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Time of India
7 days ago
- Automotive
- Time of India
VinFast tweaks sales plan ahead of its India debut
VinFast has recalibrated its India sales plans ahead of the launch of its electric SUVs scheduled for the upcoming festive season. The Vietnamese company has pared its sales volume target for the first year of launch by a third to 3,000 units, even as it continues to evaluate the method of CKD (completely knocked down) assembly for the V7 and V6 models. The company is also set to delay the launch of these models by a month due to an underdeveloped sales network, according to people aware of the company's plans. Production at VinFast's facility at Thoothukudi in Tamil Nadu-originally scheduled to begin on June 30-has been pushed back to July 30. Consequently, bookings for the VF7 and VF6 models will open in mid-July, with customer deliveries expected by mid-August. An email sent to the company on Tuesday seeking comment remained unanswered till the time of going to press on Sunday. "VinFast's full-fledged plans will unfold only next year when they introduce the VF 3, the company's affordable SUV. This year will mostly be about making an entry and testing the market," said one of the people cited above. The delay is being attributed to a fledgling distribution strategy and lack of network readiness. After the Bharat Mobility Show in January, VinFast appointed dealers for 40 locations. However, a majority of them have since withdrawn their letters of intent (LoIs), citing the company's inconsistent approach to distribution planning, pricing, and product positioning, the people said. As of now, only eight to ten dealers remain, they said. "There was a lot of back and forth. They do not seem to have clarity on how many sales touchpoints to have, what price point to launch the models at, and how many units to sell. We couldn't commit investment with this lack of clarity," said a dealer principal who withdrew the LoI a couple of months ago. "Since the auto show, VinFast hasn't done much on brand activation. Most are unaware of the brand in India," said another dealer who also opted out. Ashish Jain, the executive in charge of network development, seems to have resigned, said some of the people cited earlier. Jain did not respond to ET's message seeking comment and phone calls. VinFast has built a 400-acre integrated EV manufacturing facility with an annual capacity of 50,000 units in Tamil Nadu. At the Bharat Mobility Global Expo 2025, the company showcased a range of models it plans to launch in India, including the VF 3, VF 7, VF 9, and VF e34 SUVs. Electric car adoption in India continues to grow steadily. In May 2025, electric passenger vehicles accounted for 4.1% of the industry car sales, up from 3.5% in April and 2.6% in the same month last year, according to data from the Federation of Automobile Dealers Associations.
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Business Standard
15-06-2025
- Automotive
- Business Standard
Rural sentiment, rate cuts drive 110-125cc motorcycle growth in FY25
Segment grew 12.7% in FY25, outpacing overall motorcycle market; OEMs eye further gains with new launches Anjali Singh Mumbai Listen to This Article India's entry-level motorcycle segment (110–125cc) registered a 12.7 per cent growth in FY25, with sales rising to 3.6 million units, outpacing the 5.1 per cent growth in overall motorcycle sales during the year. The segment's share in total motorcycle volumes increased from 27.4 per cent in FY24 to 29.4 per cent in FY25, reflecting its growing appeal among Indian consumers. Federation of Automobile Dealers Associations (Fada) President C S Vigneshwar attributed this momentum to improving rural sentiment, favourable monsoon expectations, and the Reserve Bank of India's recent 50 basis point rate cut. 'Entry-level buyers are highly sensitive to financing costs.
