India’s automobile industry has witnessed a dip is sales number in the passenger and commercial vehicle segments in FY24 and H1FY25. However, experts from CareEdge Ratings opine that this dip is no alarming for the overall industry as it is a cyclical downturn and the industry will bounce back. 
Commenting on the same during a virtual press conference, Senior Director Ranjan Sharma said, “The automobile sector has exhibited a mixed trend in H1FY25. While the two-wheeler industry has zoomed ahead at a healthy year-over-year growth rate of 16 percent, primarily driven by strong rural demand on the back of higher rural income levels, the passenger vehicle (PV) industry after witnessing healthy growth in past 2-3 years, has entered the slow lane during H1FY25 with wholesale volume growth slowing down to 2 percent on year-over-year basis due to subdued demand for entry-level cars and elevated inventory levels at dealer’s end. While two-wheeler volume growth is expected to remain healthy during FY25, overall PV volume growth is expected to continue to remain muted in FY25.”
“The commercial vehicle (CV) sector experienced significant growth post-pandemic, with approximately 30 percent growth in FY22 and FY23. FY22's growth was driven by a low base effect due to the pandemic's impact in FY21, while FY23 saw robust growth on a higher base. However, the momentum appears to have plateaued. Last year, the sector recorded a slight decline of around 1 percent and the current half-year shows a further decline of approximately 3 percent, primarily driven by a drop in the light commercial vehicle (LCV) segment. Meanwhile, the medium and heavy commercial vehicle (MHCV) segment has remained relatively stable,” he added. 
He also noted that infrastructure spending and increased construction activity in the second half of the fiscal year, supported by heightened government investment, could lead to some improvement. Nevertheless, for FY25 as a whole, CV volumes are expected to remain in negative territory, with an estimated decline upto 3 percent.
Commenting on how the dip in sales will fare for the overall automobile industry, he stated, “The two-wheeler segment is performing well overall. However, major CV and PV players are doing well individually, though volume growth is expected to remain neutral for a year or two, as this is cyclical. The sectors witnessed such fluctuations every 2-3 years but there is no alarming concern for the overall sector. Moreover, there are no significant concerns from a credit quality standpoint. These companies are large, have diversified portfolios and maintain a strong financial risk profile.”
He added, “The PV sector witnessed significant growth in the past couple of years, driven by its cyclical nature. The growth rate for FY25 is projected to be around 3 percent with a similar trajectory expected for FY26. The LCV segment, being more price-sensitive, has been particularly affected, showing sharper declines. For FY25, the sector is expected to close with a decline of about -1.5 percent to -2 percent. Looking ahead to FY26, even under the best-case scenario, growth is likely to remain subdued, with only minimal improvements expected, driven by the same underlying factors.”
Alluding to the performance of the electric vehicle (EV) segment, he said, “EV volumes have shown healthy growth, particularly in two-wheelers and e-buses. However, this growth has come from a very low base. Even in FY24, EV penetration remains modest with two-wheelers at approximately 5.4 percent and other segments, including passenger and commercial vehicles, at around 2 percent each. The slower pace of growth and penetration can be attributed to challenges such as underdeveloped EV charging infrastructure and the high cost of EVs compared to internal combustion engine (ICE) vehicles, which continue to act as significant bottlenecks.”
 

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Tata Motors, one of the leading automotive manufacturers, has shared an update on its Kaushalya Programme, an industry-led training initiative ahead of World Youth Skills Day.

The programme has enrolled more than 23,000 participants and achieved a 100 percent placement rate for over 5,000 graduates, including more than 50 international placements.

The initiative, launched in 2021, operates across manufacturing facilities in Pune, Jamshedpur, Lucknow, Pantnagar, Sanand and Dharwad. It provides a sponsored Diploma in Mechatronics through an earn-and-learn model. Participants receive training in areas such as automobile engineering, manufacturing technology, automation, IoT and Industry 4.0. Women account for 21 percent of the participants, with 25 percent of trainees from affirmative action categories.

