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Sweden's teens drive Porsches and BMWs, no licence needed Too young for a driver's licence at 15, Evelina Christiansen is already cruising in a sleek in , where teens can drive any car modified to roll no faster than a golf cart. An almost century-old regulation originally applied to agricultural vehicles allows kids 15 and older to drive without a proper driver's licence, as long as the vehicle has been altered to have a maximum speed of 30 kilometres per hour (18.6 miles per hour). Called an "A-traktor" -- with Swedes often using "EPA" as the older designation -- these cars and trucks have become so popular in recent years that authorities are now concerned about a rise in road accidents. "I got it a year ago, in April, for my birthday," Evelina tells AFP proudly in front of her dark blue 5-series BMW in the driveway of her family's home in a southern Stockholm suburb. The gift was a special reward for her achievements in school. While teenagers elsewhere have to make do with a moped or scooter until they get a driver's licence, young Swedes can use almost any vehicle that has its top speed capped. In Stockholm's wealthy suburbs, young kids are regularly seen driving Cayennes on their own. "I usually use it when I go to school or meet up with friends," Evelina says. A triangular warning sign in the back indicating a slow-moving vehicle and a hitch ball for trailers are both mandatory for an "A-traktor". The back seat must also be removed, so they can carry only the driver and one passenger. All that is required is a simple moped licence, available from the age of 15, or a tractor licence, from 16. The system is surprisingly lenient in a country known for championing road safety -- the three-point seatbelt is a Swedish invention -- and for its strict . The system was relaxed even further in mid-2020, when it became possible to cap cars' top speed electronically, making it much easier to modify a modern car. Criticism from EU - Originally the domain of youths in rural areas, city kids have increasingly been getting wheels of their own, with the number of registered A-traktors doubling to 50,000 in just two and a half years, in a country of 10.3 million inhabitants. The predecessors to today's A-traktors originated during the 1930s Depression, when there was a shortage of agricultural equipment. To encourage the construction of cheap vehicles when tractors were still out of reach for farmers, the government allowed them to cobble together simple cars. In the 1950s, as the economy prospered, real tractors became more common and the need for these homestyled vehicles began to subside. But in the countryside, young people without a licence were happy to use them to get around, especially in areas without much public transport. The state formalised the use of A-traktors with a 1963 regulation, which has been closely guarded for decades in rural Sweden. Only in 2018 did authorities introduce mandatory road worthiness testing for the vehicles. Sweden
use of A-traktors with a 1963 regulation, which has been closely guarded for decades in rural Sweden. Only in 2018 did authorities introduce mandatory road worthiness testing for the vehicles. Sweden looks set however for a battle with the EU -- the European Commission criticised the system in early March, and proposed that a simplified permit become mandatory. For many rural teenagers, the A-traktor symbolises their dream of independence. It is also the focus of a growing subculture focused on customised cars and a new music genre hugely popular in Sweden called "EPA Dunk". In the western Swedish town of Karlstad, 17-year-old Ronja Lofgren regularly turns heads with her 5.5-tonne Scania Vabis truck from 1964, which her father saved from the scrap heap. The teen has adorned the refurbished truck with a gleaming red-and-blue paint job and lots of headlights. The motto "Queen of the Road" is emblazoned on the front and "Go with style" on the back. "When I went into town at first, everyone would pull out their phones and film me," the teenager told AFP. Soaring accidents - Following the surge in new registrations since 2020, insurers and police have expressed alarm at the more than fivefold increase in accidents involving A-traktors in five years. The number of injuries has exceeded 200 per year and there were four deaths in 2022 alone. For others, the surge has become a business opportunity. Oskar Flyman, 21, and his younger brother started a business in 2021 converting cars into A-traktors. "You can find A-traktors from 30,000 kronor ($2,900) to 200,000 kronor," Flyman said, adding that if you already have a car, a typical conversion costs around 25,000 kronor. In their garage in a suburb north of Stockholm, filled with Audis and BMWs, they do about five to six conversions a month. Sweden's transport authority has recently proposed that as with , the and the use of winter tires become compulsory.
Tata Digital CEO steps up focus on costs, business cohesion , who took charge in February as 's new CEO, is believed to have put a tight control on spends in the and has introduced greater accountability and sharper data-focused approach to operations, according to Tata group officials. Mandated to give momentum and executional heft to the digital ecommerce entity, Tahilyani is taking on a more hands-on approach, the officials said. Tahilyani, handpicked by Tata Sons chairman N Chandrasekaran from the group's business , is also bringing in a collaborative mindset to smoothen operational glitches and boost participation from group companies, company sources said. Since taking up the new role in February, Tahilyani is being guided closely by Chandrasekaran, who is keen to see the consumer app gain a stronger foothold before seeking any external investor interest. Simultaneously, Tata Digital's online pharmacy 1mg is expected to embark on a major offline expansion by opening retail stores where it will sell medicines and offer medical lab testing facilities, people aware of the matter said. The company has approved the plan in a recent board meeting. "The plan is in place and Naveen has interacted with both 1mg and BigBasket leadership on the way forward. There is work being done on 's loyalty pass-NeuPass-," said one of the persons cited above. The budget allocation for 1mg for offline expansion will be finalised later this month, another person said. "The consumer industry acumen is really coming through in our interactions so far and plans are quite sharp. In general, the mandate has been to grow sustainably-whether for private investments or individual IPO plans of digital assets like BigBasket," said a third person aware of the matter. Tata Digital did not comment on ET's queries. Earlier, there was angst within Tata Digital that separate businesses were not allowed to take independent operational decisions, which led to friction and operational delays, Tata group officials said. "Tahilyani is focusing on organisational cohesion and a more collaborative approach of offering Tata Neu as a digital platform on which businesses can take informed decisions on what works best for their individual businesses," said an official close to the matter. "The earlier CEO-Pratik Pal- has been credited for laying the foundation of the businesses and getting it off the ground. The next phase now needed good execution to bring in consumers through effective execution for which Tahilyani has been brought in," the official said. Top officials close to the development said all strategies are being implemented backed by information and analytics. This includes deferring a plan to integrate operational structures of key group assets such as BigBasket, 1mg, and Tata Cliq to enhance consumer responsiveness to Tata Neu superapp. "The view taken is that until the Tata Neu app becomes efficient and a consumer's first choice in ease of usage, the other separate apps cannot
enhance consumer responsiveness to Tata Neu superapp. "The view taken is that until the Tata Neu app becomes efficient and a consumer's first choice in ease of usage, the other separate apps cannot be killed," said people familiar with the matter. "There have been meetings across team and Cliq CEO Gopal Asthana with the team of Neu as fashion has to be scaled. Earlier, integrating Croma took much longer to get them on Neu. These are being changed now," one of the persons cited above said. The flagship digital asset, BigBasket, is also looking to raise up to $100 million in funding from parent Tata Sons. BigBasket is continuing to burn cash in its quick commerce business BB Now, while the core grocery business has stabilised in terms of cash spends to grow.
An economist explains: What you need to know about inflation By Nicholas Li,Assistant, Toronto Metropolitan University is one of the most pressing political and economic issues of the moment, but there are many misconceptions about how inflation is measured, where it comes from and how it impacts the average person. In June, inflation in Canada reached a 40-year high of 8.1 per cent. While there are signs inflation may be moderating, many Canadians have dealt with the surging cost of living by cutting back on expenses, working more to increase their income, drawing on their savings or taking on more debt. As an economics professor who conducts research on prices and consumption, I would like to provide some insight into how inflation is measured and how it is impacting Canadians and the economy at large. Inflation refers to a general increase in prices and the resulting decline in the purchasing power of money. While most of us can sense whether inflation is high or low from everyday purchases, the inflation rate that gets reported in the press and discussed by policy-makers is a specific measure created by a small army of statisticians and data collectors. Statistics Canada constructs the ( ) used to track inflation through a two-step process. In the first step, Statistics Canada collects over one million price quotes on virtually anything purchasable in the country. Prices are recorded in a variety of ways, and the frequency and geography of price collection depends on the item. For example, items with prices that change quickly like food or gasoline, or vary across locations like rent, are collected more frequently than items that are collected once a year, like university tuition or insurance rates. In the second step, Statistics Canada aggregates these prices to generate the all-item Consumer Price Index by weighing each item's price change by its share of total consumer spending. These weights are occasionally updated to reflect changes in consumer spending patterns. The most recent update in 2021 reflects some pandemic-related spending changes, such as a lower weight for food (15.75 per cent) and transportation (16.16 per cent), but a higher weight for shelter (29.67 per cent). Statistics Canada and the also measure "core inflation" which removes items with the most volatile prices (food and energy) from the CPI to provide a better sense of slower-moving, long-term cost pressures. Prices are determined by supply and demand. High inflation is a sign that, across the economy, demand for goods and services exceeds their supply. Demand has been strong due to strong employment and wage growth, cheap credit, pandemic-related payments from governments and pandemic-related shifts in demand towards goods consumed at home. Supply has been disrupted by the pandemic's effects on Chinese factories, international supply chains, container shipping, trucking and the Russian invasion of Ukraine that led to recent spikes in food and energy prices around the
pandemic's effects on Chinese factories, international supply chains, container shipping, trucking and the Russian invasion of Ukraine that led to recent spikes in food and energy prices around the world. Many Canadians feel like prices rose by more than 8.1 per cent in the last year. Beyond specific criticism of the CPI methodology in Canada, there are at least two reasons for this. First, consumer spending is measured through surveys that capture the diversity of spending patterns in the population, but collapse this diversity into a single set of weights that treats each dollar of spending equally. Spending patterns vary with age, income, location, household composition and taste, and your personal budget might bear little resemblance to the weights used for the CPI. Second, we are more likely to notice price changes for items we purchase frequently, and we tend to notice price increases more than decreases. The items with the highest price increases in the last year - energy and food - have these characteristics, and we are less likely to notice the (lower) inflation rate for furniture, electronics, education and health goods that balance these out. We also pay a lot of attention to soaring house prices and interest rates - especially in big cities - but the cost of owned accommodation in the CPI is based on historical averages of housing prices (25 years) and interest rates (five years) that reflect long-term financing costs for the average homeowner, not someone buying a house today. There are winners and losers when it comes to inflation. While it can hurt businesses that end up passing cost increases onto their customers, it can benefit others by allowing them to raise their prices without customer backlash because "everyone else is doing it." High inflation is often, but not always, accompanied by high wage growth. Individuals who earn no or below-inflation wages are hurt, while individuals with wages indexed to inflation or who are able to negotiate better wages can benefit. Individuals like seniors on fixed incomes are often hurt by inflation, although many government benefits are indexed to inflation. Some asset prices are better at keeping pace with inflation. Prices of housing, stocks, art and precious metals may go up, while assets with fixed dollar values like cash and bonds do not. Inflation can make it easier to repay debts, as long as wages or other asset prices keep pace. Inflation can also benefit government finances as tax revenues rise relative to the dollar value of the debt. While the source of our current inflation is irrelevant to consumers, it matters for economic policy. Central banks and governments must decide whether to curb demand and risk recession by raising interest rates, cutting spending or raising taxes, or wait and hope that supply-side inflation pressures ease up on their own. We can only hope that it will not take a major recession to end this period of high inflation (unlike the last major effort by the
and hope that supply-side inflation pressures ease up on their own. We can only hope that it will not take a major recession to end this period of high inflation (unlike the last major effort by the Bank of Canada to lower inflation) and that Canada avoids "stagflation," the combination of high inflation and high unemployment that afflicted many economies in the late 1970s. (This article is syndicated by PTI from The Conversation)
Bond yields lower tracking decline in oil prices, US peers edged lower in early trade on Monday as a continued decline in provided comfort to market participants, while lower US Treasury yields also aided sentiment. The benchmark 10-year government bond yield was down 4 basis points (bps) at 7.2609% as of 0456 GMT. Yields opened down mainly due to a fall in oil prices but will move in a narrow range through the session, Shrisha Acharya, a fixed income dealer at Mumbai-based said. "The 7.25%-7.33% range remains the crucial band for benchmark yield. If crude prices keep falling, we may see yields breaking below the 7.25% mark, but unlikely to sustain at that level," he said. Oil prices fell over 2.5% early on Monday to $81.37 per barrel as protests in China over strict Covid-19 curbs fuelled concerns over demand. US yields were down 5 bps at 3.6481%. Oil price moves have a direct impact on local as India imports more than two-thirds of its oil requirements. Easing inflation has raised hopes that the (RBI), which is scheduled to announce its policy decision on Dec 7, may go slow on its pace of interest rate hikes. Most market participants now expect the central bank to raise its key lending rate by 35 bps after three back-to-back 50-bps hikes. It has raised the repo rate by 190 basis points since May to 5.90%. The 10-year yield will largely remain in the range of 7.22%-7.40% till the RBI policy outcome, Acharya said. There was demand for papers with 10-14 year maturity from insurance companies and pension funds in morning trade, a trader at a primary dealership said. "If that demand sustains, yields may inch further down," he added. Also Read:
Japan stepping up surveillance of unlicensed taxis Japan is stepping up surveillance of at the Narita airport near Tokyo as a spike in the number of arrivals increased the demand for transport, Kyodo News reported. Transport ministry officials handed out hundreds of fliers in English and Chinese to arriving international visitors in early November at the airport in Chiba Prefecture. They stated: "Beware! Unlicensed taxis are illegal and unsafe!" The fliers urge people to check the colour of vehicle license plates as licensed taxis have green plates or plates with green frames. Unlicensed taxis have the white plates of private vehicles. They also warned that passengers may not be covered by insurance if injured while riding in an unauthorized taxi. Head of the transport ministry's Chiba branch office, , said: "To ensure safe travel, we want travellers to use (authorized) taxis and hired vehicles that are well managed." Unlike overseas where ride-hailing operators, including Technologies Inc. and Grab Holdings Inc., are widely used, Japan in principle bans such services that enable drivers of private vehicles to serve as unofficial taxis. Uber and other apps are available in Japan, but they can only be used to call licensed cabs, according to Kyodo News. Recently, against the backdrop of an acute shortage of taxi drivers in rural areas and tourist spots, calls to open up the market grew within the ruling Liberal Democratic Party, including from former Prime Minister Yoshihide Suga. Prime Minister also expressed willingness in October to address the problem and vowed to discuss allowing ride-hailing services to operate. The transport ministry is, however, cautious and the taxi industry remains opposed to introducing competing services, citing safety concerns linked to the absence of rules on who would be responsible for vehicle maintenance and checking drivers' health.
India has found a way towards mass electrification: swap batteries It may not have enough electric vehicles, powerpacks or the capital, but India has found a way towards : swap batteries. The solution, where empty batteries can be exchanged for charged-up ones, is still in nascent stages in China, the world’s largest EV market, where it is anchored in strong government policy. Elsewhere, it hasn’t quite taken off. But for India, it could help leap-frog the nation’s bid to reduce transport emissions and boost its electric footprint. Across the Indian capital’s dense localities, battery swapping stations are becoming a frequent site at local provision stores and small retail outlets. Meanwhile, the government has pushed out an policy draft in recent months to bolster adoption and supply. It’s also scouting sites along India’s emission-heavy highways for new stations for swapping and charging. For the most part, ambitious Indian startups have pushed their way forward. Sheru, a technology platform, allows electric autorickshaw drivers to swap batteries at retail stores or pay as they use them. It’s working with stakeholders across the energy storage value chain. Meanwhile, Battery Smart, which just raised $25 million in a funding round led by Tiger Global, is focused on quickly building a swapping network and is working with domestic battery manufacturers. Sun Mobility is partnering with Amazon India in the state of Maharashtra — home to the financial capital, Mumbai — to put swapping stations at its warehouses. For now, it’s showing promise because the Indian vehicle market is dominated by two and three wheelers, making it simpler to charge and swap out the smaller powerpacks. It brings down the costs of commute sharply for users while increasing energy efficiency. These smaller vehicles are also responsible for a significant share of the emissions. This way could prove to be a model for other emerging markets across the world struggling to meet their green promises. The policy draft, while a progressive step, will need to be backed by state governments and big bucks to be adopted in smaller, denser and more polluted second and third tier cities. It’ll also need to get meatier on details on the types of batteries to maintain quality, insurance for the safety of drivers and manufacturers, and providing better tax incentives for increasingly pricey powerpacks. In addition, state enterprises need to get involved, as they have in China. The longer-term challenge for India will be whether it can use battery swapping for cars effectively when mass adoption reaches the four wheeler category. Even the likes of Tesla Inc. have tried battery swapping. But Musk’s company abandoned the project after setting up just one battery station. Other attempts include a Renault-Nissan alliance that had agreed to manufacture 100,000 EVs to the specifications of Better Place, the now defunct venture capital-backed firm that developed and sold battery charging and switching
alliance that had agreed to manufacture 100,000 EVs to the specifications of Better Place, the now defunct venture capital-backed firm that developed and sold battery charging and switching stations. The firm launched its first station in Israel in 2011 and eventually filed for bankruptcy two years later because it was expensive and batteries needed to be common to drive utility. In China, Nio Inc. has had to make significant capital investments. As of the first quarter, the firm had installed over 960 battery swapping stations in 197 cities across the country . But it’s still running operating losses because of the rising depreciation and expenses. Nio expects losses associated with swap stations to increase for now, executives noted on the latest earnings call. That stands as a question — and a warning — for India when it eventually transitions battery swapping to four-wheel vehicles. Battery swapping is effectively buying New Delhi time to get its act together on broader decarbonization and clean power generation. In addition, as batteries get better or the variety of chemistries in use change, charging times will fall and range will increase. Over time, this could slow growth for swapping. Still, lithium ion batteries are proving to be in short supply, and expensive. Policymakers are already looking to move on from the widespread but costly lithium ion variety, towards those that are made from more abundantly available materials. For now though, there is enough to supply two and three-wheelers. If policymakers can drive investment and capital towards the startups pushing through swapping, the rising awareness and utilization will ensure consumers are prepped for more electric vehicles in the future and hooked to the longer-term cost efficiencies. Without that, India could lose a prime opportunity to go electric and get cleaner.
Govt proposes lower rate of third party premium for EVs for next FY NEW DELHI: The has proposed a lower rate of third party (TP) premium for electric and hybrid electric vehicles for the next financial year while proposing a marginal increase in the premium for all other categories of vehicles. The only exception is for the multi-axle trailers where the premium may increase by nearly 6%. After two years' moratorium due to Covid-19 pandemic, the revised TP insurance premium will come into effect from April 1. This is also for the first time that the road transport ministry will notify the TP rates in consultation with the insurance regulator . Earlier, this was done by the regulator. According to the proposed revised rates, private 1,000 CC cars such as Alto, Wagon R would attract rates of Rs 2,094 compared to Rs 2,072 in 2019-20. Similarly, the medium range cars would attract rates of Rs 3,416 compared to Rs 3,221 and owners of cars above 1,500 CC would need to pay a premium of Rs 7,897 against Rs 7,890. The ministry has invited suggestions and objections from all stakeholders by March 14 before notifying the final rates. The draft notification has proposed a 15% discount for all types of electric vehicles in its bid to incentivise the penetration of environment-friendly vehicles. Electric private cars will attract a premium of Rs 1,780 to Rs 6,712 depending on their capacity. Similarly, it has proposed a 7.5% discount on TP for hybrid electric vehicles. It has also proposed to reduce the premium of school buses marginally, which did not get any business due to the pandemic. As per the draft notification, the TP premium for medium size trucks would increase to Rs 35,313 in 2022-23 compared to Rs 33,418 in 2029-20. Similarly, in the case of 40 tonne-plus multi-axle trailers the proposed premium is Rs 44,242 compared to Rs 41,561 in 2019-20. Sources said the increase won’t hurt the vehicle owners considering that there has been no revision of rates during the past two financial years. Also Read:
India's Russian oil imports seen rising on lower prices - official New Delhi: Easing would help India boost imports from Russia, a senior government official said on Friday, as a lower than USD 60 a barrel price of Russian oil will enable buyers to use Western services such as insurance and ships. The Group of Seven large economies known as G7 and some other nations have imposed a ceiling of USD 60 per barrel for oil at Russian ports to cut Moscow's revenue seen as funding its war in Ukraine. Russia's flagship grade Ural in Baltic ports has plunged since late November below that level, reflecting subdued global oil prices that are headed for a seventh straight weekly decline. India, the world's third biggest oil importer and consumer, emerged as the biggest buyer of Russian seaborne oil, shunned by the West over Moscow's invasion of Ukraine last year. The United States last month imposed sanctions on maritime companies and vessels for shipping Russian oil sold above the G7's USD 60 price cap, in an attempt to close loopholes in the mechanism designed to punish Moscow for invading Ukraine. The three sanctioned vessels - Kazan, Ligovsky Prospect and NS Century - regularly supplied oil to India. The Indian official, who spoke on condition of anonymity, said there would not be any impact on India's intake of Russian oil due to Western sanctions on ships as enough vessels were available in the market. He also said India buys Russian oil on delivered basis and refused to comment on the likely destination of NS Century. NS Century was on its way to India when the sanctions were imposed. The vessel has since then floated near Colombo.
