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Business Standard
6 days ago
- Automotive
- Business Standard
Landmark Cars stock jumps 6% as B&K Sec initiates coverage, 60% upside seen
Landmark Cars share price: Shares of premium automotive retailer Landmark Cars were in focus on Monday, July 14, 2025, rising as much as 6 per cent to hit an intraday high of ₹539.65 after domestic brokerage B&K Securities initiated coverage on the stock with a bullish outlook, driven by strong growth potential and improving profitability over the next two years. The brokerage initiated coverage on Landmark Cars with a 'Buy' rating and a target price of ₹820 per share, implying a 60 per cent upside from Friday's closing levels. At 3 PM, the stock was trading at ₹531, up 4.5 per cent from its previous day's close of ₹507.85. In comparison, the benchmark NSE Nifty50 was trading lower by 73.55 points or 0.3 per cent at 25,080.3 levels. According to analysts at B& Securities, while Landmark Cars' proforma and reported revenues grew at a compound annual growth rate (CAGR) of 11 per cent and 9 per cent, respectively, from FY23 to FY25, the company's Ebitda, PBT, and PAT declined by 3 per cent, 20 per cent, and 55 per cent, respectively. However, the company's sales growth of 11 per cent was double the Indian passenger vehicle sales CAGR of 5 per cent over FY23 to FY25. During FY25, the older outlets and workshops contributed ₹70 crore to PBT, and the newly opened ones incurred PBT-level losses of ₹40 crore. As these facilities ramp up, they are expected to break even starting Q1FY26, with most turning profitable by the end of FY26, the brokerage said. The company has also tied up with three new brands - Mahindra & Mahindra (M&M), Kia and MG Motors - over the past two years. Landmark Cars is the first multi-brand, multi-location auto dealer operating in the premium and luxury car segment in India with 70 showrooms and 61 workshops as of FY25. "While the after-sales mix for old brands is 17 per cent for the new brands, it is 9 per cent. As the after-sales mix improves for these new brands and new outlets scale up, we expect the margin of the company to improve from 5.5 per cent to 7.5 per cent over FY25-27E," B&K Securities said. Analysts at B&K Securities believe that Landmark Cars remains a highly moated business with pan-India reach, high switching costs for OEMs, and market leadership with many OEMs, including Mercedes Benz, BYD, Jeep, Volkswagen, Honda and MG Motors. While the high capital requirements prevent smaller players from entering this segment, the intricate nature of the business is driving consolidation in the industry.
Business Recorder
7 days ago
- Automotive
- Business Recorder
Hybrid Electric Vehicles in Pakistan: ‘Industry must think seriously about affordability'
As Pakistan unveils its long-awaited New Energy Vehicle (NEV) Policy 2025–30, aimed at reducing emissions and fuel dependence, voices from within the auto industry are calling for a shift in how new technologies are priced and positioned in the market. In a recent interaction with media in Lahore, Syed Asif Ahmed, General Manager Marketing Division at MG Motors, said that while the policy is a step in the right direction, the local Hybrid Electric Vehicle (HEV) market remains largely unaffordable and does not pass on the benefits of technological advancements to the average Pakistani consumer. 'HEVs in Pakistan have become a luxury for a niche market,' Ahmed remarked. 'Despite policy support, the real advantages have not trickled down to car buyers.' He noted that the most expensive HEV SUV in Pakistan, a seven-seater, carries an ex-factory price tag of Rs 16 million, while five-seater variants range from Rs 9.6 to 12 million. 'The industry must think seriously about affordability,' he added, 'and consider shifting toward Plug-in Hybrid Electric Vehicles (PHEVs), which are better suited for urban use and offer real electric range.' Unveiled by the Ministry of Industries, the NEV Policy 2025, 30 introduces official classification for EVs, PHEVs, and hydrogen-powered vehicles as 'New Energy Vehicles', in line with global standards. Ahmed was also critical of how earlier tax incentives were structured, allowing traditional hybrids to be labelled as 'New Energy Vehicles', primarily to benefit large automotive players. 