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Imagine a bustling jewellery market teeming with diamonds and gold. Amidst this glittering chaos, a small stall is trying to sell handcrafted gemstones. Even as newer and shinier outlets keep cropping up, all vying for attention, this gemstone store offers some of the oldest yet valuable jewels at a discount. Though they lack immediate sparkle, these rare gems reveal their value to the discerning buyer. This is how South Korea appears for many experts in global capital markets: a trove of undervalued gems, overshadowed by brighter, more aggressively marketed investment options. This undervaluation, known as the "<keyword id="24399183" type="General" weightage="20" keywordseo="korean-discount" source="keywords">Korean Discount</keyword>," reflects how South Korean companies are priced much lower than their global peers despite robust fundamentals — strong financial performance and consistent profitability. Contributing factors are many, ranging from opaque governance structures to geopolitical risks. But the fact stays, if you are a seasoned conglomerate listed in South Korea, you are likely undervalued. <keyword id="19906087" type="General" weightage="20" keywordseo="hyundai" source="keywords">Hyundai</keyword> Motor India Ltd. (HMIL), a subsidiary of the Korean giant Hyundai Motor Company (HMC), recently sought to escape this valuation trap by listing in India, a market where investor optimism commands premium pricing. But its valuation raised many eyebrows! Now that a month and a half has gone by since its listing, time is apt to examine if this gamble paid off. Will <keyword id="93460" type="General" weightage="100" keywordseo="hyundai-india" source="Orion">Hyundai India</keyword> justify its high valuation? Or does the listing highlight broader questions about the overheated valuation dynamics of Indian markets? A record-breaking <keyword id="19898327" type="General" weightage="20" keywordseo="ipo" source="keywords">IPO</keyword> but questions remain Hyundai Motor India’s mega Initial Public Offering (IPO), launched in October 2024, broke records by raising ₹27,870 crore, making it India’s largest-ever IPO. The offer was oversubscribed by 2.37 times, highlighting robust demand. But many investors remained sceptical: was this IPO an honest attempt to expand Hyundai’s footprint in India or was it trying to offer a way to cashout for existing investors and promoters? Or perhaps, is it an attempt by the Korean chaebol — a large family-owned business conglomerate — to break free from the aforementioned “Korean Discount”? When shares listed on October 22, these concerns seemingly weighed on the minds of most investors and the stock promptly dipped 5% below the issue price on the day. A tepid grey market performance had already foreshadowed this muted debut in the Indian markets. Now, after almost 35 trading sessions on Indian market, the stock remains almost exactly at price it listed on October 22 at Rs 1820—no gain, no loss. <h3>The gamble of hyper-valuation</h3>Much of this hesitation stemmed from Hyundai’s valuation. On listing, Hyundai was valued at $18 billion, positioning it as one of India’s most valuable automotive companies. However, such high valuations often temper investor enthusiasm, resulting in more cautious short-term outcomes. For most investors, the Price-to-Earnings (P/E) ratio is the most preferred parameter to gauge if a company is overvalued or undervalued. With a P/E ratio of 26.3, HMIL was priced significantly above the Indian automotive industry average of 24.4. Globally, automotive companies operate with much lower P/E ratios, reflecting mature market conditions and slower growth trajectories. HMIL’s South Korean parent Hyundai Motor Company (HMC) trades at a meagre 3.07, believe it or not! For Indian investors, the high premium hinted at overvaluation despite Hyundai’s strong domestic position. Such stark difference in valuation obviously sparked debates — is the Indian market assigning a premium to Hyundai Motor India’s growth potential, or is it simply reflecting the general exuberance around the prospects of the Indian economy? Another concern is the allocation of IPO proceeds. Hyundai’s IPO was structured as an offer for sale (OFS), meaning all funds raised would flow to the parent company rather than Hyundai India’s operations. Although Hyundai has committed to investing in R&amp;D for EVs and hybrids, critics argue that the lack of immediate reinvestment in India’s operations reflects a missed opportunity for domestic growth. Despite the early disappointment, Hyundai was confident that the valuation was fair. It did have some factors going for it, in addition to the fact that other auto giants like Mahindra &amp; Mahindra and <keyword id="19909974" type="General" weightage="20" keywordseo="maruti-suzuki" source="keywords">Maruti Suzuki</keyword> command even higher P/E ratios. And looking at the company fundamentals, it does seem like Hyundai is playing a long-term game. <h3>Hyundai in India: A proven track record</h3>Despite the initial stumble, Hyundai India’s long-term story is compelling. Since entering the Indian market in 1996, the automaker has sold over 8 million vehicles and firmly occupies the second spot in the domestic passenger vehicle market, trailing only Maruti Suzuki. Hyundai’s blockbuster SUV offerings, like the Creta and Venue, have been critical in building this dominance. Despite some challenge from Maruti Suzuki Brezza and Tata Punch, Creta has retained the tag of ‘most-selling SUV in India’ successfully so far this year. <div type="image" title="Hyundai" agency="Business Insider India" msid="116156234" hostid="261" caption="&amp;lt;p&amp;gt;Selling over 17,000 units per month on average this year, Creta has edged past major competitors to be the most-selling SUV in India in 2024. As Indian consumers preference continues to shift gradually towards premium products over budget segments, Hyundai stands to benefit (Wikimedia Commons / Canva)&amp;lt;/p&amp;gt;"></div> Selling over 17,000 units per month on average, Creta has edged past major competitors to be the most-selling SUV in India in 2024. As Indian consumers preference continues to shift gradually towards premium products over budget segments, Hyundai stands to benefit (Wikimedia Commons / Canva) Hyundai India’s market share of 14% in October 2024 underscores its clout. The company’s ability to tap into India’s premiumisation trend, where consumers increasingly prefer high-end vehicles, positions it well for growth. With plans to expand in electric vehicles (EVs) and hybrid technology, Hyundai is poised to capitalise on both domestic demand and export opportunities. The company’s ability to capitalize on its strong brand, extensive dealer network, and leadership in segments like SUVs and exports will determine its future performance. Hyundai’s strategic focus on expanding electric vehicle production also aligns with global trends towards sustainability, potentially positioning it as a leader in the segment. By listing in India, Hyundai aims not only to expand its operations but also to make India a global manufacturing and export hub for its products, especially SUVs and EVs. Therefore, despite early setbacks, Hyundai’s gamble seems to have paid off. The stock has rebounded, gaining 5% in the past month. More good news came in this week, as positive projections from Morgan Stanley and JPMorgan forecast an impressive 17-28% upside for the stock over the next year, reflecting growing investor optimism. <h3>A strategic pivot from the Korean Discount?</h3>The Korean Discount has long plagued South Korea’s chaebols, including Hyundai. Experts attribute this to several factors: <ul> <li>Chaebol Governance: South Korea’s conglomerates, known as chaebols, are often criticised for opaque governance structures and excessive family control.</li> <li>Geopolitical Risks: Tensions with North Korea contribute to investor caution, adding a layer of perceived risk.</li> <li>Limited Domestic Liquidity: South Korea’s relatively small investor base can constrain market activity and valuation potential.</li> </ul> By listing in India, Hyundai sought to unlock better valuations for its subsidiary, leveraging the optimism of Indian markets. India’s stock market has a trailing P/E ratio of 24.4, far above South Korea’s Kospi average of 16-17. The Indian market’s appetite for high-growth stories provides a fertile ground for companies like Hyundai to escape the valuation constraints of their home market. A successful IPO could encourage other such conglomerates to follow suit, setting a precedent. While Hyundai India has a robust track record, its future success hinges on navigating key challenges: <ul> <li>Supply Chain Vulnerabilities: Hyundai relies heavily on its Chennai plant, making it vulnerable to disruptions.</li> <li>Intensifying Competition: Domestic rivals like <keyword id="19906967" type="General" weightage="20" keywordseo="tata-motors" source="keywords">Tata Motors</keyword> and MG Motors are making aggressive inroads into the EV market.</li> <li>Policy Risks: The automotive sector’s reliance on government incentives for EVs and hybrids adds a layer of unpredictability.</li> </ul> High valuations come with risks. Hyundai will need to prove that it can sustain its growth trajectory in India, fend off competition from established players like Maruti Suzuki and Tata Motors, and navigate challenges such as supply chain disruptions and regulatory hurdles. If Hyundai successfully capitalises on its strong brand and market leadership, it could not only redefine its value but also serve as a case study for other Korean companies seeking better recognition and valuations in global markets. <h3>Is Hyundai saga a reflection of overheated Indian markets?</h3>The bigger question here is, does Hyundai’s IPO highlights a broader narrative about Indian markets’ premium valuations? With a trailing P/E ratio of 24.4, Nifty 50 index is among the highest in emerging markets. India’s stock markets consistently command a premium due to robust retail participation, strong economic growth prospects, and a burgeoning middle class. While this premium reflects optimism about India’s long-term growth story, it also signals potential risks of overvaluation, particularly in sectors like technology, automotive, and consumer goods. With a record ₹94,017 crore outflow by Foreign Portfolio Investors (FPIs) in October 2024, concerns about overheated valuations are mounting. Sustaining such unprecedented valuations required companies to consistently perform above global averages, and retaining robust earnings growth quarter after quarter remains a challenge in today’s uncertain world. For Hyundai, the high valuation is both an opportunity and a risk. While it underscores investor confidence, it narrows the margin of safety, making the stock vulnerable to corrections during economic downturns. Take for example, the high-profile IPO of Life Insurance Corporation of India (LIC) that raised over ₹21,000 crore. Its listing was met with disappointment as the stock began trading at a 9% discount to its issue price, and subsequent performance has remained subdued. LIC’s post-IPO journey also highlights how inflated valuations can lead to long-term underperformance, as the stock gave only 12% return over the past 30 months when even the Nifty 50 index went up by over 44%. This happens when when the company's growth narrative fails to align with its pricing. Despite being a household name with a dominant market share, LIC's stock has struggled to meet expectations, partly due to concerns about its operating efficiency and the limited use of IPO proceeds for growth initiatives. Make no mistake, Hyundai Motor India’s IPO is a landmark event! It showcases the potential for Korean companies to leverage emerging markets like India for better valuations. It also shows that strong fundamentals can help justify a company such premium valuations even amidst bearish economic prospects. However, it also serves as a cautionary tale about the risks of overvaluation. For Hyundai, the next steps involve proving its long-term growth story, navigating competitive challenges, and maintaining investor confidence. For Indian markets, Hyundai’s IPO underscores the need to balance optimism with realistic expectations as they continue to evolve as global investment hotspots. To sustain the country’s economic narrative as a land of unmatched opportunities, corporate India must work on improving long-term fundamentals and mitigating long-term risks. As global investors watch closely, Hyundai India’s success or failure could shape how international companies view India as a listing destination in the years to come.

