Latest news with #Moody'sRatings
Bloomberg
3 days ago
- Business
- Bloomberg
Nigeria Upgraded to B3 by Moody's on Fiscal, Forex Gains
Nigeria 's sovereign credit was raised by Moody's Ratings, citing the removal of oil subsidies, a more flexible exchange rate and improvements in its fiscal status. The credit assessor upgraded Africa's largest oil producer's foreign currency debt to B3, six notches below investment grade, from Caa1. The outlook was changed to stable.
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Business Standard
6 days ago
- Automotive
- Business Standard
India may outpace China in car sales growth, says Moody's Ratings
Moody's Ratings on Tuesday said India's car sales are likely to grow at a compound annual growth rate (CAGR) of 3.5 per cent, outpacing China, Japan and other major Asian economies, and reaching around 5.1 million units per year by the end of this decade. 'We project a CAGR of 3.5 per cent for car unit sales in India through 2030, faster than growth rates in China, Korea, and Japan in the same period,' it added. India is the world's third-largest automotive market after the US and China. The EV bandwagon The country's carmakers are also betting big on manufacture of lithium-ion cells, electric vehicles (EV) and batteries through a cumulative investment of $10 billion, despite the lower EV penetration of 2 per cent now. 'We estimate that if 9-10 per cent of two-wheeler owners upgrade to entry-level cars, it would create replacement demand of at least 1.6 million-1.8 million entry-level cars through the end of the decade. Annual car sales, which have averaged around 3.1 million over the last 10 years, and replacement demand will also underpin sales growth through 2030,' the report said. 'These assumptions alone support our view that India will grow to be a 5 million car market by the end of the decade,' it added. This will be a jump of almost 25 per cent from 4.2 million units in 2024. Rise of domestic majors At present, Japanese, Korean and Chinese companies, which operate in India through joint ventures and subsidiaries, together account for more than 70 per cent of the market. However, domestic majors are rapidly increasing their share. In 2015, Indian carmakers -- Tata Motors, and Mahindra & Mahindra -- held a modest 11 per cent share of the market. It is 24 per cent now. Other market gainers include Korea's Hyundai Motor Company (and its associate Kia Corporation, collectively Hyundai Motor Group) which increased its combined market share to 20 per cent in 2024 from 18 per cent in 2015. Chinese carmakers do not have a significant presence in India. In 2024, they had a market share of around 1 per cent. Meanwhile, Japanese automakers have lost share in India after dominating the market for years. The collective share of Japanese car makers that operate in India through subsidiaries and joint ventures -- Honda Motor, Nissan Motor, Suzuki Motor Corporation and Toyota Motor Corporation -- fell to 51 per cent in 2024 from 61 per cent in 2015, the report said. India's overall car industry has grown by a significant 60 per cent to 4.2 million units in 2024 from 2.6 million in 2015. A low car penetration rate also highlights the significant growth potential of India's expansive domestic market. There are only 44 vehicles per 1,000 people in India, much lower than penetration rates in Japan (502 vehicles), Korea (422), China (251) and Indonesia (76). 'Strong growth potential makes India a key part of both domestic and foreign automakers' growth strategies. The country's young and growing population, coupled with increasing disposable incomes, supports strong demand for personal transportation,' it added.
Time of India
7 days ago
- Automotive
- Time of India
India's auto market stays hot for global carmakers despite sluggish EV transition: Moody's
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Auto 1. Hero MotoCorp sees 'mid-to-high' single digit growth for two-wheeler industry in FY26 India's booming automotive sector continues to lure global and domestic carmakers, even as the country trails in electric vehicle (EV) adoption due to inadequate infrastructure, according to a new report from Moody's Ratings on Tuesday. The report cites India's demographic edge, characterised by a rising working-age population and growing incomes, as a major force behind the sustained surge in car slow progress on electrification, the Indian auto market remains an attractive proposition for global players, bolstered by its status as the third-largest car market globally by unit sales and a notably low car penetration rate, just 44 cars per 1,000 people. Moody's forecasts that India's passenger vehicle sales will grow at a compound annual growth rate (CAGR) of 3.5% through 2030, reaching approximately 5.1 million units, the fastest growth rate in historically protectionist stance, marked by high import tariffs, has long shielded domestic players and forced foreign companies to manufacture locally, the report said. However, Moody's points to growing external pressure for liberalisation, citing ongoing trade talks and a recently concluded agreement with the UK as signs of a gradual opening up of India's auto competitive landscape is already intense. While domestic automakers account for about a quarter of total car sales, foreign players, primarily from Japan, South Korea, and China, dominate the rest of the market, often through subsidiaries or joint ventures. Their ability to deploy a broad global product lineup gives them a strong edge in India's price-sensitive however, is still in its early days. Companies such as Tata Motors and Hyundai Motor Group's Indian arm are betting big on battery electric vehicles (BEVs), while Honda is pursuing a phased approach, starting with plug-in hybrids. Moody's notes that leading carmakers plan to invest over $10 billion in India through 2030 to enhance competitiveness. However, such investments are expected to strain free cash flows.'The pace of BEV adoption in India hinges on the development of a robust ecosystem, including nationwide charging infrastructure and a reliable domestic battery supply chain,' the report says. Localised production will be key to reducing costs and making EVs more affordable to Indian auto companies are under mounting pressure to decarbonise their fleets, particularly in China, Europe and the US. But with EV profitability still limited due to high battery costs and modest sales volumes, India's fast-growing market for internal combustion engine (ICE) vehicles is expected to remain a strategic is also likely to retain its role as a manufacturing and export hub for several global automakers, Moody's notes, further highlighting the country's importance in the global automotive landscape.
