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NDTV
08-05-2025
- Automotive
- NDTV
FTA: Only A Few Thousand Units Of British EVs To Remain Duty-Free
New Delhi: India has capped the duty-free import quota for electric vehicles under the free trade agreement with the UK to a few thousand units only and sensitivity of the sector has been taken care of, an official said on Tuesday. India and the UK on Tuesday sealed a landmark free trade agreement that will lower tariffs on 99 per cent of Indian exports and would make it easier for British firms to export whisky, cars and other products to India, besides boosting the overall trade basket. The aim is to double the two-way commerce by 2030. Tariffs on automotive imports will go from over 100 per cent to 10 per cent under quotas on both sides, benefiting companies such as Tata-JLR. The official also said that the duty-free access to imports of internal combustion engine vehicles from the UK is also limited to a pre-defined quota. "The duty-free quota on EVs is limited only to a few thousand. No out-of-quota duty reduction for EVs. The sensitivity related to EVs has been taken care of," the official, who did not wish to be named, said. Further, the out-of-quota duty on internal combustion engine vehicles will be reduced gradually over a longer period of time, thereby helping Indian industries to absorb the incremental increase of imports from the UK. "As the fourth-largest automobile producer globally, India possesses the scale and strategic depth to emerge as a global leader in the automotive value chain," the official said. Despite India's strong manufacturing base, its share in the globally traded auto market remains subdued, highlighting a vast scope for expansion. The duty-free access to the UK market for internal combustion engine vehicles has the potential to boost India's auto and auto components exports. The total electric passenger vehicle retail sales in India grew by 56.87 per cent in April this year to 12,233 units compared to 7,798 units in the same month last year, according to the latest data released by the Federation of Automotive Dealers Associations (FADA). Tata Motors continued to lead the market with 4,436 units of electric PVs sold last month, although JSW MG Motor India and Mahindra & Mahindra (M&M) are catching up with 3,462 units and 2,979 units respectively, as per FADA data collated as on May 2 this year. The official also said sensitive industrial goods like plastics, diamond, silver, base stations, smartphones, television camera tubes, optical fibres, optical fibre bundles and cables are under the exclusion list of the agreement and no duty benefits would be provided on these under the FTA. In alcoholic beverages, the official said, Scotch Whisky constitutes only 2.5 per cent of the total whisky market. The tariff reduction being announced by India on the imports of Scotch Whisky from the UK is over a longer period of time (10 years) and even after that, it will attract significant customs duty of 40 per cent. "The incremental increase in imports of Scotch Whisky, therefore, would not significantly affect the domestic market," the official said, adding high duties on imported alcohol have affected the level of foreign direct investment (FDI) in the liquor industry. Liberalisation of duties would invite the UK's expertise in terms of spirit/wine making, quality control, marketing and consumer awareness. Hybrids, EVs Major Contributer To Sales Of Imported Cars In South Korea In terms of fuel type, hybrid vehicles led the sales, accounting for 63.7 percent, followed by EVs and gasoline models, at 17.3 percent and 17.1 percent, respectively. IANS News May 08, 2025 17:17 pm IST Published OnMay 08, 2025 17:00 pm IST Twitter WhatsApp Facebook Reddit Email The number of imported vehicles sold in South Korea last month dropped slightly from a year earlier, but eco-friendly vehicles such as hybrids and electric vehicles (EVs) accounted for a record 81 percent of the total, industry data showed on Thursday. According to the Korea Automobile Importers and Distributors Association (KAIDA), a total of 21,495 imported cars were newly registered in April, down 0.3 percent from a year ago. KAIDA attributed the decrease to price hikes and inventory shortages for certain brands, reports Yonhap news agency. By brand, BMW retained the top spot with 6,710 units sold, followed by Mercedes-Benz, Tesla and Lexus, with 4,908, 1,447 and 1,353 units, respectively. In terms of fuel type, hybrid vehicles led the sales, accounting for 63.7 percent, followed by EVs and gasoline models, at 17.3 percent and 17.1 percent, respectively. Diesel models accounted for 1.9 percent of total imports. By individual model line, Mercedes-Benz's E-Class topped the sales chart with 2,151 units, followed by BMW's 5 Series and Tesla's Model Y, with 2,040 units and 804 units, respectively. Meanwhile, the sale of imported vehicles in South Korea gained 24.4 percent from a year earlier in February, helped by the announcement of this year's government subsidies for electric vehicles (EVs), industry data showed recently. The number of newly registered imported cars came to 20,199 units in February, up from 16,237 units from a year ago, according to the Korea Automobile Importers & Distributors Association. On a monthly basis, the tally represents a 32.6 percent surge from January. In terms of fuel types, hybrid registrations totalled 13,013 units, or 64.4 percent of all new imported cars. Electric, gasoline and diesel model registrations followed at 18.6 percent, 16 percent and 1 percent, respectively. BMW was the most popular brand, selling 6,274 units, followed by Mercedes-Benz, which sold 4,663 units.