Tackling the 'Korean Discount': A deep dive into curious case of Hyundai Motor India's market listing

<ul><li>Automakers have announced <keyword id="22387426" type="General" weightage="100" keywordseo="discounts-on-cars" source="keywords">discounts on cars</keyword> in India for a limited period.</li><li>The discounts have likely been announced due to an inventory buildup and slowdown in sales.</li><li>Here are some of the best discounts announced on cars that you can avail.</li></ul>If you are considering purchasing a car for yourself or someone in your family, now is a great time to do so. Monsoon is here and this time around, it is raining discounts on cars. Several major automakers, such as Maruti Suzuki, Tata Motors, Mahinda and others have announced discounts across a wide range of cars. The reason for the discount ranges from a slowdown in sales to massive inventory buildup, and more. <h2>Maruti Suzuki</h2>Maruti Suzuki, India’s largest automaker has also announced a slew of discounts on cars such as the Jimny, Baleno, Grand Vitara and more. The Jimny, which has had poor sales has received the highest discount at up to ₹1.75 lakh for the Zeta variant and up to ₹1.8 lakh for the Alpha variant. Baleno, one of the company’s most popular hatchbacks has been discounted by ₹35,000 to ₹40,000, depending on the variants. The AMT variant has received the highest discount. The Grand Vitara SUV has received a discount of ₹55,000 for its hybrid variant, while its other variants have been discounted by up to ₹30,000. The company’s latest offering, the Fronx has also been discounted by up to ₹35,000. <h2>Tata Motors</h2>Tata Motors has announced that its popular EV, the Nexon EV will be available with a discount of up to ₹1.3 lakh. The Nexon EV Empowered+ has received the highest discount, while other variants of the car have been discounted by up to ₹60,000. The company’s affordable electric SUV, the Punch EV has also been discounted between ₹10,000 to ₹30,000 based on variants. The company’s premium SUVs, the Safari and Harrier are also available with discounts of up to ₹1.3 lakh. <h2>Hyundai</h2>Hyundai, one of the top automakers in the country has also announced discounts. The company’s popular hatchback i20 is available with a discount of up to ₹30,000 and an additional exchange bonus of ₹10,000. The Verna sedan is being sold with a discount of up to ₹20,000 and an exchange bonus of ₹15,000. The premium SUV from the company, Tucson is being offered with a discount of up to ₹2 lakh, which varies on the model. <h2>Mahindra</h2>Mahindra and Mahindra has officially announced a price cut for its premium XUV700’s AX7 range. It will now be available starting at ₹19.5 lakh (ex-showroom), after a price cut of ₹2 lakh. <h2>MG Motor</h2>MG Motor has announced a discount of up to ₹75,000 on the MG Hector, along with a bonus of ₹55,000. The MG ZS EV is available with a discount of up to ₹1.5 lakh while the premium Gloster SUV is being offered with a discount of up to ₹2 lakh. Disclaimer: The discounts being offered may vary from state to state and are subject to change. The discount may be reduced or you may even get a higher discount, depending on the company and the showroom. Contact the showroom near you to know the exact offers applicable for your car. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-launching-in-india-in-july-2024/slidelist/111341281.cms">Upcoming cars launching in India in July 2024</a> <a href="https://www.businessinsider.in/business/auto/news/ola-electric-gets-sebi-approval-for-5500-crore-ipo/articleshow/111141404.cms">Ola Electric gets SEBI approval for ₹5,500 crore IPO</a> <a href="https://www.businessinsider.in/tech/mobile/news/oppo-reno-12-and-reno-12-pro-smartphones-launched-in-india-starting-at-32999/articleshow/111682974.cms">Oppo Reno 12 and Reno 12 Pro smartphones launched in India starting at ₹32,999</a>

It’s raining discounts – Maruti Suzuki, Hyundai, Tata Motors and others offer discounts on cars as sales slowdown

