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Octopus EV gets $700 mn bank funding to expand employee EV scheme An offshoot of Britain's Octopus Energy has secured a half-billion pound banking deal to finance an expansion of its programme to allow the discounted purchase of electric vehicles (EVs) by the employees of corporate customers. operates a " " scheme that allows drivers to save up to 40% on a new by paying through their gross salary - saving income tax and national insurance. The company said on Monday it had won 550 million pounds (USD 699 million) in financing from Lloyds Banking Group to expand the scheme, bringing its total funding to 1.2 billion pounds. "We're delighted to be partnering with Lloyds to supercharge the transition ... to help drivers switch from old-school gas guzzlers to a cleaner alternative," CEO said in a statement. So far Octopus EV has financed more than 450 million pounds worth of EVs on the road in Britain. The company provides a package, including the EV, a charger and discounted energy tariff. Octopus EV offers more than 85 vehicles from 28 different brands and said it has more than 4,000 companies signed up to its salary sacrifice scheme, including Dyson, McLaren and Innocent Drinks.
Broker Marsh launches world first insurance for hydrogen projects LONDON - , a unit of , said on Monday it was launching the world's first dedicated insurance for , as the nascent industry looks to scale up quickly in the fight against climate change. As the world targets net-zero emissions by mid-century in an effort to cap global warming, hydrogen, particularly "green" hydrogen made from renewable energy sources, is seen as a crucial means of getting there. U.S. politicians earlier this month backed a $430 billion spending package that included support for a range of renewable energy sources such as hydrogen. Projects involving the highly flammable gas have often found it harder to find cover, partly because of the complexity and risks involved in production, transportation and storage, and as new and emerging technologies are generally considered riskier. Developed with insurers American Group and Liberty Specialty Markets, Marsh said the new facility would provide up to $300 million of cover per risk for the construction and start up phases of hydrogen projects globally. The facility would be available to multinational organizations as well as smaller firms and cover both new and existing "blue" and "green" hydrogen projects, the world's largest insurance broker said. Blue hydrogen is produced from natural gas, while green hydrogen is made from renewable sources and is seen providing a flexible and low-emission fuel for transportation, electricity generation, and as an input into various industrial processes. "Marsh's facility is an important development for the insurance industry that will help enable the acceleration of the global energy transition to renewables," said Andrew George, Global Head, Energy & Power, Marsh Specialty. "As the global hydrogen industry, especially green hydrogen, scales up rapidly to meet demand the facility will reduce the complexity of securing risk transfer options for operators of all sizes and boosts investor and lender confidence in achieving their ambitious project timeframes." Marsh's clients could either opt for coverage for the startup phase or choose a combined risks policy that extends to first-year operations, the New York-based company said. Renewable and low-carbon hydrogen would account for only 5% of the global final energy mix by 2050, falling short of what is needed to meet climate goals, according to a report in June from Norway-based global energy consultancy DNV. To meet the Paris Agreement to limit global warming to 1.5 degrees by 2050, hydrogen would need to reach 13%.
In India, young revving up demand for Lamborghini: Stephan Winkelmann , aspiring Indians are among driving volumes at Italian maker , which posted record sales last year, global chief executive told . Its signature, wedge-shaped sports car is one of the fastest production vehicles available to the seriously wealthy and the marque is seeing not only from buyers in the country, but also Indians in the US, Europe and Southeast Asia, where they have second homes, he said. Winkelmann, on his first visit to the country in 10 years, said the improvement in India's infrastructure has "surprised" him. He's also excited that women are increasingly gravitating toward the brand, even in India. The consumer mood in the country is buoyant and if the tax regime continues to remain stable, opportunities to expand sales are robust, he said. "There have been a lot of changes and in terms of infrastructure - this is striking immediately. And for sure, also in our type of business now; the car industry has exploded," he said. "We think that everybody is in the right place to do business and we have grown as Lamborghini, which is very positive... I think we're very well-positioned." The size of the automotive super segment is about 1,000 cars a year, he said. Its primary rivals in India are , McLaren and Aston Martin. The taxation structure has remained stable in the last five years. Like in the rest of the world, there is also a drop in the age profile of those acquiring luxury brands. The awareness of buyers is also increasing, he said. "I think all (luxe) brands are in the right position, and I'm not only talking about the luxury car business, but also what is around us now, be it fashion, accessories, watches, jewellery," he said, adding that India is still a market that has huge potential. Automobili Lamborghini sells three models in India - Huracan, Urus SUV and plug-in hybrid Revuelto - priced from ₹3.22 crore to ₹8.89 crore (ex-showroom). In 2023, the company crossed the three-digit mark for the first time in India, selling 103 vehicles. Global sales grew 10% to 10,112 units in this period. India levies 28% goods and services tax (GST) on automobiles, with 1-22% additional cess depending on the type of vehicle. Fully built imported cars, like Lamborghinis, attract customs duty of 60-100% based on the size of the engine, cost, insurance and freight. Winkelmann said that while a stable tax structure enables consumers to get "used to this type of expenditure," an expansive network of highways ensures not only more sales, but also an increase in "trade and all the things connected to it." The demographics make for an added growth impetus. "Our customers in India are very young. Like in most of the countries that we are in, we are pretty male-driven as a brand. But we have more and more women stepping into it, also here in India," he said. At a time when several major economies such as the UK, Germany and Japan are beset by economic troubles, Winkelmann said the
have more and more women stepping into it, also here in India," he said. At a time when several major economies such as the UK, Germany and Japan are beset by economic troubles, Winkelmann said the mood in India is "very positive." Lamborghini expects the double-digit growth rate in the market here to continue. He also said work has commenced on reducing carbon emissions.
With oil prices slumping, OPEC+ producers weigh more production cuts The major oil-producing countries led by Saudi Arabia and Russia are wrestling with whether to make another cut in supply to the global economy as the OPEC+ alliance struggles to prop up sagging that have been a boon to U.S. drivers and helped ease inflation worldwide. The 23-member group is meeting Sunday at headquarters in Vienna after sending mixed signals about possible moves. Saudi Arabia, dominant among the 's members, has warned speculators that they might get burned by betting on lower prices. Russia, the leader of the non-OPEC allies, has indicated no change to output is expected. The decision comes amid uncertainty about when the slow-growing global economy will regain its thirst for fuel for travel and industry, and with producers counting on oil profits to bolster their coffers. Oil prices have fallen even after OPEC+ slashed 2 million barrels per day in October, angering U.S. President by threatening higher gasoline prices a month before the midterm elections. Then, several OPEC members led by the Saudis made a surprise cut of 1.16 million barrels a day in April. International benchmark Brent crude climbed as high as USD 87 per barrel but has given up its post-cut gains and been loitering below USD 75 per barrel in recent days. U.S. crude has dipped below USD 70. Those lower prices have helped U.S. drivers as the summer travel season kicks off, with prices at the pump averaging USD 3.55, down USD 1.02 from a year ago, according to auto club AAA. Falling energy prices also helped inflation in the 20 European countries that use the euro drop to the lowest level since before Russia invaded Ukraine. The U.S. recently replenished its Strategic Petroleum Reserve - after Biden announced the largest release from the national reserve in American history last year - in an indicator that U.S. officials may be less worried about OPEC cuts than in months past. The Saudis, on the other hand, need sustained high oil revenue to fund ambitious development projects aimed at diversifying the country's economy. The International Monetary Fund estimates the kingdom needs USD80.90 per barrel to meet its envisioned spending commitments, which include a planned USD 500 billion futuristic desert city project called Neom. That may have been one motivation behind Energy Minister 's warning to speculators that they will be "ouching" if they keep betting on lower oil prices. Bin Salman's pointed comment isn't necessarily a prelude to a cut at Sunday's meeting, said , Middle East and North Africa economist at Capital Economics. "Our expectation is that OPEC+ will stick with current output quotas," he said, adding that "there have been signs that the government may be readying to live with lower oil prices and running budget deficits." On top of that, Russia may find current prices to its liking because its oil is finding eager new customers in India, China and Turkey. Western sanctions over the
prices and running budget deficits." On top of that, Russia may find current prices to its liking because its oil is finding eager new customers in India, China and Turkey. Western sanctions over the war in Ukraine have forced Russian oil to sell at discounts of around USD 53 to USD 57 per barrel. At those prices, Moscow's shipments avoid triggering the USD 60 price cap imposed by the Group of Seven major democracies to try to limit oil profits flowing into Russia's war chest. The price ceiling allows the world's No. 3 oil producer to keep supplying non-Western customers to avoid a global shortage that would drive up prices for everyone. Insurers and shipping companies largely based in Western countries are barred from handling Russian oil if it is priced above the cap. Russia has found ways to evade the limits through "dark fleet" tankers, which tamper with transponders showing their locations or transfer oil from ship to ship to disguise its origin. An OPEC+ "production cut could push the price of Russian oil above the G7 price cap of USD 60 per barrel, which would make it difficult to transport and thus to sell the oil," commodity analyst Carsten Fritsch at Commerzbank wrote in a research note. "Russia appears to be doing good business at the current price level." The International Energy Agency said in its April oil market report that Russia has not completely followed through on its announcement to extend a voluntary cut of 500,000 barrels per day through the end of the year. In fact, Russia's total exports of oil and refined products such as diesel fuel rose in April to a post-invasion high of 8.3 million barrels per day. That is in spite of a near-total boycott from the European Union, formerly Russia's biggest customer. Analysts say OPEC+ faces conflicting pressures. A cut could support prices or send them higher, with demand expected to pick up later this year. "The impact of higher oil prices on the global economy will weigh heavily on the ministers' minds," said Jorge Leon, senior vice president of oil market research at Rystad Energy. "High oil prices would fuel inflation in the West right when central banks are starting to see inflation gradually recede." "This could prompt central banks to continue increasing interest rates, a detrimental move for the global economy and oil demand," Leon wrote in a research note.
CJ Darcl Logistics partners with Netradyne for AI-based safety technology ., a leading logistics provider in India, has selected to provide advanced fleet safety solutions. Netradyne, is a SaaS leader in (A.I.) and edge computing focusing on driver and fleet safety. The engagement provides a fleet of 1,000 vehicles of CJ Darcl with AI-enabled embedded , helping the company improve fleet operation performance, driver behaviour, and theft rates. By deploying Netradyne’s Driver•i, CJ Darcl Logistics enhances its fleet management, further builds upon cost-effective services, and sets new safety standards. The Driver•i system helps the company achieve its goals of improving driving behavior through automated driver coaching. It also supports expediting driver exonerations as well as handling insurance claims. Durgadutt Nedungadi, Senior Vice President - International Business, Netradyne, said, "We are thrilled to partner with CJ Darcl Logistics, and we will deliver our industry-leading AI-based safety technology solutions to its fleets. The partnership paves the way for us to showcase our technology's flexibility to cater to our customers' diverse needs." A joint venture between DARCL Logistics and CJ Group from South Korea, the company serves more than 2,000 varied customers through its 174 offices across India. The company stays ahead of the curve when it appears to adopt technological advancements and safety. The company remains at the forefront of adopting technological advancements and prioritizing safety. To enhance road safety, the company is integrating technology and safety measures by installing on its trucks. These devices control visibility and speed, which in turn improves the overall safety and security of the road. "Our vision is to train and make the drivers follow the best road practices to avoid accidents. CJ Darcl aims to accomplish zero accidents and to understand and address the areas of concern while driving. Partnering with Netradyne’s Driver•i with smart safety dash cams will help to control the driver’s distracted sight. We have also conducted certain trials. Hence, it is helping in maintaining the driver’s scorecard with other promising results," Nikhil Agarwal, President ,CJ Darcl Logistics, said. Also Read:
Popular Vehicles and Services files IPO papers with Sebi again New Delhi: , which is engaged in automotive dealerships, has filed preliminary papers with capital markets regulator to raise funds through an initial share sale. This is the company's second attempt to go public. Earlier, the company filed draft papers with the (Sebi) in August 2021 for floating an Initial Public Offering ( ) but deferred the maiden public issue amid uncertain market conditions. According to the (DRHP) filed on Thursday, the IPO comprises fresh issuance of equity shares worth INR 250 crore and an Offer For Sale (OFS) of 1.42 crore equity shares by Banyantree Growth Capital II, LLC. Besides, the company is looking to raise INR 50 crore in a pre-IPO placement round. If such placement is undertaken, the fresh issue size will be reduced. Proceeds of the fresh issue will be used for payment of debt and general corporate purposes. The Kerala-based company is a leading diversified in the country with a presence across the automotive retail value chain, including the sale of new passenger and commercial vehicles, services and repairs, spare parts distribution, sale of pre-owned passenger vehicles, and facilitation of the sale of third-party financial and insurance products. It operates passenger vehicle dealerships of , Honda, and JLR and the commercial vehicle dealership of . ICICI Securities, Nuvama Wealth Management, and Centrum Capital have been appointed as merchant bankers to advise the company on the IPO. The equity shares of the company will be listed on the BSE and NSE.
myTVS launches connected car platform for aftermarket New Delhi: Independent integrated multibrand car service provider , today launched a , ‘ ’ for all the . The player offers a ‘ ’ to passenger car customers that will provide vehicle service, emergency assistance, parts, insurance, payment platform, and accessories, along with a wide range of service products. It will also provide an entire range of services for the aftermarket with complete transparency and value for money to its customers. Through the ‘Super app’ customers can avail an extensive and personalized experience and going forward the Super app will also act as a platform for used car sales along with leasing options. The membership is attractively priced at INR 4999 for a three-year subscription, which will be available for customers from 15 July 2022, the company said. The Super app is connected to a personalized device provided by myTVS and hence enables safe, personalized experiences for the car owners, which includes driving behaviour, geo-fencing, personalised recommendation to improve mileage, engine performance and safety alarm and notification for the user. This also comes with a personalised travel map to give access to myTVS network, fuel stations, nearest police stations, and hospitals, thereby making it a complete lifestyle product. G Srinivasa Raghavan, Managing Director, Ki Mobility Solutions, said, “myTVS Life360 is a total car care product that connects the customer with his vehicle, a customer with myTVS network and its partners thereby enabling him to enjoy hassle-free ownership and usage of his car. Along with the subscription of myTVS Life360, customers can gain access to the widest range of services at myTVS with an attractive cashback program thereby helping to reduce the cost of maintenance. Finally, it helps customers to get the best and innovative insurance solutions including the first point of contact for any emergency across the country.” The super app will also offer the facility to pay all utility payments through myTVS Pay with cashback and reward points. The app will also feature myTVS Vault, which allows customers to store important documents like insurance copies, driver’s licenses, registration certificates, etc. for easy access. The Super app - myTVS Life360 is available both on Android and iOS platforms.
Truly autonomous cars may be impossible without helpful human touch MILTON KEYNES, England -Autonomous vehicle (AV) startups have raised tens of billions of dollars based on promises to develop truly , but industry executives and experts say remote human supervisors may be needed permanently to help robot drivers in trouble. The central premise of autonomous vehicles - that computers and artificial intelligence will dramatically reduce accidents caused by human error - has driven much of the research and investment. But there is a catch: Making robot cars that can drive more safely than people is immensely tough because self-driving software systems simply lack humans' ability to predict and assess risk quickly, especially when encountering unexpected incidents or "edge cases." "Well, my question would be, 'Why?'" said Kyle Vogt, CEO of Cruise, a unit of General Motors, when asked if he could see a point where remote human overseers should be removed from operations. "I can provide my customers peace of mind knowing there is always a human there to help if needed," Vogt said. "I don't know why I'd ever want to get rid of that." This is the first time Cruise has acknowledged the long-term need for remote human operators. Like air traffic controllers, such human supervisors could be sitting tens of hundreds of miles away monitoring video feeds from multiple AVs, sometimes with a steering wheel, ready to step in and get stuck robot drivers moving again - AVs invariably stop when they cannot figure out what to do. Alphabet Inc's Waymo and Argo, which is backed by Ford Motor Co and Volkswagen AG, declined to comment when asked the same question. GM recalled and updated software in 80 Cruise self-driving vehicles this month after a June crash in San Francisco left two people injured. U.S. safety regulators said the recalled software could "incorrectly predict" an oncoming vehicle's path, and Cruise said the unusual scenario would not recur after the update. For some, the idea that human supervisors could be here to stay raises more doubts about the technology. Truly autonomous vehicles are far behind the optimistic rollout schedules predicted just a few years ago. In 2018, GM sought U.S. government approval for a fully autonomous car without a steering wheel, brake or accelerator pedals that would enter its commercial ride-sharing fleet in 2019. That vehicle, the Cruise Origin, now is not slated to begin production until spring 2023, Vogt said. In 2019, Tesla Inc CEO Elon Musk promised a million robotaxis "next year for sure" - though his company's "Full Self Driving" offering has been criticized because its cars are not capable of driving themselves without a human behind the wheel and ready to take manual control in an emergency. In a June interview on YouTube, Musk said developing self-driving cars was "way harder than I originally thought, by far." But when asked for a timeline, he said Tesla could make it "this year." Tesla did not respond to a
YouTube, Musk said developing self-driving cars was "way harder than I originally thought, by far." But when asked for a timeline, he said Tesla could make it "this year." Tesla did not respond to a request for comment for this story. The undelivered promise of true autonomy has raised the stakes for the AV industry. "If these companies don't succeed over the next two years, they're not going to exist anymore," said Mike Wagner, CEO of Edge Case Research, which helps AV companies assess, manage and insure risk. "It's a case of put up or shut up at this point." REMOTE HUMANS WATCHING Many AV startups today use humans as remote supervisors, alongside safety drivers sitting behind the wheel. Those remote humans are an additional expense, but help self-driving cars handle edge cases. These could include something as basic as an unfamiliar set of lane closures during road construction, or erratic, unpredictable behavior by pedestrians or human drivers. When a robot driver encounters an edge case, "it puts its hands up and says, 'I don't know what's going on,'" said Koosha Kaveh, CEO of Imperium Drive, which is using humans as remote operators for cars in the English city of Milton Keynes. Over time, those people will act as "air traffic controllers," supervising a growing number of autonomous cars. Cruise's Vogt says the company's AVs on the roads in San Francisco currently rely on humans less than 1% of the time. But across hundreds, thousands or even millions of AVs, that would add up to a significant amount of time stopped on the road waiting for human guidance. Imperium Drive's Kaveh said as more self-driving cars - which are more predictable than humans - hit the roads the number of edge cases will drop, "but you will never get to zero edge cases." "Even decades from now you will not get to 100% truly autonomous vehicles," Kaveh added. Nevertheless, competition is rising. Some Chinese cities are pushing to allow active AV testing more quickly. The need to tackle edge cases and cut the costs of everything from sensors to the number of humans in the loop in order to get to market has also intensified because investor funding for autonomous cars has plummeted. Doubt has crept in as investors puzzle over how soon autonomous business will turn profitable. Simpler or slower AVs like trucks or last-mile delivery services operating on highways or on set, low-speed routes are likely to reach profitability first, but will still take years to get there. Overall investment in future mobility startups has slowed, with AV-focused companies hit especially hard, representing less than 10% of venture investment in the second quarter, according to investor website PitchBook. (Graphic: https:tmsnrt.rs/3Rzy04y) Investment in AV startups in the quarter dropped to $958 million. Just two years ago AV investment was booming, as Alphabet's Waymo raised $3 billion, Didi's AV unit raised $500 million and Amazon.com Inc acquired AV startup Zoox for $1.3 billion, according
Just two years ago AV investment was booming, as Alphabet's Waymo raised $3 billion, Didi's AV unit raised $500 million and Amazon.com Inc acquired AV startup Zoox for $1.3 billion, according to PitchBook. 'RUSH TO MARKET' Autonomous systems are not as capable as people because their "perception and prediction algorithms are not as good as how a human brain processes and decides," said Chris Borroni-Bird, an independent consultant who previously led advanced-vehicle programs at GM and Waymo. For instance, a human when seeing a ball roll into the road - harmless by itself - will assume it could be followed by a child and hit the brakes far quicker than an AV, Borroni-Bird said. "I am concerned that AV companies will rush to market without proving the safety is better than human-driven vehicles," he added. The problem is there are "tens of billions of potential edge cases" that AVs could encounter, said James Routh, CEO of AB Dynamics, which conducts tests and runs simulations on cars including on the advanced driver-assistance systems (ADAS) that are the foundation of features. Auto data startup Wejo Group Ltd receives 18 billion data points daily from millions of connected cars and is helping with simulations for AVs, said Sarah Larner, executive vice president for strategy and innovation. "But there are so many variables such as weather, you can take an edge case and then have to layer in all the different variants," she said. "It's truly millions of outputs." DRIVERLESS DELIVERY In its track tests for cars, AB Dynamics employs a robot arm that it plans to retrofit on slow-moving mining and agricultural trucks to make them largely autonomous. Routh envisages a remote team of humans supervising fleets of, for instance, self-driving mining trucks operating in closed environments. He does not see that scenario working for vehicles in faster, more open environments because it could be difficult for remote human supervisors to react quickly enough to dangers. Within the next 12 months, British online food delivery and technology company Ocado Group Plc will roll out a small fleet of driverless delivery vehicles with autonomous vehicle software startup Oxbotica - backed by remote human supervisors - that will operate on just a few streets on set routes in a small UK city and never drive at speeds above 30 miles (48 km) per hour. "At 30 miles an hour, if a vehicle panics, it can hit the emergency brake and seek help," Ocado's head of advanced technology, Alex Harvey, said. "This feels like a very viable strategy at low speed." "But you can't play that game on a motorway," Harvey added, because hard stops in edge cases would pose a safety risk. Harvey said it should take around five years for Ocado to develop a profitable driverless delivery system. More than half of Ocado's UK customers could be reached with AVs driving no more than 40 mph he said. Eventually, the service could be rolled out to Ocado clients like U.S. retail chain Kroger Co.
