India’s Gross Domestic Product (GDP) is projected to fall below 6.5 per cent for the current financial year 2025, as GDP growth in the second quarter (Q2 FY25) slowed to 5.4 per cent, according to a report released by the State Bank of India (SBI). The report emphasised that the real GDP growth for the first half of FY25 (H1 FY25) was recorded at 6.0 per cent, with an estimated growth of 6.5-6.8 per cent projected for the second half (H2 FY25). According to the report, the manufacturing-led slowdown played a significant role in the sluggish economic performance. Growth in the industry sector dropped to a six-quarter low of 3.6 per cent during Q2 FY25, substantially affecting the overall GDP numbers. The report stated, "With 6.0 per cent real GDP growth in H1 FY25, the overall growth for the full fiscal year is expected to fall below 6.5 per cent (assuming 6.5-6.8 per cent growth in H2). This manufacturing-led slowdown gives a sketchy reading when juxtaposed against non-impulsive credit growth." The incremental growth in the industry sector during Q2 FY25 amounted to Rs 42,515 crore, a sharp decline compared to Rs 1.4 lakh crore in the same period of the previous year. This marks a decrease of approximately Rs 1 lakh crore in incremental terms. The report added, "After seven quarters, GDP growth has dropped below the 6.0 per cent mark in Q2 FY25, primarily due to 3.6 per cent growth in the industry sector." Despite some resilience shown by other sectors, the underperformance of the industrial sector weighed heavily on the overall economy. The services sector grew by 7.1 per cent in Q2 FY25, marginally higher than the 6.0 per cent recorded in Q2 FY24, but nearly flat compared to the 7.2 per cent growth in Q1 FY25. The agriculture sector, which has consistently performed well since the pandemic, recorded a growth of 3.5 per cent in Q2 FY25, a significant rise compared to 1.7 per cent in Q2 FY24. However, its contribution to overall growth remained modest, with a weighted contribution of just 40 basis points. The Gross Value Added (GVA) growth for Q2 FY25 stood at 5.6 per cent, while nominal GDP grew by 8.0 per cent. This marks the first instance in seven quarters where GDP growth has dipped below the 6.0 per cent threshold, underscoring the challenges facing the economy. According to ANI, the report highlighted that year-on-year comparisons may provide a skewed perspective and recommended focusing on incremental growth figures. While India’s economy has demonstrated resilience in previous years, the current slowdown indicates a temporary pause in the growth trajectory, driven by broad-based sluggishness in the industrial sector. As per ANI, the report concluded that the Indian economy continues to face challenges but remains poised to recover as the industrial sector stabilises. (With inputs from ANI)
30 November,2024 09:26 AM IST | New DelhiIndian stock markets bounced back on Friday, reversing a sharp correction from the previous day. On Thursday, both indices faced a steep decline of over 1 per cent, driven by concerns over geopolitical tensions and uncertainty regarding future interest rate cuts by the US Federal Reserve. However, Friday saw the Nifty index regain the 24,000 mark, while the Sensex surged by more than 300 points, reflecting positive sentiment in the market. The Nifty 50 opened flat at 23,927.15, showing a gain of 13 points or 0.05 per cent, while the BSE Sensex registered a marginal decline of 10 points or 0.01 per cent, opening at 79,032.99. Experts cited the ongoing geopolitical tensions and the unpredictability of the US Fed's monetary policy as key factors influencing market movements. Additionally, the shifting dynamics in global trade, which may undergo significant changes under a potential second term for former US President Donald Trump, have added to the market uncertainty. "The market faced a 1.5 per cent decline in the previous session, mainly due to concerns over global geopolitical developments and the Federal Reserve's stance on interest rates. The evolving trade dynamics are also contributing to a sense of unease, with the prospect of a trade war that could adversely affect developing economies such as India," said Varun Aggarwal, MD of Profit Idea. "If the Nifty falls below 23,870, there could be further downside, potentially heading towards the 23,500 mark." Indian stock markets bounced back on Friday, reversing a sharp correction from the previous day. On Thursday, both indices faced a steep decline of over 1 per cent, driven by concerns over geopolitical tensions and uncertainty regarding future interest rate cuts by the US Federal Reserve. However, Friday saw the Nifty index regain the 24,000 mark, while the Sensex surged by more than 300 points, reflecting positive sentiment in the market. The Nifty 50 opened flat at 23,927.15, showing a gain of 13 points or 0.05 per cent, while the BSE Sensex registered a marginal decline of 10 points or 0.01 per cent, opening at 79,032.99. Experts cited the ongoing geopolitical tensions and the unpredictability of the US Fed's monetary policy as key factors influencing market movements. Additionally, the shifting dynamics in global trade, which may undergo significant changes under a