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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TVS Supply Chain Solutions has signed a Memorandum of Understanding with Japan-based Sankyu Inc. to collaborate across supply chain and engineering services.

As part of the agreement, Sankyu intends to acquire a 0.5 percent equity stake in TVS Supply Chain Solutions, subject to regulatory approvals.

The partnership combines TVS Supply Chain Solutions' logistics network in India with Sankyu's engineering capabilities and corporate connections in Japan. Initial operations will focus on serving manufacturing and industrial clients in India, where over 1,400 Japanese companies operate.

Future plans include expanding joint operations into regions across Asia, the Middle East, Africa and additional international markets where both firms hold established infrastructure.

To manage operations under the agreement, the companies will form a joint steering committee with representatives from both organisations to identify operational opportunities and oversee joint initiatives.

R. Dinesh, Chairman, TVS Supply Chain Solutions, said, “This partnership represents an important step in our strategy to strengthen our capabilities and create greater value for customers. Sankyu's engineering expertise and deep relationships across the Japanese industrial ecosystem complement TVS Supply Chain Solutions' integrated supply chain capabilities, strong customer relationships and market presence. We share a strong commitment to long-term value creation, and together we are well positioned to deliver more comprehensive solutions, support the evolving needs of manufacturing and industrial customers, and unlock new growth opportunities across India and other strategic markets.”

Kimihiro Nakamura, President and CEO, Sankyu Inc, said, "Since our inception in 1918, Sankyu has been dedicated to supporting the progress of the manufacturing sector, underpinned by our core philosophy of valuing our people. We are profoundly honoured to enter into this partnership with TVS SCS, an organisation that shares our philosophy and commitment to the highest ethical standards. Our two companies possess a strong strategic alignment, and by integrating and complementing our respective strengths, we look forward to achieving collective growth in the global market and contributing to sustainable industrial development."

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Vietnamese automotive company VinFast has expanded the role of its India Chief Executive Officer, Tapan Ghosh, to oversee operations in Indonesia, uniting the company's management structure across both regional markets.

Interestingly, Ghosh becomes Chief Executive Officer for VinFast Operations across both countries, making him the first executive from India to manage multiple markets for the Vietnamese company.

Since joining the Vietnamese brand in 2025 from Hyundai Motor India, Ghosh has managed local manufacturing setups, dealership distribution expansion and product strategies. His new responsibilities will include overseeing the development of a complete knock-down (CKD) assembly operation in Indonesia.

The dual-country manufacturing and distribution setup establishes operational hubs for VinFast across South Asia and Southeast Asia, supporting its strategy to expand production beyond Vietnam.

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Chinese automotive major Geely Automobile Holdings has announced changes to its board of directors and executive leadership structure, effective 18 August 2026, as part of its succession planning framework.

Li Shu Fu has resigned as Chairman of the Board and Executive Director to focus on other business commitments. He has accepted an appointment as Honorary Chairman for Life, a role outside the formal corporate governance structure. Li remains a controlling shareholder of the company and confirmed that he has no disagreement with the board regarding his departure.

On the other hand, Executive Director An Cong Hui has been appointed Chairman of the Board. The board cited An's operational experience within the group and strategic alignment with the controlling shareholder entity as factors supporting the appointment. Independent non-executive directors will continue to oversee potential conflict management protocols under Hong Kong Stock Exchange listing rules.

Further board adjustments include the resignation of Li Dong Hui, Daniel, from the role of Vice-Chairman. He retains his seat as an Executive Director. Gui Sheng Yue has stepped down as Chief Executive Officer and assumed the role of Vice Chairman while remaining an Executive Director.

Following Gui's transition, Executive Director Gan Jia Yue has been appointed Chief Executive Officer. Gan assumes responsibility for managing the group's operational activities and executing long-term business objectives.

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Mumbai-based automotive major Mahindra Group is preparing to test the waters of India’s nascent lifestyle pickup segment, while accelerating a deliberate international expansion and doubling down on its electric vehicle ambitions.

It was on 14^th August that Mahindra took the wraps off its much-anticipated global pickup truck christened – ‘Mahindra Lifestyler’ and ‘Scorpio Lifestyler’ (for India market), based on the popular Scorpio SUV. While the technical details and pricing have still been kept under wraps, what's known is that it will be available in three variants - Trail, Valley and Reef editions. It will be launched by April 2027 with prices starting under INR 1.95 million (ex-showroom). 

R Veluswamy, President - Automotive Technology & Product Development, Mahindra Group and Nalinikanth Gollagunta, CEO, Automotive Division, Mahindra & Mahindra, outlined a strategy rooted in what they describe as latent customer demand rather than existing market size.

“The latent demand, latent need is the most important thing,” Gollagunta said. “So far what we have seen is, it’s a compromise choice they make. Because they don’t have the right product at the right price point. So, they’re making either a compromise on the capability or making a compromise on the budget.”

He added, “We believe that the latent demand for an uncompromised choice means there’s an open space for us to play.”

Veluswamy reinforced the point by recalling the original Scorpio’s arrival. “When we first saw the car, we all were blown away, but no customer had expressed that they wanted such a car. So, to say that the pickup segment is not exist may be a statement that’s not representative of the customer. They may not know how to express it. The latent desires are always understood.”

