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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Chinese automotive major BYD is on an expansion spree; the world’s leading electric vehicle manufacturer is said to be in conversation with automakers in Europe for acquiring their underused production facilities, says Bloomberg.

The revelation was made in an interview with Stella Li, Vice-President of International Operations, BYD, who said, “We are talking to not only Stellantis, but also other companies too. We are looking for any available plant in Europe because we want to utilise this kind of spare capacity."

It is important to note that BYD is already setting up its own production facility in Szegad, Hungary, which is set to be operational next year.

The Chinese automaker is already the world’s biggest electric vehicle manufacturer, but has been under pressure on the back of weak domestic demand. It has been actively looking to expand its product portfolio and sales in newer markets.

Interestingly, the report further mentioned that BYD may also be open to acquiring European luxury brands such as Stellantis’ Maserati, which she found ‘very interesting’.

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After reports of a lack of availability or less availability of petrol, diesel and CNG came in from various parts of India, the news is out that the state refiners have hiked the price of petrol and diesel by roughly INR 3 per litre across major parts of India.

The hike in petrol and diesel prices has come after four years and against the background of the West Asia conflict involving US, Israel and Iran. Since the conflict began a few months back, the prices of crude oil per barrel have been rising. They stand at approximately USD 107.09 per barrel as of current. 

The price increase, industry sources aware of the overall development in the crude oil sector indicate, is only about one-tenth of the rise that would be necessary to make up for the losses the oil refiners are incurring at the moment. 
The increase in petrol and diesel prices follows the increase in CNG prices by around INR two sometime ago by providers like Mahanagar Gas. 

While the Union Petroleum Minister is known to assert that there is no shortage of fuel in the country, there have been reports from regions like the stretch of the Mumbai-Goa highway in Maharashtra, where pumps have run dry. There have been reports from regions like Nagpur in central India, where truckers have had to halt their journey as pumps ran dry of fuel earlier than expected and had to limit the quantity of fuel they could provide to their consumers. 

Petrol in Mumbai now costs INR 106.68 per litre, approximately, whereas diesel now costs INR 93.4 per litre, roughly. CNG per kg retails at about INR 84, up from the earlier INR 82.

As a result of the price rise in all the fuels used by the mobility sector, a fear is growing that the freight rates will go up, which would have a ripple effect on the prices of commodities. Other than plastics and metals, the prices of various oils, including cooking oil, are expected to go up somewhat if not sharply.   

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The Climate Pledge, co-founded by Amazon, has introduced a landmark evidence-based framework for converting India's diesel freight fleet to battery electric trucks, developed alongside the C40 Cities climate network. The National EV Highway Guidance Framework lays out a staggered timeline starting with 20 priority highways named by the Ministry of Heavy Industries, with an initial target of 2027. The plan extends to industrial zones and port connections, aiming for a fully integrated electric freight network nationwide by 2035.

India faces rapidly rising freight demand, projected to grow more than four times by mid-century. Roadways already handle nearly seventy percent of all goods moved, and despite medium and heavy trucks representing only three percent of vehicles, they generate roughly 53 percent of particulate emissions. Electrifying freight supports the national goal of reaching net-zero emissions by 2070.

The framework builds on the Laneshift pilot, a collaboration that united truck makers, fleet operators, logistics firms and financiers. On the Bengaluru–Chennai corridor, electric trucks logged over 200,000 kilometres across 600 trips, providing data on performance and operating costs while encouraging early adoption through multi-year contracts. A 6,500-kilometre trial along the Golden Quadrilateral further tested scalability. The pilot proved operational feasibility across all scenarios and commercial viability for daily runs above 400 kilometres, resulting in a 4.2-fold jump in electric truck orders and long-term commercial agreements.

The framework outlines priorities spanning charging infrastructure, demand generation and fleet operations. Aligned with the government's push for electrification, the roadmap offers a practical pathway to transform one of India's most emissions-intensive sectors.

Dr O P Agarwal, Distinguished Fellow, NITI Aayog, said, “India’s transition to cleaner freight will require strong collaboration across government and industry. The EV Highway Guidance Framework launched under the Laneshift programme today is an important step in this direction and will help create a scalable pathway for electric trucking in the country. Through the e-FAST India platform, NITI Aayog has been bringing together logistics operators, OEMs, energy providers and financial institutions to build an enabling ecosystem for freight electrification. Building on these efforts, partnerships led by C40 Cities, The Climate Pledge and private sector stakeholders such as Amazon and Ashok Leyland demonstrate how collaborative action can help move electric freight from pilots to large-scale deployment.”

Abhinav Singh, VP, Operations, India and Australia, Amazon, said, “We continue to invest in making our operations more sustainable, and electrifying our logistics is a key part of that effort. Through The Climate Pledge, we are also working with stakeholders to help scale electric freight solutions more broadly in India. The project findings and framework are encouraging and reinforce the importance of continued collaboration between government and industry to accelerate adoption.”

Naim Keruwala, Regional Director for South and West Asia at C40 Cities, said, “Decarbonising freight is not a future ambition; it is an immediate economic and public health imperative for the country. Laneshift has shown that zero-exhaust-emission trucks can operate commercially on long-haul corridors, that costs are coming down and that when the right stakeholders align their efforts, barriers give way. India has the scale, the policy momentum and the industry appetite to be the next frontier.”

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The share of electric buses in new bus sales in India is expected to reach 35-40 percent by FY2035, from the current level of around 7 percent states a recent report titled ‘Electrifying India’s Bus Industry – The Decade of Transformation’ by KPMG.

It indicates that the bus sector is entering a phase of structural change with the shift being driven by urbanisation, sustainability commitments and government-led mobility initiatives.

The report notes that the Indian bus market, which typically averages 35,000 to 50,000 units annually, is transitioning due to electrification and infrastructure investment. Buses currently account for nearly 57 percent of passenger-kilometres travelled in the country. Data shows that 16,300 electric buses were operational in India as of March 2026, and approximately 62,000 e-bus tenders have been issued to date.

Rohan Rao, Partner, KPMG India, said, “India’s electric bus transition is moving beyond a policy-led initiative to becoming a structural transformation opportunity for the broader mobility ecosystem. Public transport electrification has already created strong momentum, supported by government procurement programmes, improving cost economics, and increasing infrastructure investments.”

Raghavan Viswanathan, Partner, KPMG in India, added, “India’s e-bus ecosystem is entering a critical phase where scale, localisation and execution capabilities will become key differentiators. While public transport undertakings continue to lead adoption, the next phase of growth is expected to emerge from private intercity mobility, airport transport, platform-based mobility solutions and corporate fleets.”

The analysis finds that electric buses offer 70 percent higher energy efficiency and lower lifetime emissions than diesel equivalents. In public intracity operations, electric buses have reached total cost of ownership parity with diesel and CNG variants under high-utilisation scenarios.

Government schemes, such as PM-eBus Sewa, are projected to save between 1 and 2 million tonnes of CO2 and reduce oil imports by USD 2 to 3 billion over the concession period.

Projections suggest that India will tender nearly 40,000 additional electric buses by 2030. Within the public transport segment specifically, electric vehicle penetration is expected to exceed 85 percent by FY2035. Coordination between manufacturers, financiers and infrastructure providers remains a factor in achieving these targets.

Representational image courtesy: Tata Motors

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