Fuel Prices Hiked To Rake In More Funds To Fight Covid-19

Fuel Prices Increased To Fund Covid-19 Pandemic
Fuel Prices Increased To Fund Covid-19 Pandemic

Prices of petrol and diesel are up from May 6, 2020, as central and state governments are looking for ways to replenish their cash reserves to continue battling the Covid 19 pandemic. The economy has come to a standstill, which is not only affecting the lives of daily wage workers and private sector employees but also businesses and governments.

Despite a phenomenal drop in crude oil prices with chances of more to come, the fuel prices were not reduced in the country. Now, there’s a price hike instead to possibly replenish the cash reserves, which may be used to continue to treat the sick and prevent the spread of the Coronavirus.

Also Read: Passenger Cars Taxation Structure in India

Revised Petrol And Diesel Fuel Prices

Delhi Petrol up Rs. 1.67 – now at Rs. 71.30

Delhi Diesel up Rs. 7.10 – now at Rs. 69.43

Haryana Petrol up Rs. 1.01 – now at Rs. 70.83

Haryana (Rewari) diesel up Rs. 1.11 – now at Rs. 62.80

Tamil Nadu (Chennai) Petrol up Rs. 3.26 – now at Rs. 75.52

Tamil Nadu (Chennai) Diesel up Rs. 2.51 – now at Rs. 68.20

Goa (Panaji) Petrol up Rs. 2.11 – now at Rs. 68.54

Goa (Panaji) Diesel – no change – now at Rs. 63.03

Rajasthan (Jaipur) Petrol up Rs. 1.11 – now at Rs. 76.68

Rajasthan (Jaipur) Diesel up Rs. 0.54 – now at Rs. 69.80

The price jump of Rs. 7.10 for diesel in Delhi is massive and it’s now almost as costly as petrol. It’s worth noting that in the capital and surrounding regions, petrol vehicles older than 15 years and diesel vehicles of more than 10 years of age are not allowed to run. This had already put a dent in the sales of diesel vehicles in the region. Even newer diesel vehicles were leaving RTOs with 10-year lifespan on their registration certificate. It’s not clear yet if this age-limit rule will apply to BS6 petrol and diesel vehicles as well. However, closing the price gap between petrol and diesel fuel is likely to adversely affect the sales of diesel vehicles. Cost of making diesel vehicles BS6 compliant also increased the price gap between petrol and diesel vehicles for the consumers.


India’s Two-Wheeler Exports Grew 7.3% in FY2019-20

The total two-wheeler exports including motorcycles, scooters and mopeds, reached 35,20,376 units in FY2019-20, as against the 32,80,841 units exported FY2018-19.

Amidst slowdown in domestic sales, India’s two-wheeler exports have recently witnessed over 7 percent growth in  financial year 2019-20 (link). Do note that, in the domestic market, the total two-wheeler sales went down by 17.7 per cent in FY2020 at 1,74,17,616 units, from 2,11,79,847 units sold during the same period last year. Recovery in markets such as Africa and Latin America has helped two-wheeler manufacturers pump up their exports from India.

Bajaj Boxer was the most exported motorcycle from India and over 1 million Boxers were exported in FY2020!

Top 25 Two Wheelers contributed to over 88% of two wheelers exported from India! Majority of the Two Wheeler exports from India is Motorcycles – 21 out of Top 25 exported Two Wheelers are Motorcycles.

  • Bajaj Auto topped the two wheelers exporter list and it exported 18,69,220 motorcycles in FY2020. Bajaj commands a market share of over 53% in terms of Two Wheeler Exports. Bajaj exports its bikes to over 70 countries and last year dispatched around 40 per cent of its total production to Africa, Latin America and Middle East markets.
  • Bajaj Boxer was the largest exported two wheeler in FY20. 1 out of 3 two wheelers exported from India was a Boxer! Bajaj’s Boxer has a huge demand in African & Latin American countries. Bajaj is also the market leader in many of the African two-wheeler markets and commands a price premium too over the competition!
  • TVS Motor Company is the second largest two-wheeler export manufacturer from India and one among the top ten in the world exporting to more than 60 countries. It exports to Asia Pacific countries (Afghanistan, Bahrain, Bangladesh, Cambodia, Indonesia, Iran, Iraq, Kuwait, Myanmar, Nepal, Philippines, India, Sri Lanka, UAE, Yemen); Europe (Turkey); Africa (Benin, Burkina-Faso, Burundi, Comoros, Central African Republic, Congo, Djibouti, Ethiopia, Gambia, Guinea Bissau, Ghana, Mozambique, Guinea, Ivory-Coast, Kenya, Liberia, Malawi, Mali,Mauritius, Niger, Nigeria, Seychelles, Senegal, Sierra-Leone, Tanzania, Togo, Uganda,Zambia) and Latin America (Colombia, Costa-Rica, Dominican-Republic, Ecuador, Honduras, Mexico, Nicaragua, Peru). Source
  • TVS Star City was second most exported motorcycle in FY2020. TVS exported over 4.1 Lakh units of Star City and grew a healthy 26% YoY.
  • Honda Dio was the only scooter in the Top 10 exported two wheelers. Honda exported over 1.19 Lakh units of Dio; but faced a YoY degrowth of -29%.
  • FZ was the highest exported Yamaha for FY2019-20. Yamaha exported over 1 Lakh FZ’s in FY2020.
  • Since the launch of Continental twins, Royal Enfield has become more of a focused exporter. The company believes that there are many markets with decent demand for a mid-sized motorcycle and have started aggressively venturing into them. The Chennai based motorcycle manufacturer exported 19,597 units in FY2020. Royal Enfield exports to over 50 countries with top markets being Colombia, Indonesia and Thailand.

