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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 growth. Two-wheelers The two-wheeler segment, which has been growing sequentially each month, has shown robust year-on-year growth in wholesales during May 2022. However, it may be noted that the growth comes on low base of last year. During the second wave of COVID-19 in India last year, the rural income was the worst hit which adversely impacted the consumer demand and sentiments for these vehicles in May 2021. Going forward, the motorcycles and scooters segment is expected to see a positive trend due to the opening up of educational institutions and offices, excise duty reduction on fuel and the prediction of a normal monsoon. However, the sales volumes for two wheelers are far from normal and the recent hike in third-party insurance rates may add to this. Rohan Kanwar Gupta, Vice President, Corporate Ratings, ICRA, says, “Domestic 2W industry volumes contracted for a third consecutive year in FY2022, with the consumer sentiments remaining muted. The cost of ownership of a two-wheeler has been steadily increasing over the years, thereby impacting affordability. OEMs have been forced to hike prices on account of multiple factors – raw material hardening, transition to stringent emission norms and changes mandated by regulations, especially with regards to safety standards." "In FY2022, even as there was no impact of regulatory notifications on prices, the OEMs had to pass on raw material hardening impact through multiple price hikes. As a result, enhanced cost of acquisition coupled with heightened crude prices have led to a significant increase in the cost of the ownership," he said. The country’s largest two-wheeler maker Hero MotoCorp clocked 4,52,246 unit motorcycle sales and 34,458 unit scooter sales in the domestic market during May 2022. The company said it expects to see a positive trend in the coming months, on the back of normal monsoon, decent Rabi harvest and continued government policy support. Vikram Kasbekar, Executive Director, Hero MotoCorp, said, "We welcome the recent decision of the government to reduce the central excise duty on petrol and diesel, which has substantially brought down the fuel costs, thereby providing a much-needed relief to motorcycle and scooter users in the country. We also welcome the steps taken to cut duties on iron and steel inputs, which should help in softening steel prices in the domestic market.” “The increase in the third-party insurance rates would, however, adversely impact customer sentiments as this will further increase the upfront costs of two-wheelers in India. It is not usual to have insurance paid for 3-5 years instead of annual renewals, as is generally the case in many countries. The industry seeks government intervention and support in this regard," he added. Honda Motorcycle & Scooter India
3-5 years instead of annual renewals, as is generally the case in many countries. The industry seeks government intervention and support in this regard," he added. Honda Motorcycle & Scooter India (HMSI) also said that the sales figures this month remain incomparable with May 2021 as frequent lockdowns in the wake of the second wave of Covid-19 marred the performance during this period last year. "Growth in domestic as well as international trade continues to complement each other as we approach an early monsoon." Atsushi Ogata, Managing Director, President & CEO, HMSI, said, “The market is regaining strength as disturbances in terms of supply side are subsiding coupled with rise in physical presence at office and educational institutions.” TVS said its domestic two-wheeler sales included TVS iQube Electric sales of 2,637 units in May 2022. Its motorcycle sales grew from 125,188 units in May 2021 to 148,560 units in May 2022. Scooter sales of the company grew from 19,627 units in May 2021 to 100,665 units in May 2022. “The shortage in the supply of semiconductors has impacted production and sales of premium two-wheelers,” the company said. According to ICRA, the increase in third party insurance premiums is unlikely to materially impact 2W demand as the rates have been hiked for the premium category (15%-21% increase for >150 cc category), while there has been no increase for the entry-level motorcycles and scooters (75 cc-150 cc), the largest segment by volumes in the domestic market (~89%). "Given the fact that the increase in road price for the premium segment on account of the rate hike is also not significant (<1%); the rate hike is unlikely to have a major impact on consumer sentiments and comes as a relief for the industry, which has been grappling with muted demand," it said. Commercial vehicles and three-wheelers The country’s largest commercial vehicle maker Tata Motors reported highest sales for the SCV cargo and pickup segment at 14,899 units in May 2022. The auto major’s M&HCV category clocked sales of 8,409 units, I&LCV category of 4,474 units and passenger carriers of 3,632 units. For Mahindra, LCVs of 2T-3.5T clocked the majority sales of 17289 units in May 2022. This was followed by three-wheeler sales at 3645 units, LCVs less than 2T at 3228 units and LCVs over 3.5T and MHCVs at 632 units. Veejay Nakra, President, Automotive Division, M&M Ltd, said, “Our Commercial Vehicles have also registered strong growth across segments. We are closely monitoring the supply chain related issues, which continue to constraint volumes and are taking appropriate actions to mitigate the impact.” Tractors Hemant Sikka, President, Farm Equipment Sector, Mahindra & Mahindra Ltd,. said, “With the timely arrival of the south-west monsoon and forecast of a normal monsoon, kharif crop is expected to deliver record production. Food prices continue to be high, ensuring better remuneration for farmers for their produce, creating a positive sentiment and
a normal monsoon, kharif crop is expected to deliver record production. Food prices continue to be high, ensuring better remuneration for farmers for their produce, creating a positive sentiment and higher demand for tractors and agri implements. In the exports market, we have sold 1569 tractors, a growth of 17% over last year. “We see rural sentiment gradually improving in spite of low crop yields due to extreme heat conditions this harvest season, on account of better crop price realization and forecast of normal rainfall and possible timely sowing this year. With the recent Government actions, inflation may stabilise in the near-term and operating leverage may further possibly help in partially diluting the impact on margins in the coming quarters,” Escorts said. According to Mitul Shah, Head of Research, Reliance Securities, "Domestic tractor industry grew by 47% YoY(down 8% MoM) to 81.9K units, stronger than our expectation of 40% YoY growth (as against consensus estimate of 15-20% growth) as large player like M&M reported much stronger growth. Overall performance was supported by inventory built up to some extent, while retail was reasonably strong despite wheat export ban." He said, “We expect a double digit decline in industry volume in Jun 2022 due to high base, elevated inventory level and lag effect of export ban. We would be monitoring the situation closely in terms of upcoming monsoon timing as well as its distribution in coming months to judge full year tractor industry performance, as monsoon has high correlation. At present, we expect flat volumes in FY23E for the tractor industry.” (This is a developing story. We will keep updating the numbers as the OEMs release their sales data.) Also Read:
Russian oil influx boost storage fees at Fujairah to record highs Large inflows of oil and refined products have boosted tank storage demand at the United Arab Emirates' , pushing storage fees at the transit and blending hub to all-time highs in the first quarter, industry sources said. The European Union banned imports of Russian crude and oil products in December and February, respectively, forcing shipments to head elsewhere. Restrictions on access to Western insurance and ships have made some traders blend Russian crude with other supplies at storage hubs like Fujairah before re-exporting it. Fees for oil storage tanks at Fujairah jumped to as much as USD 12 per cubic metre in the first quarter, a record high, several people with knowledge of the matter said, though the levels vary depending on the type of cargo. In comparison, the rates in Singapore are at about USD 7 per cubic metre, they added. Storage capacity at terminals in Fujairah has been fully leased out, sources said. Robust storage demand is lifting revenues of operators such as Vopak, Vitol's VTTI, Emirates National Oil Company and Abu Dhabi National Oil Company. "The hub of Fujairah has become key to Russia's efforts to divert its oil product exports away from traditional U.S. and EU markets towards those in the Middle East and Asia," said Roslan Khasawneh, a senior fuel oil analyst at Vortexa. STORAGE ASSETS IN DEMAND Demand for storage space is also attracting buyers for these assets. One of these assets is the terminal owned by Group. Located in the Fujairah Oil Industry Zone adjacent to the port, the terminal can hold about 465,000 cubic metres of refined products including naphtha, gasoline and fuel oil. The company is evaluating expressions of interest from potential buyers received in the fourth quarter last year, said Tyler Baron, the chief executive officer of Minerva Bunkering which operates the terminal. "We've used the asset in part to support the Minerva business, but also to lease capacity out to third parties. So it's not strategic or requirements for us to own the terminal to support the bunkering business locally in Fujairah," he said. GP Global's terminal at Fujairah was recently sold for about USD 124 million, industry sources said. Over the years, Fujairah has expanded as a popular transit point for storage, blending and ship-to-ship transfers, due to its convenient location near the entrance of the Strait of Hormuz. Fujairah's onshore refined product stocks were at 21.34 million barrels (3.36 million tonnes) in the week to March 20, based on data from the Fujairah Oil Industry Zone. The port is also the world's third largest bunkering hub, with 2022 bunker volumes at about 8 million tonnes.
Tesla 'silent'; yet to communicate its India plans: Official is 'silent' and yet to communicate its plans to the under the new , an official said on Friday. American tech billionaire , who was scheduled to India on April 21-22, had postponed his visit at the last moment citing "very heavy obligations". Musk, CEO of , was also slated to meet Prime Minister Narendra Modi during the visit. "They (Tesla) are just silent.. the (EV) policy was always meant for everybody," the official said when asked whether the company has communicated its plans to the government. The commercial decisions are announced by the companies, the official added. An e-mail query sent to Tesla remained unanswered. Earlier in April, he confirmed his visit to India in a post on X saying, "Looking forward to meeting with Prime Minister @NarendraModi in India". In June last year, Musk met with Modi during the latter's US visit and stated that he planned to visit India in 2024 while expressing confidence that Tesla would enter the Indian market soon. His proposed visit had raised expectations that he would announce plans for Tesla to set up shop in the country, along with his satcom venture . It was expected that Musk would announce plans for Tesla to set up its in India and investments for the same that could be billions of dollars and the way forward for selling Tesla electric cars in India at the earliest. Not just electric cars, he is also eyeing the Indian market for his satellite internet business Starlink, for which regulatory approvals are awaited. Musk had in the past called for import duty reduction in India to be able to sell Tesla cars in the country. His planned visit to India came weeks after the government announced a new policy under which import duty concessions will be given to companies setting up manufacturing units in the country with a minimum of USD 500 million, a move aimed at attracting major global players like Tesla. Last month, an advisor representing Tesla -- The Asia Group (TAG) attended the first stakeholders' meeting on the new EV policy, along with those from Vietnam's EV maker VinFast and all the major manufacturers in India, including , , , , , Skoda Auto Volkswagen India, Renault, Mercedes-Benz, BMW and Audi. The stakeholder consultation meeting was aimed at seeking inputs for the guidelines to be framed for the new EV manufacturing policy. As per the policy, the companies that would set up manufacturing facilities for EV passenger cars will be allowed to import a limited number of cars at lower customs/import duty of 15 per cent on vehicles costing USD 35,000 and above for five years from the date of issuance of the approval letter by the government. At present, cars imported as completely built units (CBUs) attract customs duty ranging from 70 per cent to 100 per cent, depending on the engine size and cost, insurance and freight (CIF) value. CBUs whose CIF value is more than USD 40,000 attract a 100 per cent import duty (for petrol engines
per cent to 100 per cent, depending on the engine size and cost, insurance and freight (CIF) value. CBUs whose CIF value is more than USD 40,000 attract a 100 per cent import duty (for petrol engines size more than 3000 cc and diesel engines of size more than 2500 cc). Whereas those with CIF value under USD 40,000 attract 70 per cent duty (for petrol engine sizes under 3000 cc and diesel engine sizes under 2500 cc). The new EV policy seeks to promote India as a manufacturing destination for EVs and attract investment from reputed global manufacturers. Last year, Tesla approached the Indian government seeking duty cuts to import its vehicles in India.
Audi Q7 receives 2023 IIHS Top Safety Pick+ award The US-based (IIHS) has reported that the Audi Q7 has earned the 2023 TOP SAFETY PICK+ award, making it the sixth Audi model to achieve this prestigious accolade. To receive this award from IHS, a vehicle must attain acceptable or good ratings for all available headlight options. The Q7 meets this requirement, garnering an acceptable or good headlight rating for all three lighting choices for vehicles produced after February 1, 2023. The models honoured with the IIHS 2023 TOP SAFETY PICK+ award include: 2023 Audi Q7, 2023 Audi Q4 e-tron, 2023 Audi Q4 Sportback e-tron, 2024 Audi Q8 e-tron, 2024 Audi Q8 Sportback e-tron and 023 Audi Q8 Offering the Q7 with the latest HD Matrix-design LED headlights and an available Audi laser light option for the Prestige trim, Audi continues to set the standard higher, the company said. Laser headlights are identifiable by their blue light signature in the headlight housing and activate at speeds of 40 mph and above (when conditions allow), enhancing driver visibility by projecting a low and wide beam of light onto the road ahead. The standard front crash prevention system, available across all trims, achieves a superior rating in the daytime vehicle-to-pedestrian assessment and an advanced rating in the night time evaluation. Audi Q7 models come equipped with a comprehensive array of standard and optional driver assistance features, including: • Audi pre sense® basic, which prepares the vehicle for impact in the event of an impending collision, including closing side windows and the panoramic sunroof and pretensioning front safety belts. • Audi pre sense® front, utilizing a camera to monitor the area ahead of the vehicle, issuing visual and acoustic warnings to alert the driver to potential hazards, applying brakes if necessary, and capable of bringing the vehicle to a full stop within system limits. It can also prevent accidents at speeds below 25 mph and react to pedestrians below 52 mph. • Audi side assist, providing blind spot monitoring via LED indicators on the exterior mirror housings at speeds above 9 mph. • Lane-departure warning, helping to maintain lane discipline through corrective steering intervention and wheel vibration at speeds exceeding 40 mph. • Rear cross-traffic assist, supporting the driver when reversing out of a perpendicular parking space with indicator arrows in the MMI display and potential warning tones and brake assistance in critical situations. • Adaptive cruise assist, available to accelerate, brake, and maintain speed and distance using radar, camera, and ultrasonic sensors for highway driving. • Top view camera system, available to provide a simulated 360-degree view of the vehicle's surroundings for parking and tight spaces. The IIHS "TOP SAFETY PICK+" for 2023 relies on "good" ratings in various crash tests and an "acceptable" rating for standard headlights, as well as an "advanced" rating for both vehicle-to-pedestrian front
"TOP SAFETY PICK+" for 2023 relies on "good" ratings in various crash tests and an "acceptable" rating for standard headlights, as well as an "advanced" rating for both vehicle-to-pedestrian front crash prevention tests, the company said.
Garuda Drone to deliver Swiggy grocery parcels in Bengaluru Chennai: The of startup will soon start delivering grocery packages in Bengaluru for food and grocery player Bundl Technologies Pvt Ltd known by its brand . The city based Garuda Aerospace is a drone-as-a-service provider. "This is a pilot project started by Swiggy. We plan to start the pilot during the first week of May," Agnishwar Jayaprakash, Founder & CEO, Garuda Aerospace, told IANS. According to him, the drones will carry the grocery packs from the seller-run 'dark stores' and from a store to a common middle point - drone port- where the Swiggy delivery person will pick up the packet and deliver to the end customer. The common middle point is the responsibility of Swiggy and it will give the addresses, Jayaprakash said. Swiggy in a blog post 'Swiggy Bytes' had said the pilot will be done in two tranches, the first one in Bengaluru by Garuda Aerospace and in Delhi-NCR by Skyeair Mobility. The second phase will be done soon after studying the learnings from the pilot by ANRA-TechEagle Consortia and Marut Dronetech Pvt Ltd. However, it is not known who will be liable for any public liability case and whether Swiggy has insisted the drone players take out a public liability insurance policy. In February this year, Prime Minister Narendra Modi had virtually inaugurated the drone manufacturing facilities of Garuda Aerospace at Manesar in Gurugram and in Chennai. Also Read:
Shashank Srivastava on why Maruti is aiming to boost SUV segment “If the commodity prices remain high, one could expect supply side inflation as well. So there are uncertainties but at the same time, looking at the current industry trends of demand parameters, we expect a secular growth across segments,” says , Executive Director, Maruti sales are expected to be 11% higher year-on-year. Which segments are you expecting most of the growth to come from? There seems to be a move away from hatchback to SUVs. Companies are not going in for the small entry car segment? As far as segments are concerned, whether it is hatchbacks or sedans, MPVs or SUVs, the growth will be fairly secular. That is our estimate because last year the industry had a total volume of about 30.7 lakh and that is same as what we had five years earlier in 2016-17. So we do expect that with the introduction of new models and also the economy bouncing back and hopefully a much better year as far as Covid is concerned, we would see the volumes in the industry going up. However, I must flag a couple of points which bring in a little bit of uncertainty and that is inflation and the corresponding interest rate hikes which we are expecting. If the commodity prices remain high, one could expect supply side inflation as well. So there are uncertainties but at the same time, looking at the current industry trends of demand parameters, we expect a secular growth across segments. You said you are going to focus on high-end cars, that you are looking to move towards luxury from the hatchback variants, this financial year. Against the backdrop of inflation, is that what you are doing? Yes, you are right about the . The reason we mentioned that immediately after we announced the results for the last quarter and for the full year was because ’s overall market share came down by about 3.5% to slightly below 45%. Now, the share of the SUV sector in the auto industry has grown from about 32% of the industry last year to almost 40% while the share of hatchbacks came down from about 45% to about 38-39%. In the non SUV sector, Maruti Suzuki’s market share had climbed to about 66%, which is the highest in fact as far as the record so far available. So it is the SUV sector market share which has brought us down in the overall market share figure. SUVs are a growing segment. It used to be about 26% just two, three years back it is now almost 40% of the industry. We have two models; Brezza and the S-Cross while the number of models in this sector is almost 47 in the industry. It is clear that as far as our portfolio is concerned, this segment probably will require a lot of support and that is what we are planning to do going forward, introducing some SUVs to bolster this fast increasing sector. Suzuki India’s image is that of a small car export house. How do you see the scale of small cars in the overseas market given the entry level demand is under pressure? The definition of small car is different in
image is that of a small car export house. How do you see the scale of small cars in the overseas market given the entry level demand is under pressure? The definition of small car is different in different countries. For example, Europe is pretty well developed but quite a large percentage of vehicles sold there are hatches. SUVs, of course, have gone up across the globe and as far as India is concerned, hatches have remained relatively steady in the last four-and-a-half years at around 45% of the market share. However, last year it had come down and the discussion is now hovering about why the small car market in India has not grown as much as it should have and we are clear that it is largely because the acquisition cost has gone up and the price elasticity for this consumer in this segment is actually quite high. That means that the sensitivity to increase in price in response to commodity price hikes or any other input cost increase – whether due to government regulation or taxes or insurance or financing cost – affects this customer most. That is the reason why we see in the last five years, the cost of acquisition of small cars, the entry hatches have gone up almost 40% and that has resulted in a dip in the sales for the hatch segment. This is the central issue which we have been conveying to the media at large and how we are trying to overcome this by focussing our efforts on other segments. You have been getting discount levels lower in order to boost sales. Are you planning to take that lower or we can see some range? The discount levels you are referring to are a function of supply and demand. At the moment, the overall demand seems to be high. Even as we speak, we have almost 311,000 pending bookings. In case of a supply-demand mismatch, the discount will be lower and I am expecting that to continue for some time to come till the situation on the supply side normalises. So whether it is rural or urban today, it is not a question of lowering the cost of acquisition. One can increase the discount levels but even if you have a larger demand, you may not be able to fulfil it as is reflected in the 311,000 pending bookings that we have. In fact, for the industry the estimate is that almost five-and-a-half lakh bookings are pending for delivery. What is happening with chip shortage? Are there further pressures or things are as is? Where do this stand currently? The situation remains roughly the same. Remember the visibility in terms of available for semiconductor component is still limited which means that it is difficult to give a long-term projection of when it will normalise and also to tell whether two months down the line, it will be normal or not. That is why we are updating our consumers and also to all the stakeholders whether it is the media or other stakeholders of the situation, as we see currently. The current situation is that at least for this quarter, the supply side constraint will continue as you saw in the previous
is the media or other stakeholders of the situation, as we see currently. The current situation is that at least for this quarter, the supply side constraint will continue as you saw in the previous quarter. In that sense, the situation has not changed but then the visibility still remains limited.
Road Ministry asks states to look into rule violations by manufacturers, dealers The has asked states to look into violations of (CMVR) by manufacturers and dealers selling low-speed electric two-wheelers. The and Highways ( ) in an advisory to states said that these manufacturers and dealers are supplying higher , which are plying with a top speed of 40-55 kmph without type approval, insurance and vehicle identification as per norms. "These vehicles are tampering with verification undertaken by the testing agency," the advisory said. The advisory said two-wheeled-battery-operated vehicle shall not be deemed to be a motor vehicle -- if it is equipped with an electric motor having thirty-minute power of less than 0.25 KW, maximum speed is less than 25 km/hr and the weight of the vehicle without a battery is not more than 60 kg.
