MUMBAI // One morning a few years ago, while stuck in a Mumbai traffic snarl, Ratan Tata noticed from his car window an old puttering scooter hauling a family of four.
That is not an unusual sight on the city's gridlocked streets, but that family's plight caught the tycoon's imagination. Amid the honking traffic, Mr Tata had an epiphany: that one family's situation represented the vast transport needs of the millions of Indians for whom four-wheel vehicles were out of reach. And he could do something to meet the need. Less than two years ago, Tata Motors, the car-manufacturing giant headed by Mr Tata, brought that vision to fruition. It rolled out the Nano, a bubble-shaped car, the world's cheapest, available for an attractive launch price of about US$2,200 (Dh8,080).
The Nano, marketed as the "people's car", would herald a motoring revolution in India, it was widely thought. The family-on-a-scooter phenomenon might disappear from India's roads as millions of people with two-wheelers upgraded to micro cars. But with India's swift economic growth and rising disposable incomes, and with the launch of a slew of car models, the transport revolution is spreading beyond the low-cost car market created by the Nano.
Sales of passenger cars might have slowed in developed economies, but they are soaring in India. In the April-August period, car makers in India produced 7,063,063 vehicles, against one million vehicles in the entire 2004-2005 financial year. Vehicle production in the April-August period this year was 32 per cent higher than in the same period last year, according to the Society of Indian Automobile Manufacturers (SIAM), a trade organisation based in New Delhi. The passenger-car segment grew by 34 per cent in the same period.
Last year, India's vehicle sector, which employs 10 million people, achieved a turnover of more than 2 trillion rupees (Dh165.65 billion), according to an economic survey that the government presented in parliament. This year, India emerged as the world's seventh-largest vehicle producer, six years ahead of the government's target date for reaching that goal, the ministry of heavy industry said last month.
India's vehicle sector grew the second fastest globally in the financial year ending in March. With a compound annual growth rate of 14 per cent in the vehicle sector, India is expected to roar ahead of China, growing at 6 per cent, to become the world's fastest-growing car market between now and 2020, according to a recent report prepared jointly by the global consultancy Ernst & Young and the Automotive Component Manufacturers Association of India (ACMA).
Per capita, the number of passenger-car owners is very low in India compared with the level in developed economies. Only eight in every 1,000 own cars, according to Crisil, a credit-rating agency based in Mumbai. At the current rate of expansion, experts predict, by 2050 every sixth car in the world will be produced for the Indian market. "We remain positive on the Indian auto sector," Vaishali Jajoo, a car industry analyst at Angel Broking in Mumbai, wrote in a recent report. "Over the long term, comparatively low penetration levels, a healthy economic environment and favourable demographics supported by higher per-capita income levels are likely to help auto companies in sustaining their top-line growth."
Last month, most vehicle manufacturers posted double-digit sales growth for the fourth consecutive month on the heels of rising consumer confidence and the onset of the festival season, which will last until the beginning of next year. "Demand for vehicles continues to surpass supply, despite the price hike by most auto majors," Ms Jajoo said in her report. Maruti Suzuki, India's leading car maker, which is 54.2 per cent owned by Japan's Suzuki Motors, reported its highest monthly sales last month, an increase of 3.1 per cent from August. Last month's sales volume of 108,006 units was 29.6 per cent more than in September last year.
Hyundai Motor, the country's second-largest car marker, also recorded last month its highest monthly sales since entering the Indian market in 1998. The company said it sold 31,751 units, an increase of 14.2 per cent from September last year. Hyundai reported its previous monthly sales record of 31,501 units in March. "It is heartening to see the market on a growth trajectory, and this has reflected in our sales. Hopefully, the festive season will further consolidate the growth," said Arvind Saxena, the director of marketing and sales at Hyundai Motor India.
Tata Motors posted a 23.1 per cent year-on-year growth in total volumes last month, with the passenger-vehicle segment increasing by 32.4 per cent. As India emerges as a centre of vehicle production, the small-car segment is increasingly dominating the market. "The auto market in India is all about the price game," says Rohit Singh, the director of CarSingh, an online car mart. "Better the price, the better the sales."
It is a reality best illustrated, he says, by the fact that the Maruti Alto and Wagon R, mid-size hatchbacks that cost between 300,000 and 400,000 rupees, are India's best-selling passenger cars. "India has become the hatchback hub of the world," Mr Singh says. But the high small-car sales are not just about price. Only small cars can easily navigate on potholed roads packed with handcarts, bicycles, pedestrians and livestock.
India, which, unlike China, allows foreign car makers to fully own domestic subsidiaries, encourages small-car production with tax incentives. With this inducement, car makers such as Ford, Nissan, General Motors and Volkswagen are pumping hundreds of millions of dollars into India. In January 2008, Ford invested $500 million in its manufacturing plant in Chennai in southern India to increase annual production to about 200,000 units.
While sales are expected to rise, there are concerns about perceived impediments to growth. "Increasing input costs and interest rates are the anticipated headwinds that could affect the sector's volume and earnings growth," Ms Jajoo wrote in her report. "We expect rising input costs to restrict profitability, despite having a positive view." It is not clear whether those factors will slow production. India's vehicle-parts industry, though, is expected to achieve an annual turnover of $110bn by 2020, a fivefold increase over the current $22bn, according to ACMA.
