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Kia Motors Targets Growth in Rural Markets
Aditya Kondejkar Kia Motors is expanding its network and targets to reach 300 touchpoints by the end of the year. Further, the company will now focus on expansion in tier-IV and upcountry markets, which will further penetrate the Indian market.
The company is identifying the nerves of Indian customers. It has rightly understood that one of the critical factors in purchasing a car is consumers’ proximity to the brand. Hence, even before the first product (Seltos) launch in the market, it had a wide-spread network in 160 cities with 265 touchpoints.
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Daimler India Adopts Aggressive Dealer Strategy
Daimler India, which recently set up 10 new touchpoints, plans to have at least 350 dealerships across India in the next two years as it looks to deepen market penetration.
In September, DICV announced plans to grow its BharatBenz dealer network by 10%, exceeding 250 outlets by the end of 2020. With the opening of these new touchpoints, the company moves a step closer to cutting the distance between dealerships from 160 km to 120 km. The company is expanding strategically. The touchpoints…
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Production-Linked Incentive (PLI) Scheme Might Draw Investors
Aditya Kondejkar 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.
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DICV To Strengthen Dealership Network
Aditya Kondejkar 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.
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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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Belaz Wins Tender To Sell 96 Mining Trucks To India
The world’s leading mining trucks OEM – Belaz – has won the opportunity to supply 96 mining trucks to India, taking the prize from US and Japanese manufacturers.
Maxim Sakov They are heavy 220-ton mining trucks. The supply will take two years. Twelve trucks will be shipped to India this year, and the rest will be sent in 2021. The total contract value exceeds US$ 300 million. Belaz also is completing a previous large contract with India for 77 trucks.
PSR Analysis: Historically, Belarussian…
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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.
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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MotorIndia Sponsors Commercial Vehicle Webinar
MotorIndia Magazine, one of India’s leading publications devoted to commercial vehicles, recently held an important panel discussion on the state of the country’s CV industry.
Jinal Shah The live webinar panel discussion June 3, 2020, was moderated by Jinal Shah, Regional Director-South Asia, for Power Systems Research.
Shah began with a market prediction of a 45-50% drop in CV sales in 2020 over 2019 figures, necessarily taking the industry back by a decade in terms…
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