<ul><li>India’s biggest automaker <keyword id="44883" type="General" weightage="80" keywordseo="maruti-suzuki" source="Orion">Maruti Suzuki</keyword> has announced a price hike that will come into effect from January 2024.</li><li>This comes amid high inventory levels with <keyword id="6368404" type="General" weightage="20" keywordseo="automakers" source="Orion">automakers</keyword> and may be a measure to push year-end sales.</li><li>Companies often offer high discounts during the year-end to attract customers and offload inventory.</li></ul>India’s biggest automakers such as Maruti Suzuki and Tata Motors have announced a plan to increase prices of their vehicles from January 2024. Audi too has announced a price hike of up to 2% and other automakers are also expected to follow suit. The trigger for the price hike is not a change in taxes, something which has often been a reason in the past. Maruti Suzuki has cited an “increase in cost pressure” due to the overall inflation and increased commodity prices as the reason. In the pre-GST era, it was customary for the government to hike duties, so consumers would rush to buy cars, TVs and more, lest they turn expensive after the Budget. After GST has taken over the burden of most of such taxation, the Budget-date fear has been absent from the market. "The company has planned to increase the prices of its cars in January, 2024 on account of increased cost pressure driven by overall inflation and increased commodity prices. While the company makes maximum efforts to reduce cost and offset the increase, it may have to pass on some increase to the market," Maruti Suzuki said in a filing with the stock exchange. <cmsannotation type="cmsannotation" annotationid="Rise in inventory" comment="subhead" text="Rise in inventory">Rise in inventory</cmsannotation> The wholesale of vehicles has been higher than retail sales for a few months now, meaning dealers are purchasing more vehicles than they are selling to customers. This has led to a buildup of vehicles with dealers, with inventory levels rising to 63-66 days in October, as per data from the Federation of Automobile Dealers Associations (FADA). FADA had expressed its<a href="https://www.businessinsider.in/business/auto/news/auto-sales-in-october-up-13-pc-mom-says-fada-but-high-pv-inventory-levels-a-concern/articleshow/105003170.cms"> concerns</a> about the inventory buildup, adding that without substantial intervention, the weight of unsold stock could lead to significant dealer distress <cmsannotation type="cmsannotation" annotationid="Price hike may be aimed at pushing customers to buy now" comment="subhead" text="Price hike may be aimed at pushing customers to buy now">Price hike may be aimed at pushing customers to buy now</cmsannotation> The upcoming price hike in January may be a way for the companies to offload their existing inventory, before the year ends. While Maruti has not announced the quantum of the price hike, even a small percentage hike is enough to spook customers into moving up their purchase. <cmsannotation type="cmsannotation" annotationid="Automakers offers discounts, accessories and more" comment="subhead" text="Automakers offers discounts, accessories and more">Automakers offers discounts, accessories and more</cmsannotation> It’s not just with price hikes that companies try to lure customers to purchases cars in the fag end of the year. Companies offer discounts on the car, car’s accessories or even offer some free accessories in the name of year-end offers. In addition to this, companies also tie-up with insurance companies to offer better rates or better coverage. Companies also push for discounted extended warranties to push sales. <cmsannotation type="cmsannotation" annotationid="Experts warn about making year-end purchases" comment="subhead" text="Experts warn about making year-end purchases">Experts warn about making year-end purchases</cmsannotation> Initially, it may seem like a good idea to pull the trigger on a car purchase with a price hike looming and car makers offering attractive discounts, but there are some other aspects that you need to consider before purchasing a car in December. The first thing that you need to consider is the manufacturing date. Cars purchased in December will have their manufacturing date as 2023, even though you have purchased it at the end of the year. This may not seem like a big deal when you are thinking about discounts and other offers, but will have a huge impact on your car’s resale value. Your car is already outdated once the year ends. “You may feel that you are getting an amazing deal but always keep in mind that the same model will be outdated from next month. Also, your car gets depreciated by 10-12% every year, so technically one month difference will cost you 10% in depreciation,” said Ananth Ladha, founder, Invest Aaj for Kal, a financial planning firm. When compared to a car from January 2024, the resale value of a car from December 2023 may be 10% less, which is quite high for a month’s difference. “Whenever you get the car delivered, it is marked as a car of that year, say 2023. If you got a car in December and you attempt to resale it, you lose out on a good one year of use as the car will be earmarked to 2023, but you have got it at the tail-end of the year,” said Adhil Shetty, chief executive officer, BankBazaar. However, this does not mean that purchasing a car at the end of the year is not worth considering. “However, if you are getting very good benefits, it may offset the drop in resale value that can be the case with your vehicle,” Shetty added. So, you need to consider the value of the discounts being offered and compare it to the value that you are losing out by purchasing a car at the end of the year. Then, you need to identify whether it is worth doing so or not. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/indias-pc-market-surges-to-4-5-million-devices-in-q3-2023/articleshow/105285251.cms">India’s PC market shipments surge in Q3 amidst import restrictions talks</a> <a href="https://www.businessinsider.in/tech/mobile/news/the-average-selling-price-of-smartphones-increased-in-a-flat-market/articleshow/105033814.cms">The average selling price of Indian smartphones has increased despite a flat market</a> <a href="https://www.businessinsider.in/business/auto/news/indias-electric-two-wheelers-up-and-running-after-reduced-fame-subsidy-bump/articleshow/104912419.cms">India’s electric two-wheelers up and running after reduced FAME subsidy bump</a>

Car prices set to rise in January – Should you buy one in December?

<ul><li><keyword id="19897349" type="General" weightage="20" keywordseo="ola-electric" source="keywords">Ola Electric</keyword> has announced a temporary price cut for its electric scooters in India.</li><li>The <keyword id="19945904" type="General" weightage="20" keywordseo="ola" source="keywords">Ola</keyword> S1 X+, the company’s affordable offering is now available at ₹84,999, ex-showroom.</li><li>Ola Electric is the latest EV maker to announce a price cut, after Ather Energy, <keyword id="19906967" type="General" weightage="20" keywordseo="tata-motors" source="keywords">Tata Motors</keyword> and MG Motors among others.</li></ul> Ola Electric has become the latest EV maker to announce a price cut for its electric vehicles. The Bhavish Aggarwal-led company has announced a temporary price cut of up to ₹25,000 for its electric scooters. Ola Electric has said that this is a temporary price cut that is applicable till the end of February. This comes over a month after Ather Energy announced a permanent<a href="https://www.businessinsider.in/business/auto/news/ather-450s-electric-scooter-price-cut-only-five-months-after-launch/articleshow/106700488.cms"> price cut</a> of ₹20,000 for the<a href="https://www.businessinsider.in/business/auto/news/ather-announce-new-electric-scooter-450s/articleshow/102642216.cms"> Ather 450S</a> electric scooter. <a href="https://www.businessinsider.in/business/auto/news/tata-motors-cuts-ev-prices-by-up-to-1-2-lakh-as-battery-cost-dips/articleshow/107656497.cms">Tata Motors</a> and<a href="https://www.businessinsider.in/business/auto/news/mg-comet-price-slashed-indias-most-affordable-ev-gets-cheaper/articleshow/107451916.cms"> MG Motor</a> are among the other EV companies that recently announced price cuts. <div type="twitter" handle="bhash" handlename="bhash" favoritecount="0" retweetcount="0" id="1758384795590263102"></div> “You asked, we delivered! We’re reducing our prices by upto ₹25,000 starting today for the month of Feb for all of you!! Breaking all barriers to #EndICEage! Valentine’s Day gift for all our customers,” said Bhavish Aggarwal in a post on X. The price of its affordable offering, the Ola S1 X+ has been reduced from ₹1,09,999 to ₹84,999. The mid-range offering, the Ola S1 Air is now available for ₹1,04,999, down from ₹1,19,999. The premium Ola S1 Pro is available at ₹1,29,999, down from ₹1,47,999. All of the mentioned prices are ex-showroom. <cmsannotation type="cmsannotation" annotationid="Discounts aimed at boosting sales" comment="subhead" text="Discounts aimed at boosting sales">Discounts aimed at boosting sales</cmsannotation> Ola had announced similar discounts in January 2024 as well so we expect this to become a recurring offer as the company looks to continue leading the<a href="https://www.businessinsider.in/business/auto/news/ola-electric-continues-to-lead-the-segment-in-electric-scooters-in-january-2024/articleshow/107424791.cms"> electric two wheeler market</a> and take on internal combustion engine (ICE) vehicles. <cmsannotation type="cmsannotation" annotationid="Ola S1 X+ to take on ICE vehicles" comment="subhead" text="Ola S1 X+ to take on ICE vehicles">Ola S1 X+ to take on ICE vehicles</cmsannotation> One of the issues with EVs has been the price difference between them and similar ICE two-wheelers. With this price cut, the Ola S1 X+ takes on the likes of the Activa and <keyword id="20382513" type="General" weightage="20" keywordseo="suzuki-access" source="keywords">Suzuki Access</keyword>, which are priced around the ₹80,000 mark. During an event, Bhavish Aggarwal had said that the company wants to compete not just with EVs but the top ICE makers such as Honda and <keyword id="20032993" type="General" weightage="20" keywordseo="suzuki" source="keywords">Suzuki</keyword>. For context, Ola Electric sold 32,160 scooters in January 2024 while Honda sold 1,73,760 units of the Activa during the same period. <cmsannotation type="cmsannotation" annotationid="Ola Electric vs other EVs" comment="subhead" text="Ola Electric vs other EVs">Ola Electric vs other EVs</cmsannotation> The Ola S1 X+ which is currently priced at ₹84,999 and the Ola S1 Air, priced at ₹1,04,999 take on the Ather 450S electric scooter, which is currently available at ₹1,09,999. Interestingly, the Ola S1 Pro has now become the most affordable option in the premium electric scooter segment. The Ola S1 Pro, which is priced at ₹1,29,999 takes on the <keyword id="20036540" type="General" weightage="20" keywordseo="tvs" source="keywords">TVS</keyword> iQube S priced at ₹1,40,025, the Ather 450X which is priced at ₹1,68,000 and the Bajaj Chetak which is priced at ₹1,44,463. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/webstories/retro-turned-electric-after-chetak-kinetic-luna-also-gets-a-new-lease-of-life/slidelist/107523076.cms">Retro turned electric – After Chetak, Kinetic Luna also gets a new lease of life</a> <a href="https://www.businessinsider.in/business/auto/news/mg-comet-price-slashed-indias-most-affordable-ev-gets-cheaper/articleshow/107451916.cms">MG Comet price slashed – India’s most affordable electric car gets cheaper</a> <a href="https://www.businessinsider.in/business/auto/news/ola-electric-continues-to-lead-the-segment-in-electric-scooters-in-january-2024/articleshow/107424791.cms">Electric scooter sales grow 26% in January as Bajaj, Ather jostle behind TVS and Ola</a>

