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Hindustan Times
2 days ago
- Automotive
- Hindustan Times
Indian auto industry welcomes RBI's rate cut move, hopes for enhanced consumer affordability
The Indian automobile industry believes the RBI's decision to reduce the repo rate will add positive sentiment among consumers in the market. (AFP) Notify me The Automobile industry has supported the Reserve Bank of India's rate-cut decision, and they believe that this decision will add positive sentiment among consumers in the market. On Friday, the RBI reduced the repo rate by 50 basis points to 5.5 per cent. The central bank also cut the Cash Reserve Ratio (CRR) by 100 basis points to 3 per cent. The CRR cut will be implemented starting September 6, in four tranches of 25 basis points each in four fortnights. The CRR cut alone will infuse a liquidity of ₹ 2.5 lakh crore in the Indian banking system. Shailesh Chandra, President, SIAM and Managing Director of Tata Passenger Vehicles Ltd & Tata Passenger Electric Mobility Ltd., welcomed the RBI's decision of a 50 bps repo rate cut. He said, "Such a reduction in repo rates would have a positive impact on the Auto sector since it would lead to increased accessibility to finance at reduced costs, thereby creating a positive sentiment amongst the consumers in the market." Anish Shah, Group CEO & MD, Mahindra Group, supported the decision of the RBI to reduce rates at a time when the Indian economy is poised for its next phase of growth. "This move demonstrates the RBI's confidence in the macroeconomic fundamentals and its proactive approach to supporting sustainable expansion. The rate cut will serve as a positive catalyst for consumption and investment, particularly in interest-sensitive sectors such as automobiles, housing, and MSMEs. It will also ease borrowing costs, improve liquidity, and further strengthen the momentum behind India's infrastructure and manufacturing push," Anish Shah said Additionally, Venkatram Mamillapalle, Country CEO & Managing Director, Renault India, believes that this rate cut is a timely move and says that this move will add to customer affordability. "This policy is expected to strengthen liquidity and accelerate the transmission of lower interest rates to consumers, which will spur demand in the economy. For the automotive sector, this translates directly into improved access to affordable vehicle financing, especially in the entry and mid-level segments," he said. Furthermore, he mentions that he is optimistic about positive growth in the auto industry for FY2025- 26, powered by favourable macroeconomic indicators, strong fundamentals, and evolving consumer confidence. "The RBI's proactive measures are poised to spur automotive retail, enhance customer affordability, and strengthen the economic cycle," he further added. Federation of Automobile Dealers Associations (FADA) vehicle retail sales data for May, released on Friday, show a modest rise of 5 per cent compared to the same month last year. FADA also said that global supply-chain headwinds--from rare-earth constraints in EV components to ongoing geopolitical tensions--may keep urban consumer sentiment in check. RBI's rate cut and CRR cut will be a major boost for the Industry. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 08 Jun 2025, 10:28 AM IST
India Gazette
4 days ago
- Automotive
- India Gazette
Auto industry welcomes RBI's rate cut decision, believes it will add to consumer affordability
New Delhi [India], June 6 (ANI): The Automobile industry has supported the Reserve Bank of India's rate-cut decision, and they believe that this decision will add positive sentiment among consumers in the market. On Friday, the RBI reduced the repo rate by 50 basis points to 5.5 per cent. The central bank also cut the Cash Reserve Ratio (CRR) by 100 basis points to 3 per cent. The CRR cut will be implemented starting September 6, in four tranches of 25 basis points each in four fortnights. The CRR cut alone will infuse a liquidity of Rs 2.5 lakh crore in the Indian banking system. Shailesh Chandra, President, SIAM and Managing Director of Tata Passenger Vehicles Ltd & Tata Passenger Electric Mobility Ltd., welcomed the RBI's decision of a 50 bps repo rate cut. He said, 'Such a reduction in repo rates would have a positive impact on the Auto sector since it would lead to increased accessibility to finance at reduced costs, thereby creating a positive sentiment amongst the consumers in the market.' Anish Shah, Group CEO & MD, Mahindra Group, supported the decision of the RBI to reduce rates at a time when the Indian economy is poised for its next phase of growth. 'This move demonstrates the RBI's confidence in the macroeconomic fundamentals and its proactive approach to supporting sustainable expansion. The rate cut will serve as a positive catalyst for consumption and investment, particularly in interest-sensitive sectors such as automobiles, housing, and MSMEs. It will also ease borrowing costs, improve liquidity, and further strengthen the momentum behind India's infrastructure and manufacturing push,' Anish Shah said Additionally, Venkatram Mamillapalle, Country CEO & Managing Director, Renault India believes that this rate cut is a timely move and says that this move will add to customer affordability. 