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CarTrade Technologies open to further acquisitions to fast-track expansion plans Auto marketplace - which bought pre-owned goods classifieds platform in a INR 535-crore transaction earlier this fiscal - is open to further acquisitions to fast-track its expansion plans in the country. , Founder & Chief Executive Officer (CEO), Technologies told ET, the recently concluded integration with OLX has helped expand revenues by 45% to INR 680-700 crore. “We (still) have cash reserves of about INR 700 crore. We are open to investing in companies which will either help enter a new market or bring new products and technologies to customers”, Sanghi said, adding CarTrade wants to digitise the entire ecosystem and offer value-added services, be it auto finance, leasing, insurance, servicing or ownership. The integration with OLX, Sanghi said, has also helped more than double the average number of unique visitors to 68 million per month, with 90% of these coming in organically. While auto still continues to comprise 80% of revenues at the Group, Sanghi said the focus will also be on expanding non-auto business verticals going ahead. “Real estate, electronics, two-wheelers are all major categories on OLX. What we are now trying to do is set up verticals for key businesses to grow operations. The ratio (between auto and non-auto) mid-term may not change much as auto is a fast-growing category but overall there is a big potential to increase revenues”, Sanghi informed. According to Sanghi, OLX has a base of 100 million users with nearly of third of these coming to buy or sell a product on the platform every month. A priority project short-term is to commence financial services on OLX. He said, “The other thing we want to do is offer financial services within OLX.” Overall, Sanghi said all of the group businesses are independently profitable and the emphasis would be to continuously grow margins going ahead. CarTrade reported an increase of 132% in consolidated net profit at INR 12.96 crore in the second quarter ended Sep 30, 2023. CarTrade registered revenues of INR 314.33 crore, which is an increase 258% over INR 87.88 crore in the same period last fiscal. is listed on the Bombay Stock Exchange. CarTrade is a platform for classified automobile ads. Earlier, CarTrade had acquired CarWale and BikeWale in the online new and used car and two-wheeler space; Shriram Automall which was into automobile auction and auto inspections and valuations firm Adroit Auto.
G7 to be ready with details of Russian crude price cap by Dec 5 -official G7 countries will be ready with all the operational details of a price cap on by Dec. 5, when the measure is to kick in, even though many details now remain to be settled, a senior U.S. official said on Friday. Speaking to reporters during his visit to Brussels, U.S. ambassador James O'Brien of the U.S. State Department who heads the coordination of sanctions against Russia, said technical talks were underway on issues of pricing and governance of the cap, but declined to go into more detail. "The key date is Dec. 5. I think the price cap has been discussed for long enough that market participants understand that it is coming and they're providing views on the best way to implement it," O'Brien said. The price cap, backed by the United States, Japan, Britain, Canada and the (G7), will not allow shipping and insurance companies to provide services for tankers carrying Russian crude unless the oil was sold at or below a set price. The maximum price, which is still to be set by the G7, is to be just above Russian production costs to limit Moscow's revenues from and reduce its ability to its invasion of Ukraine. But insurance and shipping companies, wary of breaking the future price cap so as not to become subject to secondary sanctions themselves, say they also need to know, among other things, at which point the sales price would be recorded, how it would be verified and what happens to a cargo when there are objections raised. O'Brien said the whole package would be ready in time. "It would certainly be ready by Dec. 5 and we'll address those issues," he said. U.S. Secretary of State Antony Blinken, speaking to reporters after a two-day G7 meeting in the western German town of Muenster, said the price cap will help limit Russia's gains from energy sales. "Russia will make whatever decisions it makes but I think it will have an interest in continuing to sell energy," Blinken said. "This is a good mechanism for both ensuring that energy remains on the market, but the gains that Russia gets from it have a ceiling." Asked if he could assure the consumers that the mechanism wont lead to an increase in gas prices, he said: "We will see how this plays out." Read More:
India, UK look to resolve visa, EV issues under proposed free trade agreement and the are trying to resolve issues concerning visas for domestic professionals and duty concessions on British electric vehicles (EVs) as part of the proposed , and talks on them are at the last leg, an official said. An Indian team is in the UK to iron out differences over these issues, besides some others in the services sector and customs duty cut on British whiskey. The two countries are looking at tariff rate quota (TRQ) type arrangements for EVs. Under TRQ, a fixed number of goods are allowed at concessional duty, and beyond that, normal duty applies. The UK has sought customs duty concessions on exports of electric vehicles to India under the proposed free trade agreement. "India is seeking a liberal regime for its services companies as those firms need to send skilled professionals to the UK. So, visa regime should be facilitative for them," the official said. However, the UK is arguing that one of the main issues that led to Brexit was migration. "So, we have to balance their migration concerns with our mobility concerns. The point is that we would like our companies to have mobility, so they can perform and the UK's concern is to see that migration does not go unchecked," the official said. The fast-growing EV market in India is catching the eyes of global players. The UK is also looking at phasing out ICE (internal combustion engine) vehicles by 2035, and the British auto market is export-driven. "So, getting a duty concession on ICE will not have any advantage for them and here, India has extended a production-linked incentive scheme for EVs, so we want our EV sector to be well protected till the PLI scheme is there. So, how to create the balance between between their and our interests," the official said. India's electric vehicles market is expected to grow to one crore units in annual sales by 2030 and create five crore direct and indirect jobs, according to the Economic Survey 2022-23. As per industry estimates, the total EV sales in India stood at around 10 lakh units in 2022. The government has rolled out production-linked incentives (PLI) schemes for advanced chemistry cell (ACC) battery storage with an outlay of Rs 18,100 crore and Rs 26,058 crore PLI scheme for auto, auto-components and drone industries. The negotiations for the FTA are underway, and both sides are discussing issues that are slightly complex in nature. Issues under negotiation include social security pact, automobiles, medical devices, movement of professionals; rules of origin; intellectual property rights (IPRs); duty concessions on electric vehicles, scotch whiskey, lamb meat, and chocolates; and liberalisation of norms in services sectors like banking and insurance. India and the UK launched the talks for a free-trade agreement (FTA) in January 2022, with an aim to conclude talks by Diwali (October 24, 2022), but the deadline was missed due to political developments in the UK.
launched the talks for a free-trade agreement (FTA) in January 2022, with an aim to conclude talks by Diwali (October 24, 2022), but the deadline was missed due to political developments in the UK. There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.
Global digital transformation spending to reach USD 1.8 trillion this year Global spending on the (DX) of business practices, products and organisations is forecast to reach USD1.8 trillion in 2022, an increase of 17.6% over 2021. The DX priorities that will see the largest investment in 2022 include back office support and infrastructure, smart manufacturing, and digital supply chain optimisation. Together, these three investment areas will represent more than USD620 billion in DX spending this year, according to the (IDC). DX spending will sustain this pace of growth over the 2022-2026 forecast period with a five-year compound annual growth rate (CAGR) of 16.6%, it added. "As organisations accelerate their pursuit of a digital-first strategy, they are channeling these into both internal operations and external direct engagement," said Craig Simpson, senior research manager, Customer Insights & Analysis at IDC. From an industry perspective, the discrete and process manufacturing industries will account for nearly 30% of worldwide DX spending this year, followed by the professional services and retail industries, said the IDC. The utilities and banking industries will also see DX spending of more than USD100 million this year. Meanwhile, the financial services sector will deliver the fastest DX spending growth over the 2022-2026 forecast period, with the securities and investment services, insurance, and banking industries all forecast to have five-year CAGRs of 19% or more, the report noted.
£315,000 Ferrari supercars growl a warning for EVs Part of the reason Ferrari NV’s wealthy customers are happy to fork out almost half a million pounds for a supercar is they expect these stunning vehicles to retain their value, or even appreciate, making ownership almost free. However, at least one of the prancing horse’s most iconic models — the plug-in hybrid — is depreciating rapidly, in some cases losing around 30% after just three years on the road, according to examples I found on UK listings site Auto Trader; the cheapest costs “just” £315,000 (USD 399,000). These value declines could bode ill for the company’s strategy of charging more for vehicles and its plan to launch a fully electric model late next year priced at stratospheric levels. Ferrari declined to comment, referring me to management remarks earlier this year that residual values remain pretty good while “normalizing” from elevated pandemic levels and showing different regional dynamics. Since going public in 2015, the Italian company has expanded both the volume and variety of cars it sells, while preserving exclusivity by raising prices, restricting who can order vehicles and resulting in long waiting lists. Around three-quarters of its cars are purchased by existing clients, while almost half the company’s vehicle sales are hybrids. Away from the Formula One race track, Ferrari has rarely put a foot wrong: Profit margins have increased, helping it obtain a stock market valuation similar to luxury fashion house Hermes International SCA. Ferrari’s first series production plug-in hybrid was unveiled in 2019 boasting almost 1,000 horsepower, 0-62 mph in just 2.5 seconds, four-wheel drive and about 15.5 miles of electric only range. Prices for the SF90 Stradale coupe started at an eyewatering £376,000 in the UK and £418,000 for the convertible Spider version; once personalized to their owner’s satisfaction, I estimate most will have splashed out at least £450,000-£500,000. Initially, resale values soared due to a lack of new vehicle availability during Covid. But having fetched as much a 33% premium to the sticker price in 2022, used SF90s have recently sold at a 20% discount at US auction, according to classic car insurer Hagerty Inc. whose pricing data includes the value of customized options but reflects only a small number of sales. “Buyers will be disappointed if they were expecting similar appreciation to the SF90's high-performance hybrid predecessor, the limited production LaFerrari,” John Wiley, director of valuation analytics at Hagerty told me, adding the latter increased 135% in the first three years. Judging by vehicles offered for on Auto Trader, value declines are even worse in the UK; a person with knowledge of these figures said the average SF90 depreciation of vehicles marketed by Ferrari authorized dealers is 24%. Independent British dealers told me it’s fantastic to drive but highlighted several potential limitations: the plug-in hybrid v8 turbo might not
marketed by Ferrari authorized dealers is 24%. Independent British dealers told me it’s fantastic to drive but highlighted several potential limitations: the plug-in hybrid v8 turbo might not appeal to purists wanting a v12 combustion engine and some early reviews weren’t great. Ferrari’s range now includes another hybrid, the 296 GTB, which offers impressive technology for a lower price (and used values for those have dropped too). Moreover, high levels of customization — a trend Ferrari has encouraged to boost revenues — can also impact resale values if the owner opts for an unusual feature or color. It’s likely that Brexit and higher interest rates are also weighing on the UK second-hand market. Ferrari hasn’t disclosed SF90 Stradale sales volumes, but these weren’t capped, unlike for special edition models. Dealer inventories appear elevated: I found around 150 used SF90s for sale in the US, a similar number in Germany and more than 50 in the UK (including Spiders). “Many of the production models have lost value but the SF90 has been particularly painful – they were simply priced too high to begin with,” says Tom Jaconelli, director at Romans International which is marketing one of these vehicles at around 30% below the new price. “I think they are good value now as used cars, but if you bought a new one a few years ago you will have lost a fortune.” There’s another factor that’s worth keeping an eye on: Last year Ferrari launched the limited edition SF90 XX with a fixed rear wing, even more horsepower and priced in excess of £670,000: to have a chance of buying one, customers had to already own a regular SF90, dealers say. Once they’ve received their XX model, some buyers may be tempted to sell the less expensive model though doing so is risky: Ferrari reportedly frowns on clients flipping cars, which might harm their chances of purchasing special edition models in future. In fairness, 20%-30% depreciation certainly isn’t disastrous— the average vehicle typically loses around 60% of its value after three years on the road. (Ferrari told investors last month that “one country has been suffering a little bit for one specific model” but didn’t identify either.) But the SF90 does underscore the challenge Ferrari might have maintaining resale values for its upcoming as luxury rivals Porsche AG and Mercedes-Benz Group AG have discovered with their own expensive electrified models, the Taycan and EQS. Ferrari appears to be trying to get ahead of this potential problem by offering customers an extended warranty for its next generation electric and hybrid supercars in return for an annual fee of around €7,000 (USD 7,500), Bloomberg News reported last week. This could help alleviate any customer concerns about battery longevity and high replacement costs. If residual value pain spreads to more models and markets, it won’t just be owners who suffer; the supercar maker’s lofty stock-market valuation could be vulnerable too.
Oil falls as demand concerns weigh against tight supply dipped at the start of Asian trade on Friday as worries about an economic downturn that could dampen demand for crude vied with concerns over new sanctions from the European Union against Russia, including an embargo on . Brent futures fell 37 cents, or 0.3%, to $110.53 a barrel by 0015 GMT, while (WTI) crude fell 33 cents, or 0.3%, to $107.93 a barrel. The Bank of England warned Thursday that Britain risks a double-whammy of a recession and inflation above 10% as it raised interest rates to their highest since 2009, hiking by quarter of a percentage point to 1%. Wall Street stocks tumbled, meanwhile, as investors shed risky investments, worried the Fed might hike rates more this year to tame inflation. On supply, the , Russia and allied producers, known as OPEC+, agreed as expected to another modest monthly increase in oil output. Ignoring calls from Western nations to hike output more, OPEC+ agreed to raise June production by 432,000 barrels per day, in line with its plan to unwind curbs made when the pandemic hammered demand. The EU sanctions proposal, which needs unanimous backingfrom the 27 countries in the bloc, involves phasing out importsof Russian refined products by the end of 2022 and a ban on allshipping and insurance services for transporting Russian oil. A U.S. Senate panel advanced a bill that could expose OPEC+to lawsuits for collusion on boosting oil prices. Congress hasfailed to pass versions of the legislation for more than twodecades, but lawmakers are worried about rising inflation and high gasoline prices.
CEAT announces new board appointments and committee recast 's board meeting on March 14, 2024, led to significant decisions regarding the company's leadership and structure. Two new independent directors, Milind Sarwate and Sukanya , were appointed, pending approval from shareholders. The board also reconstituted various committees, including the Audit Committee, Risk Management Committee, Nomination and Remuneration Committee, Stakeholders’ Relationship Committee, and Sustainability and CSR Committee. Sarwate, serves as an Independent Director on the boards of prominent companies such as Asian Paints, Mahindra Finance, FSN E-Commerce (Nykaa), and Hexaware, specializing primarily in audit committee roles. He has held directorship positions in listed companies since 2005, with prior engagements at Mindtree and International Paper. He is a qualified Chartered Accountant, Cost Accountant, and Company Secretary, with additional recognition as a CII-Fulbright Fellow from Carnegie Mellon University, USA, in 1996. Kripalu is a former CEO of Quadra Advisory, a WPP group company. She has played pivotal roles in launching successful brands like Maggi Ketchup, Cadbury Perk, and Kellogg Frosties. Currently, she holds directorial positions at UltraTech Cement Ltd, Colgate India Ltd, Aditya Birla Fashion & Retail Ltd, Aditya Birla Health Insurance Company Ltd, and Entertainment Network India Ltd (Radio Mirchi). The board also approved amendments to the Memorandum of Association to explore opportunities in the mobility space using Internet of Things devices and related services, aiming to provide added value to customers.
EV Insurance: Safeguarding your electric vehicle amidst India's green revolution India's automotive industry has experienced a remarkable transformation with the surge in (EV) adoption. The country has witnessed an impressive 154% increase in EV sales across all vehicle segments in 2022, with a total of 12,43,258 units sold. Electric two-wheelers, in particular, dominated the market, showcasing the growing popularity of greener transportation options. As the momentum for sustainable mobility gains traction, the insurance sector is also witnessing a surge in demand for policies tailored to green / EV vehicles' unique needs. In this context, let's explore essential considerations when buying insurance for your EV vehicle and why it is crucial. for EV Owners plays a pivotal role in shielding owners from unforeseen events such as accidents, theft, or damage. Repair costs for EVs can be notably higher due to advanced technology. A comprehensive must prioritise coverage for electrical and mechanical malfunctions and other EV-specific issues. This ensures financial security for owners dealing with the intricacies of these specialised components without facing exorbitant expenses. Coverage for Specialised Components EVs are equipped with unique and expensive components. Tailored insurance policies for EVs covering these specialised components are essential for mitigating financial strain in the event of malfunctions or damage. The targeted coverage ensures that owners are protected from excessive expenses related to the repair or replacement of these critical components maintaining the core focus on Insurance centric solutions. Insurance Considerations for EV Owners Understanding the nuances of insurance is crucial for electric vehicle (EV) owners. As the adoption of EVs accelerates, tailored insurance policies become essential to address the unique needs of these vehicles. Government initiatives, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles ( ) scheme, underscore the importance of comprehensive coverage. EV owners should prioritise policies that cover specialised components, electrical and mechanical malfunctions, and other EV-specific risks. Choosing insurance that adapts to emerging technologies and evolving features ensures that coverage remains relevant in the dynamic landscape of green automotive advancements. Exploring comprehensive EV insurance options, backed by thorough research and insights from fellow EV owners, becomes a vital aspect of responsible and secure EV ownership. Insurance Aspects for Consideration When buying EV insurance, it's essential to assess total ownership costs by comparing policies from different providers. Thorough research, customer reviews, and recommendations from EV owners are crucial. Opt for comprehensive coverage with tailored add-ons to address unique , like electric surges and fires during charging, and consider broader environmental implications. Anticipate industry innovations
for comprehensive coverage with tailored add-ons to address unique , like electric surges and fires during charging, and consider broader environmental implications. Anticipate industry innovations and adaptability; choose flexible policies that accommodate emerging technologies and evolving EV features, ensuring your coverage stays relevant in the dynamic green automotive landscape. Navigating India's Shift to with the government’s initiatives to promote EV adoption, India is actively working on establishing a comprehensive public charging infrastructure. As EV owners benefit from the growing convenience and availability of charging stations nationwide, this collaborative effort not only accelerates EV adoption but also emphasises the cooperative spirit driving sustainable transportation forward. In the context of a burgeoning electric vehicle (EV) market and a global push towards sustainable transportation, securing precise and comprehensive insurance for EVs is of paramount importance. EV insurance is more than just financial protection; it represents a commitment to promoting responsible ownership, fostering environmental sustainability, and shaping the future of mobility. Amidst the momentum propelling the adoption of EVs, the provision of tailored insurance solutions assumes a critical role, empowering EV customers to navigate the evolving landscape of sustainable transportation with confidence and responsibility. Insurance stands as an essential facet of responsible vehicle ownership, and EVs are no exception. As the momentum for green transportation gains traction, securing the right insurance for your EV becomes a crucial step towards driving with confidence and responsibility on the path to a greener tomorrow. Embracing your EV insurance not only provides financial security but also contributes to a sustainable and greener future for the automotive industry. Before purchasing insurance and securing your EV, careful consideration of all relevant factors is imperative. Prioritising the right insurance ensures peace of mind, safeguards investments in cutting-edge technology, and solidifies trust in India's expanding EV ecosystem. This article is authored by , Senior Executive VP & Head - Auto & Actuarial Analytics, . All views expressed are personal.
