Tag: Two-wheeler

Harsha Upadhyaya is bullish on these sectors

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Kotak Mahindra AMC’s President and CIO-Equity Harsha Upadhyaya, who manages funds worth ₹3,203 crore is overweight on domestic cyclicals such as industrials, cement, automobiles, among others.

He is also bullish on two-wheelers, citing sustained volume growth and improving margin profiles as key drivers.

“We continue to be positive on two-wheelers within the automobile segment. After a long time, we have seen volume growth sustaining and also the impact of two-wheeler electric vehicle (EV) seems to be not as much as what the market was fearing earlier,” he added.

Upadhyaya has some position in banking and financials but is still underweight on the sector.

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According to him, valuations in the market continue to be the primary risk for the market at this point in time.

Along with that, the Middle-Eastern conflict also seems to be escalating. “We need to watch that space and also how it impacts the crude oil price. That is going to be very important,” he said.

Current valuations don’t leave any room for disappointment, so the earnings delivery is crucial for the markets to sustain these levels or go higher from these levels.

What happens in the Middle East is going to be crucial in the very short term, he said.

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He has also booked some profits in the IT sector when the sector witnessed an upmove in recent times.

“Overall it doesn’t seem that immediately there is going to be anything that is going to excite the market from the IT sector,” he said.

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Pharmaceuticals, he believes, is one space where one can have a neutral position at this point in time.

This is because the domestic as well as export growth continues to be reasonable and there are no large regulatory headwinds at this point in time.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Two-wheeler volumes expected to grow by 4-7% this fiscal: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Two-wheeler retail sales are expected to increase by just 4-7% in volume terms in the domestic market this fiscal year despite logging strong growth in the festive period, according to a report.

The festive season this year saw robust growth in two-wheeler retail aided by the upcoming wedding season and some recovery in rural demand, which supported sales growth in the entry-level (110 cc) segment, the report by rating firm Icra stated.

The dealer inventory remained at near normal levels, with the OEMs (original equipment manufacturers) wary of a build-up in inventory at the dealerships, it added.

Also Read: Indian auto retailers sell over 90,300 vehicles each day in the festive season — SUVs most in demand

“The industry is expected to record a moderate growth in volumes in FY 2024 (4-7%) even as export volumes remain impacted by weak demand,” Icra said.

Elaborating on the passenger vehicles, Icra stated that the segment is expected to record a moderate growth in volumes in FY2024
(6-9%) and reach an all-time high during the period. Commercial vehicle volume growth is expected to be in the range of 2-4% this fiscal as compared with the last financial year, it stated.

“Aided by favourable demand drivers, the industry volumes are expected to reach near the pre-pandemic peak,” Icra said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Kerala man fined Rs 86,500 for 146 helmet violations over five months

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A 25-year-old man from Cherukunnu, Kannur, Kerala, has been fined Rs 86,500 for repeatedly riding his motorbike without a helmet. The fine, equivalent to the cost of a new two-wheeler, was imposed for 146 offences over the past five months.

The man was regularly caught by a road camera installed by the Motor Vehicle Department at Pazhayangadi. An additional 27 cases were registered against passengers who also failed to wear helmets. Despite receiving notices and messages for each offence, the man ignored them.

Recently, a team led by Kannur enforcement RTO AC Sheeba confronted the man and demanded payment of the fine. The man requested time to pay, and his motorbike will be held at the RTO office until payment is made. Furthermore, his license has been suspended for a year, delaying his return to the road even after payment.

The enforcement action comes as AI-assisted cameras were introduced on June 5 to detect traffic violations across the state. These cameras identify various offences, including failure to wear helmets, triple riding on two-wheelers, not using seatbelts, using mobile phones while driving, jumping red signals, overspeeding, and dangerous and illegal parking.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

A $27 billion fund manager sees better profit margins on Indian automobiles

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Several parts of the Indian auto industry are on the cusp of seeing growth and margin expansion, according to Vetri Subramaniam, Chief Investment Officer at UTI AMC. 

