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  • Tata, JSW groups to invest over $30 billion in EV sector amid govt’s push: Report

    New Delhi, Oct 30: The Indian government continues to push for higher EV production in the country and for greater localisation of supply chains, which will be key to help the country reach the target of 30 per cent EV penetration by 2030, according to a report on Wednesday.

    “We estimate that the Tata and JSW groups alone will be investing over $30 billion into making EVs and EV materials over the coming decade, of which about $10 billion will be in South and Southeast Asia (SSEA),” said the report by S&P Global Ratings.

    As the world’s most populous country, India’s vast market potential is attracting substantial EV-related investment. EV adoption in India will progress with model launches that bring prices more in line with ICE models, and with improving charging infrastructure.

    “We also believe hybrids and vehicles powered by compressed natural gas will command meaningful market share alongside EVs in the light-vehicle and passenger commercial vehicle segments,” the report mentioned.

    The government recently launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme that has a financial outlay of Rs 10,900 crore over a period of two years. The PM E-DRIVE scheme will play a pivotal role in accelerating EV adoption and building critical charging infrastructure nationwide, contributing to a cleaner and more sustainable future.

    According to the report, the transition from ICE in India will initially be more about a shift to alternate fuels rather than pure electrification.

    “Government policies on imports and foreign investment will continue to play a critical role in India’s vehicle electrification,” it mentioned.

    India is increasingly important to the Korean entities Hyundai Motor Co. (HMC) and Kia, which combined rank as the second-largest carmaker in the country. The market accounted for about 12% of the group’s global sales volume in 2023.

    Hyundai plans to continue investing in India, including in local EV production. It will start with its first fully electric model made in the country, launching in January 2025.

    The company recently completed an initial public offering in India, and part of proceeds will be used to further their growth and improve its product offerings in that market, said the report.

    “We believe Tata Motors has sufficient financial headroom in its credit metrics to undertake its EV investments. In September 2024, the firm announced plans to invest about $1 billion in a new EV plant in the south Indian state of Tamil Nadu,” the report noted.

    Its parent entity, Tata Sons Pte. Ltd., has also announced an investment in a lithium-ion battery plant in the northwestern state of Gujarat, with an initial capacity of 20 gigawatt hours. The plant will support more development of the EV supply chain in that region.

    The report estimates that rated carmakers will be spending more than $20 billion building electric vehicle (EV) production in South and Southeast Asia for the next few years.

  • Castrol India Appoints Kedar Lele as Managing Director

    Kedar Lele, MD, Castrol India

    Hyderabad: Castrol India Limited, a leading lubricant manufacturer, has appointmented Kedar Lele as its new Managing Director, effective November 1, 2024.

    Kedar joins Castrol India after two decade-long career at Hindustan Unilever Limited (HUL), where he last served as the Executive Director of the company, responsible for Sales & Customer Development, South Asia. With his deep expertise in leading high-performing teams, driving growth, and fostering innovation, Kedar is set to play a pivotal role in steering Castrol India’s future in the evolving automotive and lubricants industry.

    Commenting on the appointment, Rakesh Makhija, Chairman, Castrol India Limited, said, “We are delighted to welcome Kedar to the Castrol India. His vast experience in driving growth and leading large teams in complex markets makes him an outstanding choice to lead Castrol India. I would also like to take this opportunity to thank Sandeep for his exceptional leadership over the past few years. His contributions have been invaluable in strengthening our position in the market, and we wish him success in his new global role.”

    Reflecting on his experience in the City of Pearls, as product lead and B2B Brand Manager for Monster.com over two decades ago, Kedar Lele, Managing Director, Castrol India Limited, said, “Hyderabad has always held a special place in my heart, as it played a pivotal role in shaping my approach to building strong customer relationships and the importance of cultivating strategic partnerships. The city’s vibrant business landscape and diverse market opportunities offered me invaluable experiences and insights into B2B marketing, product management, and advanced solution selling. I am excited to bring this knowledge to Castrol India, where I will focus on applying these learnings to further enhance our customer engagement strategies and strengthen our presence across key markets.”

