About 350,000 laid off since April as automobile crisis deepens: Report

Within this previously unreported figure, car and motorcycle makers have laid off 15,000 and component manufacturers 100,000, with the remaining job losses at dealers

Slumping sales of cars and motorcycles are triggering massive job cuts in India’s auto sector, with many companies forced to shut down factories for days and axe shifts, multiple sources said. The cull has been so extensive that one senior industry source told Reuters that initial estimates suggest that automakers, parts manufacturers and dealers have laid off about 350,000 workers since April.

Within this previously unreported figure, car and motorcycle makers have laid off 15,000 and component manufacturers 100,000, with the remaining job losses at dealers, many of which have closed, the industry source said. Reuters was able to identify at least five companies that have recently cut or plan to cut hundreds of jobs, mainly from their temporary labour force.

The downturn – regarded by industry executives as the worst suffered by the Indian auto industry – is posing a big challenge for Prime Minister Narendra Modi’s government as it begins its second term at a time when India’s jobless numbers are climbing. To revive the sector, auto executives plan to demand tax cuts and easier access to financing for both dealers and consumers at a meeting with officials from India’s finance ministry scheduled for Wednesday, the senior industry source said..Read More: Automobile Crisis

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Mahindra pitches eco-friendly electric skate-scooter for last-mile mobility

The electric skate-scooter will be offered as a one-person mobility solution that can be hired at low rates in order to navigate short distances across crowded streets

Automobile News : With major cities in India facing pollution issues and the National Capital almost choking to toxic air, Mahindra & Mahindra is keen to introduce electric ‘kick’ scooters as a last-mile mobility solution.

The group is looking at leveraging the strength and experience of San Francisco-based shared electric mobility firm Scoot Networks, in which it is a major investor, for a multi-modal approach of shared mobility to tackle pollution and congestion problems in the major cities of India. The electric skate-scooter will be offered as a one-person mobility solution that can be hired at low rates in order to navigate short distances across crowded streets.|Eco Friendly Scooter

Anand Mahindra along with other executives of the group and Scoot Networks CEO Michael Keating pitched the ‘kick’ scooter to central ministers as well as Delhi government in order to explore the possibility of bringing shared electric kick scooters here. Union transport minister Nitin Gadkari, environment minister Harsh Vardhan and Delhi chief minister Arvind Kejriwal were present at the showcase along with other dignitaries.

The electric kick scooter is powered by a battery-driven electric motor and can reach maximum speed of 25 kmph. It has a foldable chassis with a large deck in the centre on which the rider stands and its two wheels are much smaller than conventional scooter wheels…

Read More: Business Standard OR BS

Mahindra & Mahindra gains for fifth straight session, hits new high

M&M hit a new high of Rs 940, quoting higher for the fifth straight trading sessions by gaining 6% during the period.

 

Shares of Mahindra & Mahindra (M&M) were quoting higher for the fifth straight trading days, hitting new high of Rs 940, up 2% on the BSE, after the government last week increased the minimum support price (MSP) of kharif crops for 2018-19.

In past six trading sessions, M&M has rallied 6% as compared to 1.5% rise in the S&P BSE Sensex. In past four months, it surged 29% against 7.5% rise in the benchmark index.

According to M&M, the Government’s plan to double farmer income by 2022 is expected to open many new opportunities for Mahindra’s Farm Equipment Sector.(Mahindra & Mahindra share price)

With the Government’s strong focus on improving farm productivity and the adoption of better agricultural practices, the sector is poised for sustained growth. With a normal monsoon forecast by major global weather forecasting agencies, the Farm Equipment Sector is ideally positioned for the near and mid-term, the company said in FY18 annual report.

The Indian auto industry is expected to continue with its growth momentum of F18 when all segments, Passenger Vehicles (PV), Commercial Vehicles (CV), Three Wheelers (3W) and Two Wheelers (2W) reported their highest-ever sales. Excluding 2-Wheelers, the industry grew at 11.9% over the previous year, registering double-digit growth for the first time in seven years, it added.

Analysts at Prabhudas Lilladher maintain ‘BUY’ rating on M&M with a price target of Rs 1,041 as the brokerage remain confident of the company’s domestic tractor business.

“The company’s strategy for its global business ramp up further boosts our confidence as the company is focusing on products & segments which are similar to its domestic tractor portfolio. However, we continue to have concerns over M&M’s domestic UV business, although the 3 upcoming launches in this space can boost volumes ahead,” the brokerage firm said in analyst meets update.

Article source : BS