Hertz to offer 25,000 EV rentals to Uber drivers in Europe By Nick Carey firm will make up to 25,000 (EVs) available to rent to drivers of ride-hailing company Uber in European capitals by 2025, the two said on Tuesday. The rollout of the rental deal, which will include models from , will start this month in London, where Hertz will add more than 10,000 EVs by 2025 that will be able to rent. The program will also be expanded other European capitals, including Paris and Amsterdam during 2023. Uber said the models on offer would include the Tesla Model 3 and the Polestar 2 and that pricing would be confirmed once rentals launch in London. But the company added pricing "will be competitive with other rentals currently offered through Uber partners in the UK" and will include insurance and maintenance, while drivers will benefit in London from not having to pay congestion or emission-zone charges. The ride-hailing company said London is currently its leading European city for EVs, with more than 7,000 zero-emission vehicles driving 15% of Uber's miles in Britain's capital. The build on a partnership where Hertz agreed to provide 50,000 Tesla rentals to Uber drivers in the United States. It is part of Hertz's strategy to build one of the world's largest EV rental fleets and Uber's commitment to become a zero-emission platform in Europe and North America by 2030. The companies said on Tuesday that to date, nearly 50,000 U.S. Uber drivers have rented a Tesla through the program, so far completing more than 24 million covering more than 260 million miles (418 million km). In the U.S. deal, Tesla rentals for Uber drivers were said to start at $334 a week, including insurance and maintenance, and consist mostly of the Model 3 sedan. Also Read:
How your motor insurance policy changes after installation of LPG/CNG kit? Car owners who look forward to saving on rising fuel costs, often consider installing an LPG or CNG kit in their car. This might involve a one-time installation expense but does bring down the recurring fuel expenses. However, one must remember that the change of fuel amounts to a significant change in the insurance policy of the car too. Here are the steps one needs to follow to make those necessary changes. Endorsement in vehicle RC Whenever a petrolLPG kit, the same needs to be endorsed in the registration certificate (RC) issued by the state transport authorities. Documents such as existing , insurance policy copy, invoice for , of the vehicle owner need to be submitted to the and a form needs to be filled in for the same. Once the authorities examine the vehicle and the documents, they will approve the application and endorse the RC book. Endorsement to insurance policy Next, an application for endorsement must be made to the insurance company where the vehicle is insured. Here, one needs to submit self-attested documents like endorsed RC book, invoice for LPG/CNG kit, along with the application. After the complete verification of the documents, the insurance company will make the necessary endorsement and share the endorsed insurance policy with the vehicle owner. Points to note (Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.) Also Read:
India should come up with a 10-year road map for privatisation of state-owned banks: Former RBI governor D Subbarao The government should come up with a 10-year road map for privatisation of all (PSBs), said former governor D . According to Subbarao, coming up with a roadmap would provide much needed predictability to stakeholders. He further said that the big bang approach to privatisation of state-owned banks is not desirable, however, the issue should not be put on the back burner. "Ideally, we should have a road map, maybe over a 10 year timeframe, to privatise all PSBs. That will give much needed predictability to all stakeholders," PTI quoted him as saying. Subbarao said the government should also be thinking about corporatisation of public sector banks so that they come within the umbrella of uniform RBI regulation. In the for 2021-22, the government announced its intent to take up the privatisation of two PSBs in the year and approved a policy of strategic disinvestment of public sector enterprises. The government think-tank has already suggested two banks and one insurance company to the Core Group of Secretaries on Disinvestment for privatisation. According to Subbarao, the impact on the of privatisation of PSBs will be in two ways. "The overall efficiency of the banking system will improve as public sector banks, freed from the obligation of driving social objectives, will pursue profit maximisation like their private counterparts," he said, adding that the pursuit of social objectives like financial inclusion and priority sector lending might, to some extent, be compromised. Even so, Subbarao said he believes the net cost benefit calculus of privatisation will be positive. In 2020, the government merged 10 nationalised banks into four large lenders, thereby bringing down the number of PSBs to 12. The former RBI governor observed that at India's current stage of development, the country should be using other instruments to pursue social objectives rather than continuing to place the burden on bank depositors and borrowers. A research paper published in the August 2022 issue of had said "the gradual approach to privatisation adopted by the government can ensure that a void is not created in fulfilling the social objective of financial inclusion". Also Read:
US issues fresh sanctions over shipment of Russian oil above price cap The United States on Friday imposed additional sanctions related to the price cap on , targeting three entities and three oil tankers as Washington seeks to close loopholes in the mechanism designed to punish Moscow for its war in Ukraine. The U.S. Treasury Department accused those targeted on Friday of using Western maritime services such as transportation, insurance, and financing while carrying Russian crude oil above the USD 60-per-barrel price cap. The Group of Seven rich countries, the European Union and Australia imposed the USD 60d-per-barrel cap last December on seaborne exports of Russian crude. The mechanism bans Western companies from providing the services for oil sold above the cap. It said that the vessels the NS Champion, Viktor Bakaev and HS Atlantica carried Russian Urals crude above USD 70 per barrel. Russia's embassy in Washington did not immediately respond to a request for comment. The Treasury said in a statement that the vessels used "U.S.-person" services while transporting the Russian-origin oil, without providing more details. The agency said United Arab Emirates-based Sterling Shipping is the registered owner of the NS Champion. UAE-based Streymoy Shipping Limited is the registered owner of the Viktor Bakaev, it said, and Liberia-based HS Atlantica Ltd is the registered owner of the HS Atlantica. The sanctions block all property and interests of the listed tankers and owners in the U.S. or in possession of U.S. persons, and those assets have to be reported to the Treasury's Office of Foreign Assets. It marked Washington's latest sanctions action cracking down on the shipment of oil above the price cap as the United States seeks to enforce the punitive measures it has imposed on Russia over the war in Ukraine, which has killed or wounded tens of thousands and reduced cities to rubble. "Enforcement of the price cap on Russian oil is a top priority for the United States and our Coalition partners," Treasury Deputy Secretary Wally Adeyemo said in the statement. "By targeting these companies and their ships, we are upholding the dual goals of the price cap by restricting Russia's profits from oil while promoting stable global energy markets." The Treasury also issued a general license authorizing limited safety and environmental transactions involving those targeted, including transactions necessary for the safe docking and anchoring of the blocked vessels, until Feb. 29.
Ford CEO says EV prices may not drop to ICE vehicle levels until 2035 The cost to make electric vehicles may not drop to the level for gas-powered cars until after 2030 when the process becomes simpler and less labor-intensive, Ford Motor Co Chief Executive said on Wednesday. At an investor conference, said that, for many automakers, EVs will remain more costly than their internal combustion engine counterparts until the second and third generation models go into production later in this decade. Analysts have predicted that EV cost parity could come as soon as 2025. Between 2030 and 2035, Farley added, much of the industry's EV cost savings will come from "dramatically lower labor content" because the vehicles will be simpler to build with fewer parts, and will be fitted with smaller batteries that use cheaper materials. He also predicted the industry could realize lower distribution costs from selling EVs online, as well as higher revenue from new software-driven digital services. Farley said Ford's software services business has 600,000 subscribers, triple the number a year ago. That includes 200,000 retail customers paying for the company's Blue Cruise driver assistance system and 400,000 Ford Pro commercial customers paying for a range of services including fleet management, EV charging, dynamic routing and more. As the company expands its ability to harvest data from vehicles and drivers, Ford could follow other automakers, including Tesla Inc and General Motors Co, in offering insurance, he said. Asked about the potential for industry-wide consolidation over the next five years, Farley instead predicted an "acceleration of cooperation," citing such deals as Ford's recent agreement to use Tesla's supercharger network for its future EVs. "Cooperation is essential," he said, especially for companies that may not have the resources to build out a full EV ecosystem.
Lohum and ACKO partner to recycle and reuse EV batteries under extended warranty insurance Bengaluru: , a leading producer of sustainable energy transition materials, and ACKO, the tech-first insurer, join hands to recycle and reuse batteries. This partnership for is to include provisions for reusing and recycling the batteries. The collaboration will benefit EV battery OEMs that have their products underwritten by ACKO by giving them easy access to Indian EV customers, battery OEMs, dealerships, and all ecosystem stakeholders to advanced aftermarket services, Lohum said in a media release. Under the partnership, ACKO will continue to provide performance warranty insurance for and offer a hassle-free redressal experience in case of performance-related issues. In addition, Lohum will work towards collecting, repurposing, and recycling used batteries that will come back as a result of liability from the product, and reduce the environmental impact and produce sustainable Lithium-ion raw materials for new batteries, the release said.. The goal is to extract the maximum possible salvage value from ACKO's entire portfolio of underwritten batteries and add sustainability to the already unique and consumer-centric product. The partnership will help optimize the and financing costs for the customers. This will make the purchase of more affordable and reduce the insurance cost. It will help to partner with OEMs in the future to launch battery buy-back products for customers and improve the overall vehicle resale value, the release added. Rajat Verma, Founder & CEO of Lohum, said, "We are delighted to partner with ACKO to weave sustainability into India's first EV battery performance warranty insurance. We applaud ACKO's emphasis on performance warranty, which ensures that customers get immediate replacements as soon as the battery performance drops even by a small margin over time. This partnership aligns with our vision of lowering the carbon emissions of EV batteries and building customer-centric solutions across the battery materials supply chain. It is a testament to both companies' commitment to creating a greener tomorrow." Animesh Das, Chief Underwriting Officer, ACKO, said, "The Battery Waste Management Rule of 2022 says that it is imperative to have end-to-end tracking of batteries to ensure safe disposal. Our strategic partnership with Lohum will help OEMs comply with the necessary EV-specific rules, which will act as a catalyst for achieving network effects and efficiency in the Indian circular and act as a stellar nursery for India's EV ecosystem ," In line with the Government's , the industry has seen a spike in demand and sales of EVs. Indians are becoming increasingly conscious about the environment, and India foresees 2023 as the record year of EV sales. However, there is considerable scepticism among individuals toward various aspects of owning an EV as highlighted in the 'Future Is Electric' report by ACKO, where 60% of respondents think
EV sales. However, there is considerable scepticism among individuals toward various aspects of owning an EV as highlighted in the 'Future Is Electric' report by ACKO, where 60% of respondents think the ecosystem needs to be better equipped to support EVs. A major barrier to EV ownership is the cost of battery replacement, as the battery contributes to a substantial part of the cost of an EV. Despite the challenges, the silver lining is the optimism among owners and intenders, where 89% believe India will be by 2030 an EV-friendly space, the release said.
Formal job creation surged in December 2021, shows new payroll data surged in December 2021 with net new employees and subscribers added to the Employees Provident Fund Organisation, the Employees State Insurance Corporation and the , suggesting an uptick in the Indian labour market. This is contrary to November when the and NPS had witnessed a decline. The payroll data by the ministry of statistics and programme implementation, released on Friday, shows net new subscriber addition under the Employees State Insurance Corporation jumped by 46.8% to 1.52 million compared to 1.03 million in November 2021. This is the highest addition to ESIC in the fiscal so far. Even the witnessed a growth of 19.9% in net new addition in December 2021 at 1.46 million compared to November 2021 when the net new subscribers added to stood at 1.21 million. The National Pension Scheme also witnessed a surge of 11.8% with 72,578 new subscribers added to it in December 2021 compared to 64,870 added in November. This is the third highest addition in the fiscal so far, highest being in June 2021 (78,265) and September 2021 (72,923). As per the report, 1.28 million male subscribers were added to ESIC while 0.24 female subscribers were added to ESIC. Of the total 1.46 million net subscribers added in December 2021, 0.91 million new members have been enrolled under EPF & MP Act, 1952 for the first time. Approximately 0.54 million net subscribers exited but rejoined EPFO by opting to continue their membership with EPFO by transferring their PF accumulations from previous to present PF account instead of opting for final withdrawal. Under NPS, maximum subscriber addition in December was from state government employees at 48,497 followed by central government employees (12,534) and 11,547 from the non-government or corporate sector. The report is based on the payroll data of new subscribers of various social security schemes run by ESIC, the Employees' Provident Fund Organisation (EPFO) and (PFRDA). It has been releasing such data of these bodies since April 2018, covering the period starting from September 2017. The report, titled 'Payroll Reporting in India: An Employment Perspective - November 2021', said since the number of subscribers is from various sources, there are elements of overlap, and the estimates are not additive. NSO also said the report gives different perspectives on the levels of employment in the formal sector and does not measure employment at a holistic level. Also Read:
Delhivery and two other IPOs will raise about Rs 6,000 crore in the upcoming week New Delhi: Amid the busy season for the domestic primary markets, three issues will kick off for subscription in the upcoming week to raise about Rs 6,000 crore via initial stake sale. Tech-based logistics startup Delhivery, retail wealth management player Prudent Corporate Advisory Services and steel pipes manufacturer Venus Pipes & Tubes will launch their initial public offerings (IPOs) in the upcoming week. Not only three issues will kick off in the next week, but the initial stake of insurance behemoth Life Insurance Corporation of India (LIC) will also close for subscription on Monday. The largest IPO in the Indian market is raising almost Rs 20,557 crore. Varun Sridhar, CEO, Paytm Money said that the retail portion of all three IPOs cumulatively is around Rs 750 crore. "Considering the charm over LIC's IPO, it will be interesting to see the extent of retail investor participation in these IPOs," he added. Delhivery has a retail portion of only 10 per cent as 75 per cent of shares are reserved for institutional bidders (QIBs). Prudent Corporate Advisory and Venus Pipes & Tubes will offer 35 per cent of the issue to the retail bidders, with 50 per cent share for QIBs. Adding more on the upcoming IPOs, Vijay Singhania, Chairman, TradeSmart, said that despite the secondary market witnessing selling pressure in line with global markets, primary markets in India have picked up. Interestingly, the issue of Delhivery alone will raise about 90 per cent of the aforesaid funds, highlighting the small size of the other two IPOs. Delhivery's Rs 5,235 crore IPO will be open for subscription between May 11-13 in the fixed price band of Rs 462-487 per share. Investors can bid for a minimum of 30 equity shares and then in the multiples thereof. The company has cut its offer size to Rs 5,235 crore from Rs 7,460 crore planned earlier. It will issue fresh equity shares worth Rs 4,000 crores, and existing shareholders and promoters will offload shares worth Rs 1,235 crore. Gurugram-based Delhivery is the largest fully integrated logistics services player in India by revenue. It has built a nationwide network in every state, servicing 17,045 PIN codes or 88.3 per cent of the 19,300 PIN codes in India. Kotak Mahindra Capital, Morgan Stanley India, Bofa Securities India, and Citigroup Global Markets are managing the share sale, whereas Link Intime is the registrar of the issue. "Few important IPOs are lined up in the coming days, but the one which will be in the limelight will be the logistics service company Delhivery, especially since it continues to be in losses," said Singhania from Tradesmart. "The issue will test the market appetite for loss-making companies, especially after the poor post-performance of other startups," he added "Successful subscription of Delhivery will be a morale booster of the markets overall." Prudent Corporate Advisory Services' IPO will be open for
poor post-performance of other startups," he added "Successful subscription of Delhivery will be a morale booster of the markets overall." Prudent Corporate Advisory Services' IPO will be open for subscription between May 10-12 and the company will sell its shares in the range of Rs 595.630 apiece. The Rs 538.6 crore issue is entirely an offer for sale (OFS) of 8,549,340 shares. The company has allocated shares aggregating to Rs 6.5 crore for its eligible employees, who will get a discount of Rs 59 per equity share during the bidding process. The lot size for the issue is 23 equity shares. Prudent is one of the leading independent retail wealth management services groups (excluding banks) in India and among the top mutual fund distributors in terms of average assets under management and commissions received. ICICI Securities, Axis Capital and Equirus Capital are the books running lead managers to the issue, whereas Link Intime has been appointed as the registrar to the issue. The smallest among the three, Venus Pipes & Tubes raised about Rs 165.4 crore through its initial public offering by issuing 50.74 lakh fresh equity shares and selling them in the range of Rs 310-325 between May 11-13. The company has about six years of experience in manufacturing stainless-steel tubular products in two broad categories - seamless tubes & pipes, and welded tubes & pipes. SMC Capitals is the sole book-running lead manager to the issue, whereas Kfin Technologies is the registrar. The company's equity shares are proposed to be listed on BSE and NSE. Deepak Shenoy, Smallcase Manager, Founder and CEO, Capitalmind, said that a lot of IPO capital would go primarily to LIC's IPO, and people will wait for its reaction to subscribe to other IPOs. "It is better to participate in the new companies after listing and with a limited amount of capital waiting for them to show good results in subsequent quarters before adding more," he advised. Also Read:
Mahindra Last Mile Mobility launches new e-Alfa Plus at INR 1.61 lakh New Delhi: ( ), a subsidiary of & Mahindra Limited (M&M Ltd.), has introduced the , an designed for both urban and rural transportation. Priced at INR 1,61,113.00 ex-showroom in Noida, the availability of the e-rickshaw is subject to local government approvals. The e-Alfa Plus is equipped with a Permanent Magnet Synchronous Motor (PMSM) delivering peak power of 1.95 kW at 2600 rmin. This electric vehicle is powered by a 150 Ah Lead Acid battery and offers a real-world range of over 100 km on a single charge, validated through extensive driving tests. "With over 60000 satisfied e-Alfa customers and backed by the trust of Mahindra, the all-new e-Alfa Plus is all set to delight customers," the company stated in a media release. To enhance customer satisfaction, Mahindra is providing a three-year accidental insurance worth INR 10 Lakh for the driver with every purchase, ensuring safety and security. Additionally, the vehicle comes with an 18-month warranty covering the charger and battery, ensuring long-term reliability. Mahindra is offering the e-Alfa Plus in five colors, including a new Oceanic Blue hue. The vehicle features a unique closed body design and incorporates multiple safety features, including an advanced braking system.
Time to get more selective in auto space: Kumar Rakesh , Associate Director, , says in auto, “we should start aligning from a stock preference perspective and move to stocks which are still seeing demand, which can possibly offset the higher commodity pressure whereas the segments which are going to see demand pressure, will see far higher impact of any commodity stiffening.” A month ago, auto stocks were at a relative high and with the exception of CVs, most of the auto stocks have retreated quite a bit. Given that there seems to be a change of trend in four-wheelers from sedan to SUVs, is this something which markets have already factored in because the recent outperformance in and for that matter is clear indication of how markets are aligning to the new shift? Early last month, we were saying that now is the time to start getting more selective in the auto space. So far in the year we have seen the entire auto space outperforming the broader index and that possibly will start changing as the demand patterns across different segments have started digressing quite significantly and that is something which the recent auto sales numbers are also indicating and possibly will continue for the rest of this fiscal year as well. Investors have also started aligning themselves and it is not just the demand side of the equation which we have to be mindful of, also on the commodity pressure side is something which we have to be quite watchful. We maintain a commodity basket of all the commodities which goes into a typical passenger vehicle and two wheelers. It had been coming down so far in this year, but last month that also went up specifically because of steel prices going up. If you listen to the commentary from the steel companies, they are talking about how the steel prices have started bottoming out and they expect steel prices going up in the coming months, possibly by the third quarter. If that starts happening, the margin side of the equation also will start getting more stressed. We should rather start aligning from a stock preference perspective and move to stocks which are still seeing demand, which can possibly offset the higher commodity pressure whereas the segments which are going to see demand pressure, will see far higher impact of any commodity stiffening. What is happening to the two-wheeler space? The numbers from and other two-wheelers are pointing to a trend which is that the premium luxury bike will do well and the affordable luxury bike segment is where the competition will intensify. How long before the base effect will start kicking in? The entry segment of the two-wheeler industry over the last four years have seen a price increase of almost 40% and that is a very sharp price increase for different reasons. I am talking about the on-road prices for the insurance price increase. Then the emission law kicked in and the commodity prices went up. It obviously will have a price elasticity impact, something which we saw play out
on-road prices for the insurance price increase. Then the emission law kicked in and the commodity prices went up. It obviously will have a price elasticity impact, something which we saw play out over the last two-three years and hence the overall industry volume, what peaked at 21 million in FY19, ended close to about 16 million last year and we believe this is largely a reflection of the price elasticity absorbing the higher prices. From here on, we should be seeing a more normalised growth. If you look at the long-term average industry growth of 30-40 years, the industry has grown at about 8%. Given that we have a far higher number of two-wheelers in the market, the penetration is much higher. The growth would be much lower than what the long-term average of the industry has been. Within that, the entry segment would be at much lower than that and the premium segment wher there is much higher competition, we will see a higher growth and possibly that is why we are seeing a much higher competition as well because most of the OEMs are realising that the industry is premiumising and the demand is shifting towards those segments and also the affordability of the consumers in that segment is better and price elasticity is less compared to the entry segment. What about dual plays like , which has a bit of domestic and a lot of export demand. What happens there? Because of the diversification the company has, they definitely benefit to some extent. But when we look at the overall automotive basket, in segments like commercial vehicles we are still seeing a strong upcycle; passenger vehicles where the demand is far more resilient and the long-term structural growth story is there because penetration is still quite low for passenger vehicles in the country. Those companies would be better placed. But within the two-wheeler basket, companies with a more diversified portfolio will be better off.