potential second term for former US President Donald Trump, have added to the market uncertainty. "The market faced a 1.5 per cent decline in the previous session, mainly due to concerns over global geopolitical developments and the Federal Reserve's stance on interest rates. The evolving trade dynamics are also contributing to a sense of unease, with the prospect of a trade war that could adversely affect developing economies such as India," said Varun Aggarwal, MD of Profit Idea. "If the Nifty falls below 23,870, there could be further downside, potentially heading towards the 23,500 mark." Among sectoral indices, Nifty IT and Nifty Realty stood out as exceptions, while the Nifty Media index saw a sharp recovery of 1.58 per cent, suggesting a positive market sentiment in some sectors. In terms of individual stocks, top gainers on the Nifty 50 included HDFCLife, SBILife, Dr Reddy, Adani Enterprises, and Sun Pharma, while Power Grid emerged as the top loser. Adani group companies showed continued recovery, with Adani Green shares surging by more than 7 per cent during the day’s early hours. The broader Asian market showed a mixed performance on Friday. Japan's Nikkei 225 index faced selling pressure, dipping by 0.41 per cent, while markets in South Korea and Indonesia saw a sharp correction of over 1 per cent. On the other hand, Hong Kong's Hang Seng and China's Shanghai Composite Index recorded marginal gains. As per ANI, domestic stock markets had experienced selling pressure the day before, with both indices declining by over 1 per cent due to losses in technology stocks, lack of significant global cues, and weak performances across Asian markets. ANI reports that the Indian stock market’s recovery on Friday provides a ray of optimism, though experts continue to monitor the ongoing risks related to global economic and political developments. (With inputs from ANI)
29 November,2024 10:00 AM IST | MumbaiIndian equity markets extended their bullish run for the third consecutive session on Tuesday, supported by continued buying sentiment. The Nifty 50 index opened on a positive note at 24,343.30 points, gaining 121.40 points or 0.5 per cent. Similarly, the BSE Sensex climbed 305 points, marking an increase of 0.38 per cent to reach 80,415.47 points at the opening bell. Despite the sustained rally, market experts have highlighted the presence of selling pressure. According to ANI, the recent surge in Foreign Institutional Investors’ (FIIs) purchases, amounting to Rs 9,947 crore on Monday, was linked to MSCI rebalancing, which included an increased weightage for HDFC Bank. Conversely, Domestic Institutional Investors (DIIs) sold equities worth Rs 6,907 crore on the same day. Explaining the dynamics, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "The two-day rally in the market is unlikely to sustain beyond a point since earnings concerns are major headwinds. The impact of short covering and the Maharashtra election results will be temporary." He also noted, "Too much should not be read into FIIs turning big buyers yesterday, as this was largely due to MSCI rebalancing. Leading banks will remain resilient due to consistent buying and reasonable valuations. Moving forward, global cues such as developments from President Trump will influence sentiment." MSCI rebalancing, a periodic adjustment process to add or remove stocks from MSCI indices, aims to maintain their reliability as market benchmarks. Sectoral indices also reflected strong performance, with Nifty Financial Services leading the pack, gaining 0.71 per cent. Nifty Bank and Nifty Auto followed with modest gains. Out of the Nifty 50 stocks, 37 opened in the green, six registered declines, while seven remained unchanged. Top gainers included Bharti Airtel, Infosys, ITC, BEL, and Hindustan Unilever. Conversely, ONGC, Adani Ports, NTPC, Ultratech Cement, and L&T were the top laggards. Akshay Chinchalkar, Head of Research at Axis Securities, commented on the technical outlook: "The Nifty rose 1.3 per cent yesterday, marking the second consecutive session with over a 1 per cent gain, a streak last witnessed in December. The gap-up move means 23,956 becomes a critical support level, while 24,340-24,530 is a key resistance zone. Beyond this, the 50-day and 100-day averages around 24,700-24,800 represent the next hurdles." In the broader Asian markets, indices showed mixed trends. Japan's Nikkei 225 fell by 1.3 per cent, Taiwan's Weighted Index declined by 0.79 per cent, and South Korea's KOSPI dropped by 0.55 per cent. However, Hong Kong's Hang Seng Index registered a marginal gain of 0.37 per cent during the day, according to ANI reports. While Indian indices remain buoyant for now, market participants are closely watching for further cues on global economic developments and earnings trends. (With inputs from ANI)
