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Most major US equity indices closed higher, Europe lower, and
APAC was mixed. US government bonds closed modestly higher for the
first time this year, while benchmark European bonds closed sharply
lower. European iTraxx closed wider across IG/high yield and CDX-NA
was close to flat on the day. The US dollar and gold closed lower,
while silver, copper, gold, wheat, and oil were higher.
Americas
US equity markets closed mixed; Russell 2000 +1.8%, Nasdaq
+0.3%, DJIA +0.2%, and S&P 500 flat.
10yr US govt bonds closed -2bps/1.13% yield and 30yr bonds
-1bp/1.88% yield, which is the first rally for both bonds since 31
December.
CDX-NAIG closed flat/52bps and CDX-NAHY +2bps/302bps.
DXY US dollar index closed -0.4%/90.09.
Gold closed -0.4%/$1,844 per ounce, silver +0.6%/$25.44 per
ounce, and copper +1.4%/$3.61 per pound.
Crude oil closed +1.8%/$53.21 per barrel.
The chart below highlights that the average dollar price for
high yield E&P debt is at its best level since late 2018.
The below chart shows the best performing sectors each month in
2020 for BB USD corporate bonds within the IHS Markit iBoxx High
Yield Corporate Bond Index. The data indicates that energy
subsectors were the best performers in the rating category for half
the months of the year. Note that only sectors with 10 or more
bonds each month were included in the analysis.
Wheat futures rallied sharply on Tuesday on bullish surprises
in key USDA reports accompanied by strength in corn and soybean
futures. Chicago March wheat finished up 30 1/4 cents at $6.65
while Kansas City gained 28 1/2 cents at $6.22 1/2 and Minneapolis
rose 14 3/4 cents at $6.20 3/4. US wheat prices were firm before
the report release, underpinned by the prospects of an export tax
increase in Russia. US wheat prices built on those gains after the
release of the USDA reports. USDA's Grain Stocks report showed US
all-wheat ending stocks on December 1 at 1,674 million bushels
versus the IHS Markit forecast of 1,711 million bushels and the
average trade estimate at 1,695 million bushels. In the January
WASDE report, USDA forecast 2020/21 wheat ending stocks at 836
million bushels versus the IHS Markit forecast of 884 million
bushels and the average trade estimate at 859 million bushels. In
its Winter Wheat and Canola Seeding report, USDA sees 2021 US
winter wheat seedings at 31.99 million acres versus the IHS Markit
estimate of 31.92 million acres and the average trade estimate of
31.53 million acres. In the tender market, Egypt's GASC passed on
offers citing low participation amid uncertainty surrounding the
potential increase in Russia's wheat export tax. South Korea bought
50,000 tons of US milling wheat. Japan was in the market for
116,700 tons of food wheat in a regular tender. Commodity funds
were net buyers of 25,000 contracts of Chicago wheat. Wheat prices
closed today at the highest level since May 2014 (IHS Markit Food
and Agricultural Commodities' Adriel Cheng)
The Weekly Economic Index, from researchers affiliated with the
New York Fed, stood at -1.5 last week, a reading that, if sustained
over the balance of the first quarter, would suggest a 1.5% decline
in real GDP over the four quarters ending in the first quarter.
This is somewhat weaker than but nevertheless broadly consistent
with the 0.9% decline implicit in our latest tracking for fourth-
and first-quarter GDP growth. Meanwhile, the volume of requests for
driving direction on Apple Maps in recent days has been somewhat
above that of 13 January 2020. This could suggest that, at least
temporarily, internal mobility is slightly higher than normal
levels. A bump in internal mobility would be consistent with other
travel-related indicators, such as passenger throughput at US
airports and revenues at US hotels, that strengthened around the
holidays. (IHS Markit Economists Ben Herzon and Joel Prakken)
The November JOLTS report suggests that the labor market
recovery is continuing to slow, with US employment still short of
the pre-pandemic peak. (IHS Markit Economist Akshat Goel)
The number of hires edged up to 6.0 million and the number of
job openings edged down to 6.5 million in November.
In a worrying trend, job separations rose for the third
successive week to a seven-month high of 5.4 million in November.
There were 2.0 million layoffs and discharges in November, an
increase of 295,000 from a month ago.
The quits rate, a valuable indicator of the general health of
the labor market, was unchanged at 2.2%, just shy of the two-year
pre-pandemic average of 2.3%.
Over the 12 months ending in November, there was a net
employment loss of 5.2 million.
