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Tag: automobile company

  • Top Self Driving Car Companies In 2022

    In the same way that we think about flying vehicles now, the self-driving automobile was once considered future technology that was decades away. Entirely self-driving cars are already commonly accessible for usage. Several automotive behemoths have announced the debut of completely autonomous vehicles in the last four years. Driverless car developers want to provide a hands-free experience without compromising human safety by using the most sophisticated 3D imagery and AI available. To name a few features, these high-tech vehicles have speed maintenance systems, brakes, traffic recognition, lane maintenance systems, and adaptive cruise control.

    Automobiles and cars are getting more intelligent and more connected in various ways, and these advancements will usher in some of the most exciting improvements in mobility and transportation in the next year and beyond. So without further ado, let’s look at top car companies that will bring out their self-driving cars in 2022.

    Top 5 Self Driving Car Companies

    1. Cruise
    2. Waymo
    3. Pony.ai
    4. Optimus Ride
    5. Uber

    Conclusion
    FAQs

    Self-Driving Car Companies

    Top 5 Self Driving Car Companies

    Cruise

    Cruise- Top Self Driving Car Companies
    Cruise- Top Self Driving Car Companies

    Cruise’s team is merging self-driving car technology with ride-sharing technology to create on-demand driverless transport modes that are cleanly engineered to cut fuel pollution.

    The company’s automotive products are combined with cutting-edge robotics and AI technology and put through rigorous simulation testing before being on the market to verify that they adhere to all applicable road laws and safety procedures.

    In 2022, Cruise’s driverless car division plans to launch a completely automated taxi service in San Francisco. Cruise has already started testing self-driving cars in the city, picking up General motors employees for test drives without someone in the front two seats.

    The corporation now has a permit to run vehicles in the town without a human on board at night speeds up to 30 mph. Cruise can also charge for delivery services but not ride-hailing services. In addition, in 2022, the business will introduce its ‘Super Cruise’ technology, which will be available in six cars.

    Waymo

    Waymo - Top Self Driving Car Companies
    Waymo – Top Self Driving Car Companies

    Google began working on its self-driving vehicle project in 2009 to drive independently for ten consecutive 100-mile journeys. Waymo, a self-driving technology startup, was acquired by Alphabet in 2016, and Google’s self-driving project became Waymo.

    Waymo produces a range of autonomous vehicles to fulfil the mobility demands of people around the country, including commuter cars and self-driving trucks that may be used in both personal and business settings.

    The company now provides tested and validated self-driving technology that responds swiftly and effectively to environmental elements and human interaction. Waymo launched its robotaxi services outside of Phoenix in August 2021. Riders will now be able to use the Waymo One app in San Francisco, where they will be able to hail a Waymo-powered Jaguar I-Pace EV.

    Waymo made an appearance in Manhattan in November 2021 for a test. It is yet to be seen whether Waymo’s self-driving cars will work successfully and make any growth in 2022.

    Pony.ai

    Pony.ai - Top Self Driving Car Companies
    Pony.ai – Top Self Driving Car Companies

    Pony.ai was founded in 2016, and since then, it has manufactured drones, robotic taxis, and self-driving automobiles. It has become one of the most valuable unicorns globally when it comes to AI technology development.

    Pony.ai began testing self-driving cars on public highways in California in June 2021, with ambitions to provide commercial service in 2022.

    In Fremont and Milpitas, the company is testing autonomous vehicles with human safety drivers behind the wheel. Pony.ai is also testing its self-driving cars in Guangzhou, China. Following a reported crash in Fremont on October 28, the California Department of Motor Vehicles told Pony.ai that it was suspending its driverless testing authorization on November 19.

    However, Pony.ai’s permission for testing with a safety driver is unaffected by the ban. This summer, Pony.ai also wants to relaunch a public carpool service in Irvine, employing autonomous vehicles with a human safety driver. Its objective is to have a completely autonomous service available to the public by 2022.

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    Optimus Ride

    Optimus Ride- Top Self Driving Car Companies
    Optimus Ride- Top Self Driving Car Companies

    Optimus Ride is a completely automated shuttle service designed to bring entire communities to their destinations as quickly as feasible. To assure security and comfort, the end-to-end mobility solution provides a rider-first experience and actual road-ready safety features.

    In March 2021, the business announced a partnership with Polaris, a producer of power sports vehicles, to bring completely autonomous GEM electric cars to market. The two companies are working on a new Polaris low-speed car that will completely incorporate Optimus Ride’s autonomous software and hardware package.

    In Brooklyn, California, Northern Virginia, and Boston, Optimus Ride has deployed roughly 30 Polaris GEM cars equipped with Optimus Ride autonomous technology for commercial ride-hailing operations.

    Rides are now restricted to a limited set of residents in riverfront apartment complexes, similar to when the service debuted in the DC region at the Reston-based Halley Rise mixed-use development. Passengers can reserve a ride up to a week ahead of their trip by downloading the Opti Ride App.

    Uber

    Uber- Top Self Driving Car Companies
    Uber- Top Self Driving Car Companies

    Uber is the world’s most popular ride-hailing and ride-sharing service, assisting individuals from all over the world in getting to where they need to go in quick time. On occasion, Uber has dabbled in self-driving vehicles, most notably partnering with Motional to investigate new methods to introduce self-driving technology to Uber’s network.

    Motional is a joint venture between Hyundai Motor Co. and Aptiv Plc that combines Aptiv’s self-driving car technology with Hyundai’s automobile manufacturing expertise.

    In 2020, Uber sold its self-driving vehicle section to Aurora Innovation Inc. and acquired a share in the company, abandoning its plan to build a fleet of self-driving taxis. The Uber Eats trial programme will deliver meal packages from select restaurants in the Santa Monica region of Los Angeles via the Uber Eats app. By early 2022, Uber Eats customers will be able to buy restaurant meal kits and have them delivered by one of Motional’s modified all-electric Hyundai Ioniq 5 robotaxis. The Hyundai cars employed in the testing had never been used to deliver anything before.

    Although self-driving vehicles will be used in the pilot programme, the service will begin with safety operators present in the vehicles and not be fully autonomous.

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    Conclusion

    By 2030, these services will account for up to 25% of all shared mobility travels, according to predictions. These self-driving cars will be shared, resulting in less traffic, more parking places, a cleaner environment, and, most importantly, fewer deadly automobile accidents.

    That day is not too far when all of our vehicles are automated and self-driven.

    FAQs

    What are the car companies to bring Self-driving cars in 2022?

    Some of the car Companies to bring self-driving cars in 2022 are:

    • Cruise
    • Waymo
    • Pony.ai
    • Optimus Ride
    • Uber

    What companies make AI for self-driving cars?

    Top companies that develop AI for self-driving cars are:

    • Cruise
    • Waymo
    • Agro.ai
    • Neuro
    • Pony.ai
    • Zoox
    • Robotic Research
    • TuSimple
    • Momenta
    • nuTonomy

    Which are the Top 10 Self-Driving Startups in India?

    Top 10 self-driving startups in India are:

    • Fisheyebox
    • Flux Auto
    • Netradyne
    • ATImotors
    • Hi Tech Robotic Systemz
    • Swaayatt Robots
    • SeDriCa 1.0
    • OmniPresent Robot
    • Auro Robotics
    • Playment

  • Droom Business Model | How does Droom make Money?

    The automobile business is one of the world’s fastest expanding and evergreen industries, particularly in India, where it plays a significant role in the country’s economic growth. Customers who are enthusiastic about cars and bikes will gain most from the industry’s perception of various automobiles culture of the industry. Droom is an online marketplace in India where you can buy and sell new and used cars. Sandeep Aggarwal established Droom in 2014. Droom provides a large variety of automobile categories and also other all connected services such as warranty, insurance, finance.

    A variety of elements influence a customer’s decision-making process when acquiring a vehicle, including price, performance, mileage, and vehicle ratings and reviews. Customers look for easy online platforms for buying and selling automobiles as the use of the internet and technology for activities such as shopping grows.

    Droom is a renowned autosite that provides an online platform for the vehicle industry. This is a digital automobile platform that employs technology to facilitate end-to-end vehicle sales and purchases from the vendor to the buyer. Droom’s broad and thorough platform allows users to buy or sell a variety of vehicles, from bicycles to aeroplanes. Droom is the largest online automobile platform in India for buying both used and new vehicles, and is also the fourth largest E-commerce site, with an 80% market share of India’s online automobile transactions.

    About Droom
    Business Model of Droom
    How does Droom Make Money?
    Competitors of Droom
    FAQ

    About Droom

    Droom’s business began in Delhi as an online marketplace for old vehicles, but after three months, it expanded to include two-wheelers as well. The brand spread its services across 100 cities within a year. After another six months, the company began offering services such as roadside assistance, warranty, and insurance. They also expanded their services to include seaways, planes, bicycles, and other vehicles.

    Business Model of Droom

    Droom’s Business Model

    Droom’s tenacious business model was important in its growth and success. Let me first define what the term “business model” means before examining Droom’s business plan.

    A business model is a form in which an organization is built, that supports the practicability of a product or a company and portrays how an organization operates and goes forward to achieve its aim. As a result, a business model encompasses all of an organization’s operations and regulations.

    Droom’s business model is divided into four categories: business to consumer, customer to customer, customer to the business, and business to business. The business to consumer model accounts for the majority of its revenue (approx. 88%), with the customer to business and customer to customer models contributing 10%, and the business to business model accounts for the remaining 2%.

    Value Proposition of Droom

    A value proposition is a value that a firm claims to deliver to its consumers, and customers prefer to buy their products or services based on that value. Droom’s proposition of value is unique, consisting of pricing, trust, and transparency. It provides buyers with a low cost and large selection, while sellers have access to a large number of online shoppers, a full range of e-commerce services, and so on, allowing them to manage their online store at Droom.

