Capri Global Capital Ltd. (CGCL) Announced Unaudited Financial Results For The Quarter Ended June 30, 2024

Consolidated Key Performance Highlights for 1Q FY25

The Board of Directors of Capri Global Capital Ltd. (CGCL), a non-deposit taking and systemically important NBFC (NBFC-ND-SI) announced the unaudited financial results for the quarter ended June 30, 2024. Key takeaways are as follows:

Business and Earnings Performance

AUM Crosses Rs174,500mn Milestone

CGCL continued the strong growth momentum in Q1FY25. The consolidated AUM including co-lending AUM increased 56% YoY and 12% QoQ to touch Rs 174,579mn. Retail growth was driven by Housing Loans up by 40% YoY and Gold Loans up by 238% YoY. Co-lending AUM stood at Rs 28,601mn comprising 16.4% of consolidated AUM compared to 11.7% in Q4FY24 and 8.9% in Q3FY24. CGCL has continued to build upon its co-lending partnerships in MSME, Housing and Gold Loans with further improving the acceptance ratio. The overall AUM growth was granular with live customer relationships increasing by 197K QoQ to touch 588K.

Strong Profitability with Improvement in Cost Efficiency

The PAT for the Q1FY25 stood at Rs757mn a strong growth of 19% YoY. Overall, yields and spreads expanded in Q1FY25 and Gold Loan business broke even and started giving operating profits. As a result, CGCL’s pre-provisioning operating profit increased to Rs1,452mn, up by 32.5% QoQ. Strategically, CGCL is now shifting focus on improving branch and employee productivity and profitability after undergoing significant expansion. CGCL made significant investments in technology, streamlining headcount and branch network which has started reflecting improvement in productivity which led to a decline of 5.9% QoQ in cost to income ratio. CGCL expects to benefit from tech-led efficiency and further softening of its cost-ratios. Additionally, we are implementing advanced analytics to streamline operations and enhance decision-making processes, which we believe will drive further gains in efficiency

Non-Interest Income Continues to Grow

Our non-interest income increased by 35% YoY in Q1FY25 supported by growth in co-lending fee income. Share of non-interest income in total income stood at 26.5% compared to 25.3% in Q1FY24.  

CGCL’s car loan business saw distribution origination of Rs 24,277mn in Q1FY25. We have made 11 tie ups for insurance distribution under the composite license. This shall be an important source of fee income in the future and the Company is looking to generate at least Rs200mn in net fee income from insurance distribution in FY25E.

Stable Asset Quality: Focused Improvement in Provision Coverage Ratio

CGCL is improving the provision cover on its Stage-3 loans. The PCR on Stage-3 loans enhanced to 42.8% in Q1FY25 from 25.8% in Q1FY24. Gross Stage 3 ratio stood broadly flat at 1.97% in Q1FY25 from 1.92% as of Q4FY24.

Strong Capital Adequacy

CGCL maintains a robust financial position with a strong standalone Capital Adequacy of 25.4% in Q1FY25, supported by a networth of Rs 36.3bn. Similarly, CGHFL boasts a CAR of 32.1% and a networth of Rs 8.0bn ending Q1FY25.

Founder & Managing Director Mr. Rajesh Sharma Commented:

“We continue to see strong growth momentum and believe that our significant investments in technology and focus on increasing branch and employee productivity will start yielding results in terms of improving our cost efficiency further. With steady increase in fee income and gold loan business now becoming profitable, we see further upside to our profitability. We will continue to maintain a strong focus on asset quality and strengthen our coverage ratio whilst maintaining healthy capital adequacy. As we move ahead with same vigour, we remain committed to deliver 15%+ RoE over medium term.”

Refex Industries Limited Registers 74.78% Growth On QoQ Basis, PBT At 48.05 Crores

Refex Industries Limited (RIL), a leading conglomerate in India, reported its financial results for the first quarter ending June 30th, 2024.  The company has registered a 74.78% in revenue growth when compared to Q4 FY24.

