Festival season fails to perk up car sales

Carmakers suffered post-festive season pangs in November, with major companies such as Maruti Suzuki India, Hyundai Motor India, Tata Motors and Mahindra & Mahindra reporting a fall in domestic sales.
Honda Cars India and Ford, however, reported an increase in sales during the month, riding on successful models Amaze and EcoSport, respectively. The country's largest carmaker, Maruti Suzuki India posted a decline of 6 per cent in its domestic sales to 85,510 units during the month. Rival Hyundai Motor India saw domestic sales fall 4 per cent at 33,501 units.

General Motors India also reported a 14.14 per cent year-on-year decline in sales at 6,214 units. Ford said its domestic sales grew 33 per cent to 7,909 units last month.

Tata Motors' domestic car sales in November this year also slipped by over 40 per cent year-on-year to 10,376 units, while Mahindra & Mahindra witnessed a 32 per cent drop.

"Post the festive season, the auto industry has turned to further de-growth and continues to remain subdued," said M&M CEO-automotive Praveen Shah said.

Two-wheeler makers, including Hero MotoCorp, Honda Motorcycle and Yamaha, reported sales growth in November. TVS Motors, though reported a decline in sales. Market leader Hero MotoCorp reported a 5.61 per cent year-on-year rise in total sales at 5,30,530 units in November while Honda Motorcycle & Scooter posted a 43 per cent jump in sales at 3,19,080 units. However, TVS Motor's total sales dipped 9.88 per cent to 1,35,218 units.

FMC asks NSEL to reconstitute auction panel with more powers

New Delhi: Commodity markets regulator Forward Markets Commission on Monday asked crisis-hit National Spot Exchange Ltd (NSEL) to reconstitute the committee set up to oversee auction-cum-bidding process and give more powers to the panel to monitor the entire cash flow.

Two months ago, FMC had asked the bourse to set up a committee to oversee auction-cum-bidding process of stocks at warehouses of NSEL, which is engulfed in a payment crisis of Rs 5,600 crore after the exchange was shut following a government order due to violation of some norms.

Besides monitoring the entire cash flow of NSEL, the panel would assist FMC in ensuring that no third party rights on its assets are created or disposed of without the permission of the regulator. PTI

Festival season fails to perk up car sales

Carmakers suffered post-festive season pangs in November, with major companies such as Maruti Suzuki India, Hyundai Motor India, Tata Motors and Mahindra & Mahindra reporting a fall in domestic sales.
Honda Cars India and Ford, however, reported an increase in sales during the month, riding on successful models Amaze and EcoSport, respectively. The country's largest carmaker, Maruti Suzuki India posted a decline of 6 per cent in its domestic sales to 85,510 units during the month. Rival Hyundai Motor India saw domestic sales fall 4 per cent at 33,501 units.

General Motors India also reported a 14.14 per cent year-on-year decline in sales at 6,214 units. Ford said its domestic sales grew 33 per cent to 7,909 units last month.

Tata Motors' domestic car sales in November this year also slipped by over 40 per cent year-on-year to 10,376 units, while Mahindra & Mahindra witnessed a 32 per cent drop.

"Post the festive season, the auto industry has turned to further de-growth and continues to remain subdued," said M&M CEO-automotive Praveen Shah said.

Two-wheeler makers, including Hero MotoCorp, Honda Motorcycle and Yamaha, reported sales growth in November. TVS Motors, though reported a decline in sales. Market leader Hero MotoCorp reported a 5.61 per cent year-on-year rise in total sales at 5,30,530 units in November while Honda Motorcycle & Scooter posted a 43 per cent jump in sales at 3,19,080 units. However, TVS Motor's total sales dipped 9.88 per cent to 1,35,218 units.

FMC asks NSEL to reconstitute auction panel with more powers

New Delhi: Commodity markets regulator Forward Markets Commission on Monday asked crisis-hit National Spot Exchange Ltd (NSEL) to reconstitute the committee set up to oversee auction-cum-bidding process and give more powers to the panel to monitor the entire cash flow.

Two months ago, FMC had asked the bourse to set up a committee to oversee auction-cum-bidding process of stocks at warehouses of NSEL, which is engulfed in a payment crisis of Rs 5,600 crore after the exchange was shut following a government order due to violation of some norms.

Besides monitoring the entire cash flow of NSEL, the panel would assist FMC in ensuring that no third party rights on its assets are created or disposed of without the permission of the regulator. PTI

Triumph Motorcycles aims to win over young Indians.