FASTags, NCMC payments to become easier: You don't have to add money manually for each recharge In its monetary policy meeting, the Reserve Bank of India ( ) announced the inclusion of for , National Common Mobility Card (NCMC), etc. with auto-replenishment facility under the framework. The framework for processing e-mandate for recurring transactions allows for specified periodicity recurring payments, such as weekly, monthly, or daily. What is proposed? The RBI said in its Statement on Developmental and Regulatory Policies during the monetary policy meeting on June 7, 2024 said, “The adoption of e-mandates for recurring payment transactions has been increasing. It is now proposed to include payments, such as replenishment of balances in Fastag, NCMC, etc. which are recurring in nature but without any fixed periodicity, into the e-mandate framework. These categories of payments are made as and when needed and, therefore, their replenishment is not time specific or amount specific. Under the e-mandate framework, it is proposed to introduce an automatic replenishment facility for such payments. The automatic replenishment will be triggered when the balance in Fastag or NCMC falls below a threshold amount set by the customer.” This will enhance convenience in making travel Recurring Mandates? BHIM PNB AutoPayInsurance PaymentsOTT subscriptions. You can create the mandate by completing one time authentication mechanism and at the set datesher Debit Card for regular/recurring payment transactions. As per the mandate provided to the Bank, post validation through Additional Factor Authentication, recurring transactions will be carried out on the due date. Pre-Debit Notification, 24 hours prior to actual debit, will be sent to the customer. This will enable a cardholder, if needed, to cancel the transaction before actual debit. The customer must provide their debit card information as well as any other information requested on the website. Following submission, an OTP will be sent to the registered mobile number, which must be entered into the site for validation reasons. Customer will get alert SMS on RMN on the mandate transaction, at least 24 hours before the actual debit date.
IndiGrid raises INR 670 cr via institutional placement New Delhi: Infrastructure investment trust IndiaGrid has raised USD 670 crore through institutional placement. , India's first publicly listed power sector Infrastructure Investment Trust (InvIT) has successfully raised USD 670 crore through an Institutional Placement process as laid out by , a statement said. According to the statement, the IP process, launched on December 5, 2023, saw strong demand from both existing and new Indian and global institutional investors. In September 2023, IndiGrid had raised over USD 400 crore through a preferential issue. With the recently concluded Institutional Placement, the company has successfully raised equity funds of USD 1,070 crore in FY2023-24. "This fundraise has helped us expand our unit holder base with more than 90 % demand from long-term investors across insurance companies, pension funds, mutuals funds and domestic institutions to IndiGrid's investor base," Harsh Shah, Chief Executive Officer of IndiGrid, said in the statement. Proceeds from the recently concluded institutional placement and those from the preferential allotment would be used for paring down debt. "With the capital raise, IndiGrid has created a significant debt headroom of around USD 6,000-7,000 crore at the leverage cap of 70 %," the statement said. The board of directors of IndiGrid Investment Managers Ltd, acting in the capacity of investment manager of IndiGrid, approved the issuance and allotment of 5.27 crore new units through this Institutional Placement to 11 eligible investors on December 8, 2023. More than 90 % of incremental units were issued to insurance companies, mutual funds, pension funds and domestic institutions. Axis Capital Limited, Ambit Private Limited, HSBC Securities and Capital Markets (India) Private Limited, and SBI Capital Markets Ltd served as Book Running Lead Managers for this placement. and acted as issuer counsel and bankers counsel respectively.
Green retail lender Ecofy gets NBFC licence Eversource promoted Accretive Cleantech Private Ltd, operating as ‘ ’, has received RBI approval to operate as a non-deposit taking (NBFC). This makes Ecofy among the early green retail NBFCs. , is a climate impact investors. The company founders are NBFC industry veterans Rajashree Nambiar (former MD & CEO, Fullerton India Credit Company Ltd.) and Govind Sankaranarayanan (former and CFO, ). Ecofy will lend to individuals and small businesses to enable transition to a reduced carbon emission. The company will finance (2 and 3-wheelers), rooftop solar and . Ecofy’s offerings include loans, leases, insurance, warranties, and buybacks for all green needs. The company will operate with a digital-first strategy. Speaking on the launch, Rajashree Nambiar, Co-Founder and CEO of Ecofy, said, “Finance is a critical input that can catalyse the much-needed for a future. Our goal with this NBFC is to provide the products and seamless experience that address customer needs.” Dhanpal Jhaveri, Vice Chairman, Everstone Group and CEO, Eversource Capital, said, “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:
Year-end discounts on cars rise to the highest in 4 years If you are looking to buy a new car, this could be the best time for it. Year-end discounts from carmakers have risen to a four-year high as pentup demand starts drying up on the back of improved production. Dealerships are making the deal sweeter with benefits ranging from ₹25,000 to ₹1,00,000. Driving this trend is the softening of demand in certain car segments and fuel types. To shore up sales, most carmakers are offering discounts between 4.5% and 5% on their vehicles this month compared with 2-2.5% two years ago. The most generous price benefits are in the entry-level car segment and the petrol segment of sports utility vehicles (SUVs), thanks to a mix of cash discount from automakers, exchange bonus benefit, lower own damage premium by insurance companies, and schemes run by dealers. Discount on CNG vehicles, too, has increased to an all-time high of about ₹60,000 as buyers are giving CNG models a miss owing to the narrowing price gap between the green fuel and fossil fuel. While carmakers are not worried about the larger discounts this time round - given that they have a robust order book of 417,000 units and there's expectation of a strong retail in December - they are cautious of the road ahead. Tarun Garg, director (sales, marketing and service) at , said retail in December is strong and is expected to be 20% higher than November. But he said "the demand momentum, going forward, will depend on multiple factors like inflation, interest rates and general market sentiment". is offering discounts from ₹17,000 to ₹18,000. This is on par with the discount levels of 2018-19, said , senior executive officer at . "Unlike in 2018-19, the yearend discounts are confined to certain segments and the trend is not secular. In terms of demand and enquiries, the momentum remains strong. Having said that, we cannot afford to take our eyes off the headwinds, such as high interest rates and inflation," said Srivastava. According to him, discounts on the entry-level models should be seen as a reflection of better availability instead of a tepid demand. "Dealer inventories are back to pre-pandemic levels of 45-50 days," Puneet Gupta, director at S&P Mobility, said, adding that this is mounting pressure on dealers to liquidate the vehicle even if they have to offer discounts. The increase in interest rates has added to their woes, Gupta said. Demand for electric cars, too, appears to be waning. The waiting period for ' e-Nexon is down from a few months earlier to let a buyer walk into a dealership and drive out in a new vehicle.
Ocean shippers playing catch up to electric vehicle fire risk are crisscrossing the globe to reach their eager buyers, but the battery technology involved in the zero- emission automobiles is exposing under-prepared maritime shippers to the risk of hard-to-control fires, industry, insurance, and emergency response officials said. That risk has been put under the spotlight by the burning car carrier drifting off the Dutch coast. The said the fire's cause was unknown, but Dutch broadcaster RTL released a recording in which an emergency responder is heard saying "the fire started in the battery of an electric car." While all logistics companies deal with the risk of EV lithium-ion batteries burning with twice the energy of a normal fire, the maritime industry hasn't kept up with the developing technology and how it creates greater risk, maritime officials and insurers said. There were 209 ship fires reported during 2022, the highest number in a decade and 17% more than in 2021, according to a report from insurer Allianz Global Corporate & Specialty (AGCS) . Of that total, 13 occurred on car carriers, but how many involved EVs was not available. The European Maritime Safety Agency said in a March report the main cargo types identified as responsible for "a large share of cargo fire accidents included ... lithium-ion batteries." Dutch news agency ANP, citing operator "K" Lines, said there are almost 4,000 cars on the ship. That total includes 25 EVs. A person answering the phone at "K" Line's main U.S. office said he was not authorized to discuss the fire. Japan's Shoei Kisen, which owns the ship, said it was working with authorities to get control of the fire. The cause of the fire, while still officially undetermined, has raised questions about "what blind spots there are when transporting electric cars powered by batteries - which when they catch fire can't be extinguished with water, or even by oxygen deprivation," said Nathan Habers, spokesperson for the Royal Association of Netherlands Shipowners (KVNR). "The first question that comes to mind is: Does the current code stack up against the risk profile of this type of goods?" he added. One hazard in lithium-ion batteries is "thermal runaway," a rapid and unstoppable increase in temperature that leads to fires in EVs that are hard to extinguish and can spontaneously reignite. Fire extinguishing systems on the massive ships that haul cars weren't designed for those hotter fires, and shipping companies and regulators are scrambling to catch up, said Douglas Dillon, executive director of the Tri-state Maritime Safety Association that covers Delaware, Pennsylvania and New Jersey. Recent fire-related losses are resulting in increased insurance costs for automakers shipping cargo and costs are likely to increase for vessel owners as well, said John Frazee, a managing director at insurance broker Marsh. As ship owners seek to limit losses by legally pursuing automakers whose vehicles are determined to
for vessel owners as well, said John Frazee, a managing director at insurance broker Marsh. As ship owners seek to limit losses by legally pursuing automakers whose vehicles are determined to have caused a fire, automakers are buying additional liability protection, he said. Exacerbating the risks is the business model used by the companies that includes tightly packed ships. Auto carriers like the burning ship are known as RoRos, which stands for roll-on/roll-off - the way cars are loaded and unloaded. RoRos are like floating parking garages and can have a dozen or more decks carrying thousands of vehicles, industry officials said. Unlike parking lots, however, cars are parked bumper-to-bumper with as little as a foot or two of space overhead. Firemen typically put out EV battery fires on roadsides by clearing the area around the burning vehicle and flooding the underside with water, something difficult to do on a RoRo, Dillon said. "There's no way for a firefighter in protective gear to get to the location of a fire" on a ship, he said, adding the cramped conditions increase the danger getting trapped. While trains and trucks also transport EVs, isolating and extinguishing fires is easier as workers can unhook a rail car and a trucker can pull over, said Frazee. Frazee expects insurers to lead the charge on strengthening safety systems on ships. Options being worked on include new chemicals to douse flames, specialized EV fire blankets, battery piercing fire hose nozzles and proposals to segregate EVs. "I see no quick solution," Frazee said. The International Maritime Organization, which sets regulations for safety at sea, plans to evaluate new measures next year for ships transporting EVs in light of the growing number of fires on cargo ships, a spokesperson told Reuters. That could include specifications on types of water extinguishers available on boats and limitations on the amount a battery can be charged, which impacts flammability. With EVs here to stay, KVNR's Habers said his group is discussing tightening regulations to account for the additional safety risks. "There is already a whole lot of communication underway about this," he said, "but with this incident it becomes apparent we might need to speed up the process, especially when you consider that the number of this sort of cars is only going to rise." Global auto sales last year totaled 81 million vehicles, 9.5% of which were EVs, according to EV-Volumes.com. China and Europe have been the most aggressive regions in pushing automakers to shift to EVs, and U.S. President Joe Biden's administration has proposed rules that could result in as much as two-thirds of the new vehicle market shifting to EVs by 2032.
Opinion: Strategies to navigate megatrends of Indian CV industry By Ashim Sharma The strong correlation between (CV) is well established. Hence it is the bellwether of the economic conditions. The in India witnessed multi-year lows during the pandemic and is still on an arduous path. However, a recovery in economic activity, and restoration of inter-state personal movement resulted in high demand for commercial vehicles from various sectors such as FMCG, mining, and others. Demand for replacement vehicles is also increasing as very low replacement has happened in the past 3 years due to the . Owing to the ever-increasing fuel prices, CV owners are replacing their vehicles to achieve better fuel efficiency. Sales trends across segments and sub segments: As per the latest data released by the Federation of Automobiles Dealership Association (FADA), CV sales in November 2022 touched 79,369 units and surpassed that of the pre-Covid sales in November 2019 by 6.4%(YoY). However, CV sales are still far from the previous peak of FY19. The current growth momentum could get moderated due to headwinds like diminishing cash flows, raw material cost pressures, export slowdown, and given the global economic turbulence, recent Covid outbreak in China and the ongoing Ukraine war. Outlook for 2023 and beyond: After posting a strong recovery and achieving pre-Covid sales figures, the Indian CV industry has an opportunity to leap ahead in spite of the cash reserves and fall in the appetite of big players. For domestic demand, the vehicle scrappage policy can prove to be a catalyst of growth as a substantial chunk of the fleet is older than 15 years. The end-user companies are also focusing on cost optimization and supply chain efficiency improvement with advanced analytics and data-driven fleet solutions which are increasingly being offered in newer trucks. Export markets are also feeling the pinch of a global slowdown. Covid is still not over, Ukraine Russia war dawdles to its first anniversary, and various other countries in the world are facing economic slowdown and inflation including some of India’s biggest export markets. Though exports are growing, it is yet to transcend the pre-pandemic levels. Major megatrends for the CV industry Improvement in infrastructure, Logistics policy, and push towards de-carbonisation and cleaning the urban air are the major megatrends of the Indian CV industry. Improvement in infrastructure: Increased activity in road construction (50 Km daily day in FY23), improved infrastructure spending (expansion of national infrastructure pipeline to 9,335 projects during FY20-FY25) and new real estate and redevelopment projects will set up the stage for uptick in CV sales figures. Logistics policy: The National Logistics Policy (NLP), targets reduction of logistics costs to be comparable to global benchmarks and reaching the top 25 ranked countries in the logistics performance index ranking by 2030 through a systematic data-driven decision
of logistics costs to be comparable to global benchmarks and reaching the top 25 ranked countries in the logistics performance index ranking by 2030 through a systematic data-driven decision support mechanism for an effective logistics ecosystem. This will drive a paradigm shift towards seamless and integrated multimodal transportation and the introduction of connected features in the segment. This would also translate into demand for modern, higher powered and connected trucks. Push towards de-carbonisation and cleaning the urban air: As per a recent report from NITI Aayog, trucks which represent 3% of the total vehicle fleet (including both passenger and freight) are responsible for 53% of PM emissions and one-third of transport-related CO2 emissions in India. With the reduction of PM emission in BS6 by over 80%, the replacement of the fleet can go a long way in helping reduce urban air pollution. India has proposed a phase down of GreenHouse emitting fuels by 2030 necessitating exploration of alternative propulsion fuels. Opportunities and challenges Higher growth in small and heavy vehicles: In some developed economies, the ratio of LCV to M and HCV is as high as 6:1. But the LCV to HCV ratio is between 1.5:1 and 2:1 in India due to low-income levels of smaller fleet operators and overcapacity loading in SCVs and LCVs. Construction of better highways, consolidation of loads will lead to use of larger and higher-powered trucks (higher torque and power densities of engines) on the back of the trend of moving bigger loads in the mid mile and then transshipments using SCVs noise levels and its cryogenic temperatures which makes it a theft proof fuel option. In addition, use of HPDI (High Pressure Direct Injection), a system that enables heavy – duty trucks to operate on natural gas with diesel- like performance would also aid in the switch to LNG. With strides being made towards Green Hydrogen in the country, Hydrogen Fuel Cell Electric Vehicles can also prove to be a cheaper and cleaner substitute to diesel for long haul. Battery swapping-based EVs could see widespread adoption in city buses, shorter distance M&HCVs between cities, etc. Connected vehicles: Vehicle ecosystem is surging towards a connected future rapidly especially in the post pandemic era. The segment is moving from basic vehicle tracking services to more advanced features such as driver behaviour analysis, remote condition monitoring, regional language support, usage-based insurance and cloud based over the air software update in 4G working conditions will lead to better efficiency in due course. Strategies The business model of selling vehicles not as a product but as a business solution by working on the customer’s economic equation and applying the levers at various aspects of the product plus the augmented solution i.e., after sales, value-added services such as telematics, etc. is expected to gain greater prominence. In addition, the levers applied would increasingly
of the product plus the augmented solution i.e., after sales, value-added services such as telematics, etc. is expected to gain greater prominence. In addition, the levers applied would increasingly include the various powertrain options and for the EVs even the charging options. The wheels that move the nation are certainly transforming and with the right moves, all players in the ecosystem can unlock efficiencies and add value. (Disclaimer: Ashim Sharma is Senior Partner and Group Head at NRI Consulting & Solutions, India. Aashutosh Sinha, Principal, and Himanshu Bajpai, Senior Consultant, also contributed to this article. Views are personal.) Also Read:
Intersection assistance tech shows big promise for older drivers: IIHS New Delhi: Advanced technologies designed to help drivers navigate intersections could address a third of the crashes that cause older driver injuries and fatalities, a new study by the ( ) shows. “Left turn assist and other, upcoming intersection-assistance technologies could deliver big safety benefits for drivers in their 70s and 80s,” says Aimee Cox, IIHS Research Associate. Age-related declines in their vision and cognitive abilities make left-turn crashes more common, for example. IIHS researchers used federal crash data of the United States from 2016-19 to compare the types of crashes that are most common for older drivers and their middle-aged counterparts and analyzed that about 60% of the crashes involving either age group could potentially be addressed by at least one of the safety features covered in the study. More common ones like automatic emergency breaking (AEB) and lane departure prevention were relevant to a large portion of crashes for both sets of drivers. However, such conventional features applied to more crashes of middle-aged drivers than crashes of drivers in their 70s and older. Intersection-assistance features, which are newer and less well-known, could offer older drivers more help, the data showed. Such features were potentially relevant to 32% of older driver crash involvements, 38% of older driver injuries and 31% of older driver fatalities. They could also have big safety benefits for middle-aged drivers, as they were relevant to more than a fifth of all crashes for that age group. “These results should spur efforts to roll these technologies out to consumers as rapidly as possible,” added Jessica Cicchino, vice president of research, IIHS. Brighter headlights and related improvements allow the driver to identify hazards sooner. Front crash prevention warns the driver or applies the brakes to avoid an impending collision. Lane departure prevention returns the vehicle back to the proper path when it’s veering out of the travel lane. Blind spot detection warns the driver about vehicles that aren’t visible in the side or rearview mirrors. Left turn assist and other upcoming intersection-assistance features are probably less familiar. Left turn assist uses a camera and other sensors to detect oncoming vehicles when the driver signals a left turn, warning against proceeding if the software determines a collision is likely. , which is still on the horizon, would enable similar, more sophisticated features. If the vision of its designers comes to fruition, it would eventually link every vehicle on the road, allowing them to communicate their positions, speed and travel path. Vehicle-to-vehicle-enhanced left turn assist would allow the turning vehicle to know the speed and trajectory of oncoming traffic, even if a hill or obstruction makes it difficult to see. Another planned feature called intersection movement assist would allow vehicles to warn
to know the speed and trajectory of oncoming traffic, even if a hill or obstruction makes it difficult to see. Another planned feature called intersection movement assist would allow vehicles to warn drivers of possible collisions with others approaching a crossroads from multiple directions at various speeds and with different intentions. For middle-aged drivers, the data showed that intersection-assistance technologies as a group could be relevant to some 650,000 crashes per year as well as more driver injuries than any of the other features covered in the study. However, intersection-assistance features would be relevant to far fewer middle-aged driver fatalities than lane departure prevention — which is designed to address run-off-road, sideswipe and head-on crashes.
