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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, used-car sales rose 27% in FY23 to 5.45 million units. Sales of new cars also rose 27% last fiscal year, as per data released by the Society of Indian Automobile Manufacturers, but the volume was lower at 3.89 million units. “Following Covid-19, there was a pent-up demand emerging from people wanting to purchase personal vehicles,” said VG Ramakrishnan, managing partner and automotive lead at management consultancy firm Avanteum Advisors. With supply chain issues restricting new car dispatches, this demand was met by the used car market, he added. “The fact that new cars are being sold means that there will be a growing market for used cars going ahead,” he said. Meanwhile, following the cut in spending, the new-age platforms found it difficult to expand into new markets in the used-car sales segment, which is still largely unorganised, one of the people cited earlier said. “In 2020 and 2021, the growth was happening on the back of heavy spending into marketing, advertising as well as expansion into newer markets…and this was largely a function of easily available capital. That is not the case anymore,” another Delhi-based investor in mobility firms said. “But there’s still a large room to grow … that will happen over time as consumer behaviour changes,” this investor added. Priorities change Speaking to ET, the founder of a unicorn used-car startup said the overall market was buoyant but a change in the investment scenario for startups meant that priorities for them changed. “I would not say the market has shrunk…it has been doing decently well. But there was a sudden change for all of us in the business and how we approached things. Everybody had to take the tough call that there is a need to prioritise controlling costs in order to maximise the runway and delay a next round of funding. At least for the first six months of FY23 that was the case,” the founder said, asking not to be named. “It is difficult to fight that battle along with recording high growth levels. Sometimes you need to slow down a bit in order to grow faster later,” he added. During the year ended March 2023, Cars24 saw an on-year increase of 7.7% in its operating revenue to Rs 5,535 crore. In comparison, its FY22 revenue had grown 87%. However, the company’s loss reduced significantly. In FY23, Cars24’s loss came in at Rs 467.8 crore, compared with Rs 1,093.1 crore in FY22, excluding a one-time gain of Rs 850 crore recorded in FY22. At Gurgaon-based Spinny, which started calculating cash-and-carry sales in its revenue accounting instead of only commissions earned on sales through the marketplace, revenue increased to Rs 3,262 crore in FY23 from Rs 109 crore in FY22. CarDekho saw its revenue from operations expand to Rs 2,331 crore against Rs 1,600 crore in FY22. Its loss widened
marketplace, revenue increased to Rs 3,262 crore in FY23 from Rs 109 crore in FY22. CarDekho saw its revenue from operations expand to Rs 2,331 crore against Rs 1,600 crore in FY22. Its loss widened to Rs 562 crore from Rs 535 crore.
FADA joins with Frost & Sullivan for customer experience study, results in Sept 2024 The Federation of Automobile Dealers Associations ( ), the apex body championing the interests of India's Automobile Retail Sector, has teamed up with , a Growth Pipeline Company to spearhead an ambitious Customer Experience Index (CEI) Study. This project aims to analyse various aspects of the customer journey, encompassing sales, aftersales service and product quality across the passenger vehicle spectrum, the organisations said in a media release. In its maiden year, the comprehensive study will target Passenger Vehicle Category, including Hatchbacks, Sedans, SUVs/MPVs, EVs and Luxury vehicles, utilizing a detailed questionnaire to capture insights from 8,000 participants across 26 cities. This includes seven metropolitan areas, sixteen Tier-2 cities and three Tier-3 locations, ensuring a broad and inclusive data set that spans the diverse Indian landscape, the release added. Manish Raj Singhania, President of FADA, said, "Launching this study marks a significant milestone in our continuous effort to deeply understand and meet the evolving needs of automobile consumers. FADA remains dedicated to deploying its collective expertise for the betterment of the entire Automobile Industry. Over the past three years, we have conducted the Dealer Satisfaction Survey (DSS) and recently launched a specialized DSS focusing on Finance & Insurance." "Now, by incorporating this Customer Experience Index survey, we are broadening our analytical scope to encompass all facets of the Indian automobile ecosystem, thereby providing a comprehensive voice and strategic vision for all stakeholders. Partnering with Frost & Sullivan not only enhances this study’s credibility but also amplifies our commitment to advancing the Industry. The insights garnered from this expansive survey will directly inform and refine OEM strategies, facilitating tailored customer experiences that foster brand loyalty and satisfaction", Singhania added. Aroop Zutshi, Global Managing Partner & Executive Board Member at Frost & Sullivan, said, “Transformation is imminent. Every organization and every industry needs to be agile to adapt to evolving customer needs to survive. India is poised to witness exponential growth in the automotive industry driven by the rising middle-income and youth population, adoption of electric vehicles, increased investment in the Indian automotive industry and Government policy impetus. The Customer Experience Index by FADA in association with Frost & Sullivan will be a powerful tool for all OEMS and the Dealer fraternity to leverage.” The Customer Experience Index by FADA and Frost & Sullivan is set to redefine industry standards for customer satisfaction and service excellence. The results, which will provide invaluable insights for the entire automotive ecosystem, are eagerly awaited in September 2024.
ADAS for motorcycles: Spark Minda to launch rider assistance system by 2024 Corporation, the flagship company of Spark Minda, announced in April 2021 its partnership with Israel-based Ride Vision, a rider assistance systems solution company. Under this partnership, Minda would bring Ride Vision's AI-enabled Collision Avoidance Technology (CAT) to India. Now, the company has worked upon a version of the system that's been developed to be more suitable and more affordable for the Indian two-wheeler market. We got in conversation with Suresh D, Group CTO, Spark Minda to learn more about the company's Intelligent Rider Assistance System (iRAS) due to launch by 2024. Suresh D begins by explaining that the project finds its roots in the fact that (according to government data) 65 percent of accidents in India involve two-wheelers. The iRAS will be a pre-warning system for two-wheelers which is an industry-first in the country. However, he adds that the system is currently meant more for two-wheelers used for interstate or cross country travels (which would include premium bikes - 200cc and above). A more affordable version can be worked out with lesser features for smaller bikes. This will be the second phase of the tech's development. The system is being developed jointly with the core platform from Ride Vision and applications by Minda. The iRAS uses cameras on the front and rear, sensors on either side, a speed sensor, GPS antenna and an ECU. It can warn the rider with a forward collision alert, distance keeping alert, blind-spot alert, and dangerous overtake alert. Minda's ADAS for two-wheelers is currently under trials with three OEMS on motorcycles in the 300cc segment and above. Suresh D also tells us that installling the iRAS on a motorcycle would increase the vehicle cost by about 3-4 percent. Besides acting as a warning system to avoid accidents, Suresh D continues, Minda's rider assistance system can also be used for insurance premium calculations, thanks to the digital recording of the ride and incidents on the road. Also Read:
Manufacturing sector gets USD 21 billion FDI in FY22 The manufacturing sector attracted foreign direct investments worth USD 21.34 billion in 2021-22, an increase of 76 per cent year-on-year, the said on Thursday. It said the government has implemented several reforms under the policy regime across sectors such as insurance, defence, telecom, financial services, pharmaceuticals, retail trading, and e-commerce. Singapore (27.01 per cent) and the US (17.94 per cent) have emerged as the top two investors during 2021-22 in India. These were followed by (15.98 pet cent), the Netherlands (7.86 per cent) and Switzerland (7.31 per cent). "FDI equity inflows in the manufacturing sectors have increased by 76 per cent in FY 2021-22 (USD 21.34 billion) compared to previous FY 2020-21 (USD 12.09 billion)," it added. The ministry said that despite the ongoing pandemic and global developments, India received the "highest" annual FDI inflows of USD 84.83 billion in 2021-22. Top five sates receiving highest FDI in 2021-22 are Karnataka (37.55 per cent), (26.26 per cent ), Delhi (13.93 per cent ), (5.10 per cent ) and (4.76 per cent ).
Huge sanctions are looming for the fuel that powers the world An unprecedented chunk of the global market, the workhorse fuel of the , is just weeks away from being subject to aggressive sanctions. From February 5, the , the G-7 and its allies will attempt to impose a cap on the price of ’s fuel exports — the latest punishment for its invasion of . That will coincide with an EU prohibition on almost all imports of Russian oil products. Similar measures are already in place on the country’s crude shipments, but it is the cap and ban on refined fuels — and in particular diesel — that has some oil-market watchers concerned about the potential for price spikes. Prior to its invasion of Ukraine, Russia was Europe’s largest external supplier of the fuel and the continent has continued to buy in big volumes right up to the cutoff. As a result, the sanctions are likely to see a great rerouting of global diesel flows — aided by Russia’s new crude buyers sending fuel back to Europe. In the short-term, there’s a risk of higher prices. “The loss of Russian barrels is huge and replacing them will be a huge logistical challenge,” said Keshav Lohiya, founder of consultant Oilytics. “But the market is pricing in less panic as markets and trade flows have proven resilient. This will be a new rerouting of diesel.” The European Union will have to replace about 600,000 barrels a day of diesel imports, and Russia will need to find new buyers for those supplies, store the fuel on ships, or cut production at its refineries. Shipments into the EU from the and have already been on the rise as they produce more than they consume, allowing them to export their surfeit. China is also expected to send more of the fuel into its nearby markets, indirectly pushing cargoes from other suppliers toward Europe. “Product flows from net-long regions will intensify as the continent’s embargo on Russian products takes effect February 5th, which we see compounding a tight diesel situation,” Bernstein analysts including Oswald Clint wrote in a note to clients. India’s role in supplying Europe is notable because it has become one of the biggest buyers of discounted Russian crude since the war broke out. A big increase in Indian diesel flows would all-but guarantee that Russian crude was being purchased and refined into diesel in India before being sold back to Europe. Such a trade wouldn’t breach the EU’s rules, but it highlights the inefficiency inherent in the sanctions. Essentially, hydrocarbons will be transported thousands of miles further than would normally be the case — and then back again. There’s also the potential for murkier practices, such as redocumenting cargoes, or sending fuel to refined products storage hubs in other regions to for blending with non-Russian products. So far this winter, the worst predictions of oil scarcity have been averted. Diesel, which months ago was the epicenter of oil-market strength, has softened thanks to unseasonably warm weather and an influx
this winter, the worst predictions of oil scarcity have been averted. Diesel, which months ago was the epicenter of oil-market strength, has softened thanks to unseasonably warm weather and an influx into Europe. Crude prices slid after sanctions on Russia appeared to reroute exports, rather than cut them. Among Moscow’s new — or bigger — buyers will be traders in Africa, Latin America and possibly Asia. Europe meanwhile will likely turn to the Middle East, where giant new refineries are ramping up operations. Still, consultant Energy Aspects Ltd. said this week that Russia will only be able to find a home for about a third of its diesel exports and that the rest will have to be shut in. “The products embargo is the tricky one because Russia has really struggled to place its diesel anywhere else other than Europe,” Amrita Sen, the consultant’s chief oil analyst at the Global UAE Energy Forum organized online by Dubai-based Gulf Intelligence. Refining Troubles That’s in the context of a European refining industry that’s getting ready for a seasonal round of maintenance work, and also facing disruption. A threat of renewed strikes in France could shut down some of the nation’s fuelmakers a day after the sanctions on Russia come into effect. Two oil refineries in eastern — previously supplied with piped Russian crude — are having to make less fuel than they normally would because those flows have halted. And lying quietly behind all of that, is a host of logistical and technical issues that could flare up at any moment. Markets for war insurance for ships calling at Russia remain in crisis after key reinsurers withdrew some of their cover, while oil tanker costs have already spiked once in the run up to the implementation of crude sanctions. For now, there’s little immediate sign of panic in . The key question in the coming weeks is whether enough heavy lifting can be done to transform the world’s diesel flows. “The market will always solve it,” said Eugene Lindell head of refined products at consultant FGE. “It’s just how much pain is it going to incur?” Also Read:
Battle of Affordable Compact SUVs - Nexon’s Price Against Venue Costs The compact segment in India has seen tremendous growth in recent years. With improved infrastructure and gradual urbanisation, many first-time buyers opt for a practical compact SUV over traditional sedan or hatchback models. Within this competitive space, two proven names continuously battle it out for supremacy - the and . Both have carved a niche for themselves by offering compelling value propositions. But which one comes ahead when their attributes are evaluated side-by-side? Let's analyse their key strengths and weaknesses across various factors to find which brand provides better value for money. The competitors: Tata Nexon and Hyundai Venue The Tata Nexon was one of the earliest movers to establish the homegrown compact SUV segment in India. An appealing exterior design, a long list of features, and respectable driving dynamics helped reinvigorate Tata's brand image and performance in the passenger vehicle market. Hyundai entered the scene with Venue, bringing its proven global SUV development expertise. Though not the inventor of this niche, the Venue was targeted at customers valuing Hyundai's quality, refinement, and premium ownership experience. Nexon's Bold New Look vs. Venue's Sophistication Let's first analyse their exterior designs. The Nexon's latest update has injected a liberal dose of dynamism into its looks. Its matrix-style headlamps, L-shaped LED DRLs, and prominent wheel arches endow it with a great road presence. From any angle, there's no missing the heavily masculinised proportions aimed at enthusiasts. In comparison, the takes a subtler approach focussed more on premiumness than aggression. Its wider parametric grille flanked by arrowhead LEDs gives it a sophisticated mien. Sleek character lines along the profile highlight the attention to detail over brash statements. Subjectively, both succeed in their rights. Specifications Showdown Let's check out what's under the metal now. Engine specifications remain familiar - 1.2Ldiesel mills on both. While identical on paper, tune and chassis differences result in the Nexon feeling slightly more eager to rev. Ride quality proves outstanding from both manufacturers. Safety again goes in Tata's favour, with the lone 5-star G-NCAP rating achieved by Nexon early on. However, in-cabin tech sees Hyundai pulling ahead via features like air purifiers and over-the-air updates fitment even on lower Venue variants. Practicality metrics provide an even assessment, too. Boot capacity remains competitive, with occupants up front and rear finding leg, head and shoulder room sufficient. Ground clearance exceeds basic needs on cityrevs, thanks to a well-mannered AMT. Its 1.5L diesel also exhibits great push with linear power delivery up to the redline. On dynamics, the Nexon translates its meatier outputs to offer a greater handling feel via quick and linear direction changes. Body control also impresses. Ride quality
delivery up to the redline. On dynamics, the Nexon translates its meatier outputs to offer a greater handling feel via quick and linear direction changes. Body control also impresses. Ride quality remains plush on both. While neither is meant as a driver's toy, the Nexon edges ahead here. Fuel efficiency The mileage figures as per ARAI tests: ●Nexon Petrol AMT - 17.18kml ●Nexon Diesel MT - 22.40kml Real-world results may vary, but numbers put the Nexon diesel and Venue petrol on par. The Nexon's automated gearbox also squeezes out slightly better mileage. Overall, operating costs stay neck-to-neck despite engine differences. Space, Practicality, and Pricing Both the cars prioritise functionality for family use over outright spiritedness. In terms of cabin room, the Nexon's larger boot (382L vs 350L) makes it marginally more accommodative for long trips. However, it's in pricing where the truly flexes its bargaining power over the Venue. Its base petrol variant undercuts Hyundai's by INR 1 lakh, translating to potential long-term savings on maintenance and insurance costs proportionately. (Disclaimer - The above content is non-editorial. TIL hereby disclaims any and all warranties, expressed or implied, relating to it and does not guarantee, vouch for or necessarily endorse any of the content.)
How to reduce premiums during car insurance renewal Lowering your car insurance cost is crucial as it may save you a lot of money in the long run, while still giving you the coverage you need. With an increase in car ownership, the accident rate is also rising along, which is forcing insurance companies to increase . Hence, if you are planning to get a car or have a car already, getting an is mandatory. The insurance can be mandatory third-party insurance or comprehensive insurance coverage. Whatever the type may be, there are a few measures you can take to minimize your premiums. Tips for reducing premiums Here are a few of the simplest and most efficient methods for reducing your auto insurance renewal cost. According to the insurance provider, with each renewal, the insured declared value (IDV) of your car will continue to decline by 10%. In essence, the IDV is the amount your insurance will pay if your car is stolen or badly damaged. Most people would want a high IDV, which has an impact on the cost of the car insurance policy. Low IDV results in a smaller insurance payout at the time of claims and a cheaper premium. A higher IDV indicates a higher premium. You must thus exercise caution when choosing the value during renewal since the appropriate IDV for your vehicle can have an impact on the compensation you get in the case of theft or complete loss. No claim bonus (NCB) is a type of discount given on your car insurance premium for not making a single claim in the previous years. This is a kind of incentive for safe driving and not making insurance claims. One significant factor in lowering the total premium is the NCB. Being cautious while filing a claim is advised because a higher NCB will result in a reduced premium. The NCB varies from 20% to 50% for each consecutive year without a claim. Deductibles A deductible is the sum of money that the policyholder must pay when the claim is settled. There are two different kinds of deductions: Voluntary deductible and Compulsory deductible. The compulsory deductible that the insurer has determined is imposed on each claim. A voluntary deductible is the portion of the total claim amount, excluding the mandatory deductible, that the insured chooses to contribute at the time of claim settlement. By choosing a higher voluntary deductible, you can reduce the insurance company's claim liability. This way, the insurer offers a discount on your car insurance premium. Therefore, you can lower the cost of your renewal premium by opting for a higher voluntary deductible. However, this can result in a decrease in the amount receivable in the event of a claim. Compare and buy online To save on your premium, it's essential to compare various insurances online. You can use the auto insurance premium calculator online to get quotations for any vehicle insurance renewal. Online insurance lowers rates by offering a wide range of options. The progress of technology has made insurance easily accessible online these
to get quotations for any vehicle insurance renewal. Online insurance lowers rates by offering a wide range of options. The progress of technology has made insurance easily accessible online these days. When compared to traditional brokers, these online platforms provide customers with significant discounts. Therefore, when it comes to vehicle insurance, to reduce the cost of renewal, look for the most and affordable premiums. Make sure to renew your policy on time: Don't wait until the last minute to renew your . Always be aware of when your policy is set to expire. Some insurance providers offer a buffer period of a certain number of days after your expiration date has passed. But if you wait until after the policy has expired to apply to renew it, you may miss out on benefits like an NCB or other advantages that would have come with renewing earlier. This can impact your premium cost. Fitting an anti-theft device in your vehicle will help lower the likelihood that it will be stolen and make it easier to find it. Installing a government-approved anti-theft device, steering locks, and gear locks can lower insurance premium rates by around 4-6% while also protecting the car from theft or break-ins. Membership in the AAI membership entitles an individual to a premium reduction on insurance. To receive the additional discount and lower your total price, all you have to do is provide the insurance company with your AAI number. Benefits from your AAI membership include drivers on call, worldwide driving permits, and round-the-clock roadside support. The allows a 5% reduction on the own damage portion for a genuine and recognised membership with the Automobile Associations. The discount is available to members of automobile groups such as the Automobile Association of Eastern India and the Automobile Association of South India. Add-ons The add-ons or riders are the extra coverage at an additional premium offered to your insurance by the insurance company. These can comprise consumables covers, bumper-to-bumper covers, roadside assistance covers, key protection covers, etc. The premium for these add-ons is calculated as a percentage of the insured declared value. You can reduce your insurance premium by limiting the amount of add-on coverage and choosing only the coverage that you need. Now that you are aware of the different ways to reduce your car insurance premium, be mindful at the time of your insurance renewal. Make sure you are aware of your policy expiry date and do not forget to compare policies online. You can also opt for other ways in which you can reduce the vehicle insurance premium. (Disclaimer: The above information is for illustration only. For more details, please refer to the policy wordings and prospectus before concluding the sales.) (The above content is non-editorial, and ETAuto hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the
(The above content is non-editorial, and ETAuto hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content.)
