TVS Motor bikes into global third spot

TVS Motor bikes into global third spot


The global two-wheeler hierarchy has undergone a rare shift in CY2025, with TVS Motor Company overtaking Yamaha to become the third-largest manufacturer by volume, marking a milestone for India’s auto industry. But the achievement also underscores a deeper structural gap: Collectively, Indian manufacturers continue to trail their Japanese rivals by over 10 million units annually.

Honda alone sells more than 20 million units globally, while Yamaha and Suzuki together outpace the combined volumes of India’s ‘Big Three’ — Hero MotoCorp, TVS Motor, and Bajaj Auto. For TVS, the more immediate challenge lies closer home, where it trails Hero and Honda in the domestic market.

Closing the gap

The gap, however, is narrowing.

TVS Motor’s rise has been driven by a strategy anchored in outpacing industry growth. “We are confident that we will do better than the industry growth, both in domestic and international markets,” Managing Director KN Radhakrishnan said during a recent earnings call.

This outperformance is already visible in retail trends. According to Federation of Automobile Dealers Associations (FADA) data for FY26, TVS grew its retail volumes by 22.49 per cent, way beyond the industry’s 13.4 per cent growth.

KN Radhakrishnan, Managing Director, TVS Motor Company

Its market share rose to 18.89 per cent from 17.49 per cent a year earlier, while Hero MotoCorp’s share edged down to 28.4 per cent. The shift is even more visible against Honda — the gap between Honda Motorcycle and Scooter India and TVS narrowed to 6.14 percentage points in FY26 from 7.88 percentage points a year earlier.

Premiumisation

At the core of this momentum is a calibrated shift toward premiumisation. The company has leaned into feature-rich motorcycles and scooters such as the Raider, Apache range, Jupiter, and Ntorq.

“Premium and super-premium are growing faster,” Radhakrishnan said. This shift is being validated — and increasingly seen as structural, rather than cyclical.

“Growth is being driven by a richer domestic vehicle mix and higher export volumes,” Axis Securities said in a recent sector note, pointing to improving realisations and stronger product positioning.

Kotak Institutional Equities, in its March quarter earnings preview, endorsed this view and expects this shifting mix to continue driving earnings improvement.

Together, these assessments suggest that TVS Motor’s growth is not merely volume-led but increasingly also quality-led — better pricing, stronger mix, and a widening presence in higher-margin segments.

The strategy is also portfolio-led. “We always look at the total portfolio contribution… we don’t look segment-wise,” Radhakrishnan said.

A changing demand cycle

This positioning is reshaping the domestic market. TVS is capturing urban demand through premium products while riding a rural recovery. FADA data shows rural growth at 13.05 per cent and urban growth at 13.62 per cent in FY26, pointing to a convergence that increasingly favours higher-spec models.

The traditional divide between rural and urban consumption is narrowing, expanding the addressable market for premium offerings.

“With the kind of infrastructure getting built in India… mobility needs… and affordability, I’m a firm believer that 8–9 per cent CAGR is sustainable,” Radhakrishnan said.

Exports power growth

International markets are emerging as a key growth engine. TVS has expanded across Africa and Latin America. “The demand in Africa continues to grow… LatAm also has grown,” Radhakrishnan said.

Analysts see exports as both a volume and margin lever. “A higher export mix is supporting margins across auto companies,” Kotak noted, linking international expansion to improved earnings quality.

Yet Southeast Asia remains the toughest market. Indonesia and Vietnam continue to favour Japanese incumbents, making ASEAN the last frontier for Indian OEMs.

The EV wild-card

Electric mobility could reset the competitive order, but also determine whether TVS can translate momentum into leadership.

TVS emerged as the market leader in India’s electric two-wheeler segment in FY26, retailing about 341,513 units and capturing a 24 per cent market share, according to FADA data.

The 43.5 per cent year-on-year growth helped it overtake early mover Ola Electric.

Unlike several competitors, TVS has taken a calibrated approach — scaling up through its iQube platform while leveraging its distribution network and brand strength. This has helped it expand beyond early adopters to more mainstream buyers — a shift that has proved challenging for both start-ups and legacy players.