The highlights of the Q1 FY25 results include quarter-on-quarter increase in revenue by Rs 252.27 crores from Q4 FY24 to Q1 FY25, year-on-year increase in EBITDA by Rs 8.74 crores from Q4 FY24 to Q1 FY25 and year-on-year increase in PBT by Rs 5.53 crores from Q4 FY24 to Q1 FY25.

The highlights of the Q1 FY25 results include year-on-year increase in revenue by Rs 208.28 crores from Q1 FY24 to Q1 FY25, year-on-year increase in EBITDA by Rs 15.67 crores from Q1 FY24 to Q1 FY25 and year-on-year increase in PBT by Rs 18.12 crores from Q1 FY24 to Q1 FY25.

Mr. Anil Jain, Managing Director, Refex Industries Limited, said, “The performance in April to June quarter for FY 2025 has improved from that of the same quarter last year (Q1 FY24), and also from that of the performance in the previous quarter (Q4 FY24). We are confident of further building on this performance in the coming quarters and are confident of delivering a strong year.”    

Q-o-Q increase in revenue by Rs 252.27 crores (74.78%) from Q4 FY24 to Q1 FY25.

Q-o-Q increase in EBITDA by Rs 8.74 crores (20.10%) from Q4 FY24 to Q1 FY 25.

Q-o-Q increase in PBT by Rs 5.53 crores (13.02%) from Q4 FY24 to Q1 FY25.

Y-o-Y increase in revenue by Rs 208.28 crores (54.62%) from Q1 FY24 to Q1 FY25.

Y-o-Y increase in EBITDA by Rs 15.67 crores (42.85%) from Q1 FY24 to Q1 FY 25.

Y-o-Y increase in PBT by Rs 18.12 crores (60.56%) from Q1 FY24 to Q1 FY25.

Winning Team Sputnik Brain Of Samsung ‘Solve For Tomorrow’ 2022 Represents India At The Digital Olympic In Paris 2024

* New project helps young people around the world get involved in the Olympic Movement, based on programmes aimed at building a better future through technology

* Shankar Srinivasan, one of the winners of the inaugural season of Solve for Tomorrow, represented India at the global platform in Paris

* 10 Samsung Solve for Tomorrow winners were selected as ambassadors for this project at the official launch event held in Paris

Samsung Electronics, a Worldwide Olympic and Paralympic Smartphone Partner, hosted an event with the International Olympic Committee (IOC) on July 31 in Paris to launch and promote a new digital community for people including the Olympic and Paralympic Games fans called “Together for Tomorrow, Enabling People.”

The event was held at SPOT24, a multi-use exhibition space in Paris dedicated to Paris 2024, and was attended by IOC President Thomas Bach, MD of the IOC’s Television & Marketing Services Anne-Sophie Voumard, Paralympic Committee (IPC) President Andrew Parsons, President and Head of Global Marketing Office at Samsung Electronics YH Lee, President of Samsung Electronics Europe Office Il-kyung Sung and Luc Abalo, a former gold-medal-winning French handball player and accomplished visual artist and participant in the Olympian Artists programme led by the Olympic Museum for Paris 2024.

A former Team Korea volleyball player, Yeon Koung Kim, Team GB Skateboarder Andy Macdonald, Australian Para-athlete Madison de Rozario and UK contents creator and The Rapping Science Teacher, Matt Green are going to take part in this project as global ambassadors and will actively share content for Together for Tomorrow, Enabling People via social media.

The “Together for Tomorrow, Enabling People” project was developed by Samsung and the IOC to help Olympic and Paralympic fans around the world experience and engage with the Olympic Movement. The programme is especially focused on younger generations, with the new community designed around the goal of helping youth participants “solve, move and create in the spirit of the Olympic values.”

“Together for Tomorrow, Enabling People” introduces three new community-oriented initiatives. Solve Challenge integrates sport and Olympism with Samsung’s Solve for Tomorrow programme, a youth-focused social contribution programme that empowers young people to design innovative solutions using sport and tech to address key social challenges aligned with the priorities of the IOC’s Olympism365. Move Challenge encourages fans of the Games around the globe to get up and walk more using Samsung’s smart mobile phone. Create Challenge lets participants get creative in an innovative digital artists’ community through Samsung’s smart device and S pen.

