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TABLE OF CONTENTS
1. SECTOR OVERVIEW ........................................................................................................... 3
2. SECTOR SNAPSHOT: SALES ............................................................................................. 8
2.1. PASSENGER VEHICLE ................................................................................................... 8
2.2. COMMERCIAL VEHICLE ................................................................................................ 9
2.3. TWO-WHEELER ............................................................................................................ 10
2.4. THREE WHEELER ......................................................................................................... 11
3. REGULATORY UPDATES .................................................................................................. 12
4. TECHNOLOGY ................................................................................................................... 14
5. INTERNATIONAL NEWS ................................................................................................... 17
6. DISCLAIMER ...................................................................................................................... 19
7. CONTACT INFORMATION ............................................................................................... 19
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1. SECTOR OVERVIEW
Changing auto industry scenario: Will India be a part in the revolution or not?
As the global automotive industry is moving and electrification is catching up the world’s economy may change from being oil-driven to
lithium, cobalt in the coming years. With the evolution of the vehicles technology companies are making ways to enter the automobile
industry which will lead to a new era of regulations and challenges with a view of seeing new forms of mobility in the future. China with the
fourth-largest cobalt reserve along with the highest reserves of lithium in the world make it one of the largest EV and automobile market in
the world. And in order to grow in future China has to venture out as the local markets have seen a shortage in the demand. Along with
China other countries such as Argentina, Brazil and Chile also have high reserves of new age crucial raw material to their advantage. India
got some advantage in the automobile landscape but the only disadvantage it faces is the lack of lithium and cobalt reserves and it needs
to take necessary steps to fulfil this issue. There is also 28% goods and service tax on the import of this crucial item being imposed.
Recently, Argentina showed interest in helping India by providing them with lithium but there is still no official collaboration between India
and any other country yet. The other important raw material cobalt which is also very low in reserves and is being only accessible from
states like Nagaland, Jharkhand and Orissa.
India with its strong emerging market along with is disposable income at the hands of the world’s young population makes India one of
the fastest growing automobile market in the coming years. The Indian automobile industry has backed factors such as availability of
skilled labour at low cost and low-cost steel production. As the Indian government encourages foreign investment to the automobile sector
by allowing 100 per cent FDI under the automatic route. This has led to some foreign companies already collaborating with Indian partners
and start operations independently. While on the other hand Indian component makers are mostly not allowed to access the overseas
markets as their foreign partners command them. However, India considers to be a strong supplier’s base for the international auto
companies but it needs to advance its emission and safety norms which will help it be more compatible with the foreign automakers.1
Terra Motors introduces new e-vehicles in Indian market
Terra Motors Corporation is working on an array of products which include three wheeler and two wheeler vehicles which they plan to
launch in India over the next two years. Terra Motors Corporation who have already invested around USD 5 million in India now has lined
up further investment of the same amount for product development and capacity expansion. The company started it business operations
by the end of 2014 and now are aiming to become number one electric vehicle manufacturer in India.
After selling around 12,000 e-rickshaws in the country since 2014-end the company next area to focus on is to expand its product line.
Based on the company’s future plans they are in process of developing e-three wheeler with lithium-ion battery along with e-two wheeler
too.
Terra Motors being one of japans leading electric car maker plans to make “Make In India” export hub for the Asian countries. Currently,
Terra motors import parts from China and then assembles them in India at its three plants. The company also plans to double its sales
network in the future years. Terra Motors Corporation is known to be a leader of electric two and three-wheelers in japan and also has its
presence in various Southeast Asian countries like Vietnam and the Philippines.2
1 https://auto.economictimes.indiatimes.com/news/industry/changing-auto-landscape-will-india-miss-or-catch-the-bus/64029513
2 https://auto.economictimes.indiatimes.com/news/industry/terra-motors-lines-up-new-e-vehicles-for-indian-market/64057863
4
Volvo plans to increase manufacturing capacity in India
Within a year Volvo Car India has setup its plant in India and now plans to increase its
manufacturing footprint. As the company expects that majority of its product will be
manufactured locally in the coming two years as its plans to compete with its German
rivals Mercedes, BMW and Audi. Currently Volvo Car India produces the seven seater SUV
XC90 and S90 in India. And plans to begin production of another car at Bangalore factory
in the second half of 2018 and add more models later this following year.
In the early second half of 2018 Volvo Car plans to launch its smallest SUV XC40 which
would help the company sustain its growth momentum and build its market share. In 2017
Volvo Car India marked an annual growth of 28% in volumes with the highest ever 2,029 in
retails. By 2020 its plans to double its share up by 10%.
Volvo Cars India also says by 2019 every new car it launches will be electrified and not just
internal-combustion-engine only cars. By 2025 the company believes to launch one million
electrified cars globally and by 2030 the company along with India as a country believe to
achieve e-mobility ambition.3
Synergies launches new alloy wheels plant in Vizag
Synergies Castings, a leading aluminium alloy wheel manufacturer announced that it will
build a major Greenfield aluminium casting and specialty alloy wheel manufacturing
facility plant in the port city of Andhra Pradesh. Synergies Castings along with the
attendance of the Chief Minister N. Chandrababu Naidu signed a MoU with the Andhra
Pradesh government for the establishment of the plant.
The existing shareholders, accruals and bank debt will help finance the project which cost
$100 million. Shekhar Movva, President, Synergies, said this project will provide more
than 2,000 skilled jobs in the region. For more than 17 years Synergies has been supplying
to the leading OEMs in India and overseas as well along with a special economic zone
already in Visakhapatnam and a new Greenfield plant being built in Oman. Synergies is
on the verge of being a 6-million-wheel capacity company by 2022-23.4
Toyota builds self-driving test tracks on public roads
Toyota Motor Corp said because it is too dangerous to test self-driving cars on public
roads it has built a closed-course test facility in Michigan for its self-driving vehicle
technology that will be similar to the "edge case" driving scenarios. Toyota Research
Institutes building a facility at Ottawa Lake which will go in operations from October
onwards. This new site will help in customising the driving route which will in return let to
better the technology and lower the chances of crashing.
Toyota Motor Corp and other Automakers such as General Motors Co and companies such
as Alphabet unit Waymo are in a race to develop the self-driving cars and also be the first
to market them. Following that accident, which occurred while testing the self-driving cars
on public roads Toyota has decided to test its self-driving cars on closed courses. Once
the necessary things are being checked they will then further continue to test their self-
driving cars on public roads.5
3 https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/volvo-car-to-increase-focus-on-manufacturing-in-india/64023551 4 https://auto.economictimes.indiatimes.com/news/auto-components/synergies-to-set-up-new-alloy-plant-in-vizag/63995786 5 https://auto.economictimes.indiatimes.com/news/auto-technology/toyota-builds-self-driving-test-track-for-edge-case-scenarios/64024605
5
Honda Scooters temporarily shuts Ahmedabad plant
The manufacturing plant of Honda Motorcycles and Scooters India at Vithalpur,
Ahmedabad was closed down temporarily because of technical issues. There was
technical trouble in the conveyor belt of the plant and was under repair, was confirmed by
one of the company officials.