South Korea to complete preparations for Level 4 autonomous car by 2024 will set up safety standards and an insurance system for the launch of Level 4 in the country by next year, the said on Sunday. Land, Infrastructure and Transport Minister Won Hee-ryong also said the government will "dramatically" ease regulations involving autonomous cars, at this year's 'CES 2023' in Las Vegas, reports Yonhap news agency. Motional is a 50-50 joint venture set up in 2020 between . and U.S. mobility startup to test fully autonomous vehicles for ride-hailing services. In October, Motional signed a 10-year deal to supply Hyundai's IONIQ 5-based autonomous vehicles to U.S. ride-hailing firm Technologies Inc. Under the deal, Motional began to supply the all-electric driverless robo taxis to Uber from late last year. The IONIQ 5-based robo taxis are currently available for the 15-minute drive between Luxor Hotel and Mandalay Bay Hotel in Las Vegas. Uber plans to operate the Level 4 IONIQ 5 robo taxis for car hailing and delivery services in the United States for the next 10 years and explore opportunities to advance to other markets with robo taxis. At Level 4, a vehicle can drive itself under limited conditions and will not operate if all required conditions are not satisfied. At Level 5, a vehicle's automated driving features can drive under any conditions. Also Read:
Pre-budget survey: Aspirations and disappointments of Indian middle class consumers In December last year, Finance minister made a statement that Modi govt's approach to reforms was "sensitive to the needs of the middle class". She made that statement with reference to the banking sector reforms, which she said were introduced after keeping the middle class in mind. Examples of this approach cited by the FM included the hike in the bank deposit insurance amount and the SWAMIH scheme. While there is no denying the importance of these schemes in making the middle class' lives incrementally better, the question that still remains is what this economy-wise key section of people really wants. A recent ET Online survey tried to find an answer to this question. The survey of around 2,000 people had two questions that concerned this consumer category. One was "What has disappointed the middle class the most?", and the other was "How can the govt help the middle class save more money?" Here is a look at what the survey found. As many as 33.6% of those polled think that the lack of jobs is the most disappointing aspect. 28.4% respondents are most disappointed with the poor state of public infrastructure in India. Delay in tax reform is the top deal-breaker for 28.2 per cent of participants. That India doesn't have adequate social safety nets finds takers among around 10 per cent of respondents. According to 38 per cent of respondents, a better social security system is the best way to help the middle class save more money. To over 30 per cent of them, allowing more deductions under Section 80(C) — a recurring hot topic in India during every tax filing season — would be the best course of action. 18.2 per cent participants back lower taxes on petrol & diesel, while 13.1 per cent want the government to raise interest rates for bank savings accounts and fixed deposits. Who in India is middle class? While the historical definition of a middle class person meant anyone who, socio-economically, is between the propertied class and the working class, economists now define middle class in terms of income and consumption indicators. Indicators like car ownership, income, access to social safety nets (job guarantee, pension or healthcare) broadly put this segment at 10 per cent of India's population. But their disproportionate spending power makes them a force to reckon with for the . The government, as per its official reckoning, counts around 30 crore people as middle class consumers. After the first two waves of the pandemic, however, economists estimate this number to have fallen by roughly a third. As a huge number among them were forced to fall back on their savings, many who had graduated to the middle class over time eventually fell out of that category. Why this section is crucial The upper segment of the Indian middle class accounts for the majority of demand — both urban and rural — in the country. In a country where consumption constitutes three-fifths of
section is crucial The upper segment of the Indian middle class accounts for the majority of demand — both urban and rural — in the country. In a country where consumption constitutes three-fifths of GDP, the economy has historically relied heavily on spending by middle class consumers. Various common estimates define the upper middle class as people living on $6-10 per person per day. Revival of near-term consumption demand in India will majorly depend on the top fifth of the middle class, according to an UBS Securities India report released towards the end of last year. Historically, the uppermost 20 per cent of this segment has been the prime mover behind as much as 59 per cent of the discretionary spending in rural India. In urban India this goes even higher — a whopping 66 per cent. More than half of this important consumer class largely saw income continuity all through the pandemic, data from various sources shows. According to economists, given the rising improvement in demand for vehicles, property, personal care and consumer durables, etc., these consumers are all set to become a critical driver of the economy in the near term. Also Read:
No problem in Tesla producing EVs in India but must not import vehicles from China: Gadkari New Delhi, Union minister on Tuesday said if the US-based Tesla is ready to manufacture its in India then there is 'no problem' but the company must not import cars from China. In an interactive session at the Raisina Dialogue, Gadkari further said India is a large market and there is a huge potential for all electric vehicles. "If (Tesla CEO) is ready to manufacture in India then there is no problem ... Come to India, start manufacturing, India is a large market they can export from India," he said. The road transport and highways minister said his request to Musk is to come and manufacture in India. "But if he wants to manufacture in China and sell in India, then it cannot be a good proposition for India," Gadkari said. Last year, the heavy industries ministry had also asked Tesla to first start manufacturing its iconic electric vehicles in India before any tax concessions can be considered. At present, cars imported as completely built units (CBUs) attract customs duty ranging from 60-100 per cent, depending on engine size and cost, insurance and freight (CIF) value less or above USD 40,000. Last year, in a letter to the road ministry, the US firm had stated that the effective import tariff of 110 per cent on vehicles with customs value above USD 40,000 is "prohibitive" to zero-emission vehicles. It had requested the government to standardize the tariff on electric cars to 40 per cent irrespective of the customs value, and withdraw the social welfare surcharge of 10 per cent on electric cars. It had stated that these changes would boost the development of the Indian EV ecosystem and the company will make significant direct in sales, service, and charging infrastructure; and significantly increase procurement from India for its global operations. The company had argued that these proposals would not have any negative impact on the Indian automotive market as no Indian OEM currently produces a car (EV or ICE) with ex-factory price above USD 40,000 (around Rs 30.6 lakh) and only 1-2 per cent of cars sold in India (EV or ICE) have ex-factory/customs value above USD 40,000.
Toyota rolls out first battery electric car in cautious debut as rivals go full-throttle rolls out its first mass-produced battery electric car in Japan on Thursday for lease only, a strategy the automaker says will help ease driver concerns about battery life and resale value but has raised analysts' eyebrows. Gasoline-electric hybrid models remain far more popular in 's home market than (EVs), which accounted for just 1% of the passenger cars sold in Japan last year, according to industry data. Still, the market is growing fast and foreign automakers including Tesla Inc are making visible inroads on the streets of cities such as Tokyo. Bundling insurance, repair costs and a battery warranty into the deal, Toyota will lease the bZ4X sport utility vehicles (SUV) at the equivalent of $39,000 for the first four years. Cancelling in the first 48 months will mean an additional fee. While EV acceptance has been slow in Japan, that will change, and Toyota could risk losing market share by focusing on a model of leasing rather than purchasing, said CLSA analyst Christopher Richter. "Anything you are doing that's making it harder to buy is maybe not a good thing," he said. "It's a strategy I am not that fond of. It does signal that Toyota is taking the home market a little bit for granted." Toyota said in December it would commit 8 trillion yen ($62 billion) to electrify its cars by 2030. Toyota aims to lease 5,000 of the SUVs in the current financial year - around the same amount of EVs that analysts estimate Tesla sold in Japan last year. The automaker plans to start selling the bZ4X in other markets later this year, and pre-orders have already started in some European countries. Toyota has not decided when it will start selling the cars in Japan, a spokesperson said. 'DISPEL ANXIETY' EVs became popular in Europe through lease programmes offered by employers and Toyota may be trying a similar tack to popularise electric cars, said Seiji Sugiura, a senior analyst at Tokai Tokyo Research Institute. First-time customers are concerned about battery life and the potential fall in the trade-in value over time, said Shinya Kotera, president of KINTO, the Toyota unit offering the leases. "It's our role to dispel anxiety" toward EVs, he said. Imports of battery EVs jumped almost three times to a record 8,610 vehicles in 2021, according to industry data. Analysts estimate roughly 60% of those were Teslas. Still, Japanese automakers remain cautious about switching into the all-electric lane. Toyota pioneered the hybrid more than two decades ago and retains big ambitions for both hybrids and hydrogen-powered vehicles, even as it is investing more to boost its battery EV line-up. Rival Nissan Motor Co pioneered mass-market EVs with the Leaf in 2010 but will launch only its second battery EV model, the Ariya SUV, also on Thursday. The Ariya will be sold for the equivalent of $41,500, not including a government subsidy. Honda Motor Co in April laid out a target to
its second battery EV model, the Ariya SUV, also on Thursday. The Ariya will be sold for the equivalent of $41,500, not including a government subsidy. Honda Motor Co in April laid out a target to roll out 30 electric vehicle models globally by 2030.
Maruti Suzuki Subscribe partners with Quiklyz by Mahindra Finance New Delhi: has partnered with by for its Subscribe programme and extended the programme to the Kolkata market. MSIL has three other partners for the programme: , , and . It also provides the customers with an added option of choosing either white or black registration plates, thus offering further flexibility to the car ownership experience, the company said in a media release on Thursday. Launched in July 2020, is a programme where a customer can own a car without buying it. The programme allows the customer to opt from a range of Maruti vehicles, with multiple tenure options, for an all-inclusive fixed monthly rental, the release said. This monthly rental includes the vehicle usage charges, registration charges, maintenance, insurance, and other common services related to vehicle usage. Once the tenure is over, the customer has an option to switch over to a new car or avail the option of purchasing the subscribed car. The service also offers the customers the option of foreclosing the subscription any time, the release added. Shashank Srivastava, senior executive director, marketing and sales, MSIL, said, “The car subscription is a relatively new concept for the customers in India. In less than two years of its launch, we have received a phenomenal customer response for Maruti Suzuki Subscribe with nearly 1,00,000 enquiries. The Subscription programme allows the customer to select from a bouquet of vehicle options, as per their requirements. We have been constantly upgrading our Subscribe programme services with the learnings and feedback from our customers. This has encouraged us to expand Maruti Suzuki Subscribe to new markets like Kolkata and partner with Quiklyz by Mahindra Finance. Through this new partnership and expansion, we look forward to serving our customers with more ease and convenience.`` Turra Mohammed, SVP and business head, Quiklyz, said, “Car subscription is gaining pace as customers’ ownership preference is changing across all segments, including individual, professional, SME and corporate. Subscription provides super convenience and unmatched flexibility, something that customers expect and want from their car ownership experience. Therefore, we are excited to partner with Maruti Suzuki to provide unmatched subscription service for the entire range of the Maruti Suzuki portfolio.” Also Read:
Automovill opens 10,000 sq ft workshop in Kolkata, plans 10 more across India New Delhi: , a Bengaluru-based full-stack mobility solution provider, opened its latest workshop in on Monday to provide an array of value-added services to the customers in the region. As the landscape of online players in the aftersales ecosystem evolves, Automovill recognizes the importance of establishing centralized hubs in every city. Spanning over 10,000 square feet with 8 bays and state-of-the-art equipment, the Kolkata workshop serves as a model for the company’s future expansion plans, with 10 more workshops planned across India. With a focus on electric vehicle ( ) fleet maintenance and insurance claim facilitation/renewal, the workshop offers charging infrastructure to ensure vehicles are charged while repairs are carried out or awaiting insurance approval. Additionally, it provides a centralized claim handling facility, meeting the demands of businesses in the city. The workshop’s launch aligns with Automovill’s goals of brand building, city-based profitability, attracting new business, and catering to the increasing demand for EV fleets. MriduMahendra Das, co-founder and CEO of Automovill, said, “We are elated to introduce our state-of-the-art workshop in Kolkata, a significant step towards strengthening our presence in the East. While we have established workshops before, this endeavour surpasses anything we’ve undertaken in terms of scale and magnitude. It promises not only increased profitability and additional revenue but also the reinforcement of valuable partnerships with B2B enterprises and insurance claim providers. We are confident that our workshop’s advanced infrastructure and skilled technicians will provide unmatched experiences to our valued customers in Kolkata” Automovill has set ambitious targets following the launch of the workshop. In the first month alone, the company aims to serve over 100 B2C retail customers, handle more than 150 commercial EVs, and provide services to 25 insurance vehicles. With a strong commitment to delivering a comprehensive and high-quality experience, Automovill made a significant investment of over 20 lakhs in establishing the workshop in Kolkata. This investment not only covers the workshop facility but also extends to the provision of washing and detailing services, further enhancing the overall customer experience.
Tough choices – Race to conquer an uncertain future in automotive industry By Volatility, uncertainty, complexity and ambiguity used to be characteristics that many Western managers associated solely with so-called emerging markets such as India. Dealing with such environments was thought to be fundamentally different from running the well-oiled machine of mature markets. Country managers were met with stunned disbelief when they reported local challenges back to remote headquarters. Today, the world has fundamentally and irrevocably changed. Basic assumptions about how we can do business locally and globally are voided as the global order evaporates in the face of protectionism, supply chain disruptions and wars. Rather than becoming a larger and larger playing field enabling peaceful co-operation and improved living conditions for many, the global fabric has started to rupture. Retrenchment in blocks will limit access to innovation and drive inflation even further. Yet, Covid, the war in the Ukraine and semiconductor shortages are not the only things that keep managers up at night. Take the industry as an example. The industry has seen solid growth over the last 20-plus years. Markets like the EU and North America have seen a CAGR of 3.8% during this time frame, emerging markets like India are even more dynamic with growth rates close to 10%. While a well-oiled logistics industry was taken for granted in the past, the COVID crisis and related supply chain constraints have reiterated to all just how important it is to be able to move goods and people from point A to point B. Considering positive fundamentals and a renewed appreciation, the industry should be feeling positive. Yet, a certain nervousness seems to be pervasive, a feeling of uncertainty that is not only driven by pandemic and geopolitical events, but by a fundamental transformation that is enabled and driven by technology. As can be seen in the figure below, the industry and related sectors face numerous challenges. Changing truck ecosystem On the trucking side, a continued push for sustainable freight transport drives large investments in electrified andday and a price of USD 180,000, it will change the composition of the market and further accelerate the speed of change and volatility of the industry. (Disclaimer: Dr Wilfried Aulbur is a Senior Partner at . Views are personal) Also Read:
Court orders EV manufacturer to pay INR 30k to customer over flawed e-bike records A ordered and Ola Experience Centre, Rajajinagar, to pay a Bengalurean a compensation of INR 20,000 for the deficient service it provided him when he purchased an Ola electric bike and pay another INR 10,000 as legal cost within 45 days. Lalit Kumar Tiwari, 31, had approached the 3rd Additional Bengaluru Urban District Consumer Disputes Redressal Commission after the Ola electric bike he was delivered bore a registration number that was different from what was earlier confirmed. The vehicle’s insurance policy and mobile application, due to the mismatch, became unusable as they were linked to the particulars of the earlier promised registration number. Tiwari had booked an Ola S1 Pro Midnight Blue Model and paid the entire purchase price of INR 1,54,000 on May 27, 2023. Almost two weeks later, on June 12, he was informed by the relationship manager at the Ola Experience Centre, Rajajinagar store that his booking had been cancelled in the system and he had to re-register his purchase. Tiwari renewed his booking and his e-bike’s registration number was KA 04 KN 5339. Finally, on July 1, a vehicle without a number plate and a registration number different from the one confirmed was delivered to him, causing him “continuous mental suffering and hardship”. The vehicle’s registration number was KA 04 KN 2970. The insurance policy, effective from June 12, had been issued for the earlier number and was thus void for the delivered e-bike. Since the records of the company showed the vehicle bearing registration number KA 04 KN 2970 was delivered to the complainant, he was not able to use the Ola Electric mobile application (that helps with remote locking and unlocking, trunk access, real-time charging updates, etc.) which was linked to the earlier number. He was also not able to get a plastic registration certificate card because of the number mismatch. Tiwari approached the consumer court with a complaint against Ola Electric Mobility Pvt Ltd, Ola Experience Centre and a relationship manager working at the store, seeking compensation of INR 2.5 lakh plus legal charges. Following the proceedings, the court found the relationship manager had failed to fulfil his promise to fix the number plate a week after the delivery. The court also found that the chassis number of the vehicle delivered, as shown in the records, was different from the number of the bike given to him, making it tough for the complainant to use the vehicle on the road. In its January 20 order, the court also directed Ola to affix the vehicle registration number plate, rectify defects in the records about the subject vehicle, delete the insurance policy in the name of the complainant in respect of vehicle registration number ending ‘5339’, delete complainant’s name in respect of the vehicle ‘5339’ in its records and make sure the Ola mobile app is usable by the complainant.
Vehicle with no FC and permit; insurer still has to pay compensation: Karnataka High Court The on Monday said that an insurer cannot escape the liability of paying compensation even when the fitness certificate (FC) and permit of a vehicle is not renewed but the insurance policy is in force, reported news agency PTI. The HC overruled the judgement of a lower court which had earlier ordered the owner of the school bus to pay compensation to the family of an accident victim because the school bus did not have fitness certificate and permit on the day of accident. The HC has directed the insurance company to indemnify the school bus owner by paying the entire compensation amount. "In this case though the insurance policy was in force on the date of accident, the permit and the validity of the fitness certificate had expired," the court noted, as per the PTI report. The fitness certificate was obtained after the accident. The HC said that the insurance company "would not have issued the policy unless fitness certificate was in force and it appears that the fitness certificate expired after the issuance of the policy." As for the permit, the court pointed out that when the permit is applied for after the existing one has expired, "temporary permit is issued for the interregnum period, and it has nothing to do with renewal." The HC said that "it should be deemed that on the day when the accident took place, the permit was in force," adding that the "insurance company cannot disown its responsibility to indemnify the liability of the appellant." Syed Wali was riding a motorcycle with another person Mohammed Shali on the pillion on September 28, 2015 when the two-wheeler was involved in the accident with the school bus. Wali died instantly. Wali's wife Banu Begum and children Malan Begum and Moula Husen filed claims for compensation. The insurance company, The , claimed that the school bus did not have (a) fitness certificate and its permit was not in force even though the insurance policy was in force. The II Additional District and Sessions Judge in 2015 accepted the contention of the insurance company. It awarded a compensation of Rs 6,18,000 to the family members of Wali and ordered the owner of the school bus, Dr. Narasimulu Nandini Memorial Education Trust, Raichur, to pay for it. The Trust approached the High Court with an appeal challenging it. The appeal filed in 2016 was disposed by the division bench of Justice Sreenivas Harish Kumar and Justice S Rachaiah recently. This amount is now to be indemnified by the insurance company to the Trust as per the HC order. (With inputs from PTI)
Indian refiners may buy Russian fuel, export own Some Indian refiners are planning to import n diesel and other refined products for domestic consumption so they can free up locally produced fuels for export to the West, which has nearly stopped taking refined products from Russia, according to people familiar with the matter. The has banned the import of refined petroleum products from Russia, including petrol, diesel and jet fuel, from February 5. The European Union, along with G-7 countries, has also placed price caps on Russian refined products. Russia has already become the top supplier of crude to , accounting for 28% of India's crude imports, up from less than 1% in 2021. India's imports of Russian refined products have also risen to record levels in recent months, though mostly limited to fuel oil. They may soon expand to petrol and diesel. "Our people are exploring if we can source cheaper products from Russia," said a top executive at an Indian refiner. "If India can import so much crude, it can, of course, import products as well. But imports of products must make commercial sense. We are in the business to make money." The executive added that the decision would be based on the discount, as well as the cost of insurance and freight. "Actual prices being quoted in the market are sometimes very different from the published information on prices and cracks. So, we will have to take a call based on what is being offered in the market," he said. India also taxes exports of diesel, petrol, and jet fuel but still leaves refiners with decent margins. Imports of Russian refined products could help meet rising domestic demand while allowing Indian refiners to export some of their own output, mainly to Europe, which has blocked imports from its biggest supplier, Russia. The Russian imports could also help build a domestic inventory of petrol and diesel, which could be drawn down during the planned maintenance shutdowns of domestic refineries later this year. "There is a possibility that India could look to import the discounted Russian diesel barrels. But Africa, the Middle East and to a certain extent South America, could also be potential markets vying for these discounted barrels as well," said Serena Huang, analyst at energy cargo tracker . India has been a net exporter of refined products for years and has shifted its exports away from Southeast Asia since the middle of last year towards the western markets, where realisations were better. Russian oil makes up nearly a quarter of crude processed in India now. This has triggered criticism in the western press that Indian refiners were defeating the purpose of sanctions by supplying products processed from Russian crude to the US and Europe. The criticism will likely get harsher if Indian refiners choose to bring Russian products for domestic consumption and increase the export of domestic output to the West. Also Read:
CarTrade Tech launches CarTrade Ventures for strategic acquisitions and investments Ltd., a leading , has launched CarTrade Ventures to invest up to INR 750 crore in 5 to 7 years to strategically acquire and invest in companies in the automotive space. The objective is to enter a new market or segment, or bring new products and technologies to the existing customers, the company said. The group is looking at innovative companies in the auto finance, leasing, insurance, servicing, car ownership, electric vehicles, , and new-age technologies such as augmented reality, artificial intelligence, and visualization to digitalize the auto buying journey. Besides capital, CarTrade Ventures will bring unique value to the companies through synergies with group companies and access to customers and technology and help them scale rapidly. Over the past few years, CarTrade Tech has acquired and integrated , a leader in the online new and used car space, Shriram Automall (SAMIL), a leader in the space, , a leader in the 2-wheeler online space; and Adroit Auto, a leader in auto inspections and valuations. Vinay Sanghi, founder and chairman, CarTrade Tech Group, said, “We have launched CarTrade Ventures to invest in new-age technologies and to digitalize the buying, selling, and ownership of vehicles, and to be a key enabler in the growth of the auto ecosystem. To facilitate this, we are looking to deploy up to INR 750 crores for acquiring and investing in companies that are driving innovation in the global auto ecosystem, so that we can offer the consumer a great online auto shopping and ownership experience. We have been very successful in growing our business organically and inorganically and are very excited about partnering with entrepreneurs who share the same vision and passion." Also Read:
EV broken? Finding a technician to fix it may take a while A global shortage of technicians and independent repair shops qualified to fix electric vehicles (EV) threatens to increase repair and warranty costs for drivers, potentially undermining upcoming deadlines to cut vehicle carbon emissions. From Milan to Melbourne to Malibu, technician training organizations, warranty providers and repairers say that independent repair shops will be vital for making EVs affordable because they are far cheaper than franchise dealers. Many garage owners balk at training and equipment costs for fixing high-voltage EVs - with 400- and 800-volt systems that could electrocute and kill unwary or untrained technicians in seconds - especially with relatively few EVs on the road. Along with electrocution risks, the risk of EV fires - which are notoriously hard to put out - also has to be taken seriously. Roberto , 60, who owns an independent repair shop in Milan, is reluctant to spend 30,000 euros (USD 32,600) on the needed equipment when EV sales in Italy are still low and the charging network is tiny. "I am seven years away from retirement and I think it is not worth it," said Petrilli. The auto repair industry has already been short of workers since the pandemic. The Institute of the Motor Industry ( ) based in Hertford, England, develops automotive training courses and is currently rolling out EV courses across China and aims to do so in India and across Europe. It forecasts that Britain, with a 2030 fossil-fuel car sale ban, could be short 25,000 EV technicians by 2032. In the United States, the world's No. 2 auto market after China, EV sales growth has trailed Europe's, but the Bureau of Labor Statistics predicts around 80,000 electrician jobs will be needed annually through 2031, which includes technicians to fix EVs or install EV chargers. And Australia could be 9,000 EV technicians short by 2030, the Victorian Automotive Chamber of Commerce predicts. Auto experts fear mechanics like Petrilli in Milan will simply avoid EVs - leaving consumers with higher bills and longer repair times. Data shared with Reuters by UK used car warranty provider Warrantywise shows costs are already rising - with a one-year warranty for a Model 3 costing more than triple the average for comparably-priced fossil-fuel models. CEO Lawrence Whittaker said Warrantywise must use expensive franchise dealers to fix EVs because they more often have qualified technicians than independent shops. Whittaker's concern is that higher insurance and warranty costs mean EVs will remain too expensive for many consumers. "How are people going to afford the higher repair costs?" he said. 'Fear of the unknown' Mark Darvill, managing director at Hillclimb Garage in High Wycombe, about 30 miles (48.3 km) northwest of London, has embraced EVs and hybrids, which he says make up around 15% of repairs. Darvill says Hillclimb's planned investment of 25,000 pounds (USD 31,400) in training and equipment will
of London, has embraced EVs and hybrids, which he says make up around 15% of repairs. Darvill says Hillclimb's planned investment of 25,000 pounds (USD 31,400) in training and equipment will pay for itself in late 2024 when EVs and hybrids should make up 35% of repairs. Customers lacking EV repair options already come from far afield. "What's holding a lot of independents back is fear of the unknown," Darvill said. The IMI estimates 20% of UK automotive technicians have received some EV training, but only 1% are qualified to do more than routine maintenance. EV sales jumped 33% in Britain in the first half of 2023, but the IMI said take-up of EV qualifications fell 10% in the first quarter and an estimated 31% in the second quarter compared to the number of people taking those courses in the same period in 2022. London-based premium car service company Addison Lee operates hundreds of EVs and sustainability director Andrew Wescott said "it already takes a lot longer" to repair them than its diesel vehicles. Carmakers are scrambling to train technicians. Market leader Tesla has launched courses at U.S. community colleges to train prospective technicians. Tesla also provides EV training for independent U.S. repair shops. Daniel Brown, head of automotive product development at Germany's Lucas-Nuelle, which produces EV training course equipment, worries unqualified technicians could be pressured to fix high-voltage EVs, adding "it's just a matter of time until someone gets hurt." Some groups are trying to fix the shortage. The Siemens Foundation has unveiled a USD 30 million program to train U.S. technicians to install and maintain EV chargers. A lack of trained workers will "slow the progression" of shifting to electric, foundation CEO David Etzwiler said. The foundation, which focuses on workforce training and education, has announced the funding to address the "tremendous and immediate" need to train technicians, Etzwiler said. The Motor Traders' Association of New South Wales (MTA NSW) - where EVs should make up 50% of new car sales by 2030 - estimates basic EV training will cost 100 million Australian dollars (USD 64.7 million) for the state's nearly 50,000 licensed automotive technicians. MTA NSW head of government affairs Collin Jennings said small repair shops will need subsidized EV training or many will likely stick to fossil-fuel models. The distances between many smaller Australian towns makes that a problem in the making. "Who's going to fix your Tesla if it breaks down there?" Jennings said. The IMI is seeking 15 million pounds from the UK government to help independent repairers afford training, said CEO Steve Nash. But Nicholas Wyman, executive director of the U.S. Institute For Workplace Skills and Innovation, said most repairers are on their own. "If you're waiting for the (U.S.) government to take action, you'll be waiting a freaking long time," he said.
