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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German tier 1 supplier ZF’s Supervisory Board has appointed Sebastian Schmitt to the company's Board of Management, effective 1 September 2026.

He will oversee the Electrified Powertrain Technology division alongside responsibility for the Americas region. Schmitt succeeds Dr Peter Holdmann, who will step down from the Board of Management on 31 August 2026 after choosing not to renew his contract. Following Holdmann's departure, Chief Executive Officer Mathias Miedreich will assume responsibility for the Chassis Solutions division as well as ZF Group R&D.

Schmitt joined ZF in 2000 after graduating in industrial engineering from TU Ilmenau. Prior to his appointment to lead the Electrified Powertrain Technology division in November 2025, he managed the Electrified Powertrain Systems product line, held a post at ZF's Saltillo facility in Mexico and served as MD of the transmission plant in Brandenburg.

Holdmann joined ZF in 2000 and held management positions within passenger car chassis operations. Following the acquisition of TRW, he led the former TRW chassis operations from 2015 to 2018. In late 2023, he oversaw the merger of ZF's chassis operations into the unified Chassis Solutions division, joining the Board of Management on 1 May 2024 and adding the responsibilities of Chief Technology Officer in March 2026.

Dr Rolf Breidenbach, Chairman, ZF Supervisory Board, said, "The Supervisory Board thanks Dr. Peter Holdmann for his commitment and steady leadership in integrating and developing the Chassis Solutions division. In recent years, ZF has established a leading position in chassis technology, particularly in by-wire braking and steering systems. We respect his decision not to seek another term and thank him for his service. Sebastian Schmitt knows the Electrified Powertrain Technology division inside out and helped the restructuring produce early results. The priority now is to maintain that progress."

Mathias Miedreich, CEO, ZF, said, "Dr. Peter Holdmann has been a committed team player. On behalf of the Board of Management, I thank him for his collaborative approach and his contribution to ZF s transformation. I look forward to working with Sebastian Schmitt on the board."

Simon Blümcke, Mayor of Friedrichshafen, representing majority shareholder the Zeppelin Foundation, said, "Dr. Peter Holdmann served ZF for more than 25 years. I thank him for his long service and his contribution to the company. I congratulate Sebastian Schmitt on his appointment to the ZF Board of Management."

Dr Peter Holdmann said, "By integrating chassis electronics and ZF Race Engineering, we advanced the restructuring of the Chassis Solutions division. ZF s vehicle-dynamics solutions are gaining recognition and demand worldwide. After more than 26 years at ZF, this milestone makes it the right time for me to begin a new chapter. I thank the highly capable team I have worked with over the years. I am confident it will continue the transformation to Chassis 2.0 with innovation, determination and strong execution."

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Eicher Motors (EML), a leading manufacturer of two-wheelers and commercial vehicles, has reported financial results for Q1 FY2027, recording a 32 percent YoY increase in quarterly operational revenue to INR 66.32 billion.

The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 32 percent YoY to INR 15.91 billion from INR 12.03 billion in Q1 FY26; consolidated net profit grew 21 percent YoY to INR 14.63 billion from INR 12.05 billion a year ago.

Alongside the financial results, Eicher Motors's board of directors approved an investment of INR 12.25 billion for Phase I of a greenfield manufacturing plant in Tada, Andhra Pradesh. The facility is scheduled for completion during FY 2029-30 and will provide additional annual production capacity of up to 450,000 motorcycles at full utilisation.

During Q1, Royal Enfield recorded quarterly motorcycle sales of 332,940 units, representing a 27.4 percent increase from 261,326 units. Operational milestones during the period included the start of deliveries for the Flying Flea C6 electric motorcycle and the launch of the Bullet on the 650cc engine platform.

On the other hand, VE Commercial Vehicles (VECV) reported revenue from operations of INR 66.10 billion, up 16.6 percent from INR 56.71 billion a year ago. VECV's EBITDA rose 6.1 percent to INR 5.41 billion from INR 5.11 billion, while net profit reached INR 3 billion compared with INR 2 billion last year. The company sold a total of 24,815 commercial vehicles, up 14.8 percent YoY, as compared to 21,610 units a year ago.

B Govindarajan, Managing Director, Eicher Motors and Chief Executive Officer, Royal Enfield, said, "Building on a record-setting performance in FY26, we have sustained our strong momentum into the new financial year, with Royal Enfield recording its highest-ever quarterly sales and VECV recording its highest-ever Q1 sales. This quarter was historic for Royal Enfield as we commenced deliveries of the Flying Flea C6 electric motorcycle. The early response to the FF.C6 has been highly positive, reinforcing our vision of creating a new category of premium city+ electric mobility. We also strengthened our portfolio with the launch of the iconic Bullet on the 650cc platform. Globally, key markets continued to perform well, driven by new motorcycle launches. To support our growth over the long-term, we announced plans for a new greenfield manufacturing facility in Tada, Andhra Pradesh, to expand our capacity beyond the existing facilities in Tamil Nadu. Beyond these milestones, our global community remained at the heart of our journey, which was reflected in the growing participation numbers in our marquee rides and events. With a robust product launch calendar and diverse brand initiatives planned for the rest of the year, we are optimistic of maintaining our growth trajectory in the dynamic global environment."

