Latest news with #FederationofAutomobileDealersAssociations
NDTV
a day ago
- Automotive
- NDTV
Passenger Vehicle Sales Slip 3 Per cent In May Amid Weak Demand
Passenger vehicle retail sales witnessed a 3 per cent on-year decline in May with customers delaying purchases in several states due to the India-Pakistan conflict and further softening of demand for entry-level models, dealers' body FADA said on Friday. The passenger vehicle registrations last month stood at 3,02,214 units, as compared to 3,11,908 units in May 2024. Also Read: Will Donald Trump And Elon Musk's Feud Affect EV-Makers India Entry? Entry-level models were hardest hit, as constrained financing and subdued consumer sentiment compounded the slowdown, the Federation of Automobile Dealers Associations (FADA) said in a statement. Heightened war-related worries and border tensions in Jammu & Kashmir, Punjab, Rajasthan, and Gujarat further prompted buyers to delay purchases, it added. Although bookings remained fairly healthy, retail conversions lagged on margin-money challenges and deferred decisions, the dealers' body stated. The passenger vehicle Original Equipment Manufacturers (OEMs) must adopt a cautious, ground-reality-aligned approach to production planning and channel incentives so that dealers are not burdened by rising carrying costs or forced into excessive discounting, it noted. Two-wheeler retail sales rose 7 per cent year-on-year in May at 16,52,637 units, as against 15,40,077 units in the year-ago period. Dealers attribute this resilience to a higher number of auspicious marriage days, a strong Rabi harvest, and pre-monsoon demand, especially in semi-urban and rural markets, FADA said. "That said, financing constraints in the economy segment capped full upside potential. Looking ahead, stakeholders should continue to monitor liquidity access and model availability to preserve momentum," it added. Commercial vehicle retail sales declined 4 per cent year-on-year to 75,615 units in May on account of muted freight cycles, tight liquidity, and adverse geopolitical sentiment, FADA stated. While bus sales offered some relief, passenger carriers and commodity-linked segments (cement, coal) saw sharp de-growth due to delayed financing and softening TIV (total industry volume), it added. Wholesales, however, accelerated as OEMs and Dealers built inventory ahead of the June 2025 mandatory AC driver-cabin regulation, it added. Three-wheeler registrations increased 6 per cent year-on-year to 1,04,448 units in May. On business outlook, FADA noted that global supply-chain headwinds -- from rare-earth constraints in EV components to ongoing geopolitical tensions -- may keep urban consumer sentiment in check. To navigate this lean yet resilient month, OEMs and financiers must synchronise production planning with ground-reality demand signals, deploy calibrated channel incentives, and secure adequate working-capital support, it said. Collectively, these factors point to a cautiously optimistic near-term outlook for auto retail in June, the dealers' body said. (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Time of India
a day ago
- Automotive
- Time of India
Rare Earth crunch: China's export curbs threaten India's EV motor supply chain
India's electric vehicle (EV) sector is staring at a potential supply chain crisis as China's tightening export controls on rare earth magnets threaten to disrupt the production of critical EV components, according to a recent Jefferies report. The report highlights that several Indian companies are struggling to import magnets — crucial for EV motors — from China, which dominates over 90 per cent of the world's magnet supply. With existing inventories depleting fast, Indian manufacturers fear a severe disruption in motor production, potentially stalling the growth of the EV sector. 'Industry is facing a challenge in importing magnets from China, and EV motor production could be at risk once existing inventories are exhausted,' the report stated. Supply Risk Spreads Across Sector The Federation of Automobile Dealers Associations (FADA) echoed similar concerns in its monthly vehicle sales update. It warned that supply-chain headwinds, such as rare earth constraints and global geopolitical tensions, are dampening urban consumer sentiment and pushing up input costs. To mitigate the shortfall, some Indian OEMs are exploring the possibility of importing fully assembled motors from China. However, this alternative is fraught with challenges — including major supply chain reconfiguration, potential loss of domestic value addition, and the need for fresh homologation approvals under Indian regulatory norms. This could jeopardise eligibility for Production-Linked Incentive (PLI) schemes. Government Steps In In response, the Indian government is reportedly in talks with industry stakeholders to build strategic stockpiles of rare earth magnets. Fiscal incentives are also being considered to encourage domestic production of these vital components, according to a Reuters report. While rare earth elements (REEs) are not geologically scarce, their concentration and refining complexity make supply highly dependent on China. As of now, China controls nearly 70 per cent of global REE mining and 90 per cent of refining and magnet production. With export approvals now required even for automotive-grade magnets, China's restrictions — announced in April citing national security — are already adding uncertainty and delay in procurement. If disruptions intensify, India's EV transition could be slowed significantly in the coming months.