EV penetration is also rising. FADA data shows electric two-wheelers accounted for 6.54 per cent of total volumes in FY26, with monthly penetration nearing double digits.

This positions EVs not just as a new segment but also a structural shift that could reshape market share over time, potentially accelerating TVS Motor’s climb in the domestic hierarchy.

Legacy strengths

However, the transition comes with trade-offs. “Margins could be impacted by the margin-dilutive mix of EV scooters,” Axis Securities said, highlighting near-term profitability pressures.

At the same time, Kotak noted that “operating leverage and improved product mix” continue to support margins, suggesting that legacy strengths remain relevant even as EV investments rise.

For TVS, the EV strategy mirrors its broader approach. “Continue to grow the top line… improve the product mix,” Radhakrishnan said.

The challenge will be in converting early leadership into durable scale as the market shifts from subsidy-driven adoption to demand-led growth.

The road ahead

At the premium end, TVS is sharpening its global ambitions through Norton Motorcycles. “We will have a differentiated strategy for Norton,” Radhakrishnan said.

The rise to the global top three marks a coming-of-age moment, but not the endgame.

Closing the gap with Hero at home will test its ability to scale up. Cracking ASEAN will test its global ambition. And making EVs profitable will test its execution discipline.

The climb to third was about momentum. The climb to second will be about execution.

More Like This

HOMEGROWN HOTELIER. Jyotsna Suri, Chairperson and MD, Lalit Suri Hospitality group
BUSINESS CONTINUITY. Lupin’s executive management team in 2005
(from left) Kamal Sharma, Nilesh, Vinita, Desh Bandhu Gupta

Published on April 13, 2026



Source link

Building Lalit hotels with emotion

Building Lalit hotels with emotion


This April, the Lalit Suri Hospitality group embarked on a major transformation. Lalit 2.0 will be the second such change exercise of the group, says Jyotsna Suri, Chairperson and MD. Founded in 1988 as Bharat Hotels by her late husband, Lalit Suri, the group’s first makeover came about after the charismatic Lalit Suri passed away in 2006 and his wife had to take over the reins. She rebranded the group as The LaLiT in his honour, creating a distinctive identity — the L in the LaLiT logo is designed to resemble the trunk of Lord Ganesha. “We were six hotels when he passed away. Today we are 12 hotels, plus two in the mid-segment.”

Explaining the need for the current exercise, Suri says that during the Covid-19 pandemic the group went through a financial crunch and some projects, including an ambitious new hotel in Ahmedabad, were stalled. “We’re out of that financial crunch now and sitting in a very good position. And, therefore, we are raring to go forward,” she says.

But why is The LaLiT only at 14 hotels when chains like The Taj, Radisson and Marriott are talking of 500 properties in a few years? “Every hotel chain has a right to decipher and discern what they want to do in terms of their business planning. We’ve never been in the business of growing inventory. As a matter of fact, we are very uniquely placed because we own and manage all our hotels,” says Suri.

“We are hoteliers to the core, and we like it like that,” she asserts, although she adds that the group does intend to pick up some management contracts. “But we are not in a race at all. Whatever hotels we do pick up for management, they would be selective,” she says, adding they would be mid-market, under the Lalit Traveller brand.

I am meeting the dynamic head of the hotel chain, who is also a big force at FICCI (she was president of the chambers in 2015 and now mentors the tourism and culture as well as DEI committees), at The LaLiT on Barakhamba Road. But the table across which we are seated is not at any of their famous restaurants — it’s in her private office, which is filled with enchanting art works. Two particularly catch my eye. One is a painting by a Tihar jail inmate (the hotel group had organised an art workshop for the prisoners, which led to this work), and the other is a series of political cartoons by Raj Thackeray.

“I don’t like talking and shovelling food at the same time,” Suri says, explaining why we cannot do the usual format of an interview over a meal for this Table Talk. Instead, we chat over tea served elegantly with gourmet cookies. Suri says she is only interested in food as fuel, except for Delhi’s chaat, which she loves.

