Latest news with #CretaElectric
Mint
3 days ago
- Automotive
- Mint
From red to black: India's top automakers see EV business turning around
New Delhi: After pumping in money for several years, Indian automotive manufacturing companies are finally beginning to see their electric vehicle (EV) businesses moving towards profitability. The EV business of top car makers Tata Motors and Mahindra and Mahindra (M&M) are already operationally profitable–a crucial milestone towards full profitability–even as Hyundai Motor India said its flagship EV is per-unit profitable. These three companies account for nearly two-thirds of the electric car market. On the other hand, two-wheeler majors Bajaj Auto Ltd, Hero MotoCorp, Ather Energy and Ola Electric Ltd are hopeful of turning operationally profitable soon. Achieving net profit, however, is some distance away for both segments. The trend comes on the back of strong growth in sales of EVs in FY25. Even as electric passenger vehicle sales rose 18% to 107,645 units in the fiscal year, electric two-wheeler sales grew 21% to 1.14 million units in the same period, as per Vahan portal data. Also read | New Delhi is promoting hybrid cars on par with electric, upsetting EV makers Analysts said policy incentives and a reduction in the cost of EV production are helping their profitability push. 'Reduction in import duties on key materials required to build EV components, increased localization by OEMs, and policy interventions like PLI and PM e-drive scheme are helping OEMs move towards EV profitability," Shridhar Kallani, research analyst for auto at Axis Securities, said. 'The increasing demand from consumers is also leading to a volume push, thereby helping the OEMs to grow the market and their profitability." Operations profitable Tata Motors, India's third largest automaker, reported Ebitda (earnings before interest taxes depreciation and amortization) margin of 1.2% in FY25, a move into the black from -7.1% in FY24. 'In the EV segment, we became one of the few global manufacturers to achieve positive Ebitda (earnings before interest taxes depreciation and amortization) on the back of a higher level of localisation, aggressive cost reduction, and securing PLI benefits," Shailesh Chandra, managing director at Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, said in his annual letter to shareholders. Likewise, close rival M&M reported Ebitda-positive EV sales, despite entering the segment late. And Hyundai reported positive Ebitda on its flagship Creta Electric at the unit level, minus launch-related expenses. M&M launched two EVs in the January-March period–BE 6 & XEV 9e–while Hyundai launched the Creta Electric in January. These new launches are driving the EV sales of the two companies, which were at 8,182 units and 2,410 units, respectively, during FY25, per data from the Federation of Automobile Dealers Associations (Fada). Read this | EVs hit with falling resale value as consumer demand cools 'MEAL (Mahindra Electric Automobile Ltd) as a company was Ebitda positive in its first quarter of operation," Rajesh Jejurikar, executive director and CEO-auto and farm sectors, said during the post Q4 results earnings call on 5 May. 'It made a ₹10-crore Ebitda profit without accruing any PLI (production-linked incentive)." Meanwhile, K.S. Hariharan, head of investor relations at Hyundai Motor India, said during the company earnings call on 16 May, 'If you exclude the launch-related marketing expenses and the test drive discounts, we are margin positive on Creta EV." However, there is some scepticism about them matching profits of conventional internal combustion engine (ICE) vehicles anytime soon. Rahul Bharti, senior executive officer, corporate affairs at India's top conventional car maker Maruti Suzuki, said during the company's Q3 earnings call on 29 January that it will take a long time for EVs to match ICE's profitability. 'If the profit of an EV was equal to that of an ICE, why would the government support so much at the Centre and the state level?" Bharti noted during the call with analysts. 'The very fact that there is a drastic reduction in GST, and so many subsidies at different levels on demand side and supply side, means that there is a difference." Profit on two-wheels India's top two wheeler players, too, are also chalking out a clear path to profitability. Bajaj Auto Ltd and Hero MotoCorp Ltd expect to turn their EV business Ebitda profitable in the next 24 months. Meanwhile, Ather Energy and Ola Electric Ltd remain hopeful that they will soon touch the break even point. Ola Electric Mobility Ltd, the country's largest electric two-wheeler company, said it is very close to breaking even. Ola had guided for reaching the milestone in the current quarter, but it's now likely to reach it in the July to September period amid slowing sales. 