    Castrol India has been a vital contributor to Hyderabad’s automotive ecosystem, with a well-established network of over 450 outlets, including Castrol Auto Service centres, bike points, numerous multi-brand car workshops, and an extensive dealer network, all catering to the city’s diverse automotive and consumer needs. With a dedicated focus on improving access to high-quality lubricant products, Castrol has expanded its presence across Hyderabad, ensuring that car and bike owners can benefit from advanced lubrication solutions.

    To ensure a seamless leadership transition, Kedar has been working closely with the outgoing Managing Director, Sandeep Sangwan, since September 1, 2024. This period of changeover has allowed Kedar to gain strategic insights into the company’s operations and foster strong relationships with key stakeholders.

    As part of the leadership shift, Sangwan will assume the role of Global Chief Marketing Officer at Castrol headquarters in London from November 1, 2024.

    With Kedar at the helm in India, Castrol is well-positioned for continued success in the Indian subcontinent. The company remains committed to sustaining its market leadership, pushing the boundaries of innovation, and fostering a rewarding environment for its stakeholders.

  • Maruti Suzuki To Supply Its First EV To Toyota

    Maruti Suzuki will supply its first-ever electric vehicle (EV) to Toyota Motor, both the companies said in the statement. The move marks their first collaboration on green vehicles.

    Suzuki Motor owns more than 50% stake in Maruti Suzuki. The production of the EV will commence in Gujarat during the spring of 2025

    As per resorts, the EV will be a sport utility vehicle (SUV) featuring a 60 kilowatt-hour. A Toyota spokesperson said that the new model will be launched by 2026.

    Currently, Maruti Suzuki does not sell any EVs in India or globally, but sells hybrid vehicles manufactured by Toyota’s Indian arm.

    As of now, Toyota sold 108,000 battery-powered electric vehicles till September. The sales Japanese automaker accounted for 1.5% of the global sales

    Previously, Suzuki and Toyota have collaborated on developing combustion fuel vehicles

  • EV collaboration between Suzuki and Toyota • EVreporter

    Suzuki Motor Corporation and Toyota Motor Corporation have announced plans to deepen their collaboration in the supply of battery electric vehicles (BEVs). Suzuki will provide Toyota with a BEV SUV model, which is set to be manufactured at Suzuki Motor Gujarat in India starting in 2025.

    Both companies, originating from Enshu in Japan’s Shizuoka Prefecture, have a shared history of transitioning from loom production to automobiles. Since 2016, under the guidance of leaders Osamu Suzuki and Akio Toyoda, they have expanded their collaboration to cover various areas, including vehicle production and mutual supply of electrified vehicles. This partnership has allowed them to reach markets in Japan, India, Europe, Africa, and the Middle East.

    This new SUV is the first battery electric vehicle (BEV) resulting from the companies’ original equipment manufacturer (OEM) relationship between Suzuki and Toyota, and it will be launched globally. Through this BEV introduction, the companies aim to support their carbon-neutral goals. The model is designed as an SUV and provides a cruising range along with a cabin for passenger comfort. It features an optional four-wheel drive (4WD) system that can enhance drivability on rough roads and improve overall performance.

    The BEV unit and platform were developed collaboratively by Suzuki, Toyota, and Daihatsu Motor Corporation, utilizing the strengths of each company.

    Suzuki President Toshihiro Suzuki‘s commented, “Suzuki will supply our first BEV to Toyota globally. I am grateful that the collaboration between the two companies has further deepened in this way. While continuing to be competitors, we will deepen our collaborations toward solving social issues, including the realization of a carbon-neutral society through a multi-pathway approach.”

    Toyota President Koji Sato‘s Stated, “By leveraging the BEV unit and platform that we jointly developed, we will take a new step in our collaboration in the field of electrified vehicles. This will allow us to deliver various choices that contribute to a carbon-neutral society to customers worldwide. We would like to learn from each other’s strengths, compete, and further joint efforts based on a multi-pathway approach.”