There were 1.6 workers competing for every job opening in
November. In the two years prior to the pandemic, the number of job
openings exceeded the number of unemployed in every report.
Electric vehicle (EV) startups Lucid Motors and Faraday Future
are both in talks with special-purpose acquisition companies
(SPACs) to go public, according to media reports. Bloomberg reports
that deal-maker Michael Klein is working with Lucid Motors on a
potential SPAC deal and he has two SPACs looking for agreements,
and SPAC Churchill Capital Corp IV is considering a deal with
Lucid. A separate Bloomberg report states that Faraday Future is in
talks with Property Solutions Acquisition Corp, another SPAC, for
the startup to go public. Bloomberg reports that Property Solutions
Acquisition Corp is looking to raise more than USD400 million to
support a transaction with Faraday. The deals are still in the
discussion stages, and Bloomberg reports that the negotiations
could fail or the terms could change. Moving companies from private
to public entities was a theme in 2020, with companies including
Canoo, Arrival, Nikola, Fisker, Lightning eMotors, and Electric
Last Mile among the vehicle makers either announcing or executing
such plans last year. The auto industry suppliers taking this route
included LiDAR startups Aeva, Ouster, Innoviz, and Luminar. At the
time of writing, it is not clear how close Lucid and Faraday are to
moving forward on deals to go public. (IHS Markit
AutoIntelligence's Stephanie Brinley)
Electric vehicle (EV) manufacturer Tesla has recently made a
less-expensive, lower-range version of the Model Y sport utility
vehicle (SUV) available for order in the United States. The new
version is rear-wheel drive and has a lower-range battery, which
the company calls standard range. The new trim level of the Model Y
has an Environmental Protection Agency-estimated range of 244
miles. The new version has a base price of USD41,990, a price point
that is USD8,000 lower than the long-range, all-wheel-drive Model
Y. In addition, buyers of the Tesla Standard Range and Long Range
Model Y have the option of choosing a seven-seat configuration,
which is not available on the Model Y Performance model. The option
of the extra seats costs USD3,000. The move by Tesla creates a
version of the Model Y that costs less than the price of the new
Ford Mustang Mach-E, although the Mach-E is also available with the
US federal tax credit, while the Tesla is not. Tesla has also
indicated that eventually it intends to expand its line-up to
include a model priced lower than the Model 3, with recent reports
stating that the model could be built in China as soon as 2022.
(IHS Markit AutoIntelligence's Stephanie Brinley)
Autonomous truck startup Kodiak Robotics has completed
"disengage-free" deliveries on I-45 highway between Dallas and
Houston, according to a blog posted on the Medium website.
Disengage-free means the startup's autonomous vehicle (AV) system
operated without intervention from a human safety driver. Kodiak
conducted commercial shipments in December 2020 and completed two
round trips in a row, covering around 800 miles, on the highway
without human involvement. Andreas Wendel, vice-president of
engineering at Kodiak, wrote, "We've never been big on publicizing
incremental achievements, but this milestone in Kodiak's history is
worth sharing". (IHS Markit Automotive Mobility's Surabhi
Rajpal)
Fluor (Irving, Texas) has announced an organizational revamp
that "better aligns its business with identified growth markets and
company strategy" after conducting a strategic review, it says. The
company is initiating plans to sell its subsidiary Stork (Utrecht,
Netherlands) as part of the revamp, it says. Starting in the first
quarter of 2021, Fluor will conduct its operations in three
business segments—Energy Solutions, Urban Solutions, and
Mission Solutions. The energy solutions business will focus on
energy transition, chemicals, and traditional oil and gas
opportunities, according to Fluor. "As a result of our strategic
review, we have determined that maintenance services no longer fits
within Fluor's core service portfolio. Therefore, the company is
initiating plans to sell Stork," it says. Fluor acquired Stork in
2015 for $755 million. Stork is a provider of maintenance,
modification, and asset integrity services for large industrial
facilities in the chemicals, petrochemicals, oil and gas,
industrial, and power markets. Fluor's urban solutions business
will pursue opportunities in mining, metals, advanced technologies,
manufacturing, life sciences, and infrastructure, while the mission
solutions business will be focused primarily on delivering
solutions to federal agencies across the US government and to
select international opportunities. Fluor has also established two
functional organizations for project execution and corporate
development and sustainability. Further information on the revamp
will be given at a strategy day scheduled to be held by Fluor on 28
January. (IHS Markit Chemical Advisory)
Mexico's National Minimum Wage Commission (Comisión Nacional de
Salarios Mínimos or CONASAMI) said on 10 January that the 1 January
2021 minimum wage increase of 15%, from USD6.1 to USD7.0 per day
(and to USD10.7 in the Northern Free Zone), will not increase
inflation and will incentivize economic growth. It follows the
current government's previous 20% (2020) and 16% (2019) national
minimum wage increases. Modifications to Mexico's pension system
also took effect on 1 January, aimed to increase pension amounts
and access. They include an increase in employer contributions from
5.2% to 13.9% over eight years (for a 15% total contribution),
fewer required weeks of contributions by employees, and a lower cap
on fees chargeable by the country's 10 private pension funds
(Administradores de Fondos para el Retiro: AFORE), from 0.92% to
0.54%. The minimum wage and pension increases are positive in terms
of bringing both closer in line with Mexico's regional neighbors.