Mahindra Insurance Brokers to embark on digitisation drive for growth Ltd. ( ), the arm & subsidiary of Mahindra Finance is embarking on a major drive within three modules, , Health & commercial lines to enhance growth. This even as the pandemic seems to have fast-tracked the health insurance industry growth over the last couple of years and is expected to overtake motor insurance by 2025. Talking about the growing importance of health insurance, Vedanarayanan Seshadri, MD of MIBL said, “Our view, backed by enough data which is coming in from the industry, indicates that health will overtake motor as the largest single line in the next 3-4 years making it a dominant player for the industry." "There is a 30% to 40% growth in this sector, but the fundamental change is the extent of protection which people are seeking today versus what they were seeking before, backed by more information on health insurance”, said Seshadri. On its part, MIBL has recently announced a tie-up with health care arm, Tata 1 Mg, to offer customised health solutions for corporate employees and their families and would look at such tie-ups in the future as well. MIBL currently has a composite broking license enabling it to distribute products across the entire spectrum of insurance including motor, life, health, including reinsurance, which is another separate part of the business as well. The subsidiary generates approximately Rs 2800 to Rs 3000 crores of premium a year. Currently, AXA through its arm holds a 20% stake in MIBL. “Our business is basically split into three blocks, one which comes in from the group ecosystem, which extends from the Auto & tractor business to the financial services business. It also includes all the other companies which bring in a large consumer base. The second part is what we call the advisory business, insuring risks for small, medium and large corporates on the property, marine, liability, engineering and other commercial lines, while the third component is our Omnichannel build, in which digital plays the major role”, mentioned Seshadri. “The digital omnichannel platform business is 6% to 7% of our overall monthly revenues and premiums and rapidly growing and will become about 25% of our business in a couple of years and stabilise at 30% - 35% over the next 4-5 year road map which we have laid out”, he added. Seshadri mentioned that they have brought in digital to build distribution to enhance the customer experience and scale up non-group ecosystem business in the long run. “We are currently at Rs 350 crore of revenues. The way we have created the infrastructure over the last 24 months, we're readying to take this up to 1000 crores of revenues in the next four years," he said. MIBL premiums have improved from Rs 2,100 crore to Rs 2800 crores over the last year with revenues up by 30% and profitability up by 55% compared to the last year. Seshadri attributes these numbers to MIBL’s reach of close to 2 lac villages in terms of the number
over the last year with revenues up by 30% and profitability up by 55% compared to the last year. Seshadri attributes these numbers to MIBL’s reach of close to 2 lac villages in terms of the number of customers they have reached out to. “We've built in a point of sales distribution which is close to 10,000 strong and doubling every year. The real play is in the missing middle segment of 350 million households, who are not covered by adequate insurance. Going ahead for the reinsurance business, we intend to look at the markets in the Middle East and North Africa”, he said. “We're looking for two sets of acquisitions to grow our book, firstly for players who are in the B2C space and the second area is regional brokers with top quality clientele in the commercial lines business, in geographies in which they operate, similar to what some of the international players have built”, Seshadri said. Seshadri was quick to sound a word of caution on the life side of the business where the term rates have gone up. “It is a consistent concern for both corporates, small and medium and large in terms of cost of insurance and a more calibrated approach to rate increases on the term is what is called for as corporates are worried about the cost of insurance on the term side”, he said. Also Read:
India's small exporters reel as Red Sea crisis helps rivals nab business Atul Jhunjhunwala, an exporter in the Indian eastern city of Kolkata, is tearing his hair out, having just lost another order due to the that has jacked up his shipping costs and times. "Last week, I lost a big order to a Polish competitor who does not need to pay increased freight rates," said Jhunjhunwala, head of Binayak Hi Tech Engineering which ships about 700 containers of machinery tools, industrial castings, and railway shed materials per year. Turkish exporters were also benefiting at the expense of Indian companies, he said, adding that he has also sent some orders on to buyers at a loss after absorbing increased costs. "No one can afford to lose buyers with whom we have worked for over decades," he said. Missile and drone attacks in the Red Sea by Yemen's Houthi militants, who say they are acting in solidarity with Palestinians in the Gaza war, have forced many ocean freight firms to re-route vessels away from the Suez Canal to around the Cape of Good Hope on the southern tip of Africa. The crisis has begun to upend global supply chains, with Chinese exporters also stumbling in pain. Many suppliers sign export deals on a cost, insurance and freight basis, making them responsible for any increases in freight and insurance costs. In India, small exporters - who account for 40% of the country's annual merchandise exports worth some USD 450 billion - have warned that job losses have started and could soar if the attacks, which began late last year, become prolonged. Even before the crisis, India's small exporters were operating at very thin profit margins - typically between 3% and 7%, according to industry estimates. "Job losses are already visible in India's textile hub of Tirupur due to the Red Sea issue in southern India where small exporters are working at one-third of their capacity," said K.E. Raghunathan, a Chennai-based manufacturer and national chairman of the Association of Indian Entrepreneurs. He noted that longer shipping times had led to less freight capacity and that the scarcity of containers was becoming a big problem for small exporters as big export houses have booked containers in bulk. The government should help small exporters otherwise many of them would "perish", he added. Export organisations have formally sought relief from the government which has formed a trade ministry panel to monitor the situation and consider their requests for help. "ONE OF THE WORST TIMES" More than 80% of India's merchandise trade with Europe and the United States would normally take place via the Red Sea. India exports roughly USD 8 billion of merchandise to Europe a month and more than USD 6 billion a month to the United States. Textiles, engineering goods - which comprise steel, machinery and industrial parts - as well as gems and jewellery are India's biggest sectors exporting to those regions. Re-routing via the Cape of Good Hope has meant ships sailing from
steel, machinery and industrial parts - as well as gems and jewellery are India's biggest sectors exporting to those regions. Re-routing via the Cape of Good Hope has meant ships sailing from India will often need an extra 15-20 days before reaching destinations in Europe, greatly increasing costs. For example, shipping a container to Britain now costs around USD 4,000 compared to USD 600 before the Red Sea crisis, Ashok Kajaria, chairman at told an analysts' call last month. The Red Sea crisis comes only a few years after the COVID-19 pandemic when freight rates soared as supply chains snarled and demand for goods jumped. India's small exporters have also since been hit by weakening demand for their goods as Western economies grapple with high inflation levels. "This is one of the worst times for many garment exporters," said Nitin Seth, chief operating officer at Pratibha Syntex, an Indore-based garment manufacturer. "If this situation persists, at least one-fifth of small exporters could resort to job cuts," he said. Other exporters in India's textile industry - which directly employs 45 million people and indirectly another 15 million - said they were worried that they could soon lose business to Turkey's clothing industry. "Turkey, a major competitor for India's textiles exports in Europe, poses a big risk to small exporters due to its locational advantage," said Ajay Sahai, director general of the Federation of Indian Export Organisations. In one silver lining, many export contracts for India will come up for renewal in March or April - the start of the business year - and many smaller exporters said they are hopeful that customers will agree to bear at least some of the burden of increased freight costs. "We have a long-term relationship with our customers. We expect they would agree to absorb a part of higher freight rates when contracts come up for review," said Jhunjhunwala.
SBI changes gears, links car dealer commissions to their performance In a first for the bank, , the country's largest lender, is set to link the it pays to , for sourcing loans, to sales as opposed to the current practice of paying them a fixed percentage as a commission, according to a bank's internal circular, assessed by ET. The move is aimed at reducing costs and improving of the product, said people privy to the development. The revised payout structure will be applicable for all sourcing with effect from June 1. In an internal circular dated May 28 issued by chief general manager (CGM) Sukhvinder Kaur addressed to the CGMs of local head offices of the bank, the new structure was notified. " is considerable part of our expenses in car and heavily impacts the profitability of car loan product. In view of the same, competent authority has approved a dealer pay-out structure for sourcing, based on the volume of business sourced by the respective dealerships." Under the existing structure dealers would earn a flat 2% (including GST) commission for loan disbursals ranging from INR 50 lakh to INR 15 crore. Under the new , they must meet certain disbursal milestones to earn commission. It starts from a minimum commission of 0.5% (including GST) for disbursals equal to and above INR 50 lakh to less than INR 1 crore and goes up to 1.3% (including GST) for disbursal above INR 15 crore. The replacement of the flat commission structure, with a performance linked tiered one, could effectively reduce the commission earned by the dealers by half, said an auto dealer. The move by the public sector lender, which accounts for a fifth of the auto loan market - the second largest after - may also prompt private sector lenders to rationalise commissions. Auto dealers earn from selling cars, spares, after-sales service and finance and insurance to customers. "It also weakens our bargaining power with other banks as , by far, was offering the best rate," said the dealer cited earlier. "Auto dealers depend on multiple revenue streams for profitability and commission from vehicle finance is an integral one. A reduction in payout by the banks will hit dealers' profitability...," said Manish Raj Singhania, president, . The change in SBI's payout structure may reflect an increase in non-performing assets, he said. "Instead of reducing payout to dealers, the bank should focus on improving asset quality. Their auto loan rate is on the higher side when compared to peers and they have enough headroom to continue the current structure," said Singhania. An email sent to State Bank of India seeking comment remained unanswered till press time. To be sure, some other public sector lenders have already decided to follow SBI. UBI Services, a wholly owned subsidiary of , has also pared its structure. "With recent commission realignment by the major players in the market, it is time for us to resonate with the market sentiment and offer better rates to partners," said and internal
its structure. "With recent commission realignment by the major players in the market, it is time for us to resonate with the market sentiment and offer better rates to partners," said and internal circular issued by Sanjay Bajoria, MD & CEO, UBI Services, on Friday.
Tesla can benefit by manufacturing EVs in India: Gadkari Union road transport and highways minister on Monday said that if the US-based EV maker Tesla manufactures its in India then the company will also get benefits. Addressing an event here, Gadkari said days are not very far when the prices of all electric vehicles will be less than the cost of petrol vehicles in the country. "Agar Tesla India me electric car manufacture karega toh unka bhi fayda hoga (If Tesla manufactures its electric vehicles in India then they will also get benefits)," he said. Earlier on April 26, Gadkari had said, if Tesla is ready to manufacture its EVs in India then there is 'no problem', but the company must not import cars from China. "If (Tesla CEO) is ready to manufacture in India then there is no problem ... Come to India, start manufacturing, India is a large market, they can export from India," he had said at an interactive session at the Raisina Dialogue. Last year, the heavy industries ministry had also asked Tesla to first start manufacturing its iconic electric vehicles in India before any tax concessions can be considered. At present, cars imported as Completely Built Units (CBUs) attract customs duty ranging from 60-100 per cent, depending on engine size and Cost, Insurance and Freight (CIF) value less or above USD 40,000. Last year, in a letter to the road ministry, the US firm had stated that the effective import tariff of 110 per cent on vehicles with customs value above USD 40,000 is "prohibitive" to zero-emission vehicles. It had requested the government to standardise the tariff on electric cars to 40 per cent, irrespective of the customs value, and withdraw the social welfare surcharge of 10 per cent on electric cars. It had stated that these changes would boost the development of the Indian EV ecosystem and the company will make significant direct in sales, service, and charging infrastructure; and significantly increase procurement from India for its global operations. The company had argued that these proposals would not have any negative impact on the Indian automotive market as no Indian original equipment manufacturer currently produces a car (EV or Internal Combustion Engine) with ex-factory price above USD 40,000 (around Rs 30.6 lakh), and only 1-2 per cent of cars sold in India (EV or ICE) have ex-factory/customs value above USD 40,000. Also Read:
Indian refiners scout for oil deals ahead of EU ban on Russian crude NEW DELHI -Indian state refiners plan to lock-in more of their crude supplies in term deals, worried that tighter Western sanctions on Russia, including from the EU, could curb future supplies in already tight markets, sources at state refiners said. , the country's top refiner, and Corp are seeking term deals with countries, including the United States, industry sources said. "We are preparing for a back up plan. When the world is uncertain because of Russia-Ukraine conflict we need to have all options open," said an official at one state refiner. The move towards term deals marks a shift in refiners' purchasing strategy, which had been geared towards maximising spot purchases in past years when supplies were abundant. "Due to the Russian-Ukraine conflict, we expect a possibility of tight oil markets and a change in flows with most Middle Eastern crude going to meet need of European markets so we need to diversify our oil sources," said a source at another state refiner. India's dependence on spot purchases allowed to snap up discounted Russian oil shunned by some Western buyers over Moscow's Ukraine invasion in February. India, which rarely used to buy Russian oil, has emerged as Moscow's second-largest oil customer after China. But a European Union ban on Russian crude imports from Dec. 5 will drive European refiners to buy more Middle East oil, putting them in competition with Asian buyers. To secure supplies, IOC last month signed its first six-month oil import deals with Brazil's Petrobras for 12 million barrels and Colombia's Ecopetrol for 6 million barrels. BPCL has signed an initial deal with Petrobras as it seeks to diversify oil sources. Supplies for IOC under the two deals will begin from October, said several of the sources who are familiar with the matter. IOC is also looking for more short-term supplies, including a contract for U.S. oil, they added. IOC already has an annual deal that provides an option to buy 18 million barrels of U.S. oil. Of these, IOC has already bought about 12 million barrels so far this year, they said. Sources said BPCL, which has already ramped up U.S. oil purchases, is looking for more term contracts. IOC and BPCL did not respond to Reuters' requests for comment. Ecopetrol could not be reached for comments outside its business hours. Western countries have imposed a raft of sanctions against Russia, and the Group of Seven nations, led by the United States, plan to impose a price cap on Russian oil exports via insurers to cut its revenue. It is unclear if the plan will work and whether Russia will cut supplies, the sources said. "There are many uncertain elements ... so we think we should at least have engagement with more suppliers," the second source said. India has called for an end to violence in Ukraine but refrained from outright condemnation of Russia, with which it has long-standing political and security ties. Prashant Vasisht,
source said. India has called for an end to violence in Ukraine but refrained from outright condemnation of Russia, with which it has long-standing political and security ties. Prashant Vasisht, vice president at rating agency ICRA Ltd, said: "To diversify and safeguard yourself from potential cuts in future such as diversion of Middle Eastern oil to Europe, signing a contract is the best option as you get preferential pricing and stable supplies."
More than 10 million vehicles running on Indian roads are vulnerable to cyber attacks: SecureThings Q: Please walk us through the threat landscape of the automotive ecosystem. What role can OEMs play to defend their products? What are the steps that can be taken to make the vehicles safe? A: A vehicle has hundreds of major components that can be targeted by cybercriminals. Almost all the vehicles will be connected within a short period. Connectivity of the vehicle to the world outside is the most significant. Connectivity to the vehicle through Telematics Control Unit or Infotainment Systems are the biggest threat. Last year, most of the cyber-attacks on the automotives were remote. Telematics and Infotainment contributed more than 40%. As we are witnessing digital transformation and electrification, two major attack vectors are emerging as API & . Swapping batteries is also a risk area because there will be some third party who will be providing the battery management system to the vehicles. Public charging infrastructure is another as it will be uncontrolled in the public domain. There are a lot of possibilities that can be used to attack vehicles. Last year 4% of the top attacks were from charging stations that are like another big attack surface. Remote Keyless Entry is another big attack area. More than 15% of cases reported were using RKE. Vehicle theft through Remote Keyless Entry is putting law enforcement officers and insurance companies into deep thinking. Supply chain is a big and unknown risk. More than 50% of people avoid getting a security patch on time and maybe more than 30% don't go at all. This was a major trigger point where OEMs started providing their vehicle auto updates. It is important that OEMs' pipeline is secured because if the servers are not secure, the vehicle connectivity is not secure and hackers can push their vulnerable firmware beyond boundaries within the vehicle, it can have a catastrophic impact. Q: Okay, are these going to be relevant in India. If yes, what is the percentage for the charging infrastructure, the connected vehicle. What kind of cases of threats are there in India particularly? A: Digital Transformation is happening in India at a very fast pace. Regulations require all commercial vehicles to be connected. We will be seeing 100% connectivity in passenger cars and bikes very soon. Manufacturers have already started to focus on Future & Smart Mobility. As per our own research and findings based on security gap analysis, more than 10 million vehicles running on Indian roads are vulnerable to cyber-attacks. Almost every bike is vulnerable, whether having connectivity or not. As we will be seeing more charging infrastructure in the public domain, this is a big risk of malware attack through charging infra, ability to charge at scale and fast charging or ransomware attacks. These are big risk factors for the success of electric vehicle push. Vehicles are getting smarter and more complex and new threat
ability to charge at scale and fast charging or ransomware attacks. These are big risk factors for the success of electric vehicle push. Vehicles are getting smarter and more complex and new threat vectors are emerging. Recently, at an event some researchers hacked a top USA-based electric vehicle in two minutes using some of the vulnerability within the Bluetooth chip. Since a lot of the threat is still unknown, the manufacturers and regulatory bodies have started putting a lot of effort into conducting this check within the vehicle. Q: How are automotive CXOs preparing for these attacks? Now it is not only about cars but also two-wheelers. There is software that uses VMSS and we are also doing over the air updates and things can change for a consumer. So, do you think as a community of automotive CXOs are prepared or what kind of efforts are being done from the OEM side? A: OEMs are getting conscious about this. While in the beginning learning was required and then they took time to understand and then accepted that the vehicles are vulnerable. has become a top priority within the organization. If you look at the National Cybersecurity policy, automotive transportation is one of the top sets of critical infrastructure. Another one is the regulatory body. While CISOs in OEMs were focusing more on IT security, a shift is happening. They have started looking into and defining vehicle security strategy. CISOs have started looking into cybersecurity as a multi-layer security and not just a single connectivity layer. There's a lot of focus on the security operations centre, monitoring the vehicle, getting insights and the planning that can help mitigate in time as well as prepare better. Q: Could you tell us more about your business centre status? How have you started in terms of spending and do you see the growth of secure things? A: The uniqueness of our solution is that we learn the pain points from the manufacturers. Cybersecurity is important, but what makes it critical is that many manufacturers and component suppliers have their proprietary protocols, proprietary solutions, that they don't want to disclose. So, from the very beginning, it was a very conscious decision to use machine learning and behavioural learning as a base for our solutions in understanding a vehicle. This enables the manufacturers to not to disclose their IP but still have strong solutions. Our AI/ML-based approach also helps us detecting and mitigating zero-day attacks, I.e. the attacks that are not yet known or available in the public domain. We work with the manufacturers by sharing the security gaps in their vehicles and solutions that can protect. We are very proud to partner with some of the top tier-one suppliers, where we are working together to provide secure solutions whether it is a secure telematics control unit for the vehicle manufacturers or secure instrument cluster solutions. We are also working on secure gateways to protect in-vehicle communication and
whether it is a secure telematics control unit for the vehicle manufacturers or secure instrument cluster solutions. We are also working on secure gateways to protect in-vehicle communication and the threats that can come from the sensors. Through our Cloud-based Threat Intelligence solutions, we are going to start working with the customers, both OEMs and tier-one suppliers, to monitor the vehicles in real time based on the components and how we can provide more predictability and insight that can help manufacturers to provide a complete, secure ecosystem. Q: Is Secure Things bootstrapped, funded or looking for funding. What is the current status? A: We started in a bootstrap mode in 2018 with a significant investment from the promoters. We raised seed funding in 2019 to build solutions for multiple layers within the vehicle, at the edge. Moving forward we raised Pre-Series A in early 2022, to grow the business among customers increasing the customer base and going global. With this fund, we also built a Cloud-based Threat Intelligence platform. This makes us the world’s deepest Automotive Cybersecurity company. We are happy to have active customers across the globe. We are going to raise a Series A round this year to expand our business further globally.
Audi India opens Audi Approved: plus and service facility in Ranchi : , the German luxury car manufacturer, on Tuesday inaugurated a new pre-owned car facility, in Ranchi, Jharkhand. In addition, a new service facility has also been added. Located at 11A, Purulia Road, Kantatoli, Ranchi, Jharkhand- 834001, this new facility spans across 12,500 sq.ft with an 8 car display area and 7 workshop bays. Balbir Singh Dhillon, Head of Audi India, said, “Imminent aspirations for luxury are on the horizon, as the demand for pre-owned surges in Ranchi. We are very happy to inaugurate the new, state-of-the-art Audi Approved: plus facility in Ranchi, marking the establishment of Audi’s 21st pre-owned car facility in India. In addition, we have also added a service facility that will help our customers in a big way. We are confident that this new facility will help serve the increasing demand for luxury cars in the region.” Every pre-owned vehicle displayed and sold at Audi Approved: plus showrooms undergo mechanical, bodywork, interior and electrical inspections at 300+ multi-point checks, thorough multiple-level quality checks, and a full on-road test to ensure customers’ peace of mind while buying the car. Under the Audi Approved: plus programme, Audi India offers and complete vehicle history before purchase. Additionally, customers can also avail easy financing and insurance benefits through the programme, the company said. Devjyoti Patnaik, Dealer Principal, Audi Ranchi, said, “We are happy to extend our partnership with Audi beyond the Bhubaneshwar market to now in Ranchi. As a brand, Audi has always enjoyed a special place for aspirants of luxury. The inauguration of the new Audi Approved: plus showroom in Ranchi marks an important occasion, making pre-owned luxury cars accessible to a wide variety of people. We are also happy to add a service facility that will help us get closer to our customers. The city of Ranchi has witnessed an increasing demand for pre-owned luxury cars, and the dealership highly anticipates a rush of new customers awaiting a chance to become a part of the Audi experience. We look forward to serving our customers and providing them with the best luxury experience.” Also Read:
Racers, mechanics, tinkerers converting classic cars to EVs When Kevin Erickson fires up his 1972 Plymouth Satellite, a faint hum replaces what is normally the sound of , gas coursing through the carburetor and the low thrum of the exhaust. Even though it's nearly silent, the classic isn't broken. It's electric. Erickson is among a small but expanding group of tinkerers, racers, engineers and entrepreneurs across the country who are converting vintage cars and trucks into greener, and often much faster, . Despite derision from some purists about the converted cars resembling golf carts or remote-controlled cars, electric powertrain conversions are becoming more mainstream as and the world turns toward cleaner energy to combat climate change. "RC cars are fast, so that's kind of a compliment really," said Erickson, whose renamed "Electrollite" accelerates to 0-60 mph (0-97 kph) in three seconds and tops out at about 155 mph (249 kph). It also invites curious stares at public charging stations, which are becoming increasingly common across the country. At the end of 2019, Erickson, a cargo pilot who lives in suburban Denver, bought the car for $6,500. He then embarked on a year-and-a-half-long project to convert the car into a 636-horsepower electric vehicle (475 kW), using battery packs, a motor and the entire rear subframe from a crashed Tesla Model S. "This was my way of taking the car that I like - my favorite body - and then taking the modern technology and performance, and mixing them together," said Erickson, who has put about $60,000 into the project. Jonathan Klinger, vice president of car culture for Hagerty Insurance, which specializes in collector vehicles, said converting classic cars into EVs is "definitely a trend," although research on the practice is limited. In May, the Michigan-based company conducted a web-based survey of about 25,000 self-identified automobile enthusiasts in the United States, Canada and the United Kingdom. About 1% had either partially or fully converted their classic to run on some sort of electrified drivetrain. The respondents' top three reasons for converting their vehicles were for faster acceleration and improved performance, for a fun and challenging project, and because of environmental and emissions concerns. About 25% of respondents said they approve of being partially or fully converted to EVs. "Electric vehicles deliver some pretty astonishing performance just by the nature of the mechanics of how they work," Klinger said. So it's not surprising to him that a small percentage of people converting classic cars to EVs are interested in improving performance. He compared the current trend to the hot-rod movement of the 1950s. But Klinger, who owns several vintage vehicles, said he doesn't think electric motors will replace all - especially when considering historically significant vehicles. "There's something satisfying about having a vintage car that has a carburetor," he said, because it's the same
will replace all - especially when considering historically significant vehicles. "There's something satisfying about having a vintage car that has a carburetor," he said, because it's the same as when the car was new. Some enthusiasts want to preserve the sound and rumble of older cars' original engines. Other barriers to converting cars include the knowledge it takes to delve into such a complicated project, as well as safety concerns about tinkering with high-voltage components, the availability of parts, and the time it takes to realize a positive, environmental impact. Because classic vehicles are driven for fewer than 1,500 miles (2,414 kilometers) a year on average, it takes longer to offset the initial carbon footprint of manufacturing the batteries, Klinger said. And then there's the price. Sean Moudry, who co-owns Inspire EV, a small conversion business in suburban Denver, recently modified a 1965 Ford Mustang that was destined for the landfill. The year-and-a-half-long project cost more than $100,000 and revealed several other obstacles that underscore why conversions are not "plug-and-play" endeavors. Trying to pack enough power into the pony car to "smoke the tires off of it" at a drag strip, Moudry and his partners replaced the underpowered six-cylinder gas engine with a motor from a crashed Tesla Model S. They also installed 16 Tesla battery packs weighing a total of about 800 pounds (363 kilograms). Most classic vehicles, including the Mustang, weren't designed to handle that much weight - or the increased performance that comes with a powerful electric motor. So the team had to beef up the car's suspension, steering, driveshaft and brakes. The result is a Frankenstein-like vehicle that includes a rear axle from a Ford F-150 pickup and rotors from a Dodge Durango SUV, as well as disc brakes and sturdier coil-over shocks in the front and rear. Although Ford and have or are planning to produce standalone electric "crate" motors that are marketed to classic vehicle owners, Moudry says it's still not realistic for a casual car tinkerer to have the resources to take on such a complicated project. Because of this, he thinks it will take a while for EV conversions to become mainstream. "I think it's going to be 20 years," he said. "It's going to be a 20-year run before you go to a car show and 50 to 60% of the cars are running some variant of an electric motor in it." But that reality could be coming sooner than expected, according to Mike Spagnola, president and CEO of the Specialty Equipment Market Association, a trade group that focuses on aftermarket vehicle parts. He said that during SEMA's annual show in Las Vegas this fall, some 21,000 square feet (1,951 square meters) of convention space was dedicated to electric vehicles and their parts. That was up from only 2,500 square feet (232 square meters) at the 2021 show. Companies are developing universal parts, as well as lighter, smaller and more powerful battery packs. They're also
That was up from only 2,500 square feet (232 square meters) at the 2021 show. Companies are developing universal parts, as well as lighter, smaller and more powerful battery packs. They're also creating wiring components that are easier to install and myriad other innovations. Some are even building vehicle frames with the electric motor, batteries and components already installed. Buyers can just install the body of a classic vehicle on top of the platform. "The early adopters of this would take a crashed Tesla and pull the motor and harnesses and batteries and all that out of the vehicle and find a way to shoehorn it into whatever vehicle they wanted to build," Spagnola said. "But today there are many manufacturers now starting to make components. ... We're really excited about it." Also Read:
GM fender design victory in limbo after US appeals court grants rare review Auto parts maker on Friday persuaded a U.S. appeals court to reconsider a decision to uphold a design patent for a car fender, imperiling an earlier win for GM in a case that has been closely watched by the auto and insurance industries. In a rare step, the U.S. Court of Appeals for the said all 12 of its sitting judges would hear LKQ's challenge to a three-judge panel's ruling for GM. The full court said it would address the standard for when a design is unpatentable based on preexisting designs, and whether a 2007 U.S. Supreme Court ruling related to non-design patents applies to the design-patent standard. Auto-parts companies told the appeals court that carmakers misuse design patents to stifle competition for aftermarket parts, and that affirming the decision on GM's fender patent would make replacement parts more expensive and harder to obtain. A trade group for home, auto and business insurers also told the court that design patents like GM's "unfairly exclude competitive aftermarket repair parts from the marketplace" and "substantially increase repair costs." GM said in a brief that its fender design was innovative and that the court should let the decision stand. An LKQ spokesperson said on Friday that the company was pleased that the Federal Circuit agreed to rehear its case. Representatives for GM did not immediately respond to requests for comment. Design patents protect novel visual characteristics of manufactured objects. LKQ asked a U.S. Patent Office tribunal last year to cancel a GM design patent covering a front vehicle fender after their licensing agreement expired and GM threatened to sue LKQ partners for infringement. LKQ told the that the patent was invalid based on two preexisting publications -- an earlier design patent and a brochure that disclosed a similar design on a 2010 Tucson. The board ruled for GM on grounds including that the earlier patent was not independently similar enough to the GM design to be a "primary reference" that could justify declaring the GM patent obvious. The Federal Circuit affirmed the decision in January. The full Federal Circuit agreed on Friday to rehear LKQ's argument that the test for obviousness in design patents was overruled by a 2007 Supreme Court ruling that rejected "rigid and mandatory formulas" for obviousness in patents covering inventions. The case is LKQ Corp v. GM Global Technology Operations LLC, U.S. Court of Appeals for the Federal Circuit, No. 21-2348.