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Business Standard
07-05-2025
- Automotive
- Business Standard
No duty cuts by India on diamond, smartphones, fibres in UK trade pact
India has excluded several sensitive industrial goods from duty concessions under the recently concluded Free Trade Agreement (FTA) with the United Kingdom, news agency PTI reported citing an official. The list of excluded items includes diamonds, silver, smartphones, plastics, base stations, television camera tubes, optical fibres, and cables. These products will not receive any import duty benefits under the trade pact, the official said. The official also clarified that duty concessions on petrol and diesel vehicles imported from the UK will be limited to a pre-defined quota. A similar quota cap applies to electric vehicle (EV) imports at a concessional customs duty rate, restricted to only a few thousand units. 'No out-of-quota duty reduction for EVs. The sensitivity related to EVs has been taken care of. The out-of-quota duty on ICE [internal combustion engine] vehicles will be reduced gradually over a longer period of time, thereby helping our industries absorb the incremental increase of imports from the UK,' the official added. India is the world's fourth-largest automobile producer, with a strong manufacturing base. However, its share in global auto exports remains limited. The government believes that improved access to the UK market could boost exports of Indian automobiles and auto components. The India-UK FTA was finalised on Tuesday. The agreement is set to eliminate or reduce tariffs on 99 per cent of Indian exports to the UK and improve access for British products like whisky and premium cars. The goal is to double bilateral trade from the current $60 billion to $120 billion by 2030. As part of the agreement, tariffs on automobile imports will be reduced from over 100 per cent to 10 per cent, under quotas on both sides. This is expected to benefit companies like Tata-Jaguar Land Rover. According to the Federation of Automotive Dealers Associations (Fada), electric passenger vehicle sales in India rose by 56.87 per cent in April 2025 to 12,233 units, up from 7,798 units in April 2024. Tata Motors led the market with 4,436 EV units sold, followed by JSW MG Motor India (3,462 units) and Mahindra & Mahindra (2,979 units). India imported only 60 passenger vehicles from the UK in 2024, worth $2.75 million. Most auto manufacturing in the UK is focused on luxury brands such as Bentley, Rolls-Royce, BMW, and Aston Martin. Saurabh Agarwal, Partner & Automotive Tax Leader at EY India, said, 'This deal should really help our auto component makers sell more in the United Kingdom. At the same time, Indian consumers might be able to buy premium cars at the right price point as soon as they are launched globally. It probably won't shake up our Indian car manufacturers too much because most Indian consumers still prefer the more affordable options.' The FTA also provides India with longer timelines to phase out duties on products like ceramics, petroleum goods, chemicals such as carbon and sulphuric acid, and aircraft engines. In FY 2023–24, India exported goods worth $12.92 billion to the UK and imported goods worth $8.41 billion, maintaining a trade surplus.
