P.B. Balaji: Thanks Shailesh. Adrian, the third point is coming your way – in JLR how do we see the VME trending given the macro and aggressive pricing from EV OEMs. I think Morgan Stanley also had a question on this one?
Adrian Mardell: Yes, thanks Balaji look we’re not seeing any signs point in time of lifts in VME even though I can understand the sentiment behind the question. I think in the environment we’re in. While we still have had demand and orders increasing above supply that will to continue to be the place and VME is mixed by region and by nameplates, of course. And with the bias that we have, and the customer orders we have on Range Rover, Range Rover Sport, Defender North America and China they are the big buyers as within the data today. You know the Armstrong VME is 0%, 0%, 0%, 0% and 0% so with this level of order intake and the buyers to those products and – instability within the production and supply pipelines. We will continue to be very, very low.
There will be a point in time where that stuff will start to lift. And so another question you asked about what normal is? If normal 40,000 units a month plus for us, which likely is I think it’s reasonable to assume at this point will be passing more, but there non-big three units to the other regions. And then VME will start to gradually lift to 2%, 2.5% level at some point we’re not seeing any sign of that within the data we have today.
P.B. Balaji: Thank you. Next question I move to Raghunathan from Emkay. The other questions have been answered, but the one that is new, which is on the EV/PV subsidiary from when would you get PLI scheme benefits. And are you currently accounting, how are, you accounting these incentive as part of the PLI benefits itself is concerned the key is to ensure that the domestic value addition norms are met and we are getting our vehicles accordingly certified. And at this point and we will have to file when the financial year is over, then you file for the PLI benefits and you’ll get it subsequently. Given the fluidity of the situation at this point in time and we are going through the process and the first time that we will be filing this year currently no accrual is being done on these incentives and once we get one round of things coming through then we’ll be in a position to review it on that one.
Okay. We already explained that one – just capacity, I think Hitesh Goel, CLSA. What is the domestic passenger vehicle capacity currently and when is the Ford capacity coming on stream?
Shailesh Chandra: Yes, so as far as our capacity is concerned, we have been now at around 50,000 per month. We have further the ability to debottleneck the capacities in our two plants which is in Pune and Sanand which is the existing facility not the Ford one, by an additional 10% to 15%. And we are targeting to operationalize the Ford plant in 12 to 18 months timing.
P.B. Balaji: Yes, thank you. I think there is a question from Jinesh on passenger vehicle, a sharp drop in other expenses on a quarter-on-quarter basis, was there any one-offs? I think most of it is linked to just cost facing across quarters nothing to read in it beyond routine stuff there. Then other one is in terms of when can you expect to see these exciting products that we were displayed in Auto Expo?
Girish Wagh: Yes, so none of these products were concepts, these are products all going to come into two, three years’ timeline. We already mentioned about that Harrier EV is going to come in 2024. Sierra and Avinya will come in 2025. These were the three electric vehicle products that we had shown, Tiago is already launched that was the fourth one. As far as ICE products are concerned, Curvv is also going to come in 2024. Then the CNG models which were being similar model of Punch and Altroz already mentioned earlier that it’s going to come in the first half of the next financial year, those are .
P.B. Balaji: Thank you, Ben. The next question is from . This is on — can you confirm if you still be looking to use cash to repay the 2023 maturities versus refinancing through the markets and the breakeven guidance implies 300 million HCF for the last quarter, which I think Adrian has already addressed that. So Ben, can to take the first piece?
Bennet Birgbauer: Yes, on the refinancing, so I think the default or base plan is that we had an expectation of circa £750 million, £800 million of cash flow in the second half which Adrian already talked about and that would be sufficient to cover on the two bonds we have maturing in February and March for £800 million equivalent and it’s probably also worth mentioning that in June of this year, we had a £600 million equivalent on China bank loan due to mature. And actually we signed an agreement in January to extend that for three years from January of this year. Some maturing the facility will end in January 2026 through our annual reviews. So we’ve at least pushed out the maturity until January of 2024.
P.B. Balaji: Thanks Ben. The next set of questions coming in from Kapil Singh. First one to you Shailesh Tiago EV, what’s the percentage of first-time buyers that you’re seeing in the order book?
Shailesh Chandra: You know first time buyers roughly 25% to 30% is what we are seeing who are buying a car, for the first time that’s substantial in electric, but we are not never see this mostly the people had worked buying this as a second or the third car. Although a high percentage was using this as the only car and also the primary car. It’s first time buyers we have seen significant size of buyers.
P.B. Balaji: And related question is this gross margin dilutive for the PV business and the initial stages. Yes. But after that it will start trending towards the margins of the main medical will be making. But that’s over a period of time. But that’s part of the planning that we have for the overall portfolio. City Sentiment Index, Girish what’s your latest since record.
