:
Scratched EV battery? Your insurer may have to junk the whole car For many , there is no way to repair or assess even slightly damaged battery packs after accidents, forcing insurance companies to write off cars with few miles - leading to higher premiums and undercutting gains from going electric. And now those battery packs are piling up in scrapyards in some countries, a previously unreported and expensive gap in what was supposed to be a " ." "We're buying electric cars for sustainability reasons," said Matthew Avery, research director at automotive risk intelligence company Thatcham Research. "But an EV isn't very sustainable if you've got to throw the battery away after a minor collision." Battery packs can cost tens of thousands of dollars and represent up to 50% of an EV's price tag, often making it uneconomical to replace them. While some automakers like Ford Motor Co and General Motors Co said they have made battery packs easier to repair, Inc has taken the opposite tack with its Texas-built Model Y, whose new structural battery pack has been described by experts as having "zero repairability." Tesla did not respond to a request for comment. A Reuters search of in the U.S. and Europe shows a large portion of low-mileage Teslas, but also models from Nissan Motor Co, Hyundai Motor Co, Stellantis, BMW, Renault and others. EVs constitute only a fraction of vehicles on the road, making industry-wide data hard to come by, but the trend of low-mileage zero-emission cars being written off with minor damage is growing. Tesla's decision to make battery packs "structural" - part of the car's body - has allowed it to cut production costs but risks pushing those costs back to consumers and insurers. Tesla has not referred to any problems with insurers writing off its vehicles. But in January CEO Elon Musk said premiums from third-party insurance companies "in some cases were unreasonably high." Unless Tesla and other carmakers produce more easily repairable battery packs and provide third-party access to , already-high insurance premiums will keep rising as grow and more low-mileage cars get scrapped after collisions, insurers and industry experts said. "The number of cases is going to increase, so the handling of batteries is a crucial point," said Christoph Lauterwasser, managing director of the Allianz Center for Technology, a research institute owned by Allianz. Lauterwasser noted production emits far more CO2 than fossil-fuel models, meaning EVs must be driven for thousands of miles before they offset those extra emissions. "If you throw away the vehicle at an early stage, you've lost pretty much all advantage in terms of CO2 emissions," he said. Most carmakers said their battery packs are repairable, though few seem willing to share access to battery data. Insurers, leasing companies and car repair shops are already fighting with carmakers in the EU over access to lucrative connected-car data. Lauterwasser said access to EV battery data is
data. Insurers, leasing companies and car repair shops are already fighting with carmakers in the EU over access to lucrative connected-car data. Lauterwasser said access to EV battery data is part of that fight. Allianz has seen scratched battery packs where the cells inside are likely undamaged, but without diagnostic data it has to write off those vehicles. Ford and GM tout their newer, more repairable packs. But the new, large 4680 cells in the Model Y made at Tesla's Austin, Texas, plant, are glued into a pack that forms part of the car's structure and cannot be easily removed or replaced, experts said. In January, Tesla's Musk said the carmaker has been making design and software changes to its vehicles to lower repair costs and insurance premiums. The company also offers its own insurance product in a dozen U.S. states to Tesla owners at lower rates. Insurers and industry experts also note that EVs, because they are loaded with all the latest safety features, so far have had fewer accidents than traditional cars. 'STRAIGHT TO THE GRINDER' Sandy Munro, head of Michigan-based Munro & Associates, which tears down vehicles and advises automakers on how to improve them, said the Model Y battery pack has "zero repairability." "A Tesla structural battery pack is going straight to the grinder," Munro said. EV battery problems also expose a hole in the green "circular economy" touted by carmakers. At Synetiq, the UK's largest salvage company, head of operations Michael Hill said over the last 12 months the number of EVs in the isolation bay - where they must be checked to avoid fire risk - at the firm's Doncaster yard has soared, from perhaps a dozen every three days to up to 20 per day. "We've seen a really big shift and it's across all manufacturers," Hill said. The UK currently has no EV battery recycling facilities, so Synetiq has to remove the batteries from written-off cars and store them in containers. Hill estimated at least 95% of the cells in the hundreds of EV battery packs - and thousands of hybrid battery packs - Synetiq has stored at Doncaster are undamaged and should be reused. It already costs more to insure most EVs than traditional cars. According to online brokerage Policygenius, the average U.S. monthly payment in 2023 is $206, 27% more than for a combustion-engine model. According to Bankrate, an online publisher of financial content, U.S. insurers know that "if even a minor accident results in damage to the battery pack ... the cost to replace this key component may exceed $15,000." A replacement battery for a Tesla Model 3 can cost up to $20,000, for a vehicle that retails at around $43,000 but depreciates quickly over time. Andy Keane, UK commercial motor product manager at French insurer AXA, said expensive replacement batteries "may sometimes make replacing a battery unfeasible." There are a growing number of repair shops specializing in repairing EVs and replacing batteries. In Phoenix, Arizona, Gruber Motor Co has
"may sometimes make replacing a battery unfeasible." There are a growing number of repair shops specializing in repairing EVs and replacing batteries. In Phoenix, Arizona, Gruber Motor Co has mostly focused on replacing batteries in older Tesla models. But insurers cannot access Tesla's battery data, so they have taken a cautious approach, owner Peter Gruber said. "An insurance company is not going to take that risk because they're facing a lawsuit later on if something happens with that vehicle and they did not total it," he said. 'PAIN POINTS' The British government is funding research into EV insurance "pain points" led by Thatcham, Synetiq and insurer LV. Recently adopted EU battery regulations do not specifically address battery repairs, but they did ask the European Commission to encourage standards to "facilitate maintenance, repair and repurposing," a commission source said. Insurers said they know how to fix the problem - make batteries in smaller sections, or modules, that are simpler to fix, and open diagnostics data to third parties to determine battery cell health. Individual U.S. insurers declined to comment. But Tony Cotto, director of auto and underwriting policy at the National Association of Mutual Insurance Companies, said "consumer access to vehicle-generated data will further enhance driver safety and policyholders' satisfaction ... by facilitating the entire repair process." Lack of access to critical diagnostic data was raised in mid-March in a class action filed against Tesla in U.S. District Court in California. Insurers said failure to act will cost consumers. EV battery damage makes up just a few percent of Allianz's motor insurance claims, but 8% of claims costs in Germany, Lauterwasser said. Germany's insurers pool data on vehicle claims data and adjust premium rates annually. "If the cost for a certain model gets higher it will raise premium levels because the rating goes up," Lauterwasser said.
Cars, aircraft and trains: Sanctions-hit Russia asks India to send parts for 500 products NEW DELHI: Moscow has sent India a list of more than 500 products for potential delivery including parts for cars, aircraft and trains, four sources familiar with the matter said, as sanctions squeeze Russia's ability to keep vital industries running. The list, a version of which has been seen by Reuters in New Delhi, is provisional and it is unclear how many of the items will eventually be exported and in what quantity, but an Indian government source said the request was unusual in its scope. India is keen to boost trade in this way, said the source, as it tries to narrow a ballooning trade deficit with Russia. Some companies have expressed concern, however, about potentially falling foul of Western sanctions. An industry source in Moscow, who declined to be named because of the sensitivity of the issue, said Russia's Ministry of Industry and Trade asked large companies to supply lists of raw materials and equipment they needed. The source added that further discussion would be needed to agree specifications and volumes and that the outreach was not limited to India. Russia's Ministry of Industry and Trade and the Indian foreign and commerce ministries and the prime minister's office did not immediately respond to requests for comment. Russia's requests were made weeks ahead of Indian Foreign Minister Subrahmanyam Jaishankar's visit to Moscow starting Nov. 7, two of the Indian sources said. It was not immediately clear what was conveyed by New Delhi to Russia during the visit. Prime Minister Narendra Modi's government has not joined Western countries in openly criticising Moscow for the war in Ukraine, and has sharply increased purchases of Russian oil that have cushioned it from some of the impact of sanctions. During the Moscow visit, Jaishankar said India needed to boost exports to Russia to balance bilateral trade that is now tilted towards Russia. He was accompanied on the visit by senior officials in charge of agriculture, petroleum and natural gas, ports and shipping, finance, chemicals and fertiliser, and trade - which he said showed the importance of ties with Russia. RUSSIA'S STRUGGLES Western sanctions have crippled supplies of some crucial products in Russia. Airlines are experiencing an acute shortage of parts because almost all planes are foreign-made. Car parts are also in demand, with global automakers having left the market. A source in Russia's car sales industry said the trade ministry had sent a list of car parts needed to corresponding ministries and state agencies in other countries, including India. The list of items from Russia, which runs to nearly 14 pages, includes car engine parts like , oil pumps and ignition coils. There is also demand for bumpers, seatbelts and infotainment systems. For aircraft and helicopters, Russia requested 41 items including landing gear components, fuel systems, communication systems and fire
is also demand for bumpers, seatbelts and infotainment systems. For aircraft and helicopters, Russia requested 41 items including landing gear components, fuel systems, communication systems and fire extinguishing systems, life jackets and aviation tyres. Also on the list were raw materials to produce paper, paper bags and consumer packaging and materials and equipment to produce textiles including yarns and dyes, according to the document reviewed by Reuters. Russian metals producers like nickel and palladium giant Nornickel have said Western sanctions and self-sanctioning by some suppliers have made it difficult for industrial companies to obtain imported equipment, spare parts, materials and technologies in 2022, posing a challenge to their development programmes. The list includes nearly 200 metallurgy items. Russia has been India's largest supplier of military equipment for decades and it is the fourth-biggest market for Indian pharmaceutical products. But with purchases of Russian oil soaring and coal and fertiliser shipments also strong, India is looking for ways to rebalance trade, the first Indian government source said. India's growing trade with Russia Indian imports from Russia have grown nearly five times to $29 billion between Feb. 24 and Nov. 20 compared with $6 billion in the same period a year ago. Exports, meanwhile, have fallen to $1.9 billion from $2.4 billion, the source said. India is hoping to boost its exports to nearly $10 billion over coming months with Russia's list of requests, according to the government source. But some Indian companies are reluctant to export to Russia over fears of being sanctioned by the West, the lack of clarity over payments and challenges to securing insurance. "There is a hesitancy among exporters ... particularly on sanctioned items," said Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO), a body supported by India's commerce ministry. Sahai, who is aware of Russia's request, said even small- and medium-sized exporters who could meet some of the requests and had previously exported to Iran after Western sanctions, were not enthusiastic. Large Indian lenders are also reluctant to process direct rupee trade transactions with Russia, months after the mechanism was put in place, for fear of being sanctioned.
No special policy for Tesla; can seek incentives under existing schemes: Govt official The government so far is not looking to frame a separate policy for providing incentives to US-based electric car maker , and the company can apply to avail support measures under existing schemes like for auto and advanced chemistry cells, a government official has said. The government has already rolled out the production-linked incentives schemes (PLI) for advanced chemistry cell (ACC) battery storage with an outlay of INR 18,100 crore and INR 26,058 crore PLI scheme for auto, auto-components and drone industries. "We have told Tesla that the policies, which are already there for all, they can also apply under that PLI. They are welcome. Generally, the policy will be the same for all. For a single company, the government may not like to make separate policies. So far, there is no plan to give special treatment," the official said. Representatives of Tesla's biggest supplier of batteries Panasonic have met "us and they have stated that they want to make batteries. We have suggested them to apply under PLI ACC batteries", the official added. The government last week announced the re-bidding of production-linked incentives for 20 GWh advanced chemistry cell manufacturing. The Ministry of Heavy Industries is holding a stakeholder consultation with industry representatives on July 24 for their inputs and suggestions before the start of the re-bidding process of the remaining 20 GWh capacity. The representatives of Tesla visited the country last month to meet officials of various ministries, including the Commerce and Industry Ministry. In 2021, the US-based electric car maker demanded a reduction in import duties on (EVs) in India. At present, cars imported as completely built units (CBUs) attract customs duty ranging from 60% to 100%, depending on engine size and cost, insurance and freight (CIF) value less or above USD 40,000. The world's largest electric car producer Tesla Inc's chief met Prime Minister Narendra Modi last month in New York. , after meeting the Prime Minister, said he plans to visit India in 2024. "I am confident that Tesla will be in India, and we will do so as soon as humanly possible," Musk had said after that meeting. "We don't want to jump the gun on an announcement, but I think it's quite likely that it will be a significant investment, a relationship with India," Musk had said. India, the world's third-largest energy consumer, is pitching as an alternate destination for investment for US companies to capitalise on the growing chill between Beijing and Washington.
Burnt-out cargo ship with luxury cars sinks off Portugal's Azores LISBON -A burnt-out cargo ship carrying thousands of , including Porsches and Bentleys, sank on Tuesday off the archipelago nearly two weeks after it caught fire, a port official said. Joao Mendes Cabecas, the captain of the nearest port on the island of Faial, told Reuters the Panama-flagged Felicity Ace had sunk as efforts to tow it began due to structural problems caused by the fire and rough seas. "When the towing started... water started to come in," he said. "The ship lost its stability and sank." The blaze on the ship carrying around 4,000 vehicles made by Volkswagen Group from Germany to the United States, broke out on Feb. 16. The 22 crew members were evacuated on the same day. Cabecas said no oil leak had been reported so far but there were fears the fuel tanks could be damaged as the vessel lay at the bottom of the Atlantic at a depth of around 3,500 metres (2.17 miles). Volkswagen, which said last week the damage to the vehicles was covered by insurance, confirmed the ship has sunk. Insurance experts said the incident could result in losses of $155 million.
Nasscom-Deloitte study spots future growth sectors in Digital Engineering Bengaluru: Digital platforms and tools have been reshaping connections among businesses, clients, employees, and employers in recent years. Across sectors, industry leaders observed a consistent increase in in (DE) endeavours. India has established a strong foothold in this space through its booming talent pool, growing ecosystem for collaborations, and encouragement from the government institutions. The National Association of Software and Services Companies ( ) and Deloitte today released a study titled "The Future Growth Sectors in Digital Engineering" to track India's growth in Digital Engineering, Research & Development. India has emerged as a leading destination for Digital Engineering. The share of Digital Engineering in the overall ER&D revenue in India continues to be in the range of 28%-30% in the overall engineering research and development revenue as of FY22. In the field of engineering, research, and development, digital engineering (DE) is gradually displacing as the main force (ER&D). India has established a strong presence in this market - thanks to its growing talent pool, developing environment for partnerships, and encouragement from government institutions. India’s rise as a Digital Engineering destination India is becoming very popular as a location for digital engineering mainly owing to the availability of key technologies like AI, cloud, blockchain, automation, and IoT. They have transformed the way how businesses are conducted in India and given rise to digital strategies for sustainable development and smarter ways to operate. Industries such as banking, financial services & insurance, healthcare, (CPG), and retail have witnessed a gradual increase in Digital Engineering. Disruptive technologies are currently delivering on their promise to alter these industries and establish them as pillars of the future. Furthermore, the increasing pool of graduates coupled with a maturing talent ecosystem is helping the growth of the digital talent pool in the country. India offers a large entry-level talent pool of STEM graduates, out of which, there are sizable numbers with AI4 cities and other marginal groups. Debjani Ghosh, President, NASSCOM, said , “India is advancing into the fourth industrial revolution with an optimistic Digital Transformation (DE) revenue amounting to 50-60% in overall ER&D revenues in the coming years. The transitory years that passed are responsible for the noticeable rise in the development of the digital infrastructure of the second-most populous nation and largest democracy. India is well-positioned to adopt emerging technologies - thanks to its third-largest startup environment, one of the world's youngest populations, a big pool of science and engineering talent, and attempts to digitally empower society and enterprises." About the digital engineering ecosystem in India, Keerthi Kumar, Partner, Deloitte India, said , “India is
science and engineering talent, and attempts to digitally empower society and enterprises." About the digital engineering ecosystem in India, Keerthi Kumar, Partner, Deloitte India, said , “India is well positioned to take the pole position in the Digital Engineering domain. Being home to the biggest market for digital consumers with over 500 million internet users and with innate technology capabilities, India’s contribution in the DE growth story will be significant. DE will play a crucial role in government and industry alike, whether it is for planning or decision-making, discovering latest trends or new product creation. However, to realize this potential, a balance between growing technical capabilities and the need for domain and business depth, enhancing India’s data protection infrastructure and patent regulations can further alleviate India’s position as a DE offshoringreskilling programmes that focus on the DE application in specific industry domains will help create the right balance between growing technical capabilities and industry-specific soft skills. There is also an increasing need to enhance India’s data protection infrastructure to provide increased confidence to Global Capability Centers and Engineering Service Providers to serve global businesses. In addition to the formation of a global standpoint, concerns around patentability criteria and patent maintenance need to be addressed. Lastly, addressing regulatory gaps such as simplifying the requirements for setting up a foreign company centre in India, and refining certain ease of doing business limits and parameters will further help boost India’s position as a DE offshoring/outsourcing location. Read More:
Road accident victims to get free cashless treatment: Nitin Gadkari Union Minister for Road Transport and Highways, , said that the govt has implemented a scheme to provide to victims of road accidents. The minister informed the Parliament on Thursday that the has developed a scheme and begun implementing it on a pilot basis in Chandigarh and Assam. This initiative aims to provide cashless treatment to victims of road accidents. The minister explained that the scheme covers treatment for individuals involved in road accidents caused by motor vehicles, regardless of the type of road. The ministry is implementing this program in collaboration with the National Health Authority (NHA). "Under this scheme, the eligible victims are administered Health Benefits Packages relating to trauma and polytrauma care at empanelled hospitals under Ayushman Bharat Pradhan Mantri-Jan Arogya Yojana (AB PM-JAY), up to a maximum of Rs. 1.5 lakh for a maximum period of 7 days from the date of the accident," said the minister in a written reply in the Lok Sabha. The scheme is being administered under the aegis of the Motor Vehicle Accident Fund, established under section 164B of the Motor Vehicles Act, 1988. The sources of income and the utilization of funds are detailed in the Central Motor Vehicles (Motor Vehicle Accident Fund) Rules, 2022. The NHA, under the Ministry of Health & Family Welfare, is responsible for the program's implementation in coordination with local police, empanelled hospitals, State Health Agencies, the National Informatics Centre, and the General Insurance Council. Minister Gadkari stated that, in accordance with the Motor Vehicles Act, of 1988, the pilot program for cashless treatment extends support to victims of road accidents caused by motor vehicles, regardless of where the accident occurs. The scheme will help in reducing deaths in road accidents and will help in providing better treatment to .