Hagerty launches commercial valuations service in UK , an lifestyle brand and a leading specialist insurance provider, has launched a new Commercial Valuations service in the UK, especially designed to provide businesses with bespoke Hagerty market data. For over 13 years, Hagerty’s Automotive Intelligence team has produced market data and analysis on the global enthusiast market, specializing in modern , rare as well as classic cars, via its team of 30 dedicated analysts across 4 different countries. Hagerty’s Commercial Valuations service can be adapted to suit individual client needs, offering a pre-agreed number of valuations each month, ranging from simple vehicle valuations to in-depth expert reports. Hagerty International Managing Director Mark Roper said, “Hagerty’s market data has been known as the best in the business for over 10-years and is used to power established features such as our annual Bull Market list as well as providing owners with a realistic valuation via our famous Hagerty Valuation Tool. Now we can offer professionals access to our data and analyst team to help them better understand the enthusiast car market for their own needs, or those of their clients, via our new commercial subscription service. If any businesses could benefit from a better understanding of the global market, Hagerty can now provide valuable insight which was previously unavailable.” To obtain their renowned data, Hagerty evaluates over 2 million classic vehicle insurance valuations, along with eligible trade sales and the results of over 28,000 relevant global auction results every year. In addition, Hagerty representatives are present at all major auctions to report on the condition of the cars sold, as well as the atmosphere in the room, so relevant details can be factored when collating valuation data. The result is market data recognised as the best in the global classic car industry, providing Hagerty with unrivaled knowledge of the enthusiast car sector, whilst also powering its own Hagerty Valuation Tool with accuracy. The continuously updated supply of data also generates unique Hagerty editorial content and ensures Hagerty can provide the very latest market value of client-owned vehicles for insurance purposes. Until now access to Hagerty’s market data, and team of analysts, has only been available to the few, but now Hagerty offers trusted professional partners the chance to obtain subscription-based data to suit individual business needs. This can include bespoke written reports, complex car valuations, physical vehicle inspections and current and residual value forecasts suitable for financial lenders, specialist dealers, auction houses and even other insurance companies. As Hagerty’s data sets are so complex it allows detailed segmentation including specific model detail, total recorded mileage as well as insight Into service history and any notable previous ownership details. In addition, bespoke commentary on a particular market
including specific model detail, total recorded mileage as well as insight Into service history and any notable previous ownership details. In addition, bespoke commentary on a particular market sector is also available to subscribers.
The all-new BMW R 18 Transcontinental Gurugram: has launched the all-new in the country. The all-new BMW R 18 Transcontinental can be ordered as a completely built-up unit (CBU) from today onwards through the BMW Motorrad dealer network. BMW Motorrad India now offers three iconic motorcycles in the cruiser segment: The R 18, The R 18 Classic and The R 18 Transcontinental. The all-new BMW R 18 Transcontinental brings alive a nostalgic touring experience in a luxurious style. Vikram Pawah, President, BMW Group India said, "BMW Motorrad heralds a new era of luxurious touring with the launch of the all-new BMW R 18 Transcontinental. As a member of the R 18 family, it represents BMW Motorrad's deeply rooted tradition with its unmistakable design, the mighty Big Boxer engine, state-of-the-art technology and riding dynamics. The eye-catching styling of the R 18 Transcontinental adds on to the riding experience and evokes the emotions of a bygone era. It offers the most authentic, unparalleled experience one can enjoy on two wheels promising a comfortable, powerful ride for miles. This motorcycle will have an enormous appeal for motorcyclists who live for unforgettable cruising moments." The all-new BMW R 18 Transcontinental is available at the following ex-showroom price - The all-new BMW R 18 Transcontinental - INR 31,50,000 Prices prevailing at the time of invoicing will be applicable. Delivery will be made ex-showroom. Ex-showroom price (inclusive of GST and compensation cess) as applicable but excludes Road Tax, statutory taxes cess levies and insurance. Prices and options are subject to change without prior notice. For further information, please contact your local authorized BMW Motorrad Dealer. The all-new BMW R 18 Transcontinental come is five attractive colour options - Black Storm Metallic, Gravity Blue Metallic, Manhattan Metallic Matte, Option 719 Mineral White Metallic and Option 719 Galaxy Dust Metallicoil cooled two-cylinder flat twin engine- the most powerful boxer in series production by BMW. The massive 1,802 cc engine resulting from a 107.1 mm bore and 100 mm stroke. It produces an output of 91 hp at 4,750 rpm. The maximum torque of 158 Nm is already available at 3,000 rpm, with more than 150 Nm always available from 2,000 - 4,000 rpm. This elemental pulling power is combined with a full, resonant sound. A single-disc dry clutch transmits the torque to the transmission. For the first time, it is designed as a self-reinforcing anti-hopping clutch, thereby eliminating unwanted rear wheel hop. The constant mesh 6-speed gearbox is in a dual-section aluminium housing and is designed as a 4-shaft transmission with helical gear pairs. The transmission input shaft with cleat dampers drives the two transmission shafts with the gear wheel pairs via a countershaft. A reverse gear is available as an optional extra. In terms of the suspension, the all-new BMW R 18 Transcontinental sports a double loop steel tube frame and rear swinging arm with
a countershaft. A reverse gear is available as an optional extra. In terms of the suspension, the all-new BMW R 18 Transcontinental sports a double loop steel tube frame and rear swinging arm with enclosed axel drive in rigid frame design as on the legendary BMW R 5. The rear swing arm surrounds the rear axle transmission in authentic style. The suspension elements deliberately dispense with electronic adjustment options. Instead, a and a directly mounted cantilever suspension strut with travel-dependent damping and adjustable spring preload ensure superior wheel control and better suspension comfort. The braking system consists of a twin disc brakes at the front and a single disc brake at the rear in conjunction with four- piston fixed callipers. Unusual in its segment, the all-new BMW R 18 Transcontinental Classic offers three standard riding modes - 'Rain', 'Roll' and 'Rock' to suit individual rider preferences. In 'Rain' mode, throttle response is gentler and riding dynamics allow a high safety over slippery road surface. In 'Roll' mode, the engine offers optimum throttle response while riding dynamics achieve ideal performance on all roads. 'Rock' mode allows riders to tap into the full dynamic potential - throttle response is very spontaneous and direct, while Automatic Stability Control allows a little more slip. The all-new BMW R 18 Transcontinental boasts a list of important standard features. Active Cruise Control provides an entirely new relaxed riding experience. The disengageable traction control Automatic Stability Control provides perfect control, whether the road is dry or wet. Dynamic Engine Brake Control electronically prevents the sliding of rear wheel by sudden closure of throttle or back spacing. Hill Start Control makes starting off on a hill particularly easy. Keyless Ride system replaces the conventional ignition steering lock and an offers central locking of the bike and storage cases. The bike also offers Electronic Cruise Control as standard. The new adaptive LED Headlight sets new standards when it comes to vehicle lighting in the cruiser segment - both in terms of design and safety. The all-new BMW R 18 Transcontinental brake system is equipped with the well- established BMW Motorrad Integral ABS (partially integral) that adapts the distribution of brake force between the front and rear brakes to the dynamic wheel load distribution and the load state. In addition, the dynamic brake light signal function warns following traffic in two stages when the brakes are applied sharply and in the event of an emergency brake manoeuvre. Marshall Gold Series Stage 2 sound system the R 18 Transcontinental consist of six loud speakers and a booster that meets the highest demands of sound quality.
Oil companies to cushion fuel price shock as crude tests $120 NEW DELHI: State-run fuel retailers are expected to cushion the blow on consumers as the government seeks to limit the impact of a surge in oil prices after benchmark Brent crude crossed the $119 a barrel mark. The retailers are losing about Rs 20-22 a litre on petrol and diesel as they have not raised pump prices since November 4, when the Indian Basket – the mix of crude bought by them – was at $83/barrel. On Wednesday, it stood at $111.99, the highest since September 2012, in step with the rally set off by the Russia-Ukraine conflict. Simultaneously, the dollar has appreciated to Rs 75.75 from Rs 74.34 on November 4, contributing to widening the gap between cost and retail prices of petrol and diesel. Fuel prices are linked to their global markers and dollar exchange rate, while crude prices are a key factor in the spread. One way to reduce the burden on consumers could have been tax cuts by the Centre and state governments, just as they had done in November. But given the uncertainty of the situation, it is not on the immediate agenda, sources told TOI. There are various estimates doing the rounds, with some pointing to $150 being a possibility, and the government does not want to use up all the ammunition immediately while being acutely aware of the need to protect households from a massive shock. Besides, oil is a major source of tax collection for the Centre and the states. Given the uncertainty over the mega initial public offer by , the Centre is keen on ensuring revenues are not hit significantly so that it stays within the fiscal deficit target of 6.9% of GDP. There is also an assessment in the government that prices will cool down once the tensions ease, although the current price is something that was not ed for, given the Budget assumption of $70-75 a barrel. Although India’s supplies are not affected, is the largest oil exporter. Its gas exports account for 34% of global supplies. The conflict has given rise to the insecurity of supplies as the western sanctions are forcing consumers to shun Russian oil due to shipping and insurance issues. Some estimates put the loss of Russian supplies at 2.5 million barrels. There is no way this quantity can be replaced in an already tight market, especially after the grouping, which includes Russia, on Wednesday refused to speed up production hikes. The market is looking at a breakthrough in US-Iran nuclear talks that will allow Iranian oil to flow. Speculators are having a field day in the meantime, sending crude to $120 levels on Thursday, the highest in over a decade. Prices softened to around $115 a barrel around 7 pm India time. Also Read:
Park+ raises $17 million in Series C funding from Epiq Capital, Sequoia and Matrix owners Park+ has raised $17 million (about Rs 140 crore) in its Series C round, led by existing investors , and Matrix Partners India. The round values the Gurugram-based company at $340 million, up from around $150 million during its Series B funding in November 2021. As part of the latest fundraise, the three lead investors have injected $16 million in the company, while angel investors, including serial entrepreneur and investor Kunal Khattar, invested $1 million. Park+ founder and CEO Amit Lakhotia told ET that the company will use the fresh capital to build new use cases on the app, add partnerships, and expand the team. “We do not want to disrupt the existing market. Where we can, we are partnering with existing players like dealerships, service centres, fuel retailers, malls and even companies like MyGate for our services,” Lakhotia, a former vice president at , said. Launched in July 2019, Park+ initially offered corporate parking solutions but the use case lost traction during the Covid-19 outbreak, pushing the company to pivot into a one-stop solution for car owners through a super app that it launched in 2021. “We acquire users through our use-cases. So, revenue streams are coming in from everywhere. We require capital to build use cases, finalise partnerships, and make users aware of the product,” he added. Park+ offers services such as parking solutions, FASTag management, car insurance, automated vehicle access control systems, daily car wash and EV charging stations. The latest fundraise gives Park+ an additional runway of 35-40 months, Lakhotia said. The company has used less than 50% of the $25 million raised in the Series B round, he added. “We have been very conservative in terms of how we have been spending money. Over the last three years, we have raised roughly $55 million, of which $30 million is still in the bank,” Lakhotia said. The company said it currently has 6 million car owners on its platforms and is present in more than 25 cities. “Park+ has identified and unlocked business opportunities within the auto-tech segment, which no one else was ready or willing to solve,” said Rishi Navani, managing partner at Epiq Capital. “Today, they host the largest community of car owners in India (60 lakh), a testament to the brand's traction and acceptability among its users.” Epiq Capital has backed startups including Lenskart, Dailyhunt, MSwipe and Pristyn Care. The auto-tech category is poised for rapid transformation with cars becoming more digital and every car becoming a payment instrument with FASTag, said Rajinder Balaraman, managing director, Matrix Partners India. “As a dominant market leader in a large and underserved market for access control, FASTag, parking and related auto-services categories, Park+ is well positioned to delight every car user in India through its platform,” he added.
Cred launches vehicle management platform Cred Garage, makes first move into motor insurance distribution startup has launched a new platform, , through which it will seek to help users renew their and recharge FASTags, among other activities. Through Garage, Cred is looking to offer users a single dashboard that will also allow them to access a round-the-clock service for roadside assistance and documents including their driver’s licence and registration certificate. It will provide insights on performance and spending made on the vehicle, including on fuel. According to two people in the know, Cred’s new offering for vehicle management is aimed at also providing a strong car insurance distribution platform for its financial partners, as the fintech firm looks to open new revenue streams. Collecting information from users on vehicles will allow it to provide a more premium data set to insurance partners. “As expected from Cred, members will also enjoy rewards, offers and deals across transactions. Members can also renew motor insurance (through the platform) and get member-exclusive perks,” the company said in a press statement. Cred currently acts as a credit distribution platform for its lending partners and hinges its differentiation on high credit score customers. With the new platform, the startup will be taking the fight to and Matrix-backed Park+, as it looks to provide granular data on parked cars in an easy-to-read dashboard. Park+ also offers customers the option to renew or buy motor insurance from its platform. Cred has been pushing to ensure stickiness on its platform, diversifying from just offering credit card bill payments, and has launched features such as the Unified Payments Interface on its app in recent months. Garage is another effort to keep users stay with it. Cred did not directly respond to ET’s queries around its car insurance distribution plans. “While cars are an emotional asset for Indians, ownership is complex, time-consuming, and high-friction, with a number of tasks that need to be addressed regularly, such as paying challans, renewing insurance, and getting the car serviced,” the company said in response to ET’s queries. “There is a significant overlap between unique credit card holders and car owners—both belonging to the top 10% of high-spending individuals with higher disposable income.” The Garage platform will have integration, which will allow users to access essential documents such as their driver’s licence, registration certificate and insurance papers. The platform is also expected to provide reminders to users for tasks such as pollution checks and insurance renewals. Cred will roll out Garage to its entire user base starting Thursday. The service will be housed on its main app.
India receives FDI worth USD 54.1 bn during Apr-Nov New Delhi: Total foreign direct investment ( ) inflows during April-November 2021 stood at USD 54.10 billion, Parliament was informed on Wednesday. Minister of State for Commerce and Industry Som Parkash said the government has put in place a liberal and transparent policy for FDI, wherein most of the sectors are open under the automatic route. To further liberalise and simplify for providing the ease of doing business and attract , reforms have been undertaken recently across sectors such as coal mining, contract manufacturing, digital media, single-brand retail trading, civil aviation, defence, insurance and telecom, he said in a written reply to the Lok Sabha. "During the current financial year 2021-22 (up to November 2021), FDI inflows worth USD 54.10 billion have been reported in the country," he said. According to the data, during April-November 2021 was USD 39.26 billion. It was USD 43.85 billion during April-November 2020. Sectors that attracted maximum inflows during the period include computer software and hardware (USD 9 billion), automobile (USD 5.84 billion), services (USD 4.95 billion), education (USD 2.8 billion), trading (USD 2.79 billion), construction (infrastructure) activities (USD 1.48 billion), metallurgical industries (USD 1.35 billion), and defence industries (USD 2.19 million). Also Read:
NIIF looks to sell over USD 1 bn worth of maiden roads portfolio Mumbai: India's sovereign-backed National Investment and Infrastructure Fund ( ) is looking to sell its maiden portfolio of five , worth around INR 10,000 cr (USD 1.2 billion) on an enterprise value basis, sources aware of the development told ET. NIIF has appointed investment bank to run a sale process for the roads portfolio, the sources said. Formal conversations are yet to begin, added the sources mentioned above on the condition of anonymity as these discussions are still in private domain. “This is one of the biggest road portfolios, value wise, to hit the market in recent times.” said one of the sources cited above. These operating road assets are housed under Athaang Infrastructure, a company sponsored by NIIF’s Master Fund. Athaang holds five assets with a total road length of over 230 kilometres spread across north and south India. The key among these are two highways in Jammu and Kashmir acquired separately by the fund in 2022. The 16.3-kilometre was acquired from in July 2022 for USD 380 million (INR 3,163 crore). Meanwhile, the 64.5-kilometre was acquired by Athaang in August 2022 from for USD 290 million (INR 2,414 crore). The two projects are amongst the largest annuity projects awarded by the National Highways Authority of India. The fund operates the 73-kilometre Kashi Tollway in Uttar Pradesh that connects Prayagraj and Varanasi, which it won under the toll-operate-transfer (TOT) monetisation programme of NHAI for a value of INR 3,144 crore in January 2023. Other assets of the fund include the 60-kilometre Dichpally Tollway in Telangana and the 22-kilometre Devanahalli Tollway in Karnataka, which were acquired from the Essel Group in 2020. The former connects Hyderabad to Nagpur while the latter connects Bengaluru city to its airport. The NIIF Master Fund has a corpus of USD 2.34 billion and is backed by marquee investors such as Abu Dhabi Investment Authority, Temasek, Ontario Teachers’ Pension Plan, Australian Super, Canada Pension Plan Investment Board, Public Sector Pension Investment Board, Development Finance Corporation, , HDFC Group, and Kotak Life Insurance Company.
Hinduja Group entity issues high yield bonds to partly fund Reliance Cap buy , a company, raised 30 billion rupees (USD 357.76 million) through zero-coupon bonds maturing in three years and six months to partly fund acquisition of subsidiaries of , two bankers told Reuters on Monday. The company invited bids from investors earlier in the day and received bids from high-net-worth investors, family offices and domestic private credit funds, the bankers said requesting anonymity as they are not authorised to talk to the media. has likely arranged the issue, multiple bankers said. Hinduja Group and 360 One did not immediately respond to Reuters' requests for comment. Cyqure India, a unit of Hinduja Group offered a yield of 14.5%, according to a term sheet seen be Reuters. The coupon will rise by 100 basis points if the credit rating slips a notch, the term sheet showed. Careedge Ratings has assigned a BBB- provisional rating to these notes. The proceeds of the Cyqure India bond issue will be used to acquire 25.05% stake in and 26% in , Careedge said. These insurance companies, a part of Reliance Capital, are in the process of being acquired by IIHL, a . The Reserve Bank of India took over Reliance Capital in 2021 due to governance concerns at the non-bank lender after it failed to meet its payment obligations to creditors. In February, IIHL, won the bid under the National Company Law Tribunal of India to acquire Reliance Capital. In case IIHL fails to procure a foreign portfolio investor registration within three months from the date of allotment, the coupon will be stepped up by 200 bps. Following the fulfilment of the condition, it will get stepped down by the similar size. Separately, Hinduja Group is also considering a private placement of a second tranche of bond issue to raise around 43 billion rupees in coming weeks, bankers said. The final details of this issue are still getting firmed up.
Insurance premiums on 2-wheeler EVs may rise Insurance premiums on two-wheeler (EVs) may rise as insurers reassess risk based on recent fires and malfunctions. While deaths and injuries due to accidents will be covered under existing insurance plans, EV makers may have to compensate for damage or loss of life due to manufacturing defects. There have been multiple two-wheeler fires said to involve batteries recently, with some even resulting in loss of life. This prompted roads, transport and highways minister to caution manufacturers, saying the government will order a recall of faulty vehicles and impose penalties on any company found to be negligent in its processes. "We are monitoring the claims experience for electric vehicles, including the instances of fire that are coming up," said Adarsh Agarwal, chief distribution officer at Digit Insurance. If more such events take place, the company could incorporate such risk while pricing premiums, he said. ICICI Lombard is also monitoring the situation. "A risk-based approach to pricing may be taken as and when the facts of incidents and the probable controls around them are clear," said Sanjay Datta, chief, underwriting and claims. EV insurance premiums haven't been affected by the recent incidents, he said. Okinawa announced a recall of 3,215 units of its Praise Pro electric scooter last month "to fix any issue related to batteries." Ola said it will recall 1,441 vehicles that will "go through thorough diagnostics across all battery systems, thermal systems as well as safety systems." Pure EV is recalling 2,000 units of its ETrance+ and EPluto 7G models. According to insurance professionals, the current plans for insuring electric vehicles don't cover loss or injury due to manufacturing defects. "If the accident occurs due to a manufacturing defect, then the direct or subrogated liability would fall on the manufacturer for payment of the claim," said Datta. Personal Accident Cover Personal accident cover is compulsory for the 'owner-driver' and is mandated by law, he said. "Cover is provided to the owner-driver whilst driving the vehicle including mounting and dismounting from or travelling in the insured vehicle as a co-driver," Datta added. According to Digit's Agarwal, personal accident cover is not included in the standard EV insurance policy. "If the policyholder wishes, he may opt for a personal accident cover as a rider at a small added cost," he said. Further, if the driver dies due to the EV catching fire while they are riding the vehicle, the Compulsory Personal Accident (CPA) cover gets triggered if opted for by the policyholder or rider, he said.
New Audi Approved: plus facility opened in Guwahati New Delhi: Audi, the German luxury car manufacturer, has inaugurated a new pre- owned car facility, in Guwahati, Assam. Situated at Balughat, Jayanagar Tripura. Road, Guwahati-781028, the inauguration of Audi Approved: plus in Guwahati signifies an addition to Audi India's retail presence, now harbouring a total of 26 such pre-owned car facilities in India. , Head of Audi India, said, "Audi Approved: plus witnessed a growth of 62% in 2023. We continue to expand our retail business amidst growing demand for luxury cars in the country and are confident of continued growth this year. The inauguration of our twenty-sixth Audi Approved: plus facility reiterates the demand and growth opportunity and the strength of the brand. Over the next nine months, we will add four new pre-owned car showrooms thus, taking the total count to thirty Audi Approved: plus facilities by the end of 2024." Audi Approved: plus guarantees the highest quality pre-owned Audi vehicles for customers. 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. As part of the program, Audi India offers 24x7 Roadside Assistance and complete vehicle history before purchase. Additionally, customers can also avail easy financing and insurance benefits through the program. Pulak Goswami, Dealer Principal, Audi Guwahati, said, "We are proud to extend our partnership with Audi India through the inauguration of our second setup in Guwahati which is the Audi Approved: facility here in Guwahati. This new facility is poised to redefine the standards of excellence in the pre- owned luxury car segment, offering unparalleled quality and service to our esteemed customers."
