2020-11-24
The Union Cabinet has approved an expansion of the Production-Linked Incentive (PLI) scheme to include 10 more labor-intensive industry segments. The PLI outlay for automobiles and auto components is the highest at Rs 57,042 crore over five years, roughly Rs 10,000 crore a year.
2020-10-28
JV Sollers-Ford will resume production at its engine plant in Elabuga; the plant was closed in the summer of 2019 after Ford has left the Russian Passenger Car market. The engine plant in Elabuga is again owned by JV. Total investment in new project is expected to exceed US$ 8 million (627 million rubles).
The plant will produce diesel engines for LCV Ford Transit units. Mass production is planned for 2023, and production capacity will be 25,000 engines per year.
Hyundai plans to reduce annual production by 15% at its St Petersburg plant, according to plant director A. Kossack. As he notes, production volume at the plant has dropped significantly this year: in H1 2020, the plant produced only 73,000 cars, 25% of its production capacity.
Taking into consideration September’s output of 24,000 cars, total production volume through the end of the year should reach about 200,000 vehicles, almost 15% below the 2019 results. The plant has just returned to a three-shift working schedule. During the post-quarantine period, the plant working on a two-shift basis, making 700 cars per day.
PSR Analysis: It appears that the most pessimistic forecasts for the passenger car market to drop 40-50% are not going to be realized. Despite this outlook, Hyundai remains positive about the Russian market, and plans to start engine production here in 2021. PSR
Maxim Sakov is Market Consultant, Russia, for Power Systems Research
Daimler India Commercial Vehicle (DICV), a subsidiary of Stuttgart-based Daimler, plans to increase its dealership count by 10% to 250 this year. Read The Article
As Ashok Leyland (second largest player in the MH CV segment) is reducing its business to focus on SCV, DICV is adopting an aggressive strategy in the struggling Indian MH CV industry.
Hyundai Motor will collaborate with LG Electronics on home appliances for the interior of electric vehicles. The two companies will work together to develop OLED TVs to be mounted on the ceiling and walls, as well as home appliances such as refrigerators and coffee makers that make the interior of the car more comfortable. They unveiled the next generation concept car “Ionic Concept Cabin.”
Taking advantage of new battery options and big government subsidies, Tesla has slashed its Model 3 prices in China. The company’s Chinese website is now advertising a base price for the popular battery-electric sedan of 249,900 yuan, or roughly $36,800.
While this is big news for the company in its efforts to remain dominant in the Chinese market, U.S. consumers won’t be affected…at least, not yet
2020-10-23
SUMMARY. The global economy, especially within the Engine, OEM and Components industries, has felt the immediate impact from COVID: assembly line shutdowns, labor issues, supply chain issues, logistics and transportation to name a few. The pandemic has exposed many weak links in the global economic chain. However, by end of summer, most of these challenges were either completely resolved or temporary solutions had been put in place.
Diversification has become the theme during the pandemic recovery, and we expect this trend to continue. Not only are companies looking for new markets and suppliers to grow top and bottom line revenue as well as to minimize risks, but we see a shift into new industries. Furthermore, rapid developments of new technologies create massive opportunities for OEMs and suppliers as well as posing real threats to OEMs that solely rely on traditional products that are powered by fossil fuels.
2020-09-28
Vietnamese automaker VinFast has launched a luxury SUV, the VinFast President, to take on global brands like Lexus and Mercedes. To cost VND4.6 billion ($198,200), the seven-seater looks similar to VinFast’s first SUV, the Lux SA2.0, but with more advanced technologies and frills like massage and heated seats.
Its 420HP V8 engine can go from zero to 100 kilometers per hour in 6.8 seconds and offers a top speed of nearly 300 kph. VinFast will produce only 500 units and sell them exclusively in Vietnam. The first 100 customers will get a 17% discount on the price.
In its segment, the VinFast President costs 45% less than the Lexus LX 570 and 33% less than the BMW X7. Industry insiders say it lacks some premium features often seen in luxury cars such as captain’s chairs, TV screens and a high-end sound system. The vehicle signifies the ambition of VinFast, a unit of Vietnam’s largest conglomerate, Vingroup, to enter all segments of the auto market after bringing out its first vehicle in July last year.
2020-09-27
Zetta company has had to shift mass production of its Russian car “City Modul 1” until after 2020 because the Fund of Industry Development refused to provide credit of 99.9 million Rubles (about € 1.1 million).
According to the Fund opinion, the company has insufficient budget to start the production, even with the requested credit. “The company needs an investor, who will believe in market potential of the product, and will co-finance the project together with the fund. The fund is ready to consider application one more time as soon as such investor will be found,” the Fund said
“City Modul 1” would become first serial Russian electric car. Zetta plans to make the car on its own production site in Tolyatti; production capacity is 15,000 units per year.
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.
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.
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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