Latest news with #RajivBajaj
India Today
9 hours ago
- Automotive
- India Today
China's rare-earth curbs hit Indian auto industry
(NOTE: This article was originally published in the India Today issue dated June 16, 2025)The US-China tariff war may have ostensibly eased into a softer phase of negotiations, but one stealth missile fired by China in its early days has only hit home now. The potential fallout is global, and India is very much within range. On April 4, two days after President Donald Trump's tariff blitz, Beijing had hit back by calling halt to its export of rare earth magnets. China controls over 90 per cent of the global processing capacity for this key component, used in everything from automobiles and fighter jets to robotics and home appliances. As it leverages this monopoly by slow-rolling licences, stockpiles everywhere are falling as rapidly as alarm is imported 870 tonnes of these magnets worth over Rs 300 crore in FY25, mostly from China, as domestic production capacity remains negligible. Now, though, Chinese exporters must themselves obtain government licences, furnishing detailed end-use certificates from Indian buyers, before shipping. The certificates need to be signed by India's foreign ministry and the Chinese embassy, apparently to ensure the end-use is not military. This knot has held up clearances and shipments. Industry sources say over 30 applications approved in India are already pending final clearance in China. AUTO SECTOR IN A BIND It has been a month since China put this squeeze on exports, and whatever inventory Indian auto companies had as a buffer is fast getting depleted and may dry up by June-end. Rare earth magnets, particularly neodymium-iron-boron ones, are essential in electric as well as conventional vehicles—they go into motors, steering, brakes, wipers and audio equipment. With no clarity on normalisation of imports, manufacturers are staring at a significant cut in groups are in some panic. A joint delegation comprising representatives from the Society of Indian Automobile Manufacturers and the Automotive Component Manufacturers Association is set to meet senior Chinese government officials to accelerate approvals and restore supply.'For some of these EV components, the whole supply chain resides in this doesn't change, the entire Indian EV industry will grind to a halt,' Rajiv Bajaj, chairman, Bajaj Auto, had warned in late April. On June 4, Rajan Wadhera, former president of Mahindra & Mahindra Auto and of industry body SIAM, wrote to Union heavy industries minister H.D. Kumaraswamy about the need to '...adopt a diversified, multi-pathway approach' since these magnets are 'indispensable to EVs', nearly 3 kg being needed per vehicle, against 100 grams in a conventional vehicle. 'The ban will begin to impact production by June-July,' says Sudarshan Venu, MD, TVS Motor. 'We're actively exploring ways to de-risk the situation, but there could be cost increases down the line.'A rare earth magnet, made from one of the 17 rare earth elements (lanthanide series, scandium, yttrium), is far superior to other industrial magnets. Rare earth metals aren't 'rare' as such, and are relatively abundant in the Earth's crust. However, they aren't found in pure concentrations, making it economically challenging to mine DOMINANCEChina produces 140,000 tonnes of rare earth metals annually, with the US a distant second, at 38,000 tonnes. In comparison, India's rare earths production capacity, mostly through state-owned IREL (formerly Indian Rare Earths Ltd), is just over 5,000 the new restrictions, several consignments are reportedly stranded at Chinese ports. Gaurav Vaangal, principal analyst with S&P Global in India, says the impact of China's clampdown can be mitigated by 'optimising the product mix to ensure production lines remain operational'. That said, continuous monitoring is essential, as the production line could experience significant disruptions—initially affecting EV components and later extending to ICE (internal combustion engine) parts, potentially leading to serious production challenges, he concedes. That challenge may hit the accelerator before solutions catch to India Today MagazineMust Watch
Economic Times
19-05-2025
- Automotive
- Economic Times
Bajaj Auto shares up 1% as Rs 5,427 crore loan aids KTM bailout ahead of key deadline