Consumer forum directs Ola to pay 50k to Sundargarh man A district consumer disputes redressal commission here has directed to pay a of INR 50,000 to a complainant of Sundargarh district for deficiency in service and causing mental agony. The commission in its order on Aug 22 directed the company to refund the amount paid by the complainant to purchase the or replace with a new defect-free vehicle of the same model and take back back the old two-wheeler. The commission also asked the company to pay INR 10,000 in legal costs within 30 days from the date of the order, failing which the amount will carry an interest of 9% per annum till realisation. According to the complaint, Samir Kumar Naik of Rupidihi had purchased an electric scooter from a dealer at Uditnagar here on June 14, 2023. Naik also paid the registration and insurance charges for the scooter. The dealer also said the battery had a warranty of three years. On Nov 2, 2023, a technician visited Naik’s home and found the e-scooter’s battery was dead and had to be replaced. Despite numerous attempts, the complainant did not receive any satisfactory resolution or further visit from technician to replace the battery. Naik filed the case before the District Consumer Disputes Redressal Commission, Sundargarh-I, on February 22 this year. Go Digit General Insurance Company Ltd, Pune, which insured the vehicle, said that as per the policy conditions and claim of the petitioner, the battery had a problem, which was a manufacturing defect. The commission observed the problem arises in the said scooter due a manufacturing defect, which was not part of the 10 conditions of the insurance policy. So the insurance company had no deficiency in its service. However, Ola Electric did not solve the issue and hence, was deficient in service and committed unfair trade practice, the commison said. Tushar Kumar Sahoo, service manager, Ola Electric Technology Private Ltd, Rourkela, said, “If the customer has any issue, our legal team will discuss with him and will take necessary action.”
Oil price cap takes small slice of Russia war chest A price cap and embargo on most Russian oil have cut into Moscow's revenue from , but the Kremlin is still earning substantial cash to fund its war in because the USD 60-per-barrel cap was "too lenient", researchers said on Wednesday. The combination of the cap by the Group of Seven major democracies and the EU ban are costing an estimated 160 million euros (USD 171.9 million) per day, the Helsinki-based Centre for Research on Energy and Clean Air said in a study of the first weeks of the sanctions, which took effect December 5. But the group's figures showed that Russia was still taking in 640 million euros a day from fossil fuels, down from 1 billion euros daily from March to May 2022 just after the country invaded Ukraine on February 24. Russia would lose an additional 120 million a day starting February 5, when the EU bars imports of refined oil products such as diesel fuel, for which Russia is a major supplier. That would drop Moscow's earnings to 520 million euros a day by February. The group said Russia still managed to make 3.1 billion euros in revenue shipping oil under the price cap, reaping 2 billion euros in tax income. Lowering the cap to USD 25-USD 35 per barrel would almost completely eliminate the tax income by putting the price much closer to Russia's cost of production. The current price cap is above the market price for Russian oil and remains in the range of what Moscow needs to balance its budget. Western governments have struggled to find a way to cut into the fossil fuel income that is the main funding source for Russia's government budget and its war against Ukraine. Early rounds of sanctions mostly avoided blocking oil and natural gas shipments. That's because the European Union had been heavily dependent on Russian fossil fuels to run its economy and because sharply higher energy prices early in the war helped send inflation through the roof in Europe and the United States. The Group of Seven major democracies came up with the price cap as a solution to keep Russian oil flowing to other parts of the world and avoid sharply higher energy prices while still cutting into the Kremlin's income. The cap is enforced by barring insurers, mostly based in the West, from handling Russian oil shipments priced above the cap. The EU oil embargo blocks the bulk of Russian oil - that coming by tanker. Lowering the cap could have unpredictable effects because President has said Russia will not sell oil to countries obeying the cap, a threat which has not materialized because the cap is above the market price. Oil markets, however, are now less focused on a potential loss of Russian oil than on weak demand from a slowing global economy, and prices have fallen. The research centre compiling the estimates called for restrictions on the sales of old tankers to prevent Russia, its allies and related traders from assembling a replacement fleet to circumvent the oil price cap and to strengthen
estimates called for restrictions on the sales of old tankers to prevent Russia, its allies and related traders from assembling a replacement fleet to circumvent the oil price cap and to strengthen penalties for dodging the cap by increasing penalties. Also Read:
Longer disruptions at Red Sea trade route may hurt auto, electronics production: GTRI Longer disruptions at the crucial route may hurt manufacturing lines of some sectors like electronics, automobiles, chemicals, consumer goods and machinery, economic think tank said on Sunday. The Global Trade Research Initiative (GTRI) said companies relying on just-in-time manufacturing processes can be particularly vulnerable as they maintain low inventory levels and depend on the timely arrival of components and finished products. Few industries where production will be impacted due to disruptions in global value chains include electronics, automotive, machinery, chemicals, pharmaceuticals, plastics, textiles, and consumer goods, it added. Components and finished products are often shipped through the Suez Canal to reach different markets, and disruptions can lead to delays in manufacturing and increased costs, it said. Due to the attacks by Houthi rebels on commercial ships, the movement of goods from the Red Sea, the world's busiest shipping route, has disrupted the global supply chains as vessels have to take long routes for exports and imports. The immediate ripple effects are seen in increased freight costs, mandatory war risk insurance, and significant delays due to rerouting. "The adverse impact will multiply if the disruption continues beyond a few more weeks as it will impact not only trade but local productions of many industries, which rely on just-in-time procurement/import of inputs through the global value chains spanning both Europe and Asia," GTRI co-founder Ajay Srivastava said. He said that average container spot rates have more than doubled since early December 2023. Basmati rice exporters face freight costs soaring to USD 2,000 per 20-tonne container for destinations around the Red Sea, marking a 233 % increase, Srivastava added. Similarly, he said, the other sectors which have faced issues include life-saving drugs, textiles, diesel, ATF, and steel. Exporters have also expressed apprehensions that if the crisis continues, it will hurt the country's trade. Mumbai-based exporter SK Saraf said the time is right for India to consider building a big domestic shipping company, as, at present, "we are completely dependent on foreign shippers". Reports have linked the increased attack by Yemen-based Houthis on commercial ships with the Israel-Hamas war in October last year. Houthi group has been using drones and rockets on ships, which are transporting goods through the strait of Bab al-Mandab, which is a crucial shipping route connecting the Mediterranean Sea to the Indian Ocean. The strait, vital for 30 % of global container traffic, has seen increased tensions with various incidents in 2023, including attacks and military manoeuvres by regional and global powers. India is heavily reliant on this route for trade and energy imports and due to the disruptions, exporters here have to diversify their trade routes. Strikes have been continuing for
global powers. India is heavily reliant on this route for trade and energy imports and due to the disruptions, exporters here have to diversify their trade routes. Strikes have been continuing for many years but escalated this year sharply, with militants now using anti-ship ballistic missiles. To avoid attacks, most large shipping firms, since December 15 last year, have stopped using the Bab al-Mandab straits for trade with Europe via the Red Sea and Suez Canal. The closure of this route snaps a critical trade link between Europe and India and all of Asia. Ships going to Europe will now move via a much longer route around the Cape of Good Hope, the bottom tip of Africa. This change increases voyage distances by 40 % and raises transportation time and cost. According to GTRI, the large shipping firms that stopped plying ships include the Danish firm Maersk and Swiss-Italian MSC(Mediterranean Shipping Company), German Hapag-Lloyd, and French CMA CGM (Compagnie Maritime d'Affretement - Compagnie Generale Maritime). The Bab-el-Mandeb Strait, also known as the 'Gate of Tears' in Arabic, is a crucial trade route that connects the Mediterranean Sea and the Indian Ocean via the Red Sea and the Suez Canal. It separates Africa from the Arabian Peninsula. The strait is only about 29 miles wide at its narrowest point, making it easy to block or disrupt shipping. The two main shipping routes from India to Europe are via Bab-el-Mandeb Strait, Suez Canal and Red Sea; and II-Via Cape of Good Hope, encircling Africa. The Red Sea route is shorter and faster, making it the preferred option for most shipping companies. It starts from major Indian ports like Mumbai, JNPT, or Chennai, heads westward through the Arabian Sea, enters the Red Sea, and navigates through the Suez Canal into the Mediterranean Sea. From there, ships can reach various European ports depending on their destination. On the other hand, the Cape of Good Hope route is longer and slower than the Suez Canal route, but it avoids the potential for delays or disruptions. It is used for bulk cargo shipments where time is less critical or when political instability in the Middle East raises concerns about using the Suez Canal. It starts from the Indian ports, heads southward across the Indian Ocean, rounds the Cape of Good Hope at the southern tip of Africa, and then sails northward along the west coast of Africa before entering the Mediterranean Sea and reaching European ports. India is heavily reliant on this strait for its crude oil, LNG imports and trade with the Middle East, Africa, and Europe.
China and India easing away from Russian crude oil may be temporary: Russell There are signs that China and India are pulling back from buying ahead of the nations' proposed price cap and a ban on imports. However, the more important question for the market is whether any slowing by China and India of purchases from Russia is a temporary factor that will be reversed once participants figure out how to work with, or around, the price cap. China, the world's largest , and India, the third-biggest, have increasingly turned to Russian crude this year, buying cargoes at steep discounts as Moscow sought to keep up export volumes after Western countries shunned its oil. The G7 price cap and the EU ban on imports are aimed at cutting the revenue Russia receives from its exports of crude oil and products and are part of efforts to punish Moscow for its Feb. 24 invasion of Ukraine. Russia calls its actions there "a special operation". Chinese refiners have begun slowing their purchases of Russian crude for December arrivals, according to traders and industry players in China. The reduced volumes from Russia for December come after several months of strong imports. China is forecast to bring in 1.80 million barrels per day (bpd) of Russian crude in November, up from October's 1.69 million bpd and in line with September's 1.82 million bpd, according to data compiled by . It is also likely that Russia will overtake Saudi Arabia as China's biggest supplier of crude in November, with the two leading members of the OPEC+ group having swapped the top spot several times so far this year. INDIA'S APPETITE Indian refiners are also wary of buying Russian crude beyond the Dec. 5 date of the EU import ban and the proposed price cap. Leading refiners and state-controlled Bharat Petroleum are pulling back from placing orders, according to two sources familiar with the purchasing plans. The lower volumes for December follow strong imports by India of Russian crude in recent months. Refinitiv estimates November arrivals at 1.0 million bpd, which would make Russia the top supplier for the month, ahead of Iraq's 960,000 bpd. The question is whether China and India will once again turn to Russian oil in the new year, or whether the uncertainty created by the price cap and EU ban will linger. It's likely that both countries will be keen to buy Russian crude, especially if it comes at a steep discount compared to grades from the Middle East and Africa. But there are several issues that refiners in both countries will have to work around. Payment and transportation issues such as insurance may become more complex, though it's likely that refiners and traders are smart enough to work out ways to keep doing business. In fact, the main difficulty may be in sourcing enough vessels to move crude from Russia's western ports through to Asia. Currently, much of the crude China buys from Russia comes from the eastern ports. Refinitiv data shows that of the 3.42 million tonnes of seaborne
crude from Russia's western ports through to Asia. Currently, much of the crude China buys from Russia comes from the eastern ports. Refinitiv data shows that of the 3.42 million tonnes of seaborne oil arriving in November, all but 705,000 tonnes came from Pacific and Arctic ports. China is expected to import 705,000 tonnes of , which was the main grade supplied to European refiners from the country's western ports. Prior to the attack on Ukraine, China bought only small volumes of Urals crude, but this started to pick up in May, reaching a peak of 739,860 tonnes in June. The question is whether Russia and China have sufficient tankers in order to increase shipments of Urals crude. These would have to come through the Suez Canal, which limits the size of vessels, or take the long route around the Cape of Good Hope in South Africa. India, which is closer to Russia's western ports than China, had stepped up its purchases of Urals after the start of the war in Ukraine. It's expected to import 3.13 million tonnes of Urals crude in November, down from the record high of 3.54 million in October, but well above the 135,000 tonnes from November last year. If Russia wants to boost shipments to China and India, or other potential buyers in Asia, it will have to secure more vessels, or strike deals with importers to use their tanker fleets. It's this constraint that may limit Russia's exports to Asia, rather than the G7 price cap. Also Read:
Shriram Group gets CCI nod for financial services business merger The said on Tuesday it has received Competition Commission of India approval for the of its entities - and Company. MD said in a statement the nod comes after approvals from SEBI, RBI, the stock exchanges, creditors, and the insurance regulator IRDA. "We now only await the final go-ahead from the National Company Law Tribunal (NCLT). In preparation to commence operations in the merged entity, we have launched the pilot business as a combined entity across 550+ branches in all five geographical units. This endeavour will be scaled up progressively until the merger day," he said. The Shriram Group expects business stability to be maintained, even as the teams and systems integration is progressing. The merged entity will be India’s largest with Assets Under Management of Rs 1.65 lakh crore as of June 2022. For the combined entity, would be the Vice-Chairman while 's MD & CEO YS Chakravarti would be the MD and CEO, according to an earlier statement. The combined financial service entity, Shriram Finance Ltd, would benefit from the multiplier effect of the unification of numerous market channels, and leverage data analytics to serve customers better.
Audi Approved: plus facility opened in Coimbatore New Delhi: German luxury car manufacturer Audi today announced the opening of a new pre-owned luxury car facility – Audi Approved: plus in . Commenting on the inauguration, Balbir Singh Dhillon, Head of , said, “There is a growing demand for luxury cars and pre-owned luxury cars in Coimbatore and the overall region of . We have a strong presence in the region catering to new car buyers and are also growing the footprint of our Audi Approved: plus facilities to welcome buyers to the Audi brand earlier than they would have thought possible.” According to the company, every pre-owned vehicle displayed and sold at Audi Approved: plus showrooms undergo mechanically, bodywork, interior and electrical inspections at 300+ multi-point checks and thorough multiple-level quality checks along with a full on-road test to ensure customers’ peace of mind while buying the car. Under the Audi Approved: plus programme, Audi India offers 24x7 Roadside Assistance and complete vehicle history before purchase. Additionally, customers can avail of easy financing and insurance benefits through the programme. C. R. Anandakrishnan, Dealer Principal, Audi Coimbatore said, “We have a long-standing partnership with Audi in India and are very happy to extend this further with the inauguration of our new facility Audi Approved: plus in Coimbatore. We look forward to welcoming new buyers to the Audi family and establishing a fruitful, long-term relationship.” Also Read:
Indian job market sees record 22% Y-O-Y growth in June'22: Report Hiring activity in India has shown an upward growth trajectory with a record 22 per cent year-on-year growth in June 2022 compared to last year, according to a report on Tuesday. The report Naukri JobSpeak Index showed that demand for entry-level talent continues to record the highest yearly growth (+30 per cent) in June'22. Demand for freshers surged specifically in Mumbai (+93 per cent) amongst metros apart from Kochi (+105 per cent) amongst tier-II cities. Sectors leading hiring for freshers include travel and hospitality (+158 per cent), retail (+109 per cent), insurance (+101 per cent), accounting finance (+95 per cent), BFSI (+88 per cent), and education (+70 per cent). Growth in hiring sentiment was also observed for other experience brackets such as 4-7 years (+19 per cent), 8-12 years (+17 per cent), 13-16 years (+21 per cent), and over 16 years (+17 per cent) in June'22 vs June'21 at +125 per cent. This was followed by retail (+75 per cent) and BFSI (+58 per cent). Other key sectors that saw an uptick in trends are insurance (+48 per cent), education (+47 per cent), real estate (+46 per cent), auto (+37 per cent), and oil and gas (+36 per cent) while telecom and pharma/biotech remained flat. "With the Indian economy growing at a steady pace, the job market is also seeing a consistent uptick in hiring activity across key sectors and cities. This upward trend is a positive indication as a significant proportion of new job opportunities are being created for professionals across sectors and experience bands," said Pawan Goyal, Chief Business Officer, Naukri.com, in a statement. Further, Mumbai continues to lead the race in three consecutive months at +43 per cent y-o-y growth, followed by (+29 per cent), Delhi (+29 per cent), (+21 per cent), (+17 per cent), Pune (+15 per cent), and (+11 per cent). In non-metros, showed the maximum y-o-y growth at +60 per cent in June'22, followed by Kochi (+51 per cent) and Jaipur (+19 per cent). The only centers that remained flat are Ahmedabad and Chandigarh.
Russia boosts Baltic oil exports in January, Asia remains top destination Europe's ban on seaborne Russian oil imports from Dec. 5 has prompted Moscow to divert its crude flows to and failed to curb Russian supplies, according to traders and data from . Supplies of oil from and Kazakhstan from the ports of Ust-Luga and rose in the first half of January to 3.4 million tonnes from 2.5 million tonnes in the same period of December. That includes 3.1 million tonnes of Russian oil, up 35% from 2.3 million tonnes in the corresponding period of December, according to the sources and data. Exports of Russian oil from these ports to Asia Jan. 1-15 increased by 27% to 2.8 million tonnes from 2.2 million Dec. 1-15. Russia has been diverting its trade away from the to other markets, mainly in Asia and , amid a deep political rift with Europe over Ukraine, unseen even in the Cold War era. The main buyers of Russia's flagship oil blend in January have remained India and , according to the market sources. The sources said the emergence of new logistical schemes, including ship-to-ship (STS) transfers and the use of VLCC tankers, is also likely to improve profitability of such exports. At least four Chinese-owned supertankers are shipping Urals crude to China, according to trading sources and tracking data, as Moscow seeks vessels for exports after a G7 oil price cap restricted the use of Western cargo services and insurance. Urals supply to India by Aframax vessels was at least 1.5 million tonnes Jan. 1-15, slightly below the 1.7 million tonnes seen in the same period in December. Direct shipments to China by Aframax vessels are expected at 200,000 tonnes in the first half of January, according to the data, while there was no corresponding data for such supplies in the same period in December. Some 500,000 tonnes of additional Urals from the Baltic Sea that was loaded Jan 1-15 will be shipped towards the , though the final destination has not been established. Oil supplies for STS operations for further deceivers to Asia on Jan. 1-15 rose to 600,000 tonnes from 500,000 tonnes in the corresponding period of the previous month. Also Read:
Sheerdrive launches used vehicle auction portal – Sheerdrive Pro , a Mumbai-based Digital AI/ ML pre-owned vehicle platform with a SaaS-based offering, has unveiled a comprehensive - . This innovative platform, to be showcased at the Bharat Mobility Global Expo 2024 in New Delhi, seamlessly brings together an extensive array of options from various sources such as banks, insurance companies, fleet operators, new car dealerships, and individual sellers, the company said. CEO and founder of Sheerdrive, , said “Standing as a singular solution for both individuals and businesses, Sheerdrive Pro offers an unparalleled range of used vehicles tailored to every budget and requirement. Leveraging state-of-the-art technology, the platform redefines the vehicle auction process, making it efficient, transparent, and accessible to a broad audience. Sheerdrive's commitment to revolutionizing the used vehicle market is exemplified through this cutting-edge portal, providing a game-changing platform for both buyers and sellers.” The Sheerdrive Pro will offer access to the largest selection of used vehicles, a fair and transparent auction process, an intuitive UI, complete vehicle information, a vast network of buyers, a secured transaction process and end-to-end customer service, the company said in a media release. New appointments: . Sheerdrive has appointed. Ravi Thakkar as Vice President , and Swarnim Deshpande as Assistant General Manager. They will play a pivotal role in steering the strategic direction of the organization, implementing effective business strategies, and driving growth.
BikeWo launches ‘BikeWo Shield’, 5-year warranty, to benefit EV customers New Delhi: Hyderabad-headquartered , a multi-brand electric two-wheeler showroom, launched ‘BikeWo Shield’ , a 5-year warranty, to increase the adoption of (EVs) by giving confidence to the customers regarding safety and reliability of the vehicle. The warranty is for the motor, controller, and converter, the company said. Under the BikeWo showroom, customers will be able to avail the best offers, access to the nearest charging stations - in association with Chargenet, and live experience such as test drive, before investing in the model of choice, the company said in a media release. Industry experts assist in buying, financing, and providing insurance through well-known partners and give the customer a seamless, worry-free buying and post-sales experience, the release said. Vidhya Sagar Reddy, COO & Co-founder, BikeWo, said, “It is our confidence in our brands and the quality which we focus on delivering that has assisted us to extend this offer to our customers. BikeWo has been growing while consistently delivering quality products and solid presence in Andhra Pradesh, Telangana, Karnataka, Gujarat, Maharashtra, and other locations which will be coming soon”. “The year 2022 has been a record-setting year for the 2-wheeler EV industry in India as a total of 995,319 EVs were sold. It is a surge of 208% than that to 2021. The sales volume of the two-wheeler EV in India is likely to reach 22 million by 2030. The major barrier is the trust of the customers in EVs and to resolve this issue and give confidence to them, we have launched the BikeWo Shield scheme. This growth comes at a test of perseverance and values but instead of compromising we are now set to address the most common fear of their customers for purchasing your choice of EV by offering this new promise,” Reddy added. The offer came into force on March 1, 2023, and the first 5000 customers will be able to avail of it. To date, around 109 customers have benefitted from this scheme, the release said. Some of the E2W brands that BikeWo has partnered with for display and sales in its showrooms are: Battre, Pure Ev, Gemopai, Jitendra Ev, Evtric, GT force, E-Motorad, and Gear head motors. BikeWo aims to expand by setting up around 150 showrooms in Tamil Nadu, Kerala, and Orissa, by the end of 2023. It is present in Andhra Pradesh, Telangana, Gujarat, Maharashtra, and Karnataka. BikeWo aims to cross 2,000-plus dealerships in over 20 states by 2026, the release added.