    Droom has become the first car gateway worldwide to house the entire ecosystem of the automotive, with additional elements such as price, finance, history, tools, and marketplace.

    Droom provides its customers with a variety of ecosystem products and services which are mostly technology driven by combining, data science and artificial intelligence such as using the “ECO App” for getting vehicles’ inspection reports. It also offers purchasers a full circle trust score to verify that the sellers with whom they are engaging can be trusted.

    Droom launched a pricing system for automobiles called Orange book value (OBV). It is the first company to introduce this feature in India. This assists dealers and consumers in determining the fair market price of automobiles. This is data-driven and unbiased. Consumers can also use this tool to see if a vehicle is available on the market. It also has Droom discovery, Droom assists, and Droom credit to help buyers and sellers.

    Division of Customers in Droom

    Droom’s target market is online consumers and internet users. In a larger sense, the company’s customer sector is classified into four categories: Buyers, Sellers, Dealers, Enterprises.

    Droom has created four marketplace types to ensure harmonious and smooth buying and selling operations. It offers a variety of purchasing choices to meet the needs of each buyer, which creates a major trust factor.

    Droom strives to be incredibly transparent. It allows sellers to upload an unlimited no. of listings and promote to a large audience on the internet, and it allows sellers to sell both used and new vehicles.

    Droom offers dealers self-service accounts, such as StoreManager. Dealers can use this to run and manage their internet company from anywhere at any time.

    Droom’s customers also include businesses involved in the automobile industry, it provides vertical enterprise solutions. It also offers a variety of effective advertising options.

    Important Resources of Droom

    Droom uses technologies such as AI, Machine Learning, Data Science, and Big Data in its core services such as customer assistance and the development of various tools such as OBV, and so on. These are the key resources of Droom. Labs of Droom are dedicated to using world-class technology apps to provide excellent user experience and user satisfaction.

    The company has a customer-centred approach and its trained and talented team of officials reach out to buyers and sellers helping the organization reach a certain level of growth.

    Client Relations with Droom

    Droom focuses on establishing trustworthy and strong client relationships and strives to provide excellent customer support and management, that is its assistant tool: Droom Assist. This tool helps buyers and sellers with guidance and consultation services. It also helps in transactions of its customers by making them easy and transparent. Droom improves its relationships with consumers by providing security to their funds with the use of easily refundable tokens.

    Major Activities of Droom

    Droom encourages its services and features through marketing and promotional activities on several social media platforms such as Facebook, Linkedin, etc. It also undertakes researches at its AI labs to develop improvements that would enhance customer satisfaction.

    How does Droom Make Money?

    Droom mainly has four sources to earn revenue that are, Service fees, Premium tools, Subscription, and Advertisements.

    The service fee is the main source of revenue, and this is charged on every successful transaction on the platform. This varies according to the vehicle type.

    The subscription plan is offered to various big auto dealers, and the company provides them with online products and services.

    Its premium tools include OBV, Droom credit, etc. Droom also earns a lump of money from advertisements as it advertises different auto brands on its platform. This also helps in doubling traffic on the platform.

    Competitors of Droom

    Droom faces major competition from companies such as Car24, CarDekho, OLX, and Quickr. Droom has several advantages over its competitors such as, it follows all the models of business and it is very efficient for buyers and sellers to get on the platform and use its services and provides an end-to-end service.

    Conclusion

    Recapitulating, Droom operates on a Business model, a plan that is well-integrated with technological advancements and a progressive model. It gives details to distinctive marketing activities. In the future, when automotive sales are expected to skyrocket, Droom will be facing tough competition, even though it has a big advantage overall.

    FAQs

    What does Droom Company do?

    Droom is India’s first automobile e-commerce platform that allows you to buy and sell automobiles online.

    How does Droom make Money?

    Droom mainly has four sources to earn money that are, Service fees, Premium tools, Subscription, and Advertisements.

    Who is the owner of Droom?

    Sandeep Aggarwal is the founder of Droom.

  • Luxury Ride – Redefining the notion of owning pre-owned luxury cars

    This article is contributed by Mr. Sumit Garg, MD & Co-founder, Luxury Ride.

    Ever been awe-struck looking at the stylish luxurious car with terrific design, running dynamically down the road. While attracting the crowd’s gaze, there must be many who are invigorated with the desire to own an exclusive luxurious car. But are unable to fulfill their dreams owing to financial constraints.

    Realizing the unfulfilled aspirations of the consumers, Sumit Garg incepted Luxury Ride to provide pre-owned best quality luxury cars to the consumers at the most competitive price. Luxury Ride started in the year 2015, is certified India’s biggest pre-owned, multi-brand luxury car company, and is the leading dealer in the pre-owned luxury car segment.  

    Luxury Ride – Company Highlights

    Startup Name Luxury Ride
    Co-founder & MD Sumit Garg
    Founded 2015
    Headquarters Delhi
    Industry Automobile
    Website luxuryride.in

    The Start of Luxury Ride
    What is Luxury Ride?
    Challenges Faced by Luxury Ride’s Founder
    Growth & Future Plans of Luxury Ride
    FAQs on Luxury Ride

    The Start of Luxury Ride

    It all started with Sumit Garg’s unflinching passion for luxury cars since his childhood which could not be evaded even during his engineering days in RVCE Engineering College. But after completing his graduation, when he was faced with two options, one leading to the conventional path of making a career in engineering and the other of pursuing the childhood passion, he without any doubt decided to mold his passion for luxury cars into a promising career.

    Hence, in the year 2012, right after his education, Mr. Garg Co-founded KoiBhiCar.com, an online marketplace for pre-owned luxury cars. While being in the industry, he soon realized that owning a luxury car came with acute financial obligations. The youth formed the major bulk of this aspirational population desiring to own a luxury car. Even though their disposable income and buying capacity raised substantially over the years, they still were unable to buy luxury cars and settled for economical cars with their hard-earned money. Additionally, he perceived the need for venture dealing in luxury cars that promoted inclusivity of more brand names with the help of a pivoted business model.  

    Sumit Garg was perceptive enough to counter the problem with his enthralling idea of venturing into the pre-owned luxury car segment. This led to the inception of Luxury Ride in 2015 which was aimed at organizing the otherwise scattered pre-owned car industry by exceptionally raising the service standards.  

    Co-founder of Luxury Ride
    Sumit Garg – Co-Founder & MD, Luxury Ride

    What is Luxury Ride?

    Luxury Ride is an end-to-end quality product and service provider which monitors and assists the customers throughout the process of buying the vehicle to support them in maintaining the car even after the purchase with the after-sales services. It is focused on elevating the experience of the customers. For a hassle-free experience, the pre-owned luxury car aggregator offers 15 days money return guarantee. It even provides easy premium financing options and lucrative insurance deals, showing value for the customer’s money.

    Nonetheless, the purchase from Luxury Ride has been backed up with a 1-year warranty assured of genuine, authentic parts, coming with 6 months warranty on the gearbox and engine. For the convenience of customers, it also provides a doorstep test drive facility. Understanding the complexity and importance of documentation, verification, thorough inspection in purchasing a pre-owned car seamlessly takes care of all the legal paperwork and testing procedures prior to handing the vehicle to the customer.  

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    Challenges Faced by Luxury Ride’s Founder

    But the journey was not as simple and easy as it sounds while listing the benefits of Luxury Ride. In the beginning, Mr. Garg was clueless as he did not know where to start. He struggled with funding to get the optimum capital required to set up the business. Reminiscent of one such incident, he recounted the challenge he faced during the launch of the first showroom in Delhi. That time he had no cars to showcase in the showroom. He requested his mentors and investors to lend him cars for stationing them in the showroom.

    Having overcome the roadblocks of setting up Luxury Ride, organizational and management challenges continually surfaced, requiring immediate attention on issues of regulating and managing manpower, staff training, devising strategies according to the objectives.

    But he was never discouraged with the difficulties coming his way. His incessant love for luxury cars motivated him to persistently work hard in his venture. He recognized the loopholes and showed great agility in rectifying the flaws. Undeniably his efforts were rewarded with the launch of the second flagship showroom in his hometown, Karnal. It is India’s largest showroom in the pre-owned luxury car segment. The outlet is spread across a 1-acre space with a 4-floor building that easily accommodates the display of 50+ cars.

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    Growth & Future Plans of Luxury Ride

    Over time Luxury Ride made its foothold strong in the northern belt of India by launching 7 showrooms in the leading cities of New Delhi, Gurugram, Karnal, Ludhiana, Chandigarh, Jaipur, and Dehradun. By serving all the verticals of customer requirement, Luxury Ride has secured a promising base of 4000+ loyal customers where they have sold 1200+ cars and serviced more than 10,000+ cars.

    The achievement can be attributed to the visionary of Mr. Garg who was never convinced and hence never settled with just the buying and selling prospect of Luxury Ride. Rather, he was aspirational for making it a 360-degree service under a single roof. He wanted to build a platform that provided every possible solution concerning the pre-owned luxury cars.

    Having achieved a substantial milestone, the journey doesn’t end here. Sumit Garg continually strives to establish leadership in the industry by creating a presence of Luxury Ride PAN India with future plans to open 50 new showrooms across the country.

    FAQs on Luxury Ride

    What is Luxury Ride?

    Luxury Ride is certified as India’s biggest pre-owned, multi-brand luxury car company, and is the leading dealer in the pre-owned luxury car segment.  

    Is Luxury Ride an Indian Company?

    Yes. Luxury Ride is an Indian company headquartered in Delhi.

    Where are Luxury Ride’s showrooms located?