Time of India
7 days ago
- Automotive
- Time of India
India may have highest car sales in Asia at 5.1 mn units by 2030: Moody's
India may have highest car sales in Asia at 5.1 mn units by 2030: Moody's Car sales in India may grow by a 3.5per cent compound annual growth rate (CAGR), resulting in a volume of 5.1 million units by 2030, the highest in Asia, as automakers roll-out new internal combustion engine (ICE) and electric vehicle (EV) models, according to Moody's Ratings. The credit ratings firm added that India's conventional, or the ICE segment, will remain lucrative for global automobile companies even as they pursue electric vehicle (EV) opportunities in other regions. India will continue to be a key market for global automakers in the coming years on account of its growing working-age population, increasing incomes, and the country's positioning as an export base, said Moody's. The Indian car market, however, is characterised by stiff competition, with multinationals – including Japanese, Korean, and Chinese automakers – making up over 70% of the market through joint ventures (JVs) and subsidiaries, while homegrown companies account for only about a quarter of sales. The multinational OEMs leverage their global product lineups to gain a competitive advantage in India, the report said. Global trade tensions India's fledgling car market has been traditionally protected by high import tariffs, but the recent trade negotiations, particularly a free trade agreement (FTA) pact with the UK, indicate that the government is under pressure to open up the domestic market. Moody's said that India's transition to electric vehicles (EVs) is still in early stages despite strong consumer demand. It found that certain OEMs, such as Tata Motors and Hyundai, are focusing on battery EVs, while Honda plans to roll out plug-in hybrids. It estimates that automakers may invest over $10 billion through 2030 to enhance their competitiveness in the EV segment, a move that may impact their free cash flows. Automakers face pressure to electrify their vehicle lineups in China, Europe, and the US to meet emission targets. By contrast, the combination of India's significance as an export hub and its high-growth conventional market reinforces its importance despite the slow adoption of EVs locally. While EV profitability is expected to remain modest in most markets, India's demographic dividend and consumption growth will continue to support demand for conventional vehicles. (Source: Business Standard)
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Business Standard
7 days ago
- Automotive
- Business Standard
India core to global automakers' plans, but EV adoption still slow: Moody's
India will remain central to global automakers' strategies in the coming years, driven by a young and growing working-age population and rising incomes, Moody's Ratings said in a new report on Tuesday. However, the global credit ratings agency also noted that India's transition to electric vehicles (EVs) will be gradual, with infrastructure gaps and supply chain hurdles slowing adoption. Moody's expects India's car sales to grow at a compound annual growth rate of 3.5 per cent—the highest in Asia—reaching around 5.1 million units by 2030. 'A low car penetration rate of only 44 cars per 1,000 people underlines the significant growth potential in India, which is already the world's third-largest auto market by unit sales,' the report noted. Intense competition, diverse players India's car market remains fiercely competitive, with domestic companies accounting for about a quarter of sales. Japanese, Korean and Chinese automakers—often through joint ventures or subsidiaries—dominate over 70 per cent of the market, leveraging their global product lineups to gain an edge. EV growth faces infrastructure gaps Despite strong demand, the country's shift to EVs remains in early stages, with Tata Motors and Hyundai focusing on battery electric vehicles, while Honda plans to start with plug-in hybrids. Automakers are expected to invest over $10 billion through 2030 to build competitiveness in the EV segment, though these investments will weigh on their free cash flows. 'The pace of battery electric vehicle adoption hinges on the development of a robust ecosystem, including nationwide charging infrastructure and reliable domestic battery supply chains,' Moody's said. India remains core to global automakers Automakers are under pressure to electrify their line-ups in China, Europe and the US to meet emission targets, but India's high-growth conventional vehicle market remains a critical focus for global players. India also serves as an export base for some automakers, reinforcing its strategic importance despite the slow local EV adoption.