Ola Electric cuts prices of scooters to compete with ICE two-wheelers

<ul><li><keyword id="19580272" type="General" weightage="20" keywordseo="pay-as-you-drive" source="Orion">Pay-as-you-drive</keyword> <keyword id="6381626" type="General" weightage="20" keywordseo="motor-insurance" source="Orion">motor insurance</keyword> tailors insurance <keyword id="11929654" type="General" weightage="20" keywordseo="premiums" source="Orion">premiums</keyword> based on the distance driven rather than fixed flat premium. </li><li><keyword id="6359672" type="General" weightage="20" keywordseo="customers" source="Orion">Customers</keyword> choose a kilometre option based on average daily run, and the premium is computed accordingly. </li><li>Kilometres-based plans typically start with a limit of 2,500 kms a year </li></ul>Soumya Das, a Kolkata based professional has two cars, a Honda City which he and his wife uses for daily commute and a Maruti Jimny which he uses occasionally for off-roading trips. Should he pay the same insurance for both the cars? Insurance companies, in the bid to attract new clientele, are designing schemes to address this. Welcome to the world of pay-as-you-drive insurance where your insurance depends on how much you drive the car. While this concept has existed in more developed economies for some years now and is now making an entry in the Indian market. Under basic car insurance, the premium is classified under a single slab, irrespective of the driving and usage patterns of the users. However, the fact remains that there are many customers, who do not drive frequently, but need to pay a similar amount of premiums as the person with higher car usage. “To bridge this gap, the add-on cover of Pay-as-you-drive (PAYD) has been introduced, which tailors insurance premiums based on the distance driven rather than fixed flat premium,” says Parthanil Ghosh, president, retail business, HDFC ERGO General Insurance Company. “This is a breakthrough in motor insurance given that a huge number of people, especially those living in metros, working in corporates/jobs, hardly take out their cars, use more of public transport and taxis, therefore are at lower risk of damage/accidents,” says Vivek Chaturvedi, CMO, head direct sales, Digit General Insurance. <cmsannotation type="cmsannotation" annotationid="Subhead" text="So, how does the PAYD cover work?">So, how does the PAYD cover work?</cmsannotation> Customers choose a kilometre option based on average daily run, and the premium is computed accordingly. Third-party coverage is annual, and own damage coverage ceases once the kilometre limit lapses. Customers can top up kilometres by paying an additional premium. “A policyholder who primarily uses public transport or works from home pays premiums based on limited car usage, leading to substantial cost savings compared to traditional flat-rate premiums.” says Neel Chheda, senior executive vice president and head- auto and actuarial analytics, Tata AIG General Insurance Company. Kilometres-based plans typically start with a limit of 2500 kilometres per year, with additional slabs like 5000, 7500, 10000, and so on. “Customers choosing a 2500 km plan receive coverage up to that limit from the policy start date, and in case a customer feels that they are about to exhaust their kilometers, they can purchase additional kilometers during the policy based on their requirement. Lower kilometer slab plans come with higher additional discounts, while higher km slab plans have lower additional discounts,” says Nitin Kumar, head, motor insurance, Policybazaar.com. For example, if a customer is driving, say, less than 6,000 kilometres per year, other parameters remaining the same, they will pay a lesser premium than a customer who drives say more than 10,000 kilometres per year. The PAYD add-on ensures that policyholders are not charged a substantial premium based on the car's make and model. Instead, the payment is determined by the frequency of the vehicle's usage. How does the car company keep track? “We have an OBD device that is linked to the mobile phone that captures the data of the vehicle and is linked to our system. Otherwise it is purely based on the odometer reading at the time of the claim,” says T A Ramalingam, T A Ramalingam, Chief Technical Officer, Bajaj Allianz General Insurance. <cmsannotation type="cmsannotation" annotationid="Saving on premiums" comment="Subhead" text="Saving on premiums">Saving on premiums</cmsannotation> The amount of savings with PAYD insurance depends on factors such as the vehicle's make, model, age, and place of registration and also the number of kilometres it is driven in a year. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td colspan="2" style="border-bottom:solid #000000 0.75pt;vertical-align:bottom;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Snapshot of the benefits </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mileage Band </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Benefits that can be claimed on basic own damage premium </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#f3f3f3;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">0-2,500 kms </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#f3f3f3;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">25% </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#f3f3f3;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,501-5,000 kms </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#f3f3f3;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">17.50% </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#f3f3f3;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">5,001-7,500 kms </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#f3f3f3;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#f3f3f3;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7,501-10,000 kms </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:top;background-color:#f3f3f3;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">5% </td></tr></tbody></table> *PAYD policy with HDFC Ergo

Pay-as-you-drive: If you drive less, you can get a discount on your insurance premium