Tesla set to report record quarterly vehicle deliveries, fueled by incentives is set to report record vehicle deliveries, after the top electric vehicle maker increased discounts and other incentives to boost sales in the face of economic uncertainty and rising competition. Tesla is expected as early as this weekend to report global deliveries of 445,000 vehicles in April to June, according to the average estimates of nine analysts by . That would be an increase of 5% from 422,875 the preceding quarter. Tesla CEO 's plan to sharply increase sales this year faces challenges from aging and limited product line-ups as competition intensifies especially in China, and demand softens. Tesla has cut prices aggressively since January, eroding its first-quarter margins. It has avoided major price cuts in the past couple of months but has increased discounts, another form of sales incentive. It raised discounts in the second quarter for vehicles in its inventory to a USD 1,600-to-USD 7,500 range, and made all of its Model 3s eligible for full federal credits of USD 7,500 starting in June in the United States. Tesla this week sent out an email, "The Most American-Made Cars Are S3XY," offering three months of Supercharging to those who take delivery of a Model 3 by June 30, 2023. In China, its second-biggest market after the United States, Tesla offered an insurance subsidy of 8,000 yuan (USD 1,104) to customers who ordered and completed the delivery of an already-built Model 3 in the inventory from June 16 to June 30. Tesla is set to increase China sales by 13% from the previous quarter to a record number of vehicles, according to an analyst. "I think China was a little bit better than expected and so there might be room for a little bit of a positive surprise there," said , senior portfolio manager at Globalt Investments, which holds Tesla stock. Tesla also offers discounts in Europe and Tesla appears to have tapped the brakes on a production increase at its Berlin factory, hiring fewer temporary workers and refraining from Saturday shifts. MARGINS Lower prices could weigh on its margins, which has prompted some brokerages to downgrade Tesla stock and overshadows a recent stock market rally driven by a flurry of deals by automakers to use Tesla's charging stations. Tesla's share price has more than doubled this year, helped by rivals backing Tesla's charging standard, as well as expanded federal credits for Model 3s and investor excitement over artificial intelligence. Some analysts were cautious about Tesla's deals to open its charging network to rivals. "The biggest risks of opening the charging network in our opinion are potentially losing Tesla car buyers to other OEMs, and decreasing current Tesla owner satisfaction," said in a recent report.
India notifies overseas investment rules and regulations to boost ease of doing business 's finance ministry today notified rules and regulations for overseas investment by Indian entities in a bid to enhance the ease of doing business, according to a finance ministry statement. by a person resident in India is governed by the (Transfer or Issue of Any Foreign Security) Regulations, 2004 and the Management (Acquisition and Transfer of Immovable Property Outside India) Regulations, 2015. Now, extant regulations pertaining to Overseas Investments and Acquisition and Transfer of Immovable Property Outside India have been subsumed within these rules and regulations. "In view of the evolving needs of businesses in India, in an increasingly integrated global market, there is need of Indian corporates to be part of global value chain. The revised regulatory framework for overseas investment provides for simplification of the existing framework for overseas investment and has been aligned with the current business and economic dynamics," the finance ministry said. New Delhi in consultation with the Reserve Bank of India had last year undertaken a comprehensive exercise to simplify the regulations and the draft rules and regulations were put in the public domain for consultations, it said. The new rules include overseas investment in ( ) by an Indian resident in manner as laid down in the gazette notification. A person resident in India can make contribution to an investment fund or vehicle set up in an IFSC as Overseas Portfolio Investment (OPI), it said. A resident individual may make in a foreign entity, including an entity engaged in financial services activity, (except in banking and insurance), in IFSC if such entity does not have subsidiary or step down subsidiary outside IFSC where the resident individual has control in the foreign entity. A recognised stock exchange in the IFSC shall be treated as a recognised stock exchange outside India for the purpose of these rules, the gazette notification said. An Indian entity may make ODI by way of investment in equity capital for the purpose of undertaking bonafide business activity in the manner and subject to the limits and conditions provided in a schedule in the gazette.
Acko to use e-history, cell brand to rate non-life plans Mumbai: Digital insurer Acko is looking at dynamic pricing of insurance plans such as motor policies by using a host of customer data, including their credit scores, online behaviour and the brand of phone they use. In , if two vehicles are identical, an insurer tends to charge uniform prices irrespective of the owner’s behaviour. Acko plans to change all that to get claims-to-premium ratios 10-15 basis points (100bps = 1 percentage point) below the industry average. Speaking to TOI, Acko chief business officer Sanjeev Srinivasan said that the company has chosen to position itself as a pure consumer business that is technology and data -led. “We believe this is what the future is all about. We are very keen on term insurance and may even look at floating a life insurance company in future,” said Srinivasan. “This is more of a plan in the long run. We want to stand for protection. We are not a licence-focused company. We are focused on the consumer who wants to cover their car, health and life. Therefore, tomorrow if we have to apply for a life insurance licence to do term insurance, we will do that,” said Srinivasan. Acko processes large quantities of consumer data to get an idea of the correlation between the customer profile and claims. It has been found that better credit scores are better risks, while iPhone users tend to pursue auto claims for even minor dents. “For us, the idea of a wonderful customer is someone who has got four to five products of Acko from the app having the same experience for everything rather than having 10 customers for one product,” said Srinivasan. He said that the goal was to provide the customer with complete protection. “We plan to put all of that in one package. We are looking at putting all of them together and offering it to them for Rs 2,000 a month and cover everything, including all policies,” said Srinivasan. While collecting auto insurance premiums on EMI is not allowed now, Srinivasan is optimistic, given the positive approach of the regulator to innovation. The company is also entering individual health insurance in a calibrated manner. Last year, Acko did about Rs 1,000 crore of gross written premium, of which around 50% was auto and 25% employee benefits. The balance 25% is what Srinivasan defines as contextual products. These include bite-sized insurance covers, such as one for mobile screens, or personal accidents while using Ola, travel policies or warranty products. “We are launching retail health in a meaningful way. Our comprehensive product, where we offer a cover of Rs 1 crore, is very much live, but we are doing it in a restricted environment,” said Srinivasan. He added that the company was not giving up its consumer focus and does not cover fire, marine or crop insurance. Even in the retail segment, its focus is the upwardly mobile customers who are digitally active, believed to be around 10 crore. Founded in 2016 by Varun Dua and
cover fire, marine or crop insurance. Even in the retail segment, its focus is the upwardly mobile customers who are digitally active, believed to be around 10 crore. Founded in 2016 by Varun Dua and Ruchi Deepak, is a pure digital cover provider. In October 2021, Acko raised $255 million through its holding company in a new funding round led by General Atlantic and Multiples private equity. Canada’s pension fund CPPIB and Lightspeed Growth and existing investors Intact Ventures and Munich Re Ventures also participated in the funding round. Other earlier investors include Amazon, Accel, Elevation Capital, Ascent Capital and Flipkart’s co-founder Binny Bansal.
Oil prices spike after Russia announces 5 per cent oil output cut in March will cut oil production by 500,000 barrels per day, or around 5 per cent of output, in March, Deputy Prime Minister Alexander said on Friday, after the West slapped price caps on Russian oil and oil products. The G7, the and Australia agreed to ban the use of Western-supplied maritime insurance, finance and brokering for seaborne Russian oil priced above $60 per barrel from Dec. 5 as part of Western sanctions on Moscow over its actions in . The EU also slapped a ban on purchases of Russian oil products and set price caps from Feb. 5. "As of today, we are fully selling the entire volume of oil produced, however, as stated earlier, we will not sell oil to those who directly or indirectly adhere to the principles of the 'price cap'," Novak said in a statement. "In this regard, Russia will voluntarily reduce production by 500,000 barrels per day in March. This will contribute to the restoration of market relations". The prices of Brent international benchmark crude rose on the news of the output cuts from Russia, the world's second-largest oil exporter after , increasing by more than 2 per cent on the day to $86.36 per barrel. "Russia believes that the 'price cap' mechanism in the sale of Russian oil and oil products is an interference in market relations and a continuation of the destructive energy policy of the countries of the collective West," Novak said. Russian oil production defied numerous predictions of a decline amid Western sanctions over Ukraine and rose by 2 per cent last year to 535 million tonnes (10.7 million barrels per day) thanks to a jump in sales to Asia, especially, to and China. However, following a raft of new sanctions from the West, Russia is facing more challenges in holding up its production of oil, a key source of revenue for the state budget. Also Read:
Some cars' systems designed to keep drivers' eyes on the road fail - AAA study By Tina Bellon Some vehicles equipped with aimed at keeping drivers alert and watching the road fail at that job, an found on Tuesday. The AAA study said monitoring systems that rely only on how drivers' handle the steering wheel were not successful. Those that use cameras to monitor drivers' eye and head position were significantly more effective at keeping drivers focused while vehicle software is engaged. On average, those direct monitoring systems issued an alert to the driver around 50 seconds sooner than those relying on indirect steering wheel input, AAA said. Monitoring systems are becoming widespread as part of (ADAS), which can automate some driving tasks and control a car's braking and acceleration. Automakers are offering them on more vehicle models and the cost of the technology boosts car sales prices. Automakers tout the systems as improving safety and convenience, but insurance groups and safety researchers have repeatedly warned that drivers can mistake them for self-driving systems, leading to overreliance. The AAA study tested two camera-based monitoring systems, a 2021 Cadillac Escalade with General Motors' "Super Cruise" system and a 2021 Subaru Forester with "EyeSight" technology, and two systems that only rely on steering wheel engagement: a 2021 Hyundai Santa Fe with "Highway Driving Assist" and a 2020 Tesla Model 3 with " ." The Hyundai system performed worst, followed by the Tesla. Subaru's and GM's systems were much better at keeping drivers engaged, but none of the monitoring systems performed perfectly. "Driver monitoring systems are a good first step to preventing deadly crashes, but they are not foolproof," said Greg Brannon, director of AAA's automotive engineering. Tesla Model 3s and Ys produced in 2021 and later offer cabin cameras to determine driver inattentiveness, the carmaker says. AAA said it got a 2020 Model 3 strictly based on availability. Also Read:
Startup Gatik says it will put self-driving trucks on the road in Kansas Autonomous delivery truck on Thursday said it will be putting its box trucks on the road in Kansas after state officials gave it and its partner and customer Walmart Inc the go-ahead. Kansas Governor on Friday signed into law a bill permitting use of driverless vehicles in the state without a human safety driver behind the wheel. 's head of policy, , told Reuters in an interview the company would be "getting our trucks on the road now" in Kansas, but declined to comment on whether they would be making deliveries for Walmart or any other customer. He said Gatik and Walmart held many conversations over the last year with Kansas legislators and law enforcement officials. The union, a trial lawyers and a Kansas workers' group had opposed the bill, citing issues such as insurance and liability requirements. The Teamsters in a statement said the bill was rushed through, and that it allowed autonomous vehicles to operate "recklessly, risking the lives of our friends and neighbors, and upending the workforce as we know it." Walmart did not immediately respond to a request for comment on the Kansas law, which sets minimal operating requirements, such as insurance limits and the capability to move onto the road's shoulder in case of a vehicle malfunction. Self-driving companies also must test with a human driver for 12 months before going autonomous, the bill says. Walmart already works with Gatik in Arkansas and Louisiana, where Gatik offers short-haul deliveries in box trucks. The companies last year removed safety drivers from a delivery route in Arkansas, running fully autonomous. "It was really important for us as we look to scale nationally that the states that have been silent on autonomous vehicles are being brought into line with the more progressive states," Steiner said. A majority of U.S. states have either enacted autonomous driving bills by law or executive order, but permit varying degrees of automation under different rules.
Salvage team boards burnt ship with luxury cars off Azores, towing begins LISBON: More than a week after a ship packed with luxury cars caught fire in the middle of the Atlantic Ocean, a managed to board the vessel on Friday and started to tow it to a safe location off the Portuguese Azores archipelago. In a statement, ship manager said the Felicity Ace remained stable, and the smoke that for days billowed from the vessel, adrift around 170 km southwest of the Azores, had stopped. The 22 crew members of the Panama-flagged Felicity Ace, which was carrying around 4,000 Volkswagen vehicles including Porsches, Audis and Bentleys from Germany to the United States, were evacuated last Wednesday, the day the fire broke out. Some of the vehicles are electric and their lithium-ion batteries have made the fire very difficult to extinguish, port officials have said. "We fear that the fire on the ship has damaged a large number of the nearly 4,000 group-brand vehicles to such an extent that they can no longer be delivered to customers," Volkswagen said in a statement on Friday. Previous attempts to board the ship to assess its condition and start preparing it for towing had failed due to the fire and rough seas. On Friday, the team was able to board by helicopter and the salvage boat Bear started towing the vessel to a "safe area off Azores", the ship manager said. It was not clear where exactly the vessel was being towed to. It was being escorted by two tug boats and another salvage craft equipped with firefighting gear, MOL said. Volkswagen said the damage to the vehicles was covered by insurance, adding that brands and dealers had already started to inform affected customers and finding "individual solutions". Insurance experts said the incident could result in losses of $155 million. Also Read:
Rupyy, part of CarDekho Group, appoints Vineet Tripathi as CBO New Delhi : , a leading lending fintech platform in the financing industry, has appointed as its Chief Business Officer (CBO). In his new role, Tripathi will oversee the business growth and expansion plans at Rupyy. Tripathi is a seasoned retail finance professional with over two decades of experience with banks, insurance companies and NBFCs. Prior to joining Rupyy, he served as the Chief Business Officer at Poonawalla, and held leadership positions at Bandhan Bank, Tata Capital, Kotak Mahindra Bank, GE Money and Birla Sun Life Insurance. He has worked across geographies in India and spearheaded the launch of multiple business lines focused on secured and unsecured lending. Tripathi has a proven track record of successfully incubating and diversifying new business verticals in the financial sector. At Bandhan Bank, he established the retail assets unit, broadening the bank's product portfolio. Previously, at Tata Capital, he set up the two-wheeler lending business and forged strategic partnerships with leading auto brands. His expertise lies in conceptualizing and launching innovative retail asset products, including digital finance, two-wheeler/car loans, used car finance, and loan against property offerings across various NBFCs and banks. Namit Jain, CEO and co-founder, Rupyy by said, “We are delighted to welcome Vineet Tripathi to our leadership team. His extensive experience in diverse retail finance products, gained over two decades in esteemed institutions, positions him as a catalyst for our strategic expansion. Vineet's expertise will be pivotal as we aim to diversify our product portfolio horizontally across multiple categories, reinforcing Rupyy’s commitment to providing innovative and accessible financial solutions across India.” Tripathi said, “Rupyy’s stellar growth in such a short span is a testament to its innovative models and calibrated risks. I am excited to be joining the company at such a crucial stage in its growth journey. The vision to drive financial inclusion via technology-enabled lending initiatives is commendable." "My values of customer-centricity, innovation and excellence align perfectly with Rupyy's ethos and purpose. I look forward to collaborating with the exemplary leadership team to build on the strong foundations, drive the next phase of growth and deliver a top-notch lending experience to millions of underserved Indians," he added.
