#TATAMOTORS #MARUTI #MnM #HONDAPOWER
Why tata motors and Tesla are pumping ?
Disclaimer - my perspective you can also check what i check I mention the source
So let's start with March 15,2021 article posted by Caleb silver "short seller target SPACs" on investopedia
In the article muddy waters capital ( hedge fund ) published a report that claim that technology among others issue. The short seller blasted XL for an unsatisfying response to its challenge and ended the report with this choice quote. " Based on XL's response with it's numerous non-denials, continue to believe that the company greatly exaggerates its pipeline, performance, and potential sales. In short, XL is more SPAC trash." Shares of XL fell 13% last week when that report was released.
In short they are not happy with there EV technology because that not perform well on there claim.
Right on time, as usual, the Securities & Exchange Commission (SEC) issued a warning on March 10, alerting investors that SPACs can be risky, and not to invest in them because it has a celebrity endorsement.
"However, celebrity involvement in a SPAC does not mean that the investment in a particular SPAC or SPACS generally is appropriate for all investors," the SEC said. "Celebrities, like anyone else, can be lured into participating in a risky investment or may be better able to sustain the risk of loss. It is never a good idea to invest in a SPAC just because someone famous sponsors or invests in it or says it is a good investment."
Now fast forward to yesterday may 14, 2022
Posted by defenseworld.net
Several institutional investors and hedge funds have recently made changes to their positions in the business. Fort Baker Capital Management LP acquired a new stake in shares of Churchill Capital Corp VII during the fourth quarter worth approximately $6,810,000. Diameter Capital Partners LP bought a new position in Churchill Capital Corp VII during the fourth quarter worth $3,932,000. Picton Mahoney Asset Management boosted its stake in Churchill Capital Corp VII by 90.5% during the first quarter. Picton Mahoney Asset Management now owns 800,000 shares of the company's stock worth $7,833,000 after buying an additional 380,000 shares in the last quarter.
Highbridge Capital Management LLC boosted its stake in shares of Churchill Capital Corp VII by 11.6% in the 3rd quarter. Highbridge Capital Management LLC now owns 2,527,947 shares of the company's stock valued at $24,572,000 after purchasing an additional 262,839 shares in the last quarter. Finally, Westchester Capital Management LLC bought a new position in shares of Churchill Capital Corp Vil in the third quarter valued at about $1,944,000. Institutional investors own 73.99% of the company's
In short hedge fund invest in company that merge with a company that link to EVs lucid motor
That's cause the hike in automobile industry
-----------Buy as much you can buy this-----------
*Auto Sector News*
*Amid Rising Costs, Maruti to Benefit from Yen’s Weakness Against Dollar*
*Japanese unit down 10% since March; Over 15-16% of co’s raw material cost is denominated in yen*
The stock of Maruti Suzuki India has gained 6. 5% over the past month despite firm input costs thereby outperforming the benchmark Nifty 50 which has lost 1. 7% on concerns over rising inflation. What has worked in favour of the country’s largest passenger car maker is the weakness in the yen, the currency in which the company sources raw materials from Japan. This is expected to help Maruti to lower the drag on the operating margin due to cost inflation.
The Japanese yen has depreciated by around 10% since March 2022 against the US dollar to 128, the lowest in nearly 20 years, owing to the widening policy gap between the Bank of Japan and the US Federal Reserve. This would translate into lower sourcing cost for parts imported by Maruti from Japan.
Over 15-16% of the company’s raw material cost, mainly related to electronic components, is denominated in yen. After adjusting for export earnings, Maruti’s operating margin could be higher by 80-100 basis points than the consensus forecast of 8-8. 2% margin for the March 2022 quarter. According to Bloomberg estimates, Maruti’s FY23 projected margin is 9. 6%. If the weakness in the yen persists, it may offer room for margin upgrade.