SBI changes gears, links car dealer commissions to their performance In a first for the bank, , the country's largest lender, is set to link the it pays to , for sourcing loans, to sales as opposed to the current practice of paying them a fixed percentage as a commission, according to a bank's internal circular, assessed by ET. The move is aimed at reducing costs and improving of the product, said people privy to the development. The revised payout structure will be applicable for all sourcing with effect from June 1. In an internal circular dated May 28 issued by chief general manager (CGM) Sukhvinder Kaur addressed to the CGMs of local head offices of the bank, the new structure was notified. " is considerable part of our expenses in car and heavily impacts the profitability of car loan product. In view of the same, competent authority has approved a dealer pay-out structure for sourcing, based on the volume of business sourced by the respective dealerships." Under the existing structure dealers would earn a flat 2% (including GST) commission for loan disbursals ranging from ₹50 lakh to ₹15 crore. Under the new , they must meet certain disbursal milestones to earn commission. It starts from a minimum commission of 0.5% (including GST) for disbursals equal to and above ₹50 lakh to less than ₹1 crore and goes up to 1.3% (including GST) for disbursal above ₹15 crore. The replacement of the flat commission structure, with a performance linked tiered one, could effectively reduce the commission earned by the dealers by half, said an auto dealer. The move by the public sector lender, which accounts for a fifth of the auto loan market - the second largest after - may also prompt private sector lenders to rationalise commissions. Auto dealers earn from selling cars, spares, after-sales service and finance and insurance to customers. "It also weakens our bargaining power with other banks as , by far, was offering the best rate," said the dealer cited earlier. "Auto dealers depend on multiple revenue streams for profitability and commission from vehicle finance is an integral one. A reduction in payout by the banks will hit dealers' profitability...," said Manish Raj Singhania, president, . The change in SBI's payout structure may reflect an increase in non-performing assets, he said. "Instead of reducing payout to dealers, the bank should focus on improving asset quality. Their auto loan rate is on the higher side when compared to peers and they have enough headroom to continue the current structure," said Singhania. An email sent to State Bank of India seeking comment remained unanswered till press time. To be sure, some other public sector lenders have already decided to follow SBI. UBI Services, a wholly owned subsidiary of , has also pared its structure. "With recent commission realignment by the major players in the market, it is time for us to resonate with the market sentiment and offer better rates to partners," said and internal circular issued
"With recent commission realignment by the major players in the market, it is time for us to resonate with the market sentiment and offer better rates to partners," said and internal circular issued by Sanjay Bajoria, MD & CEO, UBI Services, on Friday.
Mazda North America renews pact for Toyota Motor Credit and Mazda Financial Services tie-up New Delhi: (MNAO) has renewed its agreement for Toyota Motor Credit Corporation (TMCC) to provide private label financing under the (MFS) brand name. Launched in April 2020, MFS entered the market with a commitment to providing the best possible financing solutions coupled with exceptional service to dealers and customers. Created as a private label business by TMCC under an agreement to provide services to MNAO, Mazda Financial Services quickly established itself as a valued partner to Mazda dealers by offering a range of products to meet their wholesale and financing needs. Later in 2020, MFS continued to grow as Toyota Motor Insurance Services launched its comprehensive suite of vehicle and payment protection products under the name (MPP). In the ensuing years, Mazda Financial Services enjoyed significant growth, supporting Mazda dealers and customers, and surpassing 1.6 million total finance and voluntary protection contracts booked. MFS leaders attribute the business’s success to working closely with MNAO to provide solutions that enhance the customer and dealer experience. The company’s retail financing, leasing, and a comprehensive suite of vehicle and payment protection products are tailored specifically to meet the needs of Mazda customers and dealers while building loyalty to the brand. Now, with the contract renewal, the MFS team is redoubling their efforts to ensure Mazda’s success in the U.S. market. “We’re grateful to Mazda North American Operations for giving us this opportunity to continue to support their financing and vehicle protection product needs,” said , president of Mazda Financial Services. “We are proud to represent the Mazda brand and we share MNAO’s philosophy of placing paramount importance on taking care of customers and dealers. We know that we only succeed when Mazda dealers and customers are pleased with our products and service, and we fully intend to continue innovating to serve them better every day.” “I appreciate the positive impact that the MFS team makes every day with our dealers, our field teams and with our customers,” said Mazda North American Operations President and CEO . “We’ve been able to grow thanks to MFS’s stability during uncertain times and I look forward to continued growth and the many benefits that Mazda Financial Services provides to the Mazda brand and especially to our valued customers.” “MFS is an important part of our business, and we value MNAO’s trust in us to represent the Mazda brand, as well as deliver a top-tier experience to their customers and dealers. This is a responsibility we take very seriously,” said , TMCC president and CEO. “We recognize that Mazda customers and dealers are unique in the market, and our MFS team is dedicated to providing the customized solutions which not only meet their needs but exceed their expectations.” MFS’s positive impact on sales and customer loyalty has
the market, and our MFS team is dedicated to providing the customized solutions which not only meet their needs but exceed their expectations.” MFS’s positive impact on sales and customer loyalty has been recognized by Mazda dealers too. “The dealer network feels like MFS is the first true captive that we’ve had, and MFS has been a fantastic partner to our businesses,“ said Jimmy Scherer, former chairman of the Mazda National Dealer Advisory Council.
India's NSE ends at four-month high, auto stocks drive gains BENGALURU -Indian shares ended higher on Tuesday, boosted by , with the NSE Nifty 50 index posting its highest level since April 5 at close. The NSE Nifty 50 index gained 0.7% to end at 17,825.25. The S&P BSE Sensex closed up 0.6% at 59,842.21. The index hit a record high with its 2.6% gain. Mahindra and Mahindra Ltd gained, a day after the automaker and Volkswagen AG announced the expansion of their MEB alliance to accelerate electrification of the Indian auto market. Refinitiv Eikon data showed 22 of the 43 companies listed on the Nifty 50 index beat analysts' expectations for results in the June-quarter. Nearly all Indian companies had reported their results by Friday. Strong June-quarter results drove shares of Hero MotoCorp and Life Insurance Corporation of India, which ended up 2% and 2.3% respectively. Adani Ports and Special Economic Zone was the top percentage gainer on the Nifty 50, after its unit agreed to buy inland container depot in western India from Navkar Corp Ltd. Cooling consumer inflation print lifted sentiment in financial markets alongside expectations the central bank was likely to rein in the pace of its policy rate hikes from next month. Analysts expect the second half of the year to improve for Indian firms, led by softening commodity prices that are expected to ease the pressure on margins. India's currency and debt markets remained closed on Tuesday for a holiday.
DPIIT's report to help reduce logistics costs in India India’s , which was launched on September 17, 2022, aims to reduce in India. To achieve this objective, the Logistics Division, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry (MoCI), launched a report titled "Logistics Cost in India: Assessment and Long-Term Framework" in New Delhi on Thursday. The report has been prepared by the National Council of Applied Economic Research (NCAER) in a consultative manner with guidance of the (ADB) experts and task force members. Secretary, DPIIT, Rajesh Kumar Singh along with Special Secretary, Logistics Division, DPIIT, Sumita Dawra and other dignitaries including Deputy Country Director, ADB, Hoe Yun Jeong officially unveiled this report. This report presents a baseline aggregated logistics cost estimate and a framework for long-term logistics cost calculation. It uses available secondary data from the and National Account Statistics of Ministry of Statistics and Programme Implementation (MoSPI) and the NCAER’s 2019 study, “Analysis of India’s Logistics Costs”. It was also reviewed by external experts from the Group, according to the Ministry of Commerce & Industry. This report recommends a hybrid approach using primary (covering all trade flows, product types, industry trends, OD pairs, etc) and secondary survey data, as well as real-time Big Data to provide an estimate of logistics cost, the ministry said in a statement. To ensure evidence-based decision making for improving logistics efficiency, logistics costs should be estimated on a regular basis (preferably annually). This requires institutionalising the process of data collection in a systematic and periodic manner, for which an MoU with NCAER is planned, it said. Secretary, DPIIT, said that this report offers reliable estimates to instill confidence in investors regarding the efficient movement of goods and services and is poised to play a pivotal role in optimizing logistics efficiency and enhancing India's global competitiveness. He highlighted that logistics cost has serious implications on the country’s manufacturing sector, export competitiveness, global positioning, etc. She pointed out that due to lack of data in the public domain for the critical components of logistics cost, the non-official/ floating estimates of India’s logistics cost lack credibility. Hence, a need was felt to develop a scientific logistics cost calculation framework, that is inclusive and stands the test of statistical and data-based methods, he added. With this objective, the government formed a task force in March 2023, subsequent to a workshop held in partnership with ADB. The task force composed of sectoral experts, line ministries and representatives from NITI Aayog and ADB held a series of meetings, and drew credible conclusions. Key learnings that emerged during this exercise were as follows: The NCAER team led the academic exercise of computing the baseline
and ADB held a series of meetings, and drew credible conclusions. Key learnings that emerged during this exercise were as follows: The NCAER team led the academic exercise of computing the baseline results and putting together the comprehensive framework for logistics cost calculation in the long run, supported by academia, multilaterals, industry representatives and line ministries. The ministry said the results of this report were widely appreciated by the industry representatives. Building a positive perception in the market, this systematic approach adopted by the government will facilitate more effective and evidence-based decision making, planning production cycles, resource allocation, etc. Disaggregated data and a clear understanding of trends in the sector will lead to identification of targeted interventions and effective policy making.
Nationwide strike hits public transport services New Delhi: Public dealings at some bank branches were hit and public transport services were thrown out of gear in states like West Bengal, Kerala and Tamil Nadu as thousands of workers on Monday began a two-day nationwide strike to protest against policies of the Union government. However, essential services like healthcare, electricity and fuel supplies remained unaffected. Public offices as well as educational institutions were not impacted by the strike called by nearly a dozen trade unions. Some bank branches, particularly in cities with a strong trade union movement, did very limited over-the-counter public dealings such as cash deposits and withdrawals. The joint forum of central trade unions, which has called for the two-day strike that started on Monday, said that bandh-like situation prevailed in at least eight states due to the nationwide strike against various policies of the government. "There is a bandh-like situation in Tamil Nadu, Kerala, Puducherry, Andhra Pradesh, Telangana, Odisha, Assam, Haryana and Jharkhand," the forum said in a statement. According to the forum, agitations were held in many industrial areas across states like Goa, Karnataka, Maharashtra, Chhattisgarh, Punjab, Bihar, Rajasthan, West Bengal, Meghalaya and Arunachal Pradesh. In Maharashtra, volume data from clearing houses and cash replenishment at Automated Teller Machines (ATMs) was not immediately available, though the striking employees claimed that they had a deep impact. Workers staged protests at several places and unions claimed the agitation has had an impact in coal mining belts in Jharkhand, Chhattisgarh and Madhya Pradesh. The joint forum of central trade unions is protesting against the government policies affecting workers, farmers, and people. Their demands include the scrapping of the labour codes, no privatisation in any form, scrapping of the National Monetisation Pipeline (NMP), increased allocation of wages under MNREGA (Mahatma Gandhi Rural Employment Guarantee Act) and regularisation of contract workers. In West Bengal, normal life was hit with protesters blocking roads and stopping movement of trains at some stations. State road transport buses as well as auto-rickshaws and private buses were off the road in Kerala but essential services, including supply of milk, hospital and ambulance services were not affected. Public transport services were hit in Haryana as employees of state roadways joined the strike. Thousands of workers of state-owned SAIL, RINL and NMDC also joined the strike, affecting production at steel plants and mines. Banking services were partially impacted on Monday as a section of bank employees did not report for duty. However, there was hardly any impact on the functioning of new generation private sector banks. There might have been a delay in cheque clearances and government treasury operation might have also be affected by the strike. The impact of the strike is
of new generation private sector banks. There might have been a delay in cheque clearances and government treasury operation might have also be affected by the strike. The impact of the strike is prominent in eastern India as many branches of public sector banks there are closed, All India Bank Employees' Association (AIBEA) General Secretary C H Venkatachalam said. In the other regions, branches are open as officers are present but services are being impacted due to many employees participating in the strike, he said. Bank unions are protesting against the government's move to privatise two public sector banks as announced in Budget 2021-22. They are also demanding an increase in interest rate on deposits and reduction in service charges. The central trade unions that are part of this joint forum are INTUC, AITUC, HMS, CITU, AIUTUC, TUCC, SEWA, AICCTU, LPF and UTUC. "The two-day nationwide strike by the joint forum of central trade unions has begun this morning and has got good response," Amarjeet Kaur, General Secretary of All India Trade Union Congress (AITUC), told PTI. She said the entire coal belt (mining area) has been affected in Jharkhand, Chhattisgarh and Madhya Pradesh. According to her, there was a good response for the strike call in industrial areas of Assam, Haryana, Delhi, West Bengal, Telangana, Kerala, Tamil Nadu, Karnataka, Bihar, Punjab, Rajasthan, Goa, Andhra Pradesh and Odisha. Kaur claimed that banks and insurance sectors have been affected all over India while steel and oil sectors were also seeing partial impact due to the strike. About 20 crore workers are expected to join the strike. The strike notices have been given by the unions in various sectors, including coal, steel, oil, telecom, postal, income tax, copper, banks, and insurance. Bal Malkit Singh, Chairman of Core Committee of All India Motor Transport Congress (AIMTC) said that as per the report received till now, the transportation of goods has not been affected by the strike. AIMTC, the apex body for the truckers, has not given a strike call. "Our trucks are running smoothly all over the country," he said. "All supplies are normal. During the day, we have not received any feedback from any of the members across the country that there is any disruptions in the supply chain.... We are not part of the agitation," he said. However, the Confederation of All India Traders (CAIT) said the strike called by a joint forum of trade unions has been a "total flop" in the informal sector. In a statement, it also claimed there was no impact visible even in various industrial areas where small industries are having manufacturing activities.
Suzuki Motorcycle India MoU with Bajaj Finance for two-wheeler financing New Delhi: Private Limited (SMIPL), the two-wheeler subsidiary of Motor Corporation, Japan, Tuesday entered into a MoU with (BFL) to provide quick and hassle-free financing on the purchase of Suzuki two-wheelers. BFL is the lending arm of Bajaj Finserv Limited, one of India’s leading and diversified financial services groups. The partnership will enable customers to avail round-the-clock, easy, and hassle-free retail financing option on the purchase of Suzuki two-wheeler. The MoU will also provide additional benefits to customers. These benefits include vehicle loan sanction within minutes and hassle-free documentation, the company said. Kenichi Umeda, Managing Director, Suzuki Motorcycle India Pvt. Ltd. said, “Considering our continuous growth in the Indian market, it becomes imperative for us to associate with financiers who can facilitate ease of purchasing Suzuki Two Wheelers. The idea is to offer flexible, yet easy retail finance offers keeping in mind the needs of our customers. We are confident that our engagement with Bajaj Finance Limited will be another step in enhancing our ability to cater to the needs of our growing customer base in India and thereby support our growth plans.” As part of this association, customers can get faster approval with nominal documentation at a competitive interest rate. To add to this convenience, Bajaj Finance offers easy scheme options, digital login, 24/7 operational support, and pre-approved offers. Amit Raghuvanshi, President - Personal Loans and Sales Finance, Bajaj Finance Ltd, said, “As the preferred financier tie-up with Suzuki Motorcycle India, one of the leading players in India’s two-wheeler space, Bajaj Finance has the opportunity to reach out to a larger number of two-wheeler buyers. With our customer franchise of 69 million, the partnership with Suzuki Motorcycle enables us to deliver a superior digital experience and a wider suite of financial solutions to our customers. We are thrilled to begin this partnership and look forward to jointly serving millions of customers across India.”
Can I get a loan to buy a second-hand car? Buying a second-hand or used car is being preferred by many people today. Most of the car manufacturers have their own pre-owned divisions, while most of the banks and non-banking financial services companies (NBFCs) are also offering personal loans for a at lucrative interest rates and zero down-payment strategies. You can fund the purchase of a second-hand vehicle by availing a personal loan. However, there are quite a few things you need to check before you get such a loan. What is a ? Pre-owned cars or second hand cars are considered widely in today's times and have gained quite a good popularity. You can purchase a second hand car with a personal loan for a pre-owned car. This collateral-free credit option offers customers a substantial loan quantum with good interest rates, hassle-free applications, flexible repayment duration and approval in no time. How much loan can I get on a pre-owned car? The loan quantum of a used will usually depend on the lending institution that one chooses. NBFCs such as Bajaj Finserv provide substantial personal loan for second-hand vehicles at competitive interest rates and flexible tenor. What are the advantages of ? Benefits of getting a personal loan for pre-owned cars includes the following; Can a used car be financed? Yes, a pre-owned car can be financed easily. Customers can choose for personal loans for used cards to fund the purchase of a used car. Such loans are offered at attractive interest rates and do not need much documentation also. Applicants can enjoy other advantages, like flexible loan repayment tenors, easy eligibility criteria and more. What are the documents required to get a loan for a used car? Photo ID with mentioned age proof (like Aadhaar card, PAN card, Passport, DL)Signed application form with 3 passport sized photos (varies from bank to bank)Residential proof such as a valid passport, driving license, voter id card, updated passbook, bank account statement, or a registered rent agreement. Is it good to take loan for a second-hand car? The interest rates for a second-hand car loan are higher as compared to a new car loan. Some NBFCs and banks do not provide a loan on cars older than 3 years or above. The insurance cost will not be covered in the amount of the loan. What is the easiest way to get a second-hand car loan? What is a ? Lenders offer pre-approved car loans to those who meet specific lending requirements. In a pre-approved car loan, the lender gives pre-approval for a certain amount of money to the borrower, along with an estimated interest rate. Borrowers can use this pre-approved loan offer to buy their favourite car.