Oil climbs on supply jitters as EU plans Russian oil ban LONDON: Oil prices extended gains on Thursday on supply concerns after the laid out plans for new sanctions against Russia, including an embargo on crude in six months, offsetting concerns over weaker Chinese demand. Brent crude was up 36 cents, or 0.3 per cent, at $110.50 a barrel by 1007 GMT. US West Texas Intermediate crude rose 4 cents, or less than 0.1 per cent, to $107.85. Both benchmarks gained more than $5 a barrel on Wednesday. The sanctions proposal, which needs unanimous backing from the 27 EU countries, also includes a phasing out of imports of Russian refined products by the end of 2022 and a ban on all shipping and insurance services for the transportation of Russian oil. "The oil market has not fully priced in the potential of an EU oil embargo, so higher crude prices are to be expected in the summer months if it's voted into law," said 's head of oil markets research, . The French environment and energy minister, Barbara Pompili, said she was confident that European Union member states will reach a consensus on sanctions by the end of this week. "The planned EU oil embargo represents a massive logistical challenge for oil markets," said Investec's head of commodities, . "Re-routing Russian output from Europe to willing buyers in Asia, in the presence of sanctions, is already so challenging that even Russia has admitted its production will decline significantly." Japan said it would face difficulties in immediately cutting off Russian oil imports over the invasion of Ukraine. Meanwhile, the OPEC+ producer group comprising the and allies is likely agree to stick to modest oil output increases when it meets on Thursday, arguing that it is not responsible for geopolitics and supply disruptions. Five OPEC+ delegates told Reuters the group is set to agree another monthly increase of 432,000 barrels per day in its production target for June. Secretary General reiterated that it is not possible for other producers to replace Russian supply, but expressed concerns about slowing demand for transportation fuels and petrochemicals in the world's top importer, China, because of prolonged COVID-19 lockdowns. A private-sector survey on Thursday showed China's services sector activity contracted at the second-steepest rate on record in April owing to pandemic measures. In Iran, surging oil prices have given its energy-reliant economy a breather and hence its clerical rulers are in no rush to revive a 2015 nuclear pact with world powers to ease sanctions, said three officials familiar with Tehran's thinking. In the United States, crude stocks were up by 1.2 million barrels last week after more oil was released from strategic reserves, according to the . Also Read:
South Africa partners with Dutch, Danish govts on green hydrogen fund and the governments of the and Denmark on Tuesday launched a USD 1 billion green hydrogen fund to help kick-start an industry seen as critical to the country's decarbonisation efforts. South Africa's energy transition plan envisages setting up an ecosystem and export hub for green hydrogen, which is made using renewable energy and without producing greenhouse gas emissions. The nation wants to produce the fuel for use in aviation, , transport and more, as well as for export to the . But President has said this would require 319 billion rand (USD 17.57 billion). The new fund, dubbed SA-H2 and run by Climate Fund Managers, a joint venture between the Dutch development bank, FMO, and South African insurer Sanlam, will look to support South Africa's green hydrogen sector. "The SA-H2 Fund initiative will aim to secure USUSD 1 billion in funding, to be raised directly in South Africa or indirectly via other channels," Climate Fund Managers said in a statement. European nations are eager to help South Africa, the world's 14th biggest emitter of carbon dioxide, transition towards a greener economy to help mitigate climate change. The nation currently relies on a fleet of 15 ageing coal-fired power plants for electricity. A group of rich countries including France, Germany, Britain, the United States and the European Union pledged USD 8.5 billion to South Africa in 2021 for its green transition, including a green hydrogen industry. A similar fund targeting green hydrogen was also set up for Namibia last year. Critics say a key challenge to setting up a green hydrogen industry in South Africa is its slow renewable energy roll-out, an imperative for green hydrogen production. According to Boston Consultancy Group, South Africa would need to set up 6-7 gigawatts (GW) of renewable capacity per year for the next two decades to support a green hydrogen industry, compared with the 6 GW it has managed in total since 2011.
Awareness boosts helmet use among kids from 28% to 95%, says survey : Even as the have begun a strict crackdown on motorists riding without helmets, a nationwide survey by an insurance firm hsas shown that educating children on safe riding results in a spike in helmet usage not only among them, but among their parents as well. The survey, conducted across seven cities, including Mumbai, in 2020-21, showed that earlier only 28% of the respondents used to strap helmets on their children while riding, but post intervention, the number surged to 95%. Among parents, helmet usage increased from 88% to 99%. More than 200 awareness workshops were carried out in schools as part of the 'Ride to Safety' programme by ICICI Lombard. Child-specific helmets were distributed to beneficiaries, many of whom belonged to low-income groups and marginalised communities. A survey was subsequently carried out where 777 families were interviewed. The survey report stated that children majorly suffer in accidents due to poor road safety behaviour of parents and low usage of affordable and quality helmets. "Unlike a rider who can spot danger, in the form of a rash driver in front of him, a pillion is completely unaware. When the pillion is a child, it's even more important to strap a helmet on for him. Motorists often plonk kids on the bike's fuel tank with no helmet on. It is only through awareness that mindsets can change," said , associated with the NGO, United Way Mumbai. Over 60% of the survey respondents said their most frequent two-wheeler trips with children involved ferrying them to school or coaching class. Before intervention, 31% of the families said they couldn't afford a good quality helmet, while 25% were not aware that helmet usage was directly linked to road safety. Transport activist said merely wearing a helmet is not enough unless it's of good quality. "An industry standards approved helmet, which is lighter, safeguards your skull and absorbs the impact of a crash is necessary," he said. Post intervention, the survey showed that 93% of the children reminded their parents about traffic rules and safety while riding and in 96% instances, children contributed in spreading road safety awareness beyond the family. According to WHO, clasped helmet-wearing can lead to a 42% reduction in fatalities. In 2020, 49% of those who died on Mumbai roads were bikers and pillions. The has made it mandatory for automobile dealers to give two helmets to those purchasing two-wheelers - one for the rider and the other for the pillion.
UK insurers face crackdown for undervaluing cars in damage claims LONDON - Britain's financial watchdog on Friday warned insurers against undervaluing cars and other items when customers submit a damage claim and said it was taking unspecified action against firms breaking its rules. The said it has evidence that some consumers who had their cars written off after an accident are being offered sums lower than the vehicle's fair market value. Offering a price lower than fair market value is not allowed under the . Increasing business expenses add pressure on insurers to control claims costs and offer cash to settle instead of paying for vehicle repairs - a move that may not be in the best interest of customers, the FCA said. "Insurance firms should offer settlements at the fair market value," said Sheldon Mills, FCA executive director for consumers and competition. "This is especially important now as people struggling with the cost of living will be hit in the pocket at precisely the time they can ill-afford it." The Association of British Insurers, an industry body, said insurers have processes in place to determine fair market value for all written-off cars. "We'll discuss this with our members to understand how processes are kept under review, including the information provided to customers to understand the different settlement options available to them, particularly given fluctuations in second-hand car prices," the ABI said in a statement. Separately, insurance firms are also grappling with a rise in auto insurance application frauds. Earlier this week, insurer Aviva said it had seen a 16% rise in such malpractices till October this year compared with the same period last year. Applicants were falsifying information such as their age, how long they have held a licence, how many penalty points they have on their licence and occupation, Aviva said. It warned motorists to think twice about lying to their insurer in an attempt to save a few pounds on cover during the cost-of-living crisis.
FM exhorts India Inc to open up their purse for sustained growth New Delhi: Finance Minister on Saturday exhorted India Inc to take advantage of announcements made in Budget and "quickly" step up so that the virtuous cycle of investment gathers momentum. Addressing members of CII, she said increase in capex in the Budget was done with twin objectives of supporting sustained growth and crowd in private investment. She asserted that this is the right time for investment and industry should not lose this opportunity. "Post the pandemic with all the reshuffling happening, reset happening in the ways in which you do your business and also with that step of October 2019 in which that one condition was please start reducing by March 2023 is also now extended by one more year," she said. The Budget 2022-23 presented on February 1 proposed that the concessional 15 per cent corporate tax rate would be available for one more year till March 2024 for newly incorporated manufacturing units. The government in September 2019 slashed corporate tax rate for companies that do not avail of any tax incentive, to 22 per cent. New manufacturing companies have to pay at an even lower corporate tax rate of 15 per cent. The government slashed corporate tax rate to provide incentive for the private sector to ramp up investment which was muted for last few years. However, this got further aggravated with the outbreak of the COVID-19 pandemic. Stressing that many sectors have been opened up, she said, there are immense opportunities in the sunrise sectors and New Age sectors like bulk drugs vaccines, and genome. "Do sit back and calmly take a call. India needs all the expansion in capacity and it is that which is going to kick off the virtuous cycle. "I would just want to green flag those areas before you and call upon the industry to quickly join and help the virtuous cycle to gain traction. The government has not given up its investment in infrastructure and that's going to have a bearing on the core industries directly and soon," she said. The government has hiked public investment by as much as 35.4 per cent to Rs 7.5 lakh crore or 2.9 per cent of the GDP in the Budget 2023-24. She urged industry not to lose this opportunity for India to reach a higher level of industrialization and manufacturing in India. The global arena is getting opened up where global value chains are not going to be concentrated in one geography but are relocating to countries with rule of law and English speaking people. "India fits into that very well and industry should take advantage of this global shift," she added. Speaking on the issue of rural distress, she said, that the same was being addressed in multiple ways. The budget has enabled access to tractors and other farm equipment through rentals as well as making credit available. The government has ensured availability of nutrients and fertilisers at affordable prices, despite the increase in global prices, she said, adding, multiple
as well as making credit available. The government has ensured availability of nutrients and fertilisers at affordable prices, despite the increase in global prices, she said, adding, multiple welfare schemes have provided support for housing, cooking gas, electricity, healthcare etc. Responding to the lower allocation to MNREGA as compared to the revised estimates of last year, she clarified that the Budget allocation this year has been pegged at the allocation last year, and as the scheme is demand driven, higher allocation would be provided as per the demand. The Finance Minister said there is need to be watchful of the increases in interest rates in developed countries and the high commodity prices. On the privatisation of the two public sector banks and one general insurance company, as suggested in last year's Budget, she said the government is committed to taking forward the announced privatisations. Also Read:
Formal job creation jumped by 16.4% in December 2021 in India jumped by 16.4% in December 2021 with 1.46 million net new subscribers added to the Employees Provident Fund Organization compared to 1.25 million added in December 2020, shows the provisional payroll data released on Sunday. Month-on-month, registered a growth of 19.9% in December compared to November 2021 with the revising down the net new additions in November from 1.39 million earlier to 1.21 million now. Of the total 1.46 million net subscribers added in December 2021, 0.91 million new members have been enrolled under , 1952 for the first time. Approximately 0.54 million net subscribers exited but rejoined EPFO by opting to continue their membership with EPFO by transferring their PF accumulations from previous to present PF account instead of opting for final withdrawal. Further, the number of members exiting EPFO has been on a declining trend since July, 2021, the labour ministry said. Highest number of net enrollment have been in the 22-25 years age bracket with net enrolments at 0.38 million additions during December, 2021 while 0.29 million subscribers were added in the 18-21 year age bracket and the age-groups of 18-25 years together contributed around 46.89% of total net subscriber additions in December, 2021. “This indicates that many first-time job seekers are joining the organised sector workforce in large numbers,” it said. Establishments in Maharashtra, Haryana, Gujarat, Tamil Nadu and Karnataka have added approximately 0.89 million subscribers during the month, which is around 61.44 % of total net payroll addition across all age groups. Gender-wise analysis indicates that net female payroll addition during the month is approximately 0.3 million with share of female enrolment at 20.52% of the total net subscribers addition during the month of December, 2021. Industry-wise payroll data indicate ‘expert services’ category (consisting of manpower agencies, private security agencies and small contractors etc.) constitutes 40.24% of total subscriber addition during the month. The payroll data is provisional since the data generation is a continuous exercise, as updation of employee record is a continuous process. The previous data hence gets updated every month. From the month of May-2018, EPFO has been releasing payroll data covering the period December 2017 onwards. EPFO provides provident fund, pension benefits to the members on their retirement and family pension & insurance benefits to their families in case of untimely death of the member. EPFO is the country’s principal organization responsible for providing social security benefits to the organized/semi-organized sector workforce covered under the statute of EPF & MP Act, 1952. Also Read:
From textiles and fashion to EV batteries, this company is making the grand transition They are better known for their textile and garment business but lured by the growth prospects of electric vehicles in India, of Rajasthan is betting big on EV batteries, which it believes will be the driver of growth for the group in the future. The company is in the final stages of setting up a 1 gigawatt hour battery facility in Pune in partnership with and is already looking to expand it to 5 GWh by 2026. "We have three different businesses, textiles, graphite and the power generation business. We continue to grow in at least the textiles and graphite businesses, but we also realize that the times are changing," said Riju Jhunjhunwala, vice chairman, LNJ Bhilwara Group. "Going forward the next 10-15 years, technology, EVs, artificial intelligence are on the cusp of really growing. We as a group cannot shy away from this and we have to have a presence in some of these areas." The electric vehicle ecosystem is still in its nascent stages in India but it is already catching the attention of companies like Bhilwara Group that operate in diverse, even unrelated sectors. Lithium ion batteries are primarily used in two segments--electric vehicles and for stationary storage devices like solar lamps or rooftop panels. The country makes around 16 GWh of such batteries with EVs accounting for around 10 GWh of them. By 2030, this is estimated to grow to at least 500 GWh--350 GWh of which will come from EVs. "As the grid in India cleans itself and moves away from thermal power stations, batteries will be the backbone and the majority of the power generation will come from solar and wind," said Hiren Pravin Shah, executive director and CEO of the LNJ-Bhilwara Replus Venture. "As far as EVs is concerned, in the next 3-4 years the industry will mature, volumes will pick up and the range of the batteries will stabilize at a minimum 300 kilometers in real world conditions. So EVs would account for around 3-3.5 gigawatt hour of the sales for us and stationary storage will account for the rest 1.5 GWh capacity." All of this would mean big business. According to CRISIL, EVs hold a revenue potential of INR 3 lakh crore by 2025-26 with automotive companies cornering half of the potential with the rest split between financers, insurers and shared mobility platforms. Additionally, as a supplier to the mainstream automotive companies, it will cater not only to all types of electric vehicles--two, three and four wheelers, but also to renewable companies in need of stationary solutions. Jhunjhunwala said this new business should form the fourth pillar of the group and account for at least a fifth of its revenues. "We would want 20% to come from this particular business in the next 5-7 years, because otherwise it will never be in focus. We have to see this as a serious business," he said. "What we are really trying from our end is to have the most fast moving cutting edge systems
years, because otherwise it will never be in focus. We have to see this as a serious business," he said. "What we are really trying from our end is to have the most fast moving cutting edge systems integrator, which any of the big companies will need to build a technology. We will watch the big players and if they have to switch from a technology we should be able to do that extremely fast and at the lowest possible cost." "When I talk about cost today, our cost is dependent on the cost of imported cells from China. Tomorrow, when the Indian cell manufacturing starts in two, three years, one really has to see how competitive the Indian cell manufacturers are compared to the Chinese ones," he added. There are potential pitfalls though. Already the domestic EV industry is highly cluttered with over 250 startups jostling for space. The pie will get larger with the shift from combustion vehicles gaining momentum, but even then it will not be able to support so many companies. Some are bound to die in a consolidation phase that may begin from 2025. "Even in a mature market like China or Europe, there are over 50 brands of batteries with the top 10 who control 80% of the market and about 40 players for the balance 20% with each one having a pie for themselves," said Shah. "It will be very similar here--very large players in the top five top 10 controlling the majority of the market. Who those top five top 5 will be, we have to wait and see. There will be large battery companies if they can quickly diversify their focus pumping money and there will be some like us completely riding on the technology wave of innovation and new cell chemistries. That is how the market will evolve." Further in order to insulate itself from the vagaries of the domestic market, it is also eyeing overseas markets like South East Asia, Middle East and Africa. "We are not limited or restricting ourselves to the Indian market and will definitely want to be a global multinational company. And by virtue of that, we will explore other geographies. For example there is huge development happening in the Middle East," Shah said. "They have the money and want to work with very strong technologically sound engineering companies. They want people who know you know the worth of the game and whom they can bet on in terms of technology and engineering. And we will be one of those who will do the execution." Also Read:
Centre proposes to keep vehicle insurance premium unchanged for most categories The centre has proposed keeping the rates of motor third party unchanged, across most categories, for the financial year 2023-24. According to a draft notification for the same, slightly lower premium rates have been proposed for three-wheelers in both electric and conventional rickshaws. These rates are referenced by while fixing the premium rates for vehicles. Sops which have been continued include a discounted price of 50% of the premium based on the to a private car registered as vintage car. Another discount of 7.5% on the premium shall be allowed for . A 15% discount has been provided for Educational institution buses, and for Electric vehicles over comparable fossil fuel run ones. Insurance premium for three-wheeled vehicles used for carrying passengers for hire or reward with carrying capacity not exceeding six passengers has been trimmed in the proposal. The basic rate for three-wheelers (rickshaws) has been proposed to be lowered from INR 2,539 to INR 2,371 per annum. Basic premium rate for (e-rickshaws) is to be cut from INR 1,648 to 1,539 per annum. cover for a private car not exceeding 1000 cc engine capacity has been proposed to be continued at INR 2,094. For private four wheelers exceeding 1000 cc but less than 1500 cc, the rate has been proposed at INR 3,416. with engine capacity less than 75 cc have can be insured at INR 538 for a year and for those with a capacity between 75cc and 150cc, the premium has been suggested at INR 714 per annum.
Landmark Cars shares jump 8% on dealership agreement with M&M Shares of jumped 8% to INR 783 in Friday's intraday trade on BSE after the firm signed a dealership agreement with Mahindra & Mahindra. " Cars has signed a Letter of Intent with Mahindra and Mahindra for opening a dealership in Howrah in the state of West Bengal," the company said in an exchange filing. This dealership will be established in one of the wholly owned subsidiaries of Landmark Cars, namely . This business will include sales and after-sales of Mahindra's Personal, Pickup, and Supro range of vehicles in the areas of Howrah, Hooghly, Kolkata, North 24 Parganas and South 24 Parganas. "This is consistent with the strategy of the company to partner with premium SUV OEs with a focus on EVs. Landmark is present in the state of West Bengal since 2013 with Mercedes-Benz," the company said. At 10.13 a.m., the scrip was trading 6% higher at INR 768 on BSE. On a year-to-date basis, the stock has surged over 60%, while it has gained 40% in the last six months. As per Trendlyne data, the targprice of the stock is INR 801, which shows an upside potential of 4% from the current market prices. The consensus recommendation from 2 analysts for the stock is a 'Buy'. Technically, the stock's day RSI (14) is at 52.3. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. MACD is at -2.3, which is below its Center Line, this is a bearish indicator. Landmark Cars is the leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, , , , MG and . The company also caters to the commercial vehicle retail business of Ashok Leyland in India. The company has its presence across the automotive retail value chain, including sales of new vehicles, after-sales service and repairs, sales of pre-owned passenger vehicles and facilitation of the sales of third-party financial and insurance products.