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Business Standard
12-06-2025
- Automotive
- Business Standard
Car dealers sit on ₹52k cr stock as sales slow, inventories hit record high
Car dealerships in India are facing mounting pressure as unsold vehicle inventory has reached an all-time high of ₹51,000–₹52,000 crore in value terms. This sharp rise comes despite a year-long trend of muted retail demand, according to a report by The Economic Times. The current stock level by volume — estimated at 440,000 units or 34-38 days of inventory — is only slightly below last year's Diwali peak of 40-45 days. However, the sharp increase in vehicle prices and gradual stock build-up has pushed the total value to unprecedented levels. The Federation of Automobile Dealers Associations (FADA) has pegged the inventory even higher, estimating 52-53 days of stock at dealerships. This growing mismatch between wholesale dispatches and retail sales has raised concerns over working capital stress for dealers, many of whom are struggling with stock that remains unsold for extended periods, The Economic Times reported. Retail sales slump despite wholesale push Retail car sales in May stood at 302,214 units — a 3.14 per cent decline compared to the same month last year. The decline in monthly volumes marked the slowest growth in eight months and the lowest monthly figure so far in the current calendar year. Cars have remained in dealer yards for over 50 days on average for nearly 14 consecutive months — more than double the industry norm of 21 days, noted Vigneshwar, a dealer representative, the news report mentioned. Despite concerns raised by dealers, major carmakers such as Hyundai and Maruti Suzuki maintain that their inventory levels remain within acceptable limits. Hyundai Motor India's COO Tarun Garg said the company is maintaining a 'healthy inventory level of four weeks' across its dealership network, similar to the same period last year. High demand, controlled stock levels Partho Banerjee, head of sales and marketing at Maruti Suzuki India, echoed this view, claiming an improvement over last year. 'Our inventory levels are much better than the previous year,' he said during a monthly sales call on June 2, adding that Maruti's inventory stood at around 35 days. Some specific models continue to see strong demand, with waiting lists in place. These include Maruti's Brezza and Ertiga, and Mahindra's Thar, Thar Roxx, and Scorpio-N. Select variants of Toyota's Hyryder and Hycross are also in high demand, with waiting periods ranging from four to ten weeks, according to a note by Nomura.
Time of India
12-06-2025
- Automotive
- Time of India
Off the road, there's a ₹52,000 cr pileup while car sales hit the brakes
Car dealerships across India are staring at unsold inventory worth a record ₹51,000-52,000 crore-the highest ever in value terms-as manufacturers continue to push vehicles into the market despite subdued retail demand for over a year. While the 34-38 days of stock (440,000 units) by volume up to May is still marginally lower than the peak of the 40-45-day pileup ahead of Diwali last year, the total value has hit a high due to the increase in ticket size and a build up over time, according to industry executives. The Federation of Automobile Dealers Associations (FADA) pegs the inventory level even higher-at 52-53 days-raising concerns about rising working capital stress among dealerships and the disconnect between wholesale dispatches and retail offtake. Healthy inventory, say carmakers This translates to a marginal year-on-year growth—marking the slowest pace of growth in eight months and the lowest monthly volume recorded so far this calendar year. Retail sales lagged behind wholesale dispatches. A total of 302,214 cars were retailed in the same month, a decline of 3.14per cent over the same period last year. Underscoring the persistent slowdown in movement of stock at dealerships, cars have been stuck in yards for over 50 days for almost 14 months now, against the norm of 21 days, said Vigneshwar. Most dealers that ET spoke to cited rising inventory as a serious concern. Hyundai and Maruti executives, however, said inventory levels in their channels are healthy. Hyundai Motor India is 'maintaining a healthy inventory level of four weeks' across its dealership network in line with industry norms, said Tarun Garg, its chief operating officer, adding that this was similar to that in the same period last year. Partho Banerjee, head of sales and marketing at Maruti Suzuki India , said the numbers were an improvement over the year ago. 'Our inventory levels are much better than the previous year,' he said during a monthly sales call on June 2. 'It's to the tune of 35 days.' Some models, though, are bucking the trend and have waiting lists. These include variants of Maruti's compact SUV Brezza and people mover Ertiga, as well as Mahindra's Thar, Thar Roxx and Scorpio-N, according to Nomura. Select variants and colours of Toyota Hyryder and Hycross are also on a wait list of four to six weeks, and eight to 10 weeks, respectively. Hyundai's Garg acknowledged that the demand environment in the domestic market continues to be challenging. 'However, we remain optimistic in our strong fundamentals, which enables us to strategically pursue opportunities that can drive both growth and profitability,' he said. Garg expects the recent interest rate cuts by the central bank and income tax relief to support demand sentiment. 'We remain cautiously optimistic in the backdrop of global trade and economic uncertainties,' said Garg. He sees the recent rate reductions, which should lower car loan rates as well, spurring demand. 'Further, the CRR (cash reserve ratio) cut will reduce the inventory cost for our dealers.' Analysts said measures such as the rate cut and reduced income tax levels will start showing results only in the second half of the financial year. 'We expect factors such as lower income taxes and reduced interest rates to support demand, though the improved demand might be evident only by H2 of CY25F,' Kapil Singh of Nomura Global Markets Research said in a note. One potential risk is the impact on production from June due to China's curbs on the export of rare earth magnets, he wrote. Crucial for electric vehicles, magnets are also used in fossil fuel-based cars, as well as the broader industry. Nomura is maintaining its 5per cent year-on-year passenger vehicle industry growth forecast for FY26.
