Latest news with #India-specific
Mint
a day ago
- Automotive
- Mint
Honda says ABS rollout from Jan for two-wheelers to drive up imports
Honda Motorcycles and Scooter India Pvt. Ltd has joined larger peer Honda MotoCorp Ltd in flagging concerns about the January rollout of anti-lock braking system in all two-wheelers, saying it could spike imports as local suppliers are not yet ready to meet the demand. 'Cost is definitely there as an impact. But more important is in terms of whether we are really prepared from the supply side point of view," Yogesh Mathur, director of sales and marketing at Honda Motorcycles and Scooter India (HMSI), told Mint. Suppliers will have to rely on import routes due to the strict timelines and domestic manufacturing will have to prepare accordingly, he said. The country's second-largest two-wheeler maker's warning reflects the anxiety flagged by its former partner, Hero, about the 'key business risk" in its latest annual report, without directly referring to the anti-lock braking system (ABS) implementation from 1 January. The system improves traction and helps avoid skidding on roads, which helps prevent accidents. Currently, only two-wheelers with an engine capacity of more than 125cc are required to have ABS. At the end of the financial year 2025, only 16% of the total 19.6 million two-wheelers sold had the required technology. If the draft proposal is implemented, 84% of the two-wheeler market will have to install ABS, increasing the cost by ₹3,000-5,000 per unit. Representatives of the Society of Indian Automobile Manufacturers (Siam), an industry lobby, met on 9 July with the Union roads ministry secretary to seek a relaxation on the rollout deadline. The minutes of the 9 July meeting, accessed by Mint, showed the Siam delegation asked for more time to study India-specific accident data before implementing such regulations. '[But] the Secretary MoRTH stressed the urgent need for implementing safety measures, citing the high percentage of 2-wheeler fatalities, and emphasised technical interventions." HMSI's Mathur told Mint, 'If these deadlines prevail, definitely, I think it will be only through the import route, not from the domestic side unless the investments are being done by the supplier to increase their production." Analysts predict that the domestic ABS industry will see rapid growth due to the implementation of such regulations. 'With the shift toward ABS, we expect the industry size to increase by 5X to ₹80.4 bn," Rishi Vora, an analyst at Kotak Institutional Equities, wrote in a 20 June note. 'Currently, the 2W ABS market is dominated by Bosch—unlisted arm (60-70% market share), Continental andEndurance Technologies (10-15% market share)." Other analysts flagged reliance on imports for critical ABS 65–70% of critical ABS components, particularly electronic control units and wheel speed sensors, are imported, with China and select Asean nations forming a major part of the sourcing base, said Harshvardhan Sharma, group head for auto tech and innovation at Nomura Research Institute Consulting and Solutions India.'While domestic suppliers are actively expanding capacity, a full localization transition may require at least a 12–18 month runway, factoring in validation cycles, tooling, and volume commitments," Sharma said. Subhabrata Sengupta, partner at Avalon Consulting, suggests that with the deadline approaching soon, more players will look to enter the segment and expand their capacities. '...The ECU and sensor may be imported initially, but assembly may be indigenized quickly," Sengupta said. 'However, in our view, this is a deadline to light a fire. In all probability, this may get relaxed by say 6 months, making implementation smoother."
