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<ul><li><keyword id="42747" type="General" weightage="100" keywordseo="tata-motors" source="Orion">Tata Motors</keyword> to increase prices of its CV segment.</li><li>The percentage of the hike will depend upon the individual model and variant.</li><li>Reportedly, there can be a 1.5 to 2.5 percent of hike in prices.</li></ul>Come July 1, commercial vehicles of <keyword id="130549" type="General" weightage="50" keywordseo="tata-motors-ltd" source="Orion">Tata Motors Ltd</keyword> will turn costly as the company announced a price hike on Tuesday. According to <keyword id="8555" type="General" weightage="20" keywordseo="Tata" source="Orion">Tata</keyword> Motors from July 1, onwards there will be a price hike of 1.5-2.5 per cent of its commercial vehicles. The percentage of hike will depend upon the individual model and variant. "While the company takes extensive measures to absorb a significant portion of the increased input costs, at various levels of manufacturing, the steep rise in overall input costs makes it imperative to pass on a residual proportion via a minimised price hike," the company said. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/twitter-in-india-bans-accounts-of-pakistan-embassies-in-un-iran-egypt-and-turkey/articleshow/92515791.cms">Twitter India bans accounts of Pakistan embassies in UN, Iran, Egypt and Turkey</a> <a href="https://www.businessinsider.in/business/auto/news/mahindra-scorpio-test-drive-opens-on-j[%E2%80%A6]arts-on-july-30-check-out-features/slidelist/92513434.cms">Mahindra Scorpio test Drive opens on July 5, and booking starts on July 30 — Check out features</a>

Tata Motors to increase price of its commercial vehicle segment from July 1

<ul><li>While overall retail auto sales grew by double digits however when compared to the pre-pandemic month of September 2019, sales were down 4%.</li><li>The two-wheeler segment is yet to show signs of full recovery due to rising prices of vehicles and <keyword id="15161814" type="General" weightage="20" keywordseo="pricier-vehicle-loans" source="Orion">pricier vehicle loans</keyword> post RBI rate hike.</li><li>FADA believes that while the <keyword id="7744922" type="General" weightage="20" keywordseo="auto-retail-sales" source="Orion">auto retail sales</keyword> will be better than the last two festive seasons, it will still remain below pre-Covid levels of October 2019.</li><li>Overall, FADA continues to remain optimistic for the month of October due to the ongoing festive season.</li></ul>Retail auto sales in September rose 11% compared to a year ago thanks to an early start to the festive season, monthly sales data from the <keyword id="1692051" type="General" weightage="20" keywordseo="Federation-of-Automobile-Dealers-Associations" source="Orion">Federation of Automobile Dealers Associations</keyword> (FADA) showed. However, when compared to the pre-pandemic month of September 2019, sales were down 4%, FADA said. “Auto retail for the month of September’22 saw an overall growth of 11%. September witnessed both, the inauspicious period of Shradh (a.k.a Pitru Paksha) from 10-25th September and festive period, which began with Navratri on 26th September. Due to this, the full potential for the month was not realised as it should have been,” FADA President Manish Raj Singhania said. Two-wheeler segment remains a drag; dealers anticipate best festive season this year The two-wheeler segment is yet to show signs of full recovery. Sales for September fell as much as 14% from pre-Covid times despite a growth of 9% from September 2021. Rising prices of vehicles due to increase in input costs along with pricier vehicle loans post RBI rate hike have impacted sales. “Due to increased input costs, 2W companies raised prices by 5 times in the past one year. Apart from this, RBI’s fight with inflation saw rate hikes, which continued to make vehicle loans expensive. While India is showing revival signs, Bharat is yet to perform. 2W, especially entry- level vehicles, are finding extremely less buyers thus dragging the entire segment,” said the FADA statement. Going ahead, due to the festive season there is demand build up for premium bikes. “The 2-W space also witnessed healthy double-digit growth led by innovative offerings in (the) premium segment by Royal Enfield brand at Eicher Motors and channel inventory build-up before the festive season by the industry leader,” FADA said. FADA believes that while the auto retail sales will be better than the last two festive seasons, it will still remain below pre-Covid levels of October 2019. “The enquiry level in (the) 2W segment is showing positive movement. If this segment, especially entry-level 2W, also performs well improving its growth to low double digits, overall auto retail will see higher growth compared to last 2 festivals but may still lag pre-Covid numbers of October’19,” said FADA in a statement. The passenger vehicles segment continues to show extremely healthy figures by growing 44% since pre-Covid times. Sales of three-wheelers, tractors and commercial vehicles also rose – registering an increase of almost 6%, 37% and 17% respectively from September 2019. All India vehicle retail data for September’22 <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Category </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sep 2022 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change on year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change since pre Covid (Sep 2019) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Two wheeler </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10,15,702 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.02% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-14.05% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Three wheeler </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">63,915 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">71.94% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.53% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">PV </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,60,556 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.17% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">44.47% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tractor </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">52,595 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.49% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">37.06% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CV </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">71,233 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">18.87% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">16.89% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">LCV </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">43,076 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14.76% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12.24% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">MCV </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4,847 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.55% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">16.43% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCV </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">21,318 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">39.60% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">23.11% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14,64,001 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.94% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.80% </td></tr></tbody></table> “Better availability due to easing semiconductor supply, new launches and feature-rich products kept customers glued to dealerships for getting their favourite vehicles during the auspicious period. The waiting period continues to range between 3 months to 24 months especially for SUVs and compact SUVs, which have become the absolute choice for today’s customers,” said the FADA statement. Besides, dealers anticipate this to be the best festive in a decade for the PV segment as FADA expects even higher sales in October. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/policy/economy/news/slow-recovery-of-low-income-households-slowed-down-indias-economic-recovery-kotak-report/articleshow/94639413.cms">Slow recovery of low income households slowed down India's economic recovery: Kotak report</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/reliance-jio-and-airtel-5g-prices-may-be-affordable-for-now-but-expected-to-increase-after-wider-rollout/articleshow/94636173.cms">Reliance Jio and Airtel 5G prices may be affordable for now but expected to increase after wider rollout</a>