In an interview with CNBC-TV18, Vetri said that car sales have not only recovered to their 2019 levels but are also on track to exceed them this year. 

According to Morningstar India, UTI has 14.4% of the large-cap fund assets in consumer cyclical sectors (which is made up of the auto sector, among others) compared to 10.66% for the category, with the highest allocation to Maruti Suzuki.

Vetri’s comments come amid a pick-up in sales in the festive season, which was set against the crucial backdrop of falling passenger car sales in recent times. 

Passenger vehicle sales in September 2023 grew 19% year-on-year to 3.32 lakh while two-wheeler sales jumped 21.7% to 13.12 lakh. 

However, the growth in passenger vehicles has been led by strong growth in premium cars. Experts believe this could be due to the easier availability of credit and rising aspiration. 

Recently, Maruti Suzuki said it sees industry-wide sales reaching one million cars by Bhai Dooj, the culmination of Diwali, signalling an 18% increase in year-on-year growth for the festive period starting with Onam in August. 

During Navratri, the industry witnessed a surge in bookings, buoyed by the introduction of compelling new models, particularly SUVs and the availability of attractive consumer offers.  

On two-wheelers, UTI’s Vetri, who manages funds worth over $27 billion, said sales are currently 20% below their previous high, but the festive season is ushering in a wave of optimism. 

Going forward, festivities along with harvest season (especially paddy) are expected to boost two-wheeler sales, with optimism fuelled by new schemes and a push towards electrification. 

Bajaj Auto’s Executive Director, Rakesh Sharma, echoed Vetri’s positive outlook, noting an increase in customer visits to dealerships during the festive season. Sharma anticipates a 15-18% growth in the two-wheeler sector throughout the festive period  

The Federation of Automobile Dealers Associations (FADA) also believes the near-term outlook remains robust, especially for the premium segment. 

However, FADA also underlined that sales of passenger cars remain muted and pointed to rising inventory levels across showrooms, something it said manufacturers should pay “urgent attention to”, ostensibly by way of offering more discounts and offers.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Two-wheelers banned on Mumbai’s Parel TT flyover from June 1

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Brihanmumbai Municipal Corporation has decided to ban two-wheelers and heavy vehicles, including public transport buses, on the Parel TT flyover in central Mumbai from June 1.

The civic body has taken this decision in order to fix the potholes on the decades-old bridge at Dr Babasaheb Ambedkar Marg. This is one of the major corridors in the city for thousands of commuters.

In an official statement, the BMC revealed that it had received a no-objection certificate from the Mumbai traffic police to ban the movement of heavy vehicles on the Parel TT flyover.

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Furthermore, the BMC also informed that in order to avoid any accidents or mishaps, the bridge department will install height barriers of 2.5 meters on the flyover before the end of the month. After the installation of the height barriers, two-wheelers and heavy vehicles will be banned on the flyover.

The BMC has started filling the potholes on the road, which are primarily caused by the heavy vehicles, to avoid inconvenience to citizens during monsoon. Reportedly, the traffic police have even asked the BMC’s bridge department to take necessary action to stop the movement of vehicles on the flyover until the repair work is completed.

However, the repair work is likely to worsen the traffic situation in the area. Thousands of commuters are already reeling under heavy traffic snarls since the closure of Delisle Bridge next to Lower Parel station.

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Mumbai’s civic body also plans to undertake strengthening work on the flyover. This work is expected to start in October and will likely be completed in six months.

The Maharashtra government has tasked a separate entity for the maintenance of roads. This entity called Maharashtra State Infrastructure Development Corporation (MSIDC) will work closely with Public Works Department (PWD) and the Maharashtra State Road Development Corporation (MSRDC) to ensure that there are no potholes on the city roads.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bid for fancy scooty number crosses over Rs 1 crore in Himachal Pradesh

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Some people are so obsessed with the VIP number plate for their vehicles that they are ready to pay anything. The latest example could be seen in Himachal Pradesh’s Shimla, where a mind-boggling bid of Rs 1.12 crore has been received online for a fancy registration number for a scooty.

