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Mint
6 hours ago
- Automotive
- Mint
From red to black: India's top automakers see EV business turning around
New Delhi: After pumping in money for several years, Indian automotive manufacturing companies are finally beginning to see their electric vehicle (EV) businesses moving towards profitability. The EV business of top car makers Tata Motors and Mahindra and Mahindra (M&M) are already operationally profitable–a crucial milestone towards full profitability–even as Hyundai Motor India said its flagship EV is per-unit profitable. These three companies account for nearly two-thirds of the electric car market. On the other hand, two-wheeler majors Bajaj Auto Ltd, Hero MotoCorp, Ather Energy and Ola Electric Ltd are hopeful of turning operationally profitable soon. Achieving net profit, however, is some distance away for both segments. The trend comes on the back of strong growth in sales of EVs in FY25. Even as electric passenger vehicle sales rose 18% to 107,645 units in the fiscal year, electric two-wheeler sales grew 21% to 1.14 million units in the same period, as per Vahan portal data. Also read | New Delhi is promoting hybrid cars on par with electric, upsetting EV makers Analysts said policy incentives and a reduction in the cost of EV production are helping their profitability push. 'Reduction in import duties on key materials required to build EV components, increased localization by OEMs, and policy interventions like PLI and PM e-drive scheme are helping OEMs move towards EV profitability," Shridhar Kallani, research analyst for auto at Axis Securities, said. 'The increasing demand from consumers is also leading to a volume push, thereby helping the OEMs to grow the market and their profitability." Operations profitable Tata Motors, India's third largest automaker, reported Ebitda (earnings before interest taxes depreciation and amortization) margin of 1.2% in FY25, a move into the black from -7.1% in FY24. 'In the EV segment, we became one of the few global manufacturers to achieve positive Ebitda (earnings before interest taxes depreciation and amortization) on the back of a higher level of localisation, aggressive cost reduction, and securing PLI benefits," Shailesh Chandra, managing director at Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, said in his annual letter to shareholders. Likewise, close rival M&M reported Ebitda-positive EV sales, despite entering the segment late. And Hyundai reported positive Ebitda on its flagship Creta Electric at the unit level, minus launch-related expenses. M&M launched two EVs in the January-March period–BE 6 & XEV 9e–while Hyundai launched the Creta Electric in January. These new launches are driving the EV sales of the two companies, which were at 8,182 units and 2,410 units, respectively, during FY25, per data from the Federation of Automobile Dealers Associations (Fada). Read this | EVs hit with falling resale value as consumer demand cools 'MEAL (Mahindra Electric Automobile Ltd) as a company was Ebitda positive in its first quarter of operation," Rajesh Jejurikar, executive director and CEO-auto and farm sectors, said during the post Q4 results earnings call on 5 May. 'It made a ₹10-crore Ebitda profit without accruing any PLI (production-linked incentive)." Meanwhile, K.S. Hariharan, head of investor relations at Hyundai Motor India, said during the company earnings call on 16 May, 'If you exclude the launch-related marketing expenses and the test drive discounts, we are margin positive on Creta EV." However, there is some scepticism about them matching profits of conventional internal combustion engine (ICE) vehicles anytime soon. Rahul Bharti, senior executive officer, corporate affairs at India's top conventional car maker Maruti Suzuki, said during the company's Q3 earnings call on 29 January that it will take a long time for EVs to match ICE's profitability. 'If the profit of an EV was equal to that of an ICE, why would the government support so much at the Centre and the state level?" Bharti noted during the call with analysts. 'The very fact that there is a drastic reduction in GST, and so many subsidies at different levels on demand side and supply side, means that there is a difference." Profit on two-wheels India's top two wheeler players, too, are also chalking out a clear path to profitability. Bajaj Auto Ltd and Hero MotoCorp Ltd expect to turn their EV business Ebitda profitable in the next 24 months. Meanwhile, Ather Energy and Ola Electric Ltd remain hopeful that they will soon touch the break even point. Ola Electric Mobility Ltd, the country's largest electric two-wheeler company, said it is very close to breaking even. Ola had guided for reaching the milestone in the current quarter, but it's now likely to reach it in the July to September period amid slowing sales. 'What we had shared is that we expect to get to auto segment Ebitda positive within some time in Q1…we are more or less on track on that," Bhavish Aggarwal, founder and managing director at Ola Electric, said, adding that its auto segment will likely turn Ebitda positive sometime in June or July. The Ebitda margin was -78.6% in Q4 of FY25. As per the management, Ola will need 25,000 monthly sales to reach the breakeven point. In five months of 2025 so far, it has sold on average 19,000 vehicles per month, as per Vahan portal data. Also read | EV industry, government struggle to find alternatives as China throttles rare earth magnet supply Its Bengaluru-based peer Ather Energy Ltd is also confident about its path to profitability as its Ebitda margin improved to -23% in FY25 from -42% in the year-ago period. 'Profitability is the function of revenue and cost," Ravneet Phokela, chief business officer at Ather, told Mint. 'As we increase our sales through network expansion and reduce cost through localisation, there is a clear path to profitability." The country's largest conventional two-wheeler seller, Hero MotoCorp, is also guiding for profitability of its EV business by 2027 on the back of increasing sales, reducing cost and realising PLI benefits. 'What will really make this business profitable is the scale-up (of EV business), the bill of material cost reduction through localization, and PLI benefit realization," Vivek Anand, the company's chief financial officer said during the post results earnings call on 14 May. Hero MotoCorp's Ebitda margin from EVs improved from -155% in FY24 to -95% in FY25. 'At 25,000-30,000 levels of volume per month, we hope that this will break even, which in our view is a couple of years away," Anand added. The company sold about 4,000 vehicles on average every month in the financial year 2025. And read | Automakers rush to PMO, commerce ministry as Chinese magnet crisis set to spread beyond EVs, threatens production cuts Bajaj Auto Ltd also noted during its call with analysts that it is very close to breaking even for its e-two-wheeler business. For its combined two-wheeler and three-wheeler electric business, it had broken even on the Ebitda level in the July-September quarter (Q2 of FY25). 'At a unit economics level, clearly with PLI and PLI-certified models, we now have a line of sight to getting very close to an Ebitda break-even, relative to what was a very significant loss 12-15 months ago," said Dinesh Thapar, CFO at Bajaj Auto. The Nifty Auto index has gained 0.8% in 2025, lagging the Nifty 50's 4.2% rise during the same period.