Retail auto sales grow 11% in September, but still below pre-Covid levels, says FADA

<ul><li>Tata Motors stock is the top gainer on the 50-stock Nifty50 index after its March-quarter update that showed recovery in the reeling <keyword id="45218" type="General" weightage="20" keywordseo="jlr" source="Orion">JLR</keyword> volumes.</li><li>Analysts have lauded the automaker’s improvement in sales, highlighting better chip supply and better-than-expected booking run rate for JLR.</li><li>Global sales for <keyword id="6354362" type="General" weightage="20" keywordseo="jaguar-land-rover" source="Orion">Jaguar Land Rover</keyword> (JLR) stood at 1.07 lakh vehicles for the March quarter, with Jaguars accounting for 15,499 units and Land Rovers for 91,887 units.</li></ul>Shares of Tata Motors rose on Monday after the automaker’s global wholesale vehicle sales recorded an 8% on-year growth for the March quarter despite high inflation and rising borrowing costs, topping analysts’ expectations. Global sales for Jaguar Land Rover (JLR) stood at 1.07 lakh vehicles for the March quarter, with Jaguars accounting for 15,499 units and Land Rovers for 91,887 units. Shares of Tata Motors were the top gainers on the 50-stock Nifty50 index after its March quarter update that showed recovery in the reeling JLR volumes. Analysts have lauded the automaker’s improvement in sales highlighting better chip supply and a better-than-expected booking run rate for JLR. “All three businesses of Tata Motors are in a recovery mode. While the India CV (commercial vehicles) business will see a cyclical recovery, the India PV (passenger vehicles) business is seeing a structural recovery. JLR is also witnessing a cyclical recovery, supported by a favourable product mix,” said analysts at Motilal Oswal. “However, supply-side issues will delay the recovery process. While there will be no near-term catalysts from the JLR business, the recovery in the India business (~50% of the sum of the parts (SoTP) will continue,” added the report. Adding to the investor cheer, in March, the automaker sold 46,847 cars, overtaking rival Hyundai in the domestic passenger vehicle sales segment. In comparison, Hyundai sold 45,703 cars during the same month. Tata Motors registered a 27% on-year increase in passenger vehicles sales for March, far ahead of Hyundai, which registered a growth of 4.4%. The former increased its market share to 13.39% in FY23 while the latter’s market share fell to 14.51%. “We expect the demand for personal vehicles to remain robust with the trend of electrification further strengthening,” said Shailesh Chandra, MD, Tata Motors Passenger Vehicles. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage house </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rating </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nomura </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹508 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CLSA </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹544 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JP Morgan </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Neutral </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹438 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BoFA </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹475 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Goldman Sachs </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹550 </td></tr></tbody></table> Goldman Sachs has upgraded its rating on Tata Motors to Buy while raising the target price to ₹550 from ₹480 to factor in an improving volume outlook at JLR. It has also raised its FY24-25 EBITDA estimates by 15%/16% while saying that the market was underestimating JLR’s EBIT margin potential. EBITDA stands for earnings before interest, taxes, depreciation and amortisation while EBIT is earnings before interest and taxes. Tata Motors stock flies high with 17% gains in 2023 so far Besides, the stock has been on an uptrend this year because of its growing auto sales – shares of Tata Motors have surged 17% in 2023 so far. The automaker has been in a recovery mode since the December quarter when it <a href="https://www.businessinsider.in/business/corporates/news/tata-motors-in-top-gear-reports-net-profit-of-2958-crore-in-q3-its-first-after-seven-quarters/articleshow/97319081.cms">reported a profit for the first time </a>after seven quarters of losses. Adding to it, the auto industry has recently hiked prices of vehicles from the start of the new fiscal year. Typically, automakers hike prices of vehicles effective from April 1. This time, the price hikes are led by high inflation and regulatory requirements. Along with Tata Motors other automakers including Maruti Suzuki, Honda and Hero MotoCorp have increased prices of their vehicles to comply with new regulatory norms required for a cleaner environment. The Indian auto industry has geared up to meet the stricter emission norms under phase two of the BSVI standards. From April 1, vehicles will need to have an onboard diagnostic (OBD2) device to monitor the real-time driving emission levels to meet the stricter emission norms. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/telecom-companies-q4-revenue-likely-to-moderate-due-to-lack-of-significant-tariff-hikes/articleshow/99368163.cms">Telecom companies’ Q4 revenue likely to moderate due to lack of significant tariff hikes</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/tata-motors-overtakes-hyundai-as-indias-second-largest-car-maker-in-march/slidelist/99300135.cms">Tata Motors overtakes Hyundai as India's second largest car maker in March</a>

Tata Motors rallies nearly 8% on strong JLR sales in March quarter; Analysts bullish with an eye on margins

