Tag: tata motors

Mahindra Calls for EV Level Playing Field Amid Tesla’s India Entry Plans

Indian automaker Mahindra & Mahindra has told the government there must be a level playing field between domestic and foreign players and local manufacturing must be promoted, a top executive said, as New Delhi seeks to lure carmakers such as Tesla.

Mahindra and Tata Motors have pressed Indian officials privately not to lower import taxes of 100 percent on electric vehicles and protect domestic firms and their foreign investors as the government reviews Tesla’s plans to enter the market, Reuters reported last month.

Asked about Tesla’s entry and New Delhi’s planned policy to lower import taxes, Mahindra Managing Director Anish Shah said his company had made representations to Indian officials saying global EV makers must be nudged to invest in India.

“It should be a level playing field and investing in India is important,” Shah told Reuters in an interview at the World Economic Forum annual meeting, without referring to Tesla by name.

“Our approach is essentially to create a stronger industry in India, and not to be in a situation where manufacturing is done outside India, and India just becomes an importer of products,” he added.

India sold 4 million cars last year and just 82,000 of those were EVs, but the nascent segment clocked sales growth of 115 percent versus the previous year.

Mahindra has raised around $400 million (roughly Rs. 3,325 crore) from Singapore’s Temasek and British International Investment, while private equity firm TPG and Abu Dhabi state holding company ADQ invested $1 billion (roughly Rs. 8,312 crore) in 2021 in Tata.

Shah said Mahindra has plans to list its EV unit, but not before 2029 “because we need to be able to show significant success in that business.”

“For us, electric is the future,” he said.

Tesla has proposed setting up an Indian factory but also demanded lower import taxes for electric cars. India is working on a new policy to cut import taxes on EVs to as low as 15 percent for companies committing to some local manufacturing, Reuters has reported.

But that has worried the Indian industry with sources saying Tesla’s entry could risk future fundraising of Indian EV companies as they need a stable and favourable import tax regime.

© Thomson Reuters 2024

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Tesla in India: How the Automaker Could Enter World’s Third-Largest Market With No Threat From Chinese Rivals

China’s loss in India could be Elon Musk’s gain.

Tesla has had a red-carpet welcome from India for its proposal to invest in the country, while its largest rival in electric vehicles, China’s BYD, has been stopped cold by increased scrutiny from New Delhi.

The result could be an opening for Tesla to negotiate terms for an entry to the world’s third-largest auto market without the competitive threat from BYD that it faces in other emerging markets, like Thailand.

“The future of who wins in India will have some bearing on who wins globally in the EV race,” said Jasmeet Khurana of the World Economic Forum.

Since a meeting between Musk and Indian Prime Minister Narendra Modi in June in New York, Tesla has fast-tracked closed-door discussions with Indian officials on a potential plant investment and plans to build a new low-cost $24,000 (roughly Rs. 19.85 lakh) EV.

Those talks continued over the past week with Tesla discussing minute details of its plans to gain access to India’s fast-growing EV market, and PM Modi personally tracking developments, sources say.

Those meetings, though, have been strictly kept under wraps, with officials putting out no photos on social media of handshakes with executives which otherwise is a usual affair after high-profile meetings.

BYD, meanwhile, appears to be taking a backseat. Months after seeking clearance for its own $1 billion (roughly Rs. 8,233 crore) investment in India, BYD is no longer keen to pursue the approval, Reuters reported. In a further setback, BYD is facing an investigation over allegations that it underpaid import tax in India.

Among other concerns, Indian officials are worried about the national security implications of Chinese-made vehicles and the data they could collect. India is “uncomfortable with Chinese automakers,” an official said.

While all investments from China have faced tightened approval requirements in India since a border clash between the two in 2020, there could be an outsized effect on the developing market for EVs in India because of China’s dominance in battery materials, battery production, and other technology.

Tesla, too, has Chinese suppliers that have helped it slash production costs at its Shanghai factory and it now wants to bring them to India – where it appears to have an upper hand in talks with New Delhi.