CarDekho hires CEO for Indonesia business MUMBAI: Online marketplace for buying and selling vehicles, is all set to expand its senior leadership. The company's parent GirnarSoft has appointed Brata Rafly as for its arm Oto.com. Rafly will be the first CEO for the company, coming on board from Indonesian fintech firm DimoPay. As CEO, Rafly will look to enable a complete ecosystem for consumers and car manufacturers, dealers and related businesses on Oto.com beyond just buying and selling cars. Consumers will also be able to manage their entire ownership experience including accessories, tyres, batteries, insurance, roadside assistance. The platform is also looking to tie up with OEMs, auto and financial institutions to facilitate purchase of vehicles in Indonesia. "Indonesia is a strategic investment country for Girnarsoft. Brata's vision, ability to embrace risk, passion for internet products and realistic optimism makes him perfectly suited for a fast growing brand like Oto," said Amit Jain, co-founder & CEO of GirnarSoft. Currently, an auto portal that provides information to enable auto purchases, Oto.com sees 3.4 million users come to the platform to enable their purchases. However the platform does not allow for transactions and therefore is not yet monetised. The company is looking to employ revenue generation methods going forward this year. Oto.com is the result of GirnarSoft’s joint venture with PT Kreatif Media Karya (KMK), the digital business arm of media firm PT Elang Mahkota Teknologi Tbk (Emtek) to organise the fragmented industry in the country last year. Read More:
Tesla's Gujarat plant likely to be announced during Vibrant Gujarat in presence of Elon Musk: Report Prominent electric vehicle maker Tesla's plans to set up a plant in India will be made public in January during the Summit in the presence of its CEO , a report said on Thursday. The Ahmedabad Mirror reported that Gujarat fits in well with Tesla's export-oriented approach which will cater to both domestic and international demand. Earlier, Gujarat, Maharashtra and Tamil Nadu were being considered by the company given the well-established ecosystems for electric vehicles and exports. Gujarat government's spokesperson Rushikesh Patel Patel on Thursday expressed considerable optimism about that Elon Musk, Tesla's CEO, would consider Gujarat for investment, emphasizing the welcoming stance of the government, news agency ANI reported. Tesla doesn’t import cars directly into India because of the high tariffs that are levied. The government had said that there is no proposal to provide subsidy on import duty on imports of electric vehicles into the country. Tesla was willing to invest up to USD 2 billion to set up a local factory in India if the government were to provide a concessional duty of 15 % on imported vehicles during its first two years of operations in India, ET had reported in November. The Indian government wants to cut the number of cars that are imported at a concessional tariff, in comparison to the numbers proposed by Tesla. Tesla was likely to localise up to 20 % of the value of made-in-India cars in two years which would increase to around 40 % in four years. India currently imposes a 100 % import duty on cars with cost, insurance and freight value exceeding USD 40,000, and 70 % duty on vehicles cheaper than that. To start with, Tesla wants to sell its Model 3, Model Y and a new hatchback in India, which are priced at around Rs 32 lakh, Rs 36 lakh and Rs 20 lakh respectively in the United States. Should India grant concessional import duty, the prices of Model 3 and Model Y could be around Rs 38 lakh and Rs 43 lakh respectively, ET reported. News agency Bloomberg had reported that Tesla could initially commit to a minimum investment of around USD 2 billion and may increase purchases of auto parts from the nation to as much as USD 15 billion.
With 50% of pvt bus fleet set to be scrapped, Kolkata faces commute crisis A city where 56% of the population relies on buses for daily commute, is facing a potential transportation crisis: half of its privately-owned bus fleet is set to be scrapped this year after completing 15 years in service. With only 26 new buses purchased by private operators this year, there is a significant shortfall between demand for public transportation and supply. The impact of diminishing bus fleet is being felt for the past few years with over 400 buses being withdrawn annually. "If so many buses suddenly stop plying, the impact will be telling. Unlike Mumbai, a train city, is a bus city. Mobility of citizens is bound to be crippled," said A K Das, a former chief traffic and transportation engineer. Currently, 3,500-odd private buses operate in Kolkata, a significant drop from the 6,000 that were in service before the 2020 Covid pandemic. The decline is primarily attributed to viability issues as bus fares were last revised in 2018. While bus operators have informally revised fares, most believe such an informal system is unlikely to instil confidence in investors to purchase new buses to fill the void. "Who knows when the govt will suddenly crack down on operators for this revised fare, which is illegal but done for the sake of survival," said an operator on route 12C. Anumita Roychowdhury, executive director of Centre for Science and Environment and a transport expert said, "There are telltale signs of the weakening of , which received a body blow during the pandemic. It is a pity that Kolkata, which boasts a robust and reliable public transport system, has been weakening so fast." Since 2008, following a Calcutta High Court order, all commercial vehicles that have been in service for 15 years have to be scrapped due to higher levels of toxic emission. As 90% of commercial vehicles, including buses, are diesel-powered, they release as many as 24 carcinogenic components in their exhaust fumes. The decline in the number of buses has led to a significant increase in the use of personalised modes of transport, like four- and two-wheelers, resulting in clogging of road space and posing daily challenges to the city . "As buses are thinning in numbers, I am spending nearly four times that of my commute cost in pre-pandemic days. I am using autos, often hiring bike cabs snd saving less," said Bikas Santra, an insurance agent. Traffic and transport planning experts say the city's focus has shifted from to a car-centric transit policy. Gour Krishna Ghosh, a transport planning expert, explained, "We have built elevated corridors which eat into the carriageway. The elevated corridors mainly serve the car population. So by building flyovers and elevated corridors, we are facilitating faster movement of at the cost of public transport below on the congested road space. Thus, we are encouraging cars and discouraging the bus system, which has always been the backbone of the
faster movement of at the cost of public transport below on the congested road space. Thus, we are encouraging cars and discouraging the bus system, which has always been the backbone of the city's transportation."
India's ONGC struggling to move Russian oil to Asia as sanctions bite - sources By Nidhi Verma and Jonathan Saul NEW DELHI/LONDON: India's ( ) is struggling to find a vessel to ship 700,000 barrels of crude from Russia's Far East, in a growing sign that complex trades involving one of Moscow's biggest partners are being interrupted by Western sanctions, sources say. Several Indian companies including ONGC have stakes in and gas assets, and India has been buying more Russian crude since Moscow invaded Ukraine, snapping up the popular Urals crude grade, while other buyers have shunned Russian exports. ONGC has a 20% stake in the Sakhalin 1 project that produces a Russian grade known as Sokol, which ONGC exports through tenders. Sokol is mostly bought by North Asian buyers and loaded from South Korea. However, Moscow's ability to ship that grade, which requires vessels that can break through ice, is becoming harder due to concerns from shippers over reputational risk and the increasing difficulty for Russian assets to find insurance coverage. Normally, cargoes of Sokol oil are first shipped from the De-Kastri terminal in Russia's Far East using ice class vessels to South Korea, where they are then reloaded onto a conventional tanker. Indian refiners rarely buy the Sokol grade, as difficult logistics make the crude costly. There are a limited number of ice class vessels in the global merchant fleet that can be deployed at any time. ONGC relies on ice-class vessels provided by Russia's state-owned Sovcomflot (SCF) for the transportation of crude to Yoesu port in South Korea, and from there the Indian company exports to buyers, mostly in North Asia. However, sanctions imposed on Russia by the United States, Britain, the European Union and Canada after Moscow's invasion of Ukraine, in addition to specific restrictions on SCF, are making it harder for Russian ships including SCF's fleet to maintain insurance and reinsurance cover for voyages, shipping sources said. Shipping companies are also less willing to move Russian oil in Asia, fearing the potential reputational risks involved with charters, the shipping sources added. Last month, ONGC did not receive any bids in its tender for export of Sokol as buyers backed out due to Western sanctions. That led to ONGC selling one cargo each to Indian state refiner Hindustan Petroleum Corp and Bharat Petroleum Corp ( ). BPCL's cargo was scheduled for lifting early next month from Yeosu port in South Korea, while was awarded the cargo for lifting in end-May, according to shipping sources. BPCL had floated an enquiry to charter a vessel from the South Korean port and sought to book the vessel Atlantis for early May shipments, shipping reports show. The fixture failed, however, as ONGC could not arrange a vessel to Yeosu port partly due to issues with securing insurance for the voyage, sources said. ONGC, HPCL and BPCL did not respond to Reuters emails seeking comment. This year, India has bought more than twice
port partly due to issues with securing insurance for the voyage, sources said. ONGC, HPCL and BPCL did not respond to Reuters emails seeking comment. This year, India has bought more than twice as much crude from Russia in the two months since its invasion of Ukraine as it did in all of 2021. Russia's maritime sector is grappling with the winding down of services including ship certification by leading foreign providers such as Britain's LR and Norway's DNV. Marine fuel sellers have stopped serving vessels flying the Russian flag at major European hubs including Spain and Malta in another blow to Moscow's exports, sources with knowledge of the matter told Reuters. The EU in March listed SCF among Russian state-owned companies with which it was "prohibited to directly or indirectly engage in any transaction" after a wind down period ends on May 15. Also Read:
Iron man Elon Musk places his Tesla battery bets By Hyunjoo Jin and Paul Lienert As 's profits and prices grabbed headlines last week, a potentially pivotal development for the global car industry flew largely under the radar. The U.S. electric pioneer disclosed that nearly half of the vehicles it produced in the first quarter were equipped with lithium iron phosphate (LFP) batteries - a cheaper rival to the nickel-and-cobalt based cells that dominate in the West. The revelation, eclipsed by the carmaker's $19 billion revenue and Elon Musk's Twitter charge, was the first time Tesla had disclosed such specifics about its batteries make-up. It flashed a strong signal that iron-based cells are finally starting to win global appeal at a time when nickel is blighted by supply concerns due to major producer Russia's war in Ukraine and cobalt is tainted by reports of dangerous conditions at artisanal mines in Democratic Republic of Congo. Tesla is not alone in betting that , already popular in China, can make inroads into Western markets. More than a dozen companies are considering establishing factories for LFP batteries and components in the United States and Europe over the next three years, according to a Reuters review of the (EV) scene and interviews with several players. See accompanying factbox on the plans: "I think lithium iron phosphate has a new life," said Mujeeb Ijaz, founder of U.S. battery startup Our Next Energy which says it is scouting a U.S. production site. "It has a clear and long-term advantage for the electric vehicle industry." Ijaz has worked in the field long enough to see a technology that failed to catch on in America a decade ago gather fresh momentum. He was chief technology officer at Michigan-based A123, an early producer of LFP batteries that went bankrupt in 2012 and was acquired by a Chinese company. He and other LFP advocates cited the relative abundance and cheaper prices of iron as a key factor beginning to outweigh the drawbacks that have held back the adoption of LFP cells globally - they are bigger and heavier, and generally hold less energy than NCM cells, giving them a shorter range. There is a mountain to climb, though. LFP chemistry has accounted for just 3% of EV batteries in the United States and Canada in 2022 and 6% in the European Union, with nickel-cobalt-manganese (NCM) cells accounting for the rest, according to data from Benchmark Mineral Intelligence (BMI). The race is far tighter in China, where LFP commands 44% of the EV market versus NCM's 56%. It could be long and tough road for Western LFP cell manufacturers seeking to prosper against rivals from China, which accounts for about 90% of global production. A shorter-term concern for such companies, according to BMI's chief data officer Caspar Rawles, is a continued dependence on Chinese suppliers for refined materials. LFP cells also contain more lithium than NCM rivals, and industry experts raise concerns that iron-based batteries' historic
is a continued dependence on Chinese suppliers for refined materials. LFP cells also contain more lithium than NCM rivals, and industry experts raise concerns that iron-based batteries' historic advantage of being cheaper to produce could be eroded and even erased by rising costs of the metal. NEVER LEAVE LOS ANGELES? Tesla has been using LFP in some entry-level, U.S.-made versions of its Model 3 since last year, expanding their use of the technology beyond China, where about two years ago it started using LFP batteries made by Chinese firm CATL, the world's largest maker, for some Model 3s. Yet given the historic dominance of nickel-and-cobalt based batteries in the United States, the scale of Tesla's usage of LFP cells in the first quarter of 2022 - fitted in roughly 150,000 cars produced - took some analysts and battery specialists by surprise. Tesla did not respond to a request for comment. Mitra Chem, co-founded by former Tesla battery supply chain manager Vivas Kumar, is working to build LFP , initially in California. He said he expected nickel prices would remain volatile because of supply chain dislocations. "The best insurance policy that automakers have ... is to incorporate more iron-based cathodes in their portfolio," he added. U.S. electric vehicle startup Fisker, which plans to use LFP batteries in its lower-range SUVs, plans to initially source cells from CATL. But CEO Henrik Fisker said that it was in talks with battery suppliers to source batteries made in the United States, Canada or Mexico from 2024 or 2025. Local sourcing is important because it is expensive to ship the heavy packs from Asia, especially for low-cost, high-volume vehicles, according to Fisker. It is also not environmentally friendly, added the CEO, who is confident there will be a major place for LFP batteries in the global EV mix. "(If) I never leave Los Angeles, I never leave San Francisco, I never leave London ... I think that's where LFP comes in really well," he said of urban-dwelling EV owners who drive shorter distances. Other premium carmakers are also looking at the chemistry following the outbreak of the Ukraine war, including Volkswagen's Audi, which hasn't used LFP batteries before. "It may well be that we will see LFP in a larger portion of the fleet in the medium term," Audi CEO Markus Duesmann said in March. "After the war, a new situation will emerge; we will adapt to that and choose battery technologies and specifications accordingly." BMW's chief procurement officer Joachim Post also said recently that the company was examining the merits of LFP. "We're looking at different technologies to minimize the use of resources and also we're looking at optimizing chemistry," he added. DISCIPLINED, NO SCREW-UPS Among their advantages, LFP cells tend to pose less of a fire risk than NCM cells, and can be fully charged continually without losing as much performance over the life of the battery. As the global EV market expands, the chemistry is expected
less of a fire risk than NCM cells, and can be fully charged continually without losing as much performance over the life of the battery. As the global EV market expands, the chemistry is expected to find its way into more entry-level consumer and commercial vehicles where longer range is not as critical. Yet the hurdles to widespread LFP cell adoption include finding solutions to improve energy density - thus reducing the size and weight - and grappling with the rising cost of lithium. Meanwhile, building out and scaling up LFP production in the United States and Europe will take time, underscoring the challenge to Western governments in reducing reliance on China. American startups face an uphill battle of scaling up to compete with CATL (Contemporary Amperex Technology Ltd), which is backed by Chinese government subsidies and supplies Tesla, among others, with LFP cells. "Everything has to be disciplined manufacturing, without any screw-ups," said Bob Galyen, a former chief technology officer at CATL who now runs a batteries consultancy, Galyen Energy. He also noted: "A U.S.-based company does not have to worry about the geopolitical issues that China and U.S. have presently." Also Read:
E-2W startups expect sales volumes to reach 8 million to 10 million units by 2025 New Delhi: In spite of the supply side constraints the market looks promising for the electric two-wheelers, especially scooters, and growing by 40X- 50X, their sales will be 8 million to 10 million units in 2025, according to the startup founders present at the 2022 on Wednesday. The nascent Indian clocked about 2.34 lakh unit sales of electric two wheelers, mostly e-scooters, in 2021. Tarun Mehta, CEO, Ather Energy feels the demand is very much there, so 6million -8 million (60-80 lakh) units could be electric in the overall two-wheeler industry by 2025. In the scooter market, he expects the overall sales to be about 8 million - 9 million (80lakh -90 lakh) units a year in the next three years. “Out of this, a vast majority should be electric, probably around 5 million -6 million (50 lakh -60 lakh), or even more.” About e-motorcycles, he said, “In the next three years, the industry will still be at an early stage, but given the size of this market, even an early stage might end up meaning about 1million - 2 million (10-20 lakh) unit sales, if not more.” Mehta said that the supply side issues should be okay by the time the current year ends. “I think with new players coming in there is enough potential and interest in the Indian electric story and their supply chains.” Suhas Rajkumar, founder and CEO, Simple Energy, said the startup is expecting 10 million (1 crore) units of electric two-wheeler market in India by 2025. However, he expressed his caution about the ongoing disruptions in the global supply chains. “There is demand, but can we match the demand. because of supply chain constraints, is one thing that needs to be sorted out,” he said. To bring things to perspective, in the calendar year 2021, electric two-wheeler sales reported a phenomenal growth of 132% to 2,33,971 units as against 1,00,736 units in 2020. This was spurred by the incentives under the central government’s FAME-II scheme coupled with similar EV policies in about 18 states in the country. Interestingly, in 2021, for the first time, registered high-speed scooter sales surpassed the sales of their unregistered slow-speed counterparts. This may be attributed to the FAME-II scheme which only incentivises vehicles based on their battery capacity at INR 15000 per kwh, ultimately tapering the gap in prices of the high and low -speed scooters. The slow speed scooters, which cannot go faster than 25 kph, do not benefit from any government subsidies but they need no registration or insurance. In the times to come, there are plenty of factors supporting the growth of this industry. The leader of the conventional two-wheeler market is buoyant about its recently unveiled EV brand ‘Vida’ and set to enter the market with its new product in June. Honda Motorcycle & Scooter India (HMSI) also said it will launch its first EV product in the next fiscal. Alongside, many new players like Ola Electric, Bounce
market with its new product in June. Honda Motorcycle & Scooter India (HMSI) also said it will launch its first EV product in the next fiscal. Alongside, many new players like Ola Electric, Bounce Infinity, and Ultraviolette which launched their products in the latter half of the year will begin their deliveries now. Going forward, the writing is on the wall and electric two-wheeler sales are bound to grow multiple times. What is yet to be seen is the scale at which it manages to capture the Indian consumers. Also Read:
Indian startup unfolds intelligent instrument cluster for EVs New Delhi: In an era where sustainability meets sophistication, this startup's smart stands as a testament to India's prowess in shaping the future of electric mobility. Against the backdrop of EVangelise '23, organised by iCreate, Ahmedabad, an , the Bengaluru-based Technologies, introduced an intelligent instrument cluster poised to redefine the driving experience for electric vehicles. The innovative technology not only addresses the current challenges in instrumentation but also points to a new era of connected, data-driven driving interfaces. Auklr, with its , is trying to change the landscape of the automotive industry, particularly in the context of electric vehicles (EV). This technology provides a straightforward and efficient presentation of key vehicle parameters to the driver in real-time, aiming to minimize distractions and enhance the overall driving experience. The brand's mission is to become one among the Top 5 Automotive AI companies globally and to eventually be a successful multinational technology conglomerate and build technology products with commitment and success. Auklr aims to create disruptive technology solutions at affordable prices. In an exclusive interaction with ETAuto at EVangelise '23, , founder and CEO, and , co-founder and CBO, said that the instrument cluster can be customised and made available for any electric vehicle but for now they are focussing on small and medium vehicles because automotive infotainment was lacking in this segment. "It turns out there's a simple explanation. The Digital Cluster industry is dominated by a single company that has been able to keep prices artificially high while reaping huge profits from emerging EV startups who have no other options. Auklr aims to create an alternative. By circumventing traditional channels, designing digital clusters in-house, and engaging with EV Startups directly, we're able to provide higher-quality, better-performing rich features which are affordable and can be installed in all-segment vehicles for the majority of the automobile industry." The founders said they believe Clusters are evolving from analog meters and gauges to all-digital clusters that provide the information you need for a safe, convenient and stress-free drive. They strive to offer an intuitive user interface to present this information in an ergonomic and easy-to-consume manner, making the user's journey a relaxed and pleasant experience to every vehicle on this planet. Naveen highlighted the distinctive features of their product, emphasizing the gap in the market left by competitors who predominantly offer solutions on Linux. Unlike its counterparts, the startup's digital instrument cluster provides a dynamic and customizable interface, allowing users to change themes, access dynamic over-the-air updates, and install applications from an App Store—a core competitive advantage in Android They boasts of being the first
interface, allowing users to change themes, access dynamic over-the-air updates, and install applications from an App Store—a core competitive advantage in Android They boasts of being the first Indian company to venture into this space, competing with established giants like Bosch and Continental. Despite their short two-year timeline, the company has achieved significant milestones. From developing the initial prototype to securing a production order from their first customer, they have demonstrated agility and proficiency in both hardware and software development. One of their key differentiators is the integration of artificial intelligence (AI). Their proprietary Auklr OS processes data from various vehicle parameters, such as the Battery Management System (BMS), offering real-time insights into battery temperature—a feature unmatched by competitors. Moreover, they have collaborated with Odysse's electric motorcycle, integrating their smart BMS into the instrument cluster. The Auklr founders said their expertise in both hardware and software sets the startup apart from other companies that often focus on one aspect. It maintains control over its intellectual property, from hardware design to its own operating system (OS). This comprehensive approach enables it to offer unique features and stay ahead of the competition, they said. The AI integration goes beyond providing real-time data; it extends to a cloud platform that offers live tracking, trip analysis, and driver behavior insights. Users can access information about their driving patterns, compare them with other users, and even receive a driving score. This wealth of data serves not only to enhance the user experience but also to aid in predictive maintenance and insurance-related decisions.
autoX Awards Winners Announced: These 10 Cars & Bikes are the ‘Best of 2023’ In order to recognise true innovation, performance, and engineering excellence, autoX proudly presents the results of its annual mega test and awards, which crown the 'Best of 2023'. Every year, autoX meticulously compiles a comprehensive list of the best cars, motorcycles, and scooters launched in the past 12 months. These vehicles undergo rigorous testing by an esteemed jury, comprised of road testers with a collective experience of over half-a-century in evaluating cars and bikes. The criteria for the awards encompass a thorough analysis of quality, comfort, ride, handling, refinement, design, drivetrain, practicality, value-for-money, that elusive X-factor, as well as an all-important lap-time achieved on the test track. Five four-wheelers, three two-wheelers, as well as ‘Performance Car of the Year’ and ‘Performance Bike of the Year’ make up the ten most outstanding machines of the year, which are honoured with a ‘Best of 2023’ trophy at a prestigious award ceremony held at the Andaz hotel at Aero City in New Delhi. Transparency The put a premium not only on outstanding machinery but also on absolute transparency and impartiality. To ensure transparency, all the points are published, and the points from each jury member are averaged to ensure that no biases come into play – resulting in the fact that only the most exceptional vehicles receive this recognition. The Jury The autoX team of seasoned road testers carefully score each vehicle across various parameters. The 4W jury consists of Founder and Editor-in-Chief Dhruv Behl, Managing Editor Ishan Raghava, Digital Editor Manav Sinha, and Road Test Editor Shivank Bhatt. The 2W jury consists of Digital Editor Manav Sinha, Road Test Editor Shivank Bhatt, and Principal Correspondents Karan Mathur & Dhruv Paliwal. Dhruv Behl, who has podium positions in rallying and racing – in everything from the Raid-de-Himalaya to the MRF Formula 1600 single-seater series – and two-time JK 1,000cc motorcycle champion Simran King set the lap times to provide an objective rating of performance. The Test Track The annual Mega Test took place at the renowned ICAT (International Centre for Automotive Technology) facility and test track, owned by the Ministry of Heavy Industries. The 2 kilometre track features two straights connected by a steep banking at each end. The autoX team also added a chicane, a slalom, and an emergency braking zone to provide a thorough assessment of vehicle performance. Dhruv Behl, Editor-in-Chief, autoX, said, “Our aim is to be as scientific and objective about this process as possible, with the final goal being to provide car and bike buyers, as well as enthusiasts, a definitive list of the top-ten machines of the year across segments. If you want to know which of the machines launched in the past year are truly outstanding, look no further than the autoX awards and, in this case, the ‘Best of 2023’.” Here are
year across segments. If you want to know which of the machines launched in the past year are truly outstanding, look no further than the autoX awards and, in this case, the ‘Best of 2023’.” Here are the ten autoX award winners: Best of 2023: 4W - BMW i7 - - - - Best of 2023: 2W - - - Ducati Monster SP Best of 2023: Performance - Lamborghini Urus Performante - The Awards are an annual event and the Mega Test has now been conducted for wellover a decade. The autoX Awards 2023 were done in collaboration with Indian Oil as Exclusive Fuel Partner, ICICI Lombard as Exclusive Insurance Partner, Tamil Nadu Tourism as Tourism Partner and BMC as Technical Partner. To read more about the autoX awards, click .