At the same time, there was a rumour that there were death of three people at the plant
because of alleged structure collapse. During the enquiry, Shobhana Parmar, PSI,
Vithalapur Police Station, denied that an accident took place at the plant.6
Maxxis Tyres unveils first distributor in Gorakhpur
Hanumant Enterprises (Proprietor Ganga Prasad Jaiswal), the new distributorship has been started in Haraiya, Gorakhpur. They will reach
out to dealers, auto part retailers and independent repair shops around Varanasi, Gorakhpur, Allahabad and adjoining areas.
Jia-Ciao (Gary) Liou, spokesperson, Maxxis India, said: “We at Maxxis believe that distributors and dealers are our brand partners in true
sense. We have had a long standing partnership with MTTK and are delighted to team up with them to expand our footprints in Uttar
Pradesh. We are confident that the addition of new distributors will significantly improve our presence and position in the region.”
The first manufacturing facility of Maxxis India was started in Sanand Gujarat in March, 2018. They targets to capture a market share of at
least 15 per cent of India’s tyre market within 5 years. The plant manufactures two-wheeler tyres and tubes with a capacity to produce
around 20,000 tyres and 40,000 tubes per day.
The company is responsible for supplying passenger car as well as two-wheeler tyres for after sales markets in Uttar Pradesh, Haryana,
Punjab, Delhi, Chandigarh, Uttrakhand, Himachal Pradesh and Jammu & Kashmir. MTTK has 6 distributors in North India and they are
planning to add more 6 plants.
Maytar Korcharoenkiat, director, MTTK Trading, said: “The product quality and positive customer feedback of Maxxis Tyres have
undoubtedly helped us grow in the regions we already have a presence in. We currently have a total of 177 dealer across North India and
are targeting to have over 700 dealers partners on board by next month. With the appointment of our UP distributors, we aim to have
associations with 200 dealers in the region by this month.”
“With great emphasis on digitisation and business analytics, we will constantly work towards providing support to all our dealer partners
to help them run their business effectively. It is our endeavour to provide a heightened experience to the dealers and end users alike,”
asserted Liou.
Maxxis serves as an OEM tyre supplier to Honda (Two-wheelers), Maruti Suzuki, Mahindra, Tata and Jeep in India. The production from the
first phase of the India facility began in August, 2017 and Maxxis India has been selected as the original equipment tyre supplier to India’s
number one selling model, Honda Activa, since 2015.
The company is planning to start 5 more plants in the future which will also cater to the 4-Wheeler tyres market.
The product portfolio includes tyres for passenger cars, two-wheelers, light trucks, trucks, buses, ATV’s and agricultural & industrial
vehicles. The group has its presence in 6 continents with 21 manufacturing plants and 5 R&D Centres worldwide and develops its diversified
tyre products for customers across 180 countries7
6 https://auto.economictimes.indiatimes.com/news/two-wheelers/scooters-mopeds/honda-scooter-plant-temporarily-shut-for-technical-reasons/64081262 7 https://auto.economictimes.indiatimes.com/news/tyres/maxxis-tyres-appoints-first-distributor-in-gorakhpur/64158527
6
Will the help be given to Indian cycle makers by Maruti?
A dabbawala pedals over 130 km daily on an average in Mumbai for lunch deliveries. So the members of the Mumbai Dabbawala
Association (MDA) got a proposal by the Nashik-based Nibe Motors who would replace their old and rusty roadsters with electric cycles.
But the cost of these electric cycles offered by Nibe was 29,000 per cycle. To which Ullas Shantaram Muke, president, MDA says, the
company price quotes was way above our budget and the only way to buy e-cycles is by getting financial help or else we have to continue
using the normal cycle.
Hero announced the launch of “the cheapest bicycle” at Rs.2000 called Atlas Cycles and later announced a new roadster at Rs.1951. The
lower the price, more the buyers,” Says, Pankaj Munjal, managing director, Hero Cycles. As per data sourced from Cycle Manufacturers’
Association (AICMA) there are only 11 crore cycle owners in India. According to a study conducted by policy research organisation TERI
states that in the past few years cycling as a mode of transport has declined over 30%. Another reason for the decline is the unavailability
of cycle friendly roads and cycling infrastructure.
The real reason behind the decline of the use of cycle as a transport is because the majority of the customers who buy cycles only buy
them for fitness or recreation purposes; very few buy them to actually commute. Bicycles are no longer considered an option as the public
transport system are improving and people have enough money to buy their own motor vehicles and hence the utility value has fallen.
Cycles priced above Rs. 8,000 are generally considered niche and fancy while those below Rs. 5,000 are mass market wheels. High-end
bicycles are made of carbon fibre, or better still, titanium alloy.
Demonetisation and GST have impacted the sales of bicycles mostly in the mass market segment. Post-demonetisation the bicycle
industry sales had declined close to 40%. A cycle has no financing options compared to a cell phone, a motorcycle or a car which can be
bought through monthly instalments. The loans size is too small and operational cost too high and a person has to save about 15% of his
annual income compared to china where it’s just costs 3% of an individual’s annual income. Various state governments like West Bengal,
Karnataka, Tamil Nadu, Chhattisgarh, Madhya Pradesh, Rajasthan, Assam and Uttar Pradesh distribute 15-20 lakh cycles among
underprivileged students every year as part of their social empowerment initiatives and thereby give hefty purchase orders to the bicycle
industry. Similarly, after the Bihar government started distributing cycle’s the attendance rates of girl students in schools have gone up.
The family of households could increase by 30% if bicycle would be made available to them. The government should put some restrictions
on import of Chinese cycles as a lot of bicycles are been imported from china as they are cheaper in price compared to the domestic
manufacturers. Local players are slow on innovation as they do not have the economies to installing their own high-tech bicycle plants
which is why they prefer to import critical parts (from Europe and South East Asia) and then assemble and label locally. There is only one
bicycle standard testing centre in India which is at Ludhiana set up by the United Nations Industrial Development Organization (UNIDO) in
the 1990s. The government on the other hand has directly invested about Rs. 2,000 crore for seven such centres for automobiles.
Mass market are prompting many to focus more on fitness and recreation along with e-cycles which come with a motor and battery pack
to reduce the stress of pedalling. The industry competes with fast grasping players such as Nibe which sells e-cycles fitted with lithium ion
cells. Sells close to 2 lakh e-cycles in India every year. Globally, e-cycles are popular with the younger generation, more than that of car
ownership. Leading manufacturers such as Hero Cycles, Atlas and TI are looking to expand their line-up of e-cycles over the next few years.
