MG Motors Plans To Make India An Export Hub

News: Indian Subcontinent

2021-12-19

MG Motors Plans To Make India An Export Hub

Aditya Kondejkar

MG Motor India is considering the possibility of exporting shipments from India to markets such as South Africa and the UK along with tapping other right-hand-drive markets across the globe. Despite the current semiconductor shortage, MG motors plans to prepare for a long-term vision of increasing its exports from India. The start  of the company’s South Africa operations has been delayed due to Covid-19.

MG motors has started exporting their vehicles to Nepal, and the company is preparing for the long term to make India an export hub for the neighboring markets. The carmaker has already dispatched its first batch of Hector SUVs to Nepal and plans to add Astor and ZS EV to the lineup in the Himalayan country next year.

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2021-11-21

Assembly of Russian Railway Machine Kits Started in India

Technical specialist of Sinara Transport Machines (STM) has started work on assembly of RTM-32 kits in India. They also will supervise trial starts of finished machines. Kit assembly works are performed under a State program “Made in India”, if there is a localization level of 51%.

Based on Russian kits, there will be made rail padding and straightening machines, which are used during railway construction, repair, and maintenance. Also, the machines are working with wooden and concrete rail ties. Assembly is based on the production plant of San Engineering & Locomotives Co. Ltd, located in Bangalore which is acting as STM partner in the project.

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Chip Shortages Cause Worst Festive Season in Decade for Auto Industry

Aditya Kondejkar

2021’s festive period from Navratri to Diwali (October) marked the worst performance for India automakers in nearly a decade. Usually, sales of PVs peak during the period, however, the demand was much lower this year. 

Further, two-wheeler and tractor sales dropped by about 10%. The major reason for this drop is supply-side challenges on semiconductors and lack of demand in entry-level segments for both PVs and two-wheelers.

In the commercial vehicles space, the situation was somewhat better with an increase in demand for interstate movement of goods.

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2021-10-23

Personal Mobility Segment Lacks Sparkle, Stocks, Demand Drop

Aditya Kondejkar

Passenger vehicles sales dropped 41% to around 160k units in September as the shortage of semi-conductors disrupted production at most of the OEMs. OEMs are facing supply shortages rather than demand problems. We are seeing robust customer demand as increasing preferences towards personal mobility increase.

2-wheel sales declined 17% to 1.5 million units in September. The Motorcycle segment is heavily impacted as sales is dropped 23% in September. Owing to high vehicle acquisition costs and high fuel prices, inquiries regarding new vehicles have dropped significantly compared with last years’ level.

“Indian automobile industry continues to face new challenges, said Kenichi Ayukawa, President, SIAM. “While on one hand, we are seeing a revival in vehicle demand, on the other hand, shortage of semi-conductor chips is causing a major concern for the industry. Many members have curtailed their production plans.”

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PSR Analysis: So, we believe the on road segments have witnessed a V-shaped recovery since the second wave of COVID-19 and won’t see a regular festive season spike for this year.   PSR

Aditya Kondejkar is Research Analyst – South Asia Operations, for Power Systems Research

2021-10-03

Second Wave of COVID-19 Hits India Commercial Vehicle Market

Motorindia-May_2021Download
Aditya Kondejkar

The second wave of COVID-19 has put the brakes on a rebound in India’s commercial vehicle market, reports Aditya Kondejkar, Power Systems Research Analyst for South Asia Operations, in the May 2021 issue of Motorindia magazine.

Kondejkar notes that the second wave of the pandemic has caused shortages of semiconductors and steel as well as weaker consumer demand. These forces have pushed commercial vehicle production down nearly 60% month-on-month (MoM) in April.

Kondejkar points out that the India CV market witnessed a strong performance in 2018 with more than 1.13 million
units produced, owing in large part to GST implementation and replacement demand. In 2019, however, the Indian CV market began shrinking as it faced headwinds from revised axle load norms, vehicle over-capacity, BS-VI transition, and a liquidity crunch.