'Unfortunately, these subsidies neither helped the environment nor the people. They only benefited the principal companies and their local partners.' In contrast, PHEVs offer a more meaningful alternative, with pure EV driving capabilities for daily urban commutes and hybrid flexibility for long routes, helping tackle the range anxiety often associated with EVs. MG Motors has taken the lead with the introduction of Pakistan's first locally assembled Plug-in Hybrid SUV, the MG HS PHEV. It features a 16.6kWh lithium-ion battery offering over 52 km of electric-only range, combined with a 1.5L turbocharged engine to deliver 260 HP and 370 Nm of torque, achieving 0–100 km/h in just 7.1 seconds. Priced under Rs 10 million, Ahmed described the MG HS PHEV as 'the best value-for-money vehicle in its class,' offering advanced tech, performance, and fuel economy. Asif informed that MG has sold more than 16,000 vehicles in the Pakistani market so far, out of which approximately 2000 were Plug In Hybrid vehicles (PHEV), as Pakistani customers are realising the true economic benefit of PHEV as it's a perfect urban mobility option for urban consumers. He says, despite the changing trend of converting to PHEV from HEV, Pakistani consumers have just one choice in the shape of MG HS PHEV, although having better technology, but still placed lower than most hybrids in Pakistan. Asif said that MG leads specification leadership in Pakistan. All automakers now follow the global specs MG introduced in MG HS in both CBU & CKD. MG vehicles have crossed approximately 350 million miles since its launch in Pakistan in 2021, and MG HS has successfully tested for Pakistan's fuel, terrain (road), and weather conditions, he added. Asif said the vehicles in Pakistan are still expensive. Globally, hybrid vehicles deliver financial value when their purchase price does not exceed more than 10% of the cost of an equivalent petrol vehicle. However, this benchmark is not practised in the Pakistani market. Here, the price gap between hybrids and their petrol counterparts is significantly wider averaging around 45%. For example, a C SUV hybrid vehicle costs up to Rs 12 million, while similar C SUV conventional petrol cars cost Rs 8.0 million. In Pakistan, the difference in price between hybrid and conventional petrol cars is approximately 4.0 million in the C SUV category. While Pakistan's NEV policy sets a progressive roadmap, industry execution remains key. With more PHEV models expected to enter the market, the question remains will automakers use these incentives to empower consumers, or repeat the hybrid playbook of high margins and minimal environmental gains? 'The potential is enormous,' Ahmed concluded. 'But only if we prioritize real consumer value and environmental impact, over short-term profits.'
Express Tribune
12-07-2025
- Automotive
- Express Tribune
Industry demands shift in hybrid vehicle market
Listen to article As Pakistan unveils its long-awaited New Energy Vehicle (NEV) Policy 2025-30, aimed at reducing emissions and fuel dependence, voices from within the auto industry are calling for a shift in how new technologies are priced and positioned in the market. In a recent interaction with media in Lahore, Syed Asif Ahmed, General Manager Marketing Division at MG Motors, said that while the policy is a step in the right direction, the local Hybrid Electric Vehicle (HEV) market remains largely unaffordable and does not pass on the benefits of technological advancements to the average Pakistani consumer. "HEVs in Pakistan have become a luxury for a niche market," Ahmed remarked. "Despite policy support, the real advantages have not trickled down to car buyers." He noted that the most expensive HEV SUV in Pakistan – a seven-seater – carries an ex-factory price tag of Rs16 million while five-seater variants range from Rs9.6 to Rs12 million. "The industry must think seriously about affordability," he added, "and consider shifting towards Plug-in Hybrid Electric Vehicles (PHEVs), which are better suited for urban use and offer real electric range." Unveiled by the Ministry of Industries, the NEV Policy 2025-30 introduces the official classification for EVs, PHEVs and hydrogen-powered vehicles as "New Energy Vehicles", in line with global standards. Ahmed was also critical of how earlier tax incentives were structured, allowing traditional hybrids to be labelled as NEVs, primarily to benefit large automotive players. "Unfortunately, these subsidies neither helped the environment nor the people. They only benefited the principal companies and their local partners." In contrast, PHEVs offer a more meaningful alternative, with pure EV driving capabilities for daily urban commutes and hybrid flexibility for long routes, helping tackle the range anxiety often associated with EVs. MG Motors has introduced Pakistan's first locally assembled Plug-in Hybrid SUV – the MG HS PHEV. It features a 16.6 kWh lithium-ion battery offering over 52 km of electric-only range, combined with a 1.5L turbocharged engine to deliver 260 HP and 370 Nm of torque, achieving 0-100 km/h in just 7.1 seconds. Priced under Rs10 million, Ahmed described the MG HS PHEV as "the best value-for-money vehicle in its class," offering advanced tech, performance and fuel economy. He informed the media that MG has sold more than 16,000 vehicles in Pakistani market so far out of which approximately 2,000 were PHEVs.