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Business Standard
05-05-2025
- Automotive
- Business Standard
Auto retail sales rise 3% in April after two months of decline: Fada
Automobile retail sales witnessed a 3 per cent rise to 2.28 million units in April this year, up from 2.22 million units in April 2024. This came on the back of rising demand due to festivals across states, according to a report by the Federation of Automotive Dealers Associations (FADA) released on Monday. All categories, except commercial vehicles (CV), closed in the green, with two-wheelers, three-wheelers, passenger vehicles, and tractors up 2.25 per cent, 24.5 per cent, 1.5 per cent, and 7.5 per cent, respectively. However, CVs saw a 1.05 per cent year-on-year decline following OEM-led price increases against stagnant freight rates and fleet utilisation. This comes after overall automobile retail sales declined for the second consecutive month (0.7 per cent) in March. The fall was attributed to a 2 per cent slide in two-wheeler sales, a 6 per cent drop in three-wheeler sales, and a 6 per cent decline in tractor sales. Dealers indicate that advance purchases in March resulted in elevated carryover stocks, while holiday calendars dampened fresh enquiries and delayed conversions — particularly in the small commercial vehicle (SCV) cargo category, where price and product gaps have weighed heavily. "In addition to the festivals, pause on the tariff war and sharp pullback by stock markets also helped in the recovery of sales in April," said C. S. Vigneshwar, president, FADA. In the PV segment, Maruti Suzuki led the surge with 138,021 units with a 39.4 per cent market share. On the other hand, Mahindra & Mahindra came in second (14 per cent), followed by Tata Motors (13 per cent), and Hyundai Motor (12.5 per cent). 'This reflects a discount-led market and elevated inventories—approximately a 50-day supply—amid cautious consumer sentiment that tempered enquiry-to-sale conversions,' he said. "Sustained SUV demand underpinned volumes even as entry-level customers remained cautious, underscoring the need for OEMs to recalibrate production and reduce stock levels to mitigate deeper discounts and carrying costs at dealerships," he added. The rise in two-wheelers was attributed to buoyant enquiry growth in rural areas post-Rabi harvest, driven by strong crop yields, healthy reservoir levels, and a favourable monsoon outlook, while wedding-season tailwinds sustained rural offtake. FADA expects improved numbers going ahead, as May's agricultural cycle is concluding on a strong note. 'The IMD's forecast of an above-normal southwest monsoon bodes well for rural incomes, farm-sector growth, and downstream demand, while a well-distributed rainy season is critical to containing food inflation. At the same time, Kantar's Rural Barometer and GroupM data signal heightened consumer selectivity in rural India—household spending has outpaced income growth, and inflationary pressures are tempering discretionary purchases,' Vigneshwar said.
Economic Times
05-05-2025
- Automotive
- Economic Times
With tariff war paused, customers leverage festivals to boost auto sales in April: FADA
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Auto Overall automobile retail sales in India grew a modest 2.95 per cent in April this year to 22,87,952 units with completion of purchases by customers around Chaitra Navratri, Akshay Tritiya, Bengali New Year, Baisakhi and Vishu helping April end on a positive note, Federation of Automotive Dealers Associations said on Monday. Total automobile sales in India in April 2024 stood at 22,22,463 units, Federation of Automotive Dealers Associations (FADA) said in a statement."With the tariff war paused, stock markets staged a sharp pullback -- alleviating investor concerns -- and customers thus leveraged Chaitra Navratri, Akshay Tritiya, Bengali New Year, Baisakhi and Vishu to complete purchases, helping April end on a positive note," FADA President C S Vigneshwar said two-wheeler retail volumes demonstrated a resilient up-cycle -- growing 2.25 per cent year-on-year and accelerating 11.84 per cent month-on-month, underscoring a stable demand environment amid mixed headwinds."Dealers reported buoyant enquiry growth in rural areas post-Rabi harvest, driven by strong crop yields, healthy reservoir levels and a favourable monsoon outlook, while wedding-season tailwinds sustained rural offtake," Vigneshwar categories except commercial vehicles (CV) closed in the green, with two-wheelers, three-wheelers, passenger vehicles (PV) and tractor up 2.25 per cent, 24.5 per cent, 1.5 per cent, and 7.5 per cent, respectively, while CVs declined 1 per cent, FADA retail sales in April this year stood at 16,86,774 units as against 16,49,591 units in the same month last year, up 2.25 per retail last month stood at 3,49,939 units as compared to 3,44,594 units in April 2024, up 1.55 per cent, it demand remained robust, supported by new-model introductions, although elevated financing costs and new emission norm 'OBD2B'-linked price adjustments posed isolated bottlenecks, he the outlook, FADA said dealer feedback paints a nuanced picture for May across all segments with PV retails expected to hold steady but muted, as buyers await new-model roll-outs and contend with elevated financing two-wheelers, FADA said, "Marriage-season and post-harvest demand should underpin enquiries, yet financiers are tightening customer-level credit criteria -- higher CIBIL requirements and down-payment mandates -- despite broader banking-system liquidity. Summer heat and school holidays may further suppress showroom visits though IMD predicts that it may not be as bad as last year."CVs are likely to trade flat, weighed down by a high-base effect, slower e-commerce activity and intensifying competition from electric three-wheelers; targeted OEM incentive schemes and forthcoming infrastructure projects offer some offset, it added.
