Page 29 - Automobile Industry

Working on portfolio of CNG bikes, first launch in FY25: Bajaj Auto

Bajaj Auto is developing a portfolio of CNG motorcycles, and the first such bike will hit the market next fiscal under a new brand, Bajaj Auto Executive Director Rakesh Sharma said on Wednesday. The company wants the government to consider lowering GST on such CNG bikes -- which will serve as a bridge to full electrification -- to around 12 per cent as it seeks to replicate the success it has witnessed in the CNG three-wheelers to the motorcycle segment as well. "We are putting our money where our mouth is. We feel CNG is a great option for the country, for the society and for the riders. We have proven this in three-wheelers and now we want to extend this into two-wheelers," Sharma told PTI in an interview. "It will not be only one vehicle but it will be a range of vehicles across segments. We will fill up the portfolio, we may not present it in one go but the idea is to have a portfolio of CNG motorcycles." Asked about the timeframe for the CNG bikes to hit the roads, he said, "I

Motherson Sumi Wiring India Q3 results: PAT grows 58% to Rs 167.86 cr

Auto components maker Motherson Sumi Wiring India Ltd on Wednesday reported a 58.12 per cent jump in profit after tax at Rs 167.86 crore in the third quarter ended December 31, 2023, riding on robust sales. The company had posted a profit after tax of Rs 106.16 crore in the October-December quarter last fiscal, Motherson Sumi Wiring India said in a regulatory filing. Total revenue from operations during the period under review stood at Rs 2,117.28 crore as against Rs 1,686.8 crore in the year-ago period, it added. "These strong quarterly numbers are the result of customer trust and our operational efficiencies," Motherson Sumi Wiring India Chairman Vivek Chaand Sehgal said. Further, he said, "We remain focused on delivering high-quality products and solutions to our customers and supporting them in their plans. We will continue to invest in capacities to meet the future demand." Motherson Sumi Wiring India said its new-age innovative capabilities are in place, serving all powertra

Discounts fail to fire up electric 2-wheeler sales in January, shows data

Industry unlikely to meet FY24 target of 1 million registrations

Toyota chief apologises for cheating on testing at group company again

Toyota chief Koji Sato apologized Monday to customers, suppliers and dealers for flawed testing at a group company, following a series of similar problems in recent years. The apology came a day before Chairman Akio Toyoda is to announce a global vision for the Toyota Motor Corp. group. The latest woes at Japan's top automaker involve testing required for Japanese government approval at Toyota Industries Corp., which makes diesel engines. False results were found for certification testing and other sampling inspections for engines which claimed the products met standards when they actually didn't, according to Toyota. We will do our utmost to resume production as soon as possible, Sato said at a hastily called news conference late Monday at Toyota's Tokyo office. Management was not able to fully comprehend and keep track of the details of what was happening on the ground, he said. Skirting of required tests surfaced last year at Daihatsu Motor Corp., which makes small cars and is

Domestic auto component aftermarket to touch $14 billion mark: Report

The domestic auto component aftermarket is expected to touch USD 14 billion mark by 2028 on the back of robust growth in vehicle parc in the country, a report commissioned by industry body ACMA in partnership with Ernst & Young said. As per the Global Automotive Aftermarket Research Report, the size of the automotive aftermarket stood at USD 10 billion in 2023. The growth of aftermarket in India is being fuelled by a steady increase in the vehicle parc -- number of vehicles running on the road -- which currently stands at 340 million and is expected to grow at a CAGR of over 8 per cent for the next five years, it added. "The Indian domestic aftermarket, valued at USD 10 billion in 2023, is poised to surge almost 1.4 times over the next five years on the back of growing vehicle demand and promising capabilities of the Indian aftermarket players," ACMA President Shradha Suri Marwah said in a statement. Besides, key ten international markets offer export opportunities of over USD 35 .

Hybrid vehicles practical solution for decarbonisation drive: Report

Hybrid vehicles are a practical medium-term solution for India's decarbonisation drive as the country moves towards eventual electrification, according to a report by HSBC Global Research. Under the current circumstances, the total carbon emissions (well to wheel) from hybrid cars is lesser than that of electric vehicles (EVs) and it may take 7-10 years for EV and hybrid emissions to converge. "Hybrids are critical not just from a cost of ownership perspective, but also for India's de-carbonisation drive," the report said. Hybrids are much less polluting than EVs, it said, adding that the "total carbon emissions i.e. Well to Wheel (WTW) from an EV is currently 158 g/km vs 201 g/km for diesel, 176g/km for petrol, and 133 g/km for hybrid". This means that hybrids are 34 per cent, 25 per cent, and 16 per cent less polluting than diesel, petrol, and a proportionate EV, respectively, it added. Total emissions include both vehicle emissions -- tank to wheel (TTW) and crude mining/refini

Disruptions at Red Sea route may hurt auto, electronics production: GTRI

Longer disruptions at the crucial Red Sea trade route may hurt manufacturing lines of some sectors like electronics, automobiles, chemicals, consumer goods and machinery, economic think tank GTRI said on Sunday. The Global Trade Research Initiative (GTRI) said companies relying on just-in-time manufacturing processes can be particularly vulnerable as they maintain low inventory levels and depend on the timely arrival of components and finished products. Few industries where production will be impacted due to disruptions in global value chains include electronics, automotive, machinery, chemicals, pharmaceuticals, plastics, textiles, and consumer goods, it added. Components and finished products are often shipped through the Suez Canal to reach different markets, and disruptions can lead to delays in manufacturing and increased costs, it said. Due to the attacks by Houthi rebels on commercial ships, the movement of goods from the Red Sea, the world's busiest shipping route, has ...