<ul><li>For the first time in this fiscal year, registration of vehicles across India in December recorded a growth of 11% year-on-year but industry insiders fear the trend may not sustain.</li><li>According to the Federation of Automobile Dealers Associations of India (FADA), Car sales picked up in December but only because buyers wanted to avoid the price hikes scheduled in the following month</li><li>The dealers’ lobby hopes that the upcoming budget will incentivise buyers to return to the showroom. </li><li><a href="https://www.businessinsider.in/budget">Check out the latest stories on Budget Insider</a>. </li></ul>The 11% growth in vehicle registrations in December 2020 was welcome, but the Federation of Automobile Dealers Associations of India (FADA) isn’t sure if this trend will last. Coming out of two very difficult years, the lobby of car dealers in India is hoping for incentives and support from Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> in the upcoming <keyword id="8420431" type="UNKNOWN" weightage="20" keywordseo="budget-2021">Budget 2021</keyword> There is a long list of asks from the auto industry, including the dealers ⁠— from income tax relief to leave more disposable income in the hands of consumers to cuts in goods and services tax on automobiles and an increase in rural spending, infrastructure activity that will increase the need for trucks. The fear is Sitharaman has limited resources to spend. According to the latest data from the Federation of Automobile Dealers Associations of India (FADA), vehicle registrations in December rose by 11%, with passenger vehicles clocking in a 24% growth, all thanks to a good crop season, new launches, year-end offers, and pre-buying ahead of the price hikes. <div type="image" title="FADA sales (2)" msid="80213297" hostid="261"></div> Production incentives are in place but the demand for cars is still weak As a part of its Atmanirbhar Bharat (self-reliant India) scheme, the government has announced the production-linked incentive (PLI) scheme for ten sectors, including automobiles, to boost the inhouse manufacturing. The scheme has allocated nearly ₹57,000 crore for the auto industry and another ₹18,100 crore to boost the production of advanced chemistry cell batteries (Lithium-ion batteries). However, the eligibility details are still to be finalised. While this may incentivise and reduce the cost of production over the long term, car makers still need buyers to return to the showroom. The industry and the dealers have also sought a cut in Goods and Services Tax, a demand that has found support with the <a href="https://www.businessinsider.in/business/auto/news/indias-auto-stocks-cheer-after-parliamentary-panel-agrees-that-they-need-more-stimulus-and-the-dealers-need-loans-with-less-collateral/articleshow/79760354.cms">Parliamentary Standing Committee</a>. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Segment </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Current Taxes </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bikes under 350cc </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">18% GST </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bikes above 350cc </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3% cess + 18% GST </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Small Cars &amp; Mid-SizeCars </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">18% GST + cess </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Luxury Cars &amp; SUV’s </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">28% GST + cess </td></tr></tbody></table> The panel chaired by Telangana Rashtra Samithi (TRS) lawmaker Keshav Rao, also said that there should be a levy on used cars. That would be a setback for many startups like Cars24 and CarDekho that have seen <a href="https://www.businessinsider.in/business/startups/news/cars24-is-indias-latest-unicorn-as-it-raises-200-million-from-dst-global-and-existing-investors/articleshow/79388631.cms">a sharp spike in used car sales</a> in recent months. Car sales have been slow, truck sales even slower The automobile industry is hoping that Budget 2021 will look to entice people outside the big cities to buy cars, and kickstart enough industrial activity to increase the demand for trucks and other commercial vehicles (CV). “The government’s approval for ₹12,000 crore infrastructure projects will see its positive effects in the CV space, though full recovery is only expected in all the segments of the industry from April’21 onwards,” FADA’s latest statement said. However, as Subrata Ray, the senior group vice president at ICRA, told Business Insider there is “limited space available” to increase spending in rural areas. Scrappage policy announcement It was 2019 when India had announced that it will force cars older than 20 years and trucks older than 15 years to be retired. This is called the scrappage policy. However, that policy is still to see the light of the day. The industry hopes that Budget 2021 will unveil the rollout plan for scrappage and that, in turn, will push the sale of new vehicles. “This is the time to implement it. It will lead to the scrapping of 6 lakh commercial vehicles over the next two-three years and generate demand,” said CRISIL’s, Chief Economist, DK Joshi in a <a href="https://www.businesstoday.in/magazine/cover-story/the-growth-recipe-pre-budget-roundtable/story/427155.html">conversation with Business Today</a>. This would be a good way to avoid any financial burden on the government as well as reduce emissions. <div type="image" title="Scrap Policy-2" msid="80233440" hostid="261"></div> Protection for domestic car makers In order to save the home-grown electric vehicle companies from exploitation by the foreign EV makers, FM Sitharaman in her last budget hiked customs duties on electric vehicles by 5% to 15%. According to Ashish Modani, vice president at ICRA, “At present, overall localization level is very low in EVs as compared to ICE counterparts. Hence, push for local manufacturing by GoI will continue in the medium term either by providing direct financial support under the proposed PLI (product linked incentives) scheme or by increasing duties on the imported EV components.” Electric vehicles: Basic custom duty hiked in Budget 2020 <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Components </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Custom duty now </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Custom duty earlier </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Completely built units of EVS </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">40% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Electric two-wheelers </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Electric buses </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Electric trucks </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Semi knocked-down electric PV </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr></tbody></table>Source: <a href="https://www.indiabudget.gov.in/doc/Budget_Speech.pdf">Union Budget 2020</a> Car sales picked up in December but only because buyers wanted to avoid the price hikes scheduled in the following month According to the FADA, the festive boost and the pre-buying decision ahead of the price hike in January has led to 11% year-on-year growth in December. The data showed that the dealer Inventory continues to fall with passenger vehicle inventory ranging from 15-20 days and two-wheelers inventory at 30-35 days. Their pitch is that they could use all the help they can from budget 2021. SEE ALSO: <a href="https://www.businessinsider.in/tech/apps/news/whatsapp-says-your-privacy-wont-be-affected-if-you-dont-use-these-features/articleshow/80225748.cms" data-type="tilCustomLink">WhatsApp says your privacy won't be affected if you don't use these two optional features</a> <a href="https://www.businessinsider.in/business/news/amazon-writes-to-sebi-again-asking-it-to-suspend-review-of-the-future-retail-reliance-deal/articleshow/80225043.cms" data-type="tilCustomLink">Amazon writes to SEBI again, asking it to suspend review of the Future Retail-Reliance deal</a>

