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Time of India
06-08-2025
- Automotive
- Time of India
June sees first decline in SUV sales in India in over five years amid economic challenges
Monthly SUV sales in India fell for the first time in more than five years in June, weighed down by IT sector layoffs, geopolitical uncertainties and macro challenges. The sport utility vehicle segment has been the key driver of demand in the passenger vehicle market for nearly a decade now. According to latest industry data for the SUV segment exclusively accessed by ET, sales fell by 2.1% from last year to about 175,000 units in June. Segment-wise passenger vehicle sales data is yet to be compiled for July. This is the first instance of a monthly decline in SUV sales after years of sustained growth, said industry experts. Slowing SUV sales, in addition to already sluggish overall demand for cars, underscores some buyer fatigue in the category, they noted. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Undo SUVs have steadily bolstered their position in the domestic market, currently accounting for about 55% of all passenger vehicles sold. The segment spans micro-SUV models, compact SUVs, mid-sized as well as large SUVs, catering to a wide array of buyers. 'SUV sales dropped for the first time since the pandemic this June. In fact, for the first time in many years, SUV sales grew in modest single digits in the first quarter of FY26,' said a senior industry executive, requesting anonymity. SUV sales grew in the strong double digits between FY20 and FY25. Live Events However, in the first quarter of this fiscal year, SUV sales slowed to a 5.6% increase at 572,000 units, from a 11.3% rise in FY25. Sales had grown by 42% in FY22, 36% in FY23 and 27% in FY24. SUVs have been significantly outpacing overall passenger vehicle sales, with their share rising to 55% as of March-end, from 14.3% in FY15. 'Even when PV sales had dropped by around 18% in FY20 on the back of a broader slowdown in the local market, SUV sales had declined at a much lower rate, about 7%, increasing their share in the total tally. Now even this differential — PV sales fell by 7% and SUVs by 2% in June — has started coming down, hinting that the segment may be plateauing,' said the executive. 'We have to watch over the next few quarters if the share of SUVs in PV sales grows further or has bottomed out.' Ravi Bhatia, president at automotive consultancy firm Jato Dynamics confirmed the trend reversal. 'Monthly sales data for 2025 reveals a marked and consistent decline in SUV sales between January and June. This appears to be the first prolonged downturn in SUV demand since the pandemic, possibly driven by economic uncertainty, rising fuel costs and changing buyer sentiment,' he said. Data from Jato showed sales of SUVs, excluding luxury models, fell to 171,341 units in June from 211,946 in January. Luxury SUV sales during the month totalled about 3,660 units. about 3,660 units. SUVs typically account for about 60% of all new vehicle sales in developed markets. 'In India, while the growth rate in the SUV segment has started moderating, demand for MPVs is picking up,' another executive said. 'The debate now is around what point the SUV segment will plateau at.' Carmakers, though, are hopeful of a sales revival for the rest of the fiscal, especially the coming festive season, backed by product launches. The country's largest carmaker, Maruti Suzuki , is confident of expanding its footprint in the category through two new products this fiscal, including a battery electric vehicle (BEV). 'Our focused product interventions since June 2022 have resulted in a 75% increase in the SUV market share: From around 12% in FY23 to approximately 21% in FY24 and FY25,' said Partho Banerjee, senior executive officer for marketing and sales, Maruti Suzuki. Mahindra & Mahindra (M&M) too is looking to beat the industry trend and post double-digit growth in SUV sales in FY26. 'Mahindra has projected a target growth of mid-to-high teens for its SUV segment in FY26,' said Nalinikanth Gollagunta, chief executive, automotive division, at M&M. The company is slated to introduce multiple models — including mid- and lower-pack BEV SUVs, two all-new BEV SUVs and new variants of select fossil fuelpowered SUVs — to sustain its growth momentum.
Time of India
23-07-2025
- Automotive
- Time of India
Chinese automakers gain ground in contracting European market, data shows
Car registrations across Europe declined in June, with a 4.4% year-on-year drop to 1.25 million vehicles, data from Jato Dynamics showed on Wednesday. While overall demand softened, Chinese automakers continued to gain ground, taking a record market share and squeezing several established European brands, the research data showed. While overall demand softened, Chinese automakers continued to gain ground, taking a record market share and squeezing several established European brands, the research data showed. WHY IT'S IMPORTANT Chinese automakers are expanding in Europe, breaking into a market traditionally dominated by European and American brands supported by their cheaper pricing amid a shift towards electric vehicles . This has stoked trade tensions between Brussels and Beijing, including a row over EU tariffs on Chinese-made EVs, imposed to protect European producers. BY THE NUMBERS Chinese brands nearly doubled their combined share of the European market to 5.1% in the first half of 2025, just shy of Mercedes-Benz's 5.2per cent, the report said. Registrations of Chinese vehicles surged 91% since the start of the year. BYD , Jaecoo, Omoda, Leapmotor and Xpeng were the five names fuelling the surge, with BYD alone registering 70,500 units in the first six months of 2025, a 311per cent jump from a year ago. Stellantis saw the steepest market share decline among major automakers, to 15.3% from 16.7% a year earlier. The second biggest decline came from Tesla , to 1.6% in the half-year period versus 2.4% last year. Registrations of battery electric vehicles (BEV) surpassed one million for the first time in the first half, with a 25per cent rise to 1.19 million units — 17.4per cent of the market. KEY QUOTES "Persistently high prices, geopolitical and economic tensions with Europe's trading partners, and the postpandemic market reality are behind the decline," Felipe Munoz, global analyst at JATO Dynamics, said. "The updated Tesla Model Y has so far failed to provide the expected sales boost for the brand," Munoz said. "At the same time, competition from BYD and Volkswagen Group is making it harder for Tesla to maintain its leadership position."