Bajaj steps up support Live Events Ownership structure & outlook Share price and technicals (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Bajaj Auto rallied over 1% on Monday, after its Netherlands-based investment arm raised Rs 5,426.5 crore through unsecured loans to support the restructuring of KTM AG , the bankrupt Austrian motorcycle maker in which it holds a 49.9% stake. Bajaj Auto International Holdings BV , a wholly owned subsidiary of Bajaj Auto, has signed loan agreements worth €566 million with JPMorgan Chase, DBS Bank, and Citigroup Global Markets Asia. According to an exchange filing on Friday, the loans are unsecured and have a one-year term. The funds will be used to support the investment vehicle's activities, ahead of a critical May 23 deadline by which KTM must pay creditors €548 million to avoid funding marks the latest step in a series of interventions by Bajaj Auto to keep KTM afloat. The Austrian bikemaker filed for bankruptcy on November 29, 2024, after amassing billions of euros in debt, driven by its acquisition of MV Agusta and heavy investments in its MotoGP operations. A collapse in two-wheeler demand in Europe around the same time exacerbated the company's February 21, 2025, Bajaj Auto had infused €150 million into its investment arm, of which €50 million was extended as a loan to KTM AG to restart operations. Subsequently, KTM's creditors approved a restructuring plan on February 25, which mandated a cash contribution of €548 million by May resumed production at its Mattighofen plant on March 17. This was followed by two more infusions of €50 million each from Bajaj Auto International Holdings on March 31 and April 3, issued in the form of convertible bonds. On May 15, Bajaj Auto invested an additional €125 million into its investment arm, with €50 million immediately directed into total, Bajaj Auto has committed €200 million to KTM since the bankruptcy is held through a layered structure. Pierer Bajaj AG, a joint venture between Stefan Pierer and Bajaj Auto International Holdings, owns 74.9% of Pierer Mobility AG, the Vienna-listed entity that is KTM AG's immediate parent. Bajaj Auto Managing Director Rajiv Bajaj sits on the board of Pierer Bajaj AG itself controls brands such as KTM, Husqvarna, and GasGas, along with the MotoGP racing remains unclear whether Bajaj Auto will seek a majority stake in KTM or bring in an outside investor to acquire Stefan Pierer's 50.1% stake in their joint venture. Clarity is expected when Bajaj Auto reports its fourth-quarter earnings on May Friday, shares of Bajaj Auto rose 1.91% to Rs 8,487.15 on the BSE. The stock has gained 10.4% in the last week but is down 3.8% over the past year and 11% in the past six indicators are mixed. The stock is trading above six of its eight key simple moving averages but remains below its 150-day and 200-day SMAs. The 14-day Relative Strength Index stands at 64.7, suggesting it is approaching overbought territory.
Time of India
19-05-2025
- Automotive
- Time of India
Bajaj Auto shares in focus as Rs 5,427 crore loan aids KTM bailout ahead of key deadline
Shares of Bajaj Auto are set to be in focus on Monday, after its Netherlands-based investment arm raised Rs 5,426.5 crore through unsecured loans to support the restructuring of KTM AG , the bankrupt Austrian motorcycle maker in which it holds a 49.9% stake. Bajaj Auto International Holdings BV , a wholly owned subsidiary of Bajaj Auto, has signed loan agreements worth €566 million with JPMorgan Chase, DBS Bank, and Citigroup Global Markets Asia. According to an exchange filing on Friday, the loans are unsecured and have a one-year term. The funds will be used to support the investment vehicle's activities, ahead of a critical May 23 deadline by which KTM must pay creditors €548 million to avoid liquidation. The funding marks the latest step in a series of interventions by Bajaj Auto to keep KTM afloat. The Austrian bikemaker filed for bankruptcy on November 29, 2024, after amassing billions of euros in debt, driven by its acquisition of MV Agusta and heavy investments in its MotoGP operations. A collapse in two-wheeler demand in Europe around the same time exacerbated the company's troubles. Bajaj steps up support On February 21, 2025, Bajaj Auto had infused €150 million into its investment arm, of which €50 million was extended as a loan to KTM AG to restart operations. Subsequently, KTM's creditors approved a restructuring plan on February 25, which mandated a cash contribution of €548 million by May 23. KTM resumed production at its Mattighofen plant on March 17. This was followed by two more infusions of €50 million each from Bajaj Auto International Holdings on March 31 and April 3, issued in the form of convertible bonds. On May 15, Bajaj Auto invested an additional €125 million into its investment arm, with €50 million immediately directed into KTM. In total, Bajaj Auto has committed €200 million to KTM since the bankruptcy filing. Ownership structure & outlook KTM is held through a layered structure. Pierer Bajaj AG, a joint venture between Stefan Pierer and Bajaj Auto International Holdings, owns 74.9% of Pierer Mobility AG, the Vienna-listed entity that is KTM AG's immediate parent. Bajaj Auto Managing Director Rajiv Bajaj sits on the board of Pierer Bajaj AG. KTM AG itself controls brands such as KTM, Husqvarna, and GasGas, along with the MotoGP racing team. It remains unclear whether Bajaj Auto will seek a majority stake in KTM or bring in an outside investor to acquire Stefan Pierer's 50.1% stake in their joint venture. Clarity is expected when Bajaj Auto reports its fourth-quarter earnings on May 29. Share price and technicals On Friday, shares of Bajaj Auto rose 1.91% to Rs 8,487.15 on the BSE. The stock has gained 10.4% in the last week but is down 3.8% over the past year and 11% in the past six months. Technical indicators are mixed. The stock is trading above six of its eight key simple moving averages but remains below its 150-day and 200-day SMAs. The 14-day Relative Strength Index stands at 64.7, suggesting it is approaching overbought territory. Also read | Nifty likely to advance towards 25,200-25,800: Analysts ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Yahoo
