Let us know about BMW hybrid
To mark the 50th anniversary of BMW M GmbH, the automaker will be bringing in a new performance-oriented hybrid vehicle. The BMW XM was teased a while back and now we have got news that the vehicle has been under rigorous testing to tune the suspension and engine response in the best possible way. It won’t be long before we have the final iteration of the XM running on roads as BMW says it will go into production in December 2022 at the US BMW Group Spartanburg plant.
The fact that the new BMW XM was designed as a pure BMW M automobile is also evident from its almost perfect 50: 50 axle-load distribution and its suspension technology. The new BMW XM is equipped with an Adaptive M Professional suspension as standard. This also includes a model-specific version of the springs and the electronically controlled shock absorbers as well as – for the first time in a BMW M automobile – an electromechanical roll stabilising system with 48-volt technology. With the additional Active Roll Comfort function, it reduces rolling movements due to uneven road surfaces on one side. At the same time, it actively adjusts the body height on the corresponding side of the vehicle. Integral Active Steering is also part of the standard equipment of a BMW M automobile for the first time and promotes agility and cornering dynamics as well as driving stability when changing lanes.
OLD MODEL OF BMW
The MX gets a newly developed V8, petrol engine combined with an electric motor. The total power output of the vehicle stands at 643bhp while the total torque is 800Nm. These figures are lower than the ones quoted for the XM concept back in 2021. When BMW first unveiled the concept, it had a power output of 737bhp and a peak torque of 1,000Nm. Granted that the drop in figures is significant, but 600+bhp is nothing to sniff at. All of the power is sent to all four wheels via the first hybrid-specific M xDrive four-wheel drive system. There is also an electronically controlled differential lock in the rear axle transmission. What has not changed is the promise of delivering 80km on the WLTP cycle when driving in the electric mode.
THE HYBRID ENGINEERING OPPORTUNITY WAS GIVEN TO L&T MULTINATIONAL ENGINEERING COMPANY
Let us
We hosted Larsen & Toubro (L&T) at Edelweiss India’s Singapore Conference 2022. Key highlights: i) Centre/PSU capex is likely to drive infra momentum, even as macro concerns persist, while states lag. ii) Active core business portfolio rationalisation has helped optimise competitive positioning in high-growth segments like water/transportation/hydrocarbon/B&F. iii) Defence/ thermal power/hydrocarbon to lead mid-term growth.
All in all, L&T re-iterated a healthy pipeline and robust return/growth scale-up trajectory with a sharper focus on sustainability, expanding into emerging businesses. Metro turnaround, Nabha exit and buy-back would be levers to 18% RoE corridor, in our view. Retain ‘Buy’ with a SoTP-based TP of Rs 2,370 (core business valued at 25x PE).
Key takeaways from L&T’s commentary
L&T is optimistic on infra spends, despite a weak state-spends outlook. States have budgeted 30%-plus higher spends for FY23E, which might lag. Bulk of infra growth across defence, water, hydrocarbon, rail will be Centre/PSU-led. Private capex accounts for ~17% of OB for L&T (peak at 20-25%), of which 50% is pure industrial and the balance is real estate. L&T is geared to benefit further from greenfield capex (which is low) versus brownfield, which explains the current low private share. Competitive intensity is low in water, hydrocarbon, defence and T&D with 3-4 players dominating each segment. Roads has worsened with 20-plus players competing.
Outlook and valuation: Focus on growth quality, returns; retain ‘BUY’
L&T’s focus has directionally been towards creating stakeholder value. Active E&C portfolio rationalisation, site-level cash flows, exit of non-core, better clarity on capital allocation and sharper sustainability focus are some key initiatives that could make a material difference going ahead. While L&T, in the recent past, has moved directionally with its IT subsidiaries, we believe expanding growth avenues, potential for a reasonable return/cash flow scale-up, should drive shareholder value creation going ahead. Retain ‘BUY/SO’ with a SoTP-based TP of Rs 2,370 (core business valued at 25x PE).
LTTS' Near Shore Center provides engineering and R&D services for BMW Group's suite of infotainment consoles and its family of hybrid electric vehicles, it added.
The proximity to BMW Group's campus will enable LTTS' engineers to work on a variety of solutions and offer services in real-time, the company said, adding that the team will be providing services in the areas of software build and integration, infotainment validation and defect management ....
Eargerly waiting for saw thedestination of BMW....
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