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Indian auto component industry's revenue to grow by up to 7 pc in FY25: Report

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Indian auto component industry's revenue to grow by up to 7 pc in FY25: Report

New Delhi, July 11 (IANS) The revenue growth for the Indian auto component industry is expected to moderate in FY2025, about 5 to 7 per cent, after a strong performance in FY2024, a new report showed on Thursday.

According to rating agency ICRA, operating margins are expected to improve year-on-year in FY25, driven by factors like better operating leverage and higher value addition.

“Demand from domestic original equipment manufacturers (OEM) constitutes over 50 per cent of sales for the Indian auto component industry and the pace of growth in the segment is expected to moderate in FY2025,” said Vinutaa Sriraman, VP and Sector Head – Corporate Ratings, ICRA Limited.

“Growth in replacement demand is pegged at 5-7 per cent, after two to three years of healthy growth, following a relatively weak Q1 in the current fiscal,” she added.

The sample for the report included 46 auto ancillaries with aggregate annual revenues of over Rs 3,00,000 crore in FY2024.

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Further, the report projected that the industry to incur capex of Rs 20,000-25,000 crore in FY2025 towards capacity expansion and technological developments.

Capex is anticipated to hover around 8-10 per cent of operating income over the medium term, with the PLI scheme also contributing to accelerating capex towards advanced technology and EV components.

On the exports front, new vehicle registrations in Europe and the US are expected to remain tepid over the next few quarters, impacted by the weak global macroeconomic environment and geopolitical tensions.

The ageing of vehicles and increased sales of used vehicles in global markets are also expected to aid in the export of components for the replacement segment in overseas markets.

The report further mentioned that the electric vehicle (EV) linked opportunities, premiumisation of vehicles, focus on localisation, and changes in regulatory norms to support stable growth for auto component suppliers.

EVs to account for around 25 per cent of domestic two-wheeler sales and 15 per cent of passenger vehicle sales by 2030. This would translate into a strong market potential for EV components by 2030, the report said.

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–IANS

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755 PLI applications approved with Rs 1.23 lakh crore investment; 8 lakh jobs created: Centre

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755 PLI applications approved with Rs 1.23 lakh crore investment; 8 lakh jobs created: Centre

755 PLI applications approved with Rs 1.23 lakh crore investment; 8 lakh jobs created: Centre

New Delhi, July 30 (IANS) The Centre on Tuesday informed that 755 applications have been approved across 14 key sectors under the production-linked incentive (PLI) schemes and investment of Rs 1.23 lakh crore have been realised (till March), resulting in around 8 lakh jobs.

Keeping in view India’s vision of becoming ‘Atmanirbhar’, PLI schemes for 14 key sectors were announced with an outlay of Rs 1.97 lakh crore (over $26 billion) to enhance the country’s manufacturing capabilities and exports.

According to Union Minister of State for Commerce and Industry, Jitin Prasada, the purpose of the PLI schemes is to attract investments in key sectors and cutting-edge technology, ensure efficiency and bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive.

“These schemes have the potential of significantly boosting production, increasing manufacturing activities and contributing to economic growth over the next five years or so,” said the minister in a reply to a question in the Lok Sabha.

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The criteria employed in the selection of beneficiaries under PLI Schemes includes but is not limited to, willingness to make required investment, production of approved product categories under respective scheme, eligible net worth, domestic value addition, etc.

The key sectors are mobile manufacturing and specified electronic components, pharmaceutical drugs and ingredients, manufacturing of medical services, automobiles and auto components, steel, telecom products, textiles, food and others.

The PLI scheme for automobile and auto components (PLI-Auto) and PLI Scheme on National Programme on Advanced Chemistry Cell (PLI-ACC) battery storage are being implemented by the Ministry of Heavy Industries.

Earlier this week, the Parliament was informed that 32 companies invested Rs 8,282 crore under the PLI scheme for large-scale electronics manufacturing till June 30.

