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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Motul India presented a comprehensive vision for the future of automotive fluids at SIAT Expo 2026, centred on innovation, sustainability and supporting the industry’s technological transition. The company’s exhibition was built around the event’s core theme of pioneering safe and sustainable mobility, demonstrating a strategic commitment to evolving alongside new vehicle architectures.

A cornerstone of this vision is the development of fluids for new propulsion systems. A keynote address by Dr Julien Plet, Global Head of R&D, elaborated on the critical role of innovative fluids for next-generation mobility. The company showcased its E-Gen series, engineered for the thermal management of electric vehicle components like motors, batteries and power electronics, positioning it as a critical solution for evolving electrified mobility. Simultaneously, for alternative fuels, Motul presented specialised lubricant formulations for hydrogen internal combustion engines, reflecting early and active research into diverse energy sources. This dual focus underscores a readiness to support the industry’s broad technological transition.

Further solidifying its technical credibility, Motul emphasised its race-to-road development philosophy. The exhibit featured OEM-validated products, including a lubricant with formal Mercedes-Benz approval and another born from collaboration with Toyota Racing Development. These examples illustrate how the company leverages the extreme demands of motorsport as a dynamic proving ground for future commercial technologies, rather than for immediate market launch.

Integral to its presentation was a strong sustainability narrative, exemplified by the NGEN lubricant range. This product line utilises base oils derived from re-refined materials, embodying circular economy principles and a long-term commitment to reducing environmental impact through responsible resource use.

Ultimately, by participating in the expo, Motul India reinforced its role as an innovation-led partner to the automotive ecosystem. With a robust global research backbone and deep industry relationships, the company showcased its structured approach to developing high-performance, sustainable fluids tailored to meet the specific demands of the Indian market as it advances.

Dr Plet said, “Motul’s research and development teams across geographies continue to focus on advancing lubricant performance for existing powertrains while developing technologies aligned with future mobility needs and local market conditions.”

Nagendra Pai, CEO, Motul India & South Asia, said, ‘’SIAT Expo is a key platform for future mobility, and Motul is proud to showcase its global innovation strength in India. By combining advanced technologies with local adaptability, Motul is ready to lead solutions across electrification, sustainability and alternative fuels.”

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In a move that signals a seismic shift in global trade dynamics, the European Union and India today concluded negotiations for a historic and ‘commercially significant’ Free Trade Agreement (FTA). As the largest deal ever brokered by either side, the pact creates a massive free trade zone encompassing 2 billion people and the world's second and fourth largest economies.

While the agreement spans sectors from agriculture to pharmaceuticals, it is the automotive industry that stands as the centrepiece of this industrial realignment.

Cracking the 110% tariff wall

For decades, European automakers have struggled against India’s formidable trade barriers. Under the new agreement, these hurdles are set to crumble. India has committed to a radical reduction in car tariffs, which currently sit at a staggering 110 percent. According to the official release, these duties will be gradually slashed to as low as 10 percent.

Furthermore, the deal provides a massive boost to the automotive supply chain. Tariffs on car parts – a critical sector for European manufacturers – will be fully abolished within a 5-to-10-year window. This move is expected to integrate Indian and European manufacturing hubs more closely than ever before.

European Commission President Ursula von der Leyen hailed the deal as a milestone for rules-based cooperation. "The EU and India make history today. We have sent a signal to the world that rules-based cooperation still delivers great outcomes," she said.

With a population of 1.45 billion and a GDP of EUR 3.4 trillion, India is currently the world’s fastest-growing large economy. This FTA grants European carmakers and industrial firms a ‘privileged access’ that no other Indian trading partner currently enjoys.

Beyond the finished vehicles, the deal addresses the broader industrial ecosystem:

• Machinery & Chemicals: Tariffs of up to 44 percent on machinery and 22 percent on chemicals will be mostly eliminated.
• SME Support: Dedicated contact points will be established to help smaller European component manufacturers navigate the Indian market.
• Intellectual Property: The agreement guarantees high-level protection for designs and trade secrets, providing the legal certainty required for high-tech automotive transfers and R&D investment.

