Latest news with #SocietyofIndianAutomobileManufacturers
Malaysia Sun
7 hours ago
- Automotive
- Malaysia Sun
Indian auto industry may face disruption amid China's stricter Rare Earth export controls: Report
New Delhi [India], June 10 (ANI): The Indian automobile industry is expected to face disruptions following China's decision to tighten export controls on rare earth elements (REEs), which are critical in manufacturing chips used in automobiles, according to a report by Emkay Research. The report mentioned that China, which accounts for over 70 per cent of global REE production and controls more than 90 per cent of refining capacity, imposed stricter export regulations on several REEs from April 2025, citing national security and non-proliferation concerns. The report said 'The licensing for exports has become significantly longer. These delays have led to supply uncertainty across sectors reliant on these critical inputs'. It pointed out that electric passenger vehicles (E-PVs) and internal combustion engine passenger vehicles (ICE-PVs) are the most vulnerable within the Indian auto industry. Electric vehicles (EVs), passenger vehicles (PVs), two-wheelers (2Ws), and commercial vehicles (CVs), in that order, are likely to face the maximum disruption. High-performance EV motors, teh report said, require heavy rare earth elements (HREEs) such as dysprosium and terbium to maintain efficiency at high operating temperatures. For electric two-wheelers (E-2Ws), magnets used in motors cost around Rs 150, while in PVs the cost varies from Rs 2,000 to Rs 24,000 depending on the features. However, the issue is not just about cost but the availability of these critical components and the limited options for alternative sourcing. While ICE 2Ws and 3Ws remain relatively unaffected in the short term, E-2Ws that use permanent magnet synchronous motors (PMSMs) are more vulnerable because of their limited design flexibility. As per report, while E-2Ws may undergo design changes in a short time (2-3 months), PVs and buses may require 6-12 months for complete motor redesigns due to stricter performance and space requirements. According to the Society of Indian Automobile Manufacturers (SIAM), ICE-PV production could face cuts starting July 2025, while existing E-2W inventories may last only another 1 to 1.5 months unless alternative sourcing arrangements are made. Although countries like Brazil and Australia hold substantial REE reserves, with Brazil alone having 20 per cent of global reserves, China continues to exert significant financial and operational control over many of these resources. Chinese companies also hold stakes in Brazilian mines. In addition, while Vietnam and Malaysia host some refining capacity, they largely lack access to primary raw materials and remain dependent on China. The tightening of export controls by China is likely to create ripple effects across the global supply chain, with India's auto sector bracing for a challenging period ahead. (ANI)
Time of India
10 hours ago
- Automotive
- Time of India
Petrol's popularity runs out of gas in FY25 as CNG's market share more than triples in 5 years
Car buyers in India are increasingly opting for compressed natural gas (CNG)-powered vehicles amid high fuel prices and increased choices in a sluggish market. The share of CNG models in total passenger vehicle sales more than tripled in five years to 19.5per cent last fiscal—pulling ahead of diesel cars—from 6.3per cent in 2019-20. The share of petrol cars fell sharply to 57.7per cent from 76.3per cent during the same period, attesting this pronounced shift, while diesel car sales have remained largely constant at about 17-19per cent in this period, shows data from industry body Society of Indian Automobile Manufacturers (SIAM). And in the ongoing fiscal, for the first time, more than one million CNG cars, sedans and SUVs are expected to be sold—an increase of about 20per cent over 839,000 units sold in FY25. This while total car sales are expected to inch up by 1-2per cent in FY26, according to industry estimates. 'This is one category which has surprised everyone,' said Vivek Srivatsa, chief commercial officer at Tata Passenger Electric Mobility (TPEM) who also oversees Tata Motors ' PV (internal combustion engine) operations. Wide Range of Product Offerings 'It is growing in a robust manner, with availability improving,' according to TPEM's Srivatsa. The growth is largely driven by individual buyers even as the taxi segment accounts for about one-fifth of CNG car sales , as per industry estimates. Industry watchers attribute this to high prices of petrol and diesel fuel, increased network of CNG stations, and a wide range of product offerings from carmakers including Maruti Suzuki , Hyundai Motor, Tata Motors and Nissan. The number of vehicles with CNG variants more than doubled to 25 in FY25 from 11 in FY21, according to industry estimates. Union petroleum and natural gas minister Hardeep Singh Puri recently said the number of CNG retail outlets has increased 20 times in the last decade. The government is working on increasing the number of CNG dispensing stations across the country and is targeting having 17,500 CNG pumps in place by 2030, up from 7,400 in 2025. While the government is promoting electric vehicles (EVs) with various incentives to reduce carbon emissions and dependence on imported fossil fuels, car buyers mostly prefer CNG due to lower purchase compared to EVs, and an extensive network of CNG stations. While EVs boast lower running costs, CNG is considerably cheaper than petrol and diesel. A common drawback of CNG vehicles is reduced boot space due to the CNG cylinder. Carmakers like Tata Motors and Hyundai have come up with a twin cylinder solution for this. They have replaced the large CNG cylinder with two thin cylinders with equal capacity to offer more boot space. 