Indian Express
4 days ago
- Business
- Indian Express
India should disregard NATO threat on doing business with Russia
During Operation Sindoor, the S-400 formed the outermost layer of India's air defence. This is the missile system that India acquired from Russia a few years ago despite the US threatening sanctions under CAATSA — a law mandating punitive measures against countries engaging in 'significant transactions' with Russia, North Korea, or Iran. India made it clear that it would proceed with the S-400 deal anyway. Eventually, the US House carved out an India-specific waiver. A similar episode is playing out again. NATO Secretary General Mark Rutte warned this week that countries like India, China, and Brazil could face secondary sanctions if they continue doing business with Russia. This comes as several US senators back a new sanctions bill proposing a 500 per cent tariff on nations buying Russian goods. US President Donald Trump, too, said this week that the US would impose 100 per cent secondary tariffs targeting Russia's trade partners if a peace deal with Ukraine did not happen in 50 days. The Ministry of External Affairs' sharp rebuttal on Thursday — underlining that the energy requirements of the Indian people are the overriding priority, and cautioning against 'double standards' — serves as a timely reminder to the West, particularly Europe, of its own manoeuvres in pursuit of energy security. Yes, India was quick to seize the opportunity to purchase discounted Russian oil after the West imposed price caps and turned away from it. But while Russia's emergence as India's top crude supplier has helped meet domestic energy demand and stabilise prices, it is no secret that a substantial volume of refined fuel, derived from the Russian oil imported to India, is ultimately exported to Europe. A CREA report noted that by late 2024, 'capitalising on the refining loophole', India had become the EU's largest exporter of oil products. Europe also imported LNG at record levels from Russia last year. The sanctions threat to its trade partners is intended to choke Russia's war funding and pressure President Vladimir Putin into agreeing to a ceasefire. In doing so, however, the US and NATO risk undermining their relationship with one of the world's largest economies and an essential ally in the Indo-Pacific. The West cannot have it both ways: Penalise India for pursuing national interest while simultaneously expecting cooperation in regional and global initiatives. It is high time the West engaged with India as an equal partner. Petroleum Minister Hardeep Singh Puri said on Thursday that there was nothing to worry about even if sanctions were activated because India has expanded its crude sourcing slate. New Delhi should remain firm in pursuing its own path, even as the West seeks to dictate terms.
Mint
4 days ago
- Automotive
- Mint
Hero calls out 'regulatory complexity' amid MoRTH's push for safety
The country's largest two-wheeler company, Hero MotoCorp Ltd, has added "regulatory complexity" as one of the new key business risks at a time when the ministry of road transport and highways (MoRTH) is rushing the two-wheeler players to implement anti-lock braking systems (ABS) to increase said in its latest annual report that frequent regulatory changes increase cost and require process realignment, which is a concern for the company. The disclosure in the annual report came after a delegation of Society of Indian Automobile Manufacturers (Siam) members met the secretary of the road transport ministry on 9 July to discuss the implementation of ABS regulations. Hero MotoCorp, TVS Motor Co. Ltd, Bajaj Auto Ltd, and Ather Energy are among the members of SIAM. Also Read: Ola's 90% outlets to be shuttered in India's top electric scooter-selling state The government has made ABS mandatory in all two-wheelers from 1 January to improve safety. ABS helps provide better traction during braking, reducing skidding and accidents. Currently, only two-wheelers with engines above 125cc are required to have ABS, which is about 16% of the two-wheeler market. 'Constantly evolving regulations require continuous adaptation, leading to increased compliance costs. Frequent regulatory changes may cause operational disruptions and require process realignment," Hero wrote in its annual report as part of key enterprise-level risks and their mitigation. The company did not directly attribute the addition of this risk to the ABS proposal. Queries emailed to Hero MotoCorp remained unanswered till press time. Cost escalation However, the two-wheeler industry is concerned about the possible impact of the ABS regulation, which can lead to a ₹3,000 to ₹5,000 increase in the cost of a vehicle. At a time when the industry is expecting 5-6% growth in two-wheeler sales due to slowing demand, a cost increase can be a major challenge for the firm. The minutes of the meeting accessed by Mint showed that during the meeting with the secretary on 9 July, the Siam delegation asked for more time to study India-specific accident data before implementing such regulations. 'The Secretary MoRTH stressed the urgent need for implementing safety measures, citing the high percentage of 2-wheeler fatalities, and emphasised technical interventions," the minutes further read. According to analysts, Hero will face the biggest heat of the move as 94% of its total volumes does not have ABS. In a note on 20 June, analysts at Kotak Institutional Equities said that 94% of the company's total volumes will be impacted, which can lead to increased costs. Also Read: Tesla dares BYD, BMW, Merc in India's luxury lane This will come at a time when the two-wheeler sales of the company are in the slow lane in the domestic market, with sales growing 4% to 5.4 million units. In the first quarter of the current financial year, the sales in the two-wheeler industry declined by 6% to 4.6 million units. Hero MotoCorp's sales during the April-June period fell by 12% to 1.3 million units. 'In terms of Original Equipment Manufacturers (OEMs), Hero MotoCorp and TVS Motors will be the most impacted, as 94% and 64% of their total volumes, respectively, will undergo price increases from CY2026. Bajaj Auto will relatively have less impact, as 35% of its volumes will only get impacted by ABS norms," Rishi Vora of Kotak Institutional Equities said. While the industry is lobbying for relaxation in implementing such norms, not all players are on the same page. Ola Electric's chairperson and managing director, Bhavish Aggarwal, has argued for the quick implementation of the regulations to ensure customer safety. Also Read: India plans auto parts export boost amid Trump tariff shock 'Our stance is that the sooner the better. We should not compromise with customer safety," Aggarwal said during the company's earnings call on 14 July. 'For industry, when they do ABS, anywhere between ₹3,000 to ₹5,000, they incur in terms of Bill of Materials (BOM) cost, depending on what kind of ABS."Hero MotoCorp's mitigation strategies include 'proactive regulatory monitoring and active engagement with industry peers and regulators" to deal with regulatory complexity.