19-03-2025
- Business
- Yahoo
Indian shares may open higher; metals in focus
(Reuters) - Indian equities may extend their recent rebound to the third straight session on Wednesday, but caution ahead of the U.S. Federal Reserve's policy decision may keep a lid on gains. The GIFT Nifty futures were trading at 22,953.00 as of 08:14 a.m. IST, indicating that the blue-chip Nifty 50 will likely open above Tuesday's close of 22,834.30. The 50-stock index logged its best day in six weeks on Tuesday, closing near one-month highs, on bargain hunting in beaten-down stocks. The index is still 13% below the record high hit in late September 2024. Foreign portfolio investors (FPIs) turned buyers on Tuesday for the first time in March and only the fourth time in 2025, per provisional data. Asian markets were mixed in early trade on the day, with the MSCI Asia ex Japan trading flat, ahead of the Fed's decision due after India market hours. [MKTS/GLOB] While the Fed is expected to keep interest rates steady, investors will closely watch its commentary on the U.S. economy and future rate actions to assess the impact of changes in U.S. trade policies. U.S. President Donald Trump's tariffs are expected to fan inflation and slow down the world's largest economy. India's metal stocks will be in focus after the government recommended a temporary tax of 12% on some steel products for 200 days to protect the domestic industry from cheaper imports. CLSA said that the duty and domestic prices in line with import parity will add to the multiple positive catalysts for the sector, such as improving demand outlook due to China stimulus hopes and a rise in capex in Europe. STOCKS TO WATCH ** CLSA says it prefers Hindalco and Vedanta among metal stocks and raises target prices of JSW Steel, Tata Steel on improved outlook and safeguard duties ** Life Insurance Corporation of India says it's still in advanced talks to acquire a stake in a health insurance company and hopes to decide on the stake buy by March-end ** Bajaj Auto approves reappointment of Rajiv Bajaj as managing director and chief executive officer for five years starting from April 1 ** Zydus Lifescieces gets final approval from U.S. drug regulator for a drug used to treat patients with prostate cancer Sign in to access your portfolio
Reuters
19-03-2025
- Business
- Reuters
Indian shares may open higher; metals in focus
March 19 (Reuters) - Indian equities may extend their recent rebound to the third straight session on Wednesday, but caution ahead of the U.S. Federal Reserve's policy decision may keep a lid on gains. The GIFT Nifty futures were trading at 22,953.00 as of 08:14 a.m. IST, indicating that the blue-chip Nifty 50 (.NSEI), opens new tab will likely open above Tuesday's close of 22,834.30. The 50-stock index logged its best day in six weeks on Tuesday, closing near one-month highs, on bargain hunting in beaten-down stocks. The index is still 13% below the record high hit in late September 2024. Foreign portfolio investors (FPIs) turned buyers on Tuesday for the first time in March and only the fourth time in 2025, per provisional data. Asian markets were mixed in early trade on the day, with the MSCI Asia ex Japan (.MIAPJ0000PUS), opens new tab trading flat, ahead of the Fed's decision due after India market hours. While the Fed is expected to keep interest rates steady, investors will closely watch its commentary on the U.S. economy and future rate actions to assess the impact of changes in U.S. trade policies. U.S. President Donald Trump's tariffs are expected to fan inflation and slow down the world's largest economy. India's metal stocks will be in focus after the government recommended a temporary tax of 12% on some steel products for 200 days to protect the domestic industry from cheaper imports. CLSA said that the duty and domestic prices in line with import parity will add to the multiple positive catalysts for the sector, such as improving demand outlook due to China stimulus hopes and a rise in capex in Europe. STOCKS TO WATCH ** CLSA says it prefers Hindalco ( opens new tab and Vedanta ( opens new tab among metal stocks and raises target prices of JSW Steel ( opens new tab, Tata Steel ( opens new tab on improved outlook and safeguard duties ** Life Insurance Corporation of India ( opens new tab says it's still in advanced talks to acquire a stake in a health insurance company and hopes to decide on the stake buy by March-end ** Bajaj Auto ( opens new tab approves reappointment of Rajiv Bajaj as managing director and chief executive officer for five years starting from April 1 ** Zydus Lifescieces ( opens new tab gets final approval from U.S. drug regulator for a drug used to treat patients with prostate cancer
