Latest news with #CorporateAverageFuelEfficiency
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Business Standard
7 hours ago
- Automotive
- Business Standard
Maruti says engineers working to mitigate rare earth magnet shortage issue
The recent imposition of export restrictions by China on key rare earth magnets has resulted in supply chain bottlenecks, impacting the user industries, including the auto and electronics sectors Press Trust of India New Delhi Maruti Suzuki India on Thursday said its engineers are working to mitigate the rare earth magnet shortage issue, noting that there has been no impact on its production so far. In an analyst call post the company's June quarter financial results, Maruti Suzuki India Senior Executive Officer Corporate Affairs Rahul Bharti termed the shortage a challenging situation. "So, it is a challenge, and of course, our engineers are working to mitigate it and ensure that we do not have the impact of this. "So, it's work in progress, but as of now, we are managing the situation. If and when there is an impact, we'll come back to you to answer your question," Bharti replied to a query on the matter. The recent imposition of export restrictions by China on key rare earth magnets has resulted in supply chain bottlenecks, impacting the user industries, including the auto and electronics sectors. China currently dominates the global rare earth magnet supply chain, controlling over 90 per cent of global processing capacity. These magnets are essential components across sectors like automobiles, household appliances, and renewable energy. The Chinese government has mandated, from April 4 onwards, that special export licences be required for seven rare earth elements and associated magnets. On demand scenario in the domestic market, Bharti said: "At the beginning of the year, the industry body had given a kind of a guess of 1-2 per cent growth this fiscal. Q1 has not been up to the mark. Q2 has some positives". He noted that the company is expecting the situation to improve in the festive season. "There are other positives also, like the monsoon and rural (sales) are holding up. So, we are looking at the second quarter and the festive season with optimism," Bharti stated. Replying to a query on the upcoming Corporate Average Fuel Efficiency (CAFE)-3 norms, he said the discussions have been proceeding well between industry and government with both sides understanding each other's position quite well. "It is a complex topic, but there have been sufficient discussions and all the complexibilities are on the table, and it is expected that between one to two months, all of us are hoping that the final revelation will be out, so that we have clarity for for the powertrains starting from first April 2027," Bharti stated. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Economic Times
8 hours ago
- Business
- Economic Times
Maruti says engineers working to mitigate rare earth magnet shortage issue
Maruti Suzuki India on Thursday said its engineers are working to mitigate the rare earth magnet shortage issue, noting that there has been no impact on its production so an analyst call post the company's June quarter financial results, Maruti Suzuki India Senior Executive Officer Corporate Affairs Rahul Bharti termed the shortage a challenging situation."So, it is a challenge, and of course, our engineers are working to mitigate it and ensure that we do not have the impact of this."So, it's work in progress, but as of now, we are managing the situation. If and when there is an impact, we'll come back to you to answer your question," Bharti replied to a query on the recent imposition of export restrictions by China on key rare earth magnets has resulted in supply chain bottlenecks, impacting the user industries, including the auto and electronics sectors. China currently dominates the global rare earth magnet supply chain, controlling over 90 per cent of global processing magnets are essential components across sectors like automobiles, household appliances, and renewable Chinese government has mandated, from April 4 onwards, that special export licences be required for seven rare earth elements and associated demand scenario in the domestic market, Bharti said: "At the beginning of the year, the industry body had given a kind of a guess of 1-2 per cent growth this fiscal. Q1 has not been up to the mark. Q2 has some positives".He noted that the company is expecting the situation to improve in the festive season."There are other positives also, like the monsoon and rural (sales) are holding up. So, we are looking at the second quarter and the festive season with optimism," Bharti to a query on the upcoming Corporate Average Fuel Efficiency (CAFE)-3 norms, he said the discussions have been proceeding well between industry and government with both sides understanding each other's position quite well. "It is a complex topic, but there have been sufficient discussions and all the complexibilities are on the table, and it is expected that between one to two months, all of us are hoping that the final revelation will be out, so that we have clarity for for the powertrains starting from first April 2027," Bharti stated.
