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  • India surpasses China to become largest two-wheeler market globally

    New Delhi, Oct 18: India has surpassed China to become the largest two-wheeler market in the world, driven by rising demand in rural areas, supported by favourable monsoon conditions and government initiatives for rural development, a report showed on Friday.

    Globally, two-wheeler sales grew 4 per cent (year-on-year) in the first half of 2024, according to Counterpoint Research.

    Although India, Europe, North America, Latin America, and the Middle East and Africa saw growth, China and Southeast Asia (SEA) experienced a decline.

    Senior analyst Soumen Mandal said that India’s two-wheeler market saw a remarkable 22 per cent YoY growth in the first half this year.

    “This strong performance allowed India to surpass China and become the world’s largest two-wheeler market,” he mentioned.

    Two-wheelers saw strong double-digit growth (year-on-year) in the second quarter of this fiscal in India.

    In China, two-wheelers under 125cc remain popular, but consumers are increasingly opting for e-bicycles over motorcycles and scooters for daily commuting. This shift has led to a temporary slowdown in the Chinese two-wheeler market, particularly in the electric segment.

    In South East Asia, major markets such as Indonesia, Vietnam, the Philippines, Thailand, and Malaysia saw a decline in two-wheeler sales due to geopolitical trade tensions, stricter lending criteria, and cautious consumer spending amid economic uncertainty.

    The top-10 global two-wheeler manufacturers captured over 75 per cent of sales during H1 2024.

    Honda maintained its leading position in the global two-wheeler market, followed by Hero MotoCorp, Yamaha, TVS Motor and Yadea.

    TVS Motor was the fastest-growing brand (up 25 per cent YoY) among the top-10 brands while Yadea declined the most (down 29 per cent YoY), slipping to fifth position.

    Neil Shah, Vice President of Research, said that electrification is on the rise, and by 2030, we expect four out of 10 two-wheelers sold to be electric.

    “This shift is also accelerating the adoption of embedded cellular connectivity in the two-wheeler segment. As the automotive industry advances toward C-V2X technology, the two-wheeler segment will follow suit,” he noted.

  • India Overtakes China in Global Two-Wheeler Market

    India surpasses China to become largest two-wheeler market globally

    IANS

    India has made a significant stride in the global automotive industry by surpassing China to become the world’s largest two-wheeler market. This shift is primarily attributed to an increase in demand from rural areas, which has been bolstered by favourable monsoon conditions and government initiatives aimed at rural development. The data, released by Counterpoint Research, shows that two-wheeler sales globally grew by 4% year-on-year in the first half of 2024.

    While growth was observed in India, Europe, North America, Latin America, and the Middle East and Africa, China and Southeast Asia experienced a decline. Soumen Mandal, a senior analyst, highlighted that India’s two-wheeler market saw a remarkable 22% YoY growth in the first half of this year. This strong performance allowed India to surpass China and become the world’s largest two-wheeler market, Mandal stated.

    The second quarter of this fiscal year saw strong double-digit growth in India’s two-wheeler market. In contrast, China’s market, where two-wheelers under 125cc remain popular, is experiencing a shift. Consumers are increasingly opting for e-bicycles over motorcycles and scooters for daily commuting, leading to a temporary slowdown in the Chinese two-wheeler market, particularly in the electric segment.

    In Southeast Asia, major markets such as Indonesia, Vietnam, the Philippines, Thailand, and Malaysia saw a decline in two-wheeler sales. This decline is attributed to geopolitical trade tensions, stricter lending criteria, and cautious consumer spending amid economic uncertainty.

    India surpasses China to become largest two-wheeler market globally

    IANS

    The global two-wheeler market is dominated by a few key players, with the top-10 manufacturers capturing over 75% of sales during H1 2024. Honda maintained its leading position, followed by Hero MotoCorp, Yamaha, TVS Motor, and Yadea. TVS Motor emerged as the fastest-growing brand, with a 25% YoY increase, while Yadea experienced the most significant decline, slipping to fifth position.