Time of India
06-07-2025
- Automotive
- Time of India
ICE cars steal sales show so far this year, EVs in very slow lane
The electric dream is alive, with glitzy EV launches and a loud government push, but India's bumper-to-bumper traffic remains largely fossil-fuelled. Nine out of 10 cars sold in the first half of 2025 run on internal combustion engines (ICEs). While the government has set an ambitious target for electric vehicles to make up 30% of all passenger vehicle sales by 2030, carmakers are hedging their bets, underscoring the wide gap between policy ambitions and market reality. Maruti Suzuki , India's largest carmaker, sold 87% ICE vehicles - those run on petrol, diesel and CNG - in the January-June period, with hybrid and mild hybrid EVs making up the remaining 13%, data collated by market researcher Jato Dynamics showed. The ICE share of Mahindra & Mahindra, which currently sells three EV models in the country and has several more lined up, was 93% during the period while Kia posted near 100% ICE sales. Clearly, the electric transition remains aspirational for most players, as consumers stay anchored to familiar, affordable technologies and remain reluctant to make the switch. "This is the nature of transition-it's gradual, uncertain, and complex," said a senior official of a Delhi-based car company who requested not to be identified. By 2030, however, electric and hybrid vehicles will account for at least 30-40% of the market - a big leap from the current under 10%, he added. Even Tata Motors, the market leader in electric cars, sold 88% ICE vehicles in the first half. A spokesperson said the firm's multi-powertrain strategy spanning petrol, diesel, CNG, and electric is "about giving consumers the power of choice while preparing for future shifts." Only two manufacturers bucked the trend. Toyota, with a diversified approach, saw 55% of sales come from combustion engines, balanced by 29% hybrids and 16% mild hybrids. JSW MG Motor went all-in on electric, targeting urban buyers willing to pay premium prices. As a result, 81% of its sales came from battery electric vehicles (BEVs). The government is playing its part, continuing to offer FAME II (Faster Adoption and Manufacturing of Electric Vehicles) subsidies and pushing stricter emission norms. Yet, according to Ravi Bhatia , president of Jato Dynamics, price sensitivity and "charging anxiety" among consumers keep EVs largely confined to metro corridors. India's automotive landscape is not just vast, but deeply varied. Urban buyers prioritise convenience, while rural customers focus on affordability and durability. Some regions are seeing growing EV infrastructure, while others still struggle with basic electrification. That's why carmakers aren't putting all their eggs in one basket, Bhatia explained. CNG is gaining popularity in urban and semi-urban areas for its lower running costs. Diesel has lost its popularity but continues to dominate high-mileage segments such as SUVs. Petrol remains the most widely accessible fuel. Meanwhile, EVs are making quiet but steady inroads as infrastructure begins to improve. India's auto market could reach 7.5 million units by 2030, with electric and hybrid vehicles expected to capture a 30-40% share. Tata Motors has committed ₹33,000-35,000 crore toward its passenger and EV businesses from FY26 to FY30 to drive product-led growth, including seven all-new nameplates and 23 model updates across ICE, CNG and electric segments. As BS7 emission norms loom and global supply chains shift toward electrification, manufacturers are carefully balancing immediate consumer demand with long-term regulatory pressures. The question is no longer if the transition will happen, but which companies will survive the journey, industry executives said.
