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Tag: Automobile 🚗

  • 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 –
    Aug 14, 2017 Rentongo.com Funding Round ₹15M

    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.

  • Why is Ford Motors closing down its Manufacturing Plants in India? [Case Study]

    The Indian automotive industry was left with even fewer brands as Ford Motors departed from the Indian markets on Friday. The motor giant had announced its decision to shut down all local manufacturing facilities on Thursday.

    The unpleasant news meant worse for car dealers and the company’s employees as this would affect them in the long run. The manufacturing plants will continue to operate until 2022 for the sole purpose of manufacturing export vehicles. This means their models for the Indian Market such as Figo, Aspire, Freestyle, EcoSport, and Endeavour will no longer be produced.

    For those who have kept track of the auto market, this shouldn’t be something too surprising. Ford is the most recent automotive brand to leave the Indian markets as we’ve seen with Harley Davidson, Chevrolet, and Fiat before. Did all these brands leave for the same reasons or did each of them have their own barriers that stopped them? We’ll take a deeper look into what drove Ford Motors to make this difficult decision.

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    The Future of Ford in India
    FAQ

    What went wrong with Ford?

    Ford’s been in the Indian market since 1995, although the company had begun its initial days back in 1926, it had come to halt due to severe import restrictions enacted at the time.

    Ford had resurfaced as Mahindra Ford India Limited (MFIL) a joint venture with Mahindra & Mahindra Limited. The company was then renamed to Ford India Private Limited. Further down the lane, we got to see some of the most iconic cars released by Ford such as the Ikon and Mondeo Mk3.

    There are a few reasons that have contributed to the company’s decision to stop dealing in the Indian market. The decision was bold and calculated to ensure the long-term profitability and sustainability of the company.

    Poor Sales Conditions

    Consumers have always loved Ford but the Indian auto industry as a whole is going downhill. This is rather something to do with how the market is performing and isn’t specific to the brand.

    People have a variety of options available in the market and this has reduced the company’s demand in the Indian market over the years. It’s rather clear from the numbers that the company wasn’t getting any better in terms of market share over the years.

    Ford's falling market shares
    Ford’s falling market shares

    Furthermore, the pandemic meant that fewer people are buying cars which just added to the company’s declining profits in the country.

    Immense Losses

    Ford has lost more than $2 billion over the last 10 years in India. Although models such as the EcoSport had sufficient sales, it wasn’t enough to be considered profitable for the company. Based on how the company operates in India, it’s worth considering the $0.8 billion spent in 2019 just for operations.

    Ford has tried to incorporate global standards for its manufacturing plants and operations alike. These may have been a little too expensive for the country and cost them more money than the potential profits.

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    Broken Joint Venture with Mahindra

    The tie-up between Ford Motors and Mahindra has allowed the company to produce new cars faster and with less investments in the past. The joint venture formed in October, 2019 meant Mahindra was owning a 51 percent controlling stake and Ford owning a 49 percent stake.


    The companies were to cooperate specifically for the co-development of 3 new SUVs and an electric vehicle. But this was not to be, as the partnership was called off in December, 2021. The reasons for this were apparently in the best interests of both companies although there is no official statement.

    Ford's joint venture with Mahindra & Mahindra in October 2019
    Ford’s joint venture with Mahindra & Mahindra in October 2019

    This also means that the upgraded version of Ford’s EcoSport which was to feature Mahindra’s 1.2-liter direct-injection turbo-petrol engine will not be released later this year. The declining sales meant that Ford was relying on the partnership as well as the new SUVs to keep them afloat. The formal end of the joint venture has left the company in a rather difficult position.

    The company was forced to make a choice that would have a deep impact on its future profits. Ford makes more money in other countries like the United States where it’s still able to get sales and keep pushing more expensive cars to consumers.

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    The Future of Ford in India

    To those of you who might be wondering if this is the end game for the company, it certainly isn’t. Ford Motors isn’t leaving India, rather it has put a stop to all manufacturing of local vehicles. The manufacturing plants in Chennai (Tamil Nadu) and Sanand (Gujarat) will be shut down in a phased manner. As of right now, these will still be used to manufacture export vehicles and parts.

    Ford has always provided great customer support. The company promises to keep providing existing owners with the same care and support regardless of their decision. As mentioned by Anurag Mehrotra, president of Ford India, car owners will still have access to spare parts and services through local dealers and customer support if it’s needed for any reason.

    As per the company, service will be provided to Ford owners all across India
    As per the company, service will be provided to Ford owners all across India

    As for resales, you might not get as much value as expected. This is the same for any motor brand that isn’t operational in the country anymore. While this is true, cars like the EcoSport are still a good buy if you aren’t too paranoid about the resale value and just want a great car at an affordable price. Service and parts will be provided by Ford as previously mentioned, meaning that getting a Ford car in 2021 can be a satisfying deal if you choose to.

    Ford still plans to serve the Indian market in the form of global imports. Popular global models such as the Ford Mustang will be available to consumers in the form of imports. This just goes to show how desperate the company is to stay operational in the country and how the decision was made purely to ensure the sustainable future of the motor manufacturer. Ford had tried reaching out to multiple manufacturers trying to ensure another joint venture but unfortunately, none have worked out for varying reasons.

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    Conclusion

    Ford’s recent move isn’t very pleasant considering the 4,000 employees who just lost their job. Regardless, the company has made its mind and taken a decision that will aid their benefits. Ford plans to bring more international cars to India and we’ll have to wait and see how things turn out.

    The Indian automotive industry and car enthusiasts alike are sure to miss the brand. But as things are in motion the best we can do is watch out for some great deals for used cars and hope that Ford Motors stays on Indian grounds in the future.

    FAQ

    Why is Ford shutting down its manufacturing plants?

    Ford is shutting down its operations in India as it has lost more than $2 billion over the last 10 years in India.

    Is Ford Leaving India?

    No, Ford will shut down its manufacturing plants but Ford owners will still have access to spare parts and services through local dealers.

    Will Ford support the existing customers?

    Yes, as mentioned by Anurag Mehrotra, president of Ford India, car owners will still have access to spare parts and services through local dealers and customer support if it’s needed for any reason.

  • What is Vehicle Scrappage Policy | How Startups will Benefit from Vehicle scrappage policy

    We all have had our own share of episodes of looking at rusty, old, vehicles covered in black, dense smoke bumbling past us, and we remarking, “how did it get past the usual security checks and roam about freely?”

