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FADA Releases February’23 Vehicle Retail Data

6th March’23, Mumbai: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for February’23.

February’23 Retails

Commenting on how February’23 performed, FADA President, Mr. Manish Raj Singhania said, “February’23 continued to witness double digit growth of 16% YoY but was still down by -8%, when compared to pre-covid month of February’20. All categories also witnessed double digit growth with 2-Wheeler, 3-Wheeler, Passenger Vehicle, Tractor and Commercial Vehicles growing by 15%, 81%, 11%, 14% and 17% respectively on YoY basis.

The 2-Wheeler category witnessed a growth of 15% YoY but was down by -14% when compared to pre-covid month of February’20. The change in OBD norms which comes into effect from April along with marriage season kept the sales ticking. On the overall, high inflation and poor sentiment has kept the customers at bay.

The 3-Wheeler segment has seen 81% growth YoY and has also grown by 3% when compared to pre-covid month of February’20. This category has seen a drastic growth due to Central & State Government’s subsidy along with good scheme promotion done by the states. Along with this, aggressive finance schemes continues to aid growth for this category.

The Passenger Vehicle segment saw a growth of 11% YoY and 16% when compared to pre-covid month of February’20. Launch of new models, continuously improving supply coupled with healthy booking to cancellation ratio and wedding bells kept the momentum going for this already well to do segment.

The Commercial Vehicle category has also shown robust growth by growing 17% YoY though it fell by -10% when compared to pre-covid month of February’20. Walk-in enquiries improved during the month. Apart from this, demand has also increased due to change in OBD norms which is will see price hikes. On the Government’s side, infrastructure spending has been healthy. This is also aiding better sales.”

Near Term Outlook

The month of march has multiple festivals like Holi, Ugadi, Gudi Padwa, Navratri etc. This will help push auto sales. Apart from this, better availability of vehicles, last month of the Financial Year, change in OBD norms from April which will increase vehicle prices, the industry may see schemes being rolled out by the OEMs thus aiding higher sales.

On the flipside, India’s chief economic advisor said that urban demand recovery is taking place at a faster pace then rural. This along with sharp slowdown in private consumption expenditure to a 2-year low suggests a softening in household spending demand amid inflationary pressure as post covid pent-up demand starts to fade.

Apart from this, the Finance Ministry has released a statement that the predictions of a return of El Niño conditions in the Pacific could presage a weaker monsoon in India, resulting in lower output and higher prices. This will act as a dampener for Auto sales.

While the month of March looks good for Auto Sales, on a medium-term outlook, FADA remains cautious till the time a better monsoon forecast is not announced by IMD.

Key Findings from our Online Members Survey

• Inventory at the end of February’23
  Average inventory for Passenger Vehicles ranges from 35 – 37 days
  Average inventory for Two – Wheelers ranges from 20 – 25 days
• Liquidity
  Good             35.59%
  Neutral         46.33%
  Bad                18.08%
• Sentiment
  Good               35.59%
  Neutral           45.20%
  Bad                   19.21%

Chart showing Vehicle Retail Data for February’23

All India Vehicle Retail Data for February’23

Source: FADA Research

Disclaimer:

1. The above numbers do not have figures from TS & LD.
2. Vehicle Retail Data has been collated as on 04.03.23 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,348 out of 1,434 RTOs.
3. Commercia Vehicle is subdivided in the following manner

1. 1. LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
   2. MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
   3. HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
   4. Others – Construction Equipment Vehicles and others

1. 3-Wheeler is sub-divided in the following manner

1. 1. E-Rickshaw – Passenger
   2. E-Rickshaw – Goods
   3. 3-Wheeler – Goods
   4. 3-Wheeler – Passenger
   5. 3-Wheeler – Personal

February’23 category-wise market share can be found in Annexure 1, Page No. 05

Bajaj Finance hikes Fixed Deposit rates upto 8.20%

New Delhi, March 6, 2023: Bajaj Finance, the lending arm of Bajaj Finserv Ltd., one of India’s leading and diversified financial services groups, today announced an increase in interest rates on Fixed Deposits, taking it for senior citizens at 8.20 per cent per annum, for a tenure of 44 months.

The company has hiked FD rates by up to 35 basis points, for tenures between 15 months to 23 months, with effect from March 4, 2023. Depositors below 60 years can earn up to 7.95 per cent per annum. For the special tenure of 33 months introduced last year by Bajaj Finance, non-senior citizens can avail FD interest rates of up to 7.75 per cent per annum while senior citizens can earn up to 8.00 per cent per annum.