Sitaram Kandi, Chief Human Resources Officer, Tata Motors, said, “India's manufacturing competitiveness and mobility ambitions will be shaped by the quality of its workforce. Through Kaushalya, we are investing in the next generation of skilled professionals by creating opportunities that combine technical education, industry exposure and real-world experience. The programme is helping young people build meaningful careers while strengthening the talent pipeline required for an increasingly advanced and technology-driven automotive industry. The strong placement outcomes achieved by our trainees demonstrate the effectiveness of industry-academia collaboration in creating skills that are relevant, employable and future-ready. We remain committed to expanding the programme's reach and empowering more young people to participate in India's growth story.”

Programme graduates have secured positions across the Tata ecosystem and at other companies, such as Tata Steel Downstream Products, Tata Advanced Systems, Zydus, JSW Greentech, Subros, Spinny and Wipro. About 50 graduates have also been placed at a Jaguar Land Rover facility in Nitra, Slovakia.

Anita Kende Bethekar, a programme trainee currently placed with Jaguar Land Rover, said, “Coming from a remote tribal village in Maharashtra, a global career in the automotive industry once felt beyond reach. Tata Motors’ Kaushalya programme equipped me with the skills, exposure and confidence to pursue opportunities I had never imagined. Today, I am proud to be the first girl from my village and neighbouring region to hold a passport and build a career with Jaguar Land Rover in Slovakia. This achievement is not just mine; it is a source of pride for my family, my community and every young girl who dares to dream beyond her circumstances.”

Soham Ravindra Manmode, a trainee placed with Tata Motors Customer Support, said, “Coming from a financially challenged family in a small town, building a career in the automotive industry once felt like a distant dream. Tata Motors’ Kaushalya Programme changed that by enabling me to learn, earn and gain real-world industry experience simultaneously. The skills, confidence and exposure I acquired through the programme helped me build a rewarding career with Tata Motors. Today, I take pride in supporting my family and contributing to India's automotive growth story.”

Tata Motors intends for the programme to produce more than 5,000 industry-ready trainees each year to support the manufacturing and automotive sectors.

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The Indian automotive sector recorded 20 deals worth USD 717 million in Q2 2026 according to the latest findings by Grant Thornton Bharat's Automotive Dealtracker.

While transaction volumes reached their lowest level since Q2 2023, deal values saw a marginal decline of 4 percent quarter-on-quarter. Excluding public market activity, the sector saw 18 Mergers & Acquisitions (M&As) and Private Equity / Venture Capital (PE/VC) transactions valued at USD 479 million.

M&A activity comprised five deals worth USD 138 million, with KPIT Technologies' USD 120 million acquisition of Cymotive Technologies representing the period's focus on software and cybersecurity. PE/VC activity included 13 deals worth USD 341 million, led by Rapido’s USD 240 million fundraise and JBM Ecolife Mobility’s USD 47 million investment.

Saket Mehra, Partner and Auto & EV Industry Leader, Grant Thornton Bharat, said, "While deal activity slowed during the quarter, investment remained focused on businesses driving the future of mobility. We are seeing continued interest in EVs, mobility platforms and automotive technologies, with investors becoming more selective and backing companies that have demonstrated scale, differentiated capabilities and a clear growth path. As the sector evolves, technology-led investments are expected to continue shaping deal activity."

The key findings from the report include: Mobility-as-a-Service accounted for USD 298 million of the total sector deal value. Electric vehicles represented 54 percent of PE transactions. Auto tech made up 87 percent of M&A value. The five largest PE deals represented 96 percent of the total PE value.

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Vijaybhoomi University and the Nettur Technical Training Foundation (NTTF) have introduced a training programme that allows employees at Tata Motors to earn university-recognised diplomas while working.