At the launch event, 10 teams that excelled in Samsung’s Solve for Tomorrow programme were announced as “Together for Tomorrow, Enabling People” ambassadors. Throughout the Olympic and Paralympic Games Paris 2024, the ambassadors will showcase the solutions they’ve created to address social challenges and work to engage Olympic fans around the world. They will also collaborate with the IOC Young Leader — as well as diverse initiatives fostered by the IOC — to address solutions including the promotion of sustainable development.

During the “Together for Tomorrow, Enabling People” event, the ambassadors shared their Solve for Tomorrow projects designed to address real-world problems. A variety of innovative solutions were presented, ranging from help for people to overcome visual disabilities to new ways to promote worker safety.

“Samsung India is proud of the achievements of Shankar of Team Sputnik Brain, the winners of Solve for Tomorrow, 2022, and wishes him growth and success. We see tremendous potential in his solution to alleviate stress and improve healthcare substantially. We are also proud of the ‘Together for Tomorrow, Enabling People’ programme that provided the youth with an opportunity to participate in and experience the Olympics values.” said SP Chun, Corporate Vice President, Samsung Southwest Asia.

“Samsung Solve for Tomorrow provides an incredible opportunity for youth to effect positive change though innovative solutions,” said Shankar Srinivasan, from Team Sputnik Brain that represented India as a global ambassador for the ‘Together for Tomorrow, Enabling People’ campaign. Shankar, who developed a non-invasive wearable device that aims to reduce stress, addresses the global need for chemical-free stress relief solutions, wants to improve mental healthcare in the future. “I am overwhelmed and feel honoured to represent my country India at such a prestigious global platform where I presented my innovation and vision to help build a brighter future for our planet”, he added.

“I am impressed by the opportunities that Samsung Solve for Tomorrow has given to hundreds of thousands of young people to develop as future leaders,” said IOC President Thomas Bach. “They will be our innovators of tomorrow, and I look forward to seeing them tackle various challenges facing our world. We’re pleased to join with our Worldwide Partner Samsung to continue to work together to identify and support talented young people at the intersection of sport and technology through the “Together for Tomorrow, Enabling People” initiative.”

For more information about “Together for Tomorrow, Enabling People”, visit https://olympics.com/togetherfortomorrow

SNI: Winning Team Sputnik Brain of Samsung ‘Solve for Tomorrow’ 2022 Represents India at the ‘Together for Tomorrow, Enabling People’ Digital Olympic Community for Paris 2024

About Samsung Electronics Co., Ltd.

Samsung inspires the world and shapes the future with transformative ideas and technologies. The company is redefining the worlds of TVs, smartphones, wearable devices, tablets, home appliances, network systems, and memory, system LSI, foundry and LED solutions, and delivering a seamless connected experience through its SmartThings ecosystem and open collaboration with partners. For latest news on Samsung India, please visit

Samsung India Newsroom at http://news.samsung.com/in. For Hindi, log on to Samsung Newsroom Bharat at https://news.samsung.com/bharat. You can also follow us on Twitter @SamsungNewsIN

Omega Seiki Mobility Stream City Qik - World’s First 15-Minute Full Charge Electric Auto Launched In Bengaluru

*  The Omega Seiki Mobility Stream City Qik Electric Auto Powered By Exponent Will Be Available In OSM Dealerships From August 5

*   OSM Stream City Qik launched in April 2024 has the ability to charge from 0-100% in 15 minutes on Exponent’s rapid charging network

*   The vehicle offers an industry-leading battery warranty of 5 years and 2 lakh kms and features Exponent’s 8.8 kWh battery, delivering an impressive ARAI certified range of 126 km

Omega Seiki Mobility, a pioneering force in the electric mobility sector in partnership with Exponent Energy, today announced the launch of Omega Seiki Mobility Stream City Qik electric 3-wheeler passenger vehicles (e-autos) in Bengaluru. The vehicles were delivered to auto drivers at a specially organised event in Bengaluru where both the companies flagged off the first batch of vehicles.

