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Time of India
08-08-2025
- Automotive
- Time of India
Gujarat passenger vehicle sales dip 4.8% YoY in July
Ahmedabad: Passenger vehicle sales in Gujarat fell by 4.8% year-on-year in July 2025, down to 29,269 units from 30,744 in July 2024, according to data released by the Federation of Automobile Dealers Association (Fada). Tired of too many ads? go ad free now The decline in car sales contributed significantly to the marginal 0.42% drop in overall vehicle retail across the state. Dealers point to multiple demand-side and supply-side challenges as reasons behind the slowdown. Weak buyer sentiment, affordability concerns, and ongoing strain in the entry-level car segment weighed heavily on volumes. At the same time, supply constraints are proving to be a growing concern, particularly in the SUV category, where several popular new models are facing limited availability and prolonged waiting periods. Fada Gujarat state chairperson Pranav Shah said, "Dealers are struggling with supply issues, especially for some newly launched models which are not easily available in certain brands. In the SUV segment, waiting periods are also high in certain cases which is impacting retail numbers." "While the marginal dip in July was also linked to calendar shifts, such as the Rathyatra festival moving from July last year to June this year, the underlying market sentiment remains cautious. Little degrowth in two-wheeler and car sales was expected in July. If we consider that effect, July was overall a good month for the auto industry," Shah added. "It appears that market saturation set in this year, especially when compared to the strong sales seen over the past two years. The current volatility, both economic and geopolitical, is making buyers cautious, and this hesitation is more visible in urban centres where demand has clearly slowed. Tired of too many ads? go ad free now I believe many potential buyers are holding off in anticipation of new, affordable entry-level electric cars. That said, we are seeing a marginal uptick in rural sales, which is a positive sign," said a senior RTO officer. "Volatility in the stock market significantly impacted investor confidence, and that is directly reflecting in cautious consumer spending. Despite positive factors like a good monsoon and strong overall earnings, the broader geopolitical scenario and developments like US tariff actions are creating uncertainty. These elements are weighing on retail investor sentiment, which in turn is slowing down big-ticket purchases like cars," said Jigar Vyas, CEO of a car dealership based in Ahmedabad. Despite the subdued July performance, the industry remains optimistic about a revival in August, as a strong festive line-up — Rakshabandhan, Janmashtami, Independence Day and Ganesh Chaturthi — coincides with positive rural indicators.
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Business Standard
07-08-2025
- Automotive
- Business Standard
Trump tariff, IT job cuts, heavy rains dampen auto sales in July; down 4.3%
Uncertainty over US tariffs, possible impacts on the manufacturing sector, job cuts in the IT sector, and prolonged heavy rains collectively dampened automobile retail sales in India in July, which declined by 4.3 per cent compared to the same month last year. Two-wheeler sales contracted by 6.5 per cent, while passenger vehicle sales fell by nearly 1 per cent, according to data shared by the Federation of Automobile Dealers Associations (Fada). The industry body noted that job concerns in the manufacturing sector—linked to higher tariffs imposed on India by the Donald Trump administration—along with IT sector layoffs, may have negatively influenced consumer sentiment during the month. 'It should have affected in July, and may hit going ahead. We really don't know how much Donald Trump tariffs are going to affect the industry in terms of sentiments,' said C S Vigneshwar, president of Fada. Total auto retail sales stood at 1.96 million in July 2025, compared to 2.05 million in July 2024. The contraction in overall retail sales follows three consecutive months of growth. 'India's auto retail sector applied the brakes in July, with overall retails declining by 4.31 per cent year-on-year. This pullback largely stems from a high-base effect in July 2024, when an extreme heatwave was immediately followed by excessive rainfall, constraining volumes before a rebound later that month,' Vigneshwar added. During the month, construction equipment witnessed a 33.3 per cent degrowth, owing to strong growth in the past two months caused by a shift in emission norms. 