The dream is that every bicycle should have a motor and move people efficiently without the stress of the fuel bill.8
Maruti Suzuki Recalls of Swift and Baleno cars
Maruti Suzuki India which is one of the largest carmaker of the country announced recently that it
will 'inspect and replace' brake vacuum hose of new Swift and Baleno models for a possible fault.
For the process of inspecting and replacing Maruti Suzuki India hosted a service campaign and
invited Swift and Baleno vehicles users who’s cars were been manufactured during that timeframe.
This service campaign is not termed to be a “Recall” as it doesn’t possess any safety concerns. For
the service campaign the users of the vehicle owned in the particular timeframe will be contacted by
the dealers for the inspection and replacement of faulty parts. This campaign is absolutely free of
cost to the customers.
To be part of the service campaign the owners of Swift and Baleno vehicles need to fill in the chassis
number (MBH followed by 14 digit alpha-numeric number) on the computer screen. The chassis
number is imprinted on the vehicle ID plate and also is available on the Invoice/registration
documents. With the adoption of voluntary code of recall in July 2012, more and more automakers
are recalling vehicles in order to correct the defects.9
8 https://auto.economictimes.indiatimes.com/news/industry/can-former-maruti-suzuki-boss-help-indian-cycle-makers-pedal-out-of-troubled-water/64112045 9 https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/maruti-suzuki-recalls-52686-units-of-swift-and-baleno/64074702
7
BYD plans to set up electric vehicles plant in Hyderabad
Leading Chinese company BYD Auto Co, Ltd who produces electric vehicles, plans to set up
its production plant in Hyderabad with the assistance of the Chief Minister K. Chandrasekhar
Rao, who assured them all help. He also said, that 100 per cent electric vehicles will be used
in the state of which 500 vehicles will be used in the first phase. He also did a brief study on
the design and development of the electric bus by BYD and in return valued its quality, saying
that the bus is highly convenient for a comfortable journey as well as for a pollution free
atmosphere.
The BYD representatives, told the chief minister that on a single charge the vehicle will be
able to move for 300-400 km and it takes the vehicle three hours to be fully charged. They
also informed the CM that along with buses they will also manufacture cars, autos and trucks.
The CM states that the only way to control and reduce pollution is the use of electric
vehicles.10
Ford halts production of F-series and Super Duty trucks in US
Ford Motor Co said it has halted the production of some of its most profitable vehicles, the F-
150 and Super Duty pickup trucks, at two US factories after fire broke out at the supplier plant
that produces parts for the trucks. Due to this the production of F-150 pickups at a third Ford
plant in Dearborn, Michigan and could lead to be idled because of the fire occurred at the
supplier plant. It was not clear how long the production disruptions will last but the automaker
is working closely with the supplier to get production restarted as soon as possible.
Based on the availability of parts the production of the Super Duty at Ford's Kentucky truck
plant will run on day to day basis. The only way Ford could catch up with the lost production
later in the year is by running overtime. Ford and Meridian could relocate production
equipment dedicated to the Ford trucks from the damaged plant, and set it up elsewhere. To
cut weight in vehicles, and improve fuel economy automakers use magnesium parts.11
NIT Trichy signs MOU with Tata Motors
Tata Motors and National Institute of Technology (NIT), Trichy have signed a memorandum of understanding (MoU) for the introduction of
innovative programs in the field of education and research. NIT Trichy director Mini Shaji Thomas and Tata Motors Ltd chief human resource
officer Gajendra Chandel were present while signing the MoU. The main objective of this MoU is to promote NIT Trichy and Tata Motors in
mutually beneficial areas along with formal basis process of interacting. NIT Trichy and Tata Motors both will be working in areas of mutual
interest to meet the future engineering needs of the academia and industry. The MoU of over a period of five years focuses on the development
of new technologies in various engineering domains with a vision of joint research and development projects. The collaboration will help to enable
joint research in key areas and find a place in the future products. This collaboration will also help students to get hands-on experience in the
current projects.
The collaboration between NIT Trichy and Tata Motors would help the faculty and students to orient themselves towards the latest practices of
the automobile industry and shape their skills in accordance with the evolving requirements of the industry. The program is an opportunity to
pool in talent among the students of NIT Trichy along with advanced knowledge and to be industry-ready. The Indian automotive industry is
continuously evolving towards emerging technologies in combination with the changing market dynamics and hence there is a need for a clear
roadmap for a talented, competent and innovative workforce.12
10 https://auto.economictimes.indiatimes.com/news/commercial-vehicle/mhcv/byd-intends-to-set-up-electric-vehicles-plant-in-hyderabad/64097447 11 https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/ford-halts-f-series-super-duty-production-due-to-parts-shortage/64098130 12 https://auto.economictimes.indiatimes.com/news/industry/nit-trichy-partners-with-tata-motors/64208443
8
2. SECTOR SNAPSHOT: SALES
2.1. PASSENGER VEHICLE
Maruti Suzuki India has sustained its double-digit run, rise in its growth to 20% while its volumes have fallen slightly compared to
the first month of the fiscal. The compact segment led by the Swift, Celerio, Ignis, Baleno, Dzire and Tour S have been the front
runners in terms of bring in the maximum volumes and highest growth rate. This product portfolio has sold 77263 units (51234
units) up by 50.8%. The utility vehicle segment with the Gypsy, Ertiga, Vitara Brezza, S-Cross gathering volumes of 25629 units
(22608 units) with a double-digit growth of 13.4%. The S-Cross has been steadily improving its sales after the new facelift hit the
market. Though lower in total units sold, the van category i.e. the Omni and Eeco has posted a higher growth than UVs of 32.7% to
16717 units (12593 units). The Mini segment with Maruti Suzuki’s long standing popular models WagonR and the Alto have de-
grown marginally at 3.1 percent to 37864 units (39089 units). A larger downfall has been posted by the Ciaz sedan largely dented
by the sales of its hybrid version post the enforcement of the higher GST rates from last July. The Ciaz is down 14.7% to 4024 units
(4724 units).
Toyota Kirloskar Motor (TKM) too has witnessed a step up from the marginal 5.64 percent growth experienced in April 2018 and
has also bettered its volumes. Toyota Kirloskar Motor (TKM) sold a total of 13113 units in the domestic market during May
compared to 10914 units sold in the same month last year, up by 20%.
Hyundai Motor India (HMIL) reported a 7.14% increase in its domestic sales of 45,008 units in May 2018. The company had sold
42,007 units in the same month during the previous fiscal.
Mahindra & Mahindra (M&M) on the other hand posted a marginal growth of 2% in passenger vehicles with sales of 20715 units
(20392 units).