    Also read: Maruti Suzuki to launch 6 EV models by FY30-31

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  • Easing Sales In sub-Rs 10L Not Good For Mkt: Bhargava

    New Delhi: Decline in sales of cars priced less than Rs10 lakh, which once accounted for 80 per cent of the domestic market, due to affordability issues is a cause of concern, Maruti Suzuki India Chairman RC Bhargava said on Tuesday.

    As a result of the decline in sales of the segment, the overall growth in the car market is not happening, he said, adding people need more disposable income to bring back growth in the lower end of the market, although the company expects a 14 per cent overall retail sales growth this festive season. “Certainly, the fact is that the market under Rs10 lakh is not growing. In fact, it is declining.

    That is a cause of some worry because unless that lower end of the market grows, there is going to be no feeders into the upper market,” Bhargava told reporters in an earnings conference call.

  • Government approves PM-eBus Sewa PSM scheme for e-buses • EVreporter

    On October 28, 2024, the Government of India approved the PM-eBus Sewa-Payment Security Mechanism scheme through the Ministry of Heavy Industries. This initiative aims to establish a Payment Security Mechanism Fund for the procurement and operation of electric buses (e-Buses) under government-sponsored programs. The scheme is designed to mitigate payment delays and enhance the financial viability of OEMs/operators involved in Concession Agreements with Public Transport Authorities (PTA).

    Objectives:

    • Provide payment security against defaults by PTAs.
    • Establish a mechanism for recouping funds from parent State Governments/UTs in case of non-repayment.
    • Support capacity building and innovative technologies for PTAs.

    Salient Features:

    • Coverage: The scheme aims to support 38,000 e-buses.
    • Target Beneficiaries: PTAs and OEMs/operators.

    – PTAs must adopt the Gross Cost Contract (GCC) model and register a Direct Debit Mandate with RBI and procure through Convergence Energy Services Limited (CESL) or comply with Payment Security Mechanism (PSM) guidelines for direct procurement.

    – OEMs/operators must enter into Concession Agreements with eligible PTAs.

    • Duration: Payment security coverage for up to 12 years for each bus deployed under the scheme.

    Financial Outlay:

    The total financial outlay for the Scheme is ₹3,435.33 crore.

    Implementation Mechanism:

    1. Process for OEMs/operators:

    • PTAs will maintain an Escrow Account.
    • OEMs/operators will submit invoices as per the Concession Agreement.
    • Defaults by PTAs will be reported to CESL.

    2. Fund Disbursement:

    • CESL will review and approve payment requests.
    • Approved amounts will be disbursed to the Escrow Account.

    3. Repayment Mechanism:

    • PTAs must repay the disbursed amounts within 90 days, including a Late Payment Surcharge (LPS).

    Steering Committee:

    A steering committee has been formed to oversee the scheme, comprising members from relevant ministries and CESL.

    Implementing Agency:

    Convergence Energy Services Limited (CESL) will implement the scheme. Detailed guidelines for operation will be issued separately.

    Also read: Cabinet approves PM-eBus Sewa PSM scheme for 38,000 e-buses

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  • Centre Examining Ola Electric’s Claims Over Solving Consumer Complaints

    New Delhi: Despite Ola Electric claiming that it has resolved 99.1 per cent of the 10,644 complaints filed with the Central Consumer Protection Authority (CCPA) regarding its poor after-sales service, the Department of Consumer Affairs is critically examining responses filed by the Bhavish Aggarwal-run EV firm, and will correlate each consumer complaint with the company’s claims.

    According to sources, the CCPA is closely examining the electric two-wheeler maker’s claims and after examining individual complaints, the regulator will be able to “determine the correctness of the Ola Electric responses.”

    Moreover, one more EV player may also get CCPA notice regarding complaints filed by the consumers, said reports, citing sources.

