Latest news with #C.S.Vigneshwar
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Business Standard
5 days ago
- Automotive
- Business Standard
EV sales surge in June, but 2W segment trails on H1 performance
India's electric vehicle (EV) market continued its upward trajectory in June 2025, with strong year-on-year growth in both the two-wheeler (2W) and passenger vehicle (PV) segments, according to data released by the Federation of Automobile Dealers Associations (FADA). However, despite the recent momentum, total electric two-wheeler sales for the first half of 2025 remain lower than the previous year due to a weak start. In contrast, the electric PV segment grew 43.5 per cent during the same period. In June, electric passenger vehicle (PV) sales rose 79 per cent year-on-year, reaching 13,178 units, up from 7,323 units in June 2024. Tata Motors led the segment with 4,708 units, followed by MG Motor India, which sold 3,972 units, and Mahindra & Mahindra, which sold 3,029 units. Tata Motors' EV sales in June were up 8.2 per cent compared to May, showing signs of recovery, while on a year-on-year basis, sales growth was flat at 2.4 per cent. Newer entrants like Hyundai also recorded notable growth, with sales rising 712 per cent YoY to 512 units, as it started selling the electric Creta. However, on a month-on-month basis, Hyundai's EV sales fell by 15.5 per cent. In the electric two-wheeler (2W) segment, sales reached 1,05,355 units, a 31.6 per cent increase YoY, driven by strong performances from legacy and new-age OEMs. TVS Motor Company topped the chart with 25,300 units, closely followed by Bajaj Auto, which sold 23,032 units, and Ola Electric, which sold 20,190 units. Notably, Ather Energy sold 14,526 units and Hero MotoCorp sold 7,668 units, both more than doubling their sales compared to last year, reflecting growing consumer acceptance of e-mobility solutions. Ola's sales were down 45.2 per cent year-on-year, and its market share fell from 46 per cent in June 2024 to around 20 per cent in June 2025. ALSO READ: Auto component industry seeks national strategy on critical materials Despite the strong June performance, electric 2W sales for the first half of 2025 (January–June) were down 31.5 per cent YoY, totaling 2,65,611 units compared to 3,87,782 in H1 2024. The decline is attributed to policy-related uncertainty earlier in the year and the high base effect from last year's peak, driven by subsidy wind-downs. In contrast, the electric PV segment grew 43.5 per cent during the same period, with 70,306 units sold compared to 48,998 in H1 2024. C. S. Vigneshwar, President of FADA, stated, 'Electric mobility is gathering unprecedented momentum across all segments, underpinned by the PM eDrive Scheme's mandate to make electric vehicles more accessible and affordable.' In June 2025, electric two-wheelers accounted for 7.3 per cent of total sales, up from 5.8 per cent a year earlier, reflecting rising consumer confidence. Electric passenger vehicle (PV) penetration reached 4.4 per cent, while electric commercial vehicles (CVs) doubled their share to 1.56 per cent. The expansion of charging infrastructure and support for domestic innovation are fueling record EV sales and accelerating India's transition to electric mobility.
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Business Standard
7 days ago
- Automotive
- Business Standard
June auto sales up 5%, PVs rise 2.5% despite rains and tight liquidity
Retail sales of passenger vehicles witnessed a modest 2.5 per cent rise in June and during the first quarter of the financial year, as heavy rains and tight market liquidity weighed on footfall and conversion, said the Federation of Automobile Dealers Associations (FADA) on Monday. Overall passenger vehicle (PV) sales rose from 290,593 units in June 2024 to 297,722 units in June 2025. All the top six players, excluding Hyundai Motor (down 2 per cent) and Tata Motors (down 8 per cent), saw growth in sales. Market leader Maruti Suzuki India registered a marginal rise of 0.5 per cent, Mahindra & Mahindra over 11 per cent, Toyota Kirloskar Motor over 15 per cent, and Kia India around 7 per cent during the month under review. Overall automobile retail sales for June 2025 recorded a healthy 5 per cent year-on-year growth to 2.004 million units, up from 1.91 million in June 2024. Segment-wise, every category closed in the green, with two-wheelers rising 5 per cent, three-wheelers 6 per cent, tractors 9 per cent, and commercial vehicles 7 per cent, alongside 2.5 per cent growth in PVs. 'Last month was better than expected, as we were anticipating slightly lower growth. This may improve further. The positive is that the monsoon has been good, while the US tariff issue and Chinese rare metal issue were major concerns for the industry. As of now, none of the original equipment manufacturers has flagged any supply shortage due to the rare earth crisis,' said C. S. Vigneshwar, president of FADA. Overall automobile retail volume for the first quarter also witnessed a 4.85 per cent rise, with PVs up 2.59 per cent and two-wheelers 5 per cent, alongside three-wheelers rising 12 per cent, commercial vehicles marginally up 1 per cent, construction equipment up 11 per cent, and tractors 6 per cent. 'While two-wheelers showed some early-cycle softness, we remain confident of a robust ramp-up in the coming months as seasonal demand and targeted OEM initiatives take effect,' Vigneshwar added. PV retails slipped 1.49 per cent month-on-month yet delivered a 2.45 per cent year-on-year uplift. 'Heavy rains and tight market liquidity weighed on footfall and conversion, even as elevated incentive schemes and fresh bookings lent selective support. Some dealers indicated that certain PV OEMs have introduced compulsory billing procedures—such as automatic wholesale debits—to meet volume targets; inventory consequently stands at around 55 days. June thus painted a picture of modest but steadfast PV performance amid varied market cues,' he added. Two-wheeler retails dipped 12.48 per cent month-on-month but still notched a 4.73 per cent gain on a year-on-year basis. While festival and marriage-season demand provided a boost, financing constraints and intermittent variant shortages moderated sales. Early monsoon rains and rising electric vehicle penetration also shaped buying patterns. 'Several dealers cited compulsory billing and forced stock lifts—often via auto-debit wholesales—leading to mandated high days of inventory aligned with festival-season targets. Overall, June demonstrated a resilient two-wheeler performance amid mixed market signals,' Vigneshwar said. Commercial vehicle retails declined 2.97 per cent month-on-month while achieving a robust 6.6 per cent year-on-year expansion. Early-month deliveries buoyed volumes before monsoon-induced slowdowns and constrained liquidity dampened enquiries and conversions.