However, their introduction at the same time, while a bill to ban
outsourcing practices is also under discussion, represents a
significant increase in costs for employers. They also coincide
with companies facing severely reduced liquidity because of the
COVID-19-virus crisis and a lack of federal government financial
support. Private-sector associations, namely the Employers'
Confederation of the Mexican Republic (Confederación Patronal de la
República Mexicana: COPARMEX) and the Business Coordinating Council
(Consejo Coordinador Empresarial: CCE), estimated in December 2020
that the 15% minimum wage increase will lead to 700,000 companies
going bankrupt in the first quarter of 2021, although union leader
José Luis Carazo has argued that it will strengthen working
conditions and domestic consumption. The immediate impact of the
higher pension contribution for employers will be less severe due
to its gradual imposition. (IHS Markit Country Risk's Emily Crowley
and Johanna Marris)
Europe/Middle East/Africa
European equity markets closed lower; UK -0.7%, Italy -0.3%,
France -0.2%, and Germany/Spain -0.1%.
10yr European govt bonds closed sharply lower; Italy +10bps,
Spain +5bps, UK +4bps, and France/Germany +3bps.
iTraxx-Europe closed +1bp/50bps and iTraxx-Xover
+9bps/262bps.
Brent crude closed +1.7%/$56.58 per barrel.
China's BYD and the UK's ADL have extended their partnership.
According to a statement, the pair will begin the design and
assembly of chassis for the BYD ADL partnership's electric single-
and double-decker buses for the UK market. It added that this will
ensure completed vehicles are built in the UK. This is planned to
begin at ADL's facilities in the second half of 2021, with support
from a BYD team on the ground. At present, the chassis for the BYD
ADL Enviro200EV single-decker and BYD ADL Enviro400EV double-decker
buses were fully built up elsewhere by BYD before being delivered
to ADL's facilities in the UK to have their bodywork fitted.
Although there has been no confirmation of why this change has
taken place, it could well be because volumes have reached a
critical mass to make this feasible. Indeed, since 2015, around 500
battery electric buses have either been delivered or are on order.
This is likely to rise in future as there is pressure to reduce
city center emissions, despite fewer passenger numbers in the
country due to the COVID-19 virus pandemic. (IHS Markit
AutoIntelligence's Ian Fletcher)
The closure of non-essential shops across Italy contributed to
an acute drop in retail sales during November. Specifically, retail
sales in volume terms declined by 7.4% month on month (m/m) during
the month and were 8.4% lower than a year earlier. (IHS Markit
Economist Raj Badiani)
The average volume of retail sales in October and November was
0.3% lower when compared to the third quarter of 2020.
The largest year-on-year (y/y) drops in November occurred for
furniture and textile items and household furnishings (12.4%),
clothing (37.7%), sporting equipment, games, and toys (22.9%) and
shoes, leather goods, and travel items (45.8%).
On the flipside, spending on computers and telecoms equipment
rose by 28.7% y/y during November.
In addition, online sales strongly increased in November 2020,
with sales up by 50.2% compared with the same period a year
ago.
Retail spending during December appeared to have conflicting
pulls. The stricter COVID-19 restrictions put in place in November
loosened prior to Christmas, resulting in crowds of shoppers
flocking to many city centers.
However, this triggered a new spike in new COVID-19 infections,
with the government deciding to place the whole of Italy in the red
zone measures during Christmas and effective until 6 January,
implying the closure of non-essential shops.
