Auto wrap: Delhi govt issues guidelines for vehicle scrapping, vehicle makers secure future supplies through tie-ups

Government of Delhi has taken yet another proactive step towards putting a curb on vehicular pollution by setting up a mandatory vehicle scrapping system. This is even as the insurance regulator made it mandatory for buying multiyear cover for third party policies. Here is the complete list of all the major developments in the automotive segment happened this week

Engine manufacturer Greaves Cotton said it will acquire a 67 percent stake in Ratan Tata-backed Ampere Vehicles for Rs 77 crore valuing the Singapore-based, 10-year old electric vehicle maker at Rs 115 crore. With this proposed acquisition Greaves Cotton hopes to accelerate product and technology development process especially for last mile mobility in the electric vehicle space.

The six-fold hike in insurance premium for third party covers will hit demand for two-wheelers dearly, while the impact on car sales is expected to be marginal. Budget bikes, or those which come powered by a 100cc engines, will likely be hit the most given their high level of price sensitivity.

Ducati has commenced bookings for the Scrambler 1100, which has launched in India at a price tag of Rs 10.91 lakhs (ex-showroom). The two-wheeler arrives a few years after its smaller sibling, the Scrambler 800. The bike gets a 1079cc L-Twin engine with desmodromic valves capable of producing 86 hp at 7,600 rpm and 88 Nm of peak torque from as low as 4,750 rpm.

The Delhi government, on Friday, updated the scrappage policy on private vehicles through a notification. This notification is titled ‘Guidelines for Scrapping of Motor Vehicles in Delhi, 2018’. It states that petrol vehicles above the age limit of 15 years and diesel vehicles older than 10 years, can now only be scrapped at yards licensed by the government.

Fiat Chrysler Automobiles has responded to Mahindra and Mahindra's (M&M) claim in the ongoing tussle between the two giants over the Indian company's Roxor vehicle. Fiat has said that it expects the district court in Michigan to disagree with Mahindra’s claims in a design copyright infringement case that seeks to disallow the Indian company from selling the off-road vehicle in the US.

Honda Motorcycle and Scooter India (HMSI) the country’s second largest two-wheeler maker bagged a supply deal with Drivezy (formerly JustRide) for 3,000 units of Activa 5G and Cliq scooters. The deal is purely a supply contract and Honda has not picked up any equity in Drivezy. Based in Bengaluru Drivezy is into self-drive vehicle rental business with an inventory of cars, utility vehicles, motorcycles and scooters.

But Korean car brand Hyundai became one of the leading investors in car rental start up Revv picking up a stake in the Hyderabad-based company. The deal also encompasses running Hyundai cars in their fleet in the future while also looking after vehicle maintenance contracts and performance evaluations.

Similarly TVS Motor Company, the Chennai-based two-wheeler major, has quietly scaled up its investment in RentOnGo, a Bengaluru-based start-up that manages a fleet of bikes and scooters, among other items, to be given out on rent. TVS now owns 30 percent in the company.

Vehicle makers have increasingly realized that buyers who use their vehicles for non-commercial purposes (personal buyer) will form a big chunk of the market in the future given the growing concept of shared mobility.

Cut-throat competition has forced some of the companies into entering private deals like this. For a majority of buyers in India, a vehicle is considered as an aspirational product. Performance and service back-up becomes secondary. Car and bike buyers tend to choose only form those brands which they have used before and are satisfied with it.

In such a scenario is becomes difficult for companies to break into the list of probable buys. But with concepts such as shared mobility where users get to touch-n-feel the product directly it opens a gateway for auto manufacturers. As against the earlier case of the user not even stepping inside the showrooms the user is now using one of the company’s products.

Technology has become a major enabler. It has made significant in-roads in metros and other major cities. Besides cab aggregators such as Ola and Uber vehicle users are increasingly looking at self-drive/ride rental vehicles for intra-city commute. This provides a new opportunity for vehicle manufacturers to tap into.

Not only do rental vehicles do away with the concept of owning the vehicle it also allows consumers to drive or ride the vehicle themselves. Rates are charged on hourly or daily basis depending on the option chosen. There are designated pick up and drop off points for easy access too.