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Time of India
2 days ago
- Automotive
- Time of India
Stock market update: Nifty Auto index falls 0.37%
NEW DELHI: The Nifty Auto index closed on a negative note on Monday. Shares of Samvardhana Motherson International Ltd.(up 1.54 per cent), Hero MotoCorp Ltd .(up 1.43 per cent), Bosch Ltd.(up 1.08 per cent), TVS Motor Company Ltd.(up 0.89 per cent) and Ashok Leyland Ltd .(up 0.66 per cent) ended the day as top gainers in the pack. Explore courses from Top Institutes in Please select course: Select a Course Category Digital Marketing Public Policy Data Science Others Data Science Cybersecurity PGDM MCA MBA CXO Healthcare Technology Product Management healthcare Leadership Finance Project Management Management Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details On the other hand, Tube Investments of India Ltd .(down 2.34 per cent), Bharat Forge Ltd.(down 1.29 per cent), Mahindra & Mahindra Ltd .(down 1.13 per cent), MRF Ltd.(down 0.95 per cent) and Eicher Motors Ltd .(down 0.87 per cent) finished as the top losers of the day. The Nifty Auto index closed 0.37 per cent down at 23693.0. Benchmark NSE Nifty50 index ended down 156.1 points at 24680.9, while the BSE Sensex stood down 572.07 points at 80891.02. Live Events Among the 50 stocks in the Nifty index, 16 ended in the green, while 34 closed in the red. Shares of Vodafone Idea , Ola Electric Mobilit , PC Jeweller, Indian Energy Exchg and Suzlon Energy were among the most traded shares on the NSE. Shares of Vimta Labs, Sudarshan Chemical , Times Guaranty , CarTrade Tech and UPL (PP)hit their fresh 52-week highs in today's trade, while Stampede Cap, Future Consumer , Supreme Holdings, Supreme Engineering and Reliance Comm hit their fresh 52-week lows.
Mint
20-07-2025
- Automotive
- Mint
Hero MotoCorp gets approval for PLI-Auto scheme
New Delhi: Hero MotoCorp Ltd, India's biggest two-wheeler maker by sales, has received approval for its electric scooter to be a part of the ₹ 25,938 crore production-linked incentive scheme for automobiles and auto parts (PLI-Auto), according to the scheme's portal. The approval from testing agencies came on 8 July for the VIDA V2 Pro model, which allows the company to claim incentives from the ministry of heavy industries. The approval makes Hero MotoCorp the fourth electric two-wheeler maker in the PLI roster, after Ola Electric Mobility Ltd, TVS Motor Co. Ltd, and Bajaj Auto Ltd. Also read | Govt names Toyota Kirloskar as first component maker to get auto PLIThe PLI-Auto scheme has been integral to boost the margins of electric vehicle makers in the country. Vivek Anand, chief financial officer, Hero MotoCorp Ltd, said during the company's earnings call on 14 May that its efforts to reduce Bill of Materials (BOM) costs through localization, along with the PLI benefit that the company will receive, will make the company's operations profitable. He said then that the company is in the process of applying for PLI sops for multiple models, and was expecting an approval by July. Hero MotoCorp is the 17th company to get its models approved under the scheme, and has initiated the process to get other models approved. Hero MotoCorp recorded a 175% rise in sales of its electric Vida scooters to reach 48,674 units during the year, Mint reported in May, citing data from the Federation of Automobile Dealers Associations (FADA). Also read | Electric journey helps Tata Motors, Mahindra become first to win auto PLIThe company had a 4.2% market share among electric two-wheelers in FY25, according to the Vahan portal, the central registry of vehicles. Disbursals under the PLI-Auto scheme have been low, with about ₹ 322 crore doled out to approved companies in FY25. While 16 companies had been approved for PLIs before Hero MotoCorp, only four had received these payouts till FY25. Tata Motors and Mahindra & Mahindra were granted about ₹ 246 crore in January 2025, followed by ₹ 73.74 crore to Ola Electric in March. The ministry of heavy industries said on 26 March that Toyota Kirloskar Auto Parts had also received disbursals, but did not disclose the amount. An uptick is expected in FY26, union heavy industries minister H.D. Kumaraswamy told Mint in June. The minister had said the government is expecting PLI claims worth about ₹ 2,000 crore from nine companies in FY26. Under the marquee scheme to support the production of zero-emission vehicles, manufacturers receive 13-18% of their incremental sales as kickbacks. Manufacturers have to procure at least 50% of the components locally. While key manufacturing components such as cells for electric vehicles have to be imported, others can be sourced from Indian auto components makers. Also read | About 12 companies including BHEL and Kia Motors to be excluded from Auto PLI Manufacturers also have to meet investment targets under the scheme, or face removal, according to PLI-Auto guidelines. Incumbent vehicle makers must have annual revenues of at least ₹ 10,000 crore and invest ₹ 3,000 crore in fixed assets. For component makers, the thresholds are ₹ 500 crore in revenue and ₹ 150 crore in investment. New entrants from outside the auto sector need a global net worth of ₹ 1,000 crore and must commit investment over five years. The continued addition to the roster of PLI-approved auto products comes as sales of electric vehicles have risen about 17% in FY25 to over 1.9 million, compared with about 1.6 million in FY24.
