Business

A new development is unfolding in the Paper Industry. ITC Limited, a conglomerate renowned for its diverse portfolio ranging from cigarettes to consumer goods, is reportedly leading the bid to acquire Century Pulp and Paper (CPP) from the Aditya Birla Group. 

Not far behind is West Coast Paper Mills, a prominent player in the paper manufacturing sector. This potential acquisition, valued between ₹3,000 to ₹3,500 crore, could reshape the landscape of the Indian paper industry. economictimes.indiatimes.com

The Contenders: ITC and West Coast Paper Mills

ITC Limited’s Paperboards and Specialty Papers Division has a well-established presence in the paper and packaging sector. The acquisition of CPP would boost ITC’s production capacity and enhance its market share in the paper industry. 

On the other hand, West Coast Paper Mills, promoted by the Bangur family, is also vying for CPP. Known for its extensive range of paper products, acquiring CPP would significantly strengthen West Coast’s position in the market.

According to sources, JK Paper was also vying for the acquisition, but its offer is no longer being considered at this stage.

Century Pulp and Paper: A Valuable Asset

CPP, a part of the Aditya Birla Group, is a significant player in the pulp and paper sector. The company boasts a diverse product portfolio, including writing and printing paper, tissue paper, and paperboards. Its state-of-the-art manufacturing facilities and a strong distribution network make it an attractive acquisition target for companies aiming to expand their footprint in the paper industry.

Aditya Birla Group’s Strategic Shift

On September 18 last year, the Aditya Birla Group rebranded Century Textiles Ltd as Aditya Birla Real Estate, signaling a shift in the company’s priorities. The group expanded its business portfolio by investing in real estate development around eight years ago. The pulp and paper division continues to operate under this newly rebranded entity.

CPP’s Production Capacity and Key Markets

Century Pulp and Paper (CPP) operates a plant in Nainital with an annual production capacity of 480,000 tonnes. The company generates operating profits between ₹600 and 700 crore.

CPP manufactures a diverse range of paper products, including writing and printing paper, copier paper, tissue paper, and paperboard.

Paperboard, a strengthened form of paper, is widely used as packaging material in the consumer goods, pharmaceutical, and cosmetics industries. The cigarette industry is also a significant consumer of paperboard.

CPP Key Details
Set up year	Capacity	Operating Profit	Division
Aditya Birla Group’s Pulp & Paper Division Set up in 1984	480,000 Tonnes Paper Making Capacity	₹600 – ₹700 Crore	Division of Aditya Birla Real Estate

Strategic Implications of the Acquisition

For ITC, acquiring CPP aligns with its strategy to diversify and strengthen its non-cigarette FMCG (Fast-Moving Consumer Goods) portfolio. Adding CPP’s assets would enhance ITC’s capabilities in the paper and packaging segment, supporting its various businesses, including packaged foods and personal care products. 

By acquiring CPP, West Coast Paper Mills would significantly boost its production capacity and product offerings, enabling it to cater to a broader customer base and explore new markets.

CPP Acquisition: The Background Story

According to industry insiders, discussions surrounding the acquisition of Century Pulp and Paper (CPP) gained traction in December. The Aditya Birla Group had previously explored selling its pulp and paper business in 2017 but ultimately decided against it.

The divestment of CPP is expected to generate significant capital for the Aditya Birla Group, one of India’s largest conglomerates with interests spanning metals, cement, financial services, retail, and telecom. The group has also expanded its footprint into new sectors, reinforcing its diversified business strategy.

The Road Ahead

Industry observers keenly watch the developments as discussions progress. The Aditya Birla Group had previously considered divesting CPP but did not proceed. 

This time, with advanced-stage talks and substantial offers, a decision is anticipated soon. The outcome of this acquisition battle could have far-reaching implications for the Indian paper industry’s competitive dynamics. economictimes.indiatimes.com

Conclusion

The potential acquisition of Century Pulp and Paper has set the stage for a significant shift in India’s paper industry. The coming weeks are crucial, with ITC Limited leading the race and West Coast Paper Mills in close pursuit. 

Stakeholders and industry analysts await the final decision, which can reshape the market landscape and influence future strategies within the sector.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

A Continued Wave of Layoffs in 2025

The job cuts that began in 2022 have not slowed—if anything, they are accelerating. In 2023 and 2024, major companies across the technology, finance, and energy sectors slashed jobs due to cost-cutting measures, AI adoption, and economic slowdowns.

Now, in 2025, the trend continues. Tech giants like Meta, Microsoft, and Salesforce are eliminating thousands of jobs, while oil, manufacturing, and finance companies are also shrinking their workforce. More than 5,600 employees have already been laid off in January 2025 alone (Times Now).

The following table summarizes the major layoffs announced so far in 2025:

Major Layoffs in 2025

Company	Industry	Layoffs Announced	When?	Reason
Microsoft	Tech	1,900	January 2025	Cost-cutting in gaming, cloud services, and AI shift (Times Now)
Meta (Facebook)	Tech	1,500+	January-February 2025	Efficiency drive, AI restructuring (Times Now)
Salesforce	Tech	1,000	January 2025	Slowing cloud demand (Indian Express)
BP	Energy	1,000	Q1 2025	Energy transition, cost optimization (Business Insider)
Google (Alphabet)	Tech	100s in ad sales	January 2025	AI-driven restructuring (TechCrunch)
Continental AG	Auto Industry	580	Early 2025	Weak demand for auto parts (Business Insider)

Why Are Companies Laying Off Workers?

1. AI & Automation Replacing Jobs

• Many tech layoffs are linked to artificial intelligence replacing human labor.
• AI and automation efficiencies mean fewer employees are required, particularly in customer service, marketing, and back-office operations.
• A study found that AI-related layoffs surged by 136% in 2024 and will continue into 2025. (India Today)

2. Economic Uncertainty & Cost-Cutting

• Post-pandemic slowdowns, high inflation, and global interest rate hikes have reduced corporate profitability.
• Companies are slashing jobs to preserve cash flow amid a murky economic outlook.
• BP’s layoffs reflect a declining energy demand and shifting priorities toward sustainable projects.

3. Performance-Based Cuts & Restructuring

• Microsoft and Meta are focusing on non-regrettable attrition, removing underperforming employees.
• Meta’s CEO, Mark Zuckerberg, announced that layoffs would become an annual process based on performance reviews. (Business Insider)

4. Mergers & Business Strategy Changes

• Salesforce continues to restructure post-pandemic, even after record profits.
• Google (Alphabet) has offered voluntary buyouts instead of outright layoffs, aiming to create a profoundly committed workforce.