India has told Tesla it will allow its Chinese suppliers into the country if they forge partnerships with local firms, just like Apple did. But at the same time, India is hesitant about BYD’s $1-billion (roughly Rs. 8,233 crore) plan even though that too was proposed as a partnership with a domestic engineering firm.

The Global Times, a Chinese state-run newspaper, said the reported pushback on BYD’s investment plan “will lead to a chain reaction and deal a blow to the overall confidence of Chinese companies in investing India.”

BYD did not respond to requests for comment on the status of its India investment plan or the import tax claim. In a statement to Reuters, the company noted it had been active in the Indian market for 16 years and sells commercial vehicles and passenger cars there.

Tesla did not respond to a request for comment on its talks with Indian officials. Musk had said in June that PM Modi was “pushing us to make significant investments in India, which is something we intend to do.”

INDIA’S GROWING EV MARKET

Tesla wants to sell 20 million cars globally by 2030, up from 1.31 million in 2022, but faces hurdles to expanding its Shanghai factory.

BYD was the world’s biggest seller of EVs and plug-in hybrids in 2022 with a total of 1.86 million units – the vast majority in China. It trails Tesla in terms of sales of fully electric cars.

“Tesla sees competition mainly with BYD, and both are expanding globally at great speed,” said Gaurav Vangaal of S&P Global Mobility.

“If they want volumes, they have to come to India,” he said, adding that with the government incentivising companies to build EVs locally, India can also serve as an export base.

Annual production of light electric vehicles in India is expected to rise to 1.4 million by 2030, close to 19 percent of the total forecast production of 7.25 million, according to estimates by S&P Global Mobility. It was less than 50,000 in 2022.

India’s nascent EV market is dominated by local player Tata Motors, whose best-selling Nexon EV sells for as high as $19,000 (roughly Rs. 15.71 lakh) while Chinese carmaker MG Motor’s ZS EV starts at $28,000 (roughly Rs. 23.15 lakh) while BYD’s Atto 3 retails at around $41,000 (roughly Rs. 33.90 lakh) in India.

Toyota Motor, Hyundai Motor and Kia all sell mid-sized gasoline SUVs priced at around $24,000 (roughly Rs. 19.85 lakh), Tesla’s identified entry point.

Tesla does not currently sell vehicles in India.

“Tesla has become a desirable product in name alone,” said Sam Fiorani of AutoForecast Solutions. “Add to that an affordable product tailored for the Indian market and it has the potential to be a hit locally.” 

© Thomson Reuters 2023 

Samsung launched the Galaxy Z Fold 5 and Galaxy Z Flip 5 alongside the Galaxy Tab S9 series and Galaxy Watch 6 series at its first Galaxy Unpacked event in South Korea. We discuss the company’s new devices and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
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EV Maker BYD Said to Be Planning to Invest $1 Billion in India for Electric Cars, Batteries

China’s BYD has submitted a $1 billion (nearly Rs. 8,200 crore) investment proposal to build electric cars and batteries in India in partnership with a local company, three people with direct knowledge of the plan told Reuters.

BYD and privately held Hyderabad-based Megha Engineering and Infrastructures have submitted a proposal to Indian regulators to form an EV joint venture, the people said, asking not to be named because the application is private.

The longer-term plan is to build a full line-up of BYD-brand electric cars in India from hatchbacks to luxury models, one of the three people said. 

BYD, the world’s largest producer of EVs and plug-in hybrid vehicles, did not immediately respond to a request for comment. The company previously said it planned to set up manufacturing in India, now the world’s third-largest car market.

India’s commerce and heavy industries ministries did not immediately reply to a request for comment. 

BYD’s push into India is part of its rapid global expansion to challenge Tesla, which still leads in sales of EVs alone. If the India investment is approved, it would give BYD a presence in all major global car markets with the exception of the United States. 

Tesla has recently restarted talks with India’s government after putting on hold plans to enter the market last year when it failed to secure lower tax duties on imported vehicles in talks with officials. 