    Luxury Ride made its foothold strong in the northern belt of India by launching 7 showrooms in the leading cities of New Delhi, Gurugram, Karnal, Ludhiana, Chandigarh, Jaipur, and Dehradun.

  • TVS Motor- India’s Multinational Two-wheeler Company

    The scenario of public transport in India was not this better always. The middle class had no other option than to wait endlessly for boarding crowded buses. This is the time when mopeds were introduced to the Indian market, and mopeds soon won the hearts of the Indian middle class. Talking about mopeds, one name that we can never fail to mention is TVS. TVS launched India’s first two-seater 50cc moped in 1980, which soon became a part of many Indian households. TVS is still upholding its legacy and is still considered a trusted name in the two-wheeler segment. Here is more on the journey of TVS.

    TVS Motor- Company Highlights

    Startup Name TVS Motor Company Limited
    Parent Sundaram – Clayton Limited
    Headquarters Chennai, Tamil Nadu, India
    Industry Automotive
    Founders T. V. Sundaram Iyengar
    Founded 1978
    Products Two-wheeler, Three-wheeler, Automobile parts
    Current CEO K. N. Radhakrishnan
    Website www.tvsmotor.com

    TVS Motor – About
    TVS Motor – Industry
    TVS Motor – Founders and Team
    TVS Motor – Startup Story
    TVS Motor – Mission and Vision
    TVS Motor – Logo, Slogan, and Tagline
    TVS Motor – Competitive Force Model
    TVS Motor – Employees
    TVS Motor – Challenges Faced
    TVS Motor – Investments
    TVS Motor – Mergers and Acquisitions
    TVS Motor – Subsidiaries
    TVS Motor – Growth
    TVS Motor – Competitors
    TVS Motor – Awards and Achievements
    TVS Motor – Future Plans
    TVS Motor – FAQs

    TVS Motor- About

    Indian multinational automobile manufacturer, TVS Motor Company (TVS) is located in Chennai, India. TVS is named after its founder Thirukkurungudi Vengaram Sundaram Iyengar. Motorcycles, scooters, mopeds, and 3-wheelers, as well as associated replacement parts and accessories, are the primary products of the firm. With exports to over 60 countries, TVS Motor Company is also India’s fourth-biggest two-wheeler manufacturer after Hero Moto Corp, Honda two-wheelers, and Bajaj Motors. In terms of export, TVS Motor is India’s second-largest exporter of two-wheelers.

    Automotive vehicles and Parts, Automotive Accessories, and TVS Financial Services & Others are the major operating divisions of TVS motors. The Automotive vehicles and components segment is where the majority of the company’s income is generated. TVS Motor Company is the largest firm of TVS Group both in terms of size and turnover.

    TVS Motor – Industry

    In India, the automotive sector is one of the most rapidly developing sectors. India isn’t known for being a simple market, but perseverance always pays off. India produced 26.36 million cars in Fiscal Year 2020.

    Passenger cars and 2-wheelers accounted for 80.8 percent and 12.9 percent of the Indian automobile market share, respectively, with over 20.1 million vehicles sold in FY20. Small and midsized automobiles are the most popular passenger vehicles.

    In all, India exported 4.77 million cars in FY20, representing a 6.94 percent CAGR from FY16 to FY20. Two-wheelers accounted for 73.9 percent of all vehicles shipped, with passenger vehicles accounting for 14.2percent, 3-wheelers accounting for 10.5%, and commercial vehicles accounting for 1.3 percent.

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    TVS Motor – Founders and Team

    T. V. Sundaram Iyengar established  T. V. Sundram Iyengar & Sons (TVS), a transportation firm with a huge fleet of trucks and buses, in 1911.

    T.V. Sundaram Iyengar

    Thirukkurungudi Vengaram Sundram Iyengar was an Indian businessman and pioneer in the car industry. T. V. Sundram Iyengar & Sons, a bus firm he started in 1911, eventually moved into automotive manufacture and became the parent company of the TVS Group, India’s largest commercial empire.

    TVS Motor – Startup Story

    T.V. Sundaram Iyengar is the founder of TVS Group. He began his career as a lawyer and later went on to work in the Railways and in a bank. Sundaram Iyengar however was more inclined towards entrepreneurship, and in 1911 he left his job to form TV Sundaram Iyengar and Sons, a Bus Service provider in Madurai. Till TV Sundaram Iyengar’s death in 1955, the company operated buses and lorries by the name of Southern Roadways Limited. TVS Motor, the flagship company of TVS Group was launched by TV Sundaram Iyengar’s Son T.S. Doraiswamy in 1978.

    In 1980, India’s first two-seater moped, the TVS 50, rolled out of the factory in Hosur, Tamil Nadu. Sundaram Clayton Ltd and Suzuki Motor Corporation formed a joint venture in 1987 as a consequence of a technological partnership with the Japanese car giant Suzuki Ltd. Motorcycles were first produced commercially in 1989.

    Sundaram Clayton was incorporated in 1962 as a joint venture between Clayton Dewandre Holdings and T.V. Sundaram Iyengar & Sons Ltd. It produced brakes, exhausts, compressors, and other automobile components. Sundaram Clayton is also the holding company of TVS Motor.

    TVS Group has since then ventured into many businesses and forged tied with many organizations. Axel India Limited, a joint venture between Sundaram Finance and Dana Holding Corporation, USA produces Axel Housings. Brakes India Limited was formed in 1962 as a joint venture between TV Sundram Iyengar and Sons Ltd., and Lucas Industries Ltd.UK. for manufacturing braking equipment. TVS is also into the manufacturing of Motor parts and accessories, Electronic Ignition Systems, bus bodies, rubber products, and even textile.

    TVS Motor- Mission and Vision

    TVS Motor’s vision statement says, “We are committed to being a highly profitable, socially responsible, and leading manufacturer of high value for money, environmentally friendly, lifetime personal transportation products under the TVS brand, for customers predominantly in Asian markets and to provide fulfillment and prosperity for employees, dealers, and suppliers.”

    TVS Motor – Logo, Slogan, and Tagline

    TVS is the abbreviation for Thirukkurungudi Vengaram Sundaram(TVS Group Founder). The company’s professionalism and power are symbolized by the lettering’s blue hue in the company logo. A red-hued jumping horse serves as the TVS logo. The horse’s silhouette is heading right, into the future, and represents the brand’s growth and velocity.

    Company Logo of TVS
    Company Logo of TVS

    TVS’ tagline says, “Inspiration in Motion.”

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    TVS Motor – Competitive Force Model

    The following is the analysis of the TVS competitive force model:

    Supplier Power – Although TVS has long been a popular provider for low-income clients in the two-wheeler industry, we will examine the suppliers’ influence in this case. The TVS supplier market is very fragmented, and the possibility of backward integration is also strong, limiting the suppliers’ strength. TVS works with a number of local vendors to procure spares and components for its cars. The arrival of numerous new small-scale manufacturers has also aided big vehicle manufacturers such as TVS in obtaining highly competitive prices for their spares and parts. This plainly demonstrates the supplier’s poor power.

    Buyer Power: Buyers’ power is greater in the two-wheeler sector due to the wide range of products and brands offered. Today’s buyers are choosy and particular about what they want for their money. They are seeking a brand that offers better prices and technology, which has eroded consumer loyalty for any company today and is TVS’s greatest danger.

    The threat of Replacements: When compared to other factors, the threat of substitutes is rather modest, since the market appears to be growing and maturing every day. However, when we looked farther down the road, we could see danger from rapidly rising gasoline prices, which may force buyers to convert to more fuel-efficient diesel vehicles. Growing environmental concerns have also resulted in the introduction of bicycles and battery-powered two-wheelers, which might pose a challenge to TVS in the future.

    TVS Motor – Employees

    • T. V. Sundaram Iyengar – Founder
    • Manu Saxena – VP Business Planning
    • K Gopaladesikan – CFO
    • Rajesh Narasimhan – CEO
    • Lakshmi Venu – Joint Managing Director & Non-executive director
    • TG Dhandapani – Chief Information Officer

    TVS Motor- Challenges Faced

    As of July 2020, Due to a shortage of trained labor, TVS Motor Company – one of the top manufacturers of motorcycles and scooters – was experiencing delays in the delivery of replacement parts and overall manufacturing operations.

    Following the lifting of the lockdown in May, most manufacturers are attempting to ramp up output in order to meet demand. However, factors such as a spike in Covid-19 cases and a lack of personnel have hampered automakers’ capacity to boost car manufacturing.

    According to the Society of Automobile Manufacturers, due to the negative impact of the Covid-19-induced economic downturn, car sales across all categories might drop by more than 25% in FY 21. This followed a decrease of 18 percent in domestic sales in FY 20.

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    TVS Motor – Investments

    Date Organization Name Round Amount
    Sep 3, 2020 Ultraviolette Automotive Series B ₹300M
    May 9, 2019 TagBox Series A $3.9M
    Apr 29, 2019 Altizon Systems Series A $7M
    Aug 15, 2018 Ultraviolette Automotive Series A ₹60M
    Dec 8, 2017 Ultraviolette Automotive Corporate Round –
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    TVS Motor – Mergers and Acquisitions

    Acquiree Name About Acquiree Date Amount
    EGO Movement Swiss Company EGO Movement offers innovative mobility solutions like e-bikes & e-scooters September 17,2021 Undisclosed
    Intellicar Telematics Intellicar Telematics promotes shared mobility to reduce traffic congestion and emissions. Dec 1, 2020 ₹150M
    Norton Motorcycles Norton Motorcycles (UK) Ltd manufacturers motorcycles in the UK for world wide retail. Apr 19, 2020 £16M

    TVS Motor – Subsidiaries

    TVS Motor Subsidiaries include –

    • Norton Motorcycle Company
    • TVS Housing Limited
    • TVS Motor(Singapore) Pte. Ltd.
    • TVS Motor Services Limited
    • Intellicar Telematics Private Limited
    • PT. TVS Motor Company Indonesia
    • Sundaram Auto Components Ltd.
    • TVS Motor Co. (Europe) B.V.

