Latest news with #OBD2
Hindustan Times
13-07-2025
- Automotive
- Hindustan Times
Indian auto sector faces tough Q1 FY26 as costs climb and exports slow: Report
The rare earth magnet crisis is giving the Indian auto industry sleepless nights, as the domestic auto sector is facing a severe disruption owing to the shortage of rare earth elements, which could result in a complete shutdown of production as well. (REUTERS) Notify me India's auto sector is likely to be hit with margin pressure once again during the first quarter of FY26, a recent report by HDFC Securities has stated. The report does not give an optimistic outlook for original equipment manufacturers (OEMs) since a mix of elevated input prices, softer demand, and regulatory changes could dent profitability in the short term. Among the main issues highlighted in the report is the continued increase in prices of major raw materials like steel and platinum group metals—both essential for auto production. These higher input prices are likely to be a significant burden on gross margins, especially in a quarter that usually is characterized by muted seasonal demand. Also Read : Indian auto exports rise sharply as home market remains sluggish in June: Report With volumes anticipated to fall from post-festive season peaks, the effect of operating deleverage—reduced revenue spread over fixed costs—could further reduce EBITDA margins for a number of players in the two-wheeler, passenger vehicle, and commercial vehicle segments. Two-wheelers hit by adverse mix, EV slowdown The prospects for two-wheeler OEMs look especially taut. Weak domestic product mix, lower export contribution, and evaporating EV penetration have systematically eroding earnings potential collectively. In addition to these impacts, a limited price increase, increasing legislative regulations - specifically OBD 2 norms for two wheelers (April 1, 2025) and AC cabins for CVs is a must (June 8, 2025) - will also impact demand elasticity. Ancillary sector faces global headwinds OEMs are not alone in this situation; the auto ancillary industry is also grappling with weaker global demand and uncertainty regarding global tariffs. Tyre makers could have some insulation from this type of demand decline as raw material prices are on the decline; aluminium price reductions would be a positive for the component makers. However, increasing ocean freight and possible supply chain issues create obstacles, and especially for those companies focused on exports. Also Read : Indian auto industry in panic mode over rare earth magnet crisis. Why it matters so much?? Rare Earth magnet shortage adds to long-term risks A potential shortage of rare earth magnets—essential for EV and ICE parts—is creating a further source of anxiety. With China still in charge of world processing thanks to cost and environmental issues, India's alternatives are limited. Local manufacturing or importation from other markets such as Japan are long-term alternatives, but in the near term, OEMs might have no alternative but to acquire fully assembled parts from China. This action would increase expenses, hamper localisation efforts, and impact adherence to the government's Production-Linked Incentive (PLI) scheme. Although India's automobile industry has been very resilient in the past few quarters, the beginning of FY26 could put that to the test. With a mix of increasing costs, regulatory shifts, and global uncertainties at play, the producers might have to rethink their plans to safeguard margins and maintain growth. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 13 Jul 2025, 08:00 am IST
Hindustan Times
17-05-2025
- Automotive
- Hindustan Times
2025 Suzuki Avenis launched at ₹91,400, is now OBD2 compliant
The engine on the Suzuki Avenis is built on Suzuki's SEP (Suzuki Eco Performance) technology. ₹91,400, is now OBD2 compliant data-item-target-url=/auto/two-wheelers/ data-item-story-segment=N/A> Suzuki Avenis will be offered in four colour schemes. Check Offers Suzuki Motorcycle India has launched the 2025 Avenis in the Indian market. It is priced at ₹ 91,400 ex-showroom. The standard variant of the scooter is now OBD-2B compliant. This has been done so that the scooter complies with the latest emission norms of the country. Commenting on the launch, Mr. Deepak Mutreja, Vice President – Sales & Marketing, Suzuki Motorcycle India Pvt. Ltd. said, 'The launch of the OBD-2B compliant Suzuki Avenis Standard Variant reflects our focus on delivering products that meet the latest environmental standards without compromising on style, performance, or convenience. It is a great choice for riders looking for a reliable and stylish scooter." Check out Upcoming Bikes In India. First Published Date: 17 May 2025, 13:33 PM IST NEXT ARTICLE BEGINS
Economic Times
15-05-2025
- Automotive
- Economic Times