Japan once led the world in microchips. Now, it's racing to catch up TOKYO: It was the spring of 2021, and demand for new cars was spiking. But, as consumers, flush with savings amassed during the pandemic, rushed to dealerships around the world, one Japanese automaker after another idled production as they waited for imports of a critical component: semiconductors. Coronavirus outbreaks had shut down chip plants, and an unanticipated surge in demand for electronics from people riding out the pandemic at home had constrained supplies. Nissan alone predicted a cut in output of half a million vehicles. The chip shortfall — a blow to “the head” of Japan’s economy, in the words of Yoshihiro Seki, a lawmaker who leads a study group on semiconductors — woke up the country to the fragility of the supply chains that undergird its most important industries. That has driven a broad reconsideration of how Japan can protect its economy, the world’s third largest, against both unforeseen economic shocks like the pandemic and looming risks like the rising tensions between the United States and China. Those risks were highlighted this week as House Speaker Nancy Pelosi visited Taiwan, prompting an angry response from China. The reconsideration covers an array of sectors, including energy, but semiconductors are among the top concerns. To increase production, the Japanese government is investing billions of dollars in its domestic chip industry and providing enormous subsidies for joint ventures with companies from Taiwan, a crucial , and from the United States. In a break with its past economic nationalism, it is also seeking to form a coalition with allies such as the United States and the to build a semiconductor supply chain that is less geographically concentrated and so better insulated from disasters and geopolitical instability. The latest move came July 29, when Japan and the United States announced that they would create a joint research center for advanced semiconductors that would be open to other “like-minded” nations. “The era where the world is at peace and it doesn’t matter who supplies our semiconductors is over,” said Kazumi Nishikawa, a director at Japan’s Ministry of Economy, Trade and Industry, or METI. For both Japan, once the world’s largest chipmaker, and the United States, the birthplace of the semiconductor, a decadeslong erosion of their chipmaking capacities has left them playing catch-up. Last week, Congress passed a huge industrial policy bill that included $52 billion in subsidies and incentives to revitalize the U.S. chip industry. The new efforts are seen in both countries as critical to economic and national security as China expands its share of the chip market and takes an increasingly aggressive stance toward Taiwan that raises the risk of disruptions to the flow of chips made there. The question is whether the initiatives will be enough. Japan once manufactured more than half the world’s supply of semiconductors, powering
the risk of disruptions to the flow of chips made there. The question is whether the initiatives will be enough. Japan once manufactured more than half the world’s supply of semiconductors, powering calculators and consoles, but its market share fell to around 10% as globalization pushed companies in wealthy countries to contract out their chip production abroad. Firms such as Taiwan Semiconductor Manufacturing Co., or , that specialized in made-to-order chip manufacturing and that received ample government support accumulated enough customers to achieve economies of scale that made it senseless for companies in Japan and elsewhere to continue making most chips in-house. Japan still leads the market in some products that are essential to semiconductor manufacturing, including specialty chemicals and silicon wafers. The country also has nearly a monopoly on some of the highly specialized tools used in the production process. But it lacks the expertise to make the cutting-edge chips that are manufactured only in Taiwan and South Korea. And, while the geopolitical calculus on supply chains has changed, many of the economic factors that caused Japan’s share of the chip market to shrink have not. That will make it difficult, and potentially very expensive, for Japan to revive the industry, analysts said. The semiconductor study group run by Seki has estimated that success will require an investment of at least $78 billion. “What they’re trying to do is reverse more than 20 years of underinvestment,” said Damian Thong, head of Japan equity research at the . Whether the undertaking is economically viable, Japan believes it has no choice but to try. The first steps are already taking place in Kyushu, in southern Japan, which is known as Silicon Island because of its position as the hub of the country’s once-thriving semiconductor industry. In June, METI announced that it would provide $3.5 billion in subsidies for the construction of an $8.6 billion chip foundry in Kumamoto, a prefecture on the island’s west coast. The factory, the first to receive government support under the new initiative, is a joint investment between TSMC, which makes more than 90% of the world’s most advanced chips, and two major Japanese companies, and Denso, which supplies parts to Toyota. It will be the most advanced production facility in Japan, albeit still behind the world’s leading plants. Production is set to begin by the end of 2024. TSMC is expected to employ more than 1,700 workers in the region, with 300 employees coming from Taiwan. Universities in the area are gearing up to train hundreds of new engineers to supply the industry. The project is the “largest investment we’ve ever had,” said Keisuke Motoda, a Kumamoto prefectural official who oversees government relations with the semiconductor industry. Last month, Japan’s government also announced that it would provide nearly $690 million to a joint venture between Kioxia, a Japanese company, and the American firm
with the semiconductor industry. Last month, Japan’s government also announced that it would provide nearly $690 million to a joint venture between Kioxia, a Japanese company, and the American firm Western Digital to upgrade a chip facility in the western region of Kansai. The new investments will not even begin to meet the seemingly bottomless demand for chips from Japan’s biggest industries. TSMC’s facility is expected to produce 50,000 to 60,000 wafers a month. A single vehicle can have hundreds of semiconductors, and Toyota alone manufactured almost 8.6 million vehicles worldwide last year. Japanese officials, though, hope that TSMC’s investment will kick off the development of an ecosystem that could one day serve as an insurance policy against supply chain disruptions. That insurance policy would most likely include partnerships with allied nations. Semiconductor manufacturing is one of the most complex industrial processes in the world, and no country has the capacity to make the process entirely domestic. Prime Minister Fumio Kishida has made the global connections a priority in recent talks with his counterparts in the United States and the European Union. In May, the Japanese economy minister visited a semiconductor research facility in New York to discuss cooperation on developing next-generation chip technology. The effort by Japan, the United States and their allies is creating a “new geopolitical landscape,” said Patrick Chen, head of research at CLST, a subsidiary of the brokerage house CLSA. For trade in general, but especially for semiconductors, “the world is being divided into two camps,” he said, “the pan-U.S. allies — that includes, obviously, Japan, Korea and Taiwan — and, on the other side, we have the likes of China, Russia and maybe North Korea.” As for Japan’s domestic investment, Hideki Wakabayashi, a professor at Tokyo University of Science and a top government adviser on semiconductor policy, believes that, with enough government support, the country could recapture at least 20% of the semiconductor market by 2030. Even with subsidies, however, it does not make economic sense for most Japanese companies to invest in domestic chip production, said Masatsune Yamaji, a senior analyst and an expert on semiconductors at the consulting firm Gartner. “If making a fab made a lot of money for Japanese companies, then they would invest in the production capacity,” he said, referring to a semiconductor fabrication plant. “But, in the past 15 years, Japanese companies have not invested in the evolution of the semiconductor production process.” The Japanese chipmaker Rohm received millions of dollars in subsidies from METI to build more energy-efficient chips for industrial applications at its plants overseas. While the company performs some of its operations in Japan, the funding is not enough to persuade it to move its manufacturing back home, said Tatsuhide Goto, the company’s public relations manager. Much as the government
some of its operations in Japan, the funding is not enough to persuade it to move its manufacturing back home, said Tatsuhide Goto, the company’s public relations manager. Much as the government does, the company worries about geopolitical risks to its operations abroad. But, at least for now, he said, “we’re not considering changing our business model.”
Tanker giants sprout from nowhere to keep Russian oil moving At a downtown office block in , packing tape peels off a black door whose handle appears to have been ripped out. A pile of post is strewn on the floor outside. A guy from a neighboring office says the staff moved out a few weeks ago, destination unknown. Almost 1,200 miles away in , a small office in a run down industrial estate, offers no clues that it, too, is a small cog in ’s vast new petroleum supply chain. The two locations are listed on an international maritime database as belonging to firms running $2 billion in tanker assets between them. They assembled fleets in under a year that are now delivering millions of barrels of across the globe. The first address is for a firm called Gatik Ship Management in Mumbai. The second is for Fractal Shipping. They’re part of a sprawling network of maritime operations that came to prominence soon after the invasion of , helping Russia’s exports continue substantially unscathed despite sanctions from the west. “It is this new breed of tanker market players who have helped Russian oil to continue to flow around the world,” said Rebecca Galanopoulos Jones, senior content analyst at VesselsValue, a firm that tracks the prices of thousands of merchant ships. “The sanctions on Russian oil seem to have had very little impact on overall export levels.” Europe banned almost all seaborne from Russia from Dec. 5 and simultaneously joined the Group of Seven industrialized nations in imposing a price cap on the country’s crude sales. That extended to refined fuels on Feb. 5. Anyone wishing to access key western services — especially insurance — had to provide an attestation that the cargoes they were transporting cost $60 per barrel or less. The cap was set high on purpose — the US wanted already discounted Russian crude to keep flowing — and both upstart shippers are using plenty of western insurance. About three-quarters of Gatik’s fleet is covered by mutuals within the International Group of Protection and Indemnity Clubs in London, data compiled by Bloomberg show. For Fractal, the proportion is higher still. Both firms have numerous ships in their fleets covered by one of the International Group’s 13 member organizations, the American Club, whose head office is in New York, according to industry data compiled by Bloomberg. The American Club’s chief operating officer, Daniel Tadros, confirmed his organization covers ships in both firms’ fleets, adding both have provided the so-called attestations — documented statements confirming that oil purchases are in accordance with the G7 price cap. The need for firms like Gatik and Fractal grew because many conventional western shipping firms stopped lifting Russian barrels, either to protest at the invasion or because of the threat of falling foul of sanctions. Even before the measures began, a huge number of tankers started to be sold to a new group of buyers, whose identities and affiliations were often
because of the threat of falling foul of sanctions. Even before the measures began, a huge number of tankers started to be sold to a new group of buyers, whose identities and affiliations were often not clear. Permitted Trade There are no results when searching for the company Gatik Ship Management on India’s Ministry of Corporate Affairs website. A Gatik website address shows that it is under construction. The firm declined to answer questions about its activities. Fractal’s website only has an email address for recruitment. Emails, a WhatsApp message, and a call requesting comment — to addresses and phone numbers provided by people who know Fractal officials — were not returned. Its Dubai address is listed on Equasis as the location for the commercial manager of most of Fractal’s tankers. The firm also recently moved out of a shared work space in Geneva — the home of its head office, according to a manager there. Gatik’s fleet can haul about 30 million barrels of oil and fuels, according to data compiled by Bloomberg. Fractal’s has a transportation capacity closer to 15 million barrels. Almost all Fractal’s and Gatik’s tankers made calls to Russian ports this year, or took Russian cargoes by ship-to-ship transfer, according to tanker tracking data compiled by Bloomberg. India and the United Arab Emirates did not sign up to the price cap, nor do they have other sanctions on Russian oil. They can legally use western services too, providing they give an attestation the cargoes were bought at or below the cap. Russia-Serving Gatik’s earliest recorded tanker acquisition was in June 2022, with its most recent in February this year, according to VesselsValue, a firm that monitors sale and purchase of merchant ships. Fractal’s was in the same month, Equasis data show. One such example is the Gatik tanker Jumbo, which was observed calling at the port of Ust-Luga in Russia’s Baltic Sea on Feb. 11. It is now near Kalamata in Greece, a popular location for ship-to-ship cargo transfers of the nation’s oil, according to ship-tracking by Bloomberg. The ship came under Gatik’s management on Feb. 3, according to Equasis. Russia exported about 3.2 million barrels a day of crude oil from its ports in the two months after the cap and Europe’s imports ban were imposed on Dec. 5, little changed from the prior two months. The two firms are part of the new supply chain network allowing that to happen. Neither Gatik nor Fractal is listed as the beneficial owner of the tankers in their fleets, meaning they are probably operating the ships for others, whose identity is often not made public. They are described as the “registered owners” of their vessels on the American Club’s website. This is a common form of vessel ownership in the shipping industry but does not denote the ship’s true owner. Beneficial ownership is a more important detail for understanding who really owns the assets and, according to information from IHS, which maintains a shipping database for the
the ship’s true owner. Beneficial ownership is a more important detail for understanding who really owns the assets and, according to information from IHS, which maintains a shipping database for the International Maritime Organization. “We’re seeing how easy it is to transfer ownership with these large, new groups,” Steve Cicala, co-director of the Project on the Economic Analysis of Regulation at the National Bureau of Economic Research.
Tesla ready to drive in up to USD 2 billion, but with riders US electric carmaker is willing to invest up to USD 2 billion for setting up a local if the government approves a concessional duty of 15% on imported vehicles during its first two years of operations in India. According to sources aware of the matter, Tesla has approached the union government with a detailed proposal linking the quantum of to the number of cars it can import at lower duty. The company is willing to invest up to USD 500 million if the government extends for 12,000 vehicles and can increase this up to USD 2 billion if the reduced duty is approved for 30,000 vehicles. People close to the development said the government is examining the viability of the upper range of Tesla's proposal - the investment of USD 2 billion to set up a plant. Bank guarantee The government also wants to reduce the number of cars that can be imported at a concessional tariff, compared to the numbers proposed by the American carmaker. It is evaluating if concessional tariffs should be restricted to 10% of the total EVs projected to be sold in India in the current fiscal year (10,000 units) and it can be increased by 20% for the second year. Around 50,000 EVs were sold in FY23 and this is expected to go up to 100,000 in FY24. Tesla may commit to localise up to 20% of the value of made-in-India cars in 2 years and increase that to 40% in 4 years. The proposal is being jointly evaluated by the department for promotion of industry and internal trade (DPIIT), ministry of heavy industries (MHI), ministry of road transport & highways (MoRTH) and the under the guidance of Prime Minister's Office (PMO). Emails sent by ET to Tesla and the ministry of commerce & industry seeking comments remained unanswered at the time of going to press Thursday. India imposes 100% on cars with cost, insurance, and freight value of more than USD 40,000, and 70% on vehicles cheaper than that. Further, the government may require a bank guarantee linked to the capital commitment to recoup loss on account of import duty if the US carmaker does not deploy funds as committed. The Austin, Texas-based company is requesting the government not to insist on a bank guarantee, the sources cited said. Tesla is planning to commence India operations with three vehicles - the Model 3, and a new hatchback, priced at USD 39,000 (Rs 32.37 lakh), USD 44,000 (Rs 36.52 lakh) and USD 25,000 (Rs 20.75 lakh), respectively, in the US. According to a person in the know, the Model 3 and Model Y are likely to be priced at Rs 38 lakh and Rs 43 lakh in India if concessional import duty is granted. A possible investment of USD 2 billion by Tesla was reported by Bloomberg on November 21. Details of Tesla's proposal as well as the government's thinking on the matter have not been previously reported. Senior government officials said an initial round of discussion took place with executives from Tesla recently. "Wherever Tesla sets up a base, it does so with
have not been previously reported. Senior government officials said an initial round of discussion took place with executives from Tesla recently. "Wherever Tesla sets up a base, it does so with its entire supplier base. So, the investments are significant. They already source from some component makers here," said a person aware of developments. The sources cited said that discussions were ongoing, and details could change. Tesla is looking to source USD 1.7-1.9 billion worth of auto parts from India this year, up from USD 1 billion in FY23, minister for commerce & industry Piyush Goyal said recently during his trip to Tesla's factory in the US. Separately, the central government has said any incentive extended to facilitate local production of will be the same for foreign and domestic players, amid concerns raised by automakers in India over possible concessions in import duty to the American carmaker. New Delhi said it is not in favour of any company-specific exemptions. "The government's approach is for the industry as a whole and not for any specific company because we have very strong domestic companies in this sector," said an official, adding that any incentives offered will be equal for domestic and foreign investors.
No adverse impact of Red Sea crisis so far on India's trade There is no on India's exports and imports so far due to the , an official said. The official said that the transportation cost has increased as the shippers are taking a long route. "There is no impact in volume terms so far. Only the transportation cost is up. It has risen for all the countries. It has not affected the trade adversely so far. We have to see the long term demand, but it will depend on the EU and the US," the official added. These two regions account for over 30% of the country's total exports. However, exporters said that they are keeping their fingers crossed as due to the significant jump in freight cost, India's exports may be impacted. The trade data for January will be released by the commerce ministry on February 15. In December last year, exports rose marginally by one% to USD 38.45 billion. Due to the attacks by Yemen-based Houthi rebels on commercial ships, the movement of goods from the Red Sea, the world's busiest shipping route, has disrupted the global supply chains as vessels have to take long routes for exports and imports. The immediate ripple effects are seen in increased freight costs, mandatory war risk insurance, and significant delays due to rerouting. According to think tank GTRI, the average container spot rates have more than doubled since early December 2023. Basmati rice exporters face freight costs soaring to USD 2,000 per 20-tonne container for destinations around the Red Sea, marking a 233% increase, it has said in a report. Houthi group has been using drones and rockets to target ships, which are transporting goods through the strait of Bab al-Mandab, which is a crucial shipping route connecting the Mediterranean Sea to the Indian Ocean. The strait, vital for 30% of global container traffic, has seen increased tensions with various incidents in 2023, including attacks and military manoeuvres by regional and global powers. India is heavily reliant on this route for trade and energy imports and due to the disruptions, exporters here have to diversify their trade routes. Strikes have been continuing for many years but escalated this year sharply, with militants now using anti-ship ballistic missiles. To avoid attacks, most large shipping firms, since December 15 last year, have stopped using the Bab al-Mandab straits for trade with Europe via the Red Sea and Suez Canal. The closure of this route snaps a critical trade link between Europe and India and all of Asia. Ships going to Europe will now move via a much longer route around the Cape of Good Hope, the bottom tip of Africa. This change increases voyage distances by 40% and raises transportation time and cost. The two main shipping routes from India to Europe are via Bab-el-Mandeb Strait, Suez Canal and Red Sea; and via Cape of Good Hope, encircling Africa. The Red Sea route is shorter and faster, making it the preferred option for most shipping companies. It starts from major Indian ports
Canal and Red Sea; and via Cape of Good Hope, encircling Africa. The Red Sea route is shorter and faster, making it the preferred option for most shipping companies. It starts from major Indian ports like Mumbai, JNPT, or Chennai, heads westward through the Arabian Sea, enters the Red Sea, and navigates through the Suez Canal into the Mediterranean Sea. From there, ships can reach various European ports depending on their destinations. On the other hand, the Cape of Good Hope route is longer and slower than the Suez Canal route, but it avoids the potential for delays or disruptions. It is used for bulk cargo shipments where time is less critical or when political instability in the Middle East raises concerns about using the Suez Canal. It starts from the Indian ports, heads southward across the Indian Ocean, rounds the Cape of Good Hope at the southern tip of Africa, and then sails northward along the west coast of Africa before entering the Mediterranean Sea and reaching European ports. India is heavily reliant on this strait for its crude oil, LNG imports and trade with the Middle East, Africa, and Europe.
Bajaj Finance partners with new partner ICICI Lombard General Insurance to offer motor insurance policies has partnered with along with other partners to provide car and two-wheeler insurance plans on the platform Bajaj Finance Insurance Mall. These policies can be bought instantly on the platform through an all-digital and seamless customer experience journey. The Lombard Car and Two-wheeler Insurance policies offer comprehensive damage coverage, including third-party cover and various add-on benefits to vehicle owners. These policies provide extensive coverage against various risks and damages to vehicles. Here are some of the key features and benefits offered by ICICI Lombard two-wheeler and car insurance policies: Offers comprehensive coverage: Get complete coverage for the insured vehicle as well as for the third party. Offers own damage cover: These policies cover damages caused to the insured vehicle by accidents, thefts, natural calamities and fire. Offers third-party cover: Get financial coverage for third-party liabilities. In case the policyholder is at fault and causes damages to third-party property or injures the person, the policy will cover all the incurred expenses. It will compensate the third party on behalf of the policyholder for the repair cost or medical expenses, if any. Offers personal accident cover: This cover provides financial support in case of an accident resulting in injuries or death of the ownernon-electrical accessories like fog lights, music system, seat covers and more. Why choose ICICI Lombard motor insurance plans? To enhance customer experience, ICICI Lombard has, over the years, brought in innovative solutions. Here's why one should consider buying ICICI Lombard motor insurance. The insurance company offers tech-enabled vehicle insurance plans for its customers to enhance customer experience. Benefit from its 100% digital claim inspection and settlement process. Use the IL Take Care app for instant policy issuance and easy claims. This app helps raise claims and track the claim status easily on mobile. Furthermore, the feature on the IL Take Care app initiates a live survey. This allows one to capture live video of the vehicle damages from all angles and upload it for instant approval. The insurance company also offers robust customer support, with 24x7 call and chat assistance. ICICI Lombard has 12,000+ network garages across India where customers can get their vehicles repaired without paying any amount upfront. Here customers can benefit from the cashless claim facility and avail quality services. Why buy ICICI Lombard motor insurance through Bajaj Finance Insurance Mall? Bajaj Finance offers a seamless customer experience and a hassle-free insurance buying process which involves zero paperwork. The company ties up with leading insurance companies in India to offer curated and customer-centric insurance products. The buying process is simple, transparent, and secure. Users can choose from various car
ties up with leading insurance companies in India to offer curated and customer-centric insurance products. The buying process is simple, transparent, and secure. Users can choose from various car insurance and two-wheeler insurance policies on Bajaj Finance Insurance Mall and purchase seamlessly in just a few clicks. This makes it easier for buyers to compare and buy vehicle insurance policies that suit their requirements and budget. Disclaimer: T&C Apply. Bajaj Finance Limited ('BFL') is a registered corporate agent of third-party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Limited, ICICI Lombard General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Tata AIG General Insurance Company Limited, Niva Bupa Health Insurance Company Limited, Aditya Birla Health Insurance Company Limited, Manipal Cigna Health Insurance Company Limited and Care Health Insurance Company Limited under the composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale.