    Complaints against EVs pending before the National Consumer Helpline (NCH) will also be analysed.

    Ola Electric’s share was around Rs 78 apiece on Monday, down almost 50 per cent from its all-time high of Rs 157.40.

    Earlier this month, the company was slapped with a notice from CCPA, after the National Consumer Helpline (NCH) received over 10,000 complaints in last one year regarding its poor after-sales service.

    If Ola Electric’s claims fail to satisfy the regulator, it may face legal action and reportedly lose the subsidies its electric vehicles are eligible for under the PM Electric DRIVE Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.

    Meanwhile, on social media platforms, complaints against Ola Electric continue to surge.

    “@OlaElectric @bhash, please respond to my email.. I’m sending reminders but no reply on the replaced battery warranty. Content is below. I need to get a minimum 10 years’ warranty for the batteries as it’s one of the expensive components in the scooter.. you can provide the same if you trust your product,” posted one harassed Ola Electric user on Monday.

    Another posted: “Forcefully scooter is delivered and look at the work done by your team and for this, you took 30 days. @jagograhakjago no one is there to question this company. Very much disappointing, 99 per cent forcibly delivered and closed the complaint.”

  • Auto Manufacturers Slash Prices to Boost Sales

    Due to a significant slowdown in the car industry, automakers are offering unprecedented discounts to attract buyers, with some discounts reaching into the lakhs. Popular brands like Maruti Suzuki, Honda, Mahindra & Mahindra, and luxury automakers such as Audi and BMW are offering reductions across a variety of models. For instance, luxury models like the Audi Q8 e-tron and Kia EV6 see discounts up to Rs 10-12 lakh, while Suzuki’s Jimny, a more compact model, is offered with discounts of around Rs 2.3 lakh. Analysts expect even greater discounts post-Diwali as manufacturers work to clear out high inventory levels.

    It’s not only the standard models that are seeing substantial discounts; even popular models like the Toyota Innova Hycross and Mahindra 3-door Thar are now available at reduced prices. The Hycross, once celebrated for its ‘strong hybrid’ version and star status, has also felt the impact of the industry slowdown, with discounts starting at Rs 1.5 lakh, according to data from research firm Jato Dynamics.

    Thar 3-door, impacted by the launch of its 5-door variant, is also discounted at Rs 1.5 lakh. Mahindra’s XUV400 electric is now offered with a substantial discount of Rs 3 lakh, making it an attractive option for buyers. In July, Mahindra had also provided a Rs 2 lakh discount on select versions of the XUV700.

    Industry analysts predict that discounts will deepen after Diwali as dealers and manufacturers resort to “desperate measures” to clear excess inventory. Additional models expected to see significant discounts include the Maruti Baleno (Rs 1.1 lakh), Maruti Grand Vitara (Rs 1.1-1.4 lakh), previous-generation Scorpio (Rs 1.2 lakh), Toyota Fortuner (Rs 2 lakh), Jeep Compass (Rs 2.5 lakh), MG Gloster (Rs 4.9 lakh), BMW X5 (Rs 7-10 lakh), Audi A4 (Rs 8 lakh), and Mercedes-Benz S-Class (Rs 9 lakh).

    Following a period of strong demand as the economy reopened after the Covid lockdowns in 2021, the car industry is facing challenges this year, with buyers showing less enthusiasm for new purchases than they did previously.

    Most automakers are reducing production and scaling back dealer dispatches as inventory levels climb. This trend is seen among leading manufacturers such as Maruti, Hyundai, Tata Motors, Honda Cars, Volkswagen, Skoda, and Audi.

    Ravi Bhatia, president of Jato Dynamics, explained, “The significant discounts represent just one aspect of the situation. The industry is grappling with a clear demand problem. The lower end of the market has been depressed for some time, and now even the high-end segment is facing saturation as the demand pool diminishes. This is not an issue confined to specific makes or models; it’s indicative of a broader, general slowdown.”

