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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ICRA has reported that India’s automobile sector is expected to experience a moderation in growth during FY2027. This follows a period of expansion in FY2026 driven by GST rationalisation and resilient economic activity. While policy changes improved affordability in the two-wheeler segment and enhanced fleet economics for commercial vehicles, growth rates are projected to normalise against a higher base.

The CV segment led the recent industrial upcycle, supported by infrastructure activity and GST rate cuts. Domestic wholesale volumes increased by 12.5 percent YoY during the first 11 months of FY2026, while retail volumes rose by 28.9 percent in February 2026.

Segment Forecasts:

• FY2026: Growth is expected to exceed previous estimates of 7-9 percent.
• FY2027: Growth is projected to moderate to 4-6 percent.
• Constraints: High funding costs and a consumer preference for pre-owned light commercial vehicles (LCVs) may limit near-term expansion.

The two-wheeler segment recorded a recovery in FY2026, with retail volumes growing by 11.5 percent in the 11M FY2026 period. This was supported by improved rural demand and financing availability following GST cuts for motorcycles and scooters below 350 cc. ICRA expects wholesale growth to slow from 9 percent in FY2026 to 3-5 percent in FY2027.

The auto component sector is forecast to grow by 7-9 percent in FY2027, driven by premiumisation and replacement demand. The industry plans a capital expenditure of INR 280 billion to INR 320 billion for the year, focusing on capacity expansion and electrification. While internal accruals will fund most investments, debt reliance may increase for battery cell localisation projects.

ICRA noted that while direct export exposure to West Asia is limited for component players, indirect risks exist. Approximately 25-30 percent of India's passenger vehicle exports are linked to West Asian markets, and disruptions there could affect component demand. Other monitorables include supply-chain volatility, energy costs and currency fluctuations.

‘The broad-based recovery seen in FY2026 has largely been policy-driven, particularly due to GST rationalisation, which improved affordability and demand sentiment across segments. Growth is expected to normalise in FY2027, given the higher base and emerging challenges from global uncertainties and input cost pressures. That said, continued investments in electrification, steady replacement demand and improving rural incomes are expected to support the sector over the medium term,’ the company noted.

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JSW MG Motor India has unveiled the sixth season of its flagship MG Developer Program & Grant (MGDP), created in partnership with the Department for Promotion of Industry and Internal Trade (DPIIT). With this initiative, the company continues its focus on nurturing India’s startup landscape by driving cutting-edge innovation. Under the overarching theme of automotive innovation, this latest edition seeks to cultivate forward-looking solutions that address the future of mobility.

Startups are invited to present groundbreaking ideas across a wide spectrum of fields, including artificial intelligence in automotive, vehicle-to-everything intelligence, sustainable and circular economy models, electric vehicle charging infrastructure, connected services, manufacturing, vehicle technology and logistics and supply chain. A jury composed of senior leaders and experts from industry, academia and corporate sectors will assess submissions based on originality and practical feasibility.

Participants selected for the programme will receive mentorship from the company and its network of ecosystem partners. They will also gain access to development resources, testing opportunities and potential grant support at the jury’s discretion. Submissions opened today and will close on 30 April 2026. Shortlisted teams will undergo mentoring sessions leading up to Demo Day on 1 June 2026.

Since its inception in 2019, the programme has been instrumental in fostering breakthrough mobility solutions. Across the first five seasons, it drew over 1,550 entries, with more than 290 teams shortlisted in the initial rounds. These teams benefited from mentorship provided by over 100 experts, including leadership from JSW MG Motor India and its technology partners, making it one of the largest mentoring initiatives in the automotive sector. To date, 51 startups have been shortlisted through the programme and are actively engaged in pilot projects.

Anurag Mehrotra, Managing Director, JSW MG Motor India, said, “Innovation remains the cornerstone of JSW MG Motor India’s vision for India, and we remain committed to nurturing this value through multiple initiatives. This new edition of MGDP aims to empower ambitious start-ups working across new energy, autonomous and connected mobility technologies. Together, we hope to shape a future where technology meaningfully enhances every customer’s experience.”