Union Bank, NPCI launch credit card for MSME borrowers to meet biz expenses NEW DELHI: To tide over the challenges to meet business-related expenses by , and the National Payments Corporation of India ( ) have jointly launched a credit card for the borrowers, offering interest-free credit for up to 50 days. The ' ' is a new digital payment tool available to the MSME customers of Union Bank of India for meeting their business-related operational expenses with interest-free credit for up to 50 days, according to a joint statement released on Friday. The credit card will provide a simplified payment mechanism to MSMEs (micro, small and medium enterprises) to meet their business-related operational expenses, it said. Among others, the card also offers the facility to the customers on their business-related purchases. MSMEs will also get specially curated efficient business services on this card, which will help them in taking their business on most of the digital platforms. Additionally, they will also be benefitted in the form of accidental insurance coverage of up to Rs 10 lakh, domestic airport lounge access of two times per quarter, and other rewards using this card. "This credit card will reduce the demand for cash withdrawal by MSME for business expenses besides simplifying their payment mechanism. "With the newly launched credit card facility coupled with the regular working capital limits, MSMEs can reap the benefits of best in class products being made available to them by the bank," Nidhu Saxena, executive director of Union Bank of India, said. It will improve the digital delivery channel in servicing the MSME clientele in a fast-growing tech-savvy economy, Saxena said. Praveena Rai, chief operating officer of NPCI, said, "We believe this initiative will digitally empower MSMEs and help them streamline their regular business expenditure and finances. MSMEs are considered to be the backbone of the economy and we are confident that this card will support MSME with convenient, credit card digital payments." RuPay MSME cards will also support the businesses in their journey of contemporary digitisation, she said. Rai said that there has been portfolio expansion of RuPay from retail users to business users. Also Read:
Odisha to go for new registration for vintage vehicles The Odisha government Monday said it has initiated separate registration of in a bid to fulfil the ambition of owners intending to keep such vehicles and enjoy exemption from scrappage policy in the state. The owners, enthusiasts and collectors of vintage vehicles, classic vehicles of more than 50 years can apply for special number plates and enjoy exemption from scrappage in Odisha, a senior official of the State Transport Authority (STA) said. The (MoRTH) has a provision under CMV Rule, 1989 for the registration process of , he said, claiming that Odisha would be the first state in the country to implement it. "Odisha being a state of heritage & culture is the first state to implement this provision so as to fulfil the ambition of the vehicle owner intending to keep such a vehicle," said Dipti Ranjan Patra, , Technical. He said, "MoRTH has taken initiatives to discourage the use of old vehicle by introducing scrapping policy. At the same time to preserve and promote the heritage of old vehicles in India, Central Government has formalised the registration process of vintage motor vehicles. The new rules shall provide salient features such as retention of old already registered vehicles with a new Vintage registration mark 'VA' series (Unique Registration Mark). " According to the provision, two-wheelers and four-wheelers (personal use) that are more than 50 years old from the date of their first registration (including imported vehicle) shall be defined as the Vintage Motor Vehicles. However, only vehicles that have no substantial overhaul including modification in chassis or body shell, andre-registration will be made as per Form 20 and shall be accompanied by an insurance policy, fee, bill of entry in case of imported vehicles, and old RC in case of an already registered vehicle in India. The old certificate of registration of a motor vehicle after being registered as Vintage Motor Vehicle, will be marked as cancelled and the owner may retain such cancelled certificate of registration for historical purposes only, he said. The will issue a certificate of registration as per Form 23A after inspection of the vehicle and subject to the condition that the vehicle is fit and having valid PUC (pollution under control) certificate. If the vehicle is approved, a fresh registration mark will be assigned to the eligible vehicles for Vintage vehicle as "XX VA YY**", where VA stands for vintage, XX stands for State Code, YY will be a two-letter series and "**" is a number from 0001 to 9999 allotted by the State Registering Authority. "Under the new law, the issue of a new certificate will cost the owner Rs 20,000 and will be valid for a period of 10 years. Subsequently, the renewal of said registration will cost the owner an additional Rs 5,000 and shall be renewable for a period of 5 year," the official said. However, the official said according to a provision, the Vintage motor vehicles shall
will cost the owner an additional Rs 5,000 and shall be renewable for a period of 5 year," the official said. However, the official said according to a provision, the Vintage motor vehicles shall not be driven on roads for regular/commercial purposes. A vintage motor vehicle is allowed to run on Indian roads only for display, technical research or taking part in a vintage car rally, , exhibitions, vintage rallies, and to and fro to such exhibition or car rally, he said. The owner of a Vintage Motor Vehicle after assignment of Vintage number can also sell his vintage vehicle by applying for transfer of ownership of the motor vehicle and also can change his address by making application in the manner as provided under the Motor Vehicles Act, 1988, the official said. Also Read:
15 oil vessels blocked at Turkish Straits amid EU sanctions on Russian oil Fifteen oil tankers were banned from passing through the Turkish Straits due to a lack of proper insurance amid the European sanctions on Russian oil, 's maritime authority said. The Protection and Indemnity (P&I) insurance of these ships is invalid due to the EU sanctions and such insurance cannot be compensated in the event of an accident, the said on Thursday in a statement. "Crude oil tankers that cannot offer valid P&I insurance are not allowed to pass through the Turkish Straits and this rule has been in effect since 2002," said the statement, adding it would continue to block the passage of oil tankers without appropriate insurance letters. The authority noted that Turkey was not obliged to implement sanction decisions of other countries and international organisations, except those taken by the , reported. "However, we do not take the risk that the insurance company will not cover its liability in the event of a catastrophic accident that may occur if a sanctioned ship or a cargo passes through the Turkish Straits," it said. Since December 1, Turkey has started to seek confirmation from the insurance companies that the crude oil tankers to pass through the Turkish Straits are fully insured, the statement added. The EU's sanctions on Russian oil, which came into force on Monday, prohibit tankers transporting Russian crude from accessing European maritime insurance unless the oil is sold for $60 per barrel or less. Turkey announced its own new insurance regulation before the EU price cap decision, and several tankers so far have been stopped from entering Turkish waters. Turkey has avoided calls by the US and its Western allies to join the anti-Russian sanctions over the Ukrainian crisis. Also Read:
Hertz's EV sale to fan cost concerns, dampen used-car market Electric vehicles were already considered expensive and hard to repair. Now their image could take another hit as rental giant Hertz dumps 20,000 of them, including Teslas, for gas-powered cars. Hertz, the largest U.S. fleet operator of EVs, has blamed the sale on high repair costs and weak demand for the vehicles it offers on rent. Analysts and industry experts believe the move will affect the second-hand market for EVs and dissuade buyers who are already rethinking big purchases due to higher borrowing costs. "The larger impact of is the perception hit to the technology," said , analyst at used-car aggregator iSeeCars.com. "Mainstream consumers are already hesitant to buy an EV, and this news only supports their concerns." The higher costs associated with repairing EVs stem from a lack of sufficient expertise in dealing with such vehicles and challenges in getting the replacement parts as they are still very new, industry experts said. Hertz CEO Stephen Scherr flagged elevated costs caused by damages to certain EVs, particularly Teslas, last year at a conference. Tesla and Polestar, whose cars are popular with car rental firms, did not respond to a request for comment. Car rental firm Avis and Enterprise also did not respond to a query on its EV strategy. CEO Scherr said Hertz limited the torque and speed on the EVs and offered them to more experienced users to ensure easier rides after certain renters had front-end collisions. Growing pains for startups and legacy automakers that are new to the technology also mean that EVs have been facing more problems than gas-powered cars, according to a survey last year by non-profit Consumer Reports. The survey, covering owner responses on more than 330,000 vehicles, showed that EVs from the past three years had 79% more problems than conventional cars. For many EVs, there is no way to repair or assess even slightly damaged battery packs after accidents, which forces insurance companies to write off the cars with a few miles - leading to higher premiums and undercutting gains from going electric. German rental firm SIXT said on Tuesday it signed a multi-billion euro deal with Stellantis to buy up to a quarter of a million vehicles. The deal will also see Stellantis provide some EVs to the German mobility service provider, but the companies did not offer further details. Hertz' move underscores a wider shift in the EV landscape. After pledging billions of dollars for their EV ambitions in recent years, legacy automakers have pulled back their production plans as demand slows. EV sales growth in North America is expected to slow to about 27% this year from a scorching 72% in 2023, according to market research firm Canalys. CUT-PRICE SALE Hertz may have to dispose of the EVs at hefty discounts due to the higher miles they have covered as well visible damage such as nicks, scratches and dents, according to experts. "Having rented several Model 3s
to dispose of the EVs at hefty discounts due to the higher miles they have covered as well visible damage such as nicks, scratches and dents, according to experts. "Having rented several Model 3s from Hertz over the past six months, my observation is some of them are cosmetically pretty rough," said Scott Case, CEO of EV research firm Recurrent Auto. Nearly all of the more than 500 used EVs the company has on sale are Teslas, with some Model 3 compact sedans being listed for as little as USD 21,000 - half the price of a new car and up to USD 10,000 lower than cars of similar mileage at other sellers. Such a cut-price sale would likely reverberate across the second-hand market of EVs, which already command a lower price than conventional cars. The value of used EVs has dropped 33.7% between October 2022 and October 2023, even as the overall used car market dropped only 5.1%, according to data from iSeeCars. Hertz could, however, benefit from the USD 4,000 tax credit for some used EVs under the Inflation Reduction Act, which brings down the price of some vehicles it is trying to sell well below many gas-powered cars. Some experts also said the high repair costs of EVs are a short-term challenge that comes with any technology and will ease as more of those vehicles hit the road. "The infrastructure has to catch up with the transition, and that will bring the prices down," said Lynne McChristian, director of the Office of Risk Management and Insurance Research at the University of Illinois.
Ola applies for licence to operate e-bike taxis in Karnataka ANI Technologies on Tuesday submitted an application with the Karnataka transport department seeking a licence to operate an EV bike taxi service in and other towns, official sources said. Karnataka allows operation of EV two-wheelers as bike taxis under its Electric Bike Taxi Scheme, 2021. The regulations, however, require the EV to be registered as a motorcycle in the transport category and used as a public service vehicle. On Saturday, cofounder Bhavish Aggarwal had announced that the EV maker was re-starting Ola Bike, the company’s two-wheeler taxi service, in Bengaluru. “This time, all electric and our own S1 scooters! INR 25 for 5km, INR 50 for 10km. Lowest cost, very comfortable and great for the environment! Will scale across India over next few months,” he posted on social media platform X. In another post, he said ride hailing has been concentrated in the top 15-20 cities so far. “With electric bike taxis we will change that and go deeper into smaller towns. Will be starting Ola e bike taxi services in a Bengaluru has emerged as a tense market for bike taxis with auto drivers frequently clashing with them. The auto drivers blocked a few bike taxis during their recent strike and manhandled the riders. Videos of the incidents went viral later. A ban on bike taxis is one of the demands auto drivers have placed before the government. Transport Minister has promised to crack down on bike taxis that have been operating in Bengaluru illegally. Special counsel to be appointed The Transport Minister, speaking to ET on Tuesday, said the was taking steps to appoint a special counsel to argue a case related to two-wheeler taxi service Rapido in the Karnataka High Court. “I have discussed the subject with the Additional Advocate General. We will soon have a special counsel,” the minister said, adding that the government would take the legal route to halt Rapido in its tracks. A single-judge bench of the Karnataka High Court had on August 11, 2021 directed the transport authorities not to take any “coercive action” against Rapido’s bike taxi service. This allowed the company to offer its services even with non-EV bikes, in the absence of any regulations by the government. Rapido, a Bengaluru-based startup backed by and , has been offering app-based bike taxi services in Bengaluru since 2016. The company has been operating bike taxis under a stay order, and the previous government did not take any interest in having the stay vacated, Reddy said. “This was one of the major demands of the autorickshaws, and we are taking steps to address them.” A few states, including Andhra Pradesh, Bihar and Goa, have allowed bike taxis. Goa, in fact, has had bike taxis, known locally as pilots, for decades. In Delhi, the high court had directed the government not to take any coercive action on bike taxis operated by Uber and Rapido until a policy framework was put in place. The set this order aside in June.
the high court had directed the government not to take any coercive action on bike taxis operated by Uber and Rapido until a policy framework was put in place. The set this order aside in June. Karnataka’s transport and labour officials will meet on Wednesday to work on insurance cover for auto drivers, one of the main demands of the striking transporters. The government, the minister said, was also working on its own ride-hailing app along the lines of those offered by , and following in the footsteps of neighbouring Kerala and Goa. The transport department has asked the e-Governance department to take steps to develop the mobile app with various features, including those related to the safety and security of passengers, he said.
Berkshire sheds General Motors, Procter & Gamble as it builds cash Hathaway said on Tuesday it has shed its holdings in and Procter & Gamble, and trimmed its stake in Amazon.com , as the conglomerate controlled by billionaire boosted its cash pile to a record USD 157.2 billion. In a regulatory filing detailing its U.S.-listed stock holdings as of Sept. 30, Berkshire reported no holdings in GM and P&G, after reporting stakes of USD 848 million and USD 48 million in June, and said it reduced its stake in Amazon by 5%. Berkshire also appeared to have shed what had been a USD 621 million stake in Celanese, a specialty materials company. One new position was an USD 8 million stake in Atlanta Braves Holdings, which indirectly controls the Major League Baseball team and The Battery Atlanta, a mixed-use development next to the Braves' Truist Park. The Braves had been split off from Liberty Media, another Berkshire , in July. Tuesday's filing detailed investments that comprised most of Omaha, Nebraska-based Berkshire's equity portfolio, which totaled USD 318.6 billion as of Sept. 30. Berkshire sold USD 7 billion of stocks, including some of its big investment in Chevron, and bought just USD 1.7 billion in the third quarter, a down period for its stock holdings led by Apple, whose share price fell 12%. For all of 2023, Berkshire has sold USD 23.6 billion more stocks than it has bought. The net sales contributed to Berkshire's record cash stake, which is about the same size as its USD 156.8 billion stake in iPhone maker Apple. Berkshire's filing does not say which investments are Buffett's, which are from his portfolio managers Todd Combs and Ted Weschler, and why the investments were made. Larger investments are normally Buffett's, and investors often try to piggyback on Berkshire's trading, reflecting Buffett's reputation as one of the world's greatest investors. To that end, Berkshire decided not to disclose one or more of its holdings, and said it has asked the U.S. Securities and Exchange Commission for confidential treatment. Berkshire has occasionally requested such treatment for major investments, including multi-billion-dollar stakes in IBM and Exxon Mobil more than a decade ago. Neither appears to be a current Berkshire investment. In other third-quarter sales, Berkshire finished exiting video game maker Activision Blizzard, which was bought by Microsoft last month, and reduced its holdings in life insurer Globe Life. Berkshire also shed about two-thirds of its stake in Markel Group, a notable change given that some investors have in recent years viewed the insurance and investment company as a "mini-Berkshire." Buffett, 93, has run Berkshire since 1965. His conglomerate also owns dozens of businesses including the Geico car insurer, BNSF railroad, energy and industrial companies, and consumer brands such as Benjamin Moore, Dairy Queen, Duracell, Fruit of the Loom and See's Candies.
Porsche exploring assembly of Cayenne SUV in India amid growing domestic demand is exploring opportunities to start assembly of its iconic model in India amid an “unprecedented surge” in demand, senior industry executives aware of the German luxury carmaker’s plans told ET. Porsche AG board members Detlev von Platen, executive board for sales and marketing, and Matthias Becker, vice president of region overseas and emerging markets, are in Delhi to meet senior government officials, the sources said. They are scheduled to meet officials at Invest India and Niti Aayog on Tuesday. “Porsche is examining possibilities to locally assemble the SUV (Cayenne) to avail of tax benefits and expand its footprint in this fast-growing space,” a senior executive in know said on condition of anonymity. The company’s sales in India grew 64% on year to 779 units in 2022 with Cayenne accounting for almost half of it, the person said. Porsche did not share any information on the development in response to a query from ET. India recently surpassed Japan to become the third largest automobile market in the world. The country imposes 100% import duty on cars with cost, insurance and freight value of more than USD 40,000 and 70% on cheaper vehicles. Customs duties on knocked down auto parts, which are then locally assembled in the country, are substantially lower at 15-35%. Porsche currently manufacturers vehicles in Germany and in Slovakia. The company’s first assembly facility outside of Europe will open shortly in Malaysia, where Cayenne will be produced for the local market only. India could join the ranks if discussion with the government progress favourably. Porsche currently sells a range of imported cars like , Cayanne and priced between INR 88 lakh and INR 1.84 crore ex-showroom in India. “The government is keen that carmakers manufacture vehicles indigenously rather than bring in imported models for sale from neighbouring countries,” a second industry executive said. “They are against lowering import duties as it stands to impact adversely local jobs and investments. Carmakers are aligning strategies accordingly to tap into the massive potential the market here offers.” American electric carmaker Tesla – which had earlier urged the government for a cut in import duties to start operations in the country – recently tweaked its plans to enter India. CEO Elon Musk in June said the company was looking to invest “as soon as humanly possible”. The location for a factory could be finalised by the end of the year, according to reports. Tesla currently has two manufacturing facilities outside the US – near Berlin and in Shanghai. The increased focus on India comes at a time when its economy is projected to grow at a healthy pace even as several advanced economies including the US, Germany and the UK are beset with recessionary risks. The International Monetary Fund last month raised India’s GDP growth forecast for this fiscal year to 6.1%. In comparison, the US is
the US, Germany and the UK are beset with recessionary risks. The International Monetary Fund last month raised India’s GDP growth forecast for this fiscal year to 6.1%. In comparison, the US is expected to grow 1.8% and the UK by 0.4%, while the German economy is projected to contract by 0.3%. To be sure, sales of luxury vehicles in India are limited, with around 38,000 units sold in the segment in 2022. However, volumes are growing on a fast clip and are estimated to top 100,000 units in the next 10 years. As per a report by property consultant Knight Frank, India ranks sixth in the pace of growth in the number of self-made people with net assets worth USD 30 million or more and are under the age of 40 years — a key customer segment for luxury products including vehicles.