The initiative, marked by a convocation at Tata Motors’ Pimpri-Chinchwad plant, aligns with the National Education Policy 2020 by integrating vocational skills with higher education frameworks.

Under this partnership, NTTF Mechatronics programme graduates receive a Technical Diploma aligned with the National Higher Education Qualification Framework. Learners may subsequently progress to an Advanced Technical Diploma and a B.Tech in Mechatronics without leaving their jobs.

Sanjay Padode, President, Vijaybhoomi University, said, "A university should recognise learning wherever it genuinely happens. Many of these learners have developed advanced technical capability on the shopfloor through structured training and disciplined practice. Our role is to connect that learning with nationally recognised higher education so that they can continue to grow academically without stepping away from their careers."

Ravi Tennety, Managing Director, NTTF, said, "For more than 60-years, NTTF has prepared young people for careers in manufacturing and technology. This partnership gives our learners an opportunity to build on that foundation through formal higher education while continuing to contribute to industry. It creates new possibilities for lifelong learning."

Prof Ravikesh Srivastava, Vice Chancellor, Vijaybhoomi University, said, "India has spoken for many years about integrating skills, industry and higher education. What we are seeing today is one working model of how that integration can happen in practice. It is built on academic quality, industry relevance and learner mobility."

Sitaram Kandi, Chief Human Resources Officer, Tata Motors, said, "Manufacturing is changing rapidly, and so must the way we develop our people. Technical skills acquired on the shopfloor deserve opportunities for continuous academic progression, without requiring employees to step away from work. This collaboration between Tata Motors, NTTF and Vijaybhoomi University creates a pathway where learning, work and career advancement reinforce one another. It recognises that capability is built not only in classrooms but also through disciplined practice, problem-solving and real production environments. By enabling our employees and apprentices to earn nationally recognised university qualifications while continuing to contribute on the shopfloor, we are investing not only in individual growth but also in building a future-ready manufacturing workforce for India."

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The Federation of Automobile Dealers Associations (FADA), the apex body representing automotive dealers in India, held its 5th Finance and Insurance (F&I) Summit in Mumbai. The event brought together representatives from the banking, finance, insurance and auto retail sectors to discuss vehicle ownership and dealership viability.

The summit focused on wholesale finance, retail finance and insurance. Guest of Honour Dr. Pankaj Kanchan Rajesh Bhoyar attended the event, which featured participation from leaders including Dr. Rajan Pental of Yes Bank, Raul Rebello of Mahindra Finance and Abhinav Garg of AU Small Finance Bank.

During the event, FADA released the 3rd edition of its Dealer Satisfaction Study for Finance and Insurance, which surveyed over 700 dealerships. The report indicated an increase in satisfaction regarding wholesale finance, retail finance and insurance disbursements. It also identified a requirement for training in the commercial vehicle segment and increased funding for the used-vehicle market.

C S Vigneshwar, President, FADA, said, "If an automobile dealership were a human body, the OEM is our heart, pumping the product lifeblood. Wholesale finance is the bloodstream - the working capital that must flow freely to keep the body energetic. Retail finance is our legs, allowing the customer to walk out with a vehicle, while insurance is our immune system, protecting us when the unexpected occurs. The dealer is the face the customer trusts, but you cannot have a healthy face on an unhealthy body. It takes all four of us - the OEM, the financier, the insurer and the dealer, working in a perfect relay to keep the customer."

Vigneshwar advised dealers to conduct monthly reconciliation of payouts and commissions and to invest in the training of F&I desks, stating, "F&I income is no longer just 'the icing' but a 'loadbearing wall of dealership viability. Our dealer partners have highlighted a few key areas for improvement across finance and insurance. In wholesale finance, they expect more transparent, demand-led funding and quicker transmission of interest rate reductions. In retail finance, there is a strong need for more robust used-vehicle funding solutions and smoother reconciliation processes. In insurance, faster claims settlement and stronger protection of dealer-led customer relationships remain critical priorities.”

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