Best Selling Two Wheelers for March 2020 – India

Top 20 Two Wheelers sold over 8 Lakh units in March 2020 and contributed to over 92% of Two Wheeler Sales for the month!

  • In March 2020; 2.63 Lakh scooters, 5.7 Lakh motorcycles and 32k Mopeds were sold in India. Among this Top 20 Two Wheelers contributed to a sale of 8,00,266 units v/s overall Two Wheelers sales of 8,66,849 units.
  • Top 20 Two Wheelers had 11 Motorcycles, 8 Scooters and 1 Moped faring in the list. Hero’s Splendor & HF Deluxe Motorcycles were able to overtake Honda Activa’s sales numbers in March 2020.
  • Honda’s Shine and Dio has seen major spurt in YoY sales. While Shine emerged as the 4th best selling two wheeler; Dio overtook the likes of Jupiter & Access to become the second best selling scooter for March 2020!

TVS acquires bankrupt British motorcycle marque Norton for £16 million!

TVS Motor Company has announced the acquisition of Britain’s most historic sporting brand Norton Motorcycles in an all cash deal for £16 million. 

TVS Motor’s overseas arm made the acquisition for an estimated INR 153 crores and should be one of the most interesting acquisitions in recent times. In January 30, the Castle Donington based UK manufacturer Norton Motorcycles was put into administration (similar to bankruptcy in US). Norton was a famed motorcycle brand for its starring roles in the adaptation of the Che Guevara memoir, The Motorcycle Diaries, and the James Bond movie Spectre. The 122 year old British Motoring Brand’s owner was Stuart Garner. Garner had purchased the brand in 2008 and had pledged to return the marque to former glories. Norton, under Garner’s leadership couldn’t do much and over the years had fallen victim of issues ranging from Brexit, a punchy HM Revenue & Customs pursuing the firm for £300,000 in unpaid taxes, and tough international competition.

Norton had some management issue, which TVS Motor Company with its global supply chain capabilities and financial support helped it overcome. Though there will be some concerns in the short term due to ongoing Covid-19 crisis, TVS Motor has already enhanced its cost-reduction measures, and also cut down on capex. Manufacturing will continue in the existing Norton facility, and there are many customer orders that will be fulfilled in a profitable manner (which erstwhile company was not able to serve).

Let’s understand more about Norton Motorcycles history and current product range – 

Norton Motorcycle Company (formerly Norton Motors, Ltd.) is an English motorcycle marque, originally from Birmingham, England, UK. It was founded in 1898 as a manufacturer of “fittings and parts for the two-wheel trade”. By 1902 the company had begun manufacturing motorcycles with bought-in engines. In 1908 a Norton-built engine was added to the range. This began a long series of production of single and eventually twin-cylinder motorcycles, and a long history of racing involvement. During the Second World War Norton produced almost 100,000 of the military Model 16 H and Big 4 sidevalve motorcycles.

In 1907 a Norton ridden by Rem Fowler won the twin-cylinder class in the first Isle of Man TT race, beginning a sporting tradition that went on until the 1960s! Do note that the Isle of Man TT race is often called one of the most dangerous racing events in the world. Norton resumed racing and in 1924 the Isle of Man Senior TT was the first win with a race average speed over 60 mph, rider Alec Bennett. Norton won this event ten times until they withdrew from racing in 1938. The Norton racing legend began in the 1930s. Of the nine Isle of Man Senior TTs (500 cc) between 1931 and 1939, Norton won seven! The Isle of Man Senior TT successes continued after the second world war too, with Nortons winning every year from 1947 to 1954.

Currently Norton’s bikes range was nothing much but had models such as the Commando 961 Cafe Racer, Dominator and V4RR in sale.

Norton 961 Cafe Racer

The motorbike is in production since 2006 and has 961 cc Parallel twin with push-rod valve actuation engine. Norton Commando 961 Cafe Racer was also launched in India at a base price of Rs. 20.99 lakh in April 2018. Commando 961 Cafe Racer has a air & oil cooled, parallel twin with dry sump lubrication engine and a 5 speed gear box. Norton Commando 961 Cafe Racer comes with disc breaks in front and rear with a support of ABS. It was made available in 6 colours. (Source)

Norton Dominator

The Dominator is a twin cylinder motorcycle developed by Norton to compete against the Triumph Speed Twin. The original Dominator was designed in 1947 and 1948 by Bert Hopwood, who had been on the Speed Twin design team at Triumph. Dominator was also launched in India at a base price of Rs. 23.70 lakh in October 2018 by Norton. Dominator is powered by 961cc engine. Dominator has a parallel twin with dry sump lubrication engine and a 5 speed gear box. Norton Dominator comes with disc breaks in front and rear with a support of ABS.

Norton V4RR

The V4RR is a fully-faired supersport motorcycle built by Norton. It is based on the SG5 Isle of Man TT race bike and is built at the Donington Hall factory in England. The bike is built around an aluminium twin-tube chassis with a single-sided swingarm exposing the rear wheel. To further reduce the weight of the motorcycle, Norton has equipped the bike with an 18-litre carbon-fibre fuel tank. The V4RR also gets an optional titanium racing exhaust that reduces weight by eight kilograms. Besides, it comes with a set of carbon fibre wheels. Powering the V4RR is a 1200c, 72-degree V4 engine that produces 200bhp and 130Nm of torque via a six-speed transmission and two-way quickshifter. The titanium exhaust further bumps up the power by 10bhp. The bike’s electronic package includes a six-axis IMU, traction control system, launch control, anti-wheelie system, and three riding modes- road, sport and pro-race, along with a cruise control system. (Source)