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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 auto-technology platforms through investments in Pitstop, a multi-brand car service and repair provider and Sheerdrive, an online platform for used cars. The company also has an omnichannel approach with their e-commerce platform and digital initiatives.” Landmark Cars has a sister company, called Policy Boss, which is among the biggest auto insurance broking firms in the country–selling close to 6-7 lakh insurance policies a year. With a negative compounded annual growth rate in the last five year, the Indian passenger vehicle market is poised for a strong bounce back, driven primarily by increasing need for personal mobility. The rising aspirations of customers, growing disposable income, lowering replacement cycles and increasing financial penetration will further drive the premiumisation story in the country. There are very few automotive chains that have a presence across eight states and over 100 outlets catering to both new and pre-owned vehicle segments. Also Read:
Mahindra expands E3W lineup, launches e-Alfa Super priced at INR 1.61 lakh New Delhi: Last Mile Mobility (LMM), a prominent player in India's electric 3-wheeler sector, launched the new Mahindra e-Alfa Super on Wednesday, expanding its existing electric 3-wheeler offerings. Priced at INR 1.61 lakh (ex-showroom), its market availability is contingent on local government approvals for e-rickshaws in specific states, the company said. The e-Alfa Super is designed to cater to driver partners seeking self-employment, featuring an extended single-charge range exceeding 95 km. This enhancement in range is realized through meticulous testing and is underpinned by a 140 Ah lead-acid battery, boasting a 20% increase compared to prior models, the company said. The e-Alfa Super is equipped with a motor capable of producing a peak power of 1.64 kW and a torque of 22 Nm, delivering commendable performance standards. Its durable design, forged from the experience gained from over 50000 e-Alfa customers, ensures robustness and longevity for daily operations. Mahindra reinforces this commitment to durability by offering a complimentary accidental insurance valued at INR 10 Lakh for drivers, bolstering safety measures. Suman Mishra, CEO of Mahindra Last Mile Mobility, highlighted the vehicle's role in meeting the demand for environmentally friendly transportation solutions. The e-Alfa Super facilitates extended range and income potential for driver partners, championing entrepreneurship while maintaining the brand's esteemed reputation. The e-Alfa Super's efficiency is further accentuated by its advanced 18 A charger, backed by a 12-month warranty, optimizing charging speed and minimizing operational downtime. Furthermore, Mahindra's collaboration with charging partners grants access to a comprehensive network of over 10000 charging stations nationwide, further supporting driver convenience. Underpinning Mahindra's emphasis on customer satisfaction, the e-Alfa Super carries a one-year vehicle warranty along with an extended 18-month battery warranty, ensuring long-term reliability. Mahindra's extensive service network comprising more than 1150 touchpoints across India is geared towards delivering comprehensive support to vehicle owners. Safety features are a hallmark of the e-Alfa Super, including an advanced braking system and roof-mounted grab handles, providing best-in-class protection, the company said.
Guilty as not charged: How infra for EVs is running out of current New Delhi : At a time when New Delhi Municipal Council is planning to set up electric vehicle charging stations at 350 new locations, the operation and maintenance of the existing 100 stations have already become a challenge for the civic body. At least 39 of the 100 charging stations installed at prominent locations in Lutyens’ Delhi around a year and half ago are no longer working, while 21 others are awaiting repairs or haven’t yet been commissioned. TOI visited the and found those at Lodhi Garden (Gate No 1), opposite Chelmsford Club, adjoining Jain Bhawan near Gole Market and at Kali Mandir on Bangla Sahib Road nonfunctional. The supply guns at these facilities were missing and the equipment was damaged at some sites. The homeless had taken over the Kali Mandir station. Their clothes and belongings could be seen hanging at the station and there was waste surrounding the site. A person living nearby said, “This station never began operations even after commissioning. In fact, it did not get a power connection at all. Then, parts of the infrastructure were stolen. If had kept an eye on the facility or installed CCTV cameras, perhaps public money wouldn’t have gone down the drain.” As the charging facility is located next to residential flats, a mohalla clinic and a public convenience, the locals feel that many motorists would have used the facility had it been functional. The near Chelmsford Club did operate in the beginning, the locals there said. “But eventually, all the charging points became defunct and the shed and steel structure were either stolen or damaged,” claimed a resident. In a similar condition, the charging points near Lodhi Garden Gate No 1 were nonfunctional and had their guns missing. Asked about this, NDMC officials claimed that the guns of 39 stations had been stolen some time ago and complaints had been made to Energy Efficiency Services Limited, which is responsible for the maintenance of the e-charging stations. An official also said the civic body had claimed insurance for the stolen guns. had borne the cost of installing the 100 charging stations while NDMC provided the space, power connection and permissions needed for them. NDMC vice chairman Satish Upadhyay added, “Following complaints, I visited a few stations on Wednesday and discovered lapses in their functioning and upkeep. While complaints have been filed with regard to missing guns at 39 sites, one station is undergoing repairs and at least 20 are midway to commissioning.” Upadhyay said the facilities were created for the convenience of the public and to motivate them to switch to an environmentally friendly mode of transport. “We will make all efforts to have the stations operating again,” he assured. NMohan, head of EVCI at Convergence Energy Services Limited, a subsidiary of EESL, responded that the firm’s responsibilities included rectification of the faults but not damage cover. “While
NMohan, head of EVCI at Convergence Energy Services Limited, a subsidiary of EESL, responded that the firm’s responsibilities included rectification of the faults but not damage cover. “While all chargers are insured, the insurance claim process necessitates the submission of a closure report by police,” Mohan pointed out. “There is a need to adopt strategies to prevent the recurrence of incidents of this sort.” He added that in October, EESL proposed the installation of battery-charging stations and battery-swapping stations at the existing public vehiclecharging stations. “The proposal is still pending NDMC’s approval. Such an initiative could help allocate manpower to operate these stations and mitigate the risk of theft and vandalism,” said Mohan.
Western curbs on Russian oil products redraw global shipping map Global fuel suppliers are turning to longer and costlier routes that produce more carbon emissions to move their diesel and other products as Western restrictions on Russian cargoes have reshuffled global energy shipping patterns. As a result of the ban on Russian fuel that started on Feb. 5, tankers carrying clean oil products such as gasoline, diesel, jet fuel and naphtha are travelling between 16 and 18 days to bring Russian supplies to Brazil or U.S. cargoes to , according to two shipping sources. That is up from the four to six days a ship used to travel from to Europe, said the two sources, a broker at a major shipbroking firm and a charterer involved in the Russian trade of naphtha, which is used to make plastics and petrochemicals. The ban comes on top of a halt late last year on Russian crude sales into the bloc as well as Western price caps. Since the start of the ban, the Clean Tanker Index published by the , which measures average freight rates for shipping fuels like gasoline and diesel on some of the most common global routes, has more than doubled. The redrawing of the shipping map underscores the knock-on effects of Western efforts to punish Russia over its invasion of Ukraine last year, adding to fuel supply insecurity and pushing up prices even as policymakers worry about inflation and the risk of a global economic downturn. "Not only are voyages much longer, but vessel behaviour has also changed, keeping vessels from operating in other CPP (clean petroleum product) markets," Dylan Simpson, freight analyst at oil analytics firm , wrote in a March 31 note. Russian cargoes of fuel are heading to far-flung buyers in Brazil, Turkey, Nigeria, and Morocco as Moscow compensates for the lost European business, while Europe is importing more fuels such as diesel from Asia and the , according to shipping data from Refinitiv and Kpler. Asian cargoes, in turn, are being displaced by Russian fuels in Africa and the eastern Mediterranean, and redirected to the blending hub of Singapore for temporary storage, two northeast Asian refinery sources said. European importers whose naphtha cargoes travelled from Russian ports to Antwerp in four days before Russia's invasion of Ukraine now must wait 18 days for alternative supplies from the United States, the shipbroking source said. The U.S. is also emerging as a top supplier of heavy naphtha to Europe amid the EU ban, while the Group of Seven Nations, EU and Australia have capped Russian naphtha prices at USD 45 a barrel and diesel and gasoline at USD 100 a barrel for trades that use Western ships and insurance. Meanwhile, Brazil, traditionally a U.S. naphtha importer, is boosting purchases from Russia at more attractive prices. However, the journey from Russia to Brazil can take 18 days or longer and, at up to USD 7 million per voyage, the costs are nearly double that of a U.S. shipment, the ship charterer involved in the Russian
the journey from Russia to Brazil can take 18 days or longer and, at up to USD 7 million per voyage, the costs are nearly double that of a U.S. shipment, the ship charterer involved in the Russian market said. Brazil received around 240,000 tonnes of Russian diesel and gasoil in the first three weeks of March, accounting for a quarter of Brazilian imports, up from Russia's 12% share in February and less than 1% last year, said Benedict George, head of diesel pricing with energy and commodity data provider Argus. "Until February, Europe had remained Russia's primary market for refined product exports; however, in the space of a month, a major pivot has been observed," tanker broker E A Gibson said in a recent report. LONGER DISTANCES, MORE POLLUTION Measured in terms of cargo miles, which multiplies the cargo quantity in metric tonnes by the distance travelled in nautical miles, the amount of product shipments to Brazil in March rose to 3.07 billion metric tonne-nautical miles (MT-NM) from 941 million MT-NM in November, according to data from valuation company VesselsValue. Shipments from Russia to Nigeria rose to 1.88 billion MT-NM in March from zero in November, VesselsValue estimates showed. Clean product cargoes to Saudi Arabia in March jumped to 1.75 billion MT-NM from 31 million MT-NM in November, while shipments to the United Arab Emirates were 4.43 billion MT-NM in March, up from 2.85 billion MT-NM in November, the data showed. Also in March, Russian clean products shipped to Togo reached 973 million MT-NM, up from zero in November. In volume terms, Brazilian imports of oil products from Russia were about 284,000 metric tonnes in February, up from 73,300 tonnes in September, VesselsValue data showed. Conversely, Russian exports to the Netherlands dropped to 238,200 tonnes in February from 1.15 million tonnes in September. Those longer distances are being done at higher costs for Russian products than for typical shipments from Europe. According to market estimates, freight rates for the UK/European continent to West Africa are quoted at USD 55.77 per tonne for a product tanker with a standard 37,000-tonne load. This compares with an indicative rate of USD 174.24 per tonne for shipments from Russia's Baltic ports to Nigeria, USD 103.84 for Morocco and around USD 150 to Egypt. With ships travelling further, that is also likely translating into greater emissions from smokestacks. Based on pre-pandemic data, a 10% increase in mileage for all tankers travelling to and from the European economic area would increase their emissions by around 1.5 million tonnes of carbon dioxide, equal to the emissions of around 750,000 cars per year in Europe, said Valentin Simon, data analyst with the Transport & Environment think tank in Brussels.
IITRDF, GIC Re sign MoU for development of Semi-Transparent Perovskite Solar Cells : In its ongoing global climate protection efforts, the Indian Institute of Technology Roorkee ( ) has kick-started a new collaboration with Insurance giant (GIC Re) on the development of energy-generating solar window technology. This is a Corporate Social Responsibility (CSR) initiative of the General Insurance Corporation of India (GIC Re). The new solar window technology will be designed and developed by lead scientist Prof. Soumitra Satapathi, Department of Physics. In this regard, an has been signed between the Roorkee Development Foundation (IITRDF) and the General Insurance Corporation of India. The MoU signing ceremony was graced by the presence of Madhulika Bhaskar (General Manager and Director, GIC Re), Sneha Nair (Assistant General Manager, GIC Re), Board of Directors IITRDF - Prof. K.K. Pant (Director IIT Roorkee), Prof. Mukat Lal Sharma (Dean Finance And Planning IIT Roorkee), Prof. Partha Roy (Dean of Resources & Alumni Affairs IIT Roorkee), Prof. Akshay Dvivedi (Dean SRIC IIT Roorkee) and Santosh Kumar (Chief Executive Officer IITRDF). IIT Roorkee Development Foundation is a Section-8 Company (not-for-profit) of IIT Roorkee established on 12th May 2021. The General Insurance Corporation of India (GIC Re), the Indian Reinsurer with various reinsurance solutions that cater to the needs of individuals, corporate, or institutional clients. Through its more than 50 years of experience and commitment, GIC Re is a trusted brand to its insurance and reinsurance customers in India. This Corporate Social Responsibility Program by GIC Re, under UN SDG Goal 4: Quality Education and Goal 7: Affordable and clean energy Goal 9: Industry, Innovation and Infrastructure and Goal 11: Sustainable Cities and Communities, will enable synergy for Education, R&D, and Sustainability. In this project, Prof. Satapathi and his team will develop semi-transparent perovskite for building integrated photovoltaics (BIPV). These semi-transparent perovskite solar windows will be able to harness electricity during the daytime and will reduce dependency on traditional electricity sources. This will eventually reduce carbon footprint and result in cost savings for homeowners and businesses, ultimately facilitating a cleaner, more future. Prof. K.K. Pant, the Director of IIT Roorkee, said, "This CSR project from GIC Re under the aegis of IITRDF will solve the pertinent problem of reducing carbon footprints in future energy-efficient buildings. IIT Roorkee is promoting sustainability through R&D, and this project will open up more avenues of collaboration between industries and academia." Madhulika Bhaskar, General Manager and Director, GIC Re., highlights, "As part of GIC Re's strong commitment to CSR, we are delighted to be part of this innovative project focused on making a building energy efficient by maximizing space at a minimal additional installation cost. The project is a path to
to CSR, we are delighted to be part of this innovative project focused on making a building energy efficient by maximizing space at a minimal additional installation cost. The project is a path to zero carbon energy." Prof. Soumitra Satapathi, Lead Scientist, said "Perovskite-based solar windows will be a game changer in the future green building sector. This will lead to reducing carbon emission and will help to achieve a sustainable future." Santosh Kumar, Chief Executive Officer, of IIT Roorkee Development Foundation, said, "This MoU signing event has opened up avenues for strategic partnership between IITR Development Foundation and GIC Re. We will closely work with GIC Re to build and nurture relationships to make a positive impact on IIT Roorkee and society.''
Japan's Nikkei retreats from 33-year high as sharp gains stoke caution Japan's Nikkei share average hit a more than three-decade high on Monday before reversing course to trade marginally lower as investors turned cautious about the index's recent sharp gains. The Nikkei index was down 0.07% at 33,562.41 by the midday break after rising earlier to its highest level since March 1990. The broader Topix fell 0.31% to 2,383.67. "Investors sold stocks as they became cautious about recent sharp gains of the Nikkei," said , trading head at Phillip Securities Japan. The Nikkei has risen nearly 9% so far this month, on course for its biggest monthly gain since November 2020. "There are more positive cues for the Nikkei than negative cues, with robust corporate outlook and share buybacks from the latest earnings season and U.S. interest rates seem to have hit their peak," Masuzawa said. Chip-related shares weighed on the Nikkei the most, with Tokyo Electron and Advantest down 9.29% and 0.55%, respectively. Automakers fell, with and Honda Motor losing 2.7% and 2.21%, respectively, amid the yen's gain against the dollar. The dollar languished near a more than two-month low against its major peers, struggling to make headway on views that U.S. rates have peaked. The auto and auto parts sector fell 2.14% to become the worst performer among the 's 33 industry sub-indexes. Panasonic Holdings extended its rally from Friday, jumping 5.3% as it announced a sale of a stake in its automotive systems business to U.S. private equity firm . Tokio Marine Holdings surged 6.27% after the casualty insurer raised its annual profit forecast and announced plans to buy back up to 2% of its own shares. The insurance sector rose 2.14% to become the top performer among the industry sub-indexes.
UK firm Metis touts battery sensor that could ease EV scrappage problem British firm said on Tuesday it has developed a sensor to measure electric vehicle (EV) battery health that should allow insurers to properly assess damage after accidents and allow them to avoid unnecessary write-offs. For many EVs, there has so far been no way to repair or assess even slightly damaged battery packs after accidents, forcing insurance companies to write off low-mileage cars - leading to higher premiums and undercutting gains from going electric. As well as detecting thermal runaway - a rapid and unstoppable increase in temperature that leads to fires in EVs - ' Cell Guard sensor contains an accelerometer that can detect the duration and severity of collisions even while the car is switched off, CEO told Reuters. The sensor can also check for venting, where damaged batteries leak gas that cause explosions. Bristol-based Metis is working with around 160 carmakers and battery storage companies on testing the matchbox-sized sensor, Holdsworth said. He declined to disclose names. He added that a major insurance company is using the sensor for crash tests to better understand the impact on batteries. Depending on how the sensor is configured within an EV, third parties should be able to access the sensor's data to see how badly a battery is damaged - which would address a major complaint from insurers that they lack access to data on an EV battery's health after an accident. Holdsworth said the sensor could also help address concerns over used EVs. "The unknown risk of poor EV battery health is one of the biggest and most significant barriers hindering the growth of the used EV market," he said. The company has production capacity of up to 1,000 units daily, which could be easily expanded, he added.
Car services groups warn of unfair competition as EU data plan stalls Car services groups on Friday warned a stalled EU proposal to ensure fair access to valuable vehicle data could pave the way for unfair competition from U.S. and Chinese tech . The vehicle data tussle between carmakers and a coalition of insurers, leasing companies and repair shops underscores the huge potential of the connected car market, which consultancy Fortune Business Insights says could grow to 250 billion-400 billion euros (USD 272 billion-USD 435 billion) by 2030. Carmakers, which own the data in their vehicles covering everything from driving habits to fuel consumption and tyre wear, are themselves looking to generate billions from software products and subscription services driven by the data. The European Commission had originally planned to adopt rules on how the data should be shared in the second quarter of the year, according to its agenda, but has yet to come up with a legislative proposal. Car services groups are already concerned about the small number of players in the industry with access to the data, said Benjamin Krieger, secretary general of the European Association of Automotive Suppliers (CLEPA). Unfair access could soon mean the sector "will be dominated by players from the United States and China", he told reporters. Another problem, which legislation could solve, is unstandardised data, said Laurianne Krid, director general of the Federation Internationale de l'Automobile, which promotes safety in motor sports. Car makers in turn said the Commission's proposed Data Act gives users control over data generated by vehicles, providing third parties fair and non-discriminatory access to the data. Krieger said it does not address the specificities in the auto sector. "It does not reflect the technology and the competitive situation," he said. The Commission did not immediately respond to a request for comment. Alphabet's has already got a foothold in the market, picked by to develop infotainment systems for future as the U.S. carmaker phases out Apple CarPlay and Android Auto technologies. Last month, teamed up with Google to offer traffic information and automatic rerouting in its cars.
Dollar steady as banking crisis fears linger The was steady on Monday, while the yen hovered near its seven-week peak as investors assessed moves made by authorities and regulators to rein in worries over the global banking system. The , which measures the currency against six rivals, rose 0.078% at 103.07, having gained 0.5% on Friday amid banking jitters, with shares of Deutsche Bank sliding nearly 9%. Global banking stocks have been battered through the month in the wake of the sudden collapse of two U.S. lenders and the rescue of embattled Swiss bank Credit Suisse last week, with authorities stepping in to ease investors nerves. "Pragmatic action by central banks, governments, and the private sector has thus far been insufficient to allow investors to be confident that the problem is ring-fenced," said Marc Chandler, chief market strategist at Bannockburn Global . On Monday, the Federal Deposit Insurance Corporation said First Citizens BancShares Inc would acquire all of Silicon Valley Bank's deposits and loans from the regulator. The U.S. Financial Stability Oversight Council said on Friday the U.S. banking system was "sound and resilient" despite stress on some institutions. Investors, though, remain wary. Risk-averse investors sent the yen to a seven-week high of 129.65 per dollar on Friday and the currency was on track to clock a 4% gain in March. It was last at 130.75 on Monday. The Fed on Wednesday raised interest rates by 25 basis points, as expected, but took a cautious stance on the outlook because of banking sector turmoil even as Fed Chair Jerome Powell kept the door open on further rate rises if necessary. Markets are pricing in a more than 80% chance of the Fed's standing pat on interest rates in its next meeting in May and anticipate a rate cut as early as July, according to CME FedWatch tool. "Contrary to the clear signal from Powell, the Fed funds futures are pricing in dramatic easing in the coming months," Chandler said. "This is extremely aggressive and stretches the imagination." Minneapolis Fed president Neel Kashkari said on Sunday the recent stress in the banking sector and the possibility of a follow-on credit crunch has brought the U.S. closer to . "What's unclear for us is how much of these banking stresses are leading to a widespread credit crunch. That credit crunch ... would then slow down the economy," Kashkari said in comments to CBS show Face the Nation. "This is something we are monitoring very, very closely." Meanwhile, the euro was up 0.05% to USD 1.0764, after falling 0.6% on Friday. Sterling was at USD 1.2235, up 0.05% on the day, having slid 0.5% on Friday. The Australian dollar rose 0.09% to USD 0.665. The kiwi was up 0.03% at USD 0.620. In , bitcoin last rose 0.84% to USD 27,861.02. last rose 0.71% to USD 1,763.39.
