Latest news with #NandanMandayam
Mint
4 days ago
- Automotive
- Mint
India auto dealers cautious on June sales amid rare earth curbs, high inventory
(Reuters) -Indian auto dealers expect demand to remain cautious in June as high inventory levels, tighter financing and concerns around rare earth shortages weigh on the industry. While above-normal monsoons are expected to support tractor and two-wheeler sales in semi-urban and rural markets, shortages of rare earths - critical to EV production - could sap demand, the Federation of Automobile Dealers Associations of India said. Only a third of the industry body's members expect growth in June, while around 55% expect flat sales. Automakers and dealers have been counting on new EV launches to drive growth this year and soften the blow of slowing sales of combustion engine cars in urban areas. "...global supply-chain headwinds — from rare-earth constraints in EV components to ongoing geopolitical tensions —may keep urban consumer sentiment in check," FADA said. To be sure, while sales of EVs in India have been growing at a faster pace than their gasoline counterparts, they still accounted for just 2.5% of the 4.3 million cars sold last fiscal year. China's suspension of exports of a wide range of rare earths and related magnets has upended supply chains crucial to automakers, aerospace manufacturers, semiconductor companies and military contractors. Global automakers have warned of production halts due to the export restrictions. While Indian carmakers are yet to publicly disclose the impact of the curbs, an auto industry body privately told the government last month it expects production "to come to a grinding halt" as early as the end of May or early June. India's top e-scooter maker Bajaj Auto last week said any delays in lifting the export curbs would hurt the production of its electric scooters from July. TVS Motor, too, has warned of an impact by June or July. The FADA also said high inventories of cars and commercial vehicles remain an overhang for dealers. Inventories for cars stood at 52-53 days in May, above FADA's recommended level of 21 days. (Reporting by Ananta Agarwal and Nandan Mandayam in Bengaluru; Editing by Sonia Cheema, Nivedita Bhattacharjee and Saumyadeb Chakrabarty)
Yahoo
03-06-2025
- Business
- Yahoo
Modi's soaring Indian aviation ambitions face many headwinds
By Abhijith Ganapavaram and Nandan Mandayam NEW DELHI (Reuters) - Prime Minister Narendra Modi's high-profile attendance at a global airlines conference this week underscores how much India is banking on a boom in aviation to support wider development goals, but headwinds to its ambitions are gathering force. Undeterred by the uncertainty gripping the aviation sector globally due to trade tensions and shaky consumer confidence, India's biggest airlines are ploughing ahead with orders for new planes, following record deals two years ago. However, the rapid pace of growth risks losing steam if plane shortages, infrastructure challenges and taxation issues are not addressed, industry officials warned at the International Air Transport Association's annual meeting. Hostilities with neighbour Pakistan are also causing Indian airlines to take large, expensive detours around Pakistani airspace, requiring more fuel and passenger care. Carriers have asked the Indian government to waive some fees and provide tax exemptions, people familiar with the matter have told Reuters, but it is not clear if it will provide any help, despite its high-flying rhetoric. New Delhi says it wants India to be a job-creating global aviation hub along the lines of Dubai, which currently handles much of India's international traffic. "In the coming years, the aviation sector is expected to be at the centre of massive transformation and innovation, and India is ready to embrace these possibilities," Modi told global aviation leaders on Monday. But the transformation will require billions of dollars of investment in airports and industry supply chains, and a revamp of regulations, industry officials said. PUNCHING BELOW ITS WEIGHT The numbers look promising. IATA forecasts passenger traffic in India will triple over the next 20 years and the country has set a target of increasing the number of airports to as many as 400 by 2047, up from 157 in 2024. "We are fast emerging as a strategic connector country ... India is a natural connector of the skies and aviation as well," India's Civil Aviation minister Ram Mohan Naidu told global airline CEOs in New Delhi. Already the world's third-largest aviation market by seats after the U.S. and China, there is significant potential for India to grow. The world's most populous nation, India accounts for around 17.8% of people but only 4.2% of global air passengers, according to IATA. A record 174 million Indian domestic and international passengers flew in 2024, compared to 730 million in China, IATA data shows. "The outlook is potentially a very positive one for both the Indian economy and air transport industry. However, such outcomes are not guaranteed," IATA said in a report on the Indian market. Industry executives and analysts said more work lies ahead in scaling aviation-related infrastructure, updating rules, lowering taxes and making life easier for airlines. "Even the regulators will agree that they need to update their regulation, because there is a reason why India is not punching above its weight. In fact, it is punching very much below its weight," Association of Asia Pacific Airlines Director General Subhas Menon said. Dubai-based Emirates, for example, says capacity restrictions on foreign airlines need to be relaxed for the industry to reach its full growth potential. "For every seat we offer, particularly in the peaks, we've got three to 10 people trying to get it," Emirates President Tim Clark told reporters. Among other problems, India lacks enough domestic maintenance, repair and overhaul facilities to care for its fleet, making it overly dependent on foreign shops at a time of stiff competition for repair slots, particularly for engines. Global airlines have aircraft sitting on the ground because there aren't enough facilities available for servicing them, IATA Director General Willie Walsh said. "I think airframe maintenance is a huge opportunity for India because you require labour and you require skills. And that's something that I know India is investing in," Walsh said, in response to a Reuters question at a press conference. Airline growth globally is being tempered by extended delays to deliveries of new, more fuel-efficient planes due to supply chain issues. India's largest airline IndiGo has been leasing aircraft to allow it to expand internationally while it waits for new planes. This week it partnered with Air France-KLM, Virgin Atlantic and Delta to extend the reach of IndiGo tickets using those airlines' networks.