'A lot of the customers pre-purchased in this segment due to new emission norms. This will settle going forward,' he said. On the other hand, three-wheelers, tractors, and commercial vehicles posted year-on-year growth of 0.83 per cent, 10.96 per cent, and 0.23 per cent, respectively. In the two-wheeler segment, July saw a 6.48 per cent year-on-year decline to 1.36 million, as crop-sowing activities and prolonged heavy rains dampened rural footfalls more sharply than urban demand. 'Dealers are confident of a post-monsoon uptick, with several purchase decisions deferred to August ahead of the festive season—making strategic stock alignment and focused rural–urban engagement imperative for reviving momentum,' he added. The passenger vehicles segment contracted by 0.81 per cent year-on-year, despite a 10.38 per cent surge in volumes on a monthly basis, driven by robust rural demand. The Aashaada period and auspicious delivery days, combined with targeted schemes, new model introductions, and aggressive rural marketing, boosted hinterland sales toward month-end. 'Urban demand, however, remained muted due to low enquiry and restrained customer sentiment. With inventory levels steady at around 55 days, calibrated discounting, streamlined finance facilitation, and intensified urban outreach will be crucial for sustaining festive-season growth,' Vigneshwar said. Commercial vehicles posted a modest 0.23 per cent year-on-year increase, led by urban momentum. Dealers cited new model launches, aggressive marketing support, bulk institutional orders, and timely stock availability as key drivers, alongside targeted schemes that bolstered school-bus volumes. In contrast, rural haulage demand remained fragmented amid heavy rainfall, seasonal softness in cement, coal, and construction logistics, and slower financier disbursements, prompting many buyers to defer purchases to the post-monsoon period. The tractor segment delivered a strong performance, with volumes up 10.96 per cent. 'The timely release of enhanced agricultural subsidies and favourable monsoon rains—together with strengthened rural liquidity—spurred a marked increase in purchase intent. This resilience underscores the pivotal role of policy interventions in sustaining agri-rural demand,' he said.
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Business Standard
08-07-2025
- Automotive
- Business Standard
EV sales rise 28.6% in June; electric PVs, CVs lead growth: Fada
India's electric vehicle (EV) market registered a 28.60 per cent year-on-year increase in total sales in June 2025, according to data shared by the Federation of Automobile Dealers' Associations (Fada). Fada President CS Vigneshwar credited the growth to government schemes, especially the PM e-Drive Scheme, and increased investments in domestic EV innovation. 'The rise in EV penetration across segments is a clear sign that India is embracing clean mobility,' he told news agency PTI. 'Electric three-wheelers now make up over 60 per cent of the segment sales, and electric cars and commercial vehicles are gaining ground.' Vigneshwar added that the expansion of charging infrastructure is also helping build consumer confidence, aligning India's EV ecosystem with the country's climate and energy security goals. e-PVs nearly double, two-wheelers sales up A total of 180,238 EV units were sold during the month, driven by sharp gains in electric passenger vehicles (e-PVs) and continued momentum across two-, three-, and commercial vehicle segments. The electric passenger vehicle segment nearly doubled, with sales rising 79.95 per cent to 13,178 units, compared to 7,323 units in June 2024, Fada data showed. The segment now accounts for 4.4 per cent of total EV sales, up from 2.5 per cent last year, indicating growing consumer trust in electric mobility for personal transport. Electric two-wheeler sales rose 31.69 per cent year-on-year to 1,05,355 units, up from 80,003 units in June 2024. Their share in overall two-wheeler sales also grew to 7.3 per cent, compared to 5.8 per cent a year ago. "Overall, June demonstrated a resilient two-wheeler performance amid mixed market signals,' Vigneshwar commented on June's Fada sales report released on Monday. Three-wheelers hold largest market share Electric three-wheelers retained their lead in EV market share, with 60,559 units sold, marking a 15.79 per cent year-on-year increase. Their share of total EV sales grew to 60.2 per cent, up from 55.4 per cent in June 2024, as their role in last-mile connectivity and urban logistics grows. Meanwhile, the electric commercial vehicle segment, while still small, recorded the highest growth rate, with sales rising 122.5 per cent to 1,146 units, up from 515 units in June 2024. Overall, automobile retail sales in June 2025 crossed two million units, marking a 5 per cent year-over-year increase from 1.91 million units sold in June 2024.