    Well, this is how things used to be on the Indian roads where we could name a brand new Mercedes or a BMW and a polluting, dilapidated truck or van in the same breath.

    Out of the total air pollution that the Indians suffer from, a massive 27% of it is caused by vehicular emissions. Though a number of companies including Ola, Reliance, Tata, and others have started stressing about eco-friendly ways and have embraced Green Marketing to change the way how the industries and the vehicles run, we are yet to triumph over our greatest enemy, pollution.

    However, with the new vehicle scrappage policy that PM Narendra Modi announced on Friday, August 13, 2021, the Indian government aims to get rid of all the unfit and polluting vehicles as a stern measure to suppress vehicular air pollution.

    What is the Vehicle Scrappage Policy?
    Automobile Scrappage Policy Guidelines
    When will the scrappage policy start to come into effect?
    Main Objectives of the Vehicle Scrappage Policy
    What will the new Vehicle Scrappage Policy bring in?
    How will the Indian Vehicle Scrappage Policy Benefit the Startups of the Country?
    How will the National Automobile Scrappage Policy Benefit the Common Man?
    FAQ

    What is the Vehicle Scrappage Policy?

    Scrapping means “to throw away or get rid off” and the new scrappage policy is formed around the same idea.

    The vehicle scrappage policy, as announced by the Prime Minister of India at the Investor Summit in Gujarat, revolves around the idea of phasing out all the vehicles from the Indian roads, which are polluting and deemed as unfit.

    Here’s what Narendra Modi has remarked via his Twitter handle:


    Automobile Scrappage Policy Guidelines

    The scrappage policy for the automobiles of the country lists some guidelines following which the vehicles will be scrapped.

    On this, Union Minister Nitin Gadkari mentioned that according to the newly launched vehicle scrappage policy, the commercial and personal vehicles will be scrutinized, which are over 15 years and 20 years old, and will be scrapped if they fail to pass a government-imposed test. “They will be seized and destroyed,” added Gadkari.

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    When will the scrappage policy start to come into effect?

    The automobile scrappage policy will be coming into effect from April 2022, starting with the vehicles owned by the Indian government and its allied entities like the PSUs.

    Next, the government will consider mandatory testing for heavy commercial vehicles, which will start in April 2023. Finally, the testing will also include vehicles belonging to all other categories, which will come into effect from June 2024.

    Main Objectives of the Vehicle Scrappage Policy

    Among the main objectives of the vehicle scrappage policy, the reduction of air pollution is the primary goal that the government is looking forward to attaining.

    Reducing the Pollution caused by the Vehicles

    The main objective of the vehicle scrappage policy is to oust the polluting vehicles and lessen the overall vehicular pollution to the minimum. This will be a great help towards promoting a circular economy for the country.

    Creating Employment for the Indians

    The scrappage policy of vehicles would be a major project to undertake for the government of India in the upcoming years, the new scrappage policy would attract investments worth Rs 10000 crore.

    This will not only be a project for the government workers but will be a massive employment opportunity for the youngsters, poorly employed, and the unemployed section of the country.

    Encouraging Circular Economy in India

    A circular economy can be defined as a systemic approach to economic development, which will further benefit businesses, society, and the environment at large.

    The circular economy, as hinted by Modi, is regenerative and sharply contrasts the “take-make-waste” linear model, which further strives to rely less on the consumption of non-renewable resources.

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    What will the new Vehicle Scrappage Policy bring in?

    The vehicle scrappage policy strives to phase out the above-mentioned vehicles in an environment-friendly manner. Therefore, the whole initiative ensues the establishment of scrapping infrastructures like Automated Testing Stations and the setting up of Registered Vehicle Scrapping Facilities.

    How will the Indian Vehicle Scrappage Policy Benefit the Startups of the Country?

    According to Narendra Modi’s nationwide video conference, which also had Nitin Gadkari, Minister for Road Transport and Highways, the Prime Minister has also announced that the Indian government is also willing to collaborate with the budding companies or the startups, which is expected to be a significant boost to the pandemic-struck startup ecosystem.

    How will the National Automobile Scrappage Policy Benefit the Common Man?

    Along with benefitting the startups and the unemployed, the scrappage policy will also greatly benefit the common man. Here’s how it is a win-win situation for them:

    • For all the scrapped vehicles the vehicle owners will receive a certificate to testify their scrapped car. Furthermore, the government will ensure that they will not have to pay registration fees when they buy a new car.
    • They will also receive tax benefits, which would include a discount on road tax. This way it would act as an incentive for scrapping an old vehicle.
    • The old vehicles would be seized for the person, which might seem to be a loss but actually would be profitable for the particular person. If one possesses an old vehicle, he would have to spend money on the maintenance costs, repair cost, and fuel efficiency of the old car, which he/she would be spared from.
    • The owners of the old vehicles would be eligible for the best price for car scrappage for all the workable parts like the tires.
    • Lastly, they will be eligible to buy new and advanced vehicles, which will be safer for their upcoming journey.

    FAQ

    What will happen to the vintage vehicles?

    According to the scrappage policy of the Indian government, it will scrape all the old cars except the vintage automobiles. Gadkari mentioned that no such guidelines have been formed for vintage vehicles as of now, adding they will also regulate the vintage vehicles with the upcoming list of guidelines.

    What will the incentives that the scrappage policy will entail?

    The vehicle scrappage policy will offer incentives for the owners of the scrapped vehicles. Once their vehicles are scrapped, they will be issued relevant certificates for the same. The old vehicle owners can show these certificates whenever they decide to purchase a new vehicle and can get up to a 25% rebate on road tax.

    Will there be a GST Rebate for the scrapped vehicle owners?

    According to the policy, it has been decided by the government that whenever a scrapped vehicle owner will go for a new purchase, he/she will be allowed a 5% discount on the basis of the certificate issued for their scrapped vehicle. Gadkari has further mentioned that he has also requested the Finance Minister to grant a GST rebate for them, which is pending approval.

  • 10 Astounding facts about Lamborghini you might not know about

    In the world of automobiles, Lamborghini is one of the most exclusive manufacturers. As a result, most people can only dream of owning this luxury car brand. Known for its speed, power, and beauty this Italian automobile is fast, powerful, and stylish. Lamborghini is a symbol of high class, luxury, and wealth. Lamborghini is easily recognizable and turns heads when driven on roads.

