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Mint
02-05-2025
- Automotive
- Mint
April auto sales: SUVs race ahead while small cars lose momentum
April auto sales: Three out of India's four leading passenger vehicle makers reported weak sales to dealers in April amid a continued slowdown in urban consumer demand, impacted by falling wages and rising prices, prompting budget-conscious buyers to postpone their vehicle purchase plans. Entry-level cars, which are generally smaller, simpler, and more fuel-efficient, witnessed a sharp drop in sales during April, while the utility vehicle segment continued to race ahead at full throttle. The sustained decline in demand for budget-friendly cars in recent months has also prompted companies to alter their production plans. Maruti Suzuki, the country's leading car manufacturer, reported a 45% drop in sales of mini-segment cars, comprising the Alto and S-Presso. The company dispatched 6,332 units to dealers in April, compared to 11,519 units in the same month last year, according to its April sales update. The consistent fall in entry-level car sales also led the company to reduce production to 9,714 units in April from 13,702 units a year earlier. Maruti Suzuki has repeatedly voiced concerns about the decline in small car sales. 'Growth in the domestic market has been very limited. For a country with such low penetration of cars, the growth rate of 2–3% is not going to increase it at all. It is a matter of some worry,' said R.C. Bhargava, chairman of Maruti Suzuki, during a post-results media briefing. The major concern, according to Bhargava, is that those who can afford small cars now find them expensive. 'Unless something changes, the domestic market will remain muted. In this current year, sales of small cars have declined by about 9%. If there is such a decline in the sales of cars that can be afforded by 88% of people earning, how can we expect growth?' he asked. Indians bought 4.3 million cars during the last financial year—the highest ever in any fiscal, led by SUVs, but the overall growth remained muted compared to FY24. The growth is also expected to remain under pressure in the ongoing financial year amid domestic growth challenges. Manufacturers expect car sales to grow 1%-2% this year, although some analysts expect growth to pick up by June or September. According to market experts, the extended drop in domestic car sales is due to a combination of affordability constraints, fading pent-up demand post-COVID, and the high base effect from previous years—all of which have weighed on overall growth. Analysts hope the income tax cuts introduced in the 2025 budget will provide some relief and boost domestic car sales. While entry-level cars face continued setbacks, demand for SUVs continues to emerge as a top choice among millennials. Mahindra & Mahindra reported a nearly 28% jump in monthly sales in April, driven by strong demand for its XUV 3X0 and five-door Thar SUVs. That helped the Scorpio maker overtake Hyundai and Tata Motors to claim the No. 2 spot in India's car market for the second time this year. With no sedans or hatchbacks in its lineup, the company has positioned itself entirely around SUVs and compact SUVs — a strategy that has delivered strong, sustained sales momentum. Maruti Suzuki also reported a slight increase of 4.3% in UV (utility vehicle) sales in April. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions. First Published: 2 May 2025, 01:40 PM IST
Business Journals
26-04-2025
- Business
- Business Journals
Major Rock at La Cantera project a go after long delay, UT Health key tenant
Construction of the 135,000-square-foot project has been pushed back roughly a year. Plans for a major multistory medical development at The Rock at La Cantera, first revealed well over a year ago, have advanced. The project will span 135,000 square feet and include a three-story building housing medical and research spaces, as well as an adjoining multilevel parking structure. According to a new filing with the state, work on the approximately $17 million development is slated to begin in early July and be completed by summer 2026. I first reported in January 2024 that UT Health San Antonio planned to occupy approximately a third of the structure's 60,000 square feet, and construction was initially scheduled to begin in the first half of 2024. UT Health San Antonio has confirmed it still plans to lease approximately 20,000 square feet in the building and that its specific research activity plans for the space are not yet finalized. UT Health San Antonio anticipates moving into the building in 2027, pending project completion. The San Antonio Spurs broke ground on the 45-acre Rock at La Cantera development, a planned $500 million mixed-use campus, in late 2021. The medical building, which will serve as another key anchor for the larger development, is slated for a site adjacent to the Spurs' Victory Capital Performance Center. Don't miss the latest San Antonio business headlines! Sign up here for SABJ newsletters and make sure to download the app. Lincoln Property Co., which is leading the medical building development, had not yet confirmed updated project details, including a new construction timeline, as of press time. Spurs Sports & Entertainment noted the construction timeline in the new state filing was accurate based on the latest updates. Much has happened on UT Health's main campus since plans for The Rock at La Cantera project were first revealed. In March 2024, Dr. William Henrich, the longtime president of UT Health San Antonio, passed away. Roughly five months later, the University of Texas System Board of Regents cleared a path for UTSA and UT Health San Antonio to merge. Spurs Sports & Entertainment CEO R.C. Buford indicated from the outset that the project could have a significant impact on the region. 'The opportunities for research, learning and innovation within this building are endless and having a world-renowned academic medical center like UT Health San Antonio as its anchor sets a standard of excellence for all other tenants to follow,' he said.