<ul><li>Sector watchers anticipate robust double-digit year-over-year revenue growth for most 4-wheeler companies </li><li>Analysts are optimistic about <keyword id="42747" type="General" weightage="20" keywordseo="tata-motors" source="Orion">Tata Motors</keyword>’ profit margins due to strong JLR sales. </li><li>Sales volumes of two-wheelers (2W) have experienced a slight year-on-year decline. </li></ul>The <keyword id="46265" type="General" weightage="20" keywordseo="auto-sector" source="Orion">auto sector</keyword> has been recovering, albeit slowly, after the pandemic. The second quarter of the current financial year (FY2024) saw wholesale trends exhibit a mixture of outcomes, with most segments experiencing an increase in sales volumes. Three-wheeler (3W) sales showed a significant year-on-year (Y-o-Y) recovery, while passenger vehicles (PV) saw growth in the mid-single digits, according to the India Autos report by BNP Paribas. However, sales volumes of two-wheelers (2W) experienced a slight year-on-year decline. A closer look at retail volume market share shows that in the 2W segment, <keyword id="6359783" type="General" weightage="20" keywordseo="bajaj-auto" source="Orion">Bajaj Auto</keyword> lost 2.3 percentage points in market share when compared to the same period the year before, while Honda Motorcycle &amp; Scooter India lost 0.9% market share. Meanwhile TVS Motor Company and Suzuki gained market share by 1.7 and 1.1 percentage points respectively in the same time period. In the PV segment, <keyword id="50805" type="General" weightage="20" keywordseo="mahindra-and-mahindra" source="Orion">Mahindra and Mahindra</keyword>, Toyota and <keyword id="44883" type="General" weightage="20" keywordseo="maruti-suzuki" source="Orion">Maruti Suzuki</keyword> India gained market share of 1.6, 1 and 1 percentage points respectively year-on-year, while Tata Motors and Kia lost market share by 0.6 and 1.1 percentage points respectively. Experts anticipate robust double-digit year-over-year revenue growth for most companies, with the exception of Bajaj Auto and Hero MotoCorp Limited. Substantial volume growth in the last quarter has been observed, except for the 2W segments, which has allowed them to take advantage of operational efficiency and a favourable product mix. <cmsannotation type="cmsannotation" annotationid="Analysts are optimistic about Tata Motors’ profit margins" comment="Subhead" text="Analysts are optimistic about Tata Motors’ profit margins">Analysts are optimistic about Tata Motors’ profit margins</cmsannotation> Analysts at BNP Paribas are optimistic about Tata Motors' profit margins due to strong Jaguar Land Rover (JLR) sales. In regards to other companies, they expect mixed or in-line results when compared to consensus expectations. The analysts take a pessimistic stance on the two-wheeler (2Ws) sector, citing expectations of persistently low growth, subdued festive seasons, the disruptive influence of electric vehicles (EVs), and heightened competition that could negatively impact the sector's profitability. However, they express preference for passenger vehicle original equipment manufacturers (OEMs) such as Maruti Suzuki, Mahindra and Mahindra, as well as globally-oriented companies like Tata Motors. These companies are better positioned to achieve sales growth and maintain healthy margins during the economic upswing, particularly due to their disciplined pricing strategies. Price targets (TPs) for select stocks have been increased, taking into account the shift in their valuation basis to September 2024, recent demand trends, and the inclusion of valuation related to Hero MotoCorp's (HMCL) financing subsidiary. They highlight that Maruti remains their top choice among the investments. <cmsannotation type="cmsannotation" annotationid="Expectations for different automakers" comment="Subhead" text="Expectations for different automakers">Expectations for different automakers</cmsannotation> <cmsannotation type="cmsannotation" annotationid="Maruti Suzuki" comment="Subhead" text="Maruti Suzuki">Maruti Suzuki</cmsannotation> For Maruti Suzuki , analysts recommend a "BUY" with a target price set at ₹13,000, while the current price is at ₹12,700. This is based on a price-to-earnings (P/E) ratio of 29 times the estimated earnings per share (EPS) for September 2025. The target multiple remains the same, but it has been adjusted for the next quarter. The target multiple is based on the five-year average next twelve months (NTM) P/E, as per Bloomberg consensus estimates, to account for a gradual recovery in the demand cycle. The target price has increased due to the forward adjustment in valuation. <cmsannotation type="cmsannotation" annotationid="Mahindra &amp; Mahindra" comment="Subhead" text="Mahindra &amp; Mahindra">Mahindra &amp; Mahindra</cmsannotation> For Mahindra &amp; Mahindra, the recommendation is a "BUY" with a target price of ₹1,905 (current price: ₹1,930). The valuation includes a sum-of-the-parts (SoTP) approach, with a target multiple similar to that of Escorts for the Farm Equipment Sector (FES). In the automotive sector, the target multiple is also unchanged and rolled forward by a quarter. A holding company discount of 10% is applied, similar to Escorts. However, there's a 20% discount compared to peers Maruti Suzuki (MSIL) and Ashok Leyland (AL) due to concerns about automotive market share loss. The target price has slightly decreased due to earnings estimate cuts offsetting the roll-forward of the valuation. <cmsannotation type="cmsannotation" annotationid="Bajaj Auto" comment="Subhead" text="Bajaj Auto">Bajaj Auto</cmsannotation> For Bajaj Auto, the recommendation is "HOLD" with a target price of ₹4,900 (current price: ₹4,600). The valuation is based on a sum-of-the-parts (SoTP) approach using a 16x target multiple for Bajaj Auto's internal combustion engine (ICE) business in September 2025. The Electric Vehicle (EV) business is valued at 2.3x the estimated EV revenue for the same period. The target multiple for EV aligns with global EV companies' market cap/revenue multiples for December 2025. The target price has risen due to higher earnings estimates and a valuation base shift. Additionally, the value of Bajaj's stake in Pierer Bajaj AG, with holdings in PIERER Mobility AG, is included in the assessment. <cmsannotation type="cmsannotation" annotationid="Tata Motors" comment="Subhead" text="Tata Motors">Tata Motors</cmsannotation> Tata Motors gets a "BUY" recommendation with a target price of 770, mirroring the current price. The valuation relies on a sum-of-the-parts (SoTP) method, averaging various valuation methods, such as EV/Sales, EV/EBITDA, EV/EBIT, and P/E ratios. The multiples remain the same, but the valuation base is extended by a quarter. Different valuation multiples are applied to segments like JLR, China JV, Passenger Vehicles (PV), and Commercial Vehicles (CV), considering their estimated sales, EBITDA, EBIT, and EPS for September 2025. These multiples are benchmarked against similar companies, with target multiples discounted by 20% for JLR and China JV, and 50% for CV and PV. The Electric Vehicle (EV) business valuation is based on the last funding round average with a 30% discount, and the target price remains unchanged.

PV sales to shift gears courtesy festive season but 2-wheelers’ struggles to continue

<ul><li>Car makers have announced several year-end offers to attract customers as 2023 comes to an end.</li><li>Maruti Suzuki, Hyundai, Volkswagen and others are among the companies that have announced discounts.</li><li>In this post we look at some of the best year end offers announced by car companies.</li></ul>The year 2023 is about to end and car makers have started offering their annual year-end discounts to offload their existing stock and gear up for 2024. Companies like Maruti Suzuki, Hyundai, Mahindra, Volkswagen and others have announced attractive discounts and exchange offers on their cars. The discounts and the upcoming price hike in January, make it a great time to purchase a car right now if you are in the market for one. You can read this<a href="https://www.businessinsider.in/business/auto/news/car-and-suv-prices-set-to-rise-in-january-2024-should-you-buy-one-in-december/articleshow/105556415.cms"> story</a> to understand whether you should purchase a car in December or not. As per dealer checks, let’s look at the discounts on cars being offered by different companies – <cmsannotation type="cmsannotation" annotationid="Maruti Suzuki" comment="subhead" text="Maruti Suzuki">Maruti Suzuki</cmsannotation> Maruti Suzuki, India’s biggest automaker has announced offers across several cars, including the Jimny, Fronx, Grand Vitara and more. Jimny has received the highest discount from the company. The five-door Jimny is being offered with a discount of up to ₹2.21 lakh, less than a year after its launch. The company has introduced a special Thunder edition of the car, which is available at a discounted price. Apart from this, the Fronx SUV has also received an ₹25,000 offer – a ₹15,000 cash discount and ₹10,000 worth of exchange bonus. Baleno, the company’s popular hatchback has received a cash discount of ₹30,000 and an exchange bonus of ₹10,000. The Grand Vitara gets the same cash discount of ₹15,000 as the Fronx, but the exchange bonus has been bumped up to ₹15,000. The more affordable Ignis has received a huge cash discount of ₹40,000 and an additional exchange bonus of ₹15,000. <cmsannotation type="cmsannotation" annotationid="Hyundai" comment="subhead" text="Hyundai">Hyundai</cmsannotation> South Korean automaker Hyundai has also announced year-end offers for its cars. The company’s affordable Grand i10 Nios is available with benefits of up to ₹45,000 – including a cash discount of up to ₹35,000 and an exchange bonus of up to ₹10,000. The popular i20 and i20 N-Line hatchbacks have received a discount of up to ₹50,000. The Sportz variant of the car has received a discount of ₹35,000. The older i20 N-Line variant is being offered with a cash discount of ₹50,000. If you are looking for a premium option, the Tucson SUV is being offered with a cash discount of ₹1.5 lakh for the diesel variant. <cmsannotation type="cmsannotation" annotationid="Mahindra" comment="subhead" text="Mahindra">Mahindra</cmsannotation> Indian carmaker Mahindra has also announced attractive discounts on its line-up. The Mahindra XUV400, the company’s electric offering has received a huge discount of up to ₹4.2 lakh. It is to be noted that the variants with ESC have received a discount of up to ₹3.2 lakh and cars without ESC will get a higher discount of up to ₹4.2 lakh. The Mahindra XUV300 on the other hand has been discounted by up to ₹1.78 lakh for the top-end variant. <cmsannotation type="cmsannotation" annotationid="Volkswagen" comment="subhead" text="Volkswagen">Volkswagen</cmsannotation> The Volkswagen Tiguan, the company’s premium offering has received a discount of up to ₹4.2 lakh, which includes a cash discount, exchange bonus, service packs and more. The Virtus sedan on the other hand is being offered with benefits of up to ₹1.17 lakh, which includes a cash discount of ₹50,000, exchange bonus of ₹20,000, a corporate discount of ₹17,000 and other special benefits worth ₹30,000. <cmsannotation type="cmsannotation" annotationid="Tata Motors" comment="subhead" text="Tata Motors">Tata Motors</cmsannotation> While Tata Motors has announced year-end offers yet, some of the company’s cars such as the older Nexon, the Altroz and certain variants of the Punch SUV are being offered with some cash discounts. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/car-and-suv-prices-set-to-rise-in-january-2024-should-you-buy-one-in-december/articleshow/105556415.cms">Car prices set to rise in January – Should you buy one in December?</a> <a href="https://www.businessinsider.in/business/auto/news/ola-electric-and-tvs-motor-leading-electric-two-wheeler-sales-in-nov-2023-month/articleshow/105719702.cms">Electric two-wheeler sales rise in Nov as Ola Electric scales a new high</a> <a href="https://www.businessinsider.in/tech/news/indias-pc-market-surges-to-4-5-million-devices-in-q3-2023/articleshow/105285251.cms">India’s PC market shipments surge in Q3 amidst import restrictions talks</a>

