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Automobile News - June 2, 2025

India's Electric Scooter Sales Surge 30% in May!

India’s Electric Scooter Sales Surge 30% in May!

 

TVS Motor, Bajaj Auto, and Ather Energy see surging sales as India’s EV market grows by a third in May, even as Ola Electric loses momentum and Chinese imports loom large on the horizon.

Summary:

India’s electric two-wheeler (E2W) sales increased significantly by 30% year over year in May 2025, reaching 1,00,266 units. Well-established companies such as TVS Motor, Bajaj Auto, and Ather Energy reported considerable increases in sales volume, whereas Ola Electric, the leading player in the sector, experienced a 50% drop in its monthly sales. The strong growth comes amid an evolving market landscape, with rising Chinese imports posing fresh challenges to Indian OEMs.

India’s E2W Market Charges Ahead: May Sales Hit 1 Lakh Units

India is increasingly moving towards the adoption of electric mobility. In May 2025, electric two-wheeler (E2W) sales surged by 30% year-on-year, reaching 1,00,266 units. This marks a significant psychological and economic milestone, signalling sustained consumer interest, improving infrastructure, and increasing product diversity in the electric mobility space.
While the headline numbers show promising growth, the market’s underlying dynamics are shifting rapidly. Traditional ICE (internal combustion engine) giants like TVS Motor and Bajaj Auto and newer players like Ather Energy have emerged as key beneficiaries of the latest surge. In contrast, Ola Electric, which once led the segment, reported a sharp decline in monthly volumes.

Market Share Shake-Up: TVS and Bajaj Double Down, Ola Declines

TVS Motor Company showed impressive results in May, with its electric two-wheeler sales reportedly more than doubling compared to the same month last year. This was due to its iQube series’ wide acceptability and improved supply chain efficiency. The company has steadily expanded its charging network and upgraded its product features, which has helped it strengthen its market share.
Bajaj Auto, leveraging its trusted Chetak EV, also saw a significant upswing, with sales more than doubling compared to May 2024. Bajaj’s strategy of leveraging its ICE dealer network and offering a premium, low-maintenance EV alternative has started to bear fruit.
Ather Energy, known for its tech-savvy offerings and consistent branding, recorded an impressive rise in monthly volumes. With its expanded production capacity, wider retail reach, and battery subscription options, Ather is increasingly viewed as a reliable long-term player.
In contrast, Ola Electric’s sales halved in May, signalling either a strategic pullback or challenges in product delivery, customer service, or market saturation in early-adopter zones. While Ola remains a major player, the sharp decline has sparked speculation about its ability to sustain leadership amid growing competition and evolving consumer expectations.

Rising Chinese Threat: Low-Cost Imports Stir Concerns

Beyond domestic competition, Chinese electric two-wheelers and components are beginning to make their presence felt in the Indian market. Several low-cost Chinese brands have entered via import channels or local assembly partnerships, offering aggressively priced models with attractive features.
Indian manufacturers fear that the influx of unregulated or lightly monitored Chinese EVs could threaten pricing stability and quality standards. These imports, often not subject to the same quality certifications or safety benchmarks, can undercut prices while raising concerns about battery reliability and after-sales service.
Industry groups and local manufacturers are advocating for the government to tighten import regulations and boost local value addition by introducing more stringent requirements for the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) subsidy.

Policy Push and Consumer Tailwinds

The growth in May sales comes on the back of continued policy support from the central and state governments, such as:
FAME II subsidies extended till 2027
State-specific incentives like road tax exemption, registration fee waivers, and capital support
GST at 5% on EVs compared to 28% on ICE vehicles
PLI (Production Linked Incentive) scheme support for advanced battery manufacturing
Moreover, consumer awareness around fuel savings, environmental consciousness, and improved financing options have made electric scooters a practical urban mobility choice.

Supply Chain and Infrastructure Gains

One of the major factors supporting E2W growth is the maturing supply chain ecosystem, especially for battery packs, power electronics, and motor controllers. Local sourcing has increased significantly over the past 12 months, reducing import dependence.
Charging infrastructure, though still developing, has seen notable progress with the rise of home charging units, battery-swapping stations, and fast-charging corridors in Tier-1 and Tier-2 cities. Companies like Bounce, Sun Mobility, and Jio-bp are investing heavily in last-mile EV energy solutions.

Outlook: Can India’s EV Ecosystem Sustain the Growth?

Looking ahead, the Indian E2W market appears poised for sustained expansion. However, moving ahead brings its own challenges. Important factors to monitor include:
– Clear policies regarding FAME III and long-term subsidy strategies
– Competition from imports from China and related regulatory measures
– Concerns about battery fires and safety during peak summer temperatures
– Access to financing for buyers in rural and semi-urban areas
– After-sales support networks and guarantees on residual value
The coming quarters will be crucial in determining whether the growth in May is an inflection point or a short-term spurt.

Conclusion

In May 2025, India’s electric two-wheeler sector reached a significant milestone by surpassing 100,000 monthly sales, reflecting a 30% year-on-year growth. With homegrown giants like TVS and Bajaj aggressively capturing market share and the likes of Ather innovating rapidly, the competitive landscape is evolving fast. Ola Electric’s sharp decline adds a twist to the story, while the entry of low-cost Chinese imports stirs the pot further.
As the electric mobility race intensifies, India’s E2W sector is no longer just about transportation—it’s about strategic autonomy, economic opportunity, and environmental resilience.

