India’s Auto Industry Rides the Momentum: Record Highs & Renewed Optimism Mark FY 2024-25

Auto Sales / Pexels

The latest data released by the Society of Indian Automobile Manufacturers (SIAM) show that the Indian automotive industry wrapped up FY 2024-25 with a solid performance, driven by resilient domestic demand, an uptick in exports, and a renewed push toward green mobility.

While the pace of growth varied across segments, the industry overall clocked a healthy 7.3 percent increase in domestic sales, reinforcing its steady recovery trajectory in a post-pandemic economy.

The passenger vehicles segment posted its highest-ever annual sales, breaching the 4.3 million mark – a 2 percent rise over the previous year. Although the high base of FY 2023–24 tempered the growth rate, the segment continued to impress with its scale.

SUVs emerged as the dominant sub-segment, accounting for 65 percent of total PV sales, up from 60 percent last year.

The market responded enthusiastically to new launches and customer demand towards higher ground clearance models. It is also important to note that discounts and promotions kept demand buoyant.

On the exports front, a record 770,000 units were shipped, up 14.6 percent, fuelled by demand from Latin America, Africa and emerging interest from developed markets.

India’s ubiquitous two-wheelers rebounded strongly with 19.6 million units sold, marking a 9.1 percent growth over the previous year. The scooter category led the charge, boosted by improved rural and semi-urban road connectivity.

EV penetration crossed 6 percent, reflecting a growing preference for sustainable options.

Two-wheeler exports rose by 21.4 percent, supported by macroeconomic stability in Africa and expansion into Latin American markets.

The three-wheeler segment on the other hand scaled new highs with 741,420 units sold, a 6.7 percent growth over FY 2023–24. Urban and semi-urban demand for last-mile transport, especially electric models seem to have played a key role.

The commercial vehicles segment posted a slight 1.2 percent decline in annual sales, though Q4 offered a glimmer of hope with a 1.5 percent uptick. Light CVs struggled, while Medium & Heavy CVs (M&HCVs) remained steady. Infrastructure development spurred demand for buses and higher-GVW trucks.

CV exports jumped by 23 percent, indicating global recovery in freight mobility.

In terms of EV sales, the country saw 1.97 million green vehicles sold, up 16.9 percent, with electric two-wheelers seeing a 21.2 percent rise in registrations.

Looking Ahead: Optimism with Caution

The industry body stated that going forward leaders are cautiously optimistic about FY 2025–26. Normal monsoon forecasts are expected to aid rural demand. Recent personal income tax reforms and RBI rate cuts could boost vehicle financing and overall consumer sentiment. Continued export momentum, especially in Africa and neighbouring regions, will offer strategic resilience.

But on the other hand, challenges loom in the form of global geopolitical tensions and evolving supply chain dynamics.

Shailesh Chandra, President, SIAM, said, “The Indian automobile industry continued its steady performance in FY2024–25, driven by healthy demand, infrastructure investments, supportive government policies and continued emphasis on sustainable mobility. Passenger vehicles, two-wheelers and three-wheelers grew in FY2024-25 compared to FY2023-24, but growth rates have been varied across segments. Passenger vehicles and three-wheelers witnessed a moderate growth on account of the high base effect but saw the highest-ever sales in these categories, while the two-wheeler segment registered strong growth in FY2024-25. However, commercial vehicles witnessed a slight degrowth in the FY2024-25, though performance in recent months has been comparatively better. On the exports front, good recovery is seen across all segments, particularly passenger vehicles and two-wheelers reflecting improved global demand and India's growing competitiveness. In FY2024-25, the government of India introduced the PM E DRIVE scheme and PM e-Sewa schemes which underscores the firm commitment of the Government towards promoting sustainable mobility. Looking ahead, the backdrop of stable policy environment, along with recent measures such as reforms in personal income tax and RBI’s rate cuts, will help in supporting consumer confidence and demand across segments.

ZF Group Showcases Comprehensive Mobility Portfolio At Prawaas 5.0

ZF Group Showcases Comprehensive Mobility Portfolio At Prawaas 5.0

ZF Group has taken a prominent position at Prawaas 5.0, India’s premier multimodal transport exhibition, currently underway in Gandhinagar, Gujarat. The event, hosted by the Bus and Car Operators Confederation of India (BOCI), runs from 9 to 11 July 2026 at the Helipad Exhibition Centre, gathering industry leaders, government officials and technology providers to deliberate on the future of mobility.

ZF Group is presenting an extensive array of Original Equipment and Aftermarket solutions aimed at accelerating India's shift towards safer roads and cleaner commercial transportation. The company's exhibit spans electrification, braking systems, chassis engineering, advanced safety features and digital connectivity, underscoring its strategic intent to equip the Indian market with innovations that enhance performance and environmental sustainability.

A standout feature is the AxTrax 2, an integrated electric axle for light and medium-duty buses that consolidates the electric motor, inverter, electronic control unit and transmission into a compact housing. This system delivers high efficiency and power output, making it suitable for battery-electric, fuel-cell and trolley bus applications, thereby facilitating local zero-emission public transport.

Complementing this is the RL82A front axle system for city buses, featuring a low-floor design with a wide centre aisle and steering angles up to 55 degrees for improved manoeuvrability in congested settings. The system also incorporates low-maintenance construction and internally ventilated disc brakes, enhancing passenger comfort and active safety in demanding urban environments.

Additional offerings include Door Control Solutions with clamping protection and emergency functions, along with advanced driver assistance systems, electronic braking and stability controls, tyre pressure monitoring and connected technologies like Bus Connect. The Aftermarket division presents fleet-oriented products including 360-degree camera systems, brake components and maintenance essentials to ensure vehicle uptime and lifecycle reliability.

