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The <keyword id="21572647" type="General" weightage="20" keywordseo="Indian-auto-retail-sector" source="keywords">Indian auto retail sector</keyword> recorded a robust 27 per cent year-on-year (YoY) growth for April 2024, according to Federation of Automobile Dealers Associations (<keyword id="20108734" type="General" weightage="20" keywordseo="FADA" source="keywords">FADA</keyword>) <keyword id="21572648" type="General" weightage="20" keywordseo="vehicle-retail-data" source="keywords">Vehicle Retail Data</keyword>. The report highlights positive market sentiments, driven by stable fuel prices, a positive monsoon outlook, festive demand, and the marriage season. According to FADA President Manish Raj Singhania, the <keyword id="19948209" type="General" weightage="20" keywordseo="two-wheeler" source="keywords">two-wheeler</keyword> (2W), three-wheeler (3W), <keyword id="20163833" type="General" weightage="20" keywordseo="passenger-vehicle" source="keywords">passenger vehicle</keyword> (PV), tractor (Trac), and <keyword id="20032571" type="General" weightage="20" keywordseo="commercial-vehicle" source="keywords">commercial vehicle</keyword> (CV) segments witnessed growth. Singhania said, "In April 2024, the Indian <keyword id="21572646" type="General" weightage="20" keywordseo="auto-retail-sector" source="keywords">Auto Retail sector</keyword> achieved a robust 27 per cent YoY growth. The two-wheeler (2W), three-wheeler (3W), passenger vehicle (PV), tractor (Trac) and commercial vehicle (CV) segments grew by 33 per cent, 9 per cent, 16 per cent, 1 per cent, and 2 per cent, respectively. While some attribute this growth to the shift in Navratri to April instead of March last year, the overall increase was significant. Comparing combined March and April 2024 with the same period last year shows a 14 per cent YoY growth for the entire industry." Singhania attributed this growth partly to the shift in Navratri to April from March last year, but noted that the overall increase was significant. When comparing combined March and April 2024 with the same period last year, the industry recorded a 14 per cent YoY growth. In the two-wheeler segment, significant growth was driven by improved supply and increasing demand for 125cc models. Positive market sentiments, supported by stable fuel prices and a favorable monsoon outlook, contributed to this rise. New model launches also played a role in driving growth, despite some delays in supply. The passenger vehicle category experienced double-digit YoY growth, aided by enhanced model availability and positive market sentiments, particularly around festive events like Navratri and Gudi Padwa. Despite strong bookings and customer flow, challenges such as high competition, excess supply, and discounting posed hurdles for sustained growth. Additionally, the lack of new models in some portfolios impacted market traction. The commercial vehicle segment showed a modest 2 per cent YoY growth and a 0.6 per cent month-on-month (MoM) decline, indicating varied market conditions. Positive momentum was found in bulk and corporate deals, as well as school bus demand, although elections dampened sentiment, leading customers to delay expansion plans. Limited finance options and regional challenges, such as water scarcity, further impacted performance. Looking ahead to May 2024, several positive indicators are shaping the near-term outlook. Improved vehicle supply and strategic planning in the two-wheeler segment have led to rising customer bookings and better market sentiment. In the passenger vehicle segment, new model launches and favorable monsoon forecasts are expected to stimulate customer interest. Challenges remain, with election uncertainty affecting market sentiment and financial constraints posing growth hurdles. Extreme temperatures and overcapacity in the commercial vehicle segment could further slow growth. Despite these challenges, the auto industry remains cautiously optimistic, with market opportunities arising from rising customer interest in new models. Monitoring election-related uncertainty and financial constraints will be crucial for navigating the evolving market effectively. 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Indian auto retail sector records 27% YoY growth in April: FADA

