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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Maruti Suzuki India, the country’s largest passenger vehicle manufacturer, has selected six startups from the 10th Cohort of its flagship Accelerator Program to co-create advanced business solutions.

The selected companies have been awarded paid Proof of Concepts (PoCs) to develop AI-based and technology-driven tools aimed at enhancing plant safety, streamlining product development and improving customer engagement.

The initiative aligns with the Government of India’s ‘Startup India’ program, providing growth-stage startups with mentorship and access to real-world industrial environments to scale their innovations.

The six start-ups selected include Goat Robotics, which is working on safe and efficient movement of materials within facilities. SheerDrive, which provides a real-time, market-linked used car price visualiser for transparent valuations. Schijnenn Digital is working on technologies to shorten the product design and development cycle. GenbaNEXT, an advanced material traceability system to support circular economy and recycling efforts. Swayatt Drishtigochar that provides predictive maintenance and safe operation of industrial equipment. And Swiftex, a sales assistance platform to help dealer executives engage customers more efficiently.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India, said, “As our operations continue to grow, the solutions that we are co-creating with these startups will enable us to further improve safety in our plants, help reduce product design and development lead time, and strengthen material traceability.”

Over the last seven years, Maruti Suzuki’s innovation programs have screened more than 6,800 startups. To date, the company has engaged with over 250 startups, and 34 have been officially onboarded as business partners. The company currently operates four distinct programs to support the startup ecosystem at various stages:

Accelerator: Focuses on growth-stage startups for co-creating technological solutions.

Incubation Program: Early-stage support in partnership with NSRCEL, IIM Bangalore.

Mobility Challenge: For mature-stage startups to showcase cutting-edge mobility tech.

Nurture: A pre-incubation program for idea-stage entrepreneurs.

The integration of these new technologies, particularly in circularity and predictive maintenance, is expected to make Maruti Suzuki’s manufacturing and sales operations more future-ready as the company expands its production capacity in India.

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SPARX Group Co., (SPARX) has announced the establishment of the Mirai Creation Fund IV (Fund IV), with initial capital from major Japanese financial institutions and Toyota Motor Corporation. The fund targets total commitments of JPY 100 billion by March 2027 and is scheduled to begin investment operations in June 2026.

The fund marks a strategic evolution from its predecessors by integrating the investment scope of the Space Frontier Fund into the Mirai Creation framework. Consequently, Fund IV will focus on four key technology categories: Intelligent Technologies (including AI), Robotics, Carbon Neutrality and Space.

Fund IV is backed by five core participating companies – Toyota Motor Corporation, Sumitomo Mitsui Banking Corporation (SMBC), MUFG Bank, Mizuho Bank and SPARX – with an initial combined investment of approximately JPY 15 billion. The fund will be managed by SPARX Asset Management Co, a subsidiary of SPARX.

The fund aims to accelerate innovation by investing in unlisted venture companies, both within Japan and internationally, that possess transformative technologies. The inclusion of Space as a core category reflects a broader strategic integration, following the 2024 launch of the Space Frontier Fund II, aimed at leveraging space-related technologies to drive terrestrial growth and sustainability.

This move continues a decade-long partnership between SPARX and Toyota, which began with the first Mirai Creation Fund in 2015. Since then, the funds have raised over JPY 177 billion and invested in more than 150 companies globally, focusing on technologies that address critical social issues and promote human well-being

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Maruti Suzuki India, the country’s largest passenger vehicle manufacturer, has announced the launch of DesignXathon 2026, the second edition of its flagship automotive design challenge.

The competition is open to students from Indian and global design institutes based in India, offering a platform to showcase futuristic mobility concepts.

The theme for this year's challenge is ‘Envision an iconic vehicle, Gen Z and Alpha aspire to own in 2036.’ Participants are tasked with designing a vehicle tailored for the 2035-2040 period, focusing on lifestyle relevance, sustainability and the integration of design philosophy with emerging technology.

DesignXathon 2026 will have cash rewards of up to INR 450,000, the winners have the opportunity to secure a 6-month internship with the Maruti Suzuki design team. The top 25 shortlisted teams will receive direct mentorship from experienced automotive design professionals. The last date for application submission is 13 July 2026.

The inaugural 2025 edition saw participation from over 400 students across 70 institutes, with winners emerging from the MIT Institute of Design, VIT Vellore and Strate School of Design. Currently, eight students from the first edition are undergoing internships with the company.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India, said, “Automotive design goes far beyond aesthetics; it is a blend of innovation, creativity, and fresh perspectives. I strongly believe that young minds play a pivotal role in challenging conventional design thinking and shaping the future of mobility. Through DesignXathon, we aim to nurture emerging talent and lay the foundation of a strong design ecosystem in India.”

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Prime Minister Narendra Modi outlined a transformative vision for India’s automotive and energy landscape, urging a strategic pivot toward alternative fuels and improved logistics to shield the economy from global volatility.

The Prime Minister was addressing a significant gathering in Telangana on Sunday, speaking against the backdrop of the ongoing West Asia energy crisis.

He emphasised that India’s automotive sector is central to navigating current geopolitical headwinds and highlighted the ‘unprecedented progress’ in ethanol blending, positioning it as a cornerstone of India’s sequential energy diversification strategy.

The Prime Minister detailed the government’s evolution in fuel management, noting that the initial push for universal LPG coverage has paved the way for a more sophisticated energy mix.  

The government is aggressively promoting CNG-based transport systems nationwide to provide a cleaner, cost-effective alternative to traditional liquid fuels.

"The need of the hour is to use petrol, gas, and diesel with great restraint," Modi asserted, framing energy conservation as a matter of national security. He noted that judicious consumption is essential to ‘save foreign currency and reduce the adverse effects of war crises.’

On the infrastructure front, the Prime Minister underscored the massive INR 1,750 billion allocation toward National Highway development. This 12-year investment trajectory has yielded significant results for the automotive and logistics sectors, particularly in southern India.

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