Tech Industry Slowdown: Efficiency Over Growth

As growth slows and valuations normalise, tech firms are focusing on leaner, more efficient structures. This includes shifting resources from human capital to automation.

Declining Consumer & Investor Confidence

With news of mass layoffs, consumer sentiment is dropping. This in turn leads to reduced discretionary spending and a more cautious investment climate, fueling a feedback loop that justifies further layoffs.

AI & Automation Reshaping Employment Trends

AI is not just a reason for layoffs but a transformative force in redefining job profiles. Repetitive jobs are being replaced, while there’s increased demand for highly skilled roles like data scientists and cybersecurity experts.

The Global Impact of Layoffs in 2025

The mass layoffs of 2025 extend beyond individual companies and industries, shaping labor markets, economic trends, and geopolitical dynamics.

1. Tech Industry Slowdown: A Shift from Hypergrowth to Efficiency

• The biggest job losses are concentrated in the technology sector, signaling an end to the hiring boom of the past decade.
• Between 2020 and 2022, tech companies aggressively expanded, anticipating sustained demand, especially for cloud computing, e-commerce, and remote work solutions. However, by 2023, demand softened, and excess hiring led to massive restructuring. This trend will persist in 2025, with Meta, Microsoft, and Google tightening their workforces while investing in automation and AI.
• Startups face even more challenges. Due to higher interest rates and reduced VC funding, many have shut down or drastically reduced their headcounts to survive.

2. Declining Consumer & Investor Confidence

• Layoffs, particularly in high-profile companies like Microsoft and Meta, lead to reduced consumer spending and economic caution. When thousands of white-collar workers lose jobs, it impacts housing markets, retail sales, and luxury spending.
• The stock markets react sharply to news of layoffs. Investors see workforce reductions as short-term cost-saving measures and red flags about growth prospects. With economic uncertainty, big-ticket purchases, home buying, and discretionary spending slow down, affecting real estate, hospitality, and automobiles.

3. AI & Automation Reshaping Employment Trends

• AI-driven job cuts aren’t just a tech industry problem—they’re transforming entire industries:
  • Finance: Investment banks and hedge funds are replacing human analysts with AI-driven trading systems.
  • Retail & Customer Service: AI chatbots are reducing the need for call center employees and sales support staff.
  • Healthcare: While doctors remain indispensable, AI diagnostics and robotic surgeries are reshaping supporting roles like medical transcription and imaging analysis.
• The result? Fewer traditional jobs but rising demand for AI-skilled professionals.

4. Political & Government Reactions to Mass Layoffs

Governments across the world are responding in different ways:

• United States: Lawmakers propose tax penalties for companies conducting mass layoffs while earning record profits. Tech hubs like Silicon Valley and Seattle see rising joblessness, forcing state governments to expand unemployment benefits.
• Europe: Stronger labor laws mean workers receive severance packages and job transition assistance.
• France and Germany propose regulations requiring companies to offer AI training to displaced workers.
• India & Southeast Asia: Countries like India and Indonesia benefit from Western firms outsourcing tech jobs instead of hiring domestically. The shift could create millions of new roles in offshore coding, AI support, and cloud computing.

5. Energy Sector & Industrial Layoffs Have a Broader Economic Impact

• The layoffs in BP and Akzo Nobel indicate a slowdown in the manufacturing and energy sectors. Falling demand for fossil fuels and the transition to renewables lead to job cuts in traditional oil and gas companies.
• In Germany, auto parts giant Continental’s ContiTech plans 580 job cuts, signaling weak demand in the automobile supply chain. Overall, manufacturing job losses often cause ripple effects, impacting supply chains and regional economies.

Analysts’ Take: What’s Next for the Job Market?

Market analysts warn that the layoffs of 2025 are not just cyclical adjustments but structural shifts in global employment.

1. Layoffs Will Continue as AI Becomes More Widespread

• Companies will not stop layoffs in 2025; they may intensify. A report from Statista predicts that AI could eliminate up to 30% of job roles in customer service, content writing, and IT support by 2030. Meta’s Mark Zuckerberg has already hinted that performance-based layoffs could become an annual exercise.

2. Companies Will Focus on Leaner, More Profitable Models

• The era of hypergrowth and reckless hiring is over. Firms are focusing on lean, high-efficiency, smaller, but more productive teams. Example: Microsoft’s performance-based layoffs show a shift toward rewarding only top performers and letting go of underachievers.

3. The Future of Jobs Lies in AI & Automation-Proof Skills

• The fastest-growing roles will be AI development, cybersecurity, and renewable energy.
• Job seekers will need to reskill to remain employable:
  • Cybersecurity Analysts: AI-generated threats are increasing, creating a demand for experts in digital security.
  • Data Scientists & AI Engineers: The AI boom makes machine learning engineers some of the most sought-after professionals.
  • Sustainability & Renewable Energy Jobs: As companies shift to green energy, jobs in solar, wind, and carbon capture technology will increase.

4. Governments Will Introduce Workforce Transition Policies

• Countries will start investing in retraining programs for laid-off workers. The European Union is ahead in AI regulation, requiring firms to train displaced workers. In the U.S., federal agencies are pushing for tax incentives to encourage companies to hire AI-augmented workers instead of replacing them.

5. Investors Will Be Wary of Layoff-Driven Cost-Cutting

• Initially, mass layoffs boost company profits in the short term. However, investors are starting to question:
  • Are companies cutting too deeply, sacrificing long-term innovation?
  • Will smaller workforces struggle to keep up with competitors investing in AI-driven growth? The real test will be whether companies maintain profitability without compromising innovation and employee morale.

A Changing Workforce Landscape

The 2025 layoffs highlight a fundamental shift in employment trends worldwide. While some sectors shrink due to automation and economic challenges, new opportunities are emerging in AI, cybersecurity, and sustainable industries. For employees, the key takeaway is clear: Adaptability is critical.

• The future workforce must be highly skilled, tech-savvy, and AI-augmented. Reskilling & lifelong learning will become essential survival tools in an evolving job market.

Layoffs may provide short-term relief for companies, but long-term growth depends on retaining and retraining talent for the AI-driven economy. As we move deeper into 2025, the global job market will continue evolving—offering challenges and new opportunities for those prepared to adapt.

What Does the Future Hold for Workforce Reduction?

The reasons for layoffs in 2025 range from automation and AI adoption to macroeconomic pressures. While this causes short-term job losses, it also creates long-term demand for new skills. Employees must adapt through continuous learning and upskilling. Governments, on the other hand, need to develop policy frameworks to support workforce transitions.The critical question remains: will layoffs continue in 2025 and beyond? The answer is yes, especially in sectors disrupted by AI and changing global trade dynamics. However, with proactive steps by workers and employers alike, this can be a period of transformation, not just contraction.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

India’s car market has changed a lot in recent years, and the country’s passion for cars is taking on a new meaning, with SUVs emerging as the top choice. This change is fueled by shifting consumer preferences and economic growth.