Tata Motors domestic sales increased 61% in the PV portfolio to 17489 units (10,855 units). In the car segment its growth was 18%
at 11,516 units driven by the demand for the Tiago and the Tigor, while UVs grew 463% at 5,973 units, on the back of the Nexon and
the Hexa.
Honda Cars India (HCIL), recorded domestic sales of 15,864 units in May 2018 (11,278 units), increasing 41%. This growth was on
the back of the new Amaze launch in May clocking sales of 9,789 units during the month.
Ford India’s domestic wholesales in May 2018 reached 9,069 vehicles, up from 6,742 units in May 2017, increase of 34.51%. This
is seen as a positive development after the dip of 2.49% in sales witnessed in April 2018.
YEAR ON YEAR COMPARISON
OEM Year-on-Year Comparison
May-18 May-17 Growth%
Maruti Suzuki India 161497 130248 24%
Mahindra & Mahindra 20715 20392 2%
Tata Motors 17489 10855 61%
Honda Cars India 15864 11278 41%
Toyota 13113 10914 20%
Ford India 9069 6742 35%
(Source: ET Auto | June l 04, 2018)
MONTH ON MONTH COMPARISON
OEM Month-on-Month Comparison
May-18 Apr-18 Growth%
Maruti Suzuki India 161497 163434 -1%
Mahindra & Mahindra 20715 21927 -6%
Tata Motors 17489 17235 1%
Honda Cars India 15864 13037 22%
Toyota 13113 46735 -72%
Ford India 9069 13037 -30%
(Source: ET Auto | June l 04, 2018)
0%
10%
20%
30%
40%
50%
60%
70%
020000400006000080000
100000120000140000160000180000
MarutiSuzukiIndia
Mahindra&
Mahindra
TataMotors
HondaCars India
Toyota Ford IndiaG
RO
WTH
SALE
S (U
nit
s)
SALES-PASSENGER VEHICLES
May-18 May-17 Growth%
-80%
-60%
-40%
-20%
0%
20%
40%
020000400006000080000
100000120000140000160000180000
MarutiSuzukiIndia
Mahindra&
Mahindra
TataMotors
HondaCars India
Toyota Ford India
GR
OW
TH
SALE
S (U
nit
s)
SALES-PASSENGER VEHICLES
May-18 Apr-18 Growth%
9
2.2. COMMERCIAL VEHICLE
The largest CV maker Tata Motors’ domestic sales in May 2018 stood at 36,806 units, an upsurge of 56% compared to 23,606 units
in May 2017. The M&HCV truck segment continued to grow at 12,424 units, a growth of 90% over last year. The I&LCV truck segment
sold 4,106 units, up 73% mainly due to new product launches, E-commerce and increased rural consumption. The SCV Cargo and
Pickup segment sold 15,567 units, up by 47%.
M&M achieved better in terms of sales growth in the commercial vehicle segment at 15% compared to passenger vehicles though
volumes were lesser at 18748 units (16261 units).
CV maker Ashok Leyland continued to post a strong growth of 51% at 13659 units (9075 units) though it was a bit lower than the
79% it had registered in the previous month of April. Volumes were however higher by 982 units over April. Its MHCV segment has
outperformed the LCV category growing 70% to 10,421 units (6143 units). In comparison LCVs have grown at 10% to 3238 units
(2932 units).
Volvo Eicher Commercial Vehicles increased 30.7% during the month under review to 5977 units (4573 units) of which 5874 units
was contributed by the Eicher brand and 103 units by the Volvo segment.
Bajaj Auto up surged 83% in the CV sector with domestic sales of 32082 units (17524 units) with total domestic sales of the
company pegged at 224625 units (174047 units) in the month under review.
The Maruti Suzuki Super Carry LCV sold 1703 units in May 2018 compared to 428 units in the same month last year growing 297.9%
on a low base. Though a late entrant into the LCV space Maruti Suzuki sold over 10,033 units in FY18 and has been steadily
improving its numbers in the last few months.
YEAR ON YEAR COMPARISON
OEM Year-on-Year Comparison
May-18 May-17 Growth%
Tata Motors 36806 23606 56%
Ashok Leyland 13659 9075 51%
M&M 18748 16261 15%
VECV 5977 4573 31%
Bajaj Auto 32082 17524 83%
Maruti Suzuki 1703 428 298%
(Source: ET Auto | June l 04, 2018)
MONTH ON MONTH COMPARISON
OEM
Month-on-Month Comparison
May-18 Apr-18 Growth%
Tata Motors 36806 36276 1%
Ashok Leyland 13659 18963 -28%
M&M 18748 3959 374%
VECV 5977 1148 421%
Bajaj Auto 32082 1544 1978%
Maruti Suzuki 1703 12677 -87%
(Source: ET Auto | June l 04, 2018)
-500%
0%
500%
1000%
1500%
2000%
2500%
0
5000
10000
15000
20000
25000
30000
35000
40000
TataMotors
AshokLeyland
M&M VECV Bajaj Auto MarutiSuzuki
GR
OW
TH (
%)
SALE
S (U
nit
s)
SALES - COMMERCIAL VEHICLES
May-18 Apr-18 Growth%
0%
50%
100%
150%
200%
250%
300%
350%
0
5000
10000
15000
20000
25000
30000
35000
40000
TataMotors
AshokLeyland
M&M VECV Bajaj Auto MarutiSuzuki
GR
OW
TH (
%)
SALE
S (U
nit
s)
SALES - COMMERCIAL VEHICLES
May-18 May-17 Growth%
10
2.3. TWO-WHEELER
The Hero MotoCorp, marked its highest May sales. It despatched 706,365 units (6,33,884 units sold) of motorcycles and scooters
during the month under review, growing 11% over the corresponding month in the previous fiscal. This is the third month of seven
lakh‐plus sales by Hero MotoCorp in recent times, with the two previous months being March 2018 (730,473) and September 2017
(720,739).
Honda Motorcycle and Scooter India (HMSI) closed May 2018 with over 5.5 lakh units. Domestic two-wheeler sales grew by 2%
from 5,10,381 units in May 2017 to 5,19,072 units this May. Motorcycle sales grew 8% to 1,91,909 units from the earlier 1,76,216
units. Scooter sales increased to 354211 units this May from 347703 units in May 2017 marginally up by 1.87%.
Bajaj Auto meanwhile, has maintained its double digit growth in domestic sales in the first two months of the year. Motorcycle sales
in the domestic market accounted for 192543 units up from 156523 units in the same month last year. The segment grew 23%.
For TVS Motor Company domestic two-wheelers recorded a growth of 2.4% with sales rising to 246,231 units in May 2018 from
240,527 units in May 2017. Scooter sales grew 11.9% to 95,879 units (85,681 units). Motorcycle sales saw a surged up 7.4% to
126,711 units (118,014 units).