Iron ore outlook is more bullish than lower China growth target suggests 's lowering of its economic growth target for 2022 to 5.5% seems at first glance to be bearish for prices, but there are others factors at play likely to keep upward pressure on the steel raw material. There is little doubt that China, the world's second-biggest economy and biggest importer of commodities, is facing headwinds, both domestic and global. It's not surprising that Premier Li Keqiang lowered the growth target from 2021's 6% (although the economy actually expanded 8.1%) in his report to the annual session of parliament. China's priority for 2022 is "economic stability," Li said, and it's those words that are likely quite bullish for iron ore. Already China is cutting interest rates, local governments are starting to boost spending, and tax cuts are expected - all positive demand drivers for steel. China's iron ore imports have had a steady start to the year, with Refinitiv estimating arrivals at 83.69 million tonnes in February and 86.14 million in January, roughly in line with the 88.4 million from December and the 89.29 million from November. Iron ore imports have held up in the first two months of 2022 despite restrictions on steel output as the authorities in Beijing sought to limit pollution over winter and during the Winter Olympic Games in the city. Now that these restrictions are ending and stimulus measures are starting to flow into China's economy, it's likely that steel demand will rise, thus lifting iron ore imports in coming months. Overall, the domestic backdrop looks constructive for iron ore despite the lower economic growth target, given that the likely composition of China's growth will be steel-intensive. External factors may also be aligning for stronger steel production in China, given the ongoing, and worsening, crisis created by Russia's invasion of Ukraine. Both Russia and Ukraine are significant exporters of iron ore and steel products, a trade likely to disappear in coming months. Ukraine will be unable to export because of the war, and Russia's shipments will likely face difficulties as buyers self-sanction trade with Russia amid outrage at the violence being inflicted on Ukraine, as well as challenges arranging payment, transport and insurance for commodity purchases. Ukraine exported 2.92 million tonnes of iron ore in January and 3.27 million in December, according to commodity consultants Kpler. Monthly shipments range from around 1.8 million tonnes to about 3.7 million in the past two years, the data show. Russia's exports of iron ore are smaller, typically no more than 500,000 tonnes a month, however, its shipments of steel tend to average slightly more than 1 million tonnes per month. The loss of Ukrainian iron ore exports is relatively small, but will force buyers to look elsewhere, with European steel mills likely turning to Atlantic basin shippers such as Brazil, and South Africa, while Asian importers will try to source more
small, but will force buyers to look elsewhere, with European steel mills likely turning to Atlantic basin shippers such as Brazil, and South Africa, while Asian importers will try to source more from top exporter Australia, and perhaps second-tier producers such as Iran and India. Ukraine's exports to China were 1.3 million tonnes in January and 1.96 million in December, according to Kpler. Losing that supply will tighten the market somewhat in China, which buys about 70% of global seaborne iron ore. In other words, the absence of Ukrainian cargoes isn't as big a deal for iron ore as is the loss of Russian crude for the oil market, but it does matter and is bullish for the price. The loss of Russian steel exports, and the possibility that European steel producers will find it hard to maintain output amid high energy prices and the possibility of interrupted supplies, will serve to tighten the global steel market. ADVANTAGE CHINA? China is one of the few producers with the capacity to increase steel production, and if the authorities are willing to allow the increased pollution from the coal-intensive process, it's possible that Chinese steel mills will want to boost production and lift exports. With the positive backdrop for iron ore, the spot price for benchmark 62% ore delivered to north China, as assessed by commodity price reporting agency Argus, has climbed in recent weeks, ending at $151.40 a tonne on March 4. This was up from the pre-Ukraine invasion low of $130.75 a tonne on Feb. 17, and just shy of the $153.55 peak, hit on both March 3 and Feb. 10, which was the highest close since August last year. However, iron ore's recent rally is modest compared to other commodities affected by the Ukraine crisis, such as crude oil, natural gas and wheat, and the steel ingredient remains well short of the record $235.55 a tonne from May last year. While a rally back to those levels seems unlikely given the current state of supply and demand fundamentals, there does appear scope for further gains. Also Read:
War in Ukraine puts shipping’s recovery in jeopardy ’s ongoing invasion of has the bracing for new shocks to its labor force, which relies on experienced crew from both countries. Ukrainian and Russian seafarers make up nearly 15% of the industry’s 1.9 million seafarers and a high proportion of its officers and ranked crew. Now Ukraine has conscripted men under 60 and forbidden them to leave the country, while some of those who are on board already have asked to go home to fight or reunite with their families. Flight bans have made it hard for Russian seafarers to get to their ships or to return home, and are interfering with crew rotations. Fears over the safety of crews and soaring insurance premiums are discouraging ship owners from sending vessels to Ukraine or Russia, according to the International Chamber of . Trade flows of goods from wheat to are expected to face disruption, it said in an e-mailed statement. Meanwhile, global sanctions against Russia and limited access to hard currency have made it difficult for seafarers to collect the wages they’re owed or to send money home to family. “The combined effect of Covid and the war is a disaster for shipping,” said Columbia Ship management Ltd. chief executive officer Mark O’Neil. “The restrictions on Russian and Ukrainian seafarers caused by the war, combined with Covid disruption, will wreak havoc on supply chains as well as driving seafarer wages ever higher.” Nearly all of the world’s economies have seen a drop in international trade as a result of disruptions triggered by the war, according to the Kiel Institute for the World Economy. The impact on shipping, one of the world’s oldest industries, was almost immediate after the invasion started. At least five commercial vessels have been damaged by explosions off Ukraine’s coast. At least one seafarer died, and the Panamanian-flagged cargo ship Helt sank last week outside the port of Odesa after an explosion. More than 140 ships with more than 1,000 seafarers on board have been trapped in Ukraine waters since the Russian invasion began. The nearby ports are closed, and ships aren’t leaving out of fear they’ll be hit by missiles or underwater mines in the Black Sea. According to the #Ukrainian media, the moment of the explosion from the missile strike on the ship "BANGLAR SAMRIDDHU" was caught on video. Some ship managers are advising Ukrainian crew to remain on board, saying it’s dangerous to return, and some workers have asked to extend their contracts rather than return to the conflict zone. Many seafarers live in Kherson or Mariupol, southern cities that are now under heavy Russian attack, said Kuba Szymanski, secretary general of InterManager which represents ship managers. Those who wish to return home are often taken to nearby European countries such as Poland and Romania to reunite with families or wait it out, he said. Most of the crew on board ships for BBC Chartering, a shipper based in Germany, are Russian or Ukrainian. Now the
such as Poland and Romania to reunite with families or wait it out, he said. Most of the crew on board ships for BBC Chartering, a shipper based in Germany, are Russian or Ukrainian. Now the company is concerned a high number of its Ukrainian crew want to get home to families, and any potential replacements in Russia can’t fly out of the country. “We carry heavy-lift cargo, so there’s a question of who is going to replace these crew members,” said Denis Bandura, a managing director for the firm’s Mideast unit. “The knowledge of lifting and storage of the cargoes comes from Russian and Ukrainian crews.” The crewing challenges are manageable for now, with some shipping companies sending Russians seafarers to the Middle East where Russian flights can still land. A.P. Moller-Maersk A/S, said it’s stopped crew changes in Ukraine due to security concerns and has set up Ukrainian mariners who were returning home temporary in Poland. There’s also the problem, for workers, of getting paid. Most Ukrainians banks have imposed limits on daily withdrawals of cash to protect from a run on banks, and many of the Russian financial institutions that process seafarers’ pay have been sanctioned. In the meanwhile, seafarers are getting paid in cash or having their salaries transferred to debit cards or credit cards, which will likely be hit with sanctions soon too. And on board vessels, tensions are rising. Columbia’s O’Neil said it’s told crew not discuss the war on board. He’s also sent regular videos to seafarers to encourage solidarity, empathy and respect. “Russian seafarers also feel villainized by many,” said O’Neil, who estimates there are about 600 Russians and 800 Ukrainians aboard its managed vessels at any one time. “Tensions on board vessels with mixed Russian and Ukrainian crews inevitably run high.” Also Read:
U.S., Japanese insurers back autonomous vehicle firm May Mobility U.S. auto insurer State Farm and Japanese insurance company Tokio Marine have joined in a $111 million round for autonomous vehicle technology , the Ann Arbor, Mich.-based company said on Tuesday. The funding will allow May Mobility to continue work with on self-driving people movers, May Mobility said in a statement. May said it is aiming to take human drivers out of vehicles in commercial operation by next year. State Farm, one of the largest U.S. auto insurers, invested through its arm, which puts money into startups working on technology that could improve vehicle safety. Insurance industry support for autonomous vehicle technology could be crucial as self-driving vehicle companies work to convince regulators that robot vehicles can be safer than human-driven ones. May said the latest funding around was led by Japanese investment firm 's Mirai Creation Fund II. May's fund raising comes at a challenging time for some autonomous and electric vehicle startups as investors have backed away from riskier ventures. Autonomous vehicle company Argo AI said last week it would cut 150 of its more than 2,000 employees worldwide.
Many buyers of Lamborghini in Indian Diaspora: CEO Stephan Winkelmann People of Indian origin have emerged as a large and expanding customer set for , though sales of its super-luxury cars are limited in India due to high taxes and lack of adequate infrastructure, said the Italian automaker's chairman and chief executive, . "There are more (Indian) owners than we sell cars in India. What is a bit of a challenge today for the Indian market, for sure, is the high taxation we have for our type of products, and then, the infrastructure," told ET. "These are the two main points why the market is not growing as it could. But we have a lot of Indians who are buying both (models) - whether it's Southeast Asia, the UK or North America." sells two models, Huracan and Urus, in India, priced between INR 3.21 crore and INR 4.99 crore (ex-showroom). In 2022, the company sold 92 vehicles in India. India levies a 28% GST rate on automobiles, with an additional cess ranging from 1% to 22%, depending on the type of the vehicle. Fully built imported cars such as the Lamborghini attract customs duty of 60-100% based on the size of the engine and cost, insurance and freight. Winkelmann spoke on a video call with ET after the company announced its half-yearly results. Lamborghini's global sales grew 5% to 5,341 units in the first half of 2023. Revenue and profit rose faster, at 6.7% and 7.2%, respectively, till June 30. To be sure, India is one of the fastest growing markets for Lamborghini, where the company expects to cross the three-digit mark in sales for the first time in the ongoing calendar year. But the contribution of India to its global sales remains negligible at about 1%. Overall, Winkelmann said, despite high inflation and recessionary trends in the major markets of the US and Europe, the company has not seen any impact on demand. "There was a surprise from the very beginning after Covid - our type of market was recovering very soon and faster than expected. And despite what was happening afterwards, with the chip shortage, with inflation, with the war in Ukraine, with the interest rates going up ... (these), so far, have not weakened our market," he said. The luxury carmaker has a strong order bank, with the Huracan and Urus sold out through the end of production till 2024. The new Aventador has pending orders running into three years, till 2026.
Greaves to launch top of the line model in its quest to 'democratise' electric mobility; taps connected tech to enhance competitiveness New Delhi: will launch a top-of-the-line connected two-wheeler to democratize by offering advanced features at an affordable or no additional cost, a top official of the company said. In a recent interview with ETAuto, , the Chief Technology Officer, Electric Mobility, shared the company's vision to revolutionize electric mobility in India by launching a top-of-the-line connected two-wheeler. The aim is to democratize electric mobility by offering advanced features at an affordable or no additional cost. Rajappa emphasized the symbiotic relationship between EVs and . According to him, electric vehicles are predominantly software-based entities, with software driving every aspect of their functionality, from powertrain management to battery performance. The integration of connected vehicle solutions allows OEMs like Greaves to customize powertrain performance based on regional conditions and user preferences. The connected technology also addresses concerns related to range anxiety, providing users with accurate estimates of their vehicle's true range. This information enables users to plan their charging needs more efficiently, making electric mobility more convenient and accessible. The data generated by the vehicle, sent to the cloud, becomes a valuable resource for users to plan their journeys, taking into account factors such as road temperature, etc. , Senior Partner & Group Head Business Performance Improvement Consulting (Auto, Engg. & Logistics) at , said, "Just like we saw in cars, even in two wheelers, customers prefer to get all the connected features, especially because many of them are the next generation customers. And they like that connectivity between the smartphone and the vehicle to come in as the first thing, and then more and more services to come in as well. The electric ecosystem also allows it as it's always a good idea to have the connectivity between the vehicle and between the charging stations, as well as because more and more software content is going into the electric vehicles, and even over the air updates and all necessitate that you have connectivity in the vehicle." Regarding Greaves' specific strategy, Rajappa highlighted its focus on ensuring reliability and dependability of the vehicles. The connected features are utilized for predictive maintenance, giving users advance notifications of potential issues. The system also helps users make informed decisions, offering alerts for aggressive driving patterns that may impact battery life. Greaves Electric Mobility, being an established player in the EV market, has accumulated a substantial amount of data from its fleet, covering millions of kilometers. Rajappa explained that this data has been crucial in gaining insights for the development of the next-generation vehicles. It has also provided valuable information for users,
millions of kilometers. Rajappa explained that this data has been crucial in gaining insights for the development of the next-generation vehicles. It has also provided valuable information for users, helping them optimize their usage, route planning, and charge station installations. As a culmination of these efforts, Greaves Electric Mobility is gearing up for a significant product launch in 2024. The company plans to introduce a new two-wheeler with enhanced features and advanced connected technology, reinforcing its commitment to making electric mobility accessible to the masses. The company aims to roll out this ambitious addition to its portfolio in the coming quarter. Sharma mentioned that, "it's not that you need to get a rupee for everything that you're offering. There is a value to that data that can be utilised later on also, because that's the gold mine that a connected ecosystem or a connected vehicle offers to a large extent. So I think from those perspectives, it certainly could be something which in the long run can be monetized, whether it's for improving the vehicle, or for using that data for players who are coming on board, like usage-based insurance." “Once we have a completely connected ecosystem interconnected between the infrastructure and the vehicle, it could be used even for condition monitoring of roads, “ he added. Rajappa provided a comprehensive overview of how connected technology is shaping the future of electric mobility, emphasizing the company's commitment to democratizing this transformative technology in India.
E-rickshaws continue to defy all rules in Delhi New Delhi: Improper parking, plying on prohibited or without insurance, and letting sit next to the driver were some of the major violations by in the city, according to Delhi Traffic Police data from January 1 till May 15. The maximum violations were reported from Najafgarh circle, followed by Tilak Nagar, Dabri, Mayapuri, Kotwali, Shahdara, Sultanpuri, Rajouri Garden, Nangloi and Punjabi Bagh. A total of 25,743 e-rickshaws were prosecuted for improper parking compared to 16,577 in the same period last year, a 55% rise. Plying on prohibited roads saw a slight decline of 4%, i.e., from 14,691 to 14,045. Other offences that saw a rise included driving without insurance/registration and letting passengers travel on the driver's seat. A total of 177 e-rickshaws were impounded this year, compared to 107 last year during this period. While e-rickshaws were introduced to ensure , their increasing numbers, from markets to Metro stations, have turned them into a nuisance, leading to massive congestion on Delhi's roads. Delhi Traffic Police officials said they had sent a proposal to the transport department regarding restraint in the registration of e-rickshaws by formulating a comprehensive policy to control and regulate the numbers. In CR Park, e-rickshaws parked on the side of the road occupy an entire lane, not only affecting the traffic movement, but also risking the lives of other commuters. Similarly, at Rajghat, which is a banned corridor, several e-rickshaws can be seen carrying goods that are often bigger than the vehicle, which can be dangerous for commuters. E-rickshaws seem to be missing, however, from upscale markets, which usually see shoppers using their own cars. Traffic officials said the operations of e-rickshaws were noticed in 2011 after the conclusion of the Commonwealth Games. While the have been operational for over a decade and are a crucial mode of transport for last-mile connectivity, they also occupy road space and hinder or slow down traffic movement. SS Yadav, special commissioner of police, traffic, said, "They ply mostly near bus stands and Metro stations and do not move until filled with passengers, causing congestion by blocking the road and creating havoc. The passengers are vulnerable as the design of e-rickshaws is faulty and their operation by non-licensed, untrained, underaged drivers makes them extremely dangerous." E-rickshaw drivers often jump signals and violate crucial traffic laws, endangering the lives of commuters, Yadav added. "It is pertinent to note that their batteries are also illegally charged overnight, which is another important safety issue and must be looked into," he said. According to experts, e-rickshaws are a boon but their rapidly growing numbers are also a cause for concern. Sewa Ram, professor of transport planning, School of Planning and Architecture, said the role of e-rickshaws was to provide last- and first-mile connectivity and, therefore,
also a cause for concern. Sewa Ram, professor of transport planning, School of Planning and Architecture, said the role of e-rickshaws was to provide last- and first-mile connectivity and, therefore, they may be suitable on feeder networks. "If they ply on the main networks, they will cause congestion and lead to unsafe conditions as well. In certain cases, they come to the main corridor to provide direct access to a Metro station or bus stop. It is advisable to define their area. It is equally important to augment public transport, as they complement it in some cases. The other unfortunate part is that they do not meet the standard requirements of safety," said Ram.
Mahindra Automotive ties up with Quiklyz for vehicle leasing on Wednesday said it has tied up with vehicle and leasing subscription platform , which allows customers to lease Mahindra vehicles in a hassle-free manner. Following this collaboration, the platform will now be available live on 's portal and across its , Mahindra Automotive said in a statement. The platform will offer convenience, flexibility and choice to customers across eight cities -- Mumbai, Pune, Delhi, Noida, Gurugram, Bengaluru, Hyderabad and Chennai. "The 'pay per use' model has been specifically designed keeping in mind the changing customer needs. Offering leasing options to customers through our sales channels will provide customers with flexibility and transparency in a simple and convenient manner," Veejay Nakra, chief executive officer (automotive division) of M&M Ltd, said. The customers will also be able to choose their preferred vehicles with the option to return, buy back or upgrade to a newer model at the end of the tenure, he said. "Quiklyz will help us target and leverage the potential of India's expanding car leasing market, further broadening our consumer portfolio," Nakra added. The monthly rentals for vehicles will start at as low as Rs 21,000 per month, which is inclusive of insurance, maintenance and roadside assistance with no additional down payment. The customer availing the service through the platform will have choice of tenure between 24 months and 60 months as well as have the flexibility to select annual kilometer options, starting with 10,000 km per year, according to the statement. Turra Mohammed, senior vice-president and business head at Quiklyz, said: " and subscription are becoming a new normal and cost-effective means of accessing a vehicle." The leasing and subscription industry, according to Tura, is expected to grow at a compound annual growth rate (CAGR) of 15-20 per cent in the next 5-10 years making it one of the fast-growing markets in India. "We are delighted to offer the complete range of SUVs (sports utility vehicles) from Mahindra on leasing through a digital platform. Our aim is to build a strong foothold in this market and further bolster Quiklyz's brand presence," he stated. Quiklyz also has the largest portfolio of electric vehicles on its subscription platforms. As part of this partnership, Quiklyz will offer Mahindra's Treo load vehicles for e-commerce fleet operators. "We are delighted to partner with Mahindra Auto in our Quiklyz journey. "The leasing and subscription module in India is currently at a nascent stage and coupled with the multi-faceted advantages accruing from Mahindra's auto sector, our spread and reach pan India would be an advantage," Raul Rebello, chief operating officer (core business) of Mahindra Finance, was quoted as saying. Also Read:
High taxation limiting growth of super luxury cars in India: Lamborghini chairman High taxation is limiting the growth of and the market will remain small although the growth rate will be high, according to Automobili Chairman and CEO . The Italian super sports carmaker, which on Tuesday reported a 4.9 per cent increase in its global deliveries at 5,090 units in the six months ended June 30, 2022, expects to have another record sales in India this year. "What we are always underlining (is) high taxation which is limiting (sales of) our , and therefore in the foreseeable future the size of the will stay small but the growth rate in terms of percentage is high," Winkelmann said in virtual interaction. He was responding to a query on the potential of the Indian market and the challenges that are limiting its growth. At present, fully built imported cars with petrol engines bigger than 3,000 cc or diesel engines larger than 2,500 cc with a CIF (cost, insurance and freight) value of more than USD 40,000 attract 100 per cent import duty. A 60 per cent import duty is levied on completely built imported vehicles with petrol engines smaller than 3,000 CC or diesel engines less than 2,500 CC with a CIF value less than USD 40,000. As per industry estimates, the segment in India comprising cars priced above Rs 2.5 crore clocked 300 units last year. Lamborghini, which sells a range of super luxury cars with prices starting from Rs 3.16 crore in India, recorded its best ever sales in the country in 2021 with 69 units, beating its previous best record in 2019 when it sold a total of 52 units. It had sold 37 units in 2020 in the country. On the company's performance in the Indian market, Winkelmann said Lamborghini has had a good growth rate and if everything goes as planned "we will have a record year in 2022". Asked when the company could cross the 100 units annual sales mark in India, he said the number is not important and Lamborghini would rather focus on the quality of its sales and customer care and take a gradual approach to growing the market. Globally, Lamborghini clocked a turnover of 1.33 billion euros in the first six months of 2022, a growth of 30.6 per cent over the corresponding period of 2021. Its operating profit also grew 69.6 per cent to 425 million euros from 251 million euros in the year-ago period.
'Create separate fund for accident victims of non-insured vehicles' New Delhi: Supreme Court-appointed amicus curiae for Justice J R Midha on Monday pitched for a to compensate involving . According to the International Road Federation (IRF), more than 50% of vehicles in India are not insured. Midha also expressed concern at pathetic in the country as well as poor care of drivers who are made to drive for hours without rest or proper sleep at night "A separate fund can be created by the government to compensate the non-insured motor vehicle owners or accident victims. "...a small cess can be added in fuel price or at time of registration of vehicles for such victims," he said while speaking at an event organised by the International Road Federation (IRF). As judge of Delhi High Court, Justice Midha framed a special scheme for time-bound settlement of within 90 to 120 days which was implemented in Delhi from April 2010. Expressing concern at the recent spate of drunk driving accidents in various parts of the country Midha said, "The restaurants should serve liquor to those only who have a vehicle driver or agree to hire a driver provided by the restaurant to drop him home." According to him, some restaurants in Mumbai started this concept for some time and this should be part of the bar licence of a restaurant service liquor. Also, speaking at the event, IRF President (Emeritus) K K Kapila said road accidents and resulting fatalities in India are an exceedingly serious problem. There is an urgent need to work in a coordinated manner to improve the scenario of road safety by bringing all stakeholders from all levels of governance, he added.