<ul><li>Overall <keyword id="46211" type="General" weightage="90" keywordseo="auto-sales" source="Orion">auto sales</keyword> decline 12.6% year-on-year in October, but sales surpass highs of 2017 <keyword id="48284" type="General" weightage="50" keywordseo="navratri" source="Orion">Navratri</keyword> by 18% in 2023, shows <keyword id="354719" type="General" weightage="80" keywordseo="fada" source="Orion">FADA</keyword> data.</li><li>The <keyword id="163191" type="General" weightage="60" keywordseo="two-wheeler-sales" source="Orion">two-wheeler sales</keyword> are up 15% in the same period. Strong rural demand and higher liquidity during elections to support demand in coming months.</li><li>The commercial vehicle segment experienced robust bookings and a positive uptake in retail sales, buoyed by festive cheer and strategic price support.</li></ul>Retail auto sales in October grew by a healthy 13% month-on-month but declined 12.6% year-on-year, according to data released by the Federation of Automobile Dealers Associations. Even though a like to like comparison is not correct as the first half of the month of October fell during the inauspicious Sharddh period. However, auto sales during the Navratri of 2023 have surpassed the peak sales seen during 2017 by 18%. While bookings portray a healthy trend, FADA has expressed concerns about the build up of inventory in the passenger vehicle segment, which now stands between 63-66 days. Commenting on October retail sales data, FADA President, Manish Raj Singhania, said: "The month commenced under the shadow of the inauspicious Shraddh period, persisting until the 14th. Consequently, a YoY comparison may not accurately reflect the actual trajectory of growth in the Indian Auto Retail sector. When compared month-on-month, auto retail sales flourished, achieving a 13% increase, with contributions from all categories. Two-wheelers, three-wheelers, passenger vehicles, tractors, and commercial vehicles expanded by 15%, 2%, 7%, 15%, and 10%, respectively, underscoring the sector's robust growth momentum.” The road ahead may be a tad slippery for passenger vehicles. A survey done by the industry association shows that the passenger vehicle segment is going through a tricky phase. While there may be a spike of bookings during the festive days, the shadow of year-end discounts looms over immediate sales. High inventory levels in PVs, at a critical 63-66 days range, demand urgent attention from OEMs. <div type="image" title="FADA Oct" msid="105005299" hostid="261" sizebytes="68292" caption="&amp;lt;p&amp;gt;&amp;lt;em&amp;gt;Data from F&amp;lt;/em&amp;gt;ADA October report&amp;lt;/p&amp;gt;"></div> The association has said that without substantial interventions and if Diwali sales don't rise to the occasion, the weight of unsold stock could lead to significant dealer distress, echoing FADA's concerns for potential industry-wide repercussions. Immediate and decisive action is imperative to counter the risk of a financial squeeze as the year closes. Despite the concerns expressed by dealers across India, the month of October has shown some positive signs. The two-wheeler category during the Navratri period holds promise as sales were buoyed by festive cheer and stronger rural demand. Enhanced availability of models, especially those in high demand from the previous year, along with better financial schemes, contributed to a solid market momentum. States going into elections also injected optimism into the market, leading to an increase in government spending and improved liquidity. Despite a shift in festival dates, with Diwali moving to November, the anticipation of the festive season stimulated purchase intent and dealers reported good stock preparation and robust ground efforts that led to an uptick in sales figures, showcasing a resilient and adaptive market. The 3W segment continued the uptick in demand during Navratri, largely driven by competitive finance options and a significant rise in e-Rickshaw interest, signalling a healthy move towards electrification. October continued this positive trend with robust market sentiments and festive celebrations contributing to increased customer bookings. The commercial vehicle segment experienced robust bookings and a positive uptake in retail sales, buoyed by festive cheer and strategic price support from manufacturers. The demand for light and small commercial vehicles surged, driven by infrastructure development activities and the need for vehicle replacement. Healthy demand was witnessed especially in segments like cement, iron ore and coal transport. The festive seasons, including Navratri, catalysed market activity, with customers taking advantage of favourable finance schemes. The PV segment navigated a complex landscape, marked by both enthusiasm and caution. During Navratri, despite regional variability, the industry witnessed a surge in bookings, buoyed by the introduction of compelling new models, particularly SUVs and the availability of attractive consumer offers. However, the impact of local elections and market saturation meant that the festive spirit didn't translate uniformly into sales across all regions. Throughout the month, the anticipation for Diwali in November and the launch of new models generated a steady demand. The period overall saw a resilient PV market, supported by a stronger product line-up unlike last year, when stock availability was a major issue."

Retail auto sales up 13% MoM in October, but high inventory levels in PV a concern