Developing destinations

Suri’s philosophy of hoteliering is quite different from that of other chains, which tend to focus on the most trending places. The LaLiT has instead gone to difficult areas, choosing to develop the destination from scratch. Case in point is Bekal, in north Kerala, where The LaLiT was one of the first to set up a hotel; but the destination took over 15 years to develop as accessibility was a big issue. Ditto Khajuraho, where connectivity is still a problem. Or Mangar, an Aravalli wildlands, off the beaten track, between Faridabad and Gurgaon, where The LaLiT has set up an eco-friendly resort. In Chitrakoot, in Bundelkhand, the chain is again a pioneer, with a Lalit Traveller property about to come up.

Suri’s reasons may sometimes defy logic. Since her husband died in London, she was determined to have a property in that city and acquired a former grammar school, St Olave, at a cost of £15 million and turned it into a boutique hotel. She is a quaint mix of pragmatism and emotion. “I don’t develop hotels because I am adding numbers, but because I want to make a hotel in a particular city,” she says. As happened with the hotel in Ahmedabad, which she assures will be ready in time for the Commonwealth Games. “It is a half-done hotel and it’s on the Sabarmati. It’s going to be a beautiful hotel, inspired by Gandhi’s era,” she says.

“We have always created destinations, not hotels,” she says, explaining that the idea is to play up local festivals and traditions, and invest in the cultural rejuvenation of the place. For instance, in Khajuraho, the chain used to organise an annual Shiv Vivah festival to attract tourists. “Name any noted dancer and they have performed there — it’s perhaps the only place where Raja Reddy performed with both his wives,” she says.

At FICCI, too, she is driving the idea of culture dovetailing into tourism. “Though we don’t call it culture — we call it the creative industry,” she says.

An early riser and highly disciplined (she walks 7 km daily and swims regularly), Suri often takes calculated risks — not a surprising trait really, as she comes of entrepreneurial stock. Her dad moved from Rawalpindi to Delhi during Partition and built a profitable Mercedes-Benz truck business in far-flung Kutch, and was nonconformist enough to send Suri to a co-ed boarding school — Lawrence School at Sanawar. Suri does a lot for her alma mater. The group does a lot for education, for that matter — it runs Step by Step, a well regarded school in NCR. She also runs the Lalit Suri Hospitality School, set in a large beautiful campus in Faridabad, which trains future leaders in the sector.

Suri has given a free rein to her children to experiment with new ideas. Two daughters, Divya and Deeksha, and son, Keshav, are part of the management, while another daughter, Shraddha, runs Subros, the family’s auto parts business. Keshav was one of the petitioners against Section 377 and The LaLiT was among the first few hospitality chains to endorse the UN’s LGBTQ standards at work,

Asked to list the hotel’s strengths and weaknesses, Suri does it with clinical precision. “If you want me to do a SWOT analysis, I’m going to begin with location. Every single hotel of ours has a fabulous location, starting with the hotel we are sitting in. Be it Kashmir, or Kolkata, or Udaipur, Jaipur, or Mumbai, where we are literally one minute from the airport, we have the best location. Our Kerala hotel sits on an estuary between the sea and a river, and in Khajuraho we are walking distance from a World Heritage Site.”

The other distinctive feature, she says, is that “we are completely homegrown and deeply rooted in Indian culture. We were the first ones to begin a ‘Namaskar’ tradition of greeting the guest.”

The third thing, she says, is that the group is inclusive. “We’re not just ticking a box, but genuinely inclusive. That’s why we have approximately 200 transgenders working for us. We’ve got differently abled people working for us and people from marginalised communities as well,” says Suri.

What about challenges? “We are very cyclical. And affected by external events very quickly. When fuel prices go up, we get into trouble; when war breaks out, we get into trouble; during Covid we were in deep trouble. So, we are a very fragile industry.

“But I won’t call it a challenge — it’s part and parcel of the industry, and one has to accept it,” she says.

More Like This

Published on April 13, 2026



Source link

What an Oracle foretells about jobs and careers in the AI era

What an Oracle foretells about jobs and careers in the AI era


THE NEW AI CODE. It may not be curtains yet for software engineering
| Photo Credit:
Kan Kingpetcharat

Knowing what you know now, would you have taken a different career path after college or advised your family and friends to pursue something else altogether? The other day, a former high school classmate called up to ask if his daughter, who wants to pursue computer science engineering, was making the right choice in a world filled with AI noise. I told him I am no oracle on the future of jobs, But if I were him, I would bet on his girl, who was not only a topper in Std XII but also passionate about the subject.