South Korea to provide USD 29 bn to support battery industry over 5 years will provide 38 trillion won (USD 29 billion) in to strengthen its over the next five years, as to secure chains remains fierce, the government said on Wednesday. South Korean battery firms like LG Energy Solution, Samsung SDI and SK On, a unit of SK Innovation, held a 49% share of the global excluding China as of 2022, the joint statement from a number of ministries said. But their dependence on foreign countries for key materials made diversification crucial, it added. The country plans tax incentives and loan support for South Korean firms investing overseas to secure mining rights for minerals and other battery materials, and strengthen financial support for companies that refine and reuse minerals. It also plans to increase financial support such as loans, guarantees and insurance from institutions like the Export-Import Bank of Korea to battery industry firms, including those investing in North America to meet the terms for tax allowances under of the U.S. Inflation Reduction Act (IRA). South Korean battery firms have tempered their 2024 sales outlooks as electric vehicle sales slow, partly due to a spike in auto financing costs for consumers. The announced measures, however, sought to strengthen the country's secondary battery industry's competitiveness to the highest in the world in the long-term, the statement said.
South Korea to offer USD 5.3 bn in financing to support battery investment in North America on Friday said it will provide 7 trillion won ($5.32 billion) in financial support for its seeking to invest in infrastructure in over the next five years to help firms cope with the U.S. Inflation Reduction Act. Government support will include lowering lending rates and insurance premiums by as much as 20% as well as providing more loans and tax credits for Korean firms' battery and material production facilities in the region, the industry ministry said. The U.S. Treasury Department last week unveiled stricter electric vehicle (EV) tax rules, requiring to source a certain percentage of critical minerals for from the United States or a U.S. free-trade partner to qualify for new U.S. federal incentives under the Inflation Reduction Act. The act requires 50% of the value of battery components to be produced or assembled in North America to qualify for a $3,750 credit and 40% of the value of critical minerals sourced from the United States or a free trade partner also for a $3,750 credit. "Both the government and businessmen should cooperate to find solutions together to effectively cope with situations changing rapidly after the Inflation Reduction Act," Trade Minister Lee Chang-yang said while presiding over a meeting with major battery cell makers and materials firms. In November, South Korea launched the government-backed battery alliance to better source key metals dominated by China to bolster battery supply chain stability. South Korea's LG Energy Solution Ltd (LGES), On comprise three of the world's five biggest EV battery cell makers, commanding more than a quarter of the global market and supplying the likes of Tesla Inc, Volkswagen AG and General Motors Co. In March, LGES said it would resume a stalled U.S. battery project with a $5.6 billion investment in Arizona to qualify for federal incentives under the Inflation Reduction Act.
TPG exits Landmark Cars; sells 11.25% stake for INR 293 cr US-based private equity major on Friday sold its entire 11.25 %stake in chain for INR 293 crore through an open market transaction. With this transaction, has exited the automobile dealership company. According to block deal data available with the National Stock Exchange (NSE), TPG through its affiliate TPG Growth II SF Pte Ltd divested a total of 44.56 lakh shares, amounting to an 11.25% stake in . The transaction took place at INR 658 per share, aggregating the transaction size to INR 293 crore, the data showed. These shares were picked up by a host of investors, such as Societe Generale, Goldman Sachs Funds, Unifi Capital, Abakkus , 3P India Equity Fund 1 and . Following the deal, shares of Landmark Cars surged nearly 10% to end the trade at INR 727 on the NSE. According to the shareholding pattern with stock exchanges, TPG owned 44.56 lakh shares or 11.25% stake in Landmark Cars during the quarter that ended March 31, 2023. Landmark Cars, which made its stock market debut in December 2022, is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. Earlier this week, TPG divested its entire stake in NBFC through open market transactions. In another block deal on the BSE, , one of the promoters of Ltd, has offloaded 6.25 crore shares, amounting to a 3.26% stake, in the company for over INR 266 crore. The shares were sold at an average price of INR 42.6 to Wilson Holdings. Pitti held over a 32% stake in Easy Trip Planners, which runs the online platform EaseMyTrip, as of the March quarter. Meanwhile, Shapoorji Pallonji and Company Pvt Ltd offloaded 35 lakh shares of Sterling & Wilson Renewable for INR 103 crore through a block deal on the NSE. Shares of Easy Trip Planners settled two %lower at INR 42.1 on the NSE, while those of Sterling & Wilson Renewable closed at INR 289.45, down 2.87 %from the previous close.
Nomura initiates coverage on this new-age stock with 'buy' NEW DELHI: Global brokerage has initiated coverage on with 'buy' as it believes the company has high growth visibility and will benefit from rising digital spends by (original equipment makers) and dealers. Further, at current levels, it said, the stock is inexpensive given growth prospects. Nomura has set a target price of INR 770 on the stock. Interestingly, in order to reach all-time high level of INR 1,610, the stock will need to more-than-double from the said target. From the last close, it suggests an upside potential of nearly 19%. Tech is a leading player in India in classifieds and auction and re-marketing for used vehicles. It operates various platforms like , CarTrade and BikeWale. "CarTrade will benefit from rising digital spends by auto (14% share in FY20) and dealers (6-8% share), as a majority of customers are using the online medium to search for cars. We estimate auto digital spends to record a 22% CAGR over FY22-25," said Nomura in a note dated April 28. The brokerage sees secular growth in its auction business Shriram Automall ( ), led by rising organized share, limited competition, tie up with Ashok Leyland and proprietary algorithms driving higher conversions. It said SAMIL revenue could post a 25% CAGR over FY22-25, with EBITDA margin at 26%. It added that its used car business abSure also has a high potential, as India’s used to new car ratio is 1.4 times vs 2-3 times globally. Nomura says CarTrade can continue rising at 12% CAGR over FY21-26. "Our analysis of business models of new tech players and margins across segments indicates that there is very high growth potential for the total addressable market and new tech players can continue to gain share as over half of the industry is unorganised. We build in 29,000 volumes in abSure by FY24 (4% of revenue), and see potential for CarTrade to add other services such as financing and insurance," said the global brokerage. Nomura said it values CarTrade using SOTP and ascribes 9x EV31 times FY24 EVEBITDA, respectively, which we believe is inexpensive given the growth prospects. Hence, we initiate coverage of CarTrade with a Buy rating," it added. Key risks to target: Also Read:
CarDekho CFO aims to achieve EBITDA level profitability before IPO in 2023 In an interview with ETCFO, Girnar Software-owned CarDekho Group CFO shared his future growth and expansion plans as it claims to go for listing on Indian bourses by next year. “With scale, leverage, efficiencies, and process improvements we are trying to contribute towards our total EBITDA level profitability and that is what we intend to achieve before IPO,” Gupta told ETCFO . In FY23, the company sees a healthy growth upwards of 50% to 60% year-on-year and it comes with growth and expansion plans. “We may look at some Gulf Cooperation Council (GCC) countries as well as the growth path continues,” he shared. On the acquisition side, he said, “we do look at opportunities that are relevant, any good asset to partner - anything revolving around auto tech solving customer challenges in a profitable manner like services of cars, rental, leasing or new technology like EVs would be relevant for us.” The Edited Excerpts: Q: Inflation, commodity price volatility has not only impacted the prices of the cars but many buyers were said to wait-it-out till prices ease, in such times used-car market has seen an uptick. What has been the impact on your business as you deal with both used and new cars? Mayank Gupta: The used car industry is pretty massive, almost four to five lakhs cars per month is the sales in the country. The industry continues to grow in high double digits. Growth story of the used cars is long term for us, however, the pent up demand, customer need and affordability are macro factors that are reasons for the uptick. And beyond commodity prices, there's a lot of (customer) behavioral shifts during COVID times. People are much more likely, especially the new generation, to buy a first used or second hand used car. Inflation in India historically has been in the 5% to 7% range. Though it is on the higher end, it's not significant. In our industry both new and used cars have different impacts on the business. Besides, commodity prices and semiconductor shortage are challenges which have dragged the supply chain issues. Amidst these challenges, the used car business has shown positive impact in spite of the rising prices of new cars. Used cars have become more affordable. Q: Used car business is an unorganised sector, how many used cars and unused cars do you deal with in a year?. What are the challenges as a CFO operating in this space? Mayank Gupta: In the used cars business we are building our scale upwards of more than 30,000 cars per year. However, the challenge between organized versus organized is a classic one. A sector that deals in mass, we have almost 20,000 dealers in the used car industry in the country. We see this as an advantage because we are solving customer’s problems by leveraging products and tech solutions. On a digital platform choices are unlimited, secondly, it comes with trust and warranty. The only challenge dealing with an unorganized sector
problems by leveraging products and tech solutions. On a digital platform choices are unlimited, secondly, it comes with trust and warranty. The only challenge dealing with an unorganized sector is that companies do the right things in the right way, following every law, however, may not always have the highest level of compliance. This puts pressure on unit economics, at least in the short term. But, in the long term, if you do the right things with scale, the issue of unit economics will solve itself. Q: How are you looking at the festive season impact on your business this financial year and what are your expectations? Mayank Gupta: The year 2022 will be rock solid. We expect a good season ahead for all of our businesses as compared to 2020 which was a dampener and 2021 was when the economy was recovering from pandemic impact. Q: In the car portfolio business, what is the market penetration strategy when we talk about opportunities in tier 2, tier 3 cities in FY23? Mayank Gupta: The plan is to keep tiering in the country. The content and research platform is from every city in the country, and is open for new launches or old car models research. On the used cars transaction side it is operationally heavy. So we are going city by city, including tier-2 cities. In FY23 and beyond we are looking for healthy growth - upwards of 50-60% year-on-year and it comes with growth and expansion plans. The business model for us is Business to Business to Consumer (B2B2C). Both our financial services and the insurance business will continue to expand into the interiors of the country. On the used car transaction as we solve unit economics city by city, we don't want to grow for the sake of growth but logical and sustainable. Q: CarDekho has expanded in other geographies as well like South Asian markets and it has been operating in Malaysia, the Philippines, and Indonesia. So what is the expansion plan going forward? Mayank Gupta: We may look at some Gulf Cooperation Council (GCC) countries as well as the growth path continues. But our strategy is to make sure that we solve the product market fit in the country completely before we go externally. We wouldn't want endless growth and then end up closing and shutting down those operations later on. Hence, we have been cautious with our plan, but continue to go deeper in those markets as well as adjoining countries. On the acquisition, we do look at opportunities that are relevant, especially in these times, any good asset to partner - anything revolving around auto tech solving customer challenges in a profitable manner. Services of cars, rental, leasing, or new technology like EVs would be relevant for us. Q: What are the plans for Initial Public Offering (IPO) as the company has already stated that it will go for listing by 2023? Mayank Gupta: In today's Indian market as well as global markets you need to be a profitable tech company. We are focusing our energy to get to breakeven and then profitability soon
listing by 2023? Mayank Gupta: In today's Indian market as well as global markets you need to be a profitable tech company. We are focusing our energy to get to breakeven and then profitability soon and plan to achieve it in the next 12 months. Also, plan to line up the IPOs around that same time, which means a year from now we intend to get listed on Indian public markets. We are getting ready not just in action, but also in our mindset. For example, we have started quarterly investor calls for our investors, and so on. We are doing initiatives before we hit the market, we should be completely ready on how to run the company. While unit economics remains our key focus. Out of our four businesses, the auto content research platform is a profitable business, financial services, and insurance, we have tested the cohorts and shown break-even profitability, right now we invest in growth. As we have tapped the equation there we can be profitable soon. In the used car business we are trying to build unit economics, and chase sustainable growth. With scale, leverage, efficiencies, and process improvements we are trying to contribute toward our total EBITDA level profitability and that is what we intend to achieve before IPO. By leveraging operating lever, by controlling fixed costs and incremental gross margins, and will give a positive impact on revenue. Q: What is your hiring plan for FY 23? Mayank Gupta: Each of our businesses are growing. We're very solid growth plans in Southeast Asia and also strong growth plans in financial services, insurance business. Hiring is possible. There is no one specific number in mind, but clearly, the macro trend is very positive and we are actually actively engaging in it.
Union Budget 2022: Auto sector wants fiscal and policy support to battle the odds for resilience and survival New Delhi: A year and half of economic slowdown followed by two-straight years of pandemic shattered the markets and the Indian automotive industry has been terribly dislocated. The industry is hopefully looking at this year's budget for some relief and remedies to fight against the internal odds and the external factors like and unbridled commodity price increases. Tax reductions with uniform GST rate, export incentives, thrust on R&D efforts, boost to capabilities, and investment in infrastructure development and promotion of electric vehicle ecosystem are some of the important issues which the industry wants finance minister Nirmala Sitharaman to address in the Union Budget for 2022-23 on February 1, 2021. A recent , conducted by Grant Thornton Bharat across sectors, revealed that respondents from Indian motown are seeking acceleration of skill development, import-substitution, incentivisation to foster electric vehicle (EV) sales, diversifying sources of finance and building supply chain resilience. According to the survey, 84% of the respondents expect direct exemptions and incentives for , 74% seek fiscal support for startups and 75% want improved automotive research and development. Over 1,000 respondents collectively were part of all the surveys. Besides, a large chunk of participants is also looking for import substitution and further clarification and boost for local electronic manufacturing. In the past year, high fuel prices and substantial rise in have massively crushed the buying sentiments of the consumers. Experts from different verticals of the industry have voiced their recommendations on the various issues that need to be taken to the notice of the Centre in the . Here’s what they have to say: "Pioneering companies like Tesla, Rivian, Audi, BMW among many others, must be given a time-bound concessionary customs rate for the import of vehicles," Aaditya Uddhav Thackeray , Maharashtra State Minister. “We expect the Union Budget to have a long-term holistic growth perspective for the automotive industry, by helping to create consumer demand and growth for the sector. This budget should look at the existing taxation structure, offer relief and provide necessary stimulus for creating customer demand and subsequent growth. With increasing focus on developing the EV ecosystem, we also expect long-term stability in the existing e-mobility policies. We expect the current benefits to the customers related to GST benefits to stay, thus encouraging more customers to adopt e-mobility. In addition, we also expect an increased government spending for developing the charging infrastructure, in context of a rapid growth forecasted in the EV segment in India,” Martin Schwenk, Managing Director & CEO, Mercedes-Benz India. "Apart from funds for infrastructure, focus also needs to be drawn on how to sustain and increase execution by
the EV segment in India,” Martin Schwenk, Managing Director & CEO, Mercedes-Benz India. "Apart from funds for infrastructure, focus also needs to be drawn on how to sustain and increase execution by allocating funds for the same – for instance, highway construction has dropped this year. There is also an imperative to focus on better co-ordination between the Centre and State Governments for faster clearances. Urgent measures are also required to address the issues of spiralling input costs such as steel and cement. Measures to enhance global competitiveness of Indian manufacturers will also help boost exports. A well-designed Production Linked Incentive (PLI) Scheme can help the Construction Equipment Industry achieve its full growth potential and make India a global manufacturing and export hub for construction equipment," Sandeep Singh, Managing Director, Tata Hitachi. "This year, the aspiration is to see a strategy that can give a renewed thrust and a much-needed impetus to the manufacturing sector to help continue the spirited performance, some sections of the industry have shown in 2021. PLI and RoDTEP are great steps in the right direction and the aim going forward should be to simplify the schemes and focus on the benefits spreading across the industry, in addition to the bigger players. This needs a strategic solution rather than a tactical one. While IT and ITeS sectors are booming, infrastructure-related projects and the real estate sector seem to be on an upward trend since last year, and this uptick must be encouraged further," Satyakam Arya , MD and CEO, Daimler India Commercial Vehicles. The government has been taking significant steps to promote electric and safe mobility. We expect some relaxation for the research and development of new technologies. This will further motivate OEMs and automotive suppliers like us to invest in innovations and technologies for the country, Prashanth Doreswamy , President and CEO, Continental India. "The budget should unequivocally focus on improving infrastructure including highways and roadways, IT connectivity, and EV landscape. We wholeheartedly welcome PM Gatishakti- National master plan (NMP) and $27 billion worth PLI scheme to boost automotive industry and enable Indian manufacturers to integrate into the global value chains. We are expecting realistic announcements for sectors like battery cells, semi-conductors, as well as policy support for areas like remanufacturing and sustainability” Manish Bhatnagar, Managing Director, SKF India. "For a sector that contributes almost half of the industrial GDP and is experiencing disruptions due to the pandemic, as well as the advent of new technologies around electric mobility and regulatory changes, government support via Budget 2022 is required," Saket Mehra , Partner and Auto Sector Leader, Grant Thornton Bharat. “To indirectly uplift the EV sector further, income tax for the salaried employees has to be brought down. Coupled with enhancing the
Mehra , Partner and Auto Sector Leader, Grant Thornton Bharat. “To indirectly uplift the EV sector further, income tax for the salaried employees has to be brought down. Coupled with enhancing the tax- free Provident Fund amount and increased standard deduction will provide a much-needed relief to the ever-toiling salary class. Investments in semiconductor chip manufacturing, high-end electronics controls, rare earth magnets and other critical components of the electric vehicle will make India not only self-sufficient in the long term demand within the country but could also make it another significant source of low cost manufacturing for exports other than China,” Gajanan Gandhe , Country Head, Dana India. “Rural demand was impacted during the second wave and despite the farm sector cash flows remaining relatively healthy, the festive offtake was subdued. The untimely and excessive rainfall since September 2021 led to flooding in many regions and delayed kharif harvest/ rabi sowing. Consequently, rural demand sentiments have moderated over the past few months. The Government may make some announcements to support the rural community, especially amid increasing infections and consequent fears of higher medical expenses associated with the same,” ICRA observed. “Government must declare EVs for the commercial car industry as a priority sector, implement First Loss Guarantee Scheme for the sector and ensure that the public sector banks and financial institutions offer easy finance with minimal margin money requirement at low interest rates for EV fleets,” Rajiv K Vij , Founder, Plug Mobility. "Due to the inverted tax structure that currently exists (where EVs are taxed at 5% and battery packs alone at 18%). Several constraints are placed on new OEMs as well as the development of new models like Battery As A Service. While the nodal and state level delegation of charging station deployment and policies around that make the process faster, infrastructure spending support for DISCOMS to support EV charging will accelerate deployment of charging stations across the country," Arun Vinayak , co-founder and CEO, Exponent Energy. "EV-financing will become the biggest enabler for Electric Vehicle adoption in the next few years. The commercial EV segment, which is expected to be a key growth vertical, is faced with a lack of financing options, hence remains the biggest challenge. The industry has the potential to grow to USD 150 billion by 2030, hence the Finance Minister's attention to ease accessibility to financing, particularly for the unbanked will do good to the segment, " Sameer Aggarwal , Founder & CEO, RevFin Services. “The upcoming budget and the financial policy would also do well to introduce structured schemes and guidelines for covering electric propulsion retrofit kits under standard automobile loans and insurances, if not provide even better incentives. Moreover, it will be good to see technologies like battery swapping gain cover under the
retrofit kits under standard automobile loans and insurances, if not provide even better incentives. Moreover, it will be good to see technologies like battery swapping gain cover under the existing fiscal policy around EVs,” Arun Sreyas , co-founder, RACEnergy. Also Read:
India's lack of infra limiting super luxury car market growth: Lamborghini CEO A lack of adequate infrastructure and high tax rates are the biggest hurdles to the growth of super luxury car sales in India despite the country being home to the third-largest number of billionaires, said Global CEO & chairman, Automobili , . "It's a mix. But I think the biggest challenge is the infrastructure because we are in other markets where we have (high) taxation (but) where the volumes are higher," said Winkelmann. To be sure, India was one of the fastest-growing markets for the Italian car maker in CY2022. Lamborghini - which sells the Urus, Aventador and Huracan priced from INR 3-9 crore - increased sales by a third to 92 vehicles in the country last year. But contribution to global sales remains low at about 1%. Lamborghini expects to cross the three-digit mark for the first time here in the ongoing calendar year. Currently, India levies a rate of 28% on automobiles, with additional cess ranging between 1% and 22%, depending on the type of vehicle. Fully imported cars attract customs duty of 60-100% based on the size of the engine and cost, insurance, and freight (CIF) being close to USD 40,000. Winkelmann said one of the peculiarities of the Indian market is that Indians in general live all over the globe. "So, we have a lot of Indian customers in Europe, especially in the United Kingdom. We have (Indian customers in) the United States and in Southeast Asia. So, let's say, the community is even stronger than the market. So, it might also be that we have (Indian) customers, whose residences may not be in India, but they are driving Lamborghini cars," he said. 'Lamborghini Working on Strengthening Value Chain' Lamborghini closed last year with record sales of 9,352 units. The company is set to introduce the new Aventador towards the end of this month, pre-orders for which already run into three years. Winkelmann said despite high inflation and recessionary trends globally, the company has not seen any impact on demand so far. "The point is that we have no signs so far of markets which are weakening, we have markets which are more on and off through the year. Especially, the Chinese market. The rest of the world is very solid so far." The company, though, is working on strengthening its value chain to shield operations from disruptions in the altered geopolitical environment. "When we speak about the supply chain, it is clear that (there is) a new geopolitical situation. We are now stepping out both in terms of sales and in terms of supply chain," he said. For critical sourcing points, microchips or other things which are very important for building the car, Lamborghini will continue to leverage synergies with the Volkswagen Group. "The VW group is sourcing huge quantities. So, this is helping us. Synergy looks good. And on the other hand, for specific Lamborghini sourcing we are looking closer for suppliers... we are extending our range because we have in
quantities. So, this is helping us. Synergy looks good. And on the other hand, for specific Lamborghini sourcing we are looking closer for suppliers... we are extending our range because we have in front of us a completely different type of time. For sure, India is part of our sourcing process," he said. Separately, Winkelmann said Lamborghini too is moving towards cleaner vehicles, like most global peers. While the all-new EV, a fourth brand in the portfolio, is likely to be launched by the end of the decade, Automobili Lamborghini is moving towards cleaner hybrid vehicles in 2023 and will be investing 1.5 billion Euros over the next four years towards this endeavour.