    TVS Motor – Growth

    On Monday, TVS Motor Company reported that it sold 278,855 automobiles in July 2021, an increase of 10% over the same month the previous year. In the month of July 2020, the indigenous automaker sold 252,744 vehicles.

    Not only has the brand seen an increase in domestic sales, but it has also seen an increase in international sales. In July 2021, it claimed to have shipped 103,133 automobiles, increasing 65 percent from the same month the previous year. In July 2020, it exported 62,389 vehicles. With 87,559 units delivered in July 2021, TVS saw a 62 percent increase in exports in the two-wheeler sector alone. It exported 54,141 two-wheelers to foreign markets in July of the previous year.

    According to the automaker, demand in the export market is still strong, and container availability is increasing compared to the previous few months when shipping was disrupted. In the next months, TVS anticipates a further increase in container availability.

    TVS Motor- Competitors

    Bajaj Auto, Hero MotoCorp, Yamaha Motor, Suzuki Motor Corporation, Ather Energy, Honda, Royal Enfield, Kymco, Piaggio & C. SpA, and Piaggio & C. SpA are among the top ten competitors of TVS Motor Company.

    TVS Motor – Awards and Achievements

    Most recent awards and achievements are:-

    • Bike Awards – 2019 – Two-wheeler manufacturer of the year
    • Indian Motorcycle Of The Year – 2017
    • TVS Motor has been awarded Highest in Customer Satisfaction by J.D. Power Asia Pacific Awards for 2018.
    • TVS Scooty Zest 110 is awarded the Most Appealing Executive Scooter by J.D.Power Asia Pacific Awards for 2016.
    • TVS Motor Company was named the Two Wheeler Manufacturer of the Year by NDTV Car and Bike Awards 2015.
    • TVS is India’s Most Trusted Brand in the Two Wheeler Category
    • TVS Apache RTR180 is the Most Appealing Premium Motorcycle as awarded by J.D.Power Asia Pacific Awards for 2018.
    • TVS StaR City + is awarded the highest-ranked Economy Motorcycle by J.D.Power Asia Pacific Awards for 2018.

    TVS Motor – Future Plans

    While TVS Motor Company has already begun manufacturing and selling their new electric scooter, the iQube, in a few locations, the next 24 months are expected to witness exponential development, with a whole new variety of electric vehicles due to reach the market under the new vertical. The vehicles will most likely be two and three-wheelers with power outputs ranging from 5 to 25 kW. However, for the time being, the brand’s electric car division will work alongside its ICE vehicle division.

    Speaking on his future plans, Sudarshan Venu who leads the new strategy says “We want to scale up the TVS electric experience pan India, and it is a space where we would like to play a leading role. We’ve quietly worked on EVs for the last one decade. It is a huge focus area for us as we advance. We are embracing this future; we are investing in it and are excited.”

    For the time being, though, it’s probable that the company is searching for partnerships to help them expand its charging network and satisfy consumer demands. In addition, the company has built a new EV plant that will be scalable to meet demand and is investigating the possibility of managing crucial backend production of batteries and other vital elements in-house.

    TVS Motor – FAQs

    Which country is TVS Motor based in?

    TVS Motor is an Indian automotive company.

    Who founded TVS Motor?

    T. V. Sundaram Iyengar established TVS, a transportation firm with a huge fleet of trucks and buses, in 1911. Later

    When was TVS Motor founded?

    TVS Motor was started in 1978 by T. V. Sundaram Iyengar’s son T.S. Doraiswamy

    Which companies do TVS Motor compete with?

    Bajaj Auto, Hero MotoCorp, Yamaha Motor, Suzuki Motor Corporation, Ather Energy, Honda, Royal Enfield, Kymco, Piaggio & C. SpA, and Piaggio & C. SpA are among the top ten rivals of TVS Motor.

  • Vespa Marketing Strategy: Success Secrets of Italian Brand Scooter

    With a premium design and outshining style, Vespa scooters have become premium favorites globally. It has become all possible because of the trending advertisements and also the modern and strategic marketing with a proper public relation of the company with the customers. And, all these marketing and publishing strategies of the Vespa scooters are performed by the manufacturing company, Piaggio.

    At first, the scooter was only manufactured and was driven and distributed in the European continent of Italy only. But with time, they spread their tentacles over other countries and found an outstanding lover of Vespa globally. Behind all this, the silent performer is the marketing strategy of the company, which makes it reach greater heights. With a proper head-scratching strategy, they have involved every age group of people and make them feel unique with its proper blending.

    Vespa – About
    Vespa – Marketing Strategy in a Nutshell
    Vespa – Target Audience
    Vespa – SWOT Analysis
    Vespa – Brand Positioning
    Vespa – Social Media Campaign
    Vespa – Celebrity-Endorsed Advertisements
    Conclusion
    FAQs

    About Vespa Scooters

    Vespa – About

    Manufactured originally by the Italian giant manufacturer, Piaggio, Vespa has become a luxury brand of scooters. It took birth in the year 1946 in Florence, Tuscany of Italy. Ever since it was transported to the other states as well. However, the shining paints and the pressed steel body of the scooter makes it stand apart from the other brand of scooters.

    At first, it started with the form of a single model motor scooter in the 1940s. But with time, it evolved and has now become a full line of scooters. It is one of the largest companies owned by Piaggio. It has also gained a fair presence over social media platforms like Instagram, Facebook, etc.

    With high-performing engines and a unified structural unit, the mechanism of the fancy scooters also satisfies a lot along with the design. Evolving from the old age generation of scooters, Vespa took a little while before manufacturing some new age fascinating scooters also. And, once it came into the run, it took the market with fire.

    Vespa – Marketing Strategy in a Nutshell

    Vespa Scooters
    Vespa Scooters

    The marketing strategy of the Vespa scooters is a little different and significant than the other ones. The marketing strategy includes some valuable points like:

    1. Focusing and investing in Youths: It is pretty clear about the sales that youths get interested in the Vespa scooters without any fuss. They want to stand out from the public. They want to be significant and different from the others. Hence, Vespa tries to focus more on what the youth is trying to get. Hopefully, they also represent their designs and advertisements fascinating to the youths.

    2. Maintaining the stability of the engine: A Vespa scooter, having a 124cc engine, is no less than a 124cc bike and provides an amazing pick up speed. The power of the engine is also great. It has a maximum power of 10bhp at 8250 pm. These all make the Vespa scooters the undisputed king of the scooter market with powerful engine stability.

    3. Premium Pricing: The Vespa scooters have set a proper and premium lifestyle of their scooters to reflect the exclusiveness of the product. It is also to get their audience to enjoy the ride at an affordable price.

    Vespa – Target Audience

    With the company’s market placement and functioning of the products, the target audience also varies. Vespa focuses more on the younger generation i.e., people of 18-35 years old. The customers behave too loyal to the company. They provide great word of mouth to increase the market value of the company within society.

    On the other way around, the company focuses on the people, who never mind spending a little more, but enjoy having a great ride with their loved ones. These people often try to make their face value great. They do so by having a higher face value scooter beside them. It is why the company focuses on them. Before this strategy, the company never really focused on the youth this way. But after the launching of the new age scooter Vespa in India, they knew this is the best way to grow.

    However, how much they focus on these elite clubbed youths, but the area of focusing remains stagnant and low due to obvious reasons. Nonetheless, they try to get what these prior customers need. They also provide these specific and beneficiary changes with time.

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    Vespa – SWOT Analysis

    Every company has some strengths, weaknesses, opportunities, and threats for their company. Hence, here discussing the SWOT analysis of Vespa:-

    The strengths of the company include:

    1. It has a strong distribution network and holds high brand equity.
    2. It holds the topmost position in the European market and upholds a strong technologically advanced process.

    The weakness of the company includes:-

    1. Although it has a worldwide market, it still depends on the Indian and other Asian Pacific markets for its success.
    2. It needs the young generation to take hype with this. They are mainly the targeted audience of the company.

    The most possible opportunities for the company are:

    1. As the company has a huge market base, it also creates an opportunity to develop a potential market and a better economy.
    2. With its fascinating design, it has created a rise in demand for the two-wheelers.

    Vespa – Brand Positioning

    It becomes too important to create a significant image of the company in this cutthroat competitive market. To get a proper image, it needs to create differentiated products apart from the competitors. It also needs to sell them to reach the audience. The competitors of the Vespa scooter brand include Hero, Honda, Suzuki, Alpha, and so on. It is also to keep in mind that these competitors also have a great face value in the market.

    However, this market and the face value of the Vespa scooters can be under maintenance if they still make these beautiful and sustaining products with time. This brand positioning of the Vespa attracts many people and those customers who want a premium brand of the scooter with high pricing quality.

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    Vespa – Social Media Campaign

    The social media strategy to promote products is not a new one. But, there is a difference in how you use social media. Vespa managed to get into different social media sites, mainly Instagram and Twitter. At such platforms, it got a hold on the nerves of the youth. With the new and exclusive models of the scooters, they started taking the requests from their social media audience regarding the products.

    And, when the product was out, they revealed the look in the social media handles first. It was exclusively for their followers only. Various engaging competitions also were the activities of the company. Many tie-ups with different movies and other brands also helped in creating a hype of the new model.

    They also retweeted almost every tweet which discussed the pros of the scooter. It made them provide the word of mouth of the people. With different festive offers, they also run discounted offers on social media. These offers were for products to the products which are directly ordered from their social media handle only.