The deal is not merely about volume; it is about the future of mobility. A dedicated chapter on trade and sustainable development focuses on climate change and environmental protection.

To support India’s transition toward sustainable industrialisation – a move critical for the electric vehicle (EV) sector – the EU intends to provide EUR 500 million in support over the next two years. Additionally, a new EU-India platform for climate action cooperation is slated to launch in early 2026, likely serving as a catalyst for joint ventures in green hydrogen and battery technology.

The EU expects the deal to double its goods exports to India by 2032, saving European businesses approximately EUR 4 billion per year in duties.

The path to implementation now moves to the legal and political stage. The negotiated texts will undergo legal revision and translation before being presented to the European Council and the European Parliament for consent. On the Indian side, the agreement will move toward formal ratification.

After nearly two decades of stop-and-start negotiations – beginning in 2007 and relaunching in 2022 – the road is finally clear for a new era of Euro-Indian industrial synergy.

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Birla Carbon is set to showcase its innovative Nanocyl range of multi-walled carbon nanotube solutions at NanoTech 2026 in Tokyo, Japan, held from 28 to 30 January. The company’s presence at Booth 3W-A11 highlights a commitment to providing advanced materials that enhance performance and sustainability for industries including automotive, electronics, energy storage and transportation. Through the Nanocyl brand, a global leader in MWCNTs, Birla Carbon offers formulations that improve material efficiency, enable significant cost optimisation and support energy savings.

A key focus will be the NC7000 MWCNT, recognised for its high electrical conductivity, superior processability and strong mechanical property retention. Its UV resistance and exceptional cleanliness make it suitable for demanding industrial and advanced applications. Beyond the base material, Birla Carbon will showcase specialised engineered formulations that address specific industry challenges. These include thermoplastic concentrates for conductive polymers, elastomer masterbatches for durable static control and epoxy-based systems that improve conductivity with processing flexibility. The portfolio also features eco-friendly aqueous dispersions and specialised solvent dispersions tailored for energy storage applications, responding to the growing demand for sustainable and efficient conductive solutions.

This participation underscores Birla Carbon’s dedication to innovation-led growth and its commitment to developing advanced materials that meet evolving market demands. Visitors are invited to explore how these MWCNT technologies can enable new possibilities and support future growth in their own projects.

Laurent Kosbach, CEO, Nanocyl, said, “Nanotechnology is a powerful enabler of material innovation. Through the Nanocyl range of carbon nanotubes, we are advancing material properties such as electrostatic discharge (ESD), electrical conductivity, mechanical reinforcement and thermal dissipation across a wide range of materials. Nanotech 2026 provides an important platform to engage with global partners and demonstrate how our engineered formulations are already delivering value across demanding industries.”

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Union Minister for Road Transport and Highways Nitin Gadkari has announced the return of the Sadak Suraksha Abhiyan (SSA) 2026. This campaign brings together figures from the film industry to address road safety through a public awareness initiative. The ministry will host a telethon on 25 January in Mumbai to mark the fourth year of the programme.

Notable participants joining the movement include Amitabh Bachchan, Alia Bhatt, Vicky Kaushal, Kay Kay Menon, Shankar Mahadevan and Swanand Kirkire. Data from the ministry shows that India recorded 487,707 road crashes in 2024, leading to 177,175 deaths. Figures indicate that adults between 18 and 45 years old represent over two-thirds of these fatalities.

The theme for SSA 2026 is 'Kartavya' (Duty), which frames road safety as a shared responsibility. The tagline for the initiative is ‘Parvaah Se, Kartavya Tak’. The 2026 edition operates on four pillars: Kartavya (Duty), Kayda (Discipline), Kavach (Shield) and Kranti (Change). These are intended to influence road user behaviour across the country.

Factors contributing to fatalities include overspeeding, rash driving, overtaking, jaywalking and the non-use of helmets and seatbelts. The campaign also highlights the failure to provide assistance during the golden hour. The initiative aims to use conversations and performances to encourage the public to follow road regulations.

The event is designed to move from awareness to action within the road ecosystem. The telethon will be broadcast on CNN-News18 on 25th January from 11:00 am onwards.

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