Here’s why your EV might need a little extra care this monsoon EVs are having a rapid run in India. According to a report by the Federation of Automobile Dealers Association (FADA), the sale of retail electric vehicles (EV) saw a sharp three-fold jump in during 2021-2022. In the fiscal year 2022, over four lakh retail electric vehicles were sold and electric passenger vehicles also saw a 257% growth in sales. These sweeping numbers are a testament to the booming desire of Indians to own an EV. Once you own an EV, the next pertinent step is knowing how to maintain the electric vehicle. Electric vehicles need regular maintenance and checkups in any given season but with the approaching monsoon season bringing with it lashing rains, strong winds, waterlogged roads and in many cases, flood-like situations, it becomes even more vital to know when and how your EV might need a little extra care. Here’s a list of issues your EV may face this monsoon and what you can do to make sure it remains in the best form. Rodent Bites and Corrosion Problem: EVs are equipped with a complex High Tension Wiring system. During monsoon, the risk of rodent bites increases due to wet surroundings which might damage and expose the internal wires. Additionally, the dust particles, moisture in the air and long hours of rain lashing which are very frequent during monsoons may result in corrosion of electrical connectors and wires. Other mechanical parts such as unpainted suspension components and the car's exterior will also be prone to rust. Solution: To prevent corrosion and rusting, ensure that your EV is parked in a dry place whenever possible. A clean and dry parking space will also ensure rodents stay away from your vehicle. In the case of an electric car, keep the windows rolled up and the insides of the car dry. Park your EVs in sheds or garages. You can use waterproof covers but such covers trap condensation between the cover and the vehicle, Water-resistant covers let some rain trickle in but they let your EV breathe. Electrical Short Circuits Problem: The monsoon season is prone to untimely lightning rains and thunderstorms. While the components in your EV are designed to take on water splashings it is imperative to follow certain safe handling practices for EVs especially while charging. While the EV is being charged, the surge in the electrical current due to a wet charging port/plug can cause short-circuit in the charging point and impact the internal circuits of the EV. This could result in damage to the charging point as well as the internal circuits and could also create a potential fire risk. Solution: This can be prevented by ensuring that the EV’s charger is installed in a covered place and the charging plug is kept dry. You should always charge your EV in a dry and covered place away from the rain such as a shed or a garage. Though chargers are methodically tested to meet certain safety standards, always ensure that the charger plug and port are dry and
dry and covered place away from the rain such as a shed or a garage. Though chargers are methodically tested to meet certain safety standards, always ensure that the charger plug and port are dry and clean. As an added precaution, avoid charging during extreme weather conditions such as heavy thunderstorms or lightning. Water Ingression Problem: The most common site across India during monsoon is waterlogged roads. Vehicles can often be seen stuck in pools of water or wading through roads with water levels reaching halfway up the body. EV's important components like the battery and drive motors are tested to be waterproof up to a certain level using the Ingress Protection (IP) Rating system. There are different levels of this rating ranging from IP61 to IP68 which specifies the component's water resistance capability. Electric Vehicles are typically rated at IP67 which means your EV can be submerged under water for 30 minutes and up to a depth of 1 meter without any water leakages occurring inside the battery or the motor. Solution: All EV systems, including the battery pack, have multiple layers of protective cut-offs that activate at the first sign of water ingress. The main battery pack also has the ability to electrically isolate itself from the rest of the car. Additionally, driving an electric car into a pool of water will not immediately cause any malfunction or conduct electricity but it is prudent to avoid a completely waterlogged road at all costs as well as take the car for a maintenance check-up after such a situation, to ensure there is no damage. Battery Health Problem: EV batteries are made of Lithium-Ion Cells, which are temperature sensitive and susceptible to overheating. In monsoon, the temperature changes to extremes at the drop of a hat. In such an environment, it is extremely important to keep a check on the battery's health and temperature. Solution: Avoid charging within an hour of use, thus allowing the battery to cool down. Always use an OEM Certified or the original charger that came with your EV. The original chargers are built with proper covering shields and protective layers that prevent any kind of short-circuit, sparks, current loss, etc. Always prefer slow charging over fast charging, because fast charging presses excessive current into the batteries in a short period which strains your EV battery’s cells and raises the temperature. This also affects the battery life over a period of time. Fast charging with an incompatible charger can also lead to extreme fire risk. It is best to take your EV out on regular short trips and maintenance checkups However, for all life’s twists and turns, it is always important to have a backup. Policies such as Reliance General insurance’s comprehensive EV insurance policy not only keep you covered on government-mandated EV norms but also provide you with extra covers that are extremely beneficial in the long run. Here’s how some of these benefits can help you avoid out-of-pocket
you covered on government-mandated EV norms but also provide you with extra covers that are extremely beneficial in the long run. Here’s how some of these benefits can help you avoid out-of-pocket expenses. 1. Own-damage cover It is legally mandated to have third-party liability cover for your EV. Currently, EVs also enjoy a 15% discount on third-party premium rates compared to their ICE counterparts. However, third-party insurance only covers damages to a third party caused by the policyholder’s EV batteries catching fire among others. It does not cover any personal damages to own vehicles arising from an unfortunate accident. A comprehensive policy with an Own-Damage cover ensures financial protection against damages to own vehicle caused by fire, road accidents, flooding, riots, thefts etc. 2. NIL depreciation cover Electric vehicles are considerably higher priced than internal combustion engine (ICE) vehicles. It is wise to have a NIL depreciation cover to ensure that the value of the EV is protected from depreciation as it ages and policyholders receive the maximum reimbursement of repair costs irrespective of the car’s age. 3. No Claim Bonus (NCB) Protection cover Insurers offer a No Claim Bonus (NCB) discount of up to 50% on the Own-Damage premium to vehicles with no claim history in the previous years. However, with the rising events of EV fire accidents, having a No Claim Bonus protection cover will ensure that the NCB discount can be availed even after filing just one claim during a policy year. Wrapping up EVs are gaining pace in India. By 2030, almost 30% of all vehicles in India will be EVs. However, they are still a relatively new technology, answerable for their own benefits and flaws. Therefore, it is vital to financially protect yourself with EV insurance from any damage that you may incur in situations beyond your control. Disclaimer: This article has been produced on behalf of RGI by Times Internet’s Spotlight team.
FADA raises concern over car inventory build-up, seeks to reach out to SIAM New Delhi: The passenger vehicle (PV) segment clocked wholesales of 42 lakh units in the domestic market during the fiscal year to March 2024. Now, two months after the new financial year, the dealers are feeling the heat of the high base of the past two years with an inventory build-up in the dealerships. “We are very cautious about the PV inventory because anything above 30 days starts draining the dealership. If inventory does not come down, we will write to the ( ),” Manish Raj Singhania, President, ( ) said at its third edition of the Finance and Insurance Summit 2024. The industry is carrying an inventory of about 5.5 lakh passenger vehicles. Singhania noted that the dealers follow a repayment cycle where funds taken from the banks are paid back with interest within 60 days. “Now, OEMs are increasing this period from 60 days to 90 days. With that, they would be able to dump more stocks at the dealerships, because they could say you have got three months’ time to rotate the inventory at the dealerships which was initially for two months. So that is a cause of worry to us as the interest can go up,” he said. In May 2024, the marked a modest 2.61% YoY growth. The two-wheeler (2W), three-wheeler (3W) and commercial vehicle (CV) segments grew by 2.5%, 20% and 4% while passenger vehicle (PV) and tractor were in the red by 1% each YoY. Last year, the industry carried an inventory of up to 65 days. Singhania said it was a big cause of worry for the auto dealerships at that time too. However, "the market supported well last year and we collaborated with SIAM and subsequently were able to bring it down”. Meanwhile, he noted that the situation is different this year. FADA said it is on a wait and watch mode and if the inventory increases further this month, it will approach SIAM. “We are at a very high level already, crossing them will be very difficult. In fact, matching them would itself be an achievement for the auto industry.” The industry saw highest inventory levels in 2018-19. Consequently, FADA found that about 275 dealerships had to wind up the operations, with the PV segment taking the major hit. Talking about the two-wheeler segment, Singhania said sales have been growing month-on-month since September last year. The inventory in the dealerships is 10-15 days. FADA expects a positive rural demand due to expected good monsoon and improved finance availability. He suggested to the finance and insurance companies to work on innovative financial solutions, offer enhanced support for training and upskilling dealership finance, and provide insurance coverage for test drive vehicles. On expectations for the upcoming budget, FADA President said, first, the work on infrastructure push should continue; second, a reduction of GST for entry level vehicles and third; continuity of FAME-3 policy. Sharing his views, Rajan Pental, Executive Director, Yes Bank, also agreed there has
push should continue; second, a reduction of GST for entry level vehicles and third; continuity of FAME-3 policy. Sharing his views, Rajan Pental, Executive Director, Yes Bank, also agreed there has been an increase in stock levels in the last few months and the stocks are being maintained with high interest rates. “A 7%-8% growth is expected in the car market, but on the other side, things (at dealerships) need to be done in a judicious manner to control costs.”
MEA to take a call on allowing US-sanctioned ships carrying Russian crude India’s will take a call on whether to allow the entry of ships recently sanctioned by the United States (US) , a top government official said. Three vessels - Kazan, Ligovsky Prospect, and NS Century - registered with United Arab Emirates-based (UAE-based) companies are said to be on their way to India. These ships are accused by the US government of engaging in the export of Russian priced above USD 60 per barrel after the crude oil price cap was enforced. This move was in retaliation to Russia’s invasion of Ukraine with the Price Cap Coalition ( , European Union, and Australia) restricting sale of . The goal was to reduce oil revenues that the Russian government has from sale of crude oil. But the surge in global oil prices has resulted in multiple instances of Russian crude being bought about the price cap. The US sanctions target insurers and shipping companies that engage in the Russian crude oil. Responding to questions from journalists in New Delhi, Shyam Jagannathan, Director General of Shipping said the existing port rules do not bar entry of these vessels in the country that are headed for Gujarat’s Vadinar, a non-Major port. This port was taken over by Russian oil giant Rosneft in 2016 when it bought controlling stake in erstwhile Essar Oil for USD 12.9 billion. Domestic ports administered by the central government are labelled as Major ports, the rest are controlled by state governments and termed as non-Major ones. “The Ministry of External Affairs has to take a call on whether to allow the sanctioned ships in the country,” Jagannathan said at the side lines of a Mid Term review meet to prepare for the PM Maritime Amritkaal Vision with an ultimate goal to make India the global maritime leader by 2047. Highlighting the progress made under this massive plan for INR 80 lakh crore investment to modernise Indian ports by 2047, Union Ports, Shipping and Waterways Minister Sarbananda Sonowal said, “We are moving closer towards building Made in India Green Tugs at , opening a new vista of opportunities for export. We have also received encouraging response to set up Green Hydrogen Hubs at Deen Dayal port and VO Chidambaranar ports.” An official statement said 177 projects were completed at Major Ports in fiscal 2022-23, while 162 projects are at various stages of implementation with an investment exceeding INR 1 lakh crore
Road ministry issues new rules on road accident reporting for claim settlement The on Thursday said it has issued a notification to mandate the procedure for detailed investigation of road accidents, detailed accident report (DAR) and its reporting along with timelines for different stakeholders for quick settlement of claims by the (MACT). The ministry in a statement further said the incorporation of validated mobile numbers in the certificate of vehicle insurance has also been made mandatory. The new rules will come into force from April 1, 2022. According to the notification, immediately on receipt of the information of a , the investigating officer of police shall inspect the site of accident, take photographs of the scene of the accident and the vehicle(s) involved in the accident and prepare a site plan. In injury cases, the investigating officer (IO) shall also take the photographs of the injured in the hospital, the notification said, adding that the IO shall conduct spot enquiry by examining the eyewitnesseschildren of the victim(s) of the accident, the notification said the IO shall provide blank Form-VIA to the victim(s), who shall fill up the relevant information/attach the relevant documents and submit the same to the investigating officer within 60 days of the accident. Thereafter, the IO shall send the copy of the victim's Form-VI and VIA along with DAR to Child Welfare Committee, within 30 days of receiving the aforesaid Form-VI and VIA from the victim(s), it added. According to the notification, the committee shall ascertain if the child is in need of care and protection as per the provisions of the Juvenile Justice (Care and Protection of Children) Act, 2015. Also Read:
Oil prices continue climb on strong crude demand, weaker dollar By Laura Sanicola continued to rise in early Asian trade on Thursday after surging more than 3% in the previous session, driven by record U.S. crude exports and a weaker U.S. dollar. Brent crude futures rose 25 cents, or 0.3%, to $95.94 a barrel by 0015 GMT. U.S. (WTI) crude rose 19 cents, or 0.2%, to $88.10. U.S. 2.6 million barrels last week, according to weekly government data on Wednesday, with crude exports rising to 5.1 million barrels a day, the most ever. Traders attributed the surge in exports to the widened WTI-Brent spread, which, coming into Wednesday's trade, was at more than $8 per barrel. The dollar's weakness also added support, as the greenback's strength of late has been a notable factor inhibiting oil market gains. A weaker dollar makes greenback-denominated for other currency holders. Prices also rose on a Bloomberg news report that the United States and the are likely to settle for a more loosely policed cap at a higher price than once envisioned, with just the Group of Seven (G7) nations and Australia committed to abide by it, the report said, citing people familiar with the matter. Europe is expected next month to ban oil imports from Russia and restrict Russian shippers from the global shipping insurance industry. Read More:
Russia's oil export ban may bolster India crude imports Moscow's decision to ban oil exports to potential Western buyers supporting a price cap will likely boost Indian imports of , industry executives told ET. The West, which insists on a strict price cap on supplies from Moscow, has already imposed a ban on the bulk of Russian crude exports. Some residual volumes still being imported into Europe via pipelines could now be affected by the latest Kremlin move. This could leave Russia with surplus crude oil volumes, something Moscow may want India 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 Sokol, 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.
UK car insurance premiums to be volatile after rising in Q4: Survey The cost of a comprehensive policy in Britain is expected to be volatile this year, after rising 5% in the final quarter of 2021 as more drivers took to roads on easing COVID-19 curbs, a survey showed on Wednesday. Motorists now have to pay 539 pounds ($734.06) on average for their comprehensive car insurance premiums, according to the latest index from price comparison site Confused.com in association with insurance broker Willis Towers Watson. Car insurance premiums had fallen for 12 months through to the autumn of 2021 as lockdowns kept motorists off the roads and competition in the industry intensified. Prices are expected to inflate even further over the coming months as the pandemic has heightened issues related to Brexit, Confused.com Chief Executive Louise O'Shea said in a statement. More volatility is expected with insurers competing to maintain margins as they adjust to the new fair pricing rules, said Tim Rourke, the UK Head of P&C Pricing, Product, Claims and Underwriting at Willis Towers Watson. Britain's financial regulator in May had said it would move to protect consumers from so-called loyalty penalties in motor and home insurance, potentially saving an estimated 4.2 billion pounds over 10 years. "How insurers respond to the new rules through pricing and product strategy will determine just how turbulent the next few months become," Rourke said. West Central London remains the most expensive place in the UK to buy car insurance, with an average premium of 1,079 pounds according to the survey, while Llandrindod Wells in Wales offers the cheapest ones at an average of 326 pounds. Motor insurance premiums fell by 6% in 2021, the survey said. Also Read:
Private buses to 'merge' with KTC fleet, schemes same PANAJI: Commuters using private buses can soon avail of all the schemes of Kadamba Transport Corporation ( ), including the monthly pass, free travel for disabled passengers, and concessional rates for students and senior citizens. The state government has decided to incorporate the 300-odd private buses in the state into the . The pilot project is expected to take off within a few weeks following which the private buses will operate completely under KTC. "The amalgamation will help streamline all the bus services in ," KTC general manager Sanjay Ghate told TOI. "For the convenience of the public, all KTC buses in Goa will be linked to an Intelligent Transport Management System (ITMS). So it is imperative to include private buses in the fleet as well," he said. With the help of this mechanism, passengers will be able to access bus details, choose the optimal route, track buses, and plan trips from home. "This will be especially beneficial to tourists to make use of a far more economical transportation medium," Ghate said. "They will be able to track routes from their hotel." In the amalgamation, private operators will continue to run the buses. However, conductors will be provided by KTC. After the pilot project, private buses will be repainted to follow a uniform colour scheme. However, they may not bear the iconic blue and white colours of KTC. "We are yet to decide the fare chart for private buses. However, commuters will be able to avail of all the schemes of KTC," Ghate said. "Private buses will start operating under KTC by April-end." Chief minister Pramod Sawant had announced the integration of private buses with KTC in the budget speech last week. Private bus operators, however, have apprehensions about the integration, fearing the loss of autonomy. Shiva Kambli, a bus owner, said that operators are yet to see a written proposal for the amalgamation and will decide the fate of their buses only after going through the details. "Our business has been badly hit ever since the pandemic. So, before we fully commit to the amalgamation, we need to ensure that it helps us emerge from the losses," he added. The representatives of All Goa Private Bus Owners' Association had met the chief minister prior to the budget and had discussed the matter. "We do not wish to surrender our bus permits or bring changes in operations," said the general secretary of the association, Sudeep Tahmankar. "There are also apprehensions with respect to the punctuality of salary payments once private bus operators are under KTC." Tahmankar added, "For now, we have demanded that the government release the fuel subsidies that have been pending since 2017." He went on to say, "This will help operators bring buses on the roads and pay all dues such as insurance premiums and road and passenger taxes."