26 November,2024 10:05 AM IST | MumbaiShashi Ruia, the co-founder and chairperson of the Essar Group, passed away on November 25 at the age of 80. A visionary industrialist, Ruia was instrumental in transforming Essar from a modest construction company into a global conglomerate with a diverse portfolio across steel, energy, telecommunications, and infrastructure. Ruia, who had been undergoing treatment in the United States, returned to Mumbai about a month ago. He passed away late Sunday night at 11:55 pm, as confirmed by family sources. His mortal remains will be kept at Ruia House from 1 pm to 3 pm on Tuesday for prayers and tributes. The funeral procession will leave Ruia House at 4 pm, proceeding to the Hindu Crematorium at Worli. Shashi Ruia began his career in 1965 under the mentorship of his father, Nand Kishore Ruia. In 1969, he and his younger brother Ravi established Essar Group in Chennai, starting with a project to construct an outer breakwater at Chennai Port. Over the decades, Essar grew into one of India’s leading conglomerates, diversifying into sectors such as oil refining, steel production, power, shipping, and telecommunications. In the 1990s, Ruia steered Essar’s aggressive expansion into steel and telecom industries, laying the foundation for its global operations. By the 2000s, under his leadership, Essar entered newer domains such as mining, power generation, and shipping. In recent years, the group shifted focus towards sustainability, investing significantly in decarbonisation and green projects. Notably, in October 2023, Bloomberg reported that Essar had announced multi-billion-dollar investments in low-carbon initiatives, including a $4 billion steel plant in Saudi Arabia and a $2.4 billion project to decarbonise its UK refinery. A first-generation entrepreneur, Ruia was actively involved in various national and international business forums. He served as the chairman of the Indo-US Joint Business Council, a former president of the Indian National Shipowners’ Association, and a member of the Prime Minister’s Indo-US CEO Forum. His contributions to the Indian business landscape were widely recognised. The Essar Group, co-founded by the Ruia brothers, generates an annual revenue of $14 billion, as per the company’s website. Its monetisation efforts have raised over $40 billion through partnerships with global giants such as Vodafone and Rosneft. Ruia is survived by his wife, Manju, and his two sons, Prashant and Anshuman, who hold key leadership positions in the group. A statement from Essar acknowledged his unparalleled contribution to the company’s growth and expressed condolences to the family. Shashi Ruia’s passing marks the end of an era for Indian industry. His legacy as a pioneering industrialist and a visionary entrepreneur will continue to inspire future generations.
26 November,2024 09:47 AM IST | New Delhi | Anisha ShrivastavaIndian stock markets surged on Monday following the BJP-led government's resounding victory in the Maharashtra state elections, with experts predicting a short-term rally based on the election outcome. The Nifty 50 index rose by over 1.45 per cent, adding 346.30 points to open at 24,253.55 points. Meanwhile, the BSE Sensex surged by 1,076 points, or 1.36 per cent, opening at 80,193.47 points. Market analysts observed that the positive movement in the markets was a direct response to the Maharashtra election results, which saw the BJP-led coalition secure a decisive win. If historical trends hold, the market is expected to see a short-term rally as the BJP's victory is seen as favourable for business sentiment. Ajay Bagga, a banking and market expert, commented, "The results of the Maharashtra elections, which were declared on November 23, will have an immediate positive impact on stock markets. The BJP-led coalition's landslide victory could lead to a short-term boost for the Indian stock markets, which had been in a downward trend before the elections." He further explained that the election outcome would likely be interpreted positively by investors, particularly in sectors related to capital expenditure (capex) and infrastructure, which are expected to benefit from the BJP’s ongoing focus in Maharashtra. Beneficiary sectors include industrials, infrastructure, manufacturing, real estate, and financials. On the sectoral front, Nifty Realty and Nifty PSU Bank indices led the rally, both surging by more than 2 per cent. Other major sectors, including Nifty Metal, Nifty Media, and Nifty Oil & Gas, also gained over 1.5 per cent. In the Nifty 50 index, 49 stocks saw gains, with only one stock declining in the opening session. Shri Finance emerged as the top gainer in the index. Shares of the Adani Group also saw a notable uptick, with Adani Green climbing by around 4 per cent. Akshay Chinchalkar, Head of Research at Axis Securities, added, "We are likely to break the falling 20-day average at 24,030, which would be the first time this has occurred since the record high of 27th September. Historically, the seasonality trends between now and the end of the year have been positive, with the Nifty rising 80% of the time during this period, with an average return of over 4 per cent." In other Asian markets, Japan and South Korea's indices saw significant gains. The Nikkei 225 surged by more than 1.5 per cent, and South Korea’s Kospi rose by 1.5 per cent. Taiwan's Weighted Index increased by 0.48 per cent, while Hong Kong’s Hang Seng index saw a marginal decline of 0.14 per cent at the time of filing this report. (With inputs from ANI)