BYD has already invested $200 million (nearly Rs. 1,650 crore) in India where it sells the Atto 3 electric SUV and the e6 EV to corporate fleets, and plans to launch its Seal luxury electric sedan this year. 

The total production capacity proposed by BYD was not immediately clear.

The maker of Blade batteries as well as finished EVs has plans to scale up to production of 1,00,000 EVs annually in India over a few years but would likely begin by shipping vehicles in parts for assembly in the country as it works to build up a supply chain, one of the sources said.

The investment proposal also includes a plan by BYD and Megha Engineering to set up charging stations in India and build research and development and training centres, the sources said.

The joint proposal comes amid stricter investment rules. Since 2020, India has tightened scrutiny of investments from neighbouring countries, including China.

Those controls forced China’s Great Wall Motor to shelve a plan to invest $1 billion in the Indian market and pushed Chinese state-owned automaker SAIC’s MG Motor unit to look for a local partner.

Shenzhen-based BYD entered the Indian market in 2007 producing batteries and components for mobile phone makers.

In 2013 it started building electric buses with Megha Engineering, under a joint venture company called Olectra Greentech.

BYD, which stands for Build Your Dreams, sold a total of 1.86 million BEVs and plug-in hybrids in 2022. In India, EVs made up just over 1 percent of total car sales of 3.8 million in 2022 but the government wants to grow this to 30 percent by 2030. 

In India, BYD will compete with domestic automaker Tata Motors and Chinese rival MG Motor that currently dominate electric car sales.

© Thomson Reuters 2023

Will the Nothing Phone 2 serve as the successor to the Phone 1, or will the two co-exist? We discuss the company’s recently launched handset and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
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Auto Expo 2023: EVs Take Centre Stage With Participation From Over 70 Automakers

The Auto Expo got off to a rousing start in the national capital on Friday, showcasing electric vehicles (EVs) by more than 70 domestic and international automakers.

EVs are at the centre stage of this year’s Auto Expo, Japan’s NHK World international service reported. Maruti Suzuki, a subsidiary of Japanese auto manufacturer Suzuki Motor, has the largest share in the passenger car segment in the Indian market. 

According to the NHK World report, Suzuki Motor President Suzuki Toshihiro said electric vehicles have emerged as a viable option for vehicle owners and synthetic fuel and hydrogen are also new-age options in the automobile space. 

He also stressed the importance of thoroughly considering customers’ needs, the report said.

With India grappling with serious air pollution over the last few years, the Central government has planned to reduce vehicular pollution. As part of its plan of cutting down on vehicular pollution, the government will work on encouraging 30 percent of vehicle owners to switch to EVs by 2030. 

India’s car population of 1.4 billion is expected to expand even further, according to the NHK World report. Maruti Suzuki’s latest concept EV was the main attraction at the event. The Sports Utility Vehicle (SUV) can travel 550 kilometres on a single charge and the manufacturer aims to put it up for sale by 2025 in the Indian automotive market, the NHK World report claimed.

Other manufacturers in the Indian auto space such as Tata Motors and South Korea’s Hyundai Motor Company also showcased their EVs at the event.

Earlier, New Delhi created history by achieving the highest ever state-UT-wise monthly electric vehicle sales in the country.

As of December last year, New Delhi registered 7,046 electric vehicles with a year-on-year growth of 86 per cent. Since the launch of the EV policy, the UT registered 93,239 electric vehicles, of which two-wheelers contribute nearly 55 per cent of the total EV sales in the year 2022.

Transport Minister Kailash Gahlot, in a media address, said Delhi has always led from the front on the registration and sale of electric vehicles, making it the EV capital of the country and it is ready with the required private and public charging infrastructure with a total of 2300+ charging points and 200+ batteries swapping stations operating across the city.

Delhi’s EV policy was launched on August 7, 2020, with 2-wheelers (2W) and 3-wheelers (3W) identified as the priority vehicle segment.

