Electric Vehicles and Online Discounts: A Shift in India’s Auto Industry

The Indian government is likely to amend its electric vehicle (EV) policy to incentivize auto companies that have already invested in the country. This move is expected to benefit legacy car companies, which could see a boost in their investments.

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Currently, the policy only supports fresh investments, leaving out companies that have already invested in the country. The government is in talks with the industry to make the scheme more attractive for legacy players.

Tesla Factor

Tesla CEO Elon Musk was expected to announce the American EV maker’s plan to set up shop in India, which would have benefited from this scheme. However, with no such plan in the offing, the government is looking to make the policy more appealing to other companies.

Online Discounts on the Way

In other news, online platforms are set to unveil huge discounts this month across electronics, smartphones, and apparel as brands rush to clear unsold inventory before the festive season sets in.

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Amazon has lined up Prime Day sales this month, while Flipkart will run a parallel event. The Independence Day sale will begin in the first week of August, followed by Navratri and other festive sales till Diwali.

Inventory Problem

In anticipation of a surge in demand during the festive season, mobile phone makers and electronics companies are ramping up production by 10-20%, hoping to clear out inventory and capitalize on a potential recovery in demand.

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OfBusiness FY24 Operating Revenue Up 26%

Business-to-business ecommerce platform OfBusiness reported a 25.7% increase in operating revenue to Rs 19,296.27 crore for the financial year ending March 31, 2024.

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OfBusiness has strategically pursued growth through acquisitions, having acquired 19 companies by October, with plans to expand this to 25 by the end of FY24.

ONDC Monthly Transactions Hit 10 Million in June

The government-backed Open Network for Digital Commerce (ONDC) recorded 10 million transactions in June, with 6.1 million non-mobility transactions and 3.9 million mobility transactions.

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The network also conducted pilots for consumer loans and is looking to offer larger business-to-business loans up to Rs 1-1.5 crore.