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 electric vehicle company Raptee.HV has opened an electric mobility Centre of Excellence at Rajalakshmi Engineering College, establishing an industry-academia partnership focused on electric vehicle technology.

The new facility, inaugurated on World EV Day, is spread across 3,000 square feet and will operate under the Raptee.HV Academy initiative will introduce industrial exposure and prototyping tools to academic institutions.

The project represents an INR 5 million investment and accompanies a Memorandum of Understanding signed between Raptee.HV and Rajalakshmi Engineering College. The agreement covers industrial training, site visits, guest lectures, internships, academic courses and research projects.

It is designed for students across electrical, electronics and automotive engineering; the laboratory contains a Raptee.HV T30 motorcycle, core electric vehicle components, a stripped motorcycle fitted with digital twin technology and equipment for testing battery packs, electric motors, power electronics, charging systems, vehicle communications and diagnostics.

Dinesh Arjun, Co-Founder and CEO, Raptee.HV, said, "The next generation of mobility will be built by engineers who understand the machine from the cell to the software. But you cannot build that understanding from a classroom alone. You have to get your hands dirty, take systems apart, question how they work, experiment and build again. The HV Lab is our attempt to bring that experience into engineering education. If even a few students walk out of this lab wanting to build the next great EV technology, we have done our job."

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Zuno General Insurance has launched Fuel Guard, a car insurance add-on offering financial protection against component damage caused by manufacturer-approved blended fuels.

The policy addition targets private motor vehicles in India as alternative and blended fuel adoption expands across the country. The coverage applies to specified engine and fuel-system parts in cases of accidental or unforeseen damage arising directly from approved blended fuel use.

At present, the insurance cover eligibility is restricted to private cars registered on or after 1 April 2023, provided the vehicle manufacturer has endorsed the specific fuel blend used. Vehicle owners must adhere to the manufacturer's prescribed maintenance schedule without making unauthorised modifications to the engine or fuel system. Fuel Guard can be added to private car package policies, standalone own-damage coverage, bundled options and three-year long-term policies.

Shanai Ghosh, Managing Director and CEO, Zuno General Insurance, said, "At its core, Fuel Guard is built around a simple idea: as the mobility ecosystem evolves, insurance protection needs to evolve with it. At Zuno, we continuously look at how changes in mobility are shaping customer expectations and ownership experiences. Fuel Guard reflects our effort to translate those insights into simple, practical solutions that make protection more relevant in everyday life."

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JSW Group and Volkswagen Group have signed a non-binding memorandum of understanding (MoU) for a proposed 51:49 alliance involving JSW Green Mobility Limited and Skoda Auto Volkswagen India Pvt Ltd. No official statement or press release has been issued by either the JSW Group, Skoda/Volkswagen yet regarding the development. 
“The signing of the non-binding MoU has actually taken place,” claimed an industry source. Pointing at the news in Economic Times, he said, “The non-binding MoU paves way for further negotiations between the two organisations in terms of valuation and other factors.” 
“The non-binding MoU would explore setting up of a strategic joint venture in India that would develop, manufacture and sell passenger vehicles for the domestic as well as international markets,” he added. 
Stating that the nature of vehicles would include ICE, electric and hybrid powertrain ones, the source averred, “The non-binding MoU would pave the way for internal approvals, regulatory clearances and other nitty-gritties such as sourcing, manufacturing, technology, localisation, management etc. before a concrete structure is engineered by both the companies and the groups that control them by the end of this year or early next year. 
Entering India is 2000, Skoda, the Czech passenger vehicle arm of the Volkswagen Group has been driving activities for Volkswagen and Skoda brand of vehicles in India. While the Chakan (Pune) plant has been under Volkswagen, the Shendre MIDC (Chhatrapati Sambhaji Nagar) plant has been under Skoda. The Volkswagen Group premium luxury vehicles of the Volkswagen, Skoda and Audi brand are assembled at the Shendre MIDC facility. It has been some time that the Volkswagen Group is looking to turn the Indian operations into a regional hub catering to the immediate neighbouring markets among others. 
Holding a 35 percent stake in JSW MG Motor India, which involves SAIC Motors and is separate from JSW Green Mobility, the JSW Group has presence across steel, infrastructure, energy, cement, paints and automobiles. While there have been reports indicating plans to increase its holding to 45 percent in JSW MG Motor India, the Group has committed up to USD 3 billion over five years in investment in its automotive arm, which includes the building of a greenfield manufacturing footprint at Chhatrapati Sambhaji Nagar. 
The development about the non-binding MoU between JSW Group and Volkswagen Group, the source claimed, has taken place at around the same time the CEO of Skoda Auto, Klaus Zellmer, and the CEO of Volkswagen, Thomas Schäfer, were visiting India. 
 