News18
8 hours ago
- Business
- News18
Maruti says engineers working to mitigate rare earth magnet shortage issue
Agency: PTI New Delhi, Jul 31 (PTI) Maruti Suzuki India on Thursday said its engineers are working to mitigate the rare earth magnet shortage issue, noting that there has been no impact on its production so far. In an analyst call post the company's June quarter financial results, Maruti Suzuki India Senior Executive Officer Corporate Affairs Rahul Bharti termed the shortage a challenging situation. 'So, it is a challenge, and of course, our engineers are working to mitigate it and ensure that we do not have the impact of this. 'So, it's work in progress, but as of now, we are managing the situation. If and when there is an impact, we'll come back to you to answer your question," Bharti replied to a query on the matter. The recent imposition of export restrictions by China on key rare earth magnets has resulted in supply chain bottlenecks, impacting the user industries, including the auto and electronics sectors. China currently dominates the global rare earth magnet supply chain, controlling over 90 per cent of global processing capacity. These magnets are essential components across sectors like automobiles, household appliances, and renewable energy. The Chinese government has mandated, from April 4 onwards, that special export licences be required for seven rare earth elements and associated magnets. On demand scenario in the domestic market, Bharti said: 'At the beginning of the year, the industry body had given a kind of a guess of 1-2 per cent growth this fiscal. Q1 has not been up to the mark. Q2 has some positives". He noted that the company is expecting the situation to improve in the festive season. 'There are other positives also, like the monsoon and rural (sales) are holding up. So, we are looking at the second quarter and the festive season with optimism," Bharti stated. Replying to a query on the upcoming Corporate Average Fuel Efficiency (CAFE)-3 norms, he said the discussions have been proceeding well between industry and government with both sides understanding each other's position quite well. 'It is a complex topic, but there have been sufficient discussions and all the complexibilities are on the table, and it is expected that between one to two months, all of us are hoping that the final revelation will be out, so that we have clarity for for the powertrains starting from first April 2027," Bharti stated. PTI MSS MSS BAL BAL view comments First Published: July 31, 2025, 19:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
18 hours ago
- Automotive
- Time of India
Steel price surge could strain costs, warns Mahindra
New Delhi: Mahindra & Mahindra (M&M) has flagged rising commodity costs, particularly steel, which it says has seen a 6 per cent price increase over the last quarter. 'We are concerned about steel going up,' said Rajesh Jejurikar , Executive Director & CEO- Auto and Farm Sector, during the company's Q1 earnings media briefing on Wednesday. While it claims to have managed to partially offset the impact through hedging and inventory buffers in Q1, Jejurikar cautioned that continued inflation in raw material costs could strain price stability. 'Looking at the overall inflation levels in the category, there should be an effort made to moderate the level that is getting kicked off with raw material increases such as steel,' he said. Amarjyoti Barua, Group Chief Financial Officer (CFO) noted that while commodity hedges helped offset inflationary pressures in Q1, sustained increases, particularly in steel, could impact future quarters. 'Steel was the largest,' he said, adding that certain precious metals are also showing signs of inflation, possibly driven by pre-buying trends in the U.S. 'The inflationary environment right now is a little more than what we were counting on till last quarter,' Barua cautioned. During Q1, Mahindra had already implemented a price increase of up to 3 per cent across its SUV and commercial vehicle (CV) portfolio, citing rising input and commodity costs as the key drivers. The company said the hike was necessary to offset inflationary pressures impacting the broader automotive sector. CAFE norms Amid industry debate over proposed fuel efficiency regulations, Jejuriker said SIAM has submitted its recommendations for the Corporate Average Fuel Efficiency (CAFE) norms, in December 2024 for passenger vehicles and in 2025 for commercial vehicles. Mahindra and Tata Motors are among the OEMs that have reportedly sought the exclusion of light commercial vehicles (LCVs) under 3.5 tonnes from the fuel efficiency mandate. However, in a draft notification issued Monday night, the Bureau of Energy Efficiency (BEE) retained LCVs in its proposal, covering N1, N2, and N3 truck categories, despite industry pushback. Commenting on the same, he said, 'We strongly support and endorse this proposal and believe there is broad alignment among SIAM members. While we await the government's final decision, we are fully prepared to comply with the approved norms." In Q1 FY26, Mahindra emerged as the market leader in the LCV segment with a commanding 54.2 per cent market share, overtaking Tata Motors' long-held dominance in the category. EV Business Electric SUVs contributed 8 per cent to Mahindra & Mahindra's total SUV volumes in Q1 FY26, with the company leading the EV market in both revenue and volume share. The auto major said there has been 'no disruption in production' due to rare earth magnet supply issues. It added that supply for key components is comfortably secured for the current and next quarters, and largely covered for Q4 as well. 'We've taken multiple actions, ranging from inventory planning to substituting rare earth with light earth elements and exploring ferrite-based alternatives. At this time, we feel confident that it is not a risk,' Jejuriker said. The automaker plans to ramp up its XUV 9e and BE 6 production by introducing variants Pack 1 and Pack 2 through the festive season and into January. Interestingly, EVs have the highest proportion of women buyers across Mahindra's portfolio. 'While I don't recall the exact number, I believe around 80 per cent of our EV buyers are women, which is a distinctly different profile compared to our ICE vehicles,' he said. On rising competition, he acknowledged shifting market share dynamics but expects overall EV volumes to grow. 'As competition grows, market share will be affected.' The EV business delivered robust financials, clocking ₹111 crore in EBITDA on ₹2,800 crore revenue, including contributions from Mahindra Ltd and Mahindra Electric Automobile Ltd (MEAL). Q1 Performance Backed by robust operational performance in its farm and automotive businesses, M&M reported a 24 per cent year-on-year rise in consolidated net profit to ₹4,083 crore for the quarter ended June. The company's subsidiaries also contributed meaningfully to the quarterly growth. 'This was a strong quarter for cash generation. Despite infusing nearly ₹2,500 crore into two subsidiaries through rights issues, our cash balance increased on a sequential basis,' said Anish Shah, Group CEO and Managing Director. He added that the company's automotive launch pipeline remains strong, with multiple new models and variants scheduled across FY26 and FY27.
