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 automotive industry world over faces significant sustainability challenges, including high carbon and other particulate emissions, depleting resources, supply chain complexities and slower pace of transition to cleaner and greener mobility. Indian automotive industry over and above has additional challenges, where gaps in recycling infrastructure, hazardous waste disposal and end-of-life vehicles (ELVs) management further obstructs sustainability in the sector. The balance between cost and greener technologies is much trickier to handle.

To bring national attention to this burning topic, a Sustainable Mobility Conclave 2025, is planned at NATRAX, Indore, which isn’t just another conference but a movement to reimagine, redesign and reinvent how Indian automotive carve out its sustainable future path.

The mission: A circular, sustainable and low-emission future

With its core theme, ‘Recycling, Circularity and Sustainability in Mobility’, the conclave seeks to align the Indian automotive ecosystem with global best practices on environmental responsibility. The event aims to be a catalyst for change – putting focus on how vehicles and its associated components are designed, manufactured, consumed and, ultimately, responsibly retired.

In view of the End-of-Life Vehicle (ELV) Management Rules and a rising need for compliance under Extended Producer Responsibility (EPR), the conclave arrives at a critical juncture.

Why this conclave?

India is poised to witness 80 million EVs on the road by 2030. But without parallel efforts in circular economy practices, recycling infrastructure and emission reduction, green mobility may not be truly green. The European Union already recovers 95 percent of vehicle materials from scrapped vehicles, a benchmark India must realistically chase.

Switching to recycled materials, embracing bio-based alternatives and integrating green energy into manufacturing are not just environmental mandates anymore – they are strategic business moves. Reduction in import dependency and a stable supply chain is the need of the hour.

What to expect?

This two-day summit is designed to bring together a powerful mix of automotive manufacturers, recyclers, government leaders, startups and academic minds. And the agenda? Packed with purpose.

Day 1 highlights:

• Session 1: Circular economy lessons – Tapping into waste as a resource, with a strong focus on e-waste, industrial scrap and auto components.
• Session 2: Nature’s waste into products – How bamboo, fruit pulp, seaweed and more are being transformed into auto-grade materials.
• Session 3: From policy to practice – Bridging gaps between regulation and action; featuring deep dives into ESG, green data centres and the Right to Repair.
• Session 4: Industry success stories – Real-world case studies from top OEMs on implementing sustainable systems.

Day 2 focus areas:

• Session 5: Beyond metals – Innovation in plastic, rubber and fibre reuse.
• Session 6: Sustainability education – Building a green-ready workforce.
• Session 7: Organisational sustainability – How automotive companies are embedding sustainability into their DNA.
• Session 8: Leadership reflections – A unique dialogue on the societal impact of green mobility transitions.

Join the movement

The Sustainable Mobility Conclave 2025 isn’t just about talks. It’s about transformation. Whether you’re an OEM, policymaker, recycling expert, student or sustainability advocate, this is where the narrative of Indian future mobility is getting actively debated and jointly co-created.

Because sustainability isn’t a choice anymore. It’s the only road ahead!

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Japanese auto major Honda Motor Co recently established a new retail finance company in India, christened ‘Honda Finance India’. The new company will provide customers with retail sales financing services, including loans and lease sales options for Honda products in India.

The automaker states that with demand for two-wheelers and four-wheelers set to grow in India, there will be a significant growth opportunity for retail finance too. Till now, retail sales financing services has been primarily done by local financial institutions in India.

However, Honda aims to further strengthen its business in India by offering its own sales financing services through a local subsidiary in India. For this, Honda Finance India is applying for a Non-Banking Financial Company (NBFC) license to conduct financial services business in India.

The Japanese company states that for it financial services business has been one of the main business areas and it has established local subsidiaries specialising in retail sales financing services in Japan and various countries in key regions such as North America and Europe. With the establishment of the new company, India became the ninth country where Honda has a local subsidiary to offer financial services.

Going forward, in anticipation of the global expansion of software-defined vehicle (SDV) sales in the future, Honda is looking into opportunities to offer new financial services designed to increase customer satisfaction and the value of the customer experience using various data from Honda SDVs.

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Rakesh Srivastava, the former Managing Director of Nissan Motor India, has been appointed as a Partner at Helyxa Consulting Group, a newly launched firm of senior professionals. Srivastava joins a team with over 150 years of collective experience from top-tier companies across various industries.

Helyxa Consulting Group, which was established on India's Independence Day, is focused on enabling India's growth journey and building a ‘Viksit Bharat’ in line with the vision of a USD 30 trillion economy by 2047. The firm aims to accelerate the growth of Indian companies by providing services in key areas including – AI Transformation, Board Advisory, Deals & Partnerships, Innovation in Entrepreneurship, Leadership & Culture Transformation and Planning & Process Transformation.

Srivastava will work alongside other key partners, including Managing Partner Bhanu Sharma, former President and Global Head of HR and IT at Tega Industries, and Partner Raman Madhok, a board member at Johnson Controls Hitachi and former Joint Managing Director and CEO of JSW Steel. The leadership team also includes Bindu Bhatia and Harish Bhatia.

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German luxury automotive brand BMW India is set to increase prices across its entire model range by up to 3 percent beginning 1 September. The company cites continued foreign exchange impacts and rising material and logistics costs as the primary reasons for the price adjustment.

Vikram Pawah, President and CEO, BMW Group India, said the company has seen significant sales growth in the first half of the year.

“BMW India’s growth and sales momentum in the first half of the year has been remarkable. However, factors like continued forex impact and global supply chain dynamics have been leading to increased material and logistics costs. Our commitment to offer best value and experience throughout customer journey is steadfast. In the festive season, we are geared to introduce several new power-packed profiles of our cars. As the strong demand for BMW’s luxurious, pioneering cars continues, we will deliver exceptional performance and innovation to our valued customers,” he said.

At present, BMW sells the locally produced the BMW 2 Series Gran Coupe, BMW 3 Series Long Wheelbase, BMW 5 Series Long Wheelbase, BMW 7 Series, BMW X1, BMW X3, BMW X5, BMW X7, BMW M340i and BMW iX1 Long Wheelbase.

in India. The company also offers a wide selection of imported models, including the BMW i4, BMW i5, BMW i7, BMW i7 M70, BMW iX, BMW Z4 M40i, BMW M2 Coupe, BMW M4 Competition, BMW M4 CS, BMW M5, BMW M8 Competition Coupe and BMW XM (Plug-in-Hybrid) as completely built-up units (CBU).

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