New Indian Express
5 days ago
- Automotive
- New Indian Express
Tesla's India play: Niche appeal now, bigger potential later
Tesla's entry into the Indian market is unlikely to disrupt the existing electric passenger vehicle (PV) segment in the near term, but the American automaker has strong potential to emerge as a key player in the coming years. "While the premium electric car segment remains niche, it is growing rapidly, driven by India's rising millionaire population and their appetite for high-tech vehicles," said Puneet Gupta, Director of India & ASEAN Auto Market at S&P Global Mobility. Industry data shows luxury EV sales surged 66% year-on-year between January and May 2025. These vehicles now account for 11% of total luxury car sales, up from 7% in the same period last year. Gupta suggests Tesla could explore setting up a manufacturing plant in India within 2-3 years, as rising passenger vehicle exports and shifting domestic demand may incentivize the automaker to develop India-specific models. He also highlighted the timing of Tesla's strategy to initially sell cars as completely built units (CBUs) and potential benefits from ongoing India-US trade negotiations. "If the trade agreement reduces import taxes on American cars, Tesla could see a major price advantage, boosting its sales significantly," Gupta added. Vinay Raghunath, Partner, Automotive and Mobility Sector Leader at EY India, said that while the initial impact of Tesla's entry may be more symbolic, it will undoubtedly elevate consumer awareness, spark greater interest in EVs and set new benchmarks in connected and autonomous mobility.
India Today
6 days ago
- Automotive
- India Today
Tesla showroom now in Mumbai. Full price list of EVs in India revealed
Tesla is officially entering the Indian market with the launch of its first showroom in the country. The electric vehicle (EV) maker will open its doors to customers at Maker Maxity Mall in Mumbai's Bandra Kurla Complex (BKC) on is a big step for Elon Musk's company, as it takes its first formal step into one of the fastest-growing EV markets in the Mumbai showroom will serve as Tesla's main display and customer experience centre, offering visitors a chance to view the vehicles up close and understand Tesla's Y PRICE IN INDIAAccording to Tesla's website, the company will begin its India journey with the Model Y Model Y rear-wheel drive is priced at Rs 60 lakh (around $69,765) for customers paying in cash. The long-range rear-wheel drive variant comes in at a higher price of Rs 68 prices are higher than Tesla's base pricing in other markets. In the U.S., the Model Y starts at $44,990, while in China it is priced at 263,500 yuan, and in Germany at 45,970 higher price in India is mainly due to import duties, as the Model Y will be sold as a completely built unit (CBU).Tesla's Model Y units are expected to be imported from the company's Gigafactory in Shanghai. The Shanghai facility is currently the production hub for many of Tesla's international markets. For India, Tesla has so far imported six units of the Model Y SUV, which are expected to be used for display and test drives at the Mumbai with the vehicles, Tesla has also brought in Supercharger equipment and accessories worth nearly $1 million into India. These items have been mostly sourced from China and the United States. The Superchargers are likely to be installed in and around Mumbai to support early adopters of the Mumbai showroom is expected to be the first of many locations Tesla may open across India, depending on the market response. The company is also preparing a service centre in Kurla West, Mumbai, to handle maintenance and after-sales support for its is in addition to Tesla's existing presence in the country. The EV firm already has a registered office in Bengaluru and an engineering hub in of the launch, Tesla created buzz on social media by posting a teaser from its India-specific handle on X (formerly Twitter). The post, shared on Friday, read 'Coming soon' with a graphic hinting at Tesla's India debut in July 2025.- EndsMust Watch advertisement