Russia's oil export ban may bolster India crude imports 's decision to ban oil exports to potential Western buyers supporting a price will likely boost Indian imports of Russian crude, industry executives told ET. The , which insists on a strict price cap on supplies from Moscow, has already imposed a ban on the bulk of n crude exports. Some residual volumes still being imported into via pipelines could now be affected by the latest move. This could leave Russia with surplus crude oil volumes, something Moscow may want and China to absorb. However, since China is struggling with Covid infections, it may not have the demand for incremental Russian supplies, an Indian refinery executive said. "This would leave India with an opportunity to import more from Russia," said this executive, who didn't want to be named. This would also give India a greater bargaining power with prices, said the executive. The US and its allies have barred their shippers, financiers, and insurers from backing any trade in at prices exceeding $60 per barrel. Some Russian Grades Trading Below Price Cap This has prompted Russia to ban the sale of its oil from February 1 to "foreign companies and individuals if the contracts on these sales include the use of this mechanism, directly or indirectly". The ban "applies to all stages of sales up to and including the final buyer," the Russian government said in a statement. To be sure, the prices of certain crude-oil grades might not breach the price ceiling. "It's clear that the oil purchase contracts can't have any reference to the price cap," said another industry executive, unwilling to be named. "But that doesn't mean the contract prices will necessarily be above the price cap since some Russian grades are already trading below the cap." Russia's flagship crude Urals is currently trading around $54 per barrel, lower than the cap of $60, and at a deep discount to the international benchmark Brent, which is around $82. ESPO and , Russia's other crude grades, are selling for $71 and $76 per barrel, respectively. "It's unclear how Russia will implement its plan going up to the final buyer," said the second executive cited above. Russia relies heavily on traders to sell its crude and it will be hard to track every cargo, especially at a time when shipments are changing destinations and customers midway. Russia has also amassed a large number of ships to deal with any shortage that might arise due to the price cap. Executives believe the Russian fleet will be helpful in transporting such grades of oil that are trading above the price cap. For the flagship Urals crude, which is trading below the cap, services from the West will anyway be available. In November, Urals comprised about 80% of India's Russian crude-oil imports. Also Read:
About INR 10.7-lakh-crore stuck in delayed payments to MSMEs, amounting to 6% of India’s GVA Imagine despite it being three days past the salary day, not only is there no money credited into your account, but you have no clue when it will happen. How do you plan expenses and savings with such uncertainty? A majority of ’s , payments being delayed and the associated uncertainty is the norm rather than an exception. The buyers realise goods and services, but routinely delay payments. Our quantitative analysis estimates that approximately INR 10.7 lakh crore is stuck as in India, amounting to 6% of India’s (Gross Value Added) for FY 2020-21. are a critical issue not only affecting MSMEs growth but disrupting the supply chains and denting the economy, but it's not unique to India. Most enterprises around the world conduct business by offering credit to their buyers, and consequently face problems with receiving their payments on time. However, there are variations of quantum, longevity of delay variations in their solutions available, mitigation strategies and the general business environment. This article compares different countries trying to mitigate delayed payments, which serves as a useful starting point to understand if India can adopt similar solutions and the peculiarities in India which might render certain solutions inapplicable though they’ve worked for other countries. Law and regulations Most of Europe, the US, Japan and India have laws to check Delayed Payments and encourage prompt payments. In the US, the Prompt Payment Act is limited to government contractors only, the EU's Late Payment Directive covered all commercial transactions, and Japan protects subcontractors that supply to both corporations and the government. In India it is applicable to all micro and small enterprises. These laws typically define the maximum number of days within which suppliers need to be paid after delivering goods and services and generally penalise delays. By doing so, these laws are intended to ensure sufficient liquidity to small businesses, and provide compensation and legal recourse to enterprises if their payments get delayed. The laws, however, have limited success in curbing the problem because of weak enforceability. The legal process is lengthy and costly besides straining the buyer-supplier relationship which is detrimental to repeat business. The supplier enterprises’ therefore have often shown preference for other recourse such as availing short-term borrowings, accepting discounted payments or having a mix of buyers with both short and longer payment terms to ensure sufficient working capital. Market solutions Market solutions such as working capital loans, trade credit insurance, and invoice discounting are used as a mitigation measure to ensure sufficient liquidity for enterprises to run. These solutions are most prevalent in countries such as Taiwan and South Korea. While Taiwan has the best adherence to payment terms among all major
sufficient liquidity for enterprises to run. These solutions are most prevalent in countries such as Taiwan and South Korea. While Taiwan has the best adherence to payment terms among all major economies, it also has the lengthiest payment terms offered by the suppliers. The presence of these solutions enables enterprises to offer longer payment terms and reduce the impact of defaults. For market solutions to work, formal financial institutions need to address the constraints of small businesses. Taiwan and South Korea have the highest financial coverage of SMEs among all major economies, with the majority of the total borrowings extended by formal financial institutions are to SMEs. The market solutions have limited impact in countries where formal financial institutions are unwilling to serve smaller businesses. Some of these solutions also require the active participation of the buyer, such as in invoice discounting where buyers need to accept the invoices before they can be discounted. In countries with a weak prompt payment culture, the efficacy of these solutions remains low and questionable. Moral appeal Appeals to larger buyers to honour their obligation to pay on time are routinely made by governments, trade associations, and political leaders. While they are not legally binding, they potentially create persuasive pressure on defaulters in the ecosystem where brand reputation affects business outcomes. An example of such a measure is the Prompt Payments Code (PPC) in the UK in 2008 to ensure a good payment culture in the country. Businesses can commit to the code, through which they agree to pay their suppliers on time, provide guidance to suppliers on payment procedure and encourage other actors in their supply chain to commit to good payment practices. Since such appeals are centred around voluntary adoption by buyers, their uptake is limited, with UK’s PPC having a little over 3000 companies signing up. It could also lead to an adverse selection problem where companies with good payment practices are more likely to subscribe to them while others won’t. The value of moral appeal lies in building widespread awareness about the issue as well as in calling out the defaulters when it comes to prompt payment. Mitigation of delayed payments in India India has a history of having legal and regulatory safeguards to protect MSMEs from delayed payments. The Interest of Delayed Payments (IDP) to Small Scale and Ancillary Industrial Undertakings Act, 1993 was the first legal measure to ensure timely payments by mandating buyers to pay interest to MSME if payments were due for more than 30 days. This was replaced by the MSME Development Act, 2006, which was similar to the IDP Act, 1993 apart from changes to the interest rates and the number of days in which payments should be made. The threshold for making payments was increased to 45 days. These laws suffer from the same limitations in enforceability that have been discussed above. Samadhaan is a
which payments should be made. The threshold for making payments was increased to 45 days. These laws suffer from the same limitations in enforceability that have been discussed above. Samadhaan is a platform introduced by the government for MSMEs to raise disputes over the non-payment of dues. The platform currently has complaints raised by 1.08 lakh applications filed MSEs with delayed amounts totalling to Rs 28,085 crore since its launch in October 2017. When compared to delayed payments estimates of INR 8.55 lakh crores, it indicates the limitations of legal remedies. India has a history of market solutions to ease the burden of delayed payments such as (TReDS) and SIDBI-NSE Trade Receivable E-discounting Engine (NTREES), which MSMEs could use to securitize their receivables, thus easing the working capital crunch due to delayed payments. This led to commercial platforms such as M1xchange, Invoicemart and RXIL where MSMEs can get financing on the basis of their unpaid invoices. The adoption of TReDS has been limited due to the reluctance of buyers to get onboarded on the platform. The three TreDS platforms together have around 3000 buyers and 30,000 sellers, which is insignificant when compared to the 60,000 companies with revenues greater than INR 50 Crore and 78.16 lakh MSMEs registered on Udyam. Solutions such as working capital loans and trade credit insurance have seen limited uptake due to the low penetration of formal finance in the MSME sector. India is yet to have an equivalent to the Prompt Payments Code in the UK. The Global Alliance for Mass Entrepreneurship (GAME) in collaboration with Omidyar Network India and D&B is attempting to set up the first such initiative towards creating a prompt payments culture through the Prompt Payment Pledge as part of the ongoing campaign against Delayed Payments. To conclude, from the experiences of other countries, no single solution has been successful in dealing with delayed payments, but a combination of these solutions can address delayed payments and create an environment for MSMEs to flourish and grow. Though complex, delayed payment is a solvable problem. (The writer is a consultant at GAME - Global Alliance for Mass Entrepreneurship. He holds a masters in Sociology from the Delhi School of Economics) Also Read:
Jawa Yezdi partners with Flipkart to sell premium motorcycles has partnered with , becoming the first premium motorcycle manufacturer in India to offer its products on the e-commerce platform. This collaboration aims to make high-end motorcycles more accessible to enthusiasts across the country, reflecting ’s digital strategy to enhance customer experience and broaden its market reach. The collaboration will leverage Flipkart’s user base of over 500 million to enable motorcycle enthusiasts from diverse regions in India to explore, compare, and purchase from the entire range of Jawa and Yezdi motorcycles. This strategic move is expected to streamline the discovery and purchase process, thus improving accessibility. An easier access For customers, this partnership offers numerous benefits. By making the Jawa and Yezdi ranges available on Flipkart, enthusiasts can now browse and explore motorcycles at their convenience from home. This approach significantly improves accessibility, particularly for those in remote areas. The streamlined purchase process integrates online convenience with necessary offline steps. After booking a motorcycle online, customers will visit their assigned dealerships to complete essential tasks, such as RTO registration, insurance, and taxes, ensuring a smooth transition from selection to ownership. Ashish Singh Joshi, CEO of , said, "Our collaboration with Flipkart marks a significant milestone in the premium motorcycle segment. By bringing Jawa and Yezdi motorcycles to Flipkart's platform, we're enhancing the discovery and purchase experience for enthusiasts across India. This partnership allows customers to explore our entire range, compare models, and understand the unique heritage and performance of our bikes, all from the comfort of their homes. We're not just selling motorcycles online; we're offering a gateway to the Jawa and Yezdi lifestyle. This collaboration streamlines the journey from interest to ownership, making it more convenient for riders to connect with our brands. It's about bringing the showroom experience online while maintaining the premium touch that our customers expect." Variety of financing options The platform’s interface allows customers to compare various models, read verified user reviews, and gather comprehensive information to make informed purchasing decisions. Financially, the collaboration introduces attractive options such as no-cost EMIs, Buy Now, Pay Later schemes, and EMI plans with no down payment, further enhancing the affordability of . Additionally, customers can benefit from cost savings, receiving up to INR 22,500 in value on selected models. This includes cashback when transactions are completed using the Flipkart Axis Bank Credit Card, providing extra value to buyers. Jagjeet Harode, Vice President -- Electronics at Flipkart, added, "This partnership with Jawa s showcases Flipkart's unique ability to revolutionise how premium products are discovered and purchased online. Our
Vice President -- Electronics at Flipkart, added, "This partnership with Jawa s showcases Flipkart's unique ability to revolutionise how premium products are discovered and purchased online. Our platform brings several key advantages to this collaboration. First, our AI-driven recommendation engine will help match enthusiasts with their ideal Jawa or Yezdi motorcycle based on their preferences and riding style. Second, our seamless interface allows customers to compare models side-by-side, read authentic user reviews, and make informed decisions. Additionally, we're leveraging our extensive logistics network to ensure smooth coordination between online bookings and offline deliveries at Jawa Yezdi dealerships. This collaboration not only expands our premium offerings but also demonstrates how Flipkart's technology and reach can open new avenues for specialized segments like high-end motorcycles." For Jawa Yezdi Motorcycles, this collaboration is strategically positioned to capitalise on Flipkart's growing bike category, aiming to increase visibility especially during major sales events like the Big Billion Day, driving demand, and expanding brand awareness amongst a diverse audience. The combination of Flipkart’s technology and Jawa Yezdi’s premium offerings promises to redefine how customers discover and purchase high-end motorcycles in India, simplifying the overall journey from interest to ownership.
India can buy as much Russian oil as it wants, outside price cap: US NEW DELHI: The United States is happy for India to continue buying as much Russian oil as it wants, including at prices above a G7-imposed price cap mechanism, if it steers clear of Western insurance, finance and maritime services bound by the cap, US Treasury Secretary Janet Yellen said on Friday. The cap would still drive lower while curbing Russia's revenues, Yellen said in an interview with Reuters on the sidelines of a conference on deepening US-Indian economic ties. Russia will not be able to sell as much oil as it does now once the European Union halts imports without resorting to the capped price or significant discounts from current prices, Yellen added. "Russia is going to find it very difficult to continue shipping as much oil as they have done when the EU stops buying Russian oil," Yellen said. "They're going to be heavily in search of buyers. And many buyers are reliant on Western services." India is now Russia's largest oil customer other than China. Final details of the price cap to be imposed by wealthy G7 democracies and Australia are still coming together ahead of a December 5 deadline. The existence of the cap would give India, China and other major buyers of Russian crude leverage to push down the price they pay to Moscow, Yellen said. Russian oil "is going to be selling at bargain prices and we're happy to have India get that bargain or Africa or China. It's fine," Yellen added. Yellen told Reuters that India and private Indian oil companies "can also purchase oil at any price they want as long as they don't use these Western services and they find other services. And either way is fine." The cap is intended to cut Russia's oil revenues while keeping Russian crude on the market by denying insurance, maritime services and finance provided by the Western allies for tanker cargoes priced above a fixed dollar-per barrel cap. A historical Russian Urals crude average of $63-64 a barrel could form an upper limit. The cap is a concept promoted by the United States since the EU first laid out plans in May for an embargo on Russian oil to punish Moscow for its invasion of Ukraine. India wary Yellen's remarks were made after India's foreign minister said last week that his country would continue to buy Russian crude because it benefits India. India's finance and energy ministries were not available for comment on Yellen's remarks, but other officials have said they were wary of the untested price cap mechanism. "I do not think we will follow the price cap mechanism, and we have communicated that to the countries. We believe most countries are comfortable with it and it is in no one's case that Russian oil should go offline," one Indian government official told Reuters, speaking on condition of anonymity. The official added that stable supplies and prices are most important. Rosneft, Russia's largest oil exporter, is expanding its tanker charter business to avoid its
on condition of anonymity. The official added that stable supplies and prices are most important. Rosneft, Russia's largest oil exporter, is expanding its tanker charter business to avoid its buyers having to find tankers, insurance or other services as the price cap. Yellen said that even with Russian tankers, Chinese tankers and a "shadow" fleet of older, decommissioned tankers and re-flagged vessels, "I just think they will find it very difficult to sell all the oil that they have been selling without a reasonable price."
How could Red Sea attacks affect oil and gas shipping? QatarEnergy, the world's second-largest exporter of liquefied natural gas, has stopped sending tankers via the , joining several other companies currently avoiding the world's main East-West trade route. Yemen's Iran-backed Houthi group has since November been attacking vessels in the Red Sea, part of a route that accounts for about 12% of the world's shipping traffic, in what they say is an effort to support Palestinians in the war with Israel. The attacks have raised the spectre of another bout of disruption to international commerce following the upheaval of the COVID-19 pandemic, and prompted U.S.-led air strikes on Yemen. WHAT ARE THE LATEST DEVELOPMENTS? At least four tankers used to carry Qatari LNG were held up over the weekend after U.S. and British forces responded by carrying out dozens of air and sea strikes on Houthi targets in Yemen. "It is a pause to get security advice, if passing (through the) Red Sea remains unsafe we will go via the Cape," a senior source with direct knowledge of the matter told on Monday. "It is not a halt of production." In the oil market, at least six more oil tankers have either diverted their course away from, or paused before entering the southern Red Sea since the weekend, ship tracking data from LSEG and Kpler show. IS THE FOR THE LNG MARKET? The attacks have made reaching the Suez Canal more perilous. About 12% of world shipping traffic transits the canal and 4%-8% of global LNG cargoes passed through it in 2023. As much as 8.2 million barrels per day (bpd) of crude oil and oil products traversed the Red Sea in the January-November period of 2023, according to analytics firm Vortexa. Around 16.2 million metric tons (MMt), or 51% of LNG trade, flowed from the Atlantic Basin east through the Suez Canal last year, while 15.7 MMt went through the canal from the Pacific Basin west, according to S&P Global Commodity Insights. WHO ARE THE MAIN SHIPPERS THROUGH THE ROUTE? The Suez Canal is one of the most important arteries of the global oil trade. Qatar, the United States and Russia are the most active shippers of LNG via Suez. Qatar tops active shippers of cargoes heading from the East to Europe but nonetheless provides only around 5% of net EU and UK imports. "In reality, Qatar is the only exporter in an east-to-west direction via the Suez Canal," said Robert Songer, LNG analyst at date intelligence firm ICIS. An alternative route to Europe through the Cape of Good Hope could add around nine days to the 18-day voyage from Qatar to Northwest Europe, said ICIS LNG analyst Alex Froley. For LNG to Asia, Qatar comes on top followed by the United States which has been using the Suez Canal recently as an alternative to the Panama Canal. ARE PRICES IMPACTED? Asia spot LNG prices fell to a seven-month low of USD 10.10 per million British thermal units (mmBtu) on Friday, supported by healthy storage levels in Europe and northeast Asia. High inventories in Europe
LNG prices fell to a seven-month low of USD 10.10 per million British thermal units (mmBtu) on Friday, supported by healthy storage levels in Europe and northeast Asia. High inventories in Europe and North Asia are capping demand and expected to curb spot price growth in H1-2024. Oil prices rallied 2% last week, with both benchmarks notching intraday 2024 highs, including Brent eclipsing USD 80 a barrel, but prices eased on Monday as the conflict's limited impact on crude output prompted profit-taking. "The realisation that oil supply has not been adversely impacted is leading last week's bulls to take profit," Tamas Varga of oil broker PVM told Reuters. There have been no oil supply losses so far, but the shipping disruption is indirectly tightening the market by keeping 35 million barrels at sea owing to the longer journeys shippers have to take to avoid the Red Sea, Citi analysts wrote. Insurance war risk premiums have gone up from USD 2,000 to USD 10,000 as a result of the disruption, and before the strikes by U.S. and Britain late last week, had jumped further to USD 30,000, a shipping source who declined to be named told Reuters. HOW DO MARKET PLAYERS SEE THE RISK? Crude and oil products market players said the extent of the impact will be determined by the duration of shipping disruptions as a result of the Houthi attacks. It is unlikely that much will change unless situation goes on for longer than a couple of weeks, an analyst at a trading house said. The delays are most likely to impact medium sour crudes from Middle East producers, which could be substituted with grades of similar quality from Brazil, Guyana and Norway, a crude trader told Reuters. LNG market players believe LNG trade is likely to be largely unaffected and any disruption would not have a massive impact on global supply. The majority believe that U.S. shipments, if they head to China/Asia, could only see short-term delay if cargoes reroute. "The physical risks to Suez LNG transit are more weighted towards keeping Atlantic supply pointed at Europe than stopping Qatari supply from reaching Europe," said Jake Horslen, senior LNG analyst at Energy Aspects. The chairman of the Japan Gas Association (JGA), Takahiro Honjo, told a news conference that while there are risks, "I don't think a supply crunch will suddenly occur anytime soon".
India wary of Russia oil cap as US official arrives to push plan will seek broader consensus before it supports US-led efforts to cap the price of Russian oil, which American officials are expected to push for this week when they travel to Mumbai and New Delhi. The South Asian nation, which has emerged as one of the biggest buyers of Russian oil since the invasion of , is hesitant to join the plan unless a consensus is reached with all buyers, according to people familiar with the matter, asking not to be identified because the deliberations aren’t public. That message will likely be conveyed to US Deputy Secretary and his team at meetings with Indian government officials and company executives from Wednesday to Friday. His boss, Janet Yellen, and the department have led efforts to get allies on board the price cap idea, which they anticipate will starve of revenues that fund its invasion of Ukraine without taking oil off the market and triggering a price spike. The effectiveness of an the oil-price cap could hinge on commitments from key customers such as China and India, which have boosted oil purchases from Russia after most buyers shunned its barrels following the invasion of Ukraine. Indian policymakers fear that committing to the price cap will disrupt its access to discounted Russian crude, the people said. The world’s third-largest buyer, which imports 85% of its oil needs, has relied on cheaper Russian supplies to provide relief from inflation near 7% and a record trade deficit. is also expected to ask India to strengthen its monitoring of where products made from Russian crude are sold, said one of the people. The request comes after Treasury officials flagged that a shipment of a material used to make plastic produced at an Indian refinery from Russian oil had made its way to New York. The US in March banned the import of Russian crude and refined petroleum products. Treasury spokesman Michael said Adeyemo is in India to discuss “a number of issues,” including energy security. “All tools that will be discussed — including a price cap on Russian oil, clean energy technology, climate finance — are intended to lower the price of energy in India, the United States and globally,” he said in an email. Kikukawa didn’t comment on how Indian officials view the price cap. An Indian finance ministry spokesperson didn’t respond to calls seeking comments. The has approved a ban on imports of seaborne Russian oil at the end of the year, and along with the UK, prohibit its companies from financing or insuring such shipments. US officials fear those bans will shut in substantial portions of Russia’s production and cause prices globally to spike to around $140 a barrel. Brent oil, the global benchmark, settled Tuesday above $100 a barrel for the first time since the beginning of August, although it has come off a recent peak near $140 in March.
