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Yahoo
7 days ago
- Automotive
- Yahoo
India vehicle market forecast to strengthen in coming months
India's Light Vehicle (LV) wholesale figures for April decreased by 7% month-on-month (MoM) to 405k units, indicative of the expected seasonal decline from March. However, more notably, this marked a 5% year-on-year (YoY) increase. Passenger Vehicle (PV) sales dipped by 9% from the preceding month, yet they exhibited a 5% YoY rise, totaling 346k units. Additionally, Light Commercial Vehicles (LCVs) with a gross vehicle weight of up to 6T reported sales of 59k units — an uptick of 2% MoM and 5% YoY. A resurgence in the stock markets, prompted by a pause in the global tariff conflict, has reinforced consumer confidence. The festivals of Chaitra Navratri, Akshaya Tritiya, Bengali New Year, Baisakhi, and Vishu also played a role, while automakers and dealerships maintained their promotional efforts to encourage purchases. Mirroring the seasonal pattern, retail sales of PVs and LCVs in April declined by 2% MoM to 397k units, compared to 403k units in March and 349k units in February, according to data from the Federation of Automobile Dealers Associations (FADA). Retail sales of PVs remained unchanged compared to the previous month, partly as a result of inflationary pressures that have impacted discretionary income, along with a limited number of new model introductions. Furthermore, retail sales of LCVs saw an 11% MoM decrease, attributable to a slowdown in e-commerce activity and intensified competition from Electric Three-Wheelers. Consequently, PV inventory levels were substantial, with a 50-day supply at the end of April, as reported by FADA. This is consistent with the 50-55 days in March and the 50-52 days in February. From January to April, India's LV wholesales saw a 3% YoY improvement, reaching 1.7 million units. This figure consists of 1.5 million PVs (+4% YoY) and 240k LCVs (-1% YoY). Looking to May, a robust agricultural cycle, along with favorable crop prices, promises a positive impact on the rural economy. Moreover, the Reserve Bank of India's recent bond purchases are expected to infuse excess liquidity into the banking system, FADA notes. This could potentially lead to reduced lending rates and enhanced affordability for auto loans. PV retail sales in May are anticipated to remain stable but subdued, as consumers await new model launches and grapple with high financing costs, according to FADA. Additionally, LCV sales may be affected by a continued slowdown in e-commerce activity and growing competition from Electric Three-Wheelers. Although we have made minor adjustments to our 2025 LV forecast, our projection for the year's LV sales remains at 5 million units, reflecting a 3% YoY increase. Specifically, we have slightly reduced the PV forecast by 3k units to 4.3 million units, which corresponds to a growth rate of 3% YoY. We have also revised the LCV forecast downward by 2% (-14k units) to 729k units (+5% YoY), which were predominantly due to a moderated outlook for Mahindra. Our forecast for subsequent years remains consistent with last month's projections and we maintain our expectation that India's LV sales will increase to 6.8 million units by 2032, comprising 5.9 million PVs and 924k LCVs. This article was first published on GlobalData's dedicated research platform, the . "India vehicle market forecast to strengthen in coming months – GlobalData" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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Business Standard
7 days ago
- Automotive
- Business Standard
Passenger vehicle dispatches dip marginally in May, two-wheelers edge up
Passenger vehicle dispatches were down by 0.8 per cent to 344,656 units Sohini Das Mumbai Passenger vehicle (PV) dispatches declined marginally in May after posting a 4 per cent growth in the previous month, while two-wheeler (2W) dispatches were up by a meagre 2.2 per cent during the month. According to data from the Society of Indian Automobile Manufacturers (SIAM), PV dispatches were down by 0.8 per cent to 344,656 units. Industry watchers said that high dealer inventory has put pressure on dispatches. PV retail sales in May were down by 3.1 per cent year-on-year and 13.6 per cent month-on-month. The Federation of Automobile Dealers Associations (FADA) has said earlier this month that PV inventory day has climbed to 52-53 days. 