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Business Standard
06-06-2025
- Automotive
- Business Standard
Auto retail sales rise 5% in May; PVs hit hard by border tensions
Automobile retail sales in India posted a modest 5 per cent year-on-year growth in May, led by two-wheeler, three-wheeler, and tractor sales growth triggered by the auspicious marriage season, a strong Rabi harvest, and pre-monsoon demand in rural markets, said monthly data by the Federation of Automobile Dealers Associations (Fada) on Friday. However, passenger vehicle (PV) sales dipped 3 per cent to 302,214 units due to heightened war-related tensions. Border tensions in regions like Jammu & Kashmir, Punjab, Rajasthan, and Gujarat further prompted buyers to delay purchases. Entry-level models were hardest hit, as constrained financing and subdued consumer sentiment compounded the slowdown. During the month under review, the construction equipment segment witnessed a 6.3 per cent dip, and commercial vehicles (CVs) declined by 3.7 per cent. Fada estimates that global supply‐chain headwinds — from rare‐earth constraints in electric vehicle components to ongoing geopolitical tensions — may keep urban consumer sentiment in check in June. The segments that performed well include two-wheelers, which rose 7.3 per cent, three-wheelers with a 6.2 per cent increase, and tractors, which posted a rise of 2.7 per cent. 'In the 2W category, retail volumes fell 2.02 per cent month-on-month but still posted a robust 7.31 per cent year-on-year increase. Dealers attribute this resilience to a higher number of auspicious marriage days, a strong Rabi harvest, and pre-monsoon demand — especially in semi-urban and rural markets. That said, financing constraints in the economy segment capped full upside potential. Looking ahead, stakeholders should continue to monitor liquidity access and model availability to preserve momentum,' said C. S. Vigneshwar, President, Fada. Passenger vehicle retails contracted by 13.6 per cent month-on-month and 3.1 per cent year-on-year, while inventory days — which had hovered around 50 — have edged up to approximately 52–53 days. 'Although bookings remained fairly healthy, retail conversions lagged on margin-money challenges and deferred decisions. OEMs must adopt a cautious, ground-reality-aligned approach to production planning and channel incentives so that dealers are not burdened by rising carrying costs or forced into excessive discounting,' he added. Among the top five players, Maruti Suzuki witnessed a dip of 5 per cent to 1,16,899 units, Hyundai Motor around 16 per cent, and Tata Motors around 13 per cent decline in sales. However, Mahindra & Mahindra, which stormed to the number two place in recent times backed by its new launches, gained by 26 per cent during the month. Commercial vehicle retails declined by 11.25 per cent month-on-month and 3.71 per cent year-on-year amid muted freight cycles, tight liquidity, and adverse geopolitical sentiment. While bus sales offered some relief, passenger carriers and commodity-linked segments (cement, coal) saw sharp de-growth due to delayed financing and softening total industry volume (TIV). Wholesales, however, accelerated as OEMs and dealers built inventory ahead of the June 2025 mandatory air-conditioned driver-cabin regulation. The industry body predicts cautious optimism in its demand outlook for June. 'Monsoon‐driven rural traction and festival pull‐through should sustain 2W activity, yet persistent financing constraints and selective OEM price adjustments may temper incremental gains. PV dealers report elevated inventory days and legacy product portfolios, limiting retail conversions despite localised Rath Yatra uplifts. In the CV segment, inventory churn remains elevated as OEMs and dealers pre‐empt June '25 A/C‐cabin regulations, while freight demand in coal, cement, and mining continues to be muted by liquidity bottlenecks and early rains,' Vigneshwar added.