Business Recorder
13-06-2025
- Automotive
- Business Recorder
Budget 2025-26: Pakistan's auto industry seeks clarifications about EVs, hybrid cars
KARACHI: The automotive industry is seeking urgent clarification on recent measures proposed in the federal budget 2025-26 that could significantly impact the electric and hybrid vehicle markets, as conflicting tax rates threaten billions of dollars investments. Speaking to a group of journalists, Syed Asif Ahmed, General Manager of MG Motors Pakistan, highlighted a critical tax disparity that has persisted for years. Hybrid Electric Vehicles (HEVs) currently enjoy a preferential 8.5% GST rate, whereas Fully Electric Vehicles (EVs) face an 18% GST burden. 'This anomaly has existed for many years, giving an unfair advantage to HEVs over EVs,' Ahmed said. He pointed out reports circulating on social media, suggesting the government may increase GST on HEVs from 8.5% to 18%. Budget 2025-26: auto sector faces mixed fortunes amid tariff reforms, carbon tax Ahmed lamented that if the GST were increased to 18%, it could imperil huge investments poured into hybrid vehicle technology, contradicting commitments made under the Automotive Industry Development and Export Policy (AIDEP) 2021-26, which promised no tariff changes until June 2026. 'The Finance Bill remains silent on this critical subject,' Ahmed said, adding that what is needed is for EV GST to be reduced to 8.5% to match the HEV rate, rather than raising taxes on hybrid vehicles. The MG Motors executive also raised concerns about potential abuse of import regulations, claiming that used car importers are exploiting gift, baggage, and transfer of residence schemes for commercial trading purposes, circumventing normal import procedures. He said if commercial importers were allowed to import five-year-old used cars with reduced regulatory duties, it would create more challenges for the local auto assemblers. Copyright Business Recorder, 2025
Business Recorder
13-06-2025
- Automotive
- Business Recorder
Budget 2025-26: Auto industry seeks clarifications about EVs, hybrid cars
KARACHI: The automotive industry is seeking urgent clarification on recent measures proposed in the federal budget 2025-26 that could significantly impact the electric and hybrid vehicle markets, as conflicting tax rates threaten billions of dollars investments. Speaking to a group of journalists, Syed Asif Ahmed, General Manager of MG Motors Pakistan, highlighted a critical tax disparity that has persisted for years. Hybrid Electric Vehicles (HEVs) currently enjoy a preferential 8.5% GST rate, whereas Fully Electric Vehicles (EVs) face an 18% GST burden. 'This anomaly has existed for many years, giving an unfair advantage to HEVs over EVs,' Ahmed said. He pointed out reports circulating on social media, suggesting the government may increase GST on HEVs from 8.5% to 18%. Budget 2025-26: auto sector faces mixed fortunes amid tariff reforms, carbon tax Ahmed lamented that if the GST were increased to 18%, it could imperil huge investments poured into hybrid vehicle technology, contradicting commitments made under the Automotive Industry Development and Export Policy (AIDEP) 2021-26, which promised no tariff changes until June 2026. 'The Finance Bill remains silent on this critical subject,' Ahmed said, adding that what is needed is for EV GST to be reduced to 8.5% to match the HEV rate, rather than raising taxes on hybrid vehicles. The MG Motors executive also raised concerns about potential abuse of import regulations, claiming that used car importers are exploiting gift, baggage, and transfer of residence schemes for commercial trading purposes, circumventing normal import procedures. He said if commercial importers were allowed to import five-year-old used cars with reduced regulatory duties, it would create more challenges for the local auto assemblers. Copyright Business Recorder, 2025