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    Vespa – Celebrity-Endorsed Advertisements

    The brand endorsement of the company is too strong is done globally by celebrities. Globally, the brand ambassador of the brand is the famous soccer player Alessandro Del Piero who has performed many television advertisements and other campaigns for the company.

    On the other days, the campaign also featured itself in the football World Cup, showcasing its powerful pros to the audience. These different campaigns by the celebrity also get a super speed uprise to the hype of the company and pull the attention of the irregular customers to talk about it.

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    Conclusion

    This Italian luxury brand scooter Vespa put its an impactful presence all over the world. The Vespa sold its maximum scooters through promotion is from Hollywood movies. Vespa scooters are featured in many movies. Lots of film stars use it to shoot their role.  From early 1946 to now, they improved a lot in their engine power and performance. But you can see they modified less in its look. They believe their look is their real identity. Despite all, you can see 34 different versions of Vespa. It may be an old brand, but it is still popular among the youths.

    FAQs

    Who is the brand ambassador of Vespa?

    Alessandro Del Piero is the brand ambassador of Vespa.

    Who manufactures Vespa?

    The Italian company Piaggio group manufactures Vespa.

    Is Vespa an Indian brand?

    No, Vespa is an Italian luxury brand of scooters.

  • 10 Fascinating Facts About Ford you might not know

    Ford Motor Company is well-known. This automobile company has been around for over 116 years, creating iconic cars and even aircraft and armored vehicles during World War I & II.

    Many of the companies that were founded in the early 1900s have gone on to become some of the most influential companies in the world today. And, Ford was one of the most important companies that stood out from the crowd.

    Many of Ford Motor Company’s innovations have left their mark on the auto industry throughout its 115-year history. Ford is one of those companies whose name is well-known to everyone. With a rich history as one of the world’s oldest car manufacturers, Ford has many interesting facts that you may not be aware of!

    Ford’s history
    The quadricycle
    Thomas Edison’s Last breath
    Fordlandia
    Fords Innovative Assembly line
    Pay increase
    Ford Mustang was transported to the Top of Empire Estate building
    Jim Morrison owned only one car, a Ford
    Ford Airplanes
    Ford’s Racing clan
    FAQ

    Ford’s history

    Detroit, Michigan’s Ford Motor Company was founded in 1903. Henry Ford and his son Edsel were among the 12 founders. For him, it was all about raising money for his business to succeed. However, Henry’s stake in the company would not last.

    Henry and Edsel Ford bought out the other 10 owners of Ford Motor Company in 1919, allowing them to take full control of the company that bears their names. Detroit’s Mack Avenue was the site of the first Ford plant.

    The Quadricycle

    Ford Quadricycle
    Ford Quadricycle

    Henry Ford’s first vehicle was the Ford Quadricycle. It was a simple frame with a gasoline engine and four bicycle wheels mounted on it that was Ford’s first automobile. This quadricycle was completed in 1896. He built a 4-wheeled quadricycle with a tiller, a gas-powered 4-horsepower engine, and a transmission.

    Henry Ford worked as Thomas Edison’s chief electrical engineer In his spare time, he built the quadricycle. After reading an article in the November 1895 issue, he became interested in the subject.

    Thomas Edison’s Last breath

    Thomas Edison's Last Breath
    Thomas Edison’s Last Breath

    Despite their world-changing achievements, Thomas Edison and Henry Ford’s genuine friendship is a delightful tale that few people have heard. Two of the men bought vacation homes in Fort Myers, Florida, because of their lifelong friendship.

    The last breath of Thomas Edison was captured in a test tube and sealed with a cork, at Ford’s request. To Henry Ford, Edison’s “life and breath” remained in the tube. Friendship was very important to them.

    Fordlandia

    Fordlandia
    Fordlandia

    The Amazonian jungle of Brazil was the site of Henry Ford’s 1928 attempt to create a small “utopian”-style village. This plantation was to serve multiple purposes and be the size of a small village. While providing fresh rubber to his factories, it would also provide jobs for the locals.

    In the end, setting up the village proved to be much more difficult than he had anticipated. It ended up being a failure, and the land on which it was built is still uninhabited.

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    Fords Innovative Assembly line

    Ford's Innovative Assembly Line
    Ford’s Innovative Assembly Line

    Ford is credited with inventing the assembly line for making automobiles. This method of car construction was pioneered by Henry Ford, and it is still the most popular method of car construction today!

    Productivity skyrocketed as a result. A car could be built in less than 90 minutes, instead of the 700 minutes, it took before. The company’s profits soared as a result. Ford’s involvement was evident at every stage of the production process. A good business decision at the time, it turned out to be a world-changing innovation.

    Pay increase

    In 1914, the average factory worker earned $2.50 per day. Henry Ford increased the pay of his employees to $5 a day in 1914, which was unheard of at the time.
    For Ford and its workers, it was a wise move. It was a move that resulted in a positive atmosphere among employees. Their productivity went up as a result of this, as did their wages, which enabled them to buy a car that they helped to build.

    As a result of the new salary, a shorter working day, and profit-sharing, employee turnover was reduced, and the middle class and fair wages movements grew.

    Ford Mustang was transported to the Top of Empire Estate building

    Ford Mustang at the Top of Empire State Building
    Ford Mustang at the Top of Empire State Building

    Ford Mustang was disassembled and photographed from a helicopter after it was transported in four pieces using resident elevators to the Empire State Building in 1965.

    After being separated into four pieces and transported up using the elevators on-site, the car was finally delivered to its destination. Reassembled, the car remained there for five months before being dismantled.

    Jim Morrison owned only one car, a Ford

    Jim Morrison with his Shelby Gt500
    Jim Morrison with his Shelby Gt500

    The Doors are one of the most well-known rock bands in music history, with a worldwide fan base. Jim Morrison was the band’s lead singer, and he became an inspiration to many musicians of that era and subsequent generations.

    It was a 1967 Shelby GT 500 that Jim Morrison, the legendary Doors singer owned.

    It is one of the most famous Mustang models ever made. After suffering a heart attack in Paris in 1971, Jim Morrison passed away at the age of just 27. He’s buried in Paris, and his gravesite is still one of the city’s most popular tourist attractions.

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    Ford Airplanes

    Ford's Airplane
    Ford’s Airplane

    Ford Motor Company began manufacturing airplanes during World War I. During the “war to end all wars,” he wanted to lend a hand to the United States military. Throughout his life, Ford held 161 patents, proving that he was constantly innovating and expanding his reach.

    “Tin Goose” is the nickname given to the Ford Trimotor, a three-engine American transport aircraft. Henry Ford’s company began production in 1925 and ended on June 7, 1933. Ford produced 199 Trimotors. However, it was also used by military units. Unfortunately, he had to shut down the operation in 1933 due to a lack of success.

    Ford’s Racing clan

    Ford 24 Hour Le Mans
    Ford 24 Hour Le Mans

    During the 24 Hours of Le Mans race, Ford beat Porsche, Lamborghini, and Ferrari. With its GT40, Ford ended Ferrari’s six-year winning streak in 1966. Ford went on to win the championship four years in a row, which is noteworthy.

    FAQ

    Who is the founder of Ford?

    Henry Ford founded Ford Motor Company on 16 June, 1903.

    What was the first car made by Ford?

    Ford Model A was the first car made by Ford in 1903.

    What was the net worth of Henry Ford?

    Henry Ford had a net worth worth equal to $200 billion dollars adjusted for inflation.

  • Bajaj Group Of Companies – All You Need To Know

    Bajaj Group is an Indian multinational company that is one of the oldest and largest conglomerates of India.

    The group comprises 34 companies with around 36,000 employees across businesses such as two- and three-wheelers, insurance and steel, home appliances, travel and finance, etc. Its flagship company Bajaj Auto ranks as the world’s fourth-largest two- and three-wheeler manufacturer. Some of the notable companies are Bajaj Auto Ltd, Bajaj Finserv Ltd, Hercules Hoists Ltd, Bajaj Electricals, Mukand Ltd, Bajaj Hindusthan Ltd and Bajaj Holding & Investment Ltd.

    In recent news, the Bajaj Group has pledged to donate ₹200 crores towards Covid-19 response in addition to ₹100 crores they donated last year to support the government’s fight against the deadly pandemic.

    History And Origin of Bajaj Group
    Flagship Companies of Bajaj Group
    Corporate Social Responsibility(CSR) of Bajaj Group
    Bajaj Group – FAQs

    History And Origin of Bajaj Group

    The Bajaj Group of Companies was founded by Jamnalal Bajaj in 1926.

    Jamnalal Bajaj was a freedom fighter and a philanthropist, a close confidante of Mahatma Gandhi. He took the novel step of using business to serve society. His endeavors were taken forth and developed by his sons Shri Kamalnayan Bajaj, Ramakrishna Bajaj, and further by his grandson Shri Rahul Bajaj; who are responsible for blossoming the Group and nurtured it to the marvelous stature that it occupies today.

    All You Need to Know About Bajaj

    Bajaj started its business by setting up a sugar factory in Lakhimpur Kheri of Uttar Pradesh, which was one among the only 30 sugar mills that established the endowment of the sugar industry in India. Today, Bajaj Hindusthan Sugar Ltd. is Asia’s number one sugar manufacturing company and ranks globally among the top four.

    Jamnalal Bajaj strongly believed that the common good was more important than individual gain.

    Flagship Companies of Bajaj Group

    Bajaj Auto Ltd.

    Bajaj Auto manufactures two-wheelers and three-wheelers and is headquartered in Pune, Maharashtra.

    Bajaj Auto Ltd.
    Bajaj Auto Ltd.