25 November,2024 09:49 AM IST | MumbaiIndia is preparing to unveil a new legal framework aimed at safeguarding data privacy while simultaneously fostering the free flow of data among trusted global partners, Union Minister Piyush Goyal announced during the UK India Business Council’s 'UK-India Technology Futures Conference' in New Delhi. Minister Goyal underscored India’s burgeoning role as a hub for sustainable digital infrastructure. "India is the best place in the world to provide sustainable infrastructure to the digital world," Goyal stated. He revealed that the upcoming legal framework will not only secure data privacy but also encourage global partnerships with nations sharing mutual trust. The minister highlighted the critical intersection of digital growth and sustainability, pointing out that data processing systems will play a significant role in future energy consumption. "A major portion of energy will be consumed by systems that churn out data, and that will directly influence sustainability issues," he remarked. India’s efforts to tackle these challenges include the creation of a vast interconnected energy grid, projected to reach 1,000 gigawatts by 2030. This grid will integrate both traditional and renewable energy sources. Goyal emphasised that this clean energy network would provide unparalleled reliability and sustainability for data centres. Focusing on the partnership between India and the UK, the minister outlined potential collaborative opportunities leveraging India's vast pool of STEM graduates and the UK's innovation-driven universities. He proposed five key areas for cooperation: Developing AI-powered learning platforms and integrating virtual reality into education. Advancing telemedicine to reduce healthcare costs in the UK while improving healthcare access in remote Indian regions. Creating climate modelling tools to predict and manage natural disasters. Enhancing precision farming and residue-free agriculture for higher productivity. Innovating in sectors like organic chemicals, engineering goods, and food products to capitalise on technological advancements. Additionally, Goyal highlighted the sustainability advantage of India’s renewable energy efforts and its potential to power the global digital ecosystem reliably. He concluded by emphasising India’s position as an emerging market with growing demand, which makes it an ideal destination for partnerships in innovative technologies. This demand, he stated, paves the way for robust collaboration in cutting-edge fields, bolstering economic and technological ties between India and the UK. As per ANI reports, Goyal’s vision reinforces India's commitment to both data sovereignty and global partnerships, providing a forward-looking roadmap for sustainable digital growth. (With inputs from ANI)
22 November,2024 09:31 AM IST | New DelhiThe Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA) signed a significant Memorandum of Understanding (MoU) on Thursday in Mumbai, aiming to establish a framework for the use of their respective local currencies, the Indian Rupee (INR) and the Maldivian Rufiyaa (MVR), in cross-border transactions. The MoU, formalised in the presence of RBI Governor Shaktikanta Das and MMA Governor Ali Hashim, marks a milestone in strengthening economic cooperation between the two nations. According to an official statement issued by the RBI, the agreement seeks to promote the use of INR and MVR for a variety of economic and financial transactions between India and the Maldives. The framework covers current account transactions, authorised capital account transactions, and other mutually agreed-upon financial activities. As per ANI, this initiative is expected to significantly reduce transaction costs and settlement times, thereby enhancing the efficiency of cross-border trade and financial dealings between the two countries. The RBI explained that this arrangement will allow exporters and importers from both nations to invoice and settle transactions in their domestic currencies. “This will facilitate the development of trading in the INR-MVR currency pair in the foreign exchange market,” the central bank noted. A key aspect of the agreement is its potential to reduce reliance on third-party currencies, such as the US Dollar, for bilateral trade. By enabling direct settlement in INR and MVR, the collaboration is anticipated to streamline trade and optimise financial operations, making the process more cost-effective and seamless. RBI highlighted, “The use of local currencies in bilateral transactions will contribute to promoting trade between India and the Maldives. It will also deepen financial integration and strengthen economic relations between the two nations.” The initiative underscores the commitment of India and the Maldives to fostering a robust economic partnership. It also aligns with broader regional efforts to promote sustainable growth and enhance economic stability. This framework represents a pivotal step towards building stronger bilateral ties between the RBI and MMA while encouraging further collaboration in the realm of trade and financial exchange, ANI reports. The move not only supports trade facilitation but also reinforces India’s strategic engagement with the Maldives, showcasing a mutual drive towards shared prosperity. (With inputs from ANI)
