Automakers focus on exports to increase sales, reduce inventory

Agencies
December 12, 2019

New Delhi, Dec 12: Even as Indian automobile industry's domestic sales performance continues to decline, increased shipments of BS-IV vehicles at attractive prices along with low base effect lifted auto exports to over 17% in November, the third straight month of rise in overseas shipments on a year-on-year (YoY) basis.

Industry insiders and market watchers predict the trend to continue in the coming months to reduce the BS-IV inventory levels.

As per the data furnished by the Society of Indian Automobile Manufacturers (SIAM), the sector's exports across categories was higher by 17.60% at 411,470 units from 349,893 units shipped abroad in November of 2018.

In October, overall exports had grown by 2.72%.

On the other hand, SIAM data showed the sector's total sales declined by 12.05% to 17,92,415 units in November from 20,38,007 units sold during the corresponding month of the previous year.

At present, the domestic market suffers from an economic slowdown which is a culmination of several factors such as high GST tax rates, stagnant wages and a distressed farm sector.

"Exports have improved in both two-wheeler and passenger vehicle segment reporting positive traction in markets outside India. The two segments have shown growth of almost 20% each," said Sridhar V., Partner, Grant Thornton India LLP.

"This healthy traction in exports is a consequence of some of the OEM focus on turning India into a supply hub for markets other than India and have seen acceptability specifically in Middle East, Africa and SAARC regions. It could also be that many are still in BS-IV equivalent and a push in that market is seeing positive results."

According to Suman Chowdhury, President-ratings at Acuite Ratings and Research: "Many of the OEMs have set up manufacturing plants in India to cater to the demand in South Asian and African nations."

"With the significant slowdown in the domestic demand, the focus on exports has increased further. Hyundai, Nissan and Kia Motors have seen a jump in their PV exports in November though the volumes are still insignificant as compared to the domestic volumes."

Furthermore, the data disclosed that passenger vehicles' overseas sales during the month under review rose by 20.37% to 58,562 units this November, on a year-on-year basis.

In terms of passenger cars, exports edged higher by 13.60% to 39,390 units, while utility vehicle' overseas sales grew by 38.16% to 18,909 units.

Conversely, exports of the key indicator of economic activity -- commercial vehicles -- went down by 29.03% to 5,694 units.

The overseas sales of three-wheelers in November rose by 2.04% to 47,827 units.

In the case of two-wheelers, which include scooters, motorcycles and mopeds, exports stood higher by 21.57% to 299,147 units.

The period from April to November 2019 saw the overall automobile exports grow by 3.28%. During the period passenger vehicles and two wheelers exports grew by 5.36% and 6.50%, respectively.

"The growth in two-wheeler exports can be attributed to demand recovery in some key export destinations in African continent as well as Latin America following some stabilisation of macro-economic challenges," said Shamsher Dewan, Vice President, Corporate Sector Ratings, ICRA.

"Apart from two-wheelers, passenger vehicle exports have also grown by 5.3% during FY2020, supported by OEM specific initiative to leverage on manufacturing capacities available in India."

Besides, Dewan said that India's automobile exports are primarily concentrated on nearby markets and developing countries in Africa, Latin America and southeast Asia.

"Accordingly, it is not a reflection of demand recovery in major automobile markets of China, Western Europe etc," Dewan said.

Nonetheless, Fitch Ratings Associate Director Snehdeep Bohra told IANS: "The trend in November coincides with the fact that OEMs are trying to reduce the BS-IV inventory levels to a manageable limit. In this context they seem to have focused on exports."

"However, with some automakers expecting a stable domestic market from next year onwards this may not represent a sustained shift towards exports."

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News Network
January 17,2020

Bengaluru, Jan 17: India’s latest communication satellite GSAT-30 was successfully launched from the Spaceport in French Guiana during the early hours on Friday.

In a press release, ISRO, has stated that the launch vehicle 'Ariane-5 VA-251' was blasted off from Kourou Launch Base, French Ginana at 0230 hours, carrying India’s GSA-30 and EUTELSAT KONNECT for Eutelasat, as per schedule.

The Ariane 5 upper stage in an elliptical Geosynchronous Transfer Orbit.

With a lift-off mass of 3,357 kg, GSAT-30 will provide continuity to operational services on some of the in-orbit satellites.

GSAT-30 derives its heritage from ISRO’s earlier INSAT/GSAT satellite series and will replace INSAT-4A in orbit.

“GSAT-30 has a unique configuration of providing flexible frequency segments and flexible coverage. The satellite will provide communication services to Indian mainland and islands through Ku-band and wide coverage covering Gulf countries, a large number of Asian countries and Australia through C-band," ISRO Chairman Dr K Sivan said.

Dr Sivan also said that “GSAT-30 will provide DTH Television Services, connectivity to VSATs for ATM, Stock-exchange, Television uplinking and teleport Services, Digital Satellite News Gathering (DSNG) and e-governance applications. The satellite will also be used for bulk data transfer for a host of emerging telecommunication applications.”

ISRO’s Master Control Facility (MCF) at Hassan in Karnataka took over the command and control of GSAT-30 immediately after its separation from the launch vehicle. Preliminary health checks of the satellite revealed its normal health.

