Key Industry Updates
Arthur D. Little, the world’s oldest management consulting firm, has released a new report titled “Transforming India into a Global Automotive Hub: Roadmap for the Automotive Ecosystem.”
Commenting on the report, Barnik Chitran Maitra, Managing Partner, Arthur D. Little, India & South Asia says, “India’s automotive industry can become a global hub for design, development, and production, appealing to international markets. To achieve this, players across the industry must upgrade their capabilities for reliable and competitive global manufacturing. India’s strength in automotive software and ER&D can thrive by offering solutions aligned with emerging trends like zonal architecture and Advanced Driver Assistance Systems (ADAS).”
The RBI MPC unanimously decided to keep the repo rate unchanged at 6.5 per cent for the fourth consecutive time. The policy stance has also been left unchanged, with a focus on withdrawal of accommodation. The MPC is adopting a cautious approach and monitoring the consequences of previous rate hikes before making further decisions. The US Federal Reserve's battle against inflation and the global economic landscape pose challenges for India's economy.
With focus on capability-building being critical to navigate through the rapid technology advancements and changing market dynamics, Tata Motors has adopted a holistic approach to upskilling. Specially curated training modules address the requisite developmental needs of all - from shop floor technicians to line engineers, and plant management. These modules deliver relevant technical skills, functional skills, as well as managerial and leadership capabilities.
Implementation of multiple proposed regulatory specifications can push up commercial vehicle prices by 10-12 per cent, ratings agency ICRA cautioned. The ratings agency pointed out that there are multiple proposed regulatory changes on the anvil such as the mandatory fitment of air-conditioners (ACs) in driver cabins which has already been announced with effect from January 1, 2025.
In its report on the Indian commercial vehicle industry, ICRA said the domestic automotive industry is undergoing rapid transformations, with increased focus by the government on implementing emission norms, safety systems and other standards that will bring the country at par with other major automotive markets.
The government has been working on providing various incentives for the electric vehicle (EV) industry in order to achieve India’s sustainability goal of bringing down carbon emissions.
This comes at a time when the Indian government is reportedly working on a new EV policy that would slash import taxes for companies that commit to some local manufacturing.
A government facilitation center is being launched in Coimbatore in association with 25 companies to boost the EV industry, Thiru Srinivasan, Senior advisor (EV sector) of the Department of Micro, Small and Medium Enterprises, FaMe TN, said. "Tamil Nadu is one of the early movers in the EV space domain.
"The government is also creating a very comprehensive EV sector roadmap with the aim of competing with the world and not within India," he added.
The Uttar Pradesh government has laid out conditions concerning the subsidy available on the purchase of electric vehicles under the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy, 2022.
The first two lakh 2-wheeler electric vehicles will be provided with a subsidy of Rs 5,000 per vehicle. Similarly, the first 25,000 four-wheeler electric vehicles purchased will get a subsidy to the extent of Rs 1 lakh per vehicle. On the other hand, the initial 400 e-buses (non-government) purchased in the state will get the benefit of subsidy to the extent of Rs 20 lakh per vehicle.
