June 28, 2025

Industry

TRAI May 2025 Report: Jio Leads User Growth; Airtel Shows Modest Gains, Vodafone Idea and BSNL Continue to Lose Subscribers

India’s telecom sector witnessed modest overall growth in May 2025, driven primarily by Reliance Jio, which added 2.7 million new subscribers, according to the latest data released by the Telecom Regulatory Authority of India (TRAI). The total mobile subscriber base in the country rose by 1.66 million, reaching 1.168 billion, with urban markets leading the growth trajectory. 📈 Operator-wise Subscriber Trends (May 2025) 🌐 Fixed Wireless Access (FWA) and Broadband Performance Fixed broadband subscriptions grew 6.46% month-on-month, reaching 44.09 million in May (April: 41.41 million), showcasing rising demand for home internet services. 📊 Market Share and Active Subscriber Insights Active subscribers, who are the most valuable for operators, accounted for 93.03% of total wireless subscribers in May, a rise from 92.56% in April. 🔄 Mobile Number Portability (MNP) Activity 📝 Key Takeaways:

Industry

Making auto-retail ecosystem resilient

India’s auto-retail industry is not merely a transactional network—it’s the backbone of the Indian economy, catalyzing economic growth, employment generation, and technological innovation across both urban and rural India. Valued at ₹9 lakh crore in FY25, this thriving sector is a testament to resilience, adaptability, and opportunity. Every incremental growth in this industry translates into millions of livelihoods, underscoring its massive socio-economic impact. At the core of this sector are 9,000 dealer principals, operating through 15,000 authorised dealerships and over 30,000 outlets across vehicle segments—two-wheelers, three-wheelers, passenger vehicles (PVs), commercial vehicles (CVs), construction equipment, and tractors. This widespread network contributes over 5 million direct jobs, enabling rural employment and skill development without migration, thanks to robust on-the-job training models. Crucially, for every job at an OEM (Original Equipment Manufacturer) facility, the auto-retail ecosystem supports 18 downstream jobs in sales, service, logistics, and vehicle finance—a remarkable employment multiplier effect. This makes auto-retail one of the most significant contributors to skilled and semi-skilled job creation in India. Robust Fiscal Contribution and Unmatched Reach The sector also delivers substantial returns to the government, generating GST collections of ₹3.3 lakh crore and an additional ₹88,113 crore in road tax revenues in FY25. In many districts, dealership density stands at 2.05 per 100,000 people, twice the rate of most organised retail verticals, ensuring last-mile delivery of mobility solutions and after-sales services. Diverse Revenue Streams and Strong Service Ecosystem The revenue composition of the Indian auto-retail sector reflects its deep product diversity and integrated services model: Service-wise, new vehicle sales contribute 75–80% of dealership turnover, while spares, accessories, and service operations account for 15–20%. Additionally, vehicle finance and insurance packages are bundled in over 85% of PV sales, enhancing both dealer profitability and customer convenience. Legacy, Employment, and Expansion With more than 60 dealerships operating for over 50 years, India’s auto-retail sector balances legacy and innovation. On average, a passenger vehicle showroom employs 100 individuals, and a two-wheeler outlet sustains 50 jobs, reinforcing the sector’s role in grassroots employment generation. From FY21 to FY25, retail volumes increased from 22 million to 26 million units, delivering a CAGR of over 4%, with projections of 7–9% growth in FY26. The overall market size is expected to cross ₹9.7–9.9 lakh crore, reaffirming the industry’s growth trajectory. The Road Ahead: Digitisation and Green Mobility India’s auto dealerships must now evolve into digital-first experience centers, leveraging virtual reality (VR), AI-powered lead scoring, and predictive inventory analytics. The transition to green mobility—including electric vehicles (EVs), hybrid, CNG, and hydrogen-powered options—is a pivotal opportunity for the sector. Growth in Tier-2 and Tier-3 markets, driven by better rural infrastructure and last-mile delivery systems, will unlock vast new customer segments. Policy Support and Industry Collaboration To accelerate this evolution, policy interventions are critical. These include: The Federation of Automobile Dealers Associations (FADA) is committed to working with government bodies, OEMs, and industry stakeholders to craft balanced regulations that drive innovation, ensure consumer protection, and foster inclusive growth.

Industry

Luxury room rates climb, but there’s scope for more

The luxury hospitality sector seems to be experiencing an unprecedented boom, with EIH, which operates the Oberoi and Trident hotels, reporting its best-ever financial performance in FY25. Riding on a steady rise in demand for premium stays, the company’s income per available room surged 70% in the last two years, touching nearly Rs 21,000 a night. Despite the record growth, Vikram Oberoi, CEO of EIH, said luxury hotel tariffs still have room to grow. “(Given) the quality of hotels in India, both with our hotels and others, we are significantly under-priced, particularly in Delhi, Mumbai and Bengaluru,” Oberoi said during a recent earnings call. Driving this surge in demand are a mix of evolving travel trends and high-profile events. From destination weddings and IPL games to corporate retreats and global summits like the G20 meet and fintech festival, luxury hotels are finding themselves booked months in advance. Even family holidays and quick weekend getaways are contributing to the squeeze in availability.“There are significant changes that are taking place in the Indian economy where wealth and affluence is increasing and a desire for quality accommodation that provides exceptional services to guests is rising,” Oberoi noted. Still, luxury inventory remains under-equipped. Of the 199,000 branded hotel keys in the country, only 17% fall in the luxury bracket. In comparison, China boasts seven times more luxury rooms, and even Thailand has 1.5 times as many. The supply pipeline has remained slow, with fewer than 100 luxury hotels opening in the country over the past decade, according to data from HVS. Mandeep S Lamba, president and CEO (South Asia) at HVS Anarock, highlighted a change in traveller priorities as a catalyst for this growth. “The post-pandemic mindset shift, where travellers increasingly prioritise quality, exclusivity, wellness, and meaningful experiences, has accelerated demand in this space. The big fat Indian wedding has also become a major contributor,” he said. Hotel chains are responding. Marriott International, which has the largest footprint among hotel companies in the country, has over 20 new luxury properties under development. These include JW Marriott resorts in Shimla, Pahalgam, and Ranthambore, as well as The Ritz-Carlton Udaipur and The Mumbai Edition.However, construction timelines of three-to-five years mean new supply will be slow to arrive. Meanwhile, demand continues to race ahead. A recent IDBI Capital report forecasts that luxury hotel room demand will register at a compound annual growth rate of 10.6% through FY28, while supply is expected to expand at just 5.9%. For international visitors, India’s luxury room rates, averaging around $200 a night, are still well below the $400-500 range seen in mature global markets. “While inbound travel is yet to return to full strength, this segment remains highly active and is expected to bounce back in full force, further boosting rate potential,” Lamba added.

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