Britain’s Triumph Motorcycles will start selling its iconic bikes in India on Thursday as it seeks to capture the hearts of wealthy motor heads who ride for passion not function.

Privately held Triumph is following high-end motorcycle makers such as HarleyDavidson and Volkswagen’s Ducati in entering a market where quick-rising wealth is leading to greater demand for expensive toys.

“The best combination on the road is the bike and the road they are the only two people who can talk to each other. I think that culture is coming up in India,” Triumph India managing director Vimal Sumbly said.

Triumph not only has to win over customers, but also has to persuade people to buy touring bikes in a coun
try notorious for poor roads.

Its track record for infrastructure development is miserable compared with China and most other emerging economies, and its failure on this score has sapped growth.

Most Indians commute using motorcycles or scooters and it is common to see families of four or five on a single vehicle snaking through heavy traffic or
even over pavements escaping jams. As the economy slows, two-wheelers comprise the only category of the auto industry to register growth this year.

Sales of powerful bikes, including those from Harley and Eicher Motors’ Royal Enfield, have doubled over the last fiscal year. Industry watchers say strong growth is likely to continue in the medium term. 

The Power of two.

A helicopter pilot who loves to fly—on the road. Giving 29-year-old Delhi resident Rohan Arora the wings is Brutus aka Harley Davidson 883 XL. But even before Brutus, named after Arora’s beloved dog who died, rode into his life, three generations of Arora’s family have been proud owners of Royal Enfields, the ultimate Indian mean machine. As Arora puts it, “I love the thump of the engine. Besides, the bike is perfect for comfortable cruising.”

INDIA’S FIRST CHOICE

Whether it’s the thump, the pricing, safety, fuel-efficiency or comfort, India’s love affair with motorbikes has never been stronger. Of all the sectors that have registered growth in India over the last two decades, the story has been particularly spectacular for the more than `10,000 crore two-wheeler segment. So much so that India now stands next to China and Japan in terms of production and sales. Ease of commuting, the variety, latest technology and enhanced mileage have only added to their popularity.

Despite an overall economic slump, the Indian two-wheeler industry registered a 1.04 per cent growth in April-May 2013 compared to the same period last year. Hero MotorCorp, the biggest two-wheeler manufacturer in the country, sold more

INDIA’S FIRST CHOICE

Whether it’s the thump, the pricing, safety, fuel-efficiency or comfort, India’s love affair with motorbikes has never been stronger. Of all the sectors that have registered growth in India over the last two decades, the story has been particularly spectacular for the more than `10,000 crore two-wheeler segment. So much so that India now stands next to China and Japan in terms of production and sales. Ease of commuting, the variety, latest technology and enhanced mileage have only added to their popularity.

 Despite an overall economic slump, the Indian two-wheeler industry registered a 1.04 per cent growth in April-May 2013 compared to the same period last year. Hero MotorCorp, the biggest two-wheeler manufacturer in the country, sold more than a million units during the same period.

 Says Pawan Munjal, MD and CEO of Hero MotoCorp, “We have crossed the landmark 6 lakh unit sales for October. As despatches are still continuing, the final tally for the month will be well over 6 lakh. This is our highest-ever despatch sales for any month and indeed, a new industry benchmark. While the economy is going through a challenging time and the industry continues to be sluggish, I remain optimistic about the two-wheeler industry. We have had a normal monsoon this year and that is likely to result in good harvest across the country, which will help two-wheeler sales in rural areas.”

The picture only gets better. According to the Society of Indian Automobile Manufacturers (SIAM), the Indian two-wheeler industry is expected to post an annual growth of 11-12 per cent, and the market is expected to double every four years till 2020.

 For 29-year-old Sagar Neil Banerjee, a social media supervisor with WebChutney’s, the tryst with bikes started when he unabashedly stole his father’s Hero Honda CD100 from the garage and took it for a spin. The reprimand that followed failed to shame Banerjee as he went on to steal it over and over again. The curiosity and excitement only increased over the years and Banerjee made bikes his primary vehicle. Most recently, he got himself a Royal Enfield Thunderbird. “This would be my fifth bike, two of which are with me in Delhi and the other three are in my hometown, Purulia, a small town in West Bengal, (and yes, I don’t sell my bikes),” says the enthusiast.

His relationship with them is uncannily emotional. They are not ‘just’ vehicles for this young adult. “It’s a feeling only bikers would understand. It’s so strong that you often feel as though your bike responds to your emotions. I share a very unique connection, as if there is an untold pact between us. They have never left me stranded,” says Banerjee.