Audi India opens new Audi approved: plus facility in Bengaluru New Delhi: Audi, the German luxury car manufacturer, Friday inaugurated a new pre-owned car facility, : plus, in Bengaluru. The showroom is located at #4E, , Puttappa Industrial Estate, White Field Road, Mahadevapura Bengaluru, Karnataka 560048. This inauguration marks the opening of ’s twenty-fifth Audi Approved: plus facility in India. It is the second Audi Approved: plus for the brand in Bengaluru, the company said. Balbir Singh Dhillon, Head of Audi India said, “Our partnership with continues to grow across regions. Today, we open our 25 th AAP facility in India and I couldn’t be more happy with our retail expansion in this segment. Audi Approved: plus has witnessed 53% growth in the first half of this year and we are confident of continued growth in the next few months.” Every pre-owned vehicle displayed and sold at Audi approved: plus showrooms undergo mechanical, bodywork, interior and electrical inspections at 300+ multi-point checks, through multiple-level quality checks, along with a full on-road test to ensure peace of mind to customers when buying an Audi car. In addition, Audi India offers 24x7 Roadside Assistance and complete vehicle history before purchase. Customers can also avail easy financing and insurance benefits, the company said. Mr. Amit Jain, CEO, Jubilant MotorWorks, said, “We are excited to take our partnership with Audi India a step further with the inauguration of the new Audi Approved: plus facility in Bengaluru. This is our second Audi Approved: plus, facility in Bengaluru and we are confident that we are now well equipped to cater to the growing demand in this region. Bengaluru is seeing continued demand for luxury pre-owned cars as more young customers want to experience luxury early on. Our facility is equipped to cater to all customer needs, and we are committed to providing a seamless customer experience.”
Will never give company-specific incentives in EV sector, govt official on Tesla's demand New Delhi: will never provide company or enterprise-specific incentives in the electric vehicle sector, a top government official said on Friday, amid a push from American electric carmaker for special sops to set up its factory in the country. If the government has to consider providing incentives then it will only be for all EV makers and entrants who want to come to India, the official said. The official added that inter-ministerial discussions have happened on the customs duty concession demand of the US-based electric car maker Tesla, but "we never" come to any conclusion on those. In 2021, the US-based electric car maker demanded a reduction in import duties on electric vehicles (EVs) in India. It had requested the government to standardize the tariff on electric cars to 40 per cent irrespective of the customs value. At present, cars imported as completely built units (CBUs) attract customs duty ranging from 60 per cent to 100 per cent, depending on engine size and cost, insurance and freight (CIF) value less or above USD 40,000. "Never. It will never be a company-specific. It will always be for all entities, companies. If any concessions are given, these will always be linked to fairly stringent performance criteria for everybody. It's never going to be an enterprise-specific thing," the official said when asked if the government is considering specific concessions for Tesla. The official clarified that the reports on duty concessions and others related to the company are "mostly in the nature of speculation". "They have asked for some concessions but we never come to any conclusion. Nothing has come to any conclusion at all on that," the official added. Last month, and Industry Minister visited the manufacturing facility of US-based electric vehicle major Tesla in Fremont, California and said that the company would be doubling its auto components imports from India. The world's largest electric car producer Tesla Inc's chief met Prime Minister in June in New York and after the meeting had said that he planned to visit India in 2024. There are reports that India is looking at giving customs duty concessions to Tesla for setting up a plant in the country. In September, Goyal said the company is looking to source components worth around USD 1.9 billion from India this year against USD 1 billion in 2022. Going forward, demand for electric vehicles will increase and it will help in pushing the growth of the sector. Earlier, the government had stated that it is not looking to frame a separate policy for providing incentives to Tesla, and the company can apply to avail of support measures under existing schemes like PLI for auto and advanced chemistry cells. The government has rolled out production-linked incentives (PLI) schemes (PLI) for advanced chemistry cell (ACC) battery storage with an outlay of Rs 18,100 crore and Rs 26,058 crore PLI scheme for
The government has rolled out production-linked incentives (PLI) schemes (PLI) for advanced chemistry cell (ACC) battery storage with an outlay of Rs 18,100 crore and Rs 26,058 crore PLI scheme for auto, auto-components and drone industries. In August 2021, Musk said Tesla might set up a manufacturing unit in India if it first succeeded with imported vehicles in the country. He had said Tesla wanted to launch its vehicles in India "but import duties are the highest in the world by far of any large country!". Currently, India imposes 100 per cent import duty on fully imported cars with CIF (Cost, Insurance and Freight) value more than USD 40,000 and 70 per cent on those costing less than the amount. Certain domestic EV makers are also against extending any kind of company-specific incentives.
Maruti Suzuki Grand Vitara S-CNG now available at NEXA New Delhi: Introduced as "a new breed of SUVs," the Grand Vitara was launched to revolutionize the SUV space in India. Having received an overwhelming response from customers owing to its multi-product offering with Intelligent Electric Hybrid, Progressive Smart Hybrid, and models on offer, the Grand Vitara is now being introduced with S-CNG technology. Powered by the Next-Gen K-series 1.5-litre, Dual Jet, Dual VVT engine, the develops a peak power output of 64.6kW@5500rpm and maximum torque is rated at 121.5 Nm@4200rpm in CNG mode. The Grand Vitara S-CNG, available with a 5-speed manual transmission, has an excellent fuel efficiency of 26.6 km/kg*. Announcing the introduction of the Grand Vitara S-CNG, Shashank Srivastava, Senior Executive Officer, Marketing & Sales, , said, "Since its launch in September 2022, the Grand Vitara has received a resounding response from Indian consumers, thanks to its SUV appeal complimented by multiple future-ready powertrains. The introduction of the S-CNG option further expands the appeal of the Grand Vitara. The Grand Vitara S-CNG will contribute to our aggressive plan to widen our green powertrain offerings, expanding to 14 models." The Grand Vitara has revolutionary powertrain options, class-leading features, and offers an immersive driving experience. It is also the only premium CNG SUV to offer a 6-airbag variant for customers. The Grand Vitara will include cutting-edge technologies such as the infotainment system, wireless Apple CarPlay and Android Auto, and an in-built Next Gen Suzuki Connect with over 40 connected features. The Grand Vitara S-CNG can also be owned through Maruti Suzuki Subscribe at an all-inclusive monthly subscription fee starting from Rs. 30,723. Maruti Suzuki Subscribe is a convenient way to bring home a new car. It allows a customer to use a new car without owning it by paying an all-inclusive monthly subscription fee that comprehensively covers the cost of complete registration, service and maintenance, insurance, and roadside assistance. Also Read:
RBI focused on growth, seen lagging on inflation fight MUMBAI: Inflation is picking up in India, but the country's central bank is likely to maintain its loose policy even as its global peers raise rates, potentially forcing it to play catch-up aggressively later, economists and analysts say. This view represents a shift in expectations, as market participants say the Reserve Bank of India is concerned that Russia's invasion of Ukraine is damaging the global economy and India's recovery prospects, not just boosting prices. A Reuters poll in early February found just over half of forecasters expecting the to raise rates at its April meeting, but the war launched three weeks later has upended those predictions. RBI watchers now expect the bank to stand pat on April 8, even though inflation has broken above the 6% upper end of the bank's target band for two months. Saugata Bhattacharya, chief economist at Axis Bank, who had earlier expected the RBI to raise its reverse-repurchase rate next week, now says global uncertainties mean that "it makes sense to remain at a status quo." Supporting such expectations, RBI governor Shakikanta Das recently warned against a "premature demand compression through monetary policy". Deputy governor Michael Patra said India's growth was as weak as in 2013, when a US policy shift sent capital gushing out of emerging markets. "The recent reverberations of war have in fact, tilted the balance of risks downwards" for the economy, he said. But economists warn inflation could spin out of control, hurting investors and savers alike - and most market participants say the RBI is already behind the curve on tackling inflation. Stoking risk of overheating Economists expect the RBI to raise its retail-inflation projection for the fiscal year starting on Friday by 50 to 80 basis points from the current 4.5%. Upward price pressure is expected to continue as the war and resulting economic sanctions on Moscow send prices soaring for the grain, energy and other exports that Russia and Ukraine provide. "In the aftermath of the Russia-Ukraine war, the probability that higher-than-expected inflation will persist has increased. The longer we wait to address that, the faster that we may have to play catch-up with it eventually," said Churchil Bhatt, executive vice president of debt investments at Kotak Life Insurance. Rising asset prices could feed through to demand-side inflation, while savers are being hurt as their returns lag behind inflation, said Rupa Rege Nitsure, chief economist at L&T Financial Services. "By keeping interest rates artificially low, the chances of more aggressive tightening at a later stage have gone up significantly," she said. Abhay Gupta, emerging Asia fixed income and forex strategist at BofA Securities, said the RBI must "be vigilant for broader inflationary pressures." "Higher uncertainty would reduce room for error and markets would have to price in higher chances of a policy mistake," he said. Risks of
RBI must "be vigilant for broader inflationary pressures." "Higher uncertainty would reduce room for error and markets would have to price in higher chances of a policy mistake," he said. Risks of eventual economic overheating suggest market interest rates must rise while the rupee should weaken, he said.
BYD reduces shifts at two electric vehicle plants in China has reduced shifts at two plants in , people with knowledge of the matter told Reuters, in a sign of how weaker demand in the world's largest auto market is affecting its best-selling electric vehicle brand. BYD, which outsells in China, asked some of the workers at its Xian plant, its biggest manufacturing hub, to work only four days a week in a factory running two eight-hour shifts per day, according to three people and an internal memo sent earlier this month and reviewed by Reuters. The Xian plant makes BYD's top-selling Song and Qin sedans. BYD also reduced shifts at its Shenzhen plant, which makes its Han sedans, from three shifts per day to two per day, four people with knowledge of the development said. BYD declined to comment. The sources declined to be identified because the production schedule is private. BYD did not give a reason for the reduced shifts in its planning memo reviewed by Reuters. One of the people said BYD was throttling back on production in the face of weaker industry-wide demand in China since the start of the year. Reuters was not able to determine how long the reduced shifts would last for BYD and if any of its other three assembly plants in China were affected by production schedule changes. It was also not clear how the reduced shifts would translate into production volume changes. BYD has been growing fast and taking market share in China. Last month it outsold Volkswagen-branded cars in the country for the second time. BYD also outsold Tesla by more than five times in the first two months of the year. But BYD has also been slowing output since the start of the year when industry-wide sales began to slow and China ended a national subsidy programme for EVs and plug-in electric vehicles. Analysts have credited aggressive discounts for creating some demand as other automakers have followed Tesla into what has become a price war over market share but industry-wide inventories have been rising. Local Chinese authorities have also been rolling out buyer subsidies to drive demand and some of these programmes have started to extend to automakers to encourage manufacturing. On Tuesday, the Xian government announced that to encourage local EV production, it would give a 2,000 yuan reward per vehicle for every car produced over 2022 levels to a maximum of 10 million yuan ($1.45 million) per automaker. It also announced subsidies for EV purchases. BYD produced 5,749 cars in January and February on average per day, 22% fewer than its average daily output in October and November, according to data from China Association of Automobile Manufacturers. Total sales of BYD including exports and those to dealers increased 89% in the first two months from the same period a year earlier, the company has said. But retail sales, based on insurance registration data, showed slower growth of 66%, data from China Merchants Bank International showed. To spur demand, BYD began
year earlier, the company has said. But retail sales, based on insurance registration data, showed slower growth of 66%, data from China Merchants Bank International showed. To spur demand, BYD began offering discounts for its best-selling Yuan Plus and Seal EVs in March. The company also launched refreshed versions of its Han sedan and Tang crossover last week.
Prices can't dampen EV sales as it steps on leasing pedal Leasing is adding to the momentum in electric vehicle sales, even as vehicle price remains a dampener in , industry executives and experts said. The business has grown substantially over the past 8-12 months, they said. With the base still remaining low, this segment is expected to continue its quick growth. More than a dozen companies are involved in the EV . These include Mahindra Finance-promoted , Ayvens (a part of the merged entity of ALD Automotive and Leaseplan), Yamaha Motor subsidiary Moto Business Service, Alt Mobility and Lithium Urban Technologies. as well as logistics and companies are increasingly taking the leasing route to deploy , instead of purchasing them due to the high upfront cost. Leasing is more economical. For instance, a Tata Nexon EV is priced at INR 14.49 lakh. For a tenure of 48 months, the outflow on an outright purchase, including interest on loan, works out to INR 12.2 lakh after accounting for the resale value. Leasing is cheaper at INR 10.94 lakh, because the cost of maintenance, repairs and insurance are borne by the leasing company, according to estimates by Ayvens. Also, no down payment is required in leasing. As the " remains compelling, leasing will form an important way to make EV adoption friction-less", said Vasudha Madhavan, founder and chief executive of Ostara Advisors, an EV-focused investment bank. According to Sanjay Krishnan, founder and CEO of Lithium Urban Technologies, "Leasing companies are more malleable than a bank." Leasing allows fleet operators to be and channel the capital to other parts of their business, instead of spending on acquiring vehicles. Often, they get an option to also buy the vehicles after the lease period. As bank financing for electric vehicles is still not easily available, the leasing model is seeing strong demand. While leasing gives flexibility of ownership, it also absolves the user from technology risk, as the EV industry is evolving quickly, said Dev Arora, cofounder and CEO of ALT Mobility, an EV leasing platform which has deployed more than 7,500 electric 3/4 wheelers (cargo) in the last 24 months. Many companies are also using the EV leasing option as an employee retention tool. "For the employee, it's tax efficient," said Suvajit Karmakar, country MD India at Ayvens. In India, Ayvens is the largest automotive leasing company with a fleet of 45,000 vehicles, including those running on fossil fuels. Most of these are leased through corporates to their employees. It expects to add 1,500 EVs to the fleet this year, which will be 8% of its annual fleet addition. "We see employee transportation moving very rapidly to 100% EV fleets. Our business in 2023 saw five times growth and we expect a further five times growth in 2024," said Nakao Hiroshi, managing director of Moto Business Service India. Operating cost for an EV is 15-20% lower than a vehicle running on conventional fuels, Hiroshi said. Quiklyz, the
in 2024," said Nakao Hiroshi, managing director of Moto Business Service India. Operating cost for an EV is 15-20% lower than a vehicle running on conventional fuels, Hiroshi said. Quiklyz, the vehicle leasing business of Mahindra Finance, offers customised leasing solutions for electric three- and four-wheelers. "We expect 20% of the leasing business to come from zero emission products like EVs in the next 2-3 years," said Raul Rebello, MD designate of Mahindra Finance. The company aims to broaden its EV portfolio in the logistics and last-mile mobility space. Even though the in India is still in an early stage, the leasing industry is looking to capitalise on the potential growth. For leasing companies, individual consumers present unique hurdles, like stringent vehicle registration policies, uncertainty around residual values and a lack of robust charging infrastructure, said Ravi Bhatia, president of automobile consultancy firm Jato Dynamics. Additionally, the risk of customer defaults is heightened, as missed payments do not impact credit scores in the same way as traditional loans, Bhatia added. As the overall Indian EV market continues to evolve, the leasing industry is addressing issues like residual value, battery health standards and expansion of charging networks, said experts.
Progress of India-UK trade pact talks reviewed at highest level With the negotiations for the proposed India-UK free trade agreement reaching an advanced stage, the Prime Minister's Office reviewed the progress of the talks on February 16, sources said. Commerce and Industry Minister and Commerce Secretary Sunil Barthwal were also present in the meeting, they said. "The talks for the agreement are at a crucial stage now. About three reviews have happened so far at the highest level," they said, adding both countries are working to iron out differences on the remaining issues. The commerce secretary recently stated that the negotiations were taking time because "we want" to safeguard India's interest. "India should commercially gain out of it and we should also be able to safeguard the interest of our farmers, PLI (production linked incentive) scheme goods. So, we are there to see that the deal is a fair deal," he said. So far 13 rounds of talks have been completed and the 14th round started on January 10. Some of the key issues involved in the pact include customs duty cut on electric vehicles and whiskey and the movement of professionals. Talks are also progressing on the proposed bilateral investment treaty (BIT). India and the UK launched the talks for a free-trade agreement ( ) in January 2022. There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights. The Indian industry is demanding greater access for its skilled professionals from sectors like IT, and healthcare in the UK market, besides market access for several goods at nil customs duties. On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, automobiles, lamb meat, chocolates and certain confectionary items. Britain is also looking for more opportunities for UK services in Indian markets in segments like telecommunications, legal and financial services (banking and insurance). The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.
