Electric Vehicle Charging Norms Changed by Power Ministry, Amazon and Flipkart Sales Generate INR19000cr

Etailers witness a jump in sales. Maruti Suzuki India slashes output production. Slowdown in Indian economy is slowly fading, says SBI Chairman. NIMs for banks could improve. Govt approves amendments to the electric vehicle charging infrastructure. Niti Aayog proposes a plan for buying new buses. J&J fined $8bn in improper drug marketing. India, Vietnam and Taiwan could benefit from US-China trade war as companies are expected to shift their base. US imposes sanctions on China’s activities in Xinjiang as relations sour. 

 

MIXED SIGNALS

Ecommerce giants earn $3bn during the festive season as sales grow 30% Y-o-Y led by Tier 2 cities.

Festive Bonanza: As per an analysis by research company RedSeer, ecommerce platforms in India achieved a record c. $3bn of Gross Merchandise Value (GMV) during the festive season sale which lasted from September 29 to October 4. 

Etrailers reported c.  30% Y-o-Y growth in season sales led by Tier 2 markets.

Walmart-owned Flipkart (including Myntra and Jabong), led the sales, holding c. 63% of the GMV share, primarily driven by the sale of mobiles. 

Meanwhile, Amazon’s GMV was 28-30% of the total sales. However, it saw a growth of 22% Y-o-Y and its volume growth rate was more than 30% Y-o-Y. ET Tech

 

Maruti Suzuki India cuts production for eight straight month.

Mixed Signals: Maruti Suzuki India cut its production for the eight straight month in September by 17.48%, in response to the slowdown in the automobile sector.

The company produced a total of 1,32,199 units in September this year vs 1,60,219 units last year. Indian Express

 

BANKING

Slowdown in Indian economy is slowly fading, says SBI Chairman.

Better Ahead Buffering: The Indian economy has seen a slump in demand in the last couple of months. However, things are likely to change. As per SBI Chairman, Rajnish Kumar, demand slowdown is gradually fading with the onset of the festive season in India.

He added that  September has traditionally seen a rise in demand for credit and hopes for a similar outcome this year. India Today

NIMs of large corporate lenders likely to improve.

Days of Our Lives: In January 2017, Morgan Stanley had warned that going forward, private sector banks are likely to see a drop in net interest margins (NIMs). However now, analysts believe that NIMs of large corporate lenders, such as ICICI Bank, Axis Bank and SBI may improve in the medium term, on the back of increased recoveries of bad loans. Livemint 

Electric Vehicle Charging Norms Changed by Power Ministry, Amazon and Flipkart Sales Generate INR19000crore, Maruti Reduces Output for Eighth-Straight Month

 

ELECTRIC

Govt approves amendments to the electric vehicle charging infrastructure guidelines and specifications.

Go Electric!: In a bid to promote the adoption of electric vehicles (EV) in India, the government today approved amendments to guidelines and specifications for charging infrastructure.

The new guidelines envisage the installation of a robust network of charging infrastructure throughout the country, such that there is at least one charging station available in a grid of 3 km X 3 km in the cities and one charging station at every 25 km on both sides of highways and roads. News18

Niti Aayog recommends scheme for large-scale public procurement of buses.

In an attempt to revive growth in the crisis-struck automobile sector, government think tank Niti Aayog has recommended a scheme for large-scale public procurement of buses. Financial Express

All buses in India to be electric in the next two years, says Nitin Gadkari.

EV All the Way: Reiterating his push for the adoption of EV in India, Union Minister of Road Transport and Highways Nitin Gadkari Monday said that all buses in the country would be converted into electric within a span of two years.

 

J&J

Johnson & Johnson ordered by jury to pay $8bn to man who developed breasts because of improperly marketed drug.

I Tort So: Johnson & Johnson has been ordered by a Philadelphia jury to pay $8bn to a man over its marketing of a drug that led to the man developing gynecomastia, a condition where men grow breasts. A judge had earlier awarded the plaintiff $680,000 but this didn’t include punitive damages. This case is one among several other mass tort cases challenging J&J. J&J has said it is confident the “grossly disproportionate” award will be overturned. Forbes
 
Action and Reaction: The plaintiff, a Maryland man, began using Risperdal, a J&J-marketed anti-psychotic, in 2003 at the age of 9 to treat symptoms of autism. The lawsuit accused the drug manufacturing company of improperly selling Risperdal to doctors as a viable treatment for mental health disorders in children without warning about its side effects. NYT

 

Electric Vehicle Charging Norms Changed by Power Ministry, Amazon and Flipkart Sales Generate INR19000crore, Maruti Reduces Output for Eighth-Straight Month

 

CHINA

India, Vietnam and Taiwan benefit as companies shift manufacturing bases from trade war-hit China.

China to Chandni Chowk: The trade war is taking its toll on the Chinese economy, which is already suffering from decreased domestic consumption and falling workforce numbers. Furthermore, even if a trade deal is reached, companies would be wary of relying heavily on China should tensions between the world’s two largest economies rise again.
 
Among the countries expected to benefit most are Vietnam, Taiwan and India. In India, nine companies in particular are expected to benefit greatly from the estimated $350-550bn export shift from China. These include Larsen & Toubro (L&T), Siemens, Whirlpool and Havells India. BS

But challenges remain. Decades of supply chain-building keeping China at the centre cannot be replaced overnight. Besides, finding new shores is a challenge but setting up shop there is a whole other ordeal. Countries like India may have lower labour costs and younger demographics, but without the proper incentives and infrastructure it will not be able to make the most out of the trade war. ET

US imposes sanctions on China’s activities in Xinjiang as relations sour.

The Gloves Are Off: On Monday, the US announced sanctions on a group of Chinese companies whose products are being used by the Communist Party to establish a surveillance state in its Western province of Xinjiang, where it has been accused of running concentration camps and engaging in mass human rights violations. Today, Beijing has demanded that these sanctions be lifted and hat Washington not interfere in China’s “internal affairs”. Viewed from a broader perspective, this signifies a further deterioration in relations between the two countries, which does not bode well for ongoing trade talks. AP

 

 

FIN.

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