Mint
07-07-2025
- Automotive
- Mint
Auto dealers concerned about vehicle supplies amid rare earth magnet crisis
Automobile dealers have started ringing the alarm bells about the rare earth magnet crisis affecting the supply of vehicles in the coming months, nearly 100 days after China restricted the export of the critical component. For the first time since April when the rare earth magnet crisis began, the country's largest dealers body, Federation of Automobile Dealers Association (Fada), voiced its concerns over supply of vehicles from automakers in its outlook for the coming months. Fada's concerns about potential supply snags come even though automakers haven't yet reported any production cuts after stocking up on the permanent magnets in March and April. However, if the Chinese curbs don't ease in the coming months, production could yet be disrupted, hurting inventories at dealerships. Fada president C.S. Vigneshwar told Mint that automakers have not yet conveyed the full situation to dealers, which is adding to the uncertainty regarding the situation. 'We have been in touch with the automakers and industry bodies but there has been very little information conveyed about how the situation is evolving. While there is enough stock to meet demand for now, we need to know the supply situation," Vigneshwar said. Rare earth magnets are used in the traction motors of electric vehicles along with other electronic parts of vehicles including the telemetry system, which collects vehicle data on speed, and acceleration etc. In its near-term outlook as part of its monthly release, the dealers' body that has more than 15,000 members highlighted that component production can stall, leading to a reduction in the supply of vehicles in the coming months. 'Challenges in securing rare-earth materials have stalled component production, further constraining supply and retail volumes," the June near-term outlook statement of the dealers' body said. In May, Fada had noted the developments around rare earth magnets but did not foresee any threat to supply of vehicles. Most automakers in the country sell their vehicles through dealerships which are managed by third parties. Companies dispatch their vehicles directly to dealers who then sell them to customers. Any cut in production will end up impacting the dealers, which can increase wait time for customers as availability of vehicle models will be constrained. Experts highlight that any disruption of supplies with dealerships at the current stage can dampen prospects of the industry as festive season is just around the corner. Srihari Mulgund, a partner at EY Parthenon, notes that companies are entering a crucial phase as they begin stocking vehicles ahead of the festive season. "Certainty regarding the supply of vehicles in the coming months will be crucial as the festive season is also coming a bit early. Preparation for the season usually begins by this time," he said. The second half of the calendar year is usually an important time for the automakers as sales pick up around festivals like Ganesh Chaturthi, Diwali and Dusshera, among others. In FY26, carmakers are anticipating a slower growth of about 1-2% after the passenger vehicle market grew by 2% to 4.3 million units in FY25. On the other hand, two-wheeler sales grew 9.1% to 19.6 million units, according to data from the Society of Indian Vehicle Manufacturers (Siam). During this financial year, two wheeler players expect a 5-6% growth in the industry. As per Vigneshwar, the inventory levels are elevated at somewhere around 55 days for passenger vehicles and just over 30 days for two-wheeler vehicles. In May, Bajaj Auto had warned that if the rare earth magnet situation is not resolved, the auto industry will see production cuts from July onwards. Maruti Suzuki chairman R.C. Bhargava also mentioned that the country's largest automaker has rare earth magnet stock till July. 'Stocks are fast depleting. So far, 30 applications have been submitted to China, but none have received final approval. The Chinese government has said that final approvals will take about 45 days," Bajaj Auto executive director Rakesh Sharma said after the release of the company's January-March earnings. The management reiterated the outlook to analysts from Kotak Institutional Equities during a meeting. In a 30 June note, Rishi Vora of Kotak Institutional Equities wrote that launch timelines can start getting impacted soon. 'With rare earth supply expected to tighten from July, production schedules and growth in the EV segment may face disruptions, making material sourcing and supply chain stability essential focus areas for sustaining momentum," Vora wrote after meeting the company's management. 'E-rickshaw launch plans may also get delayed if the situation is not resolved." Mint reported on 7 July that automakers are now rushing to import fully built motors which need rare earth magnets as China continues to throttle the raw material's export. Companies have asked for a cut on import duties to manage the situation and avoid an increase in cost of vehicles.