Yahoo
03-06-2025
- Business
- Yahoo
Modi's soaring Indian aviation ambitions face many headwinds
By Abhijith Ganapavaram and Nandan Mandayam NEW DELHI (Reuters) - Prime Minister Narendra Modi's high-profile attendance at a global airlines conference this week underscores how much India is banking on a boom in aviation to support wider development goals, but headwinds to its ambitions are gathering force. Undeterred by the uncertainty gripping the aviation sector globally due to trade tensions and shaky consumer confidence, India's biggest airlines are ploughing ahead with orders for new planes, following record deals two years ago. However, the rapid pace of growth risks losing steam if plane shortages, infrastructure challenges and taxation issues are not addressed, industry officials warned at the International Air Transport Association's annual meeting. Hostilities with neighbour Pakistan are also causing Indian airlines to take large, expensive detours around Pakistani airspace, requiring more fuel and passenger care. Carriers have asked the Indian government to waive some fees and provide tax exemptions, people familiar with the matter have told Reuters, but it is not clear if it will provide any help, despite its high-flying rhetoric. New Delhi says it wants India to be a job-creating global aviation hub along the lines of Dubai, which currently handles much of India's international traffic. "In the coming years, the aviation sector is expected to be at the centre of massive transformation and innovation, and India is ready to embrace these possibilities," Modi told global aviation leaders on Monday. But the transformation will require billions of dollars of investment in airports and industry supply chains, and a revamp of regulations, industry officials said. PUNCHING BELOW ITS WEIGHT The numbers look promising. IATA forecasts passenger traffic in India will triple over the next 20 years and the country has set a target of increasing the number of airports to as many as 400 by 2047, up from 157 in 2024. "We are fast emerging as a strategic connector country ... India is a natural connector of the skies and aviation as well," India's Civil Aviation minister Ram Mohan Naidu told global airline CEOs in New Delhi. Already the world's third-largest aviation market by seats after the U.S. and China, there is significant potential for India to grow. The world's most populous nation, India accounts for around 17.8% of people but only 4.2% of global air passengers, according to IATA. A record 174 million Indian domestic and international passengers flew in 2024, compared to 730 million in China, IATA data shows. "The outlook is potentially a very positive one for both the Indian economy and air transport industry. However, such outcomes are not guaranteed," IATA said in a report on the Indian market. Industry executives and analysts said more work lies ahead in scaling aviation-related infrastructure, updating rules, lowering taxes and making life easier for airlines. "Even the regulators will agree that they need to update their regulation, because there is a reason why India is not punching above its weight. In fact, it is punching very much below its weight," Association of Asia Pacific Airlines Director General Subhas Menon said. Dubai-based Emirates, for example, says capacity restrictions on foreign airlines need to be relaxed for the industry to reach its full growth potential. "For every seat we offer, particularly in the peaks, we've got three to 10 people trying to get it," Emirates President Tim Clark told reporters. Among other problems, India lacks enough domestic maintenance, repair and overhaul facilities to care for its fleet, making it overly dependent on foreign shops at a time of stiff competition for repair slots, particularly for engines. Global airlines have aircraft sitting on the ground because there aren't enough facilities available for servicing them, IATA Director General Willie Walsh said. "I think airframe maintenance is a huge opportunity for India because you require labour and you require skills. And that's something that I know India is investing in," Walsh said, in response to a Reuters question at a press conference. Airline growth globally is being tempered by extended delays to deliveries of new, more fuel-efficient planes due to supply chain issues. India's largest airline IndiGo has been leasing aircraft to allow it to expand internationally while it waits for new planes. This week it partnered with Air France-KLM, Virgin Atlantic and Delta to extend the reach of IndiGo tickets using those airlines' networks. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Yahoo
IndiGo flight facing severe weather was denied diversion requests, India says
