What the automotive sector needs

a car is lined up in a parking lot: Budget 2022: What the automotive sector needs

© Nitin Agrawal
Budget 2022: What the automotive sector needs

The Indian automotive industry awaits some much-needed respite from the 2022 Union Budget, hoping for some crucial policy introductions that can pave the road to its recovery.

After coping with the after-effects of BS-VI regulations, followed by COVID’s relentless two-year-long assault, the need for support from the government remains at an all-time high, with the semiconductor shortage and existing commodity and fuel price hike having slowed down demand. Stable, consistent and long-term policies appear to be the buzzwords collectively emanating from the grapevine. Here are some of the need-of-the-hour exemptions and incentives that could turn things around for the Indian automotive industry.

The EV Sector

If there’s one sector that’s shown considerable promise over the last year, it’s the EV sector. However, EV infrastructure along with PLI scheme incentives for the 250 plus EV start-ups remain areas that need working

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Czech car sector to make 250,000 fewer vehicles this year due to chip shortage By Reuters

© Reuters. FILE PHOTO: Cars are parked in the courtyard of Skoda Auto’s factory in Mlada Boleslav, Czech Republic, as the company restarts production after shutting downdue to the coronavirus pandemic (COVID-19) . Picture taken in Mlada Boleslav, Czech Republic, Apr

PRAGUE (Reuters) – Czech car makers will produce quarter a million fewer cars than expected this year due to the global shortage of chips and the automotive sector will lose 200 billion crowns ($9.14 billion) in sales, the Auto Industry Association (AutoSAP) said on Sunday.

AutoSAP said domestic passenger car production dropped by 53.1% in September year-on-year, to 56,157 cars.

It said the chip shortage impact would exceed that of pandemic shutdowns last year, and called on the government to activate an aid programme created amid the coronavirus pandemic last year to compensate firms for wages of idled workers.

AutoSAP said production rose 2.9% year–on-year cumulatively in the January-September

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The Chip Shortage Could Be on Its Way Out. What It Means for the Auto Sector.

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A shortage of semiconductors is delaying automotive production by millions of units around the globe, costing auto makers billions in profits—just as demand is surging after the Covid-19 pandemic. But recent commentary from car and chip makers suggests that there might be a light at the end of the tunnel for the industry and for automotive investors.

Investors have heard plenty about the current state of capacity problems for months. Roughly 2 million cars—or about 10% of quarterly global automotive production—weren’t built in the first quarter because of no chips. Ford Motor (ticker: F), one of the auto makers feeling the shortage most acutely, said in late April that it expects to lose about 50% of planned second-quarter production.

It has been much harder for automotive investors to get a sense of when these supply chains issues actually will improve. But Chinese electric-vehicle maker


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5-Star Analyst Sees Big Opportunity for Nvidia in the Automotive Sector

Nvidia’s (NVDA) recent market trouncing performance has rested on several key drivers. Namely, the outstanding growth of its data center segment, which over the last few quarters has been closing the gap on Nvidia’s biggest revenue generator, gaming, and a “friendly” macro environment which has played to the GPU leader’s strengths.

However, Nvidia has fingers in many pies, and is banking on several secular trends which are expected to ramp up in the 2020s. Along with making waves in the AI sector, the company is one of the leading players in the rising autonomous vehicle category.

For Needham analyst Rajvindra Gill, the investment firm’s recent Annual Automotive Technology Day was an opportunity to get closer acquainted with Nvidia’s “comprehensive end-to-end solution for all levels of ADAS/AV.”

The 5-star analyst was not disappointed, and said, “We believe that one of NVDA’s key differentiators in automotive is that its

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