<ul><li>Improved customer sentiment and competitive pricing are expected to play crucial roles in driving vehicle sales. </li><li>The two-wheeler segment has seen a demand boost, especially in rural areas, thanks to attractive promotions. </li><li>The <keyword id="762866" type="General" weightage="20" keywordseo="passenger-vehicle" source="Orion">passenger vehicle</keyword> (PV) category has enjoyed a resurgence with improved vehicle availability and the introduction of new models. </li></ul>As the festive season is upon us, there is a sense of eager anticipation and excitement that is sweeping through the automotive industry. In the two-wheeler (2W) segment, while the initial part of the month might be relatively quiet due to the observance of the Shraddh period, upcoming festivals like Durga Puja and Navratri are poised to inject a renewed energy into the sales environment, as per Vehicle Retail Data for Sep 2023 released by the Federation of Automobile Dealers Associations (FADA). The uptick in demand is supported by improved customer sentiment and competitive pricing strategies, both of which are expected to play a crucial role in driving sales. Additionally, the introduction of new models into the market is set to further enhance the overall optimism. In the passenger vehicle (PV) sector, the market is also poised to witness a sales boost during the festive season. This is fueled by the launch of new products, improved availability of popular models, and the continued success of recently introduced vehicles. Similarly, in the <keyword id="47608" type="General" weightage="20" keywordseo="commercial-vehicle" source="Orion">commercial vehicle</keyword> (CV) sector, the conclusion of the monsoon season brings with it the prospect of a resurgence in infrastructure projects and the transportation of essential goods. This anticipated increase in demand is expected to strengthen the market. The availability of a wider range of vehicles and attractive financing options is likely to facilitate bulk purchases, adding to the positive outlook in this segment. <cmsannotation type="cmsannotation" annotationid="Growth recorded across segments" comment="Subhead" text="Growth recorded across segments">Growth recorded across segments</cmsannotation> Analysing the data when compared to the same period a year before, one sees broad-based growth across segments – In September, 2W sales increased by 22%, 3W surged by 49%, PV grew by 19%, and CV by 5%. Tractors sales, however, declined by -10%. Compared to pre-COVID benchmarks, the sector achieved a robust 14% increase, with the 2W category recording positive growth (2%) for the first time. Says Manish Raj Singhania, president, FADA, "September's Auto Retail celebrated a 20% year-on- year (Y-o-Y) leap, continuing the momentum from the previous month while marking a 3.5% month-on-month (M-o-M) increase, seamlessly transitioning into the festive period’s sweet spot set to unfold over the next 42 days.” <cmsannotation type="cmsannotation" annotationid="Two wheeler sales hit record high" comment="Subhead" text="Two wheeler sales hit record high">Two wheeler sales hit record high</cmsannotation> Three-wheeler sales hit a new high in September, reaching 102,426 units, showing a 49% Y-o-Y and 3% M-o-M increase, surpassing the previous record set in August 2023 at 99,907 units. The two-wheeler (2W) sector saw a boost in demand as the festive season approached, thanks to new models and attractive promotions, especially in rural areas. This led to increased customer traffic and positive market sentiment, supported by better stock availability and the successful launch of entry-level products. The passenger vehicle (PV) category enjoyed a resurgence with improved vehicle availability and the introduction of new models. There was consistent demand for luxury cars and SUVs, supported by pending bookings and promising product launches, setting the stage for potential growth in the upcoming festive season. In September 2023, the commercial vehicle (CV) segment remained strong, driven by demand in coal, cement, and general market load sectors. The passenger carrier segment also experienced growth, attributed to government infrastructure investments and improved market sentiment post-COVID-19.

With monsoon worries gone, auto sector bets on stellar festive revival

The Federation of Automobile Dealers Associations (<keyword id="354719" type="General" weightage="80" keywordseo="fada" source="Orion">FADA</keyword>), the leading body of automobile retail in India, on Thursday submitted a critical representation to the Goods and Services Tax (<keyword id="6354679" type="General" weightage="100" keywordseo="gst" source="Orion">GST</keyword>) Council, urging an immediate reduction in the GST rate on two-wheelers from the current 28 per cent to 18 per cent. This timely and decisive intervention is aimed at making two-wheelers more affordable, reviving demand and reinvigorating an industry that has seen a significant slump in sales over the past few years, according to a statement from FADA. FADA President Manish Raj Singhania affirmed, "The two-wheeler industry is at a critical juncture, grappling with unprecedented challenges such as rising inflation, stringent emission norms, and the post-COVID-19 effects in Bharat of India." He said this is the opportune moment for the GST Council to reduce the GST rate on two-wheelers, making them more accessible for the common man, thereby providing the much-needed boost to the industry, generating employment opportunities and fostering India's overall economic growth. FADA's compelling appeal has been forwarded to Finance Minister Nirmala Sitharaman, chair of the GST Council, all GST Council members; the Ministry of Heavy Industries, which supervises the automobile sector and the Ministry of Road Transport and Highways. This action underscores the urgency and significance of the issue, it added. FADA said over the past few years, the prices of various two-wheelers have risen significantly, impacting their affordability for consumers across India. This surge in prices can be attributed to multiple factors, including the rising cost of raw materials, stricter emission norms and higher taxes and levies, FADA said, adding that for instance, the price of the popular -- Honda Activa -- has escalated from Rs 52,000 in 2016 to Rs 88,000 in 2023. Similarly, the Bajaj Pulsar has witnessed a substantial increase from Rs 72,000 in 2016 to Rs 1,50,000 in 2023. The Hero Splendor and <keyword id="1871753" type="General" weightage="50" keywordseo="tvs-jupiter" source="Orion">TVS Jupiter</keyword> have also experienced considerable price hikes over the same period, with their prices soaring from Rs 46,000 to Rs 74,801 and Rs 49,000 to Rs 88,498, respectively. The continuous rise in two-wheeler prices has consequently led to a decline in sales, emphasising the pressing need for intervention and GST rate reduction to restore the industry's growth trajectory, according to the statement. In 2016, two-wheelers accounted for 78 per cent of the total automobile sales in India. However, due to continuous price increases since 2020, this contribution has fallen to 72 per cent in FY23, underlining the impact of the steep price hike. FADA believes that a reduction in the GST rate will address several critical issues facing the industry, including rural distress, the transition from BS-4 to BS-6 emission norms and the sharp increase in two-wheeler prices. Lowering the GST rate will enhance the competitiveness of two-wheelers compared to other transportation modes, thereby increasing sales and revenue for the industry. The association also said two-wheelers play a pivotal role in providing affordable mobility to a large segment of India's population, especially in rural areas where public transportation is sparse. FADA also asserted that two-wheelers, being essential for millions, should not be categorised as sin goods or luxury items for GST taxation purposes. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/apple-app-store-prevented-over-2-billion-in-fraudulent-transactions-last-year-banned-282-million-user-accounts/articleshow/100322718.cms">Apple App Store prevented over $2 billion in fraudulent transactions last year, banned 282 million user accounts</a> <a href="https://www.businessinsider.in/business/auto/news/electric-scooters-and-bikes-may-get-costlier-as-government-looks-to-revamp-the-fame-ii-scheme/articleshow/100321089.cms">Electric two wheelers may get costlier as government looks to revamp the FAME-II scheme</a> <a href="https://www.businessinsider.in/tech/news/how-to-find-phone-numbers-registered-in-your-name-and-block-those-that-arent-yours/articleshow/100297548.cms">How to find phone numbers registered in your name and block those that aren’t yours</a>