Ola eyes NBFC acquisition to expand financial services business IPO-bound is looking to expand its and also obtain an licence through the route, sources said. Ola is said to be in talks to acquire at least 3 companies to augment its engineering, product as well as loan management capabilities to support the rapid growth in the financial services business, two sources with direct knowledge of the development said. The companies being considered for acquisition are registered non-banking financial companies (NBFCs), which offer both secured and unsecured loans. Ola will leverage the acquisitions to provide vehicle financing as well as personal loans, they said. While the company did not immediately offer any comments, sources said Ola has lined up aggressive plans for its financial services business. As per its RoC (Registrar of Companies) filing, Ola had recently invested Rs 786 crore in its financial services business Ola already offers its Buy Now, Pay Later product - Ola Postpaid that is available to over 40 million customers and is projected to grow to 100 million customers in the next six months. Its vehicle financing business is already growing rapidly on the back of the success of Ola Electric which has already become India's leading EV manufacturer as well as the used car business, Ola Cars, which is on a rapid growth trajectory and is set to sell USD 2 billion GMV(gross merchandise volume) in its first year of launch. In addition to ramping up its lending business, Ola is simultaneously looking to get insurance and insurance broking licences to further strengthen its ability to offer innovative products like telematics-based pay-per-use motor vehicle insurance, sources said. Ola has to date sold nearly 700 million policies and the GMV of its insurance business grew over 3x in 2021. It is now projecting a Gross Written Premium of over Rs 1,000 crore in 2022 and will add multiple new offerings including an insurance marketplace for gig economy workers beyond its driver-partners. India's auto loan industry, growing at 8 per cent compound annual growth rate (CAGR) is expected to reach USD 60 billion by 2026. Meanwhile, auto insurance, which is a USD 9 billion industry in FY21 is expected to deliver a 14.8 per cent CAGR over the next 10 years to reach USD 36 billion by FY31. Ola, with over 165 million customers, is one of the largest consumer internet platforms in the country and adding financial services and insurance to its offerings is a natural extension. Also Read:
Know why add-on covers are beneficial to car owners More than helping one cushion the financial loss caused by an accident or damage, motor insurance gives the comfort of a tension-free drive. The Motor Vehicles Act 1988 makes it mandatory for every car owner to take an insurance policy to cover damages to third parties. The insured is the first party, the insurance company is known as the second party, while others form the third party. Primarily, there are three types of motor insurance policies - Third Party and standalone Own Damage & Comprehensive. A third-party cover provides protection to insured against any liability arising due to death &or damage caused to third parties. Standalone Own damage cover protects car owners against any liabilities occurring from damage to their own vehicle. Comprehensive cover protects the car owner from damage to vehicle & liabilities arising from third parties. But considering the evolving needs of cars, today car owners need comprehensive protection for their vehicles to enjoy driving without worrying about financial loss. Add-on covers are designed to enhance overall motor insurance and give comprehensive coverage for damage or loss of car keys, tyres and rim, repair or replacement of consumable items and so on. Types of add-on covers under A comprehensive motor insurance policy ensures the highest level of protection and can be amplified with the help of add-on covers. Some of them include: Zero Depreciation Cover: At the time of claim settlement, the insurer deducts the amount of depreciation that applies to a vehicle parts under replacement from the claim value. A ‘Zero Depreciation’ cover can relieve car owners from the stress of incurring the depreciation cost, allowing them to get an appropriate claim. Engine Protection Cover: Despite being one of the most important parts of the car, regular comprehensive policies do not cover non-accidental damages to the engine. With an ‘Engine Protection’ cover, one can protect her car from financial loss due to damage to the engine or gearbox, caused due to water ingression, lubricating oil leakage or mechanical breakdown. Return to Invoice Cover: A car’s value starts to depreciate, the moment it leaves the showroom. While buying car insurance, the IDV is decided on the basis of market value and not at the price at which it was purchased. With a ‘Return to Invoice’ add-on cover, car owners can claim the invoice value of their cars in the event of loss or theft of the car. Further, the cost of road tax & registration paid during the new vehicle purchase along with the insurance cost is also reimbursed. No Claim Bonus Protection Cover: No Claim Bonus (NCB) is one of the most beneficial add-on cover. NCB is a discount in premium offered by insurance companies if a vehicle owner has not made a single own damage claim during the term of the motor insurance policy. No Claim Bonus Protection Cover helps in protecting the NCB discount even in the event of a claim (one)
owner has not made a single own damage claim during the term of the motor insurance policy. No Claim Bonus Protection Cover helps in protecting the NCB discount even in the event of a claim (one) during a policy year. A ‘NCB Protection’ add-on can help keep the premiums low despite making a claim. Key and Lock Replacement Cover: It provides for the cost of new locks and replacement keys, in the case of irrevocable loss. A regular policy does not pay for the replacement of keys, thus making this add-on a must. Consumables Cover: The cost of consumable items like nuts and bolts, lubricants, grease, etc. are not included in regular policies. With an add-on cover, you can reimburse the expenses towards consumable items used in an insured car during repairs caused due to an accident. Daily Allowance Cover: The ‘Daily Allowance’ Cover helps a car owner bear the daily expenses on travel incurred during repair of the insured car. This may be applicable only if the car is being repaired at the network garage of the motor insurance company. Having add-ons can give complete protection to a car. Therefore, paying attention to the features while comparing the premiums is imperative. Most comprehensive policies do not cover the damages offered by add-on covers. To be able to enjoy the extended benefits of motor insurance, car owners should carefully choose a car policy and select add-ons as per their requirements. Some of these add-on covers may seem trivial but are important to have for the financial security of the car. With the ever-increasing number of cars on Indian roads, these add-ons have become crucial. India leads the world in road accidents, and any accident, dent or damage, can occur in the blink of an eye, leaving a deep hole in your pockets. It is thus advisable to maximize motor insurance coverage with add-on covers as per the requirements. Also Read:
40% of vehicles on roads not insured: Centre tells SC The central govt informed the Supreme Court (SC) that "40% of on the roads are uninsured". This information came to light during the ongoing hearing of a writ petition, Civil No. 295 of 2012, filed by Agra-based senior advocate Kishan Chand Jain in 2023. The govt stated that according to the (e-DAR) data, only about 60% of vehicles involved in road accidents have third-party insurance. This means if an accident occurs with any of 40% uninsured vehicles, the victim cannot claim compensation from an insurance company but must pursue legal action against the vehicle owner to seek damages, a process that can be both difficult and problematic. Advocate Jain had filed a petition in the apex court for electronic monitoring of vehicles to ensure compliance with traffic rules as per section 136-A of the . He demanded e-cameras be used to check whether a vehicle has third-party insurance and to issue fines if it does not. The ministry of transport has data indicating which vehicles are insured and the validity of insurance. "E-monitoring can easily facilitate the fines of uninsured vehicles," Jain said. He pointed out that under section 146 of MVA, it is mandatory for every vehicle to have third-party insurance. Failure to do so is punishable under section 196, resulting in imprisonment of up to three months or a fine of INR 2,000 for first offence, and for subsequent offences, imprisonment of three months or a fine of INR 5,000. Despite these provisions, vehicle owners continue to operate vehicles without third-party insurance. Notably, in financial year 2018-19, general insurance companies collected INR 38,046 crore in motor third-party insurance premiums, which increased to INR 49,508 crore in 2022-23 and is estimated to reach around INR 50,000 crore in 2023-24. Yet, 40% of vehicles are still running on the roads without insurance, the central govt told the SC. The issue of uninsured vehicles was raised in the Lok Sabha as well. The finance minister, on March 20, 2023, responded to unstarred question no. 3211, revealed that excluding Madhya Pradesh, Andhra Pradesh and Lakshadweep, out of approximately 30.4 crore vehicles, 16.5 crore were "uninsured". The SC Road Safety Committee expressed concern over this matter, stating in its meeting on March 26, 2018, that 66% of vehicles are operating without third-party insurance, leading to a situation where heirs of dead accident victims are unable to receive compensation. The case is set for hearing on July 11.
Hiring hiccups seen in April-June 2022, but tech going strong sentiment in the Indian job market is seeing some tempering after back-to-back record quarters as challenges over global geopolitical instability and rising inflation tone down levels of optimism. According to the ManpowerGroup Employment Outlook Survey shared exclusively with ET, about 55% of 3,090 employers said they will hire more people in the coming quarter, while 17% said staffing levels will decrease and 26% expect to keep workforce levels steady. Only 2% were unsure about hiring intentions. This puts net employment outlook - the difference between companies looking to hire and those expecting a fall in headcount or hiring numbers - at 38%. Net employment outlook has decreased by 11 percentage points from that for January-March 2022, when it hit a nearly eight-year record of 49%. However, it is still significantly up by 28 percentage points from the year-earlier quarter of April-June 2021. "As the country heads out of the pandemic, we are witnessing new challenges of the global geopolitical instability and rising inflation. Having said that, India will continue to thrive as the main source of IT and resources," said Sandeep Gulati, group managing director, ManpowerGroup. "India also has the third-largest ecosystem for startups in the world. With the central government allocating ₹283.5 crore for the Startup India Seed Fund Scheme (SISFS) in the budget, I am bullish about the growth in employment opportunities for youth." An increase in payrolls is forecast for all 11 industry sectors during the coming quarter, found the survey. IT and technology sector employers reported the strongest hiring intentions with a net employment outlook of 51%, followed by the restaurants and hotels sector, and education, health, social work and government sector with outlook of 38% and 37%, respectively. The outlook for manufacturing and services is 34% and 36%, respectively, while that for the banking, finance, insurance and real estate sector, and the wholesale and retail trade sector stand at 32% and 33%, in that order. Employers in the construction and primary production sector forecast payroll gains with an outlook of 27% and 33%, respectively. Employers in all four regions - west, south, north and east expect to increase payrolls during the April-June quarter of 2022. But hiring prospects weaken significantly in all four regions when compared with the previous quarter. Also Read:
EU top court sides with car service firms in data fight with Scania Swedish truck maker must share car data, such as vehicle identification numbers, with repair shops and parts distributors, Europe's top court said on Thursday in a ruling that could provide a boost for the latter looking to tap a market worth billions of euros. Car services companies have long lobbied for laws to ensure fair access to vehicle data, pitting them against carmakers seeking to generate revenue from software products and subscription services driven by data which covers everything from driving habits to and tyre wear. Scania found itself in the dock after a German trade association for motor vehicle parts sued the company in a German court for withholding vehicle identification numbers on the basis that these constituted personal data and thus subject to EU privacy rules. The German court subsequently sought advice from the EU Court of Justice (CJEU) which sided with the German trade body. "Car manufacturers are required to provide access to all vehicle repair and maintenance information," EU judges said. "Even where vehicle identification numbers are to be classified as personal data, the General Data Protection Regulation does not preclude car manufacturers from being obliged to make them available to independent operators," they said. The vehicle data tussle between carmakers and insurers, leasing companies and car services firms underscores the huge potential of the connected car market, which consultancy Fortune Business Insights says could grow to between 250 billion euros and 400 billion euros ($267 billion-$427 billion) by 2030. Data ownership, however, is not clearly defined in EU law, which has triggered the current dispute between carmakers and those who want to access it. The European Commission had originally planned to adopt rules on how the data should be shared in the second quarter of this year, according to its agenda, but has yet to come up with a legislative proposal.
Russia is running out of oil customers is struggling to sell as buyers flee the stigma, logistical challenges and fears of further sanctions that come with dealing with Moscow in the wake of the . Even without direct sanctions on its energy industry Russia will lose around one million barrels per day (bpd) in oil exports, according to analyst Jarand Rystad, head of Rystad Energy, from the 10.5 million bpd it sold last year. That is despite the scarcity of global supplies sending prices soaring. Brent North Sea crude oil -- the industry benchmark -- rocketed this week to nearly $120 per barrel, while gas hit a record peak. and other major oil exporters, including Russia, refused to increase production beyond previously-agreed levels when they met on Wednesday, dashing hopes of easing supply pressures. The price might be working in Russia's favour, but it faces a major freeze-out from buyers. Energy Aspects estimates that 70 percent of its oil exports are paralysed as brokers and refineries shun Moscow in spite of the red-hot market. For now, Western sanctions over the Ukraine invasion have avoided Russia's energy sector, since Europe is so reliant on it. Germany imported 55 percent of its gas from Russia last year, and its vows to slash this figure and boost renewables like wind and solar will take years to realise. Pipeline deliveries continue from Russia, but facing the threat of global condemnation and potentially more sanctions to come, European importers are looking elsewhere. Finland's energy group Neste says it has "mostly replaced" Russian crude with alternatives such as North Sea oil. Sweden's bitumen product manufacturer Nynas says it will end purchases of Russian raw materials altogether. Some non-Russian crudes like Kazakh oil are also being penalised since they are exported via Russia ports, which have been blacklisted by shipping companies. Nonetheless, some buyers may return if the West definitively rules out sanctions on the energy industry. "We should start to see which buyers are willing to resume purchases and which are not," said Energy Aspects analyst Livia Gallarati. "China and India are still not buying, but we think they will slowly start to buy the crude once issues around shipping, insurance and payments are navigated," she added. India, which also relies on Russia for military supplies, has called for a ceasefire but has stopped short of condemning the invasion. China, Russia's largest trading partner for more than a decade, has also yet to condemn the attack. Despite their size, however, the pair lack the capacity to make up for all of Russia's energy export losses. Western firms have taken swift and decisive action in the past week. Britain's BP and Shell, along with Norway's Equinor, have decided to end their Russian operations entirely. Germany has suspended the controversial Nord Stream 2 gas pipeline from Russia. Proposed new energy infrastructure could also be hampered, such as Rosneft's flagship Vostok Oil
operations entirely. Germany has suspended the controversial Nord Stream 2 gas pipeline from Russia. Proposed new energy infrastructure could also be hampered, such as Rosneft's flagship Vostok Oil project in Siberia. Switzerland's oil trading giant Trafigura stated that it was "reviewing options" over its Vostok minority stake. With Russia sidelined, European buyers are turning to oil from the crude-rich . However the two nations with the most spare capacity -- the United Arab Emirates and OPEC kingpin Saudi Arabia -- are reluctant to hike output. One uncertain factor is Iran, where last-ditch talks are underway with world powers to lift its own set of sanctions related to its nuclear programme. Tehran has stated that it is ready to step up exports if a deal is reached, though how quickly its oil sales could impact the market has yet to be seen. Also Read:
Telematics goes Chip-less, powered by Damoov New Delhi: has become an integral part of the automobile and fleet industry, especially with the recent boom in transportation mobility and gig economy. It is an essential management tool now for industries that require constant monitoring of vehicles and drivers. However, the post covid-19 global chip shortage has immensely impacted the traditional chip based telematics solutions, forcing companies to look for alternate solutions. This has led to an accelerated interest in building smartphone based Telematics applications. Damoov, is one of the pioneering companies that is helping firms take their telematics solution "mobile". Telematics has proved to be a game-changer in the US and Western countries where the automobile industry puts a lot of emphasis on safe driving. It also finds enormous applications in the insurance industry, particularly in the 'smart insurance' section, where the premium depends on how you drive. Driver Monitoring Services from the brand helps food service apps track their delivery partners' real-time location. Parents can also make use of the product to check teenagers' driving habits. Building smartphone telematics softwares or adding telematics feature to a software is a complex task requiring specific skillset and months (and sometimes years) of Developer time. Even if a company manage to build an in-house mobile telematics solution, it will face high maintenance costs as and iOS frequently change rules how they provide access to smartphone sensors data. To overcome the development challenges, there was a strong need for companies to come up with ready to configure solutions for telematics. Damoov, as a revolutionary domain player, is doing just that. It is changing the dynamics of the telematics industry with its cutting-edge suite of Telematics APIs and SDKs that turns any smartphone into a powerful telematics device. Using Damoov various companies from industries like Auto, Fleet Management and Insurance are bringing down development time from Years to days. This helps companies bring down maintenance and R&D cost by up to 70 per cent. Damoov's success it's not just due to the convenience that it brings to developers. Technologically, Damoov is superior to the existing solutions -making it a win-win deal for customers. For example, one of the significant issues faced by telematics apps is, keeping them on at all times to record data. This puts massive stress on the mobile's battery and causes mobile users to refrain from using them. Damoov's telematic suite allows apps to run in the background and automatically recognize and record driving activities. This way, it records data while saving the battery from any additional stress. Ivan Shornikov, CEO and Founder of Damoov, believes that their telematics-based APIs and SDKs will eventually become a default requirement for building any mobile applications designed for drivers and gig-workers. "Consider how solutions like
believes that their telematics-based APIs and SDKs will eventually become a default requirement for building any mobile applications designed for drivers and gig-workers. "Consider how solutions like Stripe and Razorpay have eased the development time for payment solutions. You don't try and build your own solution today - Damoov will play a similar role for Telematics", says Shornikov. Despite being a startup, Damoov's quick success is a result of their team's sheer dedication, which boasts of over 100 years of combined leadership experience in the telematics industry. Their vision to become a default solution for mobile developers for integrating tracking-based features has brought them funding from the giants likes of Alchemist Accelerator and StartaVC. Damoov is now expanding its operations to the US, Europe, Middle East, Africa, Japan, Singapore and India. This story is provided by PNN. will not be responsible in any way for the content of this article. (ANI/PNN)
Budget 2024-25: Auto Inc. applauds policy continuation, skilling focus, but awaits more Govt commitment on EVs Union Budget 2024-25: With a focus on nine key areas, Finance Minister Nirmala Sitharaman announced the Union Budget 2024-25 on Tuesday. While there are no direct policy changes announced for the automobile industry in the Union Budget, a few indirect provisions are keeping the sector hopeful. The government will spend INR 11.11 lakh crore on infrastructure in the ongoing financial year. The spending plan remains unchanged from when it was announced in the interim budget presented in February. Rural could drive entry-level vehicle sales The government has allocated INR 2.66 lakh crore for including rural infrastructure. A provision of INR 1.52 lakh crore for agriculture and allied sectors has also been made. Manish Raj Singhania, President, FADA believes if the monsoon turns out to be good, then with this kind of fund flowing we should expect a good festive season this year. “Urban and semi-urban sector is performing well for the , and there was a push needed on the rural side. The announcements in the budget could be a boost for the entry level cars, two wheelers and small commercial vehicles,” he said, adding that the recent hike in MSPs will add to the positives. As per the Budget, rural land related actions will include assignment of Unique Land Parcel Identification Number (ULPIN) or Bhu-Aadhaar for all lands, digitization of cadastral maps, survey of map subdivisions as per current ownership, establishment of land registry, and linking to the farmers registry. These actions will also facilitate credit flow and other agricultural services. Vinod Aggarwal, President, Society of Indian Automobile Manufacturers (SIAM) said the budget could have a multiplier effect on the economy as well as the auto sector. One of our requests to the FM was an allocation for rural development. So this is a welcome step, and there is some renewed focus on the Pradhan Malik Grameen Sadak Yojana as well. Rajeev Singh, Partner and Consumer Industry leader, Deloitte Asia Pacific said, "Overall, the budget appears to be growth oriented with special focus on two big issues - reviving the rural market and ." Potential boost for FM stated that a Critical Mineral Mission for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets will be provisioned. Its mandate will include technology development, skilled workforce, extended producer responsibility framework, and a suitable financing mechanism. Minerals such as lithium, copper, cobalt and rare earth elements are critical for sectors like nuclear energy, renewable energy, space, defense, telecommunications, and high-tech electronics. I propose to fully exempt customs duties on 25 critical minerals and reduce BCD on two of them. This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and
on 25 critical minerals and reduce BCD on two of them. This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors, Sitharaman said in her speech. Shradha Suri Marwah, President, ACMA India said a reduction in customs duty to nil on critical minerals such as lithium, copper, cobalt, nickel etc. will encourage cell manufacturing in the country and add to the evolving EV ecosystem in the country. “We were also looking at any statement when it comes to EVs in particular, which we could not hear. There was surely a mention about green energy and a taxonomy to be developed for this green transformation, I think we should wait for more details," said Santosh Iyer, MD and CEO, Mercedes-Benz India He believes that the Government is working on that front, and “enablers” like the duty reduction on rare earth minerals are “welcome”. He also added that “we need much bigger steps as well when it comes to commitment from the government that we will continue this path of electrification”. turn up to be a gainer Government has announced a credit guarantee scheme to help manufacturing-focussed medium and small enterprises (MSMEs) in buying their machinery without offering collateral. Positive about the growth prospects of the manufacturing sector, Shradha Suri Marwah, President ACMA & CMD Subros stated that a focus on strengthening MSMEs through Credit Guarantee scheme and credit support during the stress period are steps in the right direction. "Nearly two-third of ACMA members are MSMEs," she added. For N K Minda, CMD, Uno Minda, a big highlight in the budget was a focus on localisation and MSMEs. Jobs and skilling FM also said there will be a scheme to provide internship opportunities in 500 top companies to 1 crore youth in 5 years. Internship allowances of INR 5000 per month with one time assistance of INR 6000 will be given. For this, respective companies will bear the training and 10% internship cost from CSR fund. Government has also doubled the upper limit of Mudra loans to INR 20 lakh from the current INR 10 lakh for entrepreneurs who have availed and successfully repaid previous loans under the 'Tarun category'. Automobile dealerships in India employ 40 lakh people directly. “Employment schemes for youth are encouraging. The update on Mudra loans is a positive step for dealers, especially the EV dealership community,” Singhania said. Marwah was particularly excited about the encouragement for women in the workforce and skilling. “The more diverse the workforce, the more innovative we will be.” Minda stated that the employment initiatives and incentives for women are a good initiative and should prove positive for the entire industry. Benefit for startup investors In her budget speech, FM announced that the angel tax will be abolished for all investors. With an aim to curb the use of unaccounted money through the subscription of shares in closely held
In her budget speech, FM announced that the angel tax will be abolished for all investors. With an aim to curb the use of unaccounted money through the subscription of shares in closely held companies at inflated valuations, the Angel tax was introduced in 2012. Industry experts suggest that abolishing angel tax for all classes of investors in startups would be helpful in bolstering the Indian startup ecosystem in innovative mobility solutions. According to Marwah, this is a positive move as lines are blurring between technology and mobility in the auto sector. “Innovation is coming from various areas, and one of them is startups. In ACMA, we actually started a pillar for startups, because there is so much traction over there.” Unmet expectations Santosh Iyer, MD and CEO, Mercedes-Benz India said he was happy about the policy continuity as it helps in long-term planning. “While there was no major announcement on EVs, initiatives on the transition to green energy were in the positive direction. While SIAM President seemed positive, he added that specific announcements around EV incentives and vehicle scrappage would have been helpful for the industry. A specific allocation for R&D spending or tax incentive in innovation was a miss, Ashim Sharma, Senior Partner, NRI (Nomura Research Institute) said. With the demand for hybrid vehicles on a rise during the past months, Saurabh Agarwal, Partner, EY India felt a reduction on cess could have been reduced for hybrids, as it is a choice of transition towards EVs. There is no concessional corporate tax rate, so that incentive on manufacturing is missing, he added. Arnab Banerjee, Chairman Automotive Tyre Manufacturers Association (ATMA) said the industry was looking forward to reduction in customs duty on natural rubber which is the highest in the world and which unfortunately has not been addressed. However, the proposal of a comprehensive review of the rate structure over the next six months to rationalize and simplify it for ease of trade and removal of duty inversion provides major solace to the industry, he said. Bal Malkit Singh, Chairman - Core Committee & Former President, All India Motor Transport Congress (AIMTC) is quite disappointed with the budget announcements. “The macro-objects of infrastructure & tourism development in Odisha and Bihar is the only solace for our brethren from the passenger transport sector. The viability of this sector is increasingly threatened by multiple taxation, rampant corruption, and rising input costs such as diesel, tolls, third-party insurance, and tyre prices,” he said. What is also expected in the industry is clarity on long term capital gains tax calculation on real estate, because that is a “big sector” for carmakers, especially for the luxury vehicle makers. While on one hand, it has been brought down from 20 to 12.5%, on the other hand, the indexation benefit has been removed, Iyer added.
