Overdrive awards are the most prestigious recognition given to leaders in the automobile industry. They were held on the eve of 6th February 2018.
What are overdrive awards?
It recognises leaders and innovators in the field of automobiles across various categories such as ‘Design of the Year’ and ‘Performance Car of the Year’ etc. This year the ceremony was graced by esteemed personalities. Amitabh Kant (CEO of Niti Ayog), Nitin Gadkari (Minister for road transport and railways) and Dharmendra Pradhan (Minister for Petroleum and Natural Gas) were some of them.
Theme of the Awards
‘Electric’ was observed as the theme for the Overdrive 18, given the government’s urgent desire to be completely electric by 2030. A panel discussion with industry experts and heads of various automobiles giant such as Honda, Maruti and Mahindra provided an insight into the future of electric vehicles in India. Various initiatives by the government, as well as challenges to achieve the same, were stressed upon. Some of the initiatives are as follows: 12% tax on electric vehicles in comparison to 28% tax on other vehicles, NTPC Ltd to build charging stations across the nation etc. The infrastructural requirement, resistance by some players, need for training of existing professionals etc were highlighted as key challenges.
Impact of Make in India on the automobile industry
Indian automobile sector is the most penetrable industry with only 18 out of 1000 possessing a personal vehicle. Make in India has provided the needed boost in the automotive industry. Allowance of 100% FDI in the automotive sector was one of them. The sector observed an increase of up to 79% in investment in the past few years attracting USD 17.91 during 2000-2017. India has become a hub for various auto giants such as Maruti, Ducati and Harley Davidson. Internationally, India is the largest manufacturer of tractors, 2nd largest manufacturer of two-wheelers and buses and 6th largest manufacturer of cars. The government plans on further pushing the sector by launching an Automotive Mission Plan 2016-2026 which aims at making India one of the top three automotive industries in the world.
The positive synergy of AMP 2026 and Make in India can be seen clearly by increasing exports and profits of the various giants. Overall, there was a 16.20% rise in the export of personal vehicles and a 4.99% rise in the exports of commercial vehicles. Although in totality exports declined by 4.50% due to the fall in global demand for three-wheelers whose export declined by 33.77% in April-March 2017 over April-March 2016.
Maruti Suzuki reported an increase of 16% in net profits for the quarter ending 31st March 2018 partly due to the gigantic sales of luxury vehicles such as Brezza. Whereas a jump of 37% was observed for the year 2016-17 over 2015-16. The sales for the year were 15,68,603 units out of which 1,24,062 units were exported (almost 10%). Maruti plans on expanding its outreach by investing Rs 4500 crore in the industry.
Winners of the CNBC-TV 18 Overdrive Awards
Leading brands of the automobile industry were recognised, marking the end of the ceremony. Hyundai Motors was recognised as the ‘Exporter of the Year’ 4W segment as well as the ‘Car of the Year’ (particularly Verna model). Harley Davidson India Fat Bob was recognised as the Design of the Year 2W segment.
Overdrive awards are eagerly awaited by various stakeholders. These awards mark not only the recent developments but the future expected trends for the industry as well. One thing is for sure, the automobile industry is going to be on the watchlist of various investors.