AI-washing layoffs

Of late, any enterprise announcing layoffs has an ‘Impacted by AI’ label on it. Though companies like Block, Atlassian and Oracle have their own contexts for layoffs, the media narrative suggests AI impact. We are refusing to acknowledge their declining stock price in the last six months as a larger factor.

It might be worthwhile to share the details surrounding a recent layoff, where I was almost a fly on the wall. In this tech company, the CXO informed his VPs that the global HQ had given him a headcount reduction target. He asked how many full-time employees (FTE) could be laid off? The first solution the VPs offered was, “Can we reduce the number of our contractors”? When reminded that the target was FTEs, each manager came up with a few names. The CXO didn’t even ask why those names were picked. There were no discussions on whether AI would replace the laid-off employees. It was redundancy as usual. When I read about this layoff story in the news later, it appeared with an AI flavour.

‘Lump of labour’ fallacy

Significantly, the top 10 AI companies, including OpenAI, Anthropic, and Perplexity, have added 7,500 new employees in the last 12 months. Despite the vibe-coding gains and telling the world to get rid of software engineers, new-age AI companies are adding more engineers themselves. Perhaps we should hold our horses before writing a death sentence on software engineering as a profession. Marc Benioff, founder and CEO of Salesforce, recently said, “Companies are cutting jobs for three very different reasons: cost that got out of hand; data centre financial commitments; and some genuine AI-driven rebalancing.” Treating them as one story is a mistake.

Marc Andreessen, co-founder of venture capital fund Andreessen Horowitz, has an interesting take. His VC firm has invested not only in some marquee new-age companies like Figma, Databricks, Stripe and Roblox but also GitHub, Airbnb, Twitter, and Pinterest. Despite major bets on the future of AI with companies like OpenAI, Elon Musk’s xAI, and Mistral AI, Andreessen recently said most large companies are overstaffed by 25–75 per cent due to excessive pandemic-era hiring and are using AI as a cover to cut jobs. He called it the ‘lump of labour’ fallacy — the mistaken belief that there is a fixed amount of work to be done in an economy, thereby meaning that if one person works more or faster, another works less. It incorrectly assumes that rising automation, immigration, or productivity causes unemployment.

Future tense

Unnoticed amid the news of war and AI, mass hiring in the tech sector has seen a structural shift. No longer can we celebrate the hiring of lakhs of engineering students by large tech firms. The numbers have dwindled due to macro-economic conditions, and with the anticipation that AI can do much of the entry-level grunt work. India, though, still holds promise with 100 new global capability centres setting up shop. However, with 2.5 lakh computer science engineers graduating in India each year, the surface area for new tech jobs is shrinking. Going by the recent Claude AI agent source code leak, the roadmap for the three capabilities Claude has lined up as WIP is interesting — proactive mode; dream mode; and autonomous mode, which may bring agentic AI closer to non-binary human capabilities. According to a Goldman Sachs analysis of 40 years of labour market data, workers who lost jobs due to technological changes saw an average 3 per cent drop in real earnings compared to those displaced by stable roles. In the ten years after losing a job, such workers saw earnings growth that was 10 percentage points lower than those who remained employed. Looks scary?

The reset?

A country that exported close to $300 billion worth of software services last year has been the dream destination for the 8.5 lakh freshly minted engineers each year. This cohort of engineers has mostly chose the IT sector over others like manufacturing, given the salary levels and the sector’s continuous growth over the last three decades. From a time when every neighbourhood kid we knew went onsite, to one where someone close to us is getting laid off, the tech reset is hitting hard. Most jobseekers’ CVs are now laced with some AI skill; every leader has to have familiarity with OpenClaw and how Claude is simplifying the workflow. It’s become tough to differentiate between fluff and reality. All consulting companies are putting out surveys that preach how AI and human beings working together make for a productive workforce.