More people, especially the growing middle class, see owning a car as a symbol of freedom. The number of cars on Indian roads jumped from 19 million in 2012 to 49 million in 2022, and car ownership per 1,000 people doubled from 17 to 34. But as cars become more common, their meaning is changing, reflecting a shift in how Indians view mobility and status.

Source: LiveMint

The Rise of SUVs in India

India’s SUV market is growing rapidly, valued at USD 18.13 billion in 2024 and expected to reach USD 33.85 billion by 2030, with a CAGR of 10.97%.

SUVs now dominate the Indian car market, accounting for over 50% of passenger vehicle sales in the 2023-24 fiscal year—a major jump from previous years. Just five years ago, hatchbacks accounted for one in two cars sold in India. Today, that number has dropped to one in four, while SUVs now make up more than 50% of new car sales. 

This shift is highlighted by Hyundai Motor, a South Korean company whose local arm recently raised $3.3 billion in India’s largest-ever IPO. 

Factors Driving the SUV Boom

The Role of Road Conditions in Boosting SUV Sales

One significant factor driving the surge in SUV sales is the state of India’s road infrastructure. Outside major cities, poorly maintained roads with large potholes and uneven surfaces are common. Additionally, across the country, road-traffic departments often install poorly designed speed bumps that can wreak havoc on both vehicles and passengers. 

Given these conditions, ground clearance—the distance between a vehicle’s underside and the road surface—has become a crucial factor for Indian car buyers. SUVs, with their higher ground clearance, are seen as the ideal choice to navigate these challenging road conditions without causing damage to the vehicle or compromising comfort.

Improved Road Infrastructure Fueling the SUV Boom

Despite the poor condition of roads in and around major cities, the rapid development of high-quality roads and highways across India has played a key role in the country’s SUV boom. In recent years, India has added tens of thousands of kilometers of well-built motorways, which has significantly enhanced travel opportunities. As a result, weekend getaways and day trips have become increasingly popular.

• According to Mahindra & Mahindra, a leading SUV manufacturer in India, a strong love for road trips has developed, with driving holidays now considered the most affordable vacation option.  Also, This shift in consumer preferences is evident in the remarkable success of Mahindra’s latest rugged off-roader, which received 176,000 bookings within the first hour of its release.

Safety Becomes a Key Priority for Indian Car Buyers

A significant shift in car buyers’ priorities is safety. Until recently, safety wasn’t a top concern, but the Tata Nexon changed that. This compact SUV was the first to earn a five-star safety rating in international tests, and it was prominently highlighted. Buyers began valuing safety over other features, especially with highways allowing higher speeds. The Nexon’s success made it India’s best-selling SUV from 2021 to 2023, and safety ratings now feature heavily in car ads.

Shifting Priorities in Car Purchases

A significant shift in car buying habits is the growing emphasis on value over cost. According to industry experts, earlier, buyers focused on mileage, but now they are more willing to pay extra for a better experience. The average price of a car increased by a third in the past five years, from 491,000 rupees to 659,000 rupees, driven by both rising car prices and a demand for higher-quality vehicles.

Rising Demand for Premium Features

The shift is also reflected in consumer choices, with top-end variants of cars now making up two-thirds of sales, up from less than half before the pandemic. This mirrors trends in other products, like mobile phones, where premium models such as the iPhone are seeing growth. The availability of easy financing allows buyers to focus on affordable monthly payments rather than high upfront costs.

Technology and Entertainment Drive Purchases

Consumers are also increasingly prioritizing technology in their cars. With the spread of affordable internet, even budget car buyers expect features like touchscreen consoles. Given the time spent in traffic, entertainment and tech features are now critical in purchasing decisions, and more decisions are now based on the tech offered in cars.

Government Support and Evolving Taxation Policies

Government initiatives, such as the implementation of the Goods and Services Tax (GST), have streamlined the tax process, making SUVs more affordable for consumers. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, which offers incentives for hybrid and electric models, has also prompted manufacturers to expand their portfolios with eco-friendly SUVs.

Advancements in Automotive Technology

Indian buyers are increasingly seeking vehicles that prioritize safety, fuel efficiency, and advanced technology. Modern SUVs cater to these preferences with features like driver assistance systems (ADAS), premium interiors, and panoramic sunroofs. In addition, advancements in engineering have made SUVs more fuel-efficient, addressing concerns over higher operational costs. 

Diverse Offerings: 

Automakers are introducing a wide range of SUV models across various price points, making them accessible to a broader segment of the population.

Source: LiveMint/ techsciresearch.com

Impact on Small Cars and Sedans

The surge in SUV sales has had a noticeable impact on other vehicle segments. The share of hatchbacks, once the staple of Indian car buyers, has declined to around 28% in FY24, down from higher percentages in previous years. Similarly, sedans have seen their market share slip to single digits, closing the year at 9% compared to 14.3% at the end of FY20.

timesofindia.indiatimes.com

Automakers Responding to the Trend

Recognizing the growing demand for SUVs, both domestic and international automakers are expanding their SUV portfolios:

• Maruti Suzuki: Traditionally known for its small cars, Maruti Suzuki has increased its focus on the SUV segment, with SUVs now accounting for approximately 22% of its sales, up from 11% at the end of the previous fiscal year.
  timesofindia.indiatimes.com
• Hyundai Motor India: Hyundai has been actively introducing new SUV models to cater to the rising demand. The company plans to launch its first locally-produced electric SUV by early next year and at least two gasoline-powered models by 2026. This strategy aims to regain market share amidst growing competition from domestic manufacturers.
  reuters.com
• Mahindra & Mahindra: Mahindra has experienced a significant boost in SUV sales, with a 19% increase in volumes, significantly outpacing the industry’s overall decline. The company’s SUV portfolio now makes up over 50% of India’s car sales.
  reuters.com

Challenges Ahead

While the SUV segment is booming, automakers face challenges such as:

• Intensifying Competition: The surge in SUV demand has led to increased competition among manufacturers, prompting continuous innovation and frequent model launches.
• Rising Costs: Higher raw material costs and increased expenses have led to higher car prices, which could impact consumer purchasing decisions. For instance, Maruti Suzuki faced a 15.5% increase in expenses, with inventory clearance costs reaching 6.8 billion rupees.
  reuters.com
• Economic Factors: Inflation and other economic factors can influence consumer spending power, potentially affecting the sustained growth of the SUV market.