The parts industry will contribute 3.6 per cent to India's GDP by 2020, up from the current 2.1 per cent. By then, growing investments will create 1 million jobs, ACMA says.
business@thenational.ae
Winners
Best Men's Player of the Year: Kylian Mbappe (PSG)
Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)
TikTok Fans’ Player of the Year: Robert Lewandowski
Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)
Best Women's Player of the Year: Alexia Putellas (Barcelona)
Best Men's Club of the Year: Chelsea
Best Women's Club of the Year: Barcelona
Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)
Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)
Best Coach of the Year: Roberto Mancini (Italy)
Best National Team of the Year: Italy
Best Agent of the Year: Federico Pastorello
Best Sporting Director of the Year: Txiki Begiristain (Manchester City)
Player Career Award: Ronaldinho
Film: In Syria
Dir: Philippe Van Leeuw
Starring: Hiam Abbass, Diamand Bo Abboud, Mohsen Abbas and Juliette Navis
Verdict: Four stars
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Ruwais timeline
1971 Abu Dhabi National Oil Company established
1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants
1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed
1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.
1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex
2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea
2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd
2014 Ruwais 261-outlet shopping mall opens
2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies
2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export
2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.
2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery
2018 NMC Healthcare selected to manage operations of Ruwais Hospital
2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13
Source: The National
Afghanistan Premier League - at a glance
Venue: Sharjah Cricket Stadium
Fixtures:
Tue, Oct 16, 8pm: Kandahar Knights v Kabul Zwanan; Wed, Oct 17, 4pm: Balkh Legends v Nangarhar Leopards; 8pm: Kandahar Knights v Paktia Panthers; Thu, Oct 18, 4pm: Balkh Legends v Kandahar Knights; 8pm: Kabul Zwanan v Paktia Panthers; Fri, Oct 19, 8pm: First semi-final; Sat, Oct 20, 8pm: Second semi-final; Sun, Oct 21, 8pm: final
Table:
1. Balkh Legends 6 5 1 10
2. Paktia Panthers 6 4 2 8
3. Kabul Zwanan 6 3 3 6
4. Nagarhar Leopards 7 2 5 4
5. Kandahar Knights 5 1 4 2
The biog
Fatima Al Darmaki is an Emirati widow with three children
She has received 46 certificates of appreciation and excellence throughout her career
She won the 'ideal mother' category at the Minister of Interior Awards for Excellence
Her favourite food is Harees, a slow-cooked porridge-like dish made from boiled wheat berries mixed with chicken
UAE currency: the story behind the money in your pockets
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Sanju
Produced: Vidhu Vinod Chopra, Rajkumar Hirani
Director: Rajkumar Hirani
Cast: Ranbir Kapoor, Vicky Kaushal, Paresh Rawal, Anushka Sharma, Manish’s Koirala, Dia Mirza, Sonam Kapoor, Jim Sarbh, Boman Irani
Rating: 3.5 stars
UAE currency: the story behind the money in your pockets
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ETuhoon%0D%3Cbr%3E%3Cstrong%3EYear%20started%3A%20%3C%2Fstrong%3EJune%202021%0D%3Cbr%3E%3Cstrong%3ECo-founders%3A%20%3C%2Fstrong%3EFares%20Ghandour%2C%20Dr%20Naif%20Almutawa%2C%20Aymane%20Sennoussi%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3ERiyadh%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3Ehealth%20care%0D%3Cbr%3E%3Cstrong%3ESize%3A%20%3C%2Fstrong%3E15%20employees%2C%20%24250%2C000%20in%20revenue%0D%3Cbr%3EI%3Cstrong%3Envestment%20stage%3A%20s%3C%2Fstrong%3Eeed%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EWamda%20Capital%2C%20Nuwa%20Capital%2C%20angel%20investors%3C%2Fp%3E%0A
Seven tips from Emirates NBD
1. Never respond to e-mails, calls or messages asking for account, card or internet banking details
2. Never store a card PIN (personal identification number) in your mobile or in your wallet
3. Ensure online shopping websites are secure and verified before providing card details
4. Change passwords periodically as a precautionary measure
5. Never share authentication data such as passwords, card PINs and OTPs (one-time passwords) with third parties
6. Track bank notifications regarding transaction discrepancies
7. Report lost or stolen debit and credit cards immediately
Frida%20
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ECarla%20Gutierrez%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Frida%20Kahlo%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
'Fantastic Beasts: The Secrets of Dumbledore'
Rating: 3/5
Directed by: David Yates
Starring: Mads Mikkelson, Eddie Redmayne, Ezra Miller, Jude Law
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
hall of shame
SUNDERLAND 2002-03
No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.
SUNDERLAND 2005-06
Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.
HUDDERSFIELD 2018-19
Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.
ASTON VILLA 2015-16
Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.
FULHAM 2018-19
Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.
LA LIGA: Sporting Gijon, 13 points in 1997-98.
BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66