    In 1945, Bachraj Trading Corp. Pvt.Ltd., now known as Bajaj Auto Ltd. was founded. Its activity was focused on the selling of foreign motorcycles and auto-rickshaws on the territory of India. In 1959, it was licensed by the government to manufacture two-wheelers and three-wheelers in India. Rahul Bajaj, the son of Kamalnayan Bajaj, later became the head of the Bajaj group in 1965.

    Since the year 1995, Bajaj has manufactured more than a million vehicles per year. Nowadays, Bajaj sells its motorcycles, bajaj automobiles, and auto-rickshaws in more than 50 countries of the world and it can compete on the market due to the low prices for its vehicles.

    Bajaj Allianz Life Insurance Co. Ltd

    Bajaj Allianz Life Insurance is a private general insurance company by Bajaj Group. It is a joint venture between Bajaj Finserv Limited and Allianz SE, a German financial services company; where Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz SE.

    Bajaj Allianz Life Insurance Co. Ltd
    Bajaj Allianz Life Insurance Co. Ltd

    In 2001, Bajaj Allianz General Insurance received an Insurance Regulatory and Development Authority of India (IRDAI) certificate of registration which allowed it to conduct general insurance business, including health insurance, in India.

    In January 2014, the company announced it would open up all-women branches.

    Bajaj Finserv Ltd.

    Bajaj Finserv Limited is a part of Bajaj Holdings & Investments Limited. It is a financial services company by Bajaj which focuses on lending, asset management, wealth management, and insurance. It is a consumer-focused company that emphasizes profitable growth and operational efficiency to deliver the best results to all its stakeholders.

    Bajaj Finserv Ltd.
    Bajaj Finserv Ltd.

    Bajaj Finserv won the CIO 100 Innovation Award for two innovations – EMI Card and Flexisaver, for exemplifying the highest level of operational and strategic excellence in information technology (IT).

    Bajaj Electricals Ltd.

    Bajaj Electricals is an Indian consumer electrical equipment manufacturing company based in Mumbai, Maharashtra. It has diversified with interests in lighting, luminaries, appliances, fans, LPG-based generators, engineering, and projects. Its main domains are lighting, consumer durable, engineering, and projects.

    Bajaj Electricals Ltd.
    Bajaj Electricals Ltd.

    It was incorporated on 14 July 1938 under the Indian Company Act, 1913 as a public company limited.

    Bajaj Finance Ltd.

    Bajaj Finance is a bajaj group subsidiary of Bajaj Finserv. It is a non-banking financial company that deals with Consumer Finance, SME (Small and Medium-sized Enterprises) and Commercial Lending, and Wealth Management. The company has 294 consumer branches and 497 rural locations with over 33,000+ distribution points, with headquarters situated in Pune, Maharashtra.

    Hercules Hoists Ltd.

    Hercules Hoists is a manufacturer of material-handling equipment. The company sells its products under the brand name Indef.

    Bajaj Hercules Hoists Ltd.
    Bajaj Hercules Hoists Ltd.

    Incorporated in the year 1962 with technical and financial collaboration from Heinrich de Fries GmbH, Germany; it is a Small Cap company (having a market cap of INR 304.80 Crore) operating in the Industrial Consumables sector.

    Hind Musafir Agency Ltd.

    Hind Musafir Agency Ltd.
    Hind Musafir Agency Ltd.

    Hind Musafir Agency Ltd. (HMA) is a full-service, IATA-certified travel agency. A part of the Bajaj Group of companies, it is in the business with over 50 years of experience. HMA is also recognized by the Department of Tourism (DOT) India and is a member of “The Travel Agents Association of India” (TAAI) and “Pacific Asia Travel Association” (PATA). HMA has also placed a strong IT backbone with an AMADEUS-enabled system for online Air Bookings.

    Mukand Ltd.

    Mukand Limited is a multi-division company involved in the business of Manufacturing Steel and Industrial Machinery. Incorporated in 1937 in Mumbai, it manufactures stainless steel, alloy steel, stainless steel billets, exporter of hot-rolled bars.

    Mukand Ltd.
    Mukand Ltd.

    Today, Mukand Limited is a leading supplier of alloy steel to the automobile and auto component industry and a leader in the manufacture of high-grade stainless steel in India.

    Bajaj Holdings and Investment Ltd.

    Bajaj Holdings and Investment Ltd. is a non-banking financial company that is primarily an investment company. The Company focuses on generating long-term capital appreciation. It also provides strong financial, managerial, and operational support to its group companies. Bajaj Auto Holdings Ltd. is a subsidiary of the Company. It is headquartered in Pune.

    Bajaj Holdings & Investment Ltd.
    Bajaj Holdings & Investment Ltd.

    Corporate Social Responsibility(CSR) of Bajaj Group

    The CSR Policy of Bajaj Group involves various welfare activities that are guided by the concept of trusteeship in business. It is the group’s philosophy that the true and full measure of growth, success, and progress lies beyond the balance sheets or conventional economic indices.

    The social and welfare objectives of the Bajaj Group are being fulfilled through the many Trusts and Foundations it has established spending up to 100 million (US$1.4 million) every year.

    The major CSR areas of Bajaj Group are Health, Women Empowerment, Education, Rural Development, Environment & Natural Resources and, Self- Reliance.

    Conclusion

    For Indian society, Bajaj Group is more than a corporate identity. It is an incentive for social empowerment. It offers an extensive range of products and services, now standing tall in the Corporate World.

    Bajaj Group – FAQs

    Who is the founder of the Bajaj company?

    Jamnalal Bajaj is the founder of the Bajaj company.

    When was the Bajaj company founded?

    The Bajaj company was founded in 1926.

    Is Bajaj an Indian Company?

    Yes, Bajaj is an Indian conglomerate founded by Jamnalal Bajaj an Indian freedom fighter.

    Who is the chairman of Bajaj Group?

    Rahul Bajaj is the chairman of Bajaj Auto. Rahul’s grandfather Jamnalal Bajaj founded the Bajaj Group in 1926 and his father Kamalnayan Bajaj succeeded him in 1942.

    How many companies are there in the Bajaj group?

    There are 34 companies in the Bajaj group including Bajaj Auto Ltd, Bajaj Holdings and Investments Ltd, Mukand Ltd, Bajaj Electricals Ltd, Bajaj International Pvt. Ltd, Bajaj Allianz General Insurance Pvt. Ltd and Bajaj Finserv Ltd.

    Is Bajaj Finance good for long-term investment?

    Bajaj Finance offers an interest rate that is higher than that offered by most FD providers. This makes it ideal for you to invest in Bajaj Finance Fixed Deposits for long-term benefits.

    Is Bajaj FD safe?

    Bajaj Finance FD carries FAAA rating by CRISIL and MAAA rating by ICRA, which indicate the highest safety for your capital. These ratings imply a safe investment environment and ensure that you get your returns in a timely manner, without any default on the part of the issuer.

  • List of all the Subsidiaries of Bajaj Group

    Bajaj group is one of the oldest, largest and one of the most renowned Indian conglomerate company. Bajaj group was founded in 1926 by Jamnalal Bajaj during India’s movement towards independence.

    The journey of Bajaj group started ninety years back with establishing a sugar factory in Lakhimpur Kheri, Uttar Pradesh. Now the company is amongst the top ten business houses of India.

    The chairman of Bajaj Group is Rahul Bajaj and has its headquarters based in Mumbai, Maharashtra. The company comprises of 40 companies as it has its footprint in many different industries such as spanning automobile, home appliances, lightning, iron & steel, insurance, travel and finance. The Bajaj group aims to cater the diverse needs of their consumers and add value with their innovation and vision.

    The Bajaj group has become so successful for more than 10 decades because of its subsidiaries like Bajaj Auto, Bajaj Finserv Ltd, Hercules Hoists Ltd, Bajaj Electricals, Mukand Ltd, Bajaj Hindusthan Ltd And Bajaj Holding & Investment Ltd, Etc.

    Bajaj Auto is currently ranked as the fourth largest two and three wheeler manufacturer in the world. Bajaj is popular brand in countries of Latin America, Africa, Middle East and South East Asia.

    The company has so far helped in the growth of many industries and upliftment of millions across the country. Under the guidance of Rahul Bajaj, the Bajaj Auto went from being Rs 72 million company to a Rs 120 billion company. Currently, the Bajaj Group has 90 plus years of experience with a market capitalization of Rs. 3.9 trillion as of 2018 and over 36,000 plus employees worldwide.

    A brief history of Bajaj Group
    The subsidiaries of Bajaj Group
    Frequently Asked Questions

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    A brief history of Bajaj Group

    The Bajaj Group of companies was founded by Jamnalal Bajaj in 1926 during the freedom struggle of India. Jamnalal Bajaj was also a known freedom fighter during the Indian independence and also a close confident of Mahatma Gandhi. In 1931 Jamnalal started a sugar factory in Lakhimpur Kheri of Uttar Pradesh which later becomes a flagship company of Bajaj group (renamed as Bajaj Hindustan Ltd in 1988).

    In 1954 the eldest son of Kamalnayan Bajaj took over the management of Bajaj Group, after completing his education in University of Cambridge. Kamalnayan Bajaj is responsible for expanding the business into the sectors of scooters, two and three wheeler, cement, steel and electrical appliances. The Bajaj Auto earlier known as Bachraj Trading Corp was founded in 1945.

    The history of Bajaj Group

    By 1948, Bajaj Auto has started its sales in the country by importing two and three wheelers. After the death of Kamalnayan Bajaj, his younger brother Ramkrishna Bajaj. Ramkrishna’s concentrated more towards social service and social welfare programmes of Bajaj Group. By 1965, Rahul Bajaj took over the business as the chairman and managing director of Bajaj Group.

    At that time, were many rules and regulation in India which is why the company was restricted to only producing 20,000 units a year. This created a gap between the demand and supply, Rahul Bajaj ignored the restrictions to increase its productions, reduce its cost in order to create what we now know as a beloved Indian brand.

