Ajay Gabhane of Nagpur purchased a Kia Sonet on the eve of Diwali. He mentioned that his family found it right to replace their aging sedan with an exciting compact SUV during the festive season.

Like Gabhane, Tushar Deshpande chose the festive season to purchase a new passenger car during the Diwali festive season in Pune.

It were the individuals like Gabhane and Deshpande who contributed towards a cheerful festive season and Diwali for the Indian passenger vehicle and two-wheeler industry.

After witnessing a slowdown in sales performance during the first and second quarter of FY2023-24, it was the festive season that saw the auto industry uplift its spirit on the back of higher passenger vehicle and two-wheeler sales, albeit asking the underlying challenges that saw dealers and their association go to town stating that inventory levels were at an all-time high.

Until 29 October 2024, passenger vehicle registrations reached a record 4,25,000 units, according to the Vahan data. The previous peak was in January 2024 at 3,99,112 units.

With the Diwali festival spreading into early November, it is expected that that the passenger vehicle registrations will bridge the 4,50,000 milestone. This would mean that almost 15,000 units were registered every day.  

Starting at a slower pace, the festive sales picked up pace only close to Diwali this calendar year with two-wheelers registrations marking the most surge. Inside of the two-wheeler domain, it was the electric two-wheelers that contributed wholesomely to the sales surge. Among India's top electric two-wheeler OEMs, Ola Electric lead the pack with TVS Motors a close second and Bajaj Auto a close third.

Contributing handsomely to what is already considered as the record sales year (FY2024-25) for electric two-wheeler sales stood at 109,643 units as on 28 October 2024, as per the Vahan portal data.

This electric two-wheeler sales performance in the country should provide an interesting insight into how the Indian EV market is progressing and shaping up as well. 

With the main celebratory period of Diwali falling during the last days of October made for an interesting trend in terms of October 2024 sales and November 2024 sales.

With a sale of no less than 115,000 units expected by the time Diwali gets over in early November 2024, a significant uptake in sales performance would have been written in the financial books as compared to the sale of 88,156 units in September 2024.

The superior performance of two-wheeler sales overall as compared to passenger cars during the festive season could be attributed to the uptake in rural markets of the country, read a report by Motilal Oswal Financial Services. During the festive season, the commuter two-wheelers experienced the highest traction among the ICE models and electric powered ones, the report mentioned.

In his LinkedIn post, Ravi Bhatia, President and Director, Jato Dynamics, averred, “India's automotive sector experienced a classic relief rally in October 2024, driven by festive sentiment and aggressive discounting. However, with the impending Vehicle Identification Number (VIN) year change requiring sustained discounts, questions arise about the rally's sustainability.”

The challenges, he said, were the sub-INR 10,00,000 passenger vehicle segment continuing to be under pressure, the upcoming VIN year change necessitating continued discounts and the question of demand sustaining post the festive season.
 

Image for representative purpose only.

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The Indian automobile sector has seen a wave of capital raising and acquisitions, according to an Equirus Capital report.

The finding stated that in recent months, the automotive industry in India has seen massive transactions such as Craftsman Automation raising INR 20 billion and Ola Electric Mobility raising INR 7.8 billion.

Furthermore, Simple Energy secured INR 2.5 billion, while JBM Ecolife Mobility obtained INR 7.5 billion for fleet expansion. Additionally, Rane (Madras) agreed to acquire Hindustan Composites' friction business for INR 3.7 billion and Sona BLW Precision Forgings approved INR 630 million for robotics manufacturing.

Automobile retail sales reached 2.53 million units in May 2026, a 9.55 percent increase compared to the previous year. Passenger vehicle sales rose 23.25 percent to 403,000 units. Rural markets recorded growth of 30.35 percent, outpacing urban markets at 18.80 percent.

Commercial vehicle sales in rural areas grew 8.10 percent, compared to 2.62 percent in urban areas. Two-wheeler retail sales increased by 7.54 percent to 1.84 million units.

Electric vehicle (EV) adoption continues to grow, with EV penetration in two-wheelers reaching 9.25 percent. In the passenger vehicle segment, CNG and EVs accounted for over 38 percent of retail sales. The Delhi Government has also notified a policy with a plan of INR 150 billion to encourage EV adoption.

The report noted that despite month-on-month volume moderation, the sector shows sustained demand and investor interest. According to Equirus Capital, the flow of investments and developments in the EV ecosystem support the outlook for the industry.