'This policy is expected to strengthen liquidity and accelerate the transmission of lower interest rates to consumers, which will spur demand in the economy. For the automotive sector, this translates directly into improved access to affordable vehicle financing, especially in the entry and mid-level segments,' he said. Furthermore, he mentions that he is optimistic about positive growth in the auto industry for FY2025- 26, powered by favourable macroeconomic indicators, strong fundamentals, and evolving consumer confidence. 'The RBI's proactive measures are poised to spur automotive retail, enhance customer affordability, and strengthen the economic cycle,' he further added. Federation of Automobile Dealers Associations (FADA) vehicle retail sales data for May, released on Friday, show a modest rise of 5 per cent compared to the same month last year. FADA also said that global supply-chain headwinds--from rare-earth constraints in EV components to ongoing geopolitical tensions--may keep urban consumer sentiment in check. RBI's rate cut and CRR cut will be a major boost for the Industry. (ANI)
Time of India
4 days ago
- Automotive
- Time of India
Rate relief cheered: Auto industry backs RBI's 50 bps repo cut; expects boost in affordability, retail demand
India's automobile sector has welcomed the Reserve Bank of India's latest rate-cut move, calling it a timely intervention that could improve financing access, strengthen consumer sentiment, and support overall retail growth. On Friday, the RBI reduced the repo rate by 50 basis points to 5.5% and cut the Cash Reserve Ratio (CRR) by 100 basis points to 3%. The CRR reduction will be implemented in four tranches of 25 basis points each, starting September 6, and is expected to infuse liquidity of Rs 2.5 lakh crore into the banking system. According to ANI, Shailesh Chandra, President of SIAM and Managing Director of Tata Passenger Vehicles Ltd & Tata Passenger Electric Mobility Ltd, welcomed the move. 'Such a reduction in repo rates would have a positive impact on the auto sector since it would lead to increased accessibility to finance at reduced costs, thereby creating a positive sentiment amongst the consumers in the market,' he said. Anish Shah, Group CEO and Managing Director of Mahindra Group, also endorsed the RBI's decision. 'This move demonstrates the RBI's confidence in the macroeconomic fundamentals and its proactive approach to supporting sustainable expansion,' he said. 'The rate cut will serve as a positive catalyst for consumption and investment, particularly in interest-sensitive sectors such as automobiles, housing, and MSMEs. ' Echoing similar views, Venkatram Mamillapalle, Country CEO & Managing Director of Renault India, said the move comes at the right time and will support consumer affordability. 'This policy is expected to strengthen liquidity and accelerate the transmission of lower interest rates to consumers, which will spur demand in the economy,' he said. 'For the automotive sector, this translates directly into improved access to affordable vehicle financing, especially in the entry and mid-level segments. ' He added that he remains optimistic about growth in the auto industry for FY 2025–26, supported by strong macroeconomic indicators and evolving consumer confidence. 'The RBI's proactive measures are poised to spur automotive retail, enhance customer affordability, and strengthen the economic cycle,' he said. The Federation of Automobile Dealers Associations (FADA) reported a 5% year-on-year rise in vehicle retail sales for May. However, the body cautioned that global supply chain issues — from rare-earth shortages affecting EV production to broader geopolitical tensions — may continue to influence urban consumer sentiment. FADA noted that the RBI's latest rate and CRR cuts would serve as a 'major boost' to the sector. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
05-05-2025
- Automotive
- Economic Times
Strong SUV demand drives up M&M standalone net 22% in March quarter
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: In a sluggish market, homegrown auto major Mahindra & Mahindra (M&M) on Monday beat Street estimates to report a 22% increase in standalone net profit at ₹2,437 crore for the fourth quarter ended March 31, driven by strong demand for its range of from operations in the period under consideration rose 24% to ₹31,609 crore. During the quarter, the company sold 253,028 vehicles, which is an increase of 18% over the corresponding period of the previous fiscal year. While tractor sales increased 23% to 87,138 units, those of utility vehicles rose 18% to 149,000 the automotive division witnessing double-digit growth in volume sales, the company said it plans to set up a greenfield manufacturing facility to meet future demand by FY28. Current SUV capacity utilisation is