Household consumption appeared to be under renewed pressure
during the fourth quarter of 2020, led by lower spending on
non-food goods, leisure and travel. In addition, we now anticipate
Italy suffered renewed GDP losses during the same quarter.
Statistics Netherlands (Centraal Bureau voor de Statistiek:
CBS) reports that Dutch consumer prices increased by 1.0% year on
year (y/y) and 0.2% month on month (m/m) in December 2020,
according to the national consumer price index (CPI) measure, and
grew by 0.9% y/y and 0.5% m/m according to the EU-harmonized
measure. (IHS Markit Economist Daniel Kral)
For the whole of 2020, Dutch CPI inflation dropped to 1.3%,
down from 2.6% in 2019. HICP inflation dropped to 1.1%, down from
2.7% in 2019, while core inflation remained at 1.9% in 2020, the
same as in 2019, due to elevated levels in the first half of 2020.
Headline inflation rate is the fourth highest in the eurozone,
after Slovakia (2.0%), Austria (1.4%), and Lithuania (1.2%).
Among the subcomponents, the largest annual increase in 2020
came from alcoholic beverages and tobacco by 7.6%, due to an
increase in tobacco taxes. The largest moderation in price
increases compared to 2019 was recorded in housing, water,
electricity, gas and other fuels, which grew by just 0.5%.
Wages covered by collective labor agreements rose by 3.0% in
2020 and thus, after subtracting inflation, 1.7% in real terms. The
CBS notes that this is the largest increase in real terms since
1986 and presents an important boost to household incomes.
CBS notes that prices covering roughly 5% of the consumption
basket, such as for airlines or events, had to be estimated in
2020, owing to an insufficient number of recorded
transactions.
The recent extension of COVID-19 virus-related restrictions is
likely to continue the difficulty in measuring inflation in the
most affected sectors in the short term. The Netherlands is
expected to remain in its toughest lockdown yet throughout at least
January.
The relatively subdued headline inflation, weighed down by
limited increases in food and fuel, combined with the largest pay
rises since 2008 will support real incomes, which can be released
once restrictions are lifted. Household spending has been affected
particularly severely during the COVID-19-induced recession and the
broader recovery will depend on a strong rebound in this
component.
The frozen food giant Nomad Food, the group behind brands such
as Igloo and Findus, has entered into exclusive negotiations to
acquire Fortenova Group's Frozen Food Business Group (FFBG), which
includes Ledo, Frikom and other leading frozen brands. FFBG has a
wide frozen food portfolio of iconic local brands popular in
Croatia, Serbia, Bosnia and Herzegovina and other countries in
south-eastern Europe. It is the market leader in those regions,
where it operates across several categories including fish, fruits,
vegetables, ready meal, pastry and ice cream. The acquisition of
FFBG would extend Nomad's portfolio into new and developing
European markets while also creating a beachhead for potential
future consolidation within central and eastern Europe. These
discussions are preliminary and there can be no assurance that a
transaction will be completed. The company does not intend to
provide further updates unless there is a definitive outcome to the
discussions. Other groups showed some interest toward Fortenova's
frozen food brands, such as the Norwegian food processor Orkla as
well as Czech-Slovak consortium of Emma Capital and J&T Private
Equity Group. (IHS Markit Food and Agricultural Commodities'
Cristina Nanni)
The CEO of the Aurus car company, which is developing a new
limousine and ultra-premium sport utility vehicle (SUV), has said
the SUV will go into production in the second quarter of 2022,
according to an Esmerk Russia News report. Adil Shirinov said the
company is preparing to begin production of its long-awaited Senat
limousine in the next few weeks, and the SUV is scheduled for start
of production (SoP) a year later. The Komendant SUV will come with
the same hybrid powertrain as the Senat, namely a 4.4-litre
gasoline (petrol) V8 and a single electric motor. A nine-speed
automatic transmission works with all four wheels with up to 600 PS
and 880 Nm of torque. It is a bold gamble by the company, which has
backing from the Russian government, to create a homegrown
ultra-premium car brand from scratch which will evoke the famous
ZIL limousines used by successive Russian premiers in the Communist
era. The cars will be built at the Ford Sollers plant in Yelabuga
and the output of all the Aurus models may reach 5,000 units per
year, if the plant operates on a single-shift basis, according to
other comments by Shirinov. (IHS Markit AutoIntelligence's Tim
Urquhart)
The National Bank of Ethiopia (NBE) has disclosed the draft of
a 10-year financial-sector reform roadmap, following an
International Monetary Policy (IMF) review of Ethiopia's financial
soundness. The central bank's roadmap suggests an increased
emphasis on increasing the role of the financial sector in total
economic development; however, the proposed changes are expected to
be rolled out gradually. (IHS Markit Economist Alisa Strobel)
NBE governor Yinager Dessie mentioned at Ethiopia's CEO forum
on 18 December 2020 that the central bank disclosed the draft of a
10-year financial-sector roadmap, according to media reports. The
roadmap is to be tabled for discussion in the near future before
implementation. The governor reportedly said that Ethiopia's reform
momentum should particularly focus on the financial sector because
it is the backbone for the development of other sectors.