'With the reducing life of diesel as mandated by NGT (National Green Tribunal), which is now gaining more traction in more states beyond Delhi-NCR, more and more customers are beginning to invest in other fuel options and preferences are changing fast,' said Saurabh Vatsa, managing director of Nissan Motor India. The Japanese carmaker last month started offering an alternate fuel option in the form of a government-approved CNG retrofitment kit . 'I think it's really important that we continue to focus on what is environmentally friendlier and easier to manage without denting the pocket of the consumer,' Vatsa said. Some of the popular CNG models in India include Maruti WagonR, Hyundai Exter and Tata Punch. 'Our CNG car sales in India reached over 600,000 units last year, and this year we hope to reach around 700,000 units,' R C Bhargava, chairman of Maruti Suzuki, said recently. CNG cars accounted for one in every three cars (34%) that the country's leading carmaker sold in FY25, when its sales touched 1.76 million units. 'CNG has emerged as a very good option for consumers at the entry-level, for all vehicles priced less than ₹11 lakh,' said Tarun Garg, chief operating officer (COO) of Hyundai Motor India.
India Gazette
14 hours ago
- Automotive
- India Gazette
Indian auto industry may face disruption amid China's stricter Rare Earth export controls: Report
New Delhi [India], June 10 (ANI): The Indian automobile industry is expected to face disruptions following China's decision to tighten export controls on rare earth elements (REEs), which are critical in manufacturing chips used in automobiles, according to a report by Emkay Research. The report mentioned that China, which accounts for over 70 per cent of global REE production and controls more than 90 per cent of refining capacity, imposed stricter export regulations on several REEs from April 2025, citing national security and non-proliferation concerns. The report said 'The licensing for exports has become significantly longer. These delays have led to supply uncertainty across sectors reliant on these critical inputs'. It pointed out that electric passenger vehicles (E-PVs) and internal combustion engine passenger vehicles (ICE-PVs) are the most vulnerable within the Indian auto industry. Electric vehicles (EVs), passenger vehicles (PVs), two-wheelers (2Ws), and commercial vehicles (CVs), in that order, are likely to face the maximum disruption. High-performance EV motors, teh report said, require heavy rare earth elements (HREEs) such as dysprosium and terbium to maintain efficiency at high operating temperatures. For electric two-wheelers (E-2Ws), magnets used in motors cost around Rs 150, while in PVs the cost varies from Rs 2,000 to Rs 24,000 depending on the features. However, the issue is not just about cost but the availability of these critical components and the limited options for alternative sourcing. While ICE 2Ws and 3Ws remain relatively unaffected in the short term, E-2Ws that use permanent magnet synchronous motors (PMSMs) are more vulnerable because of their limited design flexibility. As per report, while E-2Ws may undergo design changes in a short time (2-3 months), PVs and buses may require 6-12 months for complete motor redesigns due to stricter performance and space requirements. According to the Society of Indian Automobile Manufacturers (SIAM), ICE-PV production could face cuts starting July 2025, while existing E-2W inventories may last only another 1 to 1.5 months unless alternative sourcing arrangements are made. Although countries like Brazil and Australia hold substantial REE reserves, with Brazil alone having 20 per cent of global reserves, China continues to exert significant financial and operational control over many of these resources. Chinese companies also hold stakes in Brazilian mines. In addition, while Vietnam and Malaysia host some refining capacity, they largely lack access to primary raw materials and remain dependent on China. The tightening of export controls by China is likely to create ripple effects across the global supply chain, with India's auto sector bracing for a challenging period ahead. (ANI)
Time of India
16 hours ago
- Automotive
- Time of India
Petrol's popularity runs out of gas in FY25 as CNG's market share more than triples in 5 years