Kross raises INR 150 cr from anchor investors ahead of IPO New Delhi: on Friday said it has mobilised INR 150 crore from anchor investors ahead of its initial public offering ( ). , , (MF), ICICI Prudential MF, Axis MF, Kotak Mahindra MF, Motilal Oswal MF, Edelweiss MF and Max Life Insurance Company are among the anchor investors. According to a circular uploaded on BSE's website, Ltd around INR 150 crore from 19 funds including mutual funds by allotting 62.49 lakh equity shares at INR 240 per equity share -- the upper end of the price band. The Jamshedpur-based company's IPO is a combination of a fresh issue of equity shares worth INR 250 crore and an Offer for Sale (OFS) aggregating up to INR 250 crore by the promoters. The OFS portion consists of equity shares to the tune of up to INR 168 crore by Sudhir Rai and INR 82 crore by Anita Rai. The issue, with a price band of INR 228-240 per share, will open for public subscription on September 9 and conclude on September 11. Kross proposes to utilise the net proceeds of the fresh issue for the purchase of machinery and equipment, payment of debt, and funding the working capital requirements of the company. Besides, a portion will be used for general corporate purposes. Bids can be made for a minimum of 62 equity shares and in multiples of 62 equity shares thereafter. Founded in 1991, Kross is a diversified player focused on manufacturing and supply of trailer axle and suspension assembly and a wide range of forged and precision machined high-performance safety critical parts for medium and heavy commercial vehicles and farm equipment segments. Equirus Capital is the sole book-running lead manager to the issue. The equity shares are proposed to be listed on the BSE and the NSE.
Russia is feeling the pain of Europe’s oil embargo A near-total ban on imports of into the is finally hitting Russia’s oil revenue. Concerns that it would provide the Kremlin with a windfall to fund its war in Ukraine have been confounded — for now. The US Administration feared that EU sanctions on Russia’s seaborne crude, which came into effect on Monday, would send prices soaring. The particular worry was a ban on the provision of ships and services like insurance and financing for Russian cargoes moving anywhere in the world. To mitigate the impact, the US proposed a price cap on Russian exports. Cargoes purchased at a price below the cap, eventually set at $60 a barrel, would be exempt from the shipping and services ban. But it looks like they needn’t have worried — at least not yet. The last Russian barrels have been shipped to ports in Europe. Moscow has lost a market on its doorstep for more than 1.5 million barrels a day. It looks set to lose sales of another 500,000 barrels a day by the end of the year, if Poland and Germany follow through on pledges to halt pipeline imports. Yet, far from soaring, have slumped. By Friday, day five of the import ban, benchmark Brent crude was trading below $77 a barrel, and briefly dipped below $76. That’s down by more than 14% from the highs reached on Monday, after the sanctions came into effect. Prices earned by Russia for its crude shipments have fallen even further. Its key Urals export grade was changing hands at little more than $40 a barrel at the country’s Baltic ports, which remain the biggest outlet for its crude. That’s about the level identified as the breakeven cost of production and well below the $60 a barrel price cap introduced alongside the EU import ban. The continued importance of Russia’s Baltic ports even after it’s lost its European market shows the inability of the country to redirect oil flows. The only pipeline to China and Russia’s Pacific coast export terminal at Kozmino is already full and the only way to get supplies to Russia’s last remaining markets in China, India and Turkey is through long voyages around Europe and through the Suez Canal. Far from creating a shortage of crude, the EU sanctions have created localized gluts in those markets. A huge volume of Russian oil is competing with flows from traditional suppliers in the Middle East and sellers must give big discounts to offset the high cost of the longer journeys required to deliver cargoes from the Baltic. Meanwhile, Europe isn’t scrambling for crude. Russia’s invasion of Ukraine, which has stoked inflation, including for food and energy, has undermined European economies to the point where, as I suggested back in early November, the world can easily handle the loss of Russian barrels, at least for now. That may change in the coming months. China is easing its Covid restrictions, which could eventually ignite fuel demand that has been crimped by travel restrictions and a slowdown in economic activity. That will
in the coming months. China is easing its Covid restrictions, which could eventually ignite fuel demand that has been crimped by travel restrictions and a slowdown in economic activity. That will tighten the market again. There’s also a potentially more dramatic EU ban coming, on imports of Russian refined oil products like diesel. That could upend oil markets that are already short of the transport fuel. Meanwhile, Russian President is threatening to cut oil production in response to the price cap on his crude. He may find that the oil industry takes the decision for him if it can’t sell its oil profitably. The Kremlin is already facing a big hit to its revenue from crude export duty next month. Based on crude prices since the middle of last month, Russia’s per-barrel duty could well fall in January to its lowest since the Covid-19 pandemic slashed revenue in early 2020.
Audi India opens new Audi Approved: plus showroom in South Mumbai New Delhi: German luxury car manufacturer opened on Monday its pre-owned luxury car showroom, Audi Approved: plus, in South Mumbai. Spread over 3000 sqft , the state-of-the-art showroom located at Kamla Mills Compound, Lower Parel, has the capacity to display six cars, the company said in a media release. Balbir Singh Dhillon, head of Audi India, said, “Mumbai is a key market for us, and we have observed a steady surge in demand for pre-owned luxury cars. This is our home city and today, we are extremely happy to open a new facility in the heart of South Mumbai – in Kamla Mills.” “I am certain that this new showroom will cater to the ever-growing demand for pre-owned cars in Mumbai and I am pleased to share that we continue our expansion with more facilities in the surrounding areas as well as other cities across the country,” he added. As per company, every pre-owned car at Audi Approved: plus showrooms undergo rigorous, multiple-level quality checks, mechanical bodywork, interior and electrical inspections at 300+ multi-point checks. The vehicles are also subject to full on-road testing to ensure the perfect drive and peace of mind for customers while buying the car. Under the Audi Approved: plus programme, Audi India offers 24x7 Roadside Assistance and a complete history of the vehicle before purchase. Customers can also avail easy financing and insurance benefits through the programme, it added. Commenting on the newly-inaugurated showroom, Amit Jain, Audi Mumbai South, said, “We have had a long-standing relationship with the Audi brand and are elated to take it further with the new Audi Approved: plus showroom in Kamala Mills. We look forward to welcoming customers and offering them a top-notch brand experience.” Also Read:
Russian oil: PSUs to tank up, eye bigger discounts 's state-run refiners are planning to buy as much Russian oil as possible while shifting their purchase strategy from tenders to negotiated deals to extract deeper discounts, people familiar with the matter said. State refiners have bought more than 15 million barrels of from traders as well as Russian firms since the outbreak of war, paying in dollars using regular banking channels, they said. The invasion began February 24. Russian energy exports have so far escaped Western sanctions, ensuring trouble-free payment channels for Indian buyers. Discount Math Indian refiners, however, haven't so far received the kind of discounts cited in analyst reports, and are now seeking deeper cuts from Russian suppliers, according to the people mentioned above. S&P Global Platts had assessed a discount of $33 per barrel for Russian oil to the benchmark dated brent on a free-on-board basis last month. Indian refiners have been sourcing Russian crude only on a delivered basis to avoid freight and insurance risks, which have dramatically risen as ships don't want to venture into war zones, and insurers and reinsurers are charging heavy premiums. "If we were to assume a cost of $10 per barrel for the increased freight and insurance premium, the discount on a delivered basis should have been about $23. But the best discounts for Indian refiners have been between $10-15 per barrel," said one of the persons cited, adding that the discounts in the early days of the war were even smaller. State refiners usually purchase from the spot market through tenders, picking up the lowest bidder. Since Russian crude is trading at a discount, the supplier of such crude would win the tender easily with just a little discount, the person cited earlier said, prompting a change in strategy.
US agency opens probe into electric vehicle batteries DETROIT: U.S. safety regulators have opened an investigation into electric and hybrid vehicle batteries after five automakers issued recalls due to possible defects that could cause fires or stalling. The says the probe covers more than 138,000 vehicles with batteries made by LG Energy Solution of South Korea. General Motors, Mercedes-Benz, Hyundai, Stellantis and Volkswagen have issued recalls since February of 2020, most due to internal battery failures that can increase the risk of fires. The agency says it will write to LG and other companies that might have bought similar batteries to make sure recalls are being done when needed. Messages were left Tuesday seeking comment from LG Energy Solution. The investigation is another bug in a growing global rollout of by all automakers to replace internal combustion vehicles to cut emissions and fight climate change. Ford and BMW also have recalled batteries in recent years. Also, the U.S. National Transportation Safety Board investigated a series of fires in Tesla vehicles and said the high-voltage lithium-ion batteries pose safety risks to first responders after crashes. Many governments are counting on counting EVs to replace gasoline-burning vehicles that emit greenhouse gases that cause global warming. Data on is limited, but a small sample in April of 2021 by the insurance industry's Highway Loss Data Institute found that EVs and their conventional gas counterparts had about the same number of non-crash fire claims per 1,000 insured vehicle years. The institute tracked claims for 10 EVs and their gas equivalents and found that EVs had 0.19 fire claims per 1,000 insured vehicle years compared with 0.2 for gasoline counterparts. In a document posted Tuesday on its website, said the recalls began on Feb. 24, 2020 when Mercedes recalled a 2019 Smart Fortwo electric vehicle. The company said the high-voltage battery made by LG had a defect that could ignite inside the battery cells, raising the risk of a fire. Eight months later, Hyundai recalled some 2019 and 2020 Kona EVs with a similar problem. In November of 2020, General Motors began a string of recalls that involved more than 140,000 Chevrolet Bolt EVs from the 2017 through 2022 model years due to the "simultaneous presence of two rare manufacturing defects in the same battery cell." The defect caused at least 10 fires, causing GM to warn owners to park the Bolts outdoors. LG Energy Solution agreed to reimburse GM $2 billion for the recall costs, and the company remains in a joint venture with LG to build batteries for its next generation of electric vehicles. This month, GM is scheduled to restart production and sales of Bolts with replacement battery cells. Hyundai issued a second battery recall March of 2021 covering 2019 and 2020 Konas and 2020 Ioniq EVs and said an electrical short inside the batteries could increase the risk of fires while parked, charging or driving. Last February,
March of 2021 covering 2019 and 2020 Konas and 2020 Ioniq EVs and said an electrical short inside the batteries could increase the risk of fires while parked, charging or driving. Last February, Stellantis' Chrysler brand recalled some 2017 and 2018 Pacifica plug-in hybrid minivans with LG batteries after getting a dozen reports of fires. A month later, VW recalled some 2021 ID4 electric vehicles with unreliable connections inside the batteries that could cause stalling. Stellantis also has a joint venture with LG Energy Solution to make batteries for future electric vehicles. Also Read:
Yellen says setting price caps on Russian refined oil products 'complicated' By Andrea Shalal Western countries are working to structure price caps on products to ensure continued flow of Russian diesel, but the markets are complicated and there is a chance things do not go to plan, Treasury Secretary Janet Yellen said. Group of Seven countries and Australia implemented a price cap on Russian oil Dec. 5, banning the use of Western-supplied maritime insurance, and other services for cargoes priced above $60 per barrel. They are now finalizing two separate price caps on Russian refined petroleum products, such as , that are due to take effect on Feb. 5 along with a ban on , Yellen told reporters in Dakar, Senegal. One will cover high-value products typically sold at a premium to crude, while another will apply to low-value products like fuel oil, she said told reporters traveling with her in Africa. Yellen said setting the new price caps had proven "more complicated" than for crude, given the range of different refined products and price structures, and the importance of ensuring continued supplies of Russian diesel to the market. "It's more complicated, but we've been working hard to figure out how to achieve the same objectives," as with the broader cap on Russian crude, she said. "You know, there's always the potential that things may not go according to plan but we've studied these markets very carefully and we believe that we're going to come out with a set of caps that will achieve the same things that we've achieved with crude so far," she said, adding that adjustments could still be made over time. While the first oil price cap only took effect on Dec. 5, it had proven successful thus far, Yellen said, citing a drop in the price that Russia was getting for crude oil. "They've expressed concern about revenues, and we've seen no sign that Russia is withholding oil from the market," she said. Also Read:
Protest against cab aggregators in Doon : Commuters in Dehradun faced inconvenience on Tuesday as launched a day’s strike and congregated at regional transport office to demonstrate against mobile such as Rapido and BlablaCar. Protesters alleged these apps are severely impacting their business and have not registered themselves at RTO, which is a violation of guidelines. RTO Sunil Sharma said white number plate cars are booking and transporting passengers via cab aggregators like Rapido and BlablaCar, which is illegal. “It is also risky for passengers since these vehicles are insured under personal car category. In case of untoward incident, passengers will not be entitled to receive any compensation from govt and insurance company,” he said. Sharma added that protesting drivers were assured that action was being taken against aggregator cabs. “No aggregator company has procured any licence from the , and all such vehicles will face consequences,” he said. Pankul Sharma
Rahul Bajaj: A Gandhian and hardcore entrepreneur merged into one By R L Ravichandran It’s with a heavy heart that I have to write this obituary for the Auto industry leader who passed away on Saturday. When I met him first to approve my candidature presented by his son Rajiv, I can’t forget the humility of such a towering personality who stood up to greet me and welcome me to his office, and I felt how little I was. It was a pleasant interaction and not a formal interview. He was quite frank in his views. He outlined what was okay and not okay in the organisation and what he expected me to do. He was keen to ask me all about my family, and just said that I could be of help in building up the organisation to rise up to the plans his son has been working on. That sealed the discussions. He even allowed my own interpretation of the scope of my work in and a title that explained my role as business and product development head. These are not very common in those days, or even now. But that was his simplicity and trust. In many meetings he chaired, one thing was clear, who was the boss without his authority on display by his genuine approach. He listened to every view point as it was relevant and finally decided what was good for Bajaj Auto as a company. Once it was decided it was over and done. No change. That was a time when Bajaj ruled as the country’s largest two- wheeler in numbers, in revenues and in profits. I remember every month his concluding point as “Are we number one in numbers”? It was total scooter sales of over a lakh a month and a few thousands of bikes. When the country was drifting slowly towards motorcycles over scooters it always used to be a task to make him accept that motorcycles were to stay and it was difficult to stop this change over. Though he understood he was reluctant to admit. It was in one of those times that we stood watching our coveted position of number one changing to number 2. But then he stood in full defence to support us in our early efforts to create the motorcycle portfolio Rajiv envisioned to build, with or without technology coming from any partners. Any other person would have ridiculed us. But he did extend unreserved support in terms of acquiring technology, the manufacturing process, and even a new factory with state-of-the-art facilities. And that is Chakan. The turnaround and flagship motorcycle for Bajaj from scratch to production line was ‘The Definitely Male Pulsar’. But to Rahul Bajaj’s credit one should not forget the ubiquitous autorickshaw. And then the rear engine auto. In the 1980’s and 90s and even today Bajaj passenger autorickshaw is ruling the roost not only here but in many other countries, and the unforgettable Sunny. Chetak Super Scooters he created. Finally, when Rajiv launched the new electric scooter in 2020 and named it Chetak he felt very happy and elated. A star is reborn. I had the opportunity to talk to him over phone late at night on the day of Chetak electric launch and I
electric scooter in 2020 and named it Chetak he felt very happy and elated. A star is reborn. I had the opportunity to talk to him over phone late at night on the day of Chetak electric launch and I could feel his happiness over Chetak’s new avatar, a perfect and timely gift of the successful son to his illustrious father. His foresight and business acumen were very distinct when he rolled out Bajaj Allianz Insurance, with Sanjiv Bajaj heading and shaping it as it is today as the country’s top consumer finance with millions of customers to Bajaj Finserve. He has always been a trusted CEO for his employees. A rewarding company for his investors and true representative of the industry and various federations he led in his time. Above all his integrity, business ethics and leadership in creating large infrastructure and the burning desire to be the number 1 in the world is what makes him a Legendary leader we have seen in our times. A true Gandhian, as imbibed from his father, and the genuine care with which he nurtured his service-oriented organisations, hospitals, educational institutions, are truly serving many deserving people around Maharashtra. He was very candid and called a spade a spade irrespective of whom he was addressing. But his integrity, honesty and simplicity has left an indelible impression on the Indian history of entrepreneurship and family- run business empires. Honestly, they may not make such colossal personalities as Rahul Bajaj any more. We used to say “East or west…. Rahul is the best.” And we meant it. And I mean it forever. (R L Ravichandran is an industry veteran and a former marketing head of Bajaj Auto. Views expressed are personal.)