He continued: “We have seen customers who want the pickup character and who want the SUV character and who want the 4x4 character at an affordable price point. If you put all of them together, Mahindra has the deep pickup expertise. Mahindra has the deep SUV expertise; we put all of them together, and we think it will click with the customer.”

The forthcoming Scorpio-badged Lifestyler pickup was originally conceived as a global product.

“You have to remember three years ago, this was a global pickup as we call it. This was for the global market. But in three years, we have had enough indications to tell us that there’s some latent demand in this market,” Gollagunta noted.

Responding to a query on the volume expectations, Gollagunta said, “I won’t get into the volumes to be honest. The way we are looking at it is we are the third largest automotive market in the world. We believe the market is evolving and maturing and becoming a lot more sophisticated. The problem we see is there are not enough of these choices in these markets.”

Veluswamy pointed to past surprises as evidence that the right product can rewrite expectations. “How many of us thought the 9E would have such volume? And the 9S when we launched, how many of us thought that would have that volume? It clearly tells if you have the right product for the right customer needs. They don’t look at the price. They look at the value proposition.”

He added of the XUV700: “Who in the earth would have imagined that this car will be selling at 9,000 units per month. Who would have thought?”

The Scorpio brand itself is viewed as elastic enough to support the new model. “Our sense is the Scorpio brand means a lot to different people,” Gollagunta observed.

“There are a lot of customers who have a Scorpio Classic, who tell us that I will not buy a Scorpio N. A lot of Scorpio N customers say that I don’t see myself in a Scorpio Classic. Yet the market has stretched and you have two distinct segments with very loyal customers on both sides. So, it’s hard to predict right now. Our view is there’s enough elasticity in the brand today to take a price that is very distinct in itself,” he said.

Pricing has been carefully signalled rather than fixed. “I’ve given one so that now I can have conversations,” Gollagunta explained. “The starting price is less than this, we said. It’s a conversation starter for me to have conversations with customers.”

Veluswamy clarified, “The starting price is less than that. We haven’t announced the price. We have just put a number.”

When queried about the production capacity for the upcoming Lifestyler, “Every new product comes, it comes with a capacity,” Veluswamy said. “So there is a capacity for the product, and there is an operationalisation based on the demand; you operationalise the capacity.”

The vehicle will benefit from body-on-frame technology, 4x4 expertise and technologies already proven elsewhere in the range. “We are riding on that high price point SUVs, which means high technologies that we already use in our ICE and EVs. That is what we are bringing to pickup,” he noted.

Beyond India, the company is pursuing a measured three-phase global approach.

“There is a three-phase strategy. The core markets where we have a strong legacy will continue to double down. Those markets: South Africa, Australia for sure. The second wave is the other LHD markets where we think there is significant potential for us. And we have talked about UK. If we go there, we want to go there to win. And if you are not convinced we cannot win, we will be careful about doing it. I am not in a hurry because I have a core market which is doing well. But we will go out there; the difference is we now have products which are built for the globe,” Gollagunta averred.

Veluswamy provided market context: “We sold about 235,000 units last year (2025) in Australia. And about 135,000 units in South Africa. But the majority of them are these mid-size pickups. The South African market is looking for versatility. Whereas the Australian market is looking for adventure, freedom, go anywhere, towing 3.5-tonne trailers, premium upmarket. So, it is really two different markets.”

The Indian market in the recent past has seen a slew of automakers in the passenger vehicle space introduce hybrid products. For Mahindra, the message has been clear: electrification was unambiguous.

“Our focus is electric, electric, electric. That’s it,” Veluswamy declared.

Furthermore, the company had no intention to dilute its SUV focus simply to chase EV volume elsewhere. “We play in the SUV market. So wherever there is an SUV market, we bring electric. You have to see multiple parameters. It’s not one-dimensional.”

Gollagunta added that electric powertrains are already on the roadmap for future platforms: “We did have the NU_IQ we launched last year, and we said that there is going to be electric powertrains on NU_IQ. But if we do it, it has to be in a way that we believe taps into a platform architecture.”

Veluswamy highlighted the recently introduced BE6 for its intelligence layer.

“The intelligence of the car is different from intelligent driving. Naturally, it can speak to you. You can ask many questions. It is like a teacher, a tuition teacher. That is phenomenal. It understands the context, the context reasoning. It understands natural language reasoning. You do not have to be as accurate as Alexa. That is why we say it is unmatched.”

He detailed the system’s architecture: “It goes to the cloud, and it has 17 agents, and 17 agents are working in tandem. If they have to get it from the LMM, the Gemini model, then it directly gets it.”

Simple commands remain local and immediate, while contextual or knowledge-based queries draw on the cloud. “Our electric vehicle is one of the best cyber security certified. Without cybersecurity, you cannot even bring this in,” he added.

Going forward, it will be interesting to see whether the Scorpio Lifestyler remains a niche experiment or becomes another volume surprise will depend on the next six months of customer conversations.

What is already clear is that Mahindra intends to treat both the Indian opportunity and its wider global and electric ambitions with the same methodical, brand-first discipline that has underpinned its recent growth.

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