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Following the inauguration of the Kharkhoda vehicle manufacturing facility, Toshihiro Suzuki, President of Suzuki Motor Corporation, and Hisashi Takeuchi, Managing Director and CEO of Maruti Suzuki India, visited the Japan-India Institute for Manufacturing (JIM) in Manesar and the Institute of Driving and Traffic Research (IDTR) in Bahadurgarh.

At the JIM in Manesar, the leadership team observed the training programmes that focus on technical expertise, manufacturing practices, and safety. Later, they visited the IDTR in Bahadurgarh to review the driving training provided at the facility.

Toshihiro Suzuki, said, “It was the greatest possible honour for Suzuki in India when both the Hon’ble Prime Ministers of India and Japan inaugurated our Kharkhoda plant yesterday. This places even more responsibility on us to recommit and rededicate ourselves to Viksit Bharat. The foundation of this is human development. I immediately decided to visit today our institutes for road safety – IDTR in Bahadurgarh – and for skill development – JIM in Manesar.”

At present, Maruti Suzuki India manages four JIM locations in Mehsana, Gandhinagar, Manesar, and Sonipat. These institutes provide vocational training accredited by the National Council for Vocational Training and the Ministry of Economy, Trade and Industry, Japan. The training follows a system that combines classroom instruction with industry exposure.

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European automotive Group Stellantis recently hosted 300 suppliers in Paris to discuss its faSTLAne 2030 strategy. The convention included supplier partners, regional leadership and global purchasing executives, focusing on collaboration and execution for the European market.

The event outlined the company’s vision for growth and product renewal. Leaders stressed that achieving these goals requires accountability across the value chain.

Emanuele Cappellano, COO for Enlarged Europe & European Brands and Head of Stellantis Pro One, said, "Europe is entering a pivotal period as we execute our long-term strategy and bring an exciting wave of products and technologies to market. Success depends on our ability to execute together. Our suppliers are essential partners in that journey, helping us deliver the quality, innovation, and competitiveness our customers expect. By working as one team, we can strengthen our performance and position Stellantis for long-term success in Europe."

A recurring theme was the necessity of collaboration and communication between Stellantis and its supply base to support product launches and operations.

Monica Genovese, Chief Purchasing Officer, Stellantis, said, "Creating value starts with strong partnerships. Our suppliers are critical contributors to every vehicle, every launch, and every customer experience. We are committed to being a Customer of Choice by strengthening engagement, listening to feedback, and working together to solve challenges. The path to achieving our objectives is built on trust, accountability, and a shared commitment to execution."

Quality was identified as a core component of the business strategy, with leaders noting that suppliers influence the customer experience from production to long-term reliability.

Stephane Dubs, Senior Vice-President, Purchasing, Enlarged Europe, Stellantis, said, "Quality is a shared commitment across our entire ecosystem; it is not the responsibility of only one team or one organisation. Every decision we make impacts the customer experience. Together with our suppliers, we must continue to raise the bar on cost competitiveness, quality, responsiveness and execution to strengthen customer loyalty and ensure the success of our brands."

The convention offered suppliers direct access to the company’s purchasing teams to align on future priorities.

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Cars24, one of the leading vehicle buying and selling marketplaces, has removed its traditional levels, grades and job titles, replacing them with a structure called ‘Flatland’. Under this model, all employees share the title of ‘Builder’, shifting the focus from organisational rank to the problems they own and the outcomes they produce.

The company stated that this change is a response to the impact of AI on organisational structure. By removing hierarchy, Cars24 aims to improve decision-making and coordination.

Vikram Chopra, Builder at Cars24, said, “Hierarchy was one of humanity's greatest inventions. It helped organisations scale when information was scarce. AI fundamentally changes that equation. Today, intelligence and context are increasingly available to everyone. The role of an organisation is no longer to move decisions up and down layers. It's to help exceptional people solve exceptional problems together. Flatland is our attempt to build an organisation for that reality.”

Under Flatland, leadership is defined by execution and customer impact rather than position. Policies regarding benefits and assets are no longer linked to rank but to role requirements and universal benefits.

The company reports that it has tested this model over the past 18 months, resulting in a 50 percent YoY increase in revenue per employee in the second half of FY2026 and a contribution of nearly 300 basis points to EBITDA. Cars24 currently operates in India, the UAE and Australia, and reports reaching global profitability this year.

“We don't believe removing titles automatically creates a great culture. Culture comes from behaviour. Flatland simply removes the shortcuts that let people mistake position for contribution. We want the person closest to the problem to feel empowered to solve it regardless of where they joined or how long they've been here,” concluded Chopra.

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