'What we had shared is that we expect to get to auto segment Ebitda positive within some time in Q1…we are more or less on track on that," Bhavish Aggarwal, founder and managing director at Ola Electric, said, adding that its auto segment will likely turn Ebitda positive sometime in June or July. The Ebitda margin was -78.6% in Q4 of FY25. As per the management, Ola will need 25,000 monthly sales to reach the breakeven point. In five months of 2025 so far, it has sold on average 19,000 vehicles per month, as per Vahan portal data. Also read | EV industry, government struggle to find alternatives as China throttles rare earth magnet supply Its Bengaluru-based peer Ather Energy Ltd is also confident about its path to profitability as its Ebitda margin improved to -23% in FY25 from -42% in the year-ago period. 'Profitability is the function of revenue and cost," Ravneet Phokela, chief business officer at Ather, told Mint. 'As we increase our sales through network expansion and reduce cost through localisation, there is a clear path to profitability." The country's largest conventional two-wheeler seller, Hero MotoCorp, is also guiding for profitability of its EV business by 2027 on the back of increasing sales, reducing cost and realising PLI benefits. 'What will really make this business profitable is the scale-up (of EV business), the bill of material cost reduction through localization, and PLI benefit realization," Vivek Anand, the company's chief financial officer said during the post results earnings call on 14 May. Hero MotoCorp's Ebitda margin from EVs improved from -155% in FY24 to -95% in FY25. 'At 25,000-30,000 levels of volume per month, we hope that this will break even, which in our view is a couple of years away," Anand added. The company sold about 4,000 vehicles on average every month in the financial year 2025. And read | Automakers rush to PMO, commerce ministry as Chinese magnet crisis set to spread beyond EVs, threatens production cuts Bajaj Auto Ltd also noted during its call with analysts that it is very close to breaking even for its e-two-wheeler business. For its combined two-wheeler and three-wheeler electric business, it had broken even on the Ebitda level in the July-September quarter (Q2 of FY25). 'At a unit economics level, clearly with PLI and PLI-certified models, we now have a line of sight to getting very close to an Ebitda break-even, relative to what was a very significant loss 12-15 months ago," said Dinesh Thapar, CFO at Bajaj Auto. The Nifty Auto index has gained 0.8% in 2025, lagging the Nifty 50's 4.2% rise during the same period.
Time of India
6 days ago
- Automotive
- Time of India
Hyundai completes 25 years of Made in India car exports
Chennai: Hyundai Motor India has completed 25 years of exporting Made in India cars. It has so far exported 3.7 million cars through the Chennai Port to over 150 countries. Commencing its exports in 1999, Hyundai achieved exports of one million by 2010, two million by 2014 and three million by 2020 and has been maintaining its position as India's largest exporter of cars cumulatively. It recently commenced exports of the Creta Electric to neighbouring markets, while Saudi Arabia, South Africa, Mexico, Chile and Peru were among the top export markets for HMIL in FY2024-25. 'Year 2024-25 marked a significant milestone for HMIL having completed 25 years of exports from India and thereby reaffirming its position as the country's largest exporter of passenger vehicles, cumulatively till date. With an aim to become Hyundai's largest export hub outside South Korea, we aspire to continue the growth trajectory in exports in the coming years,' Unsoo Kim, managing director, HMIL said in a statement. 'Exports have gained strong momentum in the recent months and we aim to sustain this trajectory going forward. For FY26, we anticipate the growth in export volumes to be around 7%-8%, supported by robust demand for our products in the emerging markets,' Kim added. 'As the largest automobile export port on the east coast, Chennai Port has been a key cog in Hyundai Motor India's export operations since 1999, with it serving as the gateway for Made in India automobiles making their way to the world,' said S Kirupanandasamy, traffic manager — Chennai Port Authority, while highlighting the benefits for both the company and the port on account of the strategic MoU signed in the past between the two. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Mayor
19-05-2025
- Automotive
- Business Mayor
More than one in four cars sold worldwide this year set to be electric
