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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Germany-headquartered world’s largest chemical producer BASF has completed the transaction with Carlyle involving its coatings business, which now operates as Surventis.

The deal, which reached an enterprise value of EUR 7.7 billion, concluded on 30 June 2026 following regulatory approval with BASF receiving pre-tax cash proceeds of approximately EUR 5.8 billion.

Under the terms of the agreement, BASF retains a 40 percent equity stake in Surventis, which includes the automotive OEM coatings, automotive refinish coatings and surface treatment operations. This transaction, combined with the divestiture of the decorative paints business in 2025, values the former Coatings division at EUR 8.7 billion.

Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE, said, “This successful closing marks a key milestone in the execution of our Winning Ways strategy aimed at unlocking the value of our standalone businesses. By holding a 40 percent equity stake, we will continue to participate in the future value creation of the coatings business while sharpening BASF’s strategic focus.”

Anup Kothari, Member of the Board of Executive Directors, BASF SE, added, “We are convinced that the new ownership structure provides an excellent foundation for future profitable growth of Surventis. We wish the former BASF Coatings employees every success as they move forward into their future as an independent company.”

BASF has accounted for the coatings business as discontinued operations since September 2025. From July 2026, the 40 percent stake in Surventis will be treated as a financial investment accounted for using the equity method.

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Pune-headquartered global product engineering and digital services company Tata Technologies and automotive component supplier Tenneco have signed an agreement to expand their partnership, committing to technical development and digital innovation.

The collaboration, which began in 2021, is based at Tata Technologies’ Global Engineering Center in Pune. It focuses on product development and operations through the use of engineering, digital technologies, and AI.

The agreement was signed by Jon Bagrosky, Chief Administrative Officer of Tenneco, and Warren Harris, CEO and Managing Director of Tata Technologies.

As part of the understanding, Tenneco plans to invest over USD 100 million in this engagement over the next five years.

Jon Bagrosky, said, “This next phase builds on the strong foundation we’ve established with Tata Technologies and reflects the continued importance of India as a strategic growth region for Tenneco. By expanding this partnership, we are strengthening the capabilities, scale and agility needed to support our customers, respond to evolving market needs and deliver long-term value across our global business.”

Warren Harris, said, “Tenneco has been a valued strategic partner, and this expanded engagement reflects the strength of our shared commitment. As Tenneco accelerates its mobility transformation journey, we are proud to bring together deep domain expertise, digital capabilities, and business transformation experience to support Tenneco’s global growth agenda.”

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Hero MotoCorp, the world’s largest two-wheeler manufacturer, has announced a cumulative investment of over INR 32 billion in Andhra Pradesh.

The announcement was made as the company held a foundation stone ceremony for its second Global Parts Centre (GPC) in Tirupati, which involves an investment of Rs 7.5 billion.

N Chandrababu Naidu, Chief Minister of Andhra Pradesh, said, “Hero MotoCorp has been a valued partner in Andhra Pradesh's growth journey, and particularly in the transformation of Rayalaseema. Its decision to establish the Global Parts Centre in Tirupati is a strong endorsement of our state's progressive policies, world-class infrastructure, investor-friendly ecosystem, and our commitment to the Speed of Doing Business. Over the years, Hero MotoCorp's presence has generated thousands of jobs, strengthened local supply chains, enhanced skills, and accelerated economic growth across Rayalaseema and Andhra Pradesh. We are delighted to see this partnership grow even stronger. This landmark investment will create new opportunities for our youth, strengthen the industrial economy of Rayalaseema, and further establish Tirupati as one of India's leading manufacturing, mobility and logistics hubs. As Rayalaseema emerges as a major centre for industry, innovation and advanced manufacturing, partnerships like these will play a defining role in shaping its future. We deeply appreciate Hero MotoCorp's continued trust in Andhra Pradesh and look forward to working together to build a future-ready, globally competitive industrial ecosystem that drives innovation, creates quality employment, and delivers sustainable prosperity for all.”

Dr Pawan Munjal, Executive Chairman, Hero MotoCorp, said, "At Hero MotoCorp, we have always believed that business growth and nation-building go hand in hand. The foundation stone of our second Global Parts Centre in Tirupati marks an important milestone in our journey and reflects our deep confidence in India’s future and Andhra Pradesh’s vision for growth. By transforming Tirupati into a future-ready manufacturing and electric mobility hub, this investment will enhance our global supply chain, support our expansion across markets, and reaffirm our commitment to 'Made in India, for India and the World.' It is deeply meaningful to mark this milestone on the birth anniversary of my father, our Founder and Chairman Emeritus, Dr. Brijmohan Lall Munjal. He believed in building enduring institutions and always preparing for the future. It is deeply meaningful to mark this milestone on the 103rd birth anniversary of my beloved father, our Founder and Chairman Emeritus, Dr. Brijmohan Lall Munjal. A true visionary, he championed the belief that great institutions are not just built to survive the present but are actively sculpted to lead the future. This Centre is a humble tribute to his vision, values and enduring belief in India’s potential. I am certain that this new Centre will proudly carry forward his legacy of enterprise, purpose and service to the nation.”

The Global Parts Centre is expected to support domestic and international operations. The company plans to scale the annual production capacity of the Tirupati plant to between 1.2 and 1.5 million units. The expansion is projected to create 4,000 jobs.

Furthermore, Hero MotoCorp also introduced two community programmes the ‘Dr. Brijmohan Lall Munjal Heroes of Tomorrow Scholarship’ to provide tuition coverage for students pursuing engineering degrees at state IIITs. And the company would deploy VIDA electric scooters and providing safety training for women police personnel in the Tirupati district.

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Automotive component supplier Rane (Madras) has signed a business transfer agreement to acquire the friction business of Hindustan Composites on a slump sale basis for an enterprise value of INR 3.7 billion.

The acquired business includes manufacturing plants in Paithan and Bhandara, Maharashtra. The facilities manufacture brake pads, brake linings, clutch facings and brake blocks.

The agreement also includes the transfer of the ‘COMPO’ brand name, which is intended to increase market access across distribution and aftermarket channels. Rane’s (Madras) existing friction business generates revenue exceeding INR 7 billion and the merger of these operations will scale the friction materials business to more than INR 10 billion.

Harish Lakshman, Chairman, Rane Group, said that the integration of the complementary operations is intended to build a scaled friction solutions platform to service the domestic transportation sector while creating manufacturing and supply efficiencies. The company expects the transaction to reach financial and operational closure by the end of the second quarter of the current fiscal year.

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