CMV360 Weekly Wrap-Up | That Mattered This Week (18th Sep – 22nd Sep): Tata Motors Announces 3% Price Hike for Commercial Vehicles from October Onwards

We hope this summary will provide you with valuable insights into the current state of commercial vehicles and the direction it is heading.

Welcome to the Cmv360 Weekly Wrap-Up, where we offer you the most recent commercial vehicle industry news and developments. Join us as we delve into the highlights and stories that have shaped the week, providing you with a concise overview of the most noteworthy happenings that you need to know.

Check out this week's essential news on trucks, three-wheelers, tractors, new launches, and more. Stay tuned with us as we explore these and other automobile parts-related topics.

JK Tyre Earns Top Rating: CARE Ratings Upgrades to 'CARE A+'

JK Tyre and Industries Limited, one of India's leading tire manufacturers, has received a credit rating upgrade from CARE Ratings. The company's rating has been raised to 'CARE A+' from its previous 'CARE A' rating, reflecting the company's strong financial performance and improved creditworthiness.

The rating takes into account the company's improved operational and financial performances in FY23, as evidenced by increased scale of operations, improved working capital management, and improved leverage and coverage indicators, which are likely to continue in the future.

During FY23, consolidated revenue increased by 23%, resulting in a compounded annual growth rate (CAGR) of 10% over the previous 6 years.

Also Read: CMV360 Weekly Wrap-Up | That Mattered This Week (20th Aug – 25th Aug): Mahindra's Electric Three-Wheelers Sustain Robust Growth from April to July

Mahindra Paves the Way for Education: Scholarships for CV Drivers' Daughters

Mahindra & Mahindra, one of India's leading automotive manufacturers, has announced a scholarship program. The primary goal of this scholarship is to provide education to daughters of commercial vehicle (CV) drivers. The company will provide scholarships to the daughters of truck drivers under the Mahindra Saarthi Abhiyaan.

Under this initiative, Mahindra Group will provide financial assistance to young girls aspiring to pursue higher education, thereby opening doors to a world of opportunities they may have otherwise found inaccessible.

The Mahindra Truck and Bus Division's commitment to the truck driver community began in 2014 with the Mahindra Saarthi Abhiyaan, which has provided scholarships to 8928 truck drivers' daughters to date.

Tata Motors Announces 3% Price Hike for Commercial Vehicles from October Onwards

Tata Motors, one of India's leading automotive manufacturers, has announced a price hike of 3% on its range of commercial vehicles (CVs) starting from October 1, 2023. This decision comes in response to rising input costs and inflationary pressures impacting the automotive industry.

The current price rise, which applies to the full range of commercial vehicles, was justified by the firm as a strategy "to offset the residual impact of past input costs."

Tata Motors' commercial vehicle division has been a key player in the Indian and international markets, offering a wide range of trucks, buses, and other utility vehicles.

Indian Government Launched Kisan Rin Portal, KCC Campaign, and WINDS Manual to Empower Farmers

The Indian government launched three major initiatives: the Kisan Rin Portal, the KCC Campaign, and the WINDS Manual. These initiatives are expected to bring relief and empowerment to the farming community.

Finance Minister Nirmala Sitharaman and Agriculture Minister Narendra Singh Tomar launched three important initiatives to help Indian farmers.

The Kisan Rin Portal and the door-to-door KCC campaign share a similar goal: to make it easier for farmers to obtain subsidized loans. The Kisan Rin digital portal gives a snapshot of farmer data, loan disbursement details, interest subvention claims, and scheme utilization status. The goal of this collaboration with banks is to improve the efficiency and precision of agricultural financing services.

Singapore's Innovative Refrigerated Trucks Target Lucrative Chinese EV Industry

A Singapore-based business is anticipated to gain an advantage in the congested Chinese electric vehicle (EV) industry by developing fully electric refrigerated trucks for carrying food and pharmaceuticals.

Singauto Technology will debut its first EV cold storage truck model and discuss pricing at an event in Beijing. Additionally, the company has closed an initial funding round of $20 million from investors.

A feasible cold-storage electric truck might be a lucrative niche for Singauto within the world's largest EV market. Internal combustion vehicles dominate the cold-chain logistics business, in part because refrigerating the cargo consumes so much electricity from the battery that the range of electric equivalents may be limited.

Euler Motors and SIDBI Join Forces to Drive Electric Mobility Financing

Euler Motors, an electric vehicle (EV) manufacturer, has joined forces with the Small Industries Development Bank of India (SIDBI) to speed up its financing initiatives. The primary aim of this partnership is to accelerate the adoption of electric mobility solutions across India.

