Why are Indians buying fewer cars?

Top of the Morning

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, September 9, 2024. My name is Nelson John. Let's get started.

The Indian government is exploring the creation of its first sovereign wealth fund by pooling shares it owns in publicly traded companies. This proposed fund could control assets worth around 50 trillion rupees, sources told Mint’s Mihir Mishra. The government would maintain control by possibly issuing non-voting shares and exploring a "golden share" concept, which grants specific rights without affecting voting power. Globally, about 40 countries have sovereign wealth funds, using them to secure critical assets and improve infrastructure. This new fund could also enhance public sector efficiency by encouraging mergers or reorganizations.

Are you planning on buying an electric vehicle soon? You might want to hurry up, otherwise you’d be forced to upload selfies with your new car to qualify for a subsidy. Alisha Sachdev reports that the central government plans to issue digital certificates to EV buyers under the third phase of its flagship FAME scheme. These certificates will note the subsidy provided by the government. This initiative seeks to vocalise the government’s role in popularising EVs for the masses, but might rub some buyers the wrong way.

Just ahead of the festive season, India's passenger vehicle sales have taken a hit, dropping for two months straight, with dealers facing a glut of unsold cars. Over 7.8 lakh units worth close to 78,000 crore rupees remain unsold. This year started strong, with sales initially surpassing pre-pandemic levels, but recent figures show a decline of 2.5% and 1.4% in July and August, with a similar trend in retail sales. The current dip in demand is attributed to a high base effect from previous growth spurts and dwindling pandemic-era demand, despite improved production rates due to resolved semiconductor shortages. Sumant Banerji explains why the sale of passenger cars has slowed down in today’s Primer.

Sundaram Finance controls nearly 6,000 crore rupees worth of deposits. Its loyal customer base has unwaveringly placed its support, despite the company being a non banking financial company. However, Sundaram Finance lags behind peers like Bajaj Finance due to its conservative approach focused on serving the underserved, resulting in slower growth. The Reserve Bank of India wants NBFCs like Sundaram to turn into full fledged banks. Will Shriram Finance take the bait and march towards growth? N. Madhavan tries to answer.I

The UAE's Golden Visa program is catching the eye of wealthy Indians, with about 4,300 people expected to relocate to the Emirate in 2024. The top choice? Dubai. A 10-year renewable residency that can be yours with a minimum real estate investment of around 4.57 crore rupees. Once you've invested, you'll snag a six-month multi-entry visa to start, then head to the UAE for your ID and medical checks. It takes a couple of months to process, but it’s a straightforward path to planting roots in Dubai. This visa isn’t just a ticket to the UAE; it's a gateway to tax benefits and global connectivity. In this piece, Mint Money’s Jash Kriplani takes you through the process of applying for a golden visa. Head to the show notes to read the stories featured in today’s podcast.