The Road Ahead

The Indian automotive market is clearly gravitating towards SUVs, driven by changing consumer preferences and economic developments. As automakers adapt to this trend by expanding their SUV offerings, it will be interesting to observe how the market evolves and how other vehicle segments respond to this shift.

In conclusion, India’s transformation into an SUV-centric market reflects broader changes in consumer behavior and economic conditions. As the country continues to develop, the automotive landscape is likely to see further shifts, with SUVs playing a central role in shaping the future of mobility in India.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Know More:   SEBI registered investment advisory |  Stock investment advisor.

FAQ

India’s financial scenario is changing, especially with SEBI (The Securities and Exchange Board of India) stepping in to regulate financial influencers, or “finfluencers.” The goal is simple—ensure investors get reliable, unbiased advice and protect them from misleading information.

SEBI has issued a circular to clarify rules for regulated entities and individuals, aiming to stop illegal advisories posing as stock market education. As a result, many finfluencers are experiencing declining brand deals and overall influence.

This crackdown has caused brand deal rates to drop by 40-60%. Brands are now shifting their focus to long-term financial products and educational content, preferring to collaborate with influencers who offer reliable, risk-free advice on mutual funds, SIPs, and retirement planning. Source: moneycontrol.com

In this article, we’ll explore the impact of SEBI’s regulations on finfluencers and provide guidance on selecting a financial advisor who aligns with your needs.

SEBI’s Crackdown on Finfluencers

Social media has led to the rise of finfluencers—people who share financial advice on platforms like YouTube, Instagram, and Twitter. While some provide useful insights, others, without proper qualifications, may spread misleading information. To protect investors, SEBI wants finfluencers to register and follow set guidelines. It also plans to ban unregistered finfluencers from promoting mutual funds and stockbrokers. Source: moneycontrol.com

SEBI’s Key Restrictions

SEBI has now banned two major activities for unregistered influencers:

• Giving investment advice, directly or indirectly, without SEBI approval.
• Making claims about returns or performance without SEBI authorization.

SEBI’s Rules Impacting Financial Influencers

SEBI Bans Unregistered Investment Advisors	A circular issued on January 29, 2025, bans unregistered individuals from giving investment advice. This step aims to protect investors from misleading information and highlights the need for advice from registered professionals.
Earlier Restrictions on Unregistered Entities	While an earlier circular on October 22, 2024, had already restricted associations between registered and unregistered entities, this latest update aims to eliminate the practice of unregulated financial advice disguised as stock market education.
Three-Month Delay on Stock Price Data	According to experts, with SEBI mandating a three-month delay on stock price data, financial influencers who rely on real-time updates may lose relevance.
Regulatory Measures Aim to Curb Misinformation	These regulatory measures are designed to curb the spread of inaccurate financial advice and ensure investors can access reliable information. Consequently, finfluencers who fail to comply with these guidelines may lose brand partnerships and credibility.

Decline in Brand Deals and Earnings

Industry experts highlight that brand deals will take a hit since influencers can no longer directly promote mutual funds or specific stocks. This means a drop in both affiliate and promotional income. Many influencers earn a commission of around 2–5% when investors use their referral links, and this revenue stream will likely shrink.

Many followers turn to financial influencers for daily market updates. Without real-time content, engagement is expected to decline. People might not follow them as much as before, leading to fewer brand deals. Traders who depend on real-time updates may feel disconnected, affecting influencer-follower relationships.

Impact on Brand Collaborations

Experts believe that outdated stock prices will impact influencer marketing. Many brands use influencers to attract active traders, and the new regulations disrupt this approach. SEBI’s oversight has led to a cautious approach from brands, reducing the number of deals for financial influencers.

Before these regulations, influencers offering live market updates and stock tips commanded high rates—often ₹1-3 lakh per post. However, SEBI’s clampdown has led to a 40-60% drop in brand deal rates.  Source: Moneycontrol

Who Still Commands High Rates?

Finfluencers specializing in cryptocurrency, trading, or high-level financial planning still earn premium rates, ranging between ₹3 lakh and ₹12 lakh per collaboration. Experts also highlight how platform-based pricing varies—macro influencers might charge ₹1.5 lakh for an Instagram post, ₹2.5 lakh for a YouTube video, and ₹1 lakh for a Twitter post, depending on engagement levels.

Struggles for Smaller Finfluencers

Micro and mid-tier financial influencers are facing significant challenges. Many have seen their business models collapse due to the new regulations, forcing influencers and brands to rethink their approach. Brands are also reassessing their strategies to stay compliant with SEBI guidelines.

The Numbers Behind the Shift

According to Qoruz data, as of December 2024, India had 232,000 finance influencers. Only 5-10% of them focused on stock-market-related content. That means just 11,000 to 23,000 influencers discussed stocks, many of whom had already adapted to SEBI’s earlier restrictions.

As the influencer marketing landscape evolves, content creators and brands must navigate these new regulations carefully, focusing on compliance and long-term financial education rather than short-term market updates. Source: Moneycontrol

Adapting to New Guidelines

With SEBI’s evolving regulations, many financial influencers have successfully shifted their focus to broader financial literacy topics, such as smart money management, thrift strategies, and saving techniques. This change has also opened new brand collaboration opportunities beyond the stock market.

Exploring New Revenue Streams

According to experts, many financial influencers have started offering paid courses on topics like:

• How to start investing in mutual funds
• How to evaluate a mutual fund or stock
• Step-by-step guides on mutual funds and stocks

Subscription-based courses have emerged as a key monetization model. Additionally, influencers collaborate with asset management companies (AMCs) to conduct financial education sessions, creating valuable learning opportunities while diversifying their revenue streams.

Know More:  
SEBI registers investment advisory |  Stock investment advisory

The Challenge of Transition

Not all influencers find this transition easy. Many followers rely on financial influencers for daily stock market updates. Their audience mainly consists of traders or active investors. Shifting to broader financial content might reduce engagement and brand deal rates. 

A Positive Step for Investor Protection

While financial influencers adjust to these changes, SEBI’s regulations are seen as a much-needed safeguard for retail investors. Experts believe this move will prevent individuals from losing money by following unregistered influencers for stock tips.

This move will promote responsible financial education and allow credible creators to thrive. It will also focus on fact-based, long-term financial education rather than speculative stock tips.

The Importance of Choosing the Right Financial Advisor

With these regulatory changes, seeking financial advice from qualified professionals is more crucial than ever. A competent financial advisor can help you navigate complex financial decisions, plan for your future, and ensure that your investments align with your goals and risk tolerance.

Steps to Select the Right Financial Advisor

Identify Your Financial Goals

Before seeking an advisor, clearly define your financial objectives. Are you planning for retirement, saving for a child’s education, or looking to grow your wealth? Understanding your goals will help you find an advisor whose expertise aligns with your needs.