The IMF's statistics department provided technical assistance
on financial soundness indicators (FSI) to the NBE during 15 June
to 10 July 2020. A report on the findings was published on 18
December 2020 suggesting that source data reported by the banks was
broadly adequate for FSI compilation for deposit-takers in terms of
quality.
Ethiopia is currently under IMF Extended Credit Facility and
Extended Financing Funding (ECF/EFF) arrangements, including
proposed financial-sector reforms. Improved FSIs are expected to
facilitate better monitoring of financial stability by the NBE and
help guide economic policies in the context of the ECF/EFF
arrangements. In response to the coronavirus disease 2019
(COVID-19) pandemic, the NBE issued temporary measures to ease the
pandemic's impact on the local economy and its social
consequences.
IHS Markit previously stated that, although it will take some
time before foreign banks are allowed to fully operate in Ethiopia,
the country's banking sector will not be closed all the time. Prime
Minister Abiy Ahmed explicitly pointed out the government's
position back in September 2020, which was that the government
would not open the financial sector to foreign firms until local
private banks come together in joint ventures and build
competitiveness. This suggested fears that foreign firms with vast
expertise and experience could overwhelm the country's financial
sector, which, he said, was in its infancy.
However, the apparent move towards greater openness follows a
recent financial-sector expansion that potentially increased the
sector's attractiveness to foreign investors. The NBE's
Proclamation No. 592/2008 currently prohibits foreign banks from
operating in the country; it also prohibits foreign nationals
and/or organizations from opening banks or owning shares in local
banks.
Therefore, while we maintain our view that immediate changes
will be made to allow greater foreign ownership in the financial
sector, such changes are likely to be made very gradually. An
important constraint to change is the fact that the Ethiopian
banking sector is dominated by the state-owned Commercial Bank of
Ethiopia (CBE), accounting for around 60% of the sector's assets
and 70% of the sector's deposits.
Asia-Pacific
APAC equity markets closed mixed; Mainland China +2.2%, Hong
Kong +1.3%, India +0.5%, Japan +0.1%, Australia -0.3%, and South
Korea -0.7%.
Increases in the trade surplus and primary income lifted
Japan's current-account surplus in November. However, the
resurgence of COVID-19 could weigh on the surplus. (IHS Markit
Economist Harumi Taguchi)
Japan's current-account surplus rose by 18.0% in November from
the previous month to JPY2.3 trillion (USD22.4 billion) on a
seasonally adjusted basis and by 29.0% year on year (y/y) to JPY1.9
trillion on a non-seasonally adjusted basis. The seasonally
adjusted current account recorded the largest surplus in nine
months. The solid y/y rise was due to increases in the trade
surplus (up JPY636 billion from a deficit of JPY20 billion) and the
primary balance (up 17.8% y/y to JPY1.7 trillion).
The increase in the trade surplus reflected a softer decline in
exports (down 3.4% y/y) than imports (down 13.6% y/y). While the
wider y/y drop in exports largely reflected decreases in exports to
Asia and the US following rises in the previous month, the
continued weakness for imports was due largely to lower prices,
particularly for resources and mineral fuels. The increase in the
primary balance was thanks largely to increased revenue from
portfolio investment, reflecting improved share prices.
The continued increase in the surplus of the trade and services
balance signals that net exports are likely to contribute to real
GDP growth in the fourth quarter of 2020. Although IHS Markit
maintained its view that Japan's current-account surplus will
continue over the short term, the November results were better than
expected.
Automakers globally are facing up to semiconductor shortages.
Reuters reported late last week that affected companies have
included Honda - its spokesperson has said that it has begun
"seeing some impact in the parts supply". It cited the Nikkei as
stating that it will shrink production by around 4,000 units per
month, which would mainly affect the Fit, built at its Suzuka
(Japan) facility. Separately, its Chinese partner GAC has said its
joint venture (JV) with Honda had received warnings over the supply
of components for certain models, without giving details. Nissan
has said it will cut production of the Note hybrid built at its
Oppama (Japan) facility, without giving any details of the scale.