    Below are some interesting facts about Lamborghini.

    Original Tractors That Became Lamborghinis
    When Lamborghini released its first model, it was devoid of a motor
    Bull theme of Lamborghini
    Lamborghini Taurus
    Dubai’s city police uses Lamborghinis
    Lamborghini Veneno is an exotic car
    To help the Italian police transport organs quickly, Lamborghini donated multiple cars
    Lamborghini Winter Academy
    8205 supercars were sold in 2019 by Lamborghini
    Films in which Lamborghinis are featured
    FAQ

    Original Tractors That Became Lamborghinis

    Lamborghini Tractor
    Lamborghini Tractor

    Tractors were Lamborghini’s first product, and they continue to make them today.
    The tractor company was found in 1947. At that time, there was a high demand for agricultural equipment and vehicles.

    “Carioca” tractor was built from parts of an old military vehicle. The first company, ‘Lamborghini Trattoria, was founded as a result of the success of this tractor.
    Lamborghini had designed its fuel atomizer for its tractors, which made them unique.

    For farmers, the cost of gasoline was a major concern. For this reason, Lamborghini designed its tractors.

    When Lamborghini released its first model, it was devoid of a motor

    Lamborghini 350 GTV
    Lamborghini 350 GTV

    The 350 GTV may have been the world’s first Lamborghini and the inspiration for the supercar genre, but when it was first unveiled at the Turin Auto Show, it was barely finished. Consequently, they placed several bricks in place of an engine and kept the hood closed throughout the entire period.

    Bull theme of Lamborghini

    In some cases, car manufacturers choose names based on a recurring pattern.
    For Lamborghini, bulls are a recurrent theme. He was a big fan of bullfighting in Spain. The sport was something he was passionate about and something he enjoyed watching in his spare time.

    “Bullfighting” attracted him because of its excitement, drama, and power. As an analogy, he compared this power to that of his vehicles. He chose to use the names of famous Spanish fighting bulls for bulls. The Lamborghini Miura was the first model to bear the name of a bull. After that many more bullfighting bull-themed cars were produced in the following years.

    Lamborghini Taurus

    Ferruccio Lamborghini was born on April 28, under the Taurus astrological star sign. He wanted to name the Lamborghini after his zodiac sign. As a result, there was almost a Lamborghini Taurus car in the market. However, it didn’t work out and a new name was chosen.

    Dubai’s city police uses Lamborghinis

    Lamborghini used by Dubai Police
    Lamborghini used by Dubai Police

    Dubai is one of the richest countries in the world and has an insane police car collection. A 691hp mid-mounted V12 engine in a police vehicle? That’s insane!
    Each of the Dubai Police vehicles is equipped with a Lamborghini Aventador, which has a top speed of almost 350 kmph and can go from 0 to 100 in just 3 seconds!

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    Lamborghini Veneno is an exotic car

    Lamborghini Veneno
    Lamborghini Veneno

    Veneno Roadster was introduced in 2014 and the cars are rare, expensive, and fast.
    A limited-production Lamborghini sports car, the Veneno is Lamborghini’s high-performance model.

    A total of four units were produced by the company, of which three were sold to selected customers and one was placed in the company’s museum for display.

    Lamborghini developed the Veneno, based on the Aventador, to commemorate its 50th anniversary. A four-million-dollar production car, it was one of the most expensive vehicles ever built.

    To help the Italian police transport organs quickly, Lamborghini donated multiple cars

    Lamborghini Organ Transport vehicle
    Lamborghini Organ Transport vehicle

    A refrigerated box was one of the special tools installed in these customized cars.
    Recent efforts by the Italian police to deliver a kidney for transplant surgery took advantage of the speed of the delivery system. To transport a kidney for surgery, Italian police drove a Lamborghini Huracan at 230 km/h. After 5 to 6 hours of travel, the police successfully delivered the vital organ.

    Lamborghini Winter Academy

    Lamborghini Winter Academy
    Lamborghini Winter Academy

    The Lamborghini Winter Academy may be of interest to Lamborghini fans or those who dream of driving fast cars. You will have the opportunity to race around a ski resort as you want to. A 5-700 horsepower Lamborghini can be driven in the Alps in winter on snow and ice. Alternatively, you could visit the Lamborghini Museum for a more sedate experience.

    Italian museum dedicated to the Lamborghini family is located in Funo di Argelato (Bologna). This museum is open Monday through Friday for a fee of 15 euros. Take a virtual tour of the museum without ever having to leave your house! Another way to experience Lamborghinis is to drive someone else’s vehicle for a day on the track.

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    8205 supercars were sold in 2019 by Lamborghini

    Lamborghini’s Huracan produced 14,022 units in 2019 after just five years of production, surpassing Gallardo’s record of 10,024 units in 10 years. As a result, the Huracan is Lamborghini’s most successful model ever in terms of sales. Lamborghini’s sales grew by 43 percent in 2019. 8205 cars were sold by the brand during the period. As of 2021, there are 7,221 total Lamborghinis around the world.

    Lamborghini Murcielago used in the movie Batman Begins
    Lamborghini Murcielago used in the movie Batman Begins

    Certain cars, such as the Lamborghini, possess a certain elegance that is hard to find anywhere else. Cars are used in thrilling car chases that add to the excitement of a film or to portray the status of a wealthy character that is trying to impress.
    When they are used as props, their sleek and impressive lines are sure to turn heads no matter where they go.

    Over the years, Lamborghinis have appeared in countless films. Lamborghini Diablo, used in “Dumb and Dumber“, is an example of this. “Big” featured the Lamborghini Countach, while “Transformers: Age of Extinction” starred the Lamborghini Aventador. “Batman Begins” also includes a Lamborghini Murcielago Roadster.

    FAQ

    Who is the founder of Lamborghini?

    Ferruccio Lamborghini is the founder of Lamborghini.

    Who is the present CEO of Lamborghini?

    Stephan Winkelmann is the current CEO of Lamborghini.

    When was Lamborghini founded?

    Lamborghini was founded by Ferruccio Lamborghini in 1963.

  • Reasons How Castrol India witnessed a huge profit in Q1 2021

    In the first quarterly results of the leading lubricant player Castrol India, there was a huge rise in their profit and almost doubling of their net income compared to the previous year. It was announced during the company board meeting which was held on 26 April 2021. Let’s look at the reasons why Castrol India saw a huge profit in the Q1 of 2021.