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Japanese automotive major Honda has become the first company globally to earn a five-star rating in the products and services category of the FIA Road Safety Index. The award was presented at the Autodromo Nazionale Monza during the FIA Formula One Italian Grand Prix.

The FIA Road Safety Index measures organisational impacts on road safety across operations, supply chains, products and services. The FIA expanded the index from a 3-star to a 5-star framework, introducing modules for planning, performance monitoring, safety culture management and supply chain or product coverage.

To qualify for the updated framework, Honda expanded its assessment scope to cover 17 countries, representing over 90 percent of its global motorcycle and automobile sales volume. The evaluation reviewed Honda's safety governance, global fatality tracking, safety technology deployment and traffic safety data disclosures. The company maintains targets to halve traffic collision fatalities involving its vehicles per 10,000 units sold by 2030 compared to 2020 levels, with a long-term goal to eliminate traffic collision fatalities by 2050.

Mohammed Ben Sulayem, President, FIA, said, “Road safety remains one of the world’s most urgent challenges, and no single organisation or sector can address it alone. Progress depends on action at scale across the public and private sectors, uniting all stakeholders around our shared goal of saving lives on the road. The FIA has an important role to play in accelerating that change for road users worldwide. Alongside our work with companies, we encourage governments to consider how the FIA Road Safety Index methodology can support regulatory compliance frameworks and strengthen road safety standards globally. We aim to build a shared culture in which road safety is recognised as a fundamental responsibility. I congratulate Honda on leading the way and becoming the first organisation to receive five stars.”

Willem Groenewald, FIA Secretary General for Automobile Mobility, Sustainability and Tourism, said, “The expansion of the FIA Road Safety Index to five stars marks an important step in our ambition to make road safety a measurable and accountable part of corporate decision-making. Organisations worldwide have a significant influence on road safety through their operations, employees, products, services and supply chains. With this expanded methodology, they can not only understand that impact more broadly, but set targets, measure progress, showcase in-depth commitment and continuously improve their performance. Honda becoming the first organisation to achieve the new five-star rating demonstrates the level of ambition we want the Index to inspire. We hope this milestone will encourage many more organisations across the public and private sectors to measure their road safety footprint and take concrete action to save lives.”

Mikihito Kojima, Assistant Vice-President and General Manager of Traffic Safety Promotion Operations, Honda Motor Co, said, “We are deeply honoured that Honda safety initiatives have received the 5-Star rating, the highest recognition in the FIA Road Safety Index. At Honda, our goal goes beyond delivering safer products. We look to the safety of each and every customer who uses our products, and everyone sharing the road around them. Through the advancement of our safety technologies, activities to promote safe driving and riding practices, and a clearer understanding of how traffic collisions occur so that we can keep improving, we work to reduce the number of traffic collisions themselves. The FIA Road Safety Index brings visibility to corporate road safety efforts, and has given us a clearer view of where we stand today and of what we need to address next. We see this recognition as an important milestone on the way to our challenging goal of achieving zero traffic collision fatalities involving Honda motorcycles and automobiles globally by 2050, and we will continue to take on that challenge. We also hope that the FIA Road Safety Index will encourage broader commitment to road safety among companies and organisations worldwide beyond individual companies and industries, helping to drive road safety forward across society.”

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