India imported USD 2.8 bn worth of crude oil from Russia in July India, the world's third largest oil consuming and importing nation, in July bought USD 2.8 billion worth of crude oil from Russia, second only to China which remains the largest importer of Russian oil, a report said. Russia emerged as India's biggest supplier of crude oil, which is converted into fuels like petrol and diesel in refineries, after Russian oil was available on discount following some European nations shunning purchases from Moscow over its invasion of Ukraine in February 2022. Imports from Russia, which were less than 1%of the total oil imported in pre-Ukraine war period, now make up for almost 40%of India's total oil purchases. China bought 47% of Russia's crude exports, followed by India (37%), the EU (7%), and Turkey (6%), the said in a report. Not just oil, but China and India also bought coal from Russia. "From 5 December 2022 until the end of July 2024, China purchased 45% of all Russia's coal exports followed by India (18%). Turkey (10%), South Korea (10%) and Taiwan (5%) round off the top five buyers list," it said. CREA however did not provide absolute numbers for imports. China was the largest buyer of Russian fossil fuels in July, accounting for 43%(Euro 6.2 billion) of Russia's monthly export earnings from the top five importers. Crude oil comprised 63%(Euro 3.9 billion) of China's imports from Russia. In July, China's global import volumes of seaborne crude (40.2 million tonnes) dropped to their lowest levels since February 2023. Seaborne crude imports from Russia (4.3 million tonnes) also dropped to their lowest levels since December 2022 and may be linked to reduced processing margins for refineries amidst low fuel demand. "India was the second-largest buyer of Russian fossil fuels in July. Almost 80%of India's imports (valued at Euro 2.6 billion or USD 2.86 billion) comprised crude oil," the report said. India, which is more than 85% dependent on imports to meet its oil needs, spent USD 11.4 billion in July on import of 19.4 million tonnes of crude oil, according to official data. In July, the discount on Russian Urals grade crude oil widened by 9%month-on-month to USD 16.76 per barrel compared to Brent crude oil. The discounts on the ESPO grade and Sokol blends remained relatively stable and modest at USD 4.23 per barrel and USD 6.11 per barrel, respectively. According to CREA, 36%of Russian seaborne crude oil and its products in July were transported by tankers subject to the oil price cap. The remainder was shipped by 'shadow' tankers and was not subject to the . US and western nations in late 2022 introduced a cap regime to maintain Russian oil flowing to the global market to avert a damaging jump in prices, while limiting revenue Moscow earned from sales of crude. Cargoes of Russian crude could only access western services such as insurance and shipping if sales were capped below USD 60 a barrel. To circumvent, a dark or shadow fleet of oil
sales of crude. Cargoes of Russian crude could only access western services such as insurance and shipping if sales were capped below USD 60 a barrel. To circumvent, a dark or shadow fleet of oil tankers emerged. The shadow fleet consists of second hand decrepit oil tankers with opaque ownership structures that make it difficult to ascertain who controls them, or force them to follow western laws. CREA said "81% of the total value of Russian seaborne crude oil was transported by 'shadow' tankers, while tankers owned or insured in countries implementing the price cap accounted for 19%." 'Shadow' tankers transporting oil products handled 37% of Russia's total volume of products in July 2024. The remaining volume was shipped by tankers subject to the price cap policy. "Russia's reliance on tankers that are owned or insured in G7+ countries has fallen due to the growth of 'shadow' tankers. This subsequently impacts the coalition's leverage to lower the price cap and hit Russia's oil export revenues," CREA said. There have been calls given for preventing growth in 'shadow' tankers that are immune to the oil price cap policy. "Sanction-imposing countries should ban the sale of old tankers to owners registered in countries that do not implement the oil price cap policy. This would help limit the increase of 'shadow' tankers used to transport Russian fossil fuels which has been observed since their full-scale invasion of Ukraine," CREA said.
Kotak General Insurance launches AI-based Vehicle Pre-Inspection ( ) today announced automating vehicle inspections for vehicle insurance renewals with Artificial Intelligence (AI) based technology. Kotak General Insurance has partnered with Inspektlabs to automate the vehicle inspection process, using AI-based technology. Under the AI-based inspection process, during policy renewals, customers can capture photos or videos of their vehicle and upload them on the cloud-based . An automated inspection report covering damages, if any, gets generated within a few seconds of uploading the photos/videos. The automated process replaces humans in repetitive work that saves cost and increases customer satisfaction by reducing the time required to renew a car insurance policy. The technology also helps to detect fraud based on the pictures and videos uploaded, thereby aiding the underwriting process. , Chief Technology Officer, said, "The do-it-yourself ( ) process will help enhance customer experience and reduce turnaround time and frauds. Over the past few years artificial intelligence has become a mainstay for several of our businesses, and we at Kotak General Insurance have also spruced up technology to provide seamless solutions to our customers. We hope to serve our customers better with this new technology addition."
Vehicle pedestrian safety systems struggle to see in the dark DETROIT - Many of the automakers are using to prevent vehicles from hitting pedestrians do not work well in the dark, according to test results released Tuesday by the U.S. non-profit group . The group, backed by the insurance industry, said 12 of the 23 sedans, midsize SUVs and small trucks it evaluated earned a "basic" rating or no credit at all, because they failed to detect or slow adequately for a dummy pedestrian in nighttime tests. About three-quarters of pedestrian deaths happen at night, the IIHS said. Starting with the 2023 model year, the IIHS will require vehicles to earn a "superior" or "advanced" rating on the new nighttime to receive a "Top Safety Pick +" rating from the organization. Automakers strive for top ratings from the IIHS, as they do from the U.S. National Highway Traffic Safety Administration. The IIHS is focusing on as fatalities involving people on foot being struck by vehicles are rising sharply on U.S. highways. Pedestrian fatalities rose in 2021 to 7,342 deaths, up 13% from the year before and up 80% from the low point in 2009, according to federal data. There is not yet a government test or performance standard for pedestrian-detecting automatic braking systems. And there is no federal requirement for nighttime testing of such systems, said IIHS President David Harkey. The IIHS found wide variation in systems performance both between competing automakers and between different models sold by the same automaker. Nissan Motor Co's 2022 Pathfinder was rated "superior," while the company's Altima sedan received "no credit" in the IIHS tests. Nissan said in a statement it is "still evaluating the results from the latest IIHS testing, including the difference in results in combination with the performance of the equipped headlights." Volkswagen said in a statement that the vehicles IIHS tested only use radar. "We are confident that the next versions of the Atlas, Atlas Cross Sport and Tiguan should perform better because they fuse camera and radar sensors and will hopefully achieve an Advanced rating." Toyota said its Tacoma pickup, which received a "no credit" rating in the IIHS test, is not equipped with a system that can detect pedestrians at night. The Toyota Highlander and Camry received "superior" ratings, and have more advanced pedestrian detection technology. Toyota did not comment on the IIHS testing method. Ford and General Motors did not immediately respond to requests for comment. Eight of 12 vehicles that earned low, "basic" or "no credit" scores in the nighttime test had systems that earned "superior" or "advanced" ratings in daytime testing, the IIHS said. The IIHS is using its tests to push automakers to improve the performance of automatic braking systems, but Harkey said the rise in pedestrian deaths is driven by multiple factors, including vehicle speed, pedestrian behavior and the growing share of larger, heavier, taller trucks and SUVs.
How to insure a 1955 Mercedes-Benz that sold for the record price of $142 mn? On May 5, a 1955 sold for $142 million during an auction at the Mercedes-Benz Museum in Stuttgart, Germany. It was the highest price ever paid for a car at auction, soundly beating the eight-figure Ferrari sales that had long topped the blue-chip billing. The identity remains a mystery of the person who bought the one-of-two silver stunner with gullwing doors and shiny exhaust pipes protruding from its right side. “The buyer is an enthusiast and not an investor,” says Simon Kidston, who placed the winning bid on behalf of a client, whom he declines to identify. “It is somebody who loves the car. The buyer has never once asked me what I think the car might be worth in the future.” What is certain is that an object of such value will require a rock-solid insurance policy — if the new owner plans to drive it. Technically, if the car is never driven, it will not legally require insurance, according to analysts from Hagerty, a US-based firm that provides insurance for collectable vehicles and collections that are valued as high as $1 billion. “There are some parts of the world where people won’t insure highvalue vehicles,” says , Hagerty’s president of global markets. “They want to keep them off the books.” Like A Piece Of Fine Art A spokesperson for Mercedes Benz said the company would not comment on insurance with regard to the record-setting coupé. But according to Abe Barnett, vicepresident of Signature Services, Hagerty’s highest-end insurance segment, the most obvious bet for the new owner would be to protect it under an inland marine insurance policy, which covers high-value items typically excluded. Numerous factors go into finalising the rates and structure of such a policy — like location, storage and vehicle type — but in general, insuring a $100-million vehicle costs over $100,000 annually. “That would treat it essentially like jewellery or art,” says Barnett. “It provides a much broader form of coverage, as opposed to a standard auto policy, which would be comprehensive and collision coverage. When they take their vehicle around, whether they want to take it to a concours or take it on a road rally or tour, that policy that will cover it appropriately.” This includes protection from damage or loss due to theft, accident, mishandling, or in the event of an undetermined cause for property to have gone missing. It would also help meet the costs to repair or replace property damaged by fire, wind, hail or water. It does not, however, cover damage from war, mechanical failure or issues that happen due to regular use. How Much Is It Worth To You? Most important when underwriting such a policy is to agree upon the value for which the vehicle will be insured. That number can be far above what was paid for it; it may also rise as a car is restored. How and where the car will be stored will probably affect the price of the insurance policy more than anything else. “Many
be far above what was paid for it; it may also rise as a car is restored. How and where the car will be stored will probably affect the price of the insurance policy more than anything else. “Many wealthy people live in beautiful areas that tend to be catastrophically exposed,” Butcher says, citing private islands, forested mountains and sheer cliffs. Keeping a vehicular asset away from wildfire areas and hurricane zones is vital. So is storing it in a temperature - co n t r o l l e d environment with effective security cameras and burglar alarms. An additional consideration: “Insurers will want to know the age of people likely to drive it,” Kidston says. “And if the car is being transported, they will ask that there are two drivers on the truck and that it’s not left unguarded.” As with your everyday car insurance policy, not having to submit a claim helps keeps the insurance premium low. Rising From The Ashes Even if the unthinkable happens and the car is damaged, not all is lost — assuming it can be repaired. With extreme damage, the owner would converse with the insurance company about reducing the car’s value, pending restoration. In rare cases, car values have risen to greater heights after superficial damage. In 2019 in Durham, US, a gas pipe exploded in front of a warehouse storing roughly half of the prestigious of cars. An extremely rare 1961 Porsche 356 B Carrera GTL Abarth — so valuable that an original toolkit alone is worth $10,000 —was one of many vehicles harmed. Following an intensive 4,000-hour restoration of the tiny silver racer, the Abarth made a full comeback in just four months, winning its class at the Pebble Beach Concours d’Elegance. It then took top honours in its class at the 2022 Amelia Island Concours d’Elegance. In May, it won its class at the Villa D’Este Concours d’Elegance. Call that a triple crowned comeback and then some — with the help of a stalwart insurance policy.
Renting EVs more convenient and cost-effective: Samarth Kholkar, CEO & Co-Founder, BLive EVs are a far more economical option compared to ICE vehicles and renting an EV is more convenient and cost-effective, feels Samarth Kholkar- CEO & Co-Founder of , a startup that offers a wide range of EVs and related services through a digital platform. In his response to our questionnaire, Kholkar said that India's EV market has great potential. He also discussed EV subsidies, BLive's financials, and business plans. Edited excerpts: Tell us something about BLive At BLive, we are on a mission to drive the adoption of sustainable mobility. My co-founder Sandeep and I, come from corporate backgrounds and always had the vision of creating something that could drive positive and meaningful impact and we chose electric vehicles as they are a perfect fit to addressing the current growing transport need of our country. Three key barriers are restricting the mass adoption of EVs, which we refer to as the 3 ‘As’- Awareness, Accessibility and Affordability. When we started in 2018, we observed that people had limited Awareness of EVs, surrounded by a lot of myths and misconceptions. Our primary focus was to raise awareness and provide EV education. The second barrier is accessibility. We are addressing this by offering multiple brands on one platform and ensuring access to a reliable charging network and robust service support. Lastly, we offer affordability of EVs, focusing on flexible ownership models not just for personal users but also for commercial mobility. What's your business model? How is it different from other market players? We are India’s only “One Stop” platform for electric mobility. We have brought the entire EV ecosystem on one platform solving for the challenges faced by last-mile mobility providers. Our platform offers a range of EVs across form factors, Flexi finance and leasing solutions, and lifecycle support for Ezy Rental operators making them efficient and profitable. Our uniqueness is our growing network of EV Hubs that provide after-sales support to Ezy Rental operators. The BLive hubs also offer EVs for sale and rental, charging, EV retrofitting, and soon even resale of used EVs. No other company in the Indian EV industry offers the same. We have an asset lite business model creating a win-win for the entire ecosystem - OEMs fleet operators and service providers. EV hubs and micro fleet operators get a choice of brands and multiple ownership models to offer to their end customers. BLive has EV rentals, EV business, and many other verticals. How have things panned out so far? Like any startup, we have gone through our evolution— addressing critical problems for EV users. Our platform has created verticals which address the lifecycle of the EV user starting from making it easy to own an EV to ensuring the ownership process is seamless. Our phygital approach adds on-ground capability instilling confidence in EV our users before embarking on
user starting from making it easy to own an EV to ensuring the ownership process is seamless. Our phygital approach adds on-ground capability instilling confidence in EV our users before embarking on their EV journey. The traction we've gained is proof of the platform's success. With a presence in over 25 cities across India, we have sold over 3000 EVs, deployed over 1000 EVs in fleets, and partnered with over 60 companies to offer choices and make EVs more affordable. Do you have enough funding in view of the ever-growing competition? Tell me something about your finances. We have built an asset-light model to ensure scalability and the tech platform can integrate the EV ecosystem players to cater to the customer demands. The EV category has garnered significant positive support from investors. Last year, startups across the board in the EV sector successfully raised funds, from EV manufacturers to EV finance companies, all securing support from marquee investors and continuing to do so. BLive is in a unique position to play a definitive role in the EV sector. We have raised 2 million USD so far as part of our pre-Series A fundraises. As a first mover in the EV category, BLive is backed by investors such as Ankit Agarwal (Founder, Insurance Dekho), Apurva Chamaria (Google Ventures), Jitendra Nagpal (ex-CFO Pharmeasy, Zepto), and Angel Networks like Mumbai Angels & LetsVenture, along with early-stage funds like Trescon Global. We are now raising our Series A, and the funds will primarily be allocated to building technology and onboarding key roles within the organization. You have partnered with Ather and now TVS. Any particular reason for choosing high-end E2Ws? As a multi-brand platform, we offer choice of brands and product categories to our customers so that they can pick an EV which is best suited for them. That's why not just Ather and TVS, we have also partnered with Ola, Revolt, Bounce and many other EV brands across the price bands and form factors. We also offer top brands of commercial 3-wheelers and loaders to our customers along with charging capability. You have mentioned plans to go pan-India. Any timeline? BLive already has an established presence in over 25 cities spread across 9 states. We are committed to extending our presence across India and aim to open 100 multi-brand EV hubs by the end of 2024. We are also focused on making inroads into Tier 2 and 3 cities of India where there's enormous scope for growth for the EV sector. Similarly, with the growth of India’s digital footprint and the overall e-commerce industry, there has been a significant increase in demand for last-mile deliveries, not just in metros but also in smaller cities. With our Ezy Rental service offering, we will be able to bridge the gap between demand and supply of EVs to ensure that every delivery in every town is a green delivery. How do you see the renting business model in the future vis-a-vis competitors? BLive EZY Rental is committed to driving
supply of EVs to ensure that every delivery in every town is a green delivery. How do you see the renting business model in the future vis-a-vis competitors? BLive EZY Rental is committed to driving sustainable last-mile mobility for fleet operators. Our decentralized rental model introduces Flexible Ownership Models, making fleet ownership easily accessible. With a variety of EVs and services, thanks to our partnerships with multiple EV OEMs and service providers, we ensure the right vehicle and after-sales support for our users. The incorporation of Fleet Management Tech further enhances the experience, providing a connected platform for seamless fleet, delivery agent, payment, and analytics management. Whether you choose to buy, rent, or lease a fleet, our goal is to deploy 1 Million EVs for our fleet in the next 5 years. Our asset lite and tech-based model allows us to expand to tier 2/3 towns in the future as well which are rapidly growing for E-commerce and food delivery operators. As a roadmap, we also plan to offer services which cater to end-of-life EVs through resale and battery recycling. Why should people rent EVs? Gig workers usually do not have the financial history to get loans for buying EVs. They also realize that EVs are a far more economical option compared to ICE vehicles. Hence, renting an EV is more convenient and cost-effective. BLive wants to ensure that EVs are accessible and affordable to everyone by offering customized solutions. The rental offerings include monthly rentals for both low-speed and high-speed vehicles. We have introduced premium vehicles like Ather and TVS iQube, recognizing that this audience also has aspirations, and premium vehicles should be accessible to them. To make it even more lucrative for them, we have introduced a unique rent-to-own model, meaning that after a certain tenure, the delivery executive can actually own the vehicle. This has received a positive response even in places like Ahmedabad and Hyderabad. In the US, car rental giant Hertz dumped EVs in view of falling prices. Do you think EV prices will fall in India too? EV rentals as a use case in India are very different from the US. Here, the primary user is the delivery executive who engages in deliveries with an e2W or e3W. The lowering of prices will actually help in higher adoption if it does happen. Currently, India has less than 5% of EVs in the annual sales of all vehicles. So, there is tremendous growth possible, which is needed. The opportunities are even more in Tier 2 and 3 cities where the penetration has been comparatively less until now. Does the electric two-wheeler industry need subsidies to survive and grow? The favorable policies and initiatives by the government will be instrumental in the growth of the entire EV sector. Including EVs in the Preferred Sector Lending (PSL) and reducing the Goods and Services Tax (GST) on batteries from 18% to 5% will bring down the cost of EVs, thereby making them more affordable to
Including EVs in the Preferred Sector Lending (PSL) and reducing the Goods and Services Tax (GST) on batteries from 18% to 5% will bring down the cost of EVs, thereby making them more affordable to own. I am also hopeful about policy measures that promote the adoption of electric vehicles (EVs), including the extension of subsidies to make EVs more economical and offering incentives for conversion kits to transform internal combustion engine (ICE) vehicles into electric vehicles. What do you do with the old EVs? BLive is an asset-light company, and we do not hold stock of EVs. As for old EVs, we recommend recycling and repurposing of batteries. We are already working on an AI-based platform to define the resale value of old EVs.
IRDAI proposes third-party motor insurance premium cars, two-wheelers for FY 2022-23 The Insurance Regulatory and Development Authority of India ( ) has issued a draft notification with the rates for cars, two-wheelers, and other for the financial year 2022-23 The IRDAI has not changed the tariffs in the last two fiscal years (FY 2020-21 and FY 2021-22). As a result, the rates set by Irdai for FY 2019-20 have remained unchanged until today There is a suggested discount on some vehicles that will encourage people to drive environmentally friendly cars. The following are the suggested Motor Third Party Premium rates for FY 2022-23 for various vehicle categories Hybrid vehicles to increase adoption of environmentally friendly technology. Most importantly it will help form a stable pool of premium for third party claims which are often delayed or stuck in legal processes.
Shishir Mishra elevated as brand director for Citroen in India has elevated as the Brand Director for in India effective immediately. In his new role, Shishir will be responsible for steering the brand's strategic initiatives and strengthening Citroen's presence and impact in the , the company said. Shishir Mishra brings with him a wealth of experience garnered over 24 years in the automotive and banking and financial services industry. Prior to his appointment as Brand Director, Shishir served as the Head of Sales and Marketing synergy functions for and Citroen in India, where he played a pivotal role in leading Aftersales Operations, Dealer Network Development, Finance and Insurance, Demand and Distribution, and Selling Online, the company said in a media release. , CEO & Managing Director, India, said, "We are delighted to appoint Shishir Mishra to lead Citroen in India. His experience, coupled with his proven track record of delivering results, makes him the ideal candidate to intensify Citroen's brand strategy in this dynamic market. I am confident that under his leadership, Citroen will continue to innovate and excel, further solidifying its position towards a leading automotive brand in India." Shishir Mishra said, "I am excited to take on this role at an important juncture for the brand and the automotive industry. I look forward to leverage Citroen's rich heritage and innovative spirit to strengthen our position in the Indian market, working closely with our dealer partners to deliver exceptional experiences to our customers and drive sustainable growth for the company." A post-graduate in Sales and Marketing, Shishir joined Stellantis in 2018 as part of the core team responsible for the launch of Citroen in India. Since then, he has demonstrated leadership across various functions, augmenting process and standards towards the brand's development in the region, the company release said.