The Omega Seiki Mobility Stream City Qik is the world’s fastest charging passenger electric auto launched in April 2024, boasts a 15-minute full charge (from 0-100%) and is priced at Rs. 3,24,999/- (Ex-Showroom).  The vehicle comes with an industry-leading battery warranty of 2,00,000 km and 5 years paving the way for better financing options and ease in ownership. The vehicle showcases a cutting-edge 8.8 kWh proprietary battery pack which facilitates an impressive ARAI certified range of 126 kilometres, eliminating concerns about range anxiety.

Uday Narang, Founder and Chairman of Omega Seiki Mobility, stated, "We are excited to launch OSM Stream City Qik passenger electric three-wheeler in Bengaluru, a city known for its vibrant energy and growing commitment to sustainability. This launch marks a significant step forward in our mission to revolutionize urban transport with eco-friendly solutions. Our vehicle is designed to meet the city’s diverse transportation landscape while significantly reducing emissions and operating costs, reinforcing the city’s position as a leader in green innovation. The vehicle’s launch signals a revolutionary change for drivers, increasing their earning potential by at least 30%. Essentially, this will transform drivers' lives and serve as a catalyst for economic empowerment.”

OSM Stream City Qik powered by Exponent marks a major change for the 3-wheeler passenger vehicle drivers with its 15-minute rapid charging capabilities. Drivers can reduce their charging time between trips, have the freedom to travel anywhere in the city with the exponent charging network, cover more kilometers, earn more, and contribute to a cleaner environment. The vehicle is currently available for sale at Omega Seiki Mobility’s sophisticated dealership facilities in Banashankari and Jayanagar.

Commenting on the occasion, Arun Vinayak, CEO and Co-founder, Exponent Energy, said, “As we celebrate the launch of OSM Stream City Qik in Bengaluru and handover the first batch to customers, the excitement within our team is immense. This vehicle, powered by exponent’s battery technology and our charging network, delivers unlimited freedom and empowers auto drivers to drive whenever, and wherever they want. It unlocks unlimited earnings and puts power rightfully in the drivers hands to break free from CNG queues and CNG prices. Compared to CNG, drivers can earn an additional INR 60,000 annually with the OSM Stream City Qik, all while making our cities greener and cleaner. This aligns with our vision of making all of India go electric by delivering freedom & financial empowerment.

Exponent's 15-minute full charge technology combined with 2 lakh km battery warranty, and widespread charging network will help drive adoption of the OSM Stream City Qik. Both OSM and Exponent, being pioneering players in the EV industry, are dedicated towards fostering progress in the segment and shaping the evolution of mobility through collaboration and innovation.

About Omega Seiki Mobility:

Omega Seiki, a preeminent leader in the electric vehicle industry, is steadfastly committed to delivering innovative and sustainable mobility solutions, with a distinctive focus on electric two, three, four-wheelers and other cutting-edge electric vehicles. The company plays an instrumental role in driving the transition towards cleaner and greener transportation.

To know more, visit the official Omega Seiki Mobility website: www.omegaseikimobility.com

Made-in-India Yamaha Ray ZR 125 Witness Robust Sales Performance In Europe

* Around 13,400 units exported collectively in several European markets between Jan to July, 2024

India Yamaha Motor (IYM) Pvt. Ltd., announced a significant achievement in their manufacturing history, celebrating the phenomenal success of the Made-in-India, Yamaha Ray ZR 125 Fi Hybrid, in the European Market. This scooter, renowned for its superior quality and cutting-edge features, has captivated consumers across several European markets. The model has witnessed outstanding sales performance in the market with around 13,400 units shipped between January to July period in 27 European countries, highlighting the scooter’s exceptional appeal and wider acceptance in these matured markets that are known for their stringent quality standards.