The IT Ministry said that 27 companies have cumulatively invested Rs 464.66 crore under the PLI scheme for IT hardware and PLI scheme 2.0 for IT hardware.

–IANS

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AI disclosure may deter sales, new study finds

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AI disclosure may deter sales, new study finds

AI disclosure may deter sales, new study finds

New York, July 30 (IANS) Including the term “artificial intelligence” in product descriptions may inadvertently reduce sales, a study led by Washington State University (WSU) researchers suggests.

Published in the Journal of Hospitality Marketing & Management, the study surveyed over 1,000 US adults to investigate the impact of AI disclosure on consumer behaviour.

The findings consistently showed that products labelled with “artificial intelligence” were less appealing, according to Mesut Cicek, Clinical Assistant Professor of Marketing and the study’s lead author.

“When AI is mentioned, it tends to lower emotional trust, which, in turn, decreases purchase intentions,” Cicek said.

“We found emotional trust plays a critical role in how consumers perceive AI-powered products.”

The study involved presenting participants with descriptions of various products and services, some explicitly mentioning AI and others not. For instance, in one experiment, participants were shown identical descriptions of smart televisions, with the term “artificial intelligence” included in one group’s description. The group exposed to the AI mention was less likely to express interest in purchasing the television. The negative response to AI disclosure was more pronounced for “high-risk” products and services, such as expensive electronics, medical devices, or financial services. These are areas where potential failures could result in significant financial loss or safety concerns, making consumers more cautious, according to Cicek.

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“We tested the effect across eight different product and service categories, and the results were all the same: it’s a disadvantage to include those kinds of terms in the product descriptions,” he noted.

The study suggests that companies should carefully consider how they present AI in their marketing. “Marketers should focus on describing the features or benefits and avoid the AI buzzwords, especially for high-risk products,” Cicek advised.

–IANS

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Study reveals high fall risk among wheelchair, scooter users

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Study reveals high fall risk among wheelchair, scooter users

Study reveals high fall risk among wheelchair, scooter users

New Delhi, July 30 (IANS) Full-time wheelchair and scooter users experience frequent falls and fall-related injuries, challenging the perception that these devices eliminate fall risks.

A new study published in the journal Disability and Rehabilitation, conducted by a team from the University of Illinois Urbana-Champaign and the University of Illinois Chicago, surveyed 156 participants, revealing that 96 per cent had fallen at least once last year, with 74 per cent sustaining injuries.

“Falls among wheelchair and scooter users are typically caused by interacting risk factors,” said Elizabeth Peterson, Clinical Professor of Occupational Therapy at the University of Illinois Chicago.

“These may be physical, behavioural, environmental, or psychological in nature.”

The study found that users often encounter obstacles such as rough terrain or the need to reach beyond their support base, leading to falls.

Laura Rice, a health and kinesiology professor at the University of Illinois Urbana-Champaign who led the study, highlighted the seriousness of these falls, which can result in anything from minor scrapes to broken bones.

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“A cut or scrape may seem minor, but for someone with diminished sensation, that can quickly turn into a bigger problem,” Rice explained.

The analysis showed a high level of anxiety among those who had experienced fall-related injuries, with 94.6 per cent expressing fear of falling again.

This anxiety often led to reduced use of mobility devices, potentially triggering a “disuse disability cycle.”

Sahel Moein, a graduate student involved in the research, noted that “participants who experienced fall-related injuries were, on average, younger than those who did not, which suggests that riskier behaviour may contribute to these incidents.”

The researchers are now testing an intervention designed to help wheelchair and scooter users manage and prevent falls, emphasising the need for proper training in using these devices.

“Healthcare providers sometimes think that giving someone a wheelchair will solve their problem of falling.

“But people need to be trained to use the new equipment and how to cope with the challenges that come with these devices,” Rice said.