    The two-wheeler market is also witnessing a shift towards electrification. Neil Shah, Vice President of Research, predicts that by 2030, four out of 10 two-wheelers sold will be electric. This shift is also accelerating the adoption of embedded cellular connectivity in the two-wheeler segment. As the automotive industry advances toward C-V2X technology, the two-wheeler segment will follow suit, Shah noted.

    This development in India’s two-wheeler market is reminiscent of the country’s growth in the retail sector. For instance, Nykaa, India’s leading omnichannel consumer-tech company, reported a consolidated Gross Merchandise Value (GMV) of over Rs. 12,446 crores, with net revenue of Rs. 6,386 crores, representing a 24% increase over FY23. The company serviced over 33 million customers across beauty and fashion, with nearly 2 billion annual visits.

    In the fashion industry, brands like Forever 21 and Vero Moda are offering both casual and formal wear, targeting young, fashion-conscious customers. These brands are constantly updating their catalogs, ensuring their patrons always have new stock to choose from.

    The FMCG market also expanded by 10% in January, indicating that the third Covid wave buoyed consumption for daily essentials and groceries. Despite restrictions on store timings and mobility in certain markets, the impact on business has been the least in the third Omicron wave compared to the previous two.

  • Stock market opens in red, trades low amid weak geopolitical sentiments

    Sensex trades lower amid weak global cues

    The Indian stock market again opened in the red on Friday amid growing geopolitical tensions between Iran and Israel and weak global cues. In early trade, selling was seen in the Information Technology (IT), auto, pharma and Public Sector Undertaking (PSU) bank sectors.

    The Sensex was trading at 80,752.18 after slipping 254.43 points or 0.31 per cent. At the same time, the Nifty opened trading at 24,675.30 after falling 74.55 points or 0.3 per cent. The market trend remained negative.

    On the NSE, 283 stocks were trading in the green, while 1,941 stocks were trading in the red. At the same time, 588 stocks were trading in green and 2,166 stocks were trading in red on the BSE. Nifty Bank was at 51,055.00 after falling 233.80 points or 0.46 per cent.

    Nifty Midcap 100 index was trading at 57, 636.95 level after falling 829 points or 1.42 per cent. At the same time, Nifty Smallcap 100 index was at 18,673.75 after falling 392.20 points or 2.06 per cent. Wipro, Axis Bank and TCS were the top gainers in the Nifty pack.

    Bajaj Auto, Titan Company, Infosys, Maruti Suzuki and Shri Ram Finance were the top losers. In Asian markets, except Seoul, the stock markets of Bangkok, Shanghai, Hong Kong, Jakarta and Tokyo were trading in the green.

    Sensex closes 151 points down, Reliance and Tata Motors top losers

    The US stock market closed in the green on the last trading day. According to market experts, the 6 per cent correction in Nifty from the peak has made India an underperformer with only a 13.83 per cent return year-to-date (YTD), in contrast to the 23.16 per cent return in the S&P 500 YTD.

    The Hang Seng index, with a 23.16 per cent return YTD, has been the best-performing market in recent weeks assisted by massive buying by Foreign Institutional Investors (FIIs).

    Experts said trends indicate that FII selling and DII buying were likely to continue. A bounce back was likely in the next two or three days but it is unlikely to be sustained since sentiments have weakened.

    (With inputs from IANS)

  • Indian E-commerce Market Set to Soar to $325 Billion by 2030

    E-Commerce

    Indian e-commerce market poised to reach $325 billion in 2030: ReportIANS

    The Indian e-commerce market is projected to reach an impressive $325 billion by 2030, according to a report by FICCI-Deloitte. This growth is propelled by robust rural demand and a compound annual growth rate (CAGR) of 21%. The retail sector, currently valued at $753 billion in FY23, is expected to post a 9.1% CAGR until FY27, the highest among large economies. Retailers are rapidly adapting to omnichannel strategies, tech-enabled experiential selling, and launching new private labels to cater to India’s price-sensitive yet aspirational consumers. The expansion of retail networks in tier 2 and 3 cities is expected to contribute significantly to this growth.

