JioStar Commits ₹33,000 Crore for Content in FY26, Aims to Transform Indian Media Landscape

India’s largest media entity, JioStar, a joint venture between Reliance Industries’ Viacom18 and The Walt Disney Company’s India unit, has announced a major investment plan for the upcoming financial year. Uday Shankar, the company’s vice-chairperson, disclosed at the World Audio Visual and Entertainment Summit (WAVES) that ₹33,000 crore would be allocated for content in FY26, reflecting the company’s sustained commitment to the Indian consumer and storytelling ecosystem.

Continued Investment in Localised Content

JioStar had earlier invested ₹30,000 crore in content in FY25 and ₹25,000 crore in FY24, before the formation of the joint venture. “In three years (referring to 2024, 2025 and 2026) alone, we have spent more than $10 billion,” said Uday Shankar, who is also the co-founder of Bodhi Tree Systems.

He elaborated that these investments are entirely aimed at catering to the Indian audience, focusing on their preferences and needs. “The company’s investments are for the Indian audiences and the recovery of the investments is also from India,” he said. Shankar also highlighted the importance of enhancing India’s storytelling ecosystem rather than depending on global content.

Call for Monetisation Innovation and Expansion Beyond Metros

Criticising existing monetisation strategies, Shankar stated, “The current business models of advertisement and subscription in the market are outdated and there has been no major innovation for many years in the media and entertainment industry in this segment.” He called for a new approach that could enable Indian media companies to achieve valuations comparable to global players like Netflix and Tencent.

During the same event, Vivek Couto, managing and executive director of Media Partners Asia, noted that while the Indian media industry stands at a valuation of $30 billion, the US and China are significantly ahead at $200 billion and $75 billion respectively.

Shankar further spoke about the untapped advertising potential in smaller towns. “In advertising, India has really only seen the first phase of brand building. The challenge is that we’ve largely stuck to the same pool of advertisers for years. To move forward, we need to tap into the decentralised economic activity happening in Tier-II, III, and IV cities. If we can help these emerging businesses scale, build new brands, and bring them into the advertising ecosystem, it would create enormous value. If that happens, I genuinely believe the market could double in the next five years,” he stated.

Read More: JioStar Adds 1.5 Mn TV Households in First 10 Days of IPL 2025; Eyes 3-5 Mn by Season-End

Conclusion

JioStar’s ambitious content investment plan signals a transformative phase for India’s media and entertainment sector. With a sharp focus on local content and calls for monetisation innovation, the company aims to propel the industry’s growth and valuation to new heights.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Why the 4% Rule Fails in India: How Much Will You Need at 55 If You Spend ₹50,000/Month Today?

The 4% rule is a retirement planning guideline that suggests: You can safely withdraw 4% of your retirement corpus annually (adjusted for inflation each year) to ensure that your money lasts. 

It originated from a 1994 study by William Bengen, a U.S. financial planner, based on historical data of U.S. stock and bond returns. The assumption was that if a retiree withdraws 4% of their corpus in the first year and adjusts the amount annually for inflation, their money would likely last through retirement.

Example of How the 4% Rule Works:

Suppose you want to retire with ₹10 lakh annual expenses.

  • Using the 4% rule, your required retirement corpus = ₹10 lakh ÷ 0.04 = ₹2.5 crore.

Read More: Is Your Savings Account Losing You Money? A Look at Inflation, Opportunity Cost, and Low Interest Rates. 

Why the 4% Rule Doesn’t Work Well in India

  1. Inflation in India is Higher and More Volatile
  2. Currency and Lifestyle Changes

India-Specific Example

You’re 30 today, and your monthly expense is ₹50,000 (₹6 lakh/year). You want to retire at 55, and assume inflation at 6%.

At age 55, your annual expenses will be based on the inflation rate of 6%:

₹25.75 lakh/year

Using the 4% rule, the required corpus =

Corpus=₹25.75 lakh/0.04 = ₹6.44 crore 

So, you would need ₹6.44 crore in retirement savings to safely withdraw ₹25.75 lakh/year under the 4% rule.

