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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Switch Mobility, the electric bus and light commercial vehicle brand of the Hinduja Group, has signed a Memorandum of Understanding with Adhiyamaan College of Engineering to establish a Skill Development Centre for Electric Vehicle Technology in Hosur, Tamil Nadu.

The facility will function as a dedicated training site to upskill students and industry personnel in electric commercial vehicle technology. The curriculum will focus on practical applications, including battery technology, power electronics, charging infrastructure, real-world vehicle systems and electric mobility operations.

The initiative marks the establishment of a specialised electric vehicle skilling hub in the Hosur industrial belt, aiming to supply trained technical workforce to the region's expanding commercial electric vehicle manufacturing sector.

R G Venkataraman, Chief Commercial Officer, Switch Mobility, said, "As part of the MoU, Switch Mobility will extend its technical expertise and support towards this initiative. This program will entail practical industrial exposure, learning and skill development."

Radhakrishnan, Principal of Adhiyamaan College of Engineering, said, "We are proud to be associated with an industry leader like Switch Mobility. We believe that this collaboration will provide our students with valuable hands-on exposure to EV technologies and strengthen the industry–academia partnership in the field of electric mobility. With this Centre, our vision is to offer a practical learning environment to enhance their employability and prepare them to meet the evolving demands of the electric mobility industry."

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Toyota Kirloskar Motor, one of the leading passenger vehicle manufacturers in the country, has announced five of its employees were awarded the Medallion for Excellence at the 48th WorldSkills Competition 2026, held in Shanghai, China, from 22 to 27 September 2026.

Competing across three skill categories – mechatronics, additive manufacturing and robot systems integration – the company's employees secured five of the total 20 Medallions for Excellence won by the Indian contingent.

The WorldSkills Competition featured over 1,400 participants from 68 countries competing across 64 technical trade categories. The Medallion for Excellence is awarded to competitors who meet international standards by achieving performance benchmark scores below the gold, silver and bronze medal positions.

In the Mechatronics category, Deepu Mudigerepalya Srinivasa and Jayanth Kariyappa received the recognition. Pavan Bhadravati Suresha was awarded in Additive Manufacturing, while Abhishek Somanna Shignalli and Vinay Muttayya Hiremath received medallions in Robot Systems Integration. Additionally, TKM employees Tejas B.S. and Praveen Yankappa Hunakunti represented India in the Auto Body Repair and Welding categories respectively.

G Shankara, Chief Strategy Officer, Toyota Kirloskar Motor, said, "The achievements of our employees at the WorldSkills Competition 2026 exemplify the spirit of excellence, innovation and continuous learning. Five of our employees winning Medallions for Excellence in 3 categories on a global stage is a proud moment for Toyota Kirloskar Motor and for the nation. Their success reinforces our commitment to nurturing world-class talent and supporting India's journey towards becoming the global skill capital. We hope their journey inspires the next generation of young professionals to pursue excellence in technical and vocational careers."

Toyota Kirloskar Motor conducts technical training through the Toyota Technical Training Institute (TTTI), established in 2007 to provide a three-year residential programme for students from rural Karnataka. The automaker has trained over 140,000 individuals through vocational initiatives, including partnerships with over 120 Industrial Training Institutes (ITIs), 30 Government Tool Room & Training Centres (GTTCs), the Toyota Technical Education Program and Toyota Kaushalya.

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Japanese tier 1 supplier Denso Corporation and Niterra Co., have agreed to terminate their business transfer agreement concerning Denso's Spark Plug and Exhaust Gas Sensor business, which was originally executed on 1 September 2025.

The initial agreement followed a memorandum of understanding signed in July 2023, under which both companies explored transferring Denso's spark plug and exhaust gas sensor operations – including oxygen sensors and air-fuel ratio sensors – to Niterra to streamline internal combustion engine (ICE) component manufacturing amidst global vehicle electrification.

The revision in the original plan is said to be due to changes in the market environment, which led Denso to reassess its strategy under its ‘CORE 2030’ Mid-Term Management Plan.

While vehicle electrification has progressed, global market conditions, regional energy supplies and regulatory environments have sustained demand for internal combustion and hybrid powertrains longer than projected. Following strategic reviews, Denso concluded that maintaining its spark plug and sensor business in-house remains optimal for supporting multi-powertrain vehicle systems, prompting the mutual agreement with Niterra to dissolve the transfer deal.

Denso stated that it will continue operating the business independently to meet powertrain requirements and supply chain demands across global markets.

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In what comes as good news for the Indian automotive industry, competitors trained by the Automotive Skills Development Council (ASDC) secured five Medals for Excellence at the 48th WorldSkills Competition held in Shanghai, China, from 22 to 27 September 2026.

The event featured more than 1,400 participants from 70 countries, with India fielding a contingent of 70 competitors across 63 skill categories. Team India recorded a Top 10 global finish with six Silver Medals and 20 Medals for Excellence overall. The ASDC prepared candidates through training programmes, hands-on practice, exposure visits and competitions organised in collaboration with industry and academic partners.

The ASDC-supported participants awarded Medals for Excellence were Pavan Bhadravati Suresha in Additive Manufacturing, Kaif Khan in Car Painting, Md Seraj in Automobile Technology, Mallinath and Suhan Mascarenhas in Industry 4.0 and Abhishek Somanna Shignalli alongside Vinay Muttayya Hiremath in Robot Systems Integration.

Vinkesh Gulati, Chairperson, ASDC, said, "This stellar performance at WorldSkills Shanghai 2026 is a proud moment for ASDC and a testament to the immense talent of India’s youth. Winning Medals for Excellence across advanced automotive domains reflects our relentless commitment to aligning skill training with global standards. Our young champions have proved that Indian automotive talent is second to none."

Prasanna Pahade, CEO, ASDC, said, "Securing five Medallions across critical futuristic skills like Industry 4.0, Robotics, and Additive Manufacturing reaffirms the impact of ASDC's industry-aligned curriculum and intensive mentorship. The benchmark perfection demanded at WorldSkills validates our mission to build a future-ready workforce for the global mobility sector."

Training support for the participants was provided by industry organisations and institutes including Maruti Suzuki India, Toyota Kirloskar Motor, Mahindra & Mahindra, FANUC India, Axalta Coating Systems India, Festo India, SHINING 3D, Autodesk, NAMTECH, International Automobile Centre of Excellence, NTTF and Synoptic Skills Studio.

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