Zinc caught between weakening demand and sliding supply: Andy Home By Andy Home LONDON: The puzzle facing the is whether demand or supply will fall hardest this year. Both were down in the first half of the year, according to the latest assessment by the (ILZSG). An estimated 3.0% drop in global usage marginally outpaced a 2.6% slide in . The figures are preliminary and subject to revision but they capture zinc's conflicting dynamics and increasingly fractured pricing. The (LME) three-month price is currently trading around $3,080 per tonne, a long way off March's record high of $4,896, as the market prices in Chinese demand weakness and the rising prospect of European recession. LME time-spreads, however, remain volatile due to low stocks availability and physical buyers are still paying record premiums to get hold of metal. DEMAND HIT Zinc's usage hit so far this year has come largely from China, where a troubled property sector has depressed demand for steel, including zinc-coated galvanized steel. production fell by 6.4% year-on-year in the first seven months of 2022, according to the World Steel Association https:worldsteel.orgpress-releasesjuly-2022-crude-steel-production/. Attempts to revitalise the flagging commercial construction sector are being stymied by a combination of continued rolling COVID-19 lockdowns and power rationing in drought-affected parts of the country. Broader manufacturing activity has also taken a hit, both official and Caixin purchasing managers indices indicating a contraction in factory activity last month. Demand fears have now spread to Europe, which seems to be facing imminent recession due to soaring power prices. The outright zinc price mirrors the macro pressures playing out across the LME base metals complex and is in part down to shifts in fund positioning as money mangers reduce their long exposure. Investment funds have slashed their net long zinc position from a record high of 62,744 lots in April to 29,053 as of the Sep. 9 close. Other financial institutions, a category that includes pension funds and insurance players, turned net short of zinc in June for the first time since the LME started publishing a Commitments of Traders Report in 2018. The position has since flipped back to a small net long of 5,024 lots, but it's now a fraction of what it was at its November 2019 peak of 42,334 lots. LOW STOCKS The outright price is falling despite low exchange inventory. LME stocks currently stand at 75,700 tonnes, down by 123,625 tonnes on the start of the year. Almost a third of the remaining tonnage is earmarked for physical load-out. Shanghai Futures Exchange inventory has been sliding as well, hitting a fresh 2022 low of 58,407 tonnes this week. The Shanghai forward curve is in backwardation and so too is the London market. The LME cash premium over three-month metal has eased from its June peak of $218 to $27.50 per tonne at Thursday's close but the recent heightened spread volatility can be expected to
London market. The LME cash premium over three-month metal has eased from its June peak of $218 to $27.50 per tonne at Thursday's close but the recent heightened spread volatility can be expected to continue until inventory rebuilds in a meaningful way. LME inventory in Europe continues to comprise a single lot at the Spanish port of Bilbao, while U.S. warehouses hold just 2,100 tonnes, all of it cancelled and due to depart. Both regions remain gripped by acute tightness. European buyers are currently paying record premiums of over $500 per tonne on top of the LME price to secure spot units, according to Fastmarkets. That's five times more than they were paying at the start of 2021. SUPPLY HIT Europe is at the epicentre of the global zinc supply hit as smelters struggle to cope with soaring power prices. Nyrstar's 315,000-tonne-per-year Budel smelter in the Netherlands is the second to close fully after Glencore placed its Italian smelter on care and maintenance at the end of last year. "It is clear that European smelter cuts will come deeper and sooner than we anticipated," said analysts at Citi, forecasting regional capacity utilisation will drop to 66% over the second half of this year from 83% in 2021. ("Metals Weekly", Aug. 18, 2022) Power problems have also hit Chinese production in the last couple of weeks with temporary curtailments due to rationing in Sichuan province earlier this month. Most of that capacity has already restarted but Chinese refined zinc production is struggling this year, down 3.3% year-on-year in the January-August period, according to Shanghai Metal Market. SHIFTING BALANCE Zinc's micro dynamics are shifting fast and at the moment it seems that the demand hit is outpacing the supply hit. The global market generated a supply surplus of 27,000 tonnes in January-June, according to the ILZSG, which was expecting a significant deficit of 290,000 tonnes this year at its April meeting. While refined production has underperformed the Group's forecast for 0.9% growth this year, demand has deviated far further from expectations. An April forecast for 1.6% growth in usage this year now looks highly optimistic given the 3.0% estimated slide over the first six months of the year. It's the demand outlook that's weighing on the outright zinc price. But the accumulating supply problems are preventing any rebuild in exchange inventory and keeping physical supply-chains tight. Is zinc bullish or bearish right now? The answer depends on whether you ask a futures or a physical trader. The opinions expressed here are those of the author, a columnist for Reuters. Read More:
Rise in third-party motor cover premium rates to partially offset underwriting losses for insurers: Report The recent increase in the premium rates on is unlikely to fully offset the motor insurance segment's underwriting losses, said in a report. The premium rates for third-party motor insurance have been increased from June 1. Premiums for two-wheeler insurance have risen the most -- by 12-21% -- across engine capacities. For private cars, the maximum increase is 6%. "The and Highways' move to increase the premium on third-party motor insurance after two years is a step in the right direction, but unlikely to fully offset the segment's underwriting losses," the rating agency said in the report. Third-party insurance cover is for other than own damage and is mandatory (as per the , 1988) to purchase along with own damage cover. Underwriting losses occur when claims are higher than the premium income of an insurance company. The last time premiums were hiked was in June 2019 and thereafter policyholders were given some respite because of the COVID-19 pandemic, the agency said. Its Senior Director and Deputy Chief Ratings Officer Krishnan Sitaraman said underwriting losses remain high in motor insurance because the premiums earned on policies are inadequate to pay the claims made by the policyholders. "Therefore, any increase in premium helps in reducing losses. So, while this latest increase in premiums will offer a breather, it won't be enough to stanch the bleeding," Sitaraman said. The agency said the latest increase, combined with the recovery in automobile sales, will likely result in a 12-13% growth in third-party motor cover premiums, which account for a fifth of the general insurance industry's gross written premium. On the other hand, claims incurred by most insurers have risen since the second quarter of last fiscal, following the relaxation of lockdown restrictions and reopening of offices. The claims ratio is estimated at around 85% for the last quarter of fiscal 2022, up from around 78% in fiscal 2021 and is estimated to stay at similar levels in this fiscal, the report said. The claims ratio is the percentage of claims incurred in relation to premiums earned.
Potential UAW strike presents a near-term headwind for auto insurers - JPM J.P.Morgan on Thursday said supply chain disruptions from a potential (UAW) union strike would cut new vehicle production, drive up used car prices and put pressure on margins in the personal auto insurance business. UAW is currently in talks with the Detroit Three automakers - , parent company and - ahead of the expiration on Sept. 14 of the current four-year labor agreements covering 146,000 workers. The automakers "represent about 40% of light vehicle auto sales (by units) in the U.S., and IHS Markit estimates that a strike would disrupt North American vehicle production by roughly 75%," J.P.Morgan said. Higher used-car prices increase coverage limits on auto insurance, making claims more expensive, so insurers are obligated to pay the fair market value of a car if it is deemed destroyed, lead analyst said. The brokerage identifies Allstate Corp and Progressive Corp as the insurers with the most exposure to a potential UAW strike, with Allstate more susceptible due to its weaker capital position. Used-car prices have had the most impact on auto margins in recent years compared to other factors such as higher spare part costs, labor costs, increased litigation, and severe accidents, the brokerage added. A UAW strike that shuts down the Detroit Three automakers could cost the manufacturers, workers, suppliers and dealers more than USD 5 billion according to a study by Michigan-based , a consulting firm.
Bajaj Finance Simplifies Car Loan Balance Transfer and Offers a High-value Top-up transforms the way customers approach balance transfer for car loans with simple eligibility criteria and a hassle-free online application. Customers can get a high-value loan of up to INR 47 lakh. With the and Top-up customers stand to reduce the cost of borrowing and cover their small or big car-related expenses. With three unique variants on offer and multiple tenure options to choose from, customers also get flexibility of repayment. Additionally, the competitive interest rates offered by Bajaj Finance also make this a perfect option for customers who are looking to transfer their existing car loan. Here are the key features of Bajaj Finserv Car Loan Balance Transfer and Top-up Simple eligibility and minimal documentation For a Bajaj Finserv Car Loan Balance Transfer and top-up customers need to meet a few simple eligibility criteria. This makes the application process hassle-free and fast tracks the loan disbursal process. Customers need to submit just a few documents to get their loan application approved. These documents include KYC documents, PAN card, salary slips, vehicle registration certificate and bank statements. Some customers may be required to submit additional documents based on their eligibility. High-value top-up loan Bajaj Finance offers a car loan balance transfer and top-up of up to INR 47 lakh. Customers can get a top-up amount of up to 180% of the car's value. The high-loan amount can cover the balance transfer and other car-related expenses. The top-up amount can be used for upgrading the car interiors or adding accessories, headlight upgrade and more. Customers get flexibility of using the top-up loan amount as per their need. Flexible repayment tenure Bajaj Finserv Car Loan Balance Transfer and Top-up comes with flexible repayment tenure of up to 72 months. This long tenure allows customers to convert their loan amount into small manageable EMIs without disturbing the overall budget. Quick disbursal facility Bajaj Finance offers a balance transfer and top-up loan that comes with a quick disbursal facility. This feature ensures that the loan amount is credited to the customer's bank account within 48 hours* after loan approval. It allows customers to manage their additional expenses without any delay. No hidden charges All fees and charges that are applicable on a car loan balance transfer and top-up are mentioned upfront on the Bajaj Finserv website and in the loan agreement. With Bajaj Finance, customers can be assured of 100% transparency in fees and charges related to loans. Three unique loan variants Bajaj Finance offers three loan variants: Term Loan, Flexi Term Loan, and Flexi Hybrid Loan. With both the Flexi Loan variants, customers get a pre-assigned loan limit from which they can withdraw funds as per their need. The interest is charged only on the amount withdrawn and not the entire limit. These Flexi variants also allow
get a pre-assigned loan limit from which they can withdraw funds as per their need. The interest is charged only on the amount withdrawn and not the entire limit. These Flexi variants also allow customers to part-prepay their loans as many times as they can without paying any additional cost. Additionally, a Flexi Hybrid Loan comes with the additional feature of paying interest-only EMIs for the initial tenure. With Bajaj Finserv Car Loan Balance Transfer and Top-up, customers not only get better repayment terms, competitive interest rates but also get access to funds to manage their additional expenses. Additional features such as doorstep documents collection, car insurance services and more make this a go-to-product for customers seeking to transfer their car loan. Bajaj Finance Ltd. ('BFL,' 'Bajaj Finance,' or 'the Company'), a subsidiary of Bajaj Finserv Ltd., is a deposit-taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). BFL is engaged in the business of lending and acceptance of deposits. It has a diversified lending portfolio across retail, SMEs and commercial customers, with a significant presence in both urban and rural India. It accepts public and corporate deposits and offers a variety of financial services products to its customers. BFL, a thirty-five-year-old enterprise, has now become a leading player in the NBFC sector in India and on a consolidated basis, it has a franchise of 72.98 million customers. BFL has the highest domestic credit rating of AAA Stable & AAA(Stable) for its FD program. It has a long-term issuer credit rating of 'BBB-/Stable' and a short-term issuer credit rating of 'A-3' by S&P Global Ratings.
India not to tailor policy for Tesla; EV maker as also other global players welcome in India: Piyush Goyal India will not tailor its policies to suit US EV maker , and its laws and tariff rules will be formulated to attract all-electric vehicle manufacturers from across the world to set up a base in the world's fastest-growing economy, Commerce and Industry Minister said. Tesla has been seeking an initial tariff concession that would allow it to offset 70% customs duty for cars priced less than USD 40,000, and 100% for cars of higher value. In an interview with PTI, Goyal said the government recognises the need for a vibrant EV ecosystem as greater use of battery-run vehicles will cut carbon emissions as well as the staggering oil import bill. But for this, it will not tailor policies that suit any one company and would rather frame ones that will encourage all-electric vehicle manufacturers from across the world to set up shop in India, he said. "We are working on several initiatives where we are having inter-ministerial (consultations) and a dialogue with the stakeholders, with potential investors from across the world from Europe, from the United States, from the Far East, from Japan, from Korea," he said. Tesla made the concession demand a precondition to build a plant in India. High tariffs on motor vehicles, meant to boost local production, have been a lingering issue for foreign carmakers too. "Government does not tailor policy for any one individual company or its interests. Everybody is free to make their demands. But that does not mean that the government will necessarily take a decision (based on) what you demand," he said. Goyal was replying to a question about whether the government is looking at giving any concessions to Tesla for setting up a manufacturing facility in India. The Indian factory, as and when it happens, would be Tesla's sixth vehicle plant. At present, cars imported as completely built units (CBUs) attract customs duty ranging from 60% to 100%, depending on engine size and cost, insurance and freight (CIF) value less or above USD 40,000. The world's largest electric car producer Tesla Inc's chief Elon Musk met Prime Minister Narendra Modi in June last year in New York. Musk, after meeting the Prime Minister, said he plans to visit India in 2024. "We recognise that India must have a vibrant electric mobility ecosystem. We recognise that it has multifarious benefits to grow towards electric mobility. Not only will it help us in our fight against climate change, it will also improve the environment and lower pollution levels, particularly in cities, which largely suffer because of the ICE (internal combustion engine) or the petrol-diesel fumes that are thrown out," Goyal said. "So, it has so many multifarious benefits which will impact not only the country's environment but will also impact the country's economy, it will add to our economic output. It will save foreign exchange, reduce our trade deficits, help us in our
will impact not only the country's environment but will also impact the country's economy, it will add to our economic output. It will save foreign exchange, reduce our trade deficits, help us in our fight against inflation, thereby helping us in reducing interest rates," he added. The minister emphasised that the sector can be a powerful medium to make the country macro-economically even stronger. "So it'll be a project (that we) will be continuously looking to encourage all-electric vehicle manufacturers across the world. "And we are working on several initiatives where we are having a dialogue, inter-ministerial, with the stakeholders, with potential investors from across the world from Europe, from the United States, from the Far East, from Japan, from Korea. So we have significant engagements going on across the world," the minister said. India, the world's third-largest energy consumer, is pitching as an alternate destination for investment for US companies to capitalise on the growing chill between Beijing and Washington. To attract EV players, the government has rolled out production-linked incentive schemes for advanced chemistry cell manufacturing and component making. In November last year, Goyal visited the manufacturing facility of Tesla in Fremont, California. The company sourced goods worth about USD 1 billion in 2022. The government has rolled out production-linked incentives (PLI) schemes (PLI) for advanced chemistry cell (ACC) battery storage with an outlay of INR 18,100 crore and INR 26,058 crore PLI scheme for auto, auto-components and drone industries. The UK, which is negotiating a free trade agreement with India, is also seeking customs duty concessions on exports of electric vehicles under the proposed agreement. The fast-growing EV market in India is catching the eyes of global players. The UK is also looking at phasing out ICE (internal combustion engine) vehicles by 2035, and the British auto market is export-driven. According to experts, the UK's major export destination for vehicles is Europe, and they are looking to diversify their exports. India's electric vehicles market is expected to grow to one crore units in annual sales by 2030 and create five crore direct and indirect jobs, according to the Economic Survey 2022-23. As per industry estimates, the total EV sales in India stood at around 10 lakh units in 2022. In India, is the leading player in passenger electric vehicles. The company's current EV portfolio comprises Nexon EV range, Tiago EV and Tigor EV.
Audi India expands pre-owned car business to Surat New Delhi: has opened its new in Surat, Gujarat. Spanning 2100 sq. ft., the showroom has the capacity to display 5 cars. The showroom will cater to the growing demand in Surat and the nearby regions. Customers can avail 24x7 Roadside Assistance along with two years of unlimited km warranty, the company said in a press release on Monday. , head of Audi India, said, “As one of the major commercial and economic hubs in Gujarat and the largest urban sprawl in western India, Surat and the adjacent areas have been generating steady demand for pre-owned luxury cars as more people seek a luxurious driving experience. The new showroom will help us cater to this demand while expanding our footprint in the region. The facility will offer customers a wide range of pre-owned that have been subject to multiple levels of quality checks to ensure the best possible experience.” According to the company, every vehicle displayed at the Audi Approved: plus showrooms undergoes stringent quality testing for all aspects of the vehicle – be it electrical, bodywork, or the interiors. Additionally, the vehicle’s complete history is provided before the purchase. Along with two years of unlimited kilometers warranty the customer can also avail easy financing options and insurance through the programme, the release said. Also Read:
India’s 'Green' retail NBFC Ecofy promoted by Eversource Capital launched In an industry first move, Eversource promoted Accretive Cleantech Private Ltd, operating as ‘ ’, has received regulatory approval from the (RBI) to operate as a non-deposit taking non-banking financial company (NBFC). This makes Ecofy one of its kind green retail NBFC in the country. Mumbai-based Ecofy has been promoted by , India’s leading climate impact investor along with NBFC industry veterans Rajashree Nambiar (former MD & CEO, Fullerton India Credit Company Ltd.) and Govind Sankaranarayanan (former Group COO and CFO, ). Ecofy will lend to individuals and small businesses to accelerate the transition towards a net zero carbon world. The company will offer financial solutions for green asset classes such as (2 and 3-wheelers), rooftop solar and energy-efficiency SMEs. Ecofy’s offerings include loans, leases, insurance, warranties, and buybacks for all green needs. Ecofy is born digital and uses technology to improve every aspect of the customer experience. Rajashree Nambiar, Co-Founder and CEO of Ecofy, stated, “Finance is a critical input that can catalyse the much-needed green transition for a net zero emission future. Our goal with this NBFC is to provide the products and seamless experience that address customer needs.” Dhanpal Jhaveri, Vice Chairman, and CEO, Eversource Capital commented, “Ecofy is building a digital first green lending business to address a much-needed financing gap in India’s climate change agenda. Today, green assets and businesses are not only climate positive but are also value accretive. Ecofy will help in accelerating the adoption of green assets and support businesses in their green transition through innovative and accessible financing.” Also Read:
Tribunal recommends creation of separate slow lane for e-ricks and e-bikes to curb accidents Taking note of an increase in accidents due to e-rickshaws, a (MACT) has recommended a slew of directions to prevent violation of traffic rules by such vehicles, apart from curbing negligence of traffic police. The tribunal, in an order on February 17, said every victim of an accident should be adequately compensated. MACT presiding officer Ekta Gautam Mann requested the Union ministry of road transport and highways to create a separate slow moving lane for two-wheelers, three-wheelers and e-rickshaws on heavy traffic roads to prevent the risk of accidents. A request was also sent to ’s to ensure that subsidy for the purchase of e-rickshaws was not released till the license of the driver was made permanent. Also, permits should be provided for only those roads with a low traffic volume, like service roads, and not having a speed limit of over 40kmph. As the maximum speed of an e-rickshaw is 25kmph, this would minimize the risk of accidents. The Union home ministry was requested to direct traffic police to perform their duty efficiently by keeping a check on violations and checking the non-availability of requisite documents of the driver of every motor vehicle, including e-rickshaws. The tribunal further requested the ministry to make it a law to allow traffic police to issue notices to owners of vehicles, including e-rickshaws, if the insurance policy had expired. The owners should be asked to get the insurance policy renewed immediately, otherwise action should be taken against them. This would prevent an accident victim from remaining uncompensated. During the hearing, the petitioner alleged that she had become permanently disabled by losing complete vision in her eye. She was only 37 years of age and had to look after her minor children. She added that drivers of e-rickshaws drove in a negligent manner and caused havoc on the roads. The investigating officer (IO) submitted that the e-rickshaw driver didn’t have a valid insurance policy at the time of the accident. There were three passengers in the vehicle. The driver lost control of the e-rickshaw and the vehicle overturned. While the petitioner lost her vision, other passengers suffered minor injuries. The IO claimed that most e-rickshaw drivers had only a learner's driving license. As a result, they were causing chaos on the roads. An official verbally stated that permits for e-rickshaws were not required since 2018. There was a tie-up between insurance companies and the RTOs as well as traffic police. If the insurance policy of any vehicle expired, then RTO and traffic police would immediately come to know of it. Also Read:
VOC Automotive secures INR 1.5 crore funding from Corporate Warranty India to revolutionise two-wheeler service industry in India New Delhi: , a startup in the , has raised INR 1.5 crore in funding from Pvt Ltd (CWI). This strategic investment is earmarked for the company's expansion efforts, promising to bring affordable, quality services closer to two-wheeler users across India. VOC Automotive offers a comprehensive range of services, including general and major servicing, painting, denting, and specialized coatings, at 30% lower charges than typical service centers. The startup also introduced an industry-first extended warranty program: six months for engine oil replacement and two years for other major services. This warranty is available for vehicles manufactured from 2015 onwards. The company's digital initiatives include the VOC Smart Rider app, enabling customers to book services for doorstep delivery or at the nearest VOC service centers, and the VOC Smart Dealer app, which aggregates hyperlocal service centers to enhance accessibility, the company said in a media release. "Starting with one outlet during the pandemic was tough, but our perseverance paid off. We now have a proven franchise model and continuous profitability, making us an attractive investment for partners like CWI," said Venkatesh B M, Co-Founder of VOC Automotive. Financial Milestones and Future Plans VOC Automotive's revenue growth reflects its successful business model. The company recorded INR 2 crore in FY-22, INR 2.7 crore in FY-23, and an impressive INR 10 crore in FY-24. The startup aims to reach INR 100 crore in revenue by FY-25, supported by an aggressive expansion plan to establish 300 outlets nationwide, including new regions in North and West India. The investor from Corporate Warranty India Pvt Ltd (CWI) stated, “VOC Automotive's business model aligns with our post-sale customer retention programs. Given our shared industry experience, we understand the potential of this business and its growth scalability. We have strong faith in the founders and their vision for VOC. Their automotive background and experience with OEMs provide them with unique insights into customer challenges and market opportunities.” The investor further added, “The unorganized market for two-wheelers in India presents vast untapped potential. VOC is working to organize and standardize this segment, adding new services for the dealer network and new business lines. With the rise of EVs, there is significant potential for companies like VOC. We anticipate substantial returns from this investment in the near future.” VOC is also focusing on strategic collaborations with insurance companies for accidental claims, EV companies for service partnerships, petroleum companies, and OEM companies. Additionally, the VOC Smart Rider app plans to onboard 10,000 customers this financial year, and the startup will soon introduce a vertical for buying and selling pre-owned two-wheelers. Founded in
Additionally, the VOC Smart Rider app plans to onboard 10,000 customers this financial year, and the startup will soon introduce a vertical for buying and selling pre-owned two-wheelers. Founded in October 2019 by Venkatesh B M and Lokesh S, VOC Automotive addresses a critical gap in the market: the high cost and limited proximity of authorized service centers for two-wheelers. Both founders, coming from humble beginnings, recognized the struggle of maintaining two-wheelers without breaking the bank. This insight led them to create a solution that combines affordability, accessibility, and quality.