SUVs drive April auto sales up 4% as entry-level buyers hold back
Sales of cars, sedans and utility vehicles last month grew by about 4% supported by demand for SUVs which managed to retain traction among more affluent buyers, even as customers at the entry-level stayed away from making purchases dragging down sales of small cars. As per data released by industry body Society of Indian Automobile Manufacturers (SIAM), as many as 348,847 units were dispatched from factories to dealerships in April, which is an increase of 3.9% over 335,629 units sold in the year-ago period. This is the highest-ever sales in absolute volumes recorded for the month of April in the local market. Automakers in India mostly report wholesale dispatches from factories and not retail sales to customers. Sales of three-wheelers in the month under consideration dipped marginally - by 0.7% to 49,441 units. Those of two-wheelers too were in the red dropping by about 17% to 1,458,784 units in April. While sales of motorcycles declined by 22.7% to 871,666 units, those of scooters fell by 5.7% to 548,370 units. Rajesh Menon, Director General, SIAM confirmed, 'Passenger vehicles segment posted its highest ever sales of April in 2025 of 3.49 lakh units, with a growth of 3.9% as compared to April 2024. Three-wheelers de-grew marginally by (-) 0.7% compared to April of previous year, with sales of 0.49 lakh units. The two-wheeler segment de grew by (-) 16.7% in April 2025, as compared to April 2024, with sales of 14.59 lakh units, due to high base effect of April last year, while it is likely to pick up in coming months.' Senior industry executives expect car sales to remain muted and grow by about 2% in the ongoing financial year, albeit on a high base, due to adverse macro-economic factors in the ongoing financial year. 'Without revival of the small car market, growth in the domestic industry will remain muted. To buy a carpriced over Rs 10 lakh, you need to have annual household income of more than Rs 12 lakh. How can the car market get to high growth when 88% of households earn less than $14,000 a year', Maruti Suzuki Chairman R C Bhargava said in a post-earnings call recently, adding that 60-70% of consumers today do not have the option to buy a carbecause of affordability sales, though, are expected to fare better driven by consumer demand in rural areas. Market leader Hero MotoCorp in it's post-results call said it expects two-wheeler sales this fiscal to grow by 6-7% on back of favourable monsoons, strengthening of the rural economy, revision in income tax slabs which are expected to put more money in hands of motorcycle buyers. To be sure, vehicle prices in the segment have risen recently - by about 2% - on account of implementation of OBD2 (onboard diagnostic norms), but industry watchers do not expect much impact of demand because of the price revision on this count. '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', Menon said. Category April 2024 April 2025 % Change PassengerVehicle / 3,35,629/ 3,48,847/ 3.9 Three-wheelers/ 49,774/ 49,441/ -0.7% Two-wheelers/ 17,51,393/ 14,58,784/ -16.7% Domestic sales only Source : Society of Indian Automobile Manufacturers (SIAM)
Time of India
15-05-2025
- Automotive
- Time of India
SUVs drive April auto sales up 4% as entry-level buyers hold back
Sales of cars, sedans and utility vehicles last month grew by about 4% supported by demand for SUVs which managed to retain traction among more affluent buyers, even as customers at the entry-level stayed away from making purchases dragging down sales of small cars. As per data released by industry body Society of Indian Automobile Manufacturers ( SIAM ), as many as 348,847 units were dispatched from factories to dealerships in April, which is an increase of 3.9% over 335,629 units sold in the year-ago period. This is the highest-ever sales in absolute volumes recorded for the month of April in the local market. Automakers in India mostly report wholesale dispatches from factories and not retail sales to customers. Sales of three-wheelers in the month under consideration dipped marginally - by 0.7% to 49,441 units. Those of two-wheelers too were in the red dropping by about 17% to 1,458,784 units in April. While sales of motorcycles declined by 22.7% to 871,666 units, those of scooters fell by 5.7% to 548,370 units. Rajesh Menon, Director General, SIAM confirmed, 'Passenger vehicles segment posted its highest ever sales of April in 2025 of 3.49 lakh units, with a growth of 3.9% as compared to April 2024. Three-wheelers de-grew marginally by (-) 0.7% compared to April of previous year, with sales of 0.49 lakh units. The two-wheeler segment de grew by (-) 16.7% in April 2025, as compared to April 2024, with sales of 14.59 lakh units, due to high base effect of April last year, while it is likely to pick up in coming months.' Senior industry executives expect car sales to remain muted and grow by about 2% in the ongoing financial year, albeit on a high base, due to adverse macro-economic factors in the ongoing financial year. 