    About Castrol India
    Results of Castrol India
    Reasons for the Profit
    FAQ

    About Castrol India

    Castrol India is an automotive and industrial lubricant manufacturing company. The company owns around 20% of the market share in the overall Indian lubricant market. The company was founded in the year 1910 and has its headquarters located in Mumbai, India.

    The company comes under the oil and gas industry. Some of the products of the company include Oil, petroleum, petrochemical and lubricants. In India, Castrol India is the 2nd largest manufacturer of automotive and industrial lubricants.

    In various parts of the country, there has been a slowdown in the industrial activities due to the second wave of the pandemic. The company has said that there have been disruptions in the supply of base oil, availability of raw materials and certain other challenges such as logistics and rupee depreciation.

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    Results of Castrol India

    On 26 April 2021 during the board meeting of Castrol India, the company had announced that its net income had more than doubled itself compared to the previous year. The first quarter net income for the month of January to March was about INR 243.6 crores against the previous quarterly results which were about INR 125.2 crores.

    The revenue of the company had grown to INR 1,138.7 crores in the first quarter from the previous year of INR 688 crores. The revenue of the company for the previous year which ended in December 2020 was about INR 2,996.9 crores and the net income of the company was around INR 582.9 crores.

    For the first quarter of 2021, the company’s revenue from operations has seen a growth of around 66% which amounted to INR 1,138.7 crores and Castrol India had seen their profit grow to more than double to INR 243.6 crores compared to the previous quarters INR 125.2 crores.

    The quarterly results were said in a statement by the Managing Director of Castrol India, Sandeep Sangwan.

    Total Income of Castrol India Ltd.
    Total Income of Castrol India Ltd.

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    Reasons for the Profit

    One of the main reasons for the increase in profits and the net income of the company is due to its exponential growth of the revenue of Castrol India. The Managing Director Sandeep Sangwan said that, the good numbers that were seen in the quarterly results were mainly due to the focused investment activities, actions and the interventions made by the company during the second half of 2020.

    The above set of actions included the steps such as the building of the brand, corrective pricing, Increasing the marketing and spending on advertisements for building brands and the introduction of new products.

    The achievement of the huge profit has also been supported by the improvement according to the trends and demand especially in the sales of SUV and tractor during the first quarter of 2021.

    He said that the increase in cash from operations that is INR 269 crore in the first quarter of 2021 was mainly due to the implementation of a cost efficiency programme and judicious working capital management. The cash from operations of Castrol India is equivalent to 1.1 times of the net income.

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    FAQ

    Is Castrol an American company?

    Castrol is a U.K.-based producer of industrial and automotive lubricants for a global market.

    Who is Castrol oil owned by?

    Castrol is a wholly-owned subsidiary of BP PLC.

    What does BP stand for now?

    BP stands for British Petroleum Company Limited.

    Conclusion

    The covid-19 pandemic has made it hard for most of the industries and Castrol India has also conveyed that the second wave will have an adverse impact on their demand and supply. This may be seen in the further quarterly results announced by the company.

  • 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.

  • Why Tesla Chose Bangalore for its Manufacturing Unit

    In 2020 the Transport Minister, Nitin Gadkari had announced that the U.S based Electric Vehicle company Tesla would enter in India. He told that in the beginning they would try to sell some cars and depending on the response of the sales they would start their R&D center in India.

    After several years of delay, Tesla finally entered in India. On 12 January 2021, the company officially announced its arrival. They have registered in Bangalore, Karnataka by Tesla’s registrar of companies (Roc). The company’s registered name is Tesla India Motors and Energy private Limited. It is considered as a foreign subsidiary registered in India.

    The Chief Minister of Karnataka, B.S Yediyurappa tweeted happily and gave a warm welcome. But there are reasons as to why the company chose Bangalore to set up its R&D center.

    R&D of Automotive companies
    Talent Pool
    Policy Support
    FAQ

    R&D of Automotive companies

    Bangalore has a collection of technical and R&D centers. It accounts for more than a dozen automotive companies in the country. Bangalore has operational R&D units of automotive brands such as Mercedes-Benz, General Motors, Great Wall Motors, Mahindra & Mahindra, Continental, Bosch, Volvo, and Delphi.

    Bangalore has a lot of electric vehicle startups as well. The Karnataka Government states that there are more than 45 electric vehicle startups that are based in Bangalore. Startups like Ather Energy, Mahindra Electric, Ultraviolette Automotive are mostly concentrated on the two-wheeler segment.

    Ola Electric which announced recently that it is going to enter into the automotive sector is also based in Bangalore. Since there are a lot of technical and R&D units of the biggest companies and electric vehicle startups, Tesla would have chosen Bengaluru as its manufacturing unit.

    Number of Tesla vehicles delivered worldwide
    Number of Tesla vehicles delivered worldwide

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    Talent Pool

    Bangalore is known as the IT Hub, the district has headquarters of companies like Infosys, Wipro, Accenture, TCS, and many more. Bengaluru has around 3,00,000 IT students studying in various colleges across the country.

    Tesla will be able to benefit from the huge talented IT and engineering graduates in Bangalore. Automotive companies have used the Indian R&D centers to work on projects not only for India but even projects for other countries including China, Europe, and the U.S.

    Software Engineers are working with Mercedes Benz in projects such as developing driverless cars. Great Wall Motors, the Chinese company has set up its R&D center in Bangalore, to work on their Electric Vehicles.

    Automotive brands have already set up and are using the talent of Karnataka’s Capital. They have seen the outcome over the years. Tesla would also have foreseen the IT and the engineering talent available in Bangalore, being one of the reasons to set up its unit in Karnataka’s capital.

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    Policy Support

    Other than a home for the major automotive companies, the state has certain policies. The policies act as one of the major reasons for Tesla to set up its unit in Bangalore.

    Karnataka is concentrating on setting up an Electric Vehicle Hub in the State. It has allocated around $3 Billion (around 219 crores) for setting up an electric vehicle hub, lithium-ion cell, and battery manufacturing unit which includes Electric vehicle manufacturing bases in Hubbali and Dharwad. It is 400 km from Bangalore.

    Karnataka had approved a new policy in 2017 which is the “Electric Vehicle and Energy Storage Policy”. The state aims to create around 55,000 employment and attract investment of Rs 31,000 crore. To reduce dependency on fossil fuels and reduce its carbon footprint, the union government has unveiled its vision to make the country an all-electric vehicle market by the year 2031.