Business Standard
15-07-2025
- Automotive
- Business Standard
Quick Wrap: Nifty Auto Index rises 1.50%
Nifty Auto index closed up 1.50% at 23905.25 today. The index is up 2.00% over last one month. Among the constituents, Hero MotoCorp Ltd gained 4.76%, TVS Motor Company Ltd rose 2.95% and Bajaj Auto Ltd added 2.76%. The Nifty Auto index is down 5.00% over last one year compared to the 2.83% surge in benchmark Nifty 50 index. In other indices, Nifty Pharma index added 1.14% and Nifty PSU Bank index gained 0.87% on the day. In broad markets, the Nifty 50 increased 0.45% to close at 25195.8 while the SENSEX added 0.39% to close at 82570.91 today.
Mint
03-07-2025
- Automotive
- Mint
All about that BaaS: Can a new business model help Hero MotoCorp turn the EV tide?
Next Story Ashish Agrawal The company recently launched its first electric two-wheeler under the battery-as-a-service model, but intense competition and persistent losses in the segment mean it could take years just to break even. The E2W business remains challenging for Hero Motocorp. Photo: Bloomberg Gift this article Hero MotoCorp Ltd's launch of its first electric two-wheeler (E2W) under the battery-as-a-service (BaaS) model will significantly reduce the entry barrier for the segment and perhaps help expand the market. The BaaS model offers a substantial drop in the purchase cost and variable charges based on the customer's actual usage. Yet, with the intense competition and persistent losses in the E2W segment, it could take the company a few years just to break even. Hero MotoCorp Ltd's launch of its first electric two-wheeler (E2W) under the battery-as-a-service (BaaS) model will significantly reduce the entry barrier for the segment and perhaps help expand the market. The BaaS model offers a substantial drop in the purchase cost and variable charges based on the customer's actual usage. Yet, with the intense competition and persistent losses in the E2W segment, it could take the company a few years just to break even. At ₹ 59,490 (ex-showroom), the base model Vida VX2 Go is 40% cheaper than the same model without BaaS, along with running charges of ₹ 0.96 per km. The strategy has greater significance for Hero because of its higher share in the entry-level market. 'We see the VX2 as a strategic move by Hero to build scale in India's mass 2W electric vehicle segment by blending affordability, functional utility, and Hero's expanding charging network (3,600+ points)," said Nomura Global Markets Research in a 1 July report. Nomura's analysts, however, said that hadn't yet seen general consumers in India warming up to BaaS, adding: 'Hence, we will keenly observe the response as this product holds promise." The company could be taking cues from the traction generated by the first electric four-wheeler based on BaaS model launched in September, which achieved sales of 20,000 units in six months. Margin challenges Yet, the E2W business remains challenging. The company's E2W Ebitda margin in FY25 was negative 95%, albeit much better than FY24's negative 155% margin, management said in the March-quarter earnings call. It needs a monthly run rate of 25,000-30,000 units to break even, against the current average of 7,000-8,000. The company aims to double this by March 2026, and increase its market share to 12-15% from 7% in March 2025. Hero has also filed for production-linked incentives (PLI) for Vida V2 Pro and expects to receive approval this month. Meanwhile, Hero recorded 10% growth in overall sales to 554,000 units in June. This marks a smart reversal from the 21% drop seen in the first two months of FY26. The revival in June was led by exports, which rose 140%, though they account for just about 5% of the total. Yet, June quarter (Q1FY26) volumes declined by 11% to 1.37 million units, dragged down by the performance in the first two months. While the two-wheeler market remains strong thanks to strong rural demand, Hero continues to lose market share. In the eight quarters to Q4FY25, its market share declined by about 910 basis points (bps) to 41.5% in motorcycles and 620 bps to 28% in two-wheelers. However, volumes may increase with the 100 bps reduction in the repo rate, which reduces the cost of financing. Note that about 63% of FY25 sales were through financing. Rich valuation despite correction To be sure, the company's declining market share has weighed in investor sentiment. Hero's shares are down about 23% over the past year vis-à-vis a drop of 4% in the Nifty Auto index. Despite the correction, the stock's valuation of 17 times estimated FY26 earnings, as per Bloomberg consensus, is higher than the long-term average of about 15. Market-share gains are crucial for the stock's trajectory. However, subdued performance in the 110-cc motorcycle segment, where Hero has a strong presence, and intense competition in the 125-cc motorcycles segment could curtail the company's market-share gains in the coming years. Also, the launches of premium models are expected to increase its market share by only 200-300 bps (its current share is 2%) with weak brand positioning versus the competition, according to a Kotak Institutional Equities report. Topics You May Be Interested In Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Business Standard
24-06-2025
- Automotive
- Business Standard
Regaining share key to more upside in automobile major Hero MotoCorp
For HMCL, and the two-wheeler sector, there are multiple triggers, which should help it to post a mid-to-high single-digit growth for 2025-26 (FY26) Ram Prasad Sahu New Delhi Listen to This Article Hero MotoCorp Ltd (HMCL) has been the best-performing auto stock over the last three months, gaining over 17 per cent during this period. Multiple tailwinds, especially on the rural front, are expected to boost its volumes. In addition to the demand drivers, new launches too should help drive growth both in the commuter and premium motorcycle categories. However, given competitive pressures, the company has been losing share to competitors in the mid- to premium segments. In addition to this, what could put near-term pressure on HMCL's sales are the new norms related to anti-lock braking system (ABS) to be implemented