Automobile dealers' association seeks GST cut on 2-wheelers from 28% to 18%

<ul><li>Latest data released by FADA shows that EVs now account for 8% of total <keyword id="46211" type="General" weightage="20" keywordseo="auto-sales" source="Orion">auto sales</keyword>. </li><li>The ride ahead won’t be smooth due to inventory issues, regulatory norms and other headwinds. </li><li>Challenges will differ for each sub-sector, adds the report. </li></ul> The May heat did not deter auto sales much as sales rose an impressive 10% compared to a year ago. However, the industry which has struggled since the Covid -19 hit, isn’t out of the woods yet, as per industry body Federation of Automobile Dealers Associations (FADA). For starters, the reading is still below the pre-pandemic level. “While there has been a slight 2% decline compared to pre-Covid levels, the overall retail figures have shown improvement. The two-wheeler and commercial vehicles (CV) sales did continue to face some challenges, recording high-single-digit setbacks of 8% and 7% respectively,” said Manish Raj Singhania, president of FADA. Each sub-sector, be it two-wheelers or passenger vehicles, is expected to face a different set of challenges. Two-wheeler sales picked up in May as they grew 9% year-on-year, thanks to the wedding season and recovery in rural demand. Added to that, the changes in FAME which have taken effect from this month, also prompted higher electric 2-wheeler sales in May. The phase II of Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) scheme commenced in 2019 for a period of three years, and extended till March 2024. The Heavy Industries Ministry notified in late May that it has reduced the subsidy provided under the scheme to electric two wheelers. After FAME subsidies were slashed, players like <a href="https://www.businessinsider.in/business/auto/news/tvs-ather-ola-hike-prices-of-electric-two-wheelers-as-new-subsidy-norms-kick-in/articleshow/100679993.cms">TVS, Ather and Ola </a>increased prices. Though seasonal factors could boost demand for two wheelers in general, there will be concerns like weather-induced walk-in reductions, inventory, and regulatory norms, said FADA. Inventory worries Passenger vehicle sales grew 4% in May year-on-year, recovering from a slump seen in April. “Improved availability of vehicles, the strength of pending orders, and the robust demand for new launches drove a positive momentum,” said Singhania. Going ahead, the industry body expects the PV sector to see increased demand, particularly for new models, compact and full-sized sports utility vehicles (SUVs) and electric vehicles (EVs). But inventory pressure and right model availability could pose challenges, it added. Three wheelers are maintaining their good run as their sales went up by 79%, while tractor sales also went up almost 10% in May, compared to last year. Commercial vehicle sales also grew 7%. The commercial vehicle segment experienced sustained growth, underpinned by the government's focus on infrastructure development. The bus segment displayed a notable increase, driven by improved financing options and higher sales in academic institutions, FADA said. Going forward, however, the CV sector anticipates improved vehicle availability but concerns about real driver emission (RDE) norms and seasonal effects may impact sales. Vehicle retail sales in May <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;">May 2023 </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;">May 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;">% growth </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 wheelers </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;">14,93,234 </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;">13,65,924 </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;">9.32% </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 wheelers </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;">79,433 </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;">44,482 </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;">78.57% </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;">Passenger Vehicles (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;">2,98,873 </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;">2,86,523 </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;">4.31% </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;">Tractors </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;">70,739 </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;">64,528 </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;">9.63% </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;">77,135 </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;">71,964 </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;">7.19% </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;">20,19,414 </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;">18,33,421 </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;">10.14% </td></tr></tbody></table> Source: FADA EV sales power up The sales of EVs registered an impressive show in May, and accounted for 8% of total vehicle retail. A surge in two-wheeler sales is also one of the reasons, as 7% of total sales in this category were EVs. The best EV show, however, was from three wheelers as it accounted for 56% of total sales in this category. The CV and PV categories also marked their presence in the EV landscape, with respective contributions of 0.5% and 2.5%, FADA said. SEE ALSO <a href="https://www.businessinsider.in/entertainment/news/manoj-bajpayee-joins-the-league-of-on-screen-lawyers-like-pankaj-tripathi-shriya-pilgaonkar-more/articleshow/100706778.cms">Manoj Bajpayee joins the league of on-screen lawyers like Pankaj Tripathi, Shriya Pilgaonkar &amp; more</a> <a href="https://www.businessinsider.in/careers/news/2-in-3-indian-screenwriters-lament-lack-of-pay-incentives/articleshow/100700189.cms">Behind the scenes: 2 in 3 Indian screenwriters lament lack of pay incentives</a>

