Diwali has ended but the fireworks have just begun. Car and two-wheeler companies have resumed launches, be it retro-looking motorcycles, electric three-wheelers or luxury cars.
This is quite different from what used to happen in the past, when most launches took place just before the festive break. Here's look at all the major developments in the automotive space from the week gone by.
Mahindra launches Jawa at Rs 1.55 lakh
After months of teasers and speculations, Mahindra & Mahindra has finally resurrected the iconic motorcycle brand Jawa in India. The Czech motorcycle brand has launched three new models -- Jawa , Jawa 42, which is the classic variant, and a custom bobber model named Jawa Perak.
The motorcycles have been developed from the ground-up and don a retro look reminiscent of the golden era of the past. While bookings for Jawa (Rs 1.55 lakh) and Jawa Forty Two (Rs 1.64 lakh) have started, the Jawa Perak (Rs 1.89 lakh) will take a while to arrive.
Neeraj and Onkar Kanwar to take pay cut
Neeraj Kanwar, Vice Chairman and Managing Director at Apollo Tyres will take a 30 percent cut in salary after strong objections from institutional and private investors over a 42 percent increase in his pay last year.
The board of India’s second largest tyre producer met on November 13 to approve its second quarter results. It also said to have sought its shareholders' approval to re-appoint Kanwar as MD for a 5-year period starting May next year.
Royal Enfield launches Interceptor 650 and Continental GT 650
Eicher Motors-controlled Royal Enfield launched the much-awaited twin 650s in India – Interceptor and Continental GT – priced at Rs 2.5 lakh and Rs 2.65 lakh, respectively.
The two models are being made at the company's Tamil Nadu factory. Eicher will initially make them in small numbers before ramping up production in the final quarter. Both bikes have been launched in US, UK and Europe.
Hyundai Motor to sign MoU worth Rs 7,000 crore
Automobile major Hyundai Motor India (HMIL) will sign a MoU with the Tamil Nadu government in January 2019 to take up expansion work worth Rs 7,000 crore at its facility, a top official said.
The management of Hyundai Motor India, led by its Managing Director and CEO YK Koo, Vice-President (Corporate Affairs) BC Datta, and Assistant Vice-President (Finance) N Ramesh, called on Chief Minister K Palaniswami at the Secretariat and had a brief interaction with him.
Strike ends at Royal Enfield plant
The tool-down strike that resulted in a production loss of several thousand units at Royal Enfield's Tamil Nadu plant has been called off, but not before senior management at Eicher Motors accused an 'external leadership' for the strike.
The 50-day old strike that started on September 24 was called off Monday night following a breakthrough in talks involving the workers, Eicher Motors management and the District Collector.
Ashok Leyland MD Vinod Dasari quits
After 14 years at India's third largest commercial vehicle maker Ashok Leyland, Managing Director Vinod Dasari called it quits in a move that surprised the market.
Dasari tendered his resignation to the company's board and later clarified that the decision was not a knee-jerk reaction but a planned move.
Ford, Jaguar Land Rover invest in electric two-wheeler start-ups
US-based Ford Motor Company has invested an undisclosed sum into San Francisco-based electric scooter company Spin, making it its first investment in the two-wheeler space in its over-100-years-old history.
A day later, Tata Motors-owned Jaguar Land Rover's venture capital fund InMotion Ventures said it has invested in electric motorcycle maker Arc Motorcycles, which will make the fastest e-bikes in the world.
In July, Hyundai invested an undisclosed sum in two-year old Chinese electric scooter maker Immotor. Hyundai said it wants to co-develop the personal mobility business in China.
Some months ago, India's biggest forging company Bharat Forge picked up a 45 percent stake in Pune-based Tork Motorcycles, an electric motorcycle making company.
So what is it that is pushing large automotive companies to invest in young start-ups focused on electric two-wheelers, despite them having no prior experience in the two-wheeler space?
Start-ups are mushrooming at break neck speed all over the world, promising to address every practical need of the consumer and make everyday life simpler and engaging. Because of their smaller size, start-ups are agile and respond to market changes faster than large conglomerates.
Electric vehicles are the future of mobility and more and more countries are joining the bandwagon. While car makers are powering their way forward in this space, one school of thought is that the market will adopt electric two-wheelers much faster.
Besides, two-wheelers address mobility needs at the primary stage. Very often, two-wheelers are the first personal vehicle in a family. This gives car makers the window to position their brand in the consumers' households with the prospect of marketing their cars to the same buyer at a future date.
This helps the companies save on marketing spend and builds goodwill. In other cases, companies are able to learn from start-ups about efficient running of operations, cutting down costs and improving technology.
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