Business
Tata Motors, Maruti, Ashok Leyland, Hero: In Auto Stocks Rally, Optimism Over PM Modi’s GST Move

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Shares of auto majors, including Hero MotoCorp, Maruti Suzuki India, Ashok Leyland, TVS Motor and Bajaj Auto, rally 5-8% amid expectations of a GST rate cut.

Tata Motors rose nearly 3% on Monday.
The domestic equity market surged on Monday following Prime Minister Narendra Modi’s announcement on GST reforms, S&P Global’s rating upgrade on India, and other positive global cues. While the benchmark indices, the BSE Sensex and the NSE Nifty, are up by over 1.3% each, the automobile stocks are fuelling the rally the most, with the Nifty Auto Index trading higher by an impressive 4.5%.
Shares of auto majors, including Hero MotoCorp, Maruti Suzuki India, Ashok Leyland, TVS Motor and Bajaj Auto, rallied 5-8% on Monday morning amid expectations that the GST rate on vehicles could be reduced from 28% to 18%.
Maruti Suzuki on August 18 hit its all-time high of Rs 14,048 apiece on the NSE, which is up nearly 8.7% compared with the previous close. Ashok Leyland was up by 7.7% at Rs 131.25, Hero MotoCorp was trading higher by 6.7% at Rs 5,024, TVS Motor Company rose 6.8% to Rs 3,226.8, Hyundai Motor India surged by 8.39% to Rs 2,428 apiece on the NSE.
Tata Motors also rose nearly 3% on Monday to Rs 685 in morning, while Mahindra & Mahindra was up by 4.5% at Rs 3,412. Bajaj Auto was trading higher by 3.7% at Rs 8,521.
Prime Minister Narendra Modi in his Independence Day Speech during the weekend announced a major overhaul in the Goods and Services Tax (GST) structure. Though he did not announce any details, reports said the Centre is considering scrapping the current 12% and 28% GST slabs, realigning most items into the 5% and 18% categories. Certain sin or luxury goods may be placed in a new 40% bracket.
The Centre is reportedly expected to lower the GST on passenger vehicles (PVs) and two-wheelers, enhancing their affordability quotient. Currently, two-wheelers are taxed at 28%. Analysts believe a cut to 18% is highly probable.
Brokerage Notes
Global brokerage firm Jefferies in its note said, “All the listed 2W OEMs – Bajaj, Hero, TVS, and Eicher – should benefit from this cut. We see a low probability of differential GST between entry-level and premium 2Ws.”
In passenger vehicles, small cars currently face an effective tax of 29-31% including compensation cess, making Maruti Suzuki one of the biggest potential beneficiaries of a rate cut. SUVs, however, are taxed at 45-50%, a rate Jefferies said is unlikely to change.
“Hybrid vehicles attract a similar GST rate as ICE vehicles, compared with 5% for EVs. Any reduction in GST on hybrids could be positive for Maruti,” the brokerage added.
Commercial vehicles, also taxed at 28%, may see a reduction to 18%. Ashok Leyland, along with Tata Motors and Eicher Motors, would be key gainers in such a scenario, Jefferies said.
Domestic brokerage firm Motilal Oswal Financial Services in its report on August 18 said automobiles will be one of the key segments that stand to benefit from GST rationalisation.
Passenger vehicle makers Maruti Suzuki and Tata Motors, currently paying 28% GST, are expected to benefit significantly if rates are lowered to 18%. Commercial vehicle maker Ashok Leyland may also see demand tailwinds as GST on trucks and buses comes down to 18% from the current 28%, said Motilal Oswal in the report.
Arun Agarwal, vice-president (fundamental research) of Kotak Securities, said, “The potential GST cuts for the automotive products to 18% would lower on-road prices across segments. We believe lower prices would stimulate demand recovery, and the impact would be more in the mass-market segment. Auto manufacturers (OEM) would gain from higher revenue and potentially higher margin, resulting in possible earnings upgrade.”
Auto ancillaries would also gain from the potential GST cut. However, the impact would vary depending on geographical exposure. Auto ancillary companies having higher revenue exposure in the domestic market stands to benefit more, whereas the gains for global suppliers would be lower given higher export exposure and tariff-related uncertainty, he added.
The government is reportedly planning to propose a simplified two-slab GST structure of 5% and 18%, replacing the current four-tier system of 5%, 12%, 18% and 28%.

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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ICAI in talks to provide data for sovereign AI – The Times of India
Business
Paraguay – the Silicon Valley of South America?

Jane ChambersBusiness reporter, Asunción, Paraguay

Gabriela Cibils is on a mission – to help turn Paraguay into the Silicon Valley of South America.
When she was growing up in the landlocked country, nestled between Brazil and Argentina, she says the nation “wasn’t super tech focused”.
But it was different for Ms Cibils, as her parents worked in the technology sector. And she was inspired to study in the US, where she got a degree in computing and neuroscience from the University of California, Berkeley.
After graduating she spent eight years working in Silicon Valley, near San Francisco, with roles at various American start-ups.
But rather than staying permanently in the US, a few years ago she decided to return home to Paraguay. She’s now helping to lead efforts to build a large and successful tech sector that puts the country of seven million people on the world map – and attract some of the globe’s tech giants.