Most people mistakenly assume ₹6 lakh/4% = ₹1.5 crore, which will run out quickly due to inflation.

Conclusion 

The 4% rule is too simplistic for Indian retirement planning. It ignores:

  • Higher inflation, 
  • Medical inflation, 
  • No state pension or safety net, 
  • And volatile return patterns.

Instead, Indians should consider a more dynamic withdrawal strategy or use goal-based planning tools tailored to inflation-adjusted expenses and longevity.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Supreme Court Order Could Send Bhushan Power & Steel Back on the Auction Block

Days after the Supreme Court’s ruling, a Business Standard report stated that several national and international players are now eyeing the assets of Bhushan Power and Steel. Although the renewed auction may take some time, top steelmakers are expected to rebid for the company.

The report added that Naveen Jindal’s Jindal Steel and Power may make an offer for BPSL. Furthermore, JSW Steel, despite its previous bid being rejected, could still re-enter the race. Rahul Dwarkadas from Veritas Legal told Business Standard that there is currently no legal hurdle preventing JSW Steel from rebidding, with the only caveat being any specific observation made by the apex court.

JSW Steel’s 2021 Acquisition Set Aside by Supreme Court

In 2021, 4 years ago, JSW Steel had paid ₹19,700 crore of Bhushan Power and Steel’s (BPSL) debt to creditors. The company had acquired BPSL under the Insolvency and Bankruptcy Code (IBC), and under its leadership, the operational capacity of BPSL rose significantly from 2.75 million tonnes to 4.5 million tonnes.

However, in a landmark judgment on May 2, the Supreme Court of India rejected JSW Steel’s resolution plan and ordered the liquidation of Bhushan Power and Steel. The court cited two primary reasons for this decision: JSW’s use of a mix of equity and optionally convertible debentures (OCDs) to complete the acquisition, and the failure to implement the plan within the timeframe mandated under insolvency law.

Read More: JSW Group Eyes ₹50,000 Crore Green Steel Investment for Europe

JSW Steel Share Performance 

As of May 05, 2025, at 3:05 PM, JSW Steel share price is trading at ₹955.90 per share, reflecting a decline of 1.78% from the previous closing price. Over the past month, the stock has surged by 0.14%.

Conclusion

With Bhushan Power and Steel now set for liquidation, the case has reignited competition among major steel producers. As the auction process prepares to unfold again, BPSL remains a valuable asset in the domestic steel sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

BMW Ventures Re-files IPO Papers with SEBI to Raise Funds

Nearly 6 months after withdrawing its draft papers for an initial public offering (IPO), BMW Ventures Ltd. has once again approached the Securities and Exchange Board of India (SEBI), signalling its renewed intention to go public. The Bihar-based steel and machinery distribution company has made slight revisions to its offer, particularly in the deployment of proceeds and the overall offer size.

Fresh Issue Focused on Debt Repayment

The refiling includes a fresh issue of 2.34 crore equity shares, with no offer-for-sale component, marking a reduction of 18,000 shares compared to its previous attempt. Notably, the company has decided to allocate up to ₹174 crore from the IPO proceeds towards debt repayment. This marks a shift from its earlier plan, where it had intended to utilise Rs 175 crore for funding working capital. The lead manager for the IPO remains unchanged, with Sarthi Capital Advisors Pvt. continuing as the sole book-running lead manager. The shares will be listed on both the National Stock Exchange and the BSE.

Steel Remains the Core Business

BMW Ventures Ltd. had first filed its draft papers with SEBI in September 2024 but withdrew them two months later. The company operates primarily in the distribution of long and flat steel products such as TMT bars, GI sheets, HR sheets, wire rods, galvanised colour-coated sheets, and doors. Additionally, it distributes tractor engines and spare parts to dealers. The steel distribution segment continues to be the core revenue driver, contributing 97.56% and 98.10% to the operational revenue for fiscal years 2024 and 2023, respectively.