VRL Logistics to expand fleet size to 7200 trucks by FY25 plans to expand its size to approximately 7,200 by the next financial year, following its latest order for 1,560 trucks from . Currently, it is operating 5,700 trucks. The Managing Director, Vijay Sankeshwar, said his intention is to expand the business by 25% to 30% in FY24 in accordance with the growing size of the fleet. The firm said that it will be bringing in a range of trucks, including 50 30-tonner trailer horses, 1,200 10-wheelers, and 20-tonner vehicles, as well as about 400 trailers with carrying capacity. VRL Logistics has budgeted INR 697 crore in total capital expenditures for the development and modernization of its fleet in FY24. According to VRL, the capex covers the cost of the chassis at list pricing, as well as the costs of bodywork, registration, insurance, and a buffer for unforeseen circumstances. The company will discard between 1,000 and 1,100 of its old vehicles this year while also adding new ones. According to VRL, the company must replace its older cars ito comply with the Centre’s continuing . With and Reliance, the company had placed an order for 1,650 vehicles 14 months ago.
How Budget 2022 can be used to revive consumption for economic growth? After a rumpled start in FY 21-22 due to the second wave of COVID-19, the consumer market sector began to pick-up during second half of the year. According to the Confederation of All India Traders (CAIT), retail buying during Diwali season nearly doubled to approximately Rs 1.25 lakh crores vis-à-vis the previous year. However, with surging cases of the new Omicron variant, the sector has been put back on survival mode. On the other hand, the rising input costs pertaining to packaging material, labour and freight have begun to shrink the margins of consumer goods companies. With this backdrop, the sector is looking forward to the upcoming 2022-23 with high expectations. The industry would keep an eye out for relaxation in respect of the production targets prescribed in recently introduced Production Linked Incentive Schemes for white goods, food and textile. The said scheme was introduced by the Government to boost the indigenous production of various goods. Given that the production may see a decline due to present and proposed lockdowns and curfews, the industry may seek out relaxation in the production targets which are required to be met under the said scheme. Similarly, the retail industry may seek extension of the time limit for setting up manufacturing units to avail lower corporate tax rate under Sec 115BAB of Income Tax Act 1961, which presently stands on 31 March 2023. Secondly, it is imperative for the government to rethink on implementation of stricter provisions under like 100% input tax credit reconciliation, recovery proceedings due to mismatch in returns without issuance of notice etc., which adversely impact the working capital position for an already distressed sector. Further, clarity/relaxation on issues like input tax credit restrictions on promotional items, samples, employee insurance, de-linking of secondary discounts with the terms of agreement etc. are some other areas where the industry is hoping for some favourable announcements. Removal of blockage of input GST tax costs on construction, renovation of shops, warehouses have been a long-pending demand of the sector. Accordingly, any announcement allowing deduction of tax cost on construction against output GST, would be most welcomed by the industry. Transitional credits and frequent changes in tax rates have paved the way for anti-profiteering issues in the retail sector. Further, most companies have not been able to directly pass the benefits to customers. With further extension of tenure of anti-profiteering provisions, ambiguity on how to compute and determine the manufacturer’s profit would continue to discomfort the industry. Clarity on this aspect could lead to allaying the fears of the industry of any unwarranted enquires, proceedings by authorities. The recently introduced provision requiring food aggregators to collect and deposit GST on deliveries effected through their platform, has
of any unwarranted enquires, proceedings by authorities. The recently introduced provision requiring food aggregators to collect and deposit GST on deliveries effected through their platform, has added to the woes of companies operating in this segment. Although certain clarifications were issued in this regard, industry may require transitional relief in implementing the said provisions. The government’s focus on improving digital infrastructure across the country and working towards improving connectivity in rural areas will help drive growth and make rural the big battleground for consumer companies. Lastly, no budget is complete without MSMEs and support for the overall retail landscape. With changing rules of businesses, omnichannel retailing and last-mile deliveries being critical cogs in retail, the government should consider these sectoral issues and provide investments in developing supply and delivery infrastructure. MSMEs continue to be the backbone for . In a bid to boost local manufacturing and promoting self-reliance, we could expect the budget to focus on growth of small and medium enterprises as they can support the nation’s need to generate significant employment. Enabling entrepreneurship is key. To boost the startup ecosystem, the government may look to liberalise the start-up regime further in context of tax benefits, eligibility conditions etc. Moreover, we could expect certain relief packages or lower interest on capital for start-ups. Given the consumer oriented population in India, the right impetus from the government will certainly help the consumer markets sector realise its potential and perform as one of the most potent growth levers for the . And to realise this objective, the upcoming Budget provides the government with a wonderful opportunity to announce measures which can pave the way for the sector to spread its wings and fire its growth engines to full throttle. In summary, the government should look at devising measures to revive for economic growth. Increasing investments in infrastructure development, skill upgrading, digital augmentation, job creation, and MSME development could help reignite consumption in the economy. We sense a budget that is supportive of this sector, thereby helping consumer facing companies thrive and drive India’s consumption economy. Harsha Razdan is Partner and Head, Consumer Markets and Internet Business, KPMG in India. Harpreet Singh is Partner, Indirect Tax, KPMG in India. Also Read:
Electric two wheelers register a staggering 132% growth in 2021 but 2022 promises to be even better The year that has gone by has shown what difference subsidies can make in the evolution of a new age industry. Spurred by generous incentives under central government's FAME 2 scheme with an extra helping from similar policies in as many as 18 states in the country, sale of high speed scooters shot through the roof in 2021 registering a jaw dropping 425% growth at nearly 1.43 lakh units. As a result, for the first time ever, high speed scooters have outpaced their slower counterparts that need no registration or insurance but do not benefit from any government subsidy. Slow speed scooters grew at a relatively sedate 24% at 91,142 units. The overall segment more than doubled from just about a lakh units to 2.34 lakh last year. has come of its own in India's two wheeler market. “We haven’t seen better days than the last few months in the entire EV journey. In the last 15 years, we collectively sold around 1 million e2w, e-three wheelers, e-cars, and e-buses, and we will most likely sell the same 1 million units in just one year beginning January 2022," said Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV). "The recent positive changes in EV policy through FAME 2 are a game-changer and a decisive move by the government to ensure a cleaner and greener transportation sector, reducing reliance on expensive and contaminated liquid fuel. Customers have now started shifting in large numbers from petrol two-wheelers to electric ones due to attractive prices, lower running costs, and lower maintenance. A significant percentage of customers also factor in the environment and sustainability in their decision to buy an electric two-wheeler." The shift from unorganised low speed to organised high speed scooters even though not unexpected was still sudden in 2021. Low speed scooters that are classified as those that cannot go faster than 25 kph infact logged negative growth in the last 2 quarters of 2021--with market share declining from a high 70% in previous years to less than 15% in the Oct-Dec quarter. The FAME 2 policy only incentives vehicles based on their battery capacity at Rs.15000 per kwh, which has narrowed the gap in price between low and high speed scooters. and Okinawa held on to their top two positions in the market while Pawan Munjal backed Energy broke into the top 3 last year. "The year 2021 was disruptive for the EV sector. Customers have made a conscious shift to switch to EVs, further fueled by rising fuel prices, better charging infrastructure, and awareness. Moreover, the Government has also shown tremendous support with a revised FAME II subsidy structure and additional statewide policies have helped propel the segment," said Naveen Munjal, managing director, Hero Electric. "We witnessed a hockey stick growth with upward sales momentum resulting in higher demand paving the way for production capability
the segment," said Naveen Munjal, managing director, Hero Electric. "We witnessed a hockey stick growth with upward sales momentum resulting in higher demand paving the way for production capability expansion at our Ludhiana plant from 1 lakh to 5 lakh units to manufacture over 1 million EVs by 2025. The coming years will witness increased EV penetration in the country with targeted sales of 30% private cars, 70% commercial vehicles, 40% buses, 80% two and three-wheelers by 2030." Bull run ahead The story is only getting started. The growth in 2021 was largely organic in nature with established brands like Hero Electric, Okinawa, PureEV, Revolt, Ather, Ampere, Auto and registering strong sequential growth. This year will see the market entry of many players including Ola Electric which began deliveries of its scooters from December 15, Bounce Infinity, Simple Energy, Tork Motors and TVS backed Ultraviolette. The entry of heavyweight Hero MotoCorp will further add to the mix. Disclaimer: 1.The data doesn’t include low-speed segment 2.The above data has been collated from the Govt records of Vahan "We are expecting new players to enter and disrupt the market. Several brands have been trying to catch up with the pace in the EV segment and have come up with innovative ideas and products," said Sumit Chhazed, co-founder, OTO--a two wheeler buying and financing platform. "Bounce has introduced their new Bounce Infinity E1 which comes with the battery swapping infrastructure. Ola had invested in product diversification by bringing in their Ola Electric scooter and received 1 lakh plus bookings. The number of bookings shows how welcoming consumers are towards the adoption of EVs. Legacy brands such as TVS Motor, Bajaj, Hero Motocorp are not far behind as they have been consistently trying to invest in the best technologies, development, and capacity expansion." Backing this growth in sales, investors are also placing their bets on EV firms. In 2021, funding to EV tech startups hit an all time high touching nearly USD 444 million (INR 3,307 crore) across more than 25 deals which was 255% higher than 2020 and 12% higher than pre-pandemic 2019. The result of this will manifest itself in years to come starting 2022. "We will see an increase in demand with substantially increased competition, considering individuals' awareness and potential of owning or switching to electric vehicles. By 2025, the market is projected to reach 10% from the current 1%, and, with conducive policies, it will further jump to 20%," said Munjal. "India is the largest two-wheeler market with 17% segment space, with 1 EV per 125 vehicles. There is heightened interest and investment in the segment estimated to be at INR 94,000 crores in the next five years." With greater awareness among consumers and the industry working on ways to mitigate challenges like charging infrastructure and range anxiety, the tailwinds outweigh potential headwinds. "Electric-2-Wheelers are currently sold on
and the industry working on ways to mitigate challenges like charging infrastructure and range anxiety, the tailwinds outweigh potential headwinds. "Electric-2-Wheelers are currently sold on the basis of their range alone and it will be important to develop a framework to balance fallbacks against more attractive attributes of e-mobility such as flexibility, availability and affordability," said Jeetender Sharma, founder and managing director, Okinawa Autotech. "In the coming years, EV financing especially for Electric-2- Wheelers will be the most important enabler for the adoption of Electric Vehicles. Attractive economics and government pushes have already significantly increased demand for Electric- 2- Wheelers and the industry is expected to grow significantly, as we foresee." For 2022, SMEV's projection is not double or triple but upto 6 times growth over 2021. This at a time when the traditional petrol powered two wheeler industry is struggling for growth like never before. "Going by the recent monthly trends, the next 12 months may see 5 to 6 times the growth over the previous 12 months,” said Gill of SMEV. "Currently, all-electric two-wheelers sold in India are called electric bikes or e-bikes, but in fact, they are either electric motorcycles (around 2% of the market) or electric scooters (98%) that can comfortably seat two people and look like their petrol two-wheeler counterparts. There are no e-scooters like the ones seen in North America or Europe on which a rider can stand and go short distances. Electric cycle sales in India (popularly known as e-bikes globally) are also negligible and just beginning to happen. However, in the next 2 to 3 years, we will have products across all segments, ranging from e-scooters, e-motorcycles, and e-cycles from large and organized players. In four to five years, we can now confidently predict that around 30% of the two-wheeler market will be electric." Also Read:
India not considering buying Russian oil in rupee: Minister New Delhi: India has no plans to pay in rupees for the its public sector companies buy, Parliament was informed on Monday. India buys less than one per cent of its total oil imports from Russia. But western sanctions against Russia for its have given way to talk of a rupee trade for the oil and gas purchases. "At present, neither have any contract nor is any such proposal under consideration from Russia or any other country for the purchase of crude oil in Indian rupees," Minister of State for Petroleum and Natural Gas Rameswar Teli said in a written reply to the Rajya Sabha. He did not elaborate. State-owned has bought two parcels or shiploads of distressed Russian oil through traders at deep discounts. IOC bought 3 million barrels in each trade through European trader Vitol. Separately, bought two million barrels of Russian crude Urals through a trader. Western sanctions on Russia over its invasion of Ukraine have prompted many companies and countries to shun its oil. This has led to Russian crude being available in the market at deep discounts. To capture the opportunity, Indian refiners are floating tenders to buy such discounted oil. The tenders are mostly won by traders, who would have stocked inventories of the cheap Russian oil. Since 2020, IOC has had a term or fixed volume deal to buy crude oil from Russia's Rosneft. But, it rarely imported volumes under the term deal as the cost of transporting the oil from Russia made it uneconomical. But, discounts of USD 20-25 per barrel have turned the tide in favour of Russian crude and Indian refiners are lapping it up, sources said. The refiners are buying Russian crude on a delivered basis to avoid any complications that sanctions may lead to in arranging shipping and insurance. The sources said the trade with Russia is being settled through in dollars as the international payment mechanism has so far been kept out of the western sanctions ambit. Also, unlike the sanctions the US imposed on Iran over its controversial nuclear programme, oil and energy trade with Russia has not been banned. This essentially means that any country or company was free to buy oil and other energy commodities from Russia and use the international payment systems to settle the trade. This wasn't the case with Iran, which was cut off from the international money and security transfer system, SWIFT. Also, companies or entities investing or buying oil from Iran were sanctioned. IOC had in February 2020 signed a deal with Rosneft Oil Company to import up to two million tonne of oil via the Black Sea port of Novorossiysk. In 2021, the deal envisaged supply of up to 1.7 million tonne of crude oil but IOC bought just one parcel or shipload as the cost of transporting the oil made it uneconomical. In December 2021, it renewed the deal to buy up to two million tonne of crude oil in 2022 from Rosneft. Also Read:
Sanjiv Bhasin sees Nalco doubling in a year; offers a dark horse pick Sanjiv Bhasin, Director, , says he has been relatively very bullish on IOC and as two picks. They have added ONGC. They expect Nalco numbers to start reflecting the extremely bullish results. Three things, bauxite, aluminium and iron ore are going to be playing to the perfect side from here. Coal India. Nalco can also be huge outperformers. Bhasin sees Nalco even doubling from here in the next one year. Bhasin is also very bullish on the private banks like HDFC and Kotak. And will also buy OMCs on dips. Religare can be a . Once this insurance cum broking cum investment bank goes into the hands of Burmans, Religare can scale over 350 in the next one year. It is a bit of a shakeout which is on which you were mentioning for some time now. But the entire market is not seeing a broad-based sell-off backed by volumes and big sell figures. In fact, there were small buyers. But the frothy areas of the market may be undergoing a correction. Do you see some more shakeout before buying or will you become a buyer? Sanjiv Bhasin: That is the natural course. The midcaps and smallcaps had run way ahead of valuations and the bull market is in the mid and smallcaps. Do not make any mistake about that. And it is also telling you that we are in a global bull market. The Nikkei is up 1,000 points today, the NASDAQ, the S&P is above 5000. Yes, there will be this wall of worry which will say that markets will come down. But yesterday at a macro level, the inflation numbers were weak and growth was relatively high. I still think the largecaps and certain midcaps will again look attractive. We have seen a lot of profit booking in the PSUs, but that is where the real wealth has been created. So this is part and parcel of the market. I would expect the index to start outperforming and banks to join in. That has been a weak spot. Now, if inflation is lower, credit is expanding. Private banks are in a very sweet spot. So how are your trading ideas looking like right now? Sanjiv Bhasin: I have been relatively very bullish on IOC and Nalco as two picks. We have added ONGC there. We see the numbers from Nalco because their INR 8,000-crore capex now will start to reflect extremely bullish results. Three things, bauxite, aluminium and iron ore are going to be playing to the perfect side from here. Coal India. Nalco can be huge outperformers. I see the Nalco stock even doubling from here in the next one year. One cannot have it at INR 14,000 crore market cap and the type of performance which it has on dividend yields and so on. Nalco is a good pick over here. Keep your stop loss at INR 135. It could again scale back to 165 and beyond, depending on your horizon. Second, I am very bullish on the private banks even though they have underperformed. I like HDFC and Kotak. All the bonhomie underperformance is more or less in the price. We have seen the exit of large players who had to. Thirdly, I would be very
though they have underperformed. I like HDFC and Kotak. All the bonhomie underperformance is more or less in the price. We have seen the exit of large players who had to. Thirdly, I would be very bullish on the oil marketing companies and use this decline to buy. Like I said, you have to be selective in your stock picks. Indiabulls Real Estate is one stock which we recommended at 100. It has gone to INR 125. We are not aware of what the court verdict was, but I am very bullish on that stock over a period of time. Fourthly, I will give you one dark horse, Religare. Now, the Burmans have acquired a 25% stake. Their open offer is for 26%. You can imagine what it will be like when this insurance cum broking cum investment bank goes into the hands of Burmans. Every large group wants to acquire a financial firm. I see Religare scaling over 350 in the next one year. You cannot have it at 1.5 times price to book, given the advent of fresh capital and a fresh look management. What’s your opinion on Paytm? Macquarie has slashed the target price by over 50%. Sanjiv Bhasin: They are downgrading Paytm to INR 275. So, what goes in making a good brokering amount and creating fear when it is most needed, that is the attitude I have. I have invested and we are seeing pain in that. But like I said, PB Fintech, Zomato make up for that. For me to comment on Paytm would be slightly difficult till we get more colour and you are aware of the noise. Now, the stock is seeing that and Zee is seeing very strong hands buying. That is all I can comment on. On Macquarie, we will wait for HDFC Bank also to hit 2200. Then we will take both these stock recommendations with a pinch of salt. The surprising name in the MSCI inclusion list appears to be an old favourite of yours, GMR. And not only the airport business, but I gather even the power business which is another company, GMR Power. There is a lot of activity happening but what about GMR Airports? Do you still like the stock? Sanjiv Bhasin: Bhav bhagwan chhe (market knows best) is the Gujarati proverb. When I used to travel from Bandra to Nariman Point, the Gujaratis would say bhav bhagwan chhe , It was bhav bhagwan at INR 35 mein. But you woudn’t buy it and were always pessimistic about the debt. Look at the airports today. You should be proud of your nation building and growth. In Heathrow Airport, you have to stand for three and a half hours. In GMR Delhi Airport, it takes you five minutes. The beauty lies in the eye of the beholder. Aerocity is seeing rocking business. As a disclosure, this has been in our portfolio from the time it was INR 35. We do not intend to sell it. So please see where your recommendations are, where your money is. Stocks are jumping 40-50%. If you are in the right place, then you are making money. Bosch results are out today. About a month and a half back, Bosch broke out of its eight-year high range and got into new territory. Surely some correction is happening. It has crossed the 25,000 mark
results are out today. About a month and a half back, Bosch broke out of its eight-year high range and got into new territory. Surely some correction is happening. It has crossed the 25,000 mark now. I want to review your call on Bosch? Sanjiv Bhasin: Again, one of my old favourites at 12.5, 13, 15, 17, 18, and I gave a 25,000 target. A lot of the people who troll me on Twitter are laughing their way to the bank. This is a pedigree stock. Look at the way autos have reacted, whether it is Bajaj, whether it is Hero. Look at the numbers. OEMs are in the best spot. They invested almost $3 billion in Dresden for their semiconductor market. It continues to be gaining larger market share in India as a very big destination. Now, at 12.5 for a stock like this to double at 25,000, I cannot stick my neck out. But if you have it, just stay put, because good stocks do not come by design, they come by default. How are you looking at some of these cement stocks? Is there any interest? Sanjiv Bhasin: Cement is going through the roof. Look at the price. There is a cartel. 53% of market share is with five players. UltraTech is laughing his way to the bank with 138 million tons. And so is Ambuja and ACC who have been re-rated. And now we are seeing the highest amount of construction activity as the cold ebbs, because in the north, there was an embargo because of GRAP and other things. They are in the sweetest spot ever. Cement is our overweight sector, as is UltraTech, ACC, Ambuja, and on declines please add Dalmia Cement. But these three are top picks. And we think that they are only going to be further re-rated on the upside. In the last one month, from INR 450 odd, ITC stock has slipped to around INR 400. Is it getting to a good value zone? Once this 3.5%, 4% is done with, there would not be any other supply for a very long time. Would you get into ITC at this level when supply overhang is taking the stock lower? Sanjiv Bhasin: Yes. so there are two things which stand out in this. BAT for the first time coming to sell its stake. A, if BAT could sell whole hog, it would be a very big positive, because then the demerger of the cigarette business would be more in line with BAT being one of the largest players. It is a relative positive. But also, SoftBank is selling Paytm or some of their old holdings. A lot of the foreign private equity players or long term holders are encashing what they want in India. In a bull market, long term holders will definitely look at opportunities where they can reuse that cash for their own personal needs or reducing debt or whatever their other obligations, which in the short run may be negative because of the supply. But in the long run, if you expect BAT to come back and buy ITC, he will never get it at a discount. All this decline will see a little bit of oversupply. But if you want to get into a quality stock like ITC, then you cannot have asked for a better time. How are you looking at the entire consumption space? Are there
will see a little bit of oversupply. But if you want to get into a quality stock like ITC, then you cannot have asked for a better time. How are you looking at the entire consumption space? Are there interesting opportunities at the current juncture, despite acknowledging that maybe there has been a bit of a rural slowdown? Sanjiv Bhasin: Well, yes and that is evident in the earnings. And you have seen the guidance being slightly lowered, but are very optimistic on the coming back. You cannot have two wheelers go the way they have and not the others, the staple or discretionary events also pick up. I continue to think Britannia and Nestle perfectly fit that bill. People are missing the fact that the market is revolving around sectors. Who thought that IT and pharma will be at all-time highs, at a time when most were struggling about AI and the slowdown in the US? Markets are very uncanny. They like to pick up sectors which are most crowded and stay away and which are most avoided, they want to do the best. I still think Britannia and Nestle look to be the perfect fit. They will be giving longer term views given that both the numbers were reasonably in line. And the type of brand they possess, can be relatively outperformed in this consumption space nearby. On the other hand, your discretionary spend is seeing Maruti take the cake. Ashok Leyland is again my top favourite. Ashok Leyland and Wipro perfectly fit the bill in auto and IT and use any decline to buy. What really held out yesterday amidst the mid and small cap decline was the PSU profit taking. Valuation wise, they are still expensive and from the yearly peak it is not much of a correction which has taken place barring a few odd names here and there. You have always cautioned about the frenzy in some of the railway stock. Since selectively one should profit take what other than railways would you recommend profit taking within the PSU pack right now? Sanjiv Bhasin: Having spent 35 years in the market, I realise that every 10 or five years, when the new bull market comes, there are new leaders. This year, the leaders, the last one and a half years have clearly been defence, railways, PSUs, and they take the cake. They are just starting their rally. Even though valuations have been cheap, they still have not been exceptionally high. But in railways, definitely a lot of the good news is in the price. We know the capex, we know what type of attitude the government has towards increasing that. I would be a little cautious there. But, on the contrary, some of the metal plays can be looked at. A few spoke about pharma briefly. Have you analysed Biocon recently?. Glenmark went from INR 300 to INR 900 on their debt reduction spree. Could Biocon do that or will that be a bit challenging? Sanjiv Bhasin: Unfortunately, Mrs. Shaw has always over promised but under-delivered. Now, Biocon at INR 250 was a real good bargain. And we have all waited for that debt reduction, which will improve the return
Unfortunately, Mrs. Shaw has always over promised but under-delivered. Now, Biocon at INR 250 was a real good bargain. And we have all waited for that debt reduction, which will improve the return on equity. But it is yet to take off. We still think that Biocon should be in your portfolio but more weightage to Dr Reddy, Cipla, and Lupin. Lupin has been a doubler from INR 750 to INR 1600. Lupin is headed back to INR 2,200 over this year. So Lupin would be my top favourite there. Biocon is in our portfolio. But like I said, eating remains on the performance of the stock. It has to clear that 300 level, only then we will talk of wealth creation. I did have to ask you about Indiabulls Housing. The rights issue closes today. It is a sizable one of INR 3,600 crore. What do you think investors should be doing here? Sanjiv Bhasin: You should have booked out at INR 200 and subscribed to the rights. You got the opportunity. There are two corporates which are doing extremely well. Indiabulls Housing, which we had invested, we divested. But Indiabulls Real Estate, you cannot have a market cap of 6500 on some of the primest of locations. We know of the issue of the previous management is over. Embassy has taken over. Now there are clearances which will come ahead. Once the Embassy open-offer or whatever way they will, comes, there will be enough re-infusion of capital and coming to a professional group like Embassy, I would be very, very positive on Indiabulls Real Estate that is where you should be converting and putting your money. Indiabulls Finance, like I said, we will know more about who the actual largest shareholder is. As you know, there was no large shareholder even worth 1.5% that is what is going to be the unbundling. Similarly, I gave a call on Dhanlaxmi Bank, which I said can be a very good acquisition target given it has a market cap of just 1000 crore and no holder of more than 1.5%-2%. Markets are getting intrigued by where value lies.