The company has raised car prices by 1. 3% from the beginning of the current fiscal year. However, the raw material costs are likely to rise by 300-350 basis points in the first quarter of FY23 amid the Ukraine-Russia conflict. To offset this impact, the company needs to increase prices by 2-2. 4%. But, a gain due to positive cur- rency movement would limit the extent of price jump thereby helping the company to attract cost conscious buyers.
Maruti has raised prices by around 10% over the past year. A sustained price increase amid rising input costs and new regulation has impacted the demand for the entry level cars. The share of this segment in the total industry volume has dropped to 7. 8% in FY22 compared with 14. 9% in FY17. Maruti has 57% share in this segment.
The demand continues to be encouraging for the company as it kickstarts new product launches after a gap. The order backlog has reached about 3,26,000 vehicles following the recent launch of XL6, compared with 250,000 when it declared the third quarter results of FY22.
The enquiries and orders per day are 30,000-35,000 and around 7,000 vehicles in that order. Rising CNG demand owing to tailwind from lower running cost per kilometer compared with petrol vehicles has further benefited the company as it has nearly 75% market share in the CNG segment. It has six models available with a CNG powertrain.
At Monday’s closing price of ₹7,897, the stock was traded at 20 times one-year forward earnings, a discount of 10% to the long-term average. The discount may narrow considering the margin cushion from favourable yen movements.
*Burmans Buy 0.28% More in Eveready*
The Burman family of Dabur has acquired 0. 28% in Eveready Industries India from the open market, taking the cumulative shareholding in the dry cell battery maker to 20. 68%, as per a stock market notification on Monday. The acquisition of these shares has been done by five holding companies of the promoter group.
In February, the Burmans had given a mandate to JM Financial Services to buy an additional 5. 26% stake in Eveready from the market when the family was holding 19. 8% in the company. It has also made an open offer for an additional 26% stake in Eveready. The Burmans have been acquiring shares of Eveready as personal investment since 2020 and have said they will run Dabur and Eveready as distinctly separate entities.
Eveready on Monday announced its fourth quarter results that showed standalone revenue from operation fell by 11. 5% to ₹241. 23 crore in the January-March quarter.
Eveready charts recovery path after ₹ 38-crore net loss
The country’s largest dry cell battery maker Eveready Indu s tries, posted a net loss of ₹ 38.41 crore on a consolidated basis in the quarter ended Ma rch 31, due to lower demand and increase in input cost.
A year back, the company posted a net loss of ₹ 442.53 crore, but on account of a onetime provisioning for outstanding amounts of inter-corporate deposits and write-off of capital advances on a land deal. In its filing with the stock exchanges, the company said the quarter continued to experience lower demand in all categories as inflation ruled high. Also, very significant input cost increases due to supply chain disruptions and overall inflationary pressures impacted margins severely and price increases taken to offset this resulted in market resistance, the company said.
Revenues from operations in the March quarter stood at ₹ 241.24 crore against ₹ 272.63 crore in the year-ago period.
Eveready said the quarter and the year were also impacted due to one-time provisioning done as a measure of prudence, for certain disputed receivables and inventories, and on account of restructuring costs, for ₹ 27 crore and additional communication and consultation costs of ₹ 18 crore as against the comparable quarter last year.
For a “quick” recovery, Eveready said several measures had been initiated, including de-bottlenecking legacy inefficiencies in the organisation structure and on -boarding of Bain & Company for advice on improving opera tional efficiencies and strategy.
The Burman Group in February announced an open offer for another 26 per cent in Eveready and an intent to take control. Days after, Khaitan family members stepped down from the board. Sources indicated the open offer for Eveready was yet to get Secu rities and Exchange Board of India approval. The offer ope ning date according to the tentative schedule was April 26.
*German Auto Parts Co ZF Aims to Grow CV Biz in India to €1 billion*
*Co aims to grow its commercial vehicles division in India by 2.5 times by end of this decade*
German auto components major ZF has set a target to grow its commercial vehicle (CV) division to a €1 billion, or about ₹9,000-crore, business in India by the end of this decade, a senior official has said.