 

 

 

 

 

 

 

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Mahindra Reports 17% Increase in Sales for May, Fuelled by 21% Surge in SUV Sales

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Mahindra Reports 17% Increase in Sales for May, Fuelled by 21% Surge in SUV Sales
Automobile News - June 2, 2025

Mahindra Reports 17% Increase in Sales for May, Fuelled by 21% Surge in SUV Sales

Mahindra Reports 17% Increase in Sales for May, Fuelled by 21% Surge in SUV Sales

 

Mahindra & Mahindra is capitalising on strong SUV demand in India, reporting a 17% overall growth in May 2025. With 52,431 sales of domestic SUVs and rising exports, the automotive giant reinforces its position as a leader in the utility vehicle segment.

 Summary:

Mahindra & Mahindra (M&M), a significant player in India’s automotive industry, announced a 17% rise in vehicle sales for May 2025, with 84,110 units sold in domestic and export markets. The domestic SUV sector experienced a significant 21% year-on-year growth, with 52,431 units sold, fuelled by high demand for popular models such as the Scorpio-N, XUV700, and Thar.

M&M’s May Surge: Robust Sales Fuelled by SUVs

Mahindra & Mahindra Ltd. (M&M) continues to ride the wave of India’s growing appetite for SUVs, reporting a 17% increase in total vehicle sales for May 2025, with 84,110 units sold, up from 71,082 units in May 2024. The bulk of this surge came from its domestic SUV business, which clocked 52,431 unit sales, marking a 21% year-on-year increase over the same month last year.

The robust numbers highlight M&M’s strong product positioning in the utility vehicle segment, backed by compelling designs, aggressive pricing, and continued demand across urban and rural markets. The automaker also sold 54,819 utility vehicles globally, including exports, showcasing its growing international footprint.

 Breaking Down the Numbers

Here is a closer look at Mahindra’s segment-wise performance in May 2025:

Segment May 2025 Sales May 2024 Sales YoY Growth
Utility Vehicles (Domestic) 52,431 43,080 +21%
Total Automotive (incl. CVs) 70,217 60,648 +16%
Tractors (Domestic + Export) 13,893 10,434 +33%
Total Vehicles (All Segments) 84,110 71,082 +17%

M&M’s growth wasn’t limited to the passenger segment. The farm equipment sector, particularly tractors, also reported a healthy uptick of 33% YoY, reaffirming the company’s dual strength in mobility and agriculture.

 Revenue Highlights (Consolidated)

  • Total Revenue from Operations (FY24): ₹1,39,078 crore
    (Up from ₹1,21,362 crore in FY23, showing a growth of 14.6%)
  • Profit Before Tax (PBT): ₹14,856 crore
    (Up from ₹11,305 crore in FY23 – a 31.4% increase)
  • Profit After Tax (PAT): ₹11,269 crore
    (Compared to ₹10,282 crore in FY23 – a 9.6% rise)

 Revenue Ratios & Financial Indicators (Standalone)

Ratio FY24 FY23 Change / Comment
Operating Profit Margin 14.9% 13.9% Improved due to higher operational efficiency
Net Profit Margin 10.6% 7.6% Significant improvement, reflecting stronger profitability
Return on Net Worth (RoNW) 22.4% 16.1% Enhanced due to higher net income
Debt Equity Ratio 0.03 0.11 Deleveraged balance sheet owing to repayment of borrowings
Interest Coverage Ratio 66.6x 28.5x Stronger due to lower finance costs
Inventory Turnover Ratio 8.1 8.7 Slightly lower, possibly due to inventory build-up amid rising sales
Debtors Turnover Ratio 22.6 23.5 Stable receivables management
Current Ratio 1.4 1.3 Marginally improved liquidity position

 Segment-wise Revenue Contribution (Standalone)

Segment Revenue (₹ crore) % Share of Revenue
Automotive ₹63,999 72.57%
Farm Equipment ₹22,500 25.00%
Auto Investments ₹211 0.24%
Farm Investments ₹247 0.29%
Industrial & Consumer Services ₹1,667 1.89%

SUV Segment: M&M’s Powerhouse

M&M’s achievements in May are primarily linked to its strong performance in the SUV segment, where the company has established a significant stronghold. The following models are key players:

– Scorpio-N and Scorpio Classic continue excelling in urban areas and Tier-II markets.

– XUV700, with its advanced technology and ADAS features, remains a favourite among premium SUV buyers.

– The Thar, recognized as Mahindra’s off-road lifestyle vehicle, consistently draws the attention of passionate enthusiasts and adventure seekers.

The company has successfully capitalized on the current SUV surge in India, where utility vehicles account for more than 50% of total passenger vehicle sales. This trend has been driven by shifting consumer preferences, enhanced road infrastructure, and increasing aspirational spending.

 Export and Commercial Vehicle Performance

On the global front, Mahindra’s export performance remained steady, helping it reach a total utility vehicle tally of 54,819 units. While the company is still a relatively small player in developed markets, its presence in Africa, South Asia, and Latin America is gaining momentum through affordable, rugged utility models tailored for developing nations.

In the commercial vehicle space, M&M continues to perform consistently in the light commercial vehicle (LCV) segment, particularly under 3.5 tons, with strong demand from logistics, MSMEs, and rural transportation.

Tractor Division Shines: Strong Rural Sentiment

The Mahindra Farm Equipment Sector (Mahindra’s tractor division S) reported 13,893 units sold in May 2025, including domestic and export markets. This reflects a robust 33% year-on-year growth, buoyed by favourable monsoon forecasts, rising crop prices, and government support for mechanization in agriculture.