Union govt not looking at any tailored incentives as of now for Tesla; states can offer: Sources The union government is not looking at extending any tailor-made incentives to US-based electric car maker as of now, though states are free to offer concessions to the company, sources said. They also said that the company is talking about building a complete supply chain in the long run as they are showing keen interest in . The representatives of the firms visited the country last month and held meeting with various parts of the government, including the . "We have made it very clear that imports are not the preferred thing from our side...The company is talking big in terms of complete ," one of the official sources said. When asked about extending incentives to the firms, they added that "the government is not looking at any tailored incentives as of now. States are a different matter. States might compete with each other and someone might give them (concessions)". In 2021, the US-based electric car maker demanded a reduction in import duties on (EVs) in India. At present, cars imported as (CBUs) attract customs duty ranging from 60 per cent to 100 per cent, depending on engine size and cost, insurance and freight (CIF) value less or above USD 40,000.
More than 50% vehicles not insured: Govt Mumbai: More than 50% of vehicles on Indian roads are operating without the mandatory third-party . This was disclosed by the government in response to a Parliament query. Minister of state for finance Bhagwat Karad, replying to a query from Lavu Sri Krishna Devarayalu, said that there are 30.5 crore vehicles on Indian roads. This is, according to data from the road transport and highways ministry and does not include MP, AP and Lakshadeep. Of these vehicles, 16.5 crore are uninsured. The minister also said there is no proposal to provide on-the-spot third-party insurance cover for motor vehicles, and there is no deadline for covering . Third-party insurance is designed to provide compensation for victims of road accidents. There are many uninsured vehicles as there is no mechanism to ensure compliance. “Third-party is mandatory in India. However, many vehicles remain uninsured. Often accident victims are unable to get adequate compensation because of the , and each year this pushes thousands of families below the poverty line,” said Tapan Singhel, MD & CEO of and chairman of the . The insurance regulator has been discussing several measures to insure vehicles operating without cover. Sector regulator had suggested that insurance companies could engage with state governments and compare data from the regional transport offices with insured vehicle data to ensure complete coverage.
InsuranceDekho bags USD 60 mn, value pegged at USD 700-750 mn marketplace has raised USD 60 mn in its ongoing Series B funding round from Japanese financial services major Mitsubishi UFJ Financial Group, BNP Paribas Cardif, which put money through its insurtech fund, and Beams Fintech. The family office of Yogesh Mahansaria, managing director of , a major , also participated in the round. Along with the new investors, funds also came from existing investors TVS Capital, Goldman Sachs Asset Management and Avataar Ventures. Overall, the company saw a 50% jump in valuation, post the round. While InsuranceDekho did not comment on the exact valuation, sources said the round valued the company at around USD 700 mn to USD 750 mn. The company claims to be profitable in its core distribution business, but given its ongoing investments in new business lines, overall it is still in losses. In FY22, the last reported financials, InsuranceDekho recorded a net loss of INR 234 crore on a revenue of INR 1,650 crore. Interestingly, at a time when venture money has been hard to come by, especially in growth rounds, InsuranceDekho has managed to raise two back-to-back funding rounds this year. In January, it had closed USD 150 mn in funding, taking its overall raise to more than USD 200 mn. “We will use the fresh funds for some inorganic growth opportunities. We are scouting some acquisition targets which we hope to close soon,” said Ankit Agrawal, chief executive officer, InsuranceDekho. “There are conversations happening around enhancing our technology and distribution capabilities but those conversations are private as of now,” he added. Agrawal also wants to strengthen the company’s tech capabilities and invest in marketing and brand-building with the new round. “We are also looking to enter into reinsurance. We are in the process of applying for a composite brokerage licence from the IRDAI, which will allow us to become a broker for reinsurance policies too,” he said. InsuranceDekho is an online marketplace of insurance products but has a strong physical presence as well. In industrial parlance, it is called POSP (point-of-sales person) business. Currently, the company has around 1.1 lakh agents in the field, and the aim is to increase it to 2 lakh by the financial year-end. It is already processing an annual premium run rate of Rs 3,000 crore and aims to double it by the end of the current fiscal. The Gurugram-headquartered firm has designed its business in a way that enables its agents to sell insurance products in the country’s tier 2 and tier 3 cities. Almost like the ( ), which built its distribution through part-time agent networks, InsuranceDekho is building its own network to physically distribute insurance products. It sells vehicle insurance, term insurance, life insurance and some other general insurance products. It currently has around 1,900 employees. It competes with the likes of listed company and venture-funded . Currently, Policybazaar is
life insurance and some other general insurance products. It currently has around 1,900 employees. It competes with the likes of listed company and venture-funded . Currently, Policybazaar is focused on expanding its own POSP business too. ET wrote on June 12 that Policybazaar currently gets 42% of its overall revenue from its new business lines which includes the physical agent business. Agrawal said he intends to take the company public by 2026-27. InsuranceDekho was launched by online aggregator of used and new four-wheelers CarDekho in 2017. The company, however, came out of its incubator and now operates independently.
Over 10 lakh motor accident claims pending in India, worth INR 80,000 crore: RTI data There are a total of 10,46,163 in the country, amounting to INR 80,455 crore. The number of these claims has been consistently increasing from 2018-19 to 2022-23, as revealed through information obtained via the Act. These details were shared by the ( ) in response to a query submitted by advocate in April. Jain submitted a query to the (MoRTH) to inquire about the total number of pending motor accident claims in the country, including state- and district-wise details. He also wanted to understand the yearly distribution of claims filed, resolved, and pending over the past five years. Additionally, he inquired about any steps taken by the Centre to expedite the resolution of motor accident claims. According to the information provided by IRDAI, the number of pending motor accident claims at the end of the financial years 2018-19, 2019-20, 2020-21, 2021-22, and 2022-23 were 9,09,166, 9,39,160, 10,08,332, 10,39,323, and 10,46,163, respectively. The corresponding claim amounts were INR 52,713 crore, INR 61,051 crore, INR 70,722 crore, INR 74,718 crore, and INR 80,455 crore. On regional-level breakup of information, the IRDAI stated, "District-wise and state-wise details of motor third party claims are not available with IRDAI, as IRDAI does not collect or maintain such granular information." The Agra-based lawyer cited the data and mentioned that the number of pending claims has been increasing every year. Additionally, there is a delay in processing claims for the dependents of deceased and injured individuals in . The road safety activist also raised concerns over the "snail pace' of claim settlements, estimating that it takes an average four years for a victim to get financial relief. "If we look at the pace of claim settlements, the number of pending cases at the beginning of the financial year 2022-23 was 10,39,323, and the number of new claims received this year was 4,54,944. Consequently, the overall count of pending claims reached 14,94,267, with only 4,48,104 cases being resolved, accounting for just 29% of the total cases. Therefore, on average, it is estimated that it takes four years to decide a claim," he said." Jain has filed an interlocutory application in the Supreme Court under a civil writ petition due to the excessive delays in resolving motor accident claims. He is demanding the formulation of an interim payment scheme by the central government under Section 164A of the Motor Vehicles Act to provide relief to victims of road accidents. "It is suggested that this amount be at least INR 5,00,000 for fatal cases and INR 2,50,000 for injury cases, as per the no-fault liability under Section 164 of the MV Act," he added. (Source- PTI)
Stellantis considering India manufacturing of affordable EVs New Delhi: ’s electric vehicle was something that was negotiated by but it “certainly helps”, said Carlos , the chief executive of the world’s third largest carmaker, . The group, which owns several brands including Chrysler, , and , is considering locally affordable from its Chinese joint venture partner at its facility in , Tamil Nadu. “This (the EV policy) is an opportunity that we did not study yet, but I understand the intention and I understand why you can be able to win (investments) for the country and from the carmaker that will come with ,” Tavares told ET on a video call. India announced a new policy on March 15 to encourage investment in of high-end electric cars. The government said it will allow the import of completely built-up electric cars that have a minimum cost, insurance and freight value of USD 35,000 (INR 29.2 lakh) at 15% import duty for a period of five years if companies make a minimum investment of USD 500 million to start local manufacturing. Leapmotor for now is looking at selling affordable electric cars in India, which will mostly be priced under the cap specified in the policy. Tavares said Stellantis is already manufacturing EVs in Thiruvallur under the Citroën badge and has sold fleets of the eC3 car to several companies in India. “So far it's moving quite well, and I know that the local team is quite happy with those B2B sales,” he said. Tavares said Leapmotor vehicles will make their way to India in the second wave of global expansion of the newly formed JV, Leapmotor International, in the last quarter of 2024. “Any manufacturing facility that we have around the world can be used to support the profitable growth of Leapmotor overseas. We have a (production) capacity of 90,000 units at Thiruvallur, and so far it’s not saturated,” he said. “While it is too soon to say, but as we both know the tariffs to import CBUs in India are very high. Most probably, if we are to bring Leapmotor to India, it would have to be through local manufacturing as it is for all the other brands we have.” He did not specify details of additional investments required to commence local manufacturing of EVs from Leapmotor in India. The company is looking at introducing a small A-segment car, T03, and a D-segment vehicle, C10, to begin with. Stellantis currently sells vehicles from Jeep and Citroën brands in the country. Citroën-badged vehicles are made in Thiruvallur. In addition to local sales, Tavares said Stellantis is looking at leveraging India as an export hub to ship out more vehicles, particularly to markets in Southeast Asia. In response to a question on whether Stellantis is looking at exporting electric vehicles under the Leapmotor badge from India, he said: “We are already exporting vehicles – C3 and eC3 - out of India to Southeast Asia. So that's something that we are eager to do. We will try to continue to expand the exports out of India to Southeast Asia at this
exporting vehicles – C3 and eC3 - out of India to Southeast Asia. So that's something that we are eager to do. We will try to continue to expand the exports out of India to Southeast Asia at this stage.” Citroën, a relatively new entrant in the country, exported 3,278 vehicles last fiscal year compared with 204 units in FY23. Citroën recently announced fresh investments of INR 2,000 crore in India for various initiatives including introducing new vehicles with petrol as well as electric powertrains. Amsterdam-based Stellantis Tuesday signed a binding agreement with China’s Leapmotor to form Leapmotor International, after they received regulatory approvals for the joint-venture deal. Stellantis controls a majority stake of 51% in the JV. Stellantis had acquired an about 21% stake in Leapmotor for 1.5 billion euros in October 2023, paving the way for the formation of the JV company. The JV has exclusive rights to manufacture, sell and export Leapmotor vehicles outside of China. “We are now in the planning phase to go to the markets and start exporting vehicles out of China to the rest of the world,” Tavares said. Leapmotor will enter nine European countries in the first phase starting September: Belgium, France, Italy, Germany, Greece, the Netherlands, Romania, Spain and Portugal. The brand will be sold across 200 dealerships in the region. In the second phase, Leapmotor International will enter South America, the Middle East, Africa, India and the Asia Pacific regions. The JV plans to bring in a portfolio of six models to international markets by 2027. Affordability is right now the number one problem with EV expansion worldwide. “With Leapmotor, we are going to be able to bring faster to our markets affordable EVs that will not only contribute to the profitable growth of Stellantis, but of course, they will also contribute faster and in a more efficient way to fixing the global warming issue that we have to fix as humanity,” said Tavares.
Delhi LG seeks to link vehicle's insurance premium to traffic violations, writes to FM Sitharaman New Delhi: has written to Union Finance Minister , proposing a stringent plan that seeks higher insurance premiums for vehicles with a history of . Saxena said that a vehicle, which has been frequently challaned for traffic offences such as over-speeding, red light jumping and dangerous driving should be obligated to pay higher insurance premium. In his letter last week, the lieutenant governor said this financial deterrent would encourage a better driving behaviour as there is an obvious co-relation between repeat traffic offences and the risk of accidents. "I would, therefore, suggest that a layered insurance premium system based on the frequency and severity of traffic violations as recorded in 's VAHAN database may be introduced," reads the letter. Insurance premium should be index-linked with the number of traffic violations recorded against a vehicle, which would have a salutary impact on road safety and traffic discipline, he said. Citing a 2023 report of the Delhi Traffic Police, Saxena said that 60% of fatal road accidents involved vehicles that had previously been fined for traffic violations, primarily over-speeding and red-light jumping. The vehicles with more than three traffic challans in a given year were found to have a disproportionately high involvement in severe accidents, he said. Saxena also said that according to the Ministry of Road Transport and Highways (MoRTH), India recorded over 4.37 lakh road accidents in 2022, resulting in approximately 1.55 lakh fatalities. Notably, over-speeding accounted for nearly 70% of these accidents, while violations such as red-light jumping contributed significantly to fatal accidents. Analysis of accident data by the World Bank indicates that vehicles with multiple traffic violations have a 40% higher risk of being involved in fatal crashes compared to those with a clean driving record, he said. Saxena has also urged the Union finance minister to engage the Insurance Regulatory and Development Authority of India (IRDAI) to take immediate action to establish a framework for index-linked insurance premiums. The lieutenant governor has underlined in his letter that implementing such a system would not only align insurance costs with the actual risk posed by individual drivers but will also reduce the financial burden on insurers resulting from frequent claims. This financial deterrent driven approach which is practised in the US and European countries would promote responsible driving behaviour, leading to a reduction in accidents, saving lives and ensuring more efficient management of insurance claims, he said. "Such measures have been successfully implemented in other countries such as the United States, where insurance premiums increase significantly based on traffic violation and speeding tickets leading to an average premium increase of 20 to 30%. This also followed in several European
States, where insurance premiums increase significantly based on traffic violation and speeding tickets leading to an average premium increase of 20 to 30%. This also followed in several European Nations," reads the letter. By implementing this policy, India can take a significant step towards creating safer roads, saving lives and ensuring a more sustainable transportation system for generations to come, the letter mentioned. Meanwhile, an umbrella body of the RWAs said that the government should first focus on improving roads' condition before introducing such system. "Before implementing a new system, the government should fix our roads and clear encroachments narrowing lanes. This will make our area more navigable, making future initiatives more successful," said Rajiv Kakria, the convener of Save Our City (SOC) south Delhi.
Tesla's quarterly deliveries set to rise as China incentives lure wary EV buyers is expected to report an 8% jump in third-quarter deliveries of its on Wednesday, Wall Street estimates show, driven by extended incentives and lucrative financing plans in the world's largest auto market, China. Responding to sluggish Chinese spending amid flagging economic growth and rising competition from domestic Chinese players such as , Tesla introduced a range of offers this spring, including insurance deals, discounts on certain paint choices and a zero-interest loan of up to five years. That helped the U.S. automaker boost sales in July and August, according to data from the China Passenger Car Association (CPCA), after two straight quarters of declining deliveries. Analysts said the trend continued through the quarter and 12 of them, polled by LSEG, expect the Elon Musk-led company to deliver 469,828 vehicles, which would be its best third quarter, up from about 435,000 vehicles a year earlier. "China, which accounts for one-third of Tesla's sales, is a major growth driver," said Scott Acheychek, chief operating officer of REX Financial, which offers exchange-traded funds that track Tesla's stock performance. Deutsche Bank analysts estimated Tesla to deliver about 139,000 Model 3 sedans, 296,400 Model Y SUVs, a combined 13,350 of its larger Model S sedans and Model X SUVs and about 13,500 pickups in the third quarter. Sales in China were also boosted by increased government subsidies meant to encourage consumers to swap their gas-guzzling vehicles with battery-powered ones. Tesla cars also became eligible for government purchases in the country, with its best-selling included in a list of vehicles government entities can purchase as a service car. Ken Mahoney, CEO of Tesla investor Mahoney Asset Management, said the boost from China, along with benefits of a recent by the U.S. Federal Reserve, could help Tesla match the record 1.8 million vehicles delivered in 2023. Musk earlier this year said Tesla was on track for higher deliveries in 2024. Tesla started deliveries of the Cybertruck late last year, and the EV maker expects to ramp up production to 250,000 units next year. It is yet to release official production or delivery numbers for the model. With slowing demand for EVs in the U.S. and a lack of subsidies in Europe, Tesla delivered about 831,000 vehicles in the first half of this year. To prevent a drop in 2024 deliveries, it needs to hit about 979,000 vehicles in the second half. That will be crucial to allay investor concerns around future even as they focus on Tesla's unveiling of a robotaxi product on Oct. 10 - a sharp shift in the automaker's strategy since ditching its affordable car project and one that some see unlocking trillions of dollars in value for Tesla.