May auto sales rise 10% but still below pre-Covid level with challenges in store

<ul><li>Tire-1 cities such as Banglore, Mumbai, Pune and Delhi top the financing demands for two-wheelers.</li><li>With the recent surge in petrol prices, EV sales of two-wheelers increased by 19x over last year.</li><li>Among tire-2 cities, Indore tops digital financing for two-wheelers.</li></ul><keyword id="8064711" type="General" weightage="100" keywordseo="oto" source="Orion">OTO</keyword>, a buying and financing platform has released its first annual report on two-wheeler trends data such as top-performing brands, demand in cities and categories which are driving the demand for financing in India. The report also highlights the change in consumer behaviour seen through the pandemic with digital penetration in the market. As per the report, most customers opting for two-wheeler finance are 24 to 35 years middle-class working professionals. Financing has emerged as the most preferred option for buying two-wheelers. The report also states that out of 76% of scooter sales 34% were EVs and 42% were conventional fuel vehicles. The most preferred brands according to OTO are <keyword id="20630" type="General" weightage="50" keywordseo="honda" source="Orion">Honda</keyword> and <keyword id="62356" type="General" weightage="50" keywordseo="tvs" source="Orion">TVS</keyword> both online and offline mediums. Of all the tier 2 cities, Indore has emerged as the top buyer of two-wheelers along with digital financing. Banglore emerged as the top tire-1 city in terms of demand for two-wheelers and their financing followed by Hyderabad. Around 23% of customers opted for resale of their two-wheelers through channels available on OTO. Premium bikes with an average price of 1.5 lakh were purchased by 33% of people. Around 82% of OTO customers opted for the financing service meanwhile 18% preferred to buy two-wheelers without financing. Above mentioned data highlights that Indian millennials are shifting towards digital finance options such as OTO for two-wheelers. Commenting on the report, Sumit Chhazed, Co-founder of OTO said, “the emergence and acceptance of digitisation have accelerated the growth of the auto sector. We have seen 4x growth in application with the dealer base which is almost double when compared to last six months.” SEE ALSO: <a href="https://www.businessinsider.in/science/health/news/a-smartphone-app-that-can-identify-ja[%E2%80%A6]rn-babies-by-scanning-their-eyes/articleshow/91983137.cms">Researchers found an effective way of detecting jaundice in newborns using a smartphone app</a> <a href="https://www.businessinsider.in/tech/mobile/news/asus-rog-phone-6-is-all-set-for-its-global-debut-on-june-5/articleshow/91976487.cms">Asus ROG Phone 6 is all set for its global debut on June 5</a>

