MARCH, 20269TOP STORIESINDIA PLANS $11B FUND TO BOOST DOMESTIC CHIPMAKINGIndia is preparing a new multi-billion-dollar fund to support the development of its semiconductor sector as the government seeks to expand domestic chip manufacturing and strengthen supply chains.According to reports, the Government of India is considering the creation of a fund worth about $11 billion to encourage semiconductor companies to establish manufacturing facilities in the country. The fund would provide subsidies to support chip factories, semiconductor technology development and the expansion of the local supply chain. The proposal is currently under discussion and has not yet been finalised.Semiconductors are essential components used in a wide range of products, including smartphones, laptops, automobiles, defence systems and artificial intelligence infrastructure. Rising global demand for these technologies has led several countries to increase investment in domestic semiconductor production.India's proposed initiative reflects broader global competition to strengthen semiconductor supply chains and reduce dependence on imports. Governments across major economies have introduced funding programmes to attract chipmakers and support domestic manufacturing capabilities.The plan also aligns with the government's broader strategy to expand India's role in global technology manufacturing. Prime Minister Narendra Modi has previously emphasised the importance of developing a domestic semiconductor ecosystem as part of the country's industrial and digital development plans.Union Minister for Electronics and Information Technology Ashwini Vaishnaw has also highlighted the goal of positioning India as a major semiconductor hub by 2030.The proposed fund is expected to build on India's earlier $10 billion semiconductor incentive programme launched in 2021. Under that scheme, the government offered financial support covering up to 50 per cent of the cost of semiconductor manufacturing projects.The earlier programme attracted investment commitments from companies including Micron Technology and Foxconn. The Tata Group has also announced plans to establish a semiconductor manufacturing facility in Gujarat as part of the broader push to develop the sector. IMRAudi India recently declared a price hike of up to 2% on their cars starting from April 1 2026 as a result of higher input costs and currency exchange rate fluctuations. This price change will be effective across all the models that the company is selling in India, both sedans and SUVs.The company stated that this change is required to a certain extent to cover the higher costs of production and operations. Luxury car manufacturers are dependent to a great extent on imported components and materials, which makes them susceptible to changes in currency value and higher costs of raw materials.The price hike intends to address these issues while the impact on customers is kept at a minimum. Considering the current prices, the change could mean an increase of around 86,000 on the smallest models such as the Q3 and up to approximately 4.6 lakh on the premium models like the RS Q8. The exact hike will depend on the model and variant.Audi is presently having a considerable range of luxury vehicles in India. What are assembled in the country are models such as A4 and A6 sedans. Besides these, SUVs like the Q3, Q3 Sport back, Q5, and Q7 are also locally made. In addition, the firm features several imported vehicles - A5 Sport back Q8, Q8 e-torn and the high-performance RS Q8.This will be the first time Audi India is revising prices in 2026. Generally, it is a reflection of a wider luxury car industry trend where car brands regularly modify prices for different reasons such as cost increases, exchange-rate pressures, etc. Recently, other premium car brands also operating in India have disclosed such price changes.It was done right before the launch of the SQ8 performance SUV in India. So, although the profitability of the entire industry is under pressure due to rising production costs, it seems like the brand is not only sticking to its existing portfolio but is also planning to add to it soon. IMRAUDI INDIA TO RAISE CAR PRICES BY UP TO 2% FROM APRIL
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