Latest news with #SaketMehra
Time of India
4 days ago
- Business
- Time of India
CBAM may cost Indian steel exporters €551 million by 2034: Report
The imposition of European Union's Carbon Border Adjustment Mechanism (CBAM) could increase the cost of Indian steel manufacturers to €551 million by 2034, potentially reducing their global competitiveness, according to a latest report by Grant Thornton Bharat. The CBAM entered its reporting phase in Q3 2024 and is set to impose financial obligations from January 2026. It is an import duty on a product manufactured in a country that has more lax climate rules than the EU. According to the report, flat-rolled iron and steel products, which make up nearly 80 per cent of India's steel exports to the EU, are expected to be among the most affected. Readiness gap between Indian and EU producers The report highlights a gap between Indian and EU steel production emission levels, suggesting a potential financial burden for Indian exporters unless emissions are aligned with EU standards. While India has begun its decarbonisation efforts through schemes like the Carbon Credit Trading Scheme, DEEP, ADEETIE, and Green Steel Certification, the report notes that the transition remains resource-intensive—especially for micro, small and medium enterprises (MSMEs). 'CBAM poses a significant challenge for auto component exporters, especially MSMEs reliant on fossil fuel-based energy. To remain competitive, we must accelerate the shift to cleaner energy sources and adopt sustainable manufacturing practices. A targeted approach is critical for a smooth and equitable adaptation,' said Saket Mehra, Partner and Auto & EV Industry Leader, Grant Thornton Bharat. Support services and policy collaboration To assist Indian businesses, Grant Thornton Bharat has introduced a range of CBAM-aligned services. These include emission mapping, financial impact assessments, supplier engagement, and green steel certification support. The firm is also empanelled with the Ministry of Power and the National Institute of Secondary Steel Technology (NISST) to facilitate industry-wide preparedness. Amit Kumar, Partner and Climate Ecosystem Leader, Grant Thornton Bharat, stated, 'The EU's CBAM represents a pivotal shift in global trade, urging industries to align with low-carbon benchmarks. For Indian exporters, this transition demands financial and technological support. Collaboration between the EU, Indian policymakers, and the private sector is crucial.' As the deadline for full CBAM enforcement approaches, the report calls for coordinated action between government, industry, and international partners to ensure a just and sustainable transition for Indian exporters.
Time of India
4 days ago
- Automotive
- Time of India
Indian automotive industry clocks deals worth $1.3 billion in April-June: Report
The automotive industry in India maintained its strategic momentum in Q2 2025, recording a total of 29 transactions valued at $1.3 billion, including public market activity, a report said on Monday. The industry saw 28 deals worth $946 million, excluding IPOs and QIPs, according to Grant Thornton Bharat 's 'Q2 Automotive Dealtracker. As per the report, the deal values declined 36 per cent quarter-on-quarter (QoQ); however, they doubled compared to Q2 2024. "This indicates a clear pivot toward higher-value transactions, and it also translated into a notable jump in average deal size - from $17 million to $34 million," the report stated. The quarter's activity was led by autotech and Mobility-as-a-Service (MaaS) segments, reflecting investor focus on scalable, tech-driven mobility solutions. Electric vehicles (EVs) remained the largest driver, accounting for 34 per cent of deal volumes and 39 per cent of deal values, the report noted. As per the report, shifting global trade dynamics, evolving domestic policies, and heightened investor appetite for innovation and clean mobility, India's auto sector continues to transition toward a more sustainable and competitive future. "The Indian auto industry is in a phase of strategic transformation-balancing policy shifts, global trade developments, and rising investor appetite for sustainable mobility solutions ," said Saket Mehra , Partner and Automotive Industry Leader , Grant Thornton Bharat. While deal values softened slightly this quarter, the continued momentum in autotech and EV-led investments shows the sector's pivot toward innovation, scalability, and long-term competitiveness, Mehra added. Meanwhile, mergers and acquisitions (M&A) activity moderated in Q2 2025, with 8 deals totalling $305 million, marking an 11 per cent drop in volume and a 15 per cent decline in value from the previous quarter. Despite the slowdown, the period saw a decisive pivot toward auto-tech innovation and platform-driven consolidation, the report said. Private Equity (PE) landscape remained steady in Q2 2025, with 20 deals totalling $641 million, marking a 5 per cent increase in volume but a 43 per cent decline in value due to the absence of mega-deals. Notably, excluding that outlier, this quarter reflects a fivefold increase in investment value, highlighting growing investor appetite for scalable and tech-enabled mobility solutions, the report mentioned. --IANS aps/na