ZF Group India’s leadership is also contributing to industry conversations – Paramjit Singh Chadha, Senior Vice President, ZF Group, will be a lead panellist at the session ‘Electrifying School Bus Transport for a Cleaner Future’, held on 10 July. Through its comprehensive presence at Prawaas 5.0, ZF is reinforcing its dedication to India’s public transport evolution, showcasing safer, cleaner and more connected mobility solutions at Booth 12 A6C.

Akash Passey, President, ZF Group India, said, "India's public transport ecosystem is undergoing a fundamental transformation, driven by rapid urbanisation, sustainability goals and an increasing focus on road safety and operational efficiency. At ZF, we are enabling this transition by bringing together globally proven technologies and local engineering expertise to support our customers across every stage of their mobility journey. Our participation at Prawaas 5.0 reflects our commitment to delivering integrated solutions that not only address today's transportation challenges but also lay the foundation for a connected, electrified and software-driven future for commercial vehicles in India."

Paramjit Singh Chadha, Senior Vice President, ZF CVS India,  said, "The future of bus mobility will be defined by intelligent systems that seamlessly integrate safety, electrification, connectivity and vehicle control. At ZF, we are developing scalable technologies that help OEMs and fleet operators improve vehicle performance, passenger safety, operational uptime and total cost of ownership while preparing for the next generation of commercial vehicles. Through our comprehensive portfolio showcased at Prawaas 5.0, we continue to support India's transition towards smarter and more sustainable public transportation."

Honda India Foundation Begins Construction Of Road Safety Centre In Gujarat

Honda India Foundation - Road Safety Centre Gujarat

The Honda India Foundation (HIF) has held a ground-breaking ceremony for a Road Safety Centre of Excellence (CoE) in Viramgam, Gujarat.

The centre is designed to provide road safety education through training and simulation-based learning. It is scheduled to open in 2027 and is expected to provide safety programmes for 5,000 people each year.

The CoE will feature a Road Safety Education & Awareness Wing equipped with training tools for students, youth groups and local communities. Additionally, it will include an Accident Research & Data Analytics Unit to examine traffic patterns, identify risk locations and assist with safety audits.

Vinay Dhingra, Trustee, Honda India Foundation, said, “Road safety requires a combination of awareness, training and data-driven insights. Through this Centre of Excellence, we aim to create a practical platform that supports safer road behaviour, promotes road safety education and contributes to more informed safety interventions. This initiative reflects Honda India Foundation's continued commitment to strengthening road safety awareness and fostering safer road-use practices at the community level.”

Gyanender Singh Malik, Director General of Police, Gujarat State, said, “We appreciate Honda India Foundation’s support in setting up this Road Safety Centre of Excellence in Gujarat. The Centre will help strengthen structured road safety education and support data-led interventions for safer roads. Such collaborations add value to the state’s efforts towards improving road safety awareness and reducing road accident risks.”

Jean-Philippe Salar

French automotive major Renault India has further deepened its India commitment with strengthening of its design team in the country.

The company has roped in Jean-Philippe Salar as the new Design Director at Renault Design Centre India. He succeeds Julien Sabatier, who is set to take on the role of Head of Design Factory India and UI Management.

Sabatier led the Design Studio for the last three years and, on his part, was instrumental in setting up Renault’s Design Studio in India as part of the French automakers ‘renault. rethink’ strategy. He delivered over 10 projects for Renault for both India and Europe market and played a key role in the introduction of the new Duster SUV in India.

In his new role, he will focus on developing and industrialising future projects and implementing UI (User Interface) functions in India.

Salar is a Renault Group veteran having started his journey with the French automotive brand in 1996, and has extensive design experience across brands such as Renault, Dacia, LADA and Mobilize.

The design centre is part of the company’s ‘design in India’ and ‘make in India’ strategy. It functions as a hub of excellence, particularly due to its proximity to Renault Nissan Technology & Business Centre India (RNTBCI).

MG Unveils Future Roadmap, New Plug-in Hybrid System At Tech Day 2026

SolidCore Battery Tech

China’s SAIC Motor-owned British marquee brand MG has unveiled its technology roadmap centred on its next-generation Plug-in Hybrid+ systems, SolidCore battery integration and advanced driver assistance systems (ADAS) at MG Tech Day at its UK headquarters in London.

The automaker unveiled its new Plug-in Hybrid+ system, which features 1.1-litre and 1.5-litre turbocharged petrol engines. The company states that it achieves thermal efficiencies exceeding 42 percent. The powertrain incorporates a hybrid transmission with two technologies: Power Split and Motor Decoupling. The latter isolates the generator during electric driving to improve energy efficiency.

The first model to feature this system will be the MG ZS Plug-in Hybrid+, scheduled for launch in 2027.

MG also confirmed the introduction of its SolidCore battery across future Plug-in Hybrid+ models. This semi-solid-state technology is designed to provide consistent power delivery and range stability across various temperatures and driving conditions. The battery will debut in three upcoming B, C and D-segment SUVs.

Furthermore, MG is refining its driving assistance technologies using data collected from over 1.2 million kilometres of driving across 24 European countries.

The One Touch iAD system for parking is production-ready, supporting scenarios such as kerbside parking, reverse paths of up to 100 metres and exit manoeuvres in tight spaces.

A highway assistance system capable of managing motorway entry, exit and lane changes is scheduled for a late 2027 debut in a new MG SUV. Urban NOA capabilities are planned for 2028.

Lastly, the company is conducting Level 4 Robotaxi trials across Europe, the Middle East and China to support long-term mobility research.

MG company stated that these developments reflect a focus on ‘making advanced technology more accessible, useful and relevant for everyday drivers.’