Heavy commercial vehicle sales veer off the growth track

Source: LiveMint.com, Dec 05, 2018

The anaemic growth seen in passenger vehicle sales over the last couple of months is now spreading to commercial vehicles (CVs).

The sharp decline in medium and heavy commercial vehicle (M&HCV) sales in November was most glaring compared to other auto segments. Ashok Leyland Ltd’s volumes fell by 18% year-on-year, while those of Tata Motors Ltd contracted 24% year-on-year. Combined with sales of Eicher Motors Ltd, and Mahindra and Mahindra Ltd, M&HCV sales fell 14.6%. The sudden drop is after a strong double-digit growth until October.

According to Bharat Gianani, analyst at Sharekhan Ltd, “M&HCV sales dropped due to the liquidity crunch and impact of higher axle load norms, which led to capacity increase in the system.” This led to volatility in freight rates, at a time when fuel prices were spiralling. To add to this, interest rates were on the rise; and the non-banking financial companies’ crisis curtailed lending to the sector. Read the rest of this entry »

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It’s a negative festive surprise for automakers in India

Source: LiveMint.com, Nov 28, 2018

A festive season that lacked sparkle for domestic automobile sales has raised alarm bells among investors. During the 42-day festive period, registrations of vehicles in the domestic market—an indicator of retail sales and consumer sentiment—was down by as much as 11% year-on-year, according to data from analytics firm Crisil Ltd. Passenger vehicles displayed the sharpest decline of 14% in registrations. What’s worrisome is that it is normally a peak period for new vehicle registrations in the country. Worse, the decline comes on the heels of sales contraction in the three months of July, August and September. Read the rest of this entry »

Govt does a U-turn, proposes hybrid car subsidy in India

Source: LiveMint.com, Nov 27, 2018

New Delhi: The department of heavy industries has asked the expenditure finance committee (EFC) for a subsidy of ₹13 crore to promote hybrid cars, indicating a shift from the government’s earlier refusal to offer subsidies on such vehicles. In a meeting with the committee on 23 August for the second phase of the Faster Adoption and Manufacturing of Electric and Hybrid vehicles (FAME) scheme, the department sought incentives for potential buyers of 10,000 hybrid cars fitted with lithium-ion batteries of 0.5-2 kilowatt hour (kWh).

The minutes of the meeting have been reviewed by Mint. Read the rest of this entry »

Auto component production likely to rise 12-14% in FY19, says study

Source: Business Standard, Nov 20, 2018

Bhubaneswar: Auto component production in 2018-19 is expected to increase by 12-14 per cent in this fiscal year, aided by robust growth in domestic and export markets. Exports of automobile components from the country were valued at $13.5 billion in 2017-18 (FY18).

According to the forecast by the Automotive Component Manufacturers Association of India, exports will surge to $80 billion by 2026. The domestic auto components industry expects to register revenues of $200 billion by then. Revenues in the auto components industry have risen at a CAGR of 6.83 per cent, growing from $26.44 billion in 2007-08 to $51.20 billion in FY18.

Domestic original equipment manufacturers (OEMs) contribute 55.97 per cent to the industry’s turnover, followed by exports (26.20 per cent) and domestic aftermarket (17.82 per cent). Read the rest of this entry »

Hyundai to sign agreement with Tamil Nadu govt for Rs 70-bn investment

Source: Business Standard, Nov 13, 2018

Chennai: Hyundai Motor India Ltd (HMIL), part of Korean auto major Hyundai Motor, is set to sign a memorandum of understanding (MoU) with the Tamil Nadu Government to invest Rs 70 billion in the state.

Y K Koo, managing director and chief executive officer, together with B C Datta, vice-president (corporate affairs), and N Ramesh, assistant vice-president (finance), of Hyundai Motor India Limited on Monday met Tamil Nadu Chief Minister Edapaddi K Palaniswamy in Chennai.

“This Rs 70 billion project means increased production capacity, new model launch and powertrain, altogether. We have the MoU signing in January with Tamil Nadu Government,” the Tamil Nadu Government’s official release stated, quoting Hyundai officials.

The company will increase its production capacity by another 100,000 units, including 50,000 completely knocked down (CKD) units. It also plans to start manufacturing electric vehicles in the state within three years. Read the rest of this entry »

Tata Motors eyes tie-ups with Ola, Uber with new shared mobility platform

Source: LiveMint.com, Oct 17, 2018

New Delhi: Tata Motors Ltd has created a separate division to explore ways to tap its entire range of passenger and commercial vehicles for offering shared mobility solutions, said two people aware of the development. Named Mobility Innovations Hub, the new department is headed by Pankaj Jhunja, formerly with Tata Technologies, said the people cited above, who did not want to be named.

The new department will also look at collaborating with startups such as Ola, Uber and other freight aggregators. Tata Motors is the first auto maker in India to create a separate division exclusively for shared mobility as the company manufactures an entire gamut of vehicles needed for last mile connectivity ranging from small cars to trucks and buses.

Confirming the appointment of Jhunja to run the shared mobility business, a spokesperson for Tata Motors said Jhunja will report to Shailesh Chandra, president, electric mobility business and corporate strategy. Read the rest of this entry »

Taiwan firm Kymco to invest $65 million in Indian electric scooter market

Source: Business Standard, Oct 15, 2018

New Delhi: Taiwanese electric scooter manufacturer Kymco on Monday announced a foray into the Indian market in partnership with local e-scooter start-up 22 Motors.

Kymco said it would invest $65 million in the Indian market over the next three years in introducing new products and localising batteries.

Kymco, which has annual revenue of $1.36 billion, sells 700,000 vehicles, mostly scooters, in markets like Taiwan and Europe.

It launched electric scooters early this year in Taiwan.

“People do not want to buy electric scooters because they worry about range anxiety, the wait time for charging and the price difference compared to petrol scooters. We have a total solution that solves all these problems,” said Allen Ko, chairman of Kymco. Read the rest of this entry »