According to the Regional License Authority Office in Kotkhai of the Shimla district, where the government had put out a special two-wheeler number – HP99-9999 – at Rs 1,000 for an online auction.

As many as 26 participants had placed bids for the number, officials of the transport department said. Usually, a scooty costs between Rs 70,000 to Rs 1,80,000 in India.

The offer for the VIP number went as high as Rs 1,12,15,500, reveals the official website of the Ministry of Road Transport and Highways, Government of India.

Moreover, the costs of the second and third VVIP numbers, HP99-0009 and HP-990005, also saw high bids of over Rs 21 lakh each.

The credentials of the bidder are still now revealed and in case he doesn’t deposit the money, the VIP number would go to the second bidder. The bidding would freeze on Friday.

The officials further added that this could be the bidder’s pressure tactics to oust the competitors and there is a need for the imposition of penalty in case the bidding money is not deposited.

“We are also contemplating adding a clause to deposit 30 per cent bid amount at time of bidding which will be forfeited in case the whole amount is not deposited to end such practices,” he added.

(With inputs from PTI)

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

2-wheeler demand to grow, commodity costs to come down, says CEAT CFO Kumar Subbiah

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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RPG Group-owned tyre manufacturing company CEAT has revealed that it expects demand for two-wheelers in the country to pick up in the Jan-Mar quarter of 2023 financial year (Q4 FY23). Kumar Subbiah, Chief Financial Officer (CFO) of CEAT, in an interview with CNBC-TV18, said, “As far as quarter four is concerned, quarter on quarter we expect two-wheelers to grow.”

Subbiah also added that commodity costs could go down by 2-3 percent in Q4. He said, “In the last two quarters, our EBITDA margin has improved from 6 percent to 8.7 percent. So about 270 basis points (bps) improvement. Commodity cost cooling off has played a role in terms of improvement in margins. We have indicated that commodity cost could go down by about 2-3 percent in quarter four.”

While talking about future expectations, he stated that “We are not very far from 10 percent at this point in time, we are at 8.7 percent so our internal target is always to reach to double-digit number. There is a good probability of reaching that number in quarter four.”

Subbiah also explained the rising cost of raw materials and its impact on the company’s business. He said, “Natural rubber prices have moved up by about $100 in the last two weeks in the international market. So therefore we will have to wait and watch. We will not like to come to any conclusion based on what has happened in the last one-two week. Therefore, beyond a 2-3 percent drop in quarter four, we are not able to give any view.”

He further stated that the CEAT’s exports are also continuously facing headwinds, especially in Europe. Subbiah said, “Exports continue to face headwinds as we had earlier shared in Europe and also other parts of the world. So that is putting pressure. The quarter four outlook is little better than quarter three. But considering the world is likely to go through a recession and Europe’s recovery is still not very clear, exports could still be a little bit under pressure.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Insurance regulator proposes 3 years insurance cover for cars, 5 years for two-wheelers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Insurance Regulatory and Development Authority (IRDAI) on Wednesday proposed to introduce an insurance cover of three years for cars and five years for two-wheelers with an aim to allow wider choice to customers. The insurance regulator has floated a draft on ‘Long-Term Motor Products covering both Motor Third Party Insurance and Own Damage Insurance’.

The draft proposes to permit all general insurers to offer 3-year insurance policy in respect of private cars and 5-year for two-wheelers, co-terminus with motor third party liability cover.

The premium for the entire term of the policy coverage would be collected at the time of sale of insurance.

The pricing, as per the draft, would be based on sound actuarial principles, including claims experience, and long-term discount.