Verify Credentials and Registration

Ensure the advisor is registered with SEBI as a Registered Investment Advisor (RIA) or holds relevant certifications. Registered advisors must adhere to regulatory standards, providing an added layer of security for investors. moneycontrol.com

Understand the Advisor’s Fee Structure

Financial advisors may charge fees in various ways, including:

Fee-Only:

A flat fee or hourly rate for their services.

Commission-Based:

Earnings are based on the financial products they sell.

Fee-Based:

A combination of fees and commissions. Understanding the fee structure is essential to identify potential conflicts of interest and ensure transparency. moneycontrol.com

Assess Experience and Expertise

Look for advisors with a proven financial planning and investment management track record. Experience in handling diverse financial situations can be invaluable. Don’t hesitate to ask for references or case studies demonstrating their expertise.

Evaluate Communication and Compatibility

Effective communication is key to a successful advisor-client relationship. Your advisor should be able to explain complex financial concepts in simple terms and be responsive to your questions. Additionally, ensure that their communication style aligns with your preferences.

Check for Fiduciary Responsibility

Prefer advisors who operate under a fiduciary duty, meaning they are legally obligated to act in your best interest. This ensures that the advice you receive is unbiased and focused on your financial well-being.

Seek Transparency and Disclosure

A trustworthy advisor will be transparent about their investment strategies, potential risks, and any affiliations that might influence their recommendations. Full disclosure helps build trust and allows you to make informed decisions.

Consider the Advisor’s Approach to Financial Planning

Understand how the advisor develops financial plans. Do they offer comprehensive planning that covers various aspects of your financial life, or do they focus solely on investments? Ensure that their approach aligns with your expectations and needs.

Review Client Testimonials and Reviews

Seek feedback from current or former clients to gauge the advisor’s reliability and effectiveness. Online reviews and testimonials can provide insights into the advisor’s reputation and client satisfaction.

Conclusion

SEBI’s recent actions to regulate finfluencers highlight the importance of obtaining financial advice from qualified and trustworthy sources. By following the steps outlined above, you can select a financial advisor who meets regulatory standards and aligns with your personal financial goals. 

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

In a major step towards digital currency adoption, MobiKwik has rolled out a full-scale e-rupee wallet for Android users in collaboration with the Reserve Bank of India (RBI) and Yes Bank. This launch marks a significant milestone in India’s fintech sector, enabling users to easily transact with the country’s Central Bank Digital Currency (CBDC).

This follows the RBI’s April 2024 decision to allow non-banking institutions to access CBDC, expanding beyond banks. As of November 2024, MobiKwik, which holds a 23% share in PPI (Prepaid Payment Instrument) wallet transactions, was specially invited to join the project.

The e-Rupee (e₹) wallet is now available for all Android users, allowing peer-to-peer and merchant payments. It works seamlessly with UPI, letting users transact up to ₹50,000 daily, with a ₹10,000 limit per transaction. Source: Daily Excelsior/The Hindu Businessline

What is the e-Rupee?

The e-Rupee is India’s official digital currency, introduced by the Reserve Bank of India (RBI) as a digital version of the traditional rupee. Unlike cryptocurrencies, it is regulated and centralized, ensuring stability. The e-rupee complements physical cash by offering a digital alternative, making transactions easier and promoting financial inclusion.

Features of MobiKwik’s e-Rupee Wallet

MobiKwik’s e-Rupee wallet is designed with user convenience in mind. Key features include:

Seamless Transactions	Users can easily send and receive funds to other e-Rupee wallets. The UPI integration also enables transactions with regular bank accounts, connecting digital and traditional banking.
Peer-to-Peer and Peer-to-Merchant Payments	The wallet has a simple and user-friendly design, making it easy for everyone to navigate and use, no matter their tech skills.
E-Rupee Wallet Transaction Limits and Denominations	The e-rupee wallet currently offers a daily transaction limit of ₹50,000 and a per-transaction limit of ₹10,000. It supports various denominations, including 50 paise, ₹1, ₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, and ₹500 in e-rupee.
Access to E-Rupee Wallet	Existing MobiKwik customers who have completed their KYC can instantly access the e-rupee wallet. New users, however, will need to undergo video KYC verification before gaining access.
User-Friendly Interface	The wallet has a simple and user-friendly design, making it easy for everyone to navigate and use, no matter their tech skills

MobiKwik’s Growth and Market Presence

MobiKwik, which debuted publicly on the NSE and BSE in December 2024, has established a strong foothold in the digital payments sector. The company currently serves a vast user base of 167 million registered customers and caters to 4.40 million merchants across India. Source:  thehindubusinessline

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik has evolved beyond digital wallets to offer various financial services. Over the years, it has expanded its portfolio to include credit services, investment options, and insurance products, positioning itself as a comprehensive fintech platform.

How to Get Started with MobiKwik’s e-Rupee Wallet

For Android users eager to experience the future of digital transactions, getting started is straightforward:

Download the App:

Visit the Google Play Store and search for the MobiKwik app. Ensure it’s the latest version to access the e-Rupee wallet features.

Registration:

If you’re new to MobiKwik, sign up using your mobile number. Existing users can log in with their credentials.

Activate the e-Rupee Wallet:

Within the app, navigate to the e-Rupee section and follow the on-screen instructions to activate your digital wallet.

Add Funds:

Link your bank account or use UPI to add funds to your e-rupee wallet.

Start Transacting:

You’re now ready to send and receive e-Rupee seamlessly.

The Significance of MobiKwik’s Initiative

MobiKwik’s introduction of the e-Rupee wallet is more than just a new feature; it’s a step towards a digitally empowered India. By facilitating easy access to the CBDC, MobiKwik is:

• Promoting Financial Inclusion: Digital wallets like this ensure that even those without traditional banking access can participate in the digital economy.
• Enhancing Transaction Efficiency: Digital transactions reduce the need for physical cash, leading to faster and more secure payments.
• Supporting the RBI’s Vision: By promoting the e-rupee, MobiKwik aligns with the RBI’s goal of a less-cash economy, paving the way for broader CBDC adoption.

Security Measures in Place

Understanding the importance of security in digital transactions, MobiKwik has implemented robust measures to protect users:

• Data Encryption: All transactions are encrypted, ensuring user data remains confidential.
• Two-Factor Authentication (2FA): An added layer of security requiring users to verify their identity during critical actions.
• Regular Audits: Routine security audits are conducted to identify and rectify potential vulnerabilities.