    The state also provides a lot of incentives for setting up Electric Vehicle plants. It provides incentives such as reimbursement of land conversion fees, an investment promotion subsidy, 100 percent exemption on stamp duty, and many more. This would be the greatest advantage for Tesla. It must have been the easiest way to enter the country.

    FAQ

    Who is Tesla’s biggest competitor?

    The Chinese EV maker Nio is one of Tesla’s biggest competitor.

    Who sells the most electric cars in the world?

    Tesla sells the most electric cars in the world.

    What is the Valuation of Tesla?

    The US Electric car maker Tesla is worth about $700 billion as of 2020.

    Tesla Model 3 is the world’s most popular electric car.

    Conclusion

    In 2018, Elon Musk the CEO of the company had said that certain government regulations are making it hard for them to enter the country. He also mentioned that the company required 30% of some raw material to be available locally for manufacturing and India lacked these. But, now different automobile industries are setting up their plants and companies in India, also Apple have started their manufacturing unit in India.

    Elon Musk has a huge number of fans in India and he is moreover known as the real Tony Stark. This shows that the company has huge potential in the country.

  • Top Automobile Startups In India

    India became the fourth largest auto market in 2019 displacing Germany with about 3.99 million units sold in the passenger and commercial vehicles categories. Automobile export reached 4.77 million vehicles in FY20, growing at a CAGR of 6.94% during FY16-FY20. There are several initiatives by the Government of India and major automobile companies in the Indian market is expected to make India a leader in the two-wheeler and four-wheeler market in the world. There are many automobile startups in India. Indian automobile industry mainly focused on servicing, dealership, financing, and maintenance of vehicles. The Indian automobile industry includes two-wheelers, trucks, cars, buses, and three-wheelers which play a crucial role in the growth of the Indian economy. India has emerged as Asia’s fourth-largest exporter of automobiles, behind Japan, South Korea, and Thailand.

    • India is expected to be the world’s third-largest automotive market in terms of volume by 2026.
    • The EV industry will create five crore direct and indirect jobs by 2030.
    • In April-March 2020, overall automobile exports registered a growth of 2.95%.
    • Passenger vehicle exports marginally increased by 0.17% and two-wheeler exports registered a growth of 7.30% in April-March 2020 over the same period last year.
    • The sector attracted $24.5 billion FDI during April 2000 – June 2020; accounting for 5.1% of the total FDI inflows.
    Automobile Production and Sales Trends
    Automobile Production and Sales Trends

    Tata Motors Ltd

    Tata Motors Limited, a USD 35 billion organization, is a leading global automobile manufacturer. The company produces passenger cars, including popular models such as Jaguar, Land Rover, Safari, and Sumo, and commercial vehicles, such as buses, trucks, tractor-trailers, light commercial vehicles, and defense and construction equipment. Tata Motors sells its vehicles through an extensive dealer network in India and export vehicles to countries in Africa, Asia, Europe, the Middle East ad South America. In India, Tata Motors is a market leader in commercial vehicles and among the top passenger vehicle manufacturers with 9 million vehicles. Tata Motors strives to pioneer new products that increase the imagination of GenNext customers. The product range includes high-performing engine oils, gear oils and rear axle oil for commercial vehicles range manufactured by Tata Motors for both the on-road and off-road applications segment.
    Revenue INR 3.02 lakh Crores
    Market Cap Rs 199,130 Crores
    Market Share Passenger Vehicles (6.3%)
    Commercial Vehicle (45.1%)
    Promoter Holdings 38.37 %

    Maruti Suzuki India Ltd

    Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India’s largest passenger car company, accounting for over 50 percent of the domestic car market. The company is engaged in the business of manufacturing, purchase, and sale of motor vehicles and spare parts (automobiles). The company was formed as a government company, with Suzuki as a minor partner to make a people’s car for middle-class India. The company’s product range has widened, ownership has changed hands and the customer has evolved. According to Automotive Intelligence, Suzuki is the eleventh largest vehicle manufacturing company in the world and fourth in Japan in terms of worldwide sales. Maruti’s profit increase to a 98% rise in its economic second-quarter net profits and they are planning to invest $32.3 million.
    Revenue Rs. 88,630.1 Crores
    Market Cap Rs 199,130 Crores
    Market Share Passenger Vehicles( 53 %)
    Promoter Holdings 56.21 %

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    Mahindra & Mahindra Ltd

    Mahindra & Mahindra Limited (M&ML) founded in 1945 at Ludhiana, is an Indian multinational automobile manufacturing company. They are market leaders with the vision to drive the industry trends in the direction of technological creativity, social duty, and constant enhancement of customer contentment. The Company’s automobile products include light, medium, and heavy commercial vehicles, jeep-type vehicles, and passenger cars. The company launches a new visual identity reflecting modernity and dynamism.
    Revenue Rs. 1.06 lakh Crores
    Market Cap Rs 70,725 Crores
    Market Share Passenger Vehicles( 7.4 %)
    CV(25.3%)
    Tractor (40.2%)
    UV (25%)
    LCV(44.5%)
    Promoter Holdings 18.90 %

    Hero MotoCorp Ltd

    Hero MotoCorp Limited is the world’s largest manufacturer of two-wheelers. The company has four manufacturing facilities namely Dharuhera and Gurgaon in Haryana, Haridwar in Uttarakhand and Neemrana in Rajasthan. The joint venture between India’s Hero Group and Honda Motor Company Japan has not only created the world’s single largest two-wheeler company but also one of the most successful joint ventures worldwide. As per the terms of the Agreement, Honda had agreed to transfer its entire shareholding of 26% in the company to the Indian Promoter Group.
    Revenue Rs. 29,614 Crores
    Market Cap Rs 57,180 Crores
    Market Share 36.0%
    Promoter Holdings 34.63 %

    Bajaj Auto Ltd

    Bajaj Auto Ltd is one of the leading two & three-wheeler manufacturers in India. The company is well known for its R&D, product development, process engineering, and low-cost manufacturing skills. The company has two subsidiaries name Bajaj Auto International Holdings BV and PT Bajaj Indonesia. The holding company operated in the auto, wind-energy, insurance, and others. The company is the flagship firm of Bajaj Group, which also makes home appliances, lighting, and steel, as well as provides finance, insurance, and travel services.
    Revenue Rs. 29,919 Crores
    Market Cap Rs 84,763 Crores
    Market Share 18.7%
    Promoter Holdings 53.52 %

    Ashok Leyland Ltd

    The company was set up in collaboration with Austin Motor Company England for the assembly of Austin cars. Ashok Leyland, the flagship of the Hinduja group, is the 2nd largest manufacturer of commercial vehicles in India, the 3rd largest manufacturer of buses in the world, and the 10th largest manufacturers of trucks. Ashok Leyland has recently been ranked as the 34th best brand in India. Ashok Leyland has been a major presence in India’s commercial vehicle industry with a tradition of technological leadership, achieved through tie-ups with international technology leaders.