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–IANS

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Over 14 billion smartphones shipped in last 10 years, shows data

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Over 14 billion smartphones shipped in last 10 years, shows data

Over 14 billion smartphones shipped in last 10 years, shows data

New Delhi, July 30 (IANS) The global number of smartphone shipments continues to rise and in the last 10 years, a whopping 14 billion smartphones have been shipped worldwide, a report showed on Tuesday.

Samsung once again proved to be the leader, with 2.99 billion shipped units in the past decade. Moreover, the South Korean tech giant outsold its biggest competitor Apple by 743 million units, as the latter sold 2.24 billion smartphones since 2014, according to data presented by AltIndex.com.

“After shifting back and forth, the global demand for new devices is expected to plunge again this year, prolonging the long-awaited market recovery,” the report mentioned.

However, despite the market struggling to retain the growth rates seen in 2021, the total number of smartphone shipments continues to rise, pushing the 10-year figures to impressive highs.

IDC’s ‘Worldwide Mobile Phone Tracker’ survey showed smartphone producers have shipped more than 14 billion units worldwide since Q1 2014. The statistics also showed that 2015, 2016, and 2017 were the best years for global smartphone sales, with an average of 1.4 billion shipments. The following years saw much lower figures, with shipments plunging to 1.28 billion during the first year of the pandemic.

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Although 2021 brought a recovery, the negative trend continued throughout 2022 and 2023, with shipments falling by another 13 per cent, the report noted.

In 2024, global smartphone sales are expected to generate $486 billion in revenue, down from more than $500 billion in 2021, according to Statista market projections.

While Samsung is at the top of global smartphone sales, its market share has dropped over the past 10 years, primarily due to Chinese competitors. Statistics showed Apple’s market share remained unchanged, at 15.8 per cent in Q2 2024. According to the IDC, global smartphone shipments increased 6.5 per cent (year-over-year) to 285.4 million units in the second quarter of 2024.

–IANS

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South Korean researchers advance all-solid-state battery technology

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South Korean researchers advance all-solid-state battery technology

South Korean researchers advance all-solid-state battery technology

New Delhi, July 30 (IANS) Researchers in South Korea have united to tackle the challenges in the commercialisation of all-solid-state batteries.

Yoon-Cheol Ha from the Next Generation Battery Research Center of Korea Electrotechnology Research Institute (KERI) collaborated with teams led by Professor Byung Gon Kim of Kyung Hee University, Professor Janghyuk Moon of Chung-Ang University, and Professor Seung-Ki Lee of Pusan National University to develop a technology for optimally mixing cathode materials with sulphide solid electrolytes in all-solid-state batteries.

All-solid-state batteries are gaining attention as a next-generation technology due to their low risk of fire or explosion, the research team said.

However, they require advanced technology compared to conventional batteries with liquid electrolytes.

The key challenge is the effective mixing and dispersion of cathode-active materials with solid electrolytes, conductive additives, and binders to create pathways for efficient electron and lithium-ion transfer and low interfacial resistance on the cathode-electrolyte interfaces.

The research team utilised a novel method of partially coating cathode active materials with solid electrolytes. Given the sensitivity of sulphide solid electrolytes to oxygen and moisture, the team developed a blade mill that uses inert gases to prevent chemical reactions. This innovation allowed them to study various solid electrolyte coating structures and optimise the mixture ratio and process conditions.

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Simulations demonstrated significant improvements in active material utilisation and rate capability. These findings were validated with a prototype (pouch cell), confirming the enhanced performance of the all-solid-state battery. The research, published in Energy Storage Materials, a leading international journal with an impact factor of 18.9, highlights the team’s success.

Yoon-Cheol Ha emphasised the importance of enhancing performance and reducing costs of solid electrolytes, along with designing and manufacturing composite electrodes.

He noted, “By using a composite material with partially coated cathode active material, we can significantly improve the performance of all-solid-state batteries.”

KERI plans to secure patents related to the technology and pursue commercialisation, aiming to attract manufacturers of materials and equipment for all solid-state batteries.

–IANS

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