DECEMBER 20239TOP STORIESSKODA TO ENTER INDIAN EV SECTOR & INCREASE MANUFACTURING EFFICIENCYSkoda Cars Volkswagen India intends to launch new models and refresh existing ones in 2024, as well as enter the electric vehicle (EV) segment, while also significantly increasing exports of made in India vehicles. According to its group managing director Piyush Arora, this will help the Czech firm increase capacity utilisation at its Aurangabad and Chakan plants to more than 90 percent from the current 70-75 percent, making the coming year critical for its India operations.Volkswagen Group invested 1 billion euros in India as part of its India 2.0 strategy, announced in 2018, to locally develop multiple models at various price points, with Skoda leading the India operations. After experiencing some success with the strategy, the group is now finalising investment and timelines for the next phase of growth.It intends to launch the next generation of its flagship model, the Superb, in 2024, while SUVs will lead its future product strategy in India, according to Arora. Along with the Superb, Skoda will launch a mid-size SUV, its first battery-electric vehicle, and a refresh of its existing models, he said.According to Arora, sedans, which account for 10 percent of the overall passenger car market (mid-size and compact sedans and hatchbacks), will continue to be popular, even as buyer preference has shifted to SUVs, which account for one in every two passenger vehicles sold."While the overall body styling has shifted to SUVs, I am still pleased that we decided to offer more sedans than SUVs as part of India 2.0." While sedans are not gaining segment share, the overall market is growing, according to Arora. "There are sedan lovers, and they aren't going away." We will not abandon the sedan, and we will continue to offer sedans." GOVERNMENT TO DISBURSE RS.79 CRORE UNDER PLI IN Q4"The government is expected to provide financial incentives of Rs 79 crore for white goods under the PLI in the fourth quarter of this fiscal as some profitable companies start production," a senior official said. The Home Appliance Liaison Initiative (PLI) program encourages the construction of air conditioners and lighting units.The official also said that Rs 11,000 crore of incentive spending for various sectors under the scheme during the current fiscal will fall. And most of the spending will come in the last financial year. The white goods segment is expected to spend around Rs 79 crore in the last quarter, said the official. In the household appliances sector, 15 of the 64 selected beneficiaries of the PLI program have started production. These 15 people have been selected for a pregnancy period until March 31, 2022. The rest of the recipients have opted for a pregnancy period until March 31, 2023, and are in different stages of implementation. The plan will be implemented over seven years, from 2021-22 to 2028-29, with an expenditure of Rs 6,238 crore.Asked about expansion plans for businesses such as toys, an official said, "We will review the plan and then take a decision." We are keeping records and would like to update you on progress at this time. In some areas, progress is better. In others, change is needed. Inter-ministerial discussions are therefore ongoing."
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