Latest news with #ShaileshChandra
Time of India
25-07-2025
- Automotive
- Time of India
Indian automobile industry may grow by 6-7% in FY26 amid damp consumer demand: Report
The Indian automobile sector is expected to grow by 6-7 per cent in the fiscal year (FY26) amid damp consumer demand across most vehicle categories, according to a report by Motilal Oswal. As per the report, volumes in the two-wheeler category fell the highest compared to passenger vehicles (PV) and commercial vehicles (CVs) in the first quarter of FY26 (Q1FY26). The two-wheeler segment remained under pressure due to muted demand. In the April-June quarter of FY26, motorcycle sales fell by 9 per cent year-on-year, ICE scooter sales declined 5 per cent year-on-year, and moped volumes also slid by 11 per cent year-on-year. By contrast, the PV category posted a 1.4 per cent decline in volumes, with the small car segment being impacted significantly due to the volumes of key models such as Maruti Alto, Spresso, and Celerio witnessing sharp year-on-year declines in Q1FY26. The commercial vehicle (CV) segment, meanwhile, saw a marginal decline in volumes. While MHCV goods registered a 4.5 per cent dip, LCV goods fell by 0.5 per cent. However, bus sales remained a bright spot, with MHCV buses growing 7.6 per cent and LCV buses up 8.8 per cent. In terms of OEMs' performance, Tata Motors underperformed across all four CV sub-segments, while VE Commercial Vehicles (VECV) managed to outperform in most, according to Motilal Oswal. 'Our focus would be to deliver industry-beating growth (in FY26) because one, this year is possibly the strongest product cycle for us, and the freshest portfolio. We have a low base for FY25. On the SUV side also, we will be coming with a multipowertrain on Harrier and Safari, including the petrol version,' said Shailesh Chandra, MD, Tata Motors & Tata Passenger Electric Mobility, earlier at the Q4FY25 post-earnings conference call in May. Chandra had said that there would be re-varianting and repositioning of certain products in the portfolio. 'We have the full year for Nexon CNG and also, we will launch Sierra. So, even SUVs are going to be strong…it's going to be a very strong year for us,' he said. The top Tata Motors executive had said that the company will strengthen its value proposition of its existing EV products, in terms of value-price equation. 'It's going to be a strong year for us on the EV side also,' Chandra said. Its homegrown rival, Mahindra & Mahindra, too, is confident of growth this year. Nalinikant Gollagunta, CEO (automotive division) at Mahindra & Mahindra, said the company remains confident of mid-to-high teens growth in the SUV segment, along with strong double-digit export growth. He also reaffirmed guidance for high single-digit growth in LCVs for the full fiscal, according to a report by news agency ANI . The brokerage said that the industry may remain in a cautious phase in the near term, with a rebound largely dependent on rural demand recovery, fuel price stability, and broader economic conditions.
&w=3840&q=100)
Business Standard
25-07-2025
- Automotive
- Business Standard
India-UK free trade agreement is going to reshape auto market: Siam
The Society of Indian Automobile Manufacturers (Siam) on Friday welcomed the India-UK Free Trade Agreement (FTA), calling it a strategic breakthrough that aligns consumer interests with the broader goals of the Indian industry. The industry body praised the balanced approach to automotive tariff commitments, highlighting potential gains for both domestic manufacturers and global brands. Siam President Shailesh Chandra said the pact marks 'a significant milestone in India's international economic engagement,' adding that it opens new pathways for collaboration with one of India's key global allies. 'This agreement signals the beginning of a deeper strategic partnership and strengthens India's positioning in global trade and investment frameworks,' he said. India-UK FTA opens new trade opportunities across industries The FTA, formally known as the Comprehensive Economic and Trade Agreement (CETA), was signed in London on Thursday in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer. It grants duty-free access for a range of Indian exports, including leather goods, electrical machinery, and chemicals, with overall trade opportunities estimated at nearly $23 billion. Luxury car brands, domestic players both stand to gain For the auto sector, the agreement holds substantial implications. Under the FTA, tariffs on automotive imports will be halved over 10 years for vehicles imported outside of an agreed quota. Chandra noted that this structure was carefully designed to support the domestic manufacturing ecosystem while giving Indian consumers greater access to global products. Luxury carmakers are among the immediate beneficiaries. Jaguar Land Rover (JLR), a Tata Motors-owned brand, stands to gain significantly, with its British heritage and presence in India. JLR currently assembles models such as the Range Rover, Range Rover Sport, Velar, and Evoque at its Pune plant and is preparing to launch local assembly at a new facility in Tamil Nadu by next year. Around 60 per cent of JLR cars sold in India are produced from completely knocked down (CKD) kits, which attract a 15 per cent basic customs duty. The FTA's tariff relaxations are also expected to create pricing advantages for ultra-luxury brands like Rolls-Royce, McLaren, and Aston Martin, which together sold fewer than 150 vehicles in India over the past two years. Domestic OEMs see export upside: Siam Chandra emphasised Siam's ongoing collaboration with the government to maximise the agreement's impact. 'The government's consultative approach ensured industry voices were heard. This FTA creates the foundation for enhanced growth, competitiveness, and technological advancement,' he said. Domestic manufacturers like Mahindra & Mahindra and Maruti Suzuki, which are actively expanding in European markets, are also set to benefit.