OPEC+ may not be much help with high oil, gasoline prices By Cathy Bussewitz New York : Oil prices are high, and drivers are paying more at the pump. But the and allied producing nations may not be much help as they decide Thursday how much more crude to send to world markets. That's because the 23-member , which includes Russia, is struggling to produce enough oil to keep up with the rebounding demand for fuel since the COVID-19 pandemic. Plus, Western buyers are shunning barrels from Russia over its war in Ukraine, meaning there's less oil on the market to go around. , led by Saudi Arabia, and its allies will decide whether to boost production in August beyond the increase of 648,000 barrels per day that the group agreed to at its last meeting. That boost was a modest step at providing some relief to soaring prices. Before, had been adding about 432,000 barrels per day monthly to put oil back on the market after cutting production dramatically during the height of the pandemic. Gasoline prices around the world have reached painful highs. In the U.S., they surpassed USD 5 a gallon for the first time this month before dipping in recent days as global oil prices fell on fears of a recession. U.S. President Joe Biden has been under pressure to do whatever he can to reduce gasoline prices for struggling Americans, including urging Congress to suspend gas and diesel taxes, although many experts say there's little he can do. OPEC, on the other hand, could help lower prices by increasing production - in theory. But that doesn't mean it will, even as Biden has urged the group to do so. Production has fallen substantially behind OPEC+ quotas. Angola and Nigeria have longstanding shortfalls, among others, and questions have arisen about how much spare production capacity Saudi Arabia and the United Arab Emirates have in reserve. There's also little incentive for OPEC+ countries to boost production even if they are able, said Heather Heldman, managing partner at Luminae Group. "At the end of the day, they're worried about their economic bottom line, not the political fortune of a foreign leader," Heldman said. In addition, Biden is planning his first trip to Saudi Arabia as president, and both countries will want something positive to announce after that summit next month, Heldman said. "From the Saudi perspective and Emirati perspective, there's really no need to make any meaningful gesture now," she said. Russia's war in Ukraine has contributed to high oil prices fueling around the world. At a summit of the Group of Seven leading economies this week, the U.S. pushed for a price cap on Russian oil imports to try to blunt the price spikes and reduce money from oil sales flowing into the Kremlin's war chest. The G-7 agreed to explore imposing the cap by tying it to services needed to sell oil such as insurance and shipping. Service providers would face sanctions if they facilitate the sale of oil over the cap. But the proposal left many important aspects
it to services needed to sell oil such as insurance and shipping. Service providers would face sanctions if they facilitate the sale of oil over the cap. But the proposal left many important aspects open and will be the subject of talks in the weeks ahead. The European Union, a key importer of Russian oil, also has approved a ban on 90% of Russian oil imports by year's end. As of May, surplus production capacity in non-OPEC countries decreased by 80% compared with 2021, according to the U.S. Energy Information Administration. Surplus capacity is oil production that can be brought online within 30 days and sustained for at least 90 days. In 2021, about 60% of the surplus production capacity was in Russia, but much of that was eliminated as of May 2022 due to sanctions, the agency said. High gasoline prices in the U.S. aren't just about rising oil prices and less oil on the market. Most American refineries are operating at capacity, so even if there was more oil produced, they wouldn't be able alleviate high prices by quickly turning it into gasoline, jet fuel and diesel. U.S. crude traded down 0.2% at USD 109.70 per barrel ahead of the meeting, while international benchmark Brent dropped 0.6% to USD 115.35 per barrel.
Joy e-bike’s E2W sales exceed 1 lakh units (WIML), one of the leading manufacturers of electric vehicles under the ‘ ’ brand in India, Tuesday achieved a major milestone of crossing 100,000 in India. The company rolled out its 100,000th unit, Mihos from its state-of-the-art manufacturing plant in Vadodara to mark the achievement. Established in 2016 as WW Solutions (Wardwizard Solutions) and later renamed as WIML in 2019, the company embarked on its mobility journey with the launch of its first product category in . As India's first listed EV company on the BSE, WIML introduced its first Low-Speed Electric Scooter, the Butterfly, in 2018. Presently, the company has a strong portfolio of 10 models, including high speed and low speed variants, along with a network of over 750 touchpoints. In celebration of this monumental milestone, the company has further introduced a series of exclusive offers for its customers, offering special benefits and free insurance*. The remarkable offers will remain valid at all authorized Joy e-bike dealerships across India until March 31, 2024. Yatin Gupte, Chairman and Managing Director of Wardwizard Innovations & Mobility Ltd. said, “We are deeply grateful to our customers and stakeholders for their unwavering support, which has propelled Wardwizard Innovations to its position as a leading brand in the country. This milestone of one lakh sales underscores the quality of our diverse product range and underscores our steadfast dedication to a sustainable future and meeting customer demands. As we continue to innovate and empower communities through our 'Joy e-bike' brand, we are driven by a collective vision of a greener, more sustainable mobility landscape. Our rapid growth trajectory sets our sights on reaching the two-lakh milestone by 2026.” Wardwizard Innovations & Mobility Limited has also showcased its commitment to innovation at the recently concluded Bharat Mobility Global Expo 2024. At the expo, the company unveiled the concept of its first hydrogen-powered electric two-wheeler and showcased its current product line-up, including high and low-speed models and the electric three-wheeler under the brand name 'Joy e-rik.' Meanwhile the company has introduced up to INR 30,000 discounts and free insurance on its following products: Mihos, Wolf+ and Gen Next Nanu+.
What's the impact if Europe cuts off Russian oil? The European Union's executive commission has proposed phasing out imports of within six months. It is part of 's struggle to stop paying Russia $850 million a day for energy and hit the Kremlin's finances over its invasion of Ukraine. But reversing decades of dependence on Russian oil and natural gas is not a simple matter for the 27-nation bloc. For one thing, Hungary and Slovakia, both landlocked and big users of Russian oil, have said they won't go along with the boycott. Here is what the oil sanctions could mean for people in Europe and the rest of the world: HOW MUCH DOES EUROPE PAY RUSSIA FOR ENERGY? Gas and oil have kept flowing even as governments denounce the war. The EU sends $450 million a day to Russia for oil and $400 million per day for natural gas, according to calculations by analysts at the Bruegel think tank in Brussels. That means energy revenue is bolstering the Kremlin's budget, adding to foreign currency reserves that could help Russia support the ruble and partly make up for Western sanctions that froze much of Russia's foreign currency reserves held outside Russia. HOW MUCH RUSSIAN OIL GOES TO EUROPE? Europe is the biggest purchaser of Russian crude, receiving 138 million tons in 2020 out of Russia's total exports of 260 million tons - or 53%, according to the BP Statistical Review of World Energy. Europe, which imports almost all of its crude, gets a quarter of its needs from Russia. Oil is refined into fuel for heating and driving as well as being a raw material for industry. WHY IS THE FOCUS ON OIL INSTEAD OF NATURAL GAS? It's harder to find alternative sources of natural gas because it comes mainly by pipeline. It would be easier to find other sources for oil, which mostly moves by tanker and is traded globally. So a natural gas boycott is off the table for now. Heavy gas users like Germany say an immediate cutoff could cost jobs, with industrial associations warning of shutdowns in glass and metals businesses. Cutting off both natural gas and oil would likely cause a recession in Europe, economists say. WHAT COULD HAPPEN WHEN RUSSIAN OIL SUPPLIES STOP? Europe imported 3.8 million barrels a day from Russia before the war. In theory, European customers could replace those barrels from suppliers in the Middle East, whose exports now mostly go to Asia, as well as from the United States, Latin America and Africa. Meanwhile, cheaper Russian oil could take the place of the Middle East shipments to Asia. But it would take time to make that adjustment. New supplies would have to be found elsewhere. Several large refineries in central and Eastern Europe rely on oil from a Soviet-era pipeline and would have to find another way of getting oil to make gasoline and other products. Bruegel analysts say that means European countries should be ready to impose measures to reduce fuel use, such as making public transport free and incentivising car-sharing. If those measures don't work,
analysts say that means European countries should be ready to impose measures to reduce fuel use, such as making public transport free and incentivising car-sharing. If those measures don't work, tougher ones such as odd-even driving bans based on license plate numbers would be needed. Similar measures were taken during the 1973 OPEC oil embargo, when Germany imposed car-free Sundays. Russia is a major supplier of Europe's diesel fuel for trucks and farm equipment, meaning its price affects those for a wide range of food and goods. WHAT COULD HAPPEN TO THE GLOBAL OIL MARKET? Chances are that oil prices would go up for everyone because oil is a global commodity. That would mean higher prices at the pump and for home heating, less disposable income for consumers and set back the economic recovery from the COVID-19 pandemic. Russia would probably produce and export less oil after losing its biggest customer, Europe. That's because all of Russia's exports can't simply be redirected from nearby Europe to far-off Asia due to shipping and logistical constraints. It would mean a major reshuffling of the world's flows. Buyers in India and China might avoid Russian oil if it means possible sanctions trouble with the West. And Western customers are already shunning Russian oil because they don't want to be associated with the country or can't find insurers or banks willing to handle dealings with Moscow. On the other hand, some Asian customers might jump at the chance to snap up discounted Russian oil. Especially if the sales are off the books, as appears to be happening in some cases. The OPEC oil cartel led by Saudi Arabia - which sets production levels along with allied non-members like Russia - has made it clear it won't increase output to make up for any supply loss from Russia due to a boycott. They meet again Thursday. Rystad Energy expects a loss of 1.5 million to 2 million barrels per day and oil reaching $120 to $130 per barrel by year's end. A milder scenario, in which most Russian oil shunned by Europe is snapped up in other energy-hungry countries not taking part in the sanctions, would see a loss of 1 million barrels per day. Oil prices would drop below $100 by June and keep falling to $60 by year's end. HOW MUCH WOULD A BOYCOTT COST RUSSIA? It would cost the Kremlin, with energy the main pillar of its budget. The Russian government got an average of 43% of its revenue from oil and natural gas between 2011 and 2020. And yet it's not so simple. The price for Russia's main export benchmark to Europe, Urals crude, has been knocked down to a $35-per-barrel discount compared with international benchmark Brent. But because of generally higher oil prices, Russia's revenue losses have so far been limited. Those foreign currency earnings are helping prop up Russian finances amid sanctions. "The EU gradual embargo on Russian oil is a risky bet, as in the short term, it might leave Russian revenues high while implying negative consequences for the EU
up Russian finances amid sanctions. "The EU gradual embargo on Russian oil is a risky bet, as in the short term, it might leave Russian revenues high while implying negative consequences for the EU and global economy in terms of higher prices," said Simone Tagliapietra, an energy policy expert at Bruegel. That's aside from fears that an oil boycott might provoke Russia to cut off gas supplies in retaliation. Also Read:
How to save money on bike insurance premium? Having bike insurance is crucial as it enables bike owners to safeguard their two-wheelers against unforeseen events. In India, two types of bike insurance policies are commonly chosen, third-party liability insurance and comprehensive bike insurance. Among these, comprehensive bike insurance provides coverage not only for third-party liabilities but also for own damage and theft. Opting for comprehensive coverage is ideal for the extensive coverage it provides. Though the cost can be overwhelming, bike insurance should be seen as an investment. Without compromising on the coverage, there are effective ways to reduce the premium. It also helps to understand bike insurance and the factors that affect the premium. Factors that affect Here are the factors that affect the premium of two-wheeler bike insurance in India- Bike model and make The bike's model and make contribute significantly to the premium calculation. High-end bikes with more expensive parts and higher repair costs will have higher premiums. Engine capacity is another determinant; bikes with larger engines generally have higher insurance premiums due to their increased power and risk. Age and driving experience The age and driving experience of the policyholder are also considered. Younger riders, especially those below the age of 25, are typically charged higher premiums as they are perceived as more prone to accidents. Claim history The claim history of the policyholder is another vital factor. A clean claims record demonstrates responsible driving, leading to a lower premium. Conversely, a history of accidents or frequent claims can result in a higher premium. Geographical location Geographical location also plays a role, as insurance premiums are higher in areas prone to theft, accidents, or natural calamities. Urban areas with heavy traffic and higher crime rates usually experience higher premiums compared to rural areas. Add-ons and coverage options Additionally, the add-ons and coverage options selected by the policyholder affect the premium. Popular add-ons include zero depreciation cover, roadside assistance, personal accident cover, and medical expenses coverage. The more add-ons chosen, the higher the premium will be. Other factors Factors like the duration of the policy, the type of coverage (comprehensive or third-party), and the insurance company's rating and reputation also impact the premium amount. Tips to save money on two-wheeler Having policy in India is essential for protecting your bike and finances. Here are valuable tips to save money on two- wheeler bike insurance in India. Choose your bike sensibly As mentioned above the premium of the bike depends on the model and type of the bike. As high-end bikes will have a higher premium, one should take a bike which is on budget, has good features and will have a decent premium. If you are keen to get a high-end luxury bike, be ready to shell out more money for the bike
premium, one should take a bike which is on budget, has good features and will have a decent premium. If you are keen to get a high-end luxury bike, be ready to shell out more money for the bike insurance premium. Choose add-ons wisely Comprehensive bike insurance policies come with optional add-ons that enhance coverage but also increase the premium cost. Evaluate your needs and select add-ons that are essential and relevant to your situation. For example, if you ride in a flood-prone area, opting for the Engine Protection add-on can be beneficial. Avoid unnecessary add-ons that you would not utilise, as they will only increase your premium. Maintain a good driving record Your driving record plays a vital role in determining the bike insurance premium. Insurance companies often offer lower premiums to individuals with a clean driving history, as they are considered less risky. Avoid traffic violations, accidents, and speeding tickets to maintain a good driving record. This will help you negotiate for lower premium rates during policy renewal. Accumulate No Claim Bonus (NCB) A No Claim Bonus is a reward in the form of a discount given to the insured who does not file any claims during the policy period. NCB can significantly reduce your premium cost when renewing your policy. Make sure to accumulate your NCB by not filing minor claims and enjoy the benefits of lower premiums in subsequent years. Install safety and anti-theft devices. Insurance companies value the safety and security measures you take for your bike. Installing anti-theft devices, such as GPS trackers and alarm systems, can reduce the risk of theft. This can result in lower premium rates as insurance providers consider your bike less prone to theft or damage. Opt for voluntary deductibles Policyholders can select predetermined amounts known as a voluntary deductible, that is, the amount they pay out of their pocket during a claim settlement. You can reduce your premium cost by opting for a higher voluntary deductible. However, ensure that the deductible amount you choose is affordable for you in the event of a claim. Saving a premium to pay more at the time of a claim is not the most sensible thing to do. Opt for a long-term policy The chances to get a higher discount on the premium are more when you opt for a policy for a longer duration. A standard is for a year but many insurers give the choice to take for a longer time. This not only saves money for the insured but also reduces the hassle of renewing the policy every year. Look for discounts When taking insurance for your bike always find out what kinds of discounts are being offered by the insurance company. Some of these can be a loyalty discount or a discount to pay the premium for the year in one go. Most of the time monthly payment turns out more expensive than an annual payment. Attend safe riding courses Insurance companies often give discounts to the insured who have done safe riding courses. These courses teach bike
payment turns out more expensive than an annual payment. Attend safe riding courses Insurance companies often give discounts to the insured who have done safe riding courses. These courses teach bike riders defensive riding tactics, and as this lowers the probability of accidents, the insurer sees it as a low risk and, thus, offers discounts. Saving money on bike insurance in India is possible with careful consideration and understanding of your insurance requirements. Remember to review your policy periodically to ensure you have the best deal that suits your needs and budget. Disclaimer - The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content.
UK self-driving car dreams could break down at the starting line Britain could lose out on investments in autonomous vehicles (AVs) and see startups shift testing elsewhere if promised laws to regulate the technology are not passed before the next general election, startups and insurance companies said. Despite the government's vision to be a world leader in AV technology, truly driverless cars are not currently permitted on Britain's roads, making it difficult for start-ups to commercialize their vehicles and insurers to assess their risks. The UK government said last August it would advance a bill in the current parliamentary session, which is expected to end this autumn, providing detailed regulations by 2025. That has not yet happened, with political turmoil forcing the government to water down ambitions for this session. With a national election due by January 2025, industry wants the government to bring forward legislation next session, or risk lengthy delays. "There is a window of opportunity for the UK to at least be leading on something," said Claudio Gienal, head of UK and Ireland operations for global insurer AXA, which believes the technology could prevent accidents. "Whoever moves first will have the advantage of attracting investment, skills and expertise." "But if you're second or third, why should people come here?" added Gienal, who wrote to Britain's finance minister in April urging the government to pass a bill in the next parliamentary session. The British government's vision is built on forecasts that by 2035 around 40% of new cars could have self-driving capabilities and leadership in AV technology could create up to 38,000 new skilled jobs in a market worth 42 billion pounds (USD53 billion) to Britain by that date. Transport Minister in December said there would no longer be a Transport Bill this session, and did not mention a separate AV bill in an outline of the ministry's legislative agenda. Iain , who chairs parliament's transport committee, said there was not enough time for an AV law this session, but it could happen in the next session. Last month Junior Minister Jesse Norman said he shared AV startups' concerns. "We are making the case as vigorously as we can... for this to be a priority for the government," he told lawmakers. Failure to enact regulations could cede ground to other countries like France, Germany and the United Arab Emirates, which are putting regulations in place, or several U.S. states including California. Startups are actively lobbying the government to pass the bill, while insurers need to know who is liable so they can insure driverless cars. They fear a self-driving bill will be crowded out by other vote-winning priorities in the run-up to the election. "We've got to see the legislation move forward in this next (parliamentary) session to make this a reality," said Kaity Fischer, commercial vice president at London-based Wayve. "Or we would be forced to move to other markets for deployment."
in this next (parliamentary) session to make this a reality," said Kaity Fischer, commercial vice president at London-based Wayve. "Or we would be forced to move to other markets for deployment." Wayve has raised around USD260 million so far from investors, including Microsoft. "CHANGE OUR PLANS" So far, the UK government has been seen as highly supportive of AV startups, with its Centre for Connected and Autonomous Vehicles securing over 400 million pounds in private and government funding for more than 90 projects. Last year, two independent governmental bodies spelled out well-received recommendations for an AV law. Ashley Feldman, programme and policy manager for transport and smart cities at industry group TechUK, said a delay would force startups to test and start generating revenues elsewhere. "It's important that these startups get to commercialisation quickly," he said. Bristol-based Fusion Processing recently launched a 14-mile autonomous bus route linking Edinburgh and nearby Fife in partnership with bus operator , bus maker Alexander Dennis and partly funded by the government - with a safety driver at the wheel. Fusion wants to start UK commercial driverless bus services in 2025. "If that doesn't happen, then we would have to change our plans," CEO Jim Hutchinson said, including testing in other countries. Oxford-based AV software firm Oxbotica has raised about USD225 million from investors and is working on AV projects with customers including BP and British online supermarket and technology group Ocado. Founder said he was optimistic the government will pass its promised bill, but added it is "extremely important that we get this done very, very soon."
Iran-Israel conflict: Fuel prices may not rise in poll season New Delhi: 's attack on is expected to send global crude higher as war premium gets built in but retail fuel prices in will likely stay unchanged due to general elections starting later this week, industry executives said. Brent, the international crude benchmark, has sprinted to USD90 per barrel from USD80 in just about a month on escalating tensions between Iran and Israel. "A war premium may quickly show up in oil prices in the paper market. Heightened tension in oil zone or main oil transit zones may also cause increases in crude oil transport and costs," said Mukesh Surana, CEO of Ratnagiri Refinery & Petrochemicals Ltd. In oil industry parlance, paper market refers to a financial marketplace where future oil delivery contracts are traded. "If the situation escalates further to the extent that it starts impacting physical supplies through the , it will impact the global supply situation and can have a sharper impact on prices in the short term," said Surana, formerly chairman of . Irrespective of the in global oil prices, domestic retail prices of petrol, diesel and cooking gas are unlikely to rise for the next two months due to elections, industry executives said.