22 November,2024 08:40 AM IST | MumbaiIndian stock markets saw a significant recovery on Tuesday, with both the Sensex and Nifty surging by over 1.25 per cent during the early trading hours. The Nifty 50 index surged by more than 300 points, reaching 23,770, while the Sensex jumped over 1,000 points, climbing to 78,410, at the time of reporting. Market experts have attributed this rally to positive global cues and an oversold market condition. However, they have also cautioned that several underlying challenges for Indian stocks remain, which could affect the sustainability of the rally. These challenges include persistent foreign portfolio investor (FPI) selling, albeit at a reduced pace, downgrades in corporate earnings, slower economic growth, and high real interest rates, all of which are dampening growth prospects. Ajay Bagga, a banking and market expert, noted, "Positive global cues and a heavily oversold market are seeing a 1 per cent to 1.5 per cent bounce in the Indian markets today. The causes of the downtrend in Indian stocks are still very much present... FPI selling (though at a reducing intensity), downgrades to corporate earnings, slower economic growth and high real interest rates are proving a drag on growth impulses. Today's bounce in the Indian markets should be seen as a recovery from oversold levels." Experts have also pointed out that technical indicators suggest further potential gains. The Nifty's rally could extend if it manages to close above the lower Bollinger Band, which is currently situated near 23,490. Akshay Chinchalkar, Head of Research at Axis Securities, explained, "The Nifty's 300-point rally has the potential to extend, particularly given the strength of the recent downtrend. If the Nifty closes above the lower Bollinger Band today – currently near 23,490 – it would trigger a 'Bollinger outside inside' signal. This pattern typically occurs when the price closes below the band on the previous day, followed by a close above it. If this happens, the next logical upside target would be the 20-day moving average, which currently sits near 24,125. Support in the 23,200-23,300 area remains critical on the downside." Despite the recovery, experts have stressed that this should not be mistaken as the start of a bullish trend. FPI selling is likely to continue, and while domestic investors with available funds may find opportunities in stocks that have corrected sharply, the overall sentiment remains cautious. Shriram Subramanian, Founder and Managing Director of InGovern Research Services, added, "The markets are showing initial signs of recovery. FIIs will likely continue to sell, but domestic investors sitting on cash may find value in stocks that have been significantly corrected and are available at reasonable valuations. However, this bounce does not signal a bullish market." Market sentiment could further improve depending on the outcome of the Maharashtra state election results. If the Nifty manages to close above the 24,000 mark, it could signal a more sustained upward movement. Vijay Chopra, a market expert, stated, "Markets were oversold, and this bounce was long overdue. The markets bounced back from the 200-day moving average. If the Maharashtra election results are positive, the markets could resume their upward trajectory. It is essential that the market closes above 24,000 for a sustained rise. This could also mark the beginning of the Santa rally, which typically lasts until December." In summary, while the markets have shown signs of recovery, experts remain cautious about the sustainability of this bounce amidst ongoing macroeconomic challenges. (With inputs from ANI)
19 November,2024 01:03 PM IST | MumbaiThe government is poised to surpass the direct tax collection target of Rs 22.07 lakh crore set for the current fiscal year, according to Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal. Speaking on Monday, Agarwal expressed confidence in exceeding the ambitious target based on robust collections from both corporate and non-corporate taxes. As per PTI, the CBDT chairman also reminded taxpayers who have not disclosed their foreign income or assets in their Income Tax Returns (ITRs) that they have until 31 December to file revised returns for the 2023-24 fiscal year. To encourage compliance, the tax department is reaching out via SMS and email to individuals identified as holding high-value assets but failing to report them. Inaugurating the Taxpayers Lounge at the India International Trade Fair (IITF), Agarwal highlighted the department’s efforts to simplify tax laws. “We have received over 6,000 suggestions for reviewing the income tax law. Our goal is to make the language clear and user-friendly,” he stated. According to PTI, the CBDT’s latest figures reveal that net direct tax collections between April 1 and November 10 grew by 15.41%, reaching Rs 12.11 lakh crore. This amount comprises Rs 5.10 lakh crore from corporate taxes and Rs 6.62 lakh crore from non-corporate taxes, including taxes paid by individuals, Hindu Undivided Families (HUFs), and firms. The collection from Securities Transaction Tax (STT) during this period stood at ₹35,923 crore. The government’s fiscal target includes Rs 10.20 lakh crore from corporate tax collections and Rs 11.87 lakh crore from personal income tax, corporate tax, and other taxes combined. Agarwal added, “Collections have shown consistent growth, reflecting the strength of our tax system and the compliance of taxpayers.” According to PTI, the Taxpayers Lounge at IITF is designed to promote awareness about the tax system and encourage voluntary compliance. It also showcases the Income Tax Department’s initiatives in leveraging technology to make tax filing more accessible and transparent. The government remains optimistic about achieving and surpassing its fiscal goals, demonstrating confidence in both the country’s economic activity and the efficiency of the tax collection system. (With inputs from PTI)
