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.

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Chennai-headquartered two-wheeler and three-wheeler major TVS Motor Company has announced the appointment of Peyman Kargar as Director and Chief Executive Officer, effective 27 January 2027.

He will succeed K N Radhakrishnan, who will remain in the role until the transition date before serving as Non-Executive Director until the company's Annual General Meeting in July 2027.

At present, Kargar serves as the President of International Business at TVS Motor Company, overseeing operations that represent 29 percent of the sales volume. He has over three decades of automotive industry experience across Europe, Asia, Africa and the Middle East, covering research and development, manufacturing, quality, sales and marketing.

The leadership change follows a financial year in which TVS Motor Company reported global sales of 5.9 million units and revenue growth of 30 percent. In his upcoming role, Kargar will oversee the manufacturer's domestic operations in India alongside its international expansion into developed markets.

Sudarshan Venu, Chairman, TVS Motor Company, said, "This appointment marks an important step for TVS Motor Company as we prepare for the future. Peyman is an accomplished global leader with deep industry experience, strategic vision and a strong understanding of customers and markets. As President, International Business, he has already made a meaningful contribution to our business, and I am confident he is the right person to lead TVS Motor Company and further strengthen our position among the world's leading mobility companies. At TVS Motor Company, our values and culture are fundamental to who we are and how we operate. I am confident that Peyman will continue to build on these values and work towards our vision of transforming the quality of life of people across the world through mobility solutions that are exciting, responsible, sustainable and safe. I would also like to thank K. N. Radhakrishnan for his outstanding contribution to TVS Motor Company and the wider TVS VENU group over many years. His leadership, passion, and commitment have helped shape the company into the strong organization it is today. I am personally grateful for his valuable counsel, guidance and support."

Peyman Kargar said, “It is a privilege to be appointed as Chief Executive Officer of TVS Motor Company. Building on our momentum, we are entering into a new phase of growth, expanding our presence and further consolidating our position in India and global markets. As we do so, the guiding principles of the TVS Way and its values will always be the North Star. I will be focused on realizing the company’s vision and strengthening our technology leadership, AI capabilities, commitment to quality, and customer centricity. Together, these principles have helped create a culture where individuals and teams can thrive, innovate and deliver exceptional outcomes. I look forward to working closely with our teams in India and around the world to strengthen our position in key markets, deliver for our customers and build on the foundations we have created."

K N Radhakrishnan said, "It has been a privilege to serve TVS Motor Company as CEO and work alongside an exceptional team. I am grateful for the support, commitment and dedication of colleagues across the business, whose efforts have shaped the company that we are today. I am confident Peyman will lead TVS Motor Company with distinction and wish him every success in the role and I look forward to supporting a smooth transition over the coming months."

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Tata Motors Passenger Vehicles has unveiled Tata.Cars as its new consumer-facing global brand identity, alongside the brand line ‘Nothing’s Too Far’. The identity unifies the company's passenger vehicle portfolio under a single master brand across its digital, retail and service platforms.

The legal entity name, Tata Motors Passenger Vehicles, remains unchanged for statutory, regulatory and investor communications, while the vehicle emblem continues on existing and future models.

The new visual identity system introduces a design language termed Parallel Pathways, alongside a custom typeface and a revised colour scheme designated as Ambition Blue.

Shailesh Chandra, Managing Director and Chief Executive Officer, Tata Motors Passenger Vehicles, said, "For decades, we have grown alongside India’s aspirations, helping make the future more accessible through meaningful innovation. From India’s first indigenous car to pioneering electric mobility and making safety mainstream, we have consistently challenged limits and expanded possibilities for millions of customers. Yet, we believe our boldest ambitions remain ahead of us. Today, we proudly introduce Tata.Cars. More than a new brand identity, it is a declaration of intent for the future we envision. Anchored in the promise, ‘Nothing’s Too Far’, it conveys our belief that mobility should open doors, embrace possibilities and empower people to get closer to what matters most to them. As the world moves towards a more connected, intelligent and sustainable future, Tata.Cars will continue creating breakthrough products, experiences and ecosystems that help customers unlock new possibilities and pursue their ambitions without limits.”

The identity consolidation encompasses the automaker's range of internal combustion and electric vehicles across hatchbacks, sedans and sport utility vehicles (SUVs). The branding roll-out will apply to customer touchpoints, retail spaces and service networks across domestic and international markets.

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T-Hub, the world's largest home for startups, has partnered with Honda Digital Innovation India to launch the Honda Innovation Challenge 2.0, an initiative designed to build digital mobility and customer experience applications alongside Indian startups.

The partnership expands upon the initial challenge framework to run three programmes over the next year, providing total project funding of up to INR 48 million. Each challenge will select four startups eligible to receive up to INR 4 million to construct proof-of-concept projects alongside Honda teams over a 12-week period, representing an increase from the INR 1 million offered per project during the first edition.

Furthermore, startups will also gain access to Honda's operational environments and T-Hub's mentorship network to support development leading toward potential commercial integration.

The launch follows the conclusion of the Honda Innovation Challenge 1.0 in May 2026, which selected four companies – Attento Technologies, Xane AI, SenSight Technologies, and AppTestify – to develop proof-of-concept projects covering driver behaviour analysis, vehicle resale evaluation and customer data systems for Honda's dealership network.

Toshiyuki Yanagisawa, CEO, Honda Digital Innovation India, said, “Honda Digital Innovation brings together two important elements: the transformation of people’s lives through digital technology, and the value that we want the Honda brand to create. Our mission is to explore and deliver new forms of value that can make people’s lives better. And Honda Innovation Challenge is the platform where we bring together people who share that ambition – people who have new ideas, new technologies, and the passion to create a better future for customers.”

Kavikrut, CEO, T-Hub, said, “Industries are solving increasingly complex problems, but building every solution in-house can take significant time and resources. Startups bring speed, agility and specialised capabilities to address these challenges. At T-Hub, we bring our industry partners and founders together to co-build solutions around real business needs and move them towards deployment. With automotive being an early adopter of technology, our partnership with Honda creates an opportunity to build in India and take these solutions to the world.”

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Swedish automotive manufacturer Polestar has appointed Arek Nowinski to its Board of Directors, succeeding Francesca Gamboni, who is set to retire from Polestar’s Board.

Till recently, Arek was Head of Eastern Europe, Middle East, Africa and Asia Pacific at Volvo Cars and has held several other senior sales leadership positions during his career. In his previous roles, Arek has also served as the President of Volvo Cars Poland, Senior VP of Volvo Cars EMEA and President of Volvo Cars International Markets. 

He holds an MSc in International Finance from the University of Derby and an MA in Finance and Banking from the Warsaw School of Economics. 

Winfried Vahland, Chair, Polestar, said, “I would like to thank Francesca for her excellent contribution to the work of the Board. I’m also pleased to welcome Arek, who brings significant commercial expertise and experience, as Polestar enters a phase of model expansion and sales network development across existing and new markets.”

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