Royal Enfield has also held onto its double digit growth at 23.6% to 72510 units (58647 units). Its motorcycle portfolio up to 350cc
has been the volume churner for the British marque brand with volumes of 68813 units including exports (55823 units) up 23%. The
above 350cc motorcycle segment has niche buyers and has sold 5884 units including exports (4873 units) increased 21%.
Suzuki Motorcycle India recorded its highest-ever monthly sales for the second-month running. Clocking 53,167 units in the
domestic market during May 2018, the two wheeler maker’s sales growth increased 36.59% from 38,923 units during the
corresponding period during FY 2017-18. Overall, Suzuki Motorcycle India recorded 58,682 unit sales compared to 44,123 units in
May last year up 33%.
YEAR ON YEAR COMPARISON
OEM
Year-on-Year Comparison
May-18 May-17 Growth%
Hero Motocorp 70665 633884 11%
TVS 246231 240527 2%
Bajaj 192543 156523 23%
Royal Enfield 72,510 58647 24%
(Source: ET Auto | June l 04, 2018)
MONTH ON MONTH COMPARISON
OEM
Month-on-Month Comparison
May-18 Apr-18 Growth%
Hero Motocorp 70665 265166 -73%
TVS 246231 74627 230%
Bajaj 192543 694022 -72%
Royal Enfield 72,510 2,00,742 -64%
(Source: ET Auto | June l 04, 2018)
-100%
-50%
0%
50%
100%
150%
200%
250%
0
100000
200000
300000
400000
500000
600000
700000
800000
Hero Motocorp TVS Bajaj Royal Enfield
GR
OW
TH
SALE
S (U
nit
s)
SALES-TWO WHEELER
May-18 Apr-18 Growth%
0%
5%
10%
15%
20%
25%
0
100000
200000
300000
400000
500000
600000
700000
Hero Motocorp TVS Bajaj Royal Enfield
GR
OW
TH
SALE
S (U
nit
s)
SALES-TWO WHEELER
May-18 May-17 Growth%
11
2.4. THREE WHEELER
In the three-wheeler market, M&M grew in single-digits at 7% with sales of 4355 units in the month under review compared to 4057
units in May 2017.
Three-wheelers of TVS Motor Company on the other hand were surged 78.2% to 11,730 units (6,581 units).
YEAR ON YEAR COMPARISON
OEM
Year-on-Year Comparison
May-18 May-17 Growth%
M&M 4355 4057 7%
TVS 11730 6581 78%
(Source: ET Auto | June l 04, 2018)
MONTH ON MONTH COMPARISON
OEM
Month-on-Month Comparison
May-18 Apr-18 Growth%
M&M 4355 4327 1%
TVS 11730 10894 8%
(Source: ET Auto | June l 04, 2018)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
2000
4000
6000
8000
10000
12000
14000
M&M TVS
GR
OW
TH (
%)
SALE
S (U
nit
s)
SALES - THREE WHEELER
May-18 May-17 Growth%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
0
2000
4000
6000
8000
10000
12000
14000
M&M TVS
GR
OW
TH (
%)
SALE
S (U
nit
s)
SALES - THREE WHEELER
May-18 Apr-18 Growth%
12
3. REGULATORY UPDATES
Government of India accepts green licence plates for e-vehicles
Nitin Gadkari announced, for the promotion of e-vehicles in Idia, the government has accepted the green license plates with white fonts for the
private vehicles and yellow ones for the taxis. The government is also planning to let the youth with the age criteria of 16-18 years to drive e-
scooters, in addition to mandating taxi aggregators to have a certain percentage of e-vehicle fleet. The minister said, "The government has
approved distinctive green licence plates for electric vehicles to encourage people to use electric vehicles. Such vehicles will be fitted with green
licence plates bearing numbers in white fonts for private cars and yellow font for taxis." The reason behind the different colour number plate is
to give special perks like superior treatment in parking, free entry in congested zones besides other proposed benefits like concessional toll, the
road transport and highways minister said.
Mr. Gadkari added, "Exemption from permit will be a game changer as restricted permit regime is a major concern. E-rickshaw growth is
attributable to the permit exemption and there is scope to extend the exemption to the e-buses, e-taxis, e-autos and e-bikes. E-auto and e-buses
may have a big impact since getting a new permit is extremely difficult." He added, similarly, e-bikes also should see a considerable impact since
it is a new area. "The government is also contemplating to ask taxi aggregators to have an incremental share of electric vehicles from 2020
onwards, which could be 1 per cent of the fleet every year," Gadkari said. He added, likewise, all public transport operators may also be mandated
to provide 1 per cent incremental fleet from 2020 onwards. To decrease the pollution the government is tightening fuel efficiency norms, which
will increase the usage of e-vehicles.
Additionally, Ministry of Road Transport and Highways will request the finance ministry that the rate of depreciation on EVs may be allowed at
50 per cent as against the rate of 15 per cent for conventional vehicles. The plan also comprise to decrease the GST on batteries to 12% at par
with the GST on e-vehicles.13
Authority for Advance Rulings (AAR) imposes 28% GST on E-rickshaw Tyres
According to AAR, e-rishaws are being registered as "Motor Vehicles" under Motor Vehicle Act. So the e-rickshaw tyres are imposed 28% GST.
The tyre maker Ceat Ltd, filled an application clarifying if e-rickshaw can be classified under the head "three-wheeled powered cycle rickshaw",
which attracts a 5 per cent GST. AAR, passed an order saying that e-rickshaws do not fulfil the very first pre-requisites of 'powered cycle rickshaw',
i.e. it do not have pedal.
The AAR said, "The dealer's (Ceat Ltd) contention to consider three wheeled powered cycle rickshaws as three-wheeled electric rickshaws based
on the principle of Ejusdem generis (means - of or as the same kind) cannot be accepted because three-wheeled powered cycle rickshaws are
different then the electric rickshaws."
While AMRG & Associates Partner Rajat Mohan added charging 28 per cent on e-rickshaw tyres "seems to be unfair treatment, as they have put
a poor man's livelihood in the category of demerit items like digital cameras, motor vehicles, pan masala, tobacco, cigar, lottery, betting, gambling,
or horse racing in race club".14
13 https://auto.economictimes.indiatimes.com/news/policy/govt-approves-green-licence-plates-for-e-vehicles/64096723 14 https://auto.economictimes.indiatimes.com/news/tyres/28-gst-to-be-levied-on-e-rickshaw-tyres-aar/64146408
13
Use of cell phone on road leads to suspension of licence
While driving a car or riding a two-wheeler one is found with earphones plugged in or are
caught talking on the cell phone then be prepared to temporarily bid goodbye to your driving
licence. The Pune traffic police launched reinforce effort to limit the use of cell phones on
the road. And if caught, it will lead to suspension of the offender’s licence. Earlier, offenders
were let off with just a penalty. Despite repeated efforts to spread awareness about the use
of cell phone while driving, most road users continue to disobey the rules.
