Morning buzz: Byju's $40 million load default; Tesla vendor base in India; EV 2-wheeler sales down

Byju Raveendran, CEO, Byju's. Image: Manjunath Kiran/AFP

Byju’s defaults on $40 million loan payment

Byju’s missed payment on a $40 million loan installment due on June 5. It sued its lender Redwood, an American investment management firm, for accelerating its loan payment and said it would only take further action based on the outcome of the suit. Byju’s is yet to file its audited FY22 financials. In April, lenders had demanded $200 million in prepayment and Byju’s was offering a higher interest rate in exchange for postponing payment.

(Economic Times, Business Standard, Mint)

Sequoia splits into three firms, India firm to be renamed PeakXV Partners

 
Sequoia Capital, the famed American venture capital firm, has split into three units. The United States, China and India businesses will operate independently. The firm said the move was necessitated as different markets operate with different strategies and this had led to some brand confusion and portfolio conflict. The India and South East Asia business will be renamed PeakXV Partners.

(Economic Times, Business Standard, Financial Express)

Tesla agrees to set up vendor base

 
Tesla Motors has agreed to set up a vendor base in India as it works on plans to manufacture cars in the country. The government was keen that it first starts with the vendor base but there are indications that the company would only do that if and when it starts manufacturing in India. Tesla does not believe in separating the manufacturing and vendor base, the story says. According to the story, the company is working hard on extracting concessions from the government and has said it will submit a plan on setting up an indigenous supply chain.

(Financial Express)

Electric 2wheelers sales skid as subsidy cut kicks in

 
Since the reduction in subsidy from June 1, sales for electric two-wheelers have crashed to one fourth of the earlier 2,000-3,000 units per day. Data sourced from the governments Vahan portal shows an average of 540 vehicles sold per day between June 1-6. Manufacturers Greaves Electric Mobility, Bajaj Auto, Ola Electric, Ather Energy have all increased prices between Rs10,000-40,000.

(Financial Express )

Honda to launch 5 new SUVs by 2030

 
Honda, which has been struggling to up volumes in the Indian market, plans to launch five new SUVs as well as an electric vehicle to enable it to play in the larger part of the market. The launches will take place by 2030 giving the company products to cater to at last 40 percent of the market by volume. Its new car, the Elevate, will compete with the Creta and Grand Vitara and the electric vehicle is expected in the next three years.

(Times of India)