Mint
25-04-2025
- Automotive
- Mint
Maruti Suzuki is concerned that Indians aren't buying small cars
Maruti Suzuki India Ltd is concerned about the Indian car market's growth prospects due to consumers' diminishing interest in paying more for small cars. The country's largest car seller witnessed just 3% growth in its domestic car sales on-year in 2024-25, while its net profit grew by 7.5% to ₹ 14,500 crore and revenue 7.7% to ₹ 1.53 trillion. For the March quarter, the carmaker's consolidated profit declined 1% to ₹ 3,911 crore on-year, as against Bloomberg's estimate of a nearly 7% fall. 'Growth in the domestic market has been very limited. For a country with such low penetration of cars, the growth rate of 2-3% is not going to increase it at all. It is a matter of some worry,' said R.C. Bhargava, chairman of Maruti Suzuki, during a post-results media briefing. However, Maruti Suzuki is increasingly optimistic about the international markets. In 2024-25, the company exported 332,000 units, up 17.4% from 283,000 units in the year-ago period. 'We are growing better because exports have been very buoyant. In the coming year, exports are expected to grow by 20%. This is going to be the main driver for our production, sales, and profits,' added Bhargava. The major worry, according to the Maruti Suzuki chairman, is that those who can afford small cars find them expensive. 'Unless something changes, the domestic market will remain muted. In this current year, sales of small cars have declined by about 9%. If there is such a decline in the sales of cars that can be afforded by 88% of people earning, how can we expect growth?' Bhargava asked. Car retail sales grew by just about 5% in the last fiscal year. Over the last few months, the inventory levels of major car markets also shot up to over 50 days, according to data from the Federation of Automobile Dealers' Associations (FADA). 'Current inventory levels vary significantly, with Mahindra and Mahindra maintaining over 30 days of stock, while Hyundai's and Tata's inventories extend to 50-55 days. Maruti's stock has risen from 9 days as of 1 January to around 40-45 days,' analysts at PhillipCapital said in a 30 March note. Analysts hope that the income tax cuts introduced by the government in the 2025 budget will provide a boost to domestic car sales. However, Bhargava is sceptical. 'To boost demand, small cars have to become more affordable,' Bhargava said. 'It is not the case that India has become affluent and everyone wants to buy more expensive cars.' Carmakers in the country have implemented several price hikes over the last few months. Maruti Suzuki raised prices thrice in 2025, resulting in a more than 4% price increase. Meanwhile, analysts remain optimistic about Maruti Suzuki's long-term performance due to the launch of electric vehicles (EVs). 'The performance of Maruti was mixed as the small car segment remained under pressure. In the near term, the weakness in margins will remain a concern for growth. Still, expansion in exports and the launch of EV portfolio can be good growth drivers,' Sanket Kelaskar, equity research analyst-auto at Ashika Group. Maruti Suzuki announced the launch of its EV e-Vitara in January. During the briefing, the company announced that domestic EV sales will start before the end of September in 2025-26. During the fiscal year, the company will roughly produce 70,000-80,000 EVs. However, a majority of these will be exported due to the limited scope of growth in the Indian market. 'Until the number of people who can buy cars increases substantially, there will not be much growth in any kind of cars,' Bhargava warned during the call. Earlier, Maruti Suzuki's management had expressed scepticism about the EV growth prospects due to issues faced by consumers. Consumers were seeing EVs as secondary cars, said Partho Banerjee, senior executive officer-marketing and sales, Maruti Suzuki India, earlier. 'EVs sold today are not primary cars, but rather secondary. Until we don't solve customer concerns on range, charging infrastructure, and post-sales, buyers will not have confidence,' he said during a media briefing on 1 April. In 2024, India sold nearly 100,000 electric cars, 20% more than in 2023. However, the penetration in the overall car market remained low at 2.5%, showed data from the Vahan portal. Maruti Suzuki's shares closed 2% lower on 25 April after the result announcement, against a 1.67% fall in the Nifty Auto. Overall, Maruti's share price has risen by 4% during 2025, as against the Nifty Auto's 5% fall. First Published: 25 Apr 2025, 07:53 PM IST