Drivers found with earphones plugged in while driving even if the driver may be only listening
to music it still causes distractions and he or she may not be able to hear the background
sounds, instructions from the police or honking by other road users. This could lead to traffic
violations and thus the authorities have decided to take action on those listening to music
using earphones too.
The authorities have decided to suspend the licences based on a Rajasthan high court
decision as well as a provision in the Central Motor Vehicle Rules, 1989. Once an offender
is caught, the traffic police officer will confiscate his/her licence and deposit it to the
Regional Transport Office (RTO) for suspension. A licence will be suspended for a maximum
period of three months. If a person is been caught for the second time then the person
licence will be suspended once again and in this cases of repeated violation of rules the
RTO can even decide to permanently suspend the driver’s driving license.15
Centre proposes charging points every 3 km for EVs
The government plans to set up charging stations for electric vehicles every three kilometres in smart cities and million-plus population cities,
and every 50 km on busy national highways. A key requirement for the growth of electric vehicles is to offer fiscal incentives and facilitate land
from municipal authorities for setting up the infrastructure. In the next 3-5 years it is expected that 30,000 slow charging and 15,000 fast-charging
stations will be put up in a phase-wise manner and there should at least be two high-charge points and one fast-charging point at every three
kilometres in cities along with thing there should also be electric vehicle charging station every 50 km on highways. Place required for setting up
the charging stations is to be given on a long term lease basis by local authorities and electricity distribution utilities to the companies willing to
set up the facilities.
The government plans to provide subsidies to the PSUs for the roll out programme as some of the Public sector undertakings in the energy sector
such as NTPC, Power Grid Corp and Indian Oil Corp are likely to set up charging stations at several locations in identified cities. With NTPC
already setting up facilities in Maharashtra and power Grid Corp who signed an agreement with L&T metro Rail LTD for setting charging
infrastructure at all metro stations corridors for e-cars and e-three wheelers in Hyderabad. Auto companies like Mahindra & Mahindra, Tata
Motors and cab-hailing companies like Ola and Uber along with state-run enterprises and start-ups are all showing interest in setting up charging
infrastructure for electric vehicles.16
15 https://auto.economictimes.indiatimes.com/news/industry/glued-to-cellphone-on-road-police-to-take-away-licence/64092642 16 https://auto.economictimes.indiatimes.com/news/auto-components/-centre-proposes-charging-points-for-evs-every-3-km/64183868
14
Country-wide mandatory intra-state e-way bill system from June 3, 2018
The government made it mandatory from the June 3 the use of the e-way bill for moving goods within a state and later on the country-wide roll
out of the mechanism. The government had launched the electronic-way or e-way bill system from April 1 for moving goods worth over Rs 50,000
from one state to another and for intra or within the state movement has been rolled out from April 15.
Since the announcement was made, 20 states/Union Territories have made e-way bill mandatory for intra-state movement of goods. These states
include -- Gujarat, Uttar Pradesh, Rajasthan, Assam, Karnataka, Kerala, Madhya Pradesh and Haryana. Based on the letter written to the officers
in the Central Board of Indirect Taxes and Customs (CBIC) by Chairperson Vanaja Sarna says, intra-state movement of goods would be
implemented throughout the country by June 3, 2018.
Chairperson Vanaja Sarna restates that the Chief Commissioners of the remaining zones should co-ordinate with the state authority and get the
necessary notification issued as early as possible. There can be steps taken to publicise the date of its roll out along with exemptions. Since the
implementation of the e-way bill from April 1, 2018 the system is functioning as predicted and more than 4.5 crore e-way bills have been generated
which also includes more than 1.30 crore e-way bills for intra-state movement of goods.
On May 25, 2018 the intra-state e-way bill requirement became mandatory in the Union Territory of Lakshadweep and Chandigarh. Later on from
June 1 it will be rolled out in Punjab and Goa while Maharashtra will roll out the bill from May 31. Transporters of goods worth over Rs 50,000
would be required to present the e-way bill to a GST inspector as an anti-evasion measure. The measure was introduced to help boost tax
collections by securing down on trade that currently happens on cash basis. The GST Council, announced in March, the roll out of the e-way bill
starting with inter-state from April 1 and intra-state from April 15, 2018.17
4. TECHNOLOGY
43,000 autos with GPS meters and panic button to go live in Chennai soon
After a delay of five-year, the government finally decides to begin with the installation of GPS-fitted digital meters which also have inbuilt
printers and panic buttons in 43,000 autos in the city. The control centre setup by the transport department in Anna Nagar demonstrated
the process and was successful in tracking the autos.
A senior transport department official said that the new digital meters are similar to those used by Ola and Uber which makes use of the
GPS to estimate the fare based on the distance travelled. After which a fare receipt is generated by the printer attached to the device. The
meter also consists of a panic button as a security measure when pressed the alarm signal will reach the nearest police station. The control
centre monitors the vehicles and also will handle complaints on a live GPS map.
The official also said that the new model does not allow drivers to run auto rickshaws without switching on the meter and if the driver does
run it without switching on the meter then a warning signal will be send to the control centre. The total cost of the project compared from
2013 has gone up to 109 crore from 80 crore. New Delhi-based Rosmerta Technologies Limited accepted the contract to manufacture the
meters and monitor operations as well.18
17 https://auto.economictimes.indiatimes.com/news/policy/country-wide-intra-state-e-way-bill-system-mandatory-from-june-3/64274619 18 https://auto.economictimes.indiatimes.com/news/industry/gps-meters-with-panic-button-to-be-fitted-in-43000-city-autos/64011426
15
Aeris announces mobility platform to power connected cars
Aeris technologies announced its availability of Aeris Mobility Platform (AMP) a cloud and
micro-services-based IoT platform that provides the critical building blocks that enable the
Internet of Things for enterprises and original equipment manufacturers (OEMs).
Mitsubishi and Aeris have formed Aeris Mobility Platform powering Mitsubishi Connect
Vehicle Program, which debuted in the all-new 2018 Eclipse Cross CUV.
Mitsubishi connect provides owners with an automatic and trouble-free driving experience
with key functionality in safety, security and remote vehicle services that can be accessed
in multiple ways. This program also has the ability to deliver a broad range of telematics
services, including mobile applications, call center services and wireless connectivity.