Economic Times
11-06-2025
- Automotive
- Economic Times
Off the road, there's a Rs 52,000-crore pileup while car sales hit the brakes
Healthy inventory, say carmakers Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Mumbai: Car dealerships across India are staring at unsold inventory worth a record Rs 51,000-52,000 crore-the highest ever in value terms-as manufacturers continue to push vehicles into the market despite subdued retail demand for over a the 34-38 days of stock (440,000 units) by volume up to May is still marginally lower than the peak of the 40-45-day pileup ahead of Diwali last year, the total value has hit a high due to the increase in ticket size and a build up over time, according to industry Federation of Automobile Dealers Associations (FADA) pegs the inventory level even higher-at 52-53 days-raising concerns about rising working capital stress among dealerships and the disconnect between wholesale dispatches and retail translates to a marginal year-on-year growth—marking the slowest pace of growth in eight months and the lowest monthly volume recorded so far this calendar year. Retail sales lagged behind wholesale dispatches. A total of 302,214 cars were retailed in the same month, a decline of 3.14% over the same period last the persistent slowdown in movement of stock at dealerships, cars have been stuck in yards for over 50 days for almost 14 months now, against the norm of 21 days, said dealers that ET spoke to cited rising inventory as a serious concern. Hyundai and Maruti executives, however, said inventory levels in their channels are healthy. Hyundai Motor India is 'maintaining a healthy inventory level of four weeks' across its dealership network in line with industry norms, said Tarun Garg, its chief operating officer, adding that this was similar to that in the same period last Banerjee, head of sales and marketing at Maruti Suzuki India , said the numbers were an improvement over the year ago. 'Our inventory levels are much better than the previous year,' he said during a monthly sales call on June 2. 'It's to the tune of 35 days.'Some models, though, are bucking the trend and have waiting lists. These include variants of Maruti's compact SUV Brezza and people mover Ertiga, as well as Mahindra's Thar, Thar Roxx and Scorpio-N, according to Nomura. Select variants and colours of Toyota Hyryder and Hycross are also on a wait list of four to six weeks, and eight to 10 weeks, Garg acknowledged that the demand environment in the domestic market continues to be challenging. 'However, we remain optimistic in our strong fundamentals, which enables us to strategically pursue opportunities that can drive both growth and profitability,' he expects the recent interest rate cuts by the central bank and income tax relief to support demand sentiment. 'We remain cautiously optimistic in the backdrop of global trade and economic uncertainties,' said Garg. He sees the recent rate reductions, which should lower car loan rates as well, spurring demand. 'Further, the CRR (cash reserve ratio) cut will reduce the inventory cost for our dealers.'Analysts said measures such as the rate cut and reduced income tax levels will start showing results only in the second half of the financial year.'We expect factors such as lower income taxes and reduced interest rates to support demand, though the improved demand might be evident only by H2 of CY25F,' Kapil Singh of Nomura Global Markets Research said in a potential risk is the impact on production from June due to China's curbs on the export of rare earth magnets, he wrote. Crucial for electric vehicles, magnets are also used in fossil fuel-based cars, as well as the broader is maintaining its 5% year-on-year passenger vehicle industry growth forecast for FY26.