Car buyers in India are increasingly opting for compressed natural gas (CNG)-powered vehicles amid high fuel prices and increased choices in a sluggish market. The share of CNG models in total passenger vehicle sales more than tripled in five years to 19.5per cent last fiscal—pulling ahead of diesel cars—from 6.3per cent in 2019-20. The share of petrol cars fell sharply to 57.7per cent from 76.3per cent during the same period, attesting this pronounced shift, while diesel car sales have remained largely constant at about 17-19per cent in this period, shows data from industry body Society of Indian Automobile Manufacturers (SIAM). And in the ongoing fiscal, for the first time, more than one million CNG cars, sedans and SUVs are expected to be sold—an increase of about 20per cent over 839,000 units sold in FY25. This while total car sales are expected to inch up by 1-2per cent in FY26, according to industry estimates. 'This is one category which has surprised everyone,' said Vivek Srivatsa, chief commercial officer at Tata Passenger Electric Mobility (TPEM) who also oversees Tata Motors ' PV (internal combustion engine) operations. Wide Range of Product Offerings 'It is growing in a robust manner, with availability improving,' according to TPEM's Srivatsa. The growth is largely driven by individual buyers even as the taxi segment accounts for about one-fifth of CNG car sales , as per industry estimates. Industry watchers attribute this to high prices of petrol and diesel fuel, increased network of CNG stations, and a wide range of product offerings from carmakers including Maruti Suzuki , Hyundai Motor, Tata Motors and Nissan. The number of vehicles with CNG variants more than doubled to 25 in FY25 from 11 in FY21, according to industry estimates. Union petroleum and natural gas minister Hardeep Singh Puri recently said the number of CNG retail outlets has increased 20 times in the last decade. The government is working on increasing the number of CNG dispensing stations across the country and is targeting having 17,500 CNG pumps in place by 2030, up from 7,400 in 2025. While the government is promoting electric vehicles (EVs) with various incentives to reduce carbon emissions and dependence on imported fossil fuels, car buyers mostly prefer CNG due to lower purchase compared to EVs, and an extensive network of CNG stations. While EVs boast lower running costs, CNG is considerably cheaper than petrol and diesel. A common drawback of CNG vehicles is reduced boot space due to the CNG cylinder. Carmakers like Tata Motors and Hyundai have come up with a twin cylinder solution for this. They have replaced the large CNG cylinder with two thin cylinders with equal capacity to offer more boot space. 'With the reducing life of diesel as mandated by NGT (National Green Tribunal), which is now gaining more traction in more states beyond Delhi-NCR, more and more customers are beginning to invest in other fuel options and preferences are changing fast,' said Saurabh Vatsa, managing director of Nissan Motor India. The Japanese carmaker last month started offering an alternate fuel option in the form of a government-approved CNG retrofitment kit . 'I think it's really important that we continue to focus on what is environmentally friendlier and easier to manage without denting the pocket of the consumer,' Vatsa said. Some of the popular CNG models in India include Maruti WagonR, Hyundai Exter and Tata Punch. 'Our CNG car sales in India reached over 600,000 units last year, and this year we hope to reach around 700,000 units,' R C Bhargava, chairman of Maruti Suzuki, said recently. CNG cars accounted for one in every three cars (34%) that the country's leading carmaker sold in FY25, when its sales touched 1.76 million units. 'CNG has emerged as a very good option for consumers at the entry-level, for all vehicles priced less than ₹11 lakh,' said Tarun Garg, chief operating officer (COO) of Hyundai Motor India.
Time of India
a day ago
- Automotive
- Time of India
SIAM hosts conference on circular mobility on World Environment Day
The Society of Indian Automobile Manufacturers (SIAM) held its 5th International Conference on the occasion of World Environment Day , focusing on circular mobility and sustainable practices in the automotive sector . The event featured discussions across government, industry and research stakeholders on waste management, plastic reduction , recycling, and low-emission technologies. The programme included a street play on plastic pollution by school students and a prize ceremony for a student painting competition titled Nature's Palette, recognising nine participants from Delhi NCR. Industry and policy interventions The inaugural session centred around waste management aligned with Mission LiFE. Shailesh Chandra, President of SIAM and Managing Director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, outlined three key requirements to support the circular economy: a robust policy framework for lightweighting and lifecycle management, an incentive-based scrappage ecosystem, and improved recycling infrastructure. Hanif Qureshi, Additional Secretary, Ministry of Heavy Industries, said India had reached 20 per cent ethanol blending and that 11 companies were developing flex-fuel engines . He also announced the launch of an electric truck programme, backed by ₹500 crore, and confirmed that India would deploy 14,000 electric buses. Other initiatives include promoting electric ambulances, compressed biogas, hydrogen and flex-fuel vehicles. Sector-focused technical sessions Three thematic sessions were also conducted during the event-- Plastic and Materials Circularity, Tyre and Oil Recycling and Battery and E-Waste SIAM Executive Director Prashant K. Banerjee said the automotive sector was progressing across electrification, biofuels and hydrogen-based transport. Director General Rajesh Menon reaffirmed SIAM's commitment to cleaner mobility and circularity.
