Aditya Kondejkar

  • Tractor Companies Boost Output as September Sales Surge 80%

    For 18 months, tractor factories were working on a single or 1.5 shift basis at best because of demand slowdown. With numbers picking up, factories now are moving to two or three shifts to hit 100% capacity utilization. The capacity is currently 9.5 lakh units on a two shift basis, but we can also go to three shifts if the demand holds up.      Read The Article

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  • Regulatory Changes Could Boost India Auto Industry

    India’s auto industry has slid back to the level of nearly a decade ago due to multiple regulatory changes, a slowing economy, liquidity issues, and the COVID-19 pandemic.

    Aditya Kondejkar

    The auto industry has shown signs of recovery over the last couple of months; however, an additional demand push is required to generate sustainable growth. The government is evaluating a series of possible measures such as a revision in the goods and services tax (GST) rate and a production-linked incentive and scrapage policy.

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    GST Revision: The GST council is evaluating an industry 10% GST cut across categories of vehicles.

    This GST revision will defiantly neutralize the impact of the price hike due to BS-VI upgradation. Further, this GST revision will give a strong thrust to auto sales during the coming festive seasons. 

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  • Indian Government Allows Registration of EVs Without Batteries

    In a bid to promote electric mobility in India, the Indian government now permits sales of EVs without a battery. This step has been taken to reduce the upfront cost of EVs, since the most expensive component in an electric vehicle is the battery pack (which accounts for 40% cost of the total cost).    Read The Article

    Aditya Kondejkar

    PSR Analysis: We anticipate that electric 2 and 3-wheelers will be the first segments to benefit from this move. This move by the central government will support the FAME-II program and the Delhi government’s latest EV policy, aiming for 5 lakh registrations of EVs in 5 years.

    As the upfront cost of the electrical 2 and 3 wheelers will be lower than their ICE counterparts when registered without battery, it will be more attractive to consumers. However, implementation will be critical for the success of this move. As lack of infrastructure was one of the key reasons for customers not opting for EVs.

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  • Rural Economy Helping Ride Out COVID Impact

    With extended lockdowns in most parts of India, the production of all non-essentials was at a halt or at minuscule levels in April and May until the economy was unlocked. This move reduced demand in the short-term, but owing to intrinsic domestic demand, we are optimistic about future business expectations

    Aditya Kondejkar

    Better Outlook of Rural Economy

    However, hope has arisen from India’s rural part as the agriculture sector appears to have been relatively less impacted by the lockdown. This part of the country never truly went into a harsh lockdown, and thus procurement, harvest, and consumer activities have remained unaffected. Farming continued during the lockdown, especially for rice and wheat cultivation. The return of migrant workers caused a surplus of agricultural labor. This resulted in the fact – more land was brought under cultivation than ever before. As a result, the country has witnessed a good season of rabi harvest.

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  • The EV Story in Post-COVID Era

    Roughly three months of countrywide lockdown, combined with zero sales and the post-pandemic uncertainty, has resulted in further degrading the health of the already struggling Indian automotive sector. 

    Aditya Kondejkar

    Though it has disrupted the entire value chain of the automobile industry, there is a silver lining to this Covid-19 pandemic: It has stimulated growth in renewable and eco-friendly transportation.

    The Indian market has high potential for EVs since most commuters opt for two-wheelers, three-wheelers, and buses. There are numerous latent growth factors in place, and the pandemic might have set them in motion

    While the pandemic has disrupted the transportation ecosystem, EV technology has the potential for rapid adoption, driven by an increased awareness towards a greener and cleaner transportation. 

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  • COVID-19 and Lockdown Have Major Impact on Engine-Driven Applications

    Even before the COVID-19 crisis, the Indian automotive sector was facing a severe downturn, but the problems were amplified by the Covid-19 pandemic and the lockdowns across India and the rest of the world. The situation was compounded because India was transitioning from BS-IV to the BS-VI era.

    Aditya Kondejkar

    These are challenging times for the Indian automotive sector because of slow economic growth, negative consumer sentiment, axle load norms, a liquidity crunch, low capacity utilization and potential bankruptcies. The current lockdown has  severely affected the entire ecosystem of engine driven applications in India.

    For the first time, automobile OEMs reported zero domestic sales and very limited exports in April.  According to the Society of Indian Automobile Manufacturers (SIAM), the industry is losing more than $300 million per day.

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