ZF Group has committed investments of over €200 million (approximately ₹1,800 crore) across its businesses in the country for this decade and will set up a new manufacturing site at Oragadam on the outskirts of Chennai under the government’s production-linked incentive (PLI) scheme.
“We are investing heavily in India,” said Wilhelm Rehm, global head of the commercial vehicle solution division at ZF and a member of its board of management. “There is a reason why India has been carved out as a separate region from Asia Pacific with a dedicated P&L (profit and loss statement) to offer higher responsibility on the base,” he told ET.
Since the integration of Wabco following its acquisition in 2020, ZF Commercial Vehicle Solutions has become the largest CV components and solutions supplier in India, and boasts of the broadest product portfolio – offering everything from truck and bus up to trailer technology to digital solutions for fleet management and autonomous driving aspects.
The CV business in India aims to regain its past peak of €400 million in 2022, India head of the company said.
ZF group employs 6,500 people in the country across its businesses that include three subsidiaries and eight global engineering centres. It has hired 300 software engineers for its CV division alo- ne, Rehm said.
With a significant rise in global sourcing and a strong revival of the domestic commercial vehicle market, ZF’s India operations are expected to continue to outpace its global growth and the country will be one of the fastest growing markets for the group in this decade.
While the group headquarters has set itself a target of achieving €10 billion turnover for the commercial vehicle business solution by 2030, India is expected to account for one-tenth of that, the company management said. “We have a clear growth path for the next eight years,” Rehm said. “We want to grow this division to €10 billion by the end of the decade and India will be a strong contributor to this by not only participating in India’s growth story but also source a lot more from India amid global disruption of supplies. ”
He said his vision is to serve the customers with the next-generation technology with a localised solution.
To be sure, ZF currently sources merely €100 million worth of components from India out of its global kitty of €20 billion.
Given the disruption in supply chain globally, India should play a much bigger role in the future, Rehm said.
While the automotive industry is challenged as a whole by the huge investments required not only for the transformation towards electrification, automation and digitalisation, but also in modernisation of the commercial vehicle landscape in the country, experts said suppliers like ZF can play a critical role for original equipment manufacturers (OEMs) by reducing R&D costs for them and offering world-class solutions at the Indian cost.
*TaMo Ties Up with EV Transport Service Co Lithium Urban Tech*
Tata Motors on Monday said it has inked a partnership with Lithium Urban Technologies, an EVbased urban transportation service provider. As part of the deal, Lithium Urban will deploy 5,000 XPRES T Electric sedans across the country, for employee transportation.
Tata Motors will commence deliveries in phases and will complete the deployment by next year, the auto major said in a statement.
“This MoU is big leap towards faster adoption of EVs in the shared mobility space and we are delighted to take forward our long-term partnership with Lithium Urban Technologies, who are on the path to provide mobility solutions with a focus on sustainability and supporting India’s e-mobility mission,” Tata Motors Passenger Vehicles managing director Shailesh Chandra noted.
Lithium Urban Technologies founder & CEO Sanjay Krishnan said the order of 5,000 vehicles is indeed a momentous occasion for Lithium, Tata Motors and the entire EV ecosystem.
Tata Motors had launched ‘XPRES’ brand in July 2021, exclusively for fleet customers.
*Tractor Major CNH Industrial Plans to Triple its Sourcing from India in 3 years*
Case New Holland Industrial, the world’s fourth largest tractor maker, aims to triple sourcing of parts and components from India in value terms to over $300 million in the next three years, according to top executives.
As part of its ‘China plus’ strategy, the Italian-American company has clear visibility of at least tripling its sourcing from India to worth over $300 million by 2024, the executives at CNH Industrial (India), told ET, adding that it could be increased to half a billion dollars in three to five years.