BMW India Introduces New Diesel Variants of the BMW X3 Gurugram: Powerful TwinPower Turbo engine for agile driving performance. Modern interiors ensure luxury, practicality of space and 'X-ness'. Focused and stress-free driving with BMW Head-up Display, Gesture Control and 360 Camera. Sportier orientation with the M Sport package. has launched two new diesel variants of the - X3 xDrive20d xLine and X3 xDrive20d M Sport. These diesel variants are locally produced and are available across BMW dealerships. With an emphasis on classic X-elements, the BMW X3 has a modern look along with the exhilarating zeal of performance and a powerful presence. Mr. , President, BMW Group India said, "The BMW X3 has been a trailblazing success in the premium mid-size SAV segment. Now available in xLine and M Sport trims, these versatile BMW X3 diesel models deliver exhilarating performance and efficiency in a rugged utility vehicle. With exquisite feel of the interiors along with innovative technologies, the BMW X3 is ready to serve you an experience that's nothing like you've felt before. The X3 packs in unlimited action wherever you go." The cars are available at an ex-showroom price of - BMW X3 xDrive20d xLine-INR 67, 50, 000 BMW X3 xDrive20d M Sport- INR 69, 90, 000 *Price prevailing at the time of invoicing will be applicable. Ex-showroom prices inclusive of GST (incl. compensation cess) as applicable but excludes Road Tax, Tax Collected at Source (TCS), GST on Tax collected at source, RTO statutory taxes 40,000 kms to 10 yrs upgrade to a new BMW. The new BMW X3. The design of the BMW X3 lays extreme emphasis on breadth and X typical elements give the front of the BMW X3 an extremely distinctive look. The angular BMW kidney grille with vertical air inlets in the triangular interpretation highlights its exceptional authority. The adaptive LED headlights complete the overall picture of the BMW X3 with a modern and focused expression. The rear features sculptured full LED taillights that further emphasize its presence. The M sport package gives the BMW X3 a sportier orientation. The BMW X3 xDrive20d M Sport exudes the M Sport character with M model inscription on entry sills, M exterior designation on front side panels and tailpipes finished in gloss chrome. The specific front apron features significantly larger air inlets and inserts finished in high-gloss black, as well as more pronounced air curtains. The window graphics, roof rails and BMW kidney frame and bars are available in high-gloss black. The M Sport trim includes the stylish 19-inch Y-spoke style 887 M alloy wheels. The interior boasts an exceptional level of comfort and functionality in an extremely modern ambience. Exclusive functions such as Multi-function Sport Steering Wheel, electrical seat adjustment with memory function, exterior mirror package add to the comfort. Driver and front passenger enjoy the superior sporty flair of a premium SAV. M Sport has an exclusive set interior package like
with memory function, exterior mirror package add to the comfort. Driver and front passenger enjoy the superior sporty flair of a premium SAV. M Sport has an exclusive set interior package like Sport seats, Sensatec perforated upholstery, M leather steering wheel with multifunction buttons, M interior trim adding the performance-oriented ambience. Panoramic glass roof and Welcome Light Carpet are few among the long list of features that create the perfect ambience. The electroplated trim elements on the air vents add a touch of elegance while emphasising the horizontal lines in the interior. Ambient Lighting with six dimmable designs creates an atmosphere for every mood. Features such as electroplated controls and 3-zone automatic climate control with extended options add to the overall luxurious feel. The boot has a capacity of 550 litres and can be expanded further to 1600 litres by folding down the 4040 split rear seat backrest. Thanks to the unrivalled BMW TwinPower Turbo technology, the diesel engine melds maximum power with exemplary efficiency and offers spontaneous responsiveness even at low engine speeds. The two-litre four-cylinder diesel engine of the BMW X3 produces an output of 140 kW hr in just 7.9 seconds with a top speed of 213 kmLocks' (ADB-X), extended 'Dynamic Traction Control' (DTC), Hill Start Assist and Hill Descent Control help to conquer every terrain. A host of BMW ConnectedDrive technologies continues to break the innovation barrier in automotive industry - BMW Gesture Control and Wireless Apple CarPlay® ECO PRO/SPORT and many other innovative technologies. BMW Safety technologies includes six airbags, (ABS) with brake assist, Attentiveness Assistance, Dynamic Stability Control (DSC) including Dynamic Traction Control (DTC), Cornering Brake Control (CBC), electric parking brake with auto hold, side-impact protection, electronic vehicle immobilizer and crash sensor, Dynamic braking lights, ISOFIX child seat mounting and integrated emergency spare wheel under the load floor.
Brent holds above USD80/bbl ahead of OPEC+ meeting Oil prices were little changed on Monday, with Brent holding above USD 80 a barrel, as investors awaited the meeting later this week for an agreement to curb supplies into 2024. Brent crude futures edged up 12 cents, or 0.2%, to USD 80.70 a barrel by 0028 GMT, while U.S. West Texas Intermediate crude futures were at USD 75.64 a barrel, up 10 cents, or 0.1%. Both contracts rose slightly last week, their first weekly gain in five, underpinned by expectations that Saudi Arabia and Russia could roll over voluntary supply cuts into early 2024 and OPEC+ might discuss plans to reduce further. Prices tumbled in the middle of last week after the Organization of the Petroleum Exporting Countries and their allies including Russia, known as OPEC+, postponed a ministerial meeting to Nov. 30 to iron out differences on production targets for African producers. Since then, the group has moved closer to a compromise, four OPEC+ sources told Reuters on Friday. "We still expect an extension of the unilateral Saudi and Russia cuts through at least 2024Q1, and unchanged group cuts, although a deeper group insurance cut is likely on the table," Goldman Sachs analysts said in a note. Ahead of the + meeting, estimated exports by countries have declined to 1.3 million barrels per day below levels in April, they added, in line with the group's supply targets. However, the United Arab Emirates is set to ramp up exports of flagship Murban crude early next year as a new OPEC+ mandate kicks in and barrels are diverted to the international market owing to refinery maintenance, according to traders and Reuters data. The International Energy Agency said it expects a slight surplus in global oil markets in 2024 even if the OPEC+ nations extend their cuts into next year. Commonwealth Bank analyst Vivek Dhar said: "With the IEA forecasting that global oil demand will only grow 0.9 million bpd next year, down from 2.4 million bpd growth in 2023, OPEC+ will have to show significant supply discipline, or at least jawbone such ability, to alleviate market worries of a deep surplus in oil markets next year." Oil prices have also stabilised after geopolitical tensions dialled down in the Middle East following a ceasefire in Gaza and an exchange of hostages and prisoners.
Hybrid vehicles have overtaken pure-play electric cars in India. What is the road ahead for EVs? are being overtaken by hybrids by a mile in India. In sharp contrast to global trends, Indian customers prefer , which have a blend of combustion engine and electric motors, to pure-play that are powered entirely by batteries or BEVs. They like to settle for an intermediate technology and familiarise themselves with alternative fuel before going all out for EVs. Car companies, quick to recognise this trait, have been luring the Indian clientele with 51 new model launches of hybrids compared with just 29 for EVs in 2023. Can things change for EV? Hybrids have become favourites due to their reliability, affordability and lower maintenance cost. Meanwhile, limited range, lack of charging infrastructure and expensive insurance are concerns that the EV ecosystem needs to aggressively address to make its India ride smoother. Hybrids are cheaper, too. The average retail price of a hybrid is INR 16.98 lakh while that of an EV is INR 17.71 lakh, according to market researcher Jato Dynamics. No wonder hybrids accounted for 12.6% of total passenger vehicle (PV) sales in January-November 2023, while the share of EVs was only 2.3%. “Hybrids may continue to play a crucial role as a ‘stepping stone’ or as an intermediate technology towards a full EV adoption, helping to educate and familiarise consumers with alternative fuel technologies before they transition completely to electric mobility,” says Ravi Bhatia, president, Jato Dynamics. Pravin Shah, an IT engineer in Mumbai, is one of those who got swayed by the hybrids. He had initially thought of buying an electric car, the Tata Nexon Fearless Long Range, priced at INR 18.69 lakh (ex-showroom). Instead, the 35-year-old eventually opted for a hybrid, the Maruti Suzuki Grand Vitara Zeta, priced at INR 18.33 lakh. “The challenges of charging infrastructure and lower residual value made me go for a hybrid,” says Shah, who says he will switch to electric in three-four years. While hybrids enjoy an edge in the Indian market, rapid advancements in EV technology could soon bridge the cost gap, say experts. EV has already turned a corner. Despite Shah’s reservations, the Nexon EV outshines a strong hybrid like the Grand Vitara on fuel cost—the difference works out to as much a 80% over two years, according to Jato Dynamics. There is a further 36% reduction of cost in maintenance and repairs. It is, therefore, cheaper to maintain an EV in the long run. The Indian EV market has seen an over 100% growth in demand since 2017. In 2023, EV sales doubled to 89,137 units in JanuaryNovember 2023, from 44,489 in the same period in 2022. However, sales of EVs in India are expected to moderate in 2024 because of a high base, told ET in a report on Friday. The leader in EVs, Tata Motors says annual sales of electric cars will touch 1 million units by 2028, thanks to new launches and expansion of charging infrastructure. EVs, it
in a report on Friday. The leader in EVs, Tata Motors says annual sales of electric cars will touch 1 million units by 2028, thanks to new launches and expansion of charging infrastructure. EVs, it estimates, will account for 25% of its sales by 2027 and 50% by the end of the decade. BRAND STRATEGY Automobile majors are adopting various strategies for EVs. Tata Motors, Mahindra and MG Motor have a long-term focus on EVs. Several electric players like US based Tesla and Fisker and Vietnambased VinFast are firming up their plans for India. VW and Skoda are planning EV launches in the next two-three years. Meanwhile, Maruti Suzuki, which is a leader in internal combustion and hybrid cars, and Toyota, which has launched hybrid models as an intermediate step, will eventually launch electric vehicles. Companies like Hyundai say they will introduce products and technologies based on customer and market demands. “We provide various options, such as petrol, CNG, turbo, diesel and electric powertrains, and manual, intelligent, automatic and dual clutch transmission. We are now at the forefront of a transition phase, offering multiple technologies and preparing for future advancements,” says Tarun Garg, COO, Hyundai Motor India. Hyundai launched the fully electric SUV Kona in India in 2019 and the long-range EV SUV, Ioniq 5, with a range of 631 km, in 2023. The Ioniq5 has sold 1,100 units so far. “We are committed to introducing more EVs as our strategy in India is focused on them in line with government policies,” says Garg. The Korean major plans to invest INR 20,000 crore in Tamil Nadu towards capacity expansion, new product development and EV battery pack assembly plant. MG Motor is the second largest electric passenger vehicle seller in India. “Our flagship EV model, MG ZS, and Comet have received positive response, with over 18,000 units sold till date. Around 30% of our sales comes from EV models,” says Gaurav Gupta, deputy MD, MG Motor India. Since an expansion of charging infrastructure is crucial for EVs to become mainstream, MG India partnered with a campaign called Shoonya–Zero Pollution Mobility by NITI Aayog and installed more than 12,000 charging touch points, including public and home chargers, across the country, adds Gupta. Hyundai has over 1,100 functional charging stations, and continues to grow this network. NO SINGLE ANSWER Many car manufacturers swear that EV is the technology of the future as it will help in meeting COP26 goals, and in going carbon-neutral in the long term. However, not everyone in the automotive industry is convinced that EV is the solution, or rather the only solution. “Electricity generation in India is largely through thermal means and hence EVs don’t really help in furthering COP26 objectives. Also, there are functional transportation needs in a growing economy. EVs, with high cost of acquisition and lack of charging infrastructure, have limits in addressing this requirement,” says a senior official of a car
transportation needs in a growing economy. EVs, with high cost of acquisition and lack of charging infrastructure, have limits in addressing this requirement,” says a senior official of a car company, who did not wish to be identified. Akio Toyoda, chairman of Toyota Motor Corporation, recently said that the EV industry was coming to realise that there isn’t a single answer to reducing carbon emission. Toyoda could be right. While the auto industry continues to pursue electrification, EVs will account for only 25% of PVs in India by 2030, and will coexist with other technologies such as ICE and plug-in hybrids, says Bhatia. At the annual convention of the Society of Indian Automobile Manufacturers recently, PM Narendra Modi, too, encouraged the auto industry to move towards decarbonisation through a range of powertrain technologies. “India needs alternate fuel technologies,” says Vikram Gulati, country head and executive vice-president, Toyota Kirloskar Motor. “We need to support all sustainable fuel technologies (hybrids/ ethanolblended, hydrogen and CNG) in a proportionate manner so that we are able to displace petrol and diesel.” Regulatory nudges –– such as CAFE or corporate average fuel efficiency that requires companies to lower greenhouse gas emissions and increase fuel efficiency–– are pushing manufacturers to launch more models in different segments. RC Bhargava, chairman of the country’s largest car maker, Maruti Suzuki, says hybrids are much more acceptable to the customer as it is cleaner than EVs. He says, “We need to have multiple technologies at different price points catering to a diverse set of customers to cut down the carbon footprint.” Shashank Srivastava, senior executive director of Maruti Suzuki, says the company will follow customer preferences “even as we meet regulatory requirements”. The future, it seems, will be powered by many powertrains.
Data centers to enable India’s trillion-dollar digital economy growth; Mumbai, Chennai to lead, report India’s data centre industry is poised for a sustained period of growth and much of this will centre around Mumbai and Chennai due to their business and infrastructure advantages, strategic location, and cable landing stations that are well-positioned to support this growth, said a Nxtra by Airtel and JLL India’s joint study. The expansion of the Indian data centre industry will be supported by the accelerated adoption of digital infrastructure led by the pandemic, rising digital usage, cloud consumption and the national 5G rollout. “India’s digital transformation is expected to create an economic value of USD1 trillion by 2025. Apart from existing sectors, new areas like agriculture, healthcare, logistics, jobs and skills market, e-governance and other areas, coupled with advanced technologies, will lead to significant growth of data storage and computing. The Indian data centre industry will act as the backbone, enabling India to emerge as a global hub,” said Rachit Mohan, Head, Data Centre Advisory, India, JLL. According to him, Mumbai and Chennai are expected to be the largest beneficiaries of potential growth in India’s data centre market in the backdrop of their locations and infrastructure. The analysis highlights that while India’s data centre future will largely depend on coastal cities with ready access to cable landing stations, landlocked cities like Delhi NCR, Hyderabad, Bangalore, Kolkata, and Pune will also be beneficiaries of a growing data centre industry. “The data centre industry is witnessing exponential growth, given India’s strategic location in the region. Chennai with its host of infrastructure advantages like highest internet speeds in the country, availability of submarine cable landing infrastructure, land supply, green energy options, supportive government policies and skilled manpower will emerge as the next data centre hub after Mumbai. As the industry attains infrastructure status, data centre expansion will further accelerate and with it the inherent need for sustainable measures,” said Rajesh Tapadia, CEO, Nxtra by Airtel. Tapadia believes sustainability will be a huge focus for the industry and our efforts to reduce carbon footprint will play a big role in India becoming a preferred data centre hub in Asia Pacific. Bengaluru has a higher proportion of on-premises data centres operated by global in-house centres of global technology firms. Pune has developed as a disaster recovery location for banking, financial services and insurance (BFSI) players due to its proximity to Mumbai. The Delhi NCR region’s data centre industry has been supported by regulatory incentives and has the potential for large demand from government organizations. Kolkata located in the densely populated eastern region of India is expected to have a new cable landing station in the next few years and will emerge as an important location.
organizations. Kolkata located in the densely populated eastern region of India is expected to have a new cable landing station in the next few years and will emerge as an important location. According to the joint research, India’s digital journey is accelerating rapidly, and cloud, data centre, and telecom players are adopting various strategies to capture a share of this growing market. Nxtra by Airtel, the data centre subsidiary of Bharti Airtel, itself is planning to invest Rs 5,000 crores by 2025 to further scale up its network of 11 large and 120 edge data centres, fully integrated with Airtel’s global submarine cable network and landing stations. The will include new data centre parks in key metro cities and will triple Nxtra by Airtel’s installed capacity to over 400 megawatts (MW). Nxtra by Airtel has commissioned three captive solar power plants to source green energy to power its and is committed to achieving 50% of its power requirements through renewable energy sources in the next 12 months. Also Read:
India's Russian oil imports top 1 mn barrels a day in Dec New Delhi: India's from Russia increased further in December 2022, topping 1 million barrels per day for the first time ever as Moscow remained its top oil supper for the third month in a row, according to data from . Russia, which made up for just 0.2 per cent of all crude oil India imported in the year to March 31, 2022, supplied 1.19 million bpd in December. This was higher than 909,403 bpd crude oil India imported from Russia in November and 935,556 bpd in October 2022. The previous record for most from Russia was in June 2022 when India bought 942,694 bpd, according to Vortexa. Russia, which in October 2022 for the first time surpassed traditional sellers Iraq and Saudi Arabia to take the No.1 spot, now makes up for 25 per cent of all oil imported by India. The imports peaked as a price cap was agreed upon by the EU on . Russian oil is available at much lower than USD 60 per barrel cap agreed, industry sources said. India is the world's third-largest oil-consuming and importing nation. It imports 85 per cent of its crude oil needs. Crude oil is converted into fuels like petrol and diesel at refineries. According to Vortexa, an energy intelligence firm, India imported 803,228 bpd of oil from Iraq in December and 718,357 bpd from Saudi Arabia. The United Arab Emirates overtook the US to become India's fourth largest supplier, selling 323,811 bpd oil in December 2022. The United States supplied 322,015 bpd, down from 405,525 bpd in November 2022. India's appetite for Russian oil swelled ever since it started trading on discount as the West shunned it to punish Moscow for its invasion of Ukraine. According to , India is aiming to pursue an oil import policy that will witness robust inflows from both the US and Russia in the foreseeable future, while stepping up efforts to diversify the crude basket even further to cushion the impact of any supply shock going ahead. "Although the Russia-Ukraine war has given an opportunity to the country's refiners to bring in plentiful volumes of crude at discounted rates from the largest non-OPEC supplier, but that has not led to a fall in of the US, as India looks to bolster its energy ties with Washington," it said. Prior to the Russia-Ukraine conflict, more than 60 per cent of the Indian crude basket was made up of Middle Eastern crudes, with the remainder made up of North American crudes at around 14 per cent, West African crudes at around 12 per cent, and Latin American crudes at around 5 per cent, with Russian grades accounting for only about 2 per cent. Since the war began, West African crudes have become more expensive for Indian refiners because they are mostly Brent-linked and are being pulled in by European refineries that are running low on Russian crudes. According to S&P Global data, the share of US crude in the Indian crude basket increased from 5-6 per cent in April to around 10 per cent in November last year. In the last quarter of 2022,
crudes. According to S&P Global data, the share of US crude in the Indian crude basket increased from 5-6 per cent in April to around 10 per cent in November last year. In the last quarter of 2022, the US displaced Kuwait to become the fifth-largest oil supplier to India. As per Vortexa, India imported just 36,255 barrels per day of crude oil from Russia in December 2021, compared to 1.05 million bpd from Iraq and 9,52,625 bpd from Saudi Arabia. There were no imports from Russia in the following two months, but they resumed in March 2022, soon after the Ukraine war broke out in late February. India imported 68,600 bpd of Russian oil in March 2022, which increased to 266,617 bpd in the following month and reached the previous peak of 942,694 bpd in June 2022. But in June 2022, Iraq was India's top supplier with 1.04 million bpd of oil. Russia, in that month, became India's second-biggest supplier. Imports dipped marginally in the following two months. They stood at 876,396 bpd in September 2022 before rising to 935,556 bpd in October, according to Vortexa. The Indian government has been vehemently defending its trade with Russia, saying it has to source oil from where it is the cheapest. The government has previously indicated that oil companies will continue to buy oil from Russia outside the price cap. External Affairs Minister S Jaishankar on December 7 told the Rajya Sabha that Indian refiners will continue to look for the best deals in the interest of the country. "We do not ask our companies to buy Russian oil. We ask our companies to buy oil (based on) what is the best option that they can get. Now, it depends on what the market throws up," he had said while replying to clarifications sought by MPs on his suo moto statement on foreign policy. The companies will go after sources that are more competitive, Jaishankar had added. "Please do understand it's not just we buy oil from one country. We buy oil from multiple sources, but it is a sensible policy to go where we get the best deal in the interests of the Indian people, and that is exactly what we are trying to do," he had said. The executive body of the has asked its 27 member countries to cap the price of Russian oil at USD 60 a barrel as part of the West's attempt to squeeze Moscow's oil revenues and limit its ability to wage war in Ukraine while keeping global prices and supplies steady. From December 5, 2022, western shipping and insurance companies are prohibited from handling Russian oil sold above the price cap. However, ships loaded with Russian oil before December 5 and unloaded at their destination before January 19, will not be subject to the price cap. A top government official said India can continue to buy Russian oil if it can send ships, cover insurance and devise a mode of payment. Also Read:
Lamborghini to launch its first hybrid car in India next year, fully electric expected in 2028 New Delhi: Italian sports car maker Automobili Lamborghini is in works to launch its first hybrid car for India in 2023 as part of the global strategy towards electrification, said a senior company official. “Whenever a new car is introduced in the global market, we always try to see how soon we can bring it to customers in India. This strategy has been a key pillar for our growth in the country. Globally, Lamborghini will introduce a hybrid car in 2023 and India will also get its first hybrid next year,” Sharad Agarwal, Head, told ETAuto. The super luxury carmaker which has plans to bring its fully electric car in 2028 to the global market also said that it will introduce it to India around the same time. Without specifying the exact timeline, Agarwal said, “The electric car from Lamborghini will be launched in India before 2030. We will not wait 2-3 years to bring a car to the market (post its introduction in the global market).” The company on Thursday launched the Huracan Tecnica model in India with a starting price of INR 4.04 crore (ex-showroom). “Globally, we unveiled the car in April this year and within four months, we are launching it in India." Lamborghini recorded its best sales in the domestic market in 2019 when it sold 52 units. However, the record was broken in 2021 when it managed to sell 69 cars. In 2020, the company sold only 37 units. The sales volumes are considered healthy given the fact that the on-road price range of its cars starts at INR 4 crore, and these are fully imported thereby attracting heavy taxes in the country. Currently, cars that are fully built and imported with petrol engines larger than 3,000 cc or diesel engines over 2,500 cc with a CIF (cost, insurance and freight) value of more than USD 40,000 attract 100% import duty in India. Cars that are completely built and imported with petrol engines smaller than 3,000 cc or diesel engines less than 2,500 cc with a CIF value less than USD 40,000, levy a 60% import duty. The Italian automaker is part of German auto group Volkswagen and sells cars like the Huracan and Aventador in India, along with the Urus SUV launched in 2018. It has a network of three dealerships across the country in Delhi, Mumbai and Bangalore. Despite the luxury super car segment being a niche market in the country, about 1/4 th of the company's sales comes from Tier-2,3 cities. Even though Lamborghini has delivered its first car in Shillong recently, and is getting a good response from states like Bhubaneshwar, Kolkata, the company is in no hurry to open a showroom in the East. “Getting a dealer partner in the region is rather easy but the current size of market in the East is not yet grown to the potential for opening an exclusive Lamborghini dealership. We would want to ensure the long term sustainability of the partner.” The typical age for a Lamborghini sports car owner in India ranges between
for opening an exclusive Lamborghini dealership. We would want to ensure the long term sustainability of the partner.” The typical age for a Lamborghini sports car owner in India ranges between 25 to 45 years but with its best selling model Urus, the company has seen the buyers up to the age of 55 years. Currently, its models have a waiting period of about one year in the country. Talking about the demand in the current year, he said, “We are positive about the growth momentum for this year. However, the segment is not growing to its market potential and the size of the segment does not fully reflect the kind of potential we have in the Indian market." According to him, there are four key factors hampering the growth in the country- taxation, currency valuation viz-a-viz euro or dollar, infrastructure development and the general perception of luxury cars in the country. “While the infrastructure is fairly developing, devaluation of currency is a major concern as just due to this, the average price of the segment has almost changed by 50% in the last decade.” Early this year, the company recorded cumulative sales of 400 units in India since its full business operations in the country in 2007. Among the global markets, the US remains Lamborghini’s best selling market across the world, with over 2,500 cars sold last year. When asked if India can reach the volume size of the US market for Lamborghini, Agarwal exclaimed, “Why not! India has a huge potential and can definitely reach that spot but we cannot define by when.” India is also one among the top 5 in Asia-Pacific regions for the company “but it is not where it should be.” Other automakers in the super luxury car segment in India include Porsche, Ferrari, Aston Martin, Jaguar, Lexus, Maserati, Mercedes Benz, BMW. Also Read:
Changes in the works to make roads surety bonds lucrative: Nitin Gadkari New Delhi: Changes will be made to the surety bond offering in road making contracts to make it more lucrative, said road transport and highways minister . Speaking at a CareEdge Ratings event in Delhi on Tuesday, he said the present surety bond offering has found no takers. "It took us three years to introduce the product after following up with regulatory authorities. The bond can be offered in place of a bank guarantee. But they have made the product so restrictive that no contractor can avail it," Gadkari said. surety bonds can be used as a substitute for bank guarantees in government procurement tenders. The Insurance Regulatory and Development Authority of India ( ) had issued guidelines for these bonds and allowed their issuance from April 1, 2022. The IRDAI's guidelines listed six types of surety contracts. These contracts are considered essential for meeting the infrastructure development goals of the country. In April 2022, the Centre had said that these bonds will be accepted as a substitute for bank guarantee in government procurements. The government's intention was to reduce indirect cost for suppliers and work contractors. It is estimated that banks seek 30-50% of cash money margin (from smaller construction companies), which is then stuck in the bank guarantees.
