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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Volvo Group, Daimler Truck and Toyota Motor Corporation have signed a non-binding Memorandum of Understanding (MoU) to cooperate within the fuel cell joint venture, cellcentric.

As per the understanding, Toyota intends to acquire an equal shareholding in the entity alongside the two founding partners. The collaboration aims to accelerate the development, production and commercialisation of fuel cell systems for heavy-duty vehicles and stationary applications.

Toyota and cellcentric plan to jointly manage the production of fuel cell unit cells, which serve as the core component of the power systems, along with related control elements and architecture.

The partners intend for cellcentric to operate as an autonomous centre of competence. While the three companies will collaborate on the underlying technology and hydrogen infrastructure, they will remain independent competitors in all other areas of their respective businesses.

The agreement focuses on achieving the scale required to make hydrogen a viable energy source for decarbonising the transport sector. The partners aim to support the broader hydrogen value chain, aligning with the objectives of the European Green Deal and the Hydrogen Society Act in Japan.

The transaction is not expected to have a significant impact on the financial position of the Volvo Group. The final legally binding agreement remains subject to approval by relevant boards and regulatory authorities.

Martin Lundstedt, President and CEO, Volvo Group, said, “We are thrilled to explore this collaboration with Toyota, so that we through cellcentric can accelerate and create critical mass for hydrogen applications. This is an important signal to customers, suppliers, and others in the ecosystem. Given the importance of accelerating the transformation into net-zero transportation, the need of great companies coming together and collaborating is more important than ever. Welcoming Toyota onboard will be a big leap towards realising decarbonisation of our industries.”

Karin Radstrom, President & CEO, Daimler Truck, said, “We are proud that Toyota plans to join cellcentric as a shareholder. This will enable us to strengthen development and further scale hydrogen technology, which we believe must complement battery-electric drives in decarbonising transport.”

Koji Sato, President and CEO, Toyota Motor Corporation, noted, “We are deeply grateful for the opportunity to soon be joining Daimler Truck and Volvo Group as partners in building a hydrogen society. Cellcentric which possess deep expertise in commercial fields together with Toyota ‘s over 30 years of fuel-cell development in the passenger car sector, can combine their strengths to deliver one of the world-leading fuel cell systems for heavy commercial vehicles. Toyota will continue to contribute to realising a hydrogen society alongside like-minded partners.”

Nicholas Loughlan, Managing Director, cellcentric, added, “We are extremely proud that Toyota is intending to join as a shareholder of cellcentric - a great sign of trust in our company from one of the world‘s leading automotive companies. Together, in this new set-up, we look forward to seizing the opportunity to significantly improve our company across the entire value chain.”

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The Society of Indian Automobile Manufacturers (SIAM), in partnership with the Delhi Traffic Police, Yamaha Motor India and Hindustan Times, held the Annual Principals’ Meet 2026 in New Delhi. The event, themed “Bridging the Gap: Connecting Road Awareness with Education,” convened over 400 school principals from across the Delhi-NCR region to discuss the formal integration of road safety modules into student learning.

The meeting is part of SIAM’s ‘Surakshit Safar’ initiative, which seeks to address rising road fatalities through a focus on human behaviour rather than vehicle technology alone.

The program saw over 100,000 students reached through structured modules in collaboration with Kendriya Vidyalaya Sangathan. Focus on pedestrians and two-wheeler users, who account for the highest percentage of road fatalities, promoting the consistent use of helmets and seatbelts while discouraging over-speeding through early-age education.

During the forum, SIAM recognised educational institutions for their efforts in promoting road safety awareness for the 2025–26 academic year:

1. School of the Year: Modern Public School, Shalimar Bagh, New Delhi.
2. 1st Runner Up: Mount Abu Public School, Rohini Sec-5, New Delhi.
3. 2nd Runner Up: Greenway Modern Sr. Sec. School, Dilshad Garden, New Delhi.

Prashant Banerjee, Executive Director, SIAM, stated, “India has already adopted the best of vehicle technologies, including active and passive safety systems, but road accident fatalities are still rising. What has been found is that this is largely a behavioral aspect which needs to be controlled. Enforcement alone cannot solve the issue. It is education that brings humility, politeness, and responsibility, and that is something we do not see on roads today.”

Sanjay Bandopadhyaya, Member, Supreme Court Committee on Road Safety, added, “Enforcement combined with education is the most effective and economical way to reduce fatalities. With schools, industry, media, and enforcement agencies coming together, we can ensure a significant reduction in accidents and make our roads much safer.”

Vijayanta Arya, Additional Commissioner of Police – Traffic, Delhi Police, commented, “Road safety cannot be achieved through enforcement alone, because the decision ultimately rests with the people using the road. This is where schools become central to the solution. While enforcement acts as a deterrent, education creates understanding, and together they can bring far more sustainable outcomes in improving road safety.”