The enterprises and OEMs together can deliver a cloud-agnostic and flexible, globally
connected program which offers services that include safety and security, remote vehicle,
driver behaviour, vehicle health, and other services. AMP offers three key advantages over
their competitor, which include service flexibility and velocity, operational efficiency and a
robust service delivery architecture.19
SABIC announces new PP compounds to make vehicle interiors scratch proof
SABIC, a global leader in the chemical industry, announced a new and growing portfolio of
SABIC polypropylene (PP) compounds that consists of a soft feel combined with good
scratch performance, an interior automotive components with low gloss. This new
material by SABIC offers feel and the finishes that the consumers demand for and also
will be available in low priced vehicle. This injection moulding material help avoid
secondary operations such as applying soft paint, fabric, foam or other surface covering
and also benefit the automotive OEMs and suppliers by reducing the cost by 50 per cent.
In addition it also offer strong impact performance and low shrinkage. It also deliver sound
damping capability to help create a quiet cabin environment along with UV stabilized to
prevent fading of colour.
The other ways of using this material are interior trims, seat and console side cladding,
glove boxes, door panels and other similar interior components. Tata Motors, is the first
automotive manufacturer to use the SABIC PP compounds in its 2017 Tiago hatchback
car’s interior applications. With the use of this SABIC material the company eliminated the
need for expensive paint systems and along with that saved about 30 per cent with the
exact same level of performance and aesthetics.20
Invention of safety device without internet connection for cabs by Amreeta College of Engineering, Bangalore
A tamper-proof safety device, which can be integrated with the central-locking system of cars which doesn’t require the use of internet to
function. This was discovered by Rakesh S G, along with another professor and three engineering students.
The device is a simple add-on to the inbuilt central-locking system in cars along with two switches on the roof of the car, which the
passenger has access to. One of the switches is a check button that allows the passenger to ensure whether the safety device is working
and not been tampered when she/he gets into the vehicle. The other switch is the panic button after pressing it, the vehicle sets an alarm
to people around the vehicle so that they can reach the passenger for help.
The purpose of this device is not to make a business out of it but to ensure that the transport department makes it mandatory for car
manufacturers to make it an in-built feature. This device has a huge scope to be upgraded in the near future with added features such as
inserting a GPRS sim card which would send SMS to the nearest police station.21
19 https://auto.economictimes.indiatimes.com/news/auto-components/aeris-unveils-mobility-platform-to-power-connected-cars/64016549 20 https://auto.economictimes.indiatimes.com/news/auto-components/sabic-unveils-new-pp-compounds-to-make-vehicle-interiors-scratch-proof/64097516 21 https://auto.economictimes.indiatimes.com/news/industry/this-safety-device-for-cabs-can-work-without-internet/64079044
16
Nissan plans to expand ProPilot tech for additional models
Nissan’s innovative ProPilot semi-autonomous driving system which is already popular with
customers with global sales of more than 120,000 units sold featuring this technology. Nissan
Rogue Sport the top selling car in the US and the Qashqai in Canada is now set to get ProPilot
technology beginning of the late 2018. ProPilot is basically a hands-on driver-assist system
which helps the drivers to stay in their lanes, navigate stop-and-go traffic and maintain a set
vehicle speed and distance to the vehicle ahead. Nissan’s ProPilot technology was first
introduced in 2016 in the Japanese-market Nissan Serena minivan and since then the
technology has gone globally to vehicles such as the new electric Nissan Leaf, the European-
market Qashqai, the Japanese-market X-Trail and the Rogue in the US-market.
According to the company’s midterm plan ProPilot will be featured on the upcoming all-new
2019 Nissan Altima sedan along with other vehicles adopting the technology in coming years.
It is and expected to expand 20 models and 20 markets by the end of FY2022, as part of the,
Nissan MOVE. Nissan’s ProPilot intelligent mobility technology comes with a vision of how
vehicles are powered, driven and integrated into society. Popular models such Altima, X-Trail
and Rogue Sport are on the list adapting to this technology as the customer response was
beyond their expectations.22
Electric vehicles to save billions on energy storage
According to a study there is no need to build costly stationary grid storage for energy obtained
from renewable sources as the energy can be stored by using electric vehicles (EVs) as mobile
power storage.
Researchers from the Lawrence Berkeley National Laboratory (Berkeley Lab) in the US looked at
the issue of large-scale deployment of renewables across the energy grid. With the help of the
research process they analysed the associated problems of variability (daytime overproduction,
or evening surge demand), and the solution found in the process was how controlled charging
of mandated EVs could help to reduce these problems. EVs can also provide dual benefit of
decarbonising transportation while lowering the capital costs for widespread renewables
integration and this would lead to removing the need to build new stationary grid storage. All the
above benefits are not limited to California, but are applicable worldwide whenever EVs and
renewables generation become universal.23
Akasol Introduces new battery module for coaches and trucks with high energy density
Akasol Lithium-ion battery systems manufacturer has introduced its first cylindrical-cells battery
system with very high energy density for coaches and trucks. The system has been named AKA
Module 60 CYC which allows building high-energy battery systems which can further enable
commercial vehicles such as intercity coaches, buses and trucks to travel longer journeys and
at the same time offering a long life-time. At the end of 2018 the new battery module will first
be used in customer application and later on it will enter series production.
The company says, that its 2,66-kWh battery module offers a power density of up to 433 W/kg
and high cycle stability in comparison to other high-energy solutions which offered about 221
Wh/kg along with this the company has introduced three new battery systems at the booth B386
which are AKASYSTEM 15 OEM 37 PRC, AKASYSTEM 15 OEM 50 PRC and AKASYSTEM 15 AKM
60 CYC respectively with each having the same dimension of 700 x 150 x 1700 and contains 15
battery modules with different cell technology fitting the PHEV2 standard module.
The new cylindrical-cells battery module allows coaches, city buses and trucks to operate
reliably on long distance journeys as the driving range of those vehicles increases significantly,
the need for charging stations will decrease considerably for many applications.24
22 https://auto.economictimes.indiatimes.com/news/auto-technology/nissan-to-expand-propilot-technology-to-additional-models/64169830 23 https://auto.economictimes.indiatimes.com/news/industry/electric-vehicles-could-save-billions-on-energy-storage/64290884 24 https://auto.economictimes.indiatimes.com/news/auto-components/akasol-unveils-new-battery-module-with-very-high-energy-density-for-coaches-and-trucks/64171449
17
DLF 1 introduces E-Rickshaws
The residents of DLF 1 Qutub Enclave, Gurugram with the private firm introduces app-based e-rickshaw service in the area. The reason behind
this was to raise last-mile connectivity and to decline reliance on autorickshaws. After the introduction of e-rickshaws the residents got aware
that the auto rickshaws charged a way higher rates as compared to the new service.
The stops for e-rickshaws were: utub Enclave, DLF 1 metro station, Sikanderpur Metro Station, Mega Mall, Guru Dronacharya Metro Station, DLF
1 Block A and Silver Oaks Apartment.
This service of e-rickshaws in DLF1 is app-based, but can also be available through phone calls as well.