Hyundai explores USD 3 bn IPO for India unit at up to USD 30 bn valuation, sources say Motor is planning to list its Indian unit to raise at least USD 3 billion in what would be the country's biggest IPO, two people said, as the South Korean firm doubles down in the key growth market ahead of a widely expected entry by Tesla. Hyundai Motor India is in early talks for an initial public offering (IPO) and has held discussions with several banks, the two people, who have been briefed on the matter, said on condition of anonymity as the discussions are not yet public. The fund raising by Hyundai, the second-biggest automaker in India with a 15% market share, would value its Indian operation at up to USD 30 billion, which is more than half its market capitalisation of USD 42 billion in Seoul. Shares of the company soared 5% on Monday, to their highest in nearly three years. A valuation of up to USD 30 billion would put Hyundai's India unit behind rivals like Tata Motors at USD 41.43 billion and India at USD 40.11 billion. A spokesperson at Hyundai's India unit declined to comment. The company is exploring "value unlocking for its India business" through the IPO, the two people said. "They want to make use of India's IPO boom. India's capital markets have hardly stood out like this before compared to other countries," one of the two people added. Boosted by billions of dollars of domestic and foreign money, India's USD 4 trillion stock market has emerged as a fast-growing alternative to China, recently overtaking Hong Kong as the fourth-largest in the world. India's benchmark Nifty 50 index rose 20% in 2023 and has extended its record run into 2024. IPOs in India boomed in the second half of 2023 and bankers expect this to continue in 2024 amid hopes of policy stability. SoftBank-backed and food delivery firm Swiggy, among others, are expected to list this year. In 2023, 239 companies raised USD 6.78 billion via IPOs in India, according to LSEG data. India's biggest IPO was the 2022 listing of its largest insurer, Life Insurance Corporation, in which it raised up to USD 2.7 billion. For its India IPO, Hyundai has held talks with investment banks JP Morgan, Morgan Stanley, Citi and Bank of America though no formal appointments have been made, the two people said. Bank of America declined to comment, while the other three did not respond to a request for comment. India's Economic Times newspaper first reported Hyundai's plans for an India IPO. HYUNDAI'S INDIA PUSH Hyundai, India's second-largest car maker by sales, is now doubling down in the South Asian nation and the United States after scaling back its production in China after years of losses there and exiting Russia after selling its two Russian plants. It entered India more than two decades ago and is the only foreign player to have become dominant alongside market leader Maruti Suzuki, while companies like Ford Motor and General Motors have folded their India business. Hyundai's share of the
is the only foreign player to have become dominant alongside market leader Maruti Suzuki, while companies like Ford Motor and General Motors have folded their India business. Hyundai's share of the Indian market reached a peak of nearly 20% mainly due to its wide portfolio of small cars and a grasp of what buyers want, but it is seeing growing competition from domestic players like Tata Motors which has launched a slew of new SUVs and electric cars. Hyundai now has about a 15% share of the Indian car market where it sold 567,000 vehicles in the last fiscal year. Analysts noted that Hyundai's India unit IPO talks come amid Tesla's plan to enter India and if Hyundai's unit manages to go public in the country, it might help Hyundai better compete with Tesla in the Indian EV market in the future. Hyundai has said it plans to invest close to USD 4 billion in the Indian market in parts over the next decade to launch new EVs, charging stations and a battery pack assembly unit. Part of the money is being invested in buying a former GM plant to help Hyundai expand its production. Hyundai currently manufactures cars at its plant in the southern Indian city of Chennai which is dubbed the Detroit of Asia. (USD 1 = 83.0210 Indian rupees)
A price cap on Russian oil aims to starve Putin of cash. But it's largely been untested. Until now For months after Ukraine's Western allies limited sales of to USD 60 per barrel, the price cap was still largely symbolic. Most of Moscow's crude - its main moneymaker - cost less than that. But the cap was there in case rose - and would keep the Kremlin from pocketing extra profits to fund its war in Ukraine. That time has now come, putting the price cap to its most serious test so far and underlining its weaknesses. Russia's benchmark oil - often exported with Western ships required to obey sanctions - has traded above the price cap since mid-July, pumping hundreds of millions of dollars a day into the Kremlin's war chest. With Russia's profits rising, the Israel-Hamas war pushing up global oil prices and evidence that some traders and shippers are evading the cap, the first signs of enforcement are appearing 10 months after the price limit was imposed in December. But sanctions advocates say the crackdown needs to go further to really hurt Russia. Reducing oil profits "is the one thing that hits Russian macroeconomic stability the most," said Benjamin Hilgenstock, senior economist at the Kyiv School of Economics, which advises the Ukrainian government. Oil income is the linchpin of Russia's economy, allowing President to pour money into the military while avoiding worsening inflation for everyday people and a currency collapse. Moscow's ability to sell more to the world than it buys means it's weathering sanctions far better than expected. Its economy will grow this year while Germany's shrinks, the International Monetary Fund estimates. Still, Russia's main source of income is at risk from stepped-up enforcement. The U.S. Treasury Department sanctioned two ship owners last week, while U.K. officials are investigating violations. Since the invasion began, oil sanctions have cost Russia USD 100 billion through August, said an international working group on sanctions at Stanford University. But most of that, economists say, stems from Europe's ban on Russian oil, which cost Moscow its main customer. "There are serious problems with the (price cap) policy, but it can work," Hilgenstock said. "With some improvements, it can be very effective." Vessels owned or insured by Western nations "persisted in loading Russian oil at all ports within Russia" in recent weeks as prices rose above the cap, the Helsinki-based Center for Research on Energy and Clean Air said in a report last week. "These occurrences serve as compelling evidence of violations against the price cap policy." Russia's oil income rose in September to some 200 million euros (USD 211 million) a day as global prices increased, the think tank said. Less oil available worldwide - with Saudi Arabia and Russia cutting production - pushed prices for Moscow's key export grade crude to USD 74.46 last week, S&P Global Platts said. It's been above USD 60 since July 11. The price cap is meant to
and Russia cutting production - pushed prices for Moscow's key export grade crude to USD 74.46 last week, S&P Global Platts said. It's been above USD 60 since July 11. The price cap is meant to limit what Russia can earn without taking its supplies off the market. Doing that threatens a shortage that could drive up fuel costs and inflation in the U.S. and Europe. It relies on a key fact of the shipping industry: many vessel owners, traders and most insurers are based in Europe or the Group of Seven major democracies that imposed the price cap. That puts those companies within reach of sanctions. To comply, shipping companies need to know the price of Russia's oil. The cap, however, requires only a good-faith disclosure on a simple, one-page document with the names of the parties and the price. The actual sales contracts don't have to be revealed. And that, analysts say, has been an invitation for unscrupulous sellers to fudge - and for some shippers to adopt a see-no-evil approach. Suspicions about evasion grew when analysts noticed that oil from the Russian port of Kozmino on the Pacific Ocean - responsible for a relatively small share of Russia's exports - was trading well above the cap. That was even though many of the tankers stopping there were Western-owned, primarily Greek. There was little sign of enforcement action until last week, when the U.S. Treasury Department blocked a tanker owner in the United Arab Emirates and another in Turkey from dealings in the U.S. They're accused of carrying Russian oil priced at USD 75 and USD 80 per barrel while relying on U.S.-connected service providers. U.S. officials have warned insurers away from vessels that appear suspicious, a senior Treasury official told reporters last week. The department also issued recommendations to scrutinize transport costs and watch for red flags of evasion. The U.K. Treasury says it is "actively undertaking a number of investigations into suspected breaches of the oil price cap." There's another opportunity to sidestep the cap: the price is set as oil leaves Russia, not what's paid by a refinery in, say, India. The oil may be bought and sold several times by Russian-affiliated trading companies in countries not participating in sanctions. Excessive "transportation costs" may be added. The difference to the end price is pocketed by traders and stays in Russian hands, analysts say. "The problem is that no one really has any oversight as to what happens after the point of loading," said Viktor Katona, lead crude analyst at data and analytics group Kpler. "And there's a reason why the shippers haven't really complained or haven't flagged any issues with the oil price cap - because it's very easily circumvented." Russia's top energy official, Deputy Prime Minister Alexander Novak, told Radio Business FM on Oct. 13 that the cap was "not only ineffective, but harmful; it can completely distort the entire market and has only negative consequences, including for consumers."
Novak, told Radio Business FM on Oct. 13 that the cap was "not only ineffective, but harmful; it can completely distort the entire market and has only negative consequences, including for consumers." Russia does not recognize the cap, and a decree by Putin forbids its inclusion in sales agreements, Novak said. U.S. officials, on the other hand, point to the losses it has inflicted on Moscow when combined with Europe's ban on Russian oil. That boycott forced exporters to send oil on monthlong voyages to Asia, instead of dayslong trips to Europe - essentially doubling Russia's need for expensive shipping services. Another cost is the "shadow fleet" of used tankers that Russia bought to dodge sanctions. It has only a third of the vessels it would need to completely sanctions-proof its oil shipments, said Craig Kennedy, an associate at Harvard's Davis Center for Russian and Eurasian Studies. That makes it hard for Russia to completely avoid Western-based shipping services. Combined with the EU oil ban, the price cap has added USD 35 per barrel in costs for Russian exporters, U.S. officials say - money that doesn't go to buy weapons and military equipment. "The price cap is working," says Nataliia Shapoval, vice president for policy research at the Kyiv school. But Western allies "should take really urgent measures" to push oil from Russia's shadow fleet back to mainstream shipping, Shapoval said. To do that, the Stanford sanctions group says countries should demand proof of Western insurance before letting vessels pass chokepoints - now only recommended by the U.S. Treasury. Tanker owners also could be forced to take shipments only from approved oil traders based in sanctioning countries.
Soaring insurance costs hit as US buyers finally get a break on car prices A new form of sticker shock has hit American car buyers like Darin Davis. In January, when the 56-year-old Dallas real estate agent renewed the insurance on the pearly-white 2024 Cadillac XT4 that he bought just a few months earlier, the rate nearly doubled. "It takes the fun out of owning a new car when you're paying so much money," said Davis, adding that if he'd known such a massive increase was coming, he might have opted for a less expensive model. But by then it was too late. In one of the cruel twists of an inflation-weary , car prices are coming down after surging by record amounts during the COVID-19 pandemic. But at least part of those gains for consumers are getting gobbled up by rising auto insurance rates that for some models now account for more than a quarter of the total cost of owning a vehicle. Car prices have eased as the supply chain snarls of the pandemic--especially shortages of vital computer chips--have untangled and automakers boost inventories on their lots. Meanwhile, factors including rising costs associated with repairing increasingly complicated vehicles and more storm damage amid climate change is pushing insurance rates higher. And car buyers aren't the only ones with an axe to grind over insurance inflation. For Federal Reserve policymakers working to lower inflation overall, it's an example of the unwelcome surprises that have conspired to slow their progress. HURTING AFFORDABILITY The rose 3.5% last month from a year earlier, according to the Labor Department. But auto insurance costs were up 22.2% over the same period, the biggest increase since the 1970s. Car prices, meanwhile, continued to moderate. New vehicle prices declined 0.1%, compared to a year earlier, while used prices slipped 2.2%. Car dealers are offering more incentives to buyers, which helps bring down up-front costs. The degree to which insurance rates are weighing on buying decisions is unclear, but there are signs it's become a bigger factor, especially for consumers on tight budgets. "We're hearing from a number of shoppers that they're declining to buy a car - or returning one - because they can afford the car, but not the insurance for it," said Sean Tucker, a senior editor at Kelley Blue Book, a car valuation and research company in Irvine, California. Tucker said Kelley Blue Book recently added insurance guidance to its list of buying tips, urging shoppers to get an insurance quote before they put down any money. Car insurance rates vary widely across the country and are influenced by everything from the cost local collision repair shops charge to the potential for damage from tropical storms and wildfires. According to the insurance shopping site Insurify, the average cost in the U.S. for full auto coverage rose 24% last year and now stands at just over $182 a month. The company said 63% of drivers it surveyed saw rates increase in 2023 and predicts rates will
cost in the U.S. for full auto coverage rose 24% last year and now stands at just over $182 a month. The company said 63% of drivers it surveyed saw rates increase in 2023 and predicts rates will rise another 7% in 2024. But that figure could rise. "We're seeing a lot of activity in (the first quarter) that indicate to us it may increase even more," said Jessica Edmondson, a data specialist at Insurify. TOTAL COST Insurance seems poised to continue to grow as a share of the so-called total cost of owning of a vehicle, which factors in things like routine maintenance, taxes, depreciation, and fuel, as well as insurance. According to Kelley Blue Book, insurance accounted for an average 16% of this gauge for a compact car in 2019 and will grow to 26% in 2024. For a compact SUV, it was 13% in 2019, but will be 20% this year. Multiple forces have combined to fuel the current surge in rates. More cars are being totaled than in the past and quality issues mounted during the production disruptions caused by the pandemic that can lead to insurance claims. A shortage of mechanics has meant it takes longer to fix a car, which in turn drives up the cost to insurance companies that provide rental cars to policyholders waiting for those repairs. A typical car is also increasingly laden with electronics that can make them costlier and more difficult to repair. "A bumper is just a bumper - but a bumper full of sensors costs more to repair," said Kristin Dziczek, a policy advisor at the Federal Reserve Bank of Chicago who is an expert in automotive industry trends. She noted that electric cars, on average, cost 30% more and can take longer to repair. There are also changes in how carmakers are producing cars that carry insurance implications. For instance, Tesla has pioneered a process called gigacasting, which involves casting a single part that can replace 30 or more separate pieces of metal in a traditional vehicle. That reduces production costs but can make it costlier to repair a vehicle involved in an accident. Other carmakers are following suit. Cadillac makes one model now that uses 16 gigacastings. Meanwhile, Davis--the Dallas real estate agent who bought a new Cadillac--said he eventually found a cheaper option by bundling his car and homeowners insurance and increasing the deductible.
Centre notifies new vehicle insurance rates The centre on Wednesday approved the new base premium rates for third party motor . These revised rates will be applicable from June 1, 2022. These rates were last revised for financial year 2019-20 and were kept unchanged during the COVID-19 pandemic. According to a gazette notification from the Ministry of Road, Transport, and Highways, the annual rate of for private cars not exceeding 1000 cc has been fixed at Rs 2,094, up from Rs 2,072 in 2019-20. Under the new rates, third party insurance for private cars with an engine capacity between 1000 cc and 1500 cc has been raised to Rs 3,416 from Rs 3,221 in 2019-20. Larger private vehicles that have an engine capacity above 1500 cc will see the premiums fall to Rs 7,897 from Rs 7,890. For two wheelers over 150 cc but not exceeding 350 cc, the insurance premium will be Rs 1,366 while two-wheelers over 350 cc will command a premium of Rs 2,804. The three-year single premium for a new car not exceeding 1000 cc has been fixed at Rs 6,521, while for a car between 1000 cc and 1500 cc it has been fixed at Rs 10,640. A new private vehicle exceeding 1500 cc will be insured at Rs 24,596 for three years under the newly notified rates. The five year single premium for two wheelers not exceeding 75 cc is Rs 2,901, exceeding 75 cc but not 150 cc is Rs 3,851, and exceeding 150 cc but not 350 cc is Rs 7,365. A two wheeler exceeding 350 cc can be insured for five years at Rs 15,117 under the new rates. A new private electric vehicle (EV) can be insured at Rs 5,543 for three years if it is not exceeding 30 KW. If the EV exceeds 30 KW but is less than 65 KW, the three year premium will be Rs 9,044. Larger EVs exceeding 65 KW will be insured at Rs 20,907 for three years. New two wheelers EVs can be insured under five year single premiums for Rs 2,466 if they are not exceeding 3 KW. EV two wheelers exceeding 3 KW but not 7 KW will be insured for Rs 3,273, and exceeding 7 KW but not 16 KW for Rs 6,260. Higher powered EV two wheelers with a capacity exceeding 16 KW will be insured at Rs 12,849 for five years.
Assam launches India's first 100% Electric Bike Taxi Service via 'Baayu' The Assam government launched ' ,' an app-based bike taxi service that is an innovative and forward-thinking sustainable mobility initiative of the state government-run (ASTC). The app-based electric bike taxi service was flagged off by Assam Minister of Transport Parimal Suklabaidya in the state capital Guwahati on Sunday. The event witnessed the unveiling of India's first app-based 100% electric and decentralized bike taxi services. Baayu (an App based ) by ASTC in collaboration with Bikozee Ecotech a startup from Assam is launching India's first 100% electric and decentralized bike taxi services, ushering in a new era of eco-friendly transportation solutions to be integrated with ONDC. Initiating with zero-emission bike delivery services. Baayu aims to generate 5,000 livelihood opportunities for driver partners right here in Assam by supporting with electric vehicles, technology platform, Insurance, training, skill development and operating license in line with Assam Aggregator rules 2022. This initiative will save an astounding 29,000 tons of carbon emissions annually Baayu is poised to save Rs 73 crore annually on fuel costs, stated in a press release. Supported by NITI Aayog's Shoonya Zero pollution mobility campaign, "Baayu - Clean Air Movement" by ASTC aims to improve the air quality and public health of our cities by deploying Electric vehicles in transport and logistics sectors and thus implementing decentralized technologies of protocol to develop public infrastructures to be deployed on ONDC (Open Network for Digital Commerce). Baayu, a ground-breaking sustainable mobility initiative, launched by Assam State Transport Corporation (ASTC) in collaboration with , has been meticulously designed to revolutionize the transportation landscape of Assam. With a strong emphasis on sustainability, innovation, and inclusivity, Baayu serves as a testament to the Government of Assam's commitment to fostering economic growth, promoting entrepreneurship, and embracing environmentally conscious practices. Big day for Assam as it becomes the first state in India to now have the nation's first app-based 100% electric and decentralised bike taxi service. Besides extending his sincere wishes to the entire team, the Assam Transport Minister speaking at this ceremonial event today urged the bike riders to strictly adhere to all road safety norms while commuting on roads & carrying passengers.
Union Budget 2024 Highlights: Top announcements of FM Sitharaman's Budget 2024 : Our government is working towards development which is all-round, all-inclusive and all-pervasive. It covers all castes and people at all levels. We are working towards making India a , said while presenting Presenting the Interim Budget 2024-25 at Parliament on 1 February, 2024. The country was facing enormous challenges when the current government assumed office in 2024, however, with 'Sabka Sath Sabka Vikas' as its mantra, it overcame those challenges, she said. FM added that the government continues to focus on four major groups -- Poor, farmers, youth and women. While highlighting the 'Garib ka kalyan, desh ka kalyan' slogan, FM said that, with the pursuit of Sabka Saath, the govt has assisted 25 crore people to get freedom from multidimensional poverty in last 10 years. Here Are the ' Top Highlights" : - On the Capex front, the outlay for next year increased by 11.1% to Rs 11.11 lakh crore. - FY25 fiscal deficit budgeted at 5.1% of GDP. FY24 fiscal deficit pegged at 5.8% against the budgeted 5.9%. - Direct Benefit Transfers of Rs 34 lakh crore from government using PM Jan Dhan accounts have led to savings of Rs 2.7 lakh crore. These savings have been realised through the avoidance of leakages prevalent earlier, said Sitharaman.The savings give us more funds for Garib Kalyan, she added. - M Mudra Yojana has sanctioned 43 crore loans amounting to Rs. 22.5 lakh crore for the entrepreneurial aspirations of youth. Fund of Funds, Startup India and Startup Credit Guarantee Schemes are assisting the youth. - Every year under PM Kisan Samman Yojana, Direct financial assistance is provided to 11.8 crore farmers, including marginal and small farmers. Crop insurance is given to 4 crore farmers under PM Fasal Bima Yojana -Rs 34 cr Mudra Yojana loans been given to women entrepreneurs. - Average income of people increased by 50%, says FM - A corpus of Rs 1 lakh crore will be established with 50 year interest-free loan for tech-savvy growth. - Over the last 10 years, tax collections have more than doubled. - No changes in taxation. FM proposes to retain same tax rates for direct and indirect taxes including export duties. The Budget Session of Parliament began yesterday with President Droupadi Murmu addressing the joint meeting of both Rajyya Sabha and Lok Sabha. The session will conclude on February 9.
Indian bonds, rupee fall tracking jump in oil; more losses likely By Swati Bhat MUMBAI: Indian bond yields edged higher while the weakened on Wednesday, tracking a sharp rise in prices that threatens to push up domestic inflation and widen the country's current account deficit. Oil prices rose as sanctions on Russian banks following Moscow's invasion of Ukraine hampered trade finance for crude shipments and some traders opted to avoid Russian supplies in an already tight market. The benchmark 10-year bond yield edged up to 6.80%, up 3 basis points from its previous close on Monday. It touched 6.81% in early trade, the highest since Feb. 9. Markets were closed on Tuesday for a local holiday. Traders said if there are no more debt sales in this fiscal year, yields are likely to trade in a 6.75% to 6.85% range depending on the movement in global crude and the evolving geopolitical situation. India imports more than two-thirds of its and rising crude will push up imported inflation while also widening the country's current account deficit. The partially convertible rupee was trading at 75.63/64 per dollar, weaker compared to its previous close of 75.34. It dropped to a low of 75.7725, its weakest since Dec. 20. Indian shares fell after data showed the country's economic growth missed estimates, with the escalating and surging crude oil prices also weighing. "With a cloud of uncertainty now cast over the timing of the LIC IPO, the pair could move towards 76+ levels if the IPO is pushed to the next fiscal," analysts at HDFC Bank wrote in a note. "The 10-year benchmark yield is likely to trade in the range of 6.75-6.8% in the near term," they added. Bankers advising Indian state-run Life Insurance Corp (LIC) on its IPO have pushed the government to defer the launch of the stock offering in the wake of the market jolt caused by Russia's invasion of Ukraine, two sources familiar with the talks told Reuters. Also Read:
Insurer assessing damage caused by fire at Rohtak R&D centre: Maruti Suzuki New Delhi: (MSI) on Tuesday said its Rohtak-based R&D centre, which witnessed a fire incident, is covered under an insurance policy and the damage assessment is being carried out. On Monday, the country' largest carmaker had informed the bourses that two people working with a contract firm died in a fire at its research and development centre at Rohtak in Haryana. "The facility affected by fire incident is covered under insurance policy. The damage assessment is being carried out and the recovery of the insurance amount is subject to the valuer's assessment of the damage," the auto major said in a regulatory filing. In a late night regulatory filing on April 11, MSI had stated: "There was a fire incident on Monday afternoon in the company's Rohtak R&D centre in one of the buildings where a new lab was being carried out by a third party project company." The fire was brought under control and the root cause is being examined along with the investigating authorities, it had noted. Unfortunately, two people working with a contract firm of the project company succumbed to the fire, the carmaker had said.