Maruti Suzuki to Hyundai – car makers offer huge year-end discounts to push sales

<ul><li>India’s auto sector could be looking at mixed performance in March, with some segments likely to clock better growth than others. </li><li>Passenger vehicles, one of the segments that have been driving sales in the past few months, could be looking at a flat March. </li><li>Commercial vehicles are expected to continue growing thanks to infrastructure-led demand seeing a healthy fleet utilisation in the medium to heavy commercial vehicles (MHCV) category. </li></ul>The Indian auto sector could be looking at mixed performance in March due to a combination of erratic rainfall dampening demand for light commercial vehicles (LCVs), and a moderation in demand for passenger vehicles (PVs) during the month, as observed by analysts at <keyword id="46252" type="General" weightage="80" keywordseo="motilal-oswal" source="Orion">Motilal Oswal</keyword>. The brokerage expects a slight uptick in demand for two-wheelers during the month on account of festivals and a low base of the previous year. However, concerns about weakness in the rural markets could drag down the overall numbers. Passenger vehicles, which were in the driver’s seat for a few months now, are expected to clock ‘flattish’ growth during March. “There has been some moderation in enquiries led by muted demand during ongoing festivals and persistent weakness in the rural market,” said the Motilal Oswal report. <cmsannotation type="cmsannotation" annotationid="Commercial vehicles to drive growth" comment="subhead" text="Commercial vehicles to drive growth">Commercial vehicles to drive growth</cmsannotation> The brokerage expects the commercial vehicle segment to drive growth in the auto sector in March. More specifically, the medium and heavy commercial vehicles segment is expected to register a 10-12% year-on-year rise in sales due to “healthy fleet utilisation driven by infra-led demand and pre-buying before OBD-2 transition.” On the other hand, the light commercial vehicle segment is expected to register a decline of 8-10%n due to erratic rainfall and subdued rural sentiments. Unseasonal rains could also weigh on tractor sales, which could decline 3-5% due to expectations of a low Rabi output. <cmsannotation type="cmsannotation" annotationid="Moderation in passenger vehicle sales: High interest rates hurt bookings" comment="subhead" text="Moderation in passenger vehicle sales: High interest rates hurt bookings">Moderation in passenger vehicle sales: High interest rates hurt bookings</cmsannotation> The entry-level segments have been hurting across the passenger vehicle and two-wheeler segments for a while now. So far, weak rural sentiments and elevated inflation were behind the weak performance of the entry-level segment, but now, analysts suggest high interest rates are also adding to the slowdown. “Moreover, rising interest rates have further hampered bookings for low-end models. Although the inventory level has increased to 25-30 days in March versus 20-25 days till February end, it has now come back to the normal level after three years,” the brokerage said. Sports utility vehicles (SUV) continue to be in demand, with waiting periods still being long. For instance, M&amp;M’s popular duo of SUVs, the Scorpio-N and XUV 700 have a waiting period of 3-10 months, and 2-5 months, respectively. The Thar, too, has a waiting period of nearly a month. <keyword id="42747" type="General" weightage="80" keywordseo="tata-motors" source="Orion">Tata Motors</keyword>’ Nexon, on the other hand, has a waiting period of 4-6 weeks. Despite a moderation in demand, discounts have been muted, the brokerage noted, adding that it expects M&amp;M’s sales to rise 16% year-on-year, while Tata Motors could see a modest 3% growth. Market leader <keyword id="44883" type="General" weightage="80" keywordseo="maruti-suzuki" source="Orion">Maruti Suzuki</keyword> is expected to report a 3% fall in dispatches. <cmsannotation type="cmsannotation" annotationid="Slight uptick in two-wheeler sales, but rural demand still weak" comment="subhead" text="Slight uptick in two-wheeler sales, but rural demand still weak">Slight uptick in two-wheeler sales, but rural demand still weak</cmsannotation> Two-wheeler sales have been struggling for a few months now and the pressure is expected to temper a bit during March, with a slight uptick resulting in a 4-6% YoY increase in retail sales, thanks to steady urban demand. However, erratic rains could dampen two-wheeler sales as well, with rural demand still remaining weak. “Overall sales are still down by 15-17% versus the pre-Covid level as rural demand remains weak,” the Motilal Oswal report added. The brokerage also witnessed a large variation in enquiries across states during festivals – while Gujarat, Delhi and Karnataka saw a 2-6% YoY increase in enquiries, UP, Bihar and Maharashtra reported a 4-8% decline. Market leader <keyword id="6357252" type="General" weightage="80" keywordseo="hero-motocorp" source="Orion">Hero MotoCorp</keyword> could see a 4% YoY decline in dispatches, while Bajaj Auto and <keyword id="46156" type="General" weightage="50" keywordseo="tvs-motor" source="Orion">TVS Motor</keyword> could see a 5% fall each. Royal Enfield, on the other hand, is expected to report yet another month of growth, with its dispatches expected to increase 10%. Overall, March could be a mixed bag for the Indian auto industry. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/reliance-industries-jsw-energy-hero-motocorp-among-stocks-in-focus/articleshow/99131742.cms">Sensex, Nifty50 rally on the last day of FY23: Reliance Industries, Nestle, Infosys, ICICI Bank and Tata Motors top gainers</a> <a href="https://www.businessinsider.in/stock-market/news/the-alpha-creators-bank-and-it-stocks-outperform-nifty50-in-the-last-11-years/articleshow/99114789.cms">The Alpha Creators: Bank and IT stocks outperform Nifty50 in the last 11 years</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>

No festive cheer for auto cos in March: PV sales ‘flattish’, 2Ws to see a slight uptick