India’s car dealers are hoping that Nirmala Sitharaman’s Budget 2021 brings buyers back — but rising prices may still be a deterrent

Passenger vehicle sales steady, commercial vehicles drive growth in March

<ul><li>There is a consensus amongst analysts that FY24 would ring in high single-digit growth for the Indian automobile as well as auto component sectors despite export headwinds. </li><li>CareEdge expects two-wheeler and three-wheeler sales volumes to cross pre-pandemic levels in the next financial year. </li><li>Price hikes due to BS6 Phase 2 norms and inflationary pressures, El Niño and its impact on the rural sentiments will be amongst the key factors to watch out for in FY24. </li></ul>The Indian auto industry is expected to register sales volume growth of 7-9% in FY24, building on the robust momentum of FY23, according to a report by CareEdge. Passenger vehicle (PV) and commercial vehicle (CV) segments are both expected to drive growth in the next financial year, with the latter especially benefiting from the government’s thrust on capital expenditure. Despite a challenging global environment in FY23, Indian auto companies made the most of the first disruption-free year after the Covid-19 pandemic. Overall, domestic sales rose 21% year-on-year in the 11 months of FY23 when compared to the same period in FY22. Urban demand, festive sales and pre-buying due to the BS6 Phase 2 transition helped boost the overall volumes – once again driven by passenger vehicles and commercial vehicles – despite supply chain challenges and a semiconductor chip shortage, according to the research firm. Exports, however, registered a decline of 14% in the 11 months of FY23, largely on account of weakness in foreign markets. <cmsannotation type="cmsannotation" annotationid="Analysts expect high single-digit growth in FY24" comment="subhead" text="Analysts expect high single-digit growth in FY24">Analysts expect high single-digit growth in FY24</cmsannotation> There is a consensus amongst analysts that FY24 would ring in high single-digit growth for the Indian automobile as well as auto component sectors despite export headwinds. “The growth momentum is expected to continue after the robust demand seen in FY23, supported by favourable demand sentiments and various government initiatives for rural and urban development,” said Tanvi Shah, director, CareEdge. According to a report by ratings agency ICRA, the auto components industry is also expected to witness 5% to 8% growth in revenue in FY24, primarily due to strong demand from the domestic market. “Over the long term, opportunities in the electric vehicle market, premiumisation of vehicles, a focus on localisation, improved export potential, and changes in regulatory norms will result in healthy growth for auto component suppliers,” ICRA said. The ratings agency underlined that the rise in mobility due to the reopening of schools and offices, improved freight movement and purchases being pushed back due to elevated inflation should boost sales in FY24. “We believe, in the coming months, with a favourable base for both PVs and 2-wheelers till H1 FY24, maintaining current retail volume levels would help both the segments deliver 10%+ growth in FY24E,” said a report by ICICI Securities. <cmsannotation type="cmsannotation" annotationid="2W and 3W sales expected to rise to pre-pandemic levels" comment="subhead" text="2W and 3W sales expected to rise to pre-pandemic levels">2W and 3W sales expected to rise to pre-pandemic levels</cmsannotation> Sales in the two-wheeler (2W) segment have stagnated in the past three months due to factors like continued price hikes, hot inflation and weakness in rural demand. <keyword id="6359783" type="General" weightage="80" keywordseo="bajaj-auto" source="Orion">Bajaj Auto</keyword>, which depends heavily on exports, also bore the brunt of weakness in key foreign markets like Nigeria. Its exports declined to 45% of its total sales in February 2023, from 52% in January 2022. While the threat of El Niño still looms large and could play spoilsport for two-wheeler sales by affecting crop output and hence incomes in rural areas –traditionally a large market for 2Ws, analysts at CareEdge remain optimistic about not just 2Ws but also three-wheeler sales going into FY24. The ratings agency expects sales volumes in these two segments to cross pre-pandemic levels in the next financial year. <cmsannotation type="cmsannotation" annotationid="What to watch for in FY24 – steep price hikes, El Niño and rural sentiments" comment="subhead" text="What to watch for in FY24 – steep price hikes, El Niño and rural sentiments">What to watch for in FY24 – steep price hikes, El Niño and rural sentiments</cmsannotation> Analysts also underlined factors which could have a significant impact on the auto industry’s performance in the upcoming financial year, ranging from price hikes to weather. The implementation of BS6 Phase 2 norms from April 1, 2023 is expected to drive steep price hikes – leading automakers like <keyword id="42747" type="General" weightage="50" keywordseo="tata-motors" source="Orion">Tata Motors</keyword>, Hero MotoCorp,<a href="https://www.businessinsider.in/business/auto/news/maruti-suzuki-announces-price-hike-cars-to-get-costlier-by-1-1-from-today/articleshow/97022345.cms"> Maruti Suzuki</a> and Honda have already<a href="https://www.businessinsider.in/business/news/time-to-buy-your-new-hot-wheels-automakers-set-to-increase-prices-of-vehicles-to-meet-stricter-emission-norms/articleshow/98940916.cms"> announced</a> price hikes. The adherence to new emission norms, in addition to inflationary pressures, could lead to more price hikes down the road and “potentially affect demand”, according to CareEdge. El Niño could lead to a drier year and further dampen rural sentiments, which could delay the much-anticipated recovery in the two-wheeler segment and derail tractor sales. However, overall, the Indian auto industry looks well placed heading into FY24 – the passenger and commercial vehicle segments are expected to retain their momentum, while the two- and three-wheeler sales are expected to inch back to pre-pandemic levels. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/adani-group-stocks-stage-a-rebound-led-by-adani-enterprises-group-market-capitalisation-rises-by-22011-crore/articleshow/99084630.cms">Adani group stocks stage a rebound led by Adani Enterprises: Group market capitalisation rises by ₹22,011 crore</a> <a href="https://www.businessinsider.in/finance/news/npci-introduces-interchange-fees-on-upi-transactions-done-via-prepaid-payment-instruments/articleshow/99080455.cms">Will UPI payments now attract charges? Decoding NPCI’s interchange fee on UPI transactions via prepaid payment instruments</a> <a href="https://www.businessinsider.in/business/telecom/news/increased-competition-delayed-tariff-hikes-could-effectively-lead-to-a-jio-airtel-duopoly/articleshow/99065537.cms">Increased competition, delayed tariff hikes could effectively lead to a Jio-Airtel duopoly</a>