Audi India opens new 3S facility in Raipur, Chhattisgarh Raipur: , the German luxury car manufacturer, inaugurated on Thursday a new 3S (sales, service and spares) facility in Raipur, Chhattisgarh. Located on Ring Road No 1, Sarona, the new state-of-the-art facility houses new car sales, a workshop facility and Audi Approved: plus, all under one roof. , Head of , said, “Chhattisgarh has immense potential and an appetite for luxury as well as pre-owned cars. We are happy to inaugurate a new 3S facility in Raipur that will cater to the region and nearby areas. Audi India is on a growth path and we will continue to expand as per market demand.” Spread across an area of 30,000 sq.ft. in four floors, the new 3S facility has a ten-car display and a five-bay workshop. It is also an e-tron dealership that houses a 22kW electric car charger. The facility includes a display for Audi Approved: plus cars also.. At Audi Approved: plus , every displayed and sold, undergo mechanical, bodywork, interior and electrical inspections at 300+ multi-point checks, thorough multiple-level quality checks, and a full on-road test to ensure customers’ peace of mind. Under the Audi Approved: plus programme, Audi India offers 24x7 Roadside Assistance and complete vehicle history before purchase. Additionally, customers can also avail easy financing and insurance benefits through the programme. Prashant Kesharwani, Dealer Principal, , said, “The city of Raipur is brimming with aspirations of luxury, and is home to several admirers of the Audi brand. We are very happy to take forward our association with Audi India with this new 3S facility. We will offer the very best of luxury and we look forward to welcoming our customers.” Audi India recently announced its retail numbers for Q1 2023. The brand with the four rings sold 1950 units in the January to March period witnessing a growth of 126% from the previous quarter.
Buffett's company trims its stake in Chinese EV maker BYD OMAHA: 's company has trimmed its stake in Chinese electric car and battery maker BYD for the first time since it bought the shares in 2008, an that has soared in value. Berkshire Hathaway said in a regulatory filing Tuesday with the Hong Kong stock exchange that it had sold 1.33 million of its BYD shares for roughly $47 million ($368.8 million Hong Kong dollars). Berkshire paid $232 million for the 225 million BYD shares it bought in 2008. By the end of last year, the value of those shares had ballooned to nearly $7.7 billion. The success of the BYD investment is one example of why so many investors follow Buffett's moves closely because he has a remarkably successful track record over the decades. BYD said in an earnings report this week that sales of its vehicles continued to climb in the first half of this year and help it increase market share, even as auto sales slowed in its home market of China. BYD said its revenue jumped nearly 66% in the first half of this year thanks to the rapid growth in its electric vehicle sales, and its net income more than tripled to $520 million (3.6 billion yuan). Berkshire said it owned about 7.7% of BYD before the latest stock sales, and that figure won't change much after the sales. Berkshire said its holdings of the Hong Kong-issued shares of BYD dipped slightly from 20.49% to 19.92%. In the past, Buffett and Berkshire Vice Chairman Charlie Munger have heaped praise on BYD Chairman and founder Wang Chanfu and said they were investing in him even more than in BYD's technology. Munger has said that Wang managed to accomplish several feats that seemed impossible at the time, including taking one-third of the lithium battery market away from Japanese manufacturers by 2010. Buffett even took the rare step of visiting a BYD factory in China in 2010 to demonstrate his support for the company. Hdidn't immediately respond Tuesday to questions about the BYD stock sale. Besides investments, Buffett's Omaha, Nebraska-based conglomerate also owns more than 90 companies outright including Geico insurance, BNSF railroad, several major utilities and an eclectic assortment of retail and manufacturing companies such as Dairy Queen, Helzberg Diamonds and Precision Castparts.
"Forcing Russia to sell oil at bigger discounts to India": US treasury official hails price cap policy on Russian oil New Delhi: Assistant Secretary for Economic Policy of the of Treasury, Eric Van Nostrand on Thursday hailed its country's decision to implement price cap on Russian after the latter invaded its neighbouring Ukraine and said that the decision made Russia sell oil at discounted rates to other countries, including India. "We know that the Indian economy has much at stake in the Russian oil trade, and has much at stake from the that the price cap is designed to avoid. The price cap's goals are to limit Putin's revenue and maintain global oil supply--essentially by creating a mechanism for India and other partners to access Russian oil at discounted prices," he said, speaking at a session organised at the Ananta Centre office aimed at discussing phase two of the price cap on Russian oil. "The price cap's goals are to limit Putin's revenue and maintain global oil supply--essentially by creating a mechanism for India and other partners to access Russian oil at discounted prices. The price cap's first year was a successful one by those standards: global oil markets remained well-supplied while Russian oil traded at a significant discount to global oil," he added. The US official underscored that the US and the have constrained Russia's options to sell oil to other countries. "This past summer and fall, we saw Russia's investments in new infrastructure to sell oil outside the price cap's jurisdiction begin to bear fruit, and the discount on Russian oil narrowed. In response, the United States and the Price Cap Coalition have reinvigorated our enforcement efforts and focused on constraining Russia's options to sell outside the price cap. Today, even the Kremlin has acknowledged that these efforts are forcing Russia to sell at bigger discounts to global consumers like India," he said. "Adoption and successful implementation of such a novel policy is an important diplomatic achievement, reflecting the unity of the Coalition opposed to Putin's war. Our engagement with Indian partners--in the public and private sectors--was an essential part of the process given India's critical role in the global oil trade," he added. The United States, other G7 countries and the European Union announced a price cap of USD 60 a barrel on Russian oil in late 2022 in response to Moscow's invasion of Ukraine in February of that year. In October 2022, the began imposing sanctions on tankers it suspected of carrying oil above the price cap, and has since designated about two dozen tankers. The cap bans Western companies from providing service such as insurance, transportation and financing for oil sold above the cap. The price cap seeks to cut Russia's ability to fund the war in Ukraine by reducing its oil revenues while also ensuring that global oil markets are well supplied. The West's sanctions have shifted much of Russia's oil trade from traditional customers
the war in Ukraine by reducing its oil revenues while also ensuring that global oil markets are well supplied. The West's sanctions have shifted much of Russia's oil trade from traditional customers in Europe to India and China, and have forced some shippers to turn to a so-called "shadow fleet" of ageing tankers, which the Treasury says cuts into Russia's revenues.
US warns companies over Russian oil price cap evasion via ESPO pipeline The U.S. Treasury published a warning to U.S. companies on Monday of possible evasions of the Russian petroleum price cap of exported through the Eastern Siberia Pacific Ocean (ESPO) pipeline and ports in eastern Russia. The Office of Foreign Assets Control ( ) at the department said it is aware of reports that ESPO and other crude oils exported via Pacific ports, such as Kozmino, may be trading above the USD 60 price cap imposed on Russia by Western countries, and that U.S. entities may have unknowingly provided services for those trades. The Group of Seven countries, including the United States, and the have placed the cap on Russian shipments of crude oil since late last year as part of sanctions on Russia following its February 2022 invasion of Ukraine. "These U.S. service providers may be unaware that they are providing covered services involving purchased above the price cap, as the non-U.S. persons involved in the exports may have provided incomplete or false documentation or used other deceptive practices," OFAC said in the warning, the first of its kind related to the price cap. Under the price cap scheme, companies in the countries and the EU are allowed to provide financial services such as transportation, insurance and financing services for Russian oil and oil products only if they are sold above the cap. OFAC said some tankers may be manipulating their automatic identification systems, a practice known as spoofing, to hide their calls at Kozmino or other ports. Spoofing can also mask ship-to-ship transfers to disguise the origin of Russian oil. The office said ship owners and other service providers can use records and attestations by oil market players that Russian oil they service was purchased below the cap to avoid penalties. Individuals or companies who evade, avoid, or violate the price cap could be subject to civil or criminal enforcement actions, OFAC has said. Rapidan Energy Group, an energy policy analysis company, said penalties could include fines. The warning told commodities brokers and traders that shipping, freight, and insurance costs are not included in the , but that failure to itemize such costs can be used to hide purchases of Russian oil above the cap. OFAC also recommended that traders retain documents showing that Russian oil and oil products were bought at or below the cap.
NTPC mulls 5.4 million tonnes coal import in first half of 2023-24 State-run power giant is planning to import around 5.4 million tonnes of coal to meet the supply shortage during the first half 2023-24 fiscal, was informed on Tuesday. "NTPC is planning to import around 5.4 million tonnes of coal for its group stations to meet domestic coal supply shortage during the first half of Financial Year 2023-24," Power Minister R K Singh said in a written reply to the on Tuesday. The price of imported coal is not comparable with the price of domestic coal as it has a higher calorific value. The pricing of imported coal is linked with for imported coal, source of origin and factors like ocean freight, insurance etc. which vary with the international demand-supply scenario. Every generating company imports coal as per its requirements. The cost of fuel including imported coal is passed onto generation tariff in accordance with regulations of appropriate , the minister explained to the . He stated that the ( ) monitors coal stock position of coal-based thermal power plants (TPPs) in the country on daily basis. As on March 5, 2023, the coal stock available at these thermal power plants is about 34 MT, which is sufficient to run the plant for 12 days at a requirement of 85 per cent , the minister said adding that this is about 50 per cent of the coal stocking norms issued by Central Electricity Authority. During this summer, the peak demand is expected to be around 230 GW, Singh added. has taken many steps to ensure that the peak demand can be met during this summer. The ministry has directed thermal power plants to not take any planned outage during April and May 2023. The ministry has approved a mechanism for the operationalisation of around 5,000 MW gas-based power plants for 18 days during the crunch period (Apr-May 2023).
RBI set to hike policy interest rates; raise inflation forecast tomorrow The ( ) is set to hike the policy repo rate by 40 basis points to 4.80% on Wednesday and increase the for the current fiscal to above 6% from its earlier projection of 5.7%, according to market analysts and economists. The six-member ( ) of the RBI is certain to hike the as has remained above the central bank's tolerance limit for the past several months. In a recent interview, RBI Governor Das said that the expectation of rate hikes in June is a "no-brainer". While the rate hike is certain, as RBI Governor Shaktikanta Das had indicated last month, the question remains on by how much? "We expect the RBI to hike repo rate by 40 bps in the June policy meeting. However, we should be open for a rate hike between 35-50 bps hinging on how the MPC wants to reach the pre-pandemic repo rate of 5.15% or around that mark by the end of August policy," said Suvodeep Rakshit, Senior Economist at Kotak Institutional Equities. Last month, in its off-cycle monetary policy review the central bank hiked the policy repo rate by 40 basis points or 0.40% to 4.4%. This was the first increase in the policy repo rate in nearly two years. The repo rate is the interest rate at which the RBI lends short-term funds to banks. Inflation has been above the RBI's 2-6% target band since the beginning of this year. As per the latest available data, 's Consumer Price Index (CPI) based inflation surged to an eight-year high of 7.79% in April. It has been above 6% since January 2022. Bank of America Securities said in a research note that the retail inflation is likely to be around 7.1% in May. CPI-based inflation is likely to average 6.8% during the current financial year, Bank of America Securities said. Considering the recent uptick in inflationary pressure, the RBI is likely to revise the inflation forecast for the current financial year to above 6%. In April, the RBI revised upward the inflation forecast for the current financial year to 5.7% from its earlier projection of 4.5% announced in February. According to Bank of America Securities, the RBI is likely to further raise its inflation expectation for the current financial year to 6.5%. The RBI is likely to do this upward revision in inflation projection either next week or in August. "Along with the repo rate hike, the RBI will also revise its inflation estimates higher, possibly indicating inflation remaining close to 7% for the most part of CY 2022," said Rakshit. "We expect the RBI to continue focusing on taking inflation and signalling its intent to continue raising rate and normalising liquidity, while not entirely losing it's on growth given the uneven nature of growth recovery," he said. Pitching for a need to hike policy rates, Churchil Bhatt, Executive Vice President, Kotak Mahindra Life Insurance Company, said, "Failure to contain the inflation genie should scare the markets more than the policymaker's fight against it. We expect the MPC to
Vice President, Kotak Mahindra Life Insurance Company, said, "Failure to contain the inflation genie should scare the markets more than the policymaker's fight against it. We expect the MPC to deliver a no-brainer policy rate hike of 25-40 (basis points) bps in June." According to Bank of America Securities, the RBI is likely to raise the policy rate by 0.40% next week and by another 0.35% in August. The RBI may increase the repo rate by another 0.40% next week. Apart from this, in the August review also, it can increase by 0.35%. If this does not happen, then the RBI can make up its mind to increase by 0.50% next week and 0.25% in August, Bank of America Securities said in a research note. (
Potential UAW strike could cut production, push up vehicle prices, analysts say A prolonged coordinated strike by the (UAW) union against the Detroit Three automakers could cut production by thousands, potentially pushing up vehicle prices and exacerbating supply-chain disruptions, analysts said. The auto industry is on edge as the current four-year contracts between the UAW and , Co and Stellantis for hourly U.S. workers expire on midnight Sept. 14, after which the union's chief has warned of a possible coordinated strike. New vehicle prices may rise by less than 2% if the strike lasts about two weeks, according to automotive consulting firm J.D. Power. "Everyone's going to see higher prices regardless of the company you buy from if it (strike) continues for more than two weeks," said Tyson Jominy, vice president, data and analytics at J.D. Power. He added that companies such as Toyota, Honda and Volkswagen may also benefit if the domestic brands quickly run out of inventory to sell. Jominy said the used car market, which quickly follows the underlying trends of the new market, may see a greater impact on prices if there are fewer substitutes for buying a vehicle. CFRA analyst Garrett Nelson said strikes at all three automakers would cut North American auto production by 150,000 units per week, resulting in higher vehicle prices as inventories deplete. That would mean an end to the trend of cooling vehicle prices in recent months, at a time when inflation continues to pinch U.S. consumers. "Even if the UAW continues to negotiate beyond its deadline, the lack of a deal and threat of a strike should discourage auto dealers from offering discounts on their existing inventory and drive an uptick in vehicle prices," J.P. Morgan insurance analyst Jimmy Bhullar said. Deutsche Bank previously estimated that a strike would hit earnings at each affected automaker by about $400 million to $500 million per week of production. GM and Ford are also in the midst of a multi-billion dollar EV transition and brokerage Wedbush estimates adoption of some major UAW proposals to result in an increase in the price of electric vehicles rolling out over the next 12 to 18 months. "(Ford CEO Jim) Farley and (GM CEO Mary) Barra both face some tough decisions ahead and find themselves with the back against the wall," Wedbush analyst Dan Ives wrote in a note. The resulting disruptions from any strikes are also likely to benefit EV leader Tesla, industry experts said. Some dealers are also expected to gain from shortages of vehicles. "The big thing to keep in mind (is) that (the) could help stabilize our margins, which is quite nice," U.S. auto retailer Lithia Motors' CEO Bryan DeBoer said during a July analyst call. Another large dealer, AutoNation, previously said it had built up inventories from domestic manufacturers, which should provide some cushion. However, UAW president Shawn Fain rejected the idea that worker wages were responsible for auto prices going up in the
up inventories from domestic manufacturers, which should provide some cushion. However, UAW president Shawn Fain rejected the idea that worker wages were responsible for auto prices going up in the last few years. In a video released on Thursday titled "Here's what the Big Three and the corporate media's NOT telling you about car prices," Fain said "corporate greed" was responsible for rising car prices. "In the last four years, the average price of a new car is up 30%, meanwhile auto worker wages have risen a meager 6%," Fain said.
FADA raises concerns over high inventory levels in automobile industry ' apex body on Friday voiced its concern on the high inventory level and said it is planning to take up the matter with the . At the third edition of the Finance and Insurance Summit 2024 here, Federation of Automobile Dealers' Association (FADA) President Manish Singhania also demanded continuity in the FAME-3 policy and in infra push. Singhania said in 2018-19 was a very bad year for the automobile dealers in the country when 280-odd dealerships had gone out of business, and FADA does not want that to happen again. "We are cautious about the inventory levels because anything above 30 days starts hitting the dealerships. We follow a cycle where the dealer takes funds from banks, which are paid back with interest in 60 days. "But the OEMs are increasing this period from 60 to 90 days. While the dealers are getting one month extra, this allows the OEMs to dump more stocks because they will say, you have got three months' time to rotate that inventory at the dealership which was initially two months. That is a cause of worry for us," Singhania told reporters on the sidelines of the event. Last year, the inventory levels had gone up to 65 days and it was a big cause of worry for auto dealerships and "we collaborated with SIAM and subsequently were able to bring it down and the market also supported very well". "But this time, we are already at the peak. If it increases further in June, we will approach SIAM. We are at a very high level and crossing those higher points will be very difficult. In fact, matching them would itself be an achievement for the ," he said. "We do not want to go back to inventory levels that were touched in 2018-2019. We need to discuss this openly with financiers," Singhania said. Among the budget expectations from the new government, Singhania said FADA wants the work on infrastructure push to continue. "Second, our entry-level segment has not been doing well for the last four years and we have been selling automobiles like crazy, especially for the upper middle and upper class. But why in the entry-level segment India should be left behind in this story?" he asked. The GST is 28% GST on entry-level passenger cars or two-wheelers. People have to move from point A to point B, he said, adding, "We have made a representation for the reduction to GST. We also want continuity of FAME-3 as electric vehicles are doing well and have an interim package till July 31." He also urged to offer more support, including training and upskilling dealership finance and insurance personnel, to enhance their effectiveness and contribute to dealership success.