Lohum and Vecmocon collaborate on EV Battery lifecycle management , producer of sustainable energy transition materials, and , an Indian EV intelligence company, have announced a partnership focused on enhancing electric vehicle (EV) battery lifecycle management. This collaboration will combine Lohum's battery testing technology and Vecmocon’s battery intelligence and real-time data monitoring to improve battery safety, reliability, and longevity. Vecmocon's real-time data collection, supported by machine learning, will be synchronized with Lohum’s data systems. A key feature is the integration of battery parameters from Vecmocon's i-VEC™ drive offering. The collaboration aims to optimize usage, prolong battery life, encourage second-life battery utilization, and guide effective recycling of Li-ion batteries. Lohum's expertise in assessing battery second life is based on sophisticated algorithms and testing methods that calculate the remaining useful life of batteries. With the aid of Vecmocon's Vehicle Intelligence Platform, Lohumintends to refine its DETX™ platform, which oversees battery buybacks and material price indices. The platform's precision in evaluating battery value is expected to be top-notch due to this collaboration. In a combined effort, the two companies aspire to power more than 100,000 batteries within the upcoming two years through an AI-powered battery management system and a vehicle intelligence module. , Founder & CEO of Vecmocon, commented on the partnership, "This collaboration will help our clients in improving the performance of their batteries & extending life thus improving vehicle performance. This collaboration will also help the complete EV ecosystem of service, insurance, finance and used vehicle marketplaces." , Founder & CEO of Lohum, expressed optimism about the collaboration, noting its alignment with the mission of advancing sustainable technologies and contributing to a circular economy for EVs in India. This initiative could significantly cut EV financing and insurance expenses and introduce greater clarity to the used energy transition asset landscape.
South Korea to offer USD 5.3 billion in financing to EV battery firms will extend 7 trillion won (USD 5.31 billion) in financial support to domestic battery makers over the next five years to help them respond to the United States' Inflation Reduction Act (IRA) and to boost their competitiveness in the sector, the industry ministry said. The government will extend the financing at lower rates and insurance premiums, among other things, to support battery firms' facility investment in . The IRA calls for giving up to $7,500 in tax credits to EV buyers whose vehicles are assembled in North America, according to the Ministry of Trade, Industry and Energy, reports Yonhap news agency. It also requires EV batteries to be made with a certain proportion of minerals mined or processed in the U.S. or countries or regions that have free trade agreements with Washington. "As the IRA has caused global business circumstances in the battery sector to change fast, the government and the private sector need to work together for solutions. The government will fully support battery makers for their continued achievement in the global market," Industry Minister Lee Chang-yang said while presiding over a meeting with battery companies and institutions concerned. South Korea also plans to push for new projects on the development of lithium iron phosphate batteries to help companies make inroads into a new market. Greater tax incentives will be eyed for companies making an investment in battery materials and related fields. In an effort to secure technology prowess, South Korea will seek to establish a "mother factory" or a hub of cutting-edge technology development, research, production and other core functions at home, according to the ministry. The country's three major battery makers -- LG Energy Solution, SDI and SK On -- have pledged to make a fresh investment of 1.6 trillion won combined over the next five years.
Studies find automatic braking can cut crashes over 40% DETROIT - Two new U.S. studies show that automatic emergency braking can cut the number of rear-end automobile crashes in half, and reduce pickup truck crashes by more than 40%. The studies released Tuesday, one by a government-auto industry partnership and the other by the insurance industry, each used crash data to make the calculations. Automatic emergency braking can stop vehicles if a crash is imminent, or slow them to reduce the severity. Some automakers are moving toward a voluntary commitment by 20 companies to make the braking technology standard equipment on 95% of their light-duty models during the current model year that ends next August. A study by The Partnership for Analytics Research in Traffic Safety compared data on auto equipment with 12 million police-reported crashes from 13 states that was collected by the National Highway Traffic Safety Administration, the partnership said in a statement Tuesday. The group studied forward collision warning as well as emergency braking. The group found front-to-rear crashes were cut 49% when the striking vehicle had forward collision alert plus automatic braking, when compared with vehicles that didn't have either system. Rear crashes with injuries were cut by 53%, the study found. Vehicles with forward collision warning systems only reduced rear-end crashes by 16%, and cut rear crashes with injuries by 19%. Automatic emergency braking works well in all conditions, even when roadway, weather or lighting conditions were not ideal, the study showed. The group also looked at lane departure warning systems, and lane-keeping systems, which keep vehicles in their lanes. They reduced crashes from autos leaving the roadway by 8% and road-departure crashes that cause injuries by 7%. "These emerging technologies can substantially reduce the number of crashes and improve safety outcomes," said Tim Czapp, senior manager for safety at European automaker Stellantis, the industry co-chair of the partnership's board. In the other study, the Insurance Institute for Highway Safety found that automatic emergency braking reduces rear crash rates for pickups by 43% and rear-end injury crashes by 42%. Yet pickups are less likely to have automatic braking than cars or SUVs despite posing more danger to other road users, the IIHS found. "Pickups account for 1 out of 5 passenger vehicles on U.S. roads, and their large size can make them dangerous to people in smaller vehicles or on foot," the institute's Vice President of Research Jessica Cicchino said in a statement. Mitsubishi, Ford, Mercedes-Benz, Stellantis (formerly Fiat Chrysler), Volkswagen and Honda have filed documents with the government this year saying they've made emergency braking standard on at least 90% of their models. General Motors reported that only 73% of its models had the technology at the end of the 2022 model year, but a spokesman said GM would hit 98% by the end of the current model
90% of their models. General Motors reported that only 73% of its models had the technology at the end of the 2022 model year, but a spokesman said GM would hit 98% by the end of the current model year as long as there aren't supply chain issues. In addition, BMW, Hyundai, Mazda, Subaru, Tesla, Toyota, and Volvo passed 90% last year, according to the IIHS.
Stellantis Pro One begins delivery of hydrogen vehicles to Hysetco is the best-selling automobile manufacturer in France, Italy and Spain, both in the electric market and in the all-energy market, including Fiat Professional, the best-selling brand in Italy, as well as a first place on the electric vehicle market in France for with the Peugeot e-208. , Stellantis Commercial Vehicles Business Unit, has delivered fleet of Peugeot e-Expert hydrogen to , European leader in hydrogen mobility. The Peugeot Partner and Rifter are the best-selling models in Spain on the all-energy market, gaining a market share of 9.7% for the month of January. Stellantis is the all-electric market leader in the UK with a 33% share and records an increase in its all-energy market share to reach 2nd place (27.17% market share); is also showing great success with growth of one point compared to last year to reach 9.85% market share. Vauxhall has thus become the third largest LCV manufacturer in the United Kingdom. In Germany, Stellantis' performance was particularly remarkable for light commercial vehicles with its Citroën, Fiat Professional, Peugeot and brands: thanks to a clear increase in sales (up to 58%), the market share of the new business unit One grew significantly, reaching 22.6% in January. Nearly one in four new light commercial vehicles registered in Germany was a Stellantis vehicle. By securing 48.6% of the all-energy market, Stellantis unquestionably dominates the sector in Portugal. Stellantis Pro One also continues to stand out as the leader in the electrified vehicle market with a 22.4% increase in sales in January, securing a market share of 46.2%, with Peugeot being the most popular brand. sold. Continuing this excellent start to the year, Stellantis will deliver a fleet of Peugeot e-Expert Hydrogen to the French company Hysetco, European leader in hydrogen mobility, in the coming months. These vehicles will be offered to professionals as part of the Hysetco all-services offer (maintenance and repairs, insurance, replacement vehicles, administrative formalities, training, etc.), specifically designed for professional uses, such as the transport of people (shuttles, taxis accessible to people in wheelchairs, etc.) and logistics. This deployment will constitute the largest fleet of light utility vehicles running on hydrogen dedicated to this type of use. “With a new delivery of and our excellent results at the start of 2024, Stellantis Pro One stands out once again for the diversified offering of its wide range of models to support our professional customers in their transition to a zero-emission mobility. Thus, we are the first manufacturer in the world to market a range of hydrogen electric vehicles covering two market segments to offer our customers a complementary solution to electric vehicles,” , director of the , said.
United Auto Workers strikes spread as 7,000 more workers at two plants join the picket line The union expanded strikes against Detroit Friday, ordering 7,000 more workers to walk off the job in Illinois and Michigan to put more pressure on the companies to improve their offers. It was the second time the union has widened the walkouts, which started two weeks ago at three assembly plants before the most recent addition of a Ford plant in Chicago and a factory near Lansing. Union President told workers in a video appearance that the strikes were escalated because Ford and GM refused "to make meaningful progress" in contract talks. Jeep maker Stellantis was spared from the third round of strikes. Ford and GM shot back as a war of words with the union also intensified. Ford accused the UAW of holding up a deal mainly over union representation at electric vehicle battery plants, most of which are joint ventures with a Korean manufacturer. "We still have time to reach an agreement and avert a real disaster," Ford CEO Jim Farley said. The company said the work stoppages are starting to affect fragile companies that make parts for the factories on strike. GM's manufacturing chief said the union was calling more strikes "just for the headlines, not real progress." The GM plant in Delta Township, near Lansing, makes large crossover SUVs such as the Chevrolet Traverse and Buick Enclave. A nearby metal parts stamping plant will remain open, Fain said. The Chicago Ford plant makes the Ford Explorer and Explorer Police Interceptors, as well as the Lincoln Aviator SUV. Fain said union bargainers are still talking to the companies, and he was hopeful they could reach deals. Stellantis, he said, made significant progress Friday by agreeing to unspecified cost-of-living raises, the right not to cross a picket line and the right to strike over plant closures. Raneal Edwards, a longtime GM employee who works at the Lansing-area factory, said she was "shocked but happy" to hear that her plant would join the strike. "I feel like they don't understand that this is about more than wages," Edwards said. "It's about having security at our jobs." Edwards said the UAW's strategy of slowly adding more plants will work. "I love it because it keeps us on our toes. No one knows what's next," she said. But in a note to workers Friday, Edwards' boss, GM manufacturing chief Gerald Johnson, said the company has yet to receive a counteroffer from union leaders to a Sept. 21 economic proposal. Automakers have long said they are willing to give raises, but they fear that a costly contract will make their vehicles more expensive than those built at nonunion U.S. plants run by foreign corporations. Ford's Farley accused the union of holding an agreement hostage over union representation of battery plant workers. On a conference call with industry analysts, he said high wages at battery plants would raise the price of Ford's electric vehicles above those from Tesla and other
of battery plant workers. On a conference call with industry analysts, he said high wages at battery plants would raise the price of Ford's electric vehicles above those from Tesla and other competitors. "Record contract? No problem. Mortgaging our future? That's a big problem. We will never do it," Farley said. Ford's battery plants, Farley said, have not been built. "They have not been organized by the UAW yet because the workers haven't been hired and won't be for many years to come," he said. Fain later accused Farley of lying and said the union gave Ford a counteroffer Monday but has not heard back. He stressed that there is no impasse, although they're far apart on economic issues such as defined-benefit pensions for all workers and health insurance for retirees. "We've had good discussions. There's times we think we're getting somewhere, and then things just stop. And it's not just Ford, it's all the Big Three, and you can pick an issue," he said. Fain also said "job security in the EV transition" remains an issue. The union insists that labor expenses are only 4% to 5% of the cost of a vehicle, and that the companies are making billions in profits and can afford big raises. Wedbush analyst Dan Ives said the expanded strikes show both sides are digging in for a potentially long battle. Ives wrote in a note to investors that President Joe Biden's administration is watching union demands collide with his push for cleaner electric vehicles. Biden, who has billed himself as the most union-friendly president in history, traveled Tuesday to the Detroit area to walk picket lines with workers at a GM parts warehouse. Republican front-runner Donald Trump also traveled to the Detroit area this week for a rally at a nonunion parts maker. Offers on the table from the companies will add $3,000 to $5,000 to the cost of an average electric vehicle that would be passed on to consumers, Ives wrote. The electric vehicle battery plants are a huge issue for the union's future. Some industry executives, including Farley, say building EVs will take up to 40% fewer workers because they have fewer parts. So the union is looking to organize battery plants and win top wages so displaced workers have somewhere to go, especially those making combustion engines. Other industry officials, including GM CEO Mary Barra, say there will be enough jobs for all as the industry moves away from gasoline vehicles. The automakers' last known wage offers were around 20% over the life of a four-year contract, a little more than half of what the union has demanded. Other contract improvements, such as cost of living increases, restoration of defined-benefit pensions for newly hired workers and an end to wage tiers within the union are also on the table. The union went on strike Sept. 15, initially targeting one assembly plant from each company. Then last week it added 38 parts-distribution centers run by GM and Stellantis. Ford was spared from that expansion because talks with the
initially targeting one assembly plant from each company. Then last week it added 38 parts-distribution centers run by GM and Stellantis. Ford was spared from that expansion because talks with the union were progressing then. The union has structured its walkouts so the companies can keep making big pickup trucks and SUVs, their top-selling and most profitable vehicles. Previously it shut down assembly plants in Missouri, Ohio and Michigan that make midsize pickup, commercial vans and midsize SUVs, which aren't as profitable as larger vehicles. The new strikes against GM and Ford target crossover SUVs that are big money makers for both companies. In the past, the union picked one company as a potential strike target and reached a contract agreement with that company to be the pattern for the others. But this year, Fain introduced a novel strategy of targeting a limited number of facilities at all three automakers. About 25,000, or about 17%, of the union's 146,000 workers at the three automakers are now on strike.
Goa to implement amended Motor Vehicle Act from midnight: Official Panaji: The Goa government will impose the amended Motor Vehicle Act in the state from midnight, which imposes severe penalties on . State Director of Transport Rajan Satardekar told reporters on Thursday that the Road Transport Authority and police were fully geared up to impose the new regulations, which will witness a steep spike in related to over-speeding, driving without a valid licence, etc. "The Motor Vehicle act was amended sometime back. We are starting its implementation from April 1. The fines under the new MVA have been increased and power to compound has been given to the police and RTO department. So, the implementation will begin at 12 midnight," Satardekar said. The implementation of the MVA Act, which was passed in Parliament in 2019, was delayed amid opposition from civil society as well as politicians, both from ruling and opposition camps, on account of the steep nature of fines. Satardekar, however, said that the Goa government was duty-bound to implement the new rules, because of strictures from a Supreme Court appointed committee which is monitoring the implementation of the amended act. "It is not possible to keep it on hold. We are already facing flak from the Court. It has already been deferred twice," he said. Under provisions of the amended 2019 Motor Vehicle Act, riding triple seat on a two-wheeler will attract a fine of Rs 1,000 plus a three month suspension, driving a vehicle without permit or licence will ensure a fine of Rs 10,000, over-speeding will set you back by a fine ranging between Rs 1,000 and Rs 2,000, while driving an un-insured vehicle can get you a fine of Rs 2,000. Satardekar on Thursday chaired a meeting of RTA and National Informatics Centre officials to ensure that the technological framework for the implementation of the new rules, including updating of PoS machines was in place. "We had a meeting regarding IT implementation to check updation of PoS machines and the system. We are ready with that. We had a meeting with NIC. We have already sent a letter to the police. It will be smooth from tomorrow onwards," the top official said. He also urged vehicle owners to drive carefully in order to avoid fines from April 1. "We have also started awareness through media and social media. So, I request everyone to follow the law. Do not give an opportunity to impose the fine. Only if there is a violation, that the question of fines arises," Satardekar said.
Russia says it has rerouted all oil exports hit by Western embargo has successfully redirected all its crude oil exports affected by Western sanctions over Ukraine to "friendly" countries, Energy Minister Nikolai Shulginov said on Tuesday, while still a decline in output this year. The West imposed wide-ranging sanctions, including an embargo on seaborne , after Moscow sent its armed forces into Ukraine in February 2022. "I can say today that we have managed to completely redirect the entire volume of exports affected by the embargo. There was no decrease in sales," Shulginov told an energy forum. Shulginov reiterated that production was expected to decline in 2023, as Moscow comes under pressure from Western restrictions and a lack of European buyers. Speaking at the same event, Alexander Dyukov, CEO of Russian oil major Gazprom Neft, said that 2023 would be more difficult than 2022 and the pressure from sanctions would grow. INDIA Shulginov said Russia had been working to reroute its oil and oil product exports to Asia, Africa, Latin America and the Middle East from its traditional markets in Europe. India was the biggest buyer of Russia's benchmark Urals grade crude in March. Deliveries to India are set to account for more than 50% of all seaborne Urals exports this month, with China in second place. Deputy Prime Minister Alexander Novak said Russian oil sales to India jumped 22-fold last year, but he did not specify the volume sold. Novak said energy revenues accounted for 42% of Russia's federal budget in 2022, up from 36% in 2021. He said Russia's energy industry was sustainable, despite the challenge of Western sanctions He said Russia needed to focus on boosting energy exports to so-called "friendly" countries and would continue developing the insurance tools needed to support this trade.