By Nandan Mandayam and Abhijith Ganapavaram (Reuters) -An IndiGo passenger plane attempting to avoid severe weather en route to Indian Kashmir was denied permission to divert towards Pakistan by both the Indian Air Force and Pakistan, India's aviation regulator said on Friday. No passengers were injured when the flight from India's capital Delhi to the northern Indian city of Srinagar was forced to fly through a hailstorm. But a post-landing inspection revealed damage to the aircraft's nose, the Directorate General of Civil Aviation (DGCA) said in a statement, adding that the incident was under investigation. An image shared by the Times of India newspaper on the social media platform X showed a large hole in the front of the aircraft, while a video also circulating on the site showed passengers screaming and praying during the turbulence. Reuters could not immediately verify the authenticity of the video. The incident highlights the risks commercial airlines and passengers face after tensions between India and Pakistan led the two nuclear-armed neighbours to close their airspaces to each other's airlines last month. The Airbus A321neo, which typically has seating capacity for 180 to 220 passengers, was first denied a request to turn towards the India-Pakistan border by the Indian Air Force, the regulator said, without specifying the reason. The IAF did not immediately respond to a request for comment. The flight crew then contacted the city of Lahore in Pakistan requesting entry into Pakistan's airspace, but that was also denied, the DGCA said. A spokesperson for the Pakistan Civil Aviation Authority declined to comment. The crew of flight 6E 2142 then flew through the storm, choosing the shortest route to Srinagar, the summer capital of Indian Kashmir. "The flight and cabin crew followed established protocol and the aircraft landed safely in Srinagar," IndiGo said in a statement. It later said the aircraft was undergoing checks in Srinagar and would resume operations once clearances had been secured. Tensions flared between India and Pakistan following a deadly attack on tourists in Indian Kashmir in April, eventually triggering the two neighbours' worst military conflict in nearly three decades. The two countries declared a truce earlier this month. Their airspaces, however, remain closed to each other's airlines. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
23-05-2025
- The Star
IndiGo flight facing severe weather was denied diversion requests, India says
(Reuters) -An IndiGo passenger plane attempting to avoid severe weather en route to Indian Kashmir was denied permission to divert towards Pakistan by both the Indian Air Force and Pakistan, India's aviation regulator said on Friday. No passengers were injured when the flight from India's capital Delhi to the northern Indian city of Srinagar was forced to fly through a hailstorm. But a post-landing inspection revealed damage to the aircraft's nose, the Directorate General of Civil Aviation (DGCA) said in a statement, adding that the incident was under investigation. An image shared by the Times of India newspaper on the social media platform X showed a large hole in the front of the aircraft, while a video also circulating on the site showed passengers screaming and praying during the turbulence. Reuters could not immediately verify the authenticity of the video. The incident highlights the risks commercial airlines and passengers face after tensions between India and Pakistan led the two nuclear-armed neighbours to close their airspaces to each other's airlines last month. The Airbus A321neo, which typically has seating capacity for 180 to 220 passengers, was first denied a request to turn towards the India-Pakistan border by the Indian Air Force, the regulator said, without specifying the reason. The IAF did not immediately respond to a request for comment. The flight crew then contacted the city of Lahore in Pakistan requesting entry into Pakistan's airspace, but that was also denied, the DGCA said. A spokesperson for the Pakistan Civil Aviation Authority declined to comment. The crew of flight 6E 2142 then flew through the storm, choosing the shortest route to Srinagar, the summer capital of Indian Kashmir. "The flight and cabin crew followed established protocol and the aircraft landed safely in Srinagar," IndiGo said in a statement. It later said the aircraft was undergoing checks in Srinagar and would resume operations once clearances had been secured. Tensions flared between India and Pakistan following a deadly attack on tourists in Indian Kashmir in April, eventually triggering the two neighbours' worst military conflict in nearly three decades. The two countries declared a truce earlier this month. Their airspaces, however, remain closed to each other's airlines. (Reporting by Nandan Mandayam in Bengaluru, Abhijith Ganapavaram in New Delhi and Ariba Shahid in Karachi; Editing by Joe Bavier)