 

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Renault Said to Be Considering Making Mass-Market EV Version of Hatchback Car for India by 2024

Renault is considering building a mass-market electric vehicle in India, two people with knowledge of the ongoing review told Reuters, as part of a renewed push into a market where EV adoption is expected to grow quickly from a small base.

The study by Renault underscores how the French automaker is pushing ahead with electrification plans even as it extends unresolved negotiations with its partner Nissan Motor about investing in an EV unit it plans to carve out from its other operations.

It also points to the shifting perception of the auto market in India, which posted the fastest growth of any major market in 2022. EVs were on track to be less than 1 percent of car sales last year but the government has set a target of 30 percent by 2030 and has had recent success in attracting suppliers for international automakers, with a range of subsidies.

Renault is studying launching a made-in-India electric version of its Kwid hatchback, the people told Reuters.

The review will assess potential demand, pricing and the ability to build the EV with local components, said one of the people, adding that any launch would be late in 2024.

The move is part of a broader plan by Renault to rekindle sales in a country where the carmaker remains profitable despite selling fewer cars in 2022 than a year earlier, the person said.

Renault India declined to comment on product plans but said the company has a “strong focus on electrification globally” as part of the strategy outlined by CEO Luca de Meo and that “India is one of the key markets” for the group.

India is set to become the world’s third-largest market for passenger and other light vehicles, displacing Japan, according to a forecast by S&P Global Mobility. Industry-wide sales grew an estimated 23 percent to 4.4 million vehicles in 2022.

That is a contrast to the outlook for the United States, where the market is expected to remain below 2019 levels next year, and China, where demand is weakening.

Renault had been hoping to reach with Nissan in December on the terms of a carve-out for its EV unit, but discussions have been slowed over concerns by the Japanese carmaker on a range of issues, including protection for its intellectual property.

“India will play an important role in future projects of Renault-Nissan but local plans will not be finalised before a global deal on a restructuring of the alliance is reached,” said one of the sources.

In India, domestic carmaker Tata Motors, which dominates electric car sales, as well as foreign players like Stellantis, Hyundai Motor and SAIC’s MG Motor are lining up EV launches.

Renault already produces a version of the Kwid EV in China which is sold in that market as the City K-ZE and exported to France as the Dacia Spring. The Spring, the second most sold EV in France in 2022, has a range of 230 kilometres and a starting price of 20,800 euros ($21,869) before government incentives.

To qualify for incentives in India, Renault would have to build the car at its alliance plant in southern India and source components locally, the first person said. The India plant is majority owned by Nissan.

Nissan declined to comment.

Renault currently produces the Kwid hatchback, Kiger SUV and seven-seater Triber in India. Its sales fell 9 percent to around 87,000 units in 2022 and its market share dipped to just over 2 percent.

As a part of the India reboot, Renault also plans to invest in refurbishing and upgrading some of its major dealerships in big cities, the person said. The company said it has 500 sales outlets in India.

© Thomson Reuters 2023

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Hyundai Expects Chip Shortage to Improve by 2023 Amid Ongoing Production Constraints, Company Official Says

Hyundai Motor India expects the semiconductor shortage issue to improve next year and the emergence of a clear picture of the competitive scenario as it faces production constraints at present, according to a senior company official. The second largest passenger vehicle maker in the domestic market by volume has been facing stiff competition from homegrown manufacturers Tata Motors and Mahindra & Mahindra, which are riding high on their new SUV models.

Besides, Maruti Suzuki has also revved up its SUV plans with the launch of the new Brezza and Grand Vitara.

Leading up to the festive season, HMIL, the maker of popular SUVs, Creta and Venue is sitting on a backlog of 1.3 lakh pending orders.

“2022 is driven more by the chip issue, so the real situation of demand will only emerge once we are able to produce with no constraints of semiconductor supplies and that is sometime away,” Hyundai Motor India Director (Sales, Marketing and Service) Tarun Garg told PTI in an interaction.

He was replying to a query about whether the company would be able to lead the SUV segment this year as competition has intensified.

