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Volvo Cars said it would not invest in its struggling partner Northvolt as the Swedish group halved its annual sales growth forecast amid a slowdown in vehicle demand and geopolitical turbulence.

Chief executive Jim Rowan told the Financial Times that the company would not provide direct financial support to the cash-strapped Swedish battery group, which has a joint venture to build a plant in Gothenburg with Volvo. He added that the company needed to “tighten its belt”, warning that the auto industry would “remain under pressure”.

Rowan also said the company had diversified its battery supply chain so that it would not be exposed to the troubles at Northvolt, which is trying to raise fresh funds.

“I would love to see Northvolt be successful,” he said. “But even if Northvolt doesn’t make it as a company, we won’t be affected by that because we are multi-sourced in terms of battery supply.”

The Swedish group, which is majority-owned by Chinese carmaker Geely, said it now expected retail sales to rise 7 to 8 per cent this year, down from guidance in July of 12 to 15 per cent — itself a downward revision. As a result, the company now expects its free cash flow to remain negative for the year. 

Shares in Volvo fell more than 4 per cent in early trading on Wednesday in Stockholm.

The company reported an operating profit of SKr5.8bn ($548mn) in the three months to the end of September, up 29 per cent from a year earlier, on revenue that was roughly flat at SKr92.8bn. Both came in well above market expectations. 

Despite a robust third quarter, Rowan said on Wednesday that overall demand for cars, including the premium segment, was softening in the company’s key markets including China, the US and Europe because of higher interest rates. 

“The external headwinds are clearly intensifying and these are the inescapable business realities of today,” he said, adding that the company would focus on price discipline over volume to navigate “turbulence in the market”.

Volvo last month abandoned its ambitious target to sell only electric cars by 2030, blaming a global slowdown in growth for battery-powered vehicles after governments in Europe pulled back subsidies.

Under its revised target, Volvo will now aim for 90 to 100 per cent of its global sales to be electric cars and plug-in hybrids by 2030. It will also continue to invest in hybrid technology amid growing consumer demand for cars that combine battery capabilities and traditional engines.

For the latest quarter, fully electric and plug-in hybrid vehicles accounted for 48 per cent of the company’s 172,849 cars sold. 

Carmakers in Europe, including Volkswagen and Stellantis, have issued a series of profit warnings in recent weeks as they wrestle with slowing electric vehicle growth as well as increasing competition from Chinese rivals.

Bernstein analyst Harry Martin said the new guidance — which also includes zero volume growth in the fourth quarter — confirmed that “the next 12 months will be incredibly challenging as the effects of the EU-China tariff and rising competition from lower-priced EV models come in next year”. 

To address the EU’s higher tariffs on imports of EVs made in China, Volvo has already said it would produce its EX30 EV model in its Ghent plant in Belgium as well as in China from next year. Asked about the impact of the tariffs, Rowan said it posed “a short-term problem” for the company.

The Reserve Bank of India (RBI) barred four non-banking finance companies (NBFCs), including two microfinance institutions (MFIs), from sanctioning and disbursing loans for charging exorbitant interest rates to borrowers. The four entities were Asirvad Microfinance, Arohan Financial Services, DMI Finance, and Flipkart co-founder Sachin Bansal’s Navi Finserv.

Navi Finserv offers home and personal loans, while DMI Finance provides micro, small, and medium enterprise loans as well as personal and consumer loans.

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Besides usurious pricing, RBI found these NBFCs non-compliant with regulatory guidelines on assessing household income and considering borrowers’ existing and proposed monthly repayment obligations. “Deviations were also observed with respect to income recognition and asset classification norms, resulting in evergreening of loans, conduct of gold loan portfolio, mandated disclosure requirements on interest rates and fees, outsourcing of core financial services…,” the country’s central bank said.

RBI clarified that these NBFCs could continue servicing existing customers and manage collections and recoveries. The business restrictions would be reviewed once the companies confirm they took suitable remedial measures to comply with pricing policies, risk management, customer service, and grievance redressal guidelines.

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Market experts told THE WEEK that the steps from RBI would serve as a warning to such NBFCs and MFIs who indulge in predatory pricing and charging exorbitant interest rates from customers. “RBI has recently been very vigilant about malpractices in this space, particularly where MFIs are busy charging exorbitant interest rates. It has issued multiple warnings, and this action is no surprise,” said SEBI-registered investment advisor Gaurav Goel.

“Such exorbitant pricing leads to more defaults and is counterproductive from a larger perspective. We believe in the long haul this action would be positive for the hygiene of Indian financial institutions and for safeguarding the interests of the common people,” added Goel.

Many other experts felt that such a move would significantly impact the co-lending space as the central body tightens controls over NBFCs. Co-lending allows NBFCs and banks to partner and combine their strengths in risk-taking, regulatory compliance, and customer reach. The regulations, though restrictive, also encourage responsible lending and ensure that NBFCs maintain transparency and avoid reckless lending practices.

