Latest news with #OEMs
Time of India
14 hours ago
- Business
- Time of India
Tractor dispatches to grow 4–7% in FY26 on monsoon boost: ICRA
New Delhi: India's tractor industry is expected to grow at a moderate pace of 4–7 per cent in the current financial year, supported by forecasts of above-normal monsoons and steady rural demand, rating agency ICRA said in its latest outlook. The industry recorded a robust 10.5 per cent year-on-year (YoY) growth in June 2025 and 9.3 per cent during the April–June quarter, reflecting improving sentiment and favourable weather conditions. "Wholesale volumes are estimated to grow at a moderate pace of 4–7 per cent in FY2026. The projected growth is likely to be supported by above-normal monsoons, which are expected to boost agricultural production across key regions," ICRA stated. Factors attributing to the growth In addition to favourable weather, the easing of global commodity prices—especially steel—has offered cost relief to original equipment manufacturers (OEMs). Despite persisting macroeconomic uncertainties, a slowdown in global demand and a correction in Chinese steel prices have helped temper input costs, which is expected to support profit margins for tractor makers. ICRA noted that the financial health of tractor manufacturers remains stable, driven by improving volumes, low leverage, and comfortable liquidity positions. The combination of strong fundamentals and favourable external factors is likely to keep the credit profile of OEMs healthy through the fiscal. Industry players are now expected to continue investing in capacity expansion and technology upgrades, while maintaining fiscal prudence amid cautious optimism in the rural economy.>
News18
17 hours ago
- Business
- News18
Tractor dispatches to see 4-7 pc growth in FY26
Agency: PTI New Delhi, Jul 29 (PTI) Tractor dispatches from companies to dealers are expected to grow at a moderate pace of 4-7 per cent in the current fiscal, as per rating agency Icra. The domestic industry saw volumes grow by 10.5 per cent year-on-year in June this year and 9.3 per cent in the April-June quarter compared with the same period last year. 'Going forward, wholesale volumes are estimated to grow at a moderate pace of 4-7 per cent in FY2026. The projected growth is likely to be supported by above-normal monsoons, which are expected to boost agricultural production across key regions," Icra said in a statement. The rating agency said that despite global macroeconomic headwinds, commodity costs have eased, driven by a slowdown in global demand and a correction in Chinese steel prices. This trend is likely to support margins of original equipment manufacturers (OEMs), it added. As a result, the credit profile of tractor manufacturers is expected to remain healthy, backed by rising volumes, low debt, and adequate cash and liquid investments, Icra said. PTI MSS MSS SHW Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
The Star
2 days ago
- Automotive
- The Star
Vehicle sales forecast to be more subdued for 2H
PETALING JAYA: The automotive industry appears set for a more subdued second half of the year (2H25), on the back of persistent margin pressures, moderating demand and fierce price competition, analysts say. Resilient national marques, particularly Perodua, are expected to provide support for overall volumes amid evolving regulatory and economic landscapes. Hong Leong Investment Bank Research (HLIB Research) upgraded total industry volume (TIV) forecast for this year to 770,000 units from 750,000, citing Perodua's continued sales strength. 'We expect 2H25 TIV to be sustained, supported mainly by Perodua's sales deliveries to clear the current backlog of 100,000 orders and the still healthy new order intake,' HLIB Research noted. Perodua's market share, affordability and localisation initiatives positioned it to weather broader sector challenges, the research house added. HLIB Research projects 345,000 units in sales for national carmakera this year, as order backlogs, while easing to about 120,000 to 130,000 units overall, remained Perodua-heavy. However, it also warned that margins are to come under pressure due to intensifying competition across the market. Kenanga Research maintained a higher TIV forecast of 805,000 units for the year, attributing the optimism to forward-buying interest on the deferment of new excise duty regulations to the end of this year, as well as improved household incomes and continued demand in the affordable segment. 'We expect Perodua to benefit the most, at 44% TIV market share, with the highest localisation rate,' the research house said. That said, a different picture is emerging in the premium-car market, Kenanga Research said. The research house cautioned that rationalisation of fuel subsidies, rising utility costs and shifting consumer priorities may push high-income buyers to either delay purchases or switch to hybrids and electric vehicles (EVs). 'The target customers in the premium segment may hold back from buying new cars, opt for smaller cars or switch to hybrids and EVs,' it said. EV adoption continued to be a focal point for the industry, with all research houses closely monitoring the segment. According to BIMB Research, Malaysia's EV registrations dropped 21% month-on-month (m-o-m) in June to 3,272 units, largely due to normalisation after a string of launches. 'Tesla led the pullback (down 45% m-o-m to 587 units), while BYD remained the top seller with 1,045 units,' the research house said, adding that penetration edged up to just 4.3%, which was well below the government's 20% target by 2030. BIMB Research also flagged affordability concerns and slow infrastructure deployment as part of the slowdown. 'Affordability challenges and aggressive pricing from Chinese original equipment manufacturers (OEMs) continue to pressure margins and sentiment. Elevated borrowing costs and slow EV infrastructure rollouts add to headwinds,' it said. RHB Research offered a more guarded tone, maintaining its TIV projection at 730,000 units, citing diminishing order backlogs and waning post-pandemic demand. 'After three record-breaking years, we do not see any exciting catalysts for auto sales this year to be maintained at the current elevated levels,' it said. The research house pointed to falling loan approval rates, now at 55% year-to-date versus 58% to 63% from 2022 to 2024, and mounting inflationary pressures that may prompt buyers to hold off amid anticipated price cuts. 'The influx of new models, coupled with aggressive price discounting has created a highly competitive environment,' RHB Research said. Looking ahead, regulatory shifts are expected to shape industry dynamics. HLIB Researchy noted that the New Customised Incentive Mechanism (NCM), due by the fourth quarter of this year, would replace the Industrial Linkage Programme and offer a more structured, 'menu-based' incentive framework encouraging localisation, EV development and research and development. 'NCM is being structured to encourage OEMs to expand localisation at the local-vendor level,' the research house said. Meanwhile, the implementation of the revised open market value-based excise duty structure has been deferred for the fourth time, is now set for implementation by January 2026. However, RHB Research said it believes that the 10% to 30% hike in vehicle prices once the new duty structure in implemented is 'unlikely to happen', though pressure on the supply chain remains with only five months left before the policy kicks in. All four research houses maintained a 'neutral' stance on the sector.