As the world’s largest tractor manufacturer by volume, Mahindra’s dominance in this segment continues to give it a competitive edge, even when passenger vehicle markets face supply-chain disruptions or demand fluctuations.

 Strategic Investments & Future Outlook

M&M’s strong May performance comes at a time when the company is investing aggressively in future-ready platforms, including:

  • EVs (Electric Vehicles): The Born Electric range of SUVs is under development, expected to launch in phases from late 2025
  • Digital transformation: Strengthening its after-sales and service infrastructure through connected car features and mobile servicing
  • Global manufacturing: Considering new overseas assembly facilities to tap into emerging markets

While M&M faces increasing competition from Tata Motors, Hyundai, and newer entrants like MG Motor and BYD, its brand strength in rural and semi-urban India and consistent product innovation positions it well for sustained growth.

 Challenges and Competitive Landscape

Despite the positive growth story, Mahindra faces some challenges ahead:

  • EV transition pace: While competitors like Tata Motors lead in electric passenger vehicle sales, Mahindra’s EV portfolio remains limited.
  • Chip supply volatility: Though easing, global semiconductor shortages could still impact production.
  • Global headwinds: Export performance could be hindered by geopolitical disruptions, logistics costs, and foreign exchange risks; Mahindra’s strong brand recall, product pipeline, and diversified presence across automotive and agricultural sectors make it one of the most balanced companies in the Indian auto space.

 Conclusion

Mahindra & Mahindra’s overall vehicle sales saw a remarkable 17% increase in May 2025, highlighting its resilience and the loyalty of its customers. The 21% surge in domestic SUV sales shows that M&M continues to thrive in India’s fast-evolving automotive landscape. With robust tractor sales and growing global reach, Mahindra is not just riding the SUV wave—it’s helping shape it.

As the company gears up for the EV era while defending its legacy markets, investors, analysts, and consumers watch closely to see how Mahindra navigates the next leg of India’s mobility revolution.

 

 

 

 

 

 

 

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US Sanctions on Russia Pose Significant Challenges to India’s Crude Oil Imports

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Maruti Suzuki's EV Export Push: A Strategic Win for Investors
Automobile News - May 6, 2025

Maruti Suzuki Boosts Production for ICE and Electric Vehicles

Maruti Suzuki Boosts Production for ICE and Electric Vehicles

India’s largest automaker plans to enhance production flexibility, enabling the simultaneous rollout of internal combustion and electric vehicle models. By FY2031, the company aims to add 20 lakh additional capacity and have a 28-model portfolio.

Summary:

Maruti Suzuki, India’s top carmaker, is reengineering its production strategy to support internal combustion engine (ICE) and electric vehicle (EV) models from the same assembly lines. The move aligns with its long-term target of adding 2 million units of annual capacity by 2031. With the new Kharkhoda plant already operational and the highly anticipated e-Vitara EV launch around the corner, Maruti Suzuki is poised to offer a diverse portfolio of 28 models to maintain leadership in a rapidly transforming auto industry.

Maruti Suzuki’s Dual EV Production Strategy

Maruti Suzuki India Limited (MSIL) is upgrading its manufacturing facilities to support the production of both internal combustion engine (ICE) and electric vehicles (EVs) on a unified platform, reflecting the company’s strategic push toward a flexible and future-ready product line. The move signals Maruti’s pragmatic and forward-looking approach as the Indian automotive market begins transitioning toward cleaner mobility options while ICE vehicles continue the current demand landscape.
This flexibility in manufacturing is a cornerstone of Maruti’s Vision 3.0, which aims to double down on capacity expansion, product diversification, and technological innovation by the end of this decade.

20 Lakh Units Additional Production Capacity by FY2031

Maruti Suzuki has revealed that it plans to add 2 million (20 lakh) units of annual production capacity by FY2031, bringing its total production capacity to over 4 million vehicles per year. This significant expansion will be driven by:
New facilities like the Kharkhoda plant in Haryana, which has already started rolling out models,
Upgrades to existing factories in Manesar, Gurgaon, and Gujarat,
Introduction of new vehicle platforms and modular manufacturing systems.
The increased capacity will be crucial to meeting the growing demand for ICE and EVs and supporting exports from India as the company seeks a larger share of international markets.

Kharkhoda Plant: Maruti’s Next-Gen Manufacturing Hub

The newly commissioned Kharkhoda plant in Haryana, which is spread across 800 acres, has begun production and is positioned as Maruti Suzuki’s flagship manufacturing hub for the next generation of automobiles. The facility is designed with a high level of automation, digitization, and multi-energy platform capability, making it the epicentre of Maruti’s flexible manufacturing strategy.
In its initial phase, the Kharkhoda plant will contribute 2.5 lakh units annually, with a phased ramp-up to 10 lakh units per year as new models—especially EVs—are launched.

28 Models by 2031: Diversification to Meet Evolving Demand

Currently offering 17 models across hatchbacks, sedans, SUVs, and MPVs, Maruti Suzuki aims to expand its product portfolio to 28 models by 2031. This will include:
Multiple EVs across segments (e.g., compact SUV, premium hatchback, and possibly MPV),
Continuation and modernization of ICE models to meet evolving emission norms,
New CNG and flex-fuel options are available in select segments.
The diversified portfolio is intended to cater to urban EV adopters, rural ICE loyalists, and eco-conscious hybrid customers, making Maruti a one-stop solution for every type of buyer.

e-Vitara: Maruti’s First EV Set for Launch

The e-Vitara, a battery-electric variant of Maruti’s well-loved compact SUV, will be the brand’s first electric vehicle, anticipated to debut in 2025. The model will be based on a dedicated EV platform jointly developed with Suzuki Motor Corporation and Toyota.
Introduce hybrid solutions that connect internal combustion engine (ICE) vehicles with electric vehicles (EVs).
It will feature regenerative braking, fast charging, and connected car technologies.
The EV will be manufactured in India and likely be exported to European and Asian markets.
With this launch, Maruti Suzuki enters the EV market with a competitive offering while leveraging its scale and dealership network for rapid market penetration.