Making a mark in the European markets, also underlines the global quality standards that IYM is adhering to across its portfolio. The commitment and ability to deliver on all fronts, such as performance, safety, style and practicality, makes the Ray ZR 125 Fi Hybrid a preferred choice in matured markets, such as Europe, where quality truly matters. The consumers have recognized the efforts in delivering a well rounded product and the positive word of mouth has powered further acceptance in European markets including major countries like UK, Spain, France, Italy, Germany, Turkey, Switzerland, Greece and Portugal. IYM began exporting the Ray ZR models to 27 countries in Europe from January this year.

Speaking on the occasion, Mr. Eishin Chihana, Chairman, Yamaha Motor India Group of Companies, said, “It is indeed a moment of pride that the Made-in-India, Yamaha’s Ray ZR 125 Fi Hybrid is witnessing a phenomenal response in Europe. This feat speaks volumes of the superior quality this scooter embodies which is in line with the global trends. The remarkable sales growth of the model in this market, highlights our capability to meet and exceed high expectations, not only in India, but also in other mature markets, such as Europe. In addition, this milestone gives our effort to establish India as a manufacturing hub for Yamaha globally, a much needed boost. We are confident of carrying forward the same momentum and replicate this success in other matured markets.”

The Ray ZR 125 Fi Hybrid with its dynamic styling and powerful engine, has created a niche for itself among consumers since its inception. It offers a perfect blend of performance and efficiency, making it ideal for urban commuting. Its imposing stance, characterized by its aggressive design, bold colours, and superior performance, sets it apart from the rest and makes it stand out. This scooter is equipped with modern and advanced features, such as a digital instrumental cluster, front disk brakes with UBS, spacious under-seat storage compartment, making it for a comfortable and safe ride. The Yamaha Ray ZR 125 with its light weight, offers exceptional agility, better handling, pick-up, and fuel economy. In addition, it is compatible with E20 fuel, which reduces emissions and helps in cutting down pollution.

About Yamaha Motor India group of companies:

Yamaha Motor made its initial foray into India in 1985 as a joint venture. In August 2001, it became a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008, Mitsui & Co., Ltd. entered into an agreement with YMC to become a joint investor in India Yamaha Motor Private Limited (IYM). IYM's manufacturing facilities comprise State-of-the-art plants at Surajpur (Uttar Pradesh) and Kanchipuram (Tamil Nadu). The infrastructure at these plants supports the production of motorcycles and parts for the domestic as well as overseas markets. YMC has established its subsidiaries - Yamaha Motor Research and Development India Pvt Ltd. (YMRI), Yamaha Motor India Sales Pvt Ltd. (YMIS) and Yamaha Motor India Pvt Ltd. (YMI) in India to independently support IYM in the development, sales & marketing of its products and overall business planning & regional control respectively. Presently, its product portfolio includes YZF-R3 (321cc), MT-03 (321cc), YZF-R15 V4 (155cc), YZF-R15S V3 (155cc),  MT-15 V2 (155cc); FZS-Fi Version 4.0 (149cc), FZS-Fi Version 3.0 (149cc), FZ-Fi Version 3.0 (149cc), FZ-X (149cc), AEROX Version S (155cc), AEROX (155cc) and scooters like Fascino 125 FI Hybrid (125cc), Ray ZR 125 FI Hybrid (125cc), Ray ZR Street Rally 125 FI Hybrid (125cc).

Odysse Electric And SUN Mobility Join Forces To Drive e-Mobility Revolution Across International Markets

* The partnership promises to revolutionize the global two-wheeler electric mobility landscape by introducing battery swapping technology in electric bikes

Odysse Electric Vehicles, is pleased to announce its strategic partnership with battery-swapping solutions provider SUN Mobility for the export of its flagship electric motorcycle, Vader SM. Under this collaboration, Odysse Electric aims to deploy its daily commute bike, Vader SM, powered by the SUN Mobility's advanced battery-swapping technology, in key markets across the world. This collaboration marks an important step for Odysse Electric in expanding its global footprint and accelerating the adoption of electric mobility worldwide.