    The report also highlights the role of increased smartphone penetration, internet access, and growing disposable incomes in fueling this expansion. Quick commerce, which focuses on the rapid delivery of essentials, has disrupted traditional supply chains and reshaped consumption patterns. The growth of the Indian e-commerce market is also being fueled by heightened competition from direct-to-consumer (D2C) brands, a rising focus on premiumisation, and innovative new product development tailored to the needs of young and middle-income consumers.

    The Pradhan Mantri Jan Dhan Yojana (PMJDY) has significantly influenced the e-commerce and retail sector in India by bringing millions of rural Indians into the formal financial system. This has led to a rise in credit-driven consumption in small cities and towns, which Finance Minister Nirmala Sitharaman hailed as a revolutionary shift. The government has also lauded the meteoric rise in credit-driven consumption in small cities and towns, calling it a “revolutionary shift.” According to the central bank, household consumption is poised to grow faster as headline inflation eases “with a revival of rural demand already taking hold”.

    e-commerce

    Indian e-commerce market is projected to reach $325 billion by 2030Entrepreneur.com

    The FICCI MASSMERIZE 2024 event emphasized the importance of quality in products and India’s efforts to establish its own standards. The event highlighted the role of innovation, technology, and consumer-centric approaches in driving growth and achieving the vision of a Viksit Bharat. Generative AI is a powerful technology that leverages vast datasets to create personalized experiences and optimize various aspects of retail operations. It’s not limited to one area but offers multiple benefits across different functions. In content creation and optimization, Gen AI autonomously generates and improves product descriptions and copy, reducing the need for extensive human involvement. It also excels at providing personalized discounts by analyzing purchase history.

    Blockchain technology is a decentralized ledger system that provides robust security and transparency for safeguarding digital assets in the retail sector across the digital landscape. Through its immutable and distributed nature, blockchain ensures the integrity of transactions and data, reducing fraud and enhancing trust. For example, in supply chain management, blockchain can trace the origin and journey of products, allowing customers to verify the authenticity and quality of goods. It also acts as a powerful tool for driving sustainability within the retail sector by providing retailers insight into their supply chains, promoting responsible sourcing and reducing waste. By verifying product authenticity, blockchain helps combat counterfeiting, ensuring that consumers receive genuine, quality products discouraging the production of environmentally damaging fakes.

    Indian e-commerce market is poised for significant growth, driven by a combination of factors including increased rural demand, technological advancements, and government initiatives. The adoption of innovative technologies like Generative AI and blockchain is set to further revolutionize the sector, offering enhanced customer experiences, improved operational efficiency, and increased transparency and trust. As India continues to embrace the digital revolution, the future of its e-commerce market looks promising, offering immense opportunities for businesses, consumers, and the economy as a whole.

  • Cryptocurrency Market: A Deep Dive into Value and Volatility

    cryptocurrency

    About 85 pc of world’s cryptocurrencies are not even worth a centIANS

    AltIndex.com, a data analysis firm, revealed that approximately 85% of the world’s cryptocurrencies are worth less than one cent. This staggering statistic underscores the volatility and unpredictability of the cryptocurrency market. The total number of cryptocurrencies currently in circulation hovers between 8,500 and 10,000, with new tokens being launched every time a bull run in the crypto space begins. At the time of the report, the total number of cryptocurrencies was at a high of 9,861. However, most of these have little or practically no value.

    The report further showed that 9,525, or 96% of all coins circulating in the crypto space, are worth less than a dollar. Just 131 coins were valued between 50 cents and one US dollar. Around 400 had a price tag between 50 and 10 cents, and another 548 were valued between one and 10 cents. This means a shocking 8,443 coins, or 85% of all cryptocurrencies, are worth less than a cent. The proliferation of cryptocurrencies can be attributed to the rise of blockchain technology, which allows anyone to launch a new cryptocurrency. However, the majority of these cryptocurrencies are worth very little due to various factors, including a high number of new tokens being launched with each crypto market bull run, lack of unique value proposition, limited adoption, and intense competition.