<ul><li>MG Motor has announced a price cut for the <keyword id="20458037" type="General" weightage="20" keywordseo="comet-ev" source="keywords">Comet EV</keyword>, the company’s most affordable offering in the country.</li><li>The <keyword id="16682532" type="General" weightage="20" keywordseo="MG-Comet" source="Orion">MG Comet</keyword> has received a price cut of up to ₹1.4 lakh and is now available starting at ₹6.99 lakh.</li><li>The MG Comet is the most affordable electric car in the company’s lineup and here’s everything you need to know about the compact EV.</li></ul> MG Motor has announced a huge price cut for its compact electric car, the MG Comet EV in India. The<a href="https://www.businessinsider.in/business/auto/news/mg-comet-ev-two-door-electric-car-with-230-km-range-launched-in-india-check-out-price/slidelist/99779639.cms"> MG Comet</a> is the company’s most affordable electric car and is now even cheaper. The MG Comet, which was launched with a starting price of ₹7.98 lakh (ex-showroom) has received a price cut of up to ₹1.4 lakh, which differs based on the variant. The MG Comet is now available starting at ₹6.99 lakh (ex-showroom), making it the most affordable electric car in the country. <cmsannotation type="cmsannotation" annotationid="MG Comet EV new price" comment="subhead" text="MG Comet EV new price">MG Comet EV new price</cmsannotation> <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Variant </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">New price </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Old price </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Price cut </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Pace </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹6.99 lakh </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹7.98 lakh </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹99,000 </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Play </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹7.88 lakh </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹9.28 lakh </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1.4 lakh </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Plush </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹8.58 lakh </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹9.98 lakh </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1.4 lakh </td></tr></tbody><tbody></tbody><tbody></tbody></table> Ex-showroom prices With this price cut, the MG Comet has now become an attractive option for those looking for an affordable car. The Comet now undercuts the Tata Tiago EV by ₹1.7 lakh for the base variant, while offering premium interiors. The Tata Tiago EV is priced starting at ₹8.69 lakh (ex-showroom) for the base variant. It is to be noted that while the MG Comet EV offers a claimed range of 230 km on a single charge, the Tata Tiago EV is claimed to offer a slightly longer 250 km range. <cmsannotation type="cmsannotation" annotationid="MG Comet EV specifications" comment="subhead" text="MG Comet EV specifications">MG Comet EV specifications</cmsannotation> For those unaware, the MG Comet EV is a rebadged version of the Wuling Air EV that is sold in Indonesia. It comes with a boxy design with two doors while offering a seating capacity of four people. The MG Comet EV is equipped with a 17.3kWh battery pack and provides a range of up to 230 km on a single charge. It can be charged from 0 to 80% in 5.5 hours and a full charge from 0 to 100% takes 7 hours. The MG Comet EV is equipped with a permanent magnet synchronous motor that can generate 42 PS of power and 110 Nm of peak torque. The compact EV comes with twin 10.25-inch floating displays, a digital key, keyless entry, reverse parking camera, Android Auto, Apple CarPlay, and more. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/tablet-shipments-hit-a-12-year-low-declining-by-over-20-in-2023/articleshow/107447670.cms">Tablet shipments hit a 12-year low declining by over 20% in 2023</a> <a href="https://www.businessinsider.in/business/auto/news/ola-electric-continues-to-lead-the-segment-in-electric-scooters-in-january-2024/articleshow/107424791.cms">Electric scooter sales grow 26% in January as Bajaj, Ather jostle behind TVS and Ola</a> <a href="https://www.businessinsider.in/tech/mobile/news/indian-smartphone-market-flat-in-2023-after-q4-boost-apple-crosses-10-million-mark/articleshow/107419298.cms">Indian smartphone market flat in 2023 after Q4 boost; Apple crosses 10 million mark</a>

MG Comet price slashed – India’s most affordable electric car gets cheaper

<ul><li>The Indian electric two-wheeler industry recorded its best-ever month in March 2024.</li><li>The sales of electric two-wheelers reported a growth of over 60% year-on-year.</li><li>Ola Electric recorded its highest-ever sales in March 2024 and emerged as the leader in FY24.</li></ul> The Indian electric two-wheeler industry has reported its best-ever month in terms of sales in March 2024, crossing the 1 lakh mark for the second time. This comes as the FAME (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India) subsidy ended at the end of the financial year. The electric two-wheeler industry recorded sales of 1,39,288 vehicles in March 2024, up from 86,358 vehicles sold in March 2023, marking over 61% year-on-year growth. In addition to companies offering year-end discounts to boost sales, this was also fuelled by the FAME subsidy scheme coming to an end in March 2024. <cmsannotation type="cmsannotation" annotationid="EMPS replaces the FAME Scheme" comment="subhead" text="EMPS replaces the FAME Scheme">EMPS replaces the FAME Scheme</cmsannotation> The popular FAME subsidy scheme, which offered subsidies to electric vehicles to boost their adoption has come to an end. This has been replaced by the new Electric Mobility Promotion Scheme (EMPS) 2024, which was announced during the<a href="https://www.businessinsider.in/finance/news/interim-budget-2024-speech-updates-and-highlights/articleshow/107313296.cms"> interim budget</a> in February and is valid for four months from April 2024. The EMPS 2024 scheme, which kicked off on April 1, 2024, is valid till July 31, 2024. As part of the scheme, the subsidy on electric two-wheelers has been set at INR 5,000 per kilowatt-hour of battery capacity with a capping of INR 10,000 per vehicle. This is lower than what was earlier offered with the FAME scheme. This has led to an increase in the prices of electric scooters and is something which the companies have been advertising for the last few weeks to push the sales before the FAME Scheme ends. <cmsannotation type="cmsannotation" annotationid="Ola Electric crosses the 50K mark" comment="subhead" text="Ola Electric crosses the 50K mark">Ola Electric crosses the 50K mark</cmsannotation> Ola Electric, which has been leading the electric two-wheeler segment in India for a while now recorded its highest-ever monthly sales at 50,545 vehicles, crossing the 50K mark for the first time. The company had sold 33,923 vehicles in February 2024. Coming to FY24, Ola Electric has ended the year with sales of 3,26,428 vehicles, becoming the first company to cross the 3-lakh mark. The company had sold 1,72,791 vehicles in FY23 and reported a growth of nearly 90%. The company currently commands a 35% market share in the Indian electric two-wheeler segment, up from its 24% market share in FY23. <cmsannotation type="cmsannotation" annotationid="TVS Motor comes in second" comment="subhead" text="TVS Motor comes in second">TVS Motor comes in second</cmsannotation> TVS Motor recorded its best-ever monthly sales of 26,478 vehicles in March 2024 to take its FY24 sales to 1,82,933 vehicles, up from 82,108 vehicles sold in FY23, recording a growth of over 122%. With this, the company commanded a market share of nearly 20% in FY24, up from 19.4% in FY23. <cmsannotation type="cmsannotation" annotationid="Ather Energy beats Bajaj Auto for the third position" comment="subhead" text="Ather Energy beats Bajaj Auto for the third position">Ather Energy beats Bajaj Auto for the third position</cmsannotation> Ather Energy, which has been facing tough competition from TVS Motor and Bajaj Auto has emerged as the third biggest player in FY24 with sales of 1,08,870 vehicles, up from 76,939 vehicles in FY23, registering a growth of over 40%. The company recorded a market share of 12% in FY24, up from 10.6% in FY23. However, the company lost the third position to Bajaj Auto when it comes to March 2024 despite recording its highest-ever monthly sales. Ather sold 17,221 vehicles in March 2024. Ather is all set to launch the<a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-and-two-wheelers-launching-in-india-in-april-2024/slidelist/108869757.cms#slideid=108869815"> Rizta</a>, a family electric scooter at its community event on April 6 in Bengaluru. Rizta is expected to help the company take on the iQube and the Chetak. <cmsannotation type="cmsannotation" annotationid="Bajaj Auto takes the fourth position" comment="subhead" text="Bajaj Auto takes the fourth position">Bajaj Auto takes the fourth position</cmsannotation> Bajaj Auto, which sells the Chetak electric scooter has emerged as the fourth biggest player in FY24. The company sold 1,06,431 scooters in FY24, up from 28,357 scooters in FY23, clocking a growth of 275%, the highest in the industry. With this, the company commanded a market share of 11.3% in FY24, up from 4% in FY23. The company sold 17,933 scooters in March 2023, putting it slightly ahead of Ather Energy for the sixth consecutive month. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/hyundai-retakes-the-second-spot-from-tata-motors-records-its-highest-ever-sales/articleshow/108962655.cms">Hyundai retakes the second spot from Tata Motors, records its highest-ever sales</a> <a href="https://www.businessinsider.in/tech/news/hp-omen-transcend-14-review/articleshow/108980896.cms">HP Omen Transcend 14 review – a feature-packed, lightweight gaming laptop with excellent display</a> <a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-and-two-wheelers-launching-in-india-in-april-2024/slidelist/108869757.cms">Upcoming cars and two-wheelers launching in India in April 2024</a>