18 November,2024 02:43 PM IST | New DelhiThe Indian rupee is likely to remain under pressure in the short term, trading within a range of 84-84.5 per US dollar, as per a report by Bank of Baroda. The report attributes this temporary weakness in the rupee to two key factors: foreign portfolio investor (FPI) outflows and the strengthening of the US dollar. It stated, “The Indian rupee is likely to remain under pressure in the near term. This is due to two inter-related factors—FPI outflows and dollar strength.” Despite these immediate challenges, the report expressed confidence in the rupee’s prospects over the medium to long term, emphasising that India’s strong macroeconomic fundamentals position the country well to navigate the current scenario. According to ANI, the report highlighted that India is better equipped this time to address capital outflows compared to previous instances. It noted that the country’s external and fiscal deficits are under control, while economic growth remains robust. Additionally, the Reserve Bank of India (RBI) has maintained a healthy foreign exchange reserve exceeding USD 675 billion, which is expected to be deployed strategically to stabilise the domestic currency, according to the report. As per ANI, the recent outflows of FPIs are considered a temporary phenomenon. The report projected a positive turnaround in FY25, forecasting net FPI inflows of USD 20-25 billion during the financial year. On the trade front, the report noted that India’s trade deficit rose in October 2024. However, strong services exports and remittances are likely to help keep the current account deficit (CAD) in check, ANI reported. The report also underlined India’s resilience, citing solid macroeconomic indicators that provide a foundation for stability. While short-term pressures may persist, the medium to long-term outlook for the rupee remains optimistic. In summary, Bank of Baroda’s report, as per ANI, emphasised that India is in a much better position to manage the ongoing currency challenges, supported by robust economic growth, controlled deficits, and strong foreign exchange reserves. (With inputs from PTI)
18 November,2024 08:44 AM IST | New DelhiIndia’s passenger vehicle (PV) market is witnessing a significant shift, as long-standing players like Maruti Suzuki and Hyundai experience a decline in their market share, while new entrants gain traction. A recent report by Jefferies reveals that the combined market share of Maruti Suzuki and Hyundai has fallen to a 12-year low in the first half of fiscal year 2025 (1HFY25). This marks a notable change in the competitive landscape, as consumer preferences evolve and new competitors make headway. The report states, "Market shares of the top 2 OEMs (Maruti and Hyundai) slipping to 12-year lows in 1HFY25 and Mahindra and Toyota climbing to all-time highs." Both Maruti and Hyundai have been dominant players in India’s PV sector for years, but they are now facing increasing competition from other manufacturers, particularly Mahindra & Mahindra (M&M) and Toyota. According to the report, Mahindra's market share has reached a historic high of 12.5 per cent in 1HFY25, fuelled by the growing demand for SUVs, a segment in which Mahindra has consistently introduced new models. Tata Motors, too, has made significant progress, with its market share peaking at 14 per cent in FY23, though it has slightly decreased to 13.3 per cent in the first half of FY25. Despite this, the second quarter proved challenging for the PV industry in India, with wholesale volumes, including exports, registering a 1 per cent year-on-year decline. This suggests that while consumer demand for newer, feature-rich vehicles such as SUVs continues to rise, there are still headwinds for the overall sector. As per the latest sales data from the Society of Indian Automobile Manufacturers (SIAM), passenger car sales in October saw a decline of 17 per cent. However, when considering all passenger vehicles, including buses and autos, total sales in October reached a record high of 393,238 units, marking a 0.9 per cent increase from the previous year. The market dynamics indicate that while Maruti Suzuki and Hyundai’s dominance is waning, the growing popularity of SUVs and the success of brands like Mahindra and Tata Motors suggest a rapidly changing landscape in India's passenger vehicle market, as per ANI. (With inputs from ANI)
15 November,2024 01:28 PM IST | New DelhiADVERTISEMENT
