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Business Standard
5 days ago
- Automotive
- Business Standard
EV sales rise 28.6% in June; electric PVs, CVs lead growth: Fada
India's electric vehicle (EV) market registered a 28.60 per cent year-on-year increase in total sales in June 2025, according to data shared by the Federation of Automobile Dealers' Associations (Fada). Fada President CS Vigneshwar credited the growth to government schemes, especially the PM e-Drive Scheme, and increased investments in domestic EV innovation. 'The rise in EV penetration across segments is a clear sign that India is embracing clean mobility,' he told news agency PTI. 'Electric three-wheelers now make up over 60 per cent of the segment sales, and electric cars and commercial vehicles are gaining ground.' Vigneshwar added that the expansion of charging infrastructure is also helping build consumer confidence, aligning India's EV ecosystem with the country's climate and energy security goals. e-PVs nearly double, two-wheelers sales up A total of 180,238 EV units were sold during the month, driven by sharp gains in electric passenger vehicles (e-PVs) and continued momentum across two-, three-, and commercial vehicle segments. The electric passenger vehicle segment nearly doubled, with sales rising 79.95 per cent to 13,178 units, compared to 7,323 units in June 2024, Fada data showed. The segment now accounts for 4.4 per cent of total EV sales, up from 2.5 per cent last year, indicating growing consumer trust in electric mobility for personal transport. Electric two-wheeler sales rose 31.69 per cent year-on-year to 1,05,355 units, up from 80,003 units in June 2024. Their share in overall two-wheeler sales also grew to 7.3 per cent, compared to 5.8 per cent a year ago. "Overall, June demonstrated a resilient two-wheeler performance amid mixed market signals,' Vigneshwar commented on June's Fada sales report released on Monday. Three-wheelers hold largest market share Electric three-wheelers retained their lead in EV market share, with 60,559 units sold, marking a 15.79 per cent year-on-year increase. Their share of total EV sales grew to 60.2 per cent, up from 55.4 per cent in June 2024, as their role in last-mile connectivity and urban logistics grows. Meanwhile, the electric commercial vehicle segment, while still small, recorded the highest growth rate, with sales rising 122.5 per cent to 1,146 units, up from 515 units in June 2024. Overall, automobile retail sales in June 2025 crossed two million units, marking a 5 per cent year-over-year increase from 1.91 million units sold in June 2024.
Time of India
6 days ago
- Automotive
- Time of India
Fine rainy spell & capex push help lift vehicle sales in June
New Delhi: Vehicle registrations, a proxy for retail sales, increased by 4.8% to more than 2 million units in June with plentiful monsoon rains, and higher government spending helping support demand for two-wheelers, tractors, and construction equipment. Retail sales of passenger vehicles grew 2.4% last month to 297,722 units, and commercial vehicles reported a 6.6% rise to 73,367 units, showed data collated by lobby group Federation of Automobile Dealers Associations (FADA) from the Vahan portal of the ministry of road, transport & highways (MoRTH). Two-wheeler sales rose by 4.7% to over 1.44 million units last month, while three-wheelers, tractors, and construction equipment recorded increases of 6.7% (100,625 units), 8.7% (77,214 units) and 55% (8,558 units), respectively. FADA president CS Vigneshwar termed auto retails in June as "healthy". As per initial industry estimates, carmakers dispatched fewer vehicles last month-about 320,000 units compared to the year-ago period-to align stocks in the channel. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like She Was The Dream Girl In The 80s, This Is Her Recently Learn More Undo In the two-wheeler segment, while festival and marriage-season demand provided a boost to sales, financing constraints and intermittent variant shortages dampened overall volumes. Early onset of monsoons and rising EV penetration also shaped buying patterns. Live Events Distributors are cautiously optimistic of the momentum picking up in the coming festive period, amid prevailing geopolitical challenges. "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," said Vigneshwar. "Overall, June demonstrated a resilient two-wheeler performance amid mixed market signals." In the passenger vehicle segment too, heavy rains and tight market liquidity weighed on customer footfalls and sales conversion, even as elevated incentive schemes and fresh bookings lent selective support. Inventory in channel is at around 55 days. Meanwhile, early-month deliveries buoyed truck and bus sales before monsoon-induced slowdowns, while liquidity constraints dampened enquiries and conversions. Dealers said there was some adverse impact of new CV taxation and mandatory air-conditioned cabins, both of which increased ownership costs. In the near term, above-normal monsoon rains-forecast at over 106% of the long period average in July, with regional variances-should bolster rural demand even as regions with heavy rainfalls could offer logistical complexities, FADA said. Early Kharif sowing augurs well for farm incomes and two-wheeler intake in rural markets. Robust government spending in the June-August period in road, railway, metro, and green-energy projects will likely underpin the CV and construction equipment segments. However, Vigneshwar said evolving geopolitical tensions and potential spillover from US tariff measures warrant vigilant supply-chain management and could temper consumer sentiment. "Also, challenges in securing rare earth materials have stalled component production, further constraining supply and retail volumes," he said.
