Passenger Vehicle Sales May Rise Up to 4 Per Cent: ICRA

01 Sep 2025 CW Team

Despite these headwinds, demand could be supported by the steady rollout of new models from original equipment manufacturers (OEMs), as well as the potential implementation of proposed Goods and Services Tax (GST) reforms. The central government has suggested reducing the current four GST slabs—5, 12, 18, and 28 per cent—to just two: 5 and 18 per cent. If enacted, this simplification could improve price competitiveness in select vehicle segments.

OEMs are set to report August sales on 1 September. For July, wholesale dispatches grew 8.9 per cent sequentially as manufacturers built up inventory in anticipation of the festive season. However, year-on-year growth remained flat at Rs 3.4 lakh units. Retail sales also improved sequentially by 10.4 per cent, though they dipped slightly by 0.8 per cent compared to July last year.

Utility vehicles, particularly SUVs, continued to lead the market, contributing 65 to 66 per cent of overall PV sales. These are expected to remain the primary growth drivers in the near term.

The Federation of Automobile Dealers Associations (FADA) reported that average inventory levels rose to 55 days by the end of July, further underscoring the supply-side buildup ahead of anticipated festive demand.

Meanwhile, exports showed a positive trend, registering a 9 per cent year-on-year increase in July. This growth was primarily led by Maruti Suzuki India, followed by Hyundai Motor India, though the performance came off a low base.

Overall, while near-term growth in the domestic PV industry may remain subdued due to elevated stocks and last year’s strong performance, factors such as new model introductions and potential tax reforms may provide a much-needed boost in the second half of the year.

The domestic passenger vehicle (PV) industry is expected to post a modest wholesale volume growth of 1 to 4 per cent in the current financial year, according to a report released by credit rating agency ICRA. This projection follows a contraction of 1.1 per cent in the first four months (April–July) of the fiscal, with elevated inventory levels and a high base weighing on overall momentum.Despite these headwinds, demand could be supported by the steady rollout of new models from original equipment manufacturers (OEMs), as well as the potential implementation of proposed Goods and Services Tax (GST) reforms. The central government has suggested reducing the current four GST slabs—5, 12, 18, and 28 per cent—to just two: 5 and 18 per cent. If enacted, this simplification could improve price competitiveness in select vehicle segments.OEMs are set to report August sales on 1 September. For July, wholesale dispatches grew 8.9 per cent sequentially as manufacturers built up inventory in anticipation of the festive season. However, year-on-year growth remained flat at Rs 3.4 lakh units. Retail sales also improved sequentially by 10.4 per cent, though they dipped slightly by 0.8 per cent compared to July last year.Utility vehicles, particularly SUVs, continued to lead the market, contributing 65 to 66 per cent of overall PV sales. These are expected to remain the primary growth drivers in the near term.The Federation of Automobile Dealers Associations (FADA) reported that average inventory levels rose to 55 days by the end of July, further underscoring the supply-side buildup ahead of anticipated festive demand.Meanwhile, exports showed a positive trend, registering a 9 per cent year-on-year increase in July. This growth was primarily led by Maruti Suzuki India, followed by Hyundai Motor India, though the performance came off a low base.Overall, while near-term growth in the domestic PV industry may remain subdued due to elevated stocks and last year’s strong performance, factors such as new model introductions and potential tax reforms may provide a much-needed boost in the second half of the year.

Infrastructure Urban

27 Sep 2025

Mumbai is on the verge of complete transformation

Pratap Padode: Maharashtra’s infrastructure plan seems to be rolling out project after project: the Navi Mumbai International Airport, Coastal Road, Shaktipeeth Expressway, Worli-Sewri Connector and Vadhavan Port. What is driving this momentum?Ashwini Bhide: Maharashtra has always been at the forefront of infrastructure development. Our vision is to be a $ 1 trillion economy by 2030 and $ 5 trillion by 2047. To achieve this, massive investments in infrastructure are essential. Being over 50 per cent urbanised, our cities must be future-ready. We are also addressing regional disparities, focu..

Building Material

27 Sep 2025

Forging a Balance

The ongoing boom in real estate and infrastructure was bound to spill over to the steel sector. Rating agency ICRA estimated demand for domestic steel to have grown at 10 per cent in FY25, but to moderate to 7-8 per cent in FY26 on the back of a slowdown in public capital expenditure.Homemade steelAbout two-thirds of India’s domestically produced steel is consumed by infrastructure and construction, and nearly a third for government projects, observes Shalabh Chaturvedi, Managing Director, CASE Construction Equipment, India & SAARC region. Real estate predominantly uses only domestic steel..

Infrastructure Urban

27 Sep 2025

Equipment India Awards 2025

On September 4, 2025, at the Jio Convention Centre, Mumbai, Anand Sundaresan, Director on the Board and Advisor to the Chairman at Ammann India, received the Equipment India Lifetime Achievement Award 2025, as the hall rose and gave him a standing ovation. For an industry that has seen him steer organisations, inspire teams and raise standards, this moment was more than recognition – it was gratitude.Sundaresan’s acceptance struck a chord with warmth and humility: “I accept it with pride and dedicate it to my family, colleagues and the entire construction industry. This aw..