Suzy Welch’s best-selling self-help book Becoming You has a take on ‘purpose’. She writes that it requires taking action to “go through the fire” of self-discovery and purposefully constructing the bridge between the life you are currently living and the life you want to live. Let’s hope that AI brings the best of us for us and makes it a breakthrough of our lifetime, and not a Kodak moment.

(Kamal Karanth is co-founder of Xpheno, a specialist staffing firm)

More Like This

Published on April 13, 2026



Source link

सिलेंडर के झंझट से मिलेगी मुक्ति, PNG पाइपलाइन से हर घर पहुंचेगी गैस, सरकार ने बना लिया प्लान

सिलेंडर के झंझट से मिलेगी मुक्ति, PNG पाइपलाइन से हर घर पहुंचेगी गैस, सरकार ने बना लिया प्लान


PNG Connection: मिडिल ईस्ट में चल रहे तनाव का असर भारत में भी देखने को मिल रहा है. पेट्रेल- डीजल से लेकर गैस सिलेंडर तक की किल्लत से लोग परेशान हैं. अब इन हालातों को देखते हुए सरकार ने अपना मास्टर प्लान तैयार कर लिया है. इस बारे में खुद पेट्रोलियम और प्राकृतिक गैस मंत्रालय ने हाल ही में बताया है. मंत्रालय ने बताया है कि गैस की किल्लत से बचने के लिए अब PNG की पाइपलाइन बिछाई जाएंगी.

मंत्रालय की तरफ से दी गई जानकारी
न्यूज एजेंसी एएनआई के मुताबिक पेट्रोलियम और प्राकृतिक गैस मंत्रालय ने आदेश दिया है कि PNG पाइप बिछाने के लिए फ्रेमवर्क तैयार किया जाए. मंत्रालय ने बताया है कि, ‘इस आदेश से पीएनजी नेटवर्क के विकास में तेजी आने, आखिरी-माइल कनेक्टिविटी में सुधार होने और साफ ईंधन की ओर ट्रांजीशन को समर्थन मिलने की उम्मीद है, जिससे ऊर्जा सुरक्षा मजबूत होगी और भारत की गैस-आधारित अर्थव्यवस्था को बढ़ावा मिलेगा।’

इस समय की भोगौलिक स्थित को देखते हुए एलपीजी आपूर्ति पर पड़ने वाले प्रभाव को कम करने के लिए सरकार ने कई उपाय किए हैं. मंत्रालय ने कहा है कि, ‘एलपीजी वितरकों में आपूर्ति की कमी की कोई रिपोर्ट नहीं मिली है और इंडस्ट्रीज में ऑनलाइन एलपीजी बुकिंग बढ़कर लगभग 98 प्रतिशत हो गई है.

घरेलू LPG सिलेंडर डिलीवरी है सामान्य
फिलहाल अवैध आपूर्ति को रोकने के लिए, डिलीवरी ऑथेंटिकेशन कोड (DCA) आधारित डिलीवरी लगभग 93% तक बढ़ा दी गई है. इस बारे में मंत्रालय ने बताया कि, ‘घरेलू एलपीजी सिलेंडर डिलीवरी सामान्य बनी हुई है. 11.04.2026 को 52.3 लाख से ज्यादा घरेलू LPG सिलेंडर की डिलीवरी की गई’. सरकार ने ये भी बताया कि कमर्शियल एलपीजी आपूर्ति बढ़ाने के लिए भी कदम उठाए हैं, जिसमें कुल आवंटन को संकट-पूर्व स्तरों के लगभग 70% तक बढ़ा दिया गया है, जिसमें 10% सुधार-संबंधित आवंटन शामिल है.

मजदूरों को मिलेगा 5 किलो सिलेंडर मिलेगा
इसके अलावा सरकार ने ये भी बताया है क उन्होंने 5 किलो FTL सिलेंडर की आपूर्ति को दोगुना कर दिया गया है. प्रवासी मजदूरों और छात्रों को आसानी से ये मिल जाएगा. उन्हें इसके लिए कोई एड्रेस प्रूफ की जरूरत भी नहीं होगी. बल्कि केवल आईडी दिखाकर ही उन्हें FTL मिल जाएंगे.