Read More: BMW Ventures IPO: Filed DRHP With SEBI

Conclusion

BMW Ventures Ltd.’s decision to refile its IPO documents reflects a strategic revision in fund allocation and a renewed push to enter the capital markets. With steel distribution at the heart of its operations, the company looks to solidify its financial footing through the fresh issue.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

 

Tata Motors Share Price Surges After Jaguar Land Rover Restarts Exports to the US

UK-based luxury automaker Jaguar Land Rover (JLR), owned by Mumbai-headquartered Tata Motors, has restarted vehicle shipments to the United States. The move comes after a temporary halt prompted by tariffs introduced by President Donald Trump’s administration on imported cars.

Temporary Pause in Shipments Due to Tariffs

In early April 2025, JLR suspended shipments to the US as it assessed the impact of the newly imposed 25% auto tariffs. The United States is a crucial market for JLR, with nearly 30% of its vehicles sold there. A company spokesperson stated, “The USA is an important market for JLR’s luxury brands, and 25% tariffs on autos remain in place. As we work to address the new US trading terms with our business partners, we are enacting our planned short-term actions.” The suspension mirrored actions taken by UK rival Aston Martin Lagonda Global Holdings Plc, which also adjusted its deliveries in light of the new tariffs.

Ongoing Market Challenges for Tata Motors and JLR

Tata Motors has seen its shares fall nearly 13% since the beginning of 2025, a decline driven by rising investor risk aversion in response to the US tariff decision. Jaguar Land Rover sold 430,000 vehicles in the 12 months leading up to March 2024, with almost a quarter of sales from North America. The company had earlier reported a 17% drop in quarterly pretax profits in January 2025. According to The Times, shipments typically take about three weeks to reach the US, placing the expected arrival of resumed deliveries around 20 May.

Read More: Tata Motors Shareholders to Vote Tomorrow, May 6 on Demerger to Spin off PV, EV, JLR Into New Listed Entity

Tata Motors Share Performance 

As of May 05, 2025, at 2:10 PM, Tata Motors share price is trading at ₹662.75 per share, reflecting a surge of 1.65% from the previous closing price. Over the past month, the stock has surged by 14.32%.

Conclusion

As Jaguar Land Rover navigates the evolving US trade environment, the resumption of shipments marks a significant step in maintaining its presence in a vital market. The company is also preparing mid-term to long-term strategies and is expected to provide further updates during its full-year results announcement on 10 May 2025.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Parag Milk Foods Share Price Jumps Over 13%; Here’s Why!

Parag Milk Foods Limited saw its stock jump over 13% on May 5, 2025, as investors reacted positively to the company’s strong Q4 and FY25 financial performance. The surge followed the release of its investor presentation, which highlighted growth in key operational metrics, expansion in margins, and strategic focus on high-value categories.

Financial Performance: A Strong FY25

For the financial year ended March 31, 2025, Parag Milk Foods reported consolidated revenue of ₹3,432 crore, up 9% year-on-year. This growth was underpinned by a 17% volume increase in its core categories. EBITDA rose 30% to ₹293 crore, and the EBITDA margin expanded to 8.5% from 7.2% in the previous year, reflecting improved operational efficiency and a better product mix.

The company also reported a 31% increase in profit after tax (PAT), reaching ₹119 crore, with PAT margins improving to 3.5%. Cash flow from operations stood at ₹212 crore, reinforcing the company’s strong liquidity position.

Read More: India’s Creator Economy: A New Engine of Growth. 

Q4 Performance Highlights

In the final quarter of FY25, consolidated revenue rose 16% year-on-year to ₹918 crore. PAT stood at ₹26 crore, marking a sharp 167% jump compared to the same period last year. EBITDA margin improved significantly from 5.6% to 8.2%.

Standalone results mirrored this robust performance. Revenue touched ₹899 crore in Q4, while PAT surged 143% year-on-year to ₹32 crore, driven by a healthier gross margin and higher sales realisation.

Market Share Gains in Core Categories

Parag Milk Foods continues to reinforce its leadership in key product categories. It holds a 35% market share in the branded cheese segment and a 22% market share in the branded cow ghee segment, according to IMARC. These segments form part of the company’s core categories, which accounted for 57% of its total business in FY25.