Time of India
05-07-2025
- Automotive
- Time of India
ICE cars steal sales show so far this year, EVs in very slow lane
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Renewables Tired of too many ads? Remove Ads The electric dream is alive, with glitzy EV launches and a loud government push, but India's bumper-to-bumper traffic remains largely fossil-fuelled. Nine out of 10 cars sold in the first half of 2025 run on internal combustion engines (ICEs).While the government has set an ambitious target for electric vehicles to make up 30% of all passenger vehicle sales by 2030, carmakers are hedging their bets, underscoring the wide gap between policy ambitions and market reality. Maruti Suzuki , India's largest carmaker, sold 87% ICE vehicles - those run on petrol, diesel and CNG - in the January-June period, with hybrid and mild hybrid EVs making up the remaining 13%, data collated by market researcher Jato Dynamics ICE share of Mahindra & Mahindra, which currently sells three EV models in the country and has several more lined up, was 93% during the period while Kia posted near 100% ICE the electric transition remains aspirational for most players, as consumers stay anchored to familiar, affordable technologies and remain reluctant to make the switch."This is the nature of transition-it's gradual, uncertain, and complex," said a senior official of a Delhi-based car company who requested not to be identified. By 2030, however, electric and hybrid vehicles will account for at least 30-40% of the market - a big leap from the current under 10%, he Tata Motors , the market leader in electric cars, sold 88% ICE vehicles in the first half. A spokesperson said the firm's multi-powertrain strategy spanning petrol, diesel, CNG, and electric is "about giving consumers the power of choice while preparing for future shifts."Only two manufacturers bucked the trend. Toyota, with a diversified approach, saw 55% of sales come from combustion engines, balanced by 29% hybrids and 16% mild hybrids. JSW MG Motor went all-in on electric, targeting urban buyers willing to pay premium prices. As a result, 81% of its sales came from battery electric vehicles (BEVs).The government is playing its part, continuing to offer FAME II (Faster Adoption and Manufacturing of Electric Vehicles) subsidies and pushing stricter emission according to Ravi Bhatia, president of Jato Dynamics, price sensitivity and "charging anxiety" among consumers keep EVs largely confined to metro automotive landscape is not just vast, but deeply varied. Urban buyers prioritise convenience, while rural customers focus on affordability and durability. Some regions are seeing growing EV infrastructure, while others still struggle with basic electrification. That's why carmakers aren't putting all their eggs in one basket, Bhatia is gaining popularity in urban and semi-urban areas for its lower running costs. Diesel has lost its popularity but continues to dominate high-mileage segments such as SUVs. Petrol remains the most widely accessible EVs are making quiet but steady inroads as infrastructure begins to auto market could reach 7.5 million units by 2030, with electric and hybrid vehicles expected to capture a 30-40% Motors has committed ₹33,000-35,000 crore toward its passenger and EV businesses from FY26 to FY30 to drive product-led growth, including seven all-new nameplates and 23 model updates across ICE, CNG and electric BS7 emission norms loom and global supply chains shift toward electrification, manufacturers are carefully balancing immediate consumer demand with long-term regulatory pressures. The question is no longer if the transition will happen, but which companies will survive the journey, industry executives said.
Time of India
03-07-2025
- Automotive
- Time of India
Premium products add to the vibe in Indian homes
There is no stopping the premiumisation wave in India, right from televisions to smartphones to cars, even as overall sales remain sluggish with the long-awaited recovery in the mass-market segment yet to kick in. The contribution of premium refrigerators, washing machines and televisions in the overall sales of these consumer durables has surged by up to five percentage points year-on-year in the January to April period, according to data from researcher NielsenIQ . For instance, 4K televisions of 55-inch screen size and above accounted for 41% of all TV sales in the first four months of 2025, up from 38% a year earlier. Likewise, the share of front-loading washing machines of 8 kg and above capacity rose to 16% from 11% and that of side-by-side refrigerators from 9% to 10% during the same period, NielsenIQ data showed. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Indonesia: New Container Houses (Prices May Surprise You) Container House | Search ads Search Now Undo In smartphones, according to Counterpoint Research data, the total market fell by 2% year-on-year during January to May this year while the ultra-premium '45,000-plus segment grew 20% and the premium '30,000-plus segment grew 2%. The trend is pushing up the average selling price (ASP) across product categories. For smartphones, "the ASP will cross $300 for the first time this year to about $308 ('26,000-plus) compared to $296 ('25,000) last year," said Prachir Singh, senior research analyst at Counterpoint. Live Events To be sure, the overall electronics and car markets have been under stress this year as low- and middle-income consumers continue to hold back buying entry-to-mid segment products due to low wage growth and inflation in daily lives. As a result, the share of sub-'10 lakh cars in overall passenger vehicle sales has fallen to its lowest ever of 51.4% in the January-May period, according to researcher Jato Dynamics. Sub-'10 lakh cars had accounted for 53.4% of sales in the first 5 months of 2024. Consumers are willing to pay more for features, safety, and technology," said Ravi Bhatia, president of Jato Dynamics. He said increased adoption of electric vehicles (EVs) will accelerate this trend. In electronics, too, NielsenIQ India head of customer success (tech and durables) Anant Jain said the industry has seen a rise in price growth this year, driven by premiumisation across key categories. The car market has seen a marginal fall this calendar year, while electronic sales have declined over 10% due to a decade-low sales of cooling products like refrigerators and air-conditioners this summer. Consumer finance, meanwhile, continues to push higher sales of premium products , industry executives said. Tarun Garg, whole-time director and COO at Hyundai Motor India , said the share of high-end features like ADAS-enabled vehicles in its sales has increased over 5 times to 15% in 2024 from 2.8% in 2023, while "one out of every two cars that we sell now is equipped with a sunroof." Cars priced '10 lakh-plus accounted for 49% of the carmaker's sales in India so far this year, up from 47% in 2024 and 25% in 2020. Marketers are hopeful of a rebound in mass segments in the coming months as inflation has come under control, allowing the central bank to cut interest rates by one percentage point so far this year, and the government has reduced income tax rates for a wide section of taxpayers from this fiscal. Above-normal monsoon rains and lower lending rates augur well for a recovery, experts said.