Flexibility = Future-Readiness

With the auto industry evolving unprecedentedly, flexibility is now the keyword for success. Maruti’s decision to revamp its production lines to handle multi-energy vehicles positions it ahead of many competitors still relying on segregated production setups.
This move also offers:
Faster go-to-market timelines for new models,
Improved cost efficiency through shared platforms,
Reduced capex as the same infrastructure serves multiple drivetrain options.
Maruti’s scalable modular platforms, similar to Toyota’s TNGA and VW’s MQB, are optimized to handle ICE, hybrid, and electric variants with minimal modifications, allowing it to remain agile and responsive.

Policy Support and Market Tailwinds

Maruti’s strategy for electric vehicles and production aligns with India’s national goals.
The FAME II scheme and PLI incentives for battery and EV manufacturing,
A growing charging infrastructure across urban and semi-urban locations,
Rising customer awareness about green mobility and total cost of ownership of EVs.
Furthermore, states like Gujarat, Maharashtra, and Tamil Nadu offer EV-friendly policies, making it conducive for Maruti to scale up nationwide.

Conclusion: Maruti Sets the Tone for India’s Dual-Track Auto Future

Maruti Suzuki’s decision to integrate ICE and EV production marks a pivotal shift in India’s automotive manufacturing strategy. The company is creating a robust bridge between traditional mobility and the electric future by embracing flexibility and committing to large-scale capacity expansion.
As India’s auto market becomes more diverse and technology-driven, Maruti’s strategy to offer 28 models by 2031, backed by next-gen facilities like Kharkhoda, will likely ensure that it not only retains its market leadership but also sets the benchmark for innovation, scale, and adaptability in Indian manufacturing.

 

 

 

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Decoding SBI’s Q4 Surge: Strategic Gains and Headwinds

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Rapido vs Ola-Uber: How a Bike Taxi Startup Disrupted India’s Ride-Hailing Market
Automobile News - May 2, 2025

TVS Takes the E2W Crown: Surpasses Ola Electric in April

TVS Takes the E2W Crown: Surpasses Ola Electric in April

 

TVS Motor Secures the Leading Position in Electric Two-Wheeler Sales.

TVS Motor has achieved the leading position in electric two-wheeler (E2W) sales for April, marking a significant shift in the competitive landscape. This surge in sales pushed Ola Electric to second place, continuing a trend where the once-dominant company has struggled to maintain its top ranking.

The total number of electric two-wheelers sold in India during April 2025 amounted to 91,791 units, reflecting a significant 40% increase compared to the sales figures from April 2024. This figure surpasses the previous record of 66,878 units sold in April 2023. The sales data is based on information from the Vahan database, a national vehicle registry in India.

TVS Motor’s Performance

TVS Motor outperformed Ola Electric by a narrow margin of 27 units in April 2025. The company recorded sales of 19,736 units, boosted by an additional 1,534 units sold on April 30, coinciding with the Akshaya Tritiya festival, which is considered an auspicious time to make purchases. TVS Motor now holds approximately 22% of the E2W market share, achieving a record for the highest single-day sales volume by any leading electric two-wheeler manufacturer.

Ola Electric’s Decline

Ola Electric’s current performance marks a considerable decline compared to its standing in April of the previous year. During that period, Ola Electric held a commanding 52% market share. However, its market share has now declined to 21%. The company has faced a series of challenges, including controversies and reports of unsatisfactory dealership experiences, which appear to have deterred customers. April 2025 marks the third consecutive month that Ola Electric has failed to secure the top sales position, having been previously surpassed by Bajaj Auto in the preceding two months. The April 2025 figures also indicate a 42% YoY decrease in Ola Electric’s sales.

Bajaj Auto’s Position

With 19,001 units of its Chetak electric scooter sold in April, Bajaj Auto claimed the third spot in electric two-wheeler sales, demonstrating an impressive 151% year-over-year increase for the company. Vahan data indicates that Bajaj Auto sold 1,258 electric scooters on the final day of April. The recent introduction of the Chetak 2900, priced at Rs 1.15 lakh ex-showroom, may have influenced some potential buyers to delay their purchases in anticipation of this more affordable model.

Market Dynamics and Future Outlook

The Indian electric two-wheeler market is dynamic and evolving rapidly. Even though TVS Motor now leads the April 2025 electric two-wheeler sales charts, the industry is still a dynamic battlefield with constant change and intense rivalry between competitors. Companies are vying for market share through new product launches, pricing strategies, and addressing customer concerns.

Ola Electric’s decline highlights the importance of customer satisfaction and addressing service-related issues. The company’s ability to regain market share will depend on how effectively it resolves these challenges and rebuilds consumer confidence.

Bajaj Auto’s growth demonstrates the increasing demand for its Chetak electric scooter. The introduction of a more affordable variant could further drive sales and solidify its position in the market.

Other players in the E2W segment are also contributing to the market’s expansion, offering a variety of electric scooter models with different features and price points. This increasing competition is benefiting consumers by providing them with more choices.

