automobile sector

Auto industry needs to provide flexi-fuel vehicles at various price points to accelerate blended fuel technology adoption

Auto industry needs to provide flexi-fuel vehicles at various price points to accelerate blended fuel technology adoption .

Auto industry needs to provide flexi-fuel vehicles at various price points to accelerate blended fuel technology adoption .

In an event organised by the auto industry body, the Society of Indian Automobile Manufacturers [SIAM], the union ministers of petroleum and natural gas and housing and urban affairs stated that the Indian automobile industry needs to provide flexi-fuel vehicles at various price points quickly to accelerate the adoption of blended technology.The government will provide comprehensive support from the supply , policy and demand side for the sale of the flexi-fuel E10, which is a blend of 10 percent ethanol with the petrol, and the E20, which is a blend of 20 percent ethanol with the petrol.

Vehicles are the auto industry’s viable business proposition;

we need more options at various price points, including two-wheelers and three-wheelers, and we need them quickly. Hardeep Singh Puri, the minister for petroleum and natural gas, as well as housing and urban development, used the launch of Toyota’s first-of-its-kind pilot project on the flexi-fuel [FFV-SHEV] that can run on 100 percent ethanol in India last week to demonstrate how things are progressing on the blended fuel front.He also said the government is ready from the supply side to launch the E20 .

The union minister, Nitin Gadkari, launched this first pilot project on flex fuel strong hybrid electric vehicles [FFV–SHEV] on October 20, 2022 . which has been imported from Toyota Brazil for the pilot project . FFVs allow for greater ethanol substitution of gasoline because they can use any of the higher ethanol blends ranging from 20 percent to 100 percent.An FFV-SHEV has a flex-fuel engine and an electric power train, providing the dual benefit of higher ethanol use and greater fuel efficiency, as it can run in its EV mode for extended periods of time while the engine is turned off.

Target achievement:

Achieving the E20, which is blending with petrol by 2025, would help India save foreign exchange by about Rs 30,000 crores per annum . Hardeep Singh Puri also said that India will push for an international biofuel alliance when it assumes the presidency of the G20 in December this year .

Further , he said, we will utilise our G20 presidency to try and set up an international biofuel alliance . The number of petrol pumps selling bio fuels has more than tripled, from 29,897 in 2016-2017 to 67,641 in 2021-2022.He also says in his statement the India’s ethanol demand is poised to grow to 10.16 billion litres by the year 2025 . and also expanded the excise duty waiver for biofuels and will always consider how to prepare this even further in the future .



Automation key to post pandemic production

Automation key to post pandemic production

Automation key to post-pandemic production

The COVID-19 pandemic has an adverse effect on the entire economy.

The Cairn Oil’s Barmer plant which was managed by more than 7,500 employees on site reduced to 1,500 employees as the pandemic led to the lockdown of many manufacturing plants worldwide. Still, the oil and gas plant could recover 1.6 lakh barrels of oil every day. Before the pandemic, they used to recover 1.8 lakh barrels every day. This decrease in number is because of the low demand and not because of the labor shortages.

Still Cairn can manage the production because of its investment in automation and digitization.
The chief digital officer of Cairn, Anand Laxshmivarahan said that the organization will be focusing on cost optimization post-COVID-19. Do the companies will be willing to invest only in automation.

Companies like Tata Steel, Mahindra, Toyota, Tata motors, Maruti, etc. have ample methods to automate their product lines.

The government has set norms and guidelines for the company to operate amid lockdown such as companies must screen the temperature of the employees, provide them with protective hand gloves, provide them with additional medical insurance, employees should follow social distancing norms while working, etc has led the companies to think about employing machines than men.

 Mahindra & Mahindra’s Chief Human Resource Officer, Rajeshwar Tripathi says that the use of robots has significantly helped the automobile sector to grow. The company has already automated the body shop, the paint shop and some of its final assembly line.

Tata Steel, Vice President, HR, Suresh Tripathi said that Tata Steel employs thousands of contract workers for maintenance of machinery. Instead of that they can use sensors that can estimate the problem well in advance.

Ceat, HR Head, Milind Apte also has mentioned about adopting digitisation and automation.

In the long run automation will prove to be profitable and will generate greater return on investment and will also prevent such shutdowns. Automation although leads to less number of manpower, it will also need new set of skilled people.




Auto insurance

Auto insurance. What you need to know.

