Page 34 - MTW JANUARY 2022 Digital Magazine

INDUSTRY FOCUS

drive sustainability along the value chain. Our strategic approach reflects Vitesco Technologies’ business model
and values, our commitment to rules, policies and international frameworks, legal requirements, as well as
expectations from customers and future investors.

Government Schemes:
The most critical move announced in the Union Budget 2021-22 was the long-awaited vehicle scrappage policy.
The policy, which allows people to get rid of vehicles older than 20 years, also offers a few incentives to do
so. This includes a 5% rebate on new vehicle purchases, and discounts and waivers on road taxes and vehicle
registration fees. The scrappage policy will be instrumental in encouraging demand and will also help consumers
move towards cleaner and more sustainable vehicles.
While we await the details of the entire vehicle scrappage policy, which will be implemented later this year,
there are other announcements that have an immediate impact on the demand of EVs”.

Mr. Ashwath Ram, Managing Director, Cummins India Limited said “2021 started positively with signs of
visible business growth trends after Wave 1 of the Covid 19 pandemic. Wave 2 from April to June caused
massive devastation resulting in constrained economic activity and severe loss of lives. The second half of
the year came in as a ray of hope with the gradual recovery and stabilization of the business environment.
Cummins is well-positioned for growth as economic activity gains momentum, and we continue to witness
strong demand for our products and services. This rising demand is encouraging; however, significant
constraints in the global supply chain continue to pose challenges for our business and our customers.
These constraints have resulted in rising material costs, high logistics expenses, and other manufacturing
inefficiencies. We met these challenges successfully driven by the agility of our employees, great product
launches, the faith of our customers, and the support extended by our suppliers. As we march into 2022, our
priority continues to be the safety and well-being of our people, powering our customers and communities,
focusing on improving margins, and ensuring our company’s continuity in the future.
From an industry perspective, 2021 has been a challenging year. The uncertain turn of events due to Wave
2 of the pandemic resulted in significant disruptions in the global supply chain, leading to an extended period
of shutdowns, material and labor shortages, and higher costs beyond forecasted expectations.
With economic revival happening gradually and strong support from the Government of
India for driving manufacturing growth through initiatives such as: Make in India and
Atmanirbhar Bharat, PLI scheme, increase in FDI, push for developing industrial
corridors and smart cities, we are hopeful that 2022 will witness a strong revival
and upward trend in business performance.
For Cummins India, 2021 was a year of agile strength and consolidation.
While 2020 taught us all to be resilient, 2021 was a further step up in navigating
through disruptions and ambiguity and demonstrating agile strength. We learned
that the best thing to do to respond to a crisis even when the path ahead does
not appear very clearly is to continue moving with purpose and determination.
It also made us realize that the shift in working is not transient but here to stay.
“Flexibility” at work can be individualized for each person and their needs while also
meeting the needs of our business to achieve successful outcomes.
As 2021 comes to an end, we continue to work safely and effectively through
this challenging period with strength and cautious optimism. Our focus is on meeting our
commitments to customers who provide products and services critical for the functioning of the Indian and
global economy. We are quite hopeful of sustained improvement and economic recovery across industries and
segments from an outlook perspective. However, with the rising Omicron Variant cases, the threat of future
waves, and forecasted supply chain disruptions, it is difficult to give a steady or stable outlook for 2022”.

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