Diet Report : Auto & Auto Ancillaries Biggies enter the EV market By Elara Securities
We attended the Bharat Mobility Show 2025 recently at Delhi where Maruti Suzuki and Hyundai Motors India launched their first electric vehicles (EV) in the Indian market. In the passenger vehicle (PV) segment, major launches were in the EV category except for Tata Motors which showcased the Sierra ICE. In the two-wheeler (2W) and three-wheeler (3W) segments, Hero MotoCorp launched scooters and premium MC, HMSI launched pricing for its EV-2W while TVS Motor launched its e3W. In the auto components expo, ancillary firms showcased their products capability, primarily in premiumization and electric trends.
Expect India EV penetration at ~4-5% in FY26E led by launches: Maruti Suzuki unveiled the highly anticipated eVitara at the Expo, with pricing yet to be revealed. Hyundai Motors India launched the electric version of Creta while Tata Motors showcased the Harrier EV (launch in March 2025), the Sierra ICE (launch in H2FY26), and the production-ready EV Avinya. In our view, Creta EV boasts superior interior plastic quality and a panoramic sunroof, which the eVitara lacks, but the eVitara offers a better driving range and enhanced safety with seven airbags compared to Creta EV's six. The Creta EV's platform is not a born EV while Maruti Suzuki's eVitara is based on born electric platform. In our view, both these EV offerings lack the aspirational value that M&M BEV showcased, which is crucial for driving EV adoption given the challenges, such as charging infrastructure. The Creta EV is likely to leverage its established Creta brand for domestic sales while eVitara would rely on reliability in domestic markets. eVitara is likely to get bulk of its volumes from exports in the initial year as it supplies the rebadged version to Toyota as well.
No major surprises from two-wheelers: In the 2W space, Hero MotoCorp unveiled several new premium motorcycles, including the Xpulse 210, the Xtreme 250R as well as new scooters, such as the Xoom 125 and the Xoom 160. These launches reflect its ongoing efforts to strengthen its presence in premium MC and scooter segments, where market share for them remains elusive. Despite new model launches in the scooter category in the last year, overall market share has dropped from 7.1% in FY24 to 5.2% FY25 YTD for Hero MotoCorp. TVS Motors showcased the world’s first CNG-powered scooter, the TVS Jupiter CNG with a range of 226km and mileage of 84km per kg (though lacks boot space owing to the CNG kit). Apart from the CNG-powered scooter, the TVS Vision IQube Concept electric scooter with a 3.4kwh battery and a claimed range of 150km was on display as well as their soon to be launched e-cycles.
New launch by TVS among three-wheelers to expand addressable market: TVS Motor has unveiled the TVS King EV MAX e3W on January 20, delivering a range of 179km on a single charge. With this launch, the addressable market is set to expand further with all legacy original equipment manufacturer (OEM) focusing on e3W penetration (56% in FY24). These launched are likely to provide increased competition to Bajaj RE E-Tech 9.0, which provides better specifications (40Nm of torque 11kW of output compared to 36nm of torque and 4.3kW of output for Bajaj RE).
Continued focus on premiumization & electrification kit value rise for auto ancillaries: Companies emphasized enhanced content to elevate vehicular appeal, such as customizable dashboards, mood lighting, advanced driver assistance systems (ADAS), and sensors (by Uno Minda). In the auto components’ expo, Uno Minda continues to showcase robust products capability with an effort to increase kit value. Its showcase of 6-in-1 eAxle with Innovance was notable, in our view. Gabriel India showcased its semiactive suspension capability and the adoption in India should increase hereafter. Mahindra BEV have adopted semiactive suspension sourced from American based Tenneco. Minda Corporation and Flash Electronics showcased their complimentary set of products. EV-motors of Flash, wiring harness, bus bar capabilities with Technology License Agreement with Sanco were some key highlights.
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