Barnama
5 days ago
- Business
- Barnama
Malaysia's Straits Orthopaedics Acquires US Firm Medin Technologies
BUSINESS KUALA LUMPUR, July 25 (Bernama) -- Straits Orthopaedics (Mfg) Sdn Bhd (Straits), a Malaysian-based contract manufacturer specialising in orthopaedic implants and surgical instruments, has acquired Medin Technologies Inc (Medin). In a statement, Straits said the strategic acquisition marked a significant milestone in the company's global expansion efforts and strengthens its ability to offer integrated solutions to original equipment manufacturers (OEMs) worldwide. With over two decades of experience serving the global orthopaedic market, this acquisition positions Straits to deliver a broader and more cohesive range of manufacturing capabilities. Straits Chief Executive Officer, Scott Gareiss said Medin's expertise in design, vertical integration, and quality control complements the company's existing offerings. 'The addition of Medin's case and tray product lines expands our capabilities in supporting joint replacement, trauma, extremities, spine, power equipment, and more,' he added. Medin General Manager, Hans de Waal welcomed the acquisition, noting that the company has been a key player in the orthopaedic market since 1979. 'Joining Straits enables Medin to provide comprehensive solutions across multiple segments as a global contract manufacturing organisation (CMO), including fully kitted instrument sets ready for distribution,' he said. A United States (US)-based manufacturer of sterilisation cases and trays for the orthopaedic sector, Medin operates two manufacturing facilities in Totowa, New Jersey, and Manchester, New Hampshire. Meanwhile, Quadria Capital Partner and Straits Board Director, Ewan Davis said the acquisition is in line with the firm's commitment to enhancing Straits' global footprint and driving greater patient impact.
Time of India
5 days ago
- Business
- Time of India
Govt mandates all rooftop solar inverters under PM scheme to connect to national servers
New Delhi: Rooftop solar inverters installed under the PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY) will be required to mandatorily connect to national servers and use machine-to-machine (M2M) SIM-based communication protocol, the Ministry of New and Renewable Energy (MNRE) has said in a compliance order issued to all stakeholders. The PMSG: MBY scheme targets installation of rooftop solar (RTS) systems in one crore households with a total capacity of 30 gigawatts (GW). The ministry has said integration of such a large number of RTS plants introduces grid stability and cybersecurity challenges , especially due to inverters transmitting data outside India or interacting with third-party servers. 'To ensure secure and reliable data transmission, all inverter communication devices/dongles/data loggers deployed under the scheme shall have Machine-to-Machine (M2M) SIM communication protocol,' MNRE said in the memorandum dated July 21. The ministry added that inverter modules transmitting sensitive data to servers outside India threaten national energy sovereignty and increase the risk of unauthorised control. It further stated that third-party communication could be exploited to manipulate inverter operations, potentially disrupting power generation and grid operations. 'In this regard, multiple rounds of deliberation have been done with major stakeholders to implement a framework to track generation benefits of RTS installations as well as for the centralisation of RTS data on a National Software Platform hosted on servers located in India and managed by MNRE or any other Government Agency,' the ministry said. The MNRE is finalising a vendor-neutral open communication protocol along with security guidelines for data communication to enable real-time monitoring and control of inverters through the National Portal. Integration testing of inverter communication devices will commence from September 1, 2025. 'A separate communication in this regard shall be issued shortly,' the ministry said. Further, all Original Equipment Manufacturers (OEMs) listed for supplying inverters under the scheme 'shall mandatorily connect their inverters directly to National Servers and Software managed by MNRE or any other agency designated by MNRE, with effective from the date to be notified,' it said.