“We see this regulatory shift as a positive move, as it enhances the credibility of the sector. By weeding out weaker players, the regulations are creating space for more responsible players in the NBFC sector to thrive,” Rupee122 founder Vikkas Goyal pointed out.

“The future of co-lending in the NBFC space will be marked by stronger partnerships, stricter risk assessment, and more robust operational frameworks to maintain regulatory compliance while continuing to serve a growing customer base,” said Goyal.

Few stakeholders felt that such a move by RBI presents both challenges and opportunities in the co-lending space. With RBI regulations now focusing on curbing the lending capabilities of certain NBFCs, the co-lending space is likely to see more stringent governance, especially in areas like credit assessment and disbursal criteria, they said.

“We believe that the future of co-lending will shift toward enhanced accountability and better risk management practices. By adhering strictly to these evolving regulations, NBFCs can foster greater trust within the financial ecosystem. These regulatory measures, while initially restrictive, could create a more resilient and transparent lending environment that benefits both borrowers and lenders in the long term,” observed Amit Bansal, founder of BharatLoan.

Borrower credit sanctions need more checks and balances

Through such a move, RBI continues to believe that the fintech originator and the co-lending partner (balance sheet provider) should both evaluate the borrower’s credit, and every sanction has to pass through the credit team. In an attempt to approve loans instantly, the co-lending partner ends up relying a lot on the originator for assessment. As a result, the credit analysis that the balance sheet provider should ideally perform has become less stringent. “This [RBI] circular would begin to exert pressure on the originator to keep the firm running, looking for liability, leading to a gradual shift towards partnerships with private and public banks,” said Nirav Shah, MD of Investment Banking at Equirus.

The circular reflects the RBI’s broader agenda to ensure responsible lending practices in the financial sector. As the microfinance sector grows, regulatory scrutiny is likely to intensify, pushing institutions to adopt fairer and more transparent lending practices.

“The primary concern appears to be the excessive Weighted Average Lending Rate (WALR) and interest spreads over their cost of funds. At the same time, the NBFCs are reported to have deviated from the Fair Practices Code and regulatory guidelines concerning the assessment of household income and repayment obligations,” remarked Raiyan Kazi, business head of TransBnk, a digital transaction-banking platform.

“The co-lending market is expected to see a drop in volumes in segments with relatively higher FLDG as the industry adjusts to the new normal. However, the sector’s growth potential remains, driven by the increasing demand for financial services and the role of NBFCs in broadening access to finance,” added Kazi.

Yesterday, one of the affected firms, Asirvad Microfinance, issued a media statement acknowledging RBI’s circular. “This matter has been immediately brought to the notice of the board, and a meeting has been convened to take immediate action. The board has reiterated its unwavering commitment to implement RBI’s direction in letter and spirit and monitor the corrective action in a time-bound plan,” the statement read.

Walmart’s Affordable Two-Story Tiny Home: The $5,497 Housing Solution

As housing costs continue to rise, more people are looking for affordable alternatives that don’t sacrifice comfort or functionality. Tiny homes are a booming trend, offering a compact and efficient living solution. Walmart is joining the movement with an exciting and budget-friendly offering—a two-story tiny home priced at just $5,497. This could be your ticket to owning a home without breaking the bank.

Whether you’re a first-time homebuyer struggling to enter the housing market, someone seeking a minimalist lifestyle, or just looking for a cost-effective rental property, Walmart’s tiny home could be exactly what you need. Its simple yet versatile design makes it an excellent option for a variety of uses—from a guest house, Airbnb rental, or even a home office or studio space.

On the outside, the small house resembles a straightforward but functional garage shed.

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Tiny Living, Big Benefits

Tiny homes like Walmart’s Best Barns Geneva 12×16 Wood Shed Kit offer more than just a place to live—they’re a lifestyle choice. Embracing tiny living allows homeowners to minimize their carbon footprint, reduce energy consumption, and save money on utilities. For those tired of the burden of large homes and hefty mortgages, a tiny home provides a refreshing alternative.

This specific model is perfect for those who need extra space on their property, whether it’s a single-car garage, a place to store tools, or a cozy living space for guests. From the outside, it resembles a high-quality garage shed, but inside, it’s built to maximize space with a second-floor loft, adding valuable storage or an extra sleeping area.

What’s more, tiny homes are customizable. The Best Barns Geneva model comes pre-primed, so you can easily paint it in your preferred color, making it truly your own. And if you’re a fan of DIY projects, this tiny home provides a hands-on opportunity to enhance your skills, as assembly is required.

In fact, Walmart’s priciest tiny home currently stands at a whopping $29,990. So, if you’re looking for a more budget-conscious option, this $5,497 model offers fantastic value.

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A Quick and Easy Purchase

One of the standout features of this tiny home is its ease of purchase and delivery. Walmart offers delivery in less than a week, meaning your tiny home could be on your property in just a few days. The current listed price is $5,947, slightly above the $5,497 price point, so be sure to check Walmart’s website for up-to-date pricing, availability, and potential promotions.