Auto insurance. What you need to know.


Accidents do happen, and policy is what protects your investments to be secure and healthy when they do. If an automobile accident is your mistake or someone else’s, your vehicle insurance policy will have to support. After all, how much it benefits is up to you, and that is decided by the variety of choices that make up the insurance plan. If you travel without vehicle insurance and experience an accident, the penalties are usually the least part of the financial responsibility. Whether you, a passenger, or either driver is involved in an incident, car insurance can reimburse your costs and will shield you against any lawsuits that might arise from an incident. Car insurance frequently covers the automobile from fraud, damage, or natural hazards, such as hurricanes or other weather-related accidents.

Choosing Your Auto Insurer:

If you choose to increase the chances that the premiums will be paid, you will always pick a successful insurance provider. Insurance providers should be efficient and have fair compensation for the premiums they demand. Remember, don’t apply to a private compensation provider that does not compensate for out-of-state injuries. Individuals are not forced to purchase auto insurance from a dealership that sells a new vehicle to them. In reality, purchasing somewhere else will save you money. Determining the compensation rate to a retailer may be complicated because the fee is often reflected in the net sales bill.


The benefit of the insurance package is dependent on the IDV-Insured Declared Value for the car, which is the actual insured price that the company will offer you, approximately equivalent to the current value of the car. The IDV of the vehicle is not specific. When you update your vehicle policy for like a year, the depreciation rate will cause the IDV to decrease. You will need to update the agreement within a defined period or fear that you may have to pay significant fines. This is typically 90 days.




1) Factors:

The insurance provider can check at the motor vehicle background and determine how many incidents or fines the driver has got. Most insurance providers will have the accident background summary to determine whether the applicant had filed some auto insurance payments and how much compensation has been charged. While accidents and breaches will only impact the premiums you get for three years, several insurers can look at five or six years and determine whether they choose to sell you policies. Other car insurance providers are looking into the applicant ‘s financial background.


2) Insurance rates differ:

Auto insurance premiums vary considerably from one insurance provider to another. This is how every insurance provider uses their methodology to determine the danger and evaluate whether you’re paying for coverage. This ensures that no two companies will offer the same premiums on the same policy. Also, if you don’t equate the prices, you might make an over-payment.


3) Be careful:

Many insurance providers consider drivers that are licensed but have no cover to be unsafe or careless. Because of that, if you allow the coverage expires, you ‘re going to pay extra if you have auto insurance. To stop that, whether you do not wish to compensate for protection or intend to end your protection policies. If you wish to move auto insurance providers, make sure you buy automobile insurance before canceling the existing insurance policy.


Insurance cover:

1. Personal Cover:

This helps secure the security of your children in case of a lifelong illness or the tragic circumstances of your death. Up to 2 lakhs will be compensated for any harm done to the driver when driving, installing, or disassembling from the vehicle. Many insurers do provide extra incident compensation for co-passengers.


2. Damage attributable to natural disasters:

Things beyond your influence, such as fire, landslide, earthquake, tornado, hurricane, cyclone, flood, thunderstorm, etc.


3. Damage attributable to man-made calamity:

Man-made accidents such as robbery, thefts, violence, strikes, criminal attacks, and other disruption done by water, road, or rail transport.


4. Third-Party:

Mandatory by statute, this protection covers you against civil action for unintended accidents that have ended in serious harm or the death of a third person. It also includes harm to every property in the area.


Insurance DOES NOT cover:

Your insurers are trying all they can to shield you from adverse effects, although there are variations. Vehicle insurance plans typically do not protect the following:
1. Damage done by a driver who may not have a proper driving license.
2. Electronic and mechanical breakdowns.
3. Damage done while the car driver is under the influence of drugs or alcohol.
4. Anyone who is not covered is driving your car.
5. Driving someone else’s vehicle.
6. Vehicles employed rather than in compliance with the limits of their use.
7. Loss attributable to war, or nuclear threat.


How this pandemic will change the Auto Industry?


Tata Motors Ltd Q1 FY23 Result Update.

Trends transforming the automotive industry.

Trends transforming the automotive industry.


The automobile market is undergoing a profound transition in terms of its far-reaching effect on business and its customers. This estimates the structural transformation of the automobile sector in terms of timescale, complexity, and quantity. One of the industries that has been under extreme stress over the past two years is heading for another turbulent year of falling revenue, growing costs, and ever-present government regulations. Driving is going to be convenient, simpler, cheaper, and safer. At the very same point, the revolution in personal transportation will push the automobile industry to redefine itself to some degree.