Opinion: How digitalisation gains momentum in pre-owned segment, including automotive By Kaushik Narayan The pre-owned segment in the industry was ripe for transformation as the pandemic hit home in India. Challenges faced by customers included: · Uniqueness : Each asset for sale or purchase was unique. The combination of vehicle features, fuel type, colour, tyre type and tread wear, mileage covered and body condition was unique for each asset available for sale · Location : It was difficult to know which seller had what assets available for sale. Prior to , buyers had to visit multiple used car outlets to understand what was available for sale · Assessing vehicle quality: Vehicles were assessed using offline inspection reports that were not standardised or available for the buyer to review · Pricing the asset : Asset pricing was not available publicly · Seller trust : There were no means to understand if sellers could be trusted other than word of mouth or going by market reputation Digitalisation and Covid provided a unique opportunity for sellers and buyers to address these major concerns. The solutions that have emerged have made the industry stronger, more resilient and ready for the next stage of growth. A recent study in the US found that used car buyers spent over 30% more time on research in comparison to a new car buyer due to digitalisation. Acceleration due to digitalisation was primarily due to the following factors: · Emergence of platforms for listing: The advent of platforms like Cars24, , OLX and has made listing and searching assets very simple and easy for customers. Sellers can list their vehicles in a short period of time and buyers can locate vehicles they are interested in very easily also · Realtime inspection report availability: Detailed inspection reports are now made available to customers for vehicles that match their requirements. These reports may include detailed information about the vehicle, the aggregate, battery and tyre condition and details regarding any damage to the body of the vehicle. · Use of AI for detecting vehicle quality: The advent of supports more accurate estimation of vehicle condition and quality. This in turn helps improve pricing estimates for vehicles · Emergence of pricing engines: Multiple pricing engines are currently available that provide a range of prices for assets based on their manufacturer, age, features, specifications and location. This has brought about transparency in pricing assets. · Seller ratings: Online ratings on Google and Justdial complement word of mouth and referrals and help add a layer of trust for sellers These changes have helped accelerate transformation in the pre-owned industry. This in turn help organise this segment and in turn drive industry growth. This in turn has contributed to robust growth in new car sales in 2022-23. A study in the US indicated that Used car buyers spent over 30% more time on research as opposed to new car buyers prior to making a
turn has contributed to robust growth in new car sales in 2022-23. A study in the US indicated that Used car buyers spent over 30% more time on research as opposed to new car buyers prior to making a purchase. Digitalisation has provided these buyers access to better quality information which has helped them make informed decisions. " have become an important driver of growth in the new car sales segment, as more and more customers are looking to upgrade their vehicles. At , we have seen the benefits of this trend first-hand, as many of our customers have chosen to trade in their old cars for a new Kia. This has helped us to penetrate the Indian market quickly and establish ourselves as a fast-growing and trusted brand in the automotive industry," Hardeep Brar, VP and Head, Marketing & Sales, Kia India, said. Used car dealers and platforms also believe that the trust in vehicles sold can be further increased with access to service data from Original Equipment Manufacturers ( ). The availability of detailed vehicle service history, insurance claims and accident information will simultaneously improve both the accuracy of vehicle pricing as well as the confidence of the buyer in the vehicle assessment. The digitalisation trend in the pre-owned car segment continues to stay ahead of the 2-wheeler, 3-wheeler and commercial vehicle segments. However, the advent of platforms like Leaptrucks and emergence of more demanding customers who are digitally savvy and look for transparency will help accelerate the transition to digitalisation in the other segments. ( Disclaimer:Kaushik Narayan is the CEO of Leaptrucks, a Bengaluru-based online marketplace for assisted buying or selling of used trucks, buses or construction machinery. Views are personal)
Answered: Frequently asked questions about car insurance policy Understanding the nuances of a car insurance policy can get tricky. From the right amount of sum insured for your car to the insurance jargons to know about, features and benefits to look for and whether or not they will prove beneficial to your vehicle and you – there are a lot of questions that go through one’s mind. To put those queries to rest, here we are addressing some of the most frequently asked questions about car insurance policies. Why is car insurance important? How does car insurance work? Car insurance is essential for protection against financial losses due to damages to your vehicle and against third-party liabilities. There are three types of car insurance – third-party liability insurance, own damage insurance, and comprehensive car insurance. A provides all-around security by protecting a vehicle against risks, such as accidents, theft, and natural disasters, as well as third-party liabilities. This ensures peace of mind and also compliance with legal requirements. Should I pay car insurance monthly or annually? When it comes to paying for car insurance monthly or annually, budgetary constraints and preferences should be kept in mind. Paying annually often results in savings, as insurers may offer a better deal. However, it may cause a financial burden when an individual prefers monthly instalments. Weigh your options before you determine what best suits you. How can I convert third-party car insurance into ? Convert your third-party car insurance into comprehensive insurance with the following steps: Log onto the online portal of your insurer, fill in your car's details, and then select a comprehensive policy. If required, check and modify the coverage options available (such as insured declared value) and add-ons. Accept the final terms and conditions and pay. Your insurer may inspect your vehicle before approval. Can I get car insurance without a licence? Yes, you can get car insurance without a licence. If someone else is driving your car, it’s essential to have insurance, and you can designate that person as the primary driver. Some insurers may be cautious about offering policies if you do not have a licence, so you might need to shop around. The comprehensive car insurance option is still available, even if you aren't the one behind the wheel. Please note that owning is a car is okay but driving without a licence and car insurance is against the law in India. So it is advisable to get your driving licence first. Which car insurance is better, comprehensive or third-party? Comprehensive car insurance usually offers more advantages than third-party insurance for those who want complete protection. This includes liabilities to third parties and damages to your car due to accidents, robbery, natural disasters, and more. While it is more expensive than third-party insurance, the broader coverage and possible additional features make it valuable for most car
car due to accidents, robbery, natural disasters, and more. While it is more expensive than third-party insurance, the broader coverage and possible additional features make it valuable for most car owners. How to transfer car insurance from one person to another in India? To transfer car insurance from one owner to another in India, you must first complete the vehicle ownership transfer by submitting essential documents like Forms 29 and 30, the car's RC, and a no-objection certificate from the previous owner. Once these are verified, the insurance policy will be transferred to the new owner's name. Can I have car insurance from another state? You can have car insurance from another state if you spend a lot of time in both states or reside in multiple places. However, you will need to follow the insurance and registration laws of each state. Ensure the policy is legal in both states and confirm with your insurance provider whether your coverage extends across states. What type of insurance is best for my car? The best car insurance for your vehicle depends on multiple factors such as your use, budget, type of coverage needed, etc. The most popular type of is comprehensive insurance. This is because it provides the maximum available coverage: protection against third-party liabilities and damages to your own vehicle from an accident or natural calamity, theft, etc. While relatively costlier than third-party insurance, its all-inclusive protection makes it a great choice for total peace of mind when hitting the road. Is it safe to ? Yes, buying car insurance online is safe as long as you purchase it from an insurance provider approved by the IRDAI. Can I cancel my car insurance anytime? A car insurance policy may be cancelled at any time. Most of the time, it involves contacting your insurer and providing the necessary documents, including proof of sale if you are selling your car. How is the calculated? When it comes to comprehensive coverage, the premium charged on car insurance depends on several factors, including the Insured Declared Value of the vehicle, vehicle type, age, cubic capacity of the engine, and geographical zone. The premium consists of three components: third-party liability (mandatory), own damage (optional but recommended), and personal accident cover; one can also opt for add-ons like roadside assistance or engine protection, which will further raise costs. The IRDAI fixes the premium of third-party liability insurance. (Disclaimer: The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content.)
The ebbing supply chain crisis gets an extension Just as businesses across the world start breathing a little easier as Covid cases ease off, the is being forced to play a round of Russian roulette. The bullet is the same one that caused dread around the world the past two years: . Covid repercussions have jammed global trade since the pandemic began. piled up at various ports, blank sailing became common and transportation costs shot through the roof. The situation has not yet cooled down. But, the Ukraine-Russia war has created a similar situation for trade to and from Europe. Indian traders and exporters to Europe are having to face the heat again. The says the crisis “has come at the worst time” as every country is struggling to contain inflation. Since Russia and Ukraine are important suppliers of gas and petroleum as well as metals and cereals, supply disruption from these two sources will push up energy and food prices, says Ajay Sahai, DG & CEO, FIEO. One of the major problems for Indian exporters to Europe is that the trade passes through the Black Sea, which has been affected by the war. International news reports have claimed that more than 100 ships were stranded in and around Ukraine’s ports in the Black Sea, an important sea trade route for Europe-bound shipments from India. This is an all-year transportation artery for Eastern Europe, Russia, the Caucasus and Turkey. The critical maritime transport line sits adjacent to Bulgaria, Georgia, Romania, Russia, Turkey and Ukraine. Both Russia and Central Asian countries are dependent on the Russian port of Novorossiysk for agri products and oil. The established trade patterns stand crippled because of the invasion of Ukraine. Shipping freeze Indian traders are staring at problems with shipping and freight operations and container availability. They are also feeling the pinch of the sanctions on Russia by the US and European nations. FIEO states that most of the shipping lines have stopped taking consignments to Russia. “We had expected the situation to improve after Covid. But freight rates are again moving northward,” says Sahai. It is going to create another container shortage. Whenever container supply from a part of the globe is affected, it is bound to impact the overall container availability, explains Sahai. “With sanctions in place, shipping lines will be reluctant to touch Russia. Such a development will have a bearing on our exports to the CIS (Commonwealth of Independent States) region as a lot of consignments to CIS were moving through Russia. We need to explore the possibility of routing them through other countries, either through Qingdao (China) or through Poti (Georgia).” Shipping giant Maersk has already said it has temporarily suspended new intercontinental rail bookings on both east and westbound routes between Asia and Europe because of the sanctions. “We cannot engage with, receive from or make payments to any sanctioned banks, or any other sanctioned party –
on both east and westbound routes between Asia and Europe because of the sanctions. “We cannot engage with, receive from or make payments to any sanctioned banks, or any other sanctioned party – including Belarusian and Russian parties…,” it said. Maersk has also suspended all new air bookings to and from Russia and Ukraine. It sees a potential risk to the cost of air transportation as airspace gets restricted and flights are further subject to rising fuel and insurance costs. Among others, DHL Express has suspended inbound services to Russia, Ukraine and Belarus; UPS and FedEx have suspended inbound and outbound services to Ukraine and Russia. For bookings made before the announcement of the suspension, logistics companies have said they were committed to delivering those despite delays in transit. Mounting Economic Costs players are hurting. Richard Theknath, Chairman & Managing Director of Jet Freight Logistics Ltd, says the blockage and the problem in the Black Sea has thrust another massive crisis on the logistics industry. “Freight rates have been the highest ever. The industry has been affected by almost 300-500% compared to pre-Covid time, and this has spiked the cost of goods which will eventually be borne by the end-user.” Theknath adds the Ukraine-Russia crisis has added fuel to the fire as air freight and sea freight rates have witnessed an increase of almost 30-40% from the pre-conflict period. Cancellations by shipping lines have heightened the anxiety among supply chain players. Nishant Parmar, Sales Head of Bluebird Cargo Pvt Ltd, says not only have shipping lines cancelled new bookings to Ukraine and Russia, they are also asking suppliers to recall the containers. This has affected freight rates, which had already risen after Covid began. “After Covid, a New York-bound 40ft container cost about $3,500. We are currently getting it for $11,000. It is the same story for the Persian Gulf sector. For Dubai, it has increased from $200 to $2,400 now,” says Parmar. If all these problems weren’t enough, the Suez Canal Authority (SCA) has decided to increase the canal toll by 5-10% from March 1. Experts say recent geopolitical upheavals and the rising oil prices are responsible for it. About 30% of global container traffic passes through the Suez Canal. Though the Russia-Ukraine conflict zone is not in the immediate vicinity of the canal, FIEO says the geopolitical issue is already delaying the movement of ships through this trade artery. It typically takes 45-60 days to move goods via the Suez Canal from India to Europe, from where goods go to Central Asia, says the federation. That timeline has already increased by 2-3 weeks, say trade experts. Oil-freight equation Dealing with a broken supply chain is in itself quite challenging and now we also have to deal with the added pressure of freight rates going up, says Vineet Agarwal, Managing Director of Transport Corporation of India Ltd. “Container freight rates will remain high till the
also have to deal with the added pressure of freight rates going up, says Vineet Agarwal, Managing Director of Transport Corporation of India Ltd. “Container freight rates will remain high till the second half of the year. On the domestic front, we will see a very rapid increase in domestic fuel prices as crude oil prices have gone up.” An increase in fuel price has a direct bearing on freight cost. Typically, a 10% increase in fuel price will inflate freight cost by 4-5%, says Agarwal. “What makes matters worse is that in March, there is usually higher for freight traffic as domestic companies are closing the financial year and want to expedite orders for the period. We should see a rapid increase in freight rates in the next few weeks.” All indications are that global trade is likely to be affected more by the uncertainty and intensity of the conflict than by economic sanctions. Trade policy expert Nisha Taneja says such a situation discourages businesses from making fresh transactions or business deals with both Ukraine and Russia. “They will prefer to wait and watch. These developments are likely to further hurt the already stressed global value chains,” says Taneja, a professor at Indian Council for Research on International Economic Relations (ICRIER). Faced with market uncertainty, logistics and supply chain services companies are trying out newer mitigating measures. “A lot of traffic that moves by road will come with a higher cost structure. So, we are pushing for multimodal solutions instead of just road transport. We are also using ships to move goods domestically,” says TCI’s Agarwal. Queries sent to the logistics division in the Department of Commerce and the Federation of Freight Forwarders’ Associations in India were unanswered when this story was being published. A Plan B? Another major problem for freight movers is that many banks are not transferring money received from Russia. These banks are saying the amount would be returned to Russia due to the sanctions. The exporting community, too, is exploring new ways to safeguard their business interests. FEIO’s Sahai emphasises that one way to deal with the situation will be to trade in local currencies for commodities that are not on the sanctions list. The money lying in state credit with Russia can be used to settle export transactions, he points out. “However, banks will be extremely careful in dealing with such transactions. Since the payments for exports already done will be delayed, we request the government to provide relief to exporters by asking banks not to charge a penal rate of interest and also be liberal in granting an extension in the remittance period on expiry of 9 months’ deadline,” Sahai says. Experts suggest that traders should also be aware of increased insurance costs as that could stealthily eat into their profits. Exporters to Ukraine, Russia and other CIS countries should contact their nearest servicing branch of Export Credit Guarantee Corporation of India
as that could stealthily eat into their profits. Exporters to Ukraine, Russia and other CIS countries should contact their nearest servicing branch of Export Credit Guarantee Corporation of India (ECGC) for clarity on insurance coverage, says Vijay Kalantri, Chairman of Mumbai-based trade facilitating body MVIRDC World Trade Centre. Capitalising on War Kalantri, however, maintains that the crisis will not have a significant impact on India’s global supply chain. The reason: it has mainly affected India’s to and fro shipments with the 12 CIS countries, which hardly account for 2.7% of our imports and 1.4% of our exports. As for non-EU destinations, he insists major shipping lines have not cancelled services from India to non-EU destinations and so the crisis’ impact on India’s trade will be minimal. However, there will be a rise in ocean freight cost due to expensive crude oil, he adds. Some commodities would also be affected as Ukraine supplies 52% of the world’s sunflower oil, 14% of maize and 9% of wheat. As for Russia, India’s major exports are engineering items, pharmaceuticals and organic chemicals — accounting for 48% of the exports to Russia. However, Taneja highlights that India’s share of exports to Russia in each of these products as a proportion of total exports to the world is just 1-2.4%. “Major imports from Russia include energy, pearls and fertilisers, accounting for 68% of India’s imports from Russia. Of these, fertiliser imports account for 9% of India’s import of this item from the world, while each of the other two items accounts for only 2% of the imports. The impact will be felt the most on fertiliser import. India does not rely heavily on Russia for the import or export of any other item and, hence, a shift to other sources or markets may not pose a huge cost,” she adds. FIEO chief Sahai even sees a silver lining. The crisis is an opportunity to capture the markets largely catered to by Russia, particularly in sectors such as wheat, corn, iron & steel, petroleum, plastics, rubber and spices. “While our exports to the EU remain unaffected, the freight hike is affecting the profit of exporters. However, as Russia’s major market is Europe, we will have a much better opportunity to push our exports to occupy some space left by Russia, owing to the sanctions,” he adds. Many western nations have imposed financial sanctions on Russia but have not yet stopped agri commodities trade. When comprehensive and harsher sanctions are levied on Russia, India would get a chance to export its stock of grains and agri products to the world at higher prices, says TCI’s Agrawal, who is also President at ASSOCHAM. The iron and steel industry also has an opportunity to meet global demand for semi-finished products of iron and non-alloyed steel, where Ukraine’s world export share is 12%. As the West and Russia face off over Ukraine, India can emerge as a winner. Also Read:
2022 Toyota Tacoma falters in key crash test: IIHS New Delhi: The 2022 earns a marginal rating in the passenger-side small overlap front crash test due to heightened injury risks to the front seat passenger, reported ( ) today. The marginal rating applies to vehicles built after October 2021, when Toyota modified the rear leaf springs — arc-shaped steel pieces that stabilize the axle. Vehicles built prior to that date are rated poor. In an earlier test of a vehicle built before the changes, one of the rear leaf springs punctured the fuel tank, resulting in fire risk and an automatic downgrade. Toyota’s modifications corrected the fuel-leak problem, but it was observed that the other issues persisted in the more recent test. The small pickup’s door frame and dashboard intruded into the occupant survival space during the crash, contributing to heightened injury risks to the front seat passenger. Injury measurements taken from the dummy indicated a high risk of injury to the occupant’s right leg and a moderate risk of injury to the left leg. Though the frontal and side curtain airbags performed reasonably well, the dummy’s head also struck the grab handle on the A-pillar on the right side of the windshield. The Tacoma earns good ratings in five other crashworthiness evaluations — the driver-side small overlap, moderate overlap front, original side, roof strength and head restraint tests, IIHS added. According to the Insurance Institute for Highway Safety (IIHS), the standard front crash prevention system earns a superior rating in the vehicle-to-vehicle evaluation but was not tested for pedestrian detection. The optional LED reflector headlights available on higher trims earn a good rating, while the base halogens are rated marginal. Also Read:
Is crude headed towards a new era of oil geopolitics? Energy markets are not short of geopolitics these days. The petro-nations’ decision to cut output quotas next month might ultimately have a limited supply impact but sends a clear message. Similarly, the ’s idea of an price cap will face strong implementation difficulties but adds to the confrontation. Geopolitics look set to inject noise and uncertainty into the market for the time being. Yet the bigger picture looks unchanged. The oil market rebalances following the past months’ price spikes. We stick to our cautious view as fundamental headwinds should persist. While geopolitics and power games are blunt and harsh on the natural gas market these days, related dynamics seem nascent on the oil market. The petro-nations decision to lower production quotas in October is difficult to justify with market conditions. Storage levels are normalizing but do not suggest the oil market is oversupplied. The oil futures curve is downward sloping, a shape that coincides rather with scarcity not abundance of commodity supplies. That said, the quota reduction is minimal, and many producers remain below their individual levels. Looking ahead, the petro-nations’ output could well increase incrementally despite the quota reduction. But the message is more telling and shows how the commodity producers exploit their temporary powers under market conditions such as todays. It remains to be seen if the rifts between the West and the petro-nations widen in consequence of the war in Ukraine and sanctions on Russia. So far, the oil supply chains adjusted swiftly to the new realities and the overall loss of Russian supplies was minimal. The change in the Russian oil trade comes with broader consequences including a shift of insurance and trading activities from towards the Middle East and , and thus moving out of reach of the Western sphere. The idea of an oil price cap seems difficult to implement, first to find enough willing participants and second to effectively govern its mechanisms given the loss of influence. In the end, the West and the petro-nations face similar challenges in terms of how to use their powers but without moving prices too much. While the West is concerned about its citizens and their energy bills, the petro-nations should not want to alienate Asian buyers including China and India too much with their price-nudging politics. Our best guess is that geopolitics remains a source of market noise and a risk of short-term tit-for-tat escalation, but ultimately only a temporary price determinant. The bigger picture looks unchanged. The past months’ price spike unleashed the market’s known self-healing mechanisms. The fundamental headwinds to prices should persist longer term on the back of the shale boom and stagnant Western world demand. (The author is and , Julius Baer)
Russian oil sold to India at 30% above Western price cap Russia is selling oil to India at nearly USD 80 per barrel, some USD 20 above the Western price cap, traders said and Reuters calculations showed, as tight global oil markets help Moscow generate strong appetite for its exports. Russia's main export grade Urals has been trading above the USD 60 per barrel Western price cap since mid-July amid output cuts by , including Saudi Arabia and Russia. India, which is the world's third biggest oil importer, has become the top buyer of seaborne , mainly Urals, since 2022 after Western sanctions against Moscow. Calculated Free on Board (FOB) estimates for Urals cargoes loading from Baltic ports in October were close to USD 80 per barrel on Thursday for Indian customers, according to traders' data and Reuters calculations. "Russia has low inventory levels and their production is also cut," said an official at an Indian refiner that regularly buys Russian oil, explaining the latest jump in prices. Cuts have helped narrow discounts for Urals at Indian ports to USD 4-USD 5 per barrel versus dated Brent from USD 6-USD 7 per barrel two weeks ago, four trading sources involved in the operations said and Reuters calculations showed. The traders referred to prices for cargoes loading in late October. "Urals prices are on the rise again. Alternatives are much more expensive and not easily available," a trader familiar with the Russian oil market said. , , Hindustan Petroleum Corp, Mangalore Refinery and Petrochemicals Ltd, HPCL Mittal Energy Let, Reliance Industries Ltd and Nayara Energy Ltd did not respond to Reuters' emails seeking comments. Russian Urals oil typically gives higher yields of diesel, which accounts for about two-fifths of India's overall refined fuel consumption. Meanwhile, Russia's decision to ban diesel and gasoline exports added to the appeal of Urals crude, amid a looming shortage of the products globally. The Western price cap on Russian oil allows buyers to use Western services such as shipping and insurance in the event that crude trades below USD 60 per barrel. Russian oil has drastically reduced the use of Western shipping and insurance companies since the imposition of the cap, which is also challenged by a spike in global oil prices towards USD 100 per barrel. Turkey was the second biggest buyer of Urals oil cargoes in September, followed by China and Bulgaria, according to preliminary LSEG data. Russian oil is also now being sold to customers in new markets like Brazil, the Indian source said.