India auto sales seen rising 7-9% in FY24: Passenger & commercial vehicles to drive demand

<ul><li>MPC has forecast growth at 8.0% for the first quarter while <keyword id="6354972" type="General" weightage="60" keywordseo="icra" source="Orion">ICRA</keyword> is projecting it at 8.5% and SBI at 8.3%.</li><li>While ICRA has maintained that the annual growth in this fiscal will be below the current MPC estimate of 6.5%, the SBI report believes it will be higher.</li><li>As many as 11 of the 14 high-frequency indicators pertaining to the services sector recorded a YoY growth in Q1 FY2024.</li></ul> The Indian GDP may surpass the latest <keyword id="6354335" type="General" weightage="70" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> projections for the first quarter of the current financial year (Q1FY24) as per reports released by SBI and credit rating agency, ICRA. In its last policy, the <keyword id="3446352" type="General" weightage="50" keywordseo="rbi-monetary-policy-committee" source="Orion">RBI Monetary Policy Committee</keyword> (MPC) had left its growth forecast unchanged at 8.0% for the first quarter while SBI is projecting it at 8.3% and ICRA is projecting a 8.5% growth in this period. The reason? As many as 11 of the 14 high-frequency indicators pertaining to the services sector recorded a YoY growth in Q1 FY2024. Despite headwinds, in India, global economic activity has remained resilient in the Q1FY24, driven mainly by the services sector. “Economic activity in Q1 FY2024 was boosted by a continued catch-up in services demand and improved investment activity, particularly a welcome front-loading in Government capital expenditure. Moreover, sharply lower prices of various commodities on a YoY basis supported margins in some sectors,” said <keyword id="473448" type="General" weightage="50" keywordseo="aditi-nayar" source="Orion">Aditi Nayar</keyword>, Chief Economist, Head-Research &amp; Outreach, ICRA. Soumya Kanti Ghosh, Group Chief Economic Adviser of SBI concurs. He says in the latest SBI Ecowrap, "Despite headwinds, In India, global economic activity remained resilient in the Q1FY24, driven mainly by the services sector. This is in sharp contrast to IMF’s latest forecast estimating global growth to fall from 3.5% in CY22 to 3% each in CY23 and CY24 with rapid rate hikes by central banks to fight sticky inflationary trends weighing on economic activity." The ICRA report also states that the GVA (gross value added) growth is seen at 8.1% in Q1 FY2024 (+6.5% in Q4 FY2023), driven by the recovery in the services sector (+9.7% vs. +6.9%), even as improved margins are likely to have shielded the industry (+7.3% vs. +6.3%) from weak external demand, with a relatively lower growth foreseen in agriculture (+4.0% vs. +5.5%). A word of caution Unseasonal heavy rains, the lagged effect of the monetary tightening and weak external demand is likely to exert a downward pressure on the GDP growth, as per the report. Moreover, the upcoming general elections can play their part in the second half of the fiscal year. Thus, ICRA has maintained that the annual growth in this fiscal will be below the current MPC estimate of 6.5%. “… We are circumspect that erratic rainfall, narrowing differentials with year-ago commodity prices, and possible slowdown in momentum of Government capex as we approach the Parliamentary elections, could dampen GDP growth in H2 FY2024 below the MPC’s forecasts. Overall, we maintain our FY2024 GDP growth estimate at 6.0%, lower than the MPC’s projection of 6.5% for the fiscal,” said Nayar. SBI bullish on annual growth The SBI Ecowrap points out that there has been a surge in capital expenditure in the first quarter, with Central government spending 27.8% of budgeted, while states at 12.7% of budgeted. This the report says will auger well for the annual growth which the RBI MPC has projected at 6.5%. "The FY24 growth to be higher than 6.5%, public sector and private sector bank credit expanded at a robust and equal pace. And capital expenditure of centres and states expanded at a rapid pace in Q1FY24," the report points out. First quarter highlights <ol><li>Capex-related ECB flows (for the purpose of modernisation, new projects, and local purchase and imports of capital goods) jumped to $13.0 billion in Q1 FY2024, exceeding the full-year FY2023 levels ($9.6 billion).</li><li>Boosted by housing construction projects under the Ministry of Housing and Urban Affairs, the value of project completions touched a record high of Rs. 7.8 trillion in Q1 FY2024, surpassing the record high of Rs. 6.5 trillion in FY2017.</li><li>As many as 11 of the 14 high-frequency indicators pertaining to the services sector recorded a YoY growth in Q1 FY2024, with the pace of expansion ranging from 0.3% (telephone subscribers) to 18.6% (domestic airlines passenger traffic).</li><li>Indicators such as CV sales (-3.3%) and air cargo traffic (-0.4%) saw a mild YoY contraction in Q1 FY2024.</li><li>ICRA estimates the industrial GVA growth to have risen to 7.3% in Q1 FY2024 from 6.3% in Q4 FY2023, boosted by the manufacturing sector.</li><li>Most indicators pertaining to construction activity witnessed an improvement in Q1 FY2024, suggesting a robust GVA growth of 9.0% for this sub-sector.</li><li>The year-on-year growth in electricity generation dipped to an 11-quarter low of 1.3% in Q1 FY2024, owing to an unfavourable base as well as the excess rainfall seen in the first half of the quarter.</li></ol>