The move to emission-free transition will become a universal necessity. Electric power used to power cars will gradually come from renewable power to maintain carbon dioxide-free mobility. The shift to emission free human autonomy will not be feasible without the electrification of the running rail. Firstly, there is the problem of local materials. The reality is that vehicles are still producing very small amounts of toxic contaminants, noise, and air pollution. It also suggests that the emission-free effort will be a regional one. The energy used to power cars should come from green sources to guarantee CO2-neutral mobility. After all, the vehicles of tomorrow will not only be a subject of mutual and autonomous proportions but will also be wired and electrified. Owing to the accelerated growth of electric cars, it can be concluded that the overwhelming majority of automobiles will be e-vehicle.



The development of cars that do not need human interaction will reduce the usage of shared transportation systems and give personal transportation to different consumer groups. The exponential advances made in fields such as machine learning and artificial intelligence make it easier to accomplish that appeared impossible – i.e. the creation of automated cars, which do not need human interaction except in complicated traffic scenarios. This will redefine the usage of human mobility channels. It is probably attribute to the reality that the electrified and autonomous aspects are equally compatible. The proportion of shared and automated vehicles in the total road network will improve dramatically.


Car sharing:

Properly operated fleets of autonomous cars can lower the cost of transport dramatically by allowing more effective usage of costly mobile infrastructure. Over several years, many metropolitan areas have provided car-sharing services. Although, these are still mostly conducted as pilot projects or citizens’ programs. Exchanging ideas may become commercially feasible with the advent of automated vehicles. It will no longer be appropriate to look for a shared car in the local area. It will be possible to request vehicles anywhere the customer might be via a flexible on-demand platform. Although, station-based ride-sharing indicates that cars will only be obtained from predefined locations. The region of distribution for car-sharing represents the supplier’s market field. Ride-hailing is about taking a ride. This definition is increasing in prominence and will no longer be considered a fringe trend.


Demand for smaller cars:

Possible pay reductions, work shortages, declining wages, and no incentives will all cause Indian customers to be suspicious of investing mega-money on new cars. After the lock down is removed, the market for smaller cars like Tiago, Santro, Celerio, and WagonR, etc. will rise. Citizens will usually be suspicious of commuting through public transit if and when they are accessible to the public because of worries of being infected. They will like to drive in their automobiles and will opt to purchase a 2-wheeler or smaller vehicle without needing to pay so much on luxury SUVs, hatchbacks, or sedans. Maruti Suzuki will be the major winner of all of this and will undoubtedly improve its market share by new product releases and price cuts to target the middle-class community.


Used cars:

Used vehicles will be the kind of the post-COVID-19 world. A survey revealed that the inquiries for pre-own vehicles multiplied during the lock down time frame. Purchaser viewpoint appeared to be more rounded among the individuals who enquired about used vehicles. 77% of them were happy to proceed with their buy after the lock down. It was noticed that an impressive level of respondents liked to purchase old vehicles because of budget restrictions. The used car would profit most as people switching from a public vehicle to a private vehicle. With India’s auto industry is facing depression for more than a year and the Covid-19 shutdown now expected to deepen and the financial pressure of the mid-income class, used cars might end up being a go-to option.


Online portal:

The auto sector registered a major decrease in sales due to COVID-19 and BSVI. In the past few months, several automotive makers have switched to the online platform to improve demand. Hyundai, Honda, BMW, Maruti Suzuki, and others consider that this is an opportunity to reach out to potential customers as additional support to dealers. Automobile manufacturers are offering schemes to help customers easily buy their vehicle in the middle of the lock down. Auto OEMs try to concentrate further on the digital world to boost demand. Most dealerships and retailers will focus on expanding their digital presence, providing pick-up and delivery of cars for service and sale, and giving consumers a smooth shopping interface to achieve loyalty.



Importance of Financial Literacy.

Bharat Forge Ltd Q1 FY23 Result Updates.

Automakers come up with unique schemes to push sales.

Automakers come up with unique schemes to push sales.


Leading passenger car makers are partnering with NBFC’s and banks to give consumers competitive financing solutions and improve market sales. In the  several early months, a potential customer will choose to pay considerably low installments and afterwards increase the percentage payable at a pre-specified rate.