    Despite the majority of cryptocurrencies having little value, the top five cryptocurrencies now make up 82% of the total crypto market cap, with a combined value of $1.78 trillion. Bitcoin accounts for 56% of the global crypto market cap, up from 48% a year ago. Ethereum makes roughly 12% of the total crypto market cap, 7% less than last year. On the day of the report, Bitcoin price was hovering around $62,800, up 1.5%, and Ethereum was also up 1.3% at nearly $2,450. The cryptocurrency market has seen significant growth and volatility over the past decade. In 2017, the market experienced a boom with the launch of numerous cryptocurrencies. However, many of these new cryptocurrencies failed to gain significant value, leading to the current situation where a large percentage of them are worth less than a cent.

    Global regulator for banks red-flags crypto-assets such as Bitcoin

    Global regulator for banks red-flags crypto-assets such as BitcoinIANS

    This trend is not unique to the cryptocurrency market. In the late 1990s and early 2000s, the dot-com bubble saw a similar trend with internet companies. Many new internet companies were launched with high expectations, but a large number of them failed to generate significant revenue and eventually went bankrupt. Looking forward, the cryptocurrency market is expected to continue its volatile trend. Some experts predict that Bitcoin, the largest and most well-known cryptocurrency, could reach a staggering $90,000 by the end of 2024. However, these predictions should be taken with a grain of salt as the cryptocurrency market is highly unpredictable and influenced by a wide range of factors, including regulatory changes, technological advancements, and market sentiment.

    While the cryptocurrency market offers significant opportunities for high returns, it also carries substantial risks. The majority of cryptocurrencies are worth very little, and the market is highly volatile. Therefore, potential investors should conduct thorough research and consider their risk tolerance before investing in cryptocurrencies. It’s crucial to remember that while the potential for high returns exists, so does the potential for significant losses. As with any investment, due diligence and careful consideration are key.

  • Middle East Crisis Wipes Out Rs 14 Lakh Crore from Indian Equity Market

    market

    Indian investors lose over Rs 14 lakh crore in 2 daysIANS

    The escalating conflict in the Middle East has sent shockwaves through the Indian equity market, leading to investors losing over Rs 14 lakh crore in just two trading sessions. This significant downturn is primarily attributed to the geopolitical tensions and the resultant surge in crude oil prices. The Bombay Stock Exchange (BSE) saw a sharp decline in the market capitalization of all listed companies, skewing from Rs 475 lakh crore to Rs 461 lakh crore.

    The Sensex, a benchmark index of the BSE, closed down 808 points or 0.98 per cent at 81,688. Similarly, the Nifty, a key index on the National Stock Exchange, was down 235 points or 0.93 per cent at 25,014. The bearish sentiment was pervasive across sectors, with major companies like M&M, Bajaj Finance, Nestle, Asian Paints, Bharti Airtel, UltraTech Cement, ITC, HUL, Power Grid, HDFC Bank, Reliance, Bajaj Finserv, ICICI Bank and NTPC emerging as the top losers.

    On the other hand, Infosys, Tech Mahindra, Wipro, Tata Motors, Axis Bank, TCS and SBI were the top gainers, indicating a mixed bag of performance across the market. The midcap and smallcap stocks were not immune to the selling pressure either. The Nifty Midcap index closed at 58,747, down 550 points or 0.93 per cent, and the Nifty Smallcap 100 index settled at 18,758, down 193 points or 1.02 per cent. The India VIX, an indicator of market volatility, closed at 14.12, up 7.21 per cent, reflecting the heightened uncertainty and risk in the market. Market experts attribute the bearish sentiment to the escalating conflict in the Middle East and the resultant surge in crude oil prices. Investors have adopted a sell-on recovery strategy, leading to a widespread sell-off in the market.

    market

    Market downturn has been exacerbated by selling pressure from foreign institutional investorsIANS

    The current market downturn has also been exacerbated by the selling pressure from foreign institutional investors (FIIs). On October 3, FIIs sold equities worth Rs 15,243 crore, while domestic institutional investors bought equities worth Rs 12,914 crore on the same day. This indicates a significant pullback from the Indian market by FIIs, adding to the downward pressure on the market. The impact of the Middle East crisis on the Indian stock market is reminiscent of similar historical events where geopolitical tensions have led to significant market downturns. For instance, during the Gulf War in the early 1990s, Indian markets experienced a similar slump due to the surge in oil prices and heightened geopolitical risk.