Union Budget 2022: The challenges and the team behind it Finance minister ’s budget for FY23 that will be presented on February 1 will be watched keenly for measures for firing up the pandemic-hit economy. ET takes a look at the team that is drafting the budget that needs to enable high growth while keeping the fiscal deficit in check and inflation contained. A 1987 batch IAS officer from the Tamil Nadu cadre, T V Somanathan served as a joint secretary in the Prime Minister’s Office in 2015 after a stint at the World Bank. Somanathan, as the finance secretary, has a tightrope walk ahead of providing funds for growth while keeping an eye on the fiscal goals. The third wave of the pandemic has adversely impacted the economic recovery. The upcoming budget will have to address the key challenge of lifting growth, consumption and investments. Somanathan has been pushing ministries and departments to spend their capital expenditure budget and is expected to continue with this thrust in F23 as well. A granular review of schemes of various departments and ministries is likely to show up in the form of better focused and lesser central schemes. , a 1987 Karnataka cadre IAS officer, was appointed economic affairs secretary in April last year when the country was hit hard by the second wave of the Covid 19 pandemic. Seth, who had handled the budget and resources and the commercial taxes department in Karnataka, has a tough task cut out for him as the third wave has dented the nascent recovery. He will also be watched for measures undertaken to revive growth without losing sight of the fiscal consolidation roadmap. Panda, a 1987 batch IAS officer has been instrumental in laying the foundation for next-generation reforms in public sector financial institutions. Public sector banks have finally turned around and the upcoming budget is expected to provide further impetus. He was instrumental in setting up of the bad bank and the development finance institution. With Jandhan 3.0 in the works, the upcoming budget will be keenly watched out for building on these measures. , a 1988 batch Haryana cadre IAS officer, served in the Prime Minister’s Office before he joined the finance ministry as secretary economic affairs. Bajaj, who joined the ministry during the first wave of the pandemic when the country was under a partial lockdown, was one of key officials who steered the Atmanirbhar Bharat relief packages. He was later shifted to the Revenue department and was entrusted with the task of setting realistic tax targets, which the government was missing year after year, upsetting its fiscal maths. With his mantra of “understate and overachieve”, this year the department is set to exceed tax collections. His department has sent out a strong message to foreign investors by withdrawing the retrospective tax amendment, paving the way for settlement of the tax disputes arising out of the controversial measures. This year the budget is expected to build upon measures to
by withdrawing the retrospective tax amendment, paving the way for settlement of the tax disputes arising out of the controversial measures. This year the budget is expected to build upon measures to ease compliances and offer some relief to the pandemic hit businesses and taxpayers. A 1987 Odisha cadre IAS officer, Pandey, has delivered on the privatisation of Air India. With 17 more strategic sales lined up and asset monetization pipeline ready, he has an action packed year ahead. The mega listing of Life Insurance Corporation is being eagerly awaited not just by the government to meet its large spending requirements, but also the markets. Also Read:
In EU car data tussle, insurers and others brace for delays, disappointment A broad coalition of insurers, leasing companies, car repair shops and others are calling on the European Commission to propose rules for fair access to valuable vehicle data soon, fearing further delays could see the initiative shelved after European Parliament elections in 2024. Companies in Europe and beyond are vying for control of the crown jewels of the era, namely car manufacturers' data covering everything from driving habits, to fuel consumption and tyre wear which can be used to target cash-generating services. Although the EU is currently haggling over the Data Act, a draft law governing the use of consumer and corporate data, insurers and others are pushing for auto sector-specific regulation. A proposal is expected soon after the European Commission launched a consultation last year. Tim Albertsen, chief executive of leasing company ALD, which relies on vehicle data for a wide range of services, said if sector-specific legislation was tabled now, it could be passed before the 2024 election. After that there is the risk that a new commission, likely with new priorities, would put it on the backburner, potentially delaying the matter for years. "What we understand is that in the proposal that is supposed to be tabled, there will be no sector-specific legislation, which we believe is a major problem," said Albertsen, who earlier this month appealed directly to EU antitrust chief Margrethe Vestager to support in-vehicle data regulation. Ten industry groups also wrote to European Commission President Ursula von der Leyen in January urging an end to "repeated delays". The Commission is currently working on an impact assessment for its proposal, a spokesperson said. "At this stage we cannot prejudge the content of the final impact assessment, and consequent timeline," they added. A spokesperson for the European Automobile Manufacturers Association ( ) said the Data Act would guarantee fair access to car data, so "additional legislation on access to in-vehicle data is unlikely to achieve more". ACCESS TO DATA Once Societe Generale unit ALD completes its purchase of Dutch rival LeasePlan, it will have a fleet of 3.3 million vehicles. The company's car-sharing platform currently collects data via wireless devices to run diagnostics, read odometers, check fuel gauges and switch cars between users. The leasing company also operates a "pay-how-you-drive" insurance product that rewards good driver behaviour, as does rival Arval, a unit of BNP Paribas. "We just want the data to be made available in an economically viable way," said Arval deputy CEO Bart Beckers, adding that companies like his are happy to pay carmakers for it. French technology company Munic is another that fits wireless devices to fleet vehicles to collect data. "If there's no more access to data," said CEO Aaron Solomon, "we'll have to find a different business". But a spokesman for said the carmaker has
wireless devices to fleet vehicles to collect data. "If there's no more access to data," said CEO Aaron Solomon, "we'll have to find a different business". But a spokesman for said the carmaker has had a system in place since 2018 allowing customers to share data with any third party. "Unfortunately, many players who are arguing publicly that they need access to in-vehicle data never tried to use the system," he said. Meanwhile, automakers such as world No. 3 Stellantis have their own big data plans. It expects to generate 20 billion euros ($21.4 billion) annually by 2030 from software products and subscription services. Leaving data in the hands of the big vehicle manufacturers "does not enhance any competition", said Christoph Lauterwasser, managing director of the Allianz Center for Technology, a research institute owned by Allianz. Executive Vice President Lorraine Frega said a wide variety of startups have sprung up to offer services using car data, but those small companies cannot raise capital until there is clarity from the European Commission. "We are very concerned," Frega said. "Just delaying in itself is really harmful to the overall economy as well." Also Read:
US hopes India will take advantage of Russian oil price cap New Delhi: India stands to gain from a price cap on Russian oil and the United States hopes that it will take advantage of it, U.S. Treasury Secretary said ahead of a visit to India this week, media reported on Tuesday. The United States and its allies in the rich nations aim to prevent Russia from profiting from oil after its invasion of Ukraine on Feb. 24, while ensuring that most of its oil continues to flow to global markets. The G7 nations plan to cap prices of sea-borne oil shipments from Dec. 5, with a second cap on oil products from Feb. 5. India, the world's third biggest and a traditional ally of Russia, has not explicitly condemned what Russia calls its "special military operation" in Ukraine. India imports 85% of its crude needs and has emerged as Russia's second-largest oil customer after China, taking advantage of discounted Russian oil shunned by some Western buyers. "If they want to use Western financial services like insurance, the price cap would apply to their purchases," Yellen was quoted as saying in a report published by the Moneycontrol news outlet, citing the Press Trust of India (PTI). "But even if they use other financial services, we believe the price cap will give them leverage to negotiate good discounts from world markets. We would hope to see India benefiting from this programme." Yellen will travel to India on Friday to participate in a meeting of the U.S.-India Economic and Financial Partnership. She is due to hold talks with Minister Nirmala Sitharaman on India's assumption of the G20 presidency, the U.S. Treasury said. She will then travel to the Indonesian island of Bali on Saturday for a joint meeting of G20 finance and health ministers before joining President Joe Biden at a G20 summit there on November 15 and 16. Also Read:
Tesla cuts delivery waiting time for all model 3, model Y cars has cut the delivery waiting time for all to a minimum of one week, it said on its website on Tuesday. The U.S. automaker added to its inventory in Shanghai at its fastest pace ever in October, data from (CMBI) showed, at a time when automakers and investors are bracing for a downturn in the world's largest car market. Tesla had cut prices for its Model 3 and Model Y cars in China last month to boost sales. Last week, the company offered an additional rebate for buyers who take delivery this month and buy insurance from one of . Also Read:
Automakers' contract negotiations will decide potential EV future for idled Illinois plant A shuttered Illinois Jeep assembly plant will be at the center of a power struggle between the United Auto Workers union and Detroit's automakers as the manufacturers double down on cutting costs to fund an accelerated transition to electric vehicles. When the factory in the northern Illinois town of was idled in February, it left union members in shock as they had not expected the shutdown until June. "They wanted to reduce us even more which seemed like an impossible feat," , the local union president in Belvidere, said of the decision following a prior elimination of two work shifts at the factory. "We were seeing the writing's on the wall." The threat of more plant closures is just one item on a contentious agenda as negotiators for Detroit's automakers and the formally start negotiations in mid-July to replace an expiring four-year contract. Legacy automakers face billions of dollars in losses on EVs over the next several years, analysts said, as they replace high-volume combustion vehicles with low-volume EVs powered by expensive batteries. General Motors, Ford and Stellantis executives have said they must reduce labor costs as they overhaul U.S. factories to build EVs to match Tesla and other non-union manufacturers. UAW President has countered there should be no jobs lost because of the shift to EVs. Fain and UAW leaders have used social media and visits to Washington to turn the spotlight on the Detroit automakers' robust profits and hefty pay packages for executives, rather than the cost of the shift to EVs. Fain has called for substantial pay hikes for workers, and for restoring cost-of-living adjustments and ending lower wages for new workers. His agenda and the combative rhetoric of his campaign to build support have many industry executives and analysts factoring in a strike once contracts expire in September. The real question is how long will UAW workers stay off the job, said Mark Wakefield, co-head of AlixPartners' automotive practice. "I am very concerned about it," Wakefield said last week. "It doesn't look good at the moment. It's very difficult to forecast. Is it a week or two, or three or four months." GM CEO and Ford CEO Jim Farley have sought to defuse tension with the union. Both have signed off on multibillion-dollar investments in U.S. factories where UAW members build combustion vehicles, and both have said they want to bring workers along as they shift toward EVs. "It's important that we actually get to the table and we start to problem solve," Barra told CNBC in a recent interview. In an opinion piece published in the Detroit Free Press last week, Farley said the automaker's management and union workers "share common goals - reaching a new deal that allows us to stay ahead of the changing industry landscape, protecting good-paying jobs in the U.S. and continuing to offer innovative and affordable products to our customers."
a new deal that allows us to stay ahead of the changing industry landscape, protecting good-paying jobs in the U.S. and continuing to offer innovative and affordable products to our customers." Stellantis CEO Carlos Tavares has warned that more factories could be forced to close as more costly EVs take sales from combustion models. He has so far stuck to his decision to put the Belvidere plant on track for closure in the face of UAW criticism. In April, Stellantis offered voluntary exit packages to 33,500 U.S. employees in an effort to streamline its restructuring plan toward EVs. Around 1,680 union workers company-wide agreed to take the buyout, according to a union representative. A spokesperson for Stellantis declined to comment on the number of employees who have accepted buyouts and said the process is still ongoing. Meanwhile, several hundred of the Belvidere plant's roughly 1,300 laid-off UAW workers are in limbo, either waiting to be transferred or hoping state officials can sway the automaker with generous tax incentives to keep jobs local. , 52, who has worked for Stellantis since 2006, said he is concerned that if he is offered a transfer and turns it down, he will lose his health insurance that his disabled wife relies on to supplement costs for hospital visits and prescription medication. Auston Gore, a 32-year-old assembly operator, left his family behind after struggling to find another job that would pay his current rate of USD 31.77 an hour. He opted for a voluntary transfer to a Stellantis plant in Toledo, Ohio. "The situation I was put in, I felt like my arm was being twisted by the company," he said. Politics could play a role in deciding the Belvidere plant's future, and the broader restructuring of the U.S. auto industry. During a speech in Chicago last week, President Joe Biden outlined his plan to invest USD 2 billion from last year's Inflation Reduction Act to accelerate domestic manufacturing of EVs and resuscitate plants that are struggling. Illinois Governor J.B. Pritzker has also stepped up efforts to salvage the 58-year-old Belvidere plant that once employed 4,500 union workers. A spokesperson for Stellantis said the state recently purchased 170 acres of land next to the idled plant in Belvidere. The governor has not confirmed the land purchase or whether it is related to tax credits to sway the company to bring in a new product, or repurpose the facility for EVs. UAW Regional Director Brandon Campbell said the incentive package that Illinois is offering Stellantis is comparable to deals offered in Michigan and Indiana. "There's a lot of hope and a lot of incentives from the state level."
Britain should strictly regulate "fire risk" e-scooters, insurers say LONDON - Britain should place stringent regulations on electric scooters if their legal use is widened beyond current government trials, given the number of injuries from illegal vehicles and fire risks from their batteries, insurers said on Thursday. Trials of shared rental e-scooters are taking place in 31 regions of England this year, according to the UK government. But privately owned e-scooters are already a familiar sight on city streets, even though their use is illegal outside private land with the landowner's permission. There were 882 accidents involving e-scooters in the year ending June 2021, resulting in 931 casualties, of which 732 were e-scooter users, according to government figures. "Illegal use of e-scooters currently presents a significant risk to riders, pedestrians, and other road users," said Chris Jones, the Underwriting Association's director of legal and market services. "It is essential that an appropriate and effective regulatory system is introduced at the earliest opportunity." Four insurance trade bodies called in a letter to transport minister Grant Shapps for clear standards on e-scooter construction and safety equipment, including on batteries, charging, brakes and lighting, and on whether protective equipment is required. The e-scooters' lithium batteries posed a fire risk and their transportation and storage should also be regulated, the trade bodies said. The government should also look at how e-scooters are parked, to make sure they do not become a safety hazard, they added.
ICICI Lombard offers motor cover linked to driving Mumbai: has launched a cover where the premium will depend on the quantity and quality of driving. The company has also introduced a motor floater cover that provides the advantage of adding all vehicles owned by the proposer in one policy. The Motor Floater offer for its customers is in line with the recent announcement by regulator . It will enable those individuals owning multiple vehicles to ensure their vehicles, including cars and two-wheelers, are under one policy with a single renewal date and a comprehensive cover. The pay-as-you-use and pay-how-you-use plans use telematics to analyse the extent and manner in which the insured uses the vehicle. The company would allow customers to choose from different ‘kilometre plans’ depending on usage. The customer will pay only to the extent they use the vehicle. Under the pay-how-you-use plan, the premium would change according to the insured’s driving behaviour, with cautious driving incurring a lower premium. According to ICICI Lombard executive director Sanjeev Mantri, the policies will go a long way in ensuring additional transparency and convenience for the end customer as these add-ons would precisely give them an idea of the coverage and incentivise both good driving and distance run with lower premiums.
Car dealerships in North America revert to pens and paper after cyberattacks on software provider in North America are still wrestling with major disruptions that started last week with on a company whose software is used widely in the auto retail sales sector. , a company that provides software for thousands of auto dealers in the U.S. and Canada, was hit by back-to-back cyberattacks Wednesday. That led to an outage that has continued to impact operations. For prospective car buyers, that's meant delays at dealerships or vehicle orders written up by hand. There's no immediate end in sight, but says it expects the restoration process to take "several days" to complete. On Monday, Group 1 , a USD 4 billion automotive retailer, said it is using "alternative processes" to sell cars to its customers. Lithia Motors and AutoNation, two other dealership chains, also disclosed that they implemented workarounds to keep their operations going. Here is what you need to know. What is CDK Global? CDK Global is a major player in the auto sales industry. The company, based just outside of Chicago in Hoffman Estates, Illinois, provides software technology to dealers that helps with day-to-day operations - like facilitating vehicle sales, financing, insurance and repairs. CDK serves more than 15,000 retail locations across North America, according to the company. What happened last week? CDK experienced back-to-back cyberattacks on Wednesday. The company shut down all of its systems after the first attack out of an abundance of caution, according to spokesperson Lisa Finney, and then shut down most systems again following the second. "We have begun the restoration process," Finney said in an update over the weekend - noting that the company had launched an investigation into the "cyber incident" with third-party experts and notified law enforcement. "Based on the information we have at this time, we anticipate that the process will take several days to complete, and in the interim we are continuing to actively engage with our customers and provide them with alternate ways to conduct business," she added. In messages to its customers, the company has also warned of "bad actors" posing as members or affiliates of CDK to try to obtain system access by contacting customers. It urged them to be cautious of any attempted phishing. The incident bore all the hallmarks of a ransomware attack, in which targets are asked to pay a ransom to access encrypted files. But CDK declined to comment directly - neither confirming or denying if it had received a ransom demand. "When you see an attack of this kind, it almost always ends up being a ransomware attack," Cliff Steinhauer, director of information security and engagement at the National Cybersecurity Alliance. "We see it time and time again unfortunately, (particularly in) the last couple of years. No industry and no organization or software company is immune." Are impacted dealerships still selling cars? Several major auto
time again unfortunately, (particularly in) the last couple of years. No industry and no organization or software company is immune." Are impacted dealerships still selling cars? Several major auto companies - including Stellantis, Ford and BMW - confirmed to The Associated Press last week that the CDK outage had impacted some of their dealers, but that sales operations continue. In light of the ongoing situation, a spokesperson for Stellantis said Friday that many dealerships had switched to manual processes to serve customers. That includes writing up orders by hand. A Ford spokesperson added that the outage may cause "some delays and inconveniences at some dealers and for some customers." However, many Ford and Lincoln customers are still getting sales and service support through alternative routes being used at dealerships. "The people who've been around longer - you know, guys who have maybe a little salt in their hair like me - we remember how to do it before the computers," said John Crane of Hawk Auto Group, a Westmont, Illinois-based dealership operator that uses CDK. "It's just a few more steps and a little bit more time." Although impacted Hawk Auto dealerships are still able to serve customers by "going back to the basics," Crane added that those working in administration are still "pulling out our hair." He notes that there are now stacks of paper awaiting processing - in place of orders that went through automatically on a computer overnight. Group 1 Automotive Inc. said Monday that the incident has disrupted its business applications and processes in its U.S. operations that rely on CDK's dealers' systems. The company said that it took measures to protect and isolate its systems from CDK's platform. In regulatory filings, Lithia Motors and AutoNation disclosed that last week's incident at CDK had disrupted their operations as well. Lithia said it activated cyber incident response procedures, which included "severing business service connections between the company's systems and CDK's." AutoNation said it also took steps to protect its systems and data, adding that all of its locations remain open "albeit with lower productivity," as many are served manually or through alternative processes. With many details of the cyberattacks still unclear, customer privacy is also at top of mind - especially with little known about what information may have been compromised this week. If you've bought a car from a dealership that's used CDK software, cybersecurity security experts stress that it's important to assume your data may have been breached. That could potentially include "pretty sensitive information," Steinhauer noted, like your social security number, employment history, income and current or former addresses. Those impacted should monitor their credit - or even freeze their credit as an added layer of defense - and consider signing up for identify theft monitor insurance. You'll also want to be wary of any phishing attempts. It's
their credit - or even freeze their credit as an added layer of defense - and consider signing up for identify theft monitor insurance. You'll also want to be wary of any phishing attempts. It's best to make sure you have reliable contact information for a company by visiting their official website, for example, as scammers sometimes try to take advantage of news about data breaches to gain your trust through look-alike emails or phone calls. Those are some best practices to keep in mind whether you're a victim of CDK's data breach or not, Steinhauer said. "Unfortunately, in this day and age, our data is a valuable target - and you have to make sure that you're taking steps to protect it," he said.
How software is stifling competition and slowing innovation More than a decade ago, , an internet entrepreneur and venture capitalist, famously declared, “ is eating the world.” The winners, Andreessen wrote in The , would be mainly “entrepreneurial technology companies that are invading and overturning established industry structures.” His essay was a distillation of a long-held article of faith in Silicon Valley. Clearly, some traditional businesses such as advertising and retailing have been upended by software-fueled companies such as , and , the new giants on the corporate landscape. But there is also a very different story, according to , executive director of the Technology & Policy Research Initiative at the University School of Law. In a new book, Bessen challenges what he terms the “disruption myth.” He makes the case that big companies in one industry after another have built complex software systems for managing their sales, marketing, operations and product offerings that are essentially moats against competitors. This mastery of software by major corporations, he argues, helps explain rising economic concentration, increasing inequality and slowing . “This is a broad swath of the economy — way beyond a handful of Big Tech companies in Silicon Valley,” Bessen said. “There is an advantage to software that economists haven’t really reckoned with yet. Software isn’t accelerating creative destruction today. Software is suppressing it.” Bessen brings an unusual perspective to his economic analysis. He is a former software entrepreneur from the personal-computer era who founded an early desktop publishing software company, which he ran for a decade. When he sold his venture to a larger company in 1993, he made millions. It was pocket change by the standards of today’s tech startups, but it meant career freedom for Bessen. Bessen then got in touch with his former roommate at Harvard University, Eric Maskin, who had become an economics professor at their alma mater. Bessen explained that he had ideas about the software industry that might be of interest to economists, Maskin recalled. The two went on to write a research paper on why patents often worked against innovation in software, an industry that prospered when information was shared. The joint study helped start Bessen’s career as an academic. His research has focused mainly on the economics of innovation and the broad impact of technology. The title of his book, “The New Goliaths: How Corporations Use Software to Dominate Industries, Kill Innovation and Undermine Regulation” ( ), suggests a strident critic. But his past research has also come down on the side of technology. In 2015, amid rising concerns that automation was a job killer, Bessen published a paper that examined the impact of computer automation on 317 occupations from 1980 through 2013. His summary conclusion: “Employment grows significantly faster in occupations that use computers more.” Bessen is an entrepreneurial
of computer automation on 317 occupations from 1980 through 2013. His summary conclusion: “Employment grows significantly faster in occupations that use computers more.” Bessen is an entrepreneurial outsider to the field of economics. He has forged an unorthodox career in academia, rising to prominence gradually over the years, one intriguing research project at a time. He has become respected in economic circles without a doctorate. “Jim’s not a professionally trained economist, so he has an original take,” said Maskin, his former college roommate, who won a Nobel Prize in economics in 2007. “That’s played to his advantage and to the profession’s advantage.” Blending data analysis with narrative case studies is the hallmark of Bessen’s research. He is a business historian and a fluid writer. His book contains accounts of the evolving use of software in many industries, including autos, banking, retailing, insurance, garbage hauling, logistics and trucking. Bessen’s observations about increasing market concentration, rising inequality, and slowing innovation and productivity echo those of other researchers. Most of those studies, though, are high-level economic research. His focus is a more detailed look within industries and at individual companies, seeking the underlying technology engine behind the broad economic trends. “He has a new, complementary perspective on what we’re seeing,” said Chiara Criscuolo, an economist at the Organization for Economic Cooperation and Development. “It gives you much more of the mechanism for why we got to where we got.” That mechanism is what Bessen calls “proprietary software.” He defines it broadly as not only code but also the data that companies collect on their customers and operations, the skills of their workers and the organizational changes they have made to exploit the technology. His measure of proprietary software does not include spending on the standard business software from companies such as Oracle, SAP and Salesforce. Instead, it is the investment that companies make in custom software from those suppliers and others, and in their own in-house applications. Some of the software may be freely available open-source code, he notes, but the overall system is closed. Bessen’s analysis is based on government and industry data, supplemented by information on jobs and salary estimates from Lightcast, a labor market research firm, which recently changed its name from Emsi Burning Glass. The total investment in proprietary software grew 74% to $239 billion over the decade that ended in 2019, the most recent government statistics. The big companies use this technology to manage complexity and gain competitive advantage, according to Bessen. The big banks use their software and customer data to customize credit card offerings to individuals in a way that smaller rivals cannot. Walmart and Amazon use their proprietary software to streamline logistics and personalize marketing. Google and Facebook use it to
card offerings to individuals in a way that smaller rivals cannot. Walmart and Amazon use their proprietary software to streamline logistics and personalize marketing. Google and Facebook use it to target ads. Insurers use it to tailor and market health plans to individuals. Pharmacy benefit management companies use it to navigate the complexity of drug reimbursement plans. And the list goes on. Evidence of the proprietary software advantage is abundant and convincing, in Bessen’s view. The software-enabled winners in industries are more productive than their smaller rivals, and they pay more — 17% more on average for the same jobs, Bessen estimates. But their success, he argues, has come at too great a price. Competition has suffered. Since the late 1990s, the chances of unseating a dominant firm — typically, one of the top four by sales in an industry — have declined by half. And technology, he contends, is spreading and being adopted across industries more slowly than in the past, which exacerbates the trends of inequality and market concentration. His policy answer is not to break up dominant companies but to nudge or force them to open up. For example, , under antitrust pressure, unbundled its software from its hardware business in 1969. That move, Bessen writes, led to a flourishing software industry. Today’s proprietary platforms, he asserts, could be opened through access to their software platforms or to customer data they have harvested — a prescription that policymakers in Europe and America are considering. Bessen points to a seemingly unlikely protagonist: Amazon. Opening its computing infrastructure, he said, created the cloud computing industry. “In some ways,” he said, “Amazon is a model of what I’d like to see other firms do,” though with appropriate regulatory oversight. One critique of Bessen’s analysis is that he is observing a wave of technology adoption that still has a long way to run, and that his concerns are overstated. “These superstar firms are very productive,” said Robert Atkinson, president of the Information Technology and Innovation Foundation, a policy research group. “The question is, why aren’t other companies as productive yet?” He added that they were likely to catch up. And seemingly entrenched companies are not immune to truly innovative, technology-powered newcomers: Amazon challenging Walmart in retailing, and Tesla taking on the Detroit automakers, for example. Both are exceptions, but ones that partly support his argument, Bessen insists. Both have become powerhouse corporations, he said, largely because of their prowess in designing and exploiting complex software. “Technology,” Bessen said, “is playing a different role than it has in the past — less to disrupt than entrench.”