RS Rathee, president, RWA said more e-rickshaws would be added to the fleet in phases. “The firm will work like a cab aggregator. We have
launched an app so that residents can hail an e-rickshaw from anywhere in the area. We have identified some areas where commuters will be
dropped and picked up. Besides, it will connect with nearest metro and rapid metro stations in Sikanderpur, Guru Dronacharya and DLF1.”
E-rickshaws are very common in Delhi but in Gurgaon, the service is relatively not used. Their batteries operate within small distances and are
very efficient and cost-effective.25
5. INTERNATIONAL NEWS
Nissan confirms Supercars exit in Australia
Nissan Australia to exit the series at season's end and confirms that the 2018 Supercars
Championship will be its last. Joining at the start of 2013 V8 Supercars with Kelly Racing
Nissan Motorsport was formed and at the end of 2018 the current contract with the team ends.
Nissan has enjoyed a strong relationship with the team being led by Todd and Rick Kelly and
invested highly to the motorsport program both on and off the track.
In order to focus on the interests and needs of their current and future customers Nissan has
decided to exit the Supercars Championship. Nissan Australia maintaining its commitment to
the team hopes to celebrate some strong results of the 2018 Supercars Championship.26
Lister to introduce world's fastest SUV
Lister, British car manufacturer endeavours to set new world record of manufacturing the
fastest SUV, based on Jaguar F-Pace SVR. To achieve the title "Lister Lightening", the
company needs to come out with car which performs 0-100kmph sprint under 3.5 seconds.
The Lightning expects to offers 700PS of power as compared to standard Jaguar F-Pace SVR
which offer 100 PS less.
According to the teaser, the Lister Lightening carries Lister's signature, larger but lighter alloy
wheels, chunky tires and subtly designed body kit for improved aerodynamic efficiency.
The other project comprises Thunder coupe inspired from Jaguar's famed supercar the F-
Type. It produces a massive 666PS and gets a top speed of 322kmph.
Lister has started working on their first own supercar the 'Storm II'. The supercar is likely to
use a 7.8-litre supercharged V12, churning out 1,000PS.27
25 https://auto.economictimes.indiatimes.com/news/industry/tired-of-auto-cracy-dlf-1-starts-own-e-rickshaw-service/64105921 26 https://auto.economictimes.indiatimes.com/news/industry/nissan-confirms-supercars-exit-in-australia/64169682 27 https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/worlds-fastest-suv-this-carmaker-is-building-it/64178662
18
China's Shenzhen permits to test self-driving cars
With the completion between China and US for the leadership of autonomous driving, country's first city permit autonomous cars testing 5 months
ago was Beijing later on Shanghai and now the newly joined Shenzhen have now permitted road tests for self-driving cars. Internet giant Tencent
Holdings became the first company to receive the Shenzhen licence to conduct open-road tests for its autonomous cars. This was possible
because of China's Ministry of Industry and Information Technology (MIIT) which released new guidelines and gave local authorities a free hand
to arrange road tests for self-driving vehicles. Tencent's self-driving car tests are expected to move forward from the technical stage into the
application stage. Tencent to join with rival internet giants Alibaba Group Holding and Baidu in the autonomous car industry.
Electric car start-up such as NIO and the state-owned automotive design and manufacturing company SAIC Motor was issued a licenses for self-
driving cars by Shanghai. By 2030 China aims to become the world's largest market for autonomous vehicles and mobility services and to worth
more than $500 billion. Chinese autonomous driving players rushing to the US cities for road trials of their vehicles.
Recently, Drive-sharing Company Didi Chuxing Technology Co got approval from California Department of Motor Vehicles (DMV) to test its self-
driving vehicles. 53 pieces of Autonomous Vehicle Testing Permits (with a driver) had been permitted based on a new list posted on the DMV's
website. Besides Didi other Chinese companies such as Baidu, Faraday & Future, Changan Automobile, have started its testing in the state.28
India’s two- wheelers segment races ahead of China
In terms of passenger vehicle sales India may be roughly one-sixth of China's but when it comes to high end motorcycles India in fact is growing
much faster. According to Harley Davidson India is current the world's largest two-wheeler market and with a rapid growth of 250 cc plus
motorcycle segment have tipped the scales in India's favour in comparison to China. Both India and China are of comparable size in terms of
network, products and growth. India being bigger than China in the two-wheeler market and who also is growing faster as the Indian customer
are younger and are better product educated than many other markets making them a unique demographic. Although the bulk of the growth in
the higher bike segment is in the 250cc-500 cc compared to the higher end 600 cc plus segment which is showing significant growth. With the
competition getting tough in the 600 cc plus segment there is a strong growth and migration towards lifestyle oriented products.
Harley Davidson being No 1 in the 600cc plus segment mostly because of its India-manufactured Street 750. The company has not clearly stated
whether it is looking at coming out with a product in the sub-500cc range which is currently dominated by local bike brand Royal Enfield. However,
it is clear that it does not require any local partnerships for a larger India play like BMW, which has tied up with TVS Motor and Triumph which
has partnered with Bajaj Auto because the company has already established its plant here in India and hence they are not in need of local
partnership. Harley Davidson who had showcased the Project Livewire concept four years ago are now set to launch its first electric motorcycle
product in India in the next 16-18 months as they believe in constantly evaluating what the customers want and accordingly tweak the range of
bikes. With the recent tweaking of CBU duties have improved the price position of the company's imported bikes like the Road King, Street Glide,
Road Glide and CVO TM by Rs. 2.6-3.7 lakh. The recent duty reductions have also improved the price positions but hasn’t improved sales or
demand of the product. The company recently launched its Chennai dealership and now shifts its focus on Tier 2 cities to expand its footprint.
With the total of 27 dealerships and with a view to open several more this in the coming year the company has a global target to hit 150-200
dealerships in the coming four years.29
28 https://auto.economictimes.indiatimes.com/news/auto-technology/chinas-shenzhen-permits-tencent-to-test-self-driving-cars/64177206 29 https://auto.economictimes.indiatimes.com/news/two-wheelers/motorcycles/india-is-bigger-than-china-when-it-comes-to-two-wheelers-harley-davidson/6414935
19
6. DISCLAIMER
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This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and that it should be
relied upon, as such Polymerupdate does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for
any errors or omissions or for the results obtained from the use of such information and especially states that it has no financial liability
whatsoever to the users / transmitters / distributors of this publication.
The views expressed in this report are one way of analysis and could differ from other viewpoints. No part of this report may be reproduced in
any form or by any means without the permission of Polymerupdate.
7. CONTACT INFORMATION
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General Manager – Strategy & Operations
(91-22) 6177 2000 | +91-9920744206|
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Financial Analyst,
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Polymerupdate.com
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