Time of India
4 days ago
- Automotive
- Time of India
Average deal size doubles in India's auto sector to $34 million despite fewer transactions in Q2 2025: Report
India's automotive sector recorded fewer deals in Q2 2025, but with significantly larger investment sizes, according to the latest Automotive Dealtracker report by Grant Thornton Bharat. The industry registered 29 transactions valued at $1.3 billion, including public market activity. Excluding IPOs and QIPs, there were 28 deals worth $946 million. Although total deal values dropped 36 per cent quarter-on-quarter, they more than doubled compared to Q2 2024. This resulted in the average deal size increasing from $17 million to $34 million. The report attributes the trend to a shift toward high-value investments in autotech and Mobility-as-a-Service (MaaS) platforms. Electric vehicles (EVs) accounted for 34 per cent of deal volumes and 39 per cent of deal values. Saket Mehra, Partner and Automotive Industry Leader at Grant Thornton Bharat, said, 'The Indian auto industry is in a phase of strategic transformation—balancing policy shifts, global trade developments, and rising investor appetite for sustainable mobility solutions.' M&A shifts focus to platform and tech consolidation The mergers and acquisitions (M&A) landscape saw 8 deals totalling $305 million, an 11 per cent decline in volume and 15 per cent drop in value from the previous quarter. Domestic consolidations formed the bulk of deal volumes, but the largest transaction was outbound—KPIT Technologies' $191 million acquisition of Caresoft Global, which accounted for 63 per cent of total M&A value. GT Bharat's report noted a growing emphasis on digital mobility platforms, EV-ready component integration, and connected vehicle technologies. The electric three-wheeler and commercial vehicle segments also remained active. Private equity activity steady, but mega-deals absent Private equity (PE) activity remained stable with 20 deals totalling $641 million. While the absence of billion-dollar transactions, such as Erisha E Mobility's fundraise in Q1, led to a 43 per cent decline in value, the report notes a fivefold increase in investment value when adjusted for that outlier. The quarter's notable PE deal was a $275 million investment in Greenline Mobility Solutions. MaaS platforms attracted $458 million across logistics, finance, and ride-hailing. Investors continued backing full-stack digital platforms, recurring revenue models, and EV ecosystem enablers such as charging networks. Limited public market activity The public markets recorded a single IPO—Ather Energy—which raised $343 million at a revised valuation of $1.4 billion. The company aims to utilise the capital for product development, battery research, and expansion of retail and manufacturing. QIP activity remained subdued. Despite the limited public listings, Grant Thornton Bharat's report suggests that investor sentiment toward India's clean mobility sector remains strong, with continued interest in capital-efficient, scalable business models.
Mint
10-07-2025
- Automotive
- Mint
Small cars face a stricter fuel efficiency threat even as sales crater. Will there be a rethink?
India's top energy efficiency agency is exploring possible ways to ease proposed emission caps for small cars amid plummeting demand, according to two people aware of the matter, even as electric vehicle makers oppose such a relief. The potential plan may allow small cars a regulatory relaxation in the initial years from the next-generation Corporate Average Fuel Efficiency (CAFE) standards, which are aimed at making vehicles more fuel-efficient, the people said on the condition of anonymity. This will be followed by a gradual tightening in the subsequent years, they said. The Bureau of Energy Efficiency (BEE), which is tasked with finalising CAFE III and IV norms, is studying the viability of easing these emission norms for small cars, the second person quoted above said. 'There should be something done to make small cars affordable for the common man," said a top Indian government functionary. Sales of small cars have tumbled 71% in five years through March 2025, with automakers attributing it to the high cost of entry-level vehicles. Market leader Maruti Suzuki India Ltd has sought relaxation from stricter CAFE norms—to be rolled out next year—for small cars weighing less than 1,000 kg. But this has split the industry with makers of electric vehicles opposing the demand. Small cars are relatively fuel-efficient and widely used and discussions around CAFE norms for this segment are increasingly growing relevant, said Saket Mehra, partner and automotive industry leader, Grant Thornton Bharat. 