S Kumar, Vice-President, India Yamaha Motor, said, “If we want to create lasting change, we must begin at the school level, where awareness can be translated into values and eventually into lifelong habits. From an industry perspective, we see a critical opportunity to promote road safety through school-level awareness and engagement.”

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As global industrial markets navigate a landscape of currency volatility and cooling regional economies, the Freudenberg Group is pivotally positioning India as a primary ‘shining star’ for its future growth.

With nearly 40 percent of its Indian revenue tied to the automotive sector, the German technology giant is doubling down on localisation, EV transitions and strategic inorganic growth to solidify its regional presence.

While the Group’s global sales saw a modest contraction of 1.8 percent in 2025, totalling EUR 11.73 billion due to softening exchange rates, Freudenberg India defied the downward trend. The Indian arm reported robust sales of INR 44.27 billion, maintaining healthy double-digit operating margins across its eight business groups.

G Sivasailam, Director & CEO of Freudenberg Regional Representative in India, noted that the country has consistently performed stronger than the global average, emerging alongside China as a critical growth engine within the Group’s international strategy.

Automotive remains the bedrock of Freudenberg’s India operations, contributing roughly 40 percent to 42 percent of total revenue. The company’s portfolio is deeply embedded across the value chain, ranging from sealing solutions and vibration control to filtration and surface technologies.

This diversification has provided a buffer against fluctuations in specific vehicle segments, allowing the company to thrive as passenger vehicle demand gains momentum while maintaining a steady supply to Commercial Vehicle OEMs, which account for 70 percent of that specific segment.

As the industry pivots toward electrification, Freudenberg is aligning its product roadmap to bridge the gap between legacy internal combustion engines and emerging EV technologies.

Sivasailam highlighted that while EVs eliminate certain engine-related components, they create complex new requirements in areas like lightweighting, thermal management, and noise profiles. To address these, the company is deploying advanced material science, including critical battery separators designed to ensure safety and prevent thermal events.

Although large-scale local manufacturing for certain EV components is currently served by global capacities in Europe, R&D continues to evolve to meet the specific needs of the Indian market.

A cornerstone of Freudenberg’s success remains its aggressive localisation strategy. With a manufacturing footprint spanning Chennai, Pune, Mysore, Chandigarh and Anand in Gujarat, the company prioritises producing for the local market over simple labour arbitrage. This domestic focus has effectively insulated the business from global supply chain disruptions and geopolitical uncertainties. While exports currently account for about 10 percent of total output, the primary focus remains on capturing the rising consumption and demographic advantages within India.

Looking toward the 2027–2029 strategic cycle, Freudenberg India is signalling an openness to expansion beyond organic growth.

Following a global precedent where the Group invested EUR 800 million in acquisitions during 2025, the Indian leadership is actively scouting for mergers and acquisitions to bolster its technical capabilities.

By evolving from a traditional component supplier into a provider of integrated solutions, Freudenberg aims to meet the growing demand from OEMs for fewer, more sophisticated partners. With a strong foothold in innovation and a clear focus on sustainability, the company appears well-positioned to play a defining role in India’s evolving mobility landscape.

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The Light Electric-Vehicle Acceleration Forum (LEAF), an industry body association initiated by Hero MotoCorp, Ather Energy and IPEC, to accelerate the adoption of electric two-wheelers and three-wheelers in India. The forum was inaugurated by H D. Kumaraswamy, Union Minister for Heavy Industries & Public Enterprises.

LEAF serves as a neutral platform bringing together original equipment manufacturers (OEMs), charging infrastructure operators and technology providers. The consortium focuses on advancing interoperability across fragmented charging networks to standardise the user experience.

A primary technical focus for the forum is the implementation of LECCS (Light Electric Combined Charging System), which is approved by the Bureau of Indian Standards (IS 17017 Part 2/Sec 7) as a ‘Type 7’ connector supporting both AC and DC charging. It enables unified communication and roaming capabilities, allowing vehicles from different manufacturers to utilise the same public infrastructure.

The forum was founded through a Memorandum of Understanding (MoU) between three entities: Hero MotoCorp Limited (via its Emerging Mobility Business Unit), Ather Energy and IPEC India.

At launch, the consortium included over 20 member organisations, including vehicle manufacturers, charge point operators and software providers. The founding members constitute the initial steering committee, with plans to expand membership in the coming months.

The founding members, Kausalya Nandakumar (Hero MotoCorp), Ravneet S Phokela (Ather Energy), and Zohra Khan (IPEC India), said, “EV adoption in India has reached an inflection point, and the next phase of its growth will depend on how effectively the industry addresses charging anxiety, as users navigate fragmented networks and inconsistent experiences. Delivering a seamless and interoperable charging experience at scale will require alignment on shared approaches, which LEAF aims to enable. We believe India has the potential to emerge as a global leader in light electric mobility, and initiatives like LEAF are key to unlocking this potential by building a more cohesive and scalable public charging ecosystem.”

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