Looking Ahead: The Future of Digital Currency in India

The launch of MobiKwik’s e-Rupee wallet is a testament to the rapid evolution of India’s financial ecosystem. As more users and merchants adopt digital currencies, we can anticipate:

• Wider Acceptance: Increased merchant adoption of e-Rupee payments, making it a common transaction method.
• Innovative Financial Products: Development of new financial services tailored around digital currencies.
• Regulatory Developments: Continued efforts by authorities to create a conducive environment for digital currency growth.

Conclusion

MobiKwik’s full-scale e-rupee wallet for Android users is a significant leap toward a digital-first economy. By embracing this innovation, users can enjoy a more streamlined, secure, and inclusive financial experience. As digital currencies become more integrated into our daily lives, tools like MobiKwik’s e-Rupee wallet will play a crucial role in shaping the future of transactions in India.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

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FAQs

Central Depository Services Limited (CDSL) shares saw a sharp drop of nearly 12% after announcing their third-quarter (Q3) results for the fiscal year. The stock hit a three-month low of ₹1,242.50 on January 28, driven by lower-than-expected Q3 earnings.

CDSL reported a 21.5% rise in consolidated profit after tax, reaching ₹130 crore. Although its year-on-year income demonstrated notable growth, the quarter-on-quarter performance declined. 

The company’s weaker performance fell short of market expectations, triggering a sell-off as investors expressed disappointment. Let’s explore the reasons behind this significant dip and what this means for the investors and the broader market.

CDSL’s Q3 Performance

CDSL, one of India’s leading securities depositories, reported lackluster financial results for the quarter ending December 2024. The company’s net profit and revenue growth failed to meet analysts’ estimates, which dampened market sentiment. Here are some of the key highlights of the results:

Strong Year-on-Year Growth, but Quarter-on-Quarter Decline for CDSL

CDSL reported a total income of ₹298 crore for Q3 FY25, reflecting a substantial year-on-year (YoY) increase of 26.3% compared to ₹236 crore in the same period last year.

On a standalone basis, the net profit for Q3 FY25 was ₹105 crore, reflecting a year-on-year (YoY) growth of 22.09%. However, it recorded a quarter-on-quarter (QoQ) decline, falling to ₹278 crore for the quarter ending December 2024, compared to ₹322 crore in the September 2024 quarter. Source: Economic Times/Screener

The profit also declined to ₹130 crore in the December 2024 quarter, compared to ₹162 crore in the September quarter, reflecting a 20% decrease. Source: Moneycontrol

Additionally, the number of net new demat accounts opened during the quarter was the lowest since Q4 FY24. New account openings in Q3 stood at 92 lakh, a decline from the 1.18 crore accounts added in September. Source: Moneycontrol

Market experts attributed the sell-off to several factors:

Earnings Miss:

The failure to meet earnings expectations was the primary driver behind the negative sentiment.

High Valuations:

CDSL’s stock was trading at relatively high valuations before the results, which magnified the impact of the earnings disappointment.

Sectoral Weakness:

Broader concerns about the depository sector, including regulatory changes and market activity levels, added to the pressure on the stock.

CDSL: A Pillar of India’s Market Infrastructure

CDSL plays a vital role as an Indian Market Infrastructure Institution (MII), enabling electronic holding and securities transactions while facilitating trade settlements. It serves many capital market participants, including depository participants, issuers, investors, RTAs, clearing corporations, and exchanges.

As India’s leading depository services provider, CDSL is globally recognized as the only listed depository in Asia, managing over 14.65 crore accounts.

CDSL Share Price Performance

In the past year, CDSL’s shares have risen by 54.85%. Over the last six months, the stock gained 12.03%, but it faced a minor decline of 3.41% in the past three months. However, CDSL’s returns dropped sharply by 24.14% in the last month.

What Analysts Say?

Analysts have offered mixed reactions to CDSL’s Q3 performance. While some believe the earnings miss is a temporary blip, others are more cautious about the company’s outlook. Here’s what they’re saying:

• Near-Term Challenges: Brokerages highlight that slow revenue growth and margin pressures may continue in the short term due to macroeconomic challenges and regulatory uncertainties.
• Long-Term Potential: Analysts are optimistic about CDSL’s future, which is driven by the growing use of demat accounts and a rising retail investor base in India.
• Target Price Revisions: After the Q3 results, several analysts lowered their target prices for CDSL’s stock. One prominent firm, for example, reduced its target from ₹700 to ₹600, indicating a more cautious approach.

Investor Concerns and Sentiment

The steep drop in CDSL’s stock price has raised concerns among investors, particularly retail shareholders. Many question whether the current dip presents a buying opportunity or if the stock will face further downside.

• Short-Term Uncertainty: The stock’s poor performance and lack of immediate growth triggers may discourage short-term investors.
• Long-Term Growth: Long-term investors might see this dip as a chance to buy at lower prices, supported by strong growth prospects in India’s capital markets.

What Lies Ahead?

CDSL’s ability to navigate the current challenges will determine its trajectory. Key focus areas for the company include:

• Enhancing Operational Efficiency: Streamlining operations and controlling costs will improve profitability.
• Expanding Revenue Streams: Diversifying into new areas, such as value-added services, can help mitigate the impact of fluctuations in core revenue streams.
• Leveraging Market Growth: As India’s capital markets continue to grow, CDSL can capitalize on the increasing investor participation and expanding financial instruments.

Conclusion

CDSL’s Q3 performance has undoubtedly disappointed the market, resulting in a sharp correction in its stock price. While the short-term outlook appears challenging, the company’s strong market position and long-term growth drivers offer hope for a recovery. For investors, the key will be to weigh the near-term risks against the long-term potential before making any decisions.

As always, staying informed and monitoring the company’s performance in subsequent quarters will be essential for making well-informed investment choices.

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Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

DeepSeek, an AI app, made the world tumble in a single day. Tech-giant Nvidia lost $600 billion in market value in the biggest wipe-out in history, while the company CEOs lost over $20.1bn.

This Chinese startup has challenged industry norms, causing one of the sharpest financial market corrections a $589 billion valuation wipeout in a single day in recent history since the pandemic.

DeepSeek’s new AI model, developed with unprecedented efficiency and cost-effectiveness, has raised eyebrows and rattled the dominance of tech stalwarts like Nvidia, Microsoft, and Alphabet. 

This blog unpacks how DeepSeek’s meteoric rise disrupted the tech ecosystem, how it hit Wall Street, and the future of AI innovation.

The Rise of DeepSeek

Founded just two years ago, DeepSeek has already managed to leapfrog industry giants with its latest large-language model (LLM). Dubbed the R1, this model boasts advanced processing capabilities at a fraction of the cost compared to its Western competitors. The release of its V3 model, containing 671 billion parameters, was completed in just 55 days for $5.58 million—a stark contrast to the billions spent by major players like OpenAI (CBS News).