The story is similar for PR professional Aman Singh Madaan (25). He takes his Royal Enfield Electra 4S for a spin every day, and is very choosy about who gets to ride pillion. The pleasure in his voice is unmistakable when he describes taking his bike to his ancestral village in Punjab Khor. Wearing an off-white kurta, brown leather juttis and Rayban aviators, he entered the premises of his house with the bike’s signature dhuk dhuk dhuk announcing his entry. The experience, he says, was out of the world. An experience that one can get only on a Bullet. His father, who waited for his arrival was elated to see his son’s shaan ki savari. Madaan bought the silver beauty with his first salary in 2009 and the first time he rode it, he knew it was for keeps. “The registration number is the same as my year of birth. My family and friends call it Bullet 1988,” he says.

Playing a significant role in the sale of bikes has been the recent hikes in petrol prices. According to SIAM, most first-time four-wheeler buyers in rural India and tier II and tier III cities have deferred their purchases. Two-wheelers account for a whopping 76 per cent of market share in the automobile sector in Asia’s third-largest economy, with passenger vehicles accounting for 16.25 per cent.

Hero has a market share of around 56 per cent in the overall domestic two-wheeler market. At 25.5 per cent, Bajaj comes a distant second, but maintains a healthy lead over Honda and TVS, which have 7.5 per cent and 6.2 per cent market share, respectively. While the auto sector in India is under pressure due to a sluggish economy, the two-wheeler segment is expected to outperform the rest of the industry. The export potential for India’s two-wheelers is huge given that Indian auto companies have under-penetrated potential export markets. Exports account for around 15 per cent in volume terms for the industry.

Meanwhile, the domestic two-wheeler industry recorded sales volumes of 13.8 million units in 2012-13, a growth of 2.9 per cent over the previous year.

Domestic high-end vehicles such as Royal Enfield and KTM (promoted by Bajaj) have been well received. Ajay Shephiya, auto analyst with Centrum Broking adds that high-end segments are faring much better than other value segments. “Royal Enfield is doing really well. Their monthly sales are going up. This is mostly to do with easing of their earlier supply constraints. The waiting period has come down from 6-8 months to 4-5 months due to increase in capacity,” he says.

He says that close to 50 per cent of the total volumes come from the top 15 cities while the rest is from the remaining regions. “There is no clear indication as where this demand is coming from. It depends on the brand and biker preference,” he adds.

For Chennai-based Ameen Nawaz Khan, biking is more than a pastime and a sport—it’s a full-fledged passion—a passion that was fuelled while in school and right through college. The bike he owns now is a 400cc Honda Super 4. What he likes about his bike is the easy facility it provides on public roads as well as racing tracks. The first superbike that the 48-year-old remembers riding is the Honda CBR 600 RR. But Ameen is very clear that superbikes should be ridden only on the race tracks. “Transport it to the racing track on a truck if need be and do whatever you want here,” he advises.

Also believing in driving safe is Hyderabad-based company director Mihir Shah. The proud owner of a Honda Fireblade 1000cc, Shah denies the thrill of speed, insists he is just like any other responsible rider, even though he is passionate about his machine. “Blame some of it on the movies in recent times, as they show bikers in less than a positive light. It can be dangerous if you want it to be. But if you are riding for your own pleasure and not to show off, then it can be a very pleasurable activity in the bargain,” says the bike enthusiast.

SUPERBIKES LEAD

Of the 805 superbikes sold during the period between April and October 2013, the Indian arm of iconic US company Harley-Davidson Inc sold the chunk of 629 units. Harley Davidson, Suzuki Motorcycle India and Honda Motorcycle and Scooter India were quick to spot the opportunity and launched their best selling superbikes in India. Precision Motor India also brought in Ducati bikes from 2009 as CBU. British bike manufacturer Triumph is all set to launch its bikes in India soon.

Acknowledging the significance of India in Triumph’s global strategy, Paul Stroud, director sales & marketing (Triumph global) says: “2013 is a very crucial year for Triumph Motorcycles in India and we are confident about the timing of our market entry. In the past few months, we have carefully assessed the market landscape and will be making well-honed efforts to provide our discerning customers with a complete brand experience.”

Words that will sound like music to the ears of superbike fanatics like 28-year-old Lotus Sabu from Thiruvananthapuram. Sabu owns a Ducati and has clocked 292 km/hr on a Honda Fireblade (CBR 1000RR) and worships Valentino Rossi.