Large pickup trucks fare poorly in protecting back seat passengers Four fared poorly in protecting back seat passengers in tests measuring how those passengers fare in some crashes, the said on Tuesday. said the 2023 model Ram 1500 crew cab, Ford F-150 crew cab and General Motors Chevrolet Silverado 1500 rated poorly in updated moderate overlap front crash tests, while the 2023 Toyota Tundra crew cab received a marginal rating. "Like most other vehicle classes, large pickups don't perform as well in the new moderate overlap evaluation as they do in the updated side test," said IIHS President David Harkey. IIHS is an industry group that prods automakers to build safer vehicles by conducting crash tests and issuing ratings. It started using an updated moderate overlap front test in 2022 after research showed risks of a fatal injury is higher for belted occupants in the second row of newer pickup trucks than in the front. IIHS said front seat safety has been boosted by improved airbags and advanced seat belts typically not available in the back. All four pickups provided good protection in the front seat but restraint systems in the back were inadequate, it said. Toyota declined to comment. GM said "while we are very confident in the overall safety and crash-worthiness of our light-duty crew cab, we appreciate what the IIHS has done with its new rear seat test protocols." Ford noted the recent test changes and said "safety is a top priority." Stellantis said "we routinely consider third-party ratings and factor them into our product-development process, as appropriate." The updated side test was introduced to address higher-speed crashes that are still causing fatalities. The updated test uses a heavier barrier traveling at a higher speed to simulate the striking vehicle. Traffic deaths jumped sharply during COVID-19 and remain significantly above pre-pandemic levels. The number of people killed in the first six months of 2023 fell to the lowest number since the same period in 2020 but was still higher than the first half of any pre-pandemic year since 2006. In traffic crashes in 2021, 60% of pickup drivers who were killed were unrestrained - higher than other categories of vehicles.
HDFC ERGO launches ‘All Things EV’ platform for present and future EV customers New Delhi: , a private sector general insurance company, has launched ' ,' a one-stop-solution portal for (EV). In line with the Government of India’s push for electric mobility, this initiative caters to the needs of existing and potential EV users, it said. As a part of this initiative, the company has unveiled a dedicated platform for the existing and prospective EV ecosystem users, which hosts end-to-end information on this emerging sector; the platform caters to all Indians who have either purchased EVs or are planning to buy EV or to make an earning out of the booming EV space. The platform has a roadmap with features like slot booking at charging stations, roadside assistance, RTO services and creation of an EV community. The platform helps the existing users with information on nearby charging stations, locations of charging stations along the route for intercity commute and rich content around the maintenance of their EVs, said the company in a media release. Potential EV buyers can get information on all the EV options available in India, along with the cost of ownership and subsidies offered by different state governments. Anyone looking to set up charging stations can also find out the available options of charging units, and the associated cost and profitability metrics. Parthanil Ghosh, President, Retail Business, HDFC ERGO General Insurance Company, said, “As an insurer who is committed to the sustainability goals under various climate protocols, we recognize our responsibility in supporting India’s aspirational EV roadmap to ensure a greener and sustainable future for ourselves. A supportive policy environment, increasing customer awareness of green technology, availability of electric vehicle models across the value chain along with improved charging infrastructure, has poised the Indian EV market for significant growth in the next few years. Through ‘All Things EV,' we aim to provide a one-stop-shop solution to all the required information related to EVs for all the existing EV users or prospective customers which we believe will contribute toward faster adoption of this environment-friendly mobility solution.”
ACKO partners with Ola and Ather for extended battery warranty program New Delhi: has launched a unique Extended Battery Warranty plan in partnership with OEMs such as and . The Electric Vehicle (EV) market saw its all-time high in 2022 with a 223% growth in sales. This is expected to grow at a CAGR of 44.5% between 2020 and 2025. Despite the soaring demand, customer apprehensions on multiple factors are posing as detrimental to the vast adoption of Electric Vehicles. As per a research report titled ‘Is the Future Electric?’ by ACKO and YouGov India, over 49% of EV car owners believe that battery replacement costs form a substantial part of EV ownership. Additionally, while 66% of the respondents assume that battery life only lasts between two to five years, a majority of EV users believe that charging behavior has a definite role to play in the vehicle's battery life. ACKO’s Extended Battery Warranty plan assuages customer concerns around the battery life and performance. The partnership with OEMs will improve the EV affordability where the banks will be able to extend the loan duration for vehicles and reduce the EMI installments. The plan protects the battery life till the fourth or the fifth year and provides performance coverage for up to 60,000 kms. Under the comprehensive plan, are also covered in addition to the battery. The uniqueness of the plan is that it is transferable to the new owner in the event of sale. The cost visibility factor for the battery and other parts of the vehicle enables a better resale value. "The Indian EV journey is an aggressive growth story which has propelled the demand for customized protection solutions amongst customers. Our research report found a demand for these solutions from 79% of the respondents. The report also underlined that 67% of EV owners want to own an insurance policy with their Electric Vehicles. This is a positive sign from the new age customers who have evolved preferences and want to adopt environmentally safer alternatives for the ecosystem. We are confident that with our partnership, OEMs will be better equipped to answer the doubts in customer minds about longevity and performance of the Electric Vehicle. This will indeed ease the lives of our customers and promote a nationwide rapid adoption of EVs,” Animesh Das, VP - Motor Underwriting, ACKO, said.
India-Russia oil trade: What is at stake? In order to shield the economy from the negative impact of the recent surge in , India is exploring the possibility of importing additional oil at discounted rates from Russia, which is facing sanctions and global backlash due to the Ukraine conflict. According to commodities data and analytics firm Kpler, India's import of from Russia in March this year so far is nearly four times higher when compared with the corresponding period of last year. India's import of crude oil from Russia stood at around an average of nearly 360,000 barrels a day in the first half of this month. As per the current shipment schedules, the average oil trade between the two countries is estimated to be around 203,000 barrels per day. "Already committed oil cargoes from Russia that can't find buyers in Europe are being bought by India," Financial Times quoted Alex Booth, head of research at Kpler, as saying. "Exports to India surged in March before any official announcement by New Delhi," Booth said. There is no government-to-government (G2G) arrangement for oil trade between India and Russia. The majority of the crude oil purchase from Russia for India has been done by Indian Oil Corporation. Although the United States has acknowledged that crude oil purchases by India would not violate US sanctions, it has warned that it would put India on the wrong side of history. The US has been putting increasing pressure on India to distance itself from Russia. White House Press Secretary Jen Psaki said on Friday in Washington that the United States is in touch with the Indian leaders at various levels over the issue of India's decision to buy oil from Russia at discounted rates. "We will project and convey to any leader around the world is that the rest of the world is watching, where you are going to stand, as it relates to this conflict, (and) whether it is support for Russia, in any form as they are illegally invading Ukraine," Psaki said. India has so far adopted a neutral approach in the Russia-Ukraine conflict. It is among the few countries that have not condemned Russia's invasion of Ukraine. India also abstained from voting on a US-sponsored resolution deploring Russia's aggression against Ukraine. India's decision to increase crude oil trade and economic engagements with Russia would have huge diplomatic and economic ramifications. It is important to note that India is heavily dependent on imports to meet its oil requirements. Nearly 85 per cent of the country's average daily crude oil requirement of around 5 million barrels is met through imports. The rise in crude oil prices put huge pressure on the Indian economy. High crude oil prices pose inflationary, fiscal, and external sector risks. India's budget calculations for the financial year 2022-23 have been made with an assumption of crude oil price of $70 to $75 per barrel. Crude oil prices have surged due to the Russia-Ukraine conflict. It soared to near $140 a barrel earlier
year 2022-23 have been made with an assumption of crude oil price of $70 to $75 per barrel. Crude oil prices have surged due to the Russia-Ukraine conflict. It soared to near $140 a barrel earlier this month. Being a major importer India has to keep exploring competitive prices. A heavy discount offered by Russia is an opportunity. It is extremely important from the perspective of the Indian economy. Commenting on the India-Russia oil trade, spokesperson for the Arindam Bagchi said being a major importer of looks at all options at all points of time. "India does import most of its oil requirements, it's met by imports. So we are always exploring all possibilities in global energy markets because of this situation that we face importing our oil requirements," Bagchi said. Russia is the second-largest exporter of crude oil behind Saudi Arabia. Nearly three-fourth of Russia's crude oil exports go to OECD member countries. Major European countries like Germany, France and Italy, who are also members of the North Atlantic Treaty Organization (NATO), are heavily dependent on the Russian oil supply. If the NATO member countries continue to import Russian oil due to economic reasons, India must also give primacy to the economic interest. One major challenge in the India-Russia oil trade is the payment system. According to sources, the two countries have been exploring the possibility of setting up a rupee-rouble trade mechanism for paying for oil and other goods. Apart from the payment mechanism, there are several other issues that need to be worked out. It includes insurance and freight. In the time of military conflict, the insurance cost goes up substantially. India's import of oil from Russia has traditionally been low due to high freight costs. Union Minister for said in the Rajya Sabha recently that the Indian government was evaluating the Russian offer of crude oil import at discounted rates. "Discussions are currently underway. Several issues are required to be gone into, like how much oil is available either in Russia or in new markets or with new suppliers that may be coming into the market. Also, there are issues relating to insurance, freight, and a host of other issues, including the payment arrangements," the minister had said. Russia has been among the closest and most reliable allies of India. It is by far its biggest arms supplier to India. According to data available with the Ministry of External Affairs, Russian Investments in India stand at $18 billion while the Indian investments in Russia stand at $13 billion. The trade balance is in favour of Russia. India's imports from Russia stood at $7.75 billion while India's exports to Russia stood at $3.22 billion in 2018. Despite the threats of US sanctions, Prime Minister Narendra Modi government in 2018 entered into a $5.43 billion deal with Russia to buy S-400 defence system. The delivery of the missile system began in 2021. However, India needs to make a cautious move. The United
in 2018 entered into a $5.43 billion deal with Russia to buy S-400 defence system. The delivery of the missile system began in 2021. However, India needs to make a cautious move. The United States and other western allies are also crucially important. Also Read:
Charting the global economy: 'Reglobalization' in the face of economic and geopolitical challenges Global central banks are pausing or nearing the end of their interest-rate hiking cycles as shows signs of slowing and recession concerns mount. Policymakers in Canada and Kazakhstan signaled they may soon hold steady, while central bankers in Brazil and Poland left their key rates unchanged for a third-straight meeting. Next week, the Federal Reserve is expected to step down its pace of rate increases but will likely determine it’s too soon to discuss a pause. Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy: World A US-China trade war, a global pandemic, Brexit and Russia’s war in Ukraine have rattled the once-entrenched ways that the world’s largest economies trade with each other. The shifting contours of the global trading system mark a kind of “ ” where multinational companies are adapting their trade networks to accommodate the new economic and geopolitical challenges. Australia’s central bank raised its key to a 10-year high and said it expects to tighten policy further as it seeks to cool the hottest inflation in three decades. Canada and Kazakhstan both raised rates but signaled a pause may be coming, while Brazil and Poland held steady. A backlog of oil tankers at the Turkish straits continues to build up as negotiations failed to produce a solution to an insurance glitch caused by sanctions on Russian crude. Twenty-six tankers holding more than 23 million barrels of oil from Kazakhstan were unable to pass the Bosphorus and Dardanelles straits as of Wednesday, shippin g da ta compiled by Bloomberg showed. Asia China’s exports and imports both contracted at steeper paces in November as external demand continued to weaken and a worsening Covid outbreak disrupted production and cut demand at home. Exports in dollar terms fell almost 9% in November from a year earlier, the biggest slide since February 2020. Japan’s economy took a smaller hit than first thought during a summer marked by a renewed Covid surge and a plunge in the yen, with a return to growth expected this quarter. Still, consumption was weaker than first thought, raising concerns about the economy’s resilience. Australia’s economic expansion decelerated in the three months through September as imports jumped, reflecting strong consumption and households’ resilience to the Reserve Bank’s interest-rate increases. Europe German factory orders rose in October, a sign of hope for manufacturers in Europe’s largest economy as they struggle with inflation and elevated energy costs due to Russia’s war in Ukraine. Hungarian inflation accelerated toward one of the European Union’s highest levels as a deepening rift between Prime Minister Viktor Orban and the central bank raised questions about economic policy. Consumer prices rose 22.5% in November from a year ago. US Producer prices rose in November by more than forecast,
Minister Viktor Orban and the central bank raised questions about economic policy. Consumer prices rose 22.5% in November from a year ago. US Producer prices rose in November by more than forecast, driven by services and underscoring the stickiness of inflationary pressures that supports Fed interest-rate increases into 2023. The producer price index for final demand climbed 0.3% for a third month and was up 7.4% from a year earlier. The monthly gains for October and September were revised higher. Recurring applications for US unemployment benefits rose to the highest since early February, suggesting that Americans who are losing their job are having more trouble finding a new one as the labor market shows tentative signs of cooling. Continuing claims have now strung together the three largest increases since May 2020. Emerging Markets South African consumer confidence recovered to its strongest level in two years in the fourth quarter as households anticipated better employment prospects and an improvement in their finances. Turkish inflation slowed for the first time in over a year and a half, though measures to revive the economy ahead of elections in 2023 may keep it elevated for some time. Consumer prices rose an annual 84.4% in November, down from 85.5% the previous month. At least 15 of the 72 emerging markets in a Bloomberg index now have dollar debt trading at distressed levels, after Russia’s invasion of Ukraine fueled global energy and food price inflation. Although there has been a small rally in the bond market in recent weeks, distressed debt in emerging markets remains a serious weak spot in a global economy preparing for recession. --With assistance from Beril Akman, Baris Balci, Bryce Baschuk, Christopher Condon, Ekow Dontoh, Selcuk Gokoluk, John Liu, Alex Longley, Ana Monteiro, Neil Munshi, Yoshiaki Nohara, Swati Pandey, Reade Pickert, Augusta Saraiva, Zoe Schneeweiss, Zoltan Simon, Sherry Su, Monique Vanek, Alexander Weber, Erica Yokoyama and Lin Zhu.
Pakistan plans to procure Russian crude oil at USD 50 per barrel Cash-strapped is making concerted efforts to procure Russian crude oil at USD 50 per barrel, at least USD 10 per barrel less than the price cap imposed by the G7 countries due to 's invasion of , media reports said on Sunday. Crude oil is currently being sold globally at USD 82.78 per barrel. Pakistan, which is currently grappling with high external debt and a weak local currency, is desperate to purchase cheap crude at discounted rates from . Moscow will respond to Pakistan's request for discounted crude oil only after it completes formalities such as mode of payment, shipping cost with premium and insurance, according to The News. The first consignment of crude oil from Moscow is scheduled to arrive in Pakistan by the end of next month, paving the way for a bigger deal in the future, the paper said. The shipping of crude oil from Russian ports will take 30 days, which would mean an increase of USD 10-15 per barrel due to the transportation costs, it added. Russia was initially concerned "over the seriousness of Pakistan to mature the oil deal," but in a recent meeting between officials from the two countries, Moscow asked Islamabad to import "one oil cargo" as a test case to bridge the trust deficit, according to The Express Tribune newspaper. Pakistan will first import one Russian crude oil ship to test landed cost, The News reported. Since Pakistan is facing a US dollar liquidity crunch, it would pay Russia in the currencies of friendly countries that include , Saudi Arabia, and , it said. In December last year, Russia refused to provide Pakistan with a 30 per cent discount on its crude oil after the Pakistani delegation asked for a reduction in price. Energy accounts for the biggest share of Pakistan's imports, and cheaper oil from Russia will help Pakistan in containing the ballooning trade deficit and balance-of-payments crisis. As Pakistan continues to suffer from a severe shortage of foreign exchange reserves, any short or long-term deals with Russia to take crude and oil products at low prices would help reduce the nation's financial burden. Pakistan's foreign exchange reserves, which fell to a critically low level of USD 2.9 bn a few weeks ago, have now risen closer to USD 4 bn , even as the country eagerly waits for the USD 1.1 bn tranches of funding from the , according to the estimates. The reserves at the start of the fiscal year on July 1, 2022 were around USD 10.309 bn , registering a drop of USD 7 bn in just seven months. The cataclysmic floods last year inundated a third of the country, displaced more than 33 mn and caused economic damages to the tune of USD 12.5 bn to Pakistan's already teetering economy.
Auto strikes to reduce US payrolls count in October Strikes by members of the ( ) union including against Detroit's could subtract at least 29,000 jobs from U.S. nonfarm payrolls in October, government data showed on Friday. The 's monthly strike report showed 25,300 workers were idle at assembly plants owned by Ford Motor, General Motors and Chrysler parent Stellantis nationwide during the October payrolls count period. Another 4,000 UAW members were on strike at in Florida, Maryland and Pennsylvania during the survey period in mid-October. About 1,100 other UAW members walked off the job at Blue Cross Blue Shield in Michigan during the same period. It is not clear whether these workers who are in the direct life, health and medical insurance carrier industry were part of the broader industrial action by the UAW against the automakers. Striking workers who do not receive a paycheck during the period that the government surveys business establishments for the employment report are treated as unemployed. The UAW launched limited strikes on Sept. 15, which expanded in October. The work stoppages have disrupted supply chains, resulting in the three automakers furloughing and laying off thousands of non-striking workers. The hit from the strike will likely come through a decline in manufacturing employment, where payrolls have been rising moderately. The government will publish its closely watched employment report for October next Friday. According to a Reuters survey of economists, nonfarm payrolls likely increased by 172,000 jobs last month. That would be a big step-down from the 336,000 jobs added in September, the most in eight months. Still, job growth would more than exceed the roughly 100,000 positions needed per month to keep up with growth in the working age population, testament of the labor market's resilience despite massive interest rates hikes from the Federal Reserve to cool demand in the economy. Ford and the UAW reached a tentative deal this week. General Motors and the UAW were in intensive discussions on Friday to reach an agreement. Talks with Stellantis were scheduled to resume soon.
Ramesh Iyer on why second-hand car market may see a boom “Today, the pre-owned vehicles are not really very old vehicles. They are all three-year-old, two-year-old vehicles. Therefore they are all well maintained vehicles and therefore people do see it as a good buy so we definitely believe that the demand will hold on,” says , MD & VC, How has the vehicle business been doing? We have seen the channel checks are talking about a big pick up activity when it comes to the hatchbacks and the SUV category, in particular? The second-hand car demand is very high and we see people wanting to buy a second hand car. It comes at the back of two or three things. One, there is a delay in availability of the new vehicles and so if people want a car, they may prefer to go for a second hand car. Second, for some of the segments, the new car price is very high and if the use is very limited, may be they are looking at pre-owned vehicles. The demand is definitely high and the supply is very weak probably because the last whole year, the financials reprocessed not many vehicles. Therefore they are not putting out too many vehicles to sell. Second, with the non-availability of new vehicles, the exchange programmes are going slow and therefore the supply has been impacted. Put these two together and we believe the demand will hold on and it is very high. So demand is high but going forward are you expecting demand destruction? There is inflation at play. The cost of funds will also be going up. We have already seen the surprise move by the RBI last week? That is the reason why pre-owned vehicles will do even better. If the cost is going up, the vehicle price will go up and people would probably think twice before investing in a new vehicle if a good second hand vehicle is available. We do find new segments of customers coming in. We are seeing some of the two-wheeler users graduating to smaller pre-owned vehicles. All of this is driving the demand and I expect this demand will continue because the price is something that people will put in only if they can afford and therefore they will compare the new vehicle with a pre-owned vehicle. Today, the pre-owned vehicles are not really very old vehicles. They are all three-year-old, two-year-old vehicles. Therefore they are all well maintained vehicles and therefore people do see it as a good buy so we definitely believe that the demand will hold on. What is the average ticket size for the loans? The ticket sizes are around Rs 2 lakh, 2.5 lakh, 3 lakh, maximum Rs 4-5 lakh. We are in the small segment. We are not in the luxury pre-owned vehicle financing segment since we do a lot of activity in the semi-urban and rural markets and there the requirements are for vehicles in the Rs 2-4 lakh range. Typically when interest rates go higher, the second hand finance rates also go higher; then comes the question of affordability. How sensitive is the second hand car market in terms of interest rate hike? One has to look at it as
go higher, the second hand finance rates also go higher; then comes the question of affordability. How sensitive is the second hand car market in terms of interest rate hike? One has to look at it as the gap between a new vehicle buying rate and the second hand vehicle buying rate. If the gap of interest rate today is let us say 2% or 3%, they would continue to remain, I do not think only the pre-owned vehicle rate will go up and the new vehicle interest rate will not. So, that is the first thing. Second, if somebody is putting in Rs 3 lakh and if 0.5% interest was to go up, 0.5% interest on Rs 3 lakh is Rs 1,500 for a year and so that is not going to really decide whether one should buy or not buy. The second-hand vehicle buy comes from two angles; one, how good is the car and how well is the price that you can negotiate for it and what is your real use of the vehicle. If you are going to use the vehicle for a long distance on a very regular basis, people will prefer a new vehicle because you do not want higher maintenance coming up again. Normally, second hand vehicles have a very limited use where it is not very high maintenance. Therefore my personal belief is 0.5% increase in rate should not kill the demand. We always look at developed markets, especially the United States to understand trends. If a trend has happened in the US, it will come back to developing markets like India. But in the second hand vehicle business, the US and developed countries have very large markets, unfortunately we do not have such a large market. I think one of the reasons is availability of good cars. It is only now that we have organised players who trade in vehicles; they refurbish and maintain the vehicle, offer even extended warranty on the vehicle. Those trends are just about coming in. Even five years back, vehicles were not as well maintained, documentation was a challenge and one was not sure about the RC transfers, the tax implications and all of that. All that is behind us, very clearly now the documents are very clean, vehicles are insured and well with extended warranty. Price discovery is very good and people are also not using the vehicle for a very long time before selling them. So, the quality of the asset has gone up. I would think that now everything is in place for this market to really explode. Second, it has been a very urban kind of market for long, Now we are seeing it go deeper into the pocket.