'Elevated inventory days and subdued consumer sentiment—particularly in entry-level models—compounded by war-related tensions for border-state (J&K, Punjab, Rajasthan, Gujarat) and margin-money challenges; healthy bookings offset by weak retail conversions,' FADA had said. Rajesh Menon, director general of SIAM, said that all vehicle segments posted stable performance in May – PV dispatches at 344,656 units, which is the second highest-ever May sales. Three wheelers were down by 3.3 per cent compared to May last year, and two-wheeler dispatches were up 2.2 per cent. Going forward, the RBI's three repo rate cuts totalling 100 basis points in less than six months, along with a forecast of above-normal monsoons are some of the indicators which should positively impact the auto sector by improving affordability and boosting consumer sentiment in the coming months,' Menon said. Interestingly, the utility vehicle (UV) segment has grown in May – dispatches rising by 7.6 per cent, while passenger car dispatches were down by 12.2 per cent. Two-wheeler performance has turned around – selling 1.65 million units, registering a 2.2 per cent growth. In April the two-wheeler sales had disappointed, dropping by 16.7 per cent to 1.45 million. Menon had said that the two-wheeler segment decline in sales was due to the high base effect of April last year, and it is expected to pick up in the coming months. 'Auto industry smoothly transitioned to the new regulatory regime of 2nd stage of On-Board Diagnostics (OBD) 2 regulation for two and three wheelers from April 2025 onwards, in addition to rolling out E-20 compliant gasoline vehicles across the country from this month,' he added. Within 2W, the motorcycle segment is flat at 1.03 million, while scooter sales have grown by 7.1 per cent. Three-wheeler segment has continued to post a decline in sales for the second consecutive month this fiscal. In April, the 3W segment had fallen by 0.7 per cent, and in May the dispatches had shrunk by 3.1 per cent Y-o-Y.
NDTV
09-06-2025
- Automotive
- NDTV
Electric Passenger Vehicle Retail Sales Contribute 4.1 Per Cent Market Share In May25
India's electric passenger vehicle market continued its upward trajectory in May 2025, demonstrating notable year-on-year growth in retail sales. According to the latest data from the Federation of Automobile Dealers Associations (FADA), electric cars now comprise 4.1 percent of the total passenger vehicle market, an increase from 2.6 percent in May 2024. Below is a detailed overview of how different car manufacturers performed last month. Electric Passenger Vehicle Retail: May 2025 Overview Tata Motors remained the leading company in the EV segment, selling 4,351 units in May 2025. Although this is a slight decrease from 4,436 units sold in April 2025, Tata still maintained its position as the market leader, despite an 18.08 percent drop compared to the same month last year. JSW MG Motor India secured the second spot by selling 3,765 units. The company showed strong performance, recording an 8.75 percent increase over April and a remarkable 149.83 percent rise compared to May 2024. Mahindra & Mahindra reported sales of 2,632 units, reflecting an impressive year-on-year growth of 343.10 percent. However, there was an 11.65 percent decrease compared to sales in April. Hyundai Motor India also saw substantial growth, with 606 electric vehicles (EVs) sold, indicating a remarkable year-on-year increase of 488.35 percent. However, this represents a decline of 10.49 percent from April's figures. Chinese manufacturer BYD India performed strongly, delivering 494 units-an increase of 42.77 percent from April and 179.10 percent year-on-year. BMW India continued to see consistent growth in its luxury EV sector, with sales reaching 174 units in May, marking a 38.10 percent rise month-on-month and a 135.14 percent increase year-on-year. PCA Automobiles India experienced one of the highest month-on-month improvements, selling 123 units in May, a significant jump from 48 units in April, which translates to a 156.25 percent increase. Their year-on-year growth is at 41.38 percent. Mercedes-Benz sold 88 EVs, showing a 10 percent increase over April and a 37.5 percent year-on-year rise. Volvo Auto India experienced a slight downturn, with sales falling to 33 units, down 5.71 percent month-on-month and 21.43 percent year-on-year. Kia India sold 26 EVs, reflecting a 16.13 percent decline from April; however, it still showed a positive year-on-year growth of 18.18 percent. Other electric manufacturers collectively accounted for 12 units sold in the month of May 2025, down from 48 units, demonstrating a significant decline of 75 percent compared to May 2024.