Bengal to finally hike traffic violation fines as per Motor Vehicles Act With an aim to reduce the number of , the government has decided to increase as per the , a notification has said. The Centre had increased the fines in 2019, but the West Bengal government had not imposed them so far considering the "difficulties faced by the common man". A person driving a car without a licence will have to shell out Rs 5,000, up from the previous fine of Rs 500. Similarly, one driving recklessly with have to pay a fine of up to Rs 4,000, which was Rs 400 earlier, the notification issued by the on Tuesday said. One has to pay an amount between Rs 500 and Rs 1,000 for violating driving rules on the road, while Rs 2,000 will be slapped for lapsed car insurance, and Rs 5,000 for racing on the road. A fine of Rs 10,000 will be slapped if any vehicle plies sans road permit, and Rs 5,000 if it's not registered. A biker will have to pay Rs 1,000 for riding without a helmet. One will be fined between Rs 2,000 and Rs 4,000 for honking in a silent zone, it said. According to the notification, fines have been increased for a total of 26 traffic violations. "The new guideline will come into effect soon. Traffic police personnel and motor vehicle inspectors can collect the fines. The hike will on one hand increase revenue of the government, and on the other, lead people to follow rules," he said. Also Read:
G-7 price cap on Russian oil tested as India pays record premium Refiners in India are buying cargoes of at the widest premium above a G-7 imposed cap since the curb was introduced, highlighting the market’s importance to Moscow and a gap that may intensify scrutiny of the controversial mechanism. Crude processors in the key importer paid an average of USD 86 a barrel for Russian shipments in August, according to the Ministry of Commerce and Industry. That’s the biggest spread in dollar terms since the USD 60-a-barrel limit came into force after Moscow’s invasion of Ukraine in the first quarter of 2022. Oil rallied in the third quarter as OPEC+ leaders Russia and Saudi Arabia choked off some supply to tighten the market. That rally lifted benchmark prices even further above the price set by the cap — which is designed by the Group of Seven to meet the twin needs of seeking to limit the Kremlin’s crude-based income, while at the same time keeping Russian flows on the global market. The cap is constructed to bar access to critical western financing and insurance services for crude cargoes if shipments are valued above USD 60. Beyond that level, they are permitted, as long as buyers and sellers make alternative arrangements. India, a vast oil buyer, has been adept at doing so. US Treasury Secretary Janet Yellen recently warned that the US is preparing to crack down on evasion of the G-7 cap on Russian oil, as recent market prices signal the mechanism may no longer be working as hoped. The US is looking at enforcement very carefully, Yellen told the Wall Street Journal. One of the architects of the plan, meanwhile, has proposed steps to fix the program. Ben Harris, a former senior official at the US Treasury who helped design the cap, said the G-7 and European Union need to both raise the price level, and crack down on Russia’s evasion. Since Indian refiners buy crude on a delivered basis, the responsibility of attesting it was bought below the cap falls on suppliers, according to Vandana Hari, founder of Vanda Insights. While some Indian banks did withdraw from transactions as prices broke through the cap, others stepped in, with some payments in UAE dirhams, she added.
Act against dealers boosting EV speed illegally: Ministry Taking cognizance of Chandrapur deputy RTO Kiran More’s report on dealers in Chandrapur reportedly to increase its speed, the (MVA section) has directed all transport departments (states and Union Territories) to take action against all those who violate (CMVR). Early this year, More had brought this grave violation by e-rickshaw dealers and owners to the notice of transport commissioner’s office in Mumbai which then instructed the RTOs across the state to launch a drive against that had undergone alterations without the approval of certifying agencies. TOI had reported how batteries of the vehicles were tampered with by adding a switch for speed variation, which had led to increase in speed beyond 40kmph. Even Nagpur city and deputy RTO East led by officiating RTO Ravindra Bhuyar and inspector Anand Mod had launched a drive and detained over 50 e-vehicles after they were found plying at more than 40kmph speed. Now, in a letter, MoRTH’s under-secretary SK Geeva stated that it has been brought to the notice that many dealer showrooms have mushroomed across India which indulge in sale of battery operated two-wheelers in contravention to the provisions under CMVR 1989. As per MoRTH’s observation, many manufacturers and dealers are supplying higher battery capacity models which are plying with top speed ranging from 40kmph to 55kmph without type approval, insurance and vehicle identification as per norms. It is apprised that Rule 2(u) of the CMVR, 1989 defines battery operated vehicles. Further, two-wheeled battery-operated vehicle shall not be deemed to be a motor vehicle if all the following conditions are verified and authorised by any testing agency specified under Rule 126 of CMVR 1989. It has further asked them to check violations in EVs. As per the Central Motor Vehicle Rules, e-bikes with a battery capacity of less than 250 watts and a speed limit of 25kmph are exempt from registration process, including the motor vehicle taxes. But to avail this benefit, the vehicles must have to be procured from government-appointed authorized agencies. It had also come to fore that many e-bikes dealers, who are not authorized to sell battery operated two-wheelers with capacity of more than 250 watts, were illegally selling them. We found that several manufacturers through local dealers are illegally selling the e-bikes and later increasing the battery capacity to increase speed and range. Read More:
Insurer liable to pay compensation to spare driver if there is only claim under policy, Karnataka HC BENGALURU: The insurer is very much liable to pay compensation in respect of a under section 147 of , if there is only one claim under the policy, the Dharwad bench of the has ruled in a recent judgement. "However, if there are two separate claims in respect of driver and spare driver unless additional premium is paid the insurer may not be liable to pay for both the drivers. If the claim is in respect of only one driver even if he is not actually driving at the time of the accident still the insurer is liable to pay under Section 147 of as a statutory liability," justice HP Sandesh observed in his order while upholding the orders passed by commissioner for Workmen compensation in Haveri district. On February 28,2011, two orders were passed by wherein Rs 3,26,410 compensation with 12% interest was awarded vis-a-vis claim petition pertaining to death of Shamiulla and compensation of Rs 3,99,345 with 12% interest was awarded in claim petition pertaining to death of Irfan, who also happens to be Shamiulla's son as well. Both of them had died on May 26,2009 when the lorry in which they were traveling and being driven by Majju Majjumeerpasha, another son of Shamiulla. The insurer company had challenged the verdict. The contention was that that the Commissioner has blindly held that Shamiulla was the second driver in the vehicle when the claimants had failed to produce any documents to show the relationship of employer and employee between the deceased and Nasrulla Shariff, owner of the vehicle and also failed to produce the driving licence of the deceased, arguing that itself goes to show that the deceased was travelling as a passenger in the vehicle at the time of the accident. As regards to Irfan, the insurer claimed that there was no document was produced to show that he was working as a cleaner and the driver of the lorry is not examined in the case to prove the case of the claimants. According to the company, the only inference could be drawn is that Irfan was traveling as a passenger with his father. However, justice Sandesh, after perusing records, noted that the owner of the vehicle had claimed that the deceased were working for him. "No doubt, in the cross-examination, it is elicited that no document is obtained from the owner to show that both of them were working with him but owner himself made statement before the police on the next day of the accident , that both of them were working with him and in order to rebut the same, insurance company has not examined the owner of the vehicle which was involved in the accident and hence the very contention of the Insurance Company that the insurance company is not liable to pay compensation in respect of the spare driver cannot be accepted" the judge further observed while dismissing the appeal filed by the insurance company. In addition, the separate appeal filed by the family members of the
of the spare driver cannot be accepted" the judge further observed while dismissing the appeal filed by the insurance company. In addition, the separate appeal filed by the family members of the deceased was also rejected by the judge.
Kia Sonet has lowest maintenance cost in compact SUV segment: Frost & Sullivan New Delhi: , India’s top Growth Advisory Company, released its Total Cost of Ownership Benchmark analysis, revealing Sonet to have the lowest in the Compact . While the Model Maintenance Cost is 14% lower, the Petrol Model of Sonet takes it further with a 16% lower Maintenance Cost than the segment average. The analysis further reveals that the Diesel Model of Sonet tops the segment with a complete value-for-money package. While the Diesel Model’s total cost of ownership comes out to be 10% lower than the segment average, making it the best in the segment, the Petrol variant emerges as the second best with 4% lower TCO than the segment average, closely following the segment best. Furthermore, the analysis suggested that the Residual value of both models is 3% higher than the segment average while being amongst the best in the segment. The comprehensive analysis evaluating 5 Petrol and 3 diesel competition models against Sonet encompassed the total cost of ownership, comprising Initial Acquisition Cost, Residual Value, Maintenance Cost, Finance and Insurance Costs, and Fuel Expenses. Frost & Sullivan’s analysis also revealed that the Scheduled Maintenance cost of Diesel Sonet is lower by 17% compared to the closest rival and 23% compared to the segment average. Regarding Petrol Sonet, the figure is over 7% and 28% lower than the nearest rival and other competition models, respectively. Considering a 10,000 km average annual distance travelled, among other methodologies, the analysis states that the Diesel variant’s Fuel Economy is the best in the segment, standing at 6% lower than the segment average. One of the improvement areas for the Sonet is the fuel economy in the Petrol Model, where it holds the 3rd position and closely follows the segment’s bests. The analysis further affirms that the Initial Acquisition, Finance, and Insurance costs of both models are lower than the segment average. According to the Frost & Sullivan spokesperson, “We analysed the overall cost of ownership trends of the compact SUV segment. The comes out to be the most value-for-money proposition with lowest maintenance cost in the segment, which is a challenging accomplishment.” Hardeep Singh Brar, National Head Sales & Marketing, Kia India, said, “This transformation underscores our commitment to not only deliver exceptional quality and features but also ensure that our customers enjoy an unparalleled ownership experience with the added advantage of cost-effectiveness. We believe in setting benchmarks, and Sonet's recognition for its low cost of ownership by Frost & Sullivan is clear evidence of our steadfast dedication to redefine industry standards and cater to the evolving needs of our discerning customers.” Key Highlights from Frost & Sullivan’s Analysis: ·Maintenance Cost: Best in Segment for both Petrol and Diesel models Petrol Model: 16% lower than the segment average Diesel Model: 14%
customers.” Key Highlights from Frost & Sullivan’s Analysis: ·Maintenance Cost: Best in Segment for both Petrol and Diesel models Petrol Model: 16% lower than the segment average Diesel Model: 14% lower than the segment average ·Total Cost of Ownership: Sonet Diesel: Best in Segment (Lowest TCO) with complete value for money package in Diesel; 10% lower than the segment average Sonet Petrol: TCO lower than segment average & 2nd Best in segment; 4% lower than the segment average ·Residual Value: Among best in the segment with 3% higher Residual Value than the segment average ·Fuel Cost: Sonet Diesel: Best in Segment in the segment. 6% Lesser than the segment average Sonet Petrol: amongst the top 3; Closely following the bests ·Scheduled Maintenance: Sonet Petrol: Schedule maintenance cost is 7% lower when compared with closest rival and 25% lower with regards to segment average. Sonet Diesel: Schedule maintenance cost is lower by 17% when compared with closest rival and 24% with regards to segment average. Lesser parts replacement frequencies helping Sonet to keep lower maintenance. Frost & Sullivan, a global analytics and advisory firm known for their industry intelligence, insights, and advisory services to drive growth, did the analysis keeping various parameters in mind. The key parameters which the firm considered are: ·Vehicle Segment: Compact SUV ·Coverage: Metro (New Delhi) ·Competition Model: 8 (5 Petrol and 3 Diesel) ·Insurance: Comprehensive and Third Party ·Motor Vehicle Tax: Taxes vary according to Engine Capacity and Fuel Type ·Finance cost: Loan and Interest rates (5 years of loan tenure considered) ·Target Customers: Individuals and Fleet Owners ·Considered 10,000 km average distance travelled in a year ·Vehicle prices procured from respective showrooms of competitors ·Comprehensive insurance policy is considered for benchmarking purposes. Insurance cost is procured from the respective Insurance companies ·November 2023 fuel prices are considered as the base price. ·ARAI (Automotive Research Association of India) specified mileage taken for fuel cost calculation over the 5 years ·Component replacement period for Schedule and Non-Schedule Service considered to calculate number of replacements during specified years. ·For residual value calculations, various online portals were referred and primary discussions with leading independent used car dealers were conducted. Kia Sonet was launched in India in September 2020 and has received an overwhelming response from customers, with over 3.65 lakh units sold to date in domestic and export markets. The refreshed Sonet in a new Avatar is slated to debut on December 14, 2023.
Park+ and goEgoNetwork tie up to deploy EV charging stations across India New Delhi: Car parking solutions startup for car owners has announced its collaboration with , network today to deploy EV charging solutions in India. Under the collaboration, a network of EV charging infrastructure will be set up initially in five cities, starting with Delhi-NCR, and will cover the top 20 cities in the next couple of years, the companies said in a joint statement. With this collaboration, the EV users will be provided with the convenience of charging infrastructure in their residential society, office, mall, etc. It will further provide commercial establishments, residential apartments, tech parks and public parking spaces with reliable EV charging solutions in their premises. Amit Lakhotia, Founder & CEO, Park+ said, “Park+ is committed to bringing delight back to car ownership - by building an integrated ecosystem of all car-related services. Low penetration of EV chargers is the biggest factor that discourages potential EV customers from buying one. With our unique real estate access, large demand generating consumer base, and strong technology stack, we are confident of solving this problem in collaboration with our partners.” According to the company, the Park+app allows access to all key elements which make their car ownership experience hassle-free – including parking, car health and maintenance, car insurance, FASTag, PUCC, traffic challans, and more. Dheeman Kadam, Co-founder, goEgoNetwork, said, “Charging infrastructure is one of the key barriers of EV adoption. With this initiative, we hope to provide consumers easy access to . This is also in tune with the goEgoNetwork’s vision of empowering EV owners with a wide network of charging solutions, in close proximity to wherever they go.” The OCPP (Open Charge Point Protocol) certified company by OCA (The Open Charge Alliance), goEgoNetwork has been providing EV charging solutions to both residential and public spaces alike across the length and breadth of India. Joining hands with Park+ will furthermore help the homegrown company to equip the modern-day EV commuters with both safe parking and efficient EV charging solutions in one go, the release stated. Also Read:
Tata Motors Finance partners with Fiserv to scale up lending services with global technology New Delhi: Limited, a leading automotive financier, is partnering with , Inc., a leading global provider of payments and financial services technology solutions to fortify its capabilities and enabling top-notch customer experiences through a new partnership with Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology solutions. To advance its digital strategy and keep pace with rapidly changing customer expectations, Tata Motors Finance has implemented from Fiserv, a micro-services-based platform-as-a-service with a set of APIs that supports orchestration of the digital user experience. “We are delighted to collaborate with Fiserv to unlock avenues for innovative last-mile service offerings for our key customers,” , MD & CEO of Tata Motors Finance, said. “The integration with FirstVision empowers us to offer on-tap digital finance solutions to commercial vehicle operators, covering their operating expenses like fuel, payroll and taxes, lubricants, tolls, insurance, spare parts, repairs, and tyres. Furthermore, the cutting-edge tech platform will help us introduce bespoke new age digital products that solve dynamic cash flow requirements of the logistics industry,” he said. The flexible architecture, scalability, and open APIs of FirstVision will enable Tata Motors Finance to easily and cost efficiently develop and launch new products to the market. Comprehensive features like customer management, seamless lending, collections modules, and rewards capabilities will streamline the company’s digital operations and enhance customer experiences while helping to ensure compliance requirements are met. “Financial institutions in India remain at the leading edge of digital transformation, and the right combination of capability, infrastructure, personnel and security enables them to adapt, differentiate and operate more efficiently while providing a transformative experience to customers,” , executive vice president and head of at Fiserv, said. “Our partnership with Tata Motors Finance underscores the reach of digital transformation in India, driving financial inclusion at scale with the latest global technology.”
E-mobility in Visakhapatnam, Tirupati gets BEE push VISAKHAPATNAM: The Union power ministry-led has given its consent to the energy department to retrofit existing engines of 200 auto rickshaws in Tirupati and 100 in Visakhapatnam with electric kits and swappable batteries. As a pilot project, three internal combustion engine autos were converted to electric in Tirupati and have been given to local auto drivers for testing performance. These auto drivers could save 5,000 per month when compared to diesel and petrol autos. According to these drivers, there is low maintenance and zero pollution. Electric mobility is a major alternative to IC engines. Apart from the lower operating cost, helps reduce emissions and import dependency of fossil fuels. Meanwhile, the New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) has identified 4,000 locations for setting up charging stations in Andhra Pradesh. As many as 10 developers have registered for the establishment of these charging stations. NREDCAP has also formulated a scheme to provide electric bikes to government employees on a monthly installment basis. It has entered into an agreement with two banks to provide loans to government employees under this scheme. The scheme was initially launched in Krishna, NTR, Eluru, Bhimavaram and Rajahmundry districts. Electric two-wheelers will be provided on a monthly lease inclusive of a comprehensive insurance that will be deducted as EMI from the volunteering government employee's account. The electric two-wheeler will carry a standard warranty of three years against any manufacturing defect. Batteries too will carry warranty till three years or 60,000 kilometres, whichever is earlier. Power utilities in the state took up the ' ' campaign in June 2021 to spread awareness on the benefits of e-mobility and charging infrastructure. State energy secretary B Sreedhar said the 'Go Electric' campaign will address both challenges - high dependence on crude oil imports and air pollution - being posed by the existing fleet of vehicles.
Maruti Suzuki's Shashank Srivastava on how the god of small cars had its big bang moment with SUVs, and where it's headed next For Maruti, small spelt big for decades when it led the market with its entry level cars and hatchbacks. The company, , reincarnated in 2016 as a big-car maker with its first SUV, the Brezza, which was a success that birthed more. How was it able to anticipate and capture the new craze for among Indian buyers, and where is it headed now? , senior executive officer, marketing and sales, , spoke to ET Online about how the auto major journeyed from small cars to SUVs, what all it is doing to zoom ahead, the future of its small cars, and more. Edited excerpts: Q. Maruti has had runaway success with its multiple SUV models. When did you plan for it and how did you go about capturing the ? A: One of the big strengths, which has resulted in our continued dominance in the passenger vehicle space in India, has been Maruti Suzuki's deep understanding of consumer requirements and trends. For the SUV space, we saw the trend early. We brought in the prototype, the show model of the Brezza, way back in 2012 at the Auto Expo, though the actual launch happened in 2016. Since then, the entry SUV space has climbed up hugely. It was about 4% of the market. Today, it is 25% plus. But it started off and zoomed up, all thanks to the Brezza. We anticipated that trend. The rapid pace at which the SUV has expanded, especially in the last three years, just around the Covid and after, has, I would admit, taken us by a little surprise. We had just one SUV, the Brezza, in a space where there are 47 other brands competing. Our market share in 2022 in the SUV space was 8.5%. If you take the financial year 2022-2023, our market share in SUV was just 10.5%. In the non-SUV space, Maruti Suzuki has always been really great in terms of market share. It is now about 65% in the non-SUV but when you combine it with that 10.5% of SUV, it falls below 45%. So, to meet our target, which is to achieve 50% share of the market in the medium term, we need to increase our market share in the SUV space from 10.5% a year ago. It has already doubled now. We have four SUVs, and with that we can become the No. 1 SUV manufacturer. If you look at the first half of 2023, we are the No. 1 manufacturer of SUVs. In a very quick time, our market share in SUVs has more than doubled from last year to almost 22% now. Q. How did you come up with the whole building a portfolio approach? What was it like, the strategy? A: As I said, we had one vehicle among 47 competing brands. Clearly, we needed to strengthen the portfolio, especially in the mid-SUV where we had no vehicle. So, we brought in the Grand . But when the party is already on and you come in late, your entry must be marked by something special. So, we had the hybrid technology, the AllGrip technology, in the Vitara and it has done so well. Same with Fronx. It is meant for the who does not want conventional small SUVs, whether
special. So, we had the hybrid technology, the AllGrip technology, in the Vitara and it has done so well. Same with Fronx. It is meant for the who does not want conventional small SUVs, whether it is the Brezza or the Venue or the Sonet. Fronx has a different shape. That's why its tagline is "The Shape of New". It is fresh, and has a lot of tech and features. That's what the new urban consumer wants. We identified these white spaces within this very congested market space of SUVs. We could find out a few and that is how we could succeed, of course, backed by a great network and the trust factor. All that helped us become the No. 1 SUV maker in the first half of last year. Q. What was the one big reason for this consumer shift from a sedan or a hatchback to SUV? A: First of all, the 'buying thought', the criteria of purchase. today is more aspirational. Earlier, it was largely functional. Functionality, price, value, cheaper spares, lower maintenance and running costs... these used to be the key criteria for buyers. But they shifted as India's economy grew. In the new India, which was more urban, tech-savvy and aspirational, a new customer has emerged. With that came the liking for a new body type which signifies some sort of higher status, the presence on the road, which indicates you have reached a certain stage in life. As the economy grew, the market started shifting towards a slightly higher price, and at that time, SUVs were slightly higher priced. At the entry level, SUVs now are overlapping with premium hatches and entry sedans which means there is a cross-consideration for the SUVs, which was earlier not there among those who wanted to buy a premium hatch and an entry sedan. Q. Are there different trends for SUVs , in terms of consumer preferences and buyer behaviour, in tier II or III towns compared to tier I cities? A: Yes, absolutely. The preference in the smaller towns is, and earlier also it used to be, for diesel SUVs. Earlier, SUVs had a large percentage of diesel. Even today in the mid-SUVs, you have a large percentage of diesel, around 50% or so. But entry SUVs are now largely petrol. In 2019, about 88% were diesel. So, it is now changing. Another trend is that larger SUVs sell more in urban areas than in the rural ones. I am not talking of the Bolero or Scorpio type of vehicles, but the mid-SUV range of vehicles like the Seltos and the Grand Vitara. Lately, every year the rural growth had been higher than urban growth except in the year of 2013 when the urban growth was higher than the rural growth. One of the reasons is the larger urbanisation which I can call rural urbanisation or ‘rurban’. In terms of volumes still around 70% is urban, while 31-32% is rural. In our case, about 43% is rural. Q: How do you manage to protect your margins while running heavy discounts? A: Margins would get affected obviously because you have a higher sales promotion level in this period . But remember, sales promotion, etc, make up roughly
margins while running heavy discounts? A: Margins would get affected obviously because you have a higher sales promotion level in this period . But remember, sales promotion, etc, make up roughly 2-2.5% or slightly less of the total cost structure. Marketing spends are around 1.2-1.3%. The major expense for any auto OEM is material cost, which is about 75% to 77% of the total cost structure. If the material cost comes down, then it sort of compensates for any other increases that you may have on sales promotion or marketing spends. On the other hand, even if you reduce your sales promotion and marketing spends, I am talking about the 2.5% and 1.3%, if something happens adverse on the 75-77% of the cost element, which is the material cost, it generally cannot compensate. That's why profitability for auto OEMs, clearly a lot of it, depends on the material cost movement. It turned adverse in the last two-and-a-half years, and that's why you saw a lot of price increases in the industry. Q: The graph has been quite volatile for hatchbacks. What happened there? Do you think people will further gravitate from SUVs to something else, but not ever come back to the hatchback? A: The peak for hatches was in the financial year 2017-18, which was 15,58,000 units. It came down a bit to 15,52,000 in the next year. Subsequently, it kept on reducing. In 2021, it came down to 11,60,000. Then, the next year, it went up by 16-17% to 13,42,000. Last year, it has come down again, estimated at 11,95,000 units. The hatches on the higher side will actually see a growth this year. My theory is that the decline in hatches has been due to the diminishing affordability. Consumer incomes in this segment did not go up as much as the prices did. Prices went up due to commodity price increase, regulatory stringency, the insurance road tax going up, the registration tax going up, and, of course, some higher-level features which consumers are preferring even in the smaller cars. For these reasons, the prices went up, but the affordability came down. I think, going forward, you might see more stable prices of small cars. And if the income level of the consumers too goes up in this segment, you could see the affordability factor getting better and that can actually push the graph back up. Q: Bharat NCAP ( New Car Assessment Program ) is here and the competitors are also marching with five stars. What is Maruti Suzuki doing about safety? A: I think there is no car which has so far been tested as part of Bharat NCAP. So, I do not know who is marching with what. But as far as safety is concerned, it obviously is a very high priority for us. Maruti Suzuki meets not just all the safety norms; we go beyond. There are some features of safety, active as well as passive, in our cars which are not available in respective segments. For example, an HUD (heads-up display) in a Baleno or a 360-degree camera in a Brezza. These are very new factors, and very good for active safety. Also, we
are not available in respective segments. For example, an HUD (heads-up display) in a Baleno or a 360-degree camera in a Brezza. These are very new factors, and very good for active safety. Also, we believe safety is not just about engineering of vehicles. It is also about enforcement, education and engineering of the roads as well. Q: How do you see the market demand coming for the current year? How would it pan out? A: We are still doing the research before we take a definite position. Flattish, single-digit small growth may be expected. There are a couple of reasons why they are saying it would be flattish even though you expect 6.5% growth projection for GDP. The base is high because at the beginning of the last year you had about 10 lakh pending bookings in the industry, and therefore the long waiting periods for that pent-up demand. Also, the supply chain was disrupted post-Covid semiconductor issues. That is expected not to be there. So, the cushion for additional production has already happened, and since July it is becoming more normal. The pending bookings will shrink by almost 5 lakh. So, that buffer of 1 million pending bookings will not be available. Second, the stock level at the beginning of the last year was about 1,10,000 in the industry and is expected this year to be much higher. Currently, it is about 3,00,000 plus. That buffer of channel inventory will also not be there. So, these couple of factors could be responsible for a flattish growth. But, not to forget, some fundamental factors can also be in play such as inflation weighing down on sales.