Within hours of its debut, DeepSeek’s AI assistant became the most downloaded app on Apple’s App Store in the U.S., surpassing market leaders such as ChatGPT. Social media platforms lit up with amazement over the AI’s ability to answer complex queries, solve logic puzzles, and even generate code. 

This widespread adoption saw servers crash due to overwhelming demand, leading the company to restrict registrations to China (Livemint).

The Numbers That Shocked Wall Street

DeepSeek’s breakthrough triggered a sharp selloff in tech stocks, sparking what many analysts have dubbed “AI Reckoning Day.” Nvidia, the pioneer of AI chips, suffered the most significant blow, with its shares plummeting 17% in a single day, erasing $593 billion from its valuation. CEO Jensen Huang personally lost $21 billion of his net worth (Financial Express).

The ripple effect spread globally. The Nasdaq Composite Index fell 4.7% in its steepest decline of 2025, wiping billions more in market capitalization from tech-heavyweights. The Nasdaq 100 closed with a decline of 3%, wiping out a year’s worth of gains and resulting in losses of up to $1 trillion in just one day. Companies in the energy sector, which anticipated benefiting from the surge in AI demand, saw their stock values drop. 

Asian markets were equally impacted: Japan’s Nikkei 225 slid 2.3%, with Tokyo-based semiconductor suppliers like Advantest and Tokyo Electron experiencing steep declines of 10% and 5.3%, respectively (WSJ). 

Tech Stocks Suffer

The Nasdaq index saw significant declines, with Broadcom Inc., a leading chipmaker, dropping 17.4%. Microsoft, which supports ChatGPT, followed with a decrease of 2.1%, and Google’s parent company, Alphabet, fell by 4.2%. Additionally, the Philadelphia Semiconductor Index (SOX), a key indicator for the tech industry, dropped almost 6%, highlighting a general concern about the prospects for established companies in the AI arena (Financial Express).  

This investor exodus reflects growing doubts about whether the potential returns justify the significant investments in AI.

Social Media Uproar

The chaos spilled over to social media, where platforms like X (formerly Twitter) and Reddit were flooded with discussions about DeepSeek’s implications. Posts with captions like “DeepSeek has just rewritten the rules of AI development” and “Nvidia’s empire is shaking—are we witnessing the rise of a new tech superpower?” went viral.

A particularly noteworthy post on X read:

“In one day, a tiny Chinese startup managed to upend everything we thought we knew about AI. The tech world will never be the same again.”

Meanwhile, LinkedIn became the hub for industry professionals debating how DeepSeek’s innovations could democratize AI and whether the U.S. government would step in to regulate Chinese AI exports (Livemint).

Challenges: Limiting Growth or Strategic Play?

Despite its monumental success, DeepSeek has not been without its challenges. The company restricted registrations after an alleged cyberattack and has been accused of censoring politically sensitive content on its platform. 

While this has raised questions about its commitment to transparency, DeepSeek has largely justified these measures as necessary to maintain operational stability (CBS News).

Critics argue that these restrictions might limit DeepSeek’s ability to compete in Western markets. Still, others believe this is a calculated strategy to solidify its dominance within China before taking on global competitors.

A Turning Point for AI and Wall Street

The emergence of DeepSeek has changed the game’s rules, proving that innovation is not confined to Silicon Valley. DeepSeek has shown the world that smaller players can disrupt even the most established tech empires by creating a cost-efficient, high-performance AI model.

For Wall Street, this is a stark reminder that the rapid pace of innovation can overturn the most bullish assumptions. For now, all eyes are on DeepSeek and its potential to reshape the AI landscape—not just in China but worldwide.

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Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Eco Recycling Limited, a leader in the waste management sector, has announced a new chapter in its growth story. On January 23, the company revealed plans to raise funds through a Qualified Institutional Placement (QIP). This strategic move aims to bolster its operational capacity and unlock new opportunities in the rapidly evolving sustainability landscape.

The announcement follows a spectacular five-year journey, during which the stock delivered an astounding 2000% return to investors.

What is QIP, and Why is it Important?

A Qualified Institutional Placement (QIP) is a capital-raising method tailored for publicly traded companies. It enables these companies to issue equity shares or securities to Qualified Institutional Buyers (QIBs), such as mutual funds, insurance companies, and other large institutional investors. Governed by the Securities and Exchange Board of India (SEBI), this mechanism ensures transparency and compliance while providing companies with an efficient way to raise funds without significantly diluting control.

Eco Recycling Limited’s filing detailed its intent to issue equity shares valued at ₹10 each (Source: Livemint). The company’s board approved the proposal and enlisted GYR Capital Advisors Pvt Ltd as the lead manager for the issue. Vidhigya Associates will serve as legal counsel to oversee compliance with SEBI regulations and the Companies Act 2013.

Stock Performance: A Star Performer

Eco Recycling Limited has been a beacon of success for investors, offering phenomenal returns over the years:

• Five-Year Returns: Rs.34, providing a return of 2256% (Source: Screener.in).
• One-Year Returns: Rs.387, providing a return of 104% (Source: Screener.in).

However, the stock’s year-to-date (YTD) performance shows a decline of 16.81%, indicating some recent market corrections. As of January 26, 2025, the stock closed at ₹807.40, down 2.78% from the previous session. It reached its 52-week high of ₹1,215.10 on August 29, 2024, and its 52-week low of ₹378 on January 25, 2024. The company’s current market capitalization stands at ₹1,558.02 crore (Source: Livemint).

The Secret Behind Eco Recycling’s Success

Eco Recycling Limited has positioned itself as a trailblazer in the waste management industry, leveraging innovative recycling techniques and sustainable practices. With the growing global emphasis on environmental conservation and the circular economy, the company has tapped into a market ripe for expansion. This combination of vision and execution has fueled its multibagger status, attracting investors seeking long-term growth.

Growth Through QIP

The QIP fundraising initiative signals Eco Recycling’s plan to scale new heights. The capital infusion may support technological advancements, operational expansion, and market penetration. Given the company’s track record, this move could lay the groundwork for continued growth in an increasingly critical industry of global sustainability efforts.

While recent market corrections may give some investors pause, the company’s strong fundamentals and growth-oriented strategy try to position it as a compelling opportunity for those with a long-term perspective.

Key Takeaways

Eco Recycling Limited’s journey from an under-the-radar stock to a market leader underscores the importance of innovation, adaptability, and strategic planning. The announcement of a QIP is not just a financial maneuver but a step toward strengthening its position in the sustainability sector.