Source link

AI disruption will be deeper and broader than previous technology disruptions: K Krithivasan, CEO, Tata Consultancy Services

AI disruption will be deeper and broader than previous technology disruptions: K Krithivasan, CEO, Tata Consultancy Services


As clients direct funds towards tech modernisation, Tata Consultancy Services (TCS) management talks about the inevitability of the AI wave in the twenty-first century. In conversation with businessline, TCS CEO K Krithivasan and CFO Samir Seksaria, talk about the changes in the tech sector and the role of system integrators like the giant in the evolving space.

Last year, you said FY26 will be good. Now, you said FY27 will be better and that the worst is over. Is something fundamentally changing in the business?

Krithivasan: We were expecting greater momentum to compensate for the first quarter but unfortunately we were not able to do that. Despite that we grew in three consecutive quarters. The order book has been good. We signed mega deals. The customer band movement has been very strong across all buckets. We also saw more customers coming to larger, newer projects, transformation engagements and AI has become an inevitable technology. They have to invest quickly or it becomes a competitive disadvantage. Now we have business case existing for tech modernisation as many of our customers are embarking on that.

The time from disruption to hope to final redemption took about 2 to 3 years. Do you see a similar cycle with AI?

Krithivasan: Actually, even more. There is so much of adoption yet to happen, it takes much longer. However, the time shrinks with every technology disruption. That does not mean it will happen in the next year. This is going to be a disruption that is broader and deeper.

Anthropic recently suggested that advances in generative AI could significantly reduce demand for traditional IT services.

Krithivasan:Customers need system integrators like TCS, who understand the context, technology implementation, give you business benefits out of technology. We are helping our customers in multiple things, cannibalising our own revenue in terms of software engineering. We give them benefits that helps them in addressing the backlog. Then we help them in adopting AI: model, training, building agentic architecture. These are opportunities for us in the mid-term. Our overall philosophy though is, every time a technology destruction comes, it increases economic activity manifold, creates more jobs, as long as people are willing to adopt.

So, TCS’s nature as a IT services player may change?

Krithivasan:It could change because today we have 6 lakh employees approximately. Maybe 5 lakh of them are people come with programming background. We will probably need lesser proportion of programmers but we will need people to train models, context engineers, prompt engineers, model testers, agent developers. All those newer skills and newer opportunities will emerge.

Your client numbers in terms of investments have gone up. Have existing clients increased their spends or have you gained new clients?

Krithivasan: We are getting new clients. Most clients start off with smaller investments. Of course, sometimes we get lucky and some come in with large spends but it is common for most clients to start with smaller spends.

How are you able to protect margins?

Seksaria: We called out our ‘build-acquire-partner’ strategy and we have been investing on it. Investments are offset by either gains being reinvested. Looking forward, our priority would be to focus on investments to sustain growth. At the same time, we will look at operational rigor in terms of execution excellence, whether it is the normal levers, pyramid, productivity, utilization. Currency can be a tailwind, at least on annual basis. The sharp depreciation in FY26 leads some tailwind to FY27. The 25 per cent margin was delivered while making investments through the year. We are exiting FY26 with a 4-year high on annual margin numbers.

Your attrition grew over the year. How are you assessing the job market in this context?

Krithivasan: The overall demand environment at this time is quite healthy. Last year, despite a headcount reduction, we had almost 90,000 people. About 45,000 of them were from the campus. The trend will continue for FY27. We have already rolled out close to 25,000 campus offers. We are actively recruiting people from the market. As the quarters progress, we will calibrate how many more people, campus layers will be recruited and what would we do in terms of lateral recruitment. However, we don’t see any serious significant reduction or change in the number.

Do you have enough attractive jobs here for young freshers?

Krithivasan: I would say TCS is very attractive. We do lot of interesting work. Last year, we offered almost 44,000 offers, the largest ever by a private sector for a campus fair in a single year. There are concerns but we continue to hire lot of people, provide opportunities. I still believe TCS is the best place for anyone to work and that is the greatest opportunity.

Looking at it from a Human+AI model, how are you assessing the compensation and increments for your associates?

Krithivasan: Compensation and increment would be based on the individual employee’s contribution, company performance. That we have announced the increment within six months or the last month shows the confidence we have on the overall growth prospect. It has to be based on the confidence we have on the future as well and we are quite confident about it. Assessment metrics will keep evolving. Some of the software measures will keep evolving.