The company’s premiumisation strategy, through products like ‘Pride of Cows’ and its Avvatar sports nutrition range, also gained traction, contributing 6% to overall revenue with a 29% year-on-year growth.

Milk Procurement and Price Movement

In Q4FY25, milk procurement prices rose 12% year-on-year and 9% quarter-on-quarter. Despite rising input costs, the company managed to protect and improve margins due to its efficient procurement strategy. Parag procures approximately 15 lakh litres of milk daily through a wide farmer network and over 2,400 village-level collection centres, enabling it to maintain consistent supply and quality.

Strategic Priorities Fuel Future Growth

The company has outlined its strategic focus areas:

  • Strengthening core categories like ghee and cheese

  • Expanding brand visibility and innovation

  • Enhancing direct-to-consumer and digital channels

  • Growing its high-margin New Age business

  • Improving financial metrics and operational efficiency

With improved return ratios, reduced net working capital days, and consistent revenue CAGR of 18% from FY22 to FY25, Parag Milk Foods is positioning itself for sustainable long-term growth.

About Parag Milk Foods

Founded in 1992, Parag Milk Foods is a leading dairy-FMCG company in India, operating popular brands like Gowardhan, Go, Pride of Cows, and Avvatar. The company focuses on high-quality dairy products and has developed a diversified portfolio that includes value-added products such as protein supplements, fresh cheese, and ready-to-eat Indian sweets. Its operations are supported by strong distribution networks and modern processing plants across multiple Indian states.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Colab Platforms Share Hits Upper Circuit as Board Approves 1:2 Stock Split

The Board of Directors of Colab Platforms Limited has approved a stock split in the ratio of 1:2, aimed at enhancing share liquidity and accessibility. As per the official statement, Wednesday, May 21, 2025, has been fixed as the record date for determining shareholder eligibility.

Under this sub-division, one equity share of face value ₹2 will be converted into 2 equity shares of face value ₹1 each. Following this corporate action, the company’s share price was locked at the upper circuit limit of 2% as of 1:53 PM on May 5, 2025, indicating strong investor interest.

Interim Dividend Declared for FY26

In a move to reward shareholders, the Board has also announced an interim dividend of 0.5% per share, based on the original face value of ₹2 per equity share. The record date for dividend eligibility was fixed as April 24, 2025, and the company has confirmed that the dividend will be paid on or before May 16, 2025.

This dividend reflects the company’s steady financial performance and shareholder-centric approach during the financial year 2025–26.

Read More: Ather Listing Date Set for May 6: All You Need to Know. 

Colab Unveils Sports-Tech Growth Accelerator Programme

Separately, Colab Platforms Limited has launched a ₹250 million Sports-Tech Growth Accelerator Programme under its newly formed Sports Innovation Division. This initiative is geared towards supporting India’s sports-tech ecosystem by backing early-stage startups and emerging ventures.

The programme aims to empower innovations across areas such as:

  • Performance technology

  • Esports and digital experiences

  • Fan engagement

  • Athlete development platforms

  • Gamified fitness solutions

Speaking on the initiative, Puneet Singh, Managing Director of Colab Platforms, stated: “India’s sports sector is on the cusp of a digital leap, and with this Growth Accelerator, we are not just funding ideas but building an innovation engine for India’s sports future. We want to back visionaries who are building for the next generation of sports, both in India and for the world.”

About Colab Platforms Limited

Colab Platforms Limited, listed on the Bombay Stock Exchange, is known for delivering advanced technology-led solutions across diverse sectors. With a commitment to excellence, Colab has been instrumental in enabling its clients to achieve operational efficiency through customised processing systems.

By leveraging India’s growing tech ecosystem and highly skilled talent pool, Colab continues to play a pivotal role in shaping technological progress both within and beyond the Indian market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Gautam Adani’s Team Engages with Trump Officials over US Bribery Probe: Report

In a development that has captured attention across global markets and regulatory circles, representatives of billionaire Gautam Adani have reportedly held meetings with former officials from President Donald Trump’s administration. According to a Bloomberg News report citing sources familiar with the matter, these discussions aim to secure the dismissal of criminal bribery charges filed in the United States.