B Srinivas, Managing Director and CEO, VECV, said, "We are pleased to have delivered our best-ever first quarter, with sales of 24,815 units, growing 14.8 percent YoY, while maintaining our number one position in the LMD truck market. Beyond the numbers, we continued to drive modernization in the Indian CV sector. The launch of the Volvo FMX Edge is set to transform mining productivity by combining optimized payload capability with superior safety, uptime and lifecycle value. Furthering our commitment to deliver superior uptime to Eicher customers, we added 30 new touchpoints during the quarter. We also signed a MoU with the Ministry of Road Transport and Highways under the PARIVARTAN fleet modernisation scheme for the NCR, signalling our partnership to support the transition towards a cleaner and more efficient commercial vehicle fleet. As we look ahead, we remain focused on building on this momentum and delivering sustained value for our customers in a rapidly evolving industry."

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KPMG, one of the leading accounting firms, has launched The KPMG Global Tech Report 2026: Automotive, which indicates that global automotive organisations are directing investments towards artificial intelligence (AI), data resilience and digital infrastructure to adapt to evolving mobility ecosystems.

The report surveyed 258 technology executives across 22 countries, representing original equipment manufacturers (OEMs), commercial vehicle manufacturers, Tier 1 suppliers, technology component vendors, and mobility providers with annual revenues exceeding USD 1 billion.

The survey metrics show that 88 percent of respondents express confidence in revenue growth over the next 24 months. Furthermore, 74 percent view advanced technology as the primary driver of competitive advantage, whilst 86 percent state that technology roadmaps become outdated quickly due to market changes. Additionally, 82 percent of executives report a requirement to take risks on technology investments, though 53 percent note that legacy processes reduce return on investment.

To address macroeconomic and geopolitical volatility, sub-sectors within the industry report distinct technical responses. Among vehicle manufacturers, 67 percent plan to enhance data sovereignty across partnership networks. Among truck manufacturers, 61 percent intend to hire onshore technology talent. Tier 1 suppliers report that 41 percent aim to upgrade data infrastructure for scenario planning, while 47 percent of component suppliers plan to tighten technology expenditure. Among mobility service providers, 40 percent plan to expand the number of innovation centres of excellence.

In India, automotive firms are focusing on transitioning AI implementations from pilot stages to operational deployment across engineering, manufacturing, supply chain management and customer operations.

Jeffry Jacob, Partner and National Sector Leader, Automotive, KPMG in India, said, "For India’s automotive sector, the findings reinforce that competitiveness will increasingly depend on how effectively organisations scale AI, data and digital technologies. These capabilities must move beyond pilots and into engineering, manufacturing, supply chains and customer-facing operations. Strong data foundations, clear governance and disciplined execution will be essential to convert technology investments into measurable value. As vehicles become more connected, software-enabled and intelligent, resilient digital capabilities will be critical to sustaining growth and remaining competitive in the Intelligent Age."

The report concludes that industrialising machine learning operations (MLOps), enforcing data governance and implementing standardised digital architectures remain key operational priorities for sector participants aiming to manage software updates, cybersecurity and regulatory compliance.

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European automaker Stellantis has signed an agreement with private equity firm Mutares SE & Co. to sell its entire shareholding in the Free2move car-sharing business. The transaction is expected to close by the end of 2026, subject to regulatory approvals and employee consultation processes.

Free2move operates free-floating short- and long-term car-sharing services across 14 cities in Europe and the United States via a mobile application platform. Following the acquisition, Mutares plans to establish the business as an independent mobility entity, focusing on fleet management, transitioning to battery-electric vehicles and operational adjustments for municipal transport requirements.

The divestment aligns with Stellantis' capital allocation strategy under its FaSTLAne 2030 business plan, which prioritises resource allocation towards core automotive operations and high-return technologies.

Virgilio Cerutti, Head of Business Development & Partnerships at Stellantis, said, “By sharpening our focus on core automotive activities, we strengthen our capacity to deliver long-term performance. We are committed to working closely with all stakeholders to support a smooth transition process for customers, partners, and employees.”

Johannes Laumann, Chief Investment Officer, Mutares, added, “Free2move’s car-sharing business combines a strong, internationally recognised brand with clear potential for operational improvement following an intended carve-out from Stellantis. Together with the management team, we look forward to strengthening Free2move’s operating model and further developing the company into an independent leading platform in the mobility sector.”

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