'Without revival of the small car market, growth in the domestic industry will remain muted. To buy a carpriced over Rs 10 lakh, you need to have annual household income of more than Rs 12 lakh. How can the car market get to high growth when 88% of households earn less than $14,000 a year', Maruti Suzuki Chairman R C Bhargava said in a post-earnings call recently, adding that 60-70% of consumers today do not have the option to buy a carbecause of affordability issues. Two-wheeler sales, though, are expected to fare better driven by consumer demand in rural areas. Market leader Hero MotoCorp in it's post-results call said it expects two-wheeler sales this fiscal to grow by 6-7% on back of favourable monsoons, strengthening of the rural economy, revision in income tax slabs which are expected to put more money in hands of motorcycle buyers. To be sure, vehicle prices in the segment have risen recently - by about 2% - on account of implementation of OBD2 (onboard diagnostic norms), but industry watchers do not expect much impact of demand because of the price revision on this count. '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', Menon said. CategoryApril 2024April 2025% ChangePassengerVehicle / 3,35,629/3,48,847/3.9Three-wheelers/49,774/49,441/-0.7%Two-wheelers/17,51,393/14,58,784/-16.7%Domestic sales only Source : Society of Indian Automobile Manufacturers (SIAM)
Time of India
15-05-2025
- Automotive
- Time of India
SUVs drive April auto sales up 4% as entry-level buyers hold back
Sales of cars, sedans and utility vehicles last month grew by about 4% supported by demand for SUVs which managed to retain traction among more affluent buyers, even as customers at the entry-level stayed away from making purchases dragging down sales of small cars. As per data released by industry body Society of Indian Automobile Manufacturers (SIAM), as many as 348,847 units were dispatched from factories to dealerships in April, which is an increase of 3.9% over 335,629 units sold in the year-ago period. This is the highest-ever sales in absolute volumes recorded for the month of April in the local market. Automakers in India mostly report wholesale dispatches from factories and not retail sales to customers. Sales of three-wheelers in the month under consideration dipped marginally - by 0.7% to 49,441 units. Those of two-wheelers too were in the red dropping by about 17% to 1,458,784 units in April. While sales of motorcycles declined by 22.7% to 871,666 units, those of scooters fell by 5.7% to 548,370 units. Rajesh Menon, Director General, SIAM confirmed, 'Passenger vehicles segment posted its highest ever sales of April in 2025 of 3.49 lakh units, with a growth of 3.9% as compared to April 2024. Three-wheelers de-grew marginally by (-) 0.7% compared to April of previous year, with sales of 0.49 lakh units. The two-wheeler segment de grew by (-) 16.7% in April 2025, as compared to April 2024, with sales of 14.59 lakh units, due to high base effect of April last year, while it is likely to pick up in coming months.' Senior industry executives expect car sales to remain muted and grow by about 2% in the ongoing financial year, albeit on a high base, due to adverse macro-economic factors in the ongoing financial year. 'Without revival of the small car market, growth in the domestic industry will remain muted. To buy a carpriced over Rs 10 lakh, you need to have annual household income of more than Rs 12 lakh. How can the car market get to high growth when 88% of households earn less than $14,000 a year', Maruti Suzuki Chairman R C Bhargava said in a post-earnings call recently, adding that 60-70% of consumers today do not have the option to buy a carbecause of affordability issues. Two-wheeler sales, though, are expected to fare better driven by consumer demand in rural areas. Market leader Hero MotoCorp in it's post-results call said it expects two-wheeler sales this fiscal to grow by 6-7% on back of favourable monsoons, strengthening of the rural economy, revision in income tax slabs which are expected to put more money in hands of motorcycle buyers. To be sure, vehicle prices in the segment have risen recently - by about 2% - on account of implementation of OBD2 (onboard diagnostic norms), but industry watchers do not expect much impact of demand because of the price revision on this count. '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', Menon said. Category April 2024 April 2025 % Change PassengerVehicle / 3,35,629/ 3,48,847/ 3.9 Three-wheelers/ 49,774/ 49,441/ -0.7% Two-wheelers/ 17,51,393/ 14,58,784/ -16.7% Domestic sales only Source : Society of Indian Automobile Manufacturers (SIAM)