Changes likely in India's new EV policy, may benefit legacy car companies New Delhi: India is likely to make changes to its new electric vehicle ( ) policy to incentivise automakers that have already made investments in the country, people in the know told ET. This comes as US electric carmaker Inc is still to make any firm commitment on building a factory in India. The policy, which aims to accelerate the local manufacturing of high-end electric cars, currently supports only fresh investments. Consultations are also on with stakeholders on another key issue troubling carmakers. Govt Preparing SOPs The government may potentially consider investments in plants producing both internal combustion engine and electric vehicles as eligible for incentives to add scale and make large investments viable for automakers, the people said. About half a dozen carmakers such as Volkswagen-Skoda, Hyundai-Kia and VinFast have expressed interest in the new policy, the (SMEC), the people said. Automakers have flagged two major concerns -- that the scheme should consider current investments and include plants producing petrol and diesel cars along with EVs, since the latter currently have a small share of India’s passenger vehicle market, which doesn’t justify high investments. No automaker has yet made any official comment on participating in the EV scheme since it was announced on March 15. Under the SMEC, the government said it will allow imports of completely built-up EVs having a minimum cost, insurance and freight value of USD 35,000 at 15% import duty for up to five years if companies invest at least USD 500 million in building new plants. In April, Tesla CEO abruptly deferred a trip to India during which he was to meet Prime Minister Narendra Modi, government officials and spacetech executives. Musk was expected to announce Tesla’s plan to set up an EV factory in India, during the trip. “With the American carmaker unlikely to make a commitment towards setting up a local factory near-term, consultations are on with industry stakeholders to make the scheme more amenable also for legacy players, which could also include giving a go-ahead for investments in facilities manufacturing both internal combustion engine and electric vehicles,” said one of the persons cited above. The initial guidelines under SMEC said only companies investing in greenfield plants for EV manufacturing within three years of getting government approval would be eligible for incentives. There is currently no provision to consider investments retrospectively for local production of EVs. “Initially, the scheme was designed for newer companies making EVs. Consultations are on to see if the scheme could be made more attractive now even for traditional companies,” a senior official aware of the development said, adding, “among the tweaks being considered is to specify a backdate for investments being made in indigenous manufacturing of high-end EVs”. A cut-off date for investments prior to
development said, adding, “among the tweaks being considered is to specify a backdate for investments being made in indigenous manufacturing of high-end EVs”. A cut-off date for investments prior to getting government nod would make firms like VinFast eligible for incentives under SMEC. The Vietnamese carmaker has already started building a new plant in Tamil Nadu and announced plans to invest $500 million over five years in India. The Centre is currently preparing standard operating procedures for implementing SMEC. A second official in the know said, “Some legacy companies who are interested in the scheme have raised concerns about the quantum of investment specified in EV-only facilities. The market for high-end electric vehicles, priced upwards of INR 25 lakh, is very small in India. To commit investments of INR 4,000 crore, one needs scale, and scale ends at INR 25 lakh in the Indian market.” Restricting SMEC to solely greenfield EV plants was largely aimed at accurately assessing the localisation of content by companies. Under the scheme, companies are currently required to roll out electric cars with local content of 25%, increasing to 50% by the fifth year. Auto companies and component makers will be required to calculate domestic value addition (DVA) across their supply chain and present these details to vehicle testing agencies for assessment.
Can Bhavish Aggarwal become India’s answer to Musk or will he collapse? When arrived for a recent visit at the Ola Futurefactory, marketed as the world’s largest electric two-wheeler plant, the company’s founder was quick to spot a shuttered entryway that should have been left open. He immediately summoned a custodial manager, people who were present said, and meted out a punishment: run three laps around the several-acre-large plant. Such an unsparing attitude has made Aggarwal, 37, one of India’s most determined entrepreneurs but also one of its most divisive. In his twenties, the founder of India’s largest ride-sharing company held off deep-pocketed rival Uber to remain the country’s top brand. Now, Aggarwal wants his Mobility Pvt Ltd to displace ’s Inc and China’s BYD Co. as the industry leader for electric vehicles by carving out a niche in lower cost designs. But Aggarwal’s relentless pace and management style have vexed some managers and board members at Ola Electric, raising concerns about safety and the business model, according to interviews with more than two dozen former and current employees, who asked for anonymity out of concern for reprisals. Supply chain problems have delayed two-wheelers. Sales have slowed. Some customers complain that scooters catch on fire, have faulty batteries or accident-causing software, spurring product recalls and apologies on Twitter. Around three dozen senior executives working across Aggarwal’s two billion-dollar companies — Ola Electric and ANI Technologies Pvt, which runs Ola’s ride-hailing operations — have quit within a year or two of joining, a higher turnover rate than peers. Late last year, as internal challenges mounted and the global investment climate cooled, Aggarwal paused an initial public offering plan for ANI Technologies, which was last valued at $7.5 billion according to researcher CB Insights. Now, as question marks hang over Ola Electric, multiple current and past executives said in interviews that the company and its risk-taking founder are at a crossroads: Aggarwal could become India’s answer to Elon Musk or he could collapse under the weight of his own ambitious vision. “Passions and emotions run high and we are not on an easy journey,” Aggarwal said in an interview last month at Ola Electric’s swanky headquarters in Bengaluru, occasionally petting the three office dogs: Happy, Husky and Fatty. “But I don’t want to choose an easier journey for myself or for Ola. My anger, my frustration — that’s me as a whole.” Aggarwal’s mission has promise. India is already the world’s largest manufacturer of two-wheelers and the biggest global market. With blue-chip investors and sovereign funds looking for alternatives to China, the country’s success in building affordable vehicles could provide a model for how developing economies can scrap combustion engines and lower emissions without costly . In India, government subsidies and inexpensive labor are helping make EVs as cheap as or cheaper
a model for how developing economies can scrap combustion engines and lower emissions without costly . In India, government subsidies and inexpensive labor are helping make EVs as cheap as or cheaper than internal-combustion-engine models. “The cheapest Tesla costs $50,000, which most of the world cannot afford,” Aggarwal said. “We’ve a chance to lead the EV revolution with a different set of options priced between $1,000 and $50,000.” India's EV market is expected to reach more than $150 billion by the end of the decade, or roughly 400 times its current size, according to Research and Markets. Just a few months after Ola’s electric two-wheeler hit the market last December, Aggarwal started tweeting teasing glimpses of the company’s car design and a new battery innovation center. He has zealously pushed to upend India’s tradition-bound automobile industry, which for decades has been dominated by conglomerates like Tata and Mahindra. “By seeking to pull off something big in the EV industry, Bhavish Aggarwal aspires for the world stage,” said Neha Singh, co-founder of Tracxn Technologies, a Bengaluru-based firm that tracks startups. However, after some initial success, “Ola still has to cover a huge distance to make electric vehicles a mass market in India.” In the Bloomberg interview, Aggarwal said he wants to build companies with lasting impact, even if that means rubbing some people the wrong way. He said India can surpass rivals not just by making cheaper EVs, but also by cultivating a global footprint in 5G, green energy and sustainable mobility. Progress in achieving those goals, he said, is “the yardstick the world should judge us by.” “There’s no major success without sweat and tears,” he said. A ‘Quick Learner’ Aggarwal started his business career more than a decade ago in ride-sharing. After completing an engineering degree and a stint at Microsoft Corp., he founded Ola in 2010 with Ankit Bhati, a classmate at the premier Indian Institute of Technology Mumbai. The company, incorporated as ANI Technologies Pvt, originally provided cabs for tour groups, but soon pivoted to ride-hailing. At that time, most Indians relied on spotty neighborhood cab services. TVG Krishnamurthy, 78, a board member of ANI Technologies, called Aggarwal a “quick learner” with the unique ability to “focus at once on the grass growing on the ground and the flowers at the top of the tree.” “One Sunday, we were chatting and he asked, ‘What would Ola’s share be in all of mobility in India?’” Krishnamurthy said, recalling a decade-old conversation with Aggarwal. “He started marking the percentage share on the back of his bathroom door.” Business flourished as urban Indians quickly adopted the service for commuting or running errands. When global rival Uber Technologies Inc. started operations in India in 2013, Aggarwal encouraged Ola’s workers to try to outsmart the Silicon Valley company on every front — prioritizing outreach to government officials, public relations
started operations in India in 2013, Aggarwal encouraged Ola’s workers to try to outsmart the Silicon Valley company on every front — prioritizing outreach to government officials, public relations blitzes and support services for drivers. Former employees said the startup was an exciting place to work at that time. Ola enlisted more than a million drivers and expanded to dozens of cities. At the end of 2014, Uber’s India operation was set back by a gruesome crime in which a driver was arrested and later convicted of raping a passenger. At the same time, Ola steadily grew its market share. The company attracted investors from Temasek and Warburg Pincus and expanded internationally to the UK, Australia and New Zealand. But by that point, a rift was widening within Ola, executives said in interviews. In 2017, Aggarwal founded Ola Electric and began exploring the capital-intensive business of making EVs. While he used the Ola brand for his new venture, the business was completely separate. Co-founder Bhati and nearly all early investors in ANI Technologies weren’t part of the new company. “I thought it isn’t fair to burden others when we’re going into a very different business with capital intensity, debt profile and capability,” Aggarwal said in the Bloomberg interview. “That’s why investors were given a chance to opt-out. Whoever felt they wanted to invest has invested.” Building the Futurefactory By 2020, Aggarwal was spending much of his time building Ola Electric. Typically, EV companies take at least a few years to make. Aggarwal wanted to cut that timetable to compete against local rivals such as the Bengaluru-based Ather Energy, which spent several years developing a battery and months making quality checks on 100 initial scooters before mass-producing its design. Aggarwal devised a much shorter schedule. In March 2021, he stood on a barren stretch of land three hours outside Bengaluru, describing at a media gathering dreams to build a $330 million two-wheeler plant with a capacity of two million electric scooters in a matter of months. Aggarwal planned for ten lines with an annual capacity of 10 million scooters over two years. He hoped to export the vehicles to Europe and Latin America. Six months later, the Futurefactory opened. By the end of 2021, the company’s first scooter hit the market. Rather than employing a dealership model, Ola Electric reached buyers through social media, a tactic no automaker had attempted before. Ola Electric’s manufacturing process used innovative technology, including ultrasonic friction-welding to forge hundreds of connections between cells in each battery pack. During tours of the factory, Aggarwal liked to show off the noise-free assembly lines and robots that painted the scooters. But it didn’t take long for complaints to pile up on social media. Aggarwal and Ola Electric’s Twitter feeds are filled with buyers upset about delivery delays, overheating batteries and scooters that catch fire. When Aggarwal
complaints to pile up on social media. Aggarwal and Ola Electric’s Twitter feeds are filled with buyers upset about delivery delays, overheating batteries and scooters that catch fire. When Aggarwal recently asked his Twitter followers what cool scooter accessories they wanted, one responded, “Fire extinguisher.” Inside Ola Electric, employees said the culture has turned hostile over the last couple of years. In meetings, Aggarwal ripped up presentations because of a missing page number, directed Punjabi epithets at staff and called teams “useless,” according to current and former employees. Executives said in interviews that meetings scheduled for an hour often lasted 10 minutes because Aggarwal would lose patience over a superfluous sentence in a memo, a crooked paper clip or the quality of printing paper. Retention was a problem, particularly at the C-suite level. Some executives, including Zilingo’s former chief financial officer Ramesh Bafna, decided not to join Ola Electric days after formally accepting employment offers. One business head, who has since departed the company, likened expectations at Ola Electric to “having to run a marathon like Usain Bolt,” the world’s greatest sprinter. “Not everybody is a fit for our culture,” Aggarwal said when asked about his management style. “There’s no world standard on an even, sterile work environment.” Bafna declined to comment. Taking on the ‘Big Boys Club’ So far, the boards of both companies, which comprise the likes of SoftBank Group Corp., have said little in meetings about Aggarwal’s approach to governance. But in interviews, some top executives who’ve since departed raised concerns about the ethics of a share-swap deal with a startup founded by Aggarwal’s younger brother, Ankush, who now heads Ola Electric’s financial services unit. There are also questions about valuation. Last year, as ANI Technologies prepared for an IPO, investors Warburg Pincus and Temasek Pte partook in a secondary transaction, causing the valuation to fall from around $6 billion to $3 billion, according to three people aware of the matter. They said early investors felt cheated. But only a few months later, after the company pulled together a series of deals for a primary round with investors including , ANI Technologies’ valuation soared to $7.3 billion. Ola didn’t respond to questions about the acquisition or valuation swings. In the Bloomberg interview, Aggarwal didn’t directly address either issue but attributed some of the scrutiny to jealous rivals. “The incumbents in the auto industry are the Big Boys Club,” he said. “They left the door open for an upstart like me. My question back to them is, ‘What were they doing? Why is India not leading electrification of vehicles?’” Ola Electric’s business challenges have become clearer in recent months. Scooter sales have yet to take off. Vehicle registrations fell 35% in July compared with June, according to Business Standard newspaper. Ola Electric sold a little over
clearer in recent months. Scooter sales have yet to take off. Vehicle registrations fell 35% in July compared with June, according to Business Standard newspaper. Ola Electric sold a little over 45,000 units by July of this year based on vehicle registration data — far less than what the factory can produce and below the 1 million reservations received when booking opened last December. But after supply chain disruptions and maintenance issues, Aggarwal said production is now rising at the Futurefactory. He pointed to Ola Electric’s unique advantages, including an end-to-end play in ride-sharing, auto retail financing and insurance of vehicles. At a company event in mid-August to unveil its electric car, Ola Electric branded itself “India’s largest” EV company making the “world’s best” electric scooter. Whether Ola Electric succeeds or not, Aggarwal’s admirers seem to agree that he has turbo-charged the EV market, pulling in millions of investment dollars. Despite the risks, Aggarwal said he prefers to take the long view and push ahead with a lofty goal: to build millions of affordable vehicles for India and, eventually, the world. “Growing up, we constantly heard that India is a developing country,” he said. “It’s our generation’s destiny to change this and now is the time. I take both the responsibility and the opportunity seriously.”
10 ways to reduce car insurance premium When you buy a car, the convenience comes for a price. Besides maintenance, you also pay for the vehicle’s insurance, which has two components: ‘third party’ and ‘own damage’ or what is also known as ‘comprehensive’ insurance. While the former covers any damage or injury incurred by a third party in case of an accident, the latter insures the damage suffered by your car. Is there any way to reduce this financial liability or are both the premiums fixed? “In terms of third-party liability, the premium is fixed and the cover is mandatory as per the Motor Vehicle damage risk, the premium is dependent on the kind of coverage required,” says Rakesh Jain, CEO, Reliance General Insurance. What this means is that you can bring down the premium of your comprehensive insurance not only by customising your cover, but also being aware of several other factors. Here are some ways in which you can bring down your . 1) Get ‘pay as you drive’ insurance This is a relatively new concept in the Indian auto industry available since 2020 under the regulatory sandbox guidelines by Irdai, and is allowed to be marketed only by a few insurers. “It’s a usagebased offering, wherein the insurer charges premium only for the number of kilometres fixed at the policy’s inception. The insured, however, gets the same benefits as in a traditional comprehensive cover,” says Jain. So if you drive occasionally, this would be a good way to cut premium because fewer miles mean lower premium. 2) Don’t buy all add-on covers Not every damage is covered by base cover. Add-ons help increase the scope of your comprehensive cover, but they also raise your premium. “You should pick the add -ons depending on your need. So, if you don’t live in an area that has water logging, you don’t need the engine protection cover,” says Ashwini Dubey, Head, Renewals, Policybazaar.com. “There are several add-ons that are less important but cost the same as others,” says Ankit Agrawal, Co-founder & CEO, InsuranceDekho. So you can easily forgo those like daily allowance cover, or the one that covers loss of personal belongings. 3) Don’t go for too many modifications or upgrades If you alter your car in any way, be it installing a CNG kit or an electronic device, you need to inform the insurer as it may impact the premium. If you don’t inform, your claim may be rejected later. “Modifications that increase the chance of theft, such as wheels, car interiors or paintwork, should be avoided. Similarly, any change in engine or mechanics to enhance power or increase acceleration, leads to an increase in risk and a rise in premium,” says Aatur Thakkar, Co- founder & Director, Elephant.in, Alliance Insurance Brokers. “Other modifications you can avoid are bull bars, pressure horns, tinted head or tail lights, fake carbon fibre, flashing brake lights and over or undersized wheels and tyres,” says Agrawal. 4) Avoid small claims If your car suffers minor damage like scratches or
tinted head or tail lights, fake carbon fibre, flashing brake lights and over or undersized wheels and tyres,” says Agrawal. 4) Avoid small claims If your car suffers minor damage like scratches or small dents, you should avoid making a claim because you will not be eligible for a (NCB) at the next renewal. NCB is a discount in premium you get from your insurer for not filing claims during the policy term and can range from 20-50%. You can avail of this if you renew the policy within 90 days of expiry. “So, if your car damage is worth Rs 2,000 or so, and you are scheduled to get a Rs 6,000 NCB next year, it is better to pay the amount from your pocket,” says Dubey. 5) Install antitheft devices in your car Another easy way to reduce your car premium is to lower the risk of having the vehicle stolen. The higher the safety, the lower your premium. “You can do this by installing anti-theft devices like gear locks, antitheft alarms, steering locks from registered manufacturers to get a discount on the premium,” says Thakkar. 6) Raise your deductible Deductible is the amount that you pay from your pocket before the claim is covered by the insurer. The higher the deductible, the lower the premium that you pay on your insurance. So if you are confident about your driving skills or do not drive very frequently, it may be a good idea to opt for a higher deductible, to bring down your premium. 7) Transfer NCB for new car If you have amassed a huge no-claim bonus over 6-7 years, and are planning to buy a new car, you could cut down your premium considerably by transferring the NCB from your old insurance policy to the new . 8) Join an auto association Another simple ruse that can get you a fixed discount on car premium is becoming a member of registered bodies like the Automobile Association of India (AAI) or Western India Automobile Association (WIAA). 9) For older cars, take only third-party cover “While a third-party cover protects you financially against death, injury or property damage of a third party in an accident involving your vehicle, it is imperative to have an own-damage cover to protect against expenses incurred in damage to your own car. So not buying a comprehensive cover to cut premium will be unwise,” says Jain. However, it may make sense to buy only the third-party cover if the value of your car is very low or it’s an old car. “If your car is very old or you are planning to sell the car soon, then opting only for third-party insurance is recommended as it is cheaper than comprehensive plans,” says Thakkar. Besides, you may spend less on repairs than the premium you pay for the comprehensive cover. 10)Pay premium on time, buy online cover Two simple ways to reduce your premium are to compare and shop online for your insurance, and to pay your premium on time. “If you don’t pay your premium on time, the insurer may see it as a risk and could raise your premium amount,” says Dubey. Also Read:
Maruti Suzuki provides loaner vehicles, cabs to cyclone-affected Tamil Nadu, Andhra consumers Tuesday said it has stepped up efforts to provide loaner vehicles and cab services to consumers affected in Tamil Nadu and Andhra Pradesh in the aftermath of the ‘ ’, so that customer mobility is not disrupted while vehicles under repair. The company has mobilized 46 tow trucks from neighbouring cities and activated 34 Road Side Assistance vehicles for quick response. It has additionally augmented spare parts inventory for ready availability, created a pool of trained manpower from its service workshops, in nearby cities and collaborated with insurance firms for faster claim processing and settlement for quick redressal of service requests. In a statement, Maruti Suzuki said it is making all efforts to quickly repair and handover the impacted vehicles to its customers. “To ensure customer mobility is not hampered even when their vehicle is under repair, the company is providing loaner cars and has also partnered with cab service providers”, the statement added. Maruti Suzuki proactively sent out 700,000 SMS alerts containing precautionary steps to its customers to ensure that even before the cyclone hits, customers could take precautionary measures to safeguard their cars against potential damage. Post cyclone, the company said it is working with its dealer partners and made several arrangements at its workshops for quick redressal of all service requests.
Russian crude oil share in imports dips to 25% in January The share of Russian oil in India's crude imports fell to 25% in January from 31% in December 2023 and an all-time high of 44% in May last year as price discounts narrowed, the drove up freight and US sanctions hurt shippers. India imported 1.2 million barrels per day (mbd) of Russian crude in January, 9% less than in December, according to energy cargo tracker Vortexa. India's import volumes were the same as China's seaborne import of Russian oil. Indian state refiners imported 21% less Russian crude in January while private sector refiners took 10% more. "The narrowing of Russian crude discounts versus Middle Eastern crude, recent US sanctions on shipowners carrying Russian crude above the price cap and rising tanker premiums as a result of the Red Sea attacks have made Russian crude less attractive for Indian refiners in recent months," said Serena Huang, an analyst at Vortexa. Attacks in the Red Sea by Yemen-based Houthi Rebels haven't had much effect on Russian barrels on that route. Freight and insurance rates, however, have gone up in general and many ships are taking the longer alternative route to avoid trouble. All key Russian crude grades are trading above the USD 60 per barrel cap, making it harder for Indian refiners to receive cargoes or pay for them. Urals, the flagship Russian crude which has been the mainstay of Indian imports, is trading near USD 70 per barrel while international benchmark Brent is around USD 80. Other Russian grades are even more expensive. Crude oil imports from the US fell to zero in January. The US oil had a 3% share in December and 9% a year earlier in India's imports.
Oil prices fall as investors weigh Fed chair comments, rate hike fell on Thursday following three sessions of gains, after U.S. Federal Reserve Chair re-stated his commitment to curbing inflation, including the possibility of more interest rate rises. fell 80 cents, or 1%, to $75.89 a barrel by 00:09 GMT, while U.S. crude (WTI) dropped 84 cents, or 1.2%, to $70.06. Both crude benchmarks had settled on Wednesday at their highest close since March 14. Powell also said on Wednesday that banking industry stress could trigger a credit crunch with "significant" implications for an economy that officials projected would slow even more this year than previously thought. Meanwhile, U.S. Treasury Secretary Janet Yellen told lawmakers on Wednesday that she has not considered or discussed "blanket insurance" to U.S. banking deposits without approval by Congress as a way to stem turmoil caused by two major bank failures this month. The bank crises have caused volatile trade in riskier assets like oil over the last week as investors awaited the Fed's decision on rate hikes on Wednesday. The central bank's policy-setting committee raised interest rates by another quarter of a percentage point in a unanimous decision, lifting its benchmark interest rate to the 4.75% to 5.00% range. But in doing so it recast its outlook from a hawkish preoccupation with inflation to a more cautious stance to account for the fact that changes in bank behavior might have the equivalent impact of the Fed's own rate hikes.