    People, Planet, and Profit for all stakeholders especially customers are at the core of Ashok Leyland which resonates with Philosophy of ‘AAPKI JEET, HAMARI JEET’.
    Revenue Rs. 21,332 Crores
    Market Cap Rs 20,314 Crores
    Market Share M&HCV Bus segment (41.2%)
    Promoter Holdings 51.13 %

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    TVS Motor Company Ltd

    TVS Motor Company Ltd is located in Chennai, Tamil Nadu, India, and is part of the Motorcycle Manufacturing Industry. It is one of the leading two-wheelers and three-wheeler exporters from India distributing to over 60 countries. TVS brand provides highly profitable, socially responsible, and leading manufacturer of high value for money, environmentally friendly, lifetime personal transportation products. The motorcycle marks TVS Motor Company’s entry into the super-premium segment both in domestic and international markets.
    Revenue Rs. 150 Crores
    Market Cap Rs 20,178Crores
    Promoter Holdings 57.40 %

    Market Share (FY 2017-18)
    Market Share (FY 2017-18)

    Eicher Motors Ltd

    Eicher Motors Limited is an India-based company, which operates in the automotive segment. The Company owns Royal Enfield, which offers middleweight motorcycles. Eicher Motors Limited is a 50-50 joint venture with Sweden’s AB Volvo and VE Commercial Vehicles Limited (VECV) designs manufactures and markets reliable fuel-efficient trucks and buses is one of India’s leading manufacturers. In October 2017 Royal Enfield forayed into Vietnam the fourth biggest motorcycle market in the world and opened its first store in Ho Chi Minh City.
    Revenue Rs. 9,696.83 Crores
    Market Cap Rs 70,788.55 Crores

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    Force Motors Ltd

    Force Motors Ltd is a fully, vertically integrated automobile company, with expertise in the design, development, and manufacture of the full spectrum of automotive components, aggregates, and vehicles. The Company is engaged in manufacturing light commercial vehicles and utility vehicles, and engines. Force Motors started production of the Hanseat three-wheelers in collaboration with Vidal & Sohn Tempo Werke, Germany, and went on to establish a strong presence in the light commercial vehicles (LCV) field with the Matador.
    Turnover Rs. 3,487 Crores
    Market Cap Rs 1,155 Crores
    ROE 7.67 %
    Sales Growth (3Yrs) 6.48 %

    SML ISUZU Ltd

    SML Isuzu Ltd. (SMLI) is a trusted and reliable commercial vehicle manufacturer since 1985. It has over 33 Years of experience in producing Light & Medium commercial vehicles to meet Indian customer needs. SMIL is the first company to manufacture and supply state of the artfully built Buses, Ambulances, and customized vehicles. It is the last in the list of top Automobile Companies in India.
    Turnover Rs. 1,312 Crores
    Market Cap Rs 555.36 Crores
    Dividend Yield 0.78 %
    ROE 4.79 %
    Sales Growth (3Yrs) 6.51 %

  • Volkswagen – Investing Strongly In Its Future

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Volkswagen.

    Volkswagen Group is a German automobile manufacturer whose main brand is Volkswagen. With headquarters in Wolfsburg, Germany, it is the world’s biggest luxury vehicle manufacturer.

    Volkswagen creates, produces, and distributes passenger and commercial cars, motorbikes, engines, and turbomachinery, as well as financial, leasing, and fleet management services. It overtook Toyota as the world’s largest carmaker in 2016, and held that position for the next three years, selling 10.97 million vehicles.

    Volkswagen – Company Highlights

    Company Name Volkswagen
    Headquarters Wolfsburg, Germany
    Industry Automotive
    Founder German Labour Front
    Founded 1937
    CEO Herbert Diess
    Parent Volkswagen AG
    Website vw.com

    Volkswagen – About and How it works?
    Volkswagen – Founder and History
    Volkswagen – Logo and its meaning
    Volkswagen – Mission
    Volkswagen – Business Model
    Volkswagen – Revenue and Growth
    Volkswagen – Investments
    Volkswagen – Acquisitions
    Volkswagen – Competitors
    Volkswagen – Challenges Faced
    Volkswagen – Future Plans

    Volkswagen – About and How it works?

    Volkswagen is a premium automobile manufacturer and retailer located in Germany. Volkswagen is derived from the German word Volk, which means “people,” and so Volkswagen means “people’s automobile” or “people’s car.” It is divided into four sections:

    • Passenger Automobiles – includes vehicle and engine research, manufacturing and marketing of passenger cars, as well as the related authentic parts industry.
    • Commercial vehicles include light commercial vehicles, trucks, and buses, as well as the genuine parts sector and related services.
    • Large-bore diesel engines, turbo compressors, industrial turbines, and chemical reactor systems, as well as gear units, propulsion components, and testing equipment, are all part of Power Engineering.
    • Dealer and customer finance, leasing, banking and insurance operations, fleet management, and mobility services are all part of Financial Services.

    Among the company’s brands are Volkswagen, Audi, SEAT, SKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania, and MAN.

    Volkswagen – Founder and History

    The German government, led by Adolf Hitler of the National Socialist (Nazi) Party at the time, forms the Gesellschaft Zur Vorbereitung des Deutschen Volkswagens mbH, a new state-owned automobile business, on May 28, 1937. It was renamed Volkswagenwerk, or “The People’s Car Company,” later that year.

    Volkswagen was based in Wolfsburg, Germany, and was originally owned by the German Labour Front, a Nazi group. Aside from his ambitious plan to create a network of autobahns and limited-access motorways across Germany, Hitler’s favorite project was the creation and mass manufacturing of a low-cost, high-speed car that could be purchased for less than 1,000 Reich marks (about $140 at the time).