Vader SM is powered by two of SUN Mobility’s Smart Batteries, that are AIS-156 approved and are portable and swappable at SUN Mobility’s Quick Interchange Stations. Vader SM has a digital instrument cluster, is powered by a 4000 watt electric motor with a top speed of 80 kmph and range of 130 kms per swap. Vader SM offers 5 drive modes including Eco, Power, Sports, Reverse and Parking mode with cruise control. Vader SM also has advanced features such as Combi Braking system, Hill assist, Energy Regeneration and includes CAN communication with built-in protection circuits, ensuring safety and convenience for commuters.

This partnership will leverage SUN Mobility’s innovative battery-swapping platform to enhance the accessibility and convenience of Odysse Electric’s Vader SM for international markets, including Africa, Latin America, and Southeast Asia under the Battery-as-a-Service (BaaS) model. These vehicles will be manufactured in Odysse’s Ahmedabad facility in Gujarat.

SUN Mobility is currently deploying its swapping stations across Africa, Latin America, and Southeast Asia on a pilot basis to enable riders to swap batteries quickly and conveniently, addressing the key concerns of upfront cost, range anxiety and long charging time for EV owners.

Mr. Nemin Vora, CEO, Odysse Electric Vehicles Pvt. Ltd. said, “We see huge export potential in the EV market and aim to contribute to the EV aspirations globally. This collaboration underscores our dedication to spearheading the transition towards providing sustainable mobility solutions on a global scale. Our association with SUN Mobility will enable us to bring our flagship product, Vader SM, to new markets by leveraging SUN Mobility’s advanced battery infrastructure and network.”

Mr. Ajay Goel, Co-founder & Executive Director, SUN Mobility, said, "We are proud to collaborate with Odysse Electric Vehicles in introducing the Vader SM, one of India's first electric motorcycle powered with SUN Mobility’s advanced battery-swapping technology, to international markets. This partnership marks a significant step forward in our mission to drive affordable sustainable mobility solutions globally, leveraging our innovative battery swapping platform to enhance accessibility and convenience for electric vehicle users worldwide."

The Federation of Automobile Dealers Associations Releases July’24 Vehicle Retail Data

Overall Growth: The Indian Auto Retail sector experienced a double digit growth of 13.84% YoY.

Segment Performance:

Two-Wheelers (2W): Positive YoY growth of 17.17%.

Three-Wheelers (3W): Increased by 12.88% YoY.

Passenger Vehicles (PV): Double digit growth of 10.18% YoY.

Tractors (Trac): Significant YoY decline of 11.95%.

Commercial Vehicles (CV): Increased by 5.93% YoY.

Challenges Identified:

Monsoon Impact: Above-normal cumulative rainfall with uneven geographical distribution, leading to varying impacts across regions.

Consumer Sentiment: Low in some regions due to heavy rains and economic uncertainties.

High Inventory Levels: PV segment inventory surged to historic highs of 67-72 days amounting to Rs 73,000 Crores worth of stock, thus posing risks for dealer sustainability.

Financial Strain: Dealers continue to face financial pressure due to high inventory and interest costs.

Market Competition: Increased competition and heavy discounting in the PV segment.

Near-Term Outlook

Monsoon Forecast: IMD predicts 'above normal' rainfall in the second half of the monsoon season due to potential La Nina conditions.

Agricultural Impact: Brief monsoon break in August not expected to impact overall rainfall, crucial for Kharif sowing and standing crops.

Festive Season: Expected to boost auto retail sales across segments.

Product Launches and Promotions: Availability of new models and ongoing sales promotions to support future growth.

Dealer Sentiment: Cautiously optimistic outlook with anticipated new product launches, despite concerns over low customer inquiries and potential impacts of heavy rains.

Cautious optimism in near term.

The Federation of Automobile Dealers Associations (FADA) released Vehicle Retail Data for July'24.

July24 Retails

FADA Vice President Mr. C S Vigneshwar provided insights on July 2024's auto retail performance, stating, “Following a deficient June, monsoons in India have intensified, resulting in above-normal cumulative rainfall for July. However, the geographical distribution was uneven, with Southern and Central India receiving excess rain, while 10 meteorological divisions experienced a double-digit deficit. Kharif sowing has increased by 2.3% since last year, but these figures are somewhat misleading due to poor sowing activity in the previous year caused by El Nino disruptions. Compared to July 2023, the sown area has actually decreased by 2.4%, according to experts.