Irdai proposes 3 yrs insurance cover for cars, 5 yrs for two-wheelers New Delhi: Regulator on Wednesday proposed to introduce an insurance cover of three years for cars and five years for two-wheelers with an aim to allow wider choice to customers. The Insurance Regulatory and Development Authority of India (Irdai) has floated a draft on ' covering both Motor Third Party Insurance and Own Damage Insurance'. The draft proposes to permit all general insurers to offer 3-year insurance policy in respect of private cars and 5-year for two-wheelers, co-terminus with motor third party liability cover. The premium for the entire term of the policy coverage would be collected at the time of sale of insurance. The pricing, as per the draft, would be based on sound actuarial principles, including claims experience, and long-term discount. "The pricing of add-on and optional covers may likewise consider the cost efficiencies of policy administration," said the draft, on which the Irdai has invited stakeholder comments by December 22. It also said the existing No Claim Bonus (NCB) for 1-year Motor Own Damage policies would also be applicable for long-term policies. The NCB applicable at the end of the policy tenure in case of long-term policies would be same as that would have been earned if such policies were renewed annually. In case of long-term standalone Own Damage policies which are issued to be co-terminus with Motor Third Party Liability cover, nine-month policy tenure can be considered as full year for recognition of NCB during the year, it said. Irdai has also come out with a draft on long-term fire and allied perils products. It has proposed a policy cover of up to 30 years for dwellings. Dwellings include standalone residential houses, villa complexes as well as apartment blocks managed by housing cooperatives or resident welfare associations or any other body representing the home-owners. Long-term fire insurance can be cancelled during the tenure of the policy.
Car services startup Park+ expects to turn profitable in March 2024 quarter startup expects to turn by the January-March 2024 quarter and close the current fiscal with over Rs 200 crore, a senior company official said. Park+ founder and CEO said that the company at present has operations in about 30 cities and plans to expand to over 100 cities by 2024. The backed company has raised USD 55 million till date to fund its operation which is sufficient for the company to fund operations as well as planned expansion. "We want every service related to cars and car owners to be available on our platform. We are providing parking, car cleaning and repair services etc through the app. Roughly every 4th car in India is on Park+. We expect to turn profitable by the January-March 2024 quarter," Lakhotia said. He said that Park+ has services now available at over 7,000 locations in 30 cities and there is no user acquisition cost now for the company. "We expect to post of Rs 200 crore this fiscal. We expect next financial year to be the first year of profitability for us," Lakhotia said. The company has posted a loss of around Rs 99 crore and revenue of Rs 103 crore in the financial year 2022-23. Park+ installs automatic gate barriers that facilitate entry and exit of cars in societies and commercial buildings. The company provides car cleaning, car finance, FASTag and other services to cater requirements of car owners. "We are looking to grow our customer base by adding more services like roadside assistance, insurance services, electric vehicle charging etc that are related to cars. Later we are looking to deploy connected car services and automate every service that can ease a car owner's life," Lakhotia said. He said that commercial real estate partners have started bundling the company's services in cities where they operate. "We are seeing aspirations of people even in smaller cities increasing. People in smaller towns are looking for a gated society which is driving our geographic expansion. We are seeing demand for automation in smaller cities like Gorakhpur, Bhilwara etc," he said. The company at present has over 700 employees. Lakhotia said that the company expects to hire 300-400 more employees to support growth of the company.
How to ready the documents needed for export shipment When it comes to ing, keeping the right set of documents handy can make a big difference in ensuring the process is smooth and seamless. Becoming adept at organising such documents is crucial to handle export orders, especially the big or complicated ones, and make the process easier to comply with. So, what is the kind of paperwork that can help ensure orderliness and structure to the various steps involved? First, it is important to thoroughly check the documents before you submit them as there are multiple kinds of paperwork involved while exporting goods, says Pushkar Mukewar, Co-founder & CEO of Drip Capital. According to the (FTP) 2015-2020, the essential documents required for exporting goods from India are: bill of ladingpostal receipt; commercial invoice; packing list and shipping bill. There are also documents related to export compliance, licences and some general paperwork that are integral to being export-ready. With regard to export compliance documents, an ( ) is needed first. If exporting without paying integrated goods and services tax ( ), a bond or letter of undertaking (LUT) is required. Besides this, tax invoices with details such as name, address and of the supplier; invoice number and date; name and address of the recipient; HSN code for goods; quantity and total value of goods and signature of the supplier are required. Mukewar says a trader should remember the key steps while collating all the documents. He suggests availing the services of a customs agent who can ensure that all documents are in place and help carry out the customs and dispatch procedures smoothly and speedily. “To avoid confusion and delay, ensure you know ahead of time which products are to be scrutinised and by which agencies, so that you can start compiling the required documents easily at the earliest. As far as quality check certificates are concerned, double-check if everything is ready for inspection so you can avail these documents on time,” he adds. To get an export licence, Drip Capital advises that the following documents be attached with the application for faster processing: General documents Exporters should also be aware of an indicative list of general documents needed to ship goods overseas. Proforma invoice, for instance, which specifies various details including buyer and seller in the transaction; description of the goods being shipped; delivery details and currency used in the quote have to be filled correctly. Certificates of origin will be needed in some countries to prove the source of the product. A bill of exchange, which is typically generated on a letter head of the exporter, instructs the importer to pay the relevant amount to the exporter. Besides these, documents such as phyto-sanitary certificates and fumigation certificates are required to show conformity with international quality, standards and procedures. Other necessary paperwork includes export orderquality check
certificates and fumigation certificates are required to show conformity with international quality, standards and procedures. Other necessary paperwork includes export orderquality check certificate; marine insurance policy; health certificate (applicable only when exporting food products that are of animal or non-animal origin); certificate of insurance; warehouse receipt and bill of entry. Exporters must pay attention to correctly filling product description or classification so as to avoid issues with customs clearance at a later stage. Taking into account stringent quality checks by ensuring that all quality certifications are in order will also keep them in a good stead. Mukewar suggests that exporters network and build a good equation with the officials concerned to ensure smooth processing and to keep track of the s. “In general, it is important for exporters to maintain a good rapport with the C&F agent to avail real-time updates of the shipment. Delays can turn out expensive,” he adds.
EV infrastructure may be included under priority sector lending The government is looking at including (EV) infrastructure within the category, a senior official said Saturday, a move that would come as a boost for the sector. "We have received a representation to include EV infra in the priority sector. We will look at reworking the priority sector lending ( ) requirements for banks," the official said, adding that the issue will be discussed with the Reserve Bank of India ( ). The has also written a letter to the Department of Financial Services in this regard, the official said. According to RBI guidelines, it is mandatory for banks to extend 40% of their adjusted net bank credit to the priority sector. PSL currently includes seven sectors - agriculture, micro, small and medium enterprises, export credit, education, housing, social infrastructure and renewable energy. The government wants to increase the proportion of EVs on Indian roads as part of efforts to meet its net zero target. It offers subsidies to manufacturers under the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) programme. Inclusion of EV infrastructure under PSL is expected to boost credit flow to the sector by providing a mandate for financial institutions. According to a January 2022 report, electric two- and three-wheelers, as well as four-wheelers for commercial use, represent favourable segments for inclusion in priority sector lending. EV sales crossed 700,000 in the first half of 2023. An earlier ET report had indicated that banks were pitching to include loans for electric vehicle infra and green hydrogen as part of priority sector lending. "Cumulative investment in India's electric vehicle transition could be as large as INR 19.7 lakh crore (USD 266 billion) between 2020 and 2030, highlighting the need for higher liquidity and lower cost of capital for EV assets and infrastructure," the report had noted. People in the know informed ET that non-life companies were unlikely to see any capital infusion this year. "Their situation is not so bad that they cannot self-sustain," one of the persons cited said. The government had not budgeted any provision for capital infusion for this year, but ET earlier reported it was considering an infusion of INR 3,000 crore. Micro-insurance The government is also looking to expand the coverage of micro-insurance products. It has asked banks to extend coverage of accident and life insurance schemes to Pradhan Mantri Jan Dhan Yojana (PMJDY) bank account holders. "We aim to cover most of the people with our micro-insurance scheme and are coordinating with other ministries to increase coverage," financial services secretary Vivek Joshi said on Saturday, pointing out that anganwadi workers could be deployed to promote such programmes. The ministry also indicated that the E-Shram portal could be tapped in coordination with the labour ministry to increase the coverage of schemes such as the Pradhan Mantri Jeevan Jyoti
programmes. The ministry also indicated that the E-Shram portal could be tapped in coordination with the labour ministry to increase the coverage of schemes such as the Pradhan Mantri Jeevan Jyoti Bima Yojana and the Pradhan Mantri Suraksha Bima Yojana. The government announced earlier this month that the number of PMJDY accounts had touched 500 million. Over the last nine years, the average balance in these accounts has increased 3.8 times - from just over INR 1,000 to nearly INR 4,000.
Italy to crack down on e-scooters after deaths and accidents The Italian government on Tuesday announced a crackdown on the use of electric scooters on city streets, looking to cut accidents, reduce injuries and prevent pavements from becoming cluttered obstacle courses. Updating Italy's highway code, the government also announced it would suspend driving licences for people caught using a mobile phone while behind the wheel and promised zero tolerance for anyone found drunk or on drugs while driving. Like in many European countries, the use of e-scooters has boomed across Italy in recent years, with rental companies flooding major cities with scooters for rent that are popular with locals and tourists alike. However, police have reported countless accidents, with six people dying in alone over the past two years while riding scooters. Scooters have also caused problems for pedestrians, with no rules in place for where they should be left. Under the new regulations approved by the cabinet, riders will have to wear a helmet and have insurance, while e-scooters will now be required to have a registration plate. The measures will have to be approved by parliament to become law. It will be forbidden to ride the two-wheelers outside of built-up areas, such as on major highways, or to leave them parked haphazardly on pavements. "We need to restore a bit of order. Thinking about the pavements of the big cities like Milan and Rome, it is like a gymkhana for people with pushchairs," Minister said after unveiling his plan. Despite offering an environmentally friendly way to get around town, e-scooters have faced a backlash from people, who have felt threatened by the zippy, silent machines. Parisians voted in April to ban them from the French capital. There has been no such suggestion in Italy, although various cities have looked to cap the speed limit of scooters and reduce the number of firms that can hire them out.
INR 2.2 lakh crore revenue foregone due to excise duty cuts on petrol, diesel: Hardeep Puri Around INR 2.2 lakh crore of revenue was foregone because of cuts in excise duty on petrol and diesel announced between November 2021 and May 2022, Union Minister on Saturday. Addressing a press conference, Hardeep Puri, who is Union Minister for , talked about the steps taken by the Modi government to reduce and maintain fuel prices despite fluctuations in global . "Excise duty on petrol and diesel was cut by INR 13 a litre and INR 16, respectively, between November 2021 and May 2022. Revenue foregone as a result of the cuts was INR 2.2 lakh crore," he said. Responding to a question on the likelihood of a cut in petrol and diesel prices, the minister said that the decision to reduce retail fuel prices would depend on the stabilization of the geopolitical scenario and international . "I will only say that if the situation of the world is stable, oil prices stable, then it (price cut on petrol and diesel) can be looked at". "But if you say an attack is taking place somewhere in the world and insurance and freight price go up..." he said, as he referred to the Houthi attacks in the and the Russian-Ukraine war. The Union Minister said 85% of India's crude oil requirements are met by imports, with the price of crude in the international market being the benchmark. The Union Minister elaborated on how the 'Russia-Ukraine war' impacted the crude oil supply, but India was able to manage its supply by diversifying its sources and increasing the purchase from Russia despite fear of sanctions. "We know how the Russia-Ukraine war erupted. Russia produces 11-13 million barrels per day. One way was to stop buying crude oil from Russia, but it would have brought down the availability and we couldn't have disrupted oil supply for the public. In that case, the prices would have shot up to USD 138...there was talk of sanctions," Puri said. "At that stage, we were buying only 0.2% crude oil from Russia. But, we had to confront and navigate the situation. We have been diversifying our supply and increasing our purchases from Russia. Our policy is that from wherever we will get the crude oil as per our requirements, we will buy it, and it is a totally transparent system. When other countries saw this, they also gave us discounts. Our policy is 'nation first' and the consumer is paramount." India did not put the burden of rising energy prices on its citizens when global prices of LPG skyrocketed, and instead followed a citizens-first approach, the minister said. During the COVID period from June 2020 to June 2022, the international prices of LPG increased by around 300%, according to government data. However, to insulate consumers from fluctuations in international LPG prices, the cost increase was not fully passed on to consumers of domestic LPG. Accordingly, domestic LPG prices were raised by only 72% during this period, leading to significant losses for the oil marketing
cost increase was not fully passed on to consumers of domestic LPG. Accordingly, domestic LPG prices were raised by only 72% during this period, leading to significant losses for the oil marketing companies. Despite these losses, the public sector oil marketing companies have ensured continuous supplies of this essential cooking fuel across the country. Prime Minister Narendra Modi announced a INR 100 reduction in LPG prices on Friday, which was International Women's Day. This reduction in gas prices is over the INR 200 cut announced during Raksha Bandhan last year. The government has also decided to continue the INR 300 LPG subsidy for Ujjwala beneficiaries for the next fiscal. With the government moves, the standard 14.2-kg domestic LPG cylinder would now cost INR 803 in Delhi, INR 802.50 in Mumbai, INR 829 in Kolkata, and INR 818.50 in Chennai. The effective LPG cylinder price for Ujjwala consumers -- including the subsidy benefit -- would be INR 503 in Delhi, INR 502.50 in Mumbai, INR 529 in Kolkata and INR 518.50 in Chennai.
Ford exec expects software to boost revenue for commercial trucks, vans Ford Motor expects to incorporate more and better software into the trucks and vans in its highly profitable commercial vehicle business and grow revenues by USD 4,000-USD 5,000 per vehicle in the future, a top executive said on Thursday. , chief financial officer of Ford Pro, said the automaker would look to boost revenue with software- and data-driven fleet services, safety and security services, partial vehicle autonomy and insurance. Kumar, speaking at a J.P. Morgan investor conference, did not give a percentage forecast for revenue or profit margin growth, but said Ford's ability to deliver and profit from those services will be enhanced in the middle of this decade when the company introduces its next-generation electric commercial vehicles with a new digital "intelligence" platform. That new platform will help Ford Pro meet some ambitious 2026 targets, he said, including doubling the percentage of connected vehicles to about 60% and tripling the percentage of vehicles with paid software to about 36%. Ford Pro will continue to offer a full portfolio of combustion engine, hybrid electric and full electric vehicles, Kumar said. Its second-generation EVs, including the successor to the pickup, will be more profitable, in terms of their ability to generation additional software and services revenue. Kumar said the current F-150 Lightning was not "cost optimized," but declined to say whether it was profitable. He said Ford Pro expects to boost its commercial vehicle business in Europe with the arrival this fall of a new van and the introduction next year of electric versions of the and Transit Custom.
New Proace Max completes Toyota professional e-lineup delivers a more comprehensive choice than ever with a reinvigorated and expanded electrified line-up of commercial vehicles complemented by an uncompromising commitment to customer care enabling Toyota’s continued growth in the sector. Class-leading light commercial vehicle technology stands out from the crowd with an updated bold and robust look throughout an extensive line-up which boasts market-leading load-carrying capabilities. Taking centre stage is the all-new , which joins an expanded Proace family alongside the updated Proace and Proace City as part of a powerful product portfolio. Meanwhile, the Hilux Hybrid 48V brings a new electrified option to Toyota’s unstoppable pick-up. A striking new front design for the Proace family emphasises a Toyota identity and creates a striking first impression, thanks to a cleaner surface for the front face. The latest full LED lighting technology and alloy wheels create an even more distinctive appearance, depending on the trim grade. Modern interiors boast of steering wheel designs plus the latest onboard equipment according to the trim level, including fully digital displays and up-to-date infotainment system with built-in navigation, plus wireless Apple CarPlay or Android Auto connectivity. Connected services will deliver added-value to day-to-day operations and available to every grade of the Proace family from start of sales. In keeping with Toyota’s multi-pathway approach to carbon neutrality, all Proace family vehicles are offered as battery electric vehicles (BEV) delivering zero tailpipe emission performance without sacrificing practicality and reliability. By offering electrified options throughout the Toyota Professional product line-up, Toyota emphasises its belief that customers need a variety of affordable and practical options to accelerate the pace of CO 2 reduction today, helping to ensure a successful transition to zero emission mobility in the future. All Toyota Professional vehicles feature the latest Toyota Safety Sense technology, assisting the driver and providing additional peace of mind. Heavy duty MAX: As the biggest vehicle in the Toyota Professional line-up, the heavy duty Proace MAX is available in six configurations, featuring two wheelbases, three lengths and three heights for multiple load-carrying options. In its largest specification the Proace MAX Electric has a best-in-class cargo capacity of 17 m³. Loading and unloading is straightforward thanks to full height doors and a practical square opening, with low threshold for easy access. For the first time on a Toyota, the doors open 270 degrees, maximising the kerbside loading space and access to the cabin. The latest battery electric technology provides the comfort of zero emissions driving with the practicality of up to 420km (WTLP standard) range. The Proace MAX platform leads the way for conversions too, with Toyota’s uncompromising quality standards at its heart.
emissions driving with the practicality of up to 420km (WTLP standard) range. The Proace MAX platform leads the way for conversions too, with Toyota’s uncompromising quality standards at its heart. It is available in as a one-way or three-way tipper and dropside configurations, including the optional Chassis, Platform and Crew Cab lay-out with two rows of seating. Proace and Proace City: The versatile Proace and Proace City vehicles feature eye-catching visual updates and the latest technology in both van, Proace VERSO and Proace City VERSO passenger configurations, emphasising the exhaustive variety of practical solutions within the Toyota Professional line-up. The Proace van comes with best-in-class powertrain options with the EV battery delivering a 20km increase in range of up to 350km. The Proace also has the load carrying to match its performance, thanks to a capacity of up to 6.6 m³ and a best-in-class payload of up to 1,400kg, while in Proace VERSO configuration the vehicle comfortably seats up to nine passengers. Load carrying is a standout attribute of the practical Proace City, which leads its class in load and passenger carrying. The van cleverly utilises the available space to hold 4.4 m³ of load volume and up to 1,000kg of cargo, depending on powertrain. The latest EV battery technology also delivers a best-in-class range of 330km, a 50km increase from the current generation. All van variants comfortably seat three front passengers while the seven-seat Proace City VERSO offers enhanced passenger carrying capacity. Hilux 48V Hybrid: The Toyota Professional line-up also expands with the addition of the new Hilux Hybrid 48V, which benefits from improved fuel efficiency and enhanced driving performance, further enhancing the pick-up’s formidable capabilities on and off road. As well as the Hilux’s legendary durability and reliability, the Hilux Hybrid 48V has improved throttle response and linear acceleration, with enhanced off-road performance too via smoother acceleration when navigating rough terrain and regenerative braking on downhill sections. Driving enhancements come with no compromise on towing and payload capacity, which remain exceptional at 3,500kg and 1,000kg respectively. Complete customer care: The enhanced Toyota Professional line-up represents a renewed commitment to commercial vehicles and Toyota aims to continue its year-on-year sales volume increase in this sector, which amounted to 119,000 vehicles in 2022, and are on track to set new sales records this year. Toyota intends to achieve this via a comprehensive vehicle line-up allied to a strong focus on customer service, which includes competitive finance and insurance, warranties and roadside assistance provided by Toyota Financial Services, KINTO and Toyota Insurance Services for peace of mind as well as courtesy vehicles to keep customers on the road and at work. To enhance the experience from purchase through ownership, newly developed Toyota Professional
Services for peace of mind as well as courtesy vehicles to keep customers on the road and at work. To enhance the experience from purchase through ownership, newly developed Toyota Professional Centres will provide dedicated commercial vehicle expertise and servicing facilities. An updated accessory range includes practical carrying and storage solutions, as well as security and protection options for added peace of mind. Further details about Toyota Professional products and services will be unveiled at the 2023 Toyota Kenshiki Forum later this month, the company said.
Edelweiss General Insurance launches India’s first mobile telematics-based motor insurance has launched Switch - India’s first on-demand comprehensive product, under the IRDAI’s Sandbox initiative. Switch is a fully digital, mobile telematics-based motor policy that detects motion and automatically activates insurance when the vehicle is driven, making it convenient and hassle-free for customers. Switch allows customers to save money based on their driving behaviour. This usage-based model measures the quantity as well as the quality of driving and calculates premium accordingly. This makes motor insurance product in the market that generates a real-time driving score and dynamically rates the premium. Customers are given a driving score based on several driving parameters such as overspeeding, distracted driving, sudden braking, etc. Simply put, the better you drive, the better your score will be and the less you will have to pay. In addition, policyholders will no longer need to switch on the policy if they use their car, the app will do it for them. Shanai Ghosh, Executive Director & CEO, Edelweiss General Insurance said, “SWITCH has been designed keeping in mind the changing driving preferences of today’s mobile-savvy customers. Our attempt is to incentivize good driving and make customers pay only as per usage. It is the only on-demand motor product in the country that places complete control in the hands of customers. Pay only for how much you drive and how well you drive. ‘Drive less, pay less; Drive better, pay less’ is what SWITCH is all about. With this, we are also hoping to encourage people to drive better and safer. I am extremely thankful to the regulator for allowing us to constantly innovate and provide need-based solutions to customers under the Sandbox initiative”, she added. Switch can be bought online at the company's website. Post-purchase, customers can download the Switch app from Google Play Store or iOS App store to see their policy. Edelweiss claims that the entire product lifecycle is digital, right from purchase, to claim intimation, claim settlement, customer service, etc., which will help provide a seamless experience.