Saving Suez: As Red Sea attacks threaten global trade, what it means for India The strait of Bab-el-Mandeb, which means the gate of grief in Arabic, is living up to its name for shippers and traders across the world, as it turns the Israel-Palestine war into a global economic problem. For weeks, ships transiting the strait, a choke point in the Suez Canal, have been under attack from the Houthis, a group of highly trained, Yemen-based, Iran-backed militants with access to an array of sophisticated naval artillery. The attacks are part of the group’s offensive against Israel’s bombardment of Gaza. At least 10 of the world’s biggest shippers and one oil supermajor have decided to avoid the canal, a passageway for more than 20,000 ships a year, which account for 12% of global trade, 9% of oil demand, 6% of LNG imports and 30% of container shipments. More than 300 ships have taken a detour of 6,000 nautical miles around the Cape of Good Hope this week. A chunk of shipments, especially closer to the Red Sea ports will move to roadways. This has led to an increase in transit time, shipping rates and insurance premia, and threatens to send production schedules across the world awry. An Indian-flagged crude oil tanker in the Red Sea was attacked by a drone fired by the militants. On Saturday, a commercial tanker, MV Chem Pluto transiting through the Arabian Sea caught fire after being hit by a drone. No one has yet claimed responsibility for the attack. ET spoke to ship owners, exporters, trade and industry bodies and insurers about the crisis. They all hope it will be short-lived, especially with the US setting up a task force to protect shipments. Many fear that, if prolonged, the crisis would destabilise shipping rates that fell just recently after reaching dizzying highs during the Covid years. It will also add to inflationary pressures that are squeezing economies across the world. “A total of 314 vessels were diverted between December 19 and 22,” says Dominique Nadelhofer, spokesperson of Kuehne +Nagel, one of the world’s biggest freight forwarders. “A week ago, that number was 5. So the situation is very dynamic.” However, according to a statement from the Suez Canal Authority, more than 2,128 ships transited the canal between November 19 and December 17, and only 55 had taken a detour. Each detour around the Cape of Good Hope stretches transit time by 10-12 days. This increases costs and even the requirement of vessels. A round trip between India and Europe, for instance, takes 56 days and 8 vessels. If the trip extends to 63 days, an extra vessel will be required. The prices are inching up — Brent crude rose by 1.2% on Wednesday. Freight rates have gone up, too. “We have seen an increase of up to 40% in on-the-spot freight rates over the last three and a half weeks,” says Christian Roeloffs, CEO, Container xChange, an online marketplace for containers. “Over the last two weeks, we have seen an uptick in prices of secondhand containers,
three and a half weeks,” says Christian Roeloffs, CEO, Container xChange, an online marketplace for containers. “Over the last two weeks, we have seen an uptick in prices of secondhand containers, especially in northern Europe, because the industry expects some form of tightening of supply as the region is notoriously import-focused. More containers are arriving from China than departing again. This leads to container scarcity.” Insurance premia are also going up. “Insurers charge vessel owners what are called war insurance premia if vessels are deployed in or near war areas. These are quoted as a percentage of the vessel value and have to be ultimately borne by shippers,” says Roeloffs. An insurer says, on condition of anonymity, that in the past, shippers had to pay a 0.5% breach or additional premium when a ship got attacked. Nick Shaw, CEO of London based International Group of P&I Clubs, says the Houthi attacks will have no impact on normal protection and indemnity insurance. INDIA CONNECT India’s connection with the Suez Canal stretches back to its crisis in 1956, when the country’s first prime minister Jawaharlal Nehru took the lead to mobilise global opinion to help Egypt’s president Gamal Abdul Nasser thwart an invasion from Israel, Britain and France. It resulted in an enduring partnership that formed the foundation of the Non-Aligned Movement. In March this year, Egypt and India announced that Cairo was planning to allot land for Indian industries in the Suez Canal Economic Zone (SCEZ). “About 65% of India’s crude oil imports in FY2023, worth USD 105 billion, likely passed through the Suez Canal,” says Ajay Srivastava, founder of Global Trade Research Initiative, Delhi. “In terms of overall merchandise trade with Europe and North Africa, India’s exports and imports in FY2023 were USD 106 billion and USD 98 billion, respectively. Approximately 50% of these imports and 60% of exports, totalling a trade value of USD 113 billion annually, may have utilised the Suez Canal route,” he adds. India exports low-value, containerised goods like machine parts as well as low-end textiles to Europe via the canal. According to the latest data from the Suez Canal Authority, about 9% of total cargo passing the canal in 2019 originated from or ended in India. “A couple of our own container ships have been attacked and we have been forced to divert quite a few of our services round the Cape of Good Hope. So this is a matter of concern for us,” says Sunil Vaswani, executive director, Container Shipping Lines Association (India). “It’s unfortunate that while container shipping lines have done all they could to increase capacities and introduce new services to assist supply chains, the global scenario is making things more difficult,” adds Vaswani. When would this end? Prahlad Tanwar, global head of logistics at KPMG, says, “The problem could continue till the next quarter.” NOW & THEN The last time a major disruption in the Suez Canal threw shipping and
this end? Prahlad Tanwar, global head of logistics at KPMG, says, “The problem could continue till the next quarter.” NOW & THEN The last time a major disruption in the Suez Canal threw shipping and trade into a tizzy was in 2021, when a Taiwanese vessel called the Ever Given ran aground. It worsened an already severe container shortage as ships were stuck in shut-down ports across the world due to Covid-19. Global shipping rates rose by 10 times. Roeloffs doesn’t foresee such a surge in rates now. “We don’t anticipate the price bump to last very long,” he says. He says the rerouting and longer transit times will soak up about 1.4-1.7 million vessels out of the market. That will be about 5% of total vessel capacity. However, unlike during the pandemic, the world has an oversupply of vessels now. “We believe that in the midterm, just because of supply overhang and price pressures and, of course, measures like the international navy stepping in to protect merchant shipping, the price bump will be removed. And we will be back to the shipping rates that we had four weeks ago,” says Roeloffs. GEOPOLITICAL SOLUTIONS Earlier this week, the US announced a multinational task force called the Operation Prosperity Guardian, with 10 countries on board, to protect ships pass ing through the canal. On Tuesday, Prime Minister Narendra Modi and his Israeli counterpart Benjamin Netanyahu, too, met to discuss marine safety in the light of the Houthi attacks. While India is not part of the international task force, experts say the country can play the role of a mediator, thanks to its improving relations with Iran. “India should be part of the deliberations because not only are we an affected party, we are also a large trading nation. So is China,” says Uday Bhaskar, retired naval commodore and director, Society for Policy Studies. “If India and China want to be reckoned as credible players, both of them should use whatever influence and assets they have. Today India and China have greater access to Iran in terms of a dialogue than countries like the US,” he adds.
RTO detains 4 dual control cars of driving schools for violations Nagpur: Four dual-control cars being operated by driving schools for training purposes without permission were detained, while challans were issued to several others as part of the Regional Transport Office ( ) drive against operators violating terms and conditions. A flying squad comprising motor vehicle inspector and assistant motor vehicle inspector conducted surprise checks on various roads and spotted dual-control training cars of , Divya, Maruti and Matoshree driving schools with violations like expired fitness certificate, lapse of vehicle insurance and under control certificate. It is it is learnt, four cars were also found to have unauthorized alterations and were detained. Challans were issued to Shreemai , Baba Driving School and Guruvandan Driving School and others. Assistant RTO Harshal Dake told TOI the department has decided to intensify vigil against illegal driving school operators. Authorized driving schools have supported the step. In the past, the local driving school association had submitted a representation to the city RTO informing about many illegal operators. Such driving schools use modified vehicles for training, while the authorized school operators follow all the RTO guidelines, the association had stated. Also Read:
ANZ to lend Hyundai-LG Energy JV $711 mln to make EV batteries Australia and New Zealand Banking Group has set up a $711-million lending facility for a joint venture between and that makes batteries for (EV) in Indonesia. ANZ said on Friday the lending facility for the joint venture is a 10-year Korea Trade Insurance Corporation (K-Sure) backed Term Loan Facility. South Korea's LG Energy and Hyundai began constructing their Indonesia-based $1.1 billion making facility last year, seeking to tap the nation's rich nickel reserves amid surging demand for cleaner fuel sources. There's particular interest in Indonesia as a hub for EV batteries, "given (that) it is home to the world's largest nickel reserve," ANZ said. Last month, LG Energy Solution also announced plans to build a new $4.4 billion lithium-ion battery plant for electric vehicles in the United States with Japan's Honda Motor Co .
2022 Jeep Compass receives ‘Top Safety Pick’ rating from IIHS New Delhi: The new 2022 recently earned a ‘Top Safety Pick’ rating from the ( ) for 2022. The rating applies to models equipped with LED projector or LED reflector headlamps when paired with high-beam assist. "The new 2022 Jeep Compass demonstrates our steadfast commitment to customer satisfaction," said Jim Morrison, vice president, Jeep brand North America. "The Compass blends exceptional active and passive safety features with legendary Jeep 4x4 capability. The result is outstanding value for our customers and their families." The SUV's rating was driven by its performance in six IIHS crashworthiness tests that included three types of frontal crashes. The remaining tests evaluate behavior in a side impact, rear impact and a rollover. The 2022 Jeep Compass achieved the highest possible score in each, stated a media release. Further, the vehicle's automatic emergency braking technology – Full-speed Forward Collision Warning with Active Braking – earned the highest possible rating of "superior," while its Pedestrian/ Cyclist Automatic Emergency Braking system was rated "advanced." Both features, which are standard equipment on the 2022 Jeep Compass, are designed to detect imminent collisions and, in certain conditions, automatically apply the vehicle's brakes, stated the automaker. These are among more than 75 available safety and security features. Others include Active Lane Management and Rear Cross Path detection. Despite a challenging market, U.S. Compass sales were up 22% in the first quarter of this year, compared with the first three months of 2021.
Quiklyz to offer range of EVs for leasing, subscription to customers , the vehicle and subscription arm of , has said it will offer the widest range of (EVs) for leasing and subscription to potential customers. Launched in November last year, Quiklyz digital platform provides a subscription programme for both retail and corporate customers. It also allows customers to access new cars without the hassle of , as the company takes care of registration, insurance, scheduled and unscheduled maintenance as well as , among others. The platform, which offers multi-brand vehicles, said it currently has the largest portfolio of EVs on the subscription platform, comprising both e-three and four-wheelers from original equipment manufacturers (OEMs) such as Mahindra, Tata Motors, , , Audi, Jaguar and Piaggio. Quiklyz plans to add more EVs to its portfolio as it aims to create exciting EV subscription products for its customers, it said. "Quiklyz will continue to focus on EVs and will create an exciting platform for customers to have access to such vehicles in an affordable and hassle-free manner. All of this will be in keeping with India's commitment to become carbon-neutral by 2070," said Turra Mohammed, senior vice-president and business head of Quiklyz. According to the platform, customers will have the flexibility to upgrade their vehicle in 2-3 years keeping in tune with ever-increasing technology features in newer EV launches going forward. The programme offers a monthly subscription fee starting at Rs 21,399 per month for electric 4W and Rs 13,549 for electric 3W load. This fee covers insurance, maintenance and roadside assistance and flexibility to upgrade. Mahindra Electric CEO Suman Mishra said, "Leasing and subscription are becoming important channels for our electric 3W specifically in the load segment to new-age enterprises. We look forward to continuing working with Quiklyz to provide such financing solutions for our customers." Also Read:
Government allows UAE's Adnoc to export oil from Indian strategic storage The government has allowed ( ) to export it has stored in underground strategic storages at Mangalore to give operational flexibility to the foreign firm, an order of the Ministry of Commerce and Industry said on Saturday. At present, crude oil, which is the raw material for producing fuels like petrol and diesel, is not allowed to be exported except through the state-owned Indian Oil Corporation (IOC). In an order, the ministry said the condition of export being allowed only through IOC will continue, but "AMI (Adnoc Marketing International (India) RSC Limited India) is exempted from STE conditions and is allowed to re-export crude oil from their commercial stockpile at Mangalore strategic petroleum reserve, at their own cost". India, the world's third-biggest and consumer, imports over 85% of its oil needs and has built strategic storages at three locations to store up to 5.33 million tonnes of oil as insurance against any supply disruption. The storage at Visakhapatnam (1.33 million tonnes) in Andhra Pradesh, Mangalore (1.5 million tonnes), and Padur (2.5 million tonnes) in Karnataka can meet about 9 days of national demand. The has leased half of the 1.5 million tonne capacity in Mangalore storage to Adnoc. The remaining was retained by ISPRL. The idea behind leasing the storage to foreign companies was that they could store oil for sale to domestic refiners. But in case of an emergency, India held the first right on oil usage. Adnoc had sought permission for the export of its oil from the cavern in cases where it could not find buyers in Indian refiners. After the notification, Adnoc can now export oil stored in the Mangalore storage.
DICV opens 3S touchpoint in Leh for BharatBenz with PAL Trucking Ladakh: . (DICV), a wholly-owned subsidiary of , inaugurated on Friday a new BharatBenz sales, service and spare parts (3S) touchpoint in Leh, the capital city of the Ladakh region. This 1000 sq,ft ‘PAL Trucking’ facility is the highest-altitude 3S facility of BharatBenz in the country and is situated on the , the company said in a media release. Rajaram Krishnamurthy, Vice President, , Sales and Customer Service, said, “We are pleased to inaugurate our highest 3S touchpoint with PAL Trucking in the highest motorable region in the world. The capability, reliability and comfort of BharatBenz trucks have won us many customers in the challenging, high-altitude terrain of the Ladakh region. We are proud of our partnership with PAL Trucking, which has rapidly expanded its presence in the Jammu & Kashmir region with five sales and service touchpoints in a short period. We see an increasing demand for our heavy duty trucks in the J&K region as our products have proven their mettle in the harshest conditions while consistently contributing to the infrastructure development of our country. With this new outlet, our network footprint increases to 280 touchpoints.” BharatBenz has over 100 trucks of various configurations operating in the Ladakh region and they are becoming increasingly popular among the local customers for their proven high standard of safety, low cost of ownership and reliability in tough environments. This BharatBenz 3S facility on the Manali-Leh highway is strategically located to reduce service time so that more vehicle uptime is achieved, the release added. Nishant Luthra, Dealer Principal and Managing Director of PAL Trucking, said, “In the past year with BharatBenz, we have seen the brand grow both in terms of technology and products, delivering on the constantly evolving consumer demands. Adding to our existing strong network, the new BharatBenz dealership in Leh will provide comprehensive commercial vehicle solutions to vehicles plying in and through the high altitude of the Himalayas. Customers can be assured of the best sales advice and state-of-the-art ‘Proserv’ after sales support.” The state of the art 3S facility is equipped with six well-trained technicians and two Mobile Service Vans to support BharatBenz Customers in and around Leh, Pengong, Shyok, Nubra Valley, Siachen, Janskar, Kargil, Hanle, Chushul, he added. All BharatBenz sales and service touchpoints of PAL Trucking are well-equipped with trained manpower capable of addressing the diverse needs of customers. Their other outlets in J&K also offer a host of value-added features like Driver Lounge, Driver Trainings, Deiselabh (Payback points with customised card for HP Filling station), Cashless zero-depreciation Insurance, extended warranty up to eight years, up to 10 year AMC, Proserve Mobile App, 24x7 roadside assistance, vehicle tracking systems and many more, Luthra said. Read Also:
UK needs law for self-driving cars, government body says By Nick Carey LONDON: Britain should pass a law regulating self-driving vehicles and include sanctions for companies if anything goes wrong when their vehicles take over control from human drivers, two independent governmental bodies said on Wednesday in a report. The report by the Law Commission of England and Wales and the Scottish Law Commission recommended introducing an " " and drawing "a clear distinction between features which just assist drivers, such as adaptive cruise control, and those that are self-driving." Governments around the world are wrestling with how to regulate self-driving vehicle technology and the thorny topic of accident liability. Once a self-driving system is engaged, "the person in the driving seat would no longer be responsible for how the car drives," the law commissions proposed in the report. "Instead, the company or body that obtained the authorisation would face regulatory sanctions if anything goes wrong," the commissions said. Britain's law commissions review laws and make recommendations to government and parliament about suggested reforms. The Law Commission of England and Wales says about two thirds of its reform recommendations have been implemented. The UK government wants to be at the forefront of rolling out autonomous driving technology and the transport ministry forecasts by 2035 around 40% of new UK cars could have self-driving capabilities, creating up to 38,000 new skilled jobs. Last year the government announced Britain would become the first country to regulate the use of self-driving vehicles at slow speeds on motorways. But insurance companies have warned Britain's goals could backfire unless automakers and regulators spell out the limitations of the technology available today. "Today's report is a significant step, as it provides important legal recommendations and clarity for the safe deployment of vehicles with self-driving features onto the UK's roads," said Matthew Avery, chief research strategy officer at UK insurance group Thatcham Research, which consulted with the law commissions on the report. The government's Centre for Connected and Autonomous Vehicles (CCAV) asked for the commissions' review of the legal framework for self-driving vehicles in 2018. Also Read:
Kia India introduces 'Kia Subscribe' for flexible ownership has announced the launch of ' ', a new , expanding its leasing and subscription services to 14 major cities. The company has signed an MoU with to support this initiative. This new plan, announced today, caters to salaried and self-employed individuals looking for short-term lease options from 12 to 36 months without long-term commitments. Kia India launched the ' ' program three months ago, targeting B2B clients, corporates, and MSMEs with prolonged mobility needs. This plan offers lease terms ranging from 24 to 60 months with different mileage options. , Senior Vice-President, Sales & Marketing at Kia India, commented on the initiative's impact and future prospects. Minimum monthly lease rentals under the Kia program are as follows: Sonet at INR 17,999, Seltos at INR 23,999, Carens at INR 24,999, and EV6 at INR 1,29,000. These initiatives make vehicle ownership easier and more convenient, aligning with Kia's goal to innovate in the car ownership experience in India. "The 1st phase of our flexible ownership program ‘Kia Lease’ has received an overwhelming response from the customers, as it is designed to meet evolving needs and revolutionise the car ownership experience in India. With the growth prospects of leasing business from 1% to 3% in near future, we want to be the driving force behind it and delivering the best ownership experience to our customers. With Kia Subscribe, we have ensured that we make hassle-free accessible to all,” said Brar. Partnerships Kia's partnership with ALD Automotive expands these services to cities including Delhi, Noida, Ghaziabad, Faridabad, Gurgaon, Mumbai, Pune, Ahmedabad, Indore, Bangalore, Chennai, Hyderabad, Kolkata, and Jaipur. The 'Kia Subscribe' plan is designed to offer flexibility and convenience, making it ideal for individuals who prefer short-term commitment. Earlier this year, Kia partnered with ORIX Auto Infrastructure Services Limited to roll out the Kia Lease program in major cities such as Delhi-NCR, Mumbai, Hyderabad, Chennai, Bengaluru, and Pune. This program was aimed at providing greater flexibility, enabling customers to acquire vehicles without any down payment, with added benefits like maintenance coverage, insurance handling, and relief from resale concerns.

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