  • November 2024 to bring new sedans and SUVs

    Car enthusiasts in India can look forward to an exciting lineup this November, as four highly anticipated vehicles prepare to hit the market. With models spanning both sedans and SUVs, these launches promise to offer something for every type of driver.

    Here’s a preview of the November arrivals:

    Maruti Dzire 2024

    Expected Price: ₹6.70 Lakh*

    Launch Date: November 11, 2024

    The popular Maruti Dzire gets a fresh update this November. Known for its fuel efficiency and affordability, the Dzire 2024 aims to appeal to urban drivers looking for a reliable and stylish sedan.

    Mahindra Bolero 2024

    Expected Price: ₹10 Lakh*

    Launch Date: November 15, 2024

    Mahindra’s Bolero has long been celebrated for its rugged durability and performance in Indian terrains. The 2024 model looks to continue this legacy with upgraded features and enhanced safety, targeting drivers who need a versatile and tough SUV.

    MG Gloster 2024

    Expected Price: ₹39.50 Lakh*

    Launch Date: November 19, 2024

    For those seeking luxury, the MG Gloster 2024 stands out. This premium SUV is set to offer advanced tech features and plush interiors, catering to customers who desire a high-end driving experience without compromising on power and space.

    Hyundai Tucson 2024

    Expected Price: ₹30 Lakh*

    Launch Date: November 20, 2024

    Hyundai’s Tucson 2024 will bring a modern touch to the SUV market with its bold design and cutting-edge technology. Ideal for city driving and long-distance travel alike, the Tucson promises style, safety, and performance.

    With two sedans and six SUVs entering the market, November is set to be a thrilling month for car buyers.

  • Saera Electric and Porter partner to enhance EV logistics in India • EVreporter

    Saera Electric Auto Limited, known for e-rickshaw “Mayuri,” has partnered with Porter, an on-demand logistics platform, to deliver L3 and L5 e-Carts. The pilot project will launch in Delhi and Bangalore, targeting an initial delivery of 500 vehicles per month in each city, aimed at providing eco-friendly delivery options.

    This collaboration will expand Porter’s user base and address the demand for small-sized, sustainable transportation solutions. The rising need for efficient delivery services in Bangalore has prompted the companies to work together to potentially increase the initial fleet from 500 to 1,000 vehicles per month in each city. Additionally, incorporating electric vehicles into Porter’s fleet is expected to enhance its service offerings.

    The partnership is anticipated to create job opportunities for drivers and logistics professionals, with a guaranteed minimum daily income of ₹1,100 and the potential to earn up to ₹4,000 per day as Porter riders using Mayuri e-Carts. The agreement also includes coverage of vehicle EMIs for riders, promoting stable employment. Furthermore, the initiative is expected to contribute to improved air quality and reduced carbon emissions, aligning with India’s sustainability objectives.

    Elated on the occasion, Nitin Kapoor, Managing Director, Saera Electric Auto Limited, said, “We are happy to partner with one of the leading companies in India providing logistics services to people across cities. With this, we aim to capture the Bangalore market and showcase Mayuri’s expertise offering a diverse range of commercial utility vehicles designed for both short-distance quick commerce and intra-city delivery operations. Our e-Loaders and e-Delivery Vans are designed to meet the growing demand for efficient, eco-friendly transportation solutions. Moreover, this reflects our commitment to providing eco-friendly and technologically advanced vehicles that cater to the needs of Indian consumers. We will continue to work towards meeting the needs and demands of our customers.”

    The partnership between Saera Electric Auto Limited and Porter aims to modernize India’s logistics industry by integrating technology and sustainable practices for delivery options, enhancing the future of electric vehicle logistics in Bangalore and beyond. Saera, known for the e-rickshaw “Mayuri,” specializes in urban transportation with a variety of eco-friendly vehicles, including the Mayuri e-rickshaw and Saera Golf Carts, supported by over 750 touchpoints nationwide.

    Also read: Economics of running an electric L5 3W for last-mile deliveries vs ICE 3W

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