already over 90%. Models such as the Thar Roxx and XUV 3XO are running at full capacity, while others such as the Bolero are operating below that company did not disclose the location or capacity addition planned at the new facility, but said expanding capacity is essential given it has a pipeline of new products scheduled for launch by Jejurikar, executive director & CEO (auto and farm sector), M&M, said: "We are coming up with a new greenfield facility because our current SUV capacity utilisation is already over 90%. We haven't yet finalised the exact capacity addition - that's still a work in progress. But with the new products we're planning to launch by 2030, it's clear we will need additional capacity."The company reported its highest-ever full-year market share in the tractor segment last fiscal, at 43.3%, an increase of 170 basis points over the previous year. The company's share in the SUV segment too rose by 210 basis points to 22.5%. Similarly, for light commercial vehicles (LCVs), market share increased by 290 basis points to 51.9%.Anish Shah, group CEO & managing director, M&M, said, "We have delivered strong growth on the back of stellar execution in FY25. Auto and farm continue to gain market share and expand profitability. TechM is making commendable progress towards its dual objectives of strengthening client positioning and margin expansion. MMFSL has maintained GS3 under 4% as committed, remains focused on controls, and has delivered 33% growth in profits. We continue to build strong businesses which will deliver significant value to our stakeholders."M&M Group CFO Amarjyoti Barua said it had been an "excellent year" with broad-based growth and profitability improvement across businesses. In line with their commitment to capital allocation, he added: "Our results include nearly ₹10,000 crore of cash generation in FY25, which gives us the ability to continue to drive value for our shareholders through strategic investments. We are happy to declare a 20% growth in dividend for FY26 on the back of this strong performance."
Time of India
05-05-2025
- Automotive
- Time of India
Strong SUV demand drives up M&M standalone net 22% in March quarter
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: In a sluggish market, homegrown auto major Mahindra & Mahindra (M&M) on Monday beat Street estimates to report a 22% increase in standalone net profit at ₹2,437 crore for the fourth quarter ended March 31, driven by strong demand for its range of from operations in the period under consideration rose 24% to ₹31,609 crore. During the quarter, the company sold 253,028 vehicles, which is an increase of 18% over the corresponding period of the previous fiscal year. While tractor sales increased 23% to 87,138 units, those of utility vehicles rose 18% to 149,000 the automotive division witnessing double-digit growth in volume sales, the company said it plans to set up a greenfield manufacturing facility to meet future demand by FY28. Current SUV capacity utilisation is already over 90%. Models such as the Thar Roxx and XUV 3XO are running at full capacity, while others such as the Bolero are operating below that company did not disclose the location or capacity addition planned at the new facility, but said expanding capacity is essential given it has a pipeline of new products scheduled for launch by Jejurikar, executive director & CEO (auto and farm sector), M&M, said: "We are coming up with a new greenfield facility because our current SUV capacity utilisation is already over 90%. We haven't yet finalised the exact capacity addition - that's still a work in progress. But with the new products we're planning to launch by 2030, it's clear we will need additional capacity."The company reported its highest-ever full-year market share in the tractor segment last fiscal, at 43.3%, an increase of 170 basis points over the previous year. The company's share in the SUV segment too rose by 210 basis points to 22.5%. Similarly, for light commercial vehicles (LCVs), market share increased by 290 basis points to 51.9%.Anish Shah, group CEO & managing director, M&M, said, "We have delivered strong growth on the back of stellar execution in FY25. Auto and farm continue to gain market share and expand profitability. TechM is making commendable progress towards its dual objectives of strengthening client positioning and margin expansion. MMFSL has maintained GS3 under 4% as committed, remains focused on controls, and has delivered 33% growth in profits. We continue to build strong businesses which will deliver significant value to our stakeholders."M&M Group CFO Amarjyoti Barua said it had been an "excellent year" with broad-based growth and profitability improvement across businesses. In line with their commitment to capital allocation, he added: "Our results include nearly ₹10,000 crore of cash generation in FY25, which gives us the ability to continue to drive value for our shareholders through strategic investments. We are happy to declare a 20% growth in dividend for FY26 on the back of this strong performance."
