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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Agencies
February 27,2020

Feb 27: With the window to submit comments on India's proposed personal data protection law closing on Tuesday, a period of anxious wait for final version of the Bill started for social media firms.

This comes even as global Internet companies have called on the government for improved transparency related to intermediary Guidelines (Amendment) Rules and allay fears about the prospect of increased surveillance and prompting a fragmentation of the Internet in India that would harm users.

As per the proposed amendments, an intermediary having over 50 lakh users in the country will have to be incorporated in India with a permanent registered office and address.

When required by lawful order, the intermediary shall, within 72 hours of communication, provide such information or assistance as asked for by any government agency or assistance concerning security of the state or cybersecurity.

This means that the government could pull down information provided by platforms such as Wikipedia, potentially hampering its functioning in India.

In the open letter to IT Minister Ravi Shankar Prasad, leading browser and software development platform like Mozilla, Microsoft-owned GitHub and Cloudflare earlier called for improved transparency by allowing the public an opportunity to see a final version of these amendments prior to their enactment.

According to a Business Insider report, Indian users may lose access to Wikipedia if the new intermediary rules for internet and social media companies are approved.

Since the rules would require the website to take down content deemed illegal by the government, it would require Wikipedia to show different content for different countries.

Anusha Alikhan, senior communications director for Wikimedia told Business Insider that the platform is built though languages and not geographies. Therefore, removing content from one country, while it is still visible to other country users may not work for the company’s model.

India is one of Wikipedia’s largest markets. Over 771 million Indian users accessed the site in just November 2019.

Also read: Explained: What is the Personal Data Protection Bill and why you should care

The Personal Data Protection Bill, 2019, which was introduced in Lok Sabha in the winter session last year, was referred to a Joint Parliamentary Committee (JPC) of both the Houses.

The government last month decided to seek views and suggestions on the Bill from individuals and associations and bodies concerned and the last date for submitting the comments was on Tuesday.

Prasad, while introducing the Personal Data Protection Bill, 2019, in the Lok Sabha on December 11, announced that the draft Bill empowers the government to ask companies including Facebook, Google and others for anonymised personal data and non-personal data.

There was a buzz when the Bill's latest version was introduced in the Lok Sabha, especially the provision seeking to allow the use of personal and non-personal data of users in some cases, especially when national security is involved.

Several legal experts red-flagged the issue and said the provision will give the government unaccounted access to personal data of users in the country.

In their submission to the JPC, several organisations also flagged that the power to collect non-personal and anonymised data by the government without notice and consent should not form part of the Bill because of issues regarding effective anonymisation and potential abuse.

"Clauses 35 and 36 of the Bill provide unbridled access to personal data to the Central Government by giving it powers to exempt its agencies from the application of the Bill on the basis of various broad worded grounds," SFLC.in, a New Delhi-based not-for-profit legal services organisation, commented.

The Software Alliance, also known as BSA, a trade group which includes tech giants such as Microsoft, IBM and Adobe, among others said that the current version of the privacy bill pose substantial challenges, including the sweeping new powers for the government to acquire non-personal data, restrictions on data transfers, and local storage requirements.

"We urge the Joint Parliamentary Committee, as it considers revisions to the Bill, to eliminate provisions concerning non-personal data from the Personal Data Protection Bill and to remove the data localisation requirements and restrictions on international data flows," said Venkatesh Krishnamoorthy, Country Manager-India, BSA.

The Personal Data Protection (PDP) Bill, 2019 draws its origins from the Justice B.N. Srikrishna Committee on data privacy, which produced a draft of legislation that was made public in 2018 ("the Srikrishna Bill").

The mandatory requirement for storing a mirror copy of all personal data in India as per Section 40 of the Srikrishna Bill has been done away with in the PDP Bill, 2019, meaning that companies like Facebook and Twitter would be able to store data of Indian users abroad if they so wish.

But the bill prohibits processing of sensitive personal data and critical personal data outside India.

What is more, what constitutes critical data has not been clearly defined.

As per the proposals, social media companies will have to modify their application as they are required to have a system in place by which a user can verify themselves.

So legal experts believe that some system to upload identification documents should be there and something like the Twitter blue tick mark should be there to identify verified accounts.

"The 2019 Bill introduces a new category of data fiduciaries called social media intermediaries ('SMIs'). SMIs are a subcategory of significant data fiduciaries ('SDFs') and will be notified by the Central government after due consultation with the DPA, or the Data Protection Authority. Clause 26(4) of the Bill defines SMIs as intermediaries who primarily or solely enable online interaction between two or more users," SFLC.in said.

"On a plain reading of the definition, online platforms like Facebook, Twitter, YouTube, TikTok, ShareChat and WhatsApp are likely to be notified as SMIs under the Bill," it added.

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Agencies
May 22,2020

Kochi, May 22: During the nationwide COVID-19 lockdown, Kerala recorded the highest number of cyber attacks followed by Punjab and Tamil Nadu, a study by anti-virus software firm K7 Computing said on Thursday.

In a statement issued in Chennai, the company said its K7 Computing's Cyber Threat Report, a comprehensive analysis of cyber attacks during the lockdown has found that Kerala recorded the highest number of cyber attacks during this period. The report analyses various cyber attacks within India during the pandemic and reveals that threat actors targeted the state with COVID-themed attacks aimed at exploiting user trust.