    Hitler enlisted the help of Austrian automotive expert Ferdinand Porsche to develop this “people’s vehicle.” “This automobile has been developed for the wide masses,” the Fuhrer said during a Nazi rally in 1938. Its objective is to satisfy their mobility needs while also making them happy.” However, shortly after the KdF (Kraft-Durch-Freude)-Wagen (“Strength-Through-Joy”) was presented at the Berlin Motor Show in 1939, World War II broke out, and Volkswagen halted production. With the plant in ruins after the war, the Allies chose to concentrate their efforts on rebuilding the German automobile industry on Volkswagen.

    Volkswagen – Logo and its meaning

    The Volkswagen logo is made up of the company’s initials, with the “V” positioned above the “W,” and both letters interacting beautifully.

    The Volkswagen Logo
    The Volkswagen Logo

    The blue color of the Volkswagen emblem stands for quality, reliability, and class, while the white hue stands for nobility, purity, and charm.

    Volkswagen – Mission

    There is no formal mission statement for Volkswagen. Volkswagen’s objective, according to a spokesman, is to “provide beautiful, safe, and ecologically sound vehicles that can compete in an increasingly competitive market and establish world standards in their respective classes.” The corporate aim encapsulates all the organization undertakes to achieve its vision. Its focus is on maintaining a level of quality that outperforms all other rivals in every way.

    Volkswagen – Business Model

    Innovation-driven VW introduces new models on a regular basis. It adjusts to fit local needs and focuses on the unique characteristics of each country (esp. in growth markets). VW seeks to decrease costs through efficient manufacturing methods and economies of scale while stressing the requirement for quality. “Offer beautiful, safe, and ecologically sound cars that can compete in an increasingly competitive market and establish world standards,” says the organization.

    VW secures control and exploits its scale by a degree of centralization, but its worldwide presence allows it to accommodate for local specifics: R&D (including worldwide trend reconnaissance and technology scouting) is headquartered in Germany, with subsidiary research hubs in the United States, Japan, and China. Similarly, Group procurement buys manufacturing supplies, services, and Capex in bulk to maximize negotiating power, but it does so from 39 sites in 23 countries.

    VW develops sustainable, long-term relationships with a range of suppliers and requires a high level of quality and dedication to ensure steady and efficient flows of high-quality and innovative sourced components.

    The Group’s multi-brand approach encourages internal competition, encourages switchers to try new brands, and appeals to a wide range of individuals. Because of its strict hierarchical brand design with sub-brands, internal cannibalism of sales is reduced. Passenger (VW), premium (Audi), luxury (Porsche), and commercial business holding firms are the four product categories in the corporation. The brands are translated into the corporate hierarchy and are used to arrange the business in order to represent customer preferences within the company.

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    Volkswagen – Revenue and Growth

    Volkswagen AG reported $60.736 billion in revenue for the quarter ended March 31, 2020, down 10.89 percent year over year.

    Year Annual Revenue Percentage change
    2019 $282.948B +1.58%
    2018 $278.538B +6.83%
    2017 $260.74B +8.45%

    Volkswagen – Investments

    Date Organization Name Round Amount
    Jun 9, 2021 Northvolt Venture Round $2.8B
    Apr 28, 2021 IRP Systems Series C $31M
    Mar 15, 2021 Northvolt Corporate Round –
    Nov 30, 2020 TuSimple Series E $350M
    Sep 29, 2020 Northvolt Venture Round $600M
    Jun 16, 2020 Audi AG Secondary Market $267M
    Jun 16, 2020 QuantumScape Corporate Round $200M
    Nov 14, 2019 credi2 Series A –
    Aug 30, 2019 SeeReal Technologies Corporate Round –
    Jul 12, 2019 Argo AI Corporate Round $2.6B
    Jun 12, 2019 Northvolt Corporate Round $600M
    May 7, 2019 Gett Series E $120M
    Nov 12, 2018 ONO Grant $50K
    Jun 21, 2018 QuantumScape Corporate Round $100M
    Jun 7, 2018 Gett Series E $80M

    Volkswagen – Acquisitions

    Acquiree Name Date Amount About Acquiree
    WirelessCar Dec 19, 2018 $122M WirelessCar is a provider of manufacturers of cars and commercial vehicles with customized telematics services to end-customers
    Porsche Jul 5, 2012 – Porsche is a German automobile manufacturer
    Scania Mar 3, 2008 – Scania is a manufacturer of heavy trucks and buses as well as industrial and marine engines

    Volkswagen – Competitors

    The competitors of Volkswagen Automobiles are:

    • Ford
    • General Motors
    • Toyota
    • Suzuki
    • Hyundai
    • Nissan
    • Honda
    • FCA (Fiat Chrysler Automobiles)
    • BMW
    • Mercedes

    Volkswagen – Challenges Faced

    Economic volatility and greater competitiveness, as well as the costs of the current diesel crisis and new, time-consuming exhaust testing in the European Union, are among the issues.

    According to chief financial officer Frank Witter, the cost of executing the Worldwide Harmonized Light-Duty Test Procedure (WLTP) testing surpassed €1 billion (S$1.6 billion). Production increased by 13.5 percent in the second quarter, more than twice the growth rate of deliveries, as the automaker prepared for the regulation change. Volkswagen warned earlier this year that inventories might pile up ahead of the WLTP’s implementation on September 1st.

    VW is grappling with political issues as well as internal transformation in the aftermath of the three-year-old diesel scandal, which continues to haunt the industrial juggernaut.

    The business incurred penalties of €1.64 billion, mostly due to a punishment imposed by German authorities, bringing the total losses to almost €27.4 billion. Mr. Rupert Stadler, the now-suspended chief of Audi’s premium division, was arrested by Munich prosecutors in June and is still detained.

    As per a spokesperson, a subsequent partnership with Ford in light commercial vehicles would allow the companies to pool development resources for electrification, lowering one-time costs in areas such as battery-powered and self-driving cars, both of which are gaining pace at the same time.

    “We cannot rest on our laurels because great challenges lie ahead of us in the coming quarters,” Mr Diess (chairman of the board of management of Volkswagen Group) said. “Growing protectionism also poses major challenges for the globally integrated automotive industry.”