Oil rises as supply concerns persist By Rowena Edwards LONDON: climbed for a third straight session on Friday, shrugging off concerns about global economic growth as impending European Union sanctions on Russian oil raised the prospect of tighter supply. futures rose 85 cents, or 0.77%, to $111.75 per barrel by 1346 GMT, while U.S. West Texas Intermediate ( ) crude climbed 72 cents, or 0.67%, to $108.98 a barrel. Both contracts were up over $2/bbl earlier in the session, and are on track to rise for a second consecutive week, buoyed by the EU's proposal to phase out supplies of Russian crude oil in six months and refined products by the end of 2022. It would also ban all shipping and insurance services for transporting Russian oil. The EU is tweaking its sanctions plan in a bid to win over reluctant states, three EU sources told Reuters on Friday. "The looming EU embargo on Russian oil has the makings of an acute supply squeeze. In any case, OPEC+ is in no mood to help out, even as rallying energy prices spur harmful levels of inflation," PVM analyst Stephen Brennock said. Ignoring calls from Western nations to hike output more, the Organization of the , Russia and allied producers, a group known as OPEC+, stuck with its plan to raise its June output target by 432,000 barrels per day. However, analysts expect the group's actual production rise to be much smaller as a result of capacity constraints. "There is zero chance of certain members filling that quota as production challenges impact Nigeria and other African members," said Jeffrey Halley, senior market analyst Asia Pacific at OANDA. A U.S. Senate panel has advanced a bill that could expose OPEC+ to lawsuits for collusion on boosting oil prices. Investors are also eyeing higher demand from the United States this fall as Washington unveiled plans to buy 60 million barrels of crude for its emergency stockpiles. Demand concerns on signs of a weakening global economy capped the price rise. The Bank of England on Thursday warned that Britain risks a double-whammy of a recession and inflation above 10% as it raised interest rates to their highest since 2009, hiking by a quarter of a percentage point to 1%. And strict COVID-19 curbs in China are creating headwinds in the second quarter for the world's second-largest economy. Also Read:
Surging shipping costs give companies a sinking feeling The global shipping industry is facing a deja vu of the pandemic era, and its impact is cascading across sectors. Spot have soared around 105% in the past three months and a severe is hurting industries from agriculture to automotive. The has worsened supply chain disruptions, affecting food shipments, too. expects relief from spiralling freight rates in 4-6 weeks, while Adani Ports and Special Economic (APSEZ) predicts sustained challenges through the upcoming season. Spot freight rates have skyrocketed since the start of this fiscal to USD 5,806 per 40 freight ton (ft) as of July 25, according to Drewry's World Container Index (WCI). It is, however, still lower than the Covid-era peak of USD 10,377 per 40ft in September 2021. However, according to companies, the mix of strong consumer demand, supply chain disruptions, and equipment shortages are reminiscent of disruptions seen during the pandemic. The container shortage has started to impact companies in the . Echoing concerns about the current scenario, , the country's largest exporter of motorcycles and three-wheelers, compared it to the pandemic-era challenges. "The situation is as severe as it was during Covid times, if not more. In the last six months, freight rates to most destinations in Latin America and Africa have doubled. Availability of containers is also an issue," said Rakesh Sharma, executive director, Bajaj Auto. Bajaj Auto exports to nearly 100 countries across South Asia, Southeast Asia, Africa, and Latin America. Tyre maker saw a 3-percentage-point drop in profit margin in the June quarter due to higher input costs. Prices of natural rubber, one of the key raw materials in tyre manufacturing, spiralled, hurting companies as India imports half of its natural rubber requirement. Higher freight and container rates aggravated the situation. The Shanghai Containerised Freight Index (SCFI), which tracks container freight rates from China to various global markets including India, surged more than threefold to around USD 3,700 twenty foot equivalent unit (TEU) last month from around USD 1,000/TEU before the Red Sea crisis. India is heavily dependent on the Suez Canal for 35% of its foreign trade with Europe, North Africa, and the Americas, mostly in containers. The Red Sea crisis has forced ships to detour around the Cape of Good Hope, escalating freight rates and insurance premiums. Another sector disrupted by the crisis is foodgrain and perishable shipments, impacting low-value freight, comprising 10%-15% of total volumes. Maulesh Desai, director at CareEdge Ratings, forecast 8% growth in container volumes to 342 MMT this fiscal. He, however, believes that rising shipment costs are further eroding already slim profit margins. Furthermore, Ajay Sahai, director general, Federation of Indian Export Organisations (FIEO), said: "Because of the impact at sea, exporters, especially in fashion apparel, footwear and high value
Furthermore, Ajay Sahai, director general, Federation of Indian Export Organisations (FIEO), said: "Because of the impact at sea, exporters, especially in fashion apparel, footwear and high value perishables are moving to air cargo." As a ripple effect, this is causing a demand-supply mismatch in the air cargo segment too due to insufficient freighters to meet the demand surge and delays in picking up cargo. Companies have a mixed view of when the scenario will get better.
Repair or replace? Insurers in this country sending electric cars to junk yards due to mechanic shortage Electric car sales already are in a funk in key markets around the globe. Challenges finding enough repair technicians threatens to further stifle demand in the UK, where consumer uptake has stagnated for the better part of two years. A dearth of mechanics trained to handle the most advanced EV fixes is helping to drive up repair costs, according to insurers and repair companies like the AA, which provides roadside assistance across the UK. Add in expenses like long wait times for replacement parts, and underwriters are opting to total cars with relatively benign damage — prematurely consigning electric models to the junk heap. A seemingly simple crash that damages the battery or the compartment housing it “can cause a complete write-off of the vehicle,” said Marco Distefano, managing director of insurer Axa SA’s UK retail division. “Ultimately, that pushes up the price of insurance.” Fewer than 10% of the UK’s 236,000 auto mechanics are qualified to work directly on EV batteries or their cases, according to the Institute of the Motor Industry, which provides training and certification. While many technicians can perform less-demanding tasks, the most challenging repairs require extra training, given the complexity of the circuits and risk of electrocution. “The ante is risen quite a lot because you are dealing with no mistakes really,” Darren Naughton, an AA trainer, said during a visit in Birmingham. “It’s instant death on these systems.” Drivers are also concerned that a collision is more likely to lead to an EV writeoff, according to UK consultants Thatcham Research. Long lead-times for deliveries and a shortage of functioning charge points are also holding back demand for the environmentally friendly vehicles, it said in a report last year. With 1 million EVs on the roads already, the crunch is forecast to get worse. Repair shops are starting to train up staff, but the UK will still be short by about 30,000 qualified technicians by 2035, when a ban on the sale of new combustion vehicles takes effect, according to IMI estimates. UK sales of battery-electric vehicles have tread water as a share of the market since 2022. They stood at 15% in March, according to the Society of Motor Manufacturers & Traders. Insurance costs are double those of conventional vehicles, Bloomberg reported in January. UK Sales of Battery-Electric Cars Have Gone Stagnant \| Monthly EV registrations as share of overall passenger-car market. Other factors are helping to skew insurers’ once-straightforward decision on whether to repair or replace a car after an accident. Replacement parts are expensive and take longer to arrive from abroad, adding to downtimes for damaged cars and driving up ancillary costs like car rentals. When the settlement cost approaches or exceeds the value of the vehicle, the insurer will typically take ownership and either scrap it, break it up
and driving up ancillary costs like car rentals. When the settlement cost approaches or exceeds the value of the vehicle, the insurer will typically take ownership and either scrap it, break it up for parts, or fix and sell it again if the damage is minimal. UK auto dismantler Synetiq has seen a 55% increase in electric car and van disposals over the past year, it said on its its website. It’s set up an operation to recycle expensive battery materials like lithium and nickel. High repair costs have long dogged EV makers like Tesla Inc., which lacks the dedicated service network of traditional car manufacturers. Hertz Global Holdings Inc., the US rental-car giant, had to junk Teslas when the cost of fixing easily damaged items like radar assemblies sent repair costs through the roof. Many of the cars being disassembled or crushed in the UK are fixable, according to Lee Houston, EV technical liaison engineer at the AA. As soon as a battery is dented or marked, “it’s a replacement, which will write the car off” at a cost of £15,000 (USD 19,000) to £20,000, he said. Other countries have dealt more effectively with the challenges. In Germany, Europe’s largest car market, the lack of skilled workers is less pronounced than in the UK, according to ADAC, the country’s prime supplier of roadside services. There’s no issue with EV competence in Norway, where 82% of new cars sold last year were electric, said a spokesman for the Norwegian Automobile Federation, though there is a general shortage of mechanics. In Sweden, mechanics’ EV skills are improving fast, said the Swedish Association for Motor Retail Trades and Repairs. While the added training required to fix an EV battery doesn’t come cheap, the UK’s challenges aren’t insurmountable. Axa UK put the cost at about £2,500 per mechanic for four days of training — doable for larger chains, though smaller shops will need to decide whether to take the plunge. At Kwik Fit, one of the largest UK car-servicing groups, just 15 out of about 1,500 technicians meet the Level 3 or Level 4 standard required to repair EV battery cells and modules. Ben Boot, Kwik Fit’s head of development for service, maintenance and repair, expects the job to eventually attract a wider pool of candidates more comfortable with diagnostics and electrical engineering concepts. “There’s still an element of the fear of the unknown when it comes to battery repair and getting into the repair of individual cells and modules,” Boot said. Once there are more fully trained EV technicians, “repair rather than replace becomes a more viable proposition.”
Hyundai and Kia thefts keep rising despite security fix Nearly three months ago, and unveiled software that was designed to thwart an epidemic of thefts of their vehicles, caused by a security flaw that was exposed on TikTok and other social media sites. So far, it hasn't solved the problem. Across the country, thieves are still driving off with the vehicles at an alarming rate. Data from seven U.S. cities gathered by The Associated Press shows that the number of Hyundai and Kia thefts is still growing despite the companies' efforts to fix the glitch, which makes 8.3 million vehicles relatively easy targets for thieves. From Minneapolis, Cleveland and St. Louis to New York, Seattle, Atlanta and Grand Rapids, Michigan, police have reported substantial year-over-year increases in Hyundai and Kia theft reports through April. An eighth city, Denver, which was hit early by the theft outbreak, reported a 23% decline from 2022 levels but still endured a high number of thefts. So far this year, Minneapolis police have received 1,899 Kia and Hyundai theft reports, nearly 18 times the number for the same period in 2022. "The scope of the problem is only expanding and is exponentially worse than it has been in the past," Brian O'Hara, the police chief of Minneapolis, said in an email. "We have some weeks where nearly as many Kias and Hyundais are stolen in a week as had previously been stolen in a year." The most recent nationwide numbers on Hyundai and Kia thefts aren't yet publicly available. The figures for early 2023, as calculated by the Insurance Institute for Highway Safety, will be released until later this year. (Hyundai and Kia are part of the same South Korean corporate family.) Some U.S. cities have reported that 60% or more of their reports now involve Hyundais or Kias. Videos on TikTok and other sites that illustrate how to start and steal Kia and Hyundai models - using only a screwdriver and a USB cable - have allowed the thefts to spread across the nation since late 2021. In New York, the Hyundai-Kia theft problem has grown so worrisome that the city held a news conference last last month to offer owners devices that can track their vehicles if they're stolen. Police there reported 966 Hyundai and Kia thefts as of April 30 - nearly seven times the number in the same period of 2022. The disturbing theft rate, which authorities nationally have linked to other crimes including at least 14 reported crashes and eight fatalities, has persisted despite the automakers' unveiling of their anti-theft software campaign in mid-February. "GLA is driving our crime," New York Mayor Eric Adams said, using an acronym for grand larceny of autos. "Kia and Hyundai are driving the GLAs." Hyundai and Kia have said they're accelerating their distribution of the software, with Hyundai saying it's reached 6,000 installations a day. The company says it's using direct mail, phone calls, digital advertising and social media to try to reach the affected owners. Ira
with Hyundai saying it's reached 6,000 installations a day. The company says it's using direct mail, phone calls, digital advertising and social media to try to reach the affected owners. Ira Gabriel, a spokesman for Hyundai, said the company has tried to remove from social media the instructional videos that show how to steal the cars. "But as new ones surface," he said, "there have been additional waves of thefts." Kia said in a statement that it began developing and testing the security software last year. "The process occurred at an accelerated pace and allowed us to begin rolling out the enhanced security software earlier this year in phases," the company said. Safety authorities say the companies' software rollout has been far too slow. Of the 4.5 million Kia vehicles that are eligible for the fix, the automaker says it's installed the software on about 210,000 - nearly 5%. Kia says it has sent notifications to about 2.8 million of the affected owners and expects to have notified all of them by the end of this month. For Hyundai, the figure is about 225,000 out of 3.8 million vehicles - roughly 6%. Hyundai said he expects to have contacted all the affected vehicle owners by May 18. The companies' affected cars, many of them lower-cost models from the 2011 to early 2022 model years, were not equipped with a theft immobilizer. Such a device contains a computer chip in the key that must be recognized by another chip in the steering column before the engines will start. Though most automakers have had the chips for years, Hyundai and Kia have lagged behind the industry as a whole in installing them on many models, thereby allowing thieves to exploit the security gap. In the 2015 model year, immobilizers were standard on 96% of other manufacturers' models but on only 26% of Hyundai and Kia models, the Insurance Institute for Highway Safety said. The automakers' service campaign to install the software should have been more aggressively pursued, said Michael Brooks, executive director of the nonprofit Center for Auto Safety. Brooks suggested that if the U.S. National Highway Traffic Safety Administration had managed a recall of the affected vehicles, it would have stood a better chance of alerting owners to the danger and need to seek a repair. "Unless people are really following the news," he said, "they might not know about theft issues." Shakira Ellis, a music instructor from Long Beach, California, is among those who hadn't heard about the thefts - until her 2019 Hyundai Tucson was stolen in front of her home around 4 a.m. on April 25. The car, which contained some of her musical instruments, hasn't turned up. Ellis, 26, said her Tucson lacked the immobilizer, and she hadn't been informed of Hyundai's campaign to distribute the software fix. If she had, Ellis said, she would have immediately taken it in to be fixed. She feels Hyundai should provide her with a new car to replace her stolen vehicle, "I feel like I should be compensated," she
she had, Ellis said, she would have immediately taken it in to be fixed. She feels Hyundai should provide her with a new car to replace her stolen vehicle, "I feel like I should be compensated," she said. "It's been ruined because it's defective. And people know. It's a target." Even with a recall, not everyone takes an affected car to a dealer to be fixed. Recall completion rates, Brooks said, average only around 60% of owners. Some of the vehicles, about 15% in Hyundai's case, can't be fixed with software. But both Hyundai and Kia say they'll pay for anti-theft devices for those owners. In Minneapolis and other cities, police say teenagers, some of them too young to have a driver's license, have exploited the vulnerability. Often they crash or are involved in other crimes. The Minneapolis police recorded 209 cases of Hyundais or Kias being involved in hit-and-run injury crashes, and they're investigating 169 reports that Kias or Hyundais were used in other crimes. Multiple cities, including St. Louis, Cleveland, Milwaukee and Seattle, have sued the automakers, accusing them of failing to install industry-standard anti-theft devices and placing an undue burden on city services. "Kia and Hyundai prioritized profit over people by not installing engine immobilizers in these vehicles," Cleveland Mayor Justin Bibb said in announcing his city's lawsuit. O'Hara, the Minneapolis police chief, said the thefts are a "public safety crisis" that is overwhelming communities. "Juveniles are joyriding in these stolen models, and when they are caught by police, he said, they're rarely held accountable for their behavior" by the courts and youth corrections systems. That can lead to more serious crimes, he said, "until they get very seriously injured or killed themselves."
GM offers 10% wage hike in contract talks that UAW calls 'insulting' on Thursday made a counterproposal to the union representing its U.S. hourly workers in a bid to avoid a costly strike, but United Auto Workers President called the offer "insulting." The largest U.S. automaker said it offered workers a 10% wage hike and two additional 3% annual lump sum payments over four years in its offer to the union ahead of the Sept. 14 contract expiration. Last week, said it had offered a 9% wage increase through 2027 and 6% lump sump payments, much less than the 46% wage hike being sought by the union through September 2027. The has said 97% of members voted in favor of authorizing a strike if agreement is not reached. A union official said Ford was expected to make a new counteroffer on Thursday. Fain, who represents 146,000 workers at the , said GM's offer was "an insulting proposal that doesn't come close to an equitable agreement for America's autoworkers.... The clock is ticking. Stop wasting our members' time. Tick tock." The UAW said the GM offer would change the formula for calculating profit sharing and if it had been in effect last year, workers would have received 29% less. The UAW also said Ford's proposal would have cut profit sharing by 21%. GM shares closed down 0.8% to USD 32.57. GM said the wage hike is the largest proposed since 1999. It is also offering a USD 6,000 one-time inflation-related payment and USD 5,000 in inflation-protection bonuses over the life of the agreement, along with a USD 5,500 ratification bonus. Chrysler-parent said Wednesday it planned to make a counteroffer to the UAW this week. GM said that under its offer, current temporary employees will receive a 20% increase to USD 20 per hour wage and it would shorten the time it takes to get to the maximum wage rate for permanent employees - mirroring proposals from Ford. GM President said in a video posted on Thursday "we need a fair contract that both rewards our employees and protects the long-term health of our business." The union's demands include a 20% immediate wage increase followed by four 5% annual wage hikes, defined-benefit pensions for all workers, 32-hour work weeks and additional cost of living hikes. GM is proposing to give employees an additional paid holiday. The UAW also wants all temporary workers at U.S. automakers to be made permanent, seeks enhanced profit sharing and the restoration of retiree health-care benefits and cost-of-living adjustments. A UAW strike that shuts the Detroit Three manufacturers could cost carmakers, suppliers and workers over USD 5 billion, Michigan-based Anderson Economic Group estimated. With new car inventories tight, consumer experts have said that could translate into higher car prices - an important component of inflation. Last week, the UAW filed unfair labor practice charges with the National Labor Relations Board against GM and Stellantis saying they refused to bargain in good faith. J.P.Morgan on Thursday said
Last week, the UAW filed unfair labor practice charges with the National Labor Relations Board against GM and Stellantis saying they refused to bargain in good faith. J.P.Morgan on Thursday said supply chain disruptions from a potential UAW strike would cut new vehicle production, drive up used car prices and put pressure on margins in the personal auto insurance business. Earlier on Thursday, Ford said about 8,000 U.S. workers represented by the UAW will get an average USD 4.33 an hour in additional pay under provisions of the current contract agreed in 2019. Stellantis said it also raised pay this week for 4,000 workers per the 2019 contract.