Sachin Sikka, Executive Vice President – Fixed Deposits & Investments, Bajaj Finance Ltd., said, “The current interest rate environment allows investors to make the most of Fixed Deposits. Our revised interest rates on Fixed Deposits in the 44-month bucket are as high as 8.20%, enabling investors to gain from inflation-beating rates and liquidity. Booking an FD with Bajaj Finance is completely digitised and paperless, making it a simple and secure process for investors.”

Bajaj Finance Ltd. offers one of the highest rates among large financial institutions in the country. Its digital journeys offer investors a secure and simplified route to set aside and grow savings. The company offers Fixed Deposits and attractive interest rates through its app, web, branches and distributors in 4000 locations across the country. In addition, Bajaj Finance also offers access to all mutual funds in the country through its Investment Marketplace app, offering investors a wide array of investment options to choose from.

1. Bajaj Finance FD Rates (% per annum) for Non-Senior Citizens, w.e.f. 04 March 2023

1. Regular Period

1. Special Period

1. Bajaj Finance FD Rates (% per annum) for Senior Citizens, w.e.f. 04 March 2023

1. Regular Period

1. Special  Period

A comparison of old and new interest rates for cumulative FD for Non-Senior Citizens, is given below:

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Toyota Kirloskar Motor Expands Centre of Excellence in Bengaluru

Bangalore, 06th March 2023 – As a part of its continuing emphasis towards the creation of a world-class skill pool including nurturing a mind-set for quality excellence, Toyota Kirloskar Motor (TKM) announced the setting up of a Centre of Excellence (CoE) in RV College of Engineering, Bengaluru. Aimed at offering engineering students with hands-on experience with powertrains and its functioning, the students will gain the opportunity to practically assemble and disassemble engines and gain a better understanding about automobile powertrains.

The 19th Centre in the city was inaugured by Dr. M.P Shyam, President, Rashtreeya Sikshana Samithi Trust (RSST) and Dr. K N Subramanya Principal RV College of Engineering in the presence of Mr. Swapnesh R Maru – Executive Vice President, TKM and other senior officials.

Drawing inspiration from Toyota’s efforts of enhancing skill-levels of engineering students, the tie-up has provided over 12,000 students with easy access to a robust curriculum through expert trainers, facilities, and equipment. The CoE set up within the campus will also consist of a Toyota engine, transmission, and powertrain as cut section and do-it-yourself models.

Commenting on Toyota’s support in developing world-class infrastructure and skill programs, Dr. M.P Shyam, President, RSST said, “We are delighted that Toyota has collaborated with RVCE for the establishment of a Centre of Excellence in Automotive Engineering. As the automotive industry is witnessing a paradigm shift by way of technological innovations, so is the demand for a skilled talent. This creates a need to bridge the industry & academia gap. The traditional syllabus and methods of learning need to be constantly upgraded in order to enhance learning and motivation amongst students, which will help in synchronizing with the rapid transition and evolving requirements of the industry. With the establishment of this Centre, we are confident that the hands-on and practical training experience will strengthen their learning abilities and create good career opportunities.”

Sharing his thoughts, Mr. Swapnesh R Maru – Executive Vice President, TKM said, “TKM is committed to contributing to the “Skill India” mission, and this initiative of CoE at RVCE, further reinforces our efforts towards developing a globally competitive talent pool, required for driving the “Make in India” program. Through this collaboration, with the prestigious RV College of Engineering, our efforts are to plug the skill gap and create better entry-level engineering talent, and job opportunities, that will enable the auto industry on its path to greater localization and self-reliance. At Toyota, one of the pillars for effective learning is through Genchi Genbutsu – which is a practice of analyzing the root cause of any problem in its source, in order to solve that problem quickly, efficiently & sustainably. We have followed the same practice here, as we believe in enhancing the learning process, not just with books, but with simulations and experiential learning. Our skill enhancement-related efforts are not just about our company but for the entire industry ecosystem and we will continue to support in training the youth with new-age engineering knolwdge and make them job-ready.”

Over its 25 years of existence in India, TKM has been passionately creating a scalable and sustainable skill mandate focused to bridge the gap underlying India’s rapidly growing industrial sector with evolving technologies and the availability of skilled manpower for the entire ecosystem. From imparting quality skill education to Engineering students to the entire workforce, the company’s efforts are aimed at ensuring contribution to the country’s vision of achieving self-reliance through ‘Make in India’ and ‘Skill India’.