“Kerala has some very talented motorbike riders,” says Sabu, who was a member of the stunt biking team, Ghost Ryderz. The love for bikes was cultivated right from childhood; as a collegiate he rode a Yezdi. It was just a matter of time before superbikes grabbed his attention. He thought of buying one for years, though he was able to realize his dream only in 2012 when he got himself a Suzuki GSX-R 1000. He then traded his Honda CBR 1000 for a Ducati, which he now rides. Quality, good braking system, power, sound, look and weight are the features that make him go gaga over superbikes. “It’s the equivalent of flying a fighter jet,” he says. Another Rossi and superbike worshipper is Chennai’s Roya Khaleeli (19). With three older brothers in the family, it was not surprising that Roya’s interests grew to include motorbikes and cars. As a 15-year-old, she drove a car and then bikes caught her fancy. Not just any bike, but the one that belonged to her brother—a Yamaha R15. Her brother abroad for some time, Roya utilised the opportunity to ride it, with her dad as coach. Last year, she rode it all around the place. Now, she has got her sights set on the latest version of the Yamaha R1 5 and is hoping her father will do the honours.

The best thing that attracted her about the super bike was the way it looked and also the feel. The huge rush of adrenaline that it provides is better than a car, she feels. The best she has managed is 100 km/hr.

With so many seekers, it’s little wonder that this year, the market for superbikes over 800 cc displacement is estimated at 1,500-1,600 units, which will grow to 5,000 by 2015.

Says Anoop Prakash, managing director, Harley-Davidson India: “The constant growth of India’s middle-class has resulted in a growing number of affluent customers that seek new leisure experiences. The premium motorcycle segment in India has grown over the last three years, with consumers looking for riding experiences coupled with style, comfort and performance.”

Sonia Jain (27) should know. Jain, an assistant manager of motor sports marketing and promotions at Yamaha India rides an 1600cc Yamaha MT01. She is the only Indian female Yamaha licensed instructor and is spearheading the Yamaha Female Riding Training Programme. “Started in January, the programme trains young girls to ride bikes and scooters and we train 80 girls per day and go out for these training sessions 10 times a month,” she says.

A complete tomboy, Jain was always more interested in purchasing a bike than designer wear. “It was in 2008 that I convinced my parents to allow me to participate in the Yamaha rally from Manali to Rohtang Pass. We did tasks, rode, blogged and that trip got me completely hooked. Having subsequently ventured into various Himalayan trips, she started taking part in pan-India rallies and rode close to about 8,000 km.

 Among women riders, Ambika Sharma (34), managing director of Pulp Strategy Communications is the only woman in the country who owns a Harley Davidson Road King. She loves the fact that it packs some mean power, equipped with a 1700 cc Twin Cam 103 engine and a 6-Speed Cruise Drive transmission.

 “I found it perfect for long trips and outstation touring. The Road King allows me to plan long distance trips with ample space, power and a well balanced posture,” she says. She rides every weekend, sometimes alone, sometimes with her friends. Unwanted attention from people on the road is inevitable but she says, it’s the bike they check out, more than her.

Bajaj Pulsar

The first sports bike launched in India, in November 2001. Available in variants Pulsar 135, 150 and 180 and the new Pulsar DTS-Fi 200 and 225, the bike has made its presence felt with superior handling and macho styling. The one million plus sales mark was testament of popularity.

Features

Digital Twin Spark ignition or DTS-i technology

Power: 16.5Bhp (12.28kw) at 800 rpm in Pulsar 150 and 13.5Bhp (9.94kw) at 8000 rpm in Pulsar 180

Torque: The Pulsar 150 has a maximum torque of 15.22nm at 6000rpm and the Pulsar 180 a maximum torque of 12.28nm at 6500rpm

Price: Starts from Rs 60,000 and goes up to Rs 87,000 approx.

Hero Honda Splendor

The most successful bike in India. The Splendor was synonymous with the words “100cc bike” for almost two decades. After Hero Motor Corp became a single brand entity, the Splendor Pro was launched.

Features

Power: The power and soul is the 97cc Honda engine

Speed: 0 to 60kmph in less than 9 seconds

USP: Ride and seating position

Mileage: The traditional 4-speed gearbox manages an impressive 65kmpl

Price: Starts at Rs 42,000 approx

Bajaj Discover

Launched in 2009, it became one of the top selling bikes in the segment. It was the first Bajaj bike to feature the improved version 2.0 of the DTS-Si engine. The Discover 100 is also one of the few bikes to have a five-speed gearbox in its segment.