Tesla taps Asian partners to address 4680 battery concerns It's crunch time at Inc, where is looking to crack the code for making better, cheaper batteries. The electric-vehicle maker is recruiting Chinese and Korean materials suppliers to help lower the cost and boost the energy of its newest , even as the company struggles with battery-related performance and production issues that have helped delay the launch of its futuristic , according to people familiar with the plans. Tesla has tapped China's Ningbo Ronbay New Energy and Suzhou Dongshan Precision Manufacturing to help trim materials costs as it ramps up production of 4680 battery cells in the United States, according to the sources, who asked not to be named. The details of these arrangements have not previously been reported. If the Austin, Texas-based is able to work out the performance and process kinks and meet its ambitious production targets, the 4680 ultimately could be the linchpin - rather than choke point - in CEO Musk's dream of building 20 million vehicles annually by 2030. Neither Tesla nor Musk could be reached for comment. As part of its efforts, Tesla also has signed a deal with Korea's L&F Co to supply high-nickel cathodes that could increase the energy density of its 4680 cells, one of the sources said. The automaker aims to augment its own output with 4680 cells from Korea's and Japan's Panasonic - an insurance policy to secure future EV production, two of the sources said. LG and Panasonic are expected to supply cells for Cybertruck, one of the sources said. A shortage of batteries means "the factories stall," Musk told investors in early March. The new battery is expected to play a key role in the launch late this year of the edgy, stainless-steel Cybertruck, the company's first new model in more than three years. Tesla had considered three battery options to ensure that launch is not delayed again: smaller 2170 cells used widely in other Tesla models, 4680 cells and less-expensive lithium iron phosphate cells, but the EV maker favored waiting until the 4680 cells are ready, the sources said. Details about Tesla's Cybertruck battery strategy, including use of 4680 cells and consideration of other options, have not been reported. In 2022, Musk said he did not expect 4680 batteries would be a "limiting factor for Cybertruck or anything else." The Tesla-designed 4680 cell - so named for its external dimensions (46mm diameter, 80mm length) - is crucial to future production plans. Tesla intends to make versions at factories in Texas, California, Nevada and Berlin for use in vehicles from Model Y to Cybertruck, the sources said. But Tesla is still struggling to ramp up the first wave of production, Musk acknowledged at Tesla's investor day on March 1. 'TESLA IMPACT UNDERESTIMATED' Despite the immediate problems, some analysts remain optimistic Tesla will resolve these issues. "While execution risk remains and many details are unknown, Tesla's impact on the global battery
Despite the immediate problems, some analysts remain optimistic Tesla will resolve these issues. "While execution risk remains and many details are unknown, Tesla's impact on the global battery industry may still be underestimated," Morgan Stanley said after investor day. Musk first announced the new cell at Battery Day in September 2020. At that event, he promised a 50% reduction in cell cost through a series of innovations, from a larger cell size to a new "dry" electrode coating process that could dramatically reduce the size and cost of a battery factory while boosting cell performance. Repeated delays in moving the new cell from the initial prototype phase to full-scale production also have pushed back introduction of the long-awaited Cybertruck, which was designed to take advantage of the cell's potential improvement in energy density and power - advances that have yet to materialize. But it will take time for suppliers to ramp up production. Panasonic is running a pilot 4680 production line at its Wakayama factory in Japan, and plans to start volume production later in the fiscal year that ends in March 2024. Shoichiro Watanabe, chief technology officer of Panasonic Energy, last month said the company's new Kansas battery plant will focus initially on 2170 cells, but it will eventually shift 4680 production to North America. Last year, LG said it planned to open a new 4680 production line at its Ochang plant in Korea in the second half of 2023. Tesla's first-generation 4680 cells, built at its Fremont, California, factory, failed to hit an energy density target, people involved say. The automaker so far has been able to dry-coat the anode - the negative electrode - but is still having issues with dry-coating the cathode, where the most significant gains are expected to be made, the sources said. Tesla's attempt to ramp up production of the dry coating process has thus far resulted in enough batteries only for about 50,000 vehicles annually, Musk and company executives have said. In 2020, Musk said Tesla would have enough 4680 capacity in-house to supply 1.3 million Model Ys. While executives said it seems likely Tesla will be able to increase 4680 output five-fold by year-end, the company is hedging. Musk is betting if Tesla ends up with too many batteries this year, that is a good problem to have. It can use those for the energy storage systems it sells to utilities and consumers. Tesla also has been installing first-generation 4680 cells with "wet" cathodes in so-called structural packs in Texas-built Model Ys. A majority of those vehicles use the older 2170 cells. Tesla plans to use a cathode with more than 90% nickel in the next generation of 4680 cells, two sources said. L&F is expected to be one of the suppliers of that high-nickel cathode, another source said.
Should you take car insurance linked to distance, driving style? NEW DELHI: Your could soon be decided by how much and how well you drive. The Regulatory and Development Authority of India ( ) has permitted insurers to launch policies with premiums linked to mileage and quality of . Pay-as-you-drive policies allow buyers to set a mileage limit for their car and offer them discounts over the normal premium. The lower the limit, the bigger the discount over the normal premium. The insurance is valid only up to the limit chosen by the buyer. One insurance company offers three slabs of 7,500 km, 5,000 km and 2,500 km. Insurance companies can also offer discounts based on the quality of driving. A telematics device is fitted in the car to monitor the condition of the vehicle and the driving habits of the user. This data is then interpreted to give discounts to careful drivers. It can also penalise rash and negligent drivers. These developments seem good news for those who own multiple vehicles or have not been driving too much due to Covid restrictions. They won’t have to shell out the full premium if their vehicles are not being used too much. “The introduction of these options will aid in giving the much-needed fi llip to motor Own Damage cover in the country and increase its penetration,” Irdai said in a statement. However, the discounts offered on the premium are not too exciting (see table). If you choose the 7,500 km slab, you get only a small 10% off on the regular premium. Mind you, the discount only applies to the ‘own damage’ premium, and the mandatory third-party premium and other add-on covers are not affected. The discount is a little more attractive for a lower limit of 2,500 km, but that works out to an average drive of less than 7 km in a day. Consider that before you opt for a policy with a low slab. The good news is that buyers can switch to a higher slab or even to a regular unlimited policy if they end up driving more than the slab limit. But this upgrade should be done well before time. It is not possible to upgrade after a mishap or claim incident. The installation of telematics devices also raises privacy concerns for the car owner. No doubt it will reduce the insurance premium, but this discount comes at a cost. Go for it only if you are comfortable with the thought that the insurer will have 24x7 data on your car’s movement.
NHAI completes largest ever InvIT monetization of over INR 16000 cr through round 3 (NHIT), the infrastructure investment trust by the National Highways Authority of India (NHAI), has successfully concluded fund-raising through ' ' for national highway stretches of aggregate length of 889km at an enterprise value of over INR 16,000 crore, which is the largest monetization by NHAI and one of the largest transactions in the history of Indian road sector. The letter of acceptance (LOA) to raise the highest ever concession value through 'InvIT Round-3' was issued in February 2024. In the third round of monetization, NHIT has raised unit capital of around INR 7,272 crore from marquee domestic and international investors and debt of around INR 9,000 crore from Indian lenders, to fund the acquisition of national highway stretches, at a base concession fee of around INR 15,625 crore, and additional concessional fees of INR 75 crore, according to the Ministry of Road Transport & Highways ( ). The units were subscribed by investors through a book build process at a cut off price of INR 124.14 per unit, at a premium over the current NAV of INR 122.86 per unit. The units witnessed strong demand from both existing and new investors, including foreign pension funds such as Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board, which are existing unit holders and subscribed to the maximum limit of 25% each; domestic pensionprovident funds (IOCL Employee’s PF, L&T Staff PF, Rajasthan Rajya Vidyut Karamchari Pension Fund, SBI Pension, etc), insurance companies (Tata AIG, SBI Life, HDFC Life), mutual funds (SBI, Nippon India), banks and few others. NHAI also subscribed to its share of ~15% of the units at the same price, MoRTH said. With completion of the third round of monetization the total realized value of all three rounds of InvIT stands at INR 26,125 crore and holds a diversified portfolio of 15 operating toll roads with an aggregate length of about 1,525km spread across the nine states of Assam, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, Uttar Pradesh and West Bengal, with concession periods ranging between 20 to 30 years, it said. National Highways Infra Trust (NHIT), the Infrastructure Investment Trust sponsored by National Highways Authority of India (NHAI), was set up in 2021 to support Government of India's national monetization pipeline. Commenting on the success of latest round NHAI’s monetisation, Anurag Jain, Secretary, Ministry of Road Transport & Highways said “NHIT is a successful example of public private partnership (PPP), in which it has played a very important role in supporting national monetisation pipeline. While doing that NHIT has established itself as a leading player in the InvIT space, playing a critical role in channelizing financial capital into the further development of Indian roads sector.” Santosh Kumar Yadav, NHAI Chairman added, “We are pleased that NHIT has successfully
playing a critical role in channelizing financial capital into the further development of Indian roads sector.” Santosh Kumar Yadav, NHAI Chairman added, “We are pleased that NHIT has successfully completed the largest monetisation of roads for NHAI. We expect it to continue to play a stellar role in the monetisation and development of the Indian roads sector.” Suresh Goyal, MD of the Investment Manager of NHIT said, “We thank the existing investors for their continued faith and welcome the new partners for coming on board in strengthening NHIT andsupporting NHAI in the development of India’s road sector.” Since November 2021, NHIT has cumulatively raised around INR 12,000 crore through first two rounds of monetization for acquisition of eight operating road assets with an aggregate length of 636km from NHAI. Historically, units of NHIT were issued at a price of INR 101 in November 2021 and were listed on both BSE and NSE, it added.
BMW Group India introduces Retail.NEXT dealerships across 33 cities to transform luxury automotive experience has introduced dealerships, aiming to redefine the luxury automotive experience over the next 36 months. This initiative will be rolled out across 56 facilities in 33 cities, focusing on integrating 'phygital' innovations—a blend of physical and digital elements—to provide a modern and engaging environment. Retail.NEXT is designed to cater to evolving customer needs with advanced services and facilities. “At India, we are changing the game by redefining the luxury experience. With the introduction of Retail.NEXT, we aren’t just elevating experiences; we are transforming them. Every visit to a BMW dealership is more than just a step into a unique world; it’s an immersion into a space where modernity, progress, and true luxury converge seamlessly. Retail.NEXT dealerships are designed to revolutionise customer engagement by integrating ‘phygital’ innovations, where the physical meets the digital in environments that are as aesthetically stunning as they are forward-thinking," said Vikram Pawah, President and Chief Executive Officer, BMW Group India. "This initiative marks the beginning of a nationwide rollout as we expand our vision of an immersive luxury experience in India. We greatly appreciate our dealer partners for their unwavering dedication to BMW Group and significant investment spanning over three years for implementing Retail.NEXT in India,” added Pawah. What Retail.NEXT will provide Retail.NEXT is set to overhaul the space in India, blending digital innovation with personalised services. The design features open spaces and minimalist elements to ensure an intuitive showroom flow. Digital interfaces will allow customers to explore vehicle features, customise options, and receive tailored recommendations seamlessly. Additionally, the design includes private consultation areas and zones dedicated to vehicle handovers, making each customer interaction personal and memorable. By doing so, BMW Group India aims to reflect its brand’s commitment to luxury, innovation, and customer satisfaction through these modern retail spaces. Retail.NEXT emphasises integrating parts, accessories, and lifestyle collections near the central hospitality area, with a fully accessorised highlight car creating a ‘Wow Effect.’ Customer consultations will take place in a living room-like atmosphere, with Personal Service Advisors and BMW Geniuses equipped with digital tools to provide detailed product information. Central customer walkway Retail.NEXT’s layout features a ‘Central Customer Walkway,’ placing visitors and vehicles at the center. With unified flooring and ceiling across various segments such as BMW, MINI, BMW Motorrad, New, and BMW Premium Selection (BPS), the dealership ensures there is no separation between business areas. A single entry for both sales and service simplifies navigation. In place of traditional reception counters, visitors are
(BPS), the dealership ensures there is no separation between business areas. A single entry for both sales and service simplifies navigation. In place of traditional reception counters, visitors are welcomed at a Welcome Stand, reducing physical barriers between customers and staff. The showroom also features a Multifunction Counter as an interactive spot, useful for parts and accessories sales or as a cashier desk for both new and pre-owned sales. The Central Customer Walkway guides visitors through a premium selection of luxury vehicles, while the BMW Bar & Lounge serves as a central relaxation area. Sales and Service Consultancy Lounges are available for private discussions, covering aspects such as financing, leasing, and aftersales services. The Multifunctional Handover Bay is dedicated to the handover of new and pre-owned cars, further serving as the starting point for test drives. The relaxed lounge setting is designed to make car deliveries a memorable experience. Electric vehicle (EV) users will find AC/DC fast-charging facilities available at the dealership. Inauguration of ’s Retail.NEXT showroom in Gurugram The first Retail.NEXT showroom, operated by Bird Automotive, was recently inaugurated in Gurugram. The facility, located at Address One, Baani, Golf Course Road, Sector-56, Gurugram, Haryana, is headed by Gaurav Bhatia, Dealer Principal of Bird Automotive, which represents BMW Group India with sales and service facilities for BMW and MINI in Dehradun, Gurugram, and Delhi. “Our partnership with BMW Group India has grown and flourished over the years, a journey we take immense pride in. The remarkable growth we have witnessed in the Gurugram region stands as a testament to our shared vision and commitment. Today, as we inaugurate the first Retail.NEXT dealership in Gurugram, we are not just opening a new chapter in our success story, but also setting new benchmarks in luxury automotive retailing. We extend our heartfelt gratitude to BMW Group India for entrusting us with this groundbreaking opportunity. Together, we are poised to redefine the luxury car-buying experience, promising unparalleled service and unforgettable experiences for BMW customers in the region,” said Gaurav Bhatia, Dealer Principal, Bird Automotive. The 8,690 sq. ft. facility showcases BMW and MINI vehicles on the ground and first floors, respectively. It features ten vehicles, including eight BMWs and two MINIs. A dedicated vehicle handover lounge ensures memorable car deliveries, while the lifestyle and accessories zone displays the latest merchandise. The customer interaction lounge provides a relaxed atmosphere for consultations with sales consultants, and various finance and insurance options are available for customers.
Turkey hikes energy prices; Istanbul monthly inflation highest in decade ISTANBUL: soared by the most in at least a decade in Turkey's biggest city Istanbul last month, according to data on Saturday, and President Tayyip Erdogan's government sharply raised nationwide electricity and natural gas prices for the new year. Prices also jumped for petrol, car insurance and some bridge tolls, adding more strain to an economy facing surging inflation and a currency crisis that was triggered by a series of unorthodox interest rate cuts. The , citing high global energy inflation, said electricity prices were raised by as much as 125% for high-demand commercial users and by around 50% for lower-demand households for 2022. Natural gas prices jumped 25% for residential use and 50% for industrial use in January, national distributor BOTAS said. The price rise was 15% for power generators. In Istanbul, home to around a fifth of Turkey's population of 84 million, retail prices jumped 9.65% month on month in December for an annual rise of 34.18%, the Istanbul Chamber of Commerce (ITO) said. Home appliance prices were up more than 20% while food rose nearly 15%. Wholesale prices in the city jumped 11.96% from November for an annual rise of 47.10%, ITO said. The data and adjustments will probably stoke the country's overall annual inflation rate, which jumped above 21% in November and is seen surpassing 30% in December and heading higher still, largely due to a currency crash. The lira shed 44% of its value against the dollar last year after a plunge since September, when the central bank, under pressure from Erdogan, began a series of aggressive rate cuts. Other adjustments included a 20% jump in mandatory vehicle insurance costs for those with the highest deductible. Petrol prices rose by more than half a lira per litre, while diesel prices increased by 1.29 liras, the Energy, Petroleum, Gas Stations Employers Union (EPGIS) said on Friday. Also Read:
Swiggy partners with Gurugram traffic police for road safety and traffic awareness workshop has partnered with the to conduct a road safety and traffic awareness workshop for delivery partners in Gurugram under the ambit of Delivering Safely, its road safety charter. The programme was conducted in the presence of SH Virendra Vij, IPS Deputy Commissioner of to educate and empower over 100 delivery partners in the NCR regarding road safety and accident prevention practices. Participants also received training on crucial aspects from SH , HPS-ACP Traffic Police and ASI Rajesh on traffic rules, helmet usage, case studies, consequences of reckless driving, and parking etiquette. This was followed by a helmet distribution session and a vibrant roadshow by Swiggy’s delivery partner fleet, to showcase Swiggy's commitment to promoting responsible driving practices. “Road accidents, and resultant fatalities and injuries are a big scourge for India. Every year these cost the Indian economy 4-5 per cent of the GDP. Most of the victims are pedestrians, bicyclists, and motorcyclists, with many of them in their prime working age. Under the charter of Delivering Safely, Swiggy is committed to the welfare of its delivery partners by conducting regular road safety awareness in association with police authorities. We hope to improve traffic sensitisation to delivery partners and to improve their safety,” said a Swiggy spokesperson. Over the years, Swiggy has conducted drives in different cities across India in its commitment to enabling a safe working environment for its delivery fleet. All delivery partners at Swiggy are provided with insurance that protects them on the road. Last year, in an industry-first initiative, Swiggy partnered with Dial 4242 to provide on-demand, free, and fast ambulance services to its delivery partners. Swiggy also has Emergency Support Services (ESS), which encompasses various options to cater to the needs of delivery partners during an emergency or mishap on the road. The ESS includes 24*7 hotline numbers, emergency cards for delivery partners, and a direct link to the local police and ambulance service via an SOS button on the delivery partner app. For Swiggy, the safety and well-being of its delivery partners and the wider community are paramount. All delivery partners go through a road safety guidance module at the time of onboarding. The platform also conducts safety campaigns offering support and guidance throughout the year.
Tiger Logistics to launch price discovery, supply-chain automation platform MUMBAI: International logistics and freight service provider (India) on Thursday said it is set to launch a and platform to ensure efficiency and transparency in the highly-fragmented domestic shipping industry. The full-stack platform will offer cross-border solutions for ocean and air shipments along with first-mile transportation, last-mile delivery and customs clearance, among others, the company said in a release. The company said it plans to incorporate cargo insurance and financing, among other features on the platform, once the pilot phase kicks off, to build a one-stop solution for all shipping requirements. The focus is to build a robust clientele in the Indian market for a seamless and hassle-free customer experience, it said, adding, the proposed digital platform is a disruption to the existing manual norms of operations in the freight industry. The platform, to be rolled out first in the country and then in some developing economies, will enable shipping accessible to more than 63 million MSMEs (Micro, Small and Medium Enterprises) in the country, Tiger Logistics said, citing a report. MSMEs account for as much as 40 per cent in the country's overall exports and 6.11 per cent of the country's manufacturing , besides making up for 24.63 per cent of the GDP from services sector, it said. "Technology is the operating word in the current times. Shipping cannot lag behind, if we have to sustain the business. This new digital segment will help exporters and importers to instantly book their freight, automate their documentation process, keep track of their shipments and manage payments all on a single platform," said Harpreet Singh Malhotra, , Tiger Logistics. The platform will offer real-time rates, complete visibility and access to instant information about shipment updates, he added. "International shipping is highly unorganised, wrought with inefficiencies and is presently going through a massive freight and container crisis. While big shippers have the power to negotiate rates directly with carriers and multinational forwarders, SMEs and MSMEs get left behind in the chase. With our new platform, we hope to change this and democratise access of every business to freight services," said Simar Malhotra, manager, Key Accounts and .