The International Energy Agency (IEA) has, in its annual Global EV Outlook, forecast that despite significant uncertainties, electric passenger cars' market share is on course to exceed 40% by 2030 as they become increasingly affordable in more markets. Following another year of robust growth in CY2024, global sales of electric cars are on track to surpass 20 million in CY2025, accounting for over a quarter of cars sold worldwide. The report shows that despite recent economic headwinds that have put pressure on the auto sector, global sales of electric cars have continued to break records as electric models become increasingly affordable. Sales exceeded 17 million globally in 2024, putting EVs' share of the global car market above 20% for the first time, as forecasted by the IEA previously. And in the first three months of 2025, electric car sales were up 35% year-on-year. All major markets, and many others, saw new records for first-quarter sales. Emerging markets in Asia and LatAm new centres of growth China maintains its position as the EV market leader, with electric cars accounting for almost half of all car sales in 2024. The number of electric cars sold in China last year (more than 11 million) is equivalent to the total sold worldwide in 2022. Emerging and developing markets in Asia and Latin America have also become new centres of growth, with total electric car sales across these regions surging by more than 60% in 2024 and the sales share almost doubled from 2.5% to 4%. This rapid growth has been strengthened by policy incentives. Emerging and developing economies in Asia (excluding China) saw a large increase in electric car sales, reaching almost 400,000 in 2024, up over 40% from 2023. In India, demand for electric passenger cars has risen, particularly in the past year. In CY2024, 99,378 new electric cars were sold in the country , which constitutes YoY growth of 20% (CY2023: 82,563 units). Sales of electric cars, SUVs and MPVs in India rose 21% YoY in CY2024 to a record 99,738 units. This best-ever annual sales record is set to be surpassed this year because in the first three months of CY2025, a total of 34,568 electric cars, SUVs and MPVs have being sold, up 34% YoY (January-March 2024: 25,777 units). The Indian electric car market is currently witnessing a shakeout what with EV leader Tata Motors, which has the largest EV portfolio, under pressure from JSW MG Motor India. SUV major Mahindra & Mahindra has also mounted a challenge with the recent launched on two new electric SUVs (BE 6 and XEV 9e). While Hyundai Motor India, the second-ranked passenger car maker, has launched the Creta Electric, the zero-emission avatar of the country's best-selling midsize SUV, ICE market leader Maruti Suzuki will be launching its first EV later this year, as will Toyota Kirloskar Motor as part of the global Suzuki-Toyota alliance. Thailand remained the largest EV market in Southeast Asia, despite a 10% drop in electric car sales. This decline was outweighed by an even steeper 26% drop in conventional car sales, largely due to stricter lending criteria, meaning the electric sales share rose to 13% in 2024, up from 11% the previous year. Within the region, Indonesia and Vietnam also stood out, respectively tripling and nearly doubling their sales numbers and reaching sales shares comparable to countries such as Spain or Canada. In many Southeast Asian countries, BEVs are the most popular electric car type, with over 90% of all electric car sales being fully electric. In Latin America, sales volumes and penetration rates doubled in many countries, with electric cars reaching a market share of 4% in 2024. Brazil towered over other countries in the region with nearly 125,000 electric car sales, more than twice the number of 2023 sales, and the electric sales share doubled to 6.5%. Costa Rica, Uruguay and Colombia also achieved impressive sales shares of around 15%, 13% and 7.5%, respectively. These increases are in large part the result of government incentives such as tax exemptions, reduced registration fees, a relaxation of traffic restrictions for EVs, and relatively high fossil fuel prices. In Africa, electric car sales more than doubled to reach nearly 11,000 in 2024. Sales shares remained low, at under 1%, though there was growth in several countries, such as Morocco and Egypt, where new electric car sales increased to more than 2 000. EV sales grow in the US, stagnate in Europe In the United States, electric car sales grew by about 10% year-on-year, reaching more than one in 10 cars sold. Europe saw sales stagnate as subsidy schemes and other supportive policies waned, though the market share of electric cars remained around 20%. 