“The pricing of add-on and optional covers may likewise consider the cost efficiencies of policy administration,” said the draft, on which the Irdai has invited stakeholder comments by December 22.

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It also said the existing No Claim Bonus (NCB) for 1-year Motor Own Damage policies would also be applicable for long-term policies. The NCB applicable at the end of the policy tenure in case of long-term policies would be same as that would have been earned if such policies were renewed annually.

In case of long-term standalone Own Damage policies which are issued to be co-terminus with Motor Third Party Liability cover, nine-month policy tenure can be considered as full year for recognition of NCB during the year, it said.

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Irdai has also come out with a draft on long-term fire and allied perils products. It has proposed a policy cover of up to 30 years for dwellings.

Dwellings include standalone residential houses, villa complexes as well as apartment blocks managed by housing cooperatives or resident welfare associations or any other body representing the home-owners.

Long-term fire insurance can be cancelled during the tenure of the policy.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ather Energy announces expansion in Tamil Nadu, plans to set up 150 power grids in state 

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Electric two-wheeler maker Ather Energy on Sunday said it has drawn up plans to set up 150 fast-charging grids in Tamil Nadu by the end of the current financial year. The company recently inaugurated its first experience centre in Salem under its move to expand retail footprint in the state.

With the inauguration of the experience centre, Ather Energy has nine retail stores in Tamil Nadu.

“There are plans to expand its retail footprint to 15 stores and add 150 fast-charging grids in the state by the end of current financial year,” a company statement said here.

“Ather Energy has experienced an encouraging response from across the state for its scooters. With a high rate of EV adoption and growing acceptance for high-end electric two wheelers, Tamil Nadu is an important market for Ather Energy,” chief business officer Ravneet Singh Phokela said.

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“We have created an electric vehicle that is efficient, high quality and reliable from the ground up and have invested strategically in the infrastructure needed to support it. We have been expanding rapidly to fulfil the demand for the new and improved Ather 450X and have some exciting plans for Tamil Nadu,” he said.

Tamil Nadu has emerged as a high demand market for electric scooters with Ather Energy registering a 49 percent quarter-on-quarter growth.

The ex-showroom price post the FAME-II revision for the Ather 450X Gen 3 is Rs 1.58 lakh while the Ather 450 Plus Gen 3 costs Rs 1.36 lakh, the statement said.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

New six-light configuration can ramp up safety of motorcyclists: Study

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Researchers have come up with a new way to arrange lights on motorcycles to make them safer during night driving. In a new study published in the journal Transportation Research Part F: Traffic Psychology and Behaviour, scientists found that a six-light vertical configuration that stretches from the top to bottom helps motorcycles be more visible.

“Because motorcycles are smaller than many other vehicles, it is more difficult for other drivers to accurately judge their motion on the roadway,” explained researcher Bradley Weaver from Emory Healthcare, Emory University in Georgia.

The study took 35 individuals between the ages of 19 and 70 and ran them through driving simulations. The researchers measured how long it took the drivers to notice motorcycles using the standard headlamp configuration against motorcycles using different light configurations. The research team found that the six-light configuration resulted in the biggest improvement in perception.

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The team of researchers found that their new light configuration allowed drivers to see motorcycles up to 0.8 seconds faster than usual. While the less than a second improvement may not seem much on paper, it can be crucial when it comes to decision-making, explained the researchers.

With motorcycles’ size, speed and lack of protection, they continue to be one of the most accident-prone forms of transport in the world. In India, 69,240 deaths were recorded from two-wheelers in 2021, according to the latest data from the National Crime Records Bureau (NCRB). The number of road fatalities from motorcycles was nearly three times as much as that from cars in the country.

With a large portion of vehicular accidents happening at night or during poor lighting conditions, making motorcycles more visible can lead to improved safety.

“It is particularly difficult at night when a motorcycle has only a single headlight because other drivers can’t see the motorcycle’s full height or width,” Weaver added.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow