Carmakers borrow industry-leading $132 billion to weather Covid-19

The automotive industry has borrowed $132 billion since March as the spread of the coronavirus curbed demand for cars and closed factories. The sector is the largest user of funds put in place to ease the impact of the pandemic. The amount consists of $79 billion in new loans and $53 billion in drawdowns from existing credit lines. Facilities linked to the pandemic account for almost 80% of overall loan borrowings by the sector in the year to date. Loans for virus relief, which peaked during the March-to-June period, eased…

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Slowdown, weak consumer sentiment extremely challenging for auto sector: Kinetic Green

MUMBAI: Slow economic growth coupled with dull consumer sentiment will be “extremely challenging” for the domestic automotive industry, which was already reeling under a sales slump even before the COVID-19 crisis, electric vehicle maker Kinetic Green said. At the same time, the company remains bullish on the electric vehicle (EV) segment in the long-term and expects demand to be strong. However, it is looking to push back some of its investment plans for the next one-two quarters to assess demand. Automakers reported zero sales in April amid the coronavirus lockdown,…

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Covid-19 to impact electric vehicle market?

NEW DELHI: Electric vehicles market in India may experience a shift as consumers seek affordable products amid COVID-19, and it could make manufacturers resume production for conventional vehicles, according to a report. The report – Towards a Clean Energy Economy: Post-COVID-19 Opportunities in India’s Energy and Mobility Sectors – is prepared by government think tank Niti Aayog and Rocky Mountain Institute. It also said there may be delays in electric vehicles (EV) production as manufacturers focus on reviving demand and producing BS-VI vehicles, while curbs on imports of Chinese components…

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Commercial vehicle sales likely to contract 8-10% further in FY21, says ICRA

NEW DELHI: Ratings agency ICRA on Wednesday said commercial vehicles (CV) sales volumes in India are likely to contract further between 8-10 per cent in 2020-21 as the near term outlook of the sector is weighed down significantly by the coronavirus pandemic. The agency said it continues to maintain a negative outlook for the CV segment over the near-term citing “slowing economic growth, current overcapacity in the CV ecosystem and not so benign financing environment, with challenges further aggravated by the recent and rapid spread of novel coronavirus in India”.…

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PVs, trucks may see some revival; two-wheelers to struggle: Report

MUMBAI: After the worst volume contraction in four decades, the auto industry will continue to struggle in the medium-term, given the BS-VI related cost push and the disruptions caused by the Covid pandemic, says a foreign brokerage report. However, brokerage Jefferies sees some respite for the passenger vehicles (given the likely push for personal mobility in the light of the Covid pandemic) and commercial vehicles due to replacement demand going ahead, which will help the industry recover to come extent. The report does not quantify the growth/demand revival, though. But…

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Lockdown deepens woes of automobile dealers: Ind-Ra

NEW DELHI: The nationwide lockdown has deepened woes of automobile dealers as the coronavirus pandemic crippling most economic and commercial activities will negatively impact demand for automobiles, according to India Ratings and Research (Ind-Ra). The Supreme Court’s order on March 27 to allow automobile dealers, except in the National Capital Region, to sell 10 per cent of unsold Bharat Stage IV (BS-IV) compliant inventory within 10 days after the nation-wide lockdown ends on April 14, 2020 comes as a little respite to an already struggling automobile dealership, it said. The…

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Coronavirus supply chain shock will have negative impact on Indian auto component sector

NEW DELHI: Rating agency ICRA on Friday said the supply chain shock due to the coronavirus pandemic will have negative impact for Indian auto component industry. The COVID-19 supply chain disruptions will manifest into a demand shock lasting multiple quarters for the domestic industry, ICRA said in a statement. The rating agency, which undertook an extensive survey across key auto component importers and exporters to understand the impact of disruptions in the global auto component supply chain because of the pandemic, said it expects a significant scale down in exports…

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Mother Dairy seeks to use e-grocers’ network

NEW DELHI: Mother Dairy, one of India’s leading dairy companies, has written to major food e-commerce players, including Bigbasket, Milkbasket and Supr Daily, to operate as a team to maintain a smooth supply of milk. Senior executives at Mother Dairy said the dairy giant is ready to increase production and use the distribution network of the online players to reach consumers at locations that do not have milk booths. “We are ready to operate at our fullest capacity. Currently, we are operating around an average of 35 lakh litres a…

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