EV sales of two-wheelers increased by 19X in the last fiscal year: OTO

<ul><li>Auto sales in February report a 16% year-on-year growth.</li><li>While the three-wheeler and passenger vehicles segment crossed pre-pandemic levels, the two-wheeler segment has failed to do so.</li><li><keyword id="354719" type="General" weightage="100" keywordseo="fada" source="Orion">FADA</keyword> expects strong auto sales in March 2023 but is cautious of a weaker monsoon.</li></ul>The Indian auto industry reported a 16% year-on-year increase in sales in February 2023. Despite this, sales are down by 8% as compared to pre-pandemic levels in February 2020. According to a report by the Federation of Automobile Dealers Associations (FADA), all categories reported double-digit growth in February 2023. <cmsannotation type="cmsannotation" annotationid="February 2023 auto sales data" comment="subhead" text="February 2023 auto sales data">February 2023 auto sales data</cmsannotation> <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#000000;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Category </td><td style="border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#000000;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">February 2023 </td><td style="border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#000000;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">February 2022 </td><td style="border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#000000;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Two-wheeler </td><td style="border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12,67,233 </td><td style="border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11,04,309 </td><td style="border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14.75% </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Three-wheeler </td><td style="border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">72,994 </td><td style="border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">40,224 </td><td style="border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">81.47% </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Passenger vehicles </td><td style="border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,87,182 </td><td style="border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,58,736 </td><td style="border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.99% </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tractors </td><td style="border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">68,988 </td><td style="border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">60,536 </td><td style="border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13.96% </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Commercial vehicles </td><td style="border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">79,027 </td><td style="border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">67,391 </td><td style="border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">17.27% </td></tr><tr><td style="border-left:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total </td><td style="border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1775424 </td><td style="border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1531196 </td><td style="border-right:solid #000000 0.6260872500000001pt;border-bottom:solid #000000 0.6260872500000001pt;border-top:solid #000000 0.6260872500000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.95% </td></tr></tbody><tbody></tbody></table> Source: FADA Research <cmsannotation type="cmsannotation" annotationid="Two-wheeler sales fail to reach pre-pandemic levels" comment="subhead" text="Two-wheeler sales fail to reach pre-pandemic levels">Two-wheeler sales fail to reach pre-pandemic levels</cmsannotation> Two-wheeler sales recorded a 15% year-on-year growth but were down by 14% when compared to February 2020’s pre-pandemic levels. The onboard diagnostics (OBD-2) norms which will come into effect from April 2023, are believed to be among the factors for the increased sales. OBD-2 compliant vehicles are expected to cost more. The wedding season is also believed to have boosted two-wheeler sales. <cmsannotation type="cmsannotation" annotationid="Three-wheeler segment continues to shine" comment="subhead" text="Three-wheeler segment continues to shine">Three-wheeler segment continues to shine</cmsannotation> The three-wheeler segment continued to grow, and has finally crossed the pre-pandemic levels. The segment reported an 81% year-on-year growth, up by 3% compared to February 2020. “This category has seen drastic growth due to central and state government’s subsidy along with good scheme promotion done by the states. Along with this, aggressive finance schemes continue to aid growth for this category,” said FADA in its report. <cmsannotation type="cmsannotation" annotationid="Passenger vehicle segment grows" comment="subhead" text="Passenger vehicle segment grows">Passenger vehicle segment grows</cmsannotation> The passenger vehicle segment has once again reported strong growth at 11% year-on-year. As compared to February 2020, sales grew by 16%. “Launch of new models, continuously improving supply coupled with healthy booking to cancellation ratio and wedding bells kept the momentum going for this already well to do segment,” FADA added. <cmsannotation type="cmsannotation" annotationid="Commercial vehicles record growth but behind pre-pandemic levels" comment="subhead" text="Commercial vehicles record growth but behind pre-pandemic levels">Commercial vehicles record growth but behind pre-pandemic levels</cmsannotation> The commercial vehicles segment recorded a 17% year-on-year growth in February 2023, but the sales are down by 10% compared to the pre-Covid levels of February 2020. “Walk-in enquiries improved during the month. Apart from this, demand has also increased due to change in OBD norms which will see price hikes. On the government’s side, infrastructure spending has been healthy. This is also aiding better sales,” FADA added in its report. <cmsannotation type="cmsannotation" annotationid="‘Outlook positive but weaker monsoon may play a spoilsport’" comment="subhead" text="‘Outlook positive but weaker monsoon may play a spoilsport’">‘Outlook positive but weaker monsoon may play a spoilsport’</cmsannotation> FADA in its report, said that there are many factors in favour of strong sales in March 2023, including the festive season, improved supply of vehicles, upcoming OBD-2 norms, last month of the financial year and more. However, a slowdown in private consumption expenditure and a weaker monsoon may play spoilsport. “India’s chief economic advisor said that urban demand recovery is taking place at a faster pace than rural. This along with sharp slowdown in private consumption expenditure to a 2-year low suggests a softening in household spending demand amid inflationary pressure as post Covid pent-up demand starts to fade,” said FADA in its report. A better monsoon forecast is expected to boost sales in rural areas. SEE ALSO: <a href="https://www.businessinsider.in/tech/gadgets/news/noise-and-fire-boltt-entered-in-top-five-in-global-smartwatch-shipments/articleshow/98171390.cms">These two Indian brands have together sold more smartwatches than Samsung in 2022</a> <a href="https://www.businessinsider.in/tech/gadgets/news/four-out-of-five-wireless-earbuds-sold-in-india-in-2022-were-from-an-indian-company/articleshow/98141414.cms">Four out of five wireless earbuds sold in India in 2022 were from an Indian company</a> <a href="https://www.businessinsider.in/personal-finance/news/how-to-compare-your-tax-liability-in-old-and-new-tax-regimes/articleshow/98116217.cms">How to compare your tax liability in old and new tax regimes</a>

Wedding bells ring in 16% rise in February auto sales, 2 wheeler sales yet to hit pre-pandemic levels: FADA