Economic Times
a day ago
- Automotive
- Economic Times
Passenger vehicle retail sales dip 3% in May as demand softens
New Delhi: Passenger vehicle retail sales witnessed 3 per cent on-year decline in May with customers delaying purchases in several states due to India-Pakistan conflict and further softening of demand for entry-level models, dealers' body FADA said on Friday. The passenger vehicle registrations last month stood at 3,02,214 units, as compared to 3,11,908 units in May 2024. Entry-level models were hardest hit, as constrained financing and subdued consumer sentiment compounded the slowdown, the Federation of Automobile Dealers Associations (FADA) said in a statement. Heightened war-related worries and border tensions in Jammu & Kashmir, Punjab, Rajasthan, and Gujarat further prompted buyers to delay purchases, it added. Although bookings remained fairly healthy, retail conversions lagged on margin-money challenges and deferred decisions, the dealers' body stated. The passenger vehicle Original Equipment Manufacturers (OEMs) must adopt a cautious, ground-reality-aligned approach to production planning and channel incentives so that dealers are not burdened by rising carrying costs or forced into excessive discounting, it noted. Two-wheeler retail sales rose 7 per cent year-on-year in May at 16,52,637 units, as against 15,40,077 units in the year-ago period. Dealers attribute this resilience to a higher number of auspicious marriage days, a strong Rabi harvest, and pre-monsoon demand -- especially in semi-urban and rural markets, FADA said. "That said, financing constraints in the economy segment capped full upside potential. Looking ahead, stakeholders should continue to monitor liquidity access and model availability to preserve momentum," it added. Commercial vehicle retail sales declined 4 per cent year-on-year to 75,615 units in May on account of muted freight cycles, tight liquidity, and adverse geopolitical sentiment, FADA stated. While bus sales offered some relief, passenger carriers and commodity-linked segments (cement, coal) saw sharp de-growth due to delayed financing and softening TIV (total industry volume), it added. Wholesales, however, accelerated as OEMs and Dealers built inventory ahead of the June 2025 mandatory AC driver-cabin regulation, it added. Three-wheeler registrations increased 6 per cent year-on-year to 1,04,448 units in May. On business outlook, FADA noted that global supply-chain headwinds -- from rare-earth constraints in EV components to ongoing geopolitical tensions -- may keep urban consumer sentiment in check. To navigate this lean yet resilient month, OEMs and financiers must synchronise production planning with ground-reality demand signals, deploy calibrated channel incentives, and secure adequate working-capital support, it said. Collectively, these factors point to a cautiously optimistic near-term outlook for auto retail in June, the dealers' body said.