    The ongoing geopolitical tensions have driven crude prices higher, dampening hopes for a rate cut by the Reserve Bank of India (RBI) in the upcoming policy meeting. This, coupled with noticeable selling by foreign investors, is adding to the market’s strain. While there may be a pause or slight rebound after the recent slide, the overall bias will remain negative unless Nifty decisively reclaims the 25,600 level. The current market scenario underscores the importance of diversification and risk management in investment strategies. Investors need to be cognizant of the potential impact of geopolitical events on their investments and adjust their portfolios accordingly.

    While the short-term outlook for the Indian equity market remains uncertain due to the ongoing Middle East crisis, the long-term fundamentals of the Indian economy remain strong. Therefore, investors should adopt a long-term perspective and avoid panic selling during such market downturns. The market dynamics are a testament to the interconnectedness of global economies and the influence of geopolitical events on financial markets.

  • Ola Electric’s EV Market Share Falls to 27% Amid Growing Challenges

    Ola Electric's EV market share drops to 27 pc as problems mount

    Ola Electric’s EV market share drops to 27 pc as problems mountIANS

    Bhavish Aggarwal-run Ola Electric continues to lose its market share in the Indian EV market and in the month of September, it further dropped to 27 per cent amid rising competition as well as its crippling service centres.

    The company saw 24,665 e-scooter sales last month, from 27,587 units sold in August, according to the government transportation portal Vahan.

    Ola Electric's share nosedives further, analysts warn investors to remain cautious IANS IANS

     Ola Electric’s rivals have launched newer models which are priced closer to those of OlaIANS

    Ola Electric’s market share has been consistantly decreasing amid rising competition from rivals like TVS Motor and Bajaj Auto. It earlier dropped to 31 per cent in August.

    The company’s nearest rivals TVS Motor and Bajaj Auto narrowed the gap in September, increasing their market share once again. Bajaj Auto showed growth with registrations rising to 19,103 units in September (from 16,789 units in August). TVS Motor registered 18,084 units, up from 17,649 units in August.

    Ather Energy also saw a boost in sales, with volumes climbing to 12,676 units in September (from 10,980 units in August).

    Ola Electric’s rivals have launched newer models which are priced closer to those of Ola.

    The company’s share has also lost its sheen, hovering around Rs 100 from its all-time high of Rs 157.40 — a loss of about 38 per cent. The share of the electric two-wheeler maker has declined for the ninth out of the last 11 sessions.

    As per reports, Ola Electric’s flagship S1 series EV scooter has become a nightmare for hundreds of customers who are consistently facing issues like malfunctioning hardware and glitching software and spare parts are hard to come by, resulting in inordinate delays. Market analysts say that the share is showing extreme volatility due to challenges the company faces as well as rising competition and service-related issues.

    Trade analysts said the stock is currently loss-making and trading at high valuations.

    (With inputs from IANS)

     

  • India’s EV market rises 23 pc in September with 1.59 lakh unit sales

    New Delhi, Oct 2: In a boost for the electric vehicle (EV) adoption in the country, the total EV registrations reached 1.59 lakh units in September — up from 1.29 lakh units in the same month last year.

    According to the government’s VAHAN data, EV registrations saw a significant 23 per cent increase (year-on-year). In the first half of the current fiscal, EV volumes increased 20 per cent compared with the same period last year.

    Electric two-wheeler sales were 0.90 lakh units, a rise from 0.64 lakh units in the same month last year. The electric three-wheeler segment saw 0.63 lakh unit sales, compared with 0.58 lakh units in September 2023, as per the data.

    Ola Electric saw a dip in sales to 24,665 units in September from 27,587 units in August. Bajaj Auto showed growth with registrations rising to 19,103 units in September (16,789 units). TVS Motor registered 18,084 units, up from 17,649 units in August.

    EV firm Ather Energy saw a boost in sales, with volumes climbing to 12,676 units in September (from 10,980 units in August). Hero MotoCorp saw a decline in sales to 4,304 units (from 4,755 units).

    In the electric three-wheeler segment, Mahindra Last Mile Mobility maintained its leadership with 6,087 units, followed by Bajaj Auto with 5,004 units.

