Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets:   The market rallied for the second consecutive week, with the Nifty gaining 2.6% over two weeks. Most sectoral indices saw gains, led by PSU Banks, while broader markets outshone, with the Midcap index climbing 2%, doubling Nifty's 1% rise.

TOP STORIES

RBL Bank Cuts Ties with Bajaj Finance

What Happened:

In a surprise twist, RBL Bank has decided to end its eight-year partnership with Bajaj Finance for co-branded credit cards. The bank will stop issuing new cards under this partnership, which once accounted for a hefty 30% of its total credit card business. 

Over time, the partnership saw a drop in importance, going from making up 75% of new credit cards in 2020 to just 30% today. 

Why It Matters:

So, why did RBL Bank swipe left on Bajaj Finance? Well, it’s all about growing up and expanding your horizons. The bank has been diversifying its sources for credit card customers and has added some new partners, including Mahindra Finance, Indian Oil and IRCTC.  

This move aligns with RBL’s strategy to diversify its credit card sourcing, relying more on its branches and newly formed partnerships. The bank also plans to grow at a more modest pace, forecasting a 10-12% growth rate for new card issuances, down from the 18-20% growth seen last year.

Final words

So, is it really the end of the road for RBL and Bajaj Finance? Not quite! It’s more of a “we need some space” situation. While RBL Bank and Bajaj Finance are parting ways, the bank will still manage its 3.4 million existing cards. With tighter selection criteria for new credit card customers, the bank is looking to maintain steady growth while reducing risks.

PAISON KA KHEL

Volkswagen faces $1.4 billion tax evasion notice

Volkswagen's India unit is under scrutiny for allegedly evading $1.4 billion in taxes by misclassifying car parts as individual components instead of completely knocked-down (CKD) units. This allowed the company to pay lower duties—just $981 million—on imports between 2012 and now, instead of the $2.35 billion they should have paid.

If found guilty, Volkswagen could face penalties of up to 100% of the evaded amount, bringing the total potential fine to $2.8 billion.  

Gold shines brighter as loan demand surges 50%

Gold loan demand is glittering, with banks reporting a 50.4% rise in the first seven months of FY2024. Outstanding loans reached ₹1.54 lakh crore by October 18, up from ₹1.02 lakh crore in March—a dazzling 56% year-on-year growth.

Bankers have attributed the rise in gold loan to the rise in gold prices, enabling the borrower to repay old loans and secure higher loans. Meanwhile, other personal loans struggled to shine, posting single-digit growth.

TOP STORIES

TVS and Bajaj Auto catch up with Ola

What happened?

India’s electric two-wheeler market is buzzing! November saw over 110,000 registrations, marking the second straight month of six-figure sales . Ola Electric stayed in the lead with 27,746 registrations and a 25% market share. But wait—TVS Motor and Bajaj Auto are hot on their heels, grabbing 23.55% (26,036 units) and 22.59% (24,978 units), respectively. 

• The post-festive season slowed things down, with overall registrations dipping 18% from October. 

• While Ola’s sales took a 40% nosedive, TVS and Bajaj managed smaller dips of 13.4% and 12%. 

Why it matters

Ola Electric has been the star of the show, selling 392,176 units this year and holding 37% of the market. TVS follows with 201,966 vehicles (19.5%), and Bajaj comes in third at 173,721 units (16.6%). Yet, Ola’s dominance has been slipping. 

After peaking at nearly 50% market share in May, it dropped to 28.6% by September before bouncing back to 31% in October due to festive discounts.  

Zoom out

November alone added 110,549 new e-scooters to the streets, pushing total sales to 1.03 million for the year—the first time the industry has crossed the million mark. Ola Electric may still lead, but its market share dropped from a festive 31% in October to 25% in November, as TVS and Bajaj chipped away at its dominance. With TVS showing stability and Bajaj proving it’s no underdog, the stage is set for a high-octane battle in 2025.

GLOBAL NAZARA

OVL expands stake in Azerbaijan oilfields for $60 million

ONGC Videsh Limited has just made a big splash by acquiring a 0.615% stake in Azerbaijan’s massive ACG oilfield and a 0.737% share in the BTC pipeline, all for $60 million . The deal, completed on November 29, bumps OVL's total stake in ACG to 2.31% and in the pipeline to 2.36%. 

OVL’s investment arms now control a larger share of one of the Caspian Sea’s biggest oil assets, managed by the oil giant BP. In total, OVL now has stakes in 32 oil and gas projects across 15 countries. 

PIA eyes European skies after ban lift

Pakistan International Airlines (PIA) is gearing up to restart flights to Europe, especially the UK after the EU aviation regulator lifted a 2020 ban . The airline plans to take off with Paris flights in a few weeks, aiming for London, Manchester, and Birmingham next. The suspension had cost PIA ₹40 billion annually in lost revenue—a costly time-out indeed!

• As of now PIA has a fleet of 34 planes and a 23% domestic market share.

TOP STORIES

Mahindra's EV game: One showroom, all choices

What happened?

Mahindra & Mahindra (M&M) is taking the EV plunge with its new electric SUVs, the BE 6e and XEV 9e, slated for delivery in February-March 2024. Unlike Tata Motors, Mahindra is sticking to its existing sales network to offer both EVs and internal combustion engine (ICE) vehicles under one roof.

According to Rajesh Jejurikar, M&M’s Executive Director, this strategy ensures customers can weigh all their options without hopping between showrooms. To boost EV expertise, the company is hiring specialist sales and service staff. Meanwhile, M&M has committed ₹4,500 crore for its EV business, part of a ₹16,000 crore investment for FY22-27.

Why it matters?

Mahindra’s strategy highlights its ambition to compete in India’s growing EV market, where rivals like Tata Motors have already carved a niche. The company is banking on its 1,370 sales and 1,100 service touchpoints nationwide to drive EV adoption.

With a production capacity of 90,000 units annually at its Chakan plant—expandable to 1.2 lakh—M&M is serious about scaling up. India’s EV market is heating up, and Mahindra's choice to integrate EVs with ICE sales could attract customers looking for a seamless buying experience. Plus, with plans to first dominate the domestic market before eyeing exports, the automaker is playing a long game.

Riding along

Mahindra’s EV plan is like your favorite one-stop shop—no extra trips, no confusion, just everything in one place. Whether you're eyeing a classic fuel-guzzler or a snazzy new electric ride, they've got your back.

With fun names like BE 6e and XEV 9e, a factory ready to pump out EVs like nobody’s business, and a laser focus on India first, Mahindra is keeping it simple and stylish. It’s like they’re saying, “Chill out, we’ve got the wheels—you just pick the vibe!”

MIRCH MASALA

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