Government Support and Industry Growth

The Indian government’s support for electric vehicles through various policies and incentives is playing a crucial role in driving the growth of the E2W market. Initiatives such as subsidies, tax benefits, and the development of charging infrastructure are encouraging consumers to adopt electric mobility.

As battery technology improves and prices of electric scooters become more competitive, the E2W segment is expected to continue its strong growth trajectory in the coming years. This growth will not only reduce carbon emissions but also create new economic opportunities and transform urban transportation in India.

Final Thoughts

April 2025 witnessed a shift in India’s electric two-wheeler industry, with TVS Motor rising to the forefront, signaling a significant evolution in the market. The impressive expansion of TVS Motor and Bajaj Auto stands in stark opposition to Ola Electric’s significant drop in market share. Ola Electric’s challenges highlight the critical importance of customer satisfaction and effective service delivery in this competitive sector. The overall growth of the E2W market is being propelled by government support and increasing consumer awareness of the benefits of electric mobility. This increased awareness, combined with a wider range of product offerings, is empowering consumers to make informed choices, further fueling the expansion of the electric two-wheeler segment and paving the way for a more sustainable transportation ecosystem in India.

 

 

 

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Warburg Pincus Acquiries 10% Share in IDFC First Bank

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BEML Surges by 7.86% on Likely Upgrade to Navratna Status
Automobile News, Autos, Business, Economy, Market News, Markets - April 17, 2025

Amid hopes for a tariff reprieve, auto and ancillary stocks rise.

Amid hopes for a tariff reprieve, auto and ancillary stocks rise.

 

When U.S. President Donald Trump hinted at a possible temporary waiver of auto import tariffs in April 2025, shares of auto and related companies surged sharply on international markets. Investors and industry participants are feeling more optimistic as a result of this move, which has caused auto-related equities to rise on key markets.

A Tariff Reprieve Encourages Market Hope

The latest market surge has been sparked by President Trump’s declaration that he is considering pausing the 25% tariffs on imported cars and auto parts. Originally imposed to promote domestic production, the tariffs had sparked worries about higher automotive costs and possible supply chain disruptions worldwide.
Automobile manufacturers that depend on intricate global supply chains are seen to benefit from the prospect of a tariff suspension. It gives them the chance to modify their business practices without being immediately impacted by rising expenses, preserving their competitiveness in the global market.

International Auto Stocks React Favorably

Global stock markets have responded favorably to the prospect of a possible tariff respite, especially among automakers and related businesses. The shares of major automakers in the United States, including General Motors, Ford, and Stellantis, increased by 5.1%, 5%, and 6.8%, respectively. Gains were also seen by electric car makers such as Tesla, Rivian, and Lucid, which reflected increased investor confidence in the industry.

This optimism was reflected in Asian markets, where shares of Hyundai, Honda, and Toyota saw notable increases. These businesses, who have sizable export operations to the United States, have benefited most from the possible reduction of trade hostilities.

The Indian Auto Ancillary Industry Is Growing

The sentiment throughout the world has helped the auto ancillary business in India. The stock prices of companies like Samvardhana Motherson International Limited (SAMIL), Bharat Forge, and Sona BLW Precision Forgings have increased by as much as 8%. These businesses stand to gain from any lowering of trade barriers because of their significant exposure to global markets, especially those in North America.

Investor confidence has been further bolstered by the recent approval by the Indian government of a ₹26,000 crore Production Linked Incentive (PLI) scheme for the automobile industry. The plan is in line with the global trend toward localized production since it seeks to increase domestic manufacturing and lessen reliance on imports.

Effects on the Automobile Sector

The global auto sector is anticipated to be affected in a number of ways by the possible suspension of tariffs:
• Supply Chain Stability: Automakers may continue to produce and distribute goods by maintaining their current supply chains without having to immediately restructure them.
• Cost management: Reducing manufacturing costs through the avoidance of additional tariffs might be essential for setting prices and preserving market share.
• Strategic Planning: In line with long-term objectives of supply chain resilience, the respite gives businesses a window to plan ahead and make investments in local manufacturing capabilities.

Prospects for the Future

Even though recent advancements show promise, the car industry is still wary. Companies must continue to keep a careful eye on policy changes and be ready for any changes because the tariff suspension is only temporary. Navigating the changing trade landscape will need investments in regional manufacturing, supply chain diversification, and policy advocacy.
To sum up, the recent spike in the stock prices of car and related companies highlights how vulnerable the sector is to trade regulations and how crucial strategic flexibility is in adapting to changes in the world economy.

Summary :

Auto and ancillary stocks surged globally after Trump’s tariff pause hint, boosting investor optimism and supporting supply chain stability.

 

 

 

 

 

 

 

 

 

 

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Trump’s 245% Tariff Shock: Trade War Reloaded

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Poonawalla Fincorp’s Bold NCD Move: ₹1500 Crore Private Placement
Automobile News, Markets - April 12, 2025

Ola Electric’s Roadster X: India’s Next Big Leap in Electric Mobility

Ola Electric’s Roadster X: India’s Next Big Leap in Electric Mobility

Introduction: New Roads Ahead for Ola Electric

Ola Electric has expanded its electric vehicle (EV) vision with the introduction of the Roadster X, a motorcycle designed to redefine city travel. After carving a niche in the electric scooter segment, this launch marks a bold step toward capturing a broader share of the two-wheeler EV market in India.