GST Council doubles limit for launching prosecution to Rs 2 cr; defines SUVs for 22 pc cess The on Saturday agreed to decriminalise certain offences and doubled the threshold for launching prosecution under the tax law to Rs 2 crore, but retained the limit at Rs 1 crore for fake invoicing. The Council also clarified on the definition of SUVs (sports vehicles) for the levy of 22 per cent compensation cess over the 28 per cent GST and decided to come out with parameters to define MUVs (multi utility vehicles). Briefing reporters after the 48th GST Council meeting, Finance Minister Nirmala said the Council could decide on only eight out of the 15 agenda items due to paucity of time, but added that no new taxes have been brought in. The agenda items which could not be considered included taxation for pan masala and gutkha firms and a report by a Group of Ministers (GoM) on setting up of appellate tribunals. The report of another GoM, chaired by Meghalaya Chief Minister Conrad Sangma, on GST levy on online gaming, casinos and horse racing was also not part of the agenda for Saturday's meeting. Sitharaman said in case of SUVs, the clarification that has been given is that the higher rate of compensation cess of 22 per cent is applicable to a motor vehicle fulfilling all four conditions -- it is popularly known as SUV; has engine capacity exceeding 1,500cc; length exceeding 4,000 mm; has ground clearance of 170 mm and above. "So this clarification is not new tax, it's more to say what defines that commodity which is under taxation as SUV," the minister said. Sitharaman said the discussion on MUVs began when some states asked whether sedans should be included in the SUV category. The states also suggested bringing in a definition for MUVs. The minister said the Council decided that if any other motor vehicle categories need to be added to the 22 per cent cess, the panel of central and state tax officers (or the Fitment Committee) will look into it. The Centre and states would attempt to widen the GST base at every level to increase the tax mop-up which is averaging about Rs 1.4 lakh crore every month. "So the focus will be on how much all of us are putting effort... to widen the tax base," she said. Currently, 1.40 crore tax payers are registered under GST. Revenue Secretary Sanjay Malhotra said the Council took a "path breaking decision" with regard to decriminalising three types of GST offences -- obstruction or preventing any officer in discharge of his duties; deliberate tampering of material evidence; and failure to information. The minimum threshold of tax amount for launching prosecution under GST has been raised from Rs 1 crore to Rs 2 crore, except for the offence of issuance of invoices without supply of goods or services or both. Also, the compounding amount has been reduced to the range of 25 to 100 per cent, from the present 50 to 150 per cent of the tax amount. Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Johri said
amount has been reduced to the range of 25 to 100 per cent, from the present 50 to 150 per cent of the tax amount. Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Johri said currently under the GST law offences exceeding Rs 1 crore are considered for criminal prosecution. "What was proposed in Council and what came out of the discussion was that the limit would be enhanced from Rs 1 crore to Rs 2 crore now. So cases involving tax amount of up to Rs 2 crore will go out of the purview of criminal action, except cases of fake invoicing," Johri said. He said the current threshold of Rs 1 crore for launching criminal prosecution will continue in fake invoicing cases which continue despite many measures taken by the tax authorities. The Centre in September issued directions to Central GST officers to launch prosecution in offences exceeding Rs 5 crore. That direction was given through a circular, but the GST law currently sets the limit at Rs 1 crore. Malhotra said the amendments in GST law to give effect to the Council's decision on decriminalisation of GST offences would be brought in the Finance Bill, 2023. After that, the state legislatures too would have to pass the amendments and pave the way for making the changes effective. The GST Council also decided to lower tax rates on husk of pulses to nil from 5 per cent. Tax on ethyl alcohol supplied to refineries for blending with motor spirit (petrol) was reduced to 5 per cent, from 18 per cent. These changes in GST rates were aimed at "facilitation of trade and measures for streamlining compliances in GST", as per an official statement. The Council also clarified that Rab (a type of jaggery) and fryums manufactured using the process of extrusion attract 18 per cent GST. It also clarified that no claim bonus offered by the companies is not a part of the taxable value for levy of GST. Also incentive paid to banks by Central Government under the scheme for promotion of RuPay Debit Cards and low value BHIM-UPI transactions are in the nature of subsidy and thus not taxable under the GST, the Council clarified. With regard to e-commerce for micro enterprises, the GST Council decided to allow unregistered suppliers to make intra-state supply of goods through E-Commerce Operators (ECOs) from October 1, 2023. In the last meeting in June, the Council had granted in-principle approval for allowing unregistered suppliers to make intra-state supply of goods through E-Commerce Operators (ECOs) and approved the amendments in the GST Act and Rules. "Considering the time required for development of the requisite functionality on the portal as well as for providing sufficient time for preparedness by the ECOs, Council has recommended that the scheme may be implemented w.e.f. 01.10.2023," the statement said. On refund to persons who are not registered under GST, the Council on Saturday recommended amendment in CGST Rules, 2017, along with issuance of a circular, to prescribe the procedure for filing
On refund to persons who are not registered under GST, the Council on Saturday recommended amendment in CGST Rules, 2017, along with issuance of a circular, to prescribe the procedure for filing application of refund by the unregistered buyers in such cases. KPMG in India Partner, , Abhishek Jain, said this is a major relief for common people as unregistered buyers will be able to claim refund of tax borne in cases where the contracthouse and long-term insurance policy, is cancelled and the time period of issuance of note by the concerned supplier is over. "This change will allow the unregistered buyers to get a refund of the GST where supply has not taken place, and will help avoid unnecessary cost burden," Jain added. Also Read:
Volkswagen offers subscription, leasing option for Virtus, monthly rentals starts at INR 26,987 New Delhi: on Thursday said it has opened a subscription and lease ownership model for its Virtus sedan. Through the subscription model, customers can drive home the Virtus with one month of security deposit and an advance rental payment, with the tenure ranging from 2 to 4 years. This ownership model covers term insurance, scheduled service, and unscheduled repairs ensuring comfort and affordability for customers. “The subscription model allows an easy exit option with no resale risk with options of returning the car post usage or an upgrade at the end of the term. An all-inclusive monthly subscription rental of the Virtus starts from INR 26,987 (ex-showroom Ahmedabad),” Volkswagen said. As a part of Power Lease, the customer can own the Virtus with one month’s security deposit and an advance rental with flexible tenure options ranging from 2 to 4 years having no mileage cap. The additional benefit under Power Lease is the provision of retaining the car post the tenure completion at just 20% of the ex-showroom price. In addition, the customer can purchase a Service Value Pack. The all-inclusive easy monthly Power Lease rentals of the new start from INR 29,991 (ex-showroom Ahmedabad). “With the significant increase in the need for safe and affordable personal mobility options across markets, there is a growing demand for dynamic ownership models. Buyers are looking for alternative ways and flexible solutions that enable them to acquire a vehicle at affordable rates based on their usage,” the company said in a statement. Ashish Gupta, Brand Director, Volkswagen Passenger Cars India, said, “Our Omni-channel mobility solution is available across our product portfolio and we are delighted to add the newly launched Volkswagen Virtus as well. We are confident, the subscription and leasing platform will offer aspirational Indian customers the opportunity to experience our refreshed product portfolio in a hassle-free and new-age ownership experience.”
Hyundai Motor India provides INR 3 cr for cyclone relief works in TN (HMIF), the CSR arm of Ltd., Wednesday offered relief support amounting to INR 3 crore to support communities affected by the Michaung cyclone in . The Company’s onsite teams are working along with state government authorities to deliver emergency relief, including food, water, shelter, medical assistance and other essential commodities to affected communities, the company said. , MD & CEO, Motor India Ltd.,said, “Hyundai Motor India stands in solidarity with people of Tamil Nadu in these testing times. As a reflection of our global vision – Progress for Humanity – we are committed to alleviate the challenges faced by communities during times such as these. We have contributed INR 3 crores towards the relief fund, which will deliver immediate help and bring significant impact to the affected regions & communities. has also set up a dedicated ‘Relief Task Force’ which will work closely with the District Administrations to offer support to the needy. For our beloved customers, we have ramped up our service support to flood affected customers in Tamil Nadu. We have also deployed a dedicated Emergency Roadside Assistance Service Team to support our customers.” HMIF will provide relief kits such as dry rations, tarpaulin, bedsheets and mats. Medical camps will also be set up and HMIF will help clean villages in its efforts to address the after effects. For Hyundai Motor India customers, the company has put-in-place an emergency road assistance team and will offer 50% discount on depreciation amount on insurance claims of cyclone affected vehicles. Also, the company’s service network has been put on a high state of preparedness to attend to an expected higher influx of vehicles, the company said in a media release.
Goldstone Tech JV with Quantron of Germany for fleet management using AI Hyderabad: Limited (GTL) is partnering with AG, a German e-mobility major, to establish a Joint Venture to address the high potential market, valued at around USD 70 billion (INR 5.8 lakh crore) by 2032. The new joint venture company will operate from Augsburg in Germany, and Hyderabad. A plan is underway to set up a US entity by Q3 2023, capitalising on the burgeoning global and , GTL said in a media release. The GTL and Quantron JV is poised to disrupt fleet management with its AI-supported solutions for sustainable integrated operations, catering to the demand in Europe, the USA, India, and the Middle East. By focusing on , the JV aims to offer OEM-agnostic Mobility as a Service (MaaS) solutions, addressing efficiency and digitalization challenges. The JV's transaction platform will provide diverse digital solutions to fulfil the needs of zero-emission fleets, the release said. .Michael Perschke, Member of the Board & Chief Executive Officer of Quantron AG said, “We are looking forward to this partnership with GTL in a bid to address the fleet management market which is projected to exceed USD 70 billion by 2032, combined with the Hydrogen economy market that anticipates over USD 320 billion in global investments by 2030. The Indian ecosystem also presents a huge opportunity in this area, which would provide us the necessary expertise to make inroads into the global marketplace.” The key differentiator would be one integrated platform across 5 Digital Pillars, namely Fleet Management, Insurance-as-a-service, Hydrogen Economy, Greenhouse Gas Accounting and Data Insights. Having already onboarded Quantron and ETO Motors as clients, GTL will provide the software expertise and oversee platform integration, while Quantron will utilize the digital platform in its 360° ecosystem. The software features a Fleet Overview Dashboard, Driver Management, Trips Information, Geofencing, Charging or Refuelling Infrastructure Administration, Smart Navigator, Carbon Credits Tracking, Roadside Assistance, Reports Module, and Driver Mobile App, the release said. “This Digital Platform is Partner Agnostic, Modular and OEM Independent. Data Insight, a crucial pillar, is estimated to reach a global market value of USD 71 billion (INR 5.9 lakh crore) by 2032. Our contribution to this partnership will be to help customers drive impactful change through data-backed analytics to enhance their business through BI and Analytics Full Stack capabilities and Service Offerings,” Pavan Chavali, Managing Director, Goldstone Technologies Limited, said. By catering to the demand in key global markets, the company is driving the transition towards sustainable transport and offering versatile OEM-agnostic Mobility as a Service (MaaS) solutions. With GTL's software expertise and Quantron's comprehensive ecosystem, the digital platform delivers a wide range of features and modules to fulfil the diverse needs of
as a Service (MaaS) solutions. With GTL's software expertise and Quantron's comprehensive ecosystem, the digital platform delivers a wide range of features and modules to fulfil the diverse needs of zero-emission fleets. As investments in sectors like fleet management, hydrogen economy and data insights continue to grow, the JV is strategically positioned to capitalize on these emerging opportunities and bring significant industry advancements, the release added.
GST prosecution threshold up; some offences decriminalised The Goods and Services Tax ( ) Council decided to decriminalise some violations and doubled the monetary threshold for launching prosecutions to ₹2 crore to prevent taxpayer harassment and improve . The 48th meeting, held virtually on Saturday after a gap of six months, deferred a decision on imposing the levy on online gaming, horse racing and casinos as well as the setting up of appellate tribunals. The council decided that GST will not be levied on no-claim bonuses and approved a concessional rate of 5% on ethanol used for blending with petrol, against 18% earlier. The council did not take up the proposal for a mechanism to curb tax evasion by pan masala and gutkha businesses. Finance minister Nirmala said the council could decide on only eight of 15 agenda items due to paucity of time. "Pending items will be taken up at the next GST Council meeting," Sitharaman said, adding that this will be an in-person one. "We are trying to take up the GST tribunal issue at the earliest possible." The council did not consider demands to reduce the GST rate on a host of items, including precious metals and components of battery energy storage systems. No Tax Hike in Meeting, Says FM "In this GST Council meeting, there has not been any tax increase on any item," Sitharaman told reporters after the meeting. "Everything that has been done is to issue clarifications where ambiguity of interpretation prevails." The council also allowed a refund of GST paid to unregistered buyers in the event of cancellation of services, when the cancellation takes place after the period specified in law for the issuance of credit notes. "This proposal is likely to provide relief to businesses though its implementation would likely take one, one-and-a-half years, as it would require amendment in state legislatures as well," said Saurabh Agarwal, partner, , EY. The council clarified the GST rate for SUVs with an engine capacity exceeding 1,500 cc and length exceeding 4,000 mm with a ground clearance of 170 mm or above. They will attract a 22% compensation cess. It also clarified that incentives paid by the government to banks under the scheme for the promotion of RuPay Debit Cards and low-value BHIM-UPI transactions are in the nature of subsidy, and GST will not be levied on them. Experts welcomed the move to decriminalise some offences, adding that the threshold could be higher. "While the increase in prosecution threshold was expected, it is necessary to gradually increase it further so only very serious, high-value cases are subjected to the rigours of prosecution," said MS Mani, partner, Deloitte India. Online Gaming Revenue secretary Sanjay Malhotra said GST on online gaming and casinos was not discussed as the Group of Ministers (GoM) on the issue submitted its report only a few days ago, and it had not been circulated yet to the rest of the council. In its report, the GoM suggested 28% GST on the full value of the
Ministers (GoM) on the issue submitted its report only a few days ago, and it had not been circulated yet to the rest of the council. In its report, the GoM suggested 28% GST on the full value of the consideration, including the contest entry fee, paid by players without making a distinction between games of skill and games of chance. However, at the insistence of several members, the GoM was asked to reconsider some of the provisions. Despite deliberation, there was no consensus on the matter and the GoM has left it to the council to decide. The GST Council has also proposed that mobile numbers and email addresses linked to the income tax permanent account number (PAN) be used along with biometric authentication for GST . It has also mooted a pilot for biometric-based Aadhaar authentication and risk-based physical verification of registration applicants in Gujarat to curb fraudulent signups. The council granted in-principle approval for amendments in the GST law to allow unregistered suppliers and composition taxpayers to undertake the intra-state supply of goods through operators. The change is likely to be implemented from October 2023. Details will be notified. Also Read:
Synetiq, Allye to turn salvaged EV batteries into energy storage , the UK's largest vehicle salvage company has partnered with Energy to provide salvaged electric vehicle battery packs for the startup to use for energy storage systems, the two companies said on Monday. Allye will test and buy EV packs from Synetiq, a unit of IAA and part of Canada's , to use in its 300 kilowatt hour (kWh) battery storage system - each one uses four salvaged EV battery packs - which is enough to power a factory or 50 homes for a day. Allye will lease those packs to customers. "At the moment, these battery packs are sat around in containers, unloved and unwanted," Allye CEO Jonathan Carrier told Reuters. "We're trying to change that." Lacking access to data to assess EV battery pack damage after accidents, insurers have been forced to write off low-mileage electric cars. As the EV battery recycling industry is in its infancy outside China, salvage companies such as Synetiq have had to house a growing number of salvaged EV battery packs in containers. In 2022 there were an estimated 40,000 nearly new battery packs from salvaged EVs. That number will grow as EV sales rise. Reusing entire EV battery packs "will address a key challenge in our industry," Synetiq CEO said in a statement. Using existing battery packs cuts CO2 emissions for the storage systems by 60% versus new ones and can cut customers' energy bills 50% by taking energy from the grid during off-peak hours for use during peak demand, Allye's Carrier said. As it ramps up, Allye hopes to use 5,000 packs a year in the UK and to expand to other markets, he added. So far, Allye has raised a little under a million pounds (USD 1.3 million) and is seeking additional funds. (USD 1 = 0.7873 pounds)
FMCG companies eye e-vehicles for last-mile distribution As last-mile distribution adds to greenhouse gas emissions, some fast-moving consumer goods (FMCG) companies are chalking out plans to replace their existing fleets with (EVs). Most firms are in early stages of such plans. But Dabur India has decided that in five years, EVs would account for 80-90% of its total last-mile distribution fleet across India. Dabur India currently has around 800 vehicles. The plan, which is part of the company’s long-term vision to become a carbon-neutral enterprise by 2050, is to induct 100 EVs in the first year and keep adding 100 every year to replace the existing fossil fuel-driven vehicles. In four years, only EVs will be used on all routes that have the requisite infrastructure like charging stations, said Dabur India CEO Mohit Malhotra. “The initial cost of acquiring an is 10-20% more than a same-capacity normal diesel-run goods vehicle. However, the lower running cost makes up for this difference over a period of time. The benefits will be in terms of lower carbon emissions — both scope-2 and -3 emissions. We will be covering around 20 cities with EVs in the first phase,” said Malhotra. The cities that Dabur plans to cover in the first phase include Delhi-NCR, Mumbai, Pune, Ahmedabad, Kolkata, Chennai, Bengaluru, Hyderabad, Varanasi, Sonipat and Chandigarh. A spokesperson of Hindustan Unilever (HUL), which has around 4,500 distributors and about 1,500 suppliers, said, “EVs are bringing in interesting propositions for both order capture as well as order fulfilment. In order capture, we are looking at evaluating ownership options for our market executives/salesmen who make use of two-wheelers to work the markets across the country. Similarly, our distributors are also evaluating the feasibility of using e-delivery vehicles which can carry a minimum payload of one tonne.” The spokesperson added HUL believes that, over a period of time, thousands of EVs could get deployed as part of the company’s distribution infrastructure, on the basis of commercial and capacity viability. Marico’s COO (India business) & CEO (new business) Sanjay Mishra said the company has been exploring avenues for the use of EVs for transportation, which has been gaining popularity recently. “We are working with our logistics partners to evaluate employing EVs as an option, considering the sustainable impact as well as commercial viability during our evaluation. This will align with our ESG (environmental, social, and governance.) framework and goals, thereby stimulating demand for responsible production and consumption practices,” said Mishra. A Nestle India spokesperson said, while the company hasn’t started using EVs in its logistics as of now, it is exploring such options for the future as part of its endeavour towards sustainability across operations. An expert on sustainability said last-mile distribution through EVs by FMCG companies will contribute significantly to reduction in
as part of its endeavour towards sustainability across operations. An expert on sustainability said last-mile distribution through EVs by FMCG companies will contribute significantly to reduction in air pollution as also greenhouse gas emissions. “This is a pragmatic step given the limitations of EVs in managing long distance and heavy transportation. Similar attempts are being made in mining sites in India to use electrical earth-moving and transportation options. However, companies should ensure that electricity to charge is also renewable,” the official said. There are reportedly around 12 million retail distribution outlets in the country. With the FMCG sector expected to grow at 10-12% annually, distribution too would grow to account for greater emissions. An analysis by Crisil states that EVs present an opportunity of almost Rs 3 lakh crore for various stakeholders in India in the five years through FY26. The opportunity includes potential revenue of about Rs 1.5 lakh crore across vehicle segments for original equipment manufacturers as well as component manufacturers and approximately Rs 90,000 crore in the form of disbursements for vehicle financiers. Shared mobility and insurance account for the balance. Crisil director Hemal Thakkar said, “Considering the improving cost parity and the government’s focus on electrification of vehicles, we should not be surprised if EV penetration reaches 15% in two-wheelers, 25-30% in three-wheelers, and 5% in cars & buses by FY26 in terms of vehicle sales.”
Tesla trumps BYD in China sales efficiency with real-time strategy 's strategy in China of real-time, aggressive management of its sales staff is giving its stores an edge over dealerships offering and other brands in the world's largest auto market, according to three people with knowledge of the matter. The U.S. company in the fourth quarter lost its crown as the world's biggest electric vehicle seller to China's BYD , but during the first 10 months of 2023 both companies grew their share of a slowing and highly competitive . Tesla sold more than 1,500 EVs in each of its Chinese stores on average in the first 10 months of 2023, up from 1,300 in 2022, data from China Merchants Bank International (CMBI) showed. BYD in comparison sold under 600 cars per store in the same 2023 period including plug-in hybrids, similar to its 2022 performance, although overall it sold far more EVs than Tesla given its best-selling models cost half as much and it has 11 times as many local distributors. "Tesla may have more throughput per store, but their growth is limited, especially when compared with BYD," said Bill Russo, CEO of Shanghai-based advisory firm Automobility. Tesla's China EV market share grew to 12% in the first 10 months of 2023, up from 10% in 2022, while BYD's share rose to 27% from 21% over the same period as its lower-end rivals stumbled, according to data from Automobility and the China Passenger Car Association. Tesla's solid sales performance in China, its second-biggest market, provides a rare bright spot for the EV maker, which has warned of the impact of high interest rates on car buyers in other key markets like the U.S. and slowed plans to construct a factory in Mexico. The automaker, which pioneered a direct sales model worldwide, monitors its 2,800 sales staff across its 314 stores in China on an hourly basis, assessing how effective and efficient they are in persuading potential consumers to visit stores, arrange test drives and place orders, the three people said. They declined to be identified because such information about its China sales strategy, which has not been previously reported, is deemed confidential. Tesla did not respond to a request for comment. The people said this real-time collection of data informs the company's pricing strategy, which allows it to influence demand for some model versions and resulted in seven price hikes and three cuts in China last year. The company can then make cost-effective production plans based on raw material prices and supplies. It manages its staff similarly to Chinese food delivery giant Meituan, which measures delivery times by the minute and second, one of the people said. Tesla salespeople seen to have failed to be active enough have been let go the same day, the person added. The company incentivises its staff by offering a base salary higher than EV rivals and allowing the best performers to earn up to 30,000 yuan (USD 4,203.56) a month including bonuses, drawing workers from
incentivises its staff by offering a base salary higher than EV rivals and allowing the best performers to earn up to 30,000 yuan (USD 4,203.56) a month including bonuses, drawing workers from industries such as English tutoring and insurance known for aggressive sales tactics, the people said. OTHER SALES MODELS BYD takes a more conventional approach to dealerships with its 3,400 stores and sells plug-in hybrids alongside battery EVs. It promised dealers up to 2 billion yuan (USD 279.52 million) in rewards to reach a 3 million unit global sales target in 2023. BYD did not respond to a request to provide further details. Yale Zhang, managing director at Shanghai-based consultancy Automotive Foresight, said Tesla's success with its cost-effective and efficient direct sales model was not easily copied given its leadership in products, technology and reputation. The U.S. automaker's smaller EV rival Xpeng has been rejigging its sales strategy after initially following Tesla into launching direct sales networks. But as Tesla's model lineup ages, it remains unclear whether it will be able to sustain its selling efficiency, especially as it enters lower-tier cities and towns where Chinese brands have a bigger presence with dealers, Zhang said. In 2022, Tesla closed a Beijing store that had been its flagship showroom in China. It also shut four stores in Guangzhou in the final quarter of 2023. It has been expanding in second-tier cities like Chengdu and Tianjin, where per-store vehicle sales average 163 per month, according to CMBI, higher than that in first-tier and third-tier cities. Tesla opened about 30 new stores in second-tier cities in 2023, a nearly 20% increase. STIFFENING COMPETITION While Tesla has pulled ahead of rivals in sales efficiency, analysts have cautioned it faces growing headwinds amid stiffening competition. "Boasting about efficiency is a way of building up a smokescreen to explain away the fact that they're not growing at the rate of some of their competitors," Automobility's Russo said. Any attempt by Tesla to catch up with BYD in overall sales will be affected by production capacity constraints at its Shanghai factory, its biggest globally that is capable of making 1.1 million cars a year. Tesla has signalled it wants to expand the plant but the plan still hinges on approvals from Chinese regulators reluctant to add new EV production facilities amid a capacity glut. The company plans to expand its Berlin factory and build a new plant in Mexico. But BYD has been far more aggressive, having built EV factories in nine cities in China with an annual capacity of more than 4 million units and adding plants overseas. Tesla's global capacity was 2 million vehicles a year, its global production chief Tom Zhu said last March. CMBI analysts predict the growing gap with BYD could force Tesla to further focus on margin improvement in 2024, with price hikes on revamped models and additional expansion into lower-tier Chinese cities, even as
predict the growing gap with BYD could force Tesla to further focus on margin improvement in 2024, with price hikes on revamped models and additional expansion into lower-tier Chinese cities, even as its rivals scramble to price their new EVs lower.