SSWC&MA approves Rs 1,937 cr project proposals for industrial expansion

The State Single Window Clearance & Monitoring Authority (SSWC&MA) has approved 27 project proposals for setting up new industrial enterprises and undertaking substantial expansion of existing units with proposed investment of around Rs 1,937 crore. SSWC&MA has approved Rs 1,937 crore project proposals and employment opportunities for 2,715 people, according to a press statement issued here on Saturday. The decision was taken during the 28th meeting of the SSWC&MA, which was presided over by Chief Minister Sukhwinder Singh Sukhu. The new proposals approved by the Authority include proposals of Xenone Healthcare and Master Formulations CO for manufacturing of tablets, capsules and ointments. Some of the other approved proposals include that of Gowthami Aquachem for manufacturing of Sodium Chlorite, Him Deep Alkalies Chemical for manufacturing of Caustic Soda Liquid, Hydrogen and Chlorine, Agro Farm Ventures for setting up a cold store, Scottill Healthcare for ...

Bajaj Auto Vice Chairman Madhur Bajaj steps down due to health reasons

Bajaj Auto Ltd on Wednesday said its Vice Chairman Madhur Bajaj has resigned due to health reasons. In a regulatory filing, Bajaj Auto said Madhur Bajaj has tendered his resignation from his position in the company with effect from the close of business hours on January 24, 2024. In his resignation letter, Bajaj said considering his age and current health and after being associated with the company for 44 years he wished to step down as the Vice Chairman and non-executive Director of Bajaj Auto. "I believe now is the time for me to pursue my other interests and commitments," he added. Further, Bajaj Auto said its independent director Lila Poonawalla has expressed her desire not to seek a second term when her first term ends on March 31, 2024. The board has approved re-appointment of Pradip Shah as an independent director for the second five-year term effective from April 1, 2024 and also recommended to the shareholders, the appointment of Vinita Bali as an independent director for

Passenger vehicle segment to see record 18-20% growth in FY24: Report

The Passenger Vehicles (PV) segment volumes are expected to log a record 18-20 per cent growth this fiscal as the pent-up demand levels off amid hike in vehicle prices, CareEdge said in a report on Tuesday. It also projected the PV sales volume to continue this growth momentum in the next fiscal, driven by factors such as strong order book and improvement in supply chain, the credit ratings agency said. The demand for premium variants is expected to remain healthy, while that of entry-level variants may remain muted due to high interest rates and an inflationary environment, according to CareEdge. The Electric Four-Wheeler (E4Ws) segment -- which contributes about 6 per cent to the total EV market sales -- volumes have grown significantly in the past few years, it said. Major Original Equipment Manufacturers (OEMs) have planned to introduce more EV models in the future, suitable for the domestic market that could boost their adoption and increase competition in the market, it ...

Suzuki Motorcycle India, SMFG India Credit Co partner for vehicle finance

Suzuki Motorcycle India Pvt Ltd on Friday said it has partnered with SMFG India Credit Co Ltd (formerly Fullerton India Credit Co) to provide financing on purchase of its two-wheelers. The two companies have entered into an MoU for the same, Suzuki Motorcycle India Pvt Ltd (SMIPL) said in a statement. SMFG India Credit is registered as a Non-Banking Financial Company-Investment and Credit Company (NBFC-ICC) with the Reserve Bank of India, and a member of Sumitomo Mitsui Financial Group (SMFG), it added. "Considering our continuous growth in the Indian market, it becomes imperative for us to associate with financiers who can facilitate ease of purchasing Suzuki two-wheelers. The idea is to offer flexible, yet easy retail finance offers, keeping in mind the needs of our customers," SMIPL Managing Director Kenichi UMEDA said. "We are confident that our engagement with SMFG India Credit will be another step in enhancing our ability to cater to the needs of our growing customer base in

BNC Motors plans to expand dealership network to over 300 outlets this year

Electric bike maker BNC Motors on Monday said it plans to expand its dealership network to over 300 outlets this year. It also said that around 90 of these outlets will be set up in north India, mainly across Delhi-NCR, Uttar Pradesh, Punjab and Haryana. The company further said that it plans to launch two more products this year, including a scooter and a bike. The electric bike maker currently has 10 dealerships. As part of the plans for accelerating national growth with a strategic expansion, BNC Motors plans to add over 300 dealerships in its networks in India by this year, the company said. Of this, close to 90 new outlets are planned for northern part of India, mainly in Delhi-NCR, Uttar Pradesh, Punjab and Haryana, it said. "Our increased focus on expansion into north India is a response to the growing demand and inquiries from customers who want to experience the BNC quality," said Anirudh Ravi Narayanan, CEO of BNC Motors. After six months of focused efforts in southern