Video telematics platform LightMetrics raises USD 8.5 mn in Series A funding , a startup serving fleets globally, has raised USD 8.5 million in a Series A funding round from Sequoia Capital India. Their solution uses edge AI and analyzes video feeds from the camera installed in vehicles to better understand driver behavior, and reduce accidents and improve safety. With this fundraise, LightMetrics will focus on strengthening various teams to set the stage for future growth. This includes engineering, customer success, product, marketing, sales and analytics. The company will continue to invest in cutting-edge , new products and solutions to strengthen their offerings and deliver more value to fleets across their operations. The funds raised will also be used to explore adjacent opportunities like auto insurance. LightMetrics was founded in 2015 by Soumik Ukil, Ravi Shenoy, Mithun Uliyar, Gururaj Putraya, Pushkar Patwardhan and Krishna A.G. The six-member founding team had worked together at Nokia Research on computer vision and ML for cameras. While advancing the tech in consumer photography for smartphones was exciting, they wanted to do something more impactful with their expertise in computer vision and AI. The automotive industry, and commercial fleets in particular presented a huge opportunity. Owning and operating trucks has to be profitable but they grapple with problems like fraudulent lawsuits, increasing accidents, risk of nuclear verdicts, lack of visibility into (increasing) risky driving behavior (speeding, hard braking, drowsiness, distracted driving, etc.), mounting insurance costs, hiring and retaining drivers, rising fuel costs, etc, which significantly impacts their bottom line. “This investment by Sequoia Capital India is a testament to the fact that we are building the preeminent video-based fleet safety platform globally. We will invest deeply in building the most advanced and efficient edge AI, empowering our customer base to deliver this critical technology across the entire fleet ecosystem, and expanding our international footprint.” Soumik Ukil, CEO & Co-founder, LightMetrics The benefits of video telematics enabled by LightMetrics include - With improved safety and reduced risk, fleets have a solid ROI through reduced total cost of ownership. “Video telematics is the fastest growing segment of the telematics industry. Lightmetrics’ ability to deploy advanced computer vision models on the edge, across a range of , enables it to serve all vehicle types in this large market. At Sequoia Capital India, we expect advancements in AI to transform several industries and are excited to partner with Lightmetrics on their quest to improve road safety,” Ashish Agrawal, MD, Sequoia India. LightMetrics has also taken a differentiated go-to-market approach. It does not sell to fleets directly and instead works with telematics service providers and fleet management companies who integrate the solution into their offerings for fleets and
approach. It does not sell to fleets directly and instead works with telematics service providers and fleet management companies who integrate the solution into their offerings for fleets and upsell. This ensures that fleets get a deeply integrated product which has all the insights they need about their business in one place, avoiding fragmentation and providing more value. Partners who work with LightMetrics can either use APIs to build their own UI or use the rebranded portal. LightMetrics is deployed by over 2500 fleets across India, Middle East, US, Canada, Mexico, Brazil, Australia, and South Africa. Fleets using LightMetrics’ powered video telematics have seen risky driving such as speeding and distracted driving drop by up to 80% and 70% respectively in just a few months of onboarding – showing how a combination of in-cab coaching and offline coaching can reduce risk for fleets in a significant manner.
Western sanctions haven't curbed Russian oil profits, but the green energy transition could Western sanctions that put a price cap on Russian oil exports from December 2022 aimed to cause the country significant economic pain after its invasion of Ukraine last year. The idea was to curtail the amount Russia makes from its oil while ensuring it continues to flow into the global market to reduce price pressures on consumers around the world. Back then, were trading around USD 80 (66 pounds) per barrel (bbl, exceeding USD 95bbl (after December 5 2022) for oil and around USD 100d) in September 2023 - the lowest since September 2022, and 0.65 Mbd in August 2023 compared to 11 Mbbbl. This is on the higher end, particularly compared to producers in the Middle East, where costs can even be less than USD 10/bbl for some fields in Saudi Arabia, for example. Of course, the carbon intensity of a country's oil production will also have a significant impact on producers. As the world attempts to transition to lower carbon forms of energy, buyers will want to reduce the carbon footprint of their energy imports. Russia's carbon intensity is double that of Saudi Arabia. While the price cap has done little to erode Russia's power in the global oil markets, it's only a matter of time before its oil sector's legacy problems and high carbon intensity start to squeeze its oil riches. This is likely to have a much more sustained negative impact on Russia's oil wealth.
Indian refiners scout for oil deals ahead of EU ban on Russian crude Indian state refiners plan to lock-in more of their crude supplies in term deals, worried that tighter Western sanctions on , including from the EU, could curb future supplies in already tight markets, sources at state refiners said. , the country's top refiner, and Bharat Petroleum 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. 's dependence on spot purchases allowed Indian refiners to snap up discounted Russian oil shunned by some Western buyers over Moscow's 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 oil, putting them in competition with Asian buyers. To secure supplies, 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. 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 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, vice president at rating agency ,
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 , said: "To diversify and safeguard yourself from potential cuts in future such as diversion of Middle Eastern oil to , signing a contract is the best option as you get preferential pricing and stable supplies."
Saera Electric pact with AMU Leasing for vehicle financing (SEAPL), one of the leading players in the electric vehicle industry, has signed a vehicle financing contract with a (NBFC), . Ltd. Under the agreement, customers planning to buy from SEAPL can avail easy financing options from ALPL. "Our latest collaboration with AMU Leasing has enabled us to take another step towards establishing our goal to accelerate the penetration of clean mobility on Indian roads. ALPL has long established its name in the financial sector with a wide range of financing facilities in several states such as Delhi, Haryana, and Uttar Pradesh," Nitin Kapoor, Managing Director of Saera Electric Auto, said. Saera Electric Auto is a subsidiary of the Satra Group of Companies, which has a diversified business portfolio in domains like automobile spare parts, electric vehicles, and agriculture equipment. The signature brand of SEAPL is Mayuri, popular for e-rickshaws and e-carts. The company is also the of Yogo, the 2W brand. ALPL is a Delhi-based, RBI-licensed, AI- and tech-enabled NBFC incorporated on September 24, 1993. This is the first AI- and technology-driven NBFC led by women that is solely focused on the EV ecosystem. ALPL serves corporations, fleet operators, third-party logistics operators, FMCGs, OEMs, and many more for commercial, transportation, and supply purposes. The company provides loans for electric three- and four-wheelers against asset hypothecation to eligible organizations. "ALPL has been part of the banking, financial services, and insurance (BFSI) industry for the last two decades. Our goal is to align ourselves with India’s emerging initiatives for self-employment and micro entrepreneurship for citizens across Tier 2 and Tier 3 cities. By supporting the alternative, fuel-based transportation sector, we aim to propel revenue generation for self-employed livelihoods and sustain that improvement. We will be able to provide hassle-free financing of electric three-wheelers for SEAPL through its 400+ dealer network spread across the country," said Nehal Gupta, Director of AMU Leasing Private Limited. "Saera has established itself as a leading player in the domain with immense repute and expertise in the manufacturing of clean and green vehicles, and we are optimistic that together we will provide the most efficient financing services while prioritizing customer service and satisfaction across our products. AMU understands the new-age technology of electric vehicles and knows its customers well. AMU stands alongside our customers and extends our support in making an efficient ecosystem where leasing, financing, and purchasing are one seamless process," he added.. Currently, Saera has three state-of-the-art plants. The first one is in Bhiwadi (Rajasthan), which has a production capacity of 24000 units. The second plant is in Bawal (Haryana), with a production capacity of 2 lakh units of and 36,000 units of three-wheelers per year. In Kosi (UP), a third
has a production capacity of 24000 units. The second plant is in Bawal (Haryana), with a production capacity of 2 lakh units of and 36,000 units of three-wheelers per year. In Kosi (UP), a third plant with a capacity of 24000 units per year has also been established. All electric vehicles manufactured by SEAPL are designed and assembled using cutting-edge technology prevalent in the industry. Also Read:
Landmark Cars shares off to slow start, list at 7% discount to IPO price New Delhi: made a tepid debut on the bourses on Friday as the company got listed at Rs 471.30 on BSE, a discount of 7% against its issue price of Rs 506 apiece. The retailer of the premium cars debuted at a discount of 7% at Rs 471 as against the given issue price on the National Stock Exchange (NSE). Ahead of listing, shares of Landmark Cars were exchanging hands at a discount of 15-20 in the grey market against the issue price. The company's Rs 552-crore IPO was sold in the range of Rs 481-506 per share, and received a mild response from investors, garnering over 3 times bids. The quota reserved for qualified institutional buyers (QIBs) was subscribed 8.71 times while those reserved for non-institutional investors (NIIs), employees and retailers were subscribed 1.6 times, 2.93 times and 59%, respectively. Incorporated in 1998, Landmark Cars is a leading premium automotive retail business in India with dealerships for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault. It also caters to the commercial vehicle retail business of . Landmark Cars offers services such as sales of new vehicles, after-sales service and repairs, sales of pre-owned passenger vehicles and facilitation of the sales of third-party finance and insurance products. (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
Indian govt should stick to fiscal deficit target for this year NEW DELHI : India's federal government should stick to the fiscal deficit target laid out for this fiscal year and aggressively focus on privatising state-run companies, the country's top industry body said in a statement on Monday. The should adhere to the fiscal deficit target of 6.4% of (GDP) for the current year and aim to reduce it to 6% of GDP next year, the (CII) said after a pre-budget consultation meeting with Minister Nirmala Sitharaman. The government has started the process of making the federal budget for the fiscal year starting April 1, and will likely present it on Feb. 1, CII said. "There should be aggressive focus on privatization," the industry body said, adding that the budget should also increase capital expenditure to 10 trillion rupees from this year's estimated 7.5 trillion rupees. Indian government has been struggling to privatise state-run firms and had to put on hold some of its earlier plans such as selling one of the flagship oil refiners , for which it failed to attract any suitors. In 2020, Finance Minister Nirmala Sitharaman announced plans to privatise most state-run companies, including banks, miners and insurers. However, besides selling Air India to conglomerate , India has not been able to privatise any major firms. Also Read:
Red Sea crisis pressures China's exporters as shipping delays, costs mount For Chinese businessman Han Changming, disruptions to are threatening the survival of his trading company in the eastern province of Fujian. Han, who exports Chinese-made cars to Africa and imports off-road vehicles from Europe, told Reuters the cost of shipping a container to Europe had surged to roughly USD 7,000 from USD 3,000 in December, when Yemen's Iran-aligned Houthi movement escalated attacks on shipping. "The disruptions have wiped out our already thin profits," said Han, adding that higher shipping-insurance premiums are also taking a toll on Fuzhou Han Changming International Trade Co Ltd, the company he founded in 2016. The rupture of one of the world's busiest shipping routes has exposed the vulnerability of China's export-reliant economy to supply snarls and external demand shocks. In a speech at the in Davos on Tuesday, Premier Li Qiang emphasised the need to keep global supply chains "stable and smooth", without referring specifically to the . Some companies, such as U.S.-based BDI Furniture, have said they are relying more on factories in places such as Turkey and Vietnam to mitigate the impact of the disruptions, adding to recent moves by Western countries to reduce dependence on China amid geopolitical tensions. At stake for China now is the danger that other firms will follow suit and reassess their de-risking strategy, opting potentially to shift production closer to home, an approach known as "near-shoring". "If it's permanent, and it could be permanent, then the whole mechanism will be readjusted," said Marco Castelli, founder of IC Trade, which exports Chinese-made mechanical components to Europe. "Some (companies) may also consider moving more production to India, which is one week closer to Europe. Companies need to reevaluate everything." Further Red Sea disruptions would pile pressure on a struggling Chinese economy already contending with a property crisis, weak consumer demand, a shrinking population and sluggish global growth. With Europe and Africa trade accounting for 40% of Han's overall business, he said he had been pleading with suppliers and customers to shoulder some of the additional costs to keep his company afloat. Shipping times for some orders were delayed by up to several weeks, he said. Compounding the pain for some firms, the disruptions come as many are navigating a logistics challenge ahead of Lunar New Year in February, when some 300 million migrant workers go on leave and almost all factories in China shut, creating a scramble in the preceding weeks to get goods shipped. Mike Sagan, the Shenzhen-based vice president for supply chains and operations at KidKraft, a maker of outdoor play equipment and wooden toys, said many European customers are slamming on the brakes, saying: "Don't ship anything, hold it". "A lot of suppliers, they're screaming about money today," said Sagan, whose company supplies retailers including
customers are slamming on the brakes, saying: "Don't ship anything, hold it". "A lot of suppliers, they're screaming about money today," said Sagan, whose company supplies retailers including Walmart and Target. A worry for larger manufacturers, he said, is the snowball effect on smaller suppliers with tight margins, as they would be among the last to receive payments but are critical to the . Rerouting vessels from the Red Sea - the shortest route from Asia to Europe via the Suez Canal - around the Cape of Good Hope can add two weeks to shipping schedules, reducing global container capacity and cleaving supply chains as it takes longer for vessels to return to ports to reload. That probably means delays for goods scheduled to arrive on Western shelves in April or May. Some logistics companies are already reporting a container shortage at Ningbo-Zhoushan port in China, one of the world's busiest by cargo tonnage, according to BMI, an industry research firm. The Suez Canal is a primary route for China's westward shipments of goods, including around 60% of its exports to Europe, according to the Middle East Institute, a Washington-based think tank. 'HUGE' IMPACT Yang Bingben, whose company makes industrial-use valves in eastern China's manufacturing hub of Wenzhou, said a client in Shanghai this week slashed an order for 75 valves - intended for assembly into large machinery for shipment overseas - to 15 amid soaring freight costs. "The impact is huge," said Yang, adding that he had prepared raw materials that could not be returned because they had been processed. "It's like I received an order that makes me lose money." Yang is now rethinking his staffing needs for this year, saying he can't guarantee salaries as his workers are paid based on the amount of work they do. "If I don't have enough work to give them, I'm afraid they won't be able to make a living." In southern China, Wei Qiongfang, a freight forwarder based in Guangzhou, said some suppliers were delaying shipments of lower-value goods, pressuring manufacturers' stockpiles. As once-predictable trade conditions become increasingly uncertain, the impact is especially acute for companies that rely on just-in-time deliveries or that need to change their stock regularly. Another issue, said Castelli, is that factories do not get paid until goods arrive at their destination. "So if their payment is delayed, they can't pay their suppliers, they can't pay their workers," he said. "China is so successful in the global market because they work with tiny margins: when you have volume, the money rolls in; when the money stops coming, you have a big problem." In the Pearl River Delta city of Dongguan, Gerhard Flatz, managing director of premium sportswear manufacturer KTC, is concerned that some companies grappling with shrinking margins will go under. "So, they are struggling, and now there is another logistics crisis. You know, at some point many will have to shut down," said Flatz.
Can’t afford another lockdown, say Bengaluru transporters BENGALURU: Transport operators, including cab and autorickshaw drivers, are worried that weekend and night curfew will further reduce their earnings. Cash-strapped government transit agencies like BMTC, KSRTC and Namma Metro are also keeping their fingers crossed in the wake of soaring Covid-19 cases. “We are facing a severe financial crisis but the government has imposed curfew at night and on weekends, which will further affect the transport and tourism sectors. For the past two years, the transport segment has completely collapsed due to Covid and work-from-home arrangement,” said , president, Karnataka State Travel Operators Association. Holla said they are struggling to pay vehicle and business loans, GST, Motor Vehicle (MV) tax and insurance. “We want the government to check Covid without impacting daily business activities.” Tanveer Pasha, president of Ola Uber Drivers and Owners Association, said: “The state government is playing with the lives of people. We have just started recovering from the losses of previous lockdowns but it is again in a hurry to impose another one. Most drivers are getting business only during weekends.” He said most foreign cities have focused on awareness and enforcement of mask rule instead of a complete lockdown. “The government should allow establishments to open 24x7 to reduce crowds in shops and on roads. Most cab drivers are in a state of panic as they cannot afford another lockdown,” he said. , chairman (school transport wing, south zone), Bus and Car Operators’ Confederation of India, said: “Many school transport operators paid pending MV tax and insurance premium after some schools reopened two-three months ago. But now all schools have been closed and parents are refusing to pay transport fees. There is no MV tax exemption. Many transporters may have to leave business if the government continues to impose restrictions.” , general secretary, , said: “The government has not provided ration kits or sanitisers to auto drivers. Only a few drivers received the compensation announced during first and second waves. Already, a few people are on the streets due to the Covid scare, so business has reduced. The curfew will further affect the earnings of drivers. How will they pay EMIs?” Also Read:
Digit Insurance launches comprehensive EV Shield add-on cover New Delhi: A specific add-on cover has been launched by to meet the rising demand and the unique insurance needs of electric vehicles (EVs). In 2023 EV sales were at 15.29 lakh. India's EV market is pegged to become a USD 266 billion market with projected annual sales of 1 crore EVs by 2030. The add-on cover will come with three optional additional coverage to protect against any loss or damage to the electrical panel for vehicle charging point, vehicle charger including charging cable, and also offer roadside assistance services specific to EVs, the company said in a media release. The add-on will cover damages to battery or electric motor due to accident or external means, and also pay for any expenses incurred for repair or replacement of the battery due to water ingression and short circuit. The add-on will be offered under the of a vehicle and will provide all relevant vehicle coverages similar to any Internal Combustion Engine (ICE) vehicle, the company added. , Head – Motor Product, Digit General Insurance, said, “Our new EV-specific add-on coverage is designed to meet the evolving changes and needs of EV vehicle owners. The severity of damage among EVs can be higher and the repairs for the same can be costly due to expensive components and need for specialised automotive technicians. The specialised add-ons along with additional coverages will provide EV owners the much-needed protection and address the nuanced issues of electric vehicles.” The add-on will be offered to EVs as well as hybrid vehicles (electric and petrol/diesel). In case of claim, the policyholder simply needs to notify the insurer within three days. The entire claims process will be 100% digital and the insured would not need to submit any physical documents, the release added.

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