“I saw first hand the impact that technology can have on your life,” says Ms Cibils. “After being exposed to such a different world [in Silicon Valley], it’s my responsibility to bring that mindset back and combine it with the talent I see in Paraguay.”
She is now a partner at global technology and investment firm Cibersons, whose headquarters is in Paraguay’s capital Asunción.
While most countries would love to build a world-class tech sector, Paraguay has a distinct advantage in one regard – an abundance of cheap, green electricity.
This is thanks to 100% of its generation now coming from hydroelectric power.
This is centred on the giant Itaipu Dam on the Paraná River, which forms part of the border between Paraguay and Brazil. This huge hydroelectric power station, the largest in the world outside of China, supplies 90% of Paraguay’s electricity needs, and 10% of Brazil’s.
In fact, such is Paraguay’s surplus of electricity that its electricity prices are the lowest in South America.
And it is the world’s largest exporter of clean energy.
The Paraguayan government hopes that the country’s abundance of cheap, green electricity will attract global tech firms increasingly focused on the massive energy demands of AI computing.
“If you want to install any technology investment like AI data centres, keep in mind hydroelectric power is both renewable and steady,” says Paraguayan software development entrepreneur Sebastian Ortiz-Chamorro.
“Compared to other renewable energy sources like wind or solar, that have their ups and downs, it’s much more attractive for creating data centres or any other electro intensive activity that requires a steady electricity source.”
He adds that in addition to Itaipu, and Paraguay’s other large state-owned hydroelectric plant, the Yacyretá Dam, private companies can easily build their own smaller facilities.

On a visit to California last year Paraguay’s President Santiago Peña spoke with companies like Google and OpenAI to encourage them to invest in Paraguay. It remains to be seen if such industry giants open large operations in the country.
Minister of Technology and Communication Gustavo Villate is working closely with the president on the continuing efforts.
“We have the youngest population. We have a lot of renewable green energy. We have low taxes and economic stability,” he says proudly.
I’m taken on a tour with the minister of a planned new digital park near Asunción’s main airport. It’s currently green fields and some army barracks.
Mr Villate unfurls plans to show off the lakes, a childcare centre and other buildings which he says should be ready in under two years.
“The government are going to invest around $20m (£15m) for the first stage, but the idea is for private companies to invest the rest,” he says.
Even though the park isn’t ready yet, Mr Villate says the collaboration already happening between the public, private and university sectors is key to building an ecosystem to attract foreign investors.
The government thinks the country’s young population will be a key attraction, and able to provide a large tech workforce. The average age in Paraguay is 27.

But more young people will need to be trained. The technology minister says the new digital park will also be home to The University of Technology, which is a joint venture between Taiwan and Paraguay.
Meanwhile, there are other initiatives to train young people in the country. “We are working really hard to create a mass of software engineers, programmers and everything you need to provide software services,” says Vanessa Cañete, president of trade group Paraguayan Chamber of the Software Industry.
Ms Cañete says she is also passionate about encouraging more women to study computer engineering. In 2017 she set up Girls Code, a non-profit association which aims to close the tech gender gap.
It organises programming and robotics workshops for teenagers and young women, with more than 1,000 receiving some sort of training to date.
Ms Cañete adds that software developers are also given English lessons for up to four years to improve their communication with overseas firms.
The people I met are brimming with positivity about what Paraguay has to offer the tech world, but they are also pragmatic.
Ms Cibils says there are still “growing pains” for foreign investors, with issues like bureaucracy, which can hold things up adapting local contracts to standardised international ones.
But she is adamant that “if you put innovation at its core and leverage all the benefits that the country has I think Paraguay can be a superpower”.
Business
Consumer tech expansion: Philips to widen India portfolio with global products; focus on male grooming, mother and child care – The Times of India

Philips India is set to broaden its footprint in the domestic market by introducing more global product lines and strengthening its offerings in male grooming and mother and child care, responding to rising consumer demand for premium personal care products.The company, which recently rolled out its rechargeable intimate skin-protect grooming product, OneBlade, aimed at Gen Z consumers, said the premium segment is seeing robust growth, highlighting a shift in Indian consumer preferences, PTI reported.“We will continue strengthening male grooming and mother and childcare with newer and newer innovations, and we continue to get our global categories, which are huge in other markets, into India,” said Smit Shukla, Head of Philips Personal Health India Subcontinent.He added that Philips has a large global portfolio in oral care, and the company is assessing strategies to drive consumer demand before introducing these products in India.According to Vidyut Kaul, Head of Personal Health, Philips Growth Region (JAPAC, ISC, META & LATAM), the non-manual grooming market in India has been expanding at a mid-to-high single-digit growth rate annually over the last five years.In the grooming segment, Philips India enjoys a 50-60 per cent market share, depending on the sales channel, Kaul said, underscoring the brand’s leadership position.He added that while Philips has long been a global innovation leader, the company had earlier avoided introducing premium innovations in India due to perceptions of it being a price-sensitive market. However, he said, “It is not price-sensitive but value-conscious, and we are seeing that premiumisation is fast catching up.”The company’s most premium shaver, launched in April this year, received a strong consumer response, with demand outpacing supply, he said. Philips has witnessed over 75 per cent growth in the premium segment, driven by this shift in consumer sentiment.The male grooming segment continues to be one of the top growth drivers for Philips in India, followed by the mother and child care segment, both of which have performed strongly over the past 2–3 years.“They continue to boost more and more growth and give access to the consumers. In addition, the personal care and personal grooming segments will further accelerate the growth journey there,” Kaul said.He also noted that Philips has enhanced localisation in its manufacturing operations under its ‘local-for-local’ strategy, which has helped shield the company from the impact of rising US tariffs.
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