Hans India
20 hours ago
- Politics
- Hans India
Former Danish envoy praises PM Modi for Op Sindoor, calls him true defender of India
India's firm and resolute crackdown on cross-border terrorism, in response to the barbaric and savage terror attack in Jammu and Kashmir's Pahalgam, won it global praise. Denmark's top diplomat became the latest proponent of India's war against terror as he heaped praises on Prime Minister Narendra Modi for steering India's strong retaliation against Pakistan-sponsored terror. Freddy Svane, the former Danish Ambassador to India, described PM Modi as the true defender of India and also welcomed India's diplomatic offensive to expose Pakistan globally. Svane, in a special interaction with IANS, said, "India has shown that it has grown as a global and very, very important player and that it can take action. You need a strong leader like Prime Minister Narendra Modi who can steer that kind of direction and make it clear to the world that I am the man and I am the true defender of India." He also lauded India's diplomatic push, in the wake of Operation Sindoor, to name and shame Pakistan globally for its brazen support to terrorists and said that the move to all-party delegations to various parts of the world will surely achieve its purpose. The ex-envoy to India also slammed Pakistan for its constant abetment and instigation of terror on foreign soil, including India and said that it was important for all countries of the world to speak in one voice against it. Svane further said that the popularity of PM Modi, who is the leader of the fourth largest democracy of the world, is on the rise after Operation Sindoor and also called it a positive sign. "PM Modi is being seen across the world as a very, very important, strong and strategic thinking leader, who is so important for all of us," he said. He said that the world is welcoming the emergence of 'New India' as a strong power centre in Asia, under the stewardship of PM Modi. However, he lamented that this came against the backdrop of the deadly Pahalgam incident. "When times are bad and things have to be dealt with, you also need someone who can move from words to actions. That has happened," he remarked.
Hans India
2 days ago
- Politics
- Hans India
Ministers laud PM Modi's Bhopal address as 'historic and visionary'
Bhopal: Addressing the women empowerment conference held at Jamboree Maidan in Madhya Pradesh's capital, Bhopal, on the occasion of the 300th birth anniversary of Devi Ahilyabai Holkar, Prime Minister Narendra Modi extended multiple development gifts to the state. Following the PM's speech, Madhya Pradesh Minister Prahlad Patel said that the state received several development projects from the Prime Minister, for which the government is grateful. 'Development of the state and the nation is our government's commitment. The message that PM Modi delivered here today is a matter of pride for all of us,' he said. Minister Chaitanya Kumar Kashyap remarked that the message PM Modi gave from Madhya Pradesh's soil was deeply inspiring. 'Our government is dedicated to the upliftment of women. We are progressing with a focus on heritage and development,' he added. Public Health Engineering Minister Sampatiya Uikey said, 'Today is a day of great fortune for our sisters and daughters. It was a matter of immense joy for us that PM Modi addressed the Women Empowerment event on the 300th birth anniversary of Devi Ahilyabai.' Deputy CM Rajendra Shukla also expressed gratitude, saying, 'PM Modi has gifted numerous initiatives to Madhya Pradesh. We thank him for this. Our government is moving ahead on the path of service, resolve, and good governance.' He also paid tribute to Devi Ahilyabai, recalling her contributions, and warned terrorists that they would not be spared. Minister Pradyuman Tomar said, 'Listening to PM Modi was a wonderful experience. He spoke about women's empowerment and remembered the great contributions of Devi Ahilyabai. His speech filled the public with enthusiasm.' Minister Narendra Shivaji Patel stated, 'PM Modi addressed the massive gathering on the 300th birth anniversary of Devi Ahilyabai. The excitement among the people was remarkable. We can confidently say that India is on its way to becoming a developed nation.' Minister Pratima Bagri added, 'The initiatives and gifts provided by PM Modi are giving Madhya Pradesh a new direction. Under his leadership, women are being truly empowered. We thank him sincerely.' A woman attending the conference said, 'It felt wonderful to listen to and see PM Modi. He has done a lot for the welfare of sisters and daughters. We are grateful to him for that.'