However, the Nikkei has reported separately that output will be
slashed in January from 15,000 units to 5,000 units. In North
America, Ford is pulling forward a week of downtime at its
Louisville (Kentucky, US) facility which builds the Ford Escape and
Lincoln Corsair. A spokesperson told Reuters, "We are working
closely with suppliers to address potential production constraints
tied to the global semiconductor shortage." Restrictions on the
supply of any component related to the manufacture of vehicles is
typically detrimental to production volumes. However, in this
instance a perfect storm of challenges specifically related to
semiconductors has emerged, which is testing the automotive
industry, particularly given the expansion of electrified
powertrains, infotainment systems and sophisticated automated
driver assistance systems (ADAS). Having started to emerge towards
the end of last year, it is set to come to a head in during the
first quarter of 2021. IHS Markit's initial analysis suggests that
global light-vehicle production over this three-month period will
fall by around 485,000 units. A large proportion of this will be
lost in China, which is set to lose over 245,000 units, with this
focused on joint ventures (JVs). Around 100,000 units are set to be
lost in Europe, and this is expected to be mainly by the Volkswagen
(VW) Group as has already been noted above. In North America and
Japan, we see the lack of semiconductors as having an impact of
around 37,500 units each, while in the rest of Asia it will suffer
a decrease of around 61,800 units. (IHS Markit AutoIntelligence's
Ian Fletcher)
American Axle & Manufacturing (AAM) and Inovance Automotive
have announced a new technology development agreement aimed at
accelerating the development of next-generation 3-in-1 electric
drive systems for the global market. A joint press release by the
US-based global driveline systems company and the China-based
electric propulsion components and systems supplier indicates that
they will continue the launch of a current-generation 3-in-1 drive
units, first with a 135 kW model, to support a Chinese OEM in the
first quarter of 2021. The next-generation 3-in-1 systems will
integrate the inverter, the electric motor, and the gearbox; the
partnership aims to increase power density, efficiency, and cost
effectiveness. (IHS Markit AutoIntelligence's Stephanie
Brinley)
Hyundai reportedly plans to build a hydrogen fuel-cell system
plant in Guangzhou (China) this year, reports the Yonhap News
Agency. The automaker has received the South Korean government's
approval for the investment plan. The South Korean Ministry of
Trade, Industry and Energy reviewed the impact of hydrogen
fuel-cell systems' exports as hydrogen technologies are regarded as
one of the country's core technologies. It approved the plan as it
judged building a hydrogen fuel-cell systems plant will pave the
way for the country's auto parts suppliers to increase their
exports to the world's biggest automobile market. "Hyundai Motor is
in talks with a Chinese company to form a joint company for the
construction of the plant. Hyundai is expected to announce the
plant as early as this month," said an unnamed person familiar with
the matter. Hyundai did not confirm the investment plan. Hydrogen
fuel-cell technology is one of the key technologies Hyundai is
planning to focus on in the coming years. Last month, the automaker
announced the launch of its new brand, HTWO, dedicated for hydrogen
fuel-cell systems. This new brand is expected to help facilitate
Hyundai's global fuel-cell business and grow the hydrogen
ecosystem. With the HTWO brand, Hyundai will be increasing its
efforts for the development of a next-generation hydrogen fuel-cell
system that can be applied to various forms of mobility such as
automobiles, vessels, urban air mobility, and trains. (IHS Markit
AutoIntelligence's Jamal Amir)
Tata Motors is looking to launch a range of affordable electric
vehicle (EV) models with a long battery range in India over the
next few years. According to a report by The Times of India, the
company plans to price its EV models at "not more than 15-20%
premium" compared with conventional gasoline (petrol)- and
diesel-powered cars while offering a battery range of over 200 km
on a single charge. Tata Motors is working closely with other Tata
Group companies including Tata Power, Tata Chemicals, Tata
AutoComp, and Tata Capital to create an ecosystem that serves the
EV segment. The initiatives are in line with the company's plans to
launch four new EVs in India by 2022, including two sport utility
vehicles (SUVs), a sedan, and a hatchback. (IHS Markit
AutoIntelligence's Isha Sharma)
Posted 12 January 2021 by Chris Fenske, Head of Fixed Income Research, Americas, IHS Markit
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