Despite these challenges, India’s automobile retail sector saw a YoY growth of 13.84%, with almost all categories witnessing an increase. Two-wheelers (2W) grew by 17%, three-wheelers (3W) by 13%, passenger vehicles (PV) by 10% and commercial vehicles (CV) by 6%. Tractors, however, continued to underperform, falling by 12% YoY.

The 2W segment experienced notable growth due to a thriving rural economy, positive monsoon effects, and government support programs enhancing rural incomes. The introduction of new products and better stock availability also contributed significantly, despite market slowdowns in certain regions, excessive rains, and increased competition. The segment also saw an increase in EV sales due to discounts and EMPS scheme deadline.

PV sales saw a robust 14% growth, driven by new model launches and attractive pricing strategies. Dealers reported benefits from good product availability, attractive schemes, and a wider range of products. Nonetheless, heavy rains, low consumer sentiment, and intense competition posed challenges. Some dealers managed to sustain sales through strong promotions and incremental discounts.

However, this growth is accompanied by a significant concern. Inventory levels have surged to a historic high of 67-72 days, equating to Rs 73,000 crores worth of stock. This poses a substantial risk for dealer sustainability, necessitating extreme caution. FADA urges PV OEMs to be vigilant about potential dealer failures due to these high inventory levels. It is also crucial for the Reserve Bank of India to mandate financial institutions to implement stringent checks before releasing inventory funding, preferably requiring dealer consent or collaterals to prevent the escalation of NPAs.

CV retail sales showed a 6% YoY growth, with dealers reporting mixed sentiments. Positive factors included growth in the construction and mining sectors, while challenges such as continuous rainfall, negative rural market sentiment, poor finance availability, and high vehicle prices were also noted. Some dealers achieved growth through small bulk deals and leveraging increased market reach and product acceptability.”

Near-Term Outlook

The near term outlook across the auto retail segments shows a blend of optimism and caution. 2W sales are expected to be buoyed by factors such as a growing rural economy, positive monsoon impacts and the introduction of new products. The festive season beginning after the Aadi festival and favourable agricultural conditions are also likely to contribute to increased sales. However, heavy rainfall, ongoing agricultural activities and inconsistent monsoon patterns may dampen demand in certain areas.

PV could see mixed results. While the festive season, attractive schemes and good monsoon are expected to boost sales, concerns over low consumer sentiment, heavy rainfall and a lack of new product launches persist. High inventory levels pose a significant risk and it is crucial for PV OEMs to avoid further increases in stock to prevent financial strain on dealers. CV face a modest outlook, with positive factors including improved market reach and the festive season, tempered by challenges such as bad freight rates and ongoing rainfall.

The Indian Meteorological Department (IMD) predicts that rainfall in the second half of the monsoon season (August-September) is likely to be 'above normal' due to the potential formation of La Nina conditions. While August may see a brief break in the monsoon, overall rainfall for the two months is expected to remain high, which is crucial for Kharif sowing and standing crops. However, excessive rains could lead to city flooding, floods in low-lying areas and landslides in hilly regions, potentially impacting auto retail sales.

The auto retail market is cautiously optimistic for the near term, driven by positive monsoon effects, the festive season, and some product launches. Nonetheless, challenges such as heavy rainfall, high inventory levels in the PV segment, and economic uncertainties warrant caution. Effective inventory management and stringent financial checks are essential to sustain growth and mitigate financial risks, ensuring the stability and health of the auto retail sector.       

Key Findings from our Online Members Survey

Liquidity

Neutral               50.22%

Good                 25.97%

Bad                      23.81%

Sentiment

Neutral              45.89%

Good                   29.87%

Bad                      24.24%

Expectation from August’24

Growth               51.08%

Bad                      38.10%

De-growth         10.82%