Hyundai Ioniq 5 earns IIHS's Top Safety Pick+ award New Delhi: The all-new 2022 , an electric small SUV, earned Top Safety Pick+ award from the , reported today. To earn either of the Institute’s two awards in 2022, vehicles must earn good ratings in six IIHS crashworthiness evaluations, including the driver-side small overlap front, passenger-side small overlap front, moderate overlap front, original side, roof strength and head restraint tests. They must also be available with a front crash prevention system that earns advanced or superior ratings in both the vehicle-to-vehicle and vehicle-to-pedestrian evaluations. For the lower-tier Top Safety Pick, at least one good or acceptable headlight system must be available. For the higher-tier Top Safety Pick+, good or acceptable headlights must be standard across all trims. The Ioniq 5 meets all the requirements for the higher-tier award. Its standard front crash prevention system earns superior ratings in vehicle-to-vehicle and vehicle-to-pedestrian evaluations. The SEL and Limited trims come equipped with good-rated LED projector headlights, while the SE trim comes with LED reflectors that earn an acceptable rating. The award applies to vehicles built after December 2021, when Hyundai made changes to the front seats that could affect the head restraint evaluation, IIHS added. Also Read:
Share mobility platform FICO Mobility raises seed round from SR Consultancy Services Chandigarh-based announced on Monday of raising an undisclosed amount in from firm . Harjeet Singh, Founder, Fico Mobility, in his statement said that his company plans to utilize these funds in upgradation and expansion. Fico Mobility started in 2021 is a self-drive car-sharing platform. The company offers easy and hassle-free solutions to some of the most common problems faced by urban commuters, by offering them to choose share mobility, a mode of transportation that is more affordable, reliable, clean, and efficient. "During the last few decades, India has seen an unprecedented boost to its urban infrastructure, particularly its mobility system. Despite that, the urban centers are under tremendous pressure due to our cities witnessing an increase in private vehicles and lesser use of public modes of transportation. At Fico mobility, we are addressing these growing challenges by enabling efficient asset utilization by transitioning from a model of ownership of private assets to users of shared assets." Harjeet added. At Fico mobility, the rides are cost-efficient and hassle-free. The mobile application can be downloaded from Google Playstore and Apple Store. After a quick signup, the user is ready to share any car of his/her choice without worrying about its maintenance, fuel, or insurance. The company hosts pre-owned cars from all segments on its platform and offers users to share them on a short to long-term basis. The car owner (host) can get on board by following a quick process. Being a part of the FICO ecosystem comes with many perks. It not only helps the host to mitigate the depreciation cost of the car but also creates a second stream of income with it. The company intends to create a cohesive ecosystem where the hosts (car owners) and users can be seamlessly connected through data for an improved user experience. The company also highlighted the untapped potential of India's shared mobility market. The segment was valued at $1,025.8 million in 2019 and is expected to grow at a CAGR of 56.8% during the forecast period (2020-2025). Founder Harjeet Singh looks very optimistic about the future. He said, "We are moving towards a smart city culture. Apart from these optimistic numbers, the fact that people are slowly moving away from a typically costly, inequitable, and inefficient way of owning a private vehicle that makes this segment so promising." Also Read:
Sour grapes? China thinks Tesla's India biz will be doomed has not liked CEO planning to open an factory in . Musk is set to travel to India later this month and meet Prime Minister Narendra , with plans for a Tesla factory expected to be announced. Musk has negotiated with the Indian government for long. He preferred to import cars into India at a lower duty while India wanted him to manufacture cars locally. He is likely to announce Tesla's India entry after the government announced its new policy last month which is likely to suit him. The government will allow the import of completely built-up electric cars that have a minimum cost, insurance and freight value of $35,000 (Rs. 29.2 lakh) at 15% import duty five years in exchange for a minimum investment of $500 million to start local manufacturing. India levies import duty of up to 100% on completely built-up cars. But China is not liking Tesla's likely India entry. The Global Times, considered a mouthpiece of the Chinese government, has put a hex on India's ambitious step to invite Tesla by predicting it is not going to work because it's too soon for a grossly underprepared and immature Indian market. The doomy commentary ignores that several big Chinese EV makers have earlier shown interest in manufacturing EVs in India but the Indian government did not allow them. India-China ties have deteriorated due to border disputes over which skirmishes had erupted earlier. India has put Chinese investment under deep scrutiny and has probed several Chinese businesses for wrong-doings. Sour grapes? While saying that Tesla's long-awaited investment in an EV facility in India will undoubtedly be good news for India and help boost EV production, the Global Times article goes on to argue why Tesla might not be successful in India. "As for Tesla, which focuses mainly on the mid- and high-end sectors and mature markets, nobody knows if it will find success in India," the article says. "While India's EV market is growing, its size is small. Some statistics showed EVs accounted for just 2.3 percent of total passenger vehicles sold in India in 2023." It says a key barrier India faces for large-scale adoption of EVs is the absence of public charging infrastructure, and to make matters worse, consumers face frequent power outages in some regions of India. It says a power shortage is brewing in India and India's expansion of coal mines and power plants to generate more power will make it hard to meet climate goals. It also questions if India's immature market can digest enough Tesla cars and allow it to make profits. Another challenge the article lists is the supply chain. "One of the biggest issues is the limited domestic production of core components like lithium-ion batteries for EV. India is starting relatively late in trying to create an indigenous EV supply chain," it says. It recommends India to follow a more "realistic" approach than having Tesla to manufacture EVs in the country. "Given the complex
late in trying to create an indigenous EV supply chain," it says. It recommends India to follow a more "realistic" approach than having Tesla to manufacture EVs in the country. "Given the complex economic landscape, India's EV ambitions should, more realistically, be implemented step by step with patience and openness," it says. "In this process, it is advised that India consider strengthening cooperation with neighboring countries and promote manufacturing development with a more pragmatic attitude." So, it wants India to have Chinese companies build EVs instead of Tesla. While the challenges listed by the Global Times article do persist more or less, they aren't something that will jeopardise the Tesla business. In fact, the Chinese argument is a classic case of sour grapes since many Chinese EV companies have tried to set up manufacturing in India but were denied permission by the government. Last year, the government rejected Chinese automaker BYD's proposal to set up a $1 billion factory in India in partnership with a local company Megha Engineering and Infrastructure Ltd. In 2022, the government blocked efforts by Chinese carmaker Great Wall Motor to buy a manufacturing plant from General Motors in India. MG Motor, owned by SAIC Motor Corporation of China, has entered into a JV with India's JSW Group to manufacture EVs. Clearly, Chinese companies wanting to manufacture EVs in India think nothing of the challenges the Global Times article says might lead to Tesla's failure in India. Tesla's China problem and India promise Tesla runs a factory in China which has started facing challenges. Last month, Tesla shares fell when data showed that deliveries from Tesla's Shanghai Gigafactory slumped. Later in the month, Bloomberg reported Tesla had reduced its car production at its plant in China as the American EV-maker grappled with slow demand and strong competition in the market. The company had told employees at its Shanghai factory to lower output of both the Model Y sport utility vehicle and Model 3 sedan - the two types it makes in China - by working five days a week instead of the usual 6-1/2 days, the report claimed. Also, Tesla delivered 387,000 cars worldwide in the first quarter, down 8.5% from 423,000 in the same period last year. This was the first time Tesla's quarterly sales have fallen on a year-over-year basis since a modest drop at the start of the pandemic in 2020. Tesla faces fierce competition from Chinese EV makers flooding the market with cars priced as low as $10,000. In China, Tesla faces BYD and dozens of other rivals with ambitions to expand worldwide. Tesla rivals have continued to report sales increases. BYD said it sold about 300,000 electric vehicles in the first three months of the year, up 13% from a year earlier. The company also sold 324,000 plug-in hybrid vehicles in the first quarter, up 15%. BYD and other Chinese automakers have introduced new models rapidly, often undercutting Tesla on price. Those companies
company also sold 324,000 plug-in hybrid vehicles in the first quarter, up 15%. BYD and other Chinese automakers have introduced new models rapidly, often undercutting Tesla on price. Those companies are also increasingly exporting cars to Europe, Southeast Asia and Latin America. Chinese automakers have raced ahead on affordable EVs, grabbing market share, gaining economies of scale and offering consumers bargain prices that Western automakers are struggling to match. Fierce competition from Chinese EV makers have forced Tesla to cancel the long-promised inexpensive car that investors have been counting on to drive its growth into a mass-market automaker, as per Reuters. However, India offers China a vast, untapped market where EV penetration is still very low. Electric-vehicle sales in India are expected to rise 66% this year after nearly doubling in 2023 as state subsidies help fuel demand and supporting infrastructure comes up in the country, according to research firm Counterpoint. India's EV market, small but growing, is dominated by domestic carmaker Tata Motors. Electric models made up 2% of total car sales in 2023 but the government is targeting 30% by 2030. Another ambitious EV maker, Vietnam's VinFast, is betting big on India's potential. It plans to invest $2 billion in a plant in the country to manufacture electric cars. A spurt in EV manufacturing will spur creation of infrastructure, ecosystems and supply chains. The entry of a global major like Tesla is certainly going to speed up India's EV sector growth. China won't like the prospect of India trying to set up its electric car industry without much Chinese involvement, and one day down the line competing with it in African and Asian markets. (With inputs from Bloomberg and Reuters)
Road Ministry proposes to formalise movement of foreign personal vehicles The and Highways ( ) on Thursday proposed to formalise the movement of personal vehicles registered in other countries when entering or plying in Indian territory. In a draft notification, the MoRTH said under , the vehicle operating in Indian territory shall carry a valid registration certificate. The vehicle shall also carry a valid insurance policy and driving licence or international driving permit, whichever is applicable. According to the draft notification, in case the documents are in a language other than English, then an authorised English translation, duly authenticated by the issuing authority, shall be carried along with the original documents. Motor vehicles registered in any country other than India shall not be permitted to transport local passengers and goods within the territory of India, it added. Also Read:
Buyers recalibrate oil import plans in wake of surprise OPEC+ supply cut The pain of high global crude prices and tighter supply is the last thing major oil importers in Asia and elsewhere want at a time when many import-dependent economies are witnessing a fragile recovery after years of pandemic-hit growth. But the unexpected production cuts announced by and its allies in early April have brought those fears to the forefront. OPEC and its allies said they plan to make more than 1.6 million bd, a significant reduction for the oil market. While the surprise OPEC+ production quota cuts have propped up oil prices in April, this has heightened concerns that supplies would tighten further in the second half of the year and complicate decisions for central bankers, especially after the recent global banking crisis. It will also mean more competition among refiners in Asia – the biggest importing bloc for crude from OPEC+ -- especially as crude demand is expected to increase after the spring maintenance season. It’s not over yet The surprise cuts may not just alter trade flows but also put fragile diplomatic relations in the spotlight. While the cuts should be sufficient to satisfy OPEC’s objectives but not so dramatic as to trigger a US SPR release, the political drama could intensify ahead of the June 4 OPEC+ meeting, potentially including anti-OPEC and Saudi proposals from the US Congress if the “voluntary” cuts are not reversed before the high-demand driving season in the US. S&P Global Commodity Insights expects near-term Dated Brent crude prices to peak in 2023 at around USD 90b, before easing to average USD 84d in 2023, marginally lower than last’s month forecast, followed by an additional gain of 1.9 million bd in 2023, up sharply from 350,000 b/d in 2022. The region is expected to account for nearly three-quarters of global oil demand growth in 2023, up from as little as 15% in 2022. Whether high prices can temper the region's growth revival story is a factor that policy makers will be watching closely. .
Axis Bank extends INR 1 billion loan to Muthoot Capital to accelerate e-mobility in India Private sector lender , has extended an INR 1 billion loan guarantee to non-bank lender , in partnership with , part of the Private Infrastructure Development Group (PIDG). This will empower the NBFC to on-lend customers in rural and non-metro regions in India, for purchasing electric two wheelers. “By promoting the , we are working to reduce emissions, enhance air quality and provide affordable and accessible transport solutions nationwide,”said Rajiv Anand, Deputy Managing Director at Axis Bank. “We have proactively scaled up our partnerships and engagements with EV dealers, manufacturers, and other players and will continue to do so. This collaboration not only supports the development of green infrastructure in India but also aligns with our broader vision of fostering an inclusive future where sustainable practices benefit all segments of society.’’ GuarantCo has provided a 65 % on-demand credit guarantee to Axis Bank for this transaction, which is part of a broader $200 million (EV) framework agreement signed by GuarantCo and Axis Bank. This framework was established to enable mobilisation of funds between USD 300 and 400 million for financing the in India. This collaboration with Muthoot Capital will focus specifically on providing transport solutions to rural and non-metro regions that predominantly consist of lower income populations that have historically been underserved. “Partnering with GuarantCo marks a significant step forward in accelerating the adoption of electric vehicles and advancing sustainable transport solutions in our country especially in the rural and semi-urban markets,” said Mathews Markose, Chief Executive Officer at Muthoot Capital. “This funding will enable MCSL to provide innovative and tailor-made financing options aimed at making electric vehicles more accessible and affordable to a wide range of consumers and businesses. We look forward to enabling the common man to own their own two-wheeler ensuring affordability and convenience. This will lend wings to our slated objective of growing our EV by INR 200 crores during FY25.” The transaction will benefit Indian companies operating within the EV ecosystem and is expected to impact local businesses in the supply chain, such as equipment manufacturers, vehicle dealers and insurers. This is GuarantCo and Axis Bank’s third transaction under the EV framework agreement. In December 2023, it had first enabled an INR 2.5 billion loan to Vivriti Capital for supporting the company’s expansion strategy in the e-mobility ecosystem of India. It had subsequently extended INR 1 billion loan to Everest Fleet for the purchase of electric cars to be deployed as low pollution emitting taxis in India. “This is the third transaction that we have closed under the agreement which after the ones that we closed with Vivriti Capital and Everest Fleet now total INR 4.5 billion,” said Layth Al-Falaki,
“This is the third transaction that we have closed under the agreement which after the ones that we closed with Vivriti Capital and Everest Fleet now total INR 4.5 billion,” said Layth Al-Falaki, CEO of GuarantCo. “This is also the first transaction under the framework which will cover the demand side of the EV business through the provision of credit so that customers can purchase electric vehicles. In addition, the transaction is expected to have a market transformation effect that we hope that it will help catalyse deployment of more electric vehicles in India. GuarantCo, through the Private Infrastructure Development Group, will continue to utilise the climate mitigation guarantee with Axis Bank to further the e-mobility ecosystem in India and to deliver against our climate action aims aligned with the PIDG 2030 strategy.”
Uber exits Zomato by selling 7.8% stake, two biggies buy stakes on Wednesday sold its entire 7.78 per cent stake in in a bulk deal on the in which two institutional investors - and - bought stakes in the new-age stock. Uber sold 61.22 crore shares of Zomato, that it had earned in 2020 by selling Uber Eats in an all-stock deal, today at a price of Rs 50.44 per share. Fidelity's emerging market fund bought 5.44 crore shares of Zomato today in the bulk deal at an average price of Rs 50.26. Life Insurance bought 4.5 crore shares at Rs 50.25 per share. Zomato's June quarter shareholding pattern shows that Uber owned 7.78 per cent stake in the company by owning 61.22 crore shares. Earlier in the day, Reuters reported that the list of buyers included around 20 global and Indian funds, including Franklin Templeton, in the transaction done through BofA Securities. Zomato shares have lost over 60 per cent of its value this year. The company reported Rs 185.7 crore in consolidated loss for the quarter ending June 30, compared to a loss of Rs 359.7 crore in the previous quarter. The consolidated revenue saw 67 per cent YoY increase at Rs 1,413.9 crore from Rs 844.4 crore in the same quarter last year. Zomato Co-founder and CEO Deepinder Goyal said they were never chasing growth at any cost. "Spending unnecessarily is a short-term market share gain tactic which does not really last and we do not want to chase that anymore," he told ET NOW. The company is now aiming EBITDA breakeven by the second quarter of FY24. Amid the large deals, Zomato shares slipped down by 9.6 per cent to the day's low at Rs 50.25, before closing flat. Uber's exit comes after the mandatory one-year lock-in for promoters, employees and other shareholders of Zomato who bought the stock before the IPO ended on July 23, 2021, ended recently. Earlier on July 26, Zomato's pre-IPO investor Moore Strategic Ventures had exited at a loss by selling 4.25 crore shares at an average price of Rs 44. While founder Deepinder Goyal owns only 4.69 per cent in Zomato, other large investors include Info Edge (15.17 per cent), Alipay (7.10 per cent) and Antfin (7 per cent). Retail investors, as represented by those with investments up to Rs 2 lakh in the stock, own about 4.4 per cent. With the drop in stock price, retail investors have been lapping up the stock. Giving Zomato's example, Zerodha CEO Nithin Kamath had recently said that every time the prices of retail favorite stocks fall, the number of investors who buy the stock goes up dramatically. "We saw this with Yes bank, Reliance ADAG stocks, and now with Zomato," he had said.