How to get different insurance policies in exports One thing the pandemic has taught everyone is uncertainty. This has given added importance to the businesses of insurance. Further, looking at the global supply chain disruption, it is now a must for exporters to make sure they mitigate the consequences of delays and be prepared for such uncertainties. can be of utmost significance here. Insurance covers are required not just to help a business stay afloat in a crisis, but a cover is mandatory in several cases. A customs clearance is provided only on furnishing a certificate issued by an insurer through the portal linked to the insurance policy, says Tarun Mathur, CBO-GI, Adding to this, Rakesh Kumar, Director General-Export Promotion Council for Handicrafts ( ), says exporters may suffer a huge loss if he does not get paid for an overseas shipment. “To mitigate the loss, the exporter should take a suitable insurance policy to guard himself against loss that may occur during .” He explains that the need for insurance is mainly for two reasons: protracted default or insolvency of the overseas buyers. “In case of commercial consideration, the importer may not accept the bill of exchange, in case of Delivery of Payment (DP) bill he may not make payment,'' he says. For Documents Against Acceptance (DA) shipment, buyers may not remit the payment due to financial constraints or insolvency. When loss occurs, it may not be just on the shipment of goods, but can also have a big impact on the profits of the entity concerned. Hence, it becomes extremely important for exports to consider taking insurance cover,” he says. Today, there are many insurance policies that provide export credit insurance cover on account of default and insolvency of overseas buyers. Each policy has a different percentage of cover. Kumar says that before exporting, exporters should identify which risks (comprehensive or political) need to be covered more. He lists some important insurance policies that exporter should take: These can be availed from Export Credit Guarantee Corporation of India ( ). There are also private players such as and who provide these covers to exporters. Mathur says that any new exporter should opt for a marine cargo policy to avoid any damage and losses due to accidents or mishaps during transits. “The main risks are either damage or loss to the cargo. Loss means that the cargo is not retrievable and damage means that the exported goods are no longer usable,” he explains. Alternatively, an exporter may also opt for a sales turnover policy, which would cover all sales transits that need to be declared and also the internal transits between their own warehouses, and the purchase shipments as well without any charges. Explaining further, he says a marine cargo insurance policy covers the loss or damage to property caused due to natural disasters such as cyclones, earthquakes or lightning. It also covers man-made disasters such as theft, violence, and piracy of
policy covers the loss or damage to property caused due to natural disasters such as cyclones, earthquakes or lightning. It also covers man-made disasters such as theft, violence, and piracy of ships, collision, overturning, or derailment of land conveyance and sinking or stranding of ships. In terms of limitations, marine cargo insurance does not cover ordinary leakage, wear and tear of cargo, improper packaging and any delays. “Any willful misconduct and illegal activities are excluded from the policy. Damage to the cargo due to war, riot, strike, and civil commotion are also not covered. Insolvency or default by the carrier is also excluded,” he says. Talking about the possible mistakes to keep an eye out for while claiming or availing insurance, Kumar says the exporter should clearly understand the policy provisions and accordingly opt for insurance coverage; country coverage; claim settlement time and insurance premium. “The exporter should apply for insurance policy once he has a confirmed order with clear indication of quantity and price with proper documentation so that there is clarity with respect to the policy being taken by the exporter and processing of claim in case of any unfortunate incident, is smooth,” he adds. Points to keep in mind:
Vehicle sales grow 20% to 15.58 lakh units in Nov, high interest rates cause concern: SIAM New Delhi: Automobile wholesales during November 2022 was up 19.8% to 15,58,145 units and the year-on-year sales were in green across the segments, according to the latest data by the industry body SIAM ( ). In November 2021, the industry recorded total wholesales of 12,99,716 units. in the month include , two-wheelers, three-wheelers and quadricycles. The SIAM data does not include sales of BMW, Mercedes, and Volvo Auto. Passenger vehicles for the month under review grew 28.1% to 2,76,231 units as against 2,15,626 units in November last year. stood at 12,36,190 units, marking a growth of 16.4% as compared to 10,61,493 units in November 2021. Vinod Aggarwal, President, SIAM, said, “Positive consumer and business sentiments have reflected in the better sales in November 2022, compared to the previous year. We note a sequential decline over October 2022 attributable to seasonality and softness in key export markets.” Rajesh Menon, Director General, SIAM, said, “Passenger vehicles posted highest ever sales in FY23 till November, while three-wheelers are still lower than 2010-11 and two-wheelers are less than 2016-17. Higher interest rates and increase in long-term insurance premium, continues to be a concern for the consumers.” Three wheeler sales during November 2022 stood at 45,664 units, as against 22,551 units in November 2021. As per SIAM, the total production of passenger vehicles, three wheelers, two wheelers, and quadricycle in November 2022 was 20,42,575 units. Also Read:
Ola Electric raises INR 2,763 crore from marquee anchor investors ahead of IPO Leading electric two-wheeler maker has raised INR 2,763 crore from marquee ahead of its issue opening tomorrow. The company allotted 36.35 crore shares to various domestic and foreign institutions at INR 76 apiece, which is the upper price band for the public offer. Among the marquee funds who participated in the anchor round include Nomura, Fidelity, HDFC MF, Franklin Templeton, , JM Financial MF, BNP Paribas MF, SBI MF among others. The , which is completely a fresh equity sale of 57.95 lakh shares, received robust response from investors with an overall subscription of over 150 times at close. The net proceeds from the public offer will be used for funding working capital requirements, investment in its subsidiary for repayment of debt and general corporate purposes. The company has priced the IPO in the range of INR 72-76 per share and at the upper end, the company will be valued at -to-sales of 6.6x with a market cap of just over INR 33,500 crore. Currently top global automobile entities are trading between 1-8x on the same metric. The company has lowered its valuation than in its last funding round in September led by Singapore’s investment firm Temasek, which valued it at over INR 48,000 crore. Ola Electric is a leading electric two-wheeler player in India with highest revenues among all the EV two-wheeler manufacturers. It is also building vertically integrated technology and manufacturing capabilities for and EV components, including cells. The company manufactures EVs and certain core EV components like battery packs, motors and vehicle frames at the Ola Futurefactory. It delivered seven products and additionally announced four new products since the first product announcement in August 2021. Ola Electric's revenue from operations increased to INR 5,009.8 crore in fiscal 2024, up from INR 2,630.9 crore in fiscal 2023. This growth was primarily driven by increased sales of the Ola S1 and Ola S1 Pro scooters and the commencement of deliveries of the Ola S1 Air and Ola S1 X+ in fiscal 2024. However, the company's loss for the year increased to INR 1,584.4 crore in fiscal 2024, up from a loss of INR 1,472 crore in fiscal 2023.
Droom to invest Rs 500 to 600 crore for inorganic opportunities, eyes 5-6 acquisitions in 2 years , a provider of the technology platform for , is scouting for five to six acquisitions in the next two years to attain an internal target of $18 billion of Gross Merchandise Value (GMV) in the next five years. Gurugram-based Droom sells vehicles through cloud dealers where sourcing and refurbishment is done by physical dealers. Certification, selling and delivery are done by the company. ET learns the company is looking for acquisitions in the entire chain - from auto insurance to auto lending. Droom is also in the hunt for an IT service company to attract a talent pool, and is also keen on buying an organized service station chain, such as the likes of and . The company plans to spend around Rs 500-600 crore on acquisitions in the next two year. The funds for acquisition will be a mix of internal accrual and proceeds from initial public offering, said people in the know. Lightbox-Venture backed Droom Technology plans to raise Rs 3,000 crore from an initial share sale. The company had filed its draft red herring prospectus with the market regulator Sebi in November 2021. The company is eying a valuation north of $2 billion for its IPO. The last fund raising of the company took place about 15 months before, at a valuation of $1.2 billion. According to the filing, the company plans to spend around Rs 400 crore on inorganic growth initiatives and Rs 1150 crore on organic growth from funds raised from fresh issue of shares in the IPO. “The process for choosing acquisition targets has already started and it has recently appointed a consultant to look for inorganic opportunities in the insurance space and recently it turned down a deal to acquire the auto portfolio of a South-based company as it endeavors to be in loan aggregation rather than becoming a NBFC company,” said a senior executive of the company. An email sent to the company did not elicit any response till the presstime. With all services available under one umbrella, it will only improve GMV for used vehicles from more vehicles sold, but also buttress revenue from services business accrued from insurance, loan, certification, and service station. The company currently derives the bulk of its transactional revenue from sale of vehicles, which are around 3% of the sales value of vehicles. Globally, used vehicle marketplace companies earn half their revenue in vehicle transactions, and the remaining half comes from the service income associated with the sale of pre-owned vehicles. Droom’s transactional volume picked up significantly during the Covid period. The GMV of the company reached around $2 billion in the current fiscal year. It was $1 billion in FY20, according to the company's DRHP filing. The company sold around 13,000-14000 vehicles on average per month last fiscal.
Steelbird sells 80 lakh helmets globally in 2023 New Delhi: , a leading helmet manufacturing company, has sold 77,99,273 helmets globally in CY 2023 and become the world's largest helmet producer. The company aims to produce 10 million helmets in 2024. It has also sold 3,44,865 side boxes in 2023. Its total revenue in 2023 was at INR 687 crore, the company said. told ETAuto that its sales has increased in 2023 as compared to 2022, although the brand did not disclose the exact figures. The 40% market share holder in the branded helmet category, Steelbird, said that 20 million branded and 20 million non-branded helmets were sold in the market in 2023. , Managing Director, Steelbird Hi-Tech, said,"Many states and districts in our country lack proper traffic police, and numerous accidents go unreported. If we check the data with insurance companies, the numbers are more staggering than the official data.. Therefore, it is our duty to address this issue urgently, leaving no stone unturned." As the world's largest helmet producer, remains committed to its mission of promoting road safety and saving lives. The company looks forward to continued success and growth while contributing to the cause of reducing road accidents globally, the company said in a media release.
Auto component industry looks to maintain double-digit sales growth this fiscal New Delhi: The expects to maintain double-digit sales growth in the current fiscal after having reported its highest-ever turnover in FY22, with demand expected to remain robust. As per the (ACMA), the sector reported a turnover of Rs 4.2 lakh crore last fiscal, a growth of 23 per cent over 2020-21, as passenger and commercial vehicle production increased by 20 per cent and 30 per cent respectively due to increased demand and fewer supply chain disruptions. Auto component sales to original equipment manufacturers (OEMs) in the domestic market stood at Rs 3.41 lakh crore last fiscal, up 22 per cent as compared to FY21. Similarly, exports of auto components witnessed a growth of 43 per cent to Rs 1.41 lakh crore (USD 19.0 billion) in 2021-22, as against Rs 0.98 lakh crore (USD 13.3 billion) in 2020-21. "If the growth trend continues, we have no reason to believe it won't," ACMA President told PTI when asked if the sector could see double-digit growth in the current fiscal as well. "Everything we see is pointing in the right direction. Demand is good, manufacturing is looking strong. Unless something happens that we are not in control of, like a pandemic, lockouts or a global recession, it is in the right direction," he added. The sector has come to the pre-pandemic levels in terms of volumes and the next phase of growth is expected to come from newer platforms, revival of two-wheeler and commercial vehicle segments, Kapur said. With a slew of new launches, vehicle sales are expected to gain traction during the festive season, he added. "The component industry is also transforming itself as sales of two-wheeler and three-wheeler EVs gain traction. I am hopeful that the buoyancy in the market will continue through the year and that FY22-23 will witness a healthy performance," Kapur stated. He noted that increased focus by the auto industry on deep-localisation and the announcements of the (PLI) schemes by the government will facilitate the creation of an automotive value chain and aid in developing India into an attractive alternative source of high-end auto components. "Poor offtake of two-wheelers, increase in cost of insurance, high inflation, excessive fuel cost and extreme logistics costs are some of the issues of concern to the industry and do need urgent government attention," he added. Kapur noted that the automotive industry globally was moving towards electric mobility which is presenting a great opportunity for growth for domestic component makers. Last fiscal, electronic component supplies to OEMs accounted for just 1 per cent (Rs 3,520 crore) of the total supplies in the domestic market. Kapur also highlighted that the capital expenditure (capex) cycle has once again commenced, aiding fresh hiring in the sector. Elaborating on the sector's performance in FY22, ACMA Director General Vinnie Mehta said significant growth was witnessed across all segments,
once again commenced, aiding fresh hiring in the sector. Elaborating on the sector's performance in FY22, ACMA Director General Vinnie Mehta said significant growth was witnessed across all segments, including supply to OEMs, exports as also the aftermarket. "Whilst the automotive value-chain faced significant disruptions over the last two years in wake of the pandemic, vehicle sales, especially in the PV, CV and tractor segments now seem to have reached the pre-pandemic levels," Kapur noted. Of late, there has been some moderation in the supply-side issues of availability of semiconductors, input raw material costs and availability of containers, he added. "Increased value- addition to meet regulatory compliance, fast recovery in external markets and traction in the domestic market, both OEMs and aftermarket, have contributed to the remarkable growth of the auto components sector in FY 2021-22," Kapur said. Last fiscal, component imports grew by 33 per cent to Rs 1.36 lakh crore from Rs 1.02 lakh crore in 2020-21. The ACMA represents over 850 manufacturers who constitute more than 90 per cent of the auto component industry's turnover in the organised sector.
16,755 e-challans worth INR 9.49 crore issued through e-detection system at toll plazas in Bihar The and traffic police have issued over 16,700 worth INR 9.49 crore in a week through installed in 13 toll plazas in the state for violation of , officials said. Out of 16,755 e-challans issued by the authorities, 9,676 belonged to vehicles registered in other states while 7,079 e-challans were issued to vehicles registered in Bihar in a week from August 7 to 15, they said. Additional Director General (ADG) of Bihar Traffic Police Sudhanshu Kumar told reporters on Tuesday, "The state transport department in coordination with traffic police, introduced issuance of e-challan through e-detection system, which has been installed at 13 toll plazas in the state. Vehicle owners of the state without valid insurance, fitness and pollution certificates, will now receive e-challan on their mobile phones through e-detection system. "From August 7 to August 15, concerned authorities in the state issued over 16,755 e-challans, worth INR 9.49 crore. The government is in the process of installing an e-detection system at all toll plazas in the state with the help of NIC". The ADG Traffic said the e-detection system checks vehicles and automatically issues e-challan in the absence of required documents. Most of the deaths in in the state occur on National Highways. To curb accidents, it is necessary that vehicles must have fitness permits, insurance, and motor vehicle tax updated. The introduction of e-detection system will help drivers follow the rules of the MV Act and reduce road accidents. The Bihar government has recently sanctioned 10,332 posts, including 4,215 for , for effective enforcement of traffic rules in the state, he said. "Chief Minister Nitish Kumar recently launched 'national highway patrolling system' in the state by flagging off a fleet of hi-tech vehicles, in a move that aims to effectively check accidents in the state. The highway patrolling vehicles, which have been deployed at strategic locations after every 50 km, are playing a crucial role in saving the lives of accident victims on highways", said the ADG.
Indian shares may open higher as US inflation data eases rate hike fears Indian shares are expected to open higher on Friday, in line with Asian peers as cooling U.S. fuelled hopes that aggressive Federal Reserve rate stance might begin to ease. India's , listed on the Singapore exchange , were up 1.6 at 0148 GMT. The MSCI's broadest index of Asia-Pacific shares outside Japan surged 3.6%. The NSE Nifty 50 index closed down 0.71% at 18,028 on Thursday, while the S&P BSE Sensex fell 0.69% to 60,613.70. All three major U.S. stock indexes notched their biggest one-day percentage advances in about two-and-a-half years in a broad, robust rally as the Labor Department's data showed the annual consumer price index number below 8% for the first time in eight months. India will report its October inflation number next week. In domestic earnings, , , , will be among the scores of companies reporting quarterly numbers. Foreign institutional investors bought net of 360.6 million Indian rupees ($4.47 million) equities on Thursday, while domestic investors sold 9.67 billion rupees of shares, as per provisional data available with the . Also Read:
eBikeGo to launch e-bike Transil e1 at INR 44,999; pre-bookings to begin shortly New Delhi: , India's leading mobility platform is entering into the with their new product Transil e1. Transil is the B2C vertical of eBikeGo which aims to produce modern, effective and sustainable consumer products. All the innovative of the company will be launched under the Transil brand name. The pre-booking of the Transil e1 bicycle will begin in a few weeks. Priced around INR 44,999, it will come in three colours, the company said. With Transil, eBikeGo focuses on delivering environment-friendly solutions of mobility. Electric mobility standards developed and executed by adaptive mobility will allow individuals to not only appreciate the moment but also lean towards a healthier lifestyle. Transil will offer consumers to choose from a variety of fully licensed and insured dependable electric vehicles. Our products are designed to enable a smooth transition from the current transportation model to eco-friendly modes of transportation. Transil e1 is a fully-built e-bicycle ideal for shorter distances which is powered with a super-finished, unisex steel frame with a single-speed transmission and an efficient and compact with smart BMS for better performance. Some of its unique features are high strength and lightweight frame which makes cycling effortless and enjoyable, along with high-quality hardware that makes the system robust. It will help the rider switch to a better and healthier lifestyle. It has low maintenance cost and is a good alternative for individuals commuting less than 40 km. It is affordable and its running cost comes up to less than 5 paise/km. Also, it is safe and has a water-resistant design with speed limiting function, the company said in a media release. Transil e1 bicycle will also adhere to these specifications such as, with BLDC, 250 W, and an advanced battery- BMS - Li-Ion, 36V-5.2AH, temperature monitoring and control, overcurrent protection, Smart Algorithm for Precision Charge Control, High-Efficiency Sine-wave Motor Controller and a rugged Water-Resistant System. It can be charged with a smart charger that has an Auto Cut-off Function and allows portable and . Transil e1 has got a User Interface with Compact LED Smart Display and its per charge range is 20+ to 40+ KMs. Some other specification of Transil e1 are: Its USB port is on the battery only, and its charging time is 2-2.5 hours with an ideal electricity consumption of 0.18 units per charge (5 paise per km). Power mode of the bicycle is pedal assist. There is an optional cruise mode, walk mode, and throttle which is also optional. It has got a distinct frame size with high strength steel. Its wheel is double-walled alloy rims, 27.5”. It has got a single speed with a ratio of 3.4. Transil e1 tyre is 27.51.95 and it’s a high-performance tyre. It is also equipped with high-performance disc brakes. Its efficient suspension offers a smoother ride and the saddle is quick release and
e1 tyre is 27.51.95 and it’s a high-performance tyre. It is also equipped with high-performance disc brakes. Its efficient suspension offers a smoother ride and the saddle is quick release and adjustable. “We are extremely delighted and excited to announce the launch of Transil e1, our latest innovation in the fitness category. We are entering into the Smart Electric Bicycle market with the launch of our very 1st Electric Bicycle. We are optimistic that we will receive positive feedback from the consumers and that this product will help the users achieve a sustainable and healthier lifestyle,” Irfan Khan, founder & CEO, eBikeGo, said. Also Read:
Ola’s India Mobility business turns profitable in FY23, aims to serve 1 bn customers New Delhi: The India Mobility Business of has turned EBITDA positive in FY 23. The company said , CEO of Mobility, is leading its mobility business, with focus on ride-hailing, financial services, logistics, and e-commerce. With a vision to serve a billion Indian consumers and empower 10 million partners economically, Ola is all set to reimagine and redefine mobility, the company said in its 2024 Narrative Report. Ola’s robust business model is at the forefront of shaping the future of mobility and commerce, demonstrating substantial growth to transform mobility and ride-hailing through: Premiumization: By expanding multi-city Prime plus experience with a loyalty program and luxury cars on the anvil Penetration through electrification: By l everaging electrification to disrupt mobility space by offering the most affordable rides in the 2W segment, priced lower than the industry, offering more benefits to the partners. Technology: To enhance customer and partner services, as well as optimizing platform efficiency for an overall elevated experience with services like Ola Maps, AI-powered customer care. Financial Services : Increased focus on asset finance vertical with bank tie-ups, better insurance and process experience, with a focus on partners and riders; and Logistics and e-commerce : A multi-work model combined with the company’s large customer base, financial services offerings, our gig-worker platform and technology capabilities to leverage ONDC , Founder, Chairman and MD, Ola, said, “India’s economic growth is unstoppable and we aspire to serve 1 billion Indians. We are proud to serve India at scale with a vast and integrated ecosystem empowering consumers and enabling partners. As a technology-first business, leading with innovation, we are confident to spearhead the country’s mobility ambitions and lead the next phase of growth in the industry at large.” Hemant Bakshi, CEO, Ola Mobility, said, “As Ola’s India Mobility business turns profitable in FY23, it is a testament to the resilience and innovation that has defined our journey. Our focus on sustainable growth has not only fortified our financial standing but has also set the stage for an exciting future of expansion and industry leadership. Ola is committed to continuing its legacy of innovation and excellence, shaping the future of mobility , e-commerce, financial services and logistics.” FY 23 Financials: For the consolidated entity, the revenue from operations and other income for FY 23 stood at INR 3,000 crores as compared to INR 2,120 crores in FY 22. For the consolidated entity, EBITDA loss excluding discontinuos business reduced to INR 29 cr in FY 23 from INR 291 cr in FY 22 Standalone (Ola’s India Mobility business) total revenue has gone up by 48% in FY 23 to INR 2135 crore from INR 1350 crore in FY 22. Total revenue includes revenue from operations and other income. ANI Technologies
India Mobility business) total revenue has gone up by 48% in FY 23 to INR 2135 crore from INR 1350 crore in FY 22. Total revenue includes revenue from operations and other income. ANI Technologies Standalone (Ola’s India Mobility Business) clocked standalone revenue of INR 2,135 crore and segment-adjusted EBITDA of INR 250 crore in FY 23.
Odisha has 70% uninsured 2-wheelers, 80% LMVs and 40% commercial vehicles BHUBANESWAR: The law mandates compulsory insurance for all types of motor vehicles plying on roads. However, about 70% of the total and 80% of (LMV) in Odisha have been running uninsured, revealed the data shared by the commerce and transport department. Of around 80 lakh vehicles currently plying across the state, 64 lakh are two-wheelers. Shockingly, only around 20 lakh two-wheelers have been insured. Similarly, only about 2.5 lakh LMVs out of 12.10 lakh in Odisha have been covered under motor insurance. Out of about 4.1 lakh , nearly 2.4 lakh possess valid insurance papers. Even though general insurers offer varieties of motor insurance policies, including own damage (OD), comprehensive, third party (TP) and personal accident among others, the Centre made it mandatory for vehicle owners to purchase the TP liability insurance policy under the Motor Vehicles (MV) Act 1988. The mandatory TP insurance is intended to cover for any collateral damage to a third party. A third party insurance provides coverage against physical injury, death and property damage caused to a third party, as well as personal accident cover for self. TP insurance also protects vehicle owners against legal complications. If you cause an accident that injures or kills another person, the victim will be able to get the treatment cost and death compensation from the TP insurance. This will also protect drivers from police and legal repercussions in accident cases. In the absence of the TP coverage, the third party accident victim will not be able to get any compensation. The vehicle driver and owner would face legal action, a senior transport official said. According to the amended Motor Vehicles Act-2019, the fine for driving without insurance is Rs 2,000 for the first offence and Rs 4,000 for the subsequent offence. The violation also invites three months of imprisonment. The transport department said they would launch awareness campaigns for next eight weeks and start the enforcement drive against the uninsured vehicles. “We are also planning to send messages to owners of uninsured vehicles and warn them of strict action. Insurance should also conduct camps and accompany our enforcement personnel to make the defaulters insure their vehicles on the spot,” the official said.