In Kerala, regions like Kottayam, Kannur, Kollam, and Kochi saw the highest hits with 462, 374, 236, and 147 attacks respectively, while the state as a whole saw around 2,000 attacks during the period - the highest thus far in the country.

This was followed by Punjab with 207 attacks and Tamil Nadu with 184 attacks, the company said.

The sudden surge in the frequency of attacks witnessed from February 2020 to mid-April 2020 indicates that scamsters across the world were exploiting the widespread panic around coronavirus at both the individual and corporate level.

These attacks aimed to compromise computers and mobile devices to gain access to users' confidential data, banking details, and cryptocurrency accounts.

The key threats seen during this period ranged from phishing attacks to rogue apps disguised as COVID-19 information apps that targeted users' sensitive data. Phishing attacks were noticed more in Tier-II and Tier-III cities while the metros fared better. Smaller cities saw over 250 attacks being blocked per 10,000 users.

Users from Ghaziabad and Lucknow seem to have faced almost 6 and 4 times the number of attacks as Bengaluru users.

According to the statement, a majority of the recorded attacks were phishing attacks with sophisticated campaigns that could easily snare even the most educated users. These attacks were aimed at heightening users' fears and creating a sense of urgency to take action.

K7 Labs noticed phishing attacks where scamsters posed as representatives of the United States Department of Treasury, the World Health Organization (WHO), and the Centres for Disease Control and Prevention (CDC), the company said.

Users were encouraged to visit links that would automatically download malware on the host computer such as the Agent Tesla keylogger or Lokibot information-stealing malware, infamous banking Trojans such as Trickbot or Zeus Sphinx, and even disastrous ransomware.

Other attacks included infected COVID-19 Android apps like CoronaSafetyMask that scam users with promises of masks for an upfront payment; the spyware app Project Spy; and seemingly genuine apps that are infected with dangerous malware like banking Trojans such as Ginp, Anubis and Cerberus.

"Covid-19 has created an ideal situation for various threat actors to target individuals and enterprises alike. The panic caused by the stringent lockdown measures and rapid spread of this virus has left many people looking for more information on the situation," J. Kesavardhanan, Founder and CEO of K7 Computing was quoted as saying in the statement.

"Threat actors exploit this fear to their advantage and scam users into downloading malicious software and divulging sensitive information like banking codes. The need to be cyber cautious has never been greater. This is more so in the case of corporates who have adopted a work from home policy hurriedly without adequate cyber hygiene. We have seen an increase in attacks on enterprises and SME employees as well," he added.

Such attacks are expected to continue till normalcy returns. Social engineering attacks targeted at winning users' trust will gain momentum.

Healthcare institutions, well-known government offices, and international organisations will continue to be a prime target throughout the pandemic, the statement said.

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Agencies
June 18,2020

New Delhi, Jun 18: Vodafone Idea on Thursday told the Supreme Court that it has incurred Rs 1 lakh crore losses as it insisted it is not in a position to furnish bank guarantees.

A bench comprising Justices Arun Mishra, S. Abdul Nazeer, and M.R. Shah, taking up the adjusted gross revenue (AGR) matter through video conferencing, directed the telecom companies to submit their financial documents and books for the last 10 years.

Asking Vodafone if it was a foreign company, the bench said that how can the company say it would not furnish any bank guarantee.

"What if you fly away overnight in future without paying anything?" it asked.

Senior advocate Mukul Rohatgi, representing Vodafone Idea, denied his client is a completely foreign firm and cited before the bench its tie-ups and investments.

Vodafone owes over Rs 58,000 crore as AGR dues and so far, has paid close to Rs 7,000 crore.

Rohatgi contended before the court that the telecom company is in a tough situation, and cannot furnish any fresh bank guarantee, as profits have eluded the company in past many quarters. He submitted before the bench that Rs 15,000 crore bank guarantees are lying with the government, and his client's losses are over Rs 1 lakh crore.

"I cannot offer any more surety," he informed the bench.

Justice Mishra noted that this is public money and these dues should be recovered. "Do not tell us that you will pay if you were to make profits... the money must come," he noted.

Justice Shah observed that the telecom industry is the only industry which earned during the Covid-19 pandemic. "After all, this money will be used for public welfare", he said.

Rohatgi argued that his client would have to fold up if orders were issued to clear dues tomorrow. "11,000 employees will have to go without notice, as we cannot pay them," he added.

Senior advocate Abhishek Manu Singhvi, appearing for Bharti Airtel, contended before the court that out of Rs 21,000 crore AGR dues, the company has already deposited a sum of Rs 18,000 crore.

He argued that his client has given a bank guarantee, in excess of demand, to DoT, and supported the proposal for phased repayment of remaining AGR dues. He insisted that the company needs to sit down with the government and calculate the dues. Airtel owes Rs 25,976 crore after paying Rs 18,000 crore, as per the government.

Senior advocate Arvind Datar, representing Tata Telecom, informed the bench that his client has paid Rs 6,504 crore in AGR dues so far, and furnishing a bank guarantee may adversely impact investments in the sector.

The total AGR dues are close to Rs 1.5 lakh crore.

The top court will now take up the matter in the third week of July.

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