Hans India
2 days ago
- Politics
- Hans India
'He's uplifted us in every way': PM Modi gets thumbs up from women
Bhopal: Prime Minister Narendra Modi inaugurated and laid the foundation stones for several development projects on Saturday, including airports in Datia and Satna in Madhya Pradesh. Women who came to hear the Prime Minister speak at a programme in Bhopal praised the government's efforts and stated that PM Modi has done commendable work for women. Speaking to IANS after listening to the Prime Minister, a woman named Varsha said that ever since PM Modi came to power, he has launched numerous initiatives for women. 'Schemes Ladli Behna Yojana and many others have directly benefited women. 'Operation Sindoor' has become a symbol of women's strength. I thank PM Modi for transforming the lives of women,' she said. Another woman, Deepti, lauded the Prime Minister's speech, saying that he touched upon many important issues, particularly Operation Sindoor. 'PM Modi has taken several decisions in favour of women, including providing reservations and empowering them. I believe that if women are empowered, society becomes stronger,' she added. Shivani Yadav noted that the Prime Minister made special mention of women in his address. 'He said that women are not just limited to managing their households, but are also standing strong at the borders, defeating enemies,' she said. Pratibha, another attendee, shared that PM Modi has significantly boosted women's empowerment. 'He said in his address that women are advancing, and the country is greatly benefiting from their progress,' she said. Another woman highlighted that PM Modi spoke about the growing participation of women in governance and their continued rise in various sectors. Apart from women, numerous young girls also gathered to hear the Prime Minister. Shivani pointed out that he mentioned women's empowerment and also announced the Indore Metro as a major gift for the region. Shikha said that PM Modi unveiled several key projects for Madhya Pradesh on Saturday. "He also released a special commemorative coin on the occasion of the 300th birth anniversary of Devi Ahilyabai Holkar. He talked about the importance of women's empowerment and gifted the Indore Metro as well,' she added.
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Business Standard
2 days ago
- Politics
- Business Standard
Bullets will be answered with a cannon ball: PM Modi warns Pakistan
PM Modi stated that security forces destroyed terrorist hideouts in locations even Pakistan's army had not anticipated New Delhi In a stern warning to Pakistan, Prime Minister Narendra Modi said, 'If you fire a bullet, it will be met with a cannonball.' Addressing the 'Lokmata Devi Ahilyabai Mahila Sashaktikaran Mahasammelan' in Bhopal on Saturday, he hailed Operation Sindoor as India's largest and most successful counter-terrorism mission. PM Modi stated that security forces destroyed terrorist hideouts in locations even Pakistan's army had not anticipated. He emphasised that the operation sent a clear message that proxy wars through terrorism will no longer be tolerated, and India will retaliate even inside enemy territory, ensuring those who support terrorists pay a heavy price. PM Modi praises women's contribution in Operation Sindoor PM Modi lauded the contribution of women personnel during Operation Sindoor, praising the Border Security Force's 'brave daughters' for their remarkable courage. He highlighted that sindoor, traditionally offered during the worship of Shakti, has now come to symbolise India's bravery. Operation Sindoor, he said, has become a symbol of India's women power, or Nari Shakti. PM Modi also emphasised the growing trust in the courage of Indian women, noting that for the first time girls have been admitted to Sainik Schools. The first group of women cadets has graduated from the National Defence Academy, and women are now serving in frontline roles across the Army, Navy and Air Force — flying fighter jets and serving aboard INS Vikrant, showcasing exceptional bravery. Highlighting government efforts in women's empowerment, he said that earlier, women were excluded from new technologies, but now the government encourages women to lead in modern tech fields. PM Modi honours Lokmata Ahilyabai Holkar's 300th birth anniversary Prime Minister Modi on Saturday released a commemorative coin and stamp to mark the 300th birth anniversary of Lokmata Ahilyabai Holkar during the 'Mahila Sashaktikaran Mahasammelan' in Bhopal, ANI reported. PM Modi also virtually inaugurated the Indore Metro and the newly constructed airports at Datia and Satna with a single click. Additionally, he laid the foundation stones for several development projects across Madhya Pradesh. He said these initiatives would improve infrastructure, accelerate development and generate numerous employment opportunities in the state. Paying tribute to Ahilyabai Holkar, PM Modi said the very mention of her name inspires deep respect. He described her as a symbol of how strong public will and determination can overcome even the toughest challenges and create lasting achievements. Modi added it was a privilege for him to serve the very Kashi where Lokmata Ahilyabai had contributed so much. Urging farmers to diversify crops, he recalled Ahilyabai's advice from 250–300 years ago to promote cotton and spice cultivation to increase farmers' incomes. He stressed the importance of moving beyond traditional crops like paddy and sugarcane. (With inputs from agencies)