NDTV
05-05-2025
- Automotive
- NDTV
FADA: Automobile Retail Sales Show Signs Of Growth With 2.95 PC Uptick
New Delhi: Overall automobile retail sales in India grew a modest 2.95 per cent in April this year to 22,87,952 units with completion of purchases by customers around Chaitra Navratri, Akshay Tritiya, Bengali New Year, Baisakhi and Vishu helping April end on a positive note, Federation of Automotive Dealers Associations said on Monday. Total automobile sales in India in April 2024 stood at 22,22,463 units, Federation of Automotive Dealers Associations (FADA) said in a statement. All categories except commercial vehicles (CV) closed in the green, with two-wheelers, three-wheelers, passenger vehicles (PV) and tractor up 2.25 per cent, 24.5 per cent, 1.5 per cent, and 7.5 per cent, respectively, while CVs declined 1 per cent, FADA said. Two-wheeler retail sales in April this year stood at 16,86,774 units as against 16,49,591 units in the same month last year, up 2.25 per cent. PV retail last month stood at 3,49,939 units as compared to 3,44,594 units in April 2024, up 1.55 per cent, it added. "With the tariff war paused, stock markets staged a sharp pullback -- alleviating investor concerns -- and customers thus leveraged Chaitra Navratri, Akshay Tritiya, Bengali New Year, Baisakhi and Vishu to complete purchases, helping April end on a positive note," FADA President C S Vigneshwar said. He said two-wheeler retail volumes demonstrated a resilient up-cycle -- growing 2.25 per cent year-on-year and accelerating 11.84 per cent month-on-month, underscoring a stable demand environment amid mixed headwinds. "Dealers reported buoyant enquiry growth in rural areas post-Rabi harvest, driven by strong crop yields, healthy reservoir levels and a favourable monsoon outlook, while wedding-season tailwinds sustained rural offtake," Vigneshwar said. Urban demand remained robust, supported by new-model introductions, although elevated financing costs and new emission norm 'OBD2B'-linked price adjustments posed isolated bottlenecks, he added. The PV segment, despite limited model introductions, registered a 1.55 per cent year-on-year increase alongside a marginal 0.19 per cent mom-on-month decline, Vigneshwar said, adding, "this performance reflects a discount-led market and elevated inventories -- approximately a 50-day supply -- amid cautious consumer sentiment that tempered enquiry-to-sale conversions". "Sustained SUV demand underpinned volumes even as entry-level customers remained cautious, underscoring the need for OEMs to recalibrate production and reduce stock levels to mitigate deeper discounts and carrying costs at dealerships," he said. FADA continues to advocate a 21-day inventory norm at dealerships to enhance market responsiveness and cost efficiency, Vigneshwar said. CV retail sales last month declined 1.05 per cent to 90,558 units as against 91,516 units in April 2024. On the other hand, tractor retail grew 7.56 per cent to 60,915 units, compared to 56,635 units in the year-ago month. Three-wheeler segment witnessed a robust 24.51 per cent rise at 99,766 units last month as compared to 80,127 units in April 2024, FADA said. On the outlook, FADA said dealer feedback paints a nuanced picture for May across all segments with PV retails expected to hold steady but muted, as buyers await new-model roll-outs and contend with elevated financing costs. In two-wheelers, FADA said, "Marriage-season and post-harvest demand should underpin enquiries, yet financiers are tightening customer-level credit criteria -- higher CIBIL requirements and down-payment mandates -- despite broader banking-system liquidity. Summer heat and school holidays may further suppress showroom visits though IMD predicts that it may not be as bad as last year." CVs are likely to trade flat, weighed down by a high-base effect, slower e-commerce activity and intensifying competition from electric three-wheelers; targeted OEM incentive schemes and forthcoming infrastructure projects offer some offset, it added. PTI RKL TRB
