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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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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ZF Commercial Vehicle Control Systems India Limited (ZF CVCS India) has finalised multi-year supply agreements with three major Indian truck manufacturers for its ESCsmart Electronic Stability Control (ESC) solution. The deals cover 12-volt and 24-volt architectures and are tied to new model launches developed to align with upcoming safety legislation. Local assembly will occur at ZF CVCS India's domestic production hubs, with series manufacturing scheduled to start in the third quarter of 2027.

The regulatory landscape is the primary driver, as Indian authorities have set an October 2027 deadline for mandatory ESC installation on all trucks. With that compliance date approaching, OEMs are securing proven technology partners well in advance, and the nominations reflect a broader industry shift towards active safety adoption ahead of the mandate.

Electronic stability control is globally regarded as a critical tool for preventing rollovers and loss-of-control incidents, with many developed markets already enforcing similar requirements. India's forthcoming regulations represent a meaningful convergence with international norms, and observers anticipate measurable improvements in commercial vehicle accident statistics once the technology becomes standard.

The ESCsmart system is tailored for heavy commercial use, automatically modulating braking and engine torque when sensors detect instability. Its effectiveness in Indian conditions has been validated through deployments on over 60,000 vehicles, while ZF's pedigree includes 20 years of innovation and more than three million global deliveries. The company is providing validation and pre-certification support, positioning the solution as fully compliant with both current and stricter 2027 rules.

Paramjit Singh Chadha, Managing Director, ZF Commercial Vehicle Control Systems India Ltd, said, “As the Indian commercial vehicle industry prepares for the next phase of safety regulations, vehicle stability technologies are evolving from being a differentiator to becoming a fundamental requirement. These business nominations reflect the growing momentum towards advanced active safety systems across the market. With a proven ESC platform, dedicated validation capabilities at our ESC test track and strong local engineering and manufacturing expertise, ZF CVCS India is ready to support OEMs in meeting the upcoming safety requirements with scalable, India-ready solutions.”

Akash Passey, Non-Executive Chairman, ZF Commercial Vehicle Control Systems India Ltd and President – ZF Group in India, said, “We are proud of the confidence our customers have placed in ZF CVCS India and the partnerships we have built. As India enters a defining phase in commercial vehicle safety, OEMs are increasingly prioritising proven technologies that enhance vehicle stability and deliver meaningful safety outcomes at scale. These nominations reinforce ZF CVCS India's leadership in active safety and our readiness to support the industry's transition through proven technology, local manufacturing, advanced validation capabilities and ZF's global expertise in electronic stability control.”

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Delhi-NCR-headquartered alternative energy vehicle company Omega Seiki Mobility has successfully secured strategic funding from Securocorp Securities, Sangeeta Pareekh, Saket Aggarwal Family Office and Vanshika Sharma in New Delhi.

The funds will be deployed to expand manufacturing capacity at production facilities in Faridabad and Pune, strengthen research and development, enhance the dealer network and accelerate electric mobility solutions following Delhi's EV Policy 2026.

Dr. Uday Narang, Founder & Chairman, Omega Seiki Mobility, said, "This investment reflects the confidence investors have in our vision, execution, and long-term strategy. Over the last eight years, we have built a company grounded in manufacturing excellence, innovation, and financial discipline. As India's EV market enters its next phase of growth, we remain committed to delivering sustainable mobility solutions while creating long-term value for our customers, partners, and investors."

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