Most midsize SUVs perform well in new side impact test: IIHS New Delhi: More than half the tested earned good ratings in the Insurance Institute for Highway Safety’s ( ) new side-impact evaluation, the vehicle rating agency has reported. Ten out of 18 midsize , the Ford Explorer, Infiniti QX60, Lincoln Aviator, Mazda CX-9, Nissan Pathfinder, Subaru Ascent, Toyota Highlander, Volkswagen Atlas, Volkswagen Atlas Cross Sport, and Volkswagen ID.4, the only electric vehicle in the group, earned good ratings. Two more, the Buick Enclave and Chevrolet Traverse, earned acceptable ratings. Six others were rated marginal: the Honda Passport, Honda Pilot, Hyundai Palisade, Jeep Wrangler 4-door, Kia Telluride and Nissan Murano. When IIHS announced the first ratings in the new test in October, only one out of 20 small SUVs managed a good rating, while half were rated marginal or poor, the agency stated. According to a media release, except for the Wrangler, all the midsize SUVs tested earned good scores for their driver and passenger and head injury measures. The Wrangler, which does not have side airbags for the rear seating positions, earns a poor rating for passenger head protection. The absence of this crucial safety feature fault was serious enough to bring the overall rating down to marginal, despite good ratings in all the other areas. In contrast, only the CX-9, ID.4 and Wrangler earned good ratings for preventing injuries to the driver’s pelvis — the body region most frequently injured in real-world side crashes — although the Ascent, Aviator, Enclave, Explorer and Traverse earn acceptable scores, the release added. Half the vehicles that earned good ratings overall — the Atlas, Atlas Cross Sport, Highlander, Pathfinder and QX60 — showed a moderate risk of severe injury to the driver’s pelvis, the release stated. However, the driver’s vital body regions of the head and torso (chest and abdomen) were well-protected in these models, as were the rear seat passenger’s head, torso and pelvis. Their good and acceptable structures also suggest that their occupant compartments are robust, it added. “It’s encouraging to see so many midsize SUVs from different automakers earn good ratings in this more challenging evaluation,” Becky Mueller, Senior Research Engineer, IIHS, said. “These results will help confirm the adjustments they need to make to other vehicles going forward.” IIHS introduced the new, tougher side test to address higher-speed crashes that continue to cause fatalities. Like the original side test, the new test represents the type of crash that occurs when two crossing vehicles collide in an intersection. According to IIHS, the updated evaluation uses a heavier barrier traveling at a higher speed to simulate the striking vehicle. Instead of the earlier 3,300 pounds, the new one weighs around 4,200 pounds, which approximates the weight of most modern midsize SUVs. Instead of striking the test vehicle at 31 mph, it hits it at 37 mph. Together,
3,300 pounds, the new one weighs around 4,200 pounds, which approximates the weight of most modern midsize SUVs. Instead of striking the test vehicle at 31 mph, it hits it at 37 mph. Together, those changes mean the crash produces 82% more energy. The honeycomb striking surface of the new barrier also has a different design that acts more like today’s SUVs or pickups when striking the side of another vehicle. Like the original side test, the new test uses two SID-IIs dummies in the driver seat and in the rear seat behind the driver. The SID-IIs represent a small woman or 12-year-old child. “A higher-riding vehicle may benefit from the barrier striking lower on its side,” Raul Arbelaez, Vice President, Institute’s Vehicle Research Centre, said. The two acceptable-rated vehicles, the Enclave and the Traverse, fall short of good ratings due to marginal scores for occupant compartment structure, IIHS said. Among the six vehicles that earn marginal ratings overall, the Murano earns a poor rating and the Pilot, Passport, Palisade and Telluride earn marginal ratings for structure, stated IIHS. In the Passport and Pilot, the driver dummies also had high pelvis injury measures and the passenger dummy had high torso injury measures. Injury measures were also high for the driver's pelvis in the Murano, Palisade and Telluride, it added. Also Read:
Motor covers to drive market share growth for Tata AIG General Insurance aims to double its market share to achieve a leadership position in the non-life industry, which is expected to grow four times by 2030 to INR 10 lakh crore, the company's MD & CEO said. One of the growth drivers will be an increase in the penetration of motor insurance as the number of uninsured vehicles in the country reduce, Garg said. "We have doubled our market share in the last seven years and we expect to do it again," said Garg. During the first nine months of FY24, AIG has grown nearly 20% to INR 11,206 crore, according to industry data, which makes it the fourth-largest private insurer. Garg said that due to the introduction of five-year policies for two-wheelers and three-year third-party covers for cars, the number of uninsured vehicles has decreased. "Recently, the department of financial services has sent a request to state governments, indicating that since information is now available, reminders should be sent to vehicle owners to ensure that their vehicles are covered". Garg said that this would also improve the underwriting performance of insurers as the quantity of premium in relation to claims will increase. "We are on course this year to $100 million of profits. We can fund our own growth through internal accruals and we have a solvency margin of around 2x," said Garg.
Ford has big goals for software sales to small business truck fleets HomeTown Services, a heating and cooling repair company in Tulsa, Oklahoma, is getting ready to install driver monitoring cameras in some of its trucks, and already uses streamed data to remind drivers not to sit too long in idle vehicles, wasting gasoline. "People will sit in a vehicle for an hour or two," said Del Underwood, vice president for purchasing and fleets for the company. Now, technicians get a text message instructing them to either turn off their trucks or move to the next assignment. That may annoy some employees, but it is good news for Motor Co's commercial vehicle unit, Ford Pro, which has placed a big bet on software-related services. Ford Pro hopes selling connected-vehicle services such as driver monitoring systems to small and medium sized fleet operators will help generate as much as USD 1.8 billion in annual profit within two years. Ford CEO Jim Farley has urged investors to think of Ford Pro's bundle of software and vehicle sales, not Tesla, as the "future of the automotive industry." Companies including Geotab and units of Verizon dominate the market for telematics services provided to large vehicle fleets, said Mike Ramsey, vice president at technology consultancy Gartner. But Ford "can get all the guys buying Ford Transits for their plumbing business," Ramsey said. Small and medium-sized business fleets in North America and Europe constitute a large enough market that Farley has told investors Ford Pro could earn 20% of its pre-tax profit from selling software and services within two years. Farley has forecast Ford Pro pre-tax profits at USD 8 billion to USD 9 billion this year. He has promised investors Pro can earn fatter margins than its consumer businesses, partly due to services and maintenance business driven by telematics connections to vehicles and data. In 2023, Ford Pro had 500,000 paid subscriptions for software services. "It's up 46% and the margins are over 50%," Farley told analysts in January. He said 12% of vehicles Ford Pro sells have software subscriptions attached and he wants to triple that. Ford Pro Chief Ted Cannis told investors last May that software subscriptions could bring in USD 2,000 a vehicle in revenue per year, and by adding on services such as insurance, Ford could boost that revenue per vehicle to USD 4,000 to USD 5,000. Ford uses telematics connections to prompt commercial vehicle owners to get parts replaced before they break. Boosting the rate of service subscriptions by one percentage point can "add about USD 30 million of incremental EBIT to the business," Ford Pro Chief Financial Officer Navin Kumar said last month. Ford is also selling data from its vehicles to large fleets that subscribe to rival telematics services. FORD'S FERRARI While Farley sees big dollars, investors so far have not boosted Ford's share valuation to anywhere near Tesla's level. The Silicon Valley electric vehicle company is worth more
FORD'S FERRARI While Farley sees big dollars, investors so far have not boosted Ford's share valuation to anywhere near Tesla's level. The Silicon Valley electric vehicle company is worth more than 10 times Ford's market capitalization. Morgan Stanley analyst Adam Jonas has called Ford Pro "Ford's 'Ferrari.'" But he also asked "How long can Ford Pro fund losses in the vertically integrated EV strategy?" In 2023, Ford Pro earned USD 7.2 billion in pre-tax profits and had a 12.4% pre-tax profit margin. By comparison, Ford's overall pre-tax profit margin was just 5.9%, reflecting the cost of United Auto Workers strikes at key U.S. factories and a USD 4.7 billion pre-tax loss on electric-vehicle operations. Ford Pro's above-average profit margins have prompted rivals to counter. Stellantis last year grouped its commercial vehicle operations under a new name: Stellantis Pro One. Beyond emulating Ford's use of the word "Pro," Stellantis said it aims to generate 5 billion euros annually from sales of connected services. General Motors last year reorganized its North American commercial vehicle business to sharpen competition with Ford Pro. Another challenge for Ford Pro will be to make paid subscribers out of customers who currently get software and telematics services for free. Fize Electrique, an electrical contractor in Quebec, is using Ford Pro software during a one-year free trial to monitor 12 Ford EVs it purchased for battery charge levels. That is crucial because EV batteries lose driving range faster in Quebec's cold winter weather. "When we got the first E-Transits, I was watching the numbers all the time," said Alain Fiset, who oversees the company's fleet. Data pulled from the vehicles "helped us understand what's the state of the battery." That in turn convinced Fize to accelerate the move to an all-electric fleet, taking advantage of Quebec's relatively stable power rates. Ford Pro is experimenting with new ideas for software services, and not all the projects work out, Dave Prusinski, chief revenue officer for Ford Pro's software operations, said in an interview. In 2021, Ford and business software company Salesforce announced plans to develop a subscription software service called VIIZR that would automate work orders for contractors. But that project has been wound down, Prusinski said. "Realistically it was not our core," he said. "There were some great solutions on the market. We were seeing traction, we couldn't catch up fast enough."
India, World Bank looking to spur lending for electric vehicles India’s government and the World Bank are in talks to introduce a risk-sharing mechanism to compensate banks giving loans for electric vehicle purchases, an official said, as the country seeks to decarbonize the . The risk instrument will help banks hedge against loan defaults and cut the cost of , India’s G20 sherpa Amitabh Kant said at the sidelines of an industry event in New Delhi. Kant was CEO of government thinktank until June this year, spearheading state policy decisions across the economy. The switch to clean transport in the South Asian nation is slower than the US and China in part due to the sluggish adoption of battery-powered vehicles. The high cost of these vehicles and insufficient charging stations are a major barrier with BloombergNEF saying that by 2040, 53 per cent of new automobile sales in India will be electric, well behind China with 77 per cent. Banks in India have been reluctant to give loans for at a time when the cost of insuring these vehicles is high and the resale market is remains small, said Kant, who was recently appointed India’s main negotiator when it becomes the chair for the Group of 20 countries in December. The World Bank will set up a $1 billion fund with an that will be made available to all financial institutions, according to a senior NITI Aayog official working on the project. The fund will provide first-loss guarantees to lenders in case of loan defaults, said the official who declined to be named as discussions are still private. An India spokesperson for the World Bank didn’t respond to calls and an email seeking comment. India has been pushing to decarbonize its transport sector, which accounts for 13.5 per cent of the country’s total emissions, as it looks to achieve its goal of becoming net carbon zero by 2070. The government expects investments in the Indian EV industry to more than triple to $20 billion by 2030 from $6 billion in 2021. The government is also working on a battery-swapping program to expedite adoption of , which are growing faster than the four-wheeler segment. Read More:
Why India ramped up Russian oil imports, easing pressure on Moscow NEW DELHI - Since the start of the war in Ukraine, the United States and its allies have leaned on countries to buy less Russian oil in a bid to punish Moscow for its aggression. have done the opposite, snapping up more Russian crude while the government explores ways to protect from punishment should they fall foul of sanctions. The result has been a huge leap in volumes from Russia. In May, India imported 819,000 barrels per day (bpd), from 277,000 bpd in April and 33,000 bpd a year ago. Russia is now the second biggest supplier to India, replacing Saudi Arabia, while Iraq continues to be the largest. While the increase in volumes is known, some of the ways in which India has communicated its strategy on Russian oil purchases to key players and offered assurances to the companies involved have not been reported. European countries and the United States have imposed heavy sanctions on Russia since Moscow sent troops into Ukraine on Feb. 24. While New Delhi has called for an immediate ceasefire in Ukraine, it has not explicitly condemned the invasion, which Russia says is a "special military operation". An Indian government official said India plans to continue with purchases of Russian oil, available at a discount that is now narrowing. "If India stops buying oil from Russia, the entire world will be chasing the same pieces of oil and that will further push up oil prices," he said. Government and refinery officials have said India's main reason for buying Russian crude is commercial. After China, India has done more than any country to compensate for the drop in demand for Russian oil from elsewhere, undermining Western efforts to isolate Moscow and hasten an end to the war in Ukraine. The officials say New Delhi wants to avoid repeating what it sees as the mistakes of the past: abiding by sanctions on Iran and winding down oil imports, only to see its main regional rival China continue unpunished and benefit economically. "India has the attitude that if China is buying, why wouldn't we?" said Robin Mills, chief executive of energy consultancy Qamar Energy. "India doesn't want to be in the same position again when China continued to buy Iranian oil and India stopped it." While Prime Minister Narendra Modi's government values good relations with Washington and the West, Indian officials say domestic needs come first and argue that Russia has been a better friend than the United States in energy cooperation. Economic necessity is also behind the shift. Indian refiners have bought Russian oil at a lower cost although the discounts are now shrinking, while New Delhi often takes a dig at oil production strategies of OPEC. Inflation is meanwhile biting hard. Indian energy minister Hardeep Singh Puri often blames OPEC for holding barrels back from the market, and said high prices were not good for producers or consumers. "We have to look after our own interests," Puri said last month.
Singh Puri often blames OPEC for holding barrels back from the market, and said high prices were not good for producers or consumers. "We have to look after our own interests," Puri said last month. U.S. President Joe Biden has described India's energy policy response to the Ukraine crisis as "somewhat shaky". Indian officials counter that what refiners are doing is legal and some European countries are still buying Russian oil and gas. Executives at state-owned and private refineries do not expect purchases of Russian crude to slow any time soon. Last month, Indian Foreign Minister Subrahmanyam Jaishankar posed the question at a conference: "Why are Indian money and funds coming from India seen as funding the war (in Ukraine), when Europe also buys gas from Russia?" Referring to U.S. sanctions on Iranian and Venezuelan crude, he said: "They (Europe and the U.S.) have squeezed every other source of oil we have and then say you will not go to the market and get the best deal for the people; it's not a fair approach". RUSSIAN OIL ASSETS In April, India's oil secretary, Pankaj Jain, called a meeting of state-run firms to discuss the possibility of buying Russian oil and gas assets, said three company officials present, at a time when Western firms were looking to pull out. The proposal floated was to create a company 51% owned by the government, with the remainder distributed among state-run firms as a way of fending off the threat of secondary U.S. sanctions should they be imposed. India's oil ministry did not respond to a Reuters e-mail seeking comment. The government is yet to move forward with the proposal, partly because the first right of refusal for Russian oil assets dropped by Western firms lay with Russian oil firms, and as the threat of secondary sanctions had receded for now, the company officials said. But the idea would put India, the world's third biggest oil consumer and importer, at odds with Washington and its allies, who want a united global response to isolate Moscow. Nevertheless, private and state refiners in India say they are in regular contact with government officials, apprising them of Russian oil purchase plans and receiving assurances that should problems arise, New Delhi would step in and try and resolve them. They see no immediate reason for the vastly expanded Russian oil purchases to be reduced, although refinery and government officials stressed that commercial, and not political considerations were paramount. The steep discounts that Indian refiners enjoyed soon after the Ukraine war began - of $20-30 per barrel - have narrowed significantly as Russia finds new markets for its oil. They stand at just $7-8 on delivered basis, still cheaper than viable alternatives. Some refinery officials said slimmer margins could be eroded further as insurance and freight costs to move Russian oil had risen significantly. "If Middle Eastern producers reduce official prices for their crude, then we may have to rethink purchases of
further as insurance and freight costs to move Russian oil had risen significantly. "If Middle Eastern producers reduce official prices for their crude, then we may have to rethink purchases of Russian oil," one said. Saudi Arabia raised crude prices to Asian buyers to near record levels this month. A possible cap on how much buyers can offer Russia for its oil discussed at a recent G7 summit could work in India's favour were it to happen, but Indian officials said they would only comply if all importers paid the same price. It is not clear whether the proposal is workable, however. RELIABLE RUSSIAN SUPPORT Russia has also helped India in other fields of energy. While Western companies' attempts to build nuclear power plants in India have stumbled, two Russian-built reactors have been in commercial operation in Kudankulam, southern India, since 2014 and 2017. Construction on two more started in 2017 and Modi and Russian President Vladimir Putin agreed in 2018 to build six more. Two years earlier, the involvement of both men was instrumental in getting the acquisition of Indian refiner Essar by a consortium led by Kremlin oil giant Rosneft over the line. The $13 billion price tag for the debt-laden enterprise made it the biggest foreign acquisition in India at the time and Russia's largest outbound deal. Also, Russia has long supported India internationally on critical issues including Kashmir, a territory disputed between India, Pakistan and China, and is its most important source of foreign military hardware. That all means New Delhi is reluctant to put U.S. interests ahead of those of Russia, especially after it felt it was harmed economically by sanctions on oil from Iran and Venezuela and potash, a key ingredient in fertilisers, from Belarus. Under Modi's nationalist government, India has pursued an assertive foreign policy, standing up to China in a two-year military border standoff and rejecting Western criticism of domestic policies some say are authoritarian and divisive. Modi has a particularly close eye on China, experts said. "It is not in the interest of India or others who have identified China as the major systemic rival to move away from Russia," said former diplomat Ashok Sajjanhar, although he added India's ties with Washington and its allies remained the most important. The United States has offered to sell more defence equipment and oil to India, for example, and New Delhi joined a U.S.-led trade partnership Indo-Pacific Economic Framework for Prosperity. India is a member of the Quad alliance, which links it with the United States, Japan and Australia. India also signed a free trade agreement with Australia, talks for which initially began in 2011.
Freight rates set to flare up as shipping lines avoid Red Sea The recent attacks on ships and the decision of major shipping companies to use the Black Sea route is expected to significantly impact Indian trade as could see a sharp increase as vessels will take 15 more days to travel to , resulting in container supply problems and higher costs. On Sunday, a crude tanker with 25 Indian crew members, suffered a drone attack in the . Drone and rocket attacks by Houthis, the Iran-backed rebel group that controls a large part of Yemen, in the last two weeks have prompted major companies including , Compagnie Maritime d'Affretement - Compagnie Generale Maritime, , Mediterranean Shipping Co and oil major BP, among others, to divert vessels away from the Red Sea. They are now taking a longer route going around the Cape of Good Hope, which is typically used for bulk cargo. Shipping industry sources said that the charter cost for a ship, which works out to around USD 60,000 a day will rise as an additional 15 days will be required, which could jack up container costs 1.5 to two times to USD 1,500 to USD 2,000 a container for the India-Europe route. While the impact on freight rates has not shown up in a significant way just yet, businesses are expecting an increase. Capacity could be constrained by at least 20-25%, said a shipping industry executive. "The challenges in shipping , owing to increasing attacks on ships, is likely to push freight and insurance costs and add to already high uncertainties in the global trade. We hope disruptions can be addressed quickly with coalition patrolling in the Red Sea and rule of law prevailing in international water," said Ajay Sahai, director general, Federation of Indian Export Organisations (Fieo). A report by think tank Global Trade Research Initiative (GTRI) said that India is heavily reliant on this route for trade and energy imports, and faces increased costs and security risks, and efforts are needed to diversify trade routes and enhance regional maritime security cooperation. "India may have to work to diversify its energy import so that it is less reliant on the Bab-el-Mandeb Strait. This includes increasing imports from other countries in the Persian Gulf, Africa, and Central Asia," the report said, adding that nearly 30% of the container traffic is routed through this strait.
Status of Uber, Lyft gig workers hinges on Massachusetts court fight has become the latest front in a years-long battle in the United States over whether ride-share drivers for should be treated as independent contractors or employees entitled to benefits and wage protections. The state's top court is set to hear arguments on Monday over whether to let dueling ballot measures go before voters in November that would redefine the relationship between app-based drivers and companies like , , Instacart and DoorDash whose businesses help fuel the gig worker economy. An industry-backed proposal would treat app-based drivers for these companies as independent contractors entitled to some new benefits but would make clear they are not employees. A labor-backed proposal would let Uber and Lyft drivers unionize. Uber and Lyft also are preparing to face trial on May 13 in a civil lawsuit filed in 2020 by , who was the state's attorney general at the time and is now its Democratic governor. Massachusetts accuses the companies of unlawfully classifying their drivers as contractors to avoid treating them as employees entitled to a minimum wage, overtime and earned sick time. Should the industry fail in court and at the ballot box, Uber and Lyft face the prospect of a sweeping overhaul of their business model. Uber's lawyers said in court papers such a change could force it to cut or end service in Massachusetts. A victory for the companies in a state with some of the most employee-friendly laws could embolden them in other states, according to labor activists. "In Massachusetts, the eyes of the country are going to be on us this year - and in November in particular - because this is ground zero for this fight," Shannon Liss-Riordan, a lawyer who has pursued cases against Uber and Lyft nationwide, said at an event on Tuesday concerning the ballot questions. Uber and Lyft have defended against claims that their drivers should be classified as employees because the companies have significant control over working conditions. The flexibility of gig work and the ability of drivers to work for competing apps are hallmarks of independent contracting, according to the companies and their allies. THE COST OF EMPLOYEES Employees can cost companies up to 30% more than independent contractors, according to various studies. By not classifying their drivers as employees, Uber and Lyft avoided paying over a 10-year period USD 266.4 million into workers' compensation, unemployment insurance and paid family medical leave in Massachusetts, the state's Democratic auditor said in a report released on Tuesday. In a USD 200 million campaign in 2020, Uber, Lyft and others convinced California voters to pass a measure similar to the one backed by the companies in Massachusetts, solidifying drivers as independent contractors with some benefits. Litigation challenging that measure is ongoing. Fights over the rights of drivers have played out elsewhere. In New York, for example, Uber and
drivers as independent contractors with some benefits. Litigation challenging that measure is ongoing. Fights over the rights of drivers have played out elsewhere. In New York, for example, Uber and Lyft in November struck a USD 328 million deal with the state's Democratic attorney general to resolve claims that they cheated their workers out of pay. The companies in that settlement agreed to institute a minimum "earnings floor" and paid sick leave, akin to the industry-backed proposal in Massachusetts. Uber, Lyft, DoorDash and Instacart have provided millions of dollars to an industry-backed ballot question committee called Flexibility and Benefits for Massachusetts Drivers to support proposed state ballot measures that would keep app-based drivers as contractors but establish an earnings floor equal to 120% of the state's minimum wage, or USD 18 an hour in 2023 before tips. Drivers also would receive healthcare stipends, occupational accident insurance and paid sick time under these proposals. The Massachusetts Supreme Judicial Court blocked a ballot measure similar to the current industry-backed one from going before voters in 2022. To hedge its bets, Flexibility and Benefits for Massachusetts Drivers is gathering signatures for five different versions of the current ballot question, only one of which would be put before voters on Nov. 5. "Our ballot question will secure all of these things for drivers while allowing them to maintain the minute-by-minute flexibility they cherish in demand," Conor Yunits, a spokesperson for the ballot committee, said at the Tuesday event.
