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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Mumbai-headquartered automotive major Mahindra & Mahindra has executed a binding agreement to raise approximately INR 3.22 billion for its electric commercial vehicle subsidiary, Mahindra Last Mile Mobility (MLMML). The investment transaction values the last-mile transport business at INR 108.22 billion.

The funding round was led by global investment firm Lightrock, with participation from existing investors International Finance Corporation (IFC) and the India-Japan Fund (IJF), managed by National Investment and Infrastructure Fund (NIIF).

The capital injection follows sales metrics recorded by the subsidiary, including an 85 percent YoY volume increase in electric three-wheelers during the first quarter of FY2027 and sales exceeding 100,000 units in FY2026.

Dr Anish Shah, Group CEO & MD, Mahindra Group, said, “We welcome Lightrock as a partner marking a pivotal milestone in our last mile mobility initiative, highlighting the transformative potential of our growth gems. Our robust business model continues to draw top-tier investors. With Lightrock joining alongside IFC and IJF, MLMML has now achieved unicorn status in the electric vehicle market. This investment brings us closer to our goal of deploying 1 million EVs on India roads by 2031 and solidifies our leadership in the electric commercial vehicle sector.”

Rajesh Jejurikar, Executive Director and CEO - Auto & Farm Sector, Mahindra & Mahindra, said, “This investment from Lightrock reinforces Mahindra Last Mile Mobility’s leadership in the EV space. With around 40 percent market share in the L5 segment, it is at the forefront of a market that has rapidly scaled from 12 percent to 40 percent electrification in just two years. We are proud to be India’s No.1 electric commercial vehicle manufacturer for the fourth consecutive year. Crossing 100,000 EV sales in FY26 and 6 billion e-kilometres cumulatively underscores the trust of our customers and our commitment to driving sustainable, inclusive growth.”

Samir Abhyankar, Partner and Head of India, Lightrock, said, “It is a privilege to partner with the Mahindra Group through Lightrock’s investment in Mahindra Last Mile Mobility. The leadership team has done an exceptional job of building the company from the ground up into a market-leader in electric three-wheelers, underpinned by a focused strategy and outstanding execution ability. Lightrock is excited to support the Group as it continues to build sustainable, high-growth businesses capable of meeting the evolving needs of tomorrow’s India.”

At present, Mahindra Last Mile Mobility holds approximately 40 percent market share in the L5 electric three-wheeler category in India. The fund raised from the round will support product engineering, expansion of manufacturing operations and fleet deployment plans targeting one million electric vehicles by 2031.

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Honda Motor Co, one of the leading passenger vehicle manufacturers, has appointed Toshiyuki Yanagisawa as President and Chief Executive Officer of Honda Cars India (HCIL), effective 1 October 2026.

He will succeed Takashi Nakajima, the outgoing President and Chief Executive Officer, who will transfer to Asian Honda Motor Co., at the regional headquarters upon completion of his term in India.

Yanagisawa, an Operating Executive at Honda, currently serves as head of the India Strategic Development Office and Chief Executive Officer of Honda Digital Innovation India (HDII). In his new role, he will manage operations across both HCIL and HDII.

The structural alignment follows Honda's designation of India, North America and Japan as primary markets for its growth strategy. The India Strategic Development Office has established market plans to support business expansion in the country. Development initiatives for a vehicle scheduled for market launch in 2028 have transitioned from planning to execution.

Yanagisawa previously held positions within HCIL during earlier international postings at Honda, providing experience with domestic market operations, consumer demographics and regulatory frameworks.

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CASE Construction Equipment, a brand of CNH, has appointed Sachin Tare as Director of Manufacturing to oversee operations at its plant in Pithampur, near Indore, Madhya Pradesh.

He will manage operational execution, quality control and productivity at the facility to support the company's domestic market distribution and export strategy.

Tare comes with over three decades of experience across the engineering and automotive sectors in manufacturing, supply chain management, logistics and business transformation.

Prior to joining CASE, he served as Assistant Vice-President of Operations at BirlaNu (formerly HIL). His career includes nearly three decades at Mahindra & Mahindra, where he held leadership positions covering procurement, supply chain logistics and plant operations.

The Pithampur facility functions as CASE's primary manufacturing hub for the Asia Pacific region. Operating in India since 1989, the company manufactures backhoe loaders, vibratory compactors and related construction machinery at the site for the Indian market and for export to more than 100 countries.

Sachin Tare, said, "I am excited to join CASE Construction Equipment at a time when India's construction equipment industry is witnessing strong momentum driven by infrastructure-led growth. CASE India has built a strong legacy of engineering excellence and earned the trust of customers over the years. I look forward to working closely with the team to deliver cutting-edge equipment engineered in India for India and the world, while advancing manufacturing excellence across our operations. Together, we will build on this legacy and contribute to CASE's continued growth while reinforcing India's role as a global manufacturing hub."

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German tier 1 supplier ZF’s Supervisory Board has appointed Sebastian Schmitt to the company's Board of Management, effective 1 September 2026.

He will oversee the Electrified Powertrain Technology division alongside responsibility for the Americas region. Schmitt succeeds Dr Peter Holdmann, who will step down from the Board of Management on 31 August 2026 after choosing not to renew his contract. Following Holdmann's departure, Chief Executive Officer Mathias Miedreich will assume responsibility for the Chassis Solutions division as well as ZF Group R&D.

Schmitt joined ZF in 2000 after graduating in industrial engineering from TU Ilmenau. Prior to his appointment to lead the Electrified Powertrain Technology division in November 2025, he managed the Electrified Powertrain Systems product line, held a post at ZF's Saltillo facility in Mexico and served as MD of the transmission plant in Brandenburg.

Holdmann joined ZF in 2000 and held management positions within passenger car chassis operations. Following the acquisition of TRW, he led the former TRW chassis operations from 2015 to 2018. In late 2023, he oversaw the merger of ZF's chassis operations into the unified Chassis Solutions division, joining the Board of Management on 1 May 2024 and adding the responsibilities of Chief Technology Officer in March 2026.

Dr Rolf Breidenbach, Chairman, ZF Supervisory Board, said, "The Supervisory Board thanks Dr. Peter Holdmann for his commitment and steady leadership in integrating and developing the Chassis Solutions division. In recent years, ZF has established a leading position in chassis technology, particularly in by-wire braking and steering systems. We respect his decision not to seek another term and thank him for his service. Sebastian Schmitt knows the Electrified Powertrain Technology division inside out and helped the restructuring produce early results. The priority now is to maintain that progress."

Mathias Miedreich, CEO, ZF, said, "Dr. Peter Holdmann has been a committed team player. On behalf of the Board of Management, I thank him for his collaborative approach and his contribution to ZF s transformation. I look forward to working with Sebastian Schmitt on the board."

Simon Blümcke, Mayor of Friedrichshafen, representing majority shareholder the Zeppelin Foundation, said, "Dr. Peter Holdmann served ZF for more than 25 years. I thank him for his long service and his contribution to the company. I congratulate Sebastian Schmitt on his appointment to the ZF Board of Management."

Dr Peter Holdmann said, "By integrating chassis electronics and ZF Race Engineering, we advanced the restructuring of the Chassis Solutions division. ZF s vehicle-dynamics solutions are gaining recognition and demand worldwide. After more than 26 years at ZF, this milestone makes it the right time for me to begin a new chapter. I thank the highly capable team I have worked with over the years. I am confident it will continue the transformation to Chassis 2.0 with innovation, determination and strong execution."

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