The company remains a promising prospect for investors. However, as with any investment, a thorough analysis of its performance and plans is essential to align with individual financial goals and risk tolerance.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

The electric vehicle (EV) revolution is no longer a vision of the future—it is today’s reality, driving significant transformations in the automotive industry. 2025 will be a game-changer for the electric vehicle (EV) industry, with a remarkable shift that could redefine its future.

 EV launches in India are expected to outnumber petrol and diesel cars for the first time. Of the 28 vehicle launches planned for the year, 18 will be EVs. Major players like Kia, Maruti Suzuki, and Hyundai are gearing up for substantial growth, driven by government incentives and significant improvements in EV infrastructure.

The number of EVs scheduled for launch this year is nearly four times higher than the 4–5 models introduced over the past two years. It also surpasses the total vehicle launches (EV and ICE) of 11 in 2023 and 15 in 2024. Source: Economic Times

Growing Momentum in India’s Electric Vehicles Market

As per Fortune Business Insights, the Indian Electric Vehicles market is projected to grow significantly, rising from USD 3.21 billion in 2022 to an impressive USD 113.99 billion by 2029, with a compound annual growth rate (CAGR) of 66.52%. 

In FY24, India recorded EV sales of 1.75 million units as compared to 1.52 million units in FY23, marking a robust year-on-year increase of 40.31%. Industry forecasts indicate that electric vehicle sales will grow at a compound annual growth rate (CAGR) of 43%, reaching 9.32 million units by 2030. Electric SUVs are expected to account for up to 61% of this demand.

To further accelerate EV adoption, the government has introduced the PM E-DRIVE scheme, allocating ₹10,900 crore (USD 1.30 billion) for its implementation from October 1, 2024, to March 31, 2026. This initiative focuses on enhancing EV adoption, developing charging infrastructure, and boosting Electric Vehicle manufacturing nationwide. Source: IBEF/Economic Times

Automakers Gearing Up for the EV Boom

The automotive industry is witnessing a paradigm shift, with traditional manufacturers and startups ramping up their EV offerings. Companies like Tata Motors, Mahindra Electric, and Ola Electric have already launched competitive models that cater to diverse market segments. Global players such as Tesla and BYD are also eyeing the Indian market, further intensifying competition.

In addition to launching new models, automakers invest in research and development to improve battery efficiency, reduce production costs, and enhance overall performance. 

Industry experts predict that zero-emission vehicles will be the primary drivers of growth in 2025, contributing to over 50% of the incremental sales of 200,000 units in the passenger vehicle segment. As a result, the share of EVs in total car sales is projected to double, reaching 4% by the end of the year. Source: IBEF/ Economic Times

Boosting Charging Infrastructure For EV Adoption 

One of the critical factors for the widespread adoption of Electric Vehicles is the availability of reliable charging infrastructure. As of now, India is making progress in this area, with public and private stakeholders collaborating to set up charging networks. 

According to Industry experts, manufacturers are focused on expanding and advancing the electric vehicle market in India. Maruti Suzuki is taking proactive steps to support the upcoming launch of its first electric vehicle by installing fast chargers at its dealerships every 5-10 km in the top 100 cities. 

Meanwhile, Hyundai, the Korean automotive giant, anticipates a significant rise in the share of electric vehicles in India’s car market. They expect India’s Electric Vehicles market share to grow to 15-20% by 2030, up from just 2% in 2024. They attribute this growth to government initiatives, like the reduced GST rate on EVs and the introduction of new products by several original equipment manufacturers (OEMs).

To tap into this potential, Hyundai has started assembling battery packs in India to keep prices competitive and has partnered with a local supplier to source cells for electric cars slated for release in the coming years. Additionally, the company is working towards setting up 600 fast chargers along major highways across India by 2030. Source: Economic Times

Government Policies Fueling the Transition

The Indian government’s commitment to electrification has been instrumental in paving the way for a robust EV ecosystem. Policies like the Production-Linked Incentive (PLI) scheme for 

Advanced Chemistry Cell (ACC) batteries and tax benefits on EV purchases have made electric vehicles more accessible. Moreover, the government’s target of achieving 30% EV penetration by 2030 underscores its dedication to reducing carbon emissions and promoting green mobility.

Globally, countries like the United States, China, and those in the European Union have also implemented stringent emission norms and offered subsidies to encourage the adoption of electric vehicles. This global momentum is expected to ripple across markets, including India, propelling the sector toward exponential growth.

Sustainability and Environmental Impact

One of the primary drivers behind the shift to EVs is their potential to reduce greenhouse gas emissions significantly. According to experts, transitioning to electric mobility could help India achieve its climate goals, including reducing carbon intensity by 33-35% by 2030. EVs contribute to cleaner air and lower noise pollution, creating a more sustainable urban environment.

Using renewable energy, such as solar and wind power, to charge Electric Vehicles can increase their environmental benefits. As more renewable energy is added to the grid, electric vehicles’ carbon footprints will continue to decrease.

Challenges and the Road Ahead

Despite the promising outlook, the EV industry faces several challenges. Some of the hurdles include high initial costs, limited charging infrastructure, and dependency on imported components. Additionally, consumer perceptions regarding the reliability and longevity of EVs remain a concern.

These challenges can be overcome through collaboration between governments, private companies, and research institutions. For example, locally producing batteries and other parts could lower costs and create jobs, boosting economic growth.

The Role of Technology in Shaping the Future

The development of solid-state batteries, with higher energy densities and faster charging times, promises to revolutionize the EV landscape. These innovations are expected to address key concerns, such as range and charging time, making electric vehicles even more practical for everyday use.

The Rise of Electric Two-Wheelers and Commercial Vehicles

While passenger cars have dominated the EV narrative, electric two-wheelers and commercial vehicles are emerging as significant contributors to the market. In India, two-wheelers account for a substantial portion of vehicle sales, making their electrification a crucial step toward achieving sustainable mobility. Companies like Hero Electric and Ather Energy are leading the charge in this segment.

Similarly, the electrification of commercial vehicles, such as buses and trucks, is gaining momentum. These vehicles play a vital role in reducing emissions from the transportation sector and are supported by government incentives and corporate commitments to sustainability.

Consumer Awareness and Adoption

The success of the EV industry hinges on consumer acceptance. Educating consumers about the benefits of EVs—including lower operating costs, reduced environmental impact, and government incentives—is crucial. Test drives, advertising campaigns, and influencer endorsements can significantly build trust and drive adoption.

Driving into a Greener Future

Electric vehicles are at a turning point, with 2025 set to be a transformative year. Governments, automakers, and consumers are working together to move towards a sustainable, electric future. While challenges remain, technological progress, infrastructure, and policies offers hope. As we approach 2025, the goal of a cleaner, greener transportation system is becoming a reality. The EV revolution is not just about how we travel; it’s about creating a better future for the planet and future generations.

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Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.