    Volkswagen – Future Plans

    • Between 2020 and 2024, planned investments and development expenses in future sectors such as hybridization, electric transportation, and digitization will reach over EUR 60 billion.
    • In Planning Round 68, the share of anticipated spend on future themes grew to over 40%, up from around 30% in the previous Planning Round.

    The Volkswagen Group continues to make significant investments in its future. Planning Round 68 resulted in the creation of the investment plan for 2020 to 2024. The Group plans to invest over EUR 60 billion in hybridization, electric mobility, and digitization over the next five years. This amounted to around 40% of the company’s property, plant, and equipment investments, as well as all research and development costs, throughout the planning period. It’s a ten-percentage-point rise over the previous Planning Round for the Group. The Group expects to invest about EUR 33 billion in electric vehicles alone.

    “We are resolutely pressing ahead with the transformation of the Volkswagen Group and focusing our investments on the future of mobility. This is part of our systematic and consequent implementation of the Group’s strategy,” said Hans Dieter Pötsch, Chairman of the Supervisory Board of the Volkswagen Group.

  • Indian Automobile Industry Analysis

    The Indian automobile industry is the world’s fourth-biggest, auto mobile industry after the USA. It is presently the world’s fourth-biggest producer of vehicles and 7th biggest producer of industrial automobiles .The size of the Indian automobile industry includes aspect manufacturing which is anticipated to attain Rs16.16-18.18 trillion ($ 251.4-282.eight billion) through 2026.

    Two-wheelers dominate the enterprise and made up 80% of the home car income in FY19.Overall, Domestic car income multiplied at 6.71% CAGR among FY13-18 with 26.27 million automobiles was bought in FY19.Indian car enterprise has obtained Foreign Direct Investment (FDI) worth US$ 23.51 billion among April 2000 and September 2019.

    Indian automobile industry growth recorded a boom in home income at 17.55%, accompanied by three-wheelers at 10.27% .The passenger automobile income in India crossed  3.37 million gadgets in FY19 and is similarly anticipated to boom to 10 million gadgets through FY20.Passenger automobile exports are anticipated to touch approximately 6,90,000 gadgets in 2019-20.

    Indian Automobile Market by Vehicle type
    Indian Automobile Market by Vehicle type

    COVID 19 automobile industry impact

    Indian Automotive Industry, unfortunately, is going through a hard time. Due to COVID-19, New Emission norms, Weak client, and monetary sentiments, Coronavirus will extrude the future of the automobile organization and is forecasted to offer a protracted-lasting impact on a massive scale.

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    The dreary fact is that March and April remained the most tough months of 2020 for the auto sector, for the 40 days lockdown produced nil earnings and zero manufacturing. However, OEMs gave monetary beneficial resource and helped dealers to route out of these tough times.

    Indian automobile industry slowdown

    Demand for emblem new cars declined sharply in 2019, forcing automakers to reduce manufacturing throughout the year. Sales had been anticipated to revive in the festive season from October 2019 however they did not do so. In fact, there has been an encouraging spike in income in Q3 – inspired through promotional offers, competitive discounts, new version launches, and the growing availability of fashions supplying Bharat Stage-VI (BS-VI) emission standard.

    Government Objectives for the Indian automobile industry

    Government of India has shortlisted 11 towns for the advent of electrical automobiles (EVs). The Government plans to start with a delivery structure FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme.

    The first section of the scheme had been prolonged to March 2019.The Government of India accredited the FAME-II scheme with a financial requirement of Rs10,000 crore which sums up to ($ 1.39 billion) for FY20-22.Under Union Budget 2019-20, the authorities introduced to offer extra profits tax deduction of Rs1.five lakh ($ 2146) on the loans taken to buy EVs.

    Under FAME II, Government has sanctioned 5,595 e-buses in 64 towns in 26 states for inter-metropolis and intra-metropolis operations. Under the scheme, 2,636 charging stations in 62 towns throughout 24 States/UTs have been sanctioned.

    Indian Passenger Vehicle Market Share
    Indian Passenger Vehicle Market Share

    Moderating Economic Growth

    The worldwide monetary slowdown has impacted the Indian automobile sector (and Europe and China).India’s GDP increase in Q3 2019 fell to 4.5% from 5% in Q2, and from 7.1% a 12 months ago, on account of decreased customer spending and reduced personal investment. A depressed rural monetary system with the decrease annual rainfall maintains to have a vast effect on two-wheeler demand.

    Growing unemployment and a moderating monetary system led humans to delay car buying for decisions. According to the Centre for Monitoring Indian Economy (CMIE), the unemployment charge became into at 8.5% in October 2019, the very best while you recall that August 2016.The International Monetary Fund has reduced its increased forecast for the Indian monetary system from 7% to 6.1% in 2020.

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    Growing Competition

    In spite of the plain slow down, MG Motors (an element of SAIC Group), BYD, and different main Chinese OEMs alongside with Changan Automobile and Great Wall Motors have critical funding plans for India and are showcasing their proposed fashions at this year’s Delhi Auto show.

    Bucking the trend MG Motors and Korean automaker Kia Motors have had sturdy launches in their latest SUV fashions, receiving great orders months in advance.With the multiplied opposition in passenger vehicles in 2020, Counterpoint estimates those new automakers will nibble away at Maruti Suzuki’s and Tata Motors’ marketplace shares.

    Growing Popularity of Shared Mobility

    Shared mobility companies keep to dent the name for passenger cars in city areas, with human beings an increasing number of more who prefer shared-mobility offerings for his or her commute.

    Based on variety one studies performed withinside the America of America in 2019, Counterpoint Research estimates out of 3 common customers of shared mobility offerings recollect ride-hailing more economical than proudly owning a car.Leading gamers Ola and Uber have plans to increase offerings similarly into tier-2 and tier-three towns withinside the following couple of years.

    Cautious Lending through NBFCs

    Non-banking monetary companies (NBFCs) finance maximum automobile purchases and are used mainly in rural India. Dealers depend on NBFCs to fund their wholesale shopping of cars from OEMs. The problems surrounding India’s NBFCs introduced careful lending that has adversely affected car income in 2019 and suggests no signs and symptoms of improvement.

    Sellers have approached India’s Finance Industry Development Council, searching for authorities intervention to enhance the monetary health of main NBFCs. Overall for 2020, Counterpoint Research’s car income forecast for India stays careful, with numerous factors – mainly tight credit score conditions, the moderating economic system, and the transition to BS-VI emissions standards – growing uncertainty, boundaries, and delays.