Insurance rates hike will hit two-wheeler industry: TVS Motor CEO CHENNAI: The recently announced hike in for motorcycles will pinch pockets and hit the , said K N Radhakrishnan, director and CEO, . He said the new rates, effective from June 1, 2022, would be yet another headwind the sector had to face. “The automobile industry has been impacted by a series of headwinds, leading to a steady increase in two-wheeler prices," he said. "In addition to the pandemic woes, the ongoing shortage of semi-conductor chip, high raw material cost and increasing fuel prices have impacted demand. As the customer continues to struggle with an increase in the cost of ownership, the recently announced hike of Rs 2,200 per vehicle in third party insurance cost will further dent the efforts of the industry to recover itself from this challenging market situation," added Radhakrishnan.
Stellantis taps Indian talents to be a sustainable mobility tech company: Billy Hayes Q: How crucial is it for the to succeed in the Indian market? We have no doubt that it will succeed. We've got a lot of firsts in the segment here. It is the first vehicle with a standard turbo engine, the first vehicle with a roof-mounted, tropicalised AC and the like. Q: Building brand acceptance is a challenging task in a market like India. How do you do this? We've made a very seamless, easy purchase experience for consumers as we grow our dealer network. The purchase experience is fully digitised. Customers can configure the vehicle in a really immersive 3D configurator. They can accessorise the vehicle, get price quotes, and arrange insurance. If you have a trade-in, there's a trade-in facilitator. You can basically do everything without actually visiting a dealer. We've learned from the C3 hatchback that about two-thirds of our customers are first-time (car) buyers, which is actually amazing because we are a new brand. Q: What is the contribution of the Asia-Pacific region to ’ overall annual sales? Our region makes up about 20% of the new car market across the world. We're about 2% of Stellantis' sales in the region. So, we have a huge upside not only here in India, but across the region. Here in India we have done a lot of localisation. We plan to do that throughout this region. Q: Beyond sales, you have the component and powertrain manufacturing operations, and also your technical centres, including the software technology development centre. How do they fit into the scheme of things of Stellantis, which is aiming to be a ‘sustainable mobility tech company’? Shortly after we became Stellantis in January of 2021, we released our 2030 plan very transparently, and we committed to spending EUR 30 billion in R&D in software, technology, and connectivity. It's not just about CAFE compliance or CO2 compliance market by market. But we feel that in Stellantis it is also our obligation to the planet. It really starts with our investment, and you can see it with our C-cubed platform. But after this, we've got four dedicated platforms for Stellantis: STLA Small, STLA Mid, STLA Large, and STLA Frame, to be shared across the brands. They're powertrain-agnostic. So whether you've got a BEV or a plug-in hybrid or a petrol engine, they're powertrain agnostic. So we've got a lot of flexibility in the models based on them, which will also be introduced in India. Then there's STLA AutoDrive, which is really key here in integrating AI into the experience, into our ADAS technologies, which are becoming more and more sought-after in the markets. Q: Some of the models on these platforms would head to India too? Absolutely. As we get ramped up with our common platforms across Stellantis, we plan to release vehicles on these platforms in India. And it's not just the platforms or powertrains, nor the battery architectures. There's a technology that goes behind it. A lot of this
we plan to release vehicles on these platforms in India. And it's not just the platforms or powertrains, nor the battery architectures. There's a technology that goes behind it. A lot of this technology is being developed right here in India by some of the finest IT talents in India. We've got some things driving the vehicle like STLA Smart Cockpit, which is the immersive experience for the driver and passengers in the car. There's STLA Brain, which is what drives the car, the brains inside the car. Basically the cars are evolving. It is not just a car anymore. And then there's STLA Auto Drive, which is the key here in integrating AI into the experience, into our ADAS technologies, which are becoming more and more wanted in the markets. Q: Is not India the global tech development centre, especially for AI and ADAS, for Stellantis? Yes, it totally is. We're targeting about EUR 3 billion of additional revenue from connected vehicles just in services, value-added services that the customers value enough to pay for. We're transforming from a legacy car maker into a sustainable mobility tech company. We're working towards scaling up the engineering centres here. Q: Stellantis started operations at the Bangalore software development centre last month, right? Yes, and we also have an IT tech centre in Hyderabad, and we have two R&D centres, in Chennai and in Pune. They're ramping up. Right now, we have about 3500 employees here in India. There's a multiplier effect when you talk about our suppliers. And we're not just working on technology for India or the India and Asia Pacific region. We're doing validation testing, for example, on products across the world, even products that are only sold in the United States. Q: Stellantis has the Jeep and Citroën brands in India. D o you see the possibility of adding one or two more brands? Yeah. It's always part of the conversation, right? It's always that you know, 'what about bringing Fiat back?' 'What about Alfa Romeo?' So it's always something that we’re concurrently looking at in terms of brands, but I'll tell you right now, Jeep and are brands here. We're looking to grow in these brands. We're looking to make these brands stronger in the market. Q: So, no leaving India for any of the brands? No way. We've got so much invested, and so much in the future to invest too. We've got quite a footprint here and we're here to stay. I mean, you're stuck with us. Q: Any further investments on the horizon for Stellantis in India? We will continue to invest in product and product improvements across our lineup here. We talked about the global investment of EUR 30 billion by 2025. So, expansion of our lineups, continuing to improve the products that we have in our lineups. We can’t sit still, especially here in India.
Recent IRDAI proposals to make motor insurance coverage easier The Regulatory and Development Authority of India ( ) has proposed to allow general insurers to offer long-term . Vehicle owners will now have a wider choice, as they can opt for a 3-year insurance policy for private cars and a 5-year insurance policy for two wheelers, both co-terminus with . This comes nearly 3 years after a mandate to allow third party coverage of 5 years for two wheelers and 3 years for cars was withdrawn in August 2020 due to concerns over its implementation. Currently, new cars can get Third Party cover for 3 years, while two wheelers can get Third Party cover for 5 years. However, Own Damage Cover for both cars and two wheelers is available for one year. The liberty to withdraw the long-term cover from one company and switch to another also comes as a friendly move for customers. In another major relief to two wheeler and four wheeler customers, the third party premiums will not be hiked from this April. ET sources have reported that the rates which are revised every year in the month of April, will not be revised for the time being. The has sent proposals to regulator IRDAI for upward division of and the regulator has begun actuarial calculations to arrive at the new third party insurance rates, it added. According to industry expectations, for the next three months till June, the third party insurance will not be revised and new rates will be effective for July onwards. The rates were not revised in 2020 and 2021, pertaining to Covid-19 pandemic at the time. However, the third party motor insurance was increased by 15-25 per cent during revision in 2022. it was also reported in February 2023, that uninsured vehicles travelling on highways are set to be offered on-the-spot insurance cover, with the government discussing a plan that includes deducting the premium from the owner’s Fastag account, Mint reported. The new approach to motor insurance has been brought about by an alarming rise in uninsured vehicles on the road, estimated to be as much as 40-50% of all vehicles in India.
EV startup Vidyut raises USD 10 mn , a full-stack , has raised USD 10 million in a mix of equity and debt in a Series A round. The round was led by 3one4 Capital, and saw participation from Saison Capital, Zephyr Peacock, Force Ventures, venture debt fund Alteria Capital and Udaan CEO Sujeet Kumar. The startup aims at facilitating easier for small and large businesses by offering solutions such as , lifecycle management and . The company's proprietary asset-underwriting algorithm and battery health analysis have helped it offer financing through a battery subscription financing model. Its clients include Mahindra, Piaggio, Altigreen, Murugappa Group’s Montra Electric, and others. "Our focus is not just on financing but on elevating the entire EV ownership journey for India’s SMBs," Gaurav Srivastava, co-founder of Vidyut, said. The startup will utilize the new funds to scale its offerings to the EV ecosystem. It is looking to expand its presence to 40 cities and double team size by the end of fiscal year 2025. “Electric vehicles pose new underwriting and product structuring challenges to financiers. EVs also meaningfully expand the role of data in the lifecycle of a financing journey and make new lending models possible. Vidyut's model removes barriers, especially in the large but price sensitive driver cum owner segment," Sonal Saldanha, vice-president, Investments, 3one4 Capital.
Oil prices rise on supply woes SINGAPORE - Oil prices rose in early Asian trade on Wednesday, paring losses from the previous session, as concern over tight supplies following reports of lower inventories in the United States offset fears of lower demand from top oil importer China. futures rose 73 cents, or 0.8%, to $90.76 a barrel by 0100 GMT. was at $83.95 a barrel, up $1.13, or 1.4%. WTI's front-month contract expires on Thursday. Brent and WTI touched two-week lows and tumbled 1.7% and 3.1%, respectively, in the previous session on reports of U.S. President Joe Biden's plans to release more barrels from the (SPR) and worries about weaker Chinese fuel demand. U.S. crude oil stocks fell by about 1.3 million barrels for the week ended Oct. 14, according to market sources citing American Petroleum Institute figures on Tuesday. U.S. crude inventories were expected to have increased for a second consecutive week, rising by 1.4 million barrels in the week to Oct. 14, an extended Reuters poll showed on Tuesday. Inventory data from the Energy Information Administration, the statistical arm of the U.S. Department of Energy, is due at 10:30 a.m. (1430 GMT) on Wednesday. Oil prices were also buoyed by better risk sentiment which was lifted by upbeat U.S. corporate earnings and a pause in the surge in bond yields, CMC Markets analyst Tina Teng said. "Hence, the recession fear-led selloff in the oil markets eased," Teng added. Earlier in October, + - which comprises the Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia - agreed on a steep oil production cut of 2 million barrels per day. Following White House accusations that Saudi Arabia coerced some nations into supporting the move, OPEC's secretary-general said on Tuesday that the decision from the oil producers group was unanimous. The OPEC+ production cut, which comes ahead of a European Union embargo on Russian oil, will squeeze supply in an already tight market. The European Union's sanctions on Russian crude and oil products will take effect in December and February, respectively. "We expect Russian production to decline by 0.6 million barrels per day by year-end (in addition to the 400,000 barrels per day drop since February), as Europe implements both its embargo on Russian oil purchases as well as a ban on crucial services like shipping, insurance and financing," JP Morgan analysts said in a note. To plug the gap, the Biden administration is planning to release more oil from the SPR to dampen fuel prices before next month's congressional elections. In December, the administration plans to sell 15 million barrels of oil from its reserves, the remainder of the 180 million barrels release announced earlier this year, a senior U.S. official said. "The price at the pump is an important weekly reminder for the consumer and energy traders should not be surprised if Biden continues to be aggressive in tapping the SPR," ANZ Research analysts said in a note. In
the pump is an important weekly reminder for the consumer and energy traders should not be surprised if Biden continues to be aggressive in tapping the SPR," ANZ Research analysts said in a note. In Europe, EU's emergency oil stocks, including crude oil and petroleum products, recovered slightly in July after two coordinated releases drained the levels to a record low in June, but were still 3.7% lower than in July 2021, the bloc's statistic office said on Tuesday. Oil price gains were capped by fears of weaker fuel demand from China as it persists with its stringent zero-COVID policy.
Indian exports may take a USD 30 bn hit on Red Sea threats India may see around USD 30 billion shaved off its total exports in the current fiscal year, as threats to cargo vessels in the lead to a surge in container shipping rates and prompt exporters to hold back on shipments. The initial assessment, conducted by the Research and Information System for Developing Countries, a New Delhi-based thinktank, would mean a 6.7% drop in , based on last fiscal year’s USD 451 billion total. “The crisis in the Red Sea would indeed impact India’s trade and may lead to further contraction,” said Sachin Chaturvedi, the director general of the thinktank. The government hasn’t released any official estimates on the impact of the Red Sea crisis on Indian exports. The number of ships passing through the Suez Canal is down about 44% compared to the average for the first half of December, according to Clarkson Research Services Ltd, a unit of the world’s largest ship broker. Vessels with a combined tonnage of about 2.5 million gross tons passed through in the week to Jan. 3, compared with about 4m tons at the start of last month, they said. Yemen’s Iran-backed Houthi militants have targeted vessels transiting through the Red Sea with missiles in recent weeks. The Houthis say they are going after any vessels that have a connection with Israel. For India, the Red Sea is a major route for shipping to Europe, the US East Coast, the Middle East and African countries. Prime Minister Narendra Modi’s government is in discussions with export promotion councils to find ways to protect trade transiting through the route, according to two officials familiar with the matter. Last week, India sent a warship to the Arabian Sea where a Liberian-flagged vessel said it was hijacked near Somalia’s coast. The Indian Navy said it “successfully rescued” the ship. The threats have pushed Indian exporters to hold back around 25% of the outbound shipments transiting through the Red Sea, according to Ajay Sahai, director general of the Federation of Indian Export Organizations, which falls under India’s trade ministry. “In many cases, both buyers and exporters are also renegotiating contracts to adjust to surging freight charges,” he said. The spot rate for shipping goods in a 40-foot container from Asia to northern Europe now tops USD 4,000, a 173% jump from just before the diversions started in mid-December, Freightos.com, a cargo booking and payment platform, said Wednesday. Rates from Asia to North America’s East Coast have risen 55% to USD 3,900 for a 40-foot container. India usually exports a variety of goods including petroleum products, cereals, and chemicals using the . Exports in the current fiscal year are already flagging with a 6.5% contraction in the April to November period from a year ago, according to government data. The Red Sea disruption could hit margins for India’s oil and auto sectors, Madhavi Arora, a lead economist with Emkay Global Financial Services Ltd, wrote in a
year ago, according to government data. The Red Sea disruption could hit margins for India’s oil and auto sectors, Madhavi Arora, a lead economist with Emkay Global Financial Services Ltd, wrote in a note published Dec. 22. But the bigger concern could be inflation, which has been above the central bank’s comfort zone of 4% since the end of 2019. “Higher global freight and insurance rates, possible upside risk to oil and global trade and re-emergence of potential supply chain would mean cost push inflation pressures,” she said.
No GST cut seen on cement, Li-ion cells New Delhi: The is expected to take up the issue of appointing members to the proposed tribunals, but is likely to leave levies on cement, health insurance premium of seniors and unchanged. The council will meet on Saturday. One of the issues that is expected to see lower rates is millet mix, a move being pushed by Karnataka to ensure that consumers and farmers get a better deal, sources familiar with the deliberations said. There is likely to be discussion around GST on corporate and as well, given that there is a large implication on companies, with the council expected to prescribe the levy on a certain percentage of the guarantee, so that the corporate sector is not unduly burdened. While the agenda is not fully firmed up, the government is not keen on lowering the GST on cement from 28% to 18% as was demanded by the industry, given the massive revenue loss as also feedback indicating that the sector may pocket the benefit and not pass it on full to consumers, officials told TOI. Earlier this year, finance minister had said that the government will consider the demand, amid a pitch by industry to lower the levy so that construction cost could go down. In the case of lithium-ion batteries, officials are of the view that a change in rates will have wider ramifications, given that it is used across sectors and is not limited to electric vehicles, which are being projected as the sole beneficiaries. Further, they said that a discount on health insurance policies just for senior citizens may not be a good idea as it will create carve outs, which may be tough to administer. These issues are expected to be taken up as part of a larger review after the 2024 general elections. Sources said on the agenda for the meeting are issues related to appointment of members of GST Appellate Tribunal. Some of the terms of appointment are expected to be relaxed, an official said, without providing further details. The meeting of the GST Council, headed by Union finance minister and with all states as members, is also expected to provide a platform to assess the implementation of the tax on online gaming, casinos and horse racing from this month as states and the Centre needed to amend the laws.
India's FDI to GDP ratio eased to 2.7% in fiscal 2022 India's foreign direct investment to gross domestic product ratio eased to 2.7% in fiscal year ending March. 31, 2022 from 3.1% in the previous financial year, according to government data. The to GDP ratio, which is a metric that compares a country's fund inflows as compared to its gross domestic product, was at 2.3% in fiscal 2018, Minister of Commerce and Industry informed the Lok Sabha, citing government data. The government does not fix targets for FDI inflows as it is largely a matter of commercial business decisions, Parkash said in reply to a question about whether it is true that the central government has not achieved its foreign direct investments target. "FDI inflows into a country depends on a host of factors such as availability of natural resources, market size, infrastructure, political and general investment climate as well as the macro-economic stability and investment decision of foreign investors," he said. The government has in recent years implemented investor-friendly policy, wherein most sectors, except certain strategically important sectors, were opened for 100% FDI under the automatic route. "Changes are made in the policy after having consultations with stakeholders including apex industry chambers, associations, representatives of industries/groups and other organizations. In the recent past, reforms in the FDI policy have been undertaken in sectors such as Insurance, Petroleum & Natural Gas and Telecom," the minister said.
TPG backed, premium car retailer Landmark Cars to file for an IPO of Rs 800 crore Automobile dealership chain Landmark Cars Ltd. plans to file a draft red herring prospectus in the coming weeks to raise over INR 800 crore through an initial public offering, said people aware of the company’s plan. Axis Capital and ICICI Securities have been appointed as the lead managers for the proposed issue, they said. TPG-backed Landmark Cars is India's biggest seller of premium vehicles of automakers , , and . It may be amongst the first automotive dealership companies in India to float an . It is also the first automotive dealership company to receive private equity investment. Globally, there are multiple large auto retail chains which are listed. India is likely to see a similar trend, say experts. The IPO will offer TPG a chance to sell a part of its stake in the company, said the people cited earlier. The proceeds from the IPO may be used for expansion, they said. An email sent to Landmark Cars did not elicit any response till as of press time. TPG had invested around INR 140 crore in the automobile dealership chain in FY15. Since it came on board, Landmark Cars’ business has more than doubled—from retailing about 10,000 vehicles through 41 outlets at the end of FY15, sales grew to 20000 to 25000 cars at the end of FY20, giving an annual turnover of INR 2,500-3,000 crore. Apart from being the biggest seller of Mercedes Benz, Volkswagen, Honda and Jeep vehicles in the country, it is also the third biggest retailer of Renault cars in India. The company operates more than 110 outlets across eight states. It is in the business of sale of new vehicles (passenger as well as commercial), after-sales service, and sales of pre-owned passenger vehicles. It also facilitates sale of third-party financial products, including insurance policies and vehicle finance. “It is a debt-free company and it believes in having an asset light model to run its operation, which was the key reason why TPG decided to invest in the company,” said one of the persons cited earlier. “Landmark also separated management from ownership. It is considered as one of the most professionally run automotive retail businesses, unlike family-run businesses in India.” The company recently entered into a partnership with global EV giant BYD to sell its electric vehicles in Mumbai and the NCR, which is seen giving the company the early mover advantage in the emerging electric vehicle space. With India upgrading to bigger cars and premium SUVs, Landmark’s portfolio of premium brands offers a prospective investor a chance to dip into this pie. In India, the market for premium and luxury cars is expected to grow by 10-15% in the next five to seven years. Landmark Cars is led by Sanjay Thakker, who started the operations and opened the first dealership for Honda cars in India in 1998. Another person aware of the company’s plan said, “Besides being an automotive dealer, it has also made forays into

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