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Business Standard
05-05-2025
- Automotive
- Business Standard
Auto retail sales rise 3% in April after two months of decline: Fada
Automobile retail sales witnessed a 3 per cent rise to 2.28 million units in April this year, up from 2.22 million units in April 2024. This came on the back of rising demand due to festivals across states, according to a report by the Federation of Automotive Dealers Associations (FADA) released on Monday. All categories, except commercial vehicles (CV), closed in the green, with two-wheelers, three-wheelers, passenger vehicles, and tractors up 2.25 per cent, 24.5 per cent, 1.5 per cent, and 7.5 per cent, respectively. However, CVs saw a 1.05 per cent year-on-year decline following OEM-led price increases against stagnant freight rates and fleet utilisation. This comes after overall automobile retail sales declined for the second consecutive month (0.7 per cent) in March. The fall was attributed to a 2 per cent slide in two-wheeler sales, a 6 per cent drop in three-wheeler sales, and a 6 per cent decline in tractor sales. Dealers indicate that advance purchases in March resulted in elevated carryover stocks, while holiday calendars dampened fresh enquiries and delayed conversions — particularly in the small commercial vehicle (SCV) cargo category, where price and product gaps have weighed heavily. "In addition to the festivals, pause on the tariff war and sharp pullback by stock markets also helped in the recovery of sales in April," said C. S. Vigneshwar, president, FADA. In the PV segment, Maruti Suzuki led the surge with 138,021 units with a 39.4 per cent market share. On the other hand, Mahindra & Mahindra came in second (14 per cent), followed by Tata Motors (13 per cent), and Hyundai Motor (12.5 per cent). 'This reflects a discount-led market and elevated inventories—approximately a 50-day supply—amid cautious consumer sentiment that tempered enquiry-to-sale conversions,' he said. "Sustained SUV demand underpinned volumes even as entry-level customers remained cautious, underscoring the need for OEMs to recalibrate production and reduce stock levels to mitigate deeper discounts and carrying costs at dealerships," he added. The rise in two-wheelers was attributed to buoyant enquiry growth in rural areas post-Rabi harvest, driven by strong crop yields, healthy reservoir levels, and a favourable monsoon outlook, while wedding-season tailwinds sustained rural offtake. FADA expects improved numbers going ahead, as May's agricultural cycle is concluding on a strong note. 'The IMD's forecast of an above-normal southwest monsoon bodes well for rural incomes, farm-sector growth, and downstream demand, while a well-distributed rainy season is critical to containing food inflation. At the same time, Kantar's Rural Barometer and GroupM data signal heightened consumer selectivity in rural India—household spending has outpaced income growth, and inflationary pressures are tempering discretionary purchases,' Vigneshwar said.
Times of Oman
05-05-2025
- Automotive
- Times of Oman
India: FADA reports 3% growth in April 2025 vehicle sales
New Delhi: The Federation of Automobile Dealers Associations (FADA) reported a 3 per cent rise in retail vehicle sales for April 2025, compared to the same month last year. FADA attributed increase in sales across all categories except commercial vehicles, according to its monthly vehicle retail sales data released on Monday. FADA President C. S. Vigneshwar attributed April sales to pull back in market and pause in tariff by US. "With the tariff war paused, stock markets staged a sharp pullback--alleviating investor concerns--and customers thus leveraged Chaitra Navratri, Akshay Tritiya, Bengali New Year, Baisakhi and Vishu to complete purchases, helping April end on a positive note," According to the report, the three-wheeler segment saw the highest growth of nearly 25 per cent compared to April 2024, followed by the tractor segment, which recorded a 7.5 per cent year-on-year increase. On the other hand, commercial vehicles (CV) saw a minor (year-on-year) decline of 1 per cent and a more than 4 per cent month-on-month drop, weighed down by OEM price hikes and flat freight demand. It was the only segment that witnessed a decline for April 2025. On contrary in CV segment "the bus segment exhibited resilience, underpinned by strong school-transport and staff-mobility demand." said FADA release. The two-wheeler segment posted a rise of about 12 per cent, driven by strong rural demand. "Dealers reported buoyant enquiry growth in rural areas post-Rabi harvest, driven by strong crop yields, healthy reservoir levels and a favourable monsoon outlook, while wedding-season tailwinds sustained rural offtake," Vigneshwar said, referring to two-wheeler sales. Passenger vehicle sales saw a modest 1.6 per cent increase, with strong SUV demand offset by sluggish sales in the entry-level segment. FADA says the outlook for May 2025, looks bright as agriculture output is expected to be good. "May's agricultural cycle is concluding on a strong note, underpinned by healthy crop prices and robust mandi procurement," FADA said in the release. It added, "at the same time, Kantar's Rural Barometer and GroupM data signal heightened consumer selectivity in rural India--household spending has outpaced income growth, and inflationary pressures are tempering discretionary purchases."