Background: The Origin of the Allegations

The roots of this legal episode trace back to a 2023 indictment. U.S. authorities accused Gautam Adani and his nephew, Sagar Adani, of paying significant bribes to Indian officials between 2020 and 2024. These payments allegedly aimed to secure solar power contracts that could generate $2 billion in profit over two decades.

According to Reuters, the U.S. Securities and Exchange Commission (SEC) has also reached out to India’s Ministry of Law and Justice, seeking cooperation in investigating the alleged $265 million bribery scheme and accompanying securities fraud.

Charges Filed by US Authorities

In November, federal prosecutors in Brooklyn formally indicted Gautam Adani and Sagar Adani. The indictment claimed that the duo orchestrated bribes to influence the purchase of electricity from Adani Green Energy by Indian officials. These bribes were allegedly undisclosed to U.S. investors during a significant $750 million bond offering by the company.

The SEC noted: “Adani Green and the defendants also emphasised to underwriters and potential investors that Adani Green had implemented robust anti-bribery and anticorruption processes and that Adani Green was a leader in India in good corporate governance. None of this was true.”

The complaint stated that Adani Green Energy Ltd raised $2 billion from U.S. and global investors based on what the SEC alleges were misrepresented facts.

SEC Summons and Legal Notice

The SEC issued formal summonses to Gautam Adani and Sagar Adani. 0 or a motion under Rule 12 of the Federal Rules of Civil Procedure.”
 It further warned: “If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint.”

Read More: Adani Green Shares Gain for 2nd Straight Day; Operational Capacity Surges 30% in FY25. 

Adani Group’s Response

The Adani Group has rejected the allegations outright, stating the accusations are “baseless” and asserting that it will pursue “all possible legal recourse.”

Diplomatic Route: Meetings with the Trump Administration

According to Bloomberg News, the Adani team has been engaging with officials from Donald Trump’s administration in an attempt to have the case dismissed. These talks reportedly began earlier this year and have gained momentum recently. “Adani’s representatives are trying to make the case that his prosecution doesn’t align with President Donald Trump’s priorities and should be reconsidered,” a source told Bloomberg.

The report suggests that if discussions continue at their current pace, a resolution may be achieved within the coming month.

Conclusion

While the legal and political implications of this case are still unfolding, the situation highlights the complex intersection of corporate governance, cross-border regulation, and geopolitical influence. As both the SEC and the Adani Group prepare for their respective legal courses, the outcomes of these engagements could have far-reaching implications for foreign-listed Indian conglomerates.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Nifty Waves Index Launched: Top 10 Constituents and Their Weightage

The Nifty Waves Index was officially launched at the World Audio Visual & Entertainment Summit (WAVES) in Mumbai. The event, inaugurated by the Hon’ble Prime Minister Shri Narendra Modi and hosted by the Ministry of Information and Broadcasting, saw the Chief Minister of Maharashtra, Shri Devendra Fadnavis, unveil this sector-specific index.

Designed to reflect the performance of India’s growing media, entertainment, and gaming industries, the index includes 43 NSE-listed companies and provides investors, analysts, and policymakers with a sectoral benchmark.

Read More: NSE Launches Nifty Waves Index to Track Media and Entertainment Sector

Index Construction and Methodology

The Nifty Waves Index follows a structured methodology:

  • Base Date: April 1, 2005 
  • Base Value: 1000 
  • Number of Constituents: 43 
  • Calculation Frequency: End of day 
  • Weighting Criteria: Free-float market capitalisation 
  • Individual Stock Cap: 5% 
  • Reconstitution: Semi-annually 
  • Rebalancing: Quarterly 

This framework ensures that the index remains diversified while maintaining relevance to market movements.