Why India needs a new fintech platform for MSMEs As India embarks on a journey to become truly self-reliant and ensure ‘ ’ becomes a reality, the manufacturing sector, especially the Micro, Small & Medium Enterprises ( ), will be the flag bearers of this movement. But, first, we must iron out the creases in their path and remove the bottlenecks. A jarring bottleneck is the lack of smooth access to credit and liquidity, disrupting the . MSMEs invest in raw materials and labor prior to manufacturing and subsequently have to provide 30-60 days of credit to their customers: delayed payments from customers risks derailing the execution for future orders. According to an article in the Economic Times last year, ‘MSMEs in India account for 99 per cent of all enterprises, comprising 63 million MSMEs across industries and geographical locations.’ The article further stated that a survey by amongst 1000 MSME entrepreneurs found that ‘70 per cent of them were adversely impacted during Covid-19 due to reduced orders, loss in business, availability of raw material and liquidity issues,’ essentially telling us why easier and credible sources of creditsupply chain and how to expand the scope of the financial products for them. Most lending by banksreceivables) and payments? The Trade Receivables Discounting System ( ) platforms have grown significantly over the last couple of years in the current landscape. However, they suffer from multiple issues that have limited their growth and restricted their reach. The Trade Receivables Discounting System (TReDS) platforms have grown significantly over the last couple of years in the current landscape. However, they suffer from multiple issues that have limited their growth and restricted their reach. These include not being a vendor first platform, restrictions on the type of anchors that can be onboarded, limited incentives for anchor to use the platform and allowing only banks to finance. In parallel, many new-age companies in partnership with new-age lendersbuyer’s treasury team and, thus, might see extensive participation from lender partners. In the case, when the anchor/buyer cannot participate, the participant lenders can finance the invoice by bidding for the invoice, making it transparent for the vendor to choose the offer and receive payment against the transaction. The entire point of the new platform with the features mentioned above is to ramp up its usage across vendors & buyers, thereby creating exponential value across the supply chain. (Amrit Acharya & Srinath Ramakrushnan are Co-Founders of Zetwerk Manufacturing Businesses)
Hero MotoCorp launches Voluntary Retirement Scheme (VRS) for its staff , world’s largest of , today launched a (VRS) for its staff, the company stated in a press release. "In keeping with the objective of building a robust organization in a rapidly evolving dynamic environment while retaining employee welfare at its core, Hero MotoCorp Ltd, the world’s largest manufacturer of motorcycles and scooters, today launched a voluntary retirement scheme (VRS) for its staff," the press release said. In order to promote empowerment and agility, the release claims that the VRS has been created in accordance with the mission to make the organization flexible and "future-ready" by consolidating responsibilities and removing layers. "We expect this to improve efficiency within the Company through a lean and more productive organization," stated the release. All employees are eligible for the VRS, which provides a package of benefits including, among other things, a one-time lump-sum payment, variable salary, gifts, medical insurance, the ability to keep the company car, relocation aid, career support, etc. "The general consumer sentiment is improving, as reflected in the in the month of March. The constructive policies of the government and the social sector reforms have given a further boost to the demand scenario and the two-wheeler industry expects these factors to contribute towards a double-digit growth in this financial year," the release added.
Insurer liable if driver dies when resting too: HC Bengaluru: If a driver on duty dies following a cardiac arrest while taking rest in his vehicle, the is not absolved of its liability to pay compensation on the grounds that the vehicle was not under usage, the Dharwad bench of the high court has observed. “Usage of the vehicle does not mean that at the time of his death, the driver needs to necessarily be driving. But in casual connection with his employment, he was sleeping in the truck and, while taking rest, suffered a heart attack,” Justice HP Sandesh noted in his order in reference to the death of one Eranna in 2008. A resident of Guledagudda in Badami taluk of Bagalkot district, Eranna was employed as a . He was taking rest near Idya village, Surathkal, by halting in the vehicle, when he suffered a heart attack and died. His wife Shankaramma then moved the commissioner under the . On August 20, 2009, an order was passed, directing payment of Rs 3,03,620 with 12% interest as compensation. The order was challenged by , the . The insurer contended that Eranna’s death was on account of cardiac failure. It said the owner had also lodged a complaint stating that the driver was in the habit of getting drunk and when he was consuming alcohol, there was no liability on the employer to pay compensation. The claimants argued that no material was placed regarding consumption of alcohol. Read More:
IRDAI applies brakes on vehicle insurers' misleading advertisements Chennai: Applying brakes on general insurers taking vehicle owners for a ride, insurance regulator on Thursday asked the industry to desist from issuing misleading advertisements. In a circular to the general insures, the Insurance Regulatory and Development Authority of India (IRDAI) has asked the insurers to discontinue the advertisements in respect of the services not related to insurance claims provided by motor garagespremium rates, and stop displaying of discounts/savings in premium applicable only under extreme or exceptional scenarios as examples. According to the IRDAI, general insurers issuing advertisements on free vehicle pick up and drop, body wash, interior cleaning, and others are not related to servicing of claims and should not be done. The regulator also said perusal of some advertisements of general insurers showing discounts and savings in premium can be achieved only in extreme or exceptional scenarios. It said such advertisements make prospective policyholders vulnerable for wrong understanding.
Tesla shares skid after China sales fell to the lowest level in over a year Shares in Tesla fell more than 7% on Monday after its sales declined in February in China, where it likely faced a slowdown during the Lunar New Year holidays. The fall in sales in its key market dimmed the outlook for Tesla's global deliveries, at a time when the top maker is battling a decline in demand and rising competition, and is weighed down by a lack of entry-level vehicles and the age of its product line-up. Tesla sold 60,365 China-made vehicles in February, down 19% from a year earlier and the lowest volume since December 2022, according to data from the China Passenger Car Association. Tesla's Shanghai factory makes Model Y and Model 3 electric cars for the local market, Europe and other countries, and accounted for over half of Tesla's global deliveries last year. ended down 7.2% on the day at USD 188.14, a slump of about 24% since the start of the year. China's Lunar New Year holidays fell in February, reducing car purchasing activities. Tesla has introduced a series of price cuts and incentives to fend off slowing demand and rising competition from Chinese rivals such as . "It's been a perfect storm of headwinds for Tesla in China. This was a negative data point that adds fuel to the fire around the stock," Wedbush analyst Dan Ives said. Last week, Tesla unveiled new incentives including insurance subsidies to woo consumers in the world's largest auto market. BYD on Monday launched a new version of its best-selling car at a price lower than the final price of its discontinued predecessor, escalating a price war with rivals. BYD also saw its sales fall 37% to 122,311 in February from a year earlier. In the United States, Tesla this month offered 5,000 free Supercharging miles to customers who trade in their older vehicle to get a new Tesla vehicle by March 31. In February, Tesla temporarily cut prices of some of its Model Y cars in the U.S. Analyst Troy Teslike revised down his forecast for Tesla global deliveries for the first quarter of this year, saying weaker-than-expected China sales despite a price cut suggested "a demand problem." In January, Tesla warned of "notably lower" sales growth this year as it focuses on the production of its cheaper electric vehicle.
Uber reports record ridership and second straight quarterly profit on Tuesday reported financial results that showed its business was continuing to steadily chug along -- and even turn a profit -- as more riders and drivers used its platform than ever before. The company had USD 9.3 billion in revenue in its most recent quarter, lower than Wall Street investors expected but an 11% increase from a year earlier, and generated USD 221 million in net income. That was Uber's second straight quarterly profit on the strength of its own business operations -- rather than from its investments in other companies -- a milestone for a company that had long faced questions about its profitability. Other technology companies have endured mass layoffs and nagging questions about their businesses during the recent economic downturn, but Uber has generally produced consistent, positive results over the last year. Its worst days came early in the pandemic, when travel ground nearly to a halt and drivers left the platform. The 6.5 million drivers who ferried passengers and food around the world in the past quarter was a record, Uber said. The company said improvements it had made to the driver experience -- such as showing drivers a passenger's destination and how much the driver would earn before accepting a ride -- had buoyed interest in working for Uber. Passengers took 2.4 billion trips on Uber in the quarter, a 25% increase from a year earlier. In October, Uber recorded a record number of monthly trips. "These results demonstrate that Uber continues to drive profitable growth at scale -- and why we believe we're well positioned for the journey ahead," , the company's CEO, said in prepared remarks. The biggest threat to Uber's business are labor disputes it faces around the country. Uber drivers are classified as independent contractors rather than employees, a distinction that saves the company money because drivers must pay their own expenses and are generally not provided health insurance or a minimum wage. Uber says drivers appreciate the flexibility of being independent, rather than having to sign up for shifts. In recent years, labor activists in states like Massachusetts, California and New York have tried to chip away at that business model, contending that it exploits drivers. A challenge to a California law that voters passed in 2020, giving drivers limited benefits but precluding them from being classified as employees, is set to be heard by the state's Supreme Court. If the court overturns the law, that will have significant ramifications for Uber's business. With its core business doing well, Uber is moving into other sectors and regions. said the company was making "good progress" in expanding into countries like Spain, Japan and Italy. It took Uber One, its monthly subscription service, to 18 countries last quarter and entered a partnership with Waymo, Google's self-driving car unit, to allow passengers in Phoenix to request Uber rides from
One, its monthly subscription service, to 18 countries last quarter and entered a partnership with Waymo, Google's self-driving car unit, to allow passengers in Phoenix to request Uber rides from autonomous vehicles. On a call with investors Tuesday, Khosrowshahi struck an optimistic tone about labor pressures. "We can operate under any regulatory framework," he said, but "most countries, most states are moving in the direction of flexibility plus benefits and protections."
Zoomcar Partners with ACKO Drive to increase car fleet New Delhi: Holdings, Inc., a leading marketplace for self-drive car sharing, has partnered with , a car buying platform by ACKO, to empower local Zoomcar Hosts to expand their car fleet. With this partnership, ACKO Drive is offering Zoomcar Hosts substantial savings of up to INR 85,000 on new car purchases along with attractive offers on car financing with instant loan approval, express car delivery and more. This partnership allows Hosts to expand their business presence and significantly increase their earnings, the company said. Zoomcar Hosts earned approximately USD 4 million according to Zoomcar’s Q3 2023 results, and are focused on making car hosting just as popular as car renting. ACKO Drive is pioneering the realm of online car purchases, helping customers enjoy the convenience of comparing models, selecting financing options, purchasing insurance, and accessing after-sales services, all in one convenient platform, the company said in a media release. Through this collaboration, ACKO Drive will facilitate easier access to Zoomcar Hosts by extending exclusive offers, which will further enable them to increase their earnings potential from car sharing. The partnership presents a significant opportunity for both new and existing Zoomcar Hosts to build and elevate their business operations, which will help cater to evolving consumer preferences with newer car models, the release added. Existing Zoomcar Hosts can seamlessly upgrade their existing fleet to meet the surging demand for diverse vehicle options. By embracing the latest models, Hosts can not only enhance their competitiveness but can also tap into the higher earning potential associated with newer and more attractive vehicles. "We are focused on providing higher quality experiences to our guests, and one of the biggest unlocks for an unparalleled self-drive experience is providing newer and wider car options,” said Zoomcar CEO and Co-founder Greg Moran. “Zoomcar aims to significantly grow the car-sharing marketplace, encouraging more Hosts to join and grow with the platform, and our partnership with ACKO Drive will play a significant role in providing enhanced affordability and choice.” , SVP, ACKO Drive, said, “Indians are exploring different ways of travel and experience, and Zoomcar Hosts fuels the passion in the individuals by providing a platform best suited for them. ACKO Drive specialises in the online car buying journey and with this partnership, we are confident that Zoomcar will enable the customers in utilising the car better that they own by hosting on the platform. Our association with Zoomcar is another step towards providing car enthusiasts the end-to-end support from ACKO Drive in their car buying journey with flexible financing options and suitable insurance solutions.”
Rising prices cap India's thirst for Russian oil Indian purchases of Russian crude in defiance of Western pressure over the Ukraine war have fallen to an 11-month low as the price tag on the discounted rises, figures show. Since the invasion of Ukraine nearly two years ago, India has bought hundreds of millions of barrels of cut-price Russian crude, saving itself billions of dollars while bolstering Moscow's war coffers. The purchases have catapulted it to second place among Russia's customers behind China, and Indian officials have made no secret of their decision to prioritise national interest over international sanctions against Moscow. But the price of Russian crude has risen in the face of OPEC+ production cuts and increased demand from China, analysts say, making it less attractive to Indian customers. Indian refiners bought 1.45 million barrels per day of last month, their lowest amount since last January and down nearly 16 percent from November, according to global energy trade intelligence platform Kpler. The "interplay between India and China" was a key driver of the change, Viktor Katona, lead crude analyst at Kpler told AFP, "as both countries now vie for the same barrels". The biggest beneficiary of the change is Moscow: Russian crude has been trading above USD 85 per barrel, reports say, even though a coalition of the G7, EU and Australia imposed a USD 60 price cap a year ago. New Delhi's reduced imports will be welcomed by some European policymakers who have raised concerns over how Indian refiners have processed Russian crude into fuel for the European market, effectively bypassing the EU's sanctions. New Delhi and Moscow have ties dating back to the Cold War, and Russia remains by far the biggest arms supplier to the world's most populous country. India has shied away from explicit condemnations of Russia over its invasion of Ukraine, even as it pursues greater security ties with the United States. But instead of following in the West's footsteps, it has doubled down on its historical partnership with Russia to secure cheap energy, to help it boost growth without running up its fiscal deficit. Russia has become India's top oil supplier, overtaking the traditional heavyweight Middle Eastern exporters, and remains so by a distance despite the recent falls. India is the world's third-largest importer and consumer of oil, and imports nearly 80 percent of its needs. In the 10 months after Russia invaded Ukraine, India saved USD 3.6 billion by importing heavily discounted crude from Russia, according to data presented by a ruling party lawmaker in parliament. The country's imports of Russian crude peaked in June 2023 at nearly two million barrels per day, but have steadily shrunk since. Government officials say the change is purely pragmatic and price-driven, rather than political. "If they don't offer us a discount, why would we buy from them," Indian oil minister Hardeep Singh Puri told reporters last week. "India's leadership has
and price-driven, rather than political. "If they don't offer us a discount, why would we buy from them," Indian oil minister Hardeep Singh Puri told reporters last week. "India's leadership has only one requirement: that the Indian consumer gets the energy at the most economical price, without disruption," he added. Indian refineries paid an average USD 85.90 a barrel for Russian crude in November, according to a Bloomberg analysis of government data, just above the USD 85.70 offered by Iraq, and over USD 25 higher than the G7's price cap. Moscow is itself looking to shore up its oil revenues. In May, Russian Finance Minister Anton Siluanov blamed "all these discounts" for a 50 percent fall in its energy revenues. Yale professor Jeffrey Sonnenfeld, who has advised the US Treasury on the price caps, told AFP there had been some "reduction in the efficacy of the price cap", but said it was still driving up Moscow's shipping and insurance costs. Indian officials admit there have been logistical challenges. New Delhi and other customers of Russian oil prefer to avoid paying for it in US dollars as doing so could open them to secondary sanctions. Last month, state-run Indian Oil Corporation agreed to buy Sokol-grade oil from the Russian Pacific island of Sakhalin in UAE dirhams, an Indian government official told AFP. But the deal ultimately did not go through because the Russian oil supplier was unable to open a UAE bank account to accept the currency, he said. The shipment changed destination on the high seas and now appears to be en route to a Chinese refiner, according to an assessment by energy trade platform Vortexa. China remains Moscow's biggest oil customer and tracking data from Kpler shows that over the last two months, 10 tankers of Sokol cargoes that were headed for Indian destinations either changed course or idled abruptly. But minister Puri insisted payment problems were not driving the import drop, saying: "It is a pure function of the price at which our refineries will buy."
As automobile market gets stronger, the paints industry to ride the boom: Nippon Paint India president Sharad Malhotra NEW DELHI: The market for automotive paints had gone down during the period of Covid lockdowns and restrictions, but has come up strongly as buying picked up as industry opened up and businesses and schools started coming back to pre-pandemic levels. Led by the resurgence, the automotive paints industry sees a healthy growth over the coming years, with a forecast of 30% CAGR between 2021 -2026. TOI speaks to , and president at . The company has also launched a new pan- initiative towards uplifting, rewarding, and recognizing the garage painter community and identify India’s top car painters. Excerpts: How do you see the market for Automotive Paints & Coatings market in India? While the demand had been suppressed over the last few years, the current year can be pivotal for India’s automotive paints market in terms of growth & development. With the Covid situation stabilising, and a build-up of favourable market scenario across the automotive sector, the paints market is also expected to witness a decent growth. In terms of business value, we expect to hit pre-pandemic levels soon. India’s automotive paints market is exhibiting a lot of positive trends due to initiatives such as the scrappage policy and also changing market dynamics. The industry is estimated to grow at a CAGR of over 30% between 2021 -2026. What are your views on India’s automotive after-market? Over the past couple of years, India’s automotive industry has experienced a sharp rise in the sale of second-hand or used vehicles. The market for used vehicles is expected to take over the driver’s seat as we move ahead. As per a recent industry estimate, the used car market in India is expected to reach a volume of 70 lakh units in 2025-26, from 38 lakh units in 2020-21. This sharp growth across the used vehicle segment will further trigger the growth of automotive paints and consumable solutions. What are some of the global trends that have started to make their way into India’s automotive paints and coatings market? If we talk about the Commercial Vehicles segment, the Indian coating industry is quite ahead of many Asian counterparts and is gradually catching up with the European markets as well. The latest technologies that we have observed within the market have largely been dedicated towards higher productivity solutions like the Wet-on-Wet (WoW) systems that are available in some European markets too. The emergence of new technologies and trends is further enabling companies to reduce the processing time, while increasing the overall productivity. On the products side, more focus is coming on Low VOC or Water-base systems which are more environmentally friendly and sustainable for the ecology. Can you share a brief about ’s product portfolio here in India? We have an extensive and wide portfolio, comprising several products and solutions. Our range includes
and sustainable for the ecology. Can you share a brief about ’s product portfolio here in India? We have an extensive and wide portfolio, comprising several products and solutions. Our range includes new-age technology-based paint solutions such as WoW primers, direct-to-metal (DTM) coatings, fast drying clears, and the scratch-resistant and self-healing protective finish. Our WoW systems offer higher productivity than conventional systems which in turn saves cost as well improves overall productivity of the finish. Being one of the largest producers of paints and coating solutions for commercial vehicles, what benefits does Nippon offer to the users? Our expertise in being “Paint Process Specialists” has enabled us to provide solution-based resolutions to our customers' coating dilemmas. With the help of technology and core R&D, our products have been able to offer customers paints and coating solutions which are more durable and provide a premium quality finish. We also offer solutions that are beyond paints and have actively assisted to design painting line/ system in production workshop. What are some of the new-age solutions introduced by Nippon in India? R&D plays a pivotal role at Nippon Paints. We have an independent and dedicated R&D team in India and are now well on our way towards achieving “Atma Nirbharta", or self-reliance, with major solutions being customized and indigenously developed locally. Various paint solutions such as the stain-free solution – that restores the original finish in extreme and diverse Indian climatic conditions -- are some of the few paint innovations that have been indigenously-developed here. What are your views on the PLI scheme and how important has this intervention been from the industry’s point of view? Keeping in mind the ongoing exodus of OEMs from China, the introduction of production-linked incentive (PLI) scheme has been a game changer for India’s automotive industry. The PLI incentives will help attract several OEMs to come and set up their base here, turning India into a hotspot for automotive manufacturing. Owing to the availability of cheap labor, land and investment-friendly policies, the industrial segment in the Indian subcontinent is poised to experience an upswing. We have already witnessed several companies shifting their base from China to India, especially a lot of OEMs and electric vehicle manufacturers. This will have a ripple effect across India's industrial coating market as well. How has the Covid pandemic impacted the automotive refurbishing business in India and what sort of recovery have you observed so far? As public transport stopped during lockdowns, the production of school and luxury buses came to a standstill along with the reduction in consumer demand for passenger vehicles. This had an adverse effect on India’s automotive paints and coatings industry. Owing to the Covid-induced lockdowns and challenges, the industry observed its first revenue de-growth of the decade.