According to Raunak Varma, managing director of CNH Industrial (India), over the last two years India has proven to be a reliable source by delivering over 100% efficiency despite supply chain disruptions due to Covid-19, and this is compelling the headquarters to veer towards it for sourcing a range of products — from engines and engine parts to forgings and other critical components.
The company is looking at how to source more from India and that it will be a hedge against large sourcing from China, he said.
“India has proven to be a lot more predictable than China and the government policies have been a lot more stable — they are not dis- ruptive in a way that rattles the whole world,” said Varma. “India is the only plant in the CNHI globe that is delivering at or above plan. With the localised supply chain, it is more profitable too. ”
Apart from exports of parts and components, India is also turning into a sole sourcing base for tractors below 100 horsepower for the global markets.
CNH Industrial exported about 15,000 tractors globally in 2021, including to the developed markets of Europe and the US.
Varma expects even full-fledged tractor exports from India to double in the next three to five years.
India is CNH Industrial’s biggest manufacturing base by volume. It manufactures tractors at its facility in Greater Noida and farm equipment such as harvesters and balers in Pune.
The company is working on increasing its Indian unit’s tractor production capacity by 60% to 80,000 units over the next 12-14 months, for which it plans to spend about ₹350 crore.
In 2021, the company had sold 36,000 tractors in India and the SAARC nations.
*Rajesh Exports’ new gold rush (EV)*
India’s largest refiner of the yellow metal has emerged as a key player in high-tech PLI schemes
It was ranked at the top in a technical evaluation of bids by the government last month, ahead of formidable rivals such as Reliance Industries and Ola Mobility.
The evaluation was for selecting companies for attractive incentives to manufacture advanced chemistry cell batteries in India under the production-linked incentive (PLI) scheme. These batteries represent acrucial missing link in the cou ntry’s tryst with electric vehicles (EVs). Cells account for 80 per cent of the cost of a lithium-ion battery and they are completely imported. The evaluation was based on a formula in which 70 per cent weight was given to co mpanies based on their valueaddition targets and 30 per cent to capacity-building targets.
The company topping the evaluations rankings is unlikely to ring a bell: Rajesh Exports. The Bengaluru-based company is a well-known name in gold refining across the world. But in the world of high technology, it is a nonentity. Yet it is among the four companies that have been announced as eligible for an EV battery manufacturing PLI.
Rajesh Exports’ PLI licence was won against tough competition. There were 10 players in the ring, many with experience in the traditional battery business, such as Exide or Amara Raja. Big names in automotive engineering such as Larsen & Toubro and Hyundai Global Motors were also in the fray. But the magic happened because Rajesh Exports offered to commit the highest value addition (in simple terms, the highest level of localisation) - more than double of the other competitive bidders. On the other criterion of capacity, which carried a relatively low weight, it had bid for acapacity to build 5GWH of batteries, far behind Ola, Reliance and Hyundai, the other three companies selected for the PLI scheme, which committed to build 20 GWH each.
Competitors are already raising questions on how a company with no expertise in any high-tech industry and no visible technology tie-ups plans to make such high localisation commitment when the big boys, including global majors with access to the best technology, have not. Said a senior executive of one of the bidders, “The localisation commitments made by them beats me, especially when far more established players say that even in 2030 it would not be more than 50-60 per cent.” It’s a valid question. But like Ola Electric, the company is among the entrants that were eligible for incentives under the PLI for non-automobile players entering the EV space. And just like Ola, Rajesh Ex ports’ battery plant will be used for its captive requirement for a range of electric vehicles.
But the company has even more ambitious plans in the frontier high-tech space. It has applied for incentives under the government’s semiconductor programme through group company Elest Pvt Ltd to build asixth generation display fab plant to manufacture state-ofthe-art AMOLED display panels that are used in advanced smar -tphones. Again, these panels are entirely imported currently.