NDTV
09-06-2025
- Automotive
- NDTV
Electric Two-Wheeler Retail Sales Cross 1 Lakh Units in May 2025
The Indian electric two-wheeler market is experiencing strong and promising growth, according to the latest data released by the Federation of Automobile Dealers Associations (FADA) for May 2025. Increase in consumer adoption, infrastructural improvement, and better product availability have resulted in increased sales figures in this segment. In May 2025, sales of electric two-wheelers reached 100,345 units, which is a 9.32 per cent increase from April 2025, when 91,791 units were sold. Compared to May 2024, when 77,330 units were sold, this is a 29.76 per cent growth. The market share for electric two-wheelers now stands at 6.1per cent, compared to 5.4 per cent in April 2025 and 5.0 per cent in May 2024. Below is a detailed overview of how different two-wheeler manufacturers performed last month. Electric Two-Wheeler Vehicle Retail: May 2025 Overview TVS Motor was the top seller, with sales of 24,572 units with a month-over-month (MoM) growth of 24.50per cent and a year-over-year (YoY) increase of 107.10 per cent. Bajaj Auto Ltd followed closely behind, selling 21,812 units and showing a MoM growth of 14.79 per cent and a YoY rise of 135.83 per cent. In contrast, Ola Electric Technologies Pvt Ltd saw a surprising drop in sales, with only 18,501 units sold. This is a 6.13 per cent decrease from the previous month and a significant 50.52 per cent drop from the same time last year when they sold 37,389 units. Ather Energy Ltd also experienced a slight decline, selling 12,856 units, which is a 2.36 per cent drop MoM but a good YoY increase of 108.90 per cent. Hero MotoCorp performed well, selling 7,165 units, which is a MoM rise of 17.02 per cent and an impressive YoY increase of 191.26 per cent. Other mentions include Greaves Electric Mobility and E-Sprinto Green Energy, with E-Sprinto showing a huge MoM growth of 151.97 per cent and an incredible YoY growth of 22,880 per cent. However, PUR Energy saw a MoM decline of 12.35 per cent. On the downside, Kinetic Green Energy and BGauss Auto both had MoM drops of 13.63 per cent and 18.69 per cent, respectively, with BGauss also experiencing a YoY decrease of 8.10 per cent.
India Gazette
09-06-2025
- Business
- India Gazette
India to collaborate with Central Asian countries for exploration of rare earth, critical minerals
New Delhi [India], June 9 (ANI): India and Central Asian countries have expressed interest in joint exploration of rare earth and critical minerals at the recently held India-Central Asia Dialogue. The renewed expression of interest in collaboration in rare earths and critical minerals comes as China has restricted its exports of some key industrial inputs. According to a joint statement by India and Central Asian countries -- Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and, Uzbekistan -they appreciated the outcomes of the first India-Central Asia Rare Earth Forum held in September 2024 in New Delhi, as they called upon the relevant authorities to hold the second India-Central Asia Rare Earth Forum meeting at the earliest convenience. The foreign ministers of these countries, including India, also encouraged the exchange of delegations to explore new areas of cooperation in critical minerals. China produces around 90 per cent of the world's rare earths and only a few alternatives exist. The EV companies of India is already facing heat with China's supply restrictions on the rare earth metals, according to a report by Jefferies. A recent Jefferies report highlighted that several Indian companies are struggling to import magnets from China, which are crucial components in the production of EV motors. The report warned that once the current stock of these magnets runs out, motor production could be severely affected, putting the entire supply chain at risk. The Federation of Automobile Dealers Association (FADA), too, has echoed the sentiment. In its monthly vehicle data released on Friday, the FADA said, 'Global supply-chain headwinds (rare-earth constraints in EV components, geopolitical tensions) may limit urban consumer sentiment and exert cost pressure.' On April 4, China imposed export controls on six heavy rare earth elements (REEs) and rare earth magnets. The country cited reasons such as national security and international obligations such as non-proliferation. Although these curbs do not completely ban auto sector exports, companies must now seek prior government approval before shipping these materials out of China. This adds uncertainty and delay to the supply process. According to a recent Reuters report, India is discussing with various companies to build long-term stockpiles of rare earth magnets. As part of this plan, the Indian government is likely to offer fiscal incentives to promote domestic production of these crucial components. (ANI)