<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

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

<ul><li>Along with weddings, the ongoing festive season has continued to help in bringing customers to the showrooms as on date, said FADA in its latest report. </li><li>The retailer association attributes good growth in the three-wheeler segment to positive sentiments, fear of lockdowns subsiding and high electrification that the sector is seeing. </li><li>Going ahead, hike in interest rates and price hikes by auto manufacturers might play spoilsport, said FADA which remains cautiously optimistic in the near term. </li></ul>The <keyword id="15739470" type="General" weightage="20" keywordseo="great-indian-wedding-season" source="Orion">Great Indian Wedding season</keyword> is driving auto sales across categories, the Federation of Automobile Dealers Associations (FADA) said on Friday, adding that the auto industry clocked its best ever sales in November 2022, except March 2020. In March 2020, the industry’s transition to better fuel efficient vehicles as per government regulations rang in high sales. Auto retailing for November 2022 went up by 26% year-on-year, with all the categories be it two-wheelers, three-wheelers, passenger vehicles, tractors and commercial vehicles showing positive growth. “The baton was passed by the positive run of festive sales to the <a href="https://www.businessinsider.in/business/news/big-fat-indian-weddings-back-but-with-slimmer-guest-lists/articleshow/95657820.cms">Great Indian Wedding Season </a>(from November 14 to December 14) where around 32 lakh weddings will be solemnised across the country,” FADA said in a press release. In India, it’s customary for the father of the bride to gift either a car or a two-wheeler to the groom. Even in April and May this year, auto sales rose, especially in the two-wheeler segment, and were attributed to the busy <a href="https://www.businesstoday.in/markets/company-stock/story/why-auto-stocks-are-trading-flat-today-despite-strong-may-sales-336080-2022-06-02">wedding season by trade pundits</a>, besides the low-base effect of the pandemic year. Consumer sentiment has also picked up, leading to better sales. “The RBI’s latest Consumer Confidence Data suggests that buoyancy among customers is on a recovery path on account of better perceptions on general economic situation, employment, and household income. This, along with the ongoing festive season, has continued to help in bringing customers to the showrooms as on date,” FADA said. Vehicle retail data for November 2022 <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></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;">November 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;">Growth over November 2021) </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;">Growth over November 2020 </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;">Growth over November 2019 (Pre-Covid month) </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 wheelers </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;">18,47,708 </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;">23.6% </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;">20.96% </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;">-0.86% </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 wheelers </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;">74,473 </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;">80.34% </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;">195.47% </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;">3.68% </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;">Passenger Vehicles </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;">3,00,922 </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;">21.31% </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;">-1.78% </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;">5.12% </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;">Tractors </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;">77,993 </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;">56.81% </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;">41.65% </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;">61.34% </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;">Commercial vehicles </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;">79,369 </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;">32.8% </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;">51.87% </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;">6.37% </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;">23,80,465 </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;">25.71% </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;">21.05% </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;">1.52% </td></tr></tbody><tbody></tbody></table> Source: FADA E-rickshaws drive <keyword id="1080636" type="General" weightage="20" keywordseo="three-wheeler-sales" source="Orion">three-wheeler sales</keyword> The three-wheeler category that includes auto rickshaws for passengers, goods and personal categories in addition to e-rickshaws and e-rickshaw with cart – is also showing phenomenal growth. The retailer association attributes this to positive sentiments, fear of lockdowns subsiding and high electrification that the sector is seeing. Passenger e-rickshaw sales grew by a massive 112.88% over November 2021 while e-rickshaws with cart grew 75%. Tractor sales have also been healthy for the month, which is when the sowing of winter crops begins. “For Bharat, normally after the harvest starts, farmers get money in hand and this starts the spending cycle. We expect spending for auto sales to go up once the harvest comes into the market and farmers start getting money in their hands,” the release said. A lot of two-wheeler sales are dependent on rural recovery, in addition to tractors. Speed breakers ahead In spite of the good momentum seen across categories, there could be many speed breakers ahead for the sector. Recently, the Reserve Bank of India <a href="https://www.businessinsider.in/finance/news/rbi-hikes-repo-rate-by-35-bps-taking-rates-to-a-high-of-6-25/articleshow/96045841.cms">announced its fifth interest rate hike that will drive up</a> the borrowing costs of owning a vehicle, as a lot of them depend on vehicle finance. The latest rate hike now brings the repo rate to 6.25%. “This will further lead to a higher cost of borrowing apart from the price hikes done by OEMs (original equipment manufacturers) and may dent consumer confidence, specially in the 2W and entry level PV segment,” FADA said. Auto companies have also announced price hikes to offset the cost of high input prices. Maruti Suzuki was the first to announce a price hike from January next year, adding that price hikes will vary across models. Luxury car maker Audi too said that it will hike vehicle prices by up to 1.7%, starting January. A <a href="https://www.business-standard.com/article/companies/tata-motors-mulling-price-hike-for-passenger-vehicles-from-next-month-122120500821_1.html">PTI report has said that </a>Tata Motors is mulling a price hike for passenger vehicles from next month. “Along with this, the China lockdown may play its part in slowing the supply of semiconductors. If this happens, it may act as a speed breaker and add to supply-demand mismatch, which was improving since (the) last few months,” said FADA, which remains cautiously optimistic in the near term. SEE ALSO <a href="https://www.businessinsider.in/business/news/rate-hike-to-affect-housing-demand-in-the-mid-and-affordable-segments-say-experts/articleshow/96076359.cms">Rate hike to affect housing demand in the mid and affordable segments, say experts</a> <a href="https://www.businessinsider.in/finance/news/end-of-revenge-spending-urban-spending-to-taper-off-in-the-next-few-quarters-says-motilal-oswal/articleshow/96020912.cms">End of revenge spending? Urban spending to taper off in the next few quarters, says Motilal Oswal</a>