India’s electric two-wheeler industry records highest-ever monthly sales as FAME subsidy ends

<ul><li>Indian auto companies are looking at mixed demand momentum after making merry post the festive season boost in October.</li><li>The festive boost last month lifted the number of registrations across the passenger vehicles (PV), commercial vehicles (CV) and tractors segments in the range of 35-66% when compared to October 2019.</li><li>However, PV sales are off to a slow start in the marriage season in November, despite an increase in discounts.</li><li>Two-wheeler registrations are also still below pre-Covid levels, but the urban markets are driving the demand for scooter and premium motorcycles, say analysts.</li></ul>Indian auto companies are looking at mixed demand momentum after making merry post the festive season boost in October. Retail data suggests that trends remain mixed across segments like two-wheelers, passenger vehicles, and commercial vehicles. The<a href="https://www.businessinsider.in/business/auto/news/indian-car-makers-drive-the-festive-boom-two-wheelers-showing-signs-of-revival/articleshow/95257140.cms"> festive boost in October</a> lifted the number of registrations across the passenger vehicles (PV), commercial vehicles (CV) and tractors segments in the range of 35-66% when compared to October 2019, according to a report by Jefferies. While the marriage season has set in now, a report by Yes Securities states that passenger vehicles are off to a slow start in November despite an increase in discounts compared to October. Commercial vehicles are also seeing an increase in inventories across companies, the report stated, adding “Large fleet operators have staggered their delivery schedules while retail customers' contribution is yet to come in full swing.” <cmsannotation type="cmsannotation" annotationid="Two-wheeler registrations still below pre-Covid levels" comment="subhead" text="Two-wheeler registrations still below pre-Covid levels">Two-wheeler registrations still below pre-Covid levels</cmsannotation> Two-wheeler registrations are still below pre-Covid levels, with Hero MotoCorp and TVS Motors expected to report a sequential decline in sales in the range of 14.2-17.9%, according to Yes Securities. In October, an Elara Securities<a href="https://www.businessinsider.in/business/auto/news/indian-car-makers-drive-the-festive-boom-two-wheelers-showing-signs-of-revival/articleshow/95257140.cms"> report</a> stated that Hero MotoCorp reported a 17% decline in its overall sales, while Bajaj Auto reported a 10% decline. The only gainer was TVS Motors, which reported a 1.5% increase year-on-year. Now, according to Yes Securities, overall two-wheeler retail sales could decline between 5-8% in November when compared to October. On a year-on-year basis, though, it notes that there could be flat to high-single digit growth. “Compared to the past few months, 2W demand saw some bounce back during this festive season. However, the registrations were far from reaching the pre-pandemic levels in 2019,” said Nikunj Sanghi, former president, Federation of Automobile Dealers Associations of India (FADA). <cmsannotation type="cmsannotation" annotationid="Marriage season off to a slow start, SUVs perform relatively better" comment="subhead" text="Marriage season off to a slow start, SUVs perform relatively better">Marriage season off to a slow start, SUVs perform relatively better</cmsannotation> The Yes Securities report observes that the trend of entry-level cars struggling has continued through November. Additionally, hatchbacks are also seeing a slow uptake from customers. Sports utility vehicles (SUV), on the other hand, are seeing relatively better demand. However, companies are still facing supply chain issues, which is hampering their overall sales. “PVs are still facing supply challenges in premium variants impacting overall model mix at retail level,” the report stated. <cmsannotation type="cmsannotation" annotationid="Higher discounts on entry-level cars as inventory builds up" comment="subhead" text="Higher discounts on entry-level cars as inventory builds up">Higher discounts on entry-level cars as inventory builds up</cmsannotation> Car makers are now offering higher discounts on entry-level cars as they attempt to reduce the inventory build-up, which has now increased to over 15 days, according to the Yes Securities report. For instance, <keyword id="44883" type="General" weightage="20" keywordseo="Maruti-Suzuki" source="Orion">Maruti Suzuki</keyword> has increased discounts in the range of ₹5,000-10,000, while Tata Motors is offering up to ₹10,000-15,000 more discounts in November, when compared to October. Overall, Maruti Suzuki, Tata Motors, and Mahindra &amp; Mahindra are offering discounts and benefits in the range of ₹28,000-65,000, depending on the car being bought. <cmsannotation type="cmsannotation" annotationid="Rural recovery signs visible" comment="subhead" text="Rural recovery signs visible">Rural recovery signs visible</cmsannotation> Rural India, a critical market especially for two-wheeler and tractor makers, is showing signs of a recovery, according to analysts at Motilal Oswal. “Rural recovery resulted in a healthy 26% and 30% YoY growth in 2W and tractor retails during festive season, respectively, even as secondary 2W dealers (mainly non-urban) saw strong demand revival,” the research firm said. The firm noted that despite the demand revival in the festive season, “full normalcy is yet to be achieved.” It added that urban markets continue to see better demand than rural markets, which reflects in the scooter and premium motorcycle segments’ growth. For instance, Royal Enfield’s Hunter 350, a premium motorcycle, has seen its waiting period increase from 1 month to 2.5-3 months, with dealer confidence seeing a sharp increase. “Channel partners we spoke to are indicating high confidence post launch of Hunter with their volumes are ~15% lower than FY18 levels but are back to FY19 levels,” the Yes Securities report stated. <cmsannotation type="cmsannotation" annotationid="Tighter cash flows and slower uptake leading to inventory build-up of trucks" comment="subhead" text="Tighter cash flows and slower uptake leading to inventory build-up of trucks">Tighter cash flows and slower uptake leading to inventory build-up of trucks</cmsannotation> Commercial vehicles like trucks continue to witness an inventory build-up, with the key market of the northern belt witnessing under-utilisation, according to Yes Securities. Making matters worse and adding to the uncertainty is the ban on construction activities in the Delhi-NCR region, and schools being shut due to pollution. This has impacted the demand for both buses and trucks, according to analysts. According to Yes Securities, tighter cash flows due to an increase in working capital requirements, customers have delayed delivery plans of booked vehicles, adding to the build-up of inventories. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/indian-car-makers-drive-the-festive-boom-two-wheelers-showing-signs-of-revival/articleshow/95257140.cms">Indian car makers drive the festive boom, two-wheelers showing signs of revival</a> <a href="https://www.businessinsider.in/stock-market/news/a-year-after-market-debut-paytm-is-the-worst-performer-among-recent-large-ipos-cartrade-policybazaar-and-lic-join-the-party/articleshow/95762071.cms">A year after market debut, Paytm is the worst performer among recent large IPOs – Cartrade, Policybazaar and LIC join the party</a> <a href="https://www.businessinsider.in/stock-market/news/india-vix-cools-down-to-pre-covid-levels-heres-why-and-where-it-is-headed/articleshow/95743166.cms">India VIX cools down to pre-Covid levels – here’s why and where it is headed</a>

You Searched For "tata motors discount" and got 11 results

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