Is there a timeline for the HyperVault data center to go live?

Krithivasan: We have been talking about sometime in calendar year 2028.

Isn’t that a significant time gap from the time?

Krithivasan: I t takes 12 to 18 months from the time you put the shovel on the ground to operationalisation. 12 to 18 months is actually still quite accelerated.

With all the demand coming in, are you thinking of increasing the cash that you are pumping in?

Krithivasan: We will start looking at how much of actual capex has to happen. Currently, we have signed the MoU for most of them. We are in the phase of finalising design, SLA, land and other timelines. Once that is done, we will start looking at putting actual money into these investments. Currently our target is 1 GW but as it scales up, we will recalibrate our (capacity?).

How many MoUs have you done?

Krithivasan: We have announced two and we are in discussions with a few more. First, you do the MoU then there is a long process of agreeing on the design and specifications. After that, we will start the actual.



Source link

Draft CAFE-3 Norms: Govt eases penalties, focuses on carbon credit trading for auto sector

Draft CAFE-3 Norms: Govt eases penalties, focuses on carbon credit trading for auto sector


As per the draft, OEMs are permitted to offset any debit balance accumulated in their passbooks through the purchase of credits from the Bureau of Energy Efficiency (BEE).
| Photo Credit:
KAMAL NARANG

The government has proposed a more flexible compliance framework under the draft Corporate Average Fuel Efficiency-3 (CAFE-3) norms, easing penalty norms and allowing automakers to trade carbon credits to meet emission targets, sources told businessline.

The revised framework shifts the focus away from the earlier small-car versus large-vehicle debate and instead prioritises reducing overall fleet emissions. The objective is to push original equipment manufacturers (OEMs) to produce vehicles with lower CO₂ emissions while accelerating adoption of electric vehicles (EVs), hybrids, and alternative fuels such as biofuels, in line with India’s net-zero target for 2070.

The five-year plan for CAFE-3 norms will kick in from April 2027 and will cover the financial years 2027-28 to 2031-32.

Key feature

A key feature of the draft norms is the introduction of a market-based compliance mechanism. Automakers that exceed emission reduction targets will be allowed to trade surplus carbon credits with manufacturers that fall short, subject to mutually agreed terms.

Under the draft, the outcome of such credit trading must be completed and reported to the designated agency responsible for monitoring compliance.

For instance, manufacturers that overachieve emission targets could monetise surplus credits by transferring them to companies struggling to meet prescribed limits, thereby reducing compliance costs across the industry. The move signals a shift toward flexibility-driven regulation, aimed at securing industry buy-in while maintaining pressure on manufacturers to progressively reduce fleet emissions.

When calculating the weighted average CO2 of an OEM, clean vehicles such as electric vehicles (EVs), hybrids, plug-in hybrids, flex-fuel or flex-fuel hybrid vehicles, are assigned higher weightage. When a lower CO2 car is given higher weightage, it helps reducing overall weighted average CO2 of an OEM, thereby benefitting the OEM.

As per the draft, OEMs are permitted to offset any debit balance accumulated in their passbooks through the purchase of credits from the Bureau of Energy Efficiency (BEE).

“The price per gram of CO₂/km of such credits shall be as prescribed for each reporting period — FY28–₹2,500; FY29–₹3,000; FY30–₹3,500; FY31–₹.4,000; and FY32–₹4,500,” it stated.

For performance assessment, the annual average of actual fuel consumption for OEM would be calculated on the Modified Indian Driving Cycle (MIDC), a laboratory-based chassis dynamometer test cycle used to certify fuel efficiency and emissions for passenger vehicles, similar to the New European Driving Cycle (NEDC).

“The government has addressed the automobile industry’s grievances, shifting focus from penalising manufacturers to incentivising a greener transition. This latest draft prioritises the promotion of low-emission vehicles, including EVs, hybrids, and biofuels, as a core strategy to meet India’s 2070 carbon-neutral target,” said an automobile expert.

Published on April 12, 2026



Source link

YouTube
Instagram
WhatsApp