Business Standard
a day ago
- Automotive
- Business Standard
India's auto retails register a modest growth of 5% in May
The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for May'25. According to FADA, the month of May registered a modest 5% year-on-year growth overall. Segment-wise, 2W, 3W, and Trac led the way with gains of 7.3%, 6.2%, and 2.7% respectively, while PV, CE, and CV declined by 3.1%, 6.3%, and 3.7%. In the 2W category, retail volumes fell 2.02% M-o-M but still posted a robust 7.31% Y-o-Y increase. Dealers attribute this resilience to a higher number of auspicious marriage days, a strong Rabi harvest, and pre-monsoon demand especially in semi-urban and rural markets. Passenger-vehicle retails contracted by 13.6% M-o-M and 3.1% Y-o-Y, while inventory dayswhich had hovered around 50have edged up to approximately 5253 days. Entry-level models were hardest hit as constrained financing and subdued consumer sentiment compounded the slowdown. Commercial-vehicle retails declined by 11.25% M-o-M and 3.71% Y-o-Y amid muted freight cycles, tight liquidity, and adverse geopolitical sentiment. While bus sales offered some relief, passenger carriers and commodity-linked segments (cement, coal) saw sharp de-growth due to delayed financing and softening TIV. Channel dynamics for June reflect this cautious optimism: monsoon-driven rural traction and festival pull-through should sustain 2W activity, yet persistent financing constraints and selective OEM price adjustments may temper incremental gains. PV dealers report elevated inventory days and legacy product portfolios, limiting retail conversions despite localized Rath Yatra uplifts. In the CV segment, inventory churn remains elevated as OEMs and Dealers pre-empt June 25 A/C-cabin regulations, while freight demand in coal, cement, and mining continues to be muted by liquidity bottlenecks and early rains. To navigate this lean yet resilient month, OEMs and financiers must synchronize production planning with ground-reality demand signals, deploy calibrated channel incentives, and secure adequate working-capital support. Collectively, these factors point to a cautiously optimistic near-term outlook for Auto Retail in June 25, as per FADA.
Time of India
a day ago
- Automotive
- Time of India
Passenger vehicle retail sales dip 3% in May as demand softens
New Delhi: Passenger vehicle retail sales witnessed 3 per cent on-year decline in May with customers delaying purchases in several states due to India-Pakistan conflict and further softening of demand for entry-level models , dealers' body FADA said on Friday. The passenger vehicle registrations last month stood at 3,02,214 units, as compared to 3,11,908 units in May 2024. Entry-level models were hardest hit, as constrained financing and subdued consumer sentiment compounded the slowdown, the Federation of Automobile Dealers Associations (FADA) said in a statement. Heightened war-related worries and border tensions in Jammu & Kashmir, Punjab, Rajasthan, and Gujarat further prompted buyers to delay purchases, it added. Although bookings remained fairly healthy, retail conversions lagged on margin-money challenges and deferred decisions, the dealers' body stated. Live Events The passenger vehicle Original Equipment Manufacturers (OEMs) must adopt a cautious, ground-reality-aligned approach to production planning and channel incentives so that dealers are not burdened by rising carrying costs or forced into excessive discounting, it noted. Two-wheeler retail sales rose 7 per cent year-on-year in May at 16,52,637 units, as against 15,40,077 units in the year-ago period. Dealers attribute this resilience to a higher number of auspicious marriage days, a strong Rabi harvest, and pre-monsoon demand -- especially in semi-urban and rural markets, FADA said. "That said, financing constraints in the economy segment capped full upside potential. Looking ahead, stakeholders should continue to monitor liquidity access and model availability to preserve momentum," it added. Commercial vehicle retail sales declined 4 per cent year-on-year to 75,615 units in May on account of muted freight cycles, tight liquidity, and adverse geopolitical sentiment, FADA stated. While bus sales offered some relief, passenger carriers and commodity-linked segments (cement, coal) saw sharp de-growth due to delayed financing and softening TIV (total industry volume), it added. Wholesales , however, accelerated as OEMs and Dealers built inventory ahead of the June 2025 mandatory AC driver-cabin regulation, it added. Three-wheeler registrations increased 6 per cent year-on-year to 1,04,448 units in May. On business outlook, FADA noted that global supply-chain headwinds -- from rare-earth constraints in EV components to ongoing geopolitical tensions -- may keep urban consumer sentiment in check. To navigate this lean yet resilient month, OEMs and financiers must synchronise production planning with ground-reality demand signals, deploy calibrated channel incentives, and secure adequate working-capital support, it said. Collectively, these factors point to a cautiously optimistic near-term outlook for auto retail in June, the dealers' body said.
