Page 22 - Auto Sector

Auto component replacement demand estimated to grow 6-8% in FY24: Report

Auto component replacement demand is estimated to grow 6-8 per cent in the next fiscal driven by factors such as the increase in mobility and healthy freight movement, among others, a report stated on Friday. The improvement in demand has resulted in a positive impact on cash flows for aftermarket dealers and garages while the liquidity remains comfortable, credit ratings agency Icra said in the report. Also, there have been relatively minimal issues in the collection of receivables, as per the report. Icra also said that while the medium-term demand prospects are favourable, EV adoption, implementation of scrappage policy, component lifetime elongation, and possible increased use of public transport vis--vis private vehicles could cap the growth. The aftermarket segment constitutes around a fifth of the overall demand and remains a vital cog in the Indian auto component industry, it said. The average age of medium and heavy commercial vehicles had increased to almost 10 years, wh

CNG, EVs, hybrid vehicles to comprise 30% of total auto sales: ICRA

CNG, EVs and hybrid vehicles may grab up to 30 per cent share in total auto sales in next five years even as petrol cars are likely to dominate passenger vehicle volumes in medium-term, a report said on Tuesday. Demand for Electric Vehicles (EVs) has increased exponentially in the last two years with the government's push, increasing awareness, and new launches, domestic rating agency Icra said in its report. However, the share of EVs in the overall PV (passenger vehicle) industry remains low, at 1 per cent currently, it stated. On the other hand, CNG vehicles have also gained prominence in recent years, aided by favourable running costs, improving penetration of CNG dispensing stations across the country, and enhanced product offerings by OEMs, Icra said and added, lower emissions in CNG vehicles would also help OEMs (original equipment manufacturers) comply with the impending Corporate Average Fuel Economy (CAF) norms. Noting that a cohesive approach from all stakeholders is ...

Finance costs, global demand near-term hurdles for auto sector: Eco Survey

Among structural issues, increase in long-term third-party vehicle insurance premiums has spiked total upfront insurance cost by 10-11%, especially for two-wheelers

Auto parts sourcing start-up CapGrid raises $7 mn in series A from Nexus

Existing investors Axilor, Anicut Capital and Deepak Jain, partner at Bain & Co also participated; funds to be used to deepen firm's tech infra, hire talent, scale up cloud mfg with supply partners

Semiconductor shortage continues to impact production: Maruti Suzuki CFO

Maruti Suzuki India continues to witness an impact on its production as semiconductor supplies still remain challenging and unpredictable, according to the company's CFO Ajay Seth. In order to deal with the situation, the auto major is now working on ways to maximise its output from available supply of electronic components. Although the supply situation improved in the third quarter ended December 31, 2022 as compared to the second quarter of this fiscal, the country's largest carmaker could not produce around 46,000 units in the October-December period owing to the semiconductor shortage. "Limited visibility of electronic components is a challenge in planning our production. Electronic component shortage is still limiting our production volumes," Seth said in an analyst call. The supply situation of electronic components continues to remain unpredictable, he added. "Our supply chain, engineering, production and sales teams are working towards maximising the production volume fro

JLR Swings to profit after output of new range rover model doubles

Earlier this month, JLR said it might miss a target of becoming net-debt free by next year as the supply-chain crisis crimped output

Jaguar Land Rover President and MD Rohit Suri to hang boots after 14 yrs

He had joined Tata Motors as Head of Premier Car Division and led the launch of Jaguar and Land Rover in India in 2009

India's auto sector to grow at high single digit in FY2023-24: ICRA

The two-wheeler industry continues to struggle with industry volumes still below the pre-covid peak levels

No near-term boost likely for auto stocks from Expo 2023, say analysts

Analysts, however, believe investors may adopt 'buy on dips' strategy for the pack as overall sales growth is expected to remain steady going forward

India overtakes Japan to take third spot among largest vehicle markets

According to Siam, 4.13 million vehicles - including passenger and commercial - were sold in the country between January and November 2022

Will ICE 2-wheelers really fall off a cliff as Ola's Bhavish Aggarwal says?

Perhaps the more realistic scenario is also the more appropriate metaphor, writes Suveen Sinha

Severity of injuries worst among auto workers in Pune, shows SII report

Nearly 83 per cent incidents in Pune reported a loss of body part of the worker, as compared to 67 per cent in Haryana (Gurugram and Faridabad)

Why is the second-hand car market running in top gear

Second-hand car industry is becoming increasingly organised. The market for second-hand cars is expected to double in the next five years. Is the used car than the new 'new' for Indian auto-buyers?

Top Headlines: Auto sector's electrification race, e-comm deal at WTO

Business Standard brings you the top headlines at this hour

Two-wheelers rev up for mid-size battles amid rising competition

Royal Enfield has made aggressive moves in the 250-350 cc segment that it dominates, but the competition is accelerating

Why auto makers recall faulty cars & how you'll be impacted if you own one

There is no replacement guarantee, usually only the defect will be fixed; cost of recall repair is borne by the manufacturer, but additional defects discovered during repair are to your account

Jeep India working on next set of portfolio for domestic market

The US marquee on Thursday launched the 2022 edition of Grand Cherokee, priced at Rs 77.50 lakh in the Indian market

Qualcomm's venture capital arm planning to pick up stakes in EV startups

The company is also open to mergers and acquisitions in the auto tech space

Auto sales up 48% in Oct; all vehicle segments gain in festive season: FADA

Two-wheeler segment up 51%; high demand continues for SUVs and premium cars

Maruti production cost has remained constant for years: R C Bhargava

Bhargava says that each year the company, based on workers' suggestions, has saved around Rs 300 crore in costs