The Wire
16-07-2025
- Automotive
- The Wire
Domestic Automobile, Overall Passenger Vehicle Sales Decline Compared to Last Year
New Delhi: Data from the Society of Indian Automobile Manufacturers (SIAM) have revealed that India's domestic automobile sales have reduced by 3.6% to 18,97,445 units in June 2025, as compared to the figures against the same month last year. Moreover, the overall passenger vehicle sales declined 6.3% to 2.76 lakh units in the reporting month. While production of all automobiles also grew at a sluggish 1.2% in the reporting month, to 23,64,868 units, reported The Hindu. As compared to June 2024, manufacturers sold only 85,091 which amounts to 15.3% lower than the figure last year. Similarly, two wheeler sales too declined by 3.4% to 15.6 lakh units in the month. The SIAM data also revealed that automobile sales slumped 5.1% to 60,74,874 in the quarter ended June 2025 as against the same month last year. 'The performance of the auto industry was relatively flat, though the retail registration for passenger vehicles, two-wheelers and three-wheelers were marginally higher than the previous Q1. Overall sentiments across categories have remained subdued so far, even as the industry continues to navigate supply-side challenges. With the upcoming festival season coupled with the benefits of RBI repo rate cuts, we expect consumer sentiments to improve, ' Shailesh Chandra President, SIAM told the newspaper. In May this year, Maruti Suzuki Chairman R.C. Bhargava had said that most Indians simply cannot afford to buy even the most basic car anymore. This is not a matter of shifting aspirations or changing tastes, he insisted; it is a crisis of affordability, driven by stagnant incomes and relentless cost escalation. Entry-level models, once the pride of India's mass market, have seen sales tumble. Maruti Suzuki's own small car segment, the traditional backbone of its business, recorded a 9% sales decline in 2024. Since 2020, regulatory changes have pushed up the cost of a small car by nearly Rs 90,000, putting even the humble Alto or WagonR out of reach for families with budgets of Rs 5-7 lakhs.
Hindustan Times
16-07-2025
- Automotive
- Hindustan Times
India auto industry sees record exports in Q1 despite domestic sales dip in June 2025
Domestic sales of two-wheelers in June stood at 15,59,851 units, a decline of 3.4 per cent. Scooters and motorcycles fell by 1.7 per cent and 3.7 per cent, respectively (Photo is representational) Notify me The Indian automotive industry reported a muted domestic performance during June 2025, but a silver lining was provided by exports, which helped lift overall quarterly mood. The latest numbers from the Society of Indian Automobile Manufacturers (SIAM) show total domestic vehicle sales for the month fell 3.6 per cent year-on-year to 18,97,445 units, while exports jumped 28.1%, to 5,02,131 units. In spite of a weak month, Q1 FY2025–26 (April–June 2025) gave some big highs, especially in exports, which rose by 22.2 per cent compared to the previous year to 14.57 lakh units, as driven by high overseas demand for two-wheelers, PVs, and three-wheelers. Passenger Vehicles In June 2025, sales of passenger vehicles (PVs) fell 6.3 per cent year-on-year to 2,75,766 units, passenger cars fell 15.3 per cent and vans fell 13.3 per cent. Utility vehicles (UVs), which now contribute 66 per cent of total PV sales, remained resilient, dipping just 0.9 per cent. Also Read : Indian auto sector faces tough Q1 FY26 as costs climb and exports slow: Report For the full Q1 period, domestic PV sales fell 1.4 per cent to 10,11,882 units, while exports surged by 13.2 per cent to an all-time high of 2,04,330 units. This growth was fuelled by robust demand in Latin America, the Middle East, and Free Trade Agreement (FTA) markets like Australia and Japan. Two-Wheelers Domestic sales of two-wheelers in June stood at 15,59,851 units, a decline of 3.4 per cent. Scooters and motorcycles fell by 1.7 per cent and 3.7 per cent, respectively, while mopeds saw a deeper 17.4 per cent drop. For Q1 FY26, total two-wheeler domestic sales declined 6.2 per cent to 46.74 lakh units, impacted by inventory corrections. However, exports jumped 23.2 per cent, with 11.36 lakh units shipped, thanks to a rebound in demand from Africa, South Asia, and Latin America. Also Read : Indian auto exports rise sharply as home market remains sluggish in June: Report Industry Outlook: Eyes on festive season and financing relief Commenting on the Q1 performance, Shailesh Chandra, President of SIAM, acknowledged that while retail demand showed slight improvement over wholesale figures, the industry continues to grapple with macroeconomic uncertainty and