Furthermore, TKM has trained over 77,760 employable youths through a variety of skill development initiatives. TKM is currently developing one Industrial Training Institute (ITI) in each district of the 31 districts in Karnataka. TKM continues to train trainees in 56 institutes across 25 States through the Toyota Technical Education Program (TTEP). The primary objective of the TTEP initiative is to enhance the student’s skill sets which will strengthen the talent pool from the grass root level and provide opportunities for youth with special focus in Rural and Semi Urban areas in line with the “Skill India“ initiative. In addition, Toyota dealers also support by providing On-Job training to these students. TKM also has collaborations with the Governments of Karnataka, Kerala, Odisha, Tamil Nadu, Maharashtra, Haryana, New Delhi, and Telangana to provide skill development to students and faculty members.

Recently, TKM has also undertaken a major expansion of TTTI with capacity going up from 200 to 1,200 students (academic batch-wise). This will be a major boost to the existing skill facility in its Bidadi plant with a focus to scale-up students’ skill levels on advanced technology, by Toyota expert trainers (globally certified).

Overview of TKM

Overview of TKM 1st Plant:

Overview of TKM 2nd Plant:

Noise partners with Women’s IPL 2023 as an associate sponsor; celebrates the spirit of Women’s Day with ‘Transform like Taapsee’ film

6th March, 2023: Noise, India’s leading connected lifestyle tech brand, is geared up to celebrate the spirit of Women’s Day by showing their support for the women in blue. As an associate partner for Women’s IPL 2023, Noise will run their film ‘Transform like Taapsee’, featuring Taapsee Pannu. Joining in the spirit of Women’s Day, the film depicts brand’s core ethos of breaking stereotypes by listening to their noise within and showcases brand’s love and support towards the team, truly exemplifying the grit and determination it takes to make it big. The film will be aired starting today, 4th March during all the 22 matches on connected TV and linear SD+HD channels including Sports 18 and Jio Cinema.

Gaurav Khatri, Co-Founder of Noise said on the announcement, “At Noise have always aimed at creating a brand that resonates with the young Indian audience and what resonates with them better than cricket? Women in cricket perfectly exemplify our brand’s core philosophy of listening to the noise within. At Noise, we are proud to join in the celebration of Women’s IPL 2023 and we are certain our young audience will relate to it while they indulge in the upcoming cricket series.”

Starring Taapsee Pannu, the film resonates with the women dominating the world of cricket as it highlights the story of the choices she has made in her life, equating those with being a Noisemaker. It brings to light how Tapsee decided to go against all odds and listen to the Noise within, like the women in blue.

The film calls out the brand’s determination to encourage the youth and women to listen to the noise within. It further highlights its support towards the women dominating the world of cricket.

Svatantra Microfin Pvt. Ltd. (Svatantra) – India’s foremost microfinance company, is working with Proparco – the private sector financing subsidiary of Agence Française de Développement Group, a leading European Development Finance Institution (EDFIs) to advance women’s empowerment; as France becomes the EU Gender Champion in India

Mumbai, 6th March: Mumbai-based Svatantra Microfin was founded by Ms. Ananya Birla at the age of 17. Svatantra Microfin is one of the youngest and fastest growing NBFC-MFI in the country. Till date, it has crossed an AUM of 1 billion USD, 7000 employees, a CAGR of 120% (2015-2022), and is consistently accorded “Great Places To Work”. With a CRISIL A+ rating, Svatantra is the youngest and one of the highest rated organization in the sector. Svatantra has impacted over 18 million lives, and adopted the 100% cashless disbursement method since inception.

On this partnership, Ms. Ananya Birla commented, “It is an honour to associate with the French government and AFD Group, and for Svatantra to be recognized as a key driver for financial inclusion in India. This is the beginning of a long-term relationship to further the cause of gender equity and women empowerment.”

“We are thrilled to start our cooperation with Svatantra Microfin, an important Micro Finance Institution in India, which strives to support development of women-led microbusinesses. Its strategy of achieving responsible financial inclusion of financially excluded populations in rural areas of India with the help of technology, contributes to Sustainable Development Goals achievement and is fully aligned with Proparco’s strategy in the region. We look forward to witness Svatantra’s journey of creating a significant impact in the India.” said Ms. Francoise Lombard, CEO of Proparco.

The signing ceremony was organised in the French Embassy in New Delhi in the presence of French Foreign Affairs Minister Ms. Catherine Colonna, Ambassador of France to India Mr. Emmanuel Lenin, AFD Executive Director Mr. Philippe Orliange and Proparco Regional Director Ms. Diane Jegam.