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Business Standard
07-07-2025
- Automotive
- Business Standard
Auto retail sales rise 5% in June; passenger vehicles up 2.5%: Fada
Retail sales of passenger vehicles saw a 2.5 per cent on year rise in June, while the overall automobile sales grew by a healthy 5 per cent against the backdrop of a high base of the last year and amid the ongoing clouds of uncertainties due to the rare earth crisis and US tariffs. 'Last month was better than expected, as we were expecting slightly lower growth. This may grow further. The positive is that the monsoon has been good, while the US tariff issue and Chinese rare metal issue were major concerns for the industry. As of now, none of the original equipment manufacturers have raised any supply shortage due to the rare earth crisis,' CS Vigneshwar, president of the Federation of Automobile Dealers Associations (Fada) said on Monday. Vigneshwar also said that evolving geopolitical tensions and potential spillover from the US tariffs measures warrant vigilant supply chain management, and they could temper consumer sentiments. 'Also, challenges in securing rare-earth materials have stalled component production, further constraining supply and retail volumes,' the Fada president cautioned. Meanwhile, the first quarter of the financial year 2026 (Q1FY26) saw a 2.59 per cent growth in the retail sales of passenger vehicles. The overall passenger vehicle sales were seen up from 290,593 units in June 2024 to 297,722 units in June 2025. The top six players including Hyundai Motor (down by 2 per cent) and Tata Motors (down 8 per cent) saw a decline in sales. Market leader Maruti Suzuki India saw a marginal rise of 0.5 per cent, Mahindra & Mahindra over 11 per cent, Toyota Kirloskar Motor over 15 per cent, and Kia India around 7 per cent during the month under review. Segment-wise, every category closed in the green, with two-wheelers moving up by 5 per cent, three-wheelers by 6 per cent, tractors by 9 per cent, and commercial vehicles by 7 per cent, in addition to 2.5 per cent for passenger vehicles. The overall automobile retail sales for the month of June 2025 recorded a 5 per cent growth on year to 2.004 million, up from 1.91 million in June 2024. PV sales were up 2.59 per cent and two-wheelers at 5 per cent, alongside three-wheelers up by 12 per cent, commercial vehicles by a marginal 1 per cent, construction equipment by 11 per cent, and tractors by 6 per cent. 'While two-wheelers showed some early-cycle softness, we remain confident of a robust ramp-up in the coming months as seasonal demand and targeted OEM initiatives take effect,' Vigneshwar added. But month-on-month (M-o-M) figures were not impressive. PV retail sales in June slipped 1.49 per cent when compared to May. 'Heavy rains and tight market liquidity weighed on footfall and conversion, even as elevated incentive schemes and fresh bookings lent selective support. Some dealers indicated that certain PV OEMs have introduced compulsory billing procedures-- such as automatic wholesale debits-- to meet volume targets, inventory consequently stands at around 55 days. June thus painted a picture of modest but steadfast PV performance amid varied market cues,' he added. Two-wheeler retails dipped 12.48 per cent M-o-M. While festival and marriage-season demand provided a boost, financing constraints and intermittent variant shortages moderated sales. Early monsoon rains and rising EV penetration also shaped buying patterns. 'Several dealers cited compulsory billing and forced stock lifts, often via auto-debit wholesales, leading to mandated high days of inventory aligned with festival-season targets. Overall, June demonstrated a resilient two-wheeler performance amid mixed market signals,' Vigneshwar said. Commercial vehicle retails declined 2.97 per cent M-o-M while achieving a robust 6.6 per cent Y-o-Y expansion.