Maruti Suzuki:

Maruti Suzuki India Ltd has collaborated with bankers such as ICICI Bank Ltd to include EMI of a maximum of Rs 899 for the first 3 months of its loan value of Rs 1 lakh. Another scheme lets borrowers pay EMI as small as Rs 1797 per lakh over the term of service, including the last payment where the borrower charges one-fourth of the loan value. The Delhi-based auto manufacturer has also partnered with banks to finance 100 percent of the automobile on-road. The firm has recently collaborated with Cholamandalam, to provide plans in which consumers will not have to pay EMI during the first 2 months. Maruti Suzuki has allied with HDFC Bank’s aim of providing financing options to vehicle buyers. Advantages will include low monthly payments over three months each year, up to 100% on-road financing, etc. This will benefit consumers in the entry-level categories in general. Together under tie-up, consumers can make use of a step-up EMI plus balloon plan with a monthly installment of Rs 1,111 per lakh for a loan period of 84 months.


Car leasing:

Maruti Suzuki is currently proposing leasing automobiles to its customers via dealer networks. This change will add optimism to Maruti Suzuki distributors at a time when the company has been under continuous stress owing to decreasing domestic revenues and the financial crisis triggered by the COVID-19 pandemic. This scenario can be suitable for the release of such services by Maruti, as city buyers are likely to favor the vehicle leasing system, rate drop, cost-effectiveness, and less burden on leased automobiles. Innovation presents an interesting alternative for the recovery of demand of purchase of cars in city centres.



In the meantime, Hyundai Motor India Ltd is now offering its automobiles on lease. The car manufacturer considers this scheme to increase demand. The Hyundai Assurance Program will be provided on selected Hyundai car variants bought during May 2020. It will also protect the buyer for a term of 1 year since the date of delivery of the vehicle. They introduced a special and industry-leading EMI Assurance Program. It will offer young buyers of Hyundai employed in private companies complete peace of mind through this period and build optimistic and secure feelings for the purchase of Hyundai vehicles.



M&M, the manufacturer of Scorpio and Bolero SUV, has now launched car loan plans under which consumers are subject to a 90-day suspension or may pay in 2021. In a 8-year loan period, a 90-day payment moratorium including 100 percent on-road financing, to enable buyers conveniently acquire their cars will be provided in the middle of the lock down. According to the company, the policies provide a 50 percent rebate from the payment charge and the opportunity to “buy now, pay later” for the doctor’s segment, a strong reimbursement program for security officers. While, woman consumers will be entitled to a 10-point reduction on the cost of borrowing. The car manufacturer now gives consumers the option of buying a BSVI-compliant pick-up and charging the same EMI as the BS-IV model while, the SUV buyer will now buy the model now and begin paying the monthly installment from 2021. Also, the firm is selling BS-VI vehicles on the same monthly installation as the previous BS-IV platform. In this program, the EMI for funded vehicles begins with as small as Rs 1,234 per lakh.



Volkswagen India has announced a leasing and lending service. In a bid to improve demand and render its vehicles available to customers, the German automaker has unveiled different ownership options, including rental and buy-back options. According to the company, new ownership models have been introduced, predicting that consumers are progressively looking at personal travel through mass transit and car-sharing. Such new initiatives can be used across every dealer network. Whereas, the rental period can vary from 2 to 4 years. Clients can also make use of zero down payment together with premiums, servicing and some other costs provided by the scheme. The lease program also offers buyers the ability to switch to certain Volkswagen vehicles. Although, Tiguan and Vento can be purchased under the promised buy-back program, the business has indicated that more versions will be put within this scheme.



Nissan has also launched Buy Now-Pay Later from January 2021 on selected models.


Tata Motors:

Under its latest Keys of Safety financing system, Tata Motors revealed a personalized EMI program for its Tiago model starting at Rs 5,000 per month for 6 months. As per the update, the EMI sum is slowly raised over a cumulative duration of 5 years. Consumers can select between three choices before waiting for their final EMI. Also providing 100% on-road financing for the full line of automobiles and SUVs.



Skoda Auto India and Toyota Kirloskar Motor claim to give pre-qualified buyers a zero own payment plan. Even though Toyota has extended the offer to pick customers depending on their credit scores, Skoda is now extending the EMI vacation to four months to six months.



Honda Cars India give cash discounts of up to Rs 1 lakh on specific variants.




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