OPINION: Oil prices to remain volatile as geopolitical risks persist New Delhi: Crude oil prices have surged since ’s invasion of , and other geopolitical supply risks globally and the latest uncertainty stemming from the EU’s Russian ships insurance ban are set to stoke even more volatility and keep oil prices elevated amid robust demand. Dated Brent is expected to average $100-115 per barrel through the rest of the year and the market to remain in a cycle of two steps forward, one step back. Global in May took one step forward with a sequential growth of 1.7 million bd in 2022, driven primarily by India, and by countries such as Indonesia, Singapore, Malaysia, Thailand, the Philippines and Vietnam as economic activity accelerates. Platts Analytics projects India’s oil demand to grow by 245,000 bd this year. Russia's seaborne crude exports have not tapered significantly despite strict sanctions, reflecting continued purchases by buyers in India and China. Until Russia’s invasion of Ukraine, India very rarely bought Russian oil. However, with Russian crude trading at record lows in recent months, the country's refiners have changed their crude diets. Chinese demand for Russian ESPO crude has also been robust despite the recent lockdowns, with its reliance on Brazilian shipments dwindling and ultimately falling to zero in May for the first time since January 2016. At least nine cargoes of Russian Urals, amounting to 880,000 mt, are set to arrive in Shandong for independent refineries in June, with six cargoes scheduled to head to Qingdao port, two to Yantai and the rest to Rizhao. EU stringent moves set to pinch The EU published details of its sixth sanctions package against Russia June 3, including phasing out Russian crude imports in six months and refined products in eight months. Several insurance companies had already been refraining from providing insurance cover to ships in which Russian entities had financial stakes and non-Russian ships carrying Russian cargoes since the Ukraine war began. The EU’s sixth sanctions package further prohibits EU operators from insuring and financing the seaborne transport of Russian oil to third countries after a wind-down period of six months. With the latest explicit sanctions against insuring Russian ships, those carrying cargoes to and from Russia will do so at their own risk and invite stringent penalties if their voyages are detected. While uncertainty abounds as to how sweeping this ban could be for global oil markets, the new importing and shipping insurance sanctions will likely lead to crude exports gradually declining over the next six months by 2 million bd and compliance at a lofty 182.5 per cent. OPEC+ on June 2 announced it would raise quotas by 648,000 bd for August — about 50 per cent higher than the recent monthly increases. US strategic petroleum reserve releases are ramping up quickly, adding 800,000-1 million bd, which will allow demand to average 103.8 million bd above the average 2019,
the recent monthly increases. US strategic petroleum reserve releases are ramping up quickly, adding 800,000-1 million bd, which will allow demand to average 103.8 million bd above the average 2019, pre-pandemic level,” Platts Analytics said, adding that the oil market should brace for continued volatility in the coming months.
Skoda India launches new range for Kushaq and Slavia starting at INR 10.69 lakh New Delhi: Auto India, announced the Kushaq and Slavia enabling enhanced accessibility to its line-up of cars that are 5-star rated and fully safe for both adults and children. The Kushaq and Slavia – earlier available as active, ambition and style – are now rechristened as classic, signature and prestige. The Kushaq, in addition to these three variants also gets the Onyx on the value end and the Monte Carlo at the premium end of the line-up. The all-new pricing is applicable on all engine and transmission options of the Kushaq and select variants on the Slavia. Both cars are powered by a 1.0 TSI petrol with a six-speed manual and automatic, and a 1.5 TSI petrol with a six-speed manual and seven-speed DSG. Both the Kushaq and Slavia come with six airbags as standard across the range, and have achieved a full 5-stars for adults and children under the Global NCAP tests, reflecting the brand’s uncompromising stand on safety, the company said in a media release. Benefits Customers stand to benefit by upto 10% based on choice of model, variants, engines and transmission. The maximum benefit will be on the Kushaq Monte Carlo, which will now be offered at an outstanding price point, while the Slavia entry point will be extremely accessible. These new prices also enable customers and fans to avail additional reductions in registration and insurance further stretching the value proposition for the entire line-up. Skoda Auto India recently introduced six airbags as standard across all its variants. The new pricing continues making safety as top priority, and offers premium features like ventilated seats, electric seat adjust, wireless Android Auto and Apple Carplay, a 25.4 cm in-car entertainment interface and a sub-woofer embedded in the boot among other comforts. The new value proposition on Kushaq and Slavia will be offered with complete freedom for customers to select what best suits their preferences. This can be clubbed across three large pillars. The first is the unmatched price leverage that customers can enjoy. The second, will be in the form of after-sales offers, maintenance packages and the overall cost of ownership. And thirdly, are the sales levers and value-added services. Customers can select from a choice of exchange & corporate bonus options, special finance & insurance schemes run through the banking partners, extended warranty and a host of service and maintenance packages. In the overall cost of ownership and customer experience, the superior mileage offered on both Kushaq (*upto 19.76 KmL), along with transparency, quicker servicing timelines, and the expanding dealer footprint have taken forward Škoda Auto India’s strong focus on customer delight. “Skoda Auto India is ramping up the network and personnel to get ready for high volume increase with the upcoming launch of the Compact SUV. Our dealers need to be motivated and profitable, with highly trained
India is ramping up the network and personnel to get ready for high volume increase with the upcoming launch of the Compact SUV. Our dealers need to be motivated and profitable, with highly trained and experienced sales consultants. And that’s why we have launched the best-ever value proposition on the Kushaq, all across the country, supported with tailor-made, unique customer offers in line with customers’ needs and preferences,” added Mr. Janeba, the release added. More sustainable The company’s 1.0 TSI engine recently got certified as E20 compliant by ARAI (Automotive Research Authority of India) and has already debuted in the new Kushaq Onyx AT with other 1.0 TSI cars to roll out soon. The 1.5 TSI is currently undergoing testing, the results of which will be made available by Q4 2024. This certification makes the 1.0 TSI the first ever powerplant in India to receive certification from a governing authority. It is in line with government policy requiring every car in India to be E20 complaint from April 1, 2025. Engines that are E20 compliant run on 20% ethanol and 80% petrol, reducing the amount of fossil fuel consumed, reducing emissions and increasing sustainability. Skoda Auto India has a fleet that is fully 5-star safe for both adults and children as tested by Global NCAP and Euro NCAP. The company also offers a 4-year150,000kms making it one of the most comprehensive warranty packages in the company’s endeavour to offer a hassle-free ownership and maintenance experience. Petr Janeba, Brand Director, Skoda Auto India, said: “We have been in India for nearly a quarter of a century, and our commitment to this market is absolute. We have always been looking at offering more in product and affiliated actions. Since the announcement of our all-new compact SUV planned for 2025, we have maintained that with this new car, we are targeting new markets, younger customers and more accessibility to the brand. While the new compact SUV will open new markets for us, we have achieved some efficiencies in the Kushaq and the Slavia, which has enabled us to enhance the value in our offerings and pass on the benefits to our customers and fans.”
India jostles with China for April ESPO crude from Russia, prices jump Private are jostling with independents in China for Russian loading in April, pushing prices higher after Moscow lowered exports of its flagship grade Urals, industry sources said. China, which is set to import record volumes of Russian crude in March, typically sweeps up all of the ESPO crude exported from the Pacific port of Kozmino due to close proximity while sanctions on have shrunk the pool of buyers. However, for April, Indian refiners Reliance Industries Ltd and have snapped up at least five of the about 33 ESPO crude cargoes due to low prices, four people familiar with the matter said. Reliance and Nayara did not immediately respond to requests for comment. That is up from one cargo for March delivery, its first since buying three for November 2022, shiptracking data compiled by Kpler and Refinitiv showed. One of the sources said prices for April-loading ESPO crude to India were about USD 5 a barrel below Dubai quotes on a delivered ex-ship (DES) basis. Indian refiners mostly buy Russian oil on a delivered basis, with the seller arranging for insurance, freight and ship. While most cargoes are below the price cap imposed by G7 countries and the European Union, prices of Russian low sulphur oil purchased by India have risen above the USD 60 a barrel cap due to rising demand. China has also been buying ESPO at above the price cap level, according to Reuters calculations. Indian companies are using non-dollar currencies to settle payment for certain niche Russian crudes and are avoiding use of Western services and banks to avoid sanctions. Competition from India has narrowed discounts for April-loading ESPO shipments to about USD 6.80 a barrel against June ICE Brent DES basis to northern China from USD 8.50 a barrel last month for March-loading oil, three trading sources said. Similar quality Murban crude from Abu Dhabi was traded at a premium of around USD 3.30 a barrel to Dubai quotes on a free-on-board basis. In comparison, April-loading Murban crude is about USD 9 a barrel more expensive than ESPO delivered to China and India, according to Reuters calculations. Seaborne ESPO crude exports averaged 800,000 barrels per day in 2022, Kpler's data showed, accounting for 17.3% of Russia's total seaborne exports. Exports of flagship Russian grade Urals averaged 1.74 million bpd, although Moscow has cut exports from its western ports by 10% in March from the previous month. Meanwhile, China's buying spree of ESPO continues as the country emerges from its zero-COVID regime, prompting a rebound in fuel demand from industry and the travel sector. China's seaborne imports of Russian oil are set to hit a record of nearly 43 million barrels this month, including at least 20 million barrels of ESPO. The solid demand drove the lumpsum freight rates for tankers carrying crude from Russia's Far East port Kozmino, a major ESPO export hub, to northern China to an all-time high of USD
barrels of ESPO. The solid demand drove the lumpsum freight rates for tankers carrying crude from Russia's Far East port Kozmino, a major ESPO export hub, to northern China to an all-time high of USD 2.4 million in February before easing to USD 2.3 million this month, Simpson Spence Young data on Refinitiv Eikon showed.
Elon Musk confirms India visit, says looking forward to meet PM Modi New Delhi: American electric car maker on Wednesday confirmed his visit to India and his planned meeting with Prime Minister . In a post on X, he wrote, "Looking forward to meeting with Prime Minister @NarendraModi in India." Earlier in the day, sources said Musk is expected in India the week of April 22. He is likely to announce the company's investment plans in the country during his visit, the sources said. In June last year, Musk had met Modi during the prime minister's US visit. The Tesla CEO had then said that he planned to visit India in 2024 while expressing confidence that the company would enter the Indian market soon. His planned visit comes weeks after the government announced a new electric vehicle policy under which import duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of USD 500 million, a move aimed at attracting major global players like US-based Tesla. According to the policy, the companies that would set up manufacturing facilities for EV passenger cars will be allowed to import a limited number of cars at lower customs/import duty of 15 per cent on vehicles costing USD 35,000 and above for a period of five years from the date of issuance of the approval letter by the government. At present, cars imported as completely built units (CBUs) attract customs duty ranging from 70 per cent to 100 per cent, depending on the engine size and cost, insurance and freight (CIF) value. CBUs whose CIF value is more than USD 40,000 attract a 100 per cent import duty (for petrol engine size more than 3000 cc and diesel engine of size more than 2500 cc). Whereas those with CIF value under USD 40,000 attract 70 per cent duty (for petrol engine size under 3000 cc and diesel engine size under 2500 cc). The policy seeks to promote India as a manufacturing destination for EVs and attract investment from reputed global manufacturers. Last year, Tesla had approached the Indian government seeking duty cuts to import its vehicles in India. Previously, Musk had said in 2022 that Tesla, which was earlier seeking reduction in import duties to sell its vehicles in India, would not manufacture its products unless it is allowed to first sell and service its cars in the country. In August 2021, Musk had said that Tesla may set up a manufacturing unit in India if it first succeeds 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!"
CFPB sues auto dealer for illegally locking cars, re-possessing vehicles The on Wednesday sued , the financial arm of a chain of auto dealerships found mostly in the South, alleging the company committed a laundry list of illegal practices, like disabling borrowers' cars, double-billing customers, and illegally repossessing cars. The bureau is seeking to get millions of dollars in refunds for thousands of USASF customers, as well as impose fines and penalties against the Georgia-based company. USASF is affiliated with U.S. Auto Sales, a dealership chain that sold used cars mostly to customers with low incomes or bad credit that operated a "buy here, pay here" business model at its 31 dealerships. U.S. Auto Sales mostly shut down its dealership operations in April, but USASF is still operating as the loan servicer for the company. The said that, since 2016, USASF illegally disabled borrowers' cars using what are known as "kill switches," which remotely disable a vehicle when a borrower does not keep up with payments. It's a common but controversial practice, as it cuts the financially struggling borrower off from likely their primary mode of transportation to work. roughly 7,500 times when a customer was not in default, and disabled at least another 1,500 vehicles when the company told the customer it would not do so. The company admitted to the bureau that it erroneously transmitted "warning tones" - audio signals sent to the vehicle warning their cars might be shut off - more than 71,000 times. These tones would often cause stress or anxiety to customers, making them call USASF, when they may not have been in default. The company also allegedly double charged roughly 34,000 customers for insurance, and misapplied loan payments toward insurance premiums and late fees instead of principal and interest against thousands of other customers. The bureau alleges customers paid more than USD 1 million in interest and fees if USASF had correctly serviced the loans. "Given the rising cost of cars during the pandemic and jump in auto loan debt across the country, the CFPB is working to root out illegal activity in this market," CFPB Director Rohit Chopra said in a statement. U.S. Auto Sales is owned by the Pennsylvania private equity firm . Three Milestone executives did not immediately respond to a request for comment on the bureau's lawsuit.
How Tesla's India entry will disrupt desi tardy electric car market After a long wait, finally it seems American electric vehicle (EV) maker will enter India next year. India's Prime Minister's Office has told relevant departments to fast-track Tesla's proposed investment in India by January 2024, ET has reported. Tesla's entry will put a stamp of maturity on India's car market, the third biggest in the world after China and the US. Outside the US, Tesla has plants in Germany and China. As the Western countries struggle with slowing economies impacting demand and Tesla faces strong local competition from EV makers in China. selling its electric cars in India is an attractive prospect for the American company. Initially, it will sell fully built-up cars imported into India. The talk of the government lowering India's steep import duties on cars for Tesla and others has created a flutter in the local car industry. Will lower import duties give Tesla an edge over Indian electric car makers which are still struggling to get on to the EV trend? Tesla CEO has been negotiating with the Indian government for long for lower import duties and the permission to sell fully built-up imported cars initially. Paving the way for Earlier in June this year, Musk said Tesla could soon be setting up a manufacturing base in India, after meeting Prime Minister in New York. Musk had said Tesla will be in India “as soon as humanly possible,” changing stance from about a year ago when the carmaker had said that the levies imposed by India on automobiles are the highest among large countries and that it can only consider setting up a factory locally if it succeeds with imported models. India's present customs duty regime does not differentiate between electric cars and those that run on hydrocarbons, and imposes high duties to encourage local manufacturing. Tesla first tried to enter India in 2021 by pushing officials to lower the 100% import tax for . Last year, the talks between Tesla and the Indian government collapsed when officials conveyed the company would have to first commit to local manufacturing. Indian officials weren’t keen on providing duty cuts to Tesla unless commitments were made towards local investment. The company had sought a 40% import duty on fully assembled electric cars against the current rate of 60% applicable on those priced below USD 40,000 and 100% on those retailed above that. An outright cut in import duties, the government has apprehended, will result in the import of electric cars instead of companies setting up manufacturing facilities in India. This, in turn, will have an adverse impact on the kind of investments that lead to employment generation in the country. India imposes 100% import duty on cars with cost, insurance, and freight value of more than USD 40,000, and 60% on cheaper vehicles. In 2021, Tesla had sought 40% import duty on fully assembled electric cars. Musk had argued that the duty structure for cars running on the
value of more than USD 40,000, and 60% on cheaper vehicles. In 2021, Tesla had sought 40% import duty on fully assembled electric cars. Musk had argued that the duty structure for cars running on the electric powertrain should not be out of kilter with India’s climate-change objectives. Reuters had reported in August that India was working on an EV policy that would cut import taxes for automakers that committed to some local manufacturing, citing sources with direct knowledge of the matter. "A new category may be introduced in the import policy to ensure that clean energy driven vehicles are taxed lower," an official has told ET, while insisting that this incentive will not be "just for Tesla but for anyone committing to set up electric vehicle manufacturing units". It is expected that in lieu of reduced import duty, Tesla will have to pledge to initiate local production, source components domestically, and provide bank guarantees to uphold its commitments. How Tesla will impact local car makers Tesla’s demand for import duty cuts on fully built electric vehicles had divided stakeholders in the local automotive industry. Indian firms such as Tata Motors, TVS Motor Company and Ola Electric had objected to a reduction, contending that this will hurt investments made to scale up localisation. However, foreign firms Hyundai Motor India, BMW India and Audi India had backed a reduction in duties saying it will help the industry generate demand and build volumes with imported electric vehicles before commencing production in the country on a mass scale. Tesla plans to produce a low-cost EV priced at USD 24,000 - about 25% cheaper than its existing entry-level model - for both the Indian market and export, Reuters has reported. Tesla's entry could pose challenges for mass-market car manufacturers in India. Several local companies have already made substantial investments in manufacturing electric vehicles and their components within the country. With the prospect of high-end EVs like Tesla's being available at a lower price due to reduced import taxes, local manufacturers might face increased competition. Tesla has hinted that its EV portfolio in India could start from Rs 20 lakh onwards, making it a compelling choice for consumers. But the government has said it would create a level playing field for electric car makers by offering incentives to local car makers. The government is drawing up a policy to incentivise local manufacturing of electric cars, ET has reported recently. The Department for Promotion of Industry and Internal Trade (DPIIT), which operates under the aegis of the Ministry of Commerce & Industry, has commenced discussions to put in place a scheme for subsidising electric four-wheeler makers linked to investments made by these companies for producing vehicles in the country, senior officials in the know told ET recently. Tesla's entry into India will surely spur local car makers to speed up their EV plans in order not to lose ground
for producing vehicles in the country, senior officials in the know told ET recently. Tesla's entry into India will surely spur local car makers to speed up their EV plans in order not to lose ground the Tesla which will promise the best product quality and cutting-edge technology too. The entry of other foreign electric car makers, especially Vinfast of Vietnam which is eyeing India, will help bring prices of electric cars lower and make the market more competitive. Tesla's entry with lower import duties could also lead to a substantial drop in the prices of fully-imported EVs. This reduction would not only benefit Tesla but also pave the way for other luxury car manufacturers to introduce their global EV models in India at a more affordable price point. The EV segment in India has seen a material upturn in prospects over the past two years. According to the VAHAN website, sales of electric four-wheelers in India have seen a big jump recently. From just 999 units in 2019-20, the number has reached nearly 45,000 till November in 2023-24. The number for 2023-24 might double from nearly 40,000 in 2022-23. The government has set a target of 30% EV contribution to sales across vehicle segments by 2030. A 'bridge' to cross? India's EV market is not just an internal combustion engine (ICE)-versus-electric game. Tesla will have a complex terrain to tread in india. Industry experts say the passenger vehicle market is clearly splitting into four sub-segments, with electric, strong hybrids and compressed natural gas (CNG) seeing the most growth, even as expansion in traditional fuel vehicles slows down. This fragmentation has led to different companies emerging as leaders in each segment. Tata Motors, followed by MG Motor, leads in EVs; Toyota Kirloskar and Maruti Suzuki performed best with strong hybrids; and Maruti Suzuki in CNG and ICE vehicles. EVs have been the stars of the automotive market of late, but they may soon face competition from the ‘strong hybrid’ segment, which is fast picking up pace. Strong hybrid vehicles have an electric motor as well as an ICE, which can work together as well as independent of each other. Maruti Suzuki senior executive director Shashank Srivastava expects 15% of the portfolio for the country's largest carmaker to be electric by 2030, with 25% strong hybrids and 60% a mix of petrol, CNG, biofuels and flexi-fuels. At the moment, CNG vehicles account for 26% of Maruti sales, with strong hybrids at 1%. The company doesn’t have any electric models as of now, so the balance comprises ICE models. Maruti Suzuki will launch its first EV next year-- the SUV eVX and plans to launch 6 EVs by 2030. Since the supply chain, battery costs and charging infrastructure have to significantly improve before fully-electric cars can take off, “strong hybrids are an excellent bridge to future and convenient choice with benefits,” Ravi Bhatia, president, Jato Dynamics, told ET recently. The likes of Toyota and Maruti Suzuki are pitching
“strong hybrids are an excellent bridge to future and convenient choice with benefits,” Ravi Bhatia, president, Jato Dynamics, told ET recently. The likes of Toyota and Maruti Suzuki are pitching strong hybrids to retail as well as fleet customers, who want more sustainable transportation options but may not be ready to make the shift to fully battery-powered vehicles, Bhatia added. Toyota leads in strong hybrid sales, with a quarter of its Hyryder and Innova Hycross sales being variants.