    For the first half of the current fiscal (FY25), total EV registrations across all segments rose to 8.93 lakh units compared with 7.45 lakh units in the same period last year.

    Meanwhile, the government on Tuesday launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme that has a financial outlay of Rs 10,900 crore over a period of two years. The PM-Drive scheme was approved by the Union Cabinet, chaired by Prime Minister Narendra Modi, on September 11 to promote electric mobility in the country.

    The PM E-DRIVE scheme will play a pivotal role in accelerating EV adoption and building critical charging infrastructure nationwide, contributing to a cleaner and more sustainable future.

  • Ford Aims to Produce EVs at TN Plant, Marking Its Re-entry into the Indian Market

    Ford Motor Co. is exploring plans to manufacture electric vehicles at its plant in Tamil Nadu, Southern India, as it seeks to re-enter the world’s third-largest car market three years after announcing the closure of its local factories.

    In an interview, Tamil Nadu Industries Minister T.R.B. Rajaa stated that Ford has not yet finalised its manufacturing plans for India but suggested that electric vehicles could be on the horizon. “If you look at the trend, investors coming to Tamil Nadu in recent years have introduced their EV lines,” Rajaa noted. “They recognise that the ecosystem is ready, and discussions are ongoing in that direction.”

    Ford joins a growing list of domestic and international automakers, including Tata Motors Ltd. and Vietnamese manufacturer VinFast Auto Ltd., who are investing billions to establish manufacturing plants in Tamil Nadu. In mid-September, Ford announced plans to utilise its Chennai facility for exports after sending a letter of intent to the Tamil Nadu state government.

    This development aligns with India’s initiative to enhance EV manufacturing in the country. Earlier this year, the federal government reduced import taxes for foreign carmakers that commit to investing $500 million in India. Tamil Nadu has positioned itself as a key manufacturing hub for EVs in the country.

    Currently, Ford employs 12,000 people in global business operations in Tamil Nadu, with expectations to increase that number by up to 3,000 jobs within the next three years, according to a company statement from last month.

  • Zerodha’s Strategy Amid Regulatory Changes and Market Dynamics

    Zerodha's Strategy Amid Regulatory Changes and Market Dynamics

    IANS

    Zerodha, a leading online brokerage firm, has made a significant decision in response to the revised exchange transaction charges (ETC) and securities transaction tax (STT). The company has chosen not to charge users after these changes came into effect, a move that is expected to impact 10% of its revenue. Despite the financial implications, Zerodha’s Co-founder and CEO, Nithin Kamath, confirmed that equity delivery would continue to be free at Zerodha, with no changes to their brokerage. This decision comes in response to SEBI’s “true-to-label” circular, which will eliminate rebates that currently contribute to 10% of Zerodha’s revenue.

    The changes in STT and transaction charges will result in a net increase in the cost of trades. For options, STT increases to 0.1% from 0.0625%, and transaction charge decreases to 0.035% from 0.0495%. This results in a net increase of 0.02303% or Rs 2,303 per crore of premium on the selling side on NSE and of 0.0205% or Rs 2,050 per crore on BSE. For futures, STT increases to 0.02% from 0.0125%, and transaction charge decreases to 0.00173% from 0.00183%. This results in a net increase of 0.00735% or Rs 735 per crore of futures turnover on the selling side.

    Zerodha

    Twitter

    The nature of risks is evolving faster than ever, especially when it comes to natural catastrophes (NatCats), the net-zero transition, and supply chain and cyber risks. Rather than stepping back and reducing their exposure, commercial carriers have a significant opportunity to step forward to address the growing protection gaps—or risk losing relevance in a changing world. Kamath revealed that 90% of their revenue from these rebates comes from options trading alone. With the new circular, brokers will no longer earn these rebates. This could force all brokers to adjust their pricing models in the coming months.

    In the context of the global financial landscape, the wealth management sector in the U.S. has seen significant changes. A study revealed that Americans need a six-figure salary to afford a typical home in nearly half of U.S. states. This is due to high mortgage rates, rising home prices, and low housing inventory. To afford a median-priced home of $402,343, Americans need an annual income of $110,871. This is a nearly 50% increase in just the last four years.