India’s first quarter GDP may surpass RBI MPC projection

Retail sales of overall vehicles in <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword> grew by 15.28 per cent to 2,11,20,441 units in 2022 led by record sales of passenger vehicles and tractors, <keyword id="1692051" type="General" weightage="50" keywordseo="federation-of-automobile-dealers-associations" source="Orion">Federation of Automobile Dealers Associations</keyword> (<keyword id="354719" type="General" weightage="100" keywordseo="fada" source="Orion">FADA</keyword>) said on Thursday. In 2021, total retail sales of vehicles in India were at 1,83,21,760 units, FADA said in a statement. Two-wheelers retail sales stood at 1,53,88,062 units last year, a growth of 13.37 per cent from 2021 when sales stood at 1,35,73,682 units. Passenger vehicles (PV) retail sales were at 34,31,497 units in 2022, as against 29,49,182 units in 2021, up 16.35 per cent, it added. FADA President Manish Raj <keyword id="1114" type="General" weightage="80" keywordseo="singhania" source="Orion">Singhania</keyword> said, "For CY2022, while total vehicle retails grew by 15 per cent year-on-year and 17 per cent compared to CY20 it failed to surpass CY19 retails, (a pre-Covid year) and registered a fall of 10 per cent." He further said, "The PV category during this period continued to gain new grounds by clocking 34.31 lakh retails during the full year. This is by far, the highest retails which PV has done till date." Singhania, however, lamented that the two-wheeler segment once again failed to impress as retail sales during December 2022 continued to fall after two good months. "Reasons like rise in inflation, increased cost of ownership, rural market yet to pick up fully and increased EV sales, the ICE (internal combustion engine) two-wheeler segment is yet to see any green shoots," he added. In 2022, commercial vehicles retail sales stood at 8,65,344 units, as against 6,55,696 units in 2021, a growth of 31.97 per cent. "The CV segment has continued to grow during entire CY2022 and is now almost at par with CY2019 retails. With an uptick in demand in LCV (light commercial vehicles), HCV (heavy commercial vehicles), buses and construction equipment, the government's continued push for infrastructure development has kept this segment going," Singhania said. He also said the three-wheeler segment which was completely down during <keyword id="8764262" type="General" weightage="50" keywordseo="covid" source="Orion">Covid</keyword> has recovered well and has narrowed its gap when compared to CY2019. "Within the segment it's the electric rickshaw sub-segment which is showing triple-digit growth thus pushing the EV market share above 50 per cent mark," he added. Three-wheeler retail in 2022 stood at 6,40,559 units, as compared to 3,73,562 units in 2021, up 71.47 per cent. Singhania said the tractor segment was the only other segment apart from PV which has grown well above calendar years 2021,2020 and pre-Covid year of 2019. "It has also registered a new lifetime high sales of 7.94 lakh units. This feat was possible due to consistently good monsoon, improved cash flow with farmers, better MSP of crops and government's focus on better procurements," he added. Tractor retail sales in 2021 were at 7,69,638 units. Apart from this, timely sowing of rabi crops also helped to continue this momentum. Festive season sales which were normal after 3 years also played its part in this strong momentum, Singhania said. In December 2022, FADA said the total vehicle retail sales were down 5.4 per cent at 16,22,317 units as against 17,14,942 units in the year-ago month. Two-wheelers retail sales stood at 11,33,138 units last month, as against 12,75,894 units in December 2021, a decline of 11.19 per cent, FADA said. Passenger vehicle retail sales were at 2,80,016 units as compared to 2,58,921 units in December 2021, up 8.15 per cent, while commercial vehicles segment witnessed retail sales of 66,945 units as compared to 60,491 units in December 2021, a growth of 10.67 per cent. On the outlook, FADA said global geopolitical headwinds, tightening monetary policy and the lingering effect of the pandemic have combined to create a gloomy global outlook. "Auto OEMs have done routine price hikes in December and have announced the same at the beginning of this year. Apart from this, BS-VI phase II norms coming in, there will be further price hikes across all categories," it said, adding to counter this, Auto OEMs should announce special schemes so that retail sales momentum continues. Due to inflation pressure, upcoming change in vehicle norms resulting in price hikes, FADA said it remains cautious during the last quarter of FY23. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/hyderabadi-satya-nadella-insulted-by-his-own-software-as-it-calls-biryani-a-tiffin/articleshow/96756350.cms">Hyderabadi Satya Nadella 'insulted' by his own software as it calls Biryani a tiffin</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/entertainment/news/twitterati-misses-ashneer-grover-snapping-in-shark-tank-india-s2/slidelist/96754759.cms">Doglapan, bilkul bakwas: Twitterati misses Ashneer Grover snapping in Shark Tank India S2</a>