Long-term investors buy Blackstone's 20.5% Sona Comstar stake in bulk deal Gurugram: Funds affiliated with have sold their balance 20.5% stake in Sona BLW Precision Forgings Ltd. ( ), one of the leading global providers of automotive technology solutions. Before this transaction, Aureus Private Limited and Blackstone held 33.0% and 20.5% respectively in Sona Comstar as the auto technology company's co-promoters. This stake sale happened via bulk deals in the open market, which saw strong demand from Foreign Institutional Investors, Sovereign Wealth Funds, Domestic Mutual Funds, and Insurance companies. Marquee investors like the Government of Singapore, Fidelity, FMR, ICICI Prudential Life Insurance, and HDFC MF bought shares from Blackstone in the bulk deal. Sona Comstar offers its customers cutting-edge products that enable faster adoption of greener and safer mobility in India and globally. It is the leading global supplier of driveline solutions for Battery Electric Vehicles (BEV), Passenger Vehicles, Commercial Vehicles, and Off-highway Vehicles. Sona Comstar is India's leading traction motor and motor-controllers supplier to electric two-wheelers (e2Ws). Sona Comstar was formed by the merger of Sona BLW and Comstar Automotive in 2019. Since then, the company has invested significantly in technology, software, capex, and people, focused on the Electric Vehicle ( ) segment, completed technological partnerships and strategic acquisitions, and became India's largest EV component supplier. Amit Dixit, Head of Blackstone Private Equity in Asia, said, "Blackstone is blessed to have been part of the Sona Comstar journey for the past five years. Sunjay Kapur has been a terrific partner to us and minority shareholders. The management team led by Vivek Vikram Singh has done an outstanding job in building one of India's largest electric vehicle component suppliers. The company's strategy is well set with a strong order book and business development function, its focus on innovation and new technology, and building on its excellent engineering capabilities. It will continue to be a leader in its segment and is well-placed to play an important role in the global transition to greener and safer mobility. We will always be a supporter and seek to collaborate and partner with the company going forward as we continue to evaluate investments in the energy transition theme." Sunjay Kapur, Promoter and Non-Executive Chairman of Sona Comstar, said, "I am glad to have partnered with Blackstone and very happy that this has been a successful investment for them. They helped recruit global experts to the company’s board and enabled the company to go public last year with their capital markets expertise. Moving forward, our focus remains on providing innovative products and solutions to our customers and creating value for all our stakeholders. We are delighted to welcome new marquee investors who are aligned with our mission and in the prospect of long-term
and solutions to our customers and creating value for all our stakeholders. We are delighted to welcome new marquee investors who are aligned with our mission and in the prospect of long-term shareholder wealth creation. I have complete faith in our management team which is dedicated to driving our business forward. We thank Blackstone for their support in our journey so far and look forward to continuing to work with all our investors to achieve our goals." Vivek Vikram Singh, MD & Group CEO of Sona Comstar, said, "We thank Blackstone for their support and guidance over the last five years. As we move forward, we remain committed to our strategic priorities and are confident in our ability to continue delivering value for all our stakeholders. With twin megatrends of electrification and automation in the automotive industry, we are well-positioned to capture growth opportunities by remaining focused on our core values. We have a strong team in place, and we will continue to drive our business forward with the same dedication, focus, and energy that has characterized our journey so far." Ganesh Mani, Managing Director at Blackstone Private Equity, said, "We wish to thank the management team and Sunjay for the value creation and partnership. The company has strong financial metrics making it the only company in the Indian public large-and-mid-cap universe with 20%+ metrics across revenue growth, EBITDA margin, and RoE consistently in the last five years. We are confident that the company will continue to enjoy success and wish them the very best."
Western curbs on Russian oil products redraw global shipping map Global fuel suppliers are turning to longer and costlier routes that produce more carbon emissions to move their diesel and other products as Western restrictions on Russian cargoes have reshuffled global energy shipping patterns. As a result of the ban on Russian fuel that started on Feb. 5, tankers carrying clean oil products such as gasoline, diesel, jet fuel and naphtha are travelling between 16 and 18 days to bring Russian supplies to Brazil or U.S. cargoes to Europe, according to two shipping sources. That is up from the four to six days a ship used to travel from Russia to Europe, said the two sources, a broker at a major shipbroking firm and a charterer involved in the Russian trade of naphtha, which is used to make plastics and petrochemicals. The ban comes on top of a halt late last year on Russian crude sales into the bloc as well as Western price caps. Since the start of the ban, the Clean Tanker Index published by the Baltic Exchange, which measures average freight rates for shipping fuels like gasoline and diesel on some of the most common global routes, has more than doubled. The redrawing of the shipping map underscores the knock-on effects of Western efforts to punish Russia over its invasion of Ukraine last year, adding to fuel supply insecurity and pushing up prices even as policymakers worry about and the risk of a global economic downturn. "Not only are voyages much longer, but vessel behaviour has also changed, keeping vessels from operating in other CPP (clean petroleum product) markets," Dylan Simpson, freight analyst at oil analytics firm Vortexa, wrote in a March 31 note. Russian cargoes of fuel are heading to far-flung buyers in Brazil, Turkey, Nigeria, and Morocco as Moscow compensates for the lost European business, while Europe is importing more fuels such as diesel from Asia and the Middle East, according to shipping data from Refinitiv and Kpler. Asian cargoes, in turn, are being displaced by Russian fuels in Africa and the eastern Mediterranean, and redirected to the blending hub of Singapore for temporary storage, two northeast Asian refinery sources said. European importers whose naphtha cargoes travelled from Russian ports to Antwerp in four days before Russia's invasion of Ukraine now must wait 18 days for alternative supplies from the United States, the shipbroking source said. The U.S. is also emerging as a top supplier of heavy naphtha to Europe amid the EU ban, while the Group of Seven Nations, EU and Australia have capped Russian naphtha prices at USD 45 a barrel and diesel and gasoline at USD 100 a barrel for trades that use Western ships and insurance. Meanwhile, Brazil, traditionally a U.S. naphtha importer, is boosting purchases from Russia at more attractive prices. However, the journey from Russia to Brazil can take 18 days or longer and, at up to USD 7 million per voyage, the costs are nearly double that of a U.S. shipment, the ship
at more attractive prices. However, the journey from Russia to Brazil can take 18 days or longer and, at up to USD 7 million per voyage, the costs are nearly double that of a U.S. shipment, the ship charterer involved in the Russian market said. Brazil received around 240,000 tonnes of Russian diesel and gasoil in the first three weeks of March, accounting for a quarter of Brazilian imports, up from Russia's 12% share in February and less than 1% last year, said Benedict George, head of diesel pricing with energy and commodity data provider Argus. "Until February, Europe had remained Russia's primary market for refined product exports; however, in the space of a month, a major pivot has been observed," tanker broker E A Gibson said in a recent report. LONGER DISTANCES, MORE POLLUTION Measured in terms of cargo miles, which multiplies the cargo quantity in metric tonnes by the distance travelled in nautical miles, the amount of product shipments to Brazil in March rose to 3.07 billion metric tonne-nautical miles (MT-NM) from 941 million MT-NM in November, according to data from valuation company VesselsValue. Shipments from Russia to Nigeria rose to 1.88 billion MT-NM in March from zero in November, VesselsValue estimates showed. Clean product cargoes to Saudi Arabia in March jumped to 1.75 billion MT-NM from 31 million MT-NM in November, while shipments to the United Arab Emirates were 4.43 billion MT-NM in March, up from 2.85 billion MT-NM in November, the data showed. Also in March, Russian clean products shipped to Togo reached 973 million MT-NM, up from zero in November. In volume terms, Brazilian imports of oil products from Russia were about 284,000 metric tonnes in February, up from 73,300 tonnes in September, VesselsValue data showed. Conversely, Russian exports to the Netherlands dropped to 238,200 tonnes in February from 1.15 million tonnes in September. Those longer distances are being done at higher costs for Russian products than for typical shipments from Europe. According to market estimates, freight rates for the UK/European continent to West Africa are quoted at USD 55.77 per tonne for a product tanker with a standard 37,000-tonne load. This compares with an indicative rate of USD 174.24 per tonne for shipments from Russia's Baltic ports to Nigeria, USD 103.84 for Morocco and around USD 150 to Egypt. With ships travelling further, that is also likely translating into greater emissions from smokestacks. Based on pre-pandemic data, a 10% increase in mileage for all tankers travelling to and from the European economic area would increase their emissions by around 1.5 million tonnes of carbon dioxide, equal to the emissions of around 750,000 cars per year in Europe, said Valentin Simon, data analyst with the Transport & think tank in Brussels.
Musk ignores govt calls as India Tesla team moves to other markets New Delhi, While Union Ministers keep on making a beeline to Tesla CEO to come and manufacture electric cars in India, he is more interested in his $44 billion Twitter acquisition rather than paying attention to what the Indian government has been reiterating now for months. His utter disinterest in responding to several requests made by the Indian government, especially by Union Road Transport and Highways Minister , comes in the wake of reports that the team he hired in India last year has now been diverted to focus on the Middle-East and the larger Asia-Pacific markets. Nishant Prasad, in charge of establishing Tesla's supercharger network in India, has updated his LinkedIn profile to Charging Operations Lead-APAC. Manoj Khurana, who was Tesla India's first recruit, responsible for public policy and business development, relocated to California last month to take up a product role. The move by the Musk-led Tesla appears to be a retaliation as the Indian government has not accepted the demand by Musk to reduce import duties on Tesla vehicles. From Telangana Minister for Industries, KT Rama Rao, to Maharashtra Minister and state NCP President Jayant Patil, several Indian leaders have made repeated appeals to Musk to bring Tesla to India but to no avail. During the 'Raisina Dialogue 2022' last month, Gadkari said that if Musk wants to manufacture in China and sell Tesla cars here, "it cannot be a good proposition for India". "Our request to him is to come to India and manufacture here. We have no problems. The vendors are available, we offer all kinds of technology and because of that, Musk can reduce the cost. "India is a huge market and offers good export opportunities too. Musk can export Tesla cars from India," he told the audience. Reiterating his stand on Tesla manufacturing in India, the minister said earlier this month that if Musk comes to the country and makes Tesla cars here, that will also benefit the electric car-maker. Earlier in February, Gadkari had said that Musk has to manufacture in India first in order to roll out Tesla cars on the roads. Asked about Tesla's demand to cut customs duties on electric cars, Gadkari said that the country cannot appease one automobile company. Musk had tweeted that he faced challenges from the government for releasing its products in India. "Tesla isn't in India yet due to "Challenges with the government", he posted. Currently, India levies 100 per cent tax on the imported cars of price more than $40,000 (Rs 30 lakh), inclusive of insurance and shipping expenses, and cars less than $40,000 are subject to 60 per cent import tax. With a $40,000 (over Rs 30 lakh) price tag, Tesla Model 3 may remain as an affordable model in the US but with import duties, it would become unaffordable in the with an expected price tag of around Rs 60 lakh. Musk has said that he wants to launch cars in India but the country's import duties on EVs are
with import duties, it would become unaffordable in the with an expected price tag of around Rs 60 lakh. Musk has said that he wants to launch cars in India but the country's import duties on EVs are "highest in the world by far".
Hyundai Motor India appoints Amitabh Lal Das as new chief legal officer and business head ( ) has appointed as the new & Business Head, demonstrating the company's commitment to innovation, operational excellence, and continuous growth as it gears up for its next expansion phase. Unsoo Kim, Managing Director of HMIL, congratulated Amitabh Lal Das stating, "We are happy to welcome Mr. Amitabh Lal Das to our leadership team as the Chief Legal Officer & Business Head. His expertise, strategic acumen, and track record in navigating complex challenges will add immense value to HMIL. As we continue to grow and evolve, I am confident his contributions will go a long way in supporting our vision and upholding our values." Experience and educational background Amitabh Lal Das brings significant experience in legal and allied domains. He earned his bachelor’s degree in arts (honours) in 1990 and completed his bachelor’s degree in law from the University of Delhi in 1995. He also holds an international certificate in enterprise risk management from the IRM, UK. In his preceding roles, Amitabh Lal Das served as the senior legal director & general counsel at Yahoo India Private Limited. He was also associated with Max Life Insurance Company Limited. As the Chief Legal Officer & Business Head at HMIL, he will be responsible for overseeing legal, compliance, and secretarial functions. He will report directly to Unsoo Kim, Managing Director of HMIL.
Geopolitical conflict to keep oil prices up, CAD under stress: Govt to Parliament The government informed Parliament on Wednesday that as the geopolitical conflict persists keeping global commodity prices, including crude elevated, the ( ) of net commodity importers including India, continues to remain under stress. The current account in the Balance of Payments changed from a surplus of 0.9%of GDP in 2020-21 to a deficit of 1.2% in 2021- 22 on the back of rising economic activity in India as the nation completed its economic recovery from the pandemic induced contraction of GDP. The CAD was also a result of rising global commodity prices caused by disruption in supply chains the world over, initially triggered by lockdowns imposed to fight the pandemic and subsequently by the Russia-Ukraine conflict, the commerce and industry ministry said. Auto exit Minister of state for commerce and industry Som Parkash told Lok Sabha that Harley Davidson, Ford India, and General Motors (GM) have, during the past five years, ceased manufacturing of vehicles in India on account of restructuring of their business operations, business planning and decline in domestic sales. “Exit may be related to possible operational reasons and does not in any way reflect the story of the Indian automobile sector or business environment in India,” he said. During their operations in India, the cumulative investment made by these companies is Rs 31,060 crore. India’s automotive growth story is alive and growing both in domestic and export markets, Parkash said, adding that a churn in the market is a natural outcome of healthy competition and reflects relative competitiveness of companies as well as technological evolution to electric vehicles. Chinese product ban Commerce and industry minister Piyush Goyal told Parliament that India has not imposed any country-specific ban on imports. India and China, are both members of the WTO, and any trade restriction imposed must be WTO compliant,” he said in a written reply in the Lok Sabha, adding that India has not imposed any country specific ban on imports. However, as per the import policy of the government, all goods imported into India are subject to domestic laws, rules, orders, regulations, technical specifications, environment and safety norms that are notified from time to time and Government takes appropriate action including ban on goods if these are found to violate these regulations or have implications for national security. Currently, 61 Anti-dumping measures and 4 countervailing duty measures are in force on Chinese products, he said. Loan scheme The Niryat Rin Vikas Yojan (NIRVIK) is being re-examined in view of the changed market situation with the idea of coming up with an improved scheme to provide enhanced cover for small exporters within the existing Whole Turnover - Export Credit Insurance for Banks, Lok Sabha was told. Startups As on June 30, 2022, 14,311 startups have been on-boarded on the Government
for small exporters within the existing Whole Turnover - Export Credit Insurance for Banks, Lok Sabha was told. Startups As on June 30, 2022, 14,311 startups have been on-boarded on the Government eMarketplace (GeM) with 1,40,530 orders from public entities, totaling over Rs 8,040 crore. A total of 72,993 startups are recognized by DPIIT, of which 34,473 (48%) recognised startups belong to metropolitan cities of Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, Pune and Ahmedabad. More than 3,300 DPIIT recognised Startups are working in climate action sectors providing solutions through renewable energy and green technology.
CARS24 may enter the new car business as it looks to become profitable in 12-18 months New Delhi: One of the latest unicorns, , is now thinking of entering the new car business. CARS24 entered the used car market nine years back with the aim of organising the largely unorganised used car market and since then, it has expanded to become a financier for used cars by acquiring an NBFC licence besides also expanding its overall bouquet of services to include many aspects of used car purchase. Now, it is eyeing a foray into brand new cars. , Co-Founder, told ETAuto that a lot of CARS24 customers want to buy new cars and the company has begun some pilot studies before venturing into the new cars business. “That is an interesting question. A lot of customers who are selling cars to us are in need of buying new cars. It is in our interest to get into that business. We are doing some pilots over there….as and when it is ready to be launched we will speak about it…in the new car journey, what is the first thing that you do? You want to know what cars are getting launched, what is the price of the car, what are the reviews about that car…we are providing all this information to customers to select a car of their choice. Idea is that once you come to the CARS24 app, anything to do with the car you will find here.” We should enter the new car business in a few months, he said. The foray into new cars will require tie ups with OEMs but CARS24 is still evaluating whether it will become a dealer in new cars or an intermediary in the sale process of new cars. “We have a customer base, we know the car they are looking for. OEMs already have dealerships for selling cars. We could become a bridge between OEMs and dealers. OEMs have a sales target. Dealers want footfalls. We can tie up with OEMs to promote the car they are looking to sell and give the information to customers for cars they are looking to buy. We will be able to give information and insights…we have large traffic coming to us, we have customer engagement…OEMs do not have all these insights,” Jangid said. Organising the market: The market for used cars is worth about USD 25 billion and has been growing at a cumulative annual growth rate of 15-20%. Jangid said in the next decade, the market will grow four times to reach the USD 100 billion mark. CARS24 has just about 6% share of the market and may have another 10-12%, he said, leaving a large portion of the used car market in the unorganised sector. Reducing burn: Jangid says CARS24 should become profitable in the next 12-18 months and annual revenues are already topping a billion dollars. While the company did not share the financial details for 2023-24, revenue from operations grew by 8% year-on-year in FY23 at INR 5535 crore and EBIDTA margin improved to minus 6% from minus 19%. Profit Before Tax stood at minus INR 468 crore against minus 1093 crore in FY22. Gross margins were up by 11% last fiscal against a growth of 3% in FY22. Jangid said that the
minus 6% from minus 19%. Profit Before Tax stood at minus INR 468 crore against minus 1093 crore in FY22. Gross margins were up by 11% last fiscal against a growth of 3% in FY22. Jangid said that the company has been “reducing cash burn year on year” and profitability was a milestone. He said that after the last round of funding, in 2022, the company was valued at USD 3.3 billion and no fresh funding was being sought. “We have enough money for the next five years”. Superb app: CARS24 has launched a new application, which it says is designed to meet every car-related need of customers as well as of those visitors who merely want to use various services without actually buying a used car on the platform. Orbit, a car management feature within this app, provides real time car valuation, helps with payment of e-challans, hire a driver, track PUC (pollution control) status, insurance and servicing history etc. Already, CARS24 has an to finance the used car purchase on its platform and Jangid says 55-60% of the cars bought here are financed against just about 20% penetration of vehicle finance in the overall used car market.
Passenger vehicle sales may have hit new record in October Automakers are said to have clocked among their best-ever monthly retail sales in October, outpacing dispatches for the first time this year, as consumers drove home their dream vehicles amid festive fervor after muted celebrations in the past two years on account of the pandemic. Senior industry executives and dealers told ET as many as 375,000-385,000 cars, sedans and utility vehicles were sold to customers, which brought down inventory in the channel by 25% this month. Retail sales of passenger vehicles (PV) had peaked at 382,000 units in December 2018, compared with 370,416 and 370,300 units in October 2020 and December 2019, respectively. Automakers saw robust demand for new models, especially SUVs such as the Brezza and Grand , Hyundai Creta, Tata Punch, and Mahindra Scorpio. With the industry sitting on orders of 800,000-850,000 units, retail sales are expected to be robust in the remaining part of the year, with increased component supplies helping automakers to step up production. "This has been among the best-ever festive months for the industry," said Shashank Srivastava, senior executive director, marketing and sales, Maruti Suzuki, India's biggest carmaker. The company saw retail sales go up by 44% to 192,000 units in the 31-day period starting Navratri. Deliveries would have been higher if not for the shortage of semiconductors, which continues to have some impact on production. Maruti Suzuki has pending orders for 412,000 units at the end of September 2022, with nearly a third of these for SUVs Brezza and Grand Vitara. Kia Motor India, which saw a 45% increase in sales in the month, also has pending orders. The South Korean auto major delivered about 25,000 units this festive season, according to sources. Meanwhile, - which has been riding high on the success of SUVs Punch, Nexon and Harrier - registered retail growth of 43% in the festive period from last year. "We are delighted with the growth this festive season," said Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility. "Demand has been well supported this year with a significant ramp up in supply." Two-wheeler makers, too, saw improved sales across urban, semi-urban and rural markets, especially at the entry level where demand has been depressed for nearly three years due to a rise in acquisition, insurance, and running costs since the transition to BS-VI emission standards. The country's largest two-wheeler maker saw retail sales go up by 20% over the corresponding festive period of FY22, led by high demand across key states such as Maharashtra, Gujarat, Rajasthan, Uttar Pradesh, Bihar, Jharkhand and Karnataka. "A positive turnaround in customer sentiment in the just concluded 32-day festive period, starting from the first day of Navratras till the day after Bhai Duj, has also enabled the company to register a significant gain in its market share," the company
concluded 32-day festive period, starting from the first day of Navratras till the day after Bhai Duj, has also enabled the company to register a significant gain in its market share," the company said.
Used car startups seek new routes as revenue tanks New-age used-car platforms such as , , and Tech have increased efforts on generating revenue from ancillary sources such as auto financing, insurance and classifieds, after witnessing a palpable slowdown in growth last fiscal year. According to people tracking the sector, these firms faced the slowdown as the “growth-at-all-costs” push by venture-backed companies took a backseat and they started focusing on improving unit economics by controlling expenses. Tweaking of business models continued into the current fiscal 2024 as well. While SoftBank-backed Cars24 has decided to focus on its existing retail markets by slowing down on B2C expansion, it has increased the attention to value-added services like financing and insurance. The people said the company is also chalking up plans to introduce other services such as car servicing with an aim to build an ecosystem for owners and potential buyers of used vehicles. On Wednesday, the company announced its entry into car scrapping, which it launched initially in the National Capital Region and plans to expand to other cities. Tiger Global-financed Spinny shut down its standalone portals for premium car sales and budget vehicles, laying off around 300 people in the process. CarDekho also closed its retail used-car sales and customer-to-business (C2B) segments, and said it would put more focus on classifieds and insurance verticals. The company said it was able to record 46% growth in revenue during FY23 on the back of strong performance at its insurance unit, InsuranceDekho, and fintech platform for car financing, Rupyy. The company exited the C2B segment citing “inviable unit economics”. Listed used car sales platform CarTrade Tech — which acquired classifieds portal OLX from Prosus earlier this year — also shut down the C2B vertical of the firm, as it planned an increased push on the classifieds business. In the C2B business, a platform facilitates purchase of cars by used-car dealers from individuals selling, while in B2C, the company operates as a marketplace for purchase of cars by end consumers. A senior executive at a used-car sales company said the C2B part in used-car sales is heavily dependent on driving operational efficiencies. “C2B business is a very execution-intensive segment…the margins are very thin and if there are any leakages, it becomes unsustainable. If you’re selling 100 cars of which 80 are at a profit and 20 are at loss…that loss from 20 cars will eat away the margin from the 80 cars,” he said, explaining the rationale behind companies going slow on this segment. “It’s about how efficiently you’re able to run and that’s not something everyone has managed to do,” he said. Startups in slow lane Analysts said the slowdown for the new-age companies in the space was primarily caused by their pulling back on spending, and it happened even as the broader market for used cars continued to expand in India. According to industry sources,

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