Clearly, Rajesh Exports has chosen sectors where the government is offering large incentives. For instance, for displays it is offering to finance 50 per cent of the project cost up to a maximum of ₹ 12,000 crore in line with global trends, to ens -ure the viability of the projects. Two applicants in this space (which includes Sterlite-Fox conn) have committed an investment of $6.7 billion but have asked for government support for 40 per cent of the cost. Similarly, in advanced batteries the government has earmarked incentives of ₹ 18,100 crore for 50 GWH of capacity, which is a lot of money.
So what makes this gold refining and jewellery giant enter a new and unrelated field of high-tech engineering? Rajesh Mehta, the reticent chairman of Rajesh Exports, explained: “We are looking at getting into areas in the advanced technology space, which we see as the future. We have already done a lot of work in this space and we are confident we will do well.” Founded by Mehta in 1989, the listed company straddles the gold value chain � from refining to retail jewellery stores. It claims that it processes 35 per cent of the world’s gold production, especially after it acquired Valcambi, which has the world’s largest refining capacity, in Switzerland. It is also the largest manufacturer of gold jewellery and the world’s biggest exporter. It runs a chain of jewellery stores under the brand name Shubh Jewellers across Karnataka.
In 2020, Rajesh Exports was ranked seventh in the Fortune India 500 list with revenues of ₹ 1.96 trillion and in 2021, it hit 348th rank in the Fortune Glo -bal 500, jumping 114 positions.
However, Mehta, who was ranked 61 in 2017 in the Forbes 100 richest Indians with a net worth of $2.6 billion, had seen a substantial fall in his ranking to 93 in 2019 and does not find a pl ace in the list in 2020 and 2021.
So, can Rajesh Exports pull off this big gamble? Mehta said he cannot share too much of the group’s business plans.
But, according to announcements in the public domain, last year, the company had signed memorandums of understanding with both Tamil Nadu and Karnataka to set up the combined EV and battery plant. At that time, Shyam Ragupathy, who oversees Rajesh Exports’ electric mobility business, had given some indication that it is looking at making 10,000 electric buses and trucks annually and would require around 175 acres of land. Mehta added that they are now looking at all EV segments -about 13 in all - but he wouldn’t divulge more.
Its plan to set up an AMOLED display plant has, however, come under scrutiny. “The key question is the technology is held by a few players -Samsung, apart from LG, Japan Display and Taiwanese company AU Optronics. All of them have spent billions of dollars and are unlikely to licence production to third-party players” a senior executive of a smartphone manufacturer pointed out. He added that the only other player to apply for displays - Sterlite-Foxconn - has decided to go for LCD displays to begin with because it has a far larger market in the country.
These are questions that will be answered only when the plants are on stream. The yellow metal king of India is not saying much, but he is determined to prove the doubters wrong.
*MORE INDIANS STEPPING OUT, VEHICLE REGISTRATIONS GO UP*
Outdoor activities have increased further with the fear of Covid-19 infections receding - even though the number of infections has gone up. According to a government bulletin on Monday, 2,541 Covid-19 cases were reported over the last 24 hours.
More Indians, however, stepped out for retail and recreational activities in the latest week than they did in pre-pandemic days. Similarly, the use of public transport also increased, though there was a decline in office visits on week-onweek basis.
Retail and recreation visits were 12.9 per cent higher than before the pandemic took hold. Visits to transit stations, too, were 27.4 per cent higher, shows mobility data from search engine Google, which tracks peoples’ movements using anonymised location data. This helps understand mobility trends across countries during the pandemic.
With more people venturing out, traffic con gestion increased in major cities in the country last week, shows data from global location technology firm TomTom International. It was 21 per cent below the 2019 level in New Delhi; and 24 per cent below pre-pandemic level in Mumbai. The gap for New Delhi had decreased over the previous week
Vehicle registrations increased and were up 9.1 per cent over the same week in 2019, compared to an average gap of 9.2 per cent during the week ending April 17, 2022. In all, 410,445 vehicles were registered across the country during the week ending Sunday, April 24 - up from 326,230 vehicles in the previous week, shows government data