Yahoo
29-03-2025
- Climate
- Yahoo
South Texas flooding: At least 3 dead, more than 200 rescued after severe storms
MCALLEN, Texas - At least three people have died and hundreds have been rescued following severe storms that moved across the southern part of Texas on Thursday and Friday. What we know According to a report by the Associated Press, officials said the City of Harlingen received more than 21 inches of rain this week, with the heaviest rainfall on Thursday, causing authorities to rescue more than 200 residents. 200 additional people were still waiting to be rescued. In Alamo, the police and fire department responded to more than 100 water rescues, including people stranded in their vehicles and trapped in their homes, Fire Department Chief R.C. Flores said at a news conference Friday afternoon. Officials estimated a couple hundred homes in Alamo were flooded by the heavy rainfall. Weslaco Mayor Adrian Gonzalez said his city was inundated with about 14 inches (36 centimeters) of rain, prompting 30 to 40 water rescues of stranded motorists and residents trapped in their homes by rising floodwaters. What they're saying "This of course has been a historic and challenging event for the city. But Harlingen is strong. We have faced adversity before and we will get through this together," Mayor Norma Sepulveda said at a Friday afternoon news conference. "I assure the public that we are assessing the situation on the hour, every hour. We're constantly going out, not just in our city," Flores said. "Just because the storm is over, it doesn't mean that the emergencies and the disaster is over. We are going to continue to work as long as we need to." "It's a historic rainstorm and it's affecting all the Valley, not just Weslaco. It's just so much water in a short period of time," Gonzalez told reporters at a news conference. By the numbers In neighboring Cameron County, officials asked Gov. Greg Abbott to declare a disaster for the county after more than 17 inches of rain caused significant flooding. "The rainfall amounts we received have been record-setting, and not in a good way. All county resources are being utilized right now, and we are assisting in all ways possible," Cameron County Judge Eddie Treviño Jr., the county's top elected official, said in a Facebook post. Valley International Airport in Harlingen was closed on Friday and all flights were canceled due to area flooding. "We are working tirelessly to reopen and focused on ensuring safety," airport officials said in a statement. A flood warning was still in effect for portions of South Texas, including Cameron, Hidalgo and Willacy counties, through early Friday afternoon, according to the National Weather Service. "There's a break from the rain this morning, which will allow flood waters to gradually recede, but we'll still need to keep an eye on the development of isolated showers and thunderstorms once again this afternoon," the National Weather Service said on social media. "Any additional rainfall will be quick to cause flooding issues given the heavy rainfall that has already fallen." More than 3,400 in several counties in South Texas remained without power on Friday afternoon, according to AEP Texas. More than 20 South Texas school districts and college campuses canceled classes on Friday due to the severe weather and flooding. Dig deeper Here are some photos and video of the flooding and as well as the damage left behind: The Source Information provided by The Associated Press
