TWO WHEELER
Amid demand slowdown, EVs plug into PE recharging infrastructure
Private equity firms are increasing investments in India's electric two- and three-wheeler industry amidst a slowdown in electric passenger vehicle sales. Total funding in the first half of 2024 reached $754 million. Electric two-wheeler sales are on the rise, but electric passenger vehicle sales have declined. Challenges such as range anxiety and inadequate charging infrastructure persist.
Two can work better than four-wheelers
India is exploring a unique path to vehicle energy transition, focusing on hybrid solutions amidst limited battery-charging infrastructure. Japanese automakers have introduced dual-fuel cars (petrol and CNG), reducing costs and boosting sales, especially in cities mandating dual-fuel taxis. Bajaj extends this concept with the world's first CNG motorcycle, leveraging its expertise from autorickshaws. Challenges include sparse CNG stations, though more available than EV chargers. While these innovations may delay EV adoption, India aims to ramp up domestic EV production under tariff protections, pivoting towards renewable energy-driven charging networks for sustainable transition.
FY25 will see a 7-9 pc growth in two-wheeler sales, down from 9.8 pc in FY24
The CareEdge Ratings report predicts the two-wheeler industry's volume growth in FY2025 to be 7-9 per cent, lower than the 9.8 per cent recorded in FY2024. Factors driving growth include increased Electric Vehicle sales, the Electric Mobility Promotion Scheme 2024, expected interest rate cuts in the second half of FY25, and strong demand for new model launches. Recovery in exports, a favorable monsoon, and improved rural consumer sentiment are also key growth drivers.
Two-wheeler sales volume growth to continue this fiscal: CareEdge Ratings
The two-wheeler industry is projected to sustain steady growth this fiscal year due to improved domestic sales and strong demand in executive and premium segment motorcycles, according to a report by CareEdge Ratings. Post-COVID, the industry saw a decline but began recovering in FY23, with momentum continuing into FY24. Key drivers include higher EV sales, CNG-powered two-wheelers, and anticipated interest rate cuts in the latter half of FY25. The Indian two-wheeler industry recorded sales growth in FY23 and FY24, with future growth expected to be bolstered by new model launches and recovering exports.
Footfalls at auto dealers fall in June, so do RTO registrations
Vehicle registrations rose 0.73% to 1,895,552 units, with two-wheelers up 4.7%, three-wheelers 5.1%, passenger vehicles down 6.8%, and commercial vehicles falling 4.7%. Heatwaves, deferred purchases, and kharif crop delays impacted sales. Rural market share for two-wheelers fell to 58.6%. Dealers expect increased sales with improved supply and product launches despite high inventory and election slowdowns.
Ather Energy aims to raise market share with foray into family scooter segment
Electric two-wheeler maker Ather Energy aims to boost its market share as it expands into the family scooter segment, according to a company official. The Bengaluru-based company has so far focused on manufacturing sporty scooters.
Auto sales muted as extreme heatwave cools demand in July
Vehicle registrations in June were nearly flat, up just 0.73% from the previous year, with 1,895,552 units registered. Extreme heatwaves and delayed monsoons dampened retail sales, notably impacting two-wheelers and passenger vehicles. Despite optimistic forecasts for the monsoon season, the auto industry faces challenges, including high inventory levels and subdued market sentiment.
What is the value proposition of a CNG bike vs EV & ICE models? Bajaj Auto’s Rakesh Sharma answers
An average customer earning Rs 30,000 to Rs 40,000 per month can expect to save about Rs 1,500 per month by using CNG as a fuel. Also, CNG, while still a carbon-based fuel, has far less carbon content, and to that extent, it is much more beneficial from an environmental point of view than diesel or petrol, says Rakesh Sharma, ED, Bajaj Auto.
What's draining the juice out of electric two-wheeler makers' battery
Sales of e2Ws plummet due to policy inconsistencies, supply chain issues with Chinese suppliers, and expectations for FAME III rollout, impacting top manufacturers like Hero Electric, Okinawa, and Ampere.
This festive season, mission is possible: Companies to stockpile weapons of mass consumption
Manufacturers are gearing up for a surge in demand, anticipating a boost in sales for smartphones, refrigerators, wearables, and two-wheelers during the upcoming festive season. The industry is optimistic about growth, especially in rural India, with expectations of exceeding previous sales records.
Indian carmakers post SUV-led June sales growth amid heat waves
Carmakers Mahindra & Mahindra, Toyota Motor Corp's Indian unit, and Kia Motor reported increased car sales in June. This rise was driven by demand for sports utility vehicles (SUVs), despite heat waves affecting purchase decisions.
Bajaj Auto inaugurates its first overseas manufacturing facility in Brazil
Bajaj Auto opened a new manufacturing plant in Brazil to produce Dominar models and expand its global presence with partners like KTM AG and Triumph, targeting the growing Latin American two-wheeler market.
Musashi India begins mass production of e-Axles for EV two-wheelers
Musashi Auto Parts India, a subsidiary of Musashi Seimitsu Industries, has started mass production of e-Axles for electric two-wheelers in India with a Rs 160 crore investment in EV business.
Auto industry body seeks cut in two-wheeler GST; SIAM suggests three-level slabs based on fuel types
Society of Indian Automobile Manufacturers (Siam) has requested a reduction in GST rates on two-wheelers in India. They proposed different slabs for different types of two-wheelers to lower the rates. Siam also wants the removal of the 3% cess on high cubic capacity bikes.
Bajaj Auto total sales flat at 3.55 lakh units in May
Bajaj Auto's sales remained flat at 3,55,323 units in May. The automaker had sold 3,55,148 units in May 2023. Total domestic sales declined 1 per cent to 2,25,087 units in May from 2,28,401 units sold in the year-ago period. Exports rose 3 per cent at 1,30,236 last month from 1,26,747 previous May.
May 2024, saw marginal decline in domestic 2-wheeler sales, exports however were up
India's two-wheeler sales experienced a marginal decline in May 2024 compared to the previous year, with major manufacturers like Hero MotoCorp, Bajaj Auto, and Eicher Motors reporting declines. Hero MotoCorp sold 498,123 units, while Bajaj Auto sold 305,482 units. Eicher Motors sold 71,010 units, 8% lower than the previous year. However, all three companies reported growth in exports, with Eicher Motors exports growing by 12%.
Strong sales growth for entry-level two-wheelers in H2 of FY24; big relief for automakers
The trend continued in April, driven by an improvement in income levels thanks to healthy economic growth, making the automobile industry bullish of a sustained recovery in the twowheeler segment and sparking green shoots of recovery in small car sales.
Two-wheeler makers ride high on record sales of branded spare parts
Royal Enfield, Bajaj Auto, and Hero MotoCorp saw record revenue in FY24 from branded parts and accessories sales, driven by a preference for branded spares. Revenue growth was boosted by premium models like Xpulse and Splendor motorcycles. Hero MotoCorp plans to expand its Global Parts Centre to capitalize on the growing market.
Bikes will retake pre-covid peak in two years: TVS
Two-wheeler sales in India are expected to surpass pre-Covid peak this fiscal year or next, according to Sudarshan Venu, managing director at TVS Motor Company. The Indian economy is in a "good situation" with inflation under control, which will drive consumption going forward. TVS Motor is planning to launch multiple products to grow faster than the market, including a slew of electric vehicles (EVs) at varied price points to cater to diverse customers.
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