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2021-09-26

India EV Segment Gains Traction

Aditya Kondejkar

The EV segment in India is continuing to grow with additional government support. In July of this year, the government partially modified the Faster Adoption and Manufacturing of Electric Vehicles (FAME) in India Phase II. It has included an additional demand incentive for electric two-wheelers to ₹15,000 per KWh from an earlier uniform subsidy of ₹10,000 per KWh for all EVs, including plug-in hybrids and strong hybrids except buses.  

This decision will increase the subsidy for such vehicles by 50% under the FAME II scheme and be a game-changer in adopting EVs.

Such moves from the government will boost faster adoption of EVs. Furthermore, with this kind of solid support, OEMs will also take a step forward to accelerate the mass adoption of EV.

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2021-08-22

PM Launches Vehicle Scrappage Policy

Aditya Kondejkar

Vehicles will not just be scrapped by their age, but also if they are found to be unfit in automated testing. The vehicle scrappage policy will bring in investments of around INR 10,000 crore to set up 450-500 Automated Testing Stations (ATS) and 60-70 Registered Vehicle Scrapping Facilities (RVSF) across the country.

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PSR Analysis: Under the Voluntary Vehicle-Fleet Modernization program (VVMP), the government plans to set up between 450-500 automated vehicle fitness testing stations across India on a public-private partnership (PPP) basis involving private firms and state governments. A total of 60-70 vehicle scrapping centers will also be built; these stations will be situated no further than 150-200 kilometers away from any location in India. A total of seven agencies – including Tata Motors – have signed a Memorandum of Understanding (MoU) with the government today for this project. Tata Motors’ vehicle scrapping center will be set up in Gujarat, will scrap both passenger and commercial vehicles and will have the capacity to recycle up to 36,000 vehicles a year.

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2021-07-27

Second FAME II Incentives May Spur EV Demand

Aditya Kondejkar

The amendments to the FAME-II electric vehicle policy were rolled out in the last month and manufacturers have lauded the efforts in adopting EV mobility in the country.

Source: Financial Express. Read The Article  

The government partially modified the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II. Further, it has included an additional demand incentive for electric two-wheelers to ₹15,000 per KWh from an earlier uniform subsidy of ₹10,000 per KWh for all EVs, including plug-in hybrids and strong hybrids except buses.

 This decision will increase subsidies for such vehicles by 50% under the FAME II scheme and be a game-changer in adopting EVs.

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2021-05-24

Mahindra To Set Up New Plant for Farm Equipment

Aditya Kondejkar

Mahindra and Mahindra Ltd (M&M), market leader in the Indian tractor industry, is betting on farm equipment because of increasing demand. The decision is greatly influenced by the healthy agricultural output, record sales for tractors and reverse migration since last year.

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PSR Analysis: The company is trying to enter the untapped farm mechanization segment in the country. According to Mr. Hemant Sikka (President Farm Equipment Sector Mahindra) this market has very high potential as India has only 1% share of the global farm equipment market vs. 10% of the global tractor market. 

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2021-04-25

Uralmash Sets Deal of US$ 322 Million with India

Uralmash (a subsidiary of UZTM-Kartex) has signed its largest deal in the last 30 years. UZTM-Kartex and Coal India Ltd Binay Dayal have signed a contract totaling US$ 322 million for walking excavators, according to the company.

Under the contract, the Uralmash plant will deliver five electric-powered walking excavators of increased power – ESH24.95 and will perform assembly of the equipment on the customer’s site. The OEM also will service machines for 11 years.

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PSR Analysis: ESH24.95 is an electric powered excavator with 24 cubic meter bucket and 95-meter jib. UZTM Kartex also makes diesel machines. Recently it has launched excavator with Cummins QSK-91 engine. PSR

Maxim Sakov is Market Consultant – Russia Operations for Power Systems Research