Sanjiv Singh, Joint Secretary, DPIIT, said, “Startup India, DPIIT is committed to supporting initiatives that foster collaboration, create opportunities for young talent and encourage India-specific innovation. We are delighted to partner with JSW MG Motor India for the new season of MGDP. This collaboration reflects our shared commitment to nurturing India’s future workforce and fostering a culture of practical problem-solving.”

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Maruti Suzuki India Limited marked a significant operational achievement with its Manesar in-plant railway siding, which crossed the 100,000-dispatch mark in under nine months. Being India’s largest facility of its kind and the company’s second PM GatiShakti terminal, this siding has played a key role in reducing environmental impact by avoiding an estimated 16,800 metric tonnes of CO2 equivalent emissions.

The siding facilitates the movement of popular models from the Gurugram and Manesar plants, including Alto, Brezza and Dzire, through a robust hub-and-spoke network. With over 500 rakes since it commenced operations in June 2025, the company now efficiently serves 380 cities from 17 hubs. This logistical strength builds on Maruti Suzuki’s legacy as the first automaker to secure an AFTO (Automobile-Freight-Train-Operator) license back in 2013, having moved more than 2.95 million vehicles by rail since fiscal 2014-15.

By advancing rail-based dispatch, the company actively contributes to UN Sustainable Development Goal 13. This initiative underscores its ongoing commitment to integrating sustainability into core industrial operations.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India Limited, said, “In June 2025, Hon’ble Union Minister for Railways, Information and Broadcasting, Electronics & Information Technology, Shri Ashwini Vaishnaw and Hon’ble Chief Minister of Haryana, Shri Nayab Singh Saini inaugurated India’s largest automobile in-plant railway siding at our Manesar plant. I am happy to share that within a short span of nine months, we have dispatched 100,000 units, through this siding. This initiative reinforces our commitment to reduce carbon footprint in vehicle dispatches while easing overall road congestion. At full capacity, the Manesar siding has the capability to dispatch 450,000 units annually.

“In CY 2025, the company set a record by dispatching over 585,000 vehicles through railways. Interestingly, in the past decade, our share of rail mode in outbound logistics has grown exponentially, from 5 percent in 2016 to 26 percent in 2025. Going forward, we aim to scale up rail-based vehicle dispatches from the current 26 percent to 35 percent by FY 2030-31, in line with our commitment to build efficient and sustainable logistics and contribute to India’s net-zero ambition.”

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The Society of Indian Automobile Manufacturers (SIAM) has unveiled its ‘Smart Integrated Automotive Mobility Lab (SIAM Lab)’ at the Smart Mobility India Expo 2026. Held at Bharat Mandapam from 23–25 March 2026, the pavilion serves as a collaborative platform for original equipment manufacturers (OEMs), technology providers and research institutions.

The SIAM Lab, located in Hall-1, is organised into three functional areas designed to demonstrate the evolution of the Indian automotive sector:

• Sustainable Mobility: Focusing on decarbonisation and green transport.
• Research & Testing: Showcasing validation frameworks and safety standards.
• Technology: Highlighting software-defined vehicles and connectivity.

The exhibit features 14 electrified vehicles from manufacturers including Tata Motors, Kia India, JSW MG Motor India, Toyota Kirloskar Motor, BMW India and Hyundai Motor India. Two-wheeler and last-mile segments are represented by TVS Motor Company, Honda Motorcycle & Scooter India, Ather Energy, Hero MotoCorp, Montra Electric and EKA Mobility.

The initiative involves partnerships with technical and data entities such as ARAI, Qualcomm, HERE Technologies, Google, ITS India Forum and Onnyx. These collaborations aim to integrate hardware with digital infrastructure, reflecting the industry's shift towards smart mobility solutions. The exhibition aligns with national objectives for advanced and sustainable transportation.

Prashant K Banerjee, Executive Director, SIAM, said, “The SIAM Lab reflects the collective strength of India’s automotive ecosystem in advancing smart and sustainable mobility. Our participation at the Smart Mobility India Expo provides a platform to showcase innovation, foster collaboration, and highlight the industry’s readiness for future mobility solutions.”

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