Euler Motors has been taking significant steps in the electric vehicle sector, specializing in the production of commercial electric vehicles designed for last-mile delivery and logistics. The collaboration with SIDBI, a financial institution dedicated to supporting small and medium-sized enterprises (SMEs), is poised to have far-reaching implications for both the EV industry and the Indian economy.

Euler Motors and the Small Industries Development Bank of India (SIDBI) have launched a vehicle finance partnership. The collaborations are part of the bank's Mision 50K-EV4ECO program, which aims to empower the whole EV supply chain and encourage enterprises to switch to electric mobility.

Escorts Kubota Announces Rs 700 Crore Authorized Capital for New NBFC Venture

Escorts Kubota, a leading player in the agriculture and construction equipment industry, announced today that the company's board has given its green flag to establish a wholly-owned Non-Banking Financial Company (NBFC). The decision aligns with the company's expansion plans. Through this, the company aims to facilitate financing for its products and customers.

The creation of this NBFC is expected to provide substantial support to Escorts Kubota's customers by offering customised financing solutions for their equipment purchases, potentially driving sales and market penetration.

According to a regulatory filing by Escorts Kubota, the proposed NBFC will have an authorized capital of Rs 700 crore. Additionally, the board has granted approval for the infusion of capital up to Rs 200 crore as and when required, aligning with the business plan of the forthcoming financial entity.

India and the United States Collaborate to Deploy 10,000 Electric Buses on Indian Streets

In a groundbreaking partnership aimed at promoting sustainable transportation and combatting climate change, India and the United States have joined forces to introduce 10,000 electric buses onto the streets of India. US Ambassador to India Eric Garcetti stated that electric buses have the potential to revolutionize the globe. Electric buses can provide a future in which the planet is habitable.

The ambassador travelled to a seminar on "accelerating the deployment of electric buses in India" on an Indian electric bus. Delhi Transport Minister Kailash Gahlot mentioned that the ambassador took a ride in a Delhi Transport Corporation (DTC) electric bus.

FADA Encourages OEMs to provide additional benefits to dealers

The Federation of Automobile Dealers Associations of India (FADA), released its Dealer Satisfaction Study (DSS) 2023 and has asked OEMs to provide more incentives to assist dealers in liquidating deadstock.

A vehicle that has been in a dealership's inventory for more than 60 days is termed deadstock. As a result, it limits the dealer's ability to use working capital to acquire and sell other products. In case, a vehicle sits in the stockyard for more than 30 days, a dealer starts losing money on it.

As a result, OEMs must add some scheme to liquidate a vehicle that has been in dealer inventory for around 60 days. Customers anticipate steep discounts on such old stock, which cannot be met just through the dealer's margin on a vehicle.

The vehicle as well as the working capital gets stuck, and that is where dealers need some support from OEMs, across categories like cars, two-wheelers, three-wheelers, or commercial vehicles. Another broader issue that dealers face is high amounts of unsold spare parts inventory, which contributes to a working capital bottleneck.

Ashok Leyland's Bold Move: New Greenfield Bus Plant in Uttar Pradesh

Ashok Leyland, one of India's leading commercial vehicle manufacturers, has announced its ambitious plans to establish a greenfield bus manufacturing plant in Uttar Pradesh. The move comes as part of the company's commitment to sustainability and its vision to contribute to a cleaner, greener future.

The Hinduja Group's Indian flagship, Ashok Leyland, has inked a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh. The agreement enables the company to establish an integrated commercial vehicle bus plant focused on green mobility in Uttar Pradesh, the state's first Ashok Leyland plant.

Manoj Kumar Singh, Uttar Pradesh's Infrastructure and Industrial Development Commissioner, and Shenu Agarwal, Ashok Leyland's Managing Director and CEO, signed the MoU. Yogi Adityanath, Chief Minister of Uttar Pradesh, presided over the signing ceremony in Lucknow, which was also attended by Nand Gopal Gupta, Minister for Industrial Development, Export Promotion, NRI, and Investment Promotion, Government of Uttar Pradesh, and Dheeraj Hinduja, Chairman, Ashok Leyland.

Also Read: CMV360 Weekly Wrap-Up | That Mattered This Week (11th Sep – 16th Sep): Tata Motors Hosts Grand 'Truck Utsav' Event to Spotlight Innovative Mobility Solutions

Conclusion

That concludes our weekly wrap-up of commercial vehicle news. The past week has been filled with exciting developments, showcasing the industry's dedication to sustainability, efficiency, and innovation.

We hope this summary has provided you with valuable insights into the market of commercial vehicles and the direction it is heading. Stay tuned for more updates, and until next week, drive safely!