Design: Built for the Bold

The Roadster X arrives with a design that’s sharp, aggressive, and clearly aimed at a younger generation of riders. It combines a sporty frame with modern aesthetics—a compact structure, dynamic stance, and stylish lighting all contribute to its street-ready appeal. Unlike traditional electric bikes that lean conservative in form, this one aims to stand out visually.

Technology: A Smart Machine on Two Wheels

Beyond looks, the Roadster X is expected to deliver advanced tech features. From a digital dashboard and wireless connectivity to navigation support and remote diagnostics, Ola continues to blur the line between vehicles and smart devices. Riders can likely expect app integration, ride analytics, and software updates delivered over the air.
Such features indicate that this motorcycle isn’t just about transportation—it’s about a connected experience tailored for tech-savvy users.

Performance: Urban Efficiency Meets Agility

Although Ola has not released complete specifications, the Roadster X is believed to be engineered for daily commuting. It’s expected to offer strong low-end torque, smooth throttle response, and a city-friendly top speed. With an estimated range around 150 kilometers on a single charge, the motorcycle should be ideal for work commutes and urban exploration alike.
The inclusion of fast charging support would allow users to top up quickly, minimizing downtime and maximizing daily usability.

Affordability: Positioned for Volume

Ola is known for making electric vehicles affordable without compromising quality, and early signals suggest the Roadster X will follow that trend. Market watchers believe the bike may be priced in the ₹1.5 lakh to ₹1.8 lakh range—affordable enough to compete with high-end petrol bikes and a few other electric rivals.
A balance of performance, features, and pricing may allow the Roadster X to appeal to both early adopters and value-conscious buyers looking to switch from fuel to electric.

Market Reaction: Positive Vibes from Investors

Ola Electric’s announcement of the Roadster X was received with enthusiasm. The company’s stock saw a modest rise, signaling confidence in its growth strategy. Analysts suggest that expanding into the motorcycle space can help Ola diversify its product offerings and reduce reliance on scooters alone.
This diversification could strengthen its position in the broader EV ecosystem and build long-term investor trust.

Strategic Expansion: More Than a Bike

The Roadster X isn’t just another new product—it’s a key move in Ola’s larger mission to dominate the EV segment. Alongside this launch, the company is developing charging infrastructure across cities, investing in battery innovation, and scaling its production capabilities.
These efforts are meant to support a more integrated ecosystem where every Ola vehicle—whether scooter or motorcycle—fits seamlessly into a user’s life.

Impact: A Push for Electric Motorcycling in India

Electric scooters have gained popularity in India, but motorcycles remain the more common mode of transport. Ola’s move into this segment may push the market forward, encouraging others to innovate and giving consumers more viable choices. With improved design, growing infrastructure, and rising awareness, the Roadster X could help speed up EV adoption among motorbike users.

Conclusion: Roadster X Signals Ola’s Ambition

By entering the motorcycle category, Ola Electric is clearly thinking beyond short-term wins. The Roadster X is not just about one bike—it’s about setting a standard for what electric two-wheelers can look and feel like. With intelligent features, user-friendly performance, and a strong design language, this motorcycle has the potential to make a big impact on India’s EV future.

 

 

 

 

 

 

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Sun Pharma Shares surge 5% as U.S. court clears Launch of key Autoimmune Drug

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MRF Q1 FY26: Revenue Up, Profits Down on Margin Pressures
Automobile News, Autos, Equities, Markets - February 21, 2025

Auto industry anticipates boost in demand by wedding season and recovery of infra projects

Indian automobile industry anticipates boost in demand by wedding season and recovery of infra projects

 

The Indian automobile industry is looking forward to the upcoming marriage season and also recovery of public infrastructure projects. The auto industry believes that it will lead to growth in sales of the vehicles, particularly affordable cars and two-wheelers. 

 

Challenges faced by Automobile industry

Following the festive season, the automakers in India faced issues in sales growth. It is also due to gradual removal of discounts. In recent times, the automakers are paying attention to two crucial factors which are overall demand trends and surge in price levels in the market. It will aid them in anticipating the future outlook of the auto industry and company as well. 

 

Higher rural demand

In terms of rural and urban demand, the demand for vehicles by rural region was higher in the range of 200 to 300 bps compared to the urban growth in the third quarter of FY25. This demand trend in rural areas highlights that people living in rural regions are showcasing higher interest in buying vehicles against the people living in urban regions. Despite strong growth from rural areas, the auto industry required a stronger boost in order to have complete revival of demand in the industry.

 

Factors contributing to revival of demand

As per the past trends, the auto industry recorded higher demand for vehicles in the wedding or festive season.  As the wedding season is coming up, many automakers anticipate that it will lead to higher demand for autos in the market as many purchase vehicles for personal use or as gifts. 

 

Apart from wedding and festive season, government incentives and infrastructure projects play a crucial role in strengthening the auto demand in the industry. In recent times, the auto industry believes that recovery in the infrastructure project by the government of India would lead to a boost to the auto sector. These plans will lead to faster infrastructure growth, expansion in income generation, mainly in rural regions. This will ultimately lead to strengthening of sales in the auto industry.

 

Additionally, other factors like interest rates and income tax cuts can also help in boosting demand for vehicles in the market. In case of contraction in interest rates, it will encourage people to take more loans for purposes like auto purchases as they have to repay less amount of loan. 

 

In the Budget 2025, the government of India announced income tax cuts up to Rs.12.75 lakhs of income. It led to expansion in disposable income of the people. It resulted in marginally easier for consumers to purchase new vehicles. 