Features

Power: A single cylinder, 4-stroke, air-cooled 94.38cc engine puts out a maximum power of 7.7ps at 7500 rpm and a maximum torque of 7.85nm at 5000rpm.

Speed: The 5-speed transmission offers extra push on the bike’s performance.

Mileage: 91kmpl

Price: Rs 46,000

TVS Star City

A commuter’s two-wheeler, the TVS Star City offers great handling and returns best in class mileage amidst the other 110cc bikes in the country. Stylish body graphics makes the Star look impressive and distinct.

Features

Power: A superior 109.7cc engine that’s of a 4-stroke nature gives out 6.1KW at 7500rpm and a punching 8.1nm of torque at 5000rpm.

Mileage: Coupled with a 4-speed manual gearbox, the Star delivers a class leading mileage of 88kmpl

Price: Starts from Rs 40,000

Hero Xtreme

Successful both commercially and critically. This is in the 150cc segment.

Power: Like the CBZ Xtreme, the new Hero Xtreme is a 149.2cc bike that is powered by a single cylinder 4 stroke engine that can deliver a max power of 14.4 PS and torque of 12.80nm.

Mileage: 66 kmpl

Price: Starts at Rs 65,000 approx.

We are making Harley Davidson accessible at a better price point



Harley Davidson India MD Anoop Prakash, who brought the iconic US bake-maker into the country in 2009, has made sure India becomes an important zone for the company.

Harley, which started assembling bikes at its completely-knocked-down unit at Bawal, Haryana, in 2011, is now planning to make new models – the Street 750 and the Street 500 — from early next year.

The company will also export to Asian and European countries from here. In an interview with Business Line, Prakash shares future plans of the company. Edited excerpts: -

Tell us more about choosing India for manufacturing the Street 750 and the 500…

The decision to launch the Street series is led by our customers’ response globally – 3,000 customers were interviewed in 10 different countries. The feedback we got from young customers from all over the world, including India, led us to create this product and that’s why you see such a distinct set of features and functions in these bikes. For example, in the 750, there is a higher ground clearance, liquid cooled power-train, narrow chassis, new suspension and dark custom kind of looks.

With this manufacturing facility, we will be able to respond to customers all over the world. Earlier, all our supply chain originated in the US. But now, we can respond to the customers faster.

When are you launching the Street 750 and the 500? How will you price them?

We will unveil the Street 750 at the India Bike Week in Goa, to be held in January, and formally launch it in India at the Auto Expo in February. After the Auto Expo, we will start bookings and deliveries. We have not decided when exactly we will launch the Street 500. We want to first focus on the 750 as it’s been customers driven. You can expect the Street 500 by 2015.

The 750 will be priced at under Rs 5 lakh on road. Right now, both have been launched in the US – at $ 6,700 (Rs 4.15 lakh, for the Street 500) and $ 7,500 (Rs 4.65 lakh, for the Street 750).

With manufacturing in India, the prices of your products will also come down. Do you see any competition from other players?

I think we led the leisure motorcycling culture to develop in India. So, when it comes to leisure motorcycling, we think our brand is strong and we are at the leadership position. The Street 750 and the 500 will meet the requirements of young bikers. Making Harley Davidson accessible at a better price point is allowing them to get the bike that they want, rather than them waiting till they can afford it. We have financing schemes with HDFC Bank and ICICI Bank, which have helped customers get our bikes. About 50 per cent of our motorcycles are sold through these banks with good EMI schemes (11-12 per cent interest).

What will be the mix of components supply for them in India?

Our components strategy is global. Some will be imported and some will be local. We will be increasing the use of Indian components because of the plant here.

When will you start manufacturing other bikes?

This is just for the Street series right now. There is no other plan for now, as it all rests on how we do with the Street. Right now, the focus is on delivering the Street – producing it and getting it out in volume and grow it in different markets.

What is your sales target this year?

We can give cumulative numbers. From 2010 to the end of this year, we hope to sell 4,000 bikes. From mid-2010 to the end of last year, we sold nearly 2,000 units.

Any dealer expansion plan?

Right now, we have 10 dealers in India and will add three more by the end of this year— in Pune, Goa and Jaipur. Next year, we would hopefully launch two or three more. We are targeting some more satellite cities like Surat, Coimbatore, Calicut and Guwahati.