'Our data shows that, despite significant uncertainties, electric cars remain on a strong growth trajectory globally. Sales continue to set new records, with major implications for the international auto industry,' said IEA Executive Director Fatih Birol. He added, 'This year, we expect more than one in four cars sold worldwide to be electric, with growth accelerating in many emerging economies. By the end of this decade, it is set to be more than two in five cars as EVs become increasingly affordable.' Uncertainties over global economic growth and the evolution of trade and industrial policies could affect the outlook. But sales of EVs are being supported by their increasing affordability, the report finds. Purchase gap with conventional cars still persists On a global level, the average price of a battery electric car fell in 2024 amid growing competition and declining battery costs. In China, two-thirds of all electric cars sold last year were priced lower than their conventional equivalents, even without purchase incentives. However, the purchase price gap with conventional cars persisted in many other markets. The average battery electric car price in Germany, for example, remained 20% higher than that of its conventional counterpart. In the United States, battery electric cars were still 30% more expensive. EVs remain consistently cheaper to operate across many markets, based on current energy market prices. Even if oil prices were to fall as low as $40 per barrel, running an electric car in Europe via home charging would still cost about half as much as running a conventional car at today's residential electricity prices. According to the report, almost one-fifth of electric car sales worldwide are of imported vehicles. China, which accounts for more than 70% of global production, shipped nearly 1.25 million electric cars to other countries in 2024. This included to many emerging economies, where electric car prices fell considerably on the back of Chinese imports. ALSO READ: India's EV industry sales jump 27% in CY2024 but miss 2-million mark by a whisker
Hindustan Times
18-05-2025
- Automotive
- Hindustan Times
Hyundai Creta Electric's top trim registering major demand. Here's what it offers?
The Hyundai Creta is available in two battery pack choices, 51.4 kWh and 42 kWh. The Hyundai Creta is available in tw battery pack choices, 51.4 kWh and 42 kWh. Check Offers The Hyundai Creta Electric, which is the pure electric version of the popular Hyundai Creta SUV, was launched in India earlier this year at the Bharat Mobility Expo 2025. The electric SUV, which is available in two different battery pack choices and six different trim options, have been witnessing high demand amid the growing popularity of electric cars in the country. Hyundai has revealed that it is getting maximum demand for the Creta Electric's higher-spec Excellence LR variant that is powered by a 51.4 kWh battery pack. Interestingly, the South Korean automaker is not the only car manufacturer in India in terms of seeing top-end demand for its EVs, with both Tata Motors and Mahindra too echoing similar sentiments in terms of recording demand for their respective electric cars. Also Read : Upcoming cars in India The fully loaded version of the Excellence LR trim of the Hyundai Creta Electric, like its internal combustion engine-powered sibling, has a plethora of features onboard. Some of these key features include the dual digital screens comprising a touchscreen infotainment system and a fully digital instrument cluster, Level 2 ADAS suite, powered driver's seat with ventilation, V2L (vehicle-to-load), connected car technology, Bose sound system, and a panoramic sunroof, among others. Hyundai Creta EV is the brand's first-ever locally produced electric car. Buoyed by the positive consumer response for this electric SUV, Hyundai is now working on the Carens Clavis EV, which will come as an EV version of the recently launched Carens Clavis. The Hyundai Carens Clavis EV is scheduled to launch in India later this year. Meanwhile, here is a quick look at the key features of the Hyundai Creta Electric's Excellence LR trim. Hyundai Creta Electric: What the Excellence LR trim offers At the exterior, the Excellence LR trim of the Hyundai Creta Electric gets features such as quad beam LED headlamps, horizon LED positioning lamp and DRLs, LED high mounted stop lamp, LED tail lamps, rear horizon LED lamp, LED turn signal with sequential function, LED turn indicators on ORVMs, charging port with multi-colour surround light and the state-of-charge (SOC) indicator. It runs on 17-inch aero alloy wheels with low rolling resistance tyres. Inside the cabin, it gets features such as a voice-enabled smart panoramic sunroof, dual zone automatic temperature control with touch function, front row ventilated seats, electric parking brake with auto hold, smartphone wireless charger, multiple drive modes, paddle shifters for adjustable