Top 10 Constituents by Weightage

Here are the top 10 constituents of the Nifty Waves Index as of April 30, 2025:

Company Name Weight (%)
Nazara Technologies Ltd. 5.23
Zee Media Corporation Ltd. 5.15
Zee Entertainment Enterprises Ltd. 5.14
Hathway Cable & Datacom Ltd. 5.07
TV Today Network Ltd. 5.07
Saregama India Ltd. 5.02
PVR INOX Ltd. 4.96
Network18 Media & Investments Ltd. 4.76
Den Networks Ltd. 4.75
Tips Music Ltd. 4.70

These companies reflect the diversity within the index, spanning digital gaming, broadcast media, music, and film exhibition.

Conclusion

India’s Media & Entertainment industry is undergoing a significant transformation. From digital OTT platforms to gaming and music, creative content is seeing rapid innovation and adoption. WAVES serves as a confluence for these sectors, bringing together thought leaders, innovators, and stakeholders under one umbrella.

Commenting on the index’s significance, Chief Minister Fadnavis said, “India’s next significant export is its imagination—our stories, music, innovation, and creative spirit.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

FADA Reports Modest 2.95% Growth in India’s Auto Retail Sales for April 2025

The Federation of Automotive Dealers Associations (FADA) reported a 2.95% year-on-year rise in India’s overall automobile retail sales for April 2025, with total sales reaching 22,87,952 units. This modest growth was largely driven by seasonal buying during key festivals such as Chaitra Navratri, Akshay Tritiya, Bengali New Year, Baisakhi, and Vishu, which provided a lift to consumer sentiment and dealership footfall in the latter part of the month.

Segment-Wise Performance: Growth in Most, Dip in CVs

Most vehicle categories posted positive growth during the month. 2-wheeler sales rose by 2.25%, with 16,86,774 units sold, compared to 16,49,591 units in April last year. This segment benefited from increased demand in rural areas following the harvest season and upcoming wedding celebrations.

Passenger vehicles (PVs) also registered a modest increase, growing by 1.55% to reach 3,49,939 units, up from 3,44,594 units in the same period last year. This growth, although limited, reflects continued buyer interest in personal mobility options amid new launches and shifting preferences.

Meanwhile, three-wheelers and tractors posted higher growth rates of 24.5% and 7.5%, respectively, indicating a revival in demand for intra-city transport and rural farming needs.

On the other hand, commercial vehicles (CVs) remained a drag on the overall numbers, slipping by 1%. FADA attributed this dip to a high base effect, softness in e-commerce-led demand, and increased competition from electric three-wheelers, particularly in urban logistics.

Read More: March 2025 Auto Sales Data Out: Tata Motors, Maruti Suzuki, M&M and More in Focus

FADA’s May Outlook: A Mixed Bag

Looking ahead, FADA noted a nuanced outlook for May 2025, shaped by both opportunities and challenges across segments.

In the passenger vehicle space, retail momentum is expected to remain steady but subdued, as buyers hold off in anticipation of new model roll-outs. Additionally, elevated financing costs are likely to impact affordability and sentiment, particularly among mid-level urban buyers.

In the 2-wheeler segment, seasonal factors like marriage-related buying and post-harvest liquidity in rural areas are expected to sustain enquiries. However, FADA cautioned that credit availability has become more stringent, with financiers demanding higher CIBIL scores and larger down payments, even as banking liquidity remains stable.

Further, intense summer heat and ongoing school holidays could reduce showroom visits, although the Indian Meteorological Department’s forecast suggests the heat may be less severe than last year.

For commercial vehicles, the outlook remains flat due to persistent demand headwinds. While slower growth in e-commerce logistics and competition from electric three-wheelers weigh on the segment, FADA noted that OEM incentives and upcoming infrastructure projects may offer limited support to volumes.

Conclusion

April 2025 turned out to be a steady month for India’s auto retail sector, thanks to festive demand and moderate growth across most segments. While the consumer mood remains cautiously optimistic, several factors—ranging from financing hurdles to seasonal disruptions—continue to shape buying patterns. As FADA’s update suggests, the industry will likely navigate a complex mix of opportunities and constraints in the months ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.