    Under his leadership the company got into many selective international markets, and launched products that redefined entire categories in the market. In the 2000s, the company witnessed split’s as Rahul’s brother Shishir Bajaj, as they went their separate ways with Bajaj Hindustan and Bajaj Consumer Care. Bajaj group has revenue of more than Rs. 50,000 crore and is comprised of 40 companies all of them are managed independently by family members.

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    The subsidiaries of Bajaj Group

    Bajaj Auto Limited

    Bajaj Auto Limited is an Indian multinational two and three wheeler manufacturing company that has its headquarters in Pune, Maharashtra. The company is known to be the third largest manufacturer of motorcycles in the world and the second largest in India. Bajaj Auto is now a global behemoth thanks to the efforts of Rajiv Bajaj who steeped to become its Managing director in 2005.

    Bajaj Auto is popular for its motorcycles, scooters, auto rickshaws and a pioneer for introducing the first ever Quadricycle, Qute in India. The automobile company has manufacturing plants in Chakan in Maharashtra, Waluj and Pantnagar in Uttarakhand. In 2020, Bajaj Auto reached a market capitalization of $13.6 billion, making it the most valuable two wheeler company in the world.

    Bajaj Auto popular three wheeler
    Bajaj Auto popular three wheeler

    The most well-known vehicle of the Bajaj Auto is the Pulsar range of bikes which revolutionized the two wheeler market in the country as it was affordable and reliable. In 2007, Bajaj Auto went on to acquire KTM an Austrian company, which became the fastest growing motorcycle brand of the country in 2018 because of its Duke range of bikes. Bajaj Auto exports to 70 plus countries and has a significant share of revenue come from exports.

    Export share for Bajaj Auto FY 2020 by region
    Export share for Bajaj Auto FY 2020 by region

    Currently, the company offers a total of 18 bikes including 17 new bikes in India alone, out of which 3 are cruiser bikes, 10 commuter bikes, 3 sports bikes and 1 scooter. By 2021, Bajaj has got a total of 660 dealerships spread across 408 cities of India. In the year of 2018 to 2019, the company sold five million vehicles with the highest ever 1st turnover of Rs. 31,899 crores and over 2 million sales unit to over 79 countries.

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    Mukand Limited

    Mukand Limited is a Bajaj subsidiary that manufactures stainless steel and iron products, steel castings, steel structures, alloy steel and stainless steel billets and also an exporter of hot rolled bars.

    The company also manufactures Electrical Overhead Travelling (EOT), port equipment, process plant equipment for ferrous and non-ferrous industries and other cranes such as the country largest crane which has a capacity of 80 tons.

    about Mukand Limited

    The company was established by Seth Mukand Lal in 1929 in Lahore.  It wasn’t until 1989 that it was acquired by Bajaj Group. Mukand Ltd has a steel manufacturing and rolling capacity of more than 500,000 metric tons per year.

    It also produces over 400 different products that are specially engineered for clients across the world. The company is a leader of steel technology in India because of its use of advanced technology, sustainable in house research and development.

    Mukand is a pioneer in the industry because it was the first in India to successfully adopt the vacuum oxygen technology for manufacturing of stainless steel and also the fourth in the world to introduce the continuous cooling system for wire rods.

    In 2013 and 2018, the company formed joint ventures with Sumitomo Corporation of Japan. Mukand Sumi Special Steel Limited and Mukand Sumi Metal Processing Ltd are the two joint ventures between the two companies.

    Bajaj Electricals Limited

    Bajaj Electricals is an Indian consumer electrical equipment manufacturing company. This company that has its headquarters Mumbai, Maharashtra and is among the most trusted and well respected company with an experience of more than eight decades.

    The company is a leader in the industry of electronic consumer products and is known for its products in lighting (lamps, tubes and bulbs), luminaries, appliances, fans and LPG based generators.

    The Bajaj electrical home appliances
    Bajaj electrical home appliances

    It also has a strong presence in home appliance and cookware segments with brands like Morphy Richards and Nirlep. Bajaj Electricals also offer services in engineering and these projects usually include transmission line towers, telecommunication towers, high mast, poles, projects in wind and solar energy. This company has 19 branch offices, with more than 1000 distributors and 4000 authorized dealers across the country.

    It also has its products in over 400,000 retail outlets and 282 Customer Care centers. So far its highest turnover was Rs 6,744 crore in the FY 2018 to 2019. Bajaj Electricals has set up its offices in countries of Africa, Middle East and China and is also continuously expanding its global footprint.

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    Bajaj Finserv Limited

    Bajaj Finserv Limited is an Indian financial services company that provides services like lending, asset management, wealth management and even insurance. The company has more than 20,154 employees that are working in more than 1,409 locations and focuses on consumer finance business, life insurance and general insurance.

    According to the Economic Times, Bajaj Finserv is ranked 119 in the Economic times 500 list of 2014. The company is also listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Apart from providing financial services the company also is also known for its services in the wind energy generation with a capacity of 65.2 MW.

    Bajaj Finserv was earlier the financial wing of the Bajaj Auto, but the company demerged from Bajaj Auto in 2007. The company offers a wide variety of financial services for multiple needs, Investment and saving options, asset protection through general insurance, family protection and income protection provided under the life, health insurance, retirement and savings solutions.

    analysis of the companies of Bajaj Group 

    Bajaj Hindusthan Sugar Limited

    Bajaj Hindusthan Sugar Ltd is another major subsidiary of Bajaj Group. The company is known for being the number one sugar and ethanol manufacturing company which is headquartered in Mumbai, Maharashtra. It is also the largest sugar producer of the country. Bajaj Hindusthan is the country’s largest ethanol producer as it produces more than 38 million liters of ethanol per year.

    The company’s main sugar manufacturing plants in Gola Gokarannath and Palia Kalan in the Terai region of Uttar Pradesh which is rich in producing sugarcane. The Chairman of Bajaj Hindusthan Ltd is Kushagra Bajaj. BHSL is one of the first companies that was established by Jamnalal Bajaj in 1931, which was renamed in 1988 to Bajaj Hindusthan Sugar Limited.

    The company so far has over 14 manufacturing plants Golagokarannath, PaliaKalan, Khambarkhera, Barkhera, Kinauni, Gangnauli, Thanabhavan, Budhana, Bilai, Maqsoodapur, Pratappur, Rudauli, Kundarkhi and Utraula all in the state of Uttar Pradesh. The sugarcane crushing capacity of all these plants is 136,000 tons per day and a distillery capacity to produce 800,000 Lt of alcohol per day.

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    Hercules Hoists

    Another Bajaj Group subsidiaries which is a leader in an industry is Hercules Hoists known for the hoisting technologies. The company provides services such as Lifting, moving, storing which include Mechanical hoists, electric chain hoists, wire rope hoists, EOT/HOT cranes, light rail crane, ergonomic handling solutions, and floor operated stackers among others.

    So whether it is mechanical or electrical, the company will help their clients with hoisting and premium products. Hercules Hoists became a part of Bajaj group in 1962 and was made in collaboration with Heinrich de Fries from Germany.  The company has so far also helped develop other brands such as INDEF, Stier, iCRANE, iSTACKER in order to support the market for specialized products.

    Hercules Hoists has its corporate offices in Belapur, Khalapur and Chakan and sales office in Pune, Delhi, Kolkata and Chennai. The company also has a vast outreach with 50 Authorized Business Partners and close to 100 Authorized Retailers in the country.

    Frequently Asked Questions

    What does Bajaj group do?

    Bajaj Group is an Indian multinational conglomerate that provides services in sectors of Automobile, Financial services, Home appliance, Electrical appliances, Insurance, Manufactures iron and steel products, etc.

    What are the subsidiaries of Bajaj group?

    The subsidiaries of Bajaj group are Bajaj Auto Limited, Mukand Limited, Bajaj Electricals Limited, Bajaj Finserv Limited, Bajaj Hindusthan Sugar Limited and Hercules Hoists among others.

    Who is the chairman of the bajaj group?

    The chairman of the Bajaj group is Rahul Bajaj.

    Where is the headquarters of Bajaj Group?

    The headquarters of Bajaj Group is in Mumbai, Maharashtra.

    Conclusion

    Bajaj group is one of the largest, oldest and respected conglomerate in India, with a market capitalization of Rs 3.9 trillion. The company started more than 9 decades and is a leader in the sectors of Automobile, Financial services, Home appliance, Electrical appliances, Insurance, Manufacturing iron and steel products. With the success of every individual subsidiary under it the company is sure to grow bigger.

  • Reason for the Sudden surge in Sportscar sales in 2020

    According to the data from an online retailer, there has been an increase in the sale of used sports cars during the period of March to May. That was when the Covid-19 lockdown had implemented globally. Let’s look at the further details on the reasons for the increase in the sales of sports cars during 2020.

    Reason for Rise in Sportscar sales
    Statistics
    Value of Cars
    Popular Used Sports car
    Indian automobile market
    FAQ

    Reason for Rise in Sportscar sales

    The rise of the sale of sports cars instead of a steep decline in the sale was not surprising said the CEO of CarShop Nigel Hurley. He also said that the increase in the sales is due to the restrictions laid down on the people during the period because of the lockdown.

    He also added on saying that he was not surprised to see an increase in the sale of sports cars across England and Wales because he feels that sports cars were a source of relief for people during the distressing time of coronavirus lockdown. People were looking for something fun, positive and exciting to help themselves to get distracted from the situation of lockdown and the Covid-19 cases.

    Holidays were stopped, vacations were canceled, weddings were postponed and family gatherings were cut down, and amid all these why wouldn’t one treat themselves, Asked the CEO of CarShop Nigel Hurley.