Festive baton shifts to Great Indian Wedding Season, November registers best-ever auto sales, except March 2020: FADA

Electric vehicles (EV) financing digital platform <keyword id="12028811" type="General" weightage="50" keywordseo="revfin-services" source="Orion">RevFin Services</keyword> is targeting to finance 20 lakh vehicles in the next five years, with an aim to grow three to four times every year, according to its CEO &amp; Founder <keyword id="1116564" type="General" weightage="50" keywordseo="sameer-aggarwal" source="Orion">Sameer Aggarwal</keyword>. With the Indian electric vehicle industry poised for an accelerated growth, he said the company is confident of meeting its target and would continue to raise funds through debt and equity going forward for the purpose. "From a long-term perspective we have taken a very strong position on EVs, and we have committed to financing two million electric vehicles in the next five years," <keyword id="11517" type="General" weightage="80" keywordseo="aggarwal" source="Orion">Aggarwal</keyword> told PTI. Asked if the target is not too steep, considering <keyword id="6952105" type="General" weightage="100" keywordseo="revfin" source="Orion">RevFin</keyword> has financed 17,118 EVs in the last 51 months, he said,"The monthly loan disbursement is growing month-on-month by about 15 per cent. So overall, it has grown almost four times in the last one year. If we continue the kind of growth that we are currently on we will actually achieve these numbers." In 2023-24, the company is looking at financing around 50,000 EVs. "The following year we would do three to four times of that. Obviously, a lot of those numbers will be achieved after the year-two or year-three, but there is a 3-4x growth that we are experiencing," Aggarwal asserted. RevFin has also expanded its portfolio from primarily financing electric rickshaws earlier, adding electric two-wheelers, high speed electric three-wheelers and four-wheelers as well, he added. Apart from offering financing to products of a slew of EV makers, RevFin also has strategic partnerships with manufacturers, including Kinetic Green, Yatri, Saarthi, Mayuri, Lectrix, <keyword id="195740" type="General" weightage="50" keywordseo="hero-electric" source="Orion">Hero Electric</keyword>, and <keyword id="272382" type="General" weightage="50" keywordseo="piaggio" source="Orion">Piaggio</keyword> among others. When asked about the funding requirements, he said,"Capital is the raw material for us. We are always raising capital in equity and debt." While the company raises debt capital almost every month, Aggarwal said,"Equity we raise 12 to 18 months, which will continue. Every 12 to 18 months we'll be raising equity and then we'll be raising debt to leverage that equity." In October last year, the company had raised USD 10 million (over Rs 80 crore) in a Series A round of funding. As part of its growth strategy, the company plans to expand its presence to around 25 states from the current 16 and take its footprint to about 300 cities, up from around 200 cities at present. Most of these will be focussed for electric two and three-wheelers while for electric four-wheelers it will be in the bigger cities, he added. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/ashneer-grovers-new-startup-crickpe-is-a-fantasy-sports-app-that-will-also-reward-cricketers/articleshow/98964195.cms">Ashneer Grover's new startup CrickPe is a fantasy sports app that will also reward cricketers</a> <a href="https://www.businessinsider.in/tech/news/you-will-soon-lose-your-legacy-blue-tick-on-twitter-heres-everything-you-need-to-know/articleshow/98960333.cms">You will soon lose your legacy blue tick on Twitter – here’s everything you need to know</a> <a href="https://www.businessinsider.in/tech/mobile/news/three-out-of-four-premium-smartphones-sold-in-2022-were-an-iphone/articleshow/98855033.cms">Three out of four premium smartphones sold in 2022 were an iPhone</a>

You Searched For "two wheeler finance" and got 11 results

Indian auto retail sector records 27% YoY growth in April: FADA

ANI

Retail auto sales up 13% MoM in October, but high inventory levels in PV a concern

BI India Bureau

With monsoon worries gone, auto sector bets on stellar festive revival

Automobile dealers' association seeks GST cut on 2-wheelers from 28% to 18%

ANI

May auto sales rise 10% but still below pre-Covid level with challenges in store

Katya Naidu

EV sales of two-wheelers increased by 19X in the last fiscal year: OTO

Rahul Verma

Wedding bells ring in 16% rise in February auto sales, 2 wheeler sales yet to hit pre-pandemic levels: FADA

Sourabh Jain

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

BI India Bureau

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

Anagh Pal

Festive baton shifts to Great Indian Wedding Season, November registers best-ever auto sales, except March 2020: FADA

Katya Naidu

RevFin targets financing 20 lakh electric vehicles in next 5 years

PTI

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