In the days ahead, orbit-raising maneuvers will be performed to place the satellite in Geostationary Orbit (36,000 km above the equator) by using its onboard propulsion system.

During the final stages of its orbit raising operations, the two solar arrays and the antenna reflectors of GSAT-30 will be deployed. Following this, the satellite will be put in its final orbital configuration.

The satellite will be operational after the successful completion of all in-orbit tests.

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News Network
May 7,2020

Toronto, May 7: Scientists have uncovered how bats can carry the MERS coronavirus without getting sick, shedding light on what triggers coronaviruses, including the one behind the COVID-19 pandemic, to jump to humans.

According to the study, published in the journal Scientific Reports, coronaviruses like the Middle East respiratory syndrome (MERS) virus, and the COVID19-causing SARS-CoV-2 virus, are thought to have originated in bats.

While these viruses can cause serious, and often fatal disease in people, bats seem unharmed, the researchers, including those from the University of Saskatchewan (USask) in Canada, said.

"The bats don't get rid of the virus and yet don't get sick. We wanted to understand why the MERS virus doesn't shut down the bat immune responses as it does in humans," said USask microbiologist Vikram Misra.

In the study, the scientists demonstrated that cells from an insect-eating brown bat can be persistently infected with MERS coronavirus for months, due to important adaptations from both the bat and the virus working together.

"Instead of killing bat cells as the virus does with human cells, the MERS coronavirus enters a long-term relationship with the host, maintained by the bat's unique 'super' immune system," said Misra, one of the study's co-authors.

"SARS-CoV-2 is thought to operate in the same way," he added.

Stresses on bats, such as wet markets, other diseases, and habitat loss, may have a role in coronavirus spilling over to other species, the study noted.

"When a bat experiences stress to their immune system, it disrupts this immune system-virus balance and allows the virus to multiply," Misra said.

The scientists, involved in the study, had earlier developed a potential treatment for MERS-CoV, and are currently working towards a vaccine against COVID-19.

While camels are the known intermediate hosts of MERS-CoV, they said bats are suspected to be the ancestral host.

There is no vaccine for either SARS-CoV-2 or MERS, the researchers noted.

Follow latest updates on the COVID-19 pandemic here

"We see that the MERS coronavirus can very quickly adapt itself to a particular niche, and although we do not completely understand what is going on, this demonstrates how coronaviruses are able to jump from species to species so effortlessly," said USask scientist Darryl Falzarano, who co-led the study.

According to Misra, coronaviruses rapidly adapt to the species they infect, but little is known on the molecular interactions of these viruses with their natural bat hosts.

An earlier study had shown that bat coronaviruses can persist in their natural bat host for at least four months of hibernation.

When exposed to the MERS virus, the researchers said, bat cells adapt, not by producing inflammation-causing proteins that are hallmarks of getting sick, but instead by maintaining a natural antiviral response.

On the contrary, they said this function shuts down in other species, including humans.

The MERS virus, the researchers said, also adapts to the bat host cells by very rapidly mutating one specific gene.

These adaptations, according to the study, result in the virus remaining long-term in the bat, but being rendered harmless until something like a disease, or other stressors, upsets this balance.

In future experiments, the scientists hope to understand how the bat-borne MERS virus adapts to infection and replication in human cells.

"This information may be critical for predicting the next bat virus that will cause a pandemic," Misra said.

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Agencies
January 16,2020

Claiming that e-commerce giants like Amazon import as much as 80 per cent of the items sold on their platforms, small manufacturers' body has said that their business models do not benefit local industry and are creating jobs of delivery boys only.

"Neither manufacturers nor traders are getting any benefit from the business models of Amazon and Flipkart because they largely import their products from China and Korea and sell here. Nearly 80 per cent of their products are imported," said Anil Bhardwaj, Secretary General, Federation of Indian Micro and Small & Medium Enterprises (FISME).

Bhardwaj said that the global e-commerce players generally source and sell products through their own preferred suppliers and as a result a large number of local manufacturers and traders get crowded out.

He listed out deep discounting and buying products from preferred companies as unfair practices.

"Even if they buy products from local suppliers the commission charged is very high," Bhardwaj said adding that the issues related to unfair practices have been raised with Commerce Ministry on multiple occasions.

FISME maintains that the technology-driven retail is way forward and one cannot be oblivious of the benefits it brings to consumers but at the same time the local industry can also not be ignored given its role in job creation.

"If both traders and local manufacturers are crowded out then how would the local industry survive and employment be generated?" asked Bhardwaj.

As Amazon Founder and CEO Jeff Bezos is currently on his three-day visit to India, the local traders are up in arms against the "unfair" trade practices of the tech giant. Delhi-based Confederation of All India Traders (CAIT) has launched a countrywide protest against the company and has organised protests across 300 cities.

In a setback to Amazon and Walmart-backed Flipkart, the fair market watchdog Competition Commission of India (CCI) has ordered probe into the business operations of both the companies on multiple counts including deep-discounts and exclusive tie-up with preferred sellers.

"For the first time some concrete step has been taken against Amazon and Flipkart who are continuously violating the FDI policy in indulging in a vicious racket of controlling and monopolising not only the e-commerce but even the retail trade as well," CAIT National Secretary General Praveen Khandelwal said after the CCI order.

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