Non-payment of toll charges to reflect on Vahan portal, app Soon, evading toll charge payment for long after using a tolled highway stretch due to faulty or blacklisted FASTags won’t be possible. Such non-payment of will reflect on the and app, like in the case of dues. The has urged the road transport ministry to make changes in the Vahan system, a repository of registered vehicles, to recover unpaid toll from vehicles with no or faulty/blacklisted tags. It has also proposed to add a section — ‘unpaid user fee due’ — in the Vahan portal to display the due amount. The Vahan portal would display the due amount and the vehicle’s photo for evidence when the owner logs in, the NHAI said. As per a proposal, such vehicle owners would not be allowed to transfer registration or get NoC and fitness certificate without clearing the dues. Vehicle owners will have the option to pay the dues or raise objections to the notice within seven days. The proposal has been forwarded to the ministry as the NHAI has started adopting a free-flow system of tolling on some stretches. This will be expanded before the full roll-out of a satellite-based tolling system. In this system, vehicles are allowed to flow smoothly without the need for toll booths or barriers. It uses cameras, sensors and number plate recognition to automatically identify vehicles and charge toll. The NHAI has proposed that when a vehicle without a FASTag or blacklisted one passes through a free-flow toll plaza, its control room will generate a notice and send it to the Vahan portal. “At a later stage, more options like linking this to renewal of insurance can be explored to ensure that none can shortchange the system,” said an official.
US investment firm Vanguard cuts Ola's valuation further to USD 3.5 billion Funds operated by US-based investment major Group have cut the value of their holdings in ANI Technologies, the parent firm of ride-hailing startup , to USD 3.5 billion – down over 50% from a peak of USD 7.3 billion – regulatory filings made by the investor with the US Securities and Exchange Commission (SEC) on Monday showed. The latest filing reflected Ola’s valuation as of May 31 in the investor’s books. Crossover funds, which invest both in publicly-traded and privately-held companies, periodically review the valuation of their portfolio companies. The valuation cut comes at a time when a number of headline investors in multiple Indian startups have done the same, amid a global rout across public and private technology markets. Recently, Netherlands-based tech investor Prosus slashed its valuation of beleaguered edtech firm Byju’s to about USD 5.1 billion from the USD 22 billion it last raised equity funding at, while US asset manager Invesco cut the valuation of food delivery major Swiggy to USD 5.5 billion from USD 8.2 billion in May. Vanguard’s International Growth Fund now values its holding in Ola at USD 25.0 million, down from the USD 33.8 million valuation it assigned to its holding in its half-yearly report in May this year, and much lower than the about USD 50 million Vanguard assigned the stake in 2019. This indicates a valuation of about USD 3.5 billion for the entire firm, down from USD 4.8 billion indicated by the investor’s report that reflected Ola’s valuation as of February 28. The mobility company last raised USD 139 million in December 2021 as part of a funding round, led by Private Equity. The International Growth Fund holds 1,66,185 shares in the firm. Another Vanguard fund, the Variable Insurance Fund, also holds about 19,000 shares in Ola, taking Vanguard’s total stake in the company to 0.8%, as per Tracxn data. An emailed request for comment to Ola did not elicit a response until publishing time. Ola’s recalibration Over the last year, Ola has exited a number of ventures in verticals such as second-hand car sales, food delivery, and grocery delivery, which it had diversified into as the pandemic hit the company's core business. ET was the first to report that Ola would be shutting its quick-commerce and used-car marketplace in June last year. The firm now solely focuses on its core ride-hailing business. These shutdowns were followed by the exit of several senior-level executives, including chief marketing officer Varun Dubey, Ola Cars (used-car business) chief executive Arun Sirdeshmukh, and Vinay Bhopatkar, who headed multiple businesses including food and grocery delivery. Ola founder Bhavish Aggarwal has said on many occasions that the ride-hailing business was profitable. The firm, however, has not reported its financials for fiscal 2022 and 2023. ANI Technologies last reported a loss of Rs 1,116.6 crore on a revenue of Rs 1,168.2 crore for
business was profitable. The firm, however, has not reported its financials for fiscal 2022 and 2023. ANI Technologies last reported a loss of Rs 1,116.6 crore on a revenue of Rs 1,168.2 crore for the fiscal year ended March, 2021. Its sister firm , which is held separately, hasn’t reported its results for those years either, but a Reuters report said Ola Electric incurred an operating loss of USD 136 million on a revenue of USD 335 million in fiscal 2023. In the meantime, its competitors have continued to make strides. Bangalore-based Rapido has expanded its three-wheeler category, while ONDC-run auto hailing firm Namma Yatri has also entered the mix. In the cab category, all-electric cab company BluSmart, backed by BP Ventures, has raised multiple funding rounds and plans to expand its fleet above 10,000 by FY24. Uber has also signed a contract with to deploy more than 25,000 electric cars in the next three years. Companies running electric cabs have a different business model as they either own or lease the cars and employ drivers, giving them significant control over the quality of the service that has deteriorated significantly after the pandemic. ET reported on January 4 that Ola was planning to pilot its own EV cab service in Bengaluru with about 1,000 cars.
Tata steel to grow organically, new acquisitions unlikely this decade: MD By Romit Bhattacharyya Kolkata, Ltd will look to grow organically, and the steel giant is under "no pressure" to look at fresh acquisitions during this decade, Chief Executive Officer and Managing Director said. Narendran said that the Jamshedpur-based behemoth will fuel its growth ambitions to more than double its output, relying on organic growth at its existing sites. "Most of our growth in the last few years has been through the inorganic route (acquisitions). Currently, we are in a position where all our growth ambitions can be met through organic growth in our existing sites. "We don't really need to acquire any new assets to grow (output) to 40-50 MTPA (million tonnes per annum) from the present level of 20 MTPA... We will rely more on organic growth during this decade," Narendran told PTI in an interview. Tata Steel had reported production of 19.06 million tonnes in the 2021-2022 fiscal. The steel behemoth had acquired Bhushan Steel in 2018, followed by Usha Martin in 2019. It is also on course to complete the acquisition of Neelachal Ispat Nigam Ltd (NINL) by the end of the April-June quarter. Elaborating on the plans of the company, he said the NINL output will be ramped up to 10 MTPA from 1 MTPA, while the Kalinganagar plant will see an expansion to 8 MTPA from 3 MTPA, and later to 16 MTPA. "So, there are huge opportunities and plans being made," he asserted. Speaking of Tata Steel's decision to stop coal imports from Russia following its invasion of Ukraine, Narendran said the company is aware that the same quantity can be easily sourced from other countries. "We typically buy close to 15 MT of coal annually, of which around 3 MT used to come from Russia... which can be easily be sourced from countries like Australia, Indonesia and Canada," he said. Prohibitive insurance and shipping costs from Russia and Ukraine has made trade with those countries difficult for most partners. Narendran also ruled out the possibility of hiking steel prices further, as rates were raised earlier this year after the Russia-Ukraine crisis started. "Most of the steel price increase happened in February-April. Right now, costs are stable, so steel prices are stable. We are comfortable with that," the top Tata Steel official said. He said steel prices in India are likely to be Rs 8,000-8,500 per tonne higher in the first quarter of 2022-23 as compared to the fourth quarter of last fiscal. Narendran said the demand-supply situation in the steel industry is more balanced at present and this will continue for some time. "We are now at a stage where a few things have changed... one is China is no longer exporting as much steel as it used to in the past, other big exporting countries like Japan and Korea are also reducing shipments because they don't want to import raw materials, leave a carbon footprint and export steel. "Therefore, we're seeing a greater restraint being exercised by most
and Korea are also reducing shipments because they don't want to import raw materials, leave a carbon footprint and export steel. "Therefore, we're seeing a greater restraint being exercised by most countries which have traditionally been big exporters. In Europe, Ukraine and Russia have also been large exporters, but owing to this war, they are also not in the market," he explained. Narendran said steel consumption will continue to grow in India, South East Asia and Africa, whereas demand in mature markets is likely to be sombre. India is fundamentally a good place to manufacture steel, he said, as it has iron ore, unlike most of the other big, steel-producing countries. "Also, much of the iron ore is in some of the poorest parts of India. Therefore, it has a great opportunity to create steel capacities, jobs and also be an exporter." He, however, said India's steel demand has traditionally grown at less than the GDP growth rate, whereas in developing countries, consumption "should ideally grow at a faster clip" than the GDP. Narendran also expressed apprehension about the crude steel production target of 300 MT by 2030 as envisioned in the National Steel Policy 2017. "I don't think 300 MT by 2030 is realistic, because we have lost three-four years due to the pandemic and other factors. Even if it grows at 7-8 per cent a year, you will be in the 200-250 MT range. That would be a more realistic estimate," he said. India produced around 120 MT of crude steel during the financial year ended March 31.
First electric scooter series on mission to push safer micromobility LONDON: Organisers of the world's first say they are on a mission to promote and develop as a safe and integrated element of city life after a race debut in London. Khalil Beschir, a co-founder of the championship, saw a role similar even to the one played by motorsport in the early days of the automobile. "Yes, we are creating a new sport, we are creating an accessible sport," the Lebanese entrepreneur and former car racer told Reuters ahead of Saturday's race. "At the same time we have a mission to help governments, cities, to develop safe riders and to work with cities on the right way of using these scooters." "It's where cars used to be in 1910," he said of the arrival in numbers of electric scooters on city streets four or five years ago. "People complained about them, hated them when they came to the cities: 'they are not safe, they are everywhere'," he said. "We use the racing to be a lab, of safety, of infrastructure, of technology. "This is the aim of eSC -- to develop this, as motorsport and Formula One did with the car industry." Austrian former F1 racer and twice Le Mans 24 Hours winner Alex Wurz, who is also the chairman of the Grand Prix Drivers' Association (GPDA), is a co-founder along with Brazilian former Formula E champion Lucas Di Grassi. Formula One veteran Nico Hulkenberg has a team and there are plenty of people in the background with links to motorsport's world body, the (FIA). The series has, however, set up its own commission, headed by Wurz, with a stated aim "to regulate and promote the safe and sustainable development of micromobility in sport and urban micromobility". "We think that we have a really strong product," Wurz, who first started working on the concept in 2018, told Reuters at a former newspaper printing site in London's Docklands that hosted the first race. "We have a huge opportunity for grassroots sport to be definitely the cheapest motorsport entry you can find and then a career ladder through to world championship level. "Beside our sporting ambition, from the first minute I said micromobility is such a hot, fast growing topic and sector we have an obligation to create a synergy between racing and road safety." SPEED RESTRICTIONS Insurers see e-scooters as inherently more dangerous than bikes or cars while trial projects for e-scooter providers in some cities have featured speed restrictions and tight regulations. In London, electric scooters are a common sight but currently legal only on private land or via authorised hire schemes, although the government has said it is planning new rules to expand usage. Wurz said it was "mind blowing" how many interested cities and stakeholders had approached eSC, and he hoped to have an influence on urban design. "The way we are consuming mobility is fundamentally changing," he added. "In the future some of our roads will actually become living space, a shared space where you walk, some on
on urban design. "The way we are consuming mobility is fundamentally changing," he added. "In the future some of our roads will actually become living space, a shared space where you walk, some on cycles, some on electric scooters and we need to co-exist. "And we can. That's the journey -- to educate people, to regulate, to create the engineering. How we are separated but yet together. The legislation needs to be in line." The eSkootr machines raced by 30 riders from 10 teams weigh some 40kg and feature two six kw motors with top speeds in excess of 100kph. The tyres are produced from vegetable oil and the grip allows the male and female riders -- drawn from sports ranging from snowboarding and speed skating to hockey, cycling and motorbikes -- to lean 60 degrees into the corners. The inaugural winner around the 12-turn 470 metre course was Swiss rider Matis Neyroud, ahead of Britain's Dan Brooks and India's Anish Shetty. Other races will follow in Switzerland, Italy, France, Spain and the United States with Asia and Africa likely to be added from next season. A global broadcast agreement has been signed for races to be shown in more than 200 countries on sports streaming platform DAZN. "I think it will catch on. Everyone I've told about it and who has seen about it, they think it's so interesting and going to be fun," said Britain's former BMX world championship bronze medallist Tre Whyte. "I just loved it straight away."
Ola Electric HR director quits; 31 top-level resignations and 40 new postings since 2020 New Delhi: Country’s most well-funded startup continues to see latest on the list is Ranjit Kondeshan, Director HR, . Ranjit having a total experience of about 18 years joined the company in May 2021. Like many other senior executives, Ranjit also decided to move on in just 14 months. He will leave the company on 2 July 2022. Ranjit has joined Ola from Visa where he worked as Director since May 2018 - May 2021. He started his career with LG as a senior HR executive in 2004 and worked there for three years. In his 18-year-long career, he has worked for 7 companies. Ola seen as the biggest success story in recent times has challenged the status quo is not only through shared mobility but also by successfully disrupting the traditional automobile retailing model by introducing direct-to-customer retailing. In May, Nidhi Chaturvedi Jha quit Ola electric as regional head and joined the e-tailing giant Amazon. In April Nishit Jain one of the longest-serving senior executives ended his four-year stint with Ola Electric as director in April 2022. Jain has joined Daimler India Commercial Vehicles (DICV) as the Head of their EV mobility business. The transient situation at the top deck has been consistent for a long time at Ola (As a group including all businesses). Since 2020 at least 31 senior executives have left the company as against 40 new . Ola Electric which sells e-scooters, in the very first five months which apparently became the peak sales. Since then the sales have been dwindling for the company as it has come down to about 200 units a day from about 400 a day registration. Ola has shut its used car division Ola Cars within eight months of its commencement and some of the people have been moved to the electric vehicle and mobility business. The company has also wrapped up Ola Dash, its quick commerce arm, said people in the know. Forming these two businesses as a restructuring process over 25 persons left the company. TOP-LEVEL RESIGNATIONS TOP-LEVEL APPOINTMENTS Research By Ushma Ghosh
Sitapur siblings' e-bikes run on reusable batteries Worried about the greenhouse gas emissions and carbon footprint, engineer brothers from Sitapur district have come up with an electrical bike - Landstar - that runs on reusable lead acid batteries. While (23) is a computer science engineer his brother (22) is a mechanical engineer. Together, the duo has developed an e-bike that reduces electronic wastage. "The existing e-bikes use lithium batteries which, once damaged, can't be reused. We have in our innovation used lead acid batteries that are reusable by replacing its electrodes," said Anshul who has put on display a prototype of his e-bike at the . His firm Uttam Industries has already signed a MoU with the UP government for production of e-bikes. The e-bike has a mileage of 80 to 85 kms per charge and takes approximately four hours to get fully charged. The maximum speed of the e-bike is 45 km per hour. Battery-powered bikes, said have shown great promise as an effective and environment-friendly transport solution. "Not only are they affordable but they are portable as well. And with reusable batteries, it emerges as an even better option," he said. Global warming is a severe problem affecting the environment worldwide, primarily due to the excessive consumption of fossil fuels for transportation, which accounts for a fifth of global carbon emissions. As a result, many environmentally conscious people are looking for sustainable alternatives to replace fossil fuels. "As soon as you buy a car, insurance fees, daily fuel expenses, and routine maintenance costs soon start to pile up. But these e-bikes empower us to decrease your environmental footprint and combat climate change on an individual level," said Anshul. Also Read:
India key to global sales expansion for Mercedes, says chairman Ola Kallenius New Delhi: was the fastest growing market for in 2022, and the country's economic trajectory makes it key to global sales expansion, said , chairman of the board of management at the luxury carmaker. "The Indian market is important to us and it is a growing market. It has great long-term future potential," Kallenius told ET. "Whatever strategic patience you need to apply, it's going to be worth it... We're on the verge of India becoming the next story." Mercedes-Benz sold 15,822 units in India last year - its highest annual sales for the country, a 41% growth over 2021 volumes. At present, the automobile manufacturer has a 51% market share in the domestic segment and sells four electric models. The chairman expects its entire fleet to go electric in the country in the "2030s." Kallenius is "cautiously optimistic" the Indian market can grow manifold long-term. This is considering the demographic dividend, along with progressive regulatory policies to promote electrification and a probable positive outcome of trade negotiations, despite absolute volumes and penetration of luxury vehicles currently being limited. "We can, at least over the next few years, double the volumes in the Indian market. We have set ourselves up for growth here," he said. "Whether it's engineering and technology, sales, preparing the market, taking care of the customer, progressing the sales model or operations... we have moved forward significantly in all dimensions." Sourcing and Supply Chain With sales of about 38,000 units in 2022, luxury vehicles currently account for about 1% of the 3.8 million passenger vehicles sold in the country. Mercedes-Benz imports completely knocked down and completely built units, which attract higher levies than cars manufactured fully in the country. Kallenius said the company typically only looks at local "part by part" production in a market when demand for a model rises to 50,000-100,000 units a year. "That is the next inflexion point," he said. The board chairman said regulation and taxation always played a role in expanding the market, and that reduction of GST on electric vehicles (EVs) to 5% would "incentivise the decarbonisation of mobility" in the country. Reducing trade barriers and increasing free trade agreements will help boost economic activity, in terms of both exports and imports, he said. While agreeing that setting up of regional sourcing hubs was important to ensure "resilience of your business system," Kallenius said trade policies should be more open, and not protectionist. According to him, have started recognising the importance of sourcing battery material and manufacturing batteries regionally, with EVs set to take centre-stage in the global landscape. "It's almost like an insurance policy to get better supply chain resilience. And naturally, a global player like Mercedes-Benz is working on that resilience. (But) that should not be confused
"It's almost like an insurance policy to get better supply chain resilience. And naturally, a global player like Mercedes-Benz is working on that resilience. (But) that should not be confused with trade policy," he said. Talking about sustainability, Kallenius said the company has been allocating capital towards decarbonisation across the value chain. "As of 2025, (we will also have) fully electric architecture," he said. At present, battery EVs remain the best solution for zero-emissions mobility. "You can scale charging infrastructure now; you can scale production better now. It has the highest efficiency," said the chairman, though adding that green hydrogen could be a solution for industries and parts of the transportation sector such as heavy trucking because of its higher energy density. In India, Kallenius said internal combustion engine cars and EVs will coexist at least for the next decade, even as the industry develops charging infrastructure and works on customer convenience. "We have the good fortune that our high-tech electrified (and) combustion portfolio is almost brand new and we are, of course, refreshing that with the latest emission standards. We will have coexistence of high-tech combustion and electric at least for the next 10 years," he said. Also read:
Bosch eBike Systems expands theft protection and refines eBike navigation New Delhi: Whether during challenging trails on an eMountain bike, extended discovery tours through the countryside or comfortable city rides on an eUrban bike: riding fun is guaranteed with eBiking. To provide the best possible protection when parking pedelecs, is further expanding its theft protection for eBikes featuring the smart system with the latest update to the app. The new eBike pass and theft report functions help protect eBikes from theft by making it easier to identify and quicker to report to the police thanks to simple data transfer. The more time this saves, the greater the chance of recovering the eBike. Always at hand: the digital eBike pass: The digital eBike pass shows eBikers all the important information about their eBike at a glance. In addition to the information already stored about the components, they can now also add further identifying features, for example the frame number, descriptions of special features, documents or even a photo of the eBike, themselves. This means that eBike owners have all the important information at their fingertips - and not just in the event of theft. Even if, for example, the insurance company or specialist dealer has questions about the eBike or resale is planned, the eBike pass provides information quickly. Quick help in the event of theft: If the eBike is actually stolen, the police can be informed easily and comprehensively using the new theft report function. Under " ", users can mark their eBike as stolen in the eBike Flow app and are then guided through to the final theft report based on questions stored in the app. In addition to the time and place and a description of the incident, the feature also records personal data such as name and telephone number so that the police can immediately contact the person concerned if necessary. All eBike details are automatically taken from the information in the eBike pass. Owners can email the final theft report to the police as a PDF file or print it out if required. The two new eBike pass and theft report functions complement tried-and-tested features such as the clever eBike Lock additional theft protection and the premium eBike Alarm service. Refined navigation In addition to the new theft protection functions, the software update also brings improvements to navigation with the eBike Flow app. Thanks to the new quick menu on the Ride Screen, the navigation destination can be changed while riding using the selection button on the LED Remote, Mini Remote or Purion 200 display without having to stop or take the hands off the handlebars. The current navigation can also be ended easily and immediately. Thanks to the extended route planning, eBikers can now also easily add individual stopovers to the navigation on their tours. All that is required is to press and hold the point on the map; alternatively, the "Add destination" option is available. The new elevation graph
stopovers to the navigation on their tours. All that is required is to press and hold the point on the map; alternatively, the "Add destination" option is available. The new elevation graph illustrates how much you have already achieved on your ride: a clear line graph shows the total distance including all height differences. Because a dot on it marks their current position, eBikers know exactly which climbs they have already completed and which descents still lie ahead of them. With the new functions, the smart system is continuously being expanded with new features for greater safety, customisation and convenience when eBiking. The update can be downloaded via the eBike Flow app, which is available for download from the relevant app store at no additional cost.

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