BLive unveils EV rental program for last-mile delivery operators New Delhi: , a leading e-mobility platform, has launched its pioneering BLive EZY . This program is specifically designed for last-mile mobility partners and aims to bridge the financial gaps that delivery riders face when transitioning to electric vehicles (EVs), the company said. BLive is at the forefront of electrifying last-mile mobility through fleet operators. The integrated AI-enabled platform brings together the entire EV ecosystem, including EV manufacturers, demand generation partners like Zomato and Swiggy, leading finance and charging solution providers, and the growing community of gig workers. Enabling fleet operators onboarded as franchisee partners to create, deploy, and manage fleets with the help of full-stack fleet management solutions is driving the adoption of sustainable transportation solutions. The BLive EZY EV Rental Program addresses the financial challenges delivery riders encounter, particularly the need for a high CIBIL score for loan approvals. With competitive rates and flexible terms, the program makes the transition to electric vehicles more accessible. Rentals start as low as INR 1500 per week, allowing delivery partners to integrate EVs into their operation. "Rent to Own" model: According to a recent survey conducted by the Bangalore-based research agency, Robas Research Pvt. Ltd., 77% of last-mile delivery riders among the respondents already own their electric vehicles (EVs), indicating a strong preference for sustainable transportation. However, financial obstacles such as complex loan processing and high interest rates persist. To address these challenges, BLive has introduced the "Rent to Own" option as a key feature of the program. This initiative allows riders to become owners of their EVs after a rental period of 36 months, promoting long-term sustainability and encouraging the widespread adoption of green transportation solutions. The BLive EZY EV Rental Program is a step forward in making electric vehicles more accessible, providing a cost-effective and hassle-free way for riders to own their EVs. We believe this initiative will not only empower riders but also contribute significantly to reducing carbon emissions in our cities - said Samarth Kholkar, Founder of BLive. EVs from renowned brands: The BLive EZY EV Rental Program offers premium EVs from renowned brands such as TVS, Ather, Bounce, and Revolt on flexible renting terms. The rent-to-own model allows delivery agents to eventually own these top-notch EVs at the end of the rental period, demonstrating BLive’s commitment to driving sustainable mobility solutions. Substantial savings: Save up to 90% on fuel costs. No extra costs: Enjoy zero additional costs for insurance and maintenance. Ownership at the end: Own the EV at the end of the tenure. Expansion and future plans: The BLive EZY EV Rental Program has already launched operations in five cities: Bangalore, Chennai, Hyderabad,
Ownership at the end: Own the EV at the end of the tenure. Expansion and future plans: The BLive EZY EV Rental Program has already launched operations in five cities: Bangalore, Chennai, Hyderabad, Ahmedabad, and Goa, deploying over 200 EVs to last-mile delivery riders. BLive plans to deploy 10,000 EVs in the next 12 months and is actively seeking more franchisee partners to join their mission to electrify last-mile mobility. This program is expected to play a pivotal role in accelerating the adoption of electric vehicles across the nation, making last-mile delivery more efficient and affordable, the company said.
Tesla mulls exporting China-made EVs to United States is considering exporting made-in-China to the United States, two people with knowledge of the planning told Reuters, a reversal that would reflect the automaker's deepening cost advantage at its and slower demand from Chinese consumers. Tesla has been studying whether parts made by its China-based suppliers are compliant with local regulations in North America, and if they are, could ship China-made Model Y and Model 3 for sale there as soon as next year, said the people, who declined to be named as the matter is private. That could also open a channel for exports to Canada, one of the people said. Tesla did not immediately respond to a request for comment, but Musk in a Twitter post after the story's release replied "False" without elaborating. has the capacity to produce 1.1 million per year after an upgrade earlier this year, making it Tesla's most productive manufacturing hub. The Shanghai plant makes Model 3 sedans and Model Y crossovers to sell in China and for export to markets including Europe, Australia and South East Asia. Until recently, Tesla had been selling or shipping for export every vehicle it could produce in Shanghai, but inventory levels rose by their largest margin ever in October, according to data from brokerage CMBI. In addition, factors including a cheaper yuan against the U.S. dollar, lower raw material prices in China and the rise in Tesla and new-car prices in the United States have combined to make exports from China to the United States potentially cost competitive, the people with knowledge of the plans said. The plan, if enacted, could create new complexity for U.S. buyers. Under the terms of a new electric-vehicle subsidy and production-incentive plan signed into law by U.S. President Joe Biden, the incentive available for an individual vehicle could vary depending on whether it was imported. It could also be politically contentious. Tesla has been widely seen as one of major beneficiaries of the Biden administration's Reduction Act (IRA), which offers rebates of up to $7,500 on EV purchases as part of a law intended to push automakers to reduce their on China. Tesla Chief Financial Officer Zachary Kirkhorn told investors last month that the automaker was "very well-positioned to capture a significant share" of the incentives offered under the IRA for EVs and batteries for energy storage. Until now, Tesla's strategy has been to build the cars it sells in North America at its plants in Fremont, California, and Austin, Texas. The California plant, Tesla's first, produces the Model S, the Model 3 sedans and the Model X and Model Y crossovers. The Texas plant, which opened earlier this year, makes the Model Y and will produce Tesla's upcoming Cybertruck. Tesla is also ramping up production at a plant it opened in Berlin earlier this year. Output from the Berlin plant will reduce the need for some exports from China, one of the sources said. At the same time, the
ramping up production at a plant it opened in Berlin earlier this year. Output from the Berlin plant will reduce the need for some exports from China, one of the sources said. At the same time, the price gap between Tesla cars sold in China and the United States has been widening, reflecting both higher U.S. prices and new discounts in China. In China, where CMBI analysts have warned of a coming "price war," Tesla slashed the starter prices for Model 3 and Model Y in China by as much as 9% last month. On Monday, it offered an additional rebate for buyers who take delivery this month and buy insurance from one of Tesla's partners. Tesla sells the Model Y for the equivalent of $49,344 in China, compared to the U.S. price of $65,990. China-made cars face a 27.5% U.S. tariff, while light-duty trucks face a 25% tariff. China, the world's largest auto market, imposes a 15% tariff on imported vehicles. In 2018, before Tesla's Shanghai plant was operating, Chief Executive Elon Musk had asked then-President Donald Trump to raise tariffs on cars imported to the United States from China in order to achieve "a fair outcome" where both sides had equivalent and "equally moderate" tariffs. Tesla would not be the first U.S. automaker to ship made-in-China vehicles to the United States. has imported the Buick Envision SUV and unsuccessfully petitioned for an exemption to 25% U.S. tariffs imposed by the Trump administration. Also Read:
Tesla, Elon Musk welcome to India but only as per govt policies: Union minister and are welcome to but the government will not compromise in any way on the policy of Aatmanirbhar Bharat or self-reliant India, Union minister said on Saturday. American electric carmaker Tesla, which has been seeking reduction in import duties to sell its vehicles in India, will not manufacture its products locally unless it is allowed to first sell and service its cars in the country, company founder and chief executive Elon had said last month. "Tesla will not put a manufacturing plant in any location where we are not allowed first to sell & service cars," Musk had said in a tweet responding to a user asking about Tesla's plans to set up a manufacturing plant in India. Addressing The Global Summit by TV9 on Saturday, the Minister for said: "The government under the leadership of Prime Minister has moved ahead swiftly on the Aatmanirbhar Bharat policy and received a very good response on it and we are not going to compromise on that in any way. "Tesla, Elon Musk are welcome to India but only according to the country's policies," he added. In August last year, Musk had said Tesla may set up a manufacturing unit in India if it first succeeds with imported vehicles in the country. Currently, India imposes 100 per cent import duty on fully imported cars with CIF ( ) value more than USD 40,000 and 60 per cent on those costing less than the amount.
Contract manufacturing: The next wave of disruption in EV production Close on the heels of FoxConn making the India Electric Vehicle (EV) space its playground, a smaller domestic hexagenarian inked its largest EV deal to kick off 2023. This was Chennai-based Sundram Fasteners which won a USD 250m contract for supply of sub-assemblies to the EV platform of a global automaker. FoxConn - the Taiwanese giant that runs the world's largest iPhone factory, is eyeing India to set up its EV factory before the end of the year. R&D is at the core of FoxConn which has 85,000 patents to its name. On that note, the world's largest EV maker, the China-based Build Your Dreams already has an Indian technology partnership - it supplies the tech to Hyderabad-based electric bus maker . In the automotive space, all incumbent OEMs have in-house assembly capabilities. What they lack is the agility to disturb the operations of large plants, for low production volumes. EV makers in India are challenged in planning their in house investment runway for (EVSE) - adoption at the consumer end is slow in this cost conscious market. A new in house assembly unit poses its own set of financial and manufacturing risks. This uncertainty does not allow EVSE OEMs to do long term planning. Outsourcing the job to specialist contract manufacturers (CM) like FoxConn is therefore coming up in a large way in this jurisdiction. as a model takes the best of both worlds - specialist expertise and time-incentives of the contract manufacturer (CM) and the scale of the . Even if OEMs sell much fewer units than would be necessary to generate significant economies of scale, they can cut their direct expenses. And divert funds towards R&D, sales and marketing. OEMs can significantly increase their manufacturing workforce and production capacity through CMs, minus the liability. In fact this flexibility extends to quick product switches as well, weeding out the ones with lesser uptake. Global trends reveal the emergence of 3 models to handle contract manufacturing. First model being a straight-forward approach of establishing a dedicated unit, supported by contract engineering capability e.g. . The second being that of offering OEMs manufacturing capacity and expertise otherwise used for in-house needs e.g. China’s JAC Motors. Third model being an innovative approach of electric skateboard which involves designing and manufacture vehicles to clients’ specifications. The electric “rolling chassis” becoming a branded foundation on which use case- and brand-specific “top hats” are attached e.g. UK based Arrival. These manufacturing approaches have emerged at a time when the EV mobility sector is undergoing a radical transformation. Even so, CM is riddled with challenges such as compromising the OEMs quality checks, supply delays where the CM doesn't exclusively work with one OEM, unwanted proprietary and competitive information disclosures, and such. Watertight paperwork enshrining the rights and
checks, supply delays where the CM doesn't exclusively work with one OEM, unwanted proprietary and competitive information disclosures, and such. Watertight paperwork enshrining the rights and duties of the OEMs and the CMs is, therefore, imperative. A variety of commercial relationships exist today between OEMs and CMs. They include component manufacturing, private label manufacturing, CM for use of equipment and facility or assembly, among others. An exhaustive contract would essentially cover the entire legal and commercial relationship between the OEM and the CM. Contracts defining such relationship test against increasingly higher thresholds on defining the production process and the precise role of each party, consequences for performance delays, product specifications and disclosures. Specific clarity is needed on rights and obligations surrounding aspects of design and use of the CM’s own equipment, control mechanisms for expanding scope of contractual roles, supply chain management provisions such as provisions for collaboration and visibility on component availability and quality, transportation and logistics and inventory management, real-time visibility tools, agreement on contingency action plan and regular risk assessments. The agreement and the purchase orders executed between the parties should also state the requirements and specifications of the OEM including but not limited to quality, standards, detailing, packaging, mode of delivery or supply chain structures, damage control mechanism, insurance responsibilities etc. And not least important is the attention to protection of sensitive and competitive information through non-disclosure agreements and IPR protections, given the nature of CM engagement is potentially intrusive. Not to forget, agreeing to a dispute mechanism to define not just the manner and forum of handling the dispute (venue, seat, governing laws), but also the approach to minimise business disruption during the subsistence of a dispute, if it arises. Contract manufacturing in the Indian EV sector will thrive in the months to come, if with some foresight on efficient manufacturing strategies and management of supply chain challenges.
India on cusp of FDI flood, Bajaj Finserv Chair says in Davos Another five years of a majority government in India could usher in a flood of foreign direct investment ( ), and Managing Director told Reuters at the World Economic Forum annual meeting on Monday. "Ten years of this growth we have seen, at least another five years of a strong majority government will end up institutionalising those policies to a fair extent," Bajaj said in an interview in Davos, Switzerland. "It doesn't mean someone can't reverse those things but not easy to do when you have 15 years under your belt, so I think that makes a big difference", Bajaj added. is one of India's leading diversified financial services companies and has helped to reshape the business of consumer finance in the country. It is part of the autos to insurance , one of India's oldest family conglomerates, and has a USD 32 billion market value. "For the last 10 years, we've had a single party running the government, that just brings in significant amount of alignment and continuity in policy", Bajaj said. Prior to Prime Minister Narendra Modi's Bhartiya Janata Party government coming to power in 2014 India was led by a coalition government. India is forecasting annual growth of 7.3% in the fiscal year ending in March ahead of the national elections scheduled to be held before May. FDI FLOOD "The next three or four quarters are going to be very important for India to get a larger perspective on foreign direct investment. Are we seeing a flood or a trickle? I believe it is going to be a flood", Bajaj said, referring to a recent slowdown in inflows. Companies and investors need time to liquidate investments elsewhere to redirect their cash to markets like India, he said, adding they may be waiting for the outcome of elections. FDI into India was USD 71.4 billion in 2022-23, 16% lower year-on-year, official statistics show. The global FDI pot is also shrinking on higher U.S. interest rates and tighter liquidity. India can at times be slow to get started but companies in the electronics sector are starting to show impressive scale after barely existing a decade ago, he said noting the impact of Modi's efforts to boost manufacturing. Bajaj is the largest financier for mobile phones in the country, he said. Many of India's lower to middle classes use small loans to buy gadgets. "For every one Apple that does production in India, it gives tremendous confidence to the next 10, and then next 50," he said, adding: "If Tesla comes in, in the next year or two, again, this will create additional confidence as well." As India tries to boost domestic manufacturing and electric vehicle (EV) adoption, U.S. carmaker Tesla is proposing to set up an Indian factory, but is demanding lower . GROWING PAINS In November, the applied curbs to a small part of the company's lending business, which Bajaj said the company is in the process of complying with. "It is important because if you're slipping up somewhere small, tomorrow
curbs to a small part of the company's lending business, which Bajaj said the company is in the process of complying with. "It is important because if you're slipping up somewhere small, tomorrow it could be somewhere big, so we have to make sure that we get stronger and stronger on our compliance side as well, as we're growing as a business", he added. "Fortunately, we have 40 different product lines. So if two or three slow down, we have many others that are doing well."
Kia India launches ‘Kia Lease’ with Orix Auto New Delhi: , one of the leading carmakers, signed a Memorandum of Understanding (MoU) with Auto Infrastructure Services Limited to launch new ownership experience program - ' '. This move aims to enhance brand accessibility and offer customers another option to enjoy Kia without any maintenance, insurance, or resale hassle, the company said. Crafted to accommodate a wide range of customer preferences, the ‘Kia Lease’ initiative is tailored for customers with prolonged mobility requirements spanning 24 to 60 months with different mileage options. Through the collaboration with ORIX, Kia intends to offer another option to its customers to enjoy hassle-free drive experience of Kia cars. The 1 st phase of Kia Leasing has been launched in Delhi NCR, Mumbai, Hyderabad, Chennai, Bengaluru and Pune. Customers have the freedom to opt for purchasing or leasing of Kia vehicles without any initial down payment. This not only offers convenience but also guarantees value for money, encompassing maintenance expenses, insurance renewals, and resale considerations. Additionally, at the end of of the lease period the customers will have the flexibility to return and upgrade to new car in accordance with their requirements and preferences, the company said in a media release. All-inclusive minimum monthly lease price: Myung-sik Sohn, Chief Sales Officer, Kia India said, "The Leasing model is a global mega trend, gaining momentum in India too. This model resonates particularly well with new age consumers seeking flexible mobility solutions at appealing price points. With an industry forecast projecting 100% growth over the next 4-5 years, we anticipate our leasing service will outpace the industry growth average on account of better product range and service offerings.” Vivek Wadhera MD and CEO at ORIX India, said, “Leasing is the next big trend in India where people are more concerned about mobility without any hassles attached to it. Leasing provides all that convenience under a single contract which offers attractive rentals-linked usage, fully serviced vehicle, insurance for full period and option to change the car on closure of lease. We expect this space to grow over the coming years.” For Kia, venturing into leasing will enhance its brand image and open incremental sales opportunities. The company is committed to providing dedicated leasing staff and customer care for these new programs, ensuring a seamless customer, the release added.
Red Sea crisis continues; adverse impact on trade data will be visible in new fiscal: GTRI New Delhi: With escalating everyday attacks and no end in sight, the will adversely impact trade volumes in substantial ways in 2024, according to the report of economic think tank . The (GTRI) said that rising shipping, and insurance costs and delayed arrival of shipments will continue to disrupt global value chains, squeeze margins, and make exports of many low-margin products unviable from current locations. Countries in Asia, Africa, and Europe will face the most disruption across industries, it added. It said that the disruption is significantly impacting Indian trade, especially with the Middle East, Africa, and Europe. India, heavily reliant on the Bab-el-Mandeb Strait for crude oil and LNG imports and trade with key regions, faces substantial economic and security risks from any disruption in this area. About 65% of India's crude oil imports in FY2023, valued at USD 105 billion, from countries like Iraq, Saudi Arabia, and others, likely passed through the . For overall merchandise trade with Europe and North Africa, about 50% of imports and 60% of exports, totalling USD 113 billion, might have used this route, it said. "With escalating everyday attacks and no end in sight, the crisis will adversely impact trade volumes in substantial ways in 2024," the report noted. This conflict is leading to increased shipping costs (40-60%) and delays due to rerouting (upto 20 days more), higher insurance premiums (15-20%), and potential cargo loss from piracy and attacks, it said. "Confectionery companies are hit by high cocoa prices and shortages due to late deliveries from Africa, reducing profits. Textile and leather industries, which operate on thin margins, are renegotiating shipping costs with buyers, impacting earnings. Car manufacturers are using different shipping paths to avoid delays," GTRI Founder Ajay Srivastav said. The Red Sea crisis began in a major way on October 19, 2023, when the Iran-backed movement in Yemen launched attacks on civilian-operated cargo ships near the Yemeni coast. The Houthis have targeted any shipping believed to be connected to Israel, though several vessels attacked had no apparent link to the country. According to the report, this situation is part of a broader proxy conflict involving the United States and Iran, and Israel. In March 2024, the crisis was in its fifth month. It suggested the government to diversify its sources of crude oil and LNG, explore alternative trade routes to reduce dependency on the conflict-prone Red Sea passage; and rely on ports outside conflict zones, like Oman and Djibouti, for transshipment and regional trade. It also asked for offering financial support and insurance schemes to Indian companies affected by trade disruptions. It added that the crisis underscores how geopolitical conflicts can swiftly destabilise global shipping routes, leading to increased shipping costs and significant
affected by trade disruptions. It added that the crisis underscores how geopolitical conflicts can swiftly destabilise global shipping routes, leading to increased shipping costs and significant delays across multiple sectors and regions. '"The crisis also underscores the importance of exploring alternative maritime and land-based trade routes. This includes potential investment in the Northern Sea Route and expanded land transport infrastructure. India-Middle East-Europe Economic Corridor (IMEC) becomes important in this context," Srivastava said. IMEC project aims to create a vast economic corridor connecting Europe, the Middle East, and Asia through improved transportation, communication networks, and energy infrastructure. It comprises rail, road, and sea routes across two main corridors: The East Corridor links India to the Arabian Gulf. The Northern Corridor connects the Gulf to Europe.
Tesla to deliver strong Q1 retail sales in China is poised to report one of its best quarters in , the latest retail sales data showed, after becoming the first electric vehicle maker in the country to cut prices in a bid to defend its market share. The U.S. 's retail sales in China totaled 106,915 units from Jan. 1 to March 19, or 1,371 units per day on average, according to data from China Merchants Bank International, which tracks . That was slightly higher than the 1,327 units it sold daily on average in the fourth quarter in China, when Tesla sold a total of 122,038 cars, its best quarter so far, the data showed. Tesla did not immediately respond to a request for comment. Bulwarked by its higher profits per car than other electric vehicle makers, the U.S. automaker slashed prices of its best-selling models by up to 13.5% in China in January, triggering a price war with and several rivals following suit over the next two months. Tesla's growth pace, however, is yet to catch up with BYD, which outsold Tesla by more than five times in the January-February period, with its wide range of offerings of electrified products in China. The company is planning refreshed versions of Model 3 and in the next two years to tackle an ageing product mix that has hit its attractiveness to customers. It has also improved the suspension system in the Model Y made in China since January to make the ride smoother, an update Tesla fans lauded on social media. The company had been focusing more on energy efficiency and practical features such as safety and storage space in its marketing in China to lure more pragmatic buyers. Tesla's sales in the first two months accounted for 7.9% in China's fragmented sector of new energy cars including pure electric and , slightly up from 6.8% in the same period a year ago, according to Reuters calculations based on data from . Meanwhile, BYD extended its lead with a 41% market share, a big jump from 29% a year ago.
Indian auto industry is in top gear in FY23: ICRA report CHENNAI: India’s industry is expected to end FY2023 with a 21%-24% jump in sales and should clock between 6% and 9% increase in FY2024 as well, said a latest report by . Even , which struggled in the first half of FY2022-23, are expected to end FY23 with 9%-12% growth and should continue with 6%-9% growth in FY2024 as well. and are back in top gear with 18%-20% estimated growth in FY2023 and will continue with 7%-10% expected growth in FY2024, said the report. The domestic automotive industry has seen a healthy revival in FY2023, aided by a recovery in economic activities and increased mobility. The demand sentiments for passenger , commercial vehicles and tractors have remained healthy though the two-wheeler industry struggles with overall volumes still below the pre-Covid peak levels. Shamsher Dewan, senior VP & group head - corporate ratings, ICRA, said: “We expect growth across automotive industry segments to remain at high single-digit levels in FY2024. While the passenger vehicle, commercial vehicle and tractor segment volumes would continue to trend upwards, aided by favorable demand drivers, the two-wheeler industry is also expected to record moderate growth in volumes aided by a low base." The Union Budget is expected to include enhanced budgetary outlays towards rural employment under MGNREGA, rural infrastructure development, enhancement of irrigation facilities, crop insurance scheme, as well as an increase in targets for agricultural credit. "With measures to help rural communities expected to be at the heart of its policies, the budget is expected to aid in boosting the rural-led demand across segments,” he added. ICRA has a forecast of a CAGR of around 6%-9% across automotive segments over the medium to long term. Also Read:

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