regenerative braking, ADAS-linked regenerative braking system, cruise control, smart key with push button start, remote start with smart key, etc. It also gets a front armrest with cooled storage, open console storage with lamp, rear centre armrest with cup holders, electric tailgate release, rear AC vents, etc. Watch: Hyundai Creta EV review | India's best-selling SUV goes electric | Range, Battery, Price expectation Other features include a 10.25-inch fully digital multi-display digital cluster, a 10.25-inch HD audio video navigation system with Android Auto and Apple CarPlay connectivity, a Bose premium sound eight-speaker system, voice recognition, Hyundai Bluelink, in-car payment, Over-the-Air (OTA) updates for map and infotainment, Home-to-Car (H2C) with Alexa, etc. On the safety front, it gets front, side and curtain airbags, ABS with EBD, Electronic stability control (ESC), Vehicle stability management (VSM), Hill-start assist control (HAC), Hill descent control (HDC), Tyre pressure monitoring system (TPMS), front and rear disc brakes, seat belt pretensioners, child seat anchor (ISOFIX), Emergency Stop Signal (ESS), impact sensing auto door unlock, speed sensing auto door lock, inside door handle override, engine immobilizer, burglar alarm, central locking, etc. Check out Upcoming EV Cars in India, Upcoming EV Bikes in India. First Published Date: 18 May 2025, 11:09 AM IST
Time of India
16-05-2025
- Automotive
- Time of India
Hyundai India sets sights on EV-led sales
Hyundai Motor India Limited (HMIL) is aiming to generate most of its sales from electric vehicles (EVs) by FY30, with electric powertrains expected to contribute more than ICE (Internal Combustion Engine) vehicles, said the top management. 'We are set to accelerate our presence in the EV market, building on the strong foundation laid in FY25 with the launch of the Creta Electric,' Unsoo Kim, MD, Hyundai Motor India, said. Currently, Hyundai India's electric portfolio, which reported sales of 3,969 units in the recently closed fiscal year, incorporates the newly debuted Creta Electric and IONIQ 5. The Creta Electric has received a good consumer response till now, added the management. Creta Electric's increased popularity has given a significant boost to the company's plan to delve into EVs across segments, identifying a 'blue ocean' of both mass-market and premium categories. The company has also decided to switch to DC fast chargers from AC chargers after observing the current EV market ecosystem. With six electric product launches in the pipeline, the company is expanding 89 operational EV chargers to 600 by 2032. With a focus on localisation of crucial components such as batteries, drivetrain/power electronics, and is open for collaborations with Indian partners for EV cells. The automajor is also focusing on robust EV infrastructure, localisation of its components through the new Talegaon plant opening. Focus on market share Hyundai has also outlined a major expansion strategy to regain its position in the Indian market as the carmaker observes a market share slide. Its market share dropped to 14 per cent in the last financial year--its lowest since FY13. The South Korean major is aligning 26 new launches and new powertrain technology inclusion to claw back its loosened position. The launch pipeline incorporates 20 ICE and 6 EVs with multiple hybrids (including a strong hybrid powertrain) by the decade's end, said Kim during the post-earnings call for Q4 FY25. "Looking ahead, we remain cautiously optimistic on the domestic demand outlook in the near term amid prevailing macro-turbulences and weakening customer sentiments,' said Unsoo Kim, MD, Hyundai Motor India. Though it hopes for a market recovery by RBI rate cuts and income tax reliefs. By FY27, Hyundai will roll out eight new models that are going to be a mix across powertrains, said COO, Tarun Garg . However, further details about the launches are expected to be revealed during the company's September investor meeting. Talegaon plant The South Korean automaker is planning to roll out its electric and ICE vehicles from its yet-to-be-operationalised Talegaon, Pune plant. It has planned a capital expenditure of ₹7,000 crore in the ongoing fiscal, with 40 per cent of the amount's infusion in its manufacturing plant in Pune, while 25 per cent will be for its product expansion, the management added. The production from the plant will commence from Q3 of FY26 to cater to the various market demands. However, the company also expects a short-term margin pressure due to the new plant opening. On the export front, the company has a growth projection of 7–8 per cent this fiscal. This projection aligns with its earlier aim to make India Hyundai's largest export hub after its home country.