“It is very difficult to judge now..we feel that going forward, in 2023 the situation will improve and then the real demand situation will come into play,” Garg noted.

For the company, the demand is clearly outstripping the supply, he stated.

“The competition is definitely increasing. More and more models are being introduced…80-90 percent of the models launched in the last few years have been in the SUV space…this is where the growth is,” Garg said.

In the April-June quarter, the domestic passenger vehicle sales stood at 9,10,431 units as compared with 6,46,272 units in the same period of FY22.

Hyundai dispatched 1,35,295 units to dealers in the period under review, Tata Motors 1,31,940 units while Mahindra & Mahindra sold 76,310 units during the June quarter.

Garg noted that Hyundai has been able to build a strong brand image in the country over the past two decades.

The automaker believes very strongly that as long as it would continue to really bring in technological innovations to India, customers will continue to prefer it over others, he added.

Besides, with it continuing to offer diesel cars which have a very strong demand in various states like Madhya Pradesh, Rajasthan and Telangana, is also a positive factor for the company.

“India being such a country, geography wise diesel (segment) is very very important in certain states ..demand is continuously going up in these regions..it is still very relevant..still a very strong proposition..,” Garg said.

He noted that the overall SUV segment continues to grow at a fast clip and now accounts for 41 percent of the 30 lakh strong domestic passenger vehicle market.

On festive season sales, he noted that semiconductor supplies have improved, helping its production to go up steadily in the last couple of months.

“We are encouraged by that and the demand continues to be very strong. We believe with improvement in the chip supplies we will be able to clear some of the backlog during the festive period,” Garg said.

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India’s Passenger Vehicle Makers See Double Digit Growth Amid Improvement in Chip Shortage Issue: Details

Improvement in semiconductor shortage issue helped auto makers, including Maruti Suzuki, Hyundai, Tata Motors and Mahindra & Mahindra, report single to high double-digit growth on Monday in their domestic passenger vehicles sales in July.

Other manufacturers, Kia India, Toyota Kirloskar Motor (TKM), Honda Cars India, Skoda Auto India, also reported robust growth in their domestic passenger vehicle sales with the auto industry estimated to have achieved the highest-ever passenger vehicle wholesales in July this year.

Maruti Suzuki India said its domestic passenger vehicle sales rose 6.82 percent last month to 1,42,850 units compared to 1,33,732 units in July 2021.

“The shortage of electronic components had a minor impact on the production of vehicles, mainly in domestic models,” the company said in a statement.

The company’s sales were driven mainly by compact cars, including Baleno, Celerio, Dzire, Ignis, Swift, Tour S, and WagonR, which rose to 84,818 units in July 2022 from 70,268 units in the year-ago month.

Sales of mini cars — comprising Alto and S-Presso — grew to 20,333 units last month, up from 19,685 units in July 2021. However, sales of utility vehicles —including Brezza, Ertiga, S-Cross and XL6 — were lower at 23,272 units compared to 32,272 units.

“The overall industry sales stood at over 3.42 lakh units last month as compared with 2.94 lakh units in July 2021. This is the highest wholesale figure we have ever seen in the industry,” MSI India Senior Director (Marketing and Sales) Shashank Srivastava told PTI.

The previous best wholesales stood at 3.34 lakh units in October 2020, he said, adding, it has been possible due to better production as chip shortage eased a bit.

The industry is expected to cross 37 lakh unit sales mark this fiscal, which is going to be the highest ever, he noted.

Another major player Hyundai Motor India said its domestic sales were at 50,500 units last month, 5.1 percent higher than 48,042 units sold in July 2021.

“With the improvement in the semiconductor situation, the passenger vehicle segment is showing positive trends riding on the green shoots of pent-up demand and customer desire towards personal mobility,” HMIL Director (Sales, Marketing & Service) Tarun Garg said.

Tata Motors posted a 57 percent increase in its domestic passenger vehicles sales at 47,505 units as compared to 30,185 units in the year-ago month. The company’s passenger electric vehicle sales also rose to 4,022 units last month from 604 units in July 2021, the company said.