Total vehicle retail sales jump 15 pc to 2.11 crore units in 2022: FADA

After 21% growth in FY23, auto sales to hit slow lane in FY24: FADA

Tractors & commercial vehicles drive auto sales in February but El Niño threat looms large

New Delhi, Apr 8 () Ratings agency ICRA on Wednesday said commercial vehicles (CV) sales volumes in India are likely to contract further between 8-10 per cent in 2020-21 as the near term outlook of the sector is weighed down significantly by the coronavirus pandemic. The agency said it continues to maintain a negative outlook for the CV segment over the near-term citing "slowing economic growth, current overcapacity in the CV ecosystem and not so benign financing environment, with challenges further aggravated by the recent and rapid spread of novel coronavirus in India". "The demand headwinds are expected to continue over the near-term given the macroeconomic challenges in view of the recent pandemic outbreak coupled with weakening financial profile of fleet operators and significant price hikes because of transition to the BS-VI emission norms," ICRA said in a statement. This would exert pressure on earnings and overall credit profile of CV OEMs, which have witnessed sharp earnings contraction over the past 3-4 quarters, it added. Commenting on the situation, ICRA Vice President Shamsher Dewan said excess capacity created in the system post revision of axle load norms in July 2018 and faster turnaround of vehicle post GST implementation, coupled with slowdown in the economy and infrastructure projects and the resultant lower freight availability continue to weigh on the demand prospects. "Furthermore, the rapid spread of coronavirus and the lockdown imposed in the country has had a significant impact on goods movement and freight availability over recent weeks and may continue over the near-term," he added. Accordingly, the outlook for the next fiscal, especially the first half, remains weak given the macroeconomic headwinds in view of recent pandemic outbreak coupled with significant price hikes because of transition to the new emission norms, Dewan said. "Any recovery in the latter half hinges on pick-up in construction activity. However, despite some channel inventory filling measures of OEMs, M&amp;HCV (Truck) sales are expected to close the upcoming fiscal with further decline of 12-14 per cent during FY2021," he added. On the other hand, despite recovery expectations during the latter half, the light commercial vehicles truck segment is expected to contract further by 7-9 per cent during FY2021, ICRa said, adding prolonged disruptions due to recent coronavirus outbreak poses further downside risks to this. The passenger carrier segment is also expected to report demand contraction in the next fiscal, the ratings agency said adding, "accordingly, ICRA expects the (overall) segment volumes to contract by 8-10 per cent during fiscal year 2021". "...the recent pandemic outbreak remains a significant unknown which can have a bearing on the economy and CV sales over the near to medium term. "ICRA believes an improvement in the economic environment and resolution of liquidity constraints remain critical for a sustained revival in the industry. In absence of either, we maintain a subdued outlook for the industry for the next fiscal." Dewan said. RKL SHWSHW

Coronavirus: Commercial vehicle sales likely to contract 8-10% further in FY21, says ICRA