 

International demand trend

In the third quarter of the financial year 2025, many automakers recorded robust strength demand in the international market which was higher than earlier estimates. In contrast to this, automobile component players recorded slowdown in demand trends in this third quarter. This current trend is anticipated to remain in the future quarters as well. 

 

In present times, the automobile industry in India is in a situation of uncertainty. The driving factors like contraction in interest rates, wedding season, and higher rural demand can lead to a boost to the revival of demand and sales in the auto industry in the upcoming terms.

 

 

 

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Adoption of high speed rails can aid in growth of India’s EV adoption rate like China

 

 

 

 

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Maruti Suzuki sets the target of regaining 50 percent auto market share in India
Automobile News, Autos, Business, Equities, Markets - February 21, 2025

Maruti Suzuki sets the target of regaining 50 percent auto market share in India

Maruti Suzuki sets the target of regaining 50 percent auto market share in India

 

Maruti Suzuki is considered as the largest automaker in India. It aims to regain 50 percent of its market share in the Indian passenger vehicle segment by the year 2030. 

 

Market share of the company

In the financial year 2019, the company had a market share of 50 percent in the Indian auto market. In the last few years, it faced strong competition from its peers like Kia, Tata, and Hyundai. In recent times, the company recorded a market share of about 41.6 percent in India.

 

Performance of the company in 3QFY25

The company was successful in achieving its revenue and profit targets due to better sales portfolio, quality, and better condition of exchange rates. However, the company recorded a contraction in achieving its volume sales growth. It was driven by contraction in its market share in the Indian auto market and also strong competition in the EV sector. 

 

Roadmap of Maruti Suzuki

The company’s mid-term management plan is to accelerate the production capacity to around 4 million units per annum which will be twice its current production capacity.  It targets to become the top auto manufacturer in the domestic market, export segment, and also in the Electric Vehicle (EV) segment in the upcoming five years. To put this plan in implementation, the company is developing two production facilities in Gujarat and Kharkhoda. 

Maruti Suzuki highlights that India is a crucial market for automakers. It will continue to progress in the future as well. It will act as an engine for the progress of Suzuki in the future. In recent times, the auto industry is recording a highly competitive environment and also rising demand of consumers for high quality of equipment, services, and product functions in their vehicles. 

SMC, a parent company of Maruti Suzuki main focus is to expand product portfolio and develop its capabilities in order to meet the preference of the Indian auto market. The company plans to expand and improve its product portfolio in terms of medium and large Sport utility vehicles (SUVs) and Multi-purpose vehicles (MPVs). It also focuses on quick development and launching of affordable vehicle segments in the market which will satisfy the consumer preferences.

The company plans to launch vehicles in various segments like battery electric vehicles, hybrid electric vehicles, CNG vehicles, and fossil fuel vehicles. It will be designed and manufactured as per the geographic conditions and consumer preference in various regions of India.

 

Launch of e Vitara

In the month of January 2025, the company launched its first BEV e Vitara at the Bharat Mobility Global Expo 2025. It is set to be sold in both domestic and international markets.  Further, the company plans to launch about 4 BEV auto models by the financial year 2030. Its peer companies like Tata Motors already have a strong market and portfolio in terms of EV models. This entry of Suzuki in EV is considered to be a late entry. Despite this, it is important to understand that India’s EV market is still in the growing phase compared to other nations in the world. The company aspires to achieve a strong position in the EV market with the advantage of a large consumer base and extensive network of touchpoints.

 

The company will join hands with FinDreams, which is a subsidiary company of China’s BYD for the purpose of purchasing batteries for its EV model vehicles. In the upcoming years, it plans to localize the production which will align with the progress in the EV market. 

 

It also has plans to upscale the Nexa into a premium brand and Arena addressing a broader customer base. This will help in achieving the company’s goal to adhere to better customer experience. 

 

Collaboration with Toyota

Maruti Suzuki’s strategic collaboration with Toyota continues to remain strong by working as equal partners and competitors. Both the companies plan to create a carbon-neutral space with cooperation and aims to progress in the future. The company has the goal of achieving carbon emission reduction of around 42 percent by the financial year 2030.

 

Future Outlook

The company aims to achieve market share of 50 percent in the Indian market by the year 2030. Additionally, it targets operating profit margin of higher than or equal to 10 percent and return on equity of higher than or equal to 15 percent in the initial half period of the 2030s.

 

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Larsen & Toubro recorded strong revenue and PAT growth with highest quarterly orderbook in 3QFY25

 

 

 

 

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Maruti Suzuki sets the target of regaining 50 percent auto market share in India
Autos, Equities, Markets, Research, Result Updates - January 30, 2025

Maruti Suzuki Q3FY25: Strong Revenue Growth and Record Exports, But Margin Pressure Remains

Maruti Suzuki Q3FY25: Strong Revenue Growth and Record Exports, But Margin Pressure Remains

Company Name: Maruti Suzuki India Ltd | NSE Code: MARUTI | BSE Code: 532500 | 52 Week high/low: 13,680 / 10,204 | CMP: INR 12,000 | Mcap: INR 3,77,433 Cr | P/E- 25

About the stock
➡️Maruti Suzuki India Ltd. is the largest passenger vehicle manufacturer in India, holding a dominant market share of over 40%. The company, a subsidiary of Suzuki Motor Corporation (Japan), offers a diverse portfolio ranging from entry-level hatchbacks to premium SUVs.

➡️It has a strong distribution network with over 4,000 touchpoints across the country. Maruti is also expanding into green mobility, with a growing focus on EVs, hybrids, and CNG models. The company has a significant export presence, catering to markets in Africa, Latin America, and the Middle East.