'Any potential adjustments to the norms must carefully weigh the benefits of affordability and accessibility against the need to maintain momentum in reducing vehicular emissions." Stringent emission caps CAFE norms, applicable for vehicles weighing under 3,500 kg, create a ceiling for the average carbon dioxide emissions in a manufacturer's fleet. Currently, under the second iteration of these standards, each company is allowed up to 113 grams of CO2 emissions per km on average, calculated by measuring the tailpipe emissions of an individual vehicle. According to a publicly available copy of the BEE memorandum inviting comments from stakeholders, CO2 emissions ceiling will be lowered to 91.7 grams per km in CAFE III and to 70 grams per km in CAFE IV norms. The new norms will come into effect from April 2027 for five years. Stringent CAFE norms will force automakers to manufacture cleaner vehicles with hybrid, electric, hydrogen, or flex fuel powertrains. Violations will result in a penalty of at least ₹10 lakh for every vehicle found emitting excessive carbon dioxide, under the Energy Conservation Act. Automakers will have to pay extra penalties for the amount of CO2 emitted beyond the CAFE ceiling, and breaching it by a higher margin will attract heftier penalties. Easier rules will allow companies like Maruti Suzuki to add more small cars to their portfolio since stringent emission caps limit the number of cars the company can manufacture. 'BEE is in the process of conducting an analysis, a study, on the next iteration of CAFE norms. There have been stakeholder consultations between the industry and the government. MHI and MoRTH will send inputs for the study," said the first of the two people mentioned above, requesting anonymity. BEE, which reports to the Union power ministry, will take inputs from the ministries of heavy industries, and road transport and highways (MoRTH). Queries emailed to the spokespersons of BEE, MHI, and MoRTH on 8 July remained unanswered. Small car demand craters "The main goal of these norms is to make cars more fuel-efficient, which means they use less petrol or diesel to travel the same distance," said Mehra of Grant Thornton Bharat. 'This helps reduce the amount of fuel we consume as a country and lowers the cost of running vehicles for consumers." Mehra said CAFE norms encourage automakers to innovate and produce vehicles that consume less fuel and emit fewer pollutants, aligning with the country's climate goals and public health priorities. Queries emailed on Wednesday to the spokespersons of Maruti Suzuki, Tata Motors Ltd,Hyundai Motors India Ltd, Kia India Pvt Ltd, Toyota Kirloskar Motor Ltd, and Mahindra & Mahindra Ltd remained unanswered. CAFE has become another point of contention between Maruti Suzuki, which makes small cars and hybrid cars, and other automakers which have electric cars in their portfolio. Electric vehicles emit no carbon dioxide, while hybrids emit lesser CO2 than petrol or diesel vehicles. Data from industry lobby Society of Indian Automobile Manufacturers (Siam) showed that sales of small cars–under 3.6 metres in length–fell from 460,772 units in FY19 to 152,262 in FY24 and 133,397 in FY25, a 71% drop in six years, Mint reported on 5 June. However, India's EV market has been gaining momentum, with sales rising about 17% in FY25, according to the Vahan portal. Over 1.9 million EVs were sold in India in FY25, compared with about 1.6 million in FY24. In the same period, sales of petrol and diesel vehicles rose 4% to 21.8 million from 20.9 million in the previous fiscal.
New Indian Express
07-05-2025
- Automotive
- New Indian Express
India-UK Free Trade Agreement: British luxury cars poised to become significantly cheaper
British luxury cars are poised to become significantly cheaper in India following the historic India-UK Free Trade Agreement (FTA). Analysts expect brands like Aston Martin, Bentley and Rolls-Royce to benefit as import duties on these vehicles are set to drop sharply from the current 100% (and above) to just 10%. The biggest winner, however, could be Tata Motors' British subsidiary Jaguar Land Rover (JLR). With JLR models soon attracting only a 10% duty, analysts predict a substantial reduction in retail prices across its lineup in India. Two-wheeler maker TVS Motor is also expected to benefit from the FTA. Saket Mehra, Partner and Auto & EV Industry Leader, Grant Thornton Bharat, said that the reduction in import tariffs is expected to make luxury brands significantly more accessible in India. 'This move could catalyse a surge in premium vehicle imports and intensify competition in the high-end segment. In FY2024, India imported passenger vehicles worth approximately $ 78.3 million from the UK, a figure likely to rise under the new tariff regime,' added Mehra. It is to be noted that the import of ICE vehicles from UK will be limited to a pre-defined quota.