<ul class="summary-list"><li>A record number of US <keyword id="12128152" type="UNKNOWN" weightage="60" keywordseo="retail-workers" source="Orion">retail workers</keyword> are quitting their <keyword id="11899183" type="UNKNOWN" weightage="60" keywordseo="jobs" source="Orion">jobs</keyword>.</li><li>Decades of low wages and a lack of career progression are taking their toll, making the <keyword id="11908404" type="UNKNOWN" weightage="60" keywordseo="labor-shortage" source="Orion">labor shortage</keyword> worse.</li></ul>After 15 months of working in a pandemic, Michael quit his job as an associate at a furniture store in Arkansas in May 2021. He'd reached breaking point. Long shifts hauling furniture around the store, unpleasant customers, inconsistent scheduling that made his home life hard, and a rat infestation that wasn't addressed for months in the store had taken their toll on his mental health.Michael, who requested his last name remain anonymous but whose identity is known to Insider, said he tried his best to get along with managers and supervisors, "but at the end of the day, poor communication, unrealistic expectations, and looming punishment for not meeting certain standards is the end-all of healthy work dynamics.""Unemployment is scary, but I knew there had to be more to life than this," he told Insider. "There had to be more to life than getting screamed at by random strangers. There had to be more to life than <keyword id="11893588" type="UNKNOWN" weightage="100" keywordseo="retail" source="Orion">retail</keyword>."Michael is among <a href="https://www.businessinsider.com/over-4-million-workers-quit-record-labor-shortage-great-resignation-2021-10">thousands of retail</a> workers who have <a href="https://www.businessinsider.com/retail-workers-tight-labor-market-rage-quit-pay-2021-6">quit their jobs</a> this year hoping to move to better-paying positions in more stable industries. He has since accepted a new job as a teaching assistant at an elementary school, initially taking a pay cut, which he says is well worth it. While the "<a href="https://www.businessinsider.com/great-resignation-what-to-know-who-is-quitting-2021-9">Great Resignation</a>" was born out of the pandemic, the sentiments behind it have been brewing for years in retail. Decades of stores neglecting workers has turned retail work into a CV stop-gap rather than a viable career, experts tell Insider — and it's now coming back to haunt the industry. Retail and foodservice has been the sector <a href="https://www.businessinsider.com/over-4-million-workers-quit-record-labor-shortage-great-resignation-2021-10?r=US&amp;IR=T">worst hit</a> by workers quitting their jobs, and now the industry faces a crippling labor shortage that <a href="https://www.nytimes.com/2021/11/08/business/retail-hiring-holidays-workers.html">became more intense</a> as the holiday season approached.<h2><keyword id="12608153" type="UNKNOWN" weightage="60" keywordseo="big-box-stores" source="Orion">Big-box stores</keyword> changed retail work</h2>Pre-1960s, working in retail was considered a solid, sustainable job, Marc Perrone, president of UFCW, the US' largest retail worker union, told Insider. The wages weren't the best but they also weren't the worst, he said, and when you factored in extra benefits – overtime, bonuses, pensions, employee discounts, medical, disability, and life insurance – workers felt like the futures of them and their families were taken care of. These were attractive jobs.This began to change in the early 1960s with the arrival of big-box stores such as <keyword id="11893281" type="UNKNOWN" weightage="60" keywordseo="walmart" source="Orion">Walmart</keyword> and Target, whose business model was to offer low prices to customers <a href="https://www.businessinsider.com/walmart-low-price-strategy-tips-2019-4?r=US&amp;IR=T#low-operations-costs-3">by keeping labor costs down</a>. It was also the start of a shift away from <a href="https://www.businessinsider.com/retail-work-changed-worse-last-decade-expert-2019-12">full-time to part-time work</a>. Stores realized they could hire double the workers without having to pay overtime or benefits, and could schedule employees' work around consumer demand. <div type="image" title="A woman in a face mask and red T-shirt scans groceries at a check-out counter." height="2932" width="3909" msid="87913444" hostid="261"></div>This had a huge impact on retail jobs, Perrone said — and for many people, it was no longer possible to make a sustainable living.Workers were given limited benefits with little to no long-term career opportunities, Mark Cohen, director of retail studies at Columbia Business School, told Insider, adding that staff became "commoditized and somewhat dehumanized as a result."Their roles changed, too. Workers were hired to stock shelves and run the checkout rather than to be customer-service experts, which meant personal relationships between customers and workers evaporated. The loyalty between employer and employee soon followed. The <a href="https://www.businessinsider.com/retail-jobs-changing-not-for-better-2018-2">rise of technology</a> for certain tasks further made each individual less valuable. "There was no need for employee loyalty," Ed Delaney, a state representative for Indiana, who has campaigned for worker rights, told Insider. "Retailers could just churn workers and get a new one in," he said.<h2>Balance of power back with workers</h2>Now, for the first time in decades, the balance of power has shifted, and retail businesses are realizing that they need to address working conditions, wages, and career prospects if they want their jobs to be seen as desirable.Progress has been limited so far. Some stores have raised wages, while others are offering perks such as <a href="https://www.businessinsider.com/labor-shortage-sign-on-bonus-bonuses-supermarkets-convenience-stores-2021-6">signing-on bonuses</a> to incentivize workers — but this is no guarantee of a stable career or long-term higher pay, according to Delaney. "It's just: 'I need you now and I'm stuck with paying you this.'" With thousands of jobs still to fill, retailers are at a crunch point. "Retail employment will have to once again be seen as an entry-level career starter rather than just a lowly paid 'job,'" Cohen said.Workers who have left the sector will take a lot of convincing to go back. Michael, for example, tells Insider he'd need more than a wage hike."The entire culture and process of retail would need to change," he said."I can't take back the years in retail and foodservice that have aged and weakened me," he said, "but I can move forward knowing I don't have to be trapped in that environment any longer."If you have a story to share please contact this reporter via encrypted messaging app <a href="https://signal.org/">Signal</a> at +1 (646) 768-4716 using a non-work phone, by email to mhanbury@businessinsider.com, or Twitter DM at @<a href="https://twitter.com/MarySHanbury">MarySHanbury</a>.

You Searched For "price hike in CV" and got 12 results

Tata Motors to increase price of its commercial vehicle segment from July 1

IANS

Retail auto sales grow 11% in September, but still below pre-Covid levels, says FADA

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Tata Motors rallies nearly 8% on strong JLR sales in March quarter; Analysts bullish with an eye on margins

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India’s car dealers are hoping that Nirmala Sitharaman’s Budget 2021 brings buyers back — but rising prices may still be a deterrent

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Passenger vehicle sales steady, commercial vehicles drive growth in March

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India auto sales seen rising 7-9% in FY24: Passenger & commercial vehicles to drive demand

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India’s first quarter GDP may surpass RBI MPC projection

Abhishek Jha

Total vehicle retail sales jump 15 pc to 2.11 crore units in 2022: FADA

PTI

After 21% growth in FY23, auto sales to hit slow lane in FY24: FADA

Anagh Pal

Tractors & commercial vehicles drive auto sales in February but El Niño threat looms large

Rounak Jain

Coronavirus: Commercial vehicle sales likely to contract 8-10% further in FY21, says ICRA

PTI

Retail won't tackle the labor shortage until it reverses decades of worker neglect and becomes a viable, long-term career again

Mary Hanbury

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