Eicher Motors: The Royal Enfield show continues



Eicher Motors stock gained about six per cent in three sessions after announcing better than expected performance from its Royal Enfield motorcycle division. The performance helped offset some of the volume concerns for the company's commercial vehicle (CV) joint venture with Volvo. While consolidated sales grew 14 per cent year-on-year to Rs 1,683 crore, Ebitda (Royal Enfield contributes 70 per cent of consolidated Ebitda) was up 41 per cent to Rs 157 crore. Adjusted profit after tax (excluding one-off items) was at Rs 86 crore up 33 per cent.

While the motorcycle sector growth has been flattish, the company has sold 60 per cent more bikes in the September quarter, against the year-ago quarter. Though the commercial vehicle venture is expected to struggle on the volume front given large discounting and poor demand, considering the annual production targets of 175,000 and 250,000 for CY13 and CY14, respectively, expect motorcycles volumes to grow by 54 per cent in CY13 and 43 per cent in CY14.  

On the new product front, the company is planning to launch its Continental GT motorcycle in India at the end of November. The company launched the bike globally (US, UK and Europe) in the September quarter and has been priced at $6,000 or in the Rs 3.6-4 lakh bracket. The company has also lined up a new range of above five-tonne trucks and buses going ahead.

Given the strong margins of its motorcycles business and prospects going ahead, most analysts have a buy on the stock with a target price in the range of Rs 4,200 to Rs 4,400.

In additions to motorcycles, the key trigger for the company is the increased outsourcing of engines by the Volvo group from the joint venture's medium duty engine project. Macquarie analysts have an outperformer rating with a target of Rs 4,320 due to its multiple levers of growth – fast growth in leisure bikes, an expanding CV portfolio and the production ramp-up in the engine business. The recent run-up in the stock means near-term upsides are limited from the current levels of Rs 4,205. Hence, a correction could be a good entry point.

Two-wheelers outperform

The outperformance by the motorcycle segment has been the key highlight with volumes growing at 61 per cent year-on-year. Volume growth over the last five quarters has been in the 45-60 per cent range. Higher volumes (which helped improve operating leverage), better product mix (more sales of its 500 cc bikes) and lower costs helped the Royal Enfield division (motorcycles) to record its highest Ebitda margin at 19.3 per cent. This is over 420 basis points more than the year-ago margin number and 150 basis points over the June quarter. Given the six-month waiting period for its bikes, the company is focussing on ramping up its production at the Oragadam plant in Tamil Nadu.

Commercial vehicles resilient

In contrast, CV sales have been severely impacted by a slowing economy and drying of demand. Though volumes fell by 13 per cent year-on-year for the September quarter, the company managed to keep revenue growth in the positive territory, up 1.3 per cent. This was due to the rise in average selling prices, which were up 16 per cent year-on-year on the back of imported Volvo trucks, as well as ramp-up in the company's medium duty engine project.

Kinetic plans to launch hybrid electric three-wheeler

Kinetic Engineering Ltd. (KEL) is planning to launch its hybrid electric three-wheeler (auto) in the next 12 months.

“Research work on the development of the hybrid electric auto engine in collaboration with the Council of Scientific and Industrial Research (CSIR) is in advanced stages, and we are hopeful of completing the project in the next few months,” Vice-Chairperson of KEL Sulajja Firodia Motwani said here on Thursday.

Speaking on the sidelines of the third Mega Trends Road-show, organised by the Federation of Indian Chambers of Commerce and Industry, Ms. Motwani admitted that it would be a challenge to keep the cost of the hybrid electric three-wheeler as low as possible. “With the help of smart engineering and new technology, we will try to keep its price much lower though expecting parity with the traditional three-wheelers will be too much for asking in the initial stages,” she noted.

Stating that manufacturing renewable energy-based transport vehicles was an evolving sector, she said the automotive manufacturers working on the technology were expecting sops from the government to keep the prices low. Ms. Motwani noted that the Centre had already promised to spend Rs.20,000 crore on the National Electric Mobility Mission Plan 2020.

“The industry is expecting a law (an Act) to support the national policy on electric mobility in the next session of Parliament,” the Vice Chairperson said. She envisaged a huge demand for vehicles run with renewable energy in the next ten years.

On the battery-operated vehicles launched by KEL earlier this year, Ms. Motwani said they were doing well in the eco-tourism, leisure/sports, corporate, pharmaceutical and hotel sectors apart from airports and railway stations.

Some companies were importing the vehicles and there were some local players but KEL was the only national player in the segment, she said when asked about the competition.

Keywords: Kinetic Engineering Ltd., hybrid electric three-wheeler, autorickshaw, Sulajja Firodia Motwani