Auto, Ancillary Growth to Slow in FY25: Nomura
ECONOMY & POLICY

Auto, Ancillary Growth to Slow in FY25: Nomura

Automobile and auto ancillary sectors are expected to see slower revenue growth in FY25, according to a research note from Nomura. Passenger vehicle (PV) sales, the largest contributor to the sector, are projected to grow by just 1.5% to 4.28 million units, compared to an 8.4% growth last year when 4.21 million units were sold. 

Commercial vehicle sales are forecasted to remain flat at 968 units, following a 0.6% rise the previous year. Two-wheeler sales are expected to grow by 10% to 20,301 units, while three-wheeler sales are also projected to rise by 10%, a sharp slowdown from the 41.5% growth seen last year. Except for tractors, all segments are likely to experience modest growth over the next two fiscal years. 

Nomura’s report highlights the continued trend of premiumisation, with SUV sales remaining stable, while mass affordable segments struggle to gain momentum. In the electric vehicle (EV) space, Indian two-wheeler companies sold an average of 94,000 units per month recently, with Ola Electric maintaining about a third of the market share. 
The slowdown in the auto sector is also mirrored in the auto ancillary industry. Credit rating agency ICRA projects revenue growth for large auto ancillary firms to moderate to 7-9%, reaching around Rs 3.4 billion in FY25, down from 14% growth in the previous year. 

(The Hindu)     

Automobile and auto ancillary sectors are expected to see slower revenue growth in FY25, according to a research note from Nomura. Passenger vehicle (PV) sales, the largest contributor to the sector, are projected to grow by just 1.5% to 4.28 million units, compared to an 8.4% growth last year when 4.21 million units were sold. Commercial vehicle sales are forecasted to remain flat at 968 units, following a 0.6% rise the previous year. Two-wheeler sales are expected to grow by 10% to 20,301 units, while three-wheeler sales are also projected to rise by 10%, a sharp slowdown from the 41.5% growth seen last year. Except for tractors, all segments are likely to experience modest growth over the next two fiscal years. Nomura’s report highlights the continued trend of premiumisation, with SUV sales remaining stable, while mass affordable segments struggle to gain momentum. In the electric vehicle (EV) space, Indian two-wheeler companies sold an average of 94,000 units per month recently, with Ola Electric maintaining about a third of the market share. The slowdown in the auto sector is also mirrored in the auto ancillary industry. Credit rating agency ICRA projects revenue growth for large auto ancillary firms to moderate to 7-9%, reaching around Rs 3.4 billion in FY25, down from 14% growth in the previous year. (The Hindu)     

Next Story
Real Estate

Dharavi Rising

Dharavi, Asia’s largest informal settlement, stands on the cusp of a historic transformation. With an ambitious urban renewal project finally taking shape, millions of residents are looking ahead with hope. But delivering a project of this scale brings immense challenges – from land acquisition to rehabilitate ineligible residents outside Dharavi and rehabilitation to infrastructure development. It also requires balancing commercial goals with deep-rooted social impact. At the helm is SVR Srinivas, IAS, CEO & Officer on Special Duty, Dharavi Redevelopment Project (DRP), Government..

Next Story
Infrastructure Urban

Infrastructure Opportunity Outlook by IMPACCT.Info

India’s infrastructure pipeline is witnessing dynamic activity across stages — from immediate bidding to future planning. IMPACCT segments these into three categories: Immediate, 3–6 Month, and Future Opportunities, enabling businesses to identify, prepare, and participate in high-value tenders and projects across sectors.To read the full article Click Here..

Next Story
Infrastructure Transport

No Freeway to Success

In FY21, the Indian highway network expanded at a daily rate of 37 km, setting a new record. This high more or less continued in the ensuing years, backed by the Ministry of Roads, Transport and Highways (MoRTH) awarding about 12,000 km of national highway projects annually from FY21 through to FY23. But project awarding slowed down to around 8,600 km in FY24 and is expected to have stayed at that level in FY25, observes Aniket Dani, Director – Research, Crisil Intelligence. Slower awards and slower execution go hand in hand. “The execution pace of national highways is estimated ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?