Mint
6 days ago
- Automotive
- Mint
Auto dealers concerned about vehicle supplies amid rare earth magnet crisis
Automobile dealers have started ringing the alarm bells about the rare earth magnet crisis affecting the supply of vehicles in the coming months, nearly 100 days after China restricted the export of the critical component. For the first time since April when the rare earth magnet crisis began, the country's largest dealers body, Federation of Automobile Dealers Association (Fada), voiced its concerns over supply of vehicles from automakers in its outlook for the coming months. Fada's concerns about potential supply snags come even though automakers haven't yet reported any production cuts after stocking up on the permanent magnets in March and April. However, if the Chinese curbs don't ease in the coming months, production could yet be disrupted, hurting inventories at dealerships. Fada president C.S. Vigneshwar told Mint that automakers have not yet conveyed the full situation to dealers, which is adding to the uncertainty regarding the situation. 'We have been in touch with the automakers and industry bodies but there has been very little information conveyed about how the situation is evolving. While there is enough stock to meet demand for now, we need to know the supply situation," Vigneshwar said. Rare earth magnets are used in the traction motors of electric vehicles along with other electronic parts of vehicles including the telemetry system, which collects vehicle data on speed, and acceleration etc. In its near-term outlook as part of its monthly release, the dealers' body that has more than 15,000 members highlighted that component production can stall, leading to a reduction in the supply of vehicles in the coming months. 'Challenges in securing rare-earth materials have stalled component production, further constraining supply and retail volumes," the June near-term outlook statement of the dealers' body said. In May, Fada had noted the developments around rare earth magnets but did not foresee any threat to supply of vehicles. Most automakers in the country sell their vehicles through dealerships which are managed by third parties. Companies dispatch their vehicles directly to dealers who then sell them to customers. Any cut in production will end up impacting the dealers, which can increase wait time for customers as availability of vehicle models will be constrained. Experts highlight that any disruption of supplies with dealerships at the current stage can dampen prospects of the industry as festive season is just around the corner. Srihari Mulgund, a partner at EY Parthenon, notes that companies are entering a crucial phase as they begin stocking vehicles ahead of the festive season. "Certainty regarding the supply of vehicles in the coming months will be crucial as the festive season is also coming a bit early. Preparation for the season usually begins by this time," he said. The second half of the calendar year is usually an important time for the automakers as sales pick up around festivals like Ganesh Chaturthi, Diwali and Dusshera, among others. In FY26, carmakers are anticipating a slower growth of about 1-2% after the passenger vehicle market grew by 2% to 4.3 million units in FY25. On the other hand, two-wheeler sales grew 9.1% to 19.6 million units, according to data from the Society of Indian Vehicle Manufacturers (Siam). During this financial year, two wheeler players expect a 5-6% growth in the industry. As per Vigneshwar, the inventory levels are elevated at somewhere around 55 days for passenger vehicles and just over 30 days for two-wheeler vehicles. In May, Bajaj Auto had warned that if the rare earth magnet situation is not resolved, the auto industry will see production cuts from July onwards. Maruti Suzuki chairman R.C. Bhargava also mentioned that the country's largest automaker has rare earth magnet stock till July. 'Stocks are fast depleting. So far, 30 applications have been submitted to China, but none have received final approval. The Chinese government has said that final approvals will take about 45 days," Bajaj Auto executive director Rakesh Sharma said after the release of the company's January-March earnings. The management reiterated the outlook to analysts from Kotak Institutional Equities during a meeting. In a 30 June note, Rishi Vora of Kotak Institutional Equities wrote that launch timelines can start getting impacted soon. 'With rare earth supply expected to tighten from July, production schedules and growth in the EV segment may face disruptions, making material sourcing and supply chain stability essential focus areas for sustaining momentum," Vora wrote after meeting the company's management. 'E-rickshaw launch plans may also get delayed if the situation is not resolved." Mint reported on 7 July that automakers are now rushing to import fully built motors which need rare earth magnets as China continues to throttle the raw material's export. Companies have asked for a cut on import duties to manage the situation and avoid an increase in cost of vehicles.
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Business Standard
6 days ago
- Automotive
- Business Standard
Auto retail sales rise 5% in June; passenger vehicles up 2.5%: Fada
Retail sales of passenger vehicles saw a 2.5 per cent on year rise in June, while the overall automobile sales grew by a healthy 5 per cent against the backdrop of a high base of the last year and amid the ongoing clouds of uncertainties due to the rare earth crisis and US tariffs. 'Last month was better than expected, as we were expecting slightly lower growth. This may grow 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 have raised any supply shortage due to the rare earth crisis,' CS Vigneshwar, president of the Federation of Automobile Dealers Associations (Fada) said on Monday. Vigneshwar also said that evolving geopolitical tensions and potential spillover from the US tariffs measures warrant vigilant supply chain management, and they could temper consumer sentiments. 'Also, challenges in securing rare-earth materials have stalled component production, further constraining supply and retail volumes,' the Fada president cautioned. Meanwhile, the first quarter of the financial year 2026 (Q1FY26) saw a 2.59 per cent growth in the retail sales of passenger vehicles. The overall passenger vehicle sales were seen up from 290,593 units in June 2024 to 297,722 units in June 2025. The top six players including Hyundai Motor (down by 2 per cent) and Tata Motors (down 8 per cent) saw a decline in sales. Market leader Maruti Suzuki India saw 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. Segment-wise, every category closed in the green, with two-wheelers moving up by 5 per cent, three-wheelers by 6 per cent, tractors by 9 per cent, and commercial vehicles by 7 per cent, in addition to 2.5 per cent for passenger vehicles. The overall automobile retail sales for the month of June 2025 recorded a 5 per cent growth on year to 2.004 million, up from 1.91 million in June 2024. PV sales were up 2.59 per cent and two-wheelers at 5 per cent, alongside three-wheelers up by 12 per cent, commercial vehicles by a marginal 1 per cent, construction equipment by 11 per cent, and tractors by 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. But month-on-month (M-o-M) figures were not impressive. PV retail sales in June slipped 1.49 per cent when compared to May. '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 M-o-M. While festival and marriage-season demand provided a boost, financing constraints and intermittent variant shortages moderated sales. Early monsoon rains and rising EV 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 M-o-M while achieving a robust 6.6 per cent Y-o-Y expansion.
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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.