While the home is available online, availability may vary between in-store, online, and app purchases. Walmart is currently offering free shipping for this product, with a delivery date as early as Tuesday, October 29. However, stock availability is subject to change, so it’s always a good idea to check back regularly if the item is out of stock.

Who Should Consider Buying Walmart’s Tiny Home?

• First-time buyers: Entering the housing market can be tough, but Walmart’s tiny home offers an affordable alternative to skyrocketing home prices.
• Airbnb hosts: For those interested in generating rental income, a tiny home is a low-maintenance option that can serve as a cozy retreat for travelers.
• Homeowners needing extra space: Whether it’s for guests, storage, or a home office, this tiny home offers additional living space without the hassle of a major home renovation.
• DIY enthusiasts: If you love working with your hands, assembling this home could be an exciting project that adds value to your property.

Additional Considerations

While Walmart’s tiny home is an appealing choice, there are a few additional factors to keep in mind before purchasing. First, although the home is designed to be a cost-effective housing solution, it doesn’t come with flooring, so you’ll need to budget for this separately. Second, because it’s sold as a shed kit, you’ll need to be comfortable with a DIY assembly or hire a contractor to help put it together.

Moreover, while the home can handle wind speeds of up to 90 mph and snow loads of up to 45 lbs per square foot, it’s important to check local zoning laws and building codes to ensure the structure is compliant in your area. This will help avoid any legal complications and ensure that your tiny home is built to last.

Fast Delivery, Lasting Value

One of the best features? Walmart offers delivery in under a week—meaning your tiny home could arrive in just a few days. The current price is listed at $5,947 online, but it’s always a good idea to double-check Walmart’s website for the latest pricing and availability. While shipping is free at the moment, this is subject to change, so act fast if you’re ready to dive into tiny home living.

Ready to make a move? Visit Walmart’s website to see if this tiny home is in stock and to explore delivery options in your area.

Product Specifications:

Best Barns Geneva 12×16 Wood Shed Kit

Over the last three years, capital spending by states saw strong growth, averaging 27.6 per cent. But, how are things looking ahead? A study by the National Stock Exchange (NSE) based on analysis of budgets of 21 states, comprising 95 per cent of GDP, suggests it will considerably slow down in the current financial year ending March 2025.

According to the NSE study, capital spending by states is expected to grow by a “modest” 6.5 per cent to Rs 6.5 lakh crore in 2024-25, which is much slower than the 39.3 per cent growth as per revised estimates for the previous financial year.

The capital-to-revenue expenditure ratio, a measure of expenditure quality, is set to decline to 20.7 per cent for 2024-25, from 21.2 per cent as per revised estimates for 2023-24, the data showed. While Gujarat leads here with a ratio of 36.2 per cent, Punjab has the lowest ratio at 6.2 per cent.

Revenue expenditure is also budgeted to increase by a four-year low of 8.9 per cent to Rs 44.2 lakh crore.

While revenue receipts, comprising over 99 per cent of states’ overall receipts, are expected to grow at a marginally higher 10.6 per cent, non-debt capital receipts are budgeted to decline by 30 per cent, according to NSE.

“The growth in revenue receipts is expected to come from robust expansion in states’ own revenues, tax (+14.5 per cent) and non-tax (+17.9 per cent), together accounting for 59.4 per cent of total receipts for these states in FY25. On the contrary, the overall transfer from the Centre in the form of tax devolution and grants-in-aid are budgeted to increase by a modest 4.5 per cent,” NSE said in the report.

The moderation in overall receipts has weighed on expenditure growth, with growth in both revenue and capital expenditure moderating to single digits in FY25 budgeted estimates.

“While revenue expenditure growth is pegged at 8.9 per cent (versus 17.2 per cent in FY24), committed expenditure growth is budgeted to remain fairly steady 10.2 per cent. Capital expenditure growth, on the other hand, is estimated at a marginally lower 6.5 per cent in FY25, but off a strong 39.3 per cent growth in the previous year. The states’ capital outlay—capital expenditure excluding loans and advances by state governments—is expected to grow at an even lower 4.7 per cent,” according to NSE.

However, there is a significant disparity on spending among states. While, large states such as Gujarat, Rajasthan and Tamil Nadu have budgeted a capex growth between 24-30 per cent, other large states including Bihar, Madhya Pradesh and Maharashtra budgeted a contraction, according to the study.

Due to a slight miss in overall receipts, on the back of lower-than-budgeted non-tax revenues, along with higher-than-budgeted revenue expenditure, the overall deficit for the 21 states studied, surpassed the budget estimates by 30 bps to 3.5 per cent of GSDP (gross state domestic product) last financial year. For FY25, the fiscal deficit is estimated to be lower at 3.2 per cent of GSDP, but still exceeding the 3 per cent recommended by the 15th Finance Commission, NSE noted in the report.