    There was an unusuality in the data around the sales of sports cars in the West Midlands, North West and the East of England because the residents of these regions are largely from the rural areas. According to speculations the people in the rural regions might practically already own a vehicle.

    They would have seized the opportunity of the lockdown to buy something which would provide them a bigger enjoyment factor. The sports cars would be something they could use to drive along their beautiful countryside and the surrounding areas.

    This could be a replacement for the people instead of the stopped vacations and postponed weddings to create a sense of fun and enjoyment.

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    Statistics

    The sale of used sports cars had skyrocketed to an increase of 82% from March to May. In the West of Midlands, the sales of used sports cars increased up to 200% according to the data provided by CarShop.

    The North West of England saw an increase in the sales by 185% and the East of England saw an increase in the sales by 159% respectively. This increase in sales was during the time where driving was banned except for any essential reasons when the Lockdown was announced.

    The company has told that they had also seen an increase in their website for the sale of SUV segment of cars. They said that it was less surprising because there is an ongoing love in the western world for the SUV car segment.

    SUV sales had an increase in their sales by 17% but this is not so dramatic compared to a large number of sales by Sports cars.

    Value of Cars

    The value of cars bought during the time of pandemic has increased which is quite notable as the pandemic and the nationwide lockdown had affected the economic situation globally. It had led to unemployment and depression worldwide.

    The average amount a consumer paid in the UK last year that is 2019 was around 10,000 Euros from which it increased to 11,219 Euros during June and August in 2019 according to the data received by
    CarShop.

    Global luxury car market size from 2010 to 2020
    Global luxury car market size from 2010 to 2020

    Popular Used Sports car

    According to the research, the most popular used sports car was the Mercedes Benz SLK. It is a compact roadster and the production of this car was started in 1996 and later it was rebranded to SLC. The car was later discontinued because of the increase in the competition from other players.

    27% of the Mercedes Benz SLK’s sold were the ones which were released in the year 2015 and 23% of the SLK’s sold were released during the year 2014. It is said that more than 95% of these cars had automatic transmissions.

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    Indian automobile market

    In the Indian automobile market, Italian Automobile Lamborghini has reported that it had seen an increase of sales up to 60% in the year 2019. The company had told that they were going to concentrate on the super luxury segment market in India.

    Some of the few reasons for the growth of the company in India was because of the spread of the demand towards Tier I and Tier II cities and a lot of entrepreneurs emerging in the country.

    The company has also said that they were seeing an increase in the women buyers in India and added that more than 5% of the buyers were women in India.

    FAQ

    Which is the best used car website?

    According to Investopedia, AutoTrader is the best overall website for used car sales.

    What is the #1 selling car in the world?

    Toyota Corolla is one of the best selling car in the world.

    What is the fastest car in the whole world?

    Bugatti Chiron Super Sport is the fastest car in the world with a top speed of 304.7mph.

    Conclusion

    These are some of the reasons for the increase in sports car sales during 2020. It is said that most of the cars sold were second hand sports cars.

  • Is Global Semiconductor Shortage Impacting the Automotive Industry

    The global automotive and tech industries are on the edge as a wave of a supply shortage of semiconductors has hit them hard and how. Computer chips manage or probably run almost everything under the sun.

    From nuclear plants to the internet cables, stabilizing suspension systems, and regulating engine temperatures, we need them more than ever since technology surrounds us in a way that we are yet to comprehend.

    Computer chips are almost everywhere, in the cars we drive, in the smartphones we use, in devices like refrigerators, laptops, television sets, etc. We can’t imagine our lives without these. The shortage of these chips has turned down a few economies and soared for a few others around the globe.

    What are semiconductors
    Scarcity of Semiconductors around the Globe
    Reasons for the scarcity of semiconductors
    Higher demand for semiconductors
    Effects on the Indian market
    What happens next
    FAQ

    What are semiconductors

    Semiconductors or chips as we commonly know them are basic structures used for encrypting logic and memory functions in automobiles, phones, laptops, and gaming devices. Semiconductors are integrated or electronic circuits printed on conducting materials, the most common being silicon. They are the basic building blocks for making computers and running software.

    Over the decades, developers have managed to squeeze more circuits into tinier circuits making our computers and devices smaller and cheaper. The semiconductor fabrication is based on several transistors, the smallest part of the chip’s electronic component, per square millimeter. The factories or facilities that produce semiconductors are known as “Fabs”.

    The most advanced Fabs are known for semiconductors that measure 5 nanometers. That’s a millionth of a millimeter. Smaller the semiconductor, the higher the transistor count per square millimeter. The most highly functioning semiconductors are ones having a density of 100 transistors per square millimeter.

    Scarcity of Semiconductors around the Globe

    A chain reaction was set off when the pandemic hit us. As governments around the world imposed strict lockdowns, the demands for automobiles took a sharp U-turn. The automobile industry is one of the largest consumers of electronic chips as cars are turning into devices with power windows, machine control, and other features that use Artificial Intelligence. All these functions are integrated through semiconductors.

    Automakers like General Motors and Ford shut down several plants due to a decline in demand and production was brought to a halt. The sales fell drastically and companies cut short on their purchases of semiconductors.

    While the pandemic forced us to stay at home the need for indoor entertainment rose substantially. This resulted in an increased demand for tablets, smartphones, and laptops worldwide. The ripple effect called upon a higher demand for semiconductors in the tech industry. Tech companies began roping in more chips and some even stacked a few envisioning the shifts in the global demand.

    The market recovered at a better pace than anticipated and the demand for the auto making companies started to re-surface. Meanwhile, the tech industry gorged up 70% of the semiconductors being produced and left the automakers high and dry.

    Largest Semiconductor Companies by Revenue
    Largest Semiconductor Companies by Revenue

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    Reasons for the scarcity of semiconductors

    The USA is the largest producer of semiconductors in the world. Due to reforms implied by former President Donald Trump, the USA severed ties with Chinese companies and limited the chip sales export to China. China stockpiled chips and other countries followed suit.

    The American break up with Chinese companies turned the demand wave to TSMC, Taiwan Semiconductor Manufacturing Company, and other East Asian companies. TSMC and Samsung created a monopoly over the production of semiconductors which add up to 70% of the total production.

    America’s semiconductor production has plummeted to 12% from 37% since 1990. Consecutive changes in political leaders and bare minimum funds have discouraged the overall production.

    Other factors that catered to the scarcity were a huge fire in a Japanese chip factory in October 2020 and a cold snap that withered two semiconductor factories in Texas.

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    Higher demand for semiconductors

    The TSMC and other east Asian companies are working under extreme pressure to meet the demand worldwide. It might sound exuberant for the company, but it is far from what reality is.

    One might wonder why can’t more Fabs be built in order to sustain the demand. Fabs have peculiar prerequisites such as temperature-controlled environments, dust control, highly volatile pieces of equipment, and a minimum of five years of time to get it ready for production.

    Not to mention the sky-high cost requirement for setting up a Fab. No wonder the largest producer of chips America, is far from its competitors lacking the funds and support from its government.

    Reportedly, the demand has rocketed due to the requirement of semiconductors in the production of 5G smartphones. Every advancement in the electronic industry is largely based on the exploitation of semiconductors. As the world gets 5G ready, companies have massive supply demands for semiconductors.

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    Effects on the Indian market

    Indian automakers depend largely on imports of semiconductors. The worldwide demand, too few supplying agencies, and the waiting period have the Indian automakers worried as they import electronic requirements totaling to Rs 3000 crore every year.

    “The big concern for the auto industry and Mahindra, and in fact for the world, is the semiconductor shortage. (It is) something that we’re very perplexed with, and something where the end is not clearly known as to when this fall will go away,” Pawan Goenka, MD, and CEO of Mahindra & Mahindra, said during a press conference on the company’s Q3 results, on February 5.

    During Tata Motors’ press conference on its Q3 results on January 29, PB Balaji, CFO, Tata Motors, said that up until January, there has been no impact on the company due to the shortage of semiconductors. “Having said that, the risks are real and conversations are happening with all tier-1 and tier-2 suppliers and with the semiconductors industry as well to ensure that supplies continue.

    From a demand perspective, we are going very fast, and that’s also adding to the pressure that we have. This is something that is being managed on a live basis, and we will ensure that we do our best to minimize the impact.”

    “This is a challenge, and you need a hell of a lot of firefighting to get through,” Balaji added.

    What happens next

    The shortage will entail a while longer as the USA finds solutions for the production and sale of semiconductors. The world waits as new policies are put in place and the trade resumes.

    Chip companies might be benefitting from the new demand drive but this locks them up in a long-term deal which brings more pressure on production.

    The biggest winners are companies such as California-based Applied Materials and Lam search and Japan-based Tokyo Electron who make the highly complex and expensive manufacturing equipment required to produce semiconductors.

    FAQ

    Why is there a shortage of computer chips?

    The pandemic resulted in an increased demand for tablets, smartphones, and laptops worldwide. The ripple effect called upon a higher demand for semiconductors in the tech industry.

    Where are most semiconductors manufactured?

    Taiwan, South Korea and China are the countries where most semiconductors are manufactured.

    Why are semiconductors so important?

    Semiconductors are an essential component of electronic devices, , computing, healthcare, military systems, and transportation. In short Semiconductors are the Brains of Modern Electronics.

    Conclusion

    Companies around the world believe that the demand for chips will barely slow down. The share prices of TSMC and Samsung have grown over 190% and 61% respectively over the last few years, all thanks to the shortage of chips.

    The automakers falling short of chips, need to take a long hard look at their supply chain management and cost-effective pricing as many automobile companies saw a hike in their products due to this scenario.

    This might exhibit as a complex problem for bigger players in the global market but the end result is inflicted upon the consumer who is forced to pay a higher cost.