persistent supply-side challenges. He spoke of guarded optimism for the next quarter, saying the next festival season and accommodative monetary policy will improve consumer sentiment over the course of time. The industry is pinning its hopes on a combination of factors to drive a recovery in Q2 — including festive season demand, the positive impact of an above-normal monsoon on rural incomes, and improved affordability driven by a cumulative 100 basis point cut in the RBI's repo rate. Still, Chandra also pointed to potential headwinds, most notably China's imposition of rare earth magnets export licensing restrictions recently, which might interrupt electric and hybrid vehicle production plans in the months that follow The first quarter of FY2025–26 paints a cautious yet promising picture. While domestic volumes were challenged, record-high exports across all major segments reaffirm India's rising importance as a global automotive hub. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 16 Jul 2025, 09:33 am IST
Time of India
15-07-2025
- Automotive
- Time of India
Rural slump ends India's four-year auto sales run, exports hit record high
India's car and two-wheeler sales slipped in the June quarter for the first time in four years, hit by weak rural demand and sluggish entry-level purchases. Passenger vehicle exports, though, reached a record high, helped by strong overseas demand. Supply risks for electric vehicles loom due to delays in Chinese rare earth magnet exports. The industry hopes for a slow recovery, banking on lower interest rates, infrastructure spending and the upcoming festival season to revive domestic demand. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: India's passenger vehicle and two-wheeler sales fell in the June quarter, breaking a four-year growth streak, underscoring tepid demand in the rural markets and lower offtake of entry-level cars , as well as scooters and of cars, utility vehicles, and vans fell 1.4% year-on-year to around 1 million units last quarter, showed data from the Society of Indian Automobile Manufacturers SIAM ). Two-wheelers contracted 6.2% to 4.6 million units. SIAM counts automobile sales as factory dispatches and not retail exports however bucked the trend, growing 13% to 204,330 units, a record for a passenger vehicle sales slipped to an 18-month low in June, declining 7.4% year-on-year to 312,000 units, the lowest sales tally since last December. PV exports in June grew by 0.6% to 76,719 marks a reversal from the strong sales performance since August 2024, driven initially by new model launches and improved supply two-wheeler sales fell 3.4% to 1.5 million units, but three-wheelers recorded a 3.8% rise to 61,828 units.'There is clear stress in the entry-level segment, particularly for cars under ₹10 lakh,' Shailesh Chandra, president of SIAM said at a media briefing on Tuesday. 'On the other hand, premium SUVs and higher-end vehicles continue to perform well, highlighting a tale of two markets.'Chandra attributed the demand slowdown to affordability challenges in rural areas, changing consumer preferences, and ongoing inventory correction. He also flagged a growing supply-side concern—continued delays in Chinese approvals for rare earth magnet exports, essential for electric vehicle (EV) the exports front, in addition to PVs, other segments also posted strong performance. Two-wheeler shipments jumped 34%, followed by commercial vehicles (23%), and two-wheelers (23%), and passenger vehicles (13%), reflecting robust demand from international markets including Latin America, the Middle East, Japan, and the shortage of rare earth magnets and its impact on the sector, Chandra said he expects the issue to be resolved soon. 'There are around 30 applications still awaiting approval in China. This poses a significant supply risk for the EV sector,' he noted. 'The industry is working to identify alternative sources and move toward long-term self-reliance with government support.'In the two-wheeler category, monthly scooter sales declined 1.7%, motorcycles 3.7%, and mopeds plunged 17.4%, all pointing to sustained pressure on lower-income buyers. However, Chandra noted a 5% rise in Q1 vehicle registrations , driven by marriage-season demand and increased purchases by female three-wheelers remained under stress, with e-rickshaw and e-cart sales declining nearly 14% and 25% respectively in June. But overall segment growth was supported by a 5.3% increase in passenger carrier sales, aided by improved access to ahead, SIAM expects demand to recover at a modest pace in the coming quarters, supported by the central bank's recent repo rate cut, infrastructure spending, and festive season tailwinds.