Tata Motors to commence EV production at Sanand plant from April 2024

Tata Motors plans to commence production of electric vehicles at the Sanand plant, acquired from Ford India, from April this year, as per a top company official. Tata Passenger Electric Mobility Ltd, a unit of Tata Motors, acquired the facility from Ford India for Rs 725.7 crore in January last year. "We are planning to commence electric vehicle production at Sanand with Nexon EV from April," Tata Motors Passenger Vehicles MD Shailesh Chandra told PTI. The company has already commenced production of internal combustion engine-powered versions of the Nexon at the manufacturing plant with an installed capacity of 3 lakh units per annum. It can be further scaled up to 4.2 lakh units per annum. Chandra said the company is also looking to produce upcoming models at the facility. When asked about the company's product pipeline, he said that Curvv EV would be introduced around the second or third quarter of this calendar year. "We are also hoping that by the fag-end of this year, we sh

Ashok Leyland to make 1225 buses for Karnataka state transport undertakings

Company says order will strengthen its lead in Indian bus manufacturing

Classic Legends charts revival plan; to focus more on Asean markets

The company revealed that they are now targeting the Asean markets, starting with the Philippines

Ola Electric gets domestic value addition certificate under auto PLI scheme

Ola Electric on Wednesday said it has received domestic value addition certificate under the production linked incentive scheme for the automobile and auto component industry. The company successfully met the domestic value addition (DVA) criteria of 50 per cent among others as mandated by the Union Ministry of Heavy Industries, under the Production Linked Incentive (PLI) scheme for automobile and auto component industry, Ola Electric said in a statement. The certification has been granted by the Automotive Research Association of India (ARAI) after testing of the product and checks on the localisation standards of the components, it added. The company claimed it has become the first Indian two-wheelers company to receive the DVA certificate under the PLI scheme. "The PLI certification is a testament to our vertically integrated manufacturing capabilities and a significant milestone in our quest to accelerate India's journey towards clean mobility," a spokesperson of Ola Electric .

Govt to examine demands for inclusion of more components in Auto PLI: Min

The government has constituted a committee to examine the auto industry's demand for including more components in the production-linked incentive scheme for automobile and auto components, Union Minister Mahendra Nath Pandey said. "A committee has been constituted to examine demands from stakeholders to include more (automotive) components in the scope of the PLI scheme as technology keeps evolving. It will be chaired by an Additional Secretary in the Ministry of Heavy Industries and have 11 members including those from testing agencies like ARAI and the auto industry," the heavy industries minister told PTI. The minister was speaking on the sidelines of a conference on Auto PLI here on Tuesday. Considering the need of the auto industry, the ministry has extended the tenure of the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by one year and incentive will be provided for determined sales for a total of five consecutive financial years, starting from th

PLI payout for FY24 may lag behind govt's estimate of over Rs 11,000 crore

Ministries asked to ensure scheme is 'aggressively' monitored

Panel to examine industry's components inclusion demand in Auto PLI

The government has constituted a committee to examine the auto industry's demand for including more components in the production-linked incentive scheme for automobile and auto components, Union Minister Mahendra Nath Pandey said on Tuesday. "A committee has been constituted to examine demands from stakeholders to include more (automotive) components in the scope of the PLI scheme as technology keeps evolving. It will be chaired by an Additional Secretary in the Ministry of Heavy Industries and have 11 members including those from testing agencies like ARAI and the auto industry," the Heavy Industries Minister told PTI. The minister was speaking on the sidelines of a conference on Auto PLI here. Considering the need of the auto industry, the ministry has extended the tenure of the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by one year and incentive will be provided for determined sales for a total of five consecutive financial years, starting from th

India Inc likely to report 8-10% revenue growth in Q3: CRISIL Ratings

Corporates' revenues are likely to have grown 8-10 per cent in the 2023 December quarter on an annual basis, according to a report. The operating profits have likely expanded 100-150 basis points on-year in the three months ended December 2023, giving the corporates an overall operating margin of 19-20 per cent in the first nine months of 2023-24 fiscal, as per Crisil Ratings. Revenue growth would have been stronger but for the decline in agri-linked sectors such as fertilisers, consumer staples such as edible oils, industrial commodities like chlor-alkalis and commodity chemicals, and aluminium, Crisil Ratings said in the report based on the analysis of 350 companies, excluding financial services and oil and gas sectors. Also, the rating agency said that revenue growth seemed to be propelled by volume. Aniket Dani, a director with the agency, said construction-linked sectors, which together account for 20 per cent of the overall revenue, grew 5-7 per cent as construction activity