This had an adverse effect on India’s automotive paints and coatings industry. Owing to the Covid-induced lockdowns and challenges, the industry observed its first revenue de-growth of the decade. As per estimates, the demand for automotive paints and coating solutions went down by almost 50% during this period. However, in the last quarter of 2021, we observed various OEMs and affiliates getting back with orders with encouraging movement along the production line. Various state transport departments are also in a revival mode, as they launch tenders for new buses and maintenance of the existing ones. India’s automotive painters were among those who were the hardest hit during the pandemic. What are your initiatives to help them tide over the difficult period? The pandemic-induced lockdowns were indeed quite harsh for the painter community and especially when it comes to the automotive refurbishing industry. To help them, we have launched a unique, pan-India program called ‘Rangon Ke Badshah’ that aims to uplift, reward, and recognize the garage painter community and identify India’s top car painters. We are connecting over 10,000 car painters across the country through a nationwide outreach programme which includes skills contests, loyalty benefits as well as benefits like accidental insurance, education grants for children and other rewards.
Tesla customer waiting for Model X refund for over 2 years San Francisco: Taking advantage of Tesla's seven-day, no-questions-asked return policy at the time, a customer who returned his in early 2020, is still making payments on a $116,000 vehicle that he does not possess from past two years. Danny Roman bought a new car and took delivery of the car on February 28, 2020. Three days later, he informed the company he was returning the electric SUV under the seven-day, no-questions-asked policy, which Tesla CEO was touting at that time, CNBC reported on Saturday. And since Tesla took possession of the car, he still does not have his refund or access to the vehicle, the report said. Records indicate that Tesla did pick up his Model X, loading it onto a tow truck on March 8, 2020, after which he expected his refund to arrive promptly. His bank advised him to ask the EV maker to initiate a "stop sale," he recalls, and then his Tesla sales representative informed him that his refund would be processed soon. Instead, several weeks later, he received a service alert from Tesla telling him to come to pick up the electric SUV. The alert explained that it had been repaired and was in a service center in Burbank, California, although he had originally purchased the vehicle in Century City, about a 40-minute drive away. Roman told CNBC he was astounded by the service alert. He said he never asked for nor authorised any repairs and that Tesla has previously acknowledged he was returning the car. Roman stopped making payments on the car for a month because he thought everything was moving along properly, the report said. Then the bank told him that he had missed a payment and that his credit rating had taken a 30-point hit. When he called to ask about it, he was told Tesla had not issued the stop-sale. Roman said he needed to maintain a strong credit rating. So given Tesla's stubborn stance on the Model X, he decided he had no choice but to keep making car payments to his bank and to pay to keep the car insured. As a result, for the last two years, Roman has been making payments on a car that he does not possess. Tesla did not respond to a request for comment on their customer's predicament. Roman said he bought the car because he was a fan of Tesla, read that the Model X had a great safety rating, and believed driving a battery would minimize the environmental footprint of his personal transportation. As the owner of a sustainable outdoor adventure company, he felt that buying a battery-powered electric car was a good way to underscore that commitment. However, he was not satisfied with the performance. Also Read:
Castrol, Mahindra Insurance Brokers announce alliance for Castrol Auto Service Workshops New Delhi: India Limited, India’s leading lubricant player, has signed an agreement with (MIBL), a prominent insurance brokerage firm. Castrol Auto Service (CAS) workshops will now have an option to empanel themselves as POSPs ( ) for distribution of eligible insurance policies from India’s leading motor insurance providers through MIBL. The CAS workshops can offer automotive insurance products via a digital platform in addition to repair and maintenance services for their customers’ vehicles. , Managing Director, Castrol India Limited, said, “As the automobile industry sees significant growth, with India being the fourth largest automobile market, vehicle insurance has seen unprecedented growth. This potential gives us confidence in this alliance with Limited to further empower our CAS workshops to reach more customers. It also represents a significant milestone in our service and maintenance strategy, as it will undoubtedly enhance the capabilities of our network workshops and ensure that they are capable of providing exceptional or enhanced value to their customers”. "Vehicle insurance accounts for a high 34% of the non-life insurance premiums in India (according to market studies), and presents an opportunity in a growth market. This collaboration with Castrol India, helps scale our reach, and assist these workshops in becoming POSPs with leading insurance companies on our panel, thereby empowering them to offer cashless services and generate incremental business through accidental repairs. Together with Castrol, we are committed to establishing the CAS workshops as trusted service providers in the automotive industry," , Managing Director and Principal Officer, Brokers, said. This alliance provides CAS workshops an opportunity to expand their customer base and offer value added services, resulting in higher customer satisfaction. Overall, this association aims to support CAS workshops in establishing themselves as trusted service providers in the automotive industry.
Auto companies donate and launch services to tide over damage caused by Cyclone Michaung Auto giants have donated towards relief funds or are providing customers with services in order to help them after the flooding and damage caused by in Tamil Nadu. said it has donated Rs 3 crore to the Chief Minister’s Relief Fund which will be used to provide necessary flood relief and support for the communities that have been badly affected by the cyclone The two-wheeler company said it is committed to helping the displaced rebuild their lives and to support the immediate relief and rehabilitation work being done by the government. “The floods have unleashed severe hardship on the community, and we would like to do our part to support the community," Sudarshan Venu, Managing Director, said in a statetement. “This will augment the tireless efforts of the government and the resilient people of Tamil Nadu to restore normalcy.” It added that it would also offer additional service support for its customers in the flood hit districts of Tamil Nadu. , the flagship commercial vehicle manufacturer of the Hinduja Group also donated Rs 3 crore to the CM's Relief Fund towards relief work and humanitarian aid for the flood-affected areas in the aftermath of cyclone. “We are deeply saddened by the havoc caused by the cyclonic storm and the incessant rains that has affected the life of many people in and adjoining districts," Shenu Agarwal, Managing Director & CEO, Ashok Leyland, said. "Ashok Leyland has always been supporting the initiatives taken by the Government during any such calamity and we stand committed to continue this support this time as well." Apart from donations, other companies like Suzuki Motorcycle, Motor India and announced service offerings meant to help those in such regions. Nissan Motor India announced a comprehensive package of support services for customers with Nissan cars impacted by Cyclone Michaung in Chennai. The company announced initiatives like a special helpdesk and call centre to assist Chennai flood-affected vehicle customers. It said customers can reach out for support by contacting the call centre at 18002093456 or connect with the nearest Nissan service centre. Further, it said it would provide free towing vehicles support through its Roadside Assistance (RSA) service as well as providing claim filing assistance wherein channel partners will pay the fees for filing an insurance claim, up to Rs 1000/- for their customers. In addition to this, Nissan said Chennai customers can avail a 10% discount on the floor carpet replacement during service for the next two months as well as having all Nissan workshops in Chennai operate with extended working hours, from 8:00am to 8:00pm. The company also said its customers in Chennai can avail a 10% discount on the engine oil and filter replacement service for the next two months. Tata Motors too said the company has implemented a comprehensive service plan which will be available across the Tata
on the engine oil and filter replacement service for the next two months. Tata Motors too said the company has implemented a comprehensive service plan which will be available across the Tata Motors passenger vehicles and electric vehicles range. The services include the company extending the Standard warranty period, extended warranty period, annual maintenance contract period, and free service period* for vehicles in the affected region. This extension applies to contracts expiring between 01.12.2023 to 15.12.2023 and will be valid until 31.12.2023. Tata Motors also said a dedicated emergency road assistance team has been established to handle cases, prioritizing them based on customer call dates and area accessibility. It has also activated a 24×7 helpdesk which is reachable at 1800-209-8282 to assist customers in distress. Customers can also avail towing support to the nearest dealership. Tata Motors' support initiatives will remain available until 31.12.2023. Suzuki Motorcycle India, the two-wheeler subsidiary of Suzuki Motor Corporation also announced free service support for its customers in the city. The company said it has activated its Dealer Network in Chennai and other affected towns assist the customers with a free comprehensive checkup of their flood affected vehicles. Furthermore, the company said it will also support in free replacement of specific consumables – engine oil, engine oil filter, air filter, fuel filter, & spark plug in case if they have been impacted by the flood. These services are open to Suzuki Motorcycle customers in Chennai till end of the month. “As a measure to mitigate impact this may have had on some of our customers’ vehicles, we have announced a Special Service Campaign under which we are offering a comprehensive check-up apart from substantial support on labour and spare parts depending upon the severity of the impact each vehicle has had to withstand,” Kenichi Umeda, Managing Director, Suzuki Motorcycle India said.
Tall trucks, SUVs are 45% deadlier to US pedestrians, study shows and sport utility vehicles with hood heights greater than 40 inches are about 45% more likely to cause fatalities in pedestrian crashes than shorter vehicles with sloped hoods, according to new research from the Insurance Institute for Highway Safety. Prior studies have shown SUVs and pickups are linked to higher fatality risks in pedestrian crashes. But the new study focused on the risks posed by vehicles with hoods taller than 40 inches using data from nearly 18,000 crashes. Tall, squared-up hoods are signatures of some of the best-selling and most profitable vehicles sold in the United States such as the Ford Super Duty pickup, the and other large SUVs. The rise in pedestrian deaths has outpaced the increase in overall US traffic deaths since the easing of pandemic lockdowns. The number of pedestrians killed in 2021 jumped 13% to 7,342, the highest since 1981, while the number of people on bicycles killed rose 5% to 985, the highest since at least 1975, the National Highway Traffic Safety Administration said. Since reaching their lowest point in 2009, pedestrian deaths have increased 80% and account for 17% of all traffic deaths. The Insurance Institute, an arm of the US insurance industry, has no regulatory authority. But its studies are influential in the industry and with regulators at the National Highway Traffic Safety Administration. The IIHS study found that vehicles that are tall and blunt, such as a large pickup truck, are 43.6% more likely to cause death in a collision with a pedestrian. Vehicles with tall and sloped hoods are 45% more likely to cause a pedestrian fatality, while medium-height vehicles with blunt front ends, such as a Mazda CX-9 or a Chevrolet Colorado pickup, are nearly 26% more likely to kill a pedestrian, based on the Institute's analysis of crash data. "Automakers can make vehicles more pedestrian friendly by designing vehicle front ends that are lower and more sloped. The National Highway Traffic Safety Administration can consider evaluations that account for the growing hood heights and blunt front ends of the vehicle fleet in the New Car Assessment Program or regulation," the IIHS study said. US vehicle fuel efficiency standards administered by NHTSA have encouraged automakers to build larger vehicles. The bigger the vehicle, the lower the fuel efficiency target it has to meet. US Transportation Secretary Pete Buttigieg has called the rise in traffic deaths "a crisis." The Biden administration this year allocated USD 800 million to infrastructure improvements aimed at improving vehicle and pedestrian safety.
Bike Bazaar raises Rs 170 crore led by Women’s World Banking Management said it has raised of equity funding led by Women’s World Banking Asset Management (WAM) with participation from existing investors including and Faering Capital. Elevar was the early investor in Bike Bazaar and continues to hold the largest stake in the business. The company intends to use the funds to increase its business in rural India and also scale its marketplace business for the sale and purchase of used two-wheelers. Founded in 2017 by former executive Srinivas Kantheti and former executive Karunakaran Vadakkepat as a used two-wheeler financing business, Bike Bazaar has now several businesses within the two-wheeler segment including new two-wheeler financing, a marketplace for pre-owned two-wheelers, and a new electric vehicle financing business besides additional services like insurance. It will add servicing as well, officials said. The founders have spent decades in automotive and its associated financing space before starting up. “Our strategy is to be present across the whole lifecycle of the two-wheeler,” Vadakkepat said. “For example, someone who is looking to buy a two-wheeler may want to exchange his old two-wheeler. He can avail of both the financing services and the resale service from us. We should be able to sell that old vehicle through our marketplace, or different pre-owned sales channels. We want to add value-added services like RTO transfers, insurance, etc, and over time we want to add services also. Actually, we want every business to feed on the other business so that we can leverage costs.” He said the company is in talks to raise another Rs 80 crore and is also in advanced stages of talks with a global investor to raise a Rs 200-250 crore funding round specifically for its EV business. ET had reported on August 19 that mainstream venture capital investors are turning to the EV startup space even as funding has slowed down in the larger startup ecosystem. Vadakkepat said the company is still figuring out how to structure the company to accommodate the funding specifically for the EV business. Bike Bazaar claims to have a significant presence in smaller towns and operates in more than 140 cities across India with over 1,000 touchpoints. Its financing business has disbursed more than 3,00,000 two-wheeler loans till date and as of July 2022 it had done business with a cumulative gross transaction value of more than Rs 1,500 crore. Since its inception, the company has raised a total of Rs 400 crore in equity funding. Vadakkepat told ET that the company’s customer base includes people who are in professions like plumbing, carpentry, and household work, and these people lack the requisite financial literacy to avail of credit and other facilities. Bike Bazaar has set up multiple cash collection points to ensure repayment of the loans. Bike Bazaar partners with multiple banks and NBFCs through which it issues loans. The startup typically will have 20%
has set up multiple cash collection points to ensure repayment of the loans. Bike Bazaar partners with multiple banks and NBFCs through which it issues loans. The startup typically will have 20% exposure to these loans, Vadakkepat said. “Women's World Banking is dedicated to women’s economic empowerment and WAM is investing in Bike Bazaar’s demonstrated potential to provide accessible and affordable two-wheeler finance to financially underserved women in India, simultaneously enabling their mobility and developing their asset bases and credit profiles,” said Christina Juhasz, chief investment officer of Women’s World Banking Asset Management. WAM is funded by the German government’s Federal Ministry of Economic Cooperation and Development and The European Union.
Auto sales in May 2022: All segments move up from the pandemic-marred low base of May 2021 New Delhi: The good news is that all segments of the automobile industry were in the green in May 2022. This comes after a long time and looks like a real relief. But the not-so-good news is that the manifold sales growth for the OEMs comes from the low base of May 2021, when the country was under the impact of the second wave of Covid-19 pandemic and states were under lockdown. The following is a segment-wise report of vehicle despatches to dealers during May 2022. Passenger vehicles For the passenger vehicle segment in May 2022, there were production constraints owing to the semiconductor shortage. An average vehicle had a waiting period of 6-8 months, for specific variants even of a year. The country’s largest carmaker Maruti Suzuki reported a growth of 278% in its domestic sales to 124,474 units in May 2022. The company had recorded sales of only 32,903 units in May 2021. In the mini cars segment (Alto, S-Presso), the company clocked sales of 17,408 units, followed by compact cars (Baleno, Celerio, Dzire, Ignis, Swift, Tour S, WagonR) to 67,947 units and of 586 units of the mid-size Ciaz. Sales of utility vehicles namely Ertiga, S-Cross, Vitara Brezza and XL6 clocked 28,051 units while the Eeco van reported sales of 10,482 units in May 2022. “The sales figures of May 2022 are not comparable with that of May 2021 as the operations of the company then were badly affected by Covid-related disruptions,” the carmaker said in a statement. Interestingly, auto major Tata Motors moved up to the second spot during the month and Hyundai India stood third. Hyundai informed that the company’s plants in Chennai were shut down for the scheduled biannual maintenance, leading to 6 no-production days from May 16 to 21. This reduced the vehicle availability in the month, thus affecting May 2022 sales numbers (both domestic and exports). However, this was the second time in six months that the maker of Nexon beat Hyundai India by jumping up one step. Tata's ICE vehicle sales stood at 39,887 units and EV sales crossed the 3,000-unit mark to clock 3,454 units. In December 2021, Tata Motors sold 3,000 units more than Hyundai India. In May this year the difference was only 1,000 units. Meanwhile, the volume gap between the third and the fourth carmaker has been widening over time. For May, Mahindra’s wholesales were around 20,000 units behind. Veejay Nakra, President, Automotive Division, M&M Ltd, said, “With sales of 26,632 SUVs in May, we continued the growth momentum with all our brands performing well including XUV700 and Thar.” Kia India continued to maintain its position as the top 5 carmaker for May by selling 7,899 units of Sonet, followed by 5,953 units of Seltos, 4,612 units of Carens and 239 units of the Carnival. The company also dispatched 15 EV6 units last month to dealerships as display cars. Skoda said Slavia and Kushaq models contributed the most to its sales

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