Strong Revenue Growth Led by Record Exports
➡️Maruti Suzuki delivered an in-line performance for Q3FY25, reporting net sales of ₹35,535 crore, up 15.7% YoY, driven by higher volumes (+13% YoY) and better realisation (+2.4% YoY). The company achieved its highest-ever exports in a quarter, with volumes rising 38% YoY, primarily supported by strong demand in Africa, Latin America, and the Middle East.

➡️Domestic sales increased by 9% YoY, aided by festive demand and growing preference for premium models. Despite these positives, realisation declined sequentially, reflecting a higher mix of entry-level models and discounting measures.

EBITDA Margin Under Pressure Due to Higher Costs
➡️Despite strong revenue growth, EBITDA declined to ₹3,890 crore, with the EBITDA margin contracting by 15 bps YoY to 11.3%, impacted by higher raw material and staff costs. However, raw material costs eased sequentially by 33 bps, offering some margin support.

➡️The average discount per car increased to ₹30,999, compared to ₹29,300 in the previous quarter, highlighting the need for promotional efforts to sustain sales momentum in the entry-level segment.

Demand Outlook: Strength in Premium Segment, Weakness in Entry-Level Cars
➡️The demand outlook remains favorable, particularly in rural markets where demand growth is outpacing urban regions. However, the entry-level segment continues to face softness, which may limit domestic volume expansion and necessitate higher sales promotions and discounts. The premium segment, particularly utility vehicles (UVs) and mid-size models, saw strong traction, contributing 20% and 17.6% to total domestic sales, respectively. This aligns with broader industry trends, where SUVs and high-end vehicles are gaining share.

Expanding EV & Green Vehicle Portfolio
➡️Maruti Suzuki has officially entered the EV market with the launch of E-Vitara, which will be manufactured exclusively by the company and exported to over 100 countries. Alongside its EV push, the company remains bullish on CNG vehicles, which now contribute one out of every three vehicles sold, reflecting a clear shift towards green mobility solutions.

Valuation and key metrics
➡️Maruti Suzuki is currently trading at 25x FY26 earnings, which is at a premium to Hyundai (22.2x) but justified by its market leadership, strong export growth, and expanding premium portfolio. The company’s return profile remains healthy, with a Return on Equity (ROE) of 13.8% and a Return on Capital Employed (ROCE) of 17.2% for the trailing twelve months (TTM). Additionally, its interest coverage ratio stands at 87.5x, indicating a strong balance sheet with minimal leverage concerns.

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Renewable Energy Sector Awaits Budget 2025 for Key Support Measures

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Hyundai Q3 FY2025 Sees 19% Profit Drop Amid Lower Sales and Rising Costs
Automobile News, Autos, Equities, Markets - January 30, 2025

Hyundai Q3 FY2025 Sees 19% Profit Drop Amid Lower Sales and Rising Costs

Hyundai Q3 FY2025 Sees 19% Profit Drop Amid Lower Sales and Rising Costs

Overview
On 28th January 2025, Hyundai published its third quarter reports of the financial year 2025 recording a contraction of 19 percent of consolidated net profit on a year-on-year basis. The PAT for the third quarter was about Rs.1,161 crore lower than the Rs. 1,425 crore for the previous financial year in the third quarter only. The reason for this is the fall in exports and sales at domestic level.

Performance of the company
In the third quarter of the financial year 2025, the company recorded a fall in total income to about Rs. 16,892 compared to its total income of about Rs. 17,244 crore in the same quarter of the previous financial year.

The company is popular for manufacturing hatchback models such as i20, Grand i10. It is also known for manufacturing Creta, which is a SUV model. In the third quarter of the financial year 2023-2024, the revenue of Hyundai was about Rs. 16,875. In the third quarter of the current financial year, it declined to about 1.3 percent which accounts to about Rs.16,648 crore of revenue.

After its earnings report was released, the stock price of Hyundai Motor declined.

Further, the company recorded a contraction in net profit by about 16 percent consecutively. Its net profit was about Rs. 1,375 crore in the second quarter of the financial year 2025. Also, its topline was about Rs. 17,260 crore in the second quarter which declined to about 3.5 percent in the third quarter of the current financial year.

While, its EBITDA margin was around 11.27 percent in the third quarter lower than 12.88 percent in the previous year of the same quarter. The reason for contraction in margins is due to slowdown in demand as well as rising geopolitical concerns.
Sales performance of the company
In terms of volume, Hyundai Motors was successful in selling about 1,86,408 units of passenger vehicles in the third quarter. From this total volume sales of passenger vehicles, volume sales in the domestic market was about 1,46,022 units. It is mainly driven by demand for SUV vehicles.

The company was also able to register its highest sales of CNG-based vehicles in terms of volume which accounts to growth of about 15 percent in the third quarter compared to 12 percent in the past financial year of the same period.

In terms of sales volume in rural areas, it surged to about 21.2 percent in the third quarter, higher than 19.7 percent recorded in the same quarter of the previous financial year. Also, the exports level of the company was recorded to about 40,386 units of sales volumes in the third quarter.

Future Perspective of the company
Hyundai Motors firmly believes that it will be able to expand its future growth by using its full potential and also search for new opportunities to expand profitability and sales volume of the company.

The company is optimistic about the development of the Electric vehicle segment in India. It is taking steps towards making electric vehicles with a broader view.

The company also states that the recent launch of Creta Electric model will promote growth and also acts as a breakthrough in the Electric vehicle sector.

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India’s export in auto industry reach 19 percent

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