Report Wire

Tag: ecnonmy news

  • Chip scarcity offsets robust demand: Car gross sales in sluggish lane

    Despite robust demand, scarcity of digital parts continued to harm automobile gross sales in September as main vehicle producers witnessed a decline in gross sales in September. Industry insiders mentioned if the chip scarcity concern continues, it should damage their gross sales prospect within the forthcoming festive season.
    While Maruti Suzuki India posted a 57 per cent year-on-year decline in home wholesale dispatches at 63,111 items in September, Hyundai Motor India Limited, too, noticed a 34 per cent dip in gross sales in September at 33,087 items. Even Mahindra & Mahindra and Honda Cars India posted a fall in year-on-year gross sales of 11.6 per cent and 33.7 per cent respectively.
    Among the main gamers, Tata Motors bucked the pattern because it introduced progress of 21.4 per cent with gross sales of 25,730 items in September, which included 1,078 items of electrical autos.

    While Maruti had witnessed gross sales of 1,47,912 items in September 2020, the quantity dipped sharply final month as manufacturing was hit by chip scarcity. “Sales volume of the company in September 2021 was adversely impacted due to shortage of electronic components,” the corporate mentioned in its assertion.
    Even Hyundai Motor mentioned that the “global semi-conductor supply constraint has adversely affected the vehicle production resulting in low dispatches in the month of September.”
    Industry gamers say that demand has not been a difficulty and they’re constrained on the availability aspect. Rajesh Goel, director, advertising and gross sales at Honda Cars mentioned, “On demand side, there is good momentum in the market with improved buying sentiment. However, the supply chain hurdles including the widespread chip shortage has been a big challenge right now for the industry.”
    As tempo of vaccinations improved and economic system has been reviving and witnessing progress in demand throughout sectors, trade sources say that the forthcoming festive season may have been led to progress for the sector however for the constraints on the availability of digital parts.

    “Looking ahead, the demand for cars and SUVs is expected to remain strong in the forthcoming festive season; however, the supply situation for electronic components may continue to witness challenging times,” mentioned Shailesh Chandra, president, passenger autos enterprise unit, Tata Motors.

  • Exports up 21.4% in Sept, commerce deficit at new excessive

    Merchandise commerce deficit hit a file excessive of $22.9 billion in September, rising from $3 billion in September 2020 and $11.7 billion in September 2019, on the again of a spike in imports, preliminary knowledge launched by the federal government confirmed Friday.
    The sharp uptick in merchandise commerce deficit comes regardless of 21.4 per cent year-on-year progress in exports to $33.44 billion, on the again of elevated exports of engineering items, petroleum merchandise in addition to gems and jewelry.
    Imports final month rose 84.8 per cent to $56.4 billion, amid an increase in each worth and demand for crude oil in addition to demand for gold and digital items.

    “While domestic demand is recovering, the surge in imports in September 2021 likely also reflects pent-up demand and/or inventory restocking prior to the festive season, and the pace may moderate in the coming months,” stated Aditi Nayar, chief economist at credit score scores company ICRA.

    Total exports for the primary six months of the fiscal yr reached $197.1 billion, up 23.8 per cent over the primary six months of FY20 which was not impacted by Covid-19. The authorities is concentrating on exports of $400 billion this fiscal.

  • ‘Manufacturing PMI improves on easing curbs, strong demand’

    The nation’s manufacturing sector actions improved in September as firms benefited from strengthening demand circumstances amid the easing of Covid restrictions, a month-to-month survey stated on Friday.
    The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) improved from 52.3 in August to 53.7 in September, indicating a stronger enlargement in total enterprise circumstances throughout the sector.
    With gross sales rising at a stronger price, corporations scaled up manufacturing and bought further inputs. There was additionally a sooner upturn in worldwide gross sales, the survey stated.

  • ZEEL refuses to carry EGM, calls Invesco request ‘invalid, illegal’

    Zee Entertainment Enterprises (ZEEL) on Friday mentioned it will not be capable of convene a unprecedented basic assembly (EGM), as the corporate’s board has discovered the requisitions made by its prime international investor to be “invalid and illegal”.
    The firm mentioned its board had sought opinions of impartial counsel, authorized consultants together with senior retired Supreme Court judges and evaluated the matter in a good and clear method.
    In its assembly on Friday, the board of ZEEL arrived at a conclusion that the requisition was invalid and unlawful. Accordingly, it conveyed its incapacity to convene the EGM to Invesco Developing Markets Funds and OFI Global China Fund, LLC. Citing “multiple legal infirmities,” ZEEL mentioned the transfer comes forward of the following listening to within the National Company Law Tribunal (NCLT) on Monday.

    The ZEEL board mentioned it arrived at this choice by referring to numerous non-compliances below Sebi and Ministry of Information and Broadcasting pointers and Companies Act, amongst others. It has additionally taken into consideration curiosity of all shareholders and stakeholders of the corporate, it added. “Accordingly, in the best interests of the company as a whole, including all its shareholders and stakeholders, we express our inability to convene the EGM,” ZEEL mentioned.
    In its September 11 requisition letter, Invesco had sought convening an EGM to take away managing director and chief government officer Punit Goenka, and non-executive administrators Ashok Kurien and Manish Chokhani, alleging breach of company governance norms.

    Invesco (previously Invesco Oppenheimer Developing Markets Fund), which along with its subsidiary OFI Global China Fund holds a 17.88 per cent stake in ZEEL, had additionally sought appointment of its six members on ZEEL’s board.