Similarly, Mahindra & Mahindra reported a 33 percent increase in domestic passenger vehicles sales in July this year at 28,053 units as against 21,046 units in the same month last year, driven by its utility vehicles.

M&M’s domestic utility vehicle sales during the month were at 27,854 units, as against 20,797 units in the year-ago month, up 34 percent, while sales of cars and vans were down 20 percent at 199 units, as compared to 249 units a year ago.

“The supply chain situation continues to remain dynamic, and we are monitoring the situation closely,” M&M President, Automotive Division, Veejay Nakra said.

Kia India also reported a 47 percent increase in its wholesales to 22,022 units in July as compared to 15,016 units in July 2021.

Gradual improvement in the supply chain and continued demand for the brand is adding momentum to the company’s growth, Kia India Vice President & Head of Sales and Marketing Hardeep Singh Brar said.

Another automobile manufacturer Toyota Kirloskar Motor (TKM) reported its highest-ever dispatches in a month at 19,693 units in July. This was 50 percent more than 13,105 units it had sold in July 2021.

Skoda Auto also reported a 44 percent increase in its wholesales at 4,447 units in July as compared to 3,080 units sold in July 2021.

“This is usually the period where big purchases are kept on hold as it’s the monsoon and deferred till the festive season kicks off. Yet, we have clocked in solid numbers on the back of our made-for-India, INDIA 2.0 cars, the Kushaq and the Slavia,” Skoda Auto India Brand Director Zac Hollis said.

Honda Cars India reported a 12 percent increase in domestic sales last month at 6,784 units.

The maker of City and Amaze also exported 2,104 units last month.

The company had reported sale of 6,055 units in the domestic market and 918 units in overseas markets in July last year.

On the other hand, MG Motor India reported a 5 percent decline in retail sales at 4,013 units in July as production impacted by supply chain constraints. The company had registered retail sales of 4,225 units in the same month last year.

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Tata Motors Bags Order to Supply, Operate and Maintain 1,500 Electric Buses For DTC

Tata Motors on Friday said it has bagged an order for 1,500 electric buses from Delhi Transport Corporation (DTC) as part of a tender by Convergence Energy Services.

The auto major will supply, operate and maintain air-conditioned, low-floor, 12-metre fully-built electric buses for 12 years, as per the contract, it said in a statement.

“The delivery of these buses will further fortify our partnership with DTC and help in environment-friendly mass mobility for the city of Delhi. We are committed towards modernising public transportation in India and keep sustainability at the core in the designing of futuristic vehicles,” Tata Motors Vice President, Product Line – Buses, Rohit Srivastava said in a statement.

The Mumbai-based company has already supplied more than 650 electric buses across multiple cities in India, which have cumulatively clocked more than 39 million kilometres.

Delhi Transport Corporation MD Neeraj Semwal said the induction of the environment-friendly buses will help largely in reducing air pollution and benefit millions of citizens.

Convergence Energy Services (CESL) MD and CEO Mahua Acharya said that the Delhi Government has shown exemplary leadership in transitioning over to electric buses. “We are fortunate to have benefited from this and are thankful to Tata Motors in their generous collaboration,” she added.

Recently, Tata Motors’ Chairman N Chandrasekaran announced in a shareholders’ meeting that the company aims to sell about 50,000 electric vehicles (EVs) in the fiscal year to March 31, and double that in the 2023-24 period.

In 2021-22, Tata Motors sold 19,105 EVs, a growth of 353 percent from the previous fiscal year.

Electrification is the cornerstone of Indian Prime Minister Narendra Modi’s climate change and carbon reduction agenda and EVs are seen as a way to help India to cut its oil import bill and reduce pollution in major cities.

India wants electric models to make up 30 percent of total passenger car sales in the country by 2030, up from about 1 percent today, and e-scooters and e-bikes to account for 80 percent of total two-wheeler sales, up from about 2 percent.

 

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