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Business Standard
3 days ago
- Automotive
- Business Standard
Explained: Why India's 2027 emission target has automakers on edge
India wants to cut vehicle emissions by 33 per cent by 2027, but carmakers say the targets are too steep, too soon, and could hurt jobs, raise prices, and stall the industry's green transition New Delhi India sets ambitious 2027 emission target India wants its cars to breathe cleaner by 2027. To that end, the Centre has proposed slashing average carbon dioxide (CO₂) emissions by 33 per cent. As one of the world's largest greenhouse gas emitters, and with a $137-billion auto sector playing a key role, the push for greener alternatives is gaining urgency. But automakers aren't fully on board. Under the new fuel efficiency standards—Corporate Average Fuel Efficiency (CAFE-III)—scheduled to take effect on April 1, 2027, manufacturers must lower average carbon emissions to 91.7 grams per kilometre (g/km), from the current 113.1 g/km. While the government frames this as a vital climate commitment, the auto industry warns that the timeline is too narrow and the targets too aggressive—risking an adversarial policy clash. What the government aims to achieve The Centre's proposal, while straightforward on paper, is complex in practice. The Ministry of Road Transport and Highways aims to implement the third phase of CAFE standards by 2027, aligned with the globally recognised WLTP (Worldwide Harmonised Light Vehicles Test Procedure) protocol—considered more realistic than India's older MIDC testing model. Officials insist this move is essential. With transport contributing over 10 per cent of total emissions, the government believes tighter norms will accelerate innovation and electric vehicle (EV) adoption. Why India's carmakers are concerned For manufacturers, the challenge is as much economic as it is technological. Carmakers say that achieving a 33 per cent reduction within three years will require a drastic overhaul of production systems, powertrains, and portfolios—demands they argue are neither time- nor cost-feasible. Maruti Suzuki has asked for relaxed norms for sub-1,000kg vehicles to shield models like Alto and WagonR. Meanwhile, Tata, Mahindra, Hyundai, Toyota, Renault, Honda, and Kia oppose any weight-based exemption, citing competitive distortion. Toyota is also pushing for greater hybrid incentives. Falling short of targets could trigger steep penalties. Given high input costs and a recovering post-pandemic market, several firms fear profit erosion. Worries also extend to downstream impacts—possible job losses, price hikes, and reduced availability of budget vehicles. What it means for Indian car buyers For Indian consumers, this regulatory shift could mean higher prices, particularly for entry-level cars. If automakers divert resources toward lower-emission or higher-margin vehicles, affordability could take a hit. On the upside, stricter norms could spur faster investment in EVs, hybrids, and clean-fuel tech—potentially improving air quality and expanding green vehicle options. But whether these advances remain accessible to the mass market remains uncertain. What automakers are proposing instead Industry groups are urging a phased approach, starting with a 15 per cent emissions cut. The Society of Indian Automobile Manufacturers (SIAM) has formally petitioned the government to reconsider targets set under ENVISION 2030. Citing gaps in fuel quality, charging infrastructure, and supply chain readiness—especially for hybrid and EV platforms—automakers argue that a gradual transition will better serve India's dual goals of climate leadership and industrial growth. Why lighter vehicles face fewer hurdles—and more debate CAFE-III targets vary based on vehicle weight. Lighter vehicles are expected to meet lower emission targets than heavier ones, triggering tension among manufacturers. Some large-volume carmakers argue this favours lightweight players and could disincentivise innovation in premium segments—already burdened by electrification and safety compliance costs. Hybrids, ethanol cars and the 'green credit' tug-of-war A parallel debate surrounds which technologies deserve green credits. While EVs receive favourable offsets in fleet emission calculations, the industry wants similar recognition for hybrids, CNG vehicles, and ethanol-blended fuel cars. Many automakers argue that in a country with limited charging infrastructure, hybrids and ethanol vehicles offer a more realistic green pathway. The government has yet to clarify how these alternatives will be accounted for under CAFE-III. Is an ICE ban looming by 2040? Adding to the anxiety is talk of a 2040 phaseout of internal combustion engine (ICE) vehicles. While not yet policy, the possibility has emerged in several government forums. Automakers caution that such signalling could deter near-term investments in ICE upgrades still critical for rural and semi-urban markets. Without incentives or a concrete roadmap, supply chains could be disrupted and consumers left uncertain. The road ahead The government wants cleaner air and global credibility on climate action. The auto industry is asking for more time, clearer rules, and infrastructure support. What emerges from this policy standoff will shape not just India's car market—but the nation's mobility future.
