- Society of Indian Automobile Manufacturers
- SIAM
- Rajesh Menon
- Shailesh Chandra
- auto sales
- car sales
- two-wheelers
- three-wheelers
- commercial vehicles
India’s Auto Industry Rides the Momentum: Record Highs & Renewed Optimism Mark FY 2024-25
- By Nilesh Wadhwa
- April 15, 2025
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.
Bajaj Auto Appoints Rakesh Sharma As Joint Managing Director
- By MT Bureau
- May 07, 2026
Pune-headquartered two-wheeler and three-wheeler major Bajaj Auto has appointed Rakesh Sharma as Joint Managing Director, effective from 1 June 2026 until 31 March 2029.
Sharma has over four decades of experience and is a graduate from the Indian Institute of Management, Ahmedabad. He joined Bajaj Auto in 2007 as President of International Business and became an Executive Director in 2019.
In his role as Joint Managing Director, Sharma will oversee business responsibilities, the Digital & IT function and the Legal function. He will continue to report to Rajiv Bajaj, Managing Director, Bajaj Auto.
Sharma previously served as Chief Commercial Officer and managed international operations for 10 years.
Furthermore, the company has also announced that it will buy back shares at an estimated INR 56.32 billion, representing 16.93 percent of the equity share capital and reserves on a standalone basis and 15.59 percent on a consolidated basis as of 31 March 2026.
PeakAmp Becomes Exclusive Recycling Partner For Stefen Electric’s EV Battery Waste
- By MT Bureau
- May 05, 2026
PeakAmp, a company specialising in battery circularity and lifecycle management, has entered into a partnership with Stefen Electric to handle end-of-life lithium-ion batteries from the latter’s electric mobility operations. Under the agreement, PeakAmp becomes the exclusive recycling and environmental compliance partner for Stefen Electric.
The collaboration places PeakAmp in charge of collection, reverse logistics, recycling and Extended Producer Responsibility compliance for battery waste generated by Stefen Electric. All processed batteries adhere to Central Pollution Control Board guidelines and the Battery Waste Management Rules of 2022, ensuring alignment with India’s regulatory framework for safe disposal.
This arrangement allows Stefen Electric to meet compliance standards while securing safe disposal and material recovery. It also improves traceability across the battery lifecycle. As India’s electric mobility sector expands, rising volumes of retired EV batteries are expected. Through this partnership, both companies aim to build scalable, compliant and environmentally responsible battery waste management solutions.
Aditya Sudhanshu, Co-Founder & COO, PeakAmp, said, “As EV adoption accelerates, establishing reliable systems for managing battery waste becomes increasingly critical. Our partnership with Stefen Electric enables a structured approach to collection, recycling and compliance, ensuring that end-of-life batteries are handled in a responsible and traceable manner. We look forward to contributing to a more transparent and efficient battery waste ecosystem.”
Vipin Nagar, Head – Commercials, Stefen Electric, said, “At Stefen Electric, we recognise that sustainable battery management is critical to the long-term growth of the EV ecosystem. Our partnership with PeakAmp allows us to build a robust and compliant framework for managing battery waste, ensuring responsible disposal and recycling while maintaining full traceability.”
Mahindra Outlines Ambitious EV Strategy, Capacity Expansion Following Robust FY2026 Results
- By Nilesh Wadhwa
- May 05, 2026
Mumbai-headquartered automotive major Mahindra & Mahindra (M&M) has signalled a bold new chapter in its global expansion, detailing plans for electric vehicle (EV) exports and significant production scaling following a ‘defining year’ of financial growth.
The Mumbai-based conglomerate reported a stellar performance for FY2026, with consolidated Profit After Tax (PAT) reaching INR 170.99 billion, a 35 percent increase over the previous year. Consolidated revenue for the year surged 25 percent to reach INR 1,986 billion, 25 percent YoY.
During the year, the company reported sales of 1.11 million units, up 19 percent, while tractor sales grew by 24 percent at 526,403 units.
Central to the company’s future is a phased entry into international EV markets. Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), told Motoring Trends, that Mahindra has planned a disciplined roadmap for global expansion.
"For exports, we would look at right-hand-drive markets in the world first. If we succeed there, then we will look at left-hand-drive markets". The company expects to begin seeing Mahindra EVs in a couple of new countries within the next 18 months.
Addressing potential competition from new Free Trade Agreements (FTAs), Dr Anish Shah, Group CEO & MD, Mahindra & Mahindra remains confident. He acknowledged that the government has structured FTAs to encourage local manufacturing. "We have already seen a lot of competition in the auto industry already and all the top players are here as well. FTA doesn’t change anything from that standpoint. It is important to emphasise that the government has done it (FTAs) very well to make sure that other players continue to make in India as well for the Indian market and to be able to export from around India. In that sense, they (automakers) have it set up well, and that should benefit the Indian government," Shah remarked.
New product launches & Capacity enhancement
Furthermore, the Mahindra management acknowledges that there has been a gap between demand and supply, especially for its new range of electric vehicles, which is why it is ramping up and unlocking capacities to meet the consumer demand.
It has already enhanced its SUV ICE capacity from 54,000 units per month to 56,500 units per month at the end of FY2026, with plans to scale it up to 60,000 units.
Similarly, for battery electric vehicles, it has enhanced the capacity from 5,000 units a month at the end of FY2025, to 8,000 units per month by 31, March 2026.
Furthermore, to support the potential EV uptick growth, Mahindra is aggressively expanding its manufacturing footprint. The company is in the process of land acquisition for its Nagpur facility, which is intended to eventually take capacity up to 500,000 units per annum.
Going forward, it has revised its earlier plans to launch 4 new ICE SUVs and 3 new electric vehicles by 2031, to 10 new ICE SUVs and 6 new BEVs by 2031. This includes 1 new mid-cycle enhancement and 9 new SUV nameplates in the ICE category.
In the EV segment, Mahindra is targeting an 18-20 percent penetration rate over a five-year period. Monthly production for the popular XEV 9S model is slated to rise from 6,000 to 8,000 units this year, with plans to reach a total EV capacity of 12,000 to 14,000 units per month as they enter FY2028.
When questioned on how Mahindra will compete with new entrants, Jejurikar pointed to ‘design and the tech’ as primary differentiators. He highlighted their unique seven-seater EV offerings and long-range capabilities (450-500+ km) as key advantages that ‘reduce charging rate’ anxiety for customers.
Market Leadership and Financial Resilience
The company’s traditional strongholds continue to dominate the Indian market. Mahindra remains No. 1 in SUVs with a revenue market share of 25.3 percent, No. 1 in Light Commercial Vehicles (LCVs) and No. 1 in Tractors with a 43.6 percent market share.
"FY26 has been a defining year marked by strong execution and breakthrough performance," said Dr Anish Shah. He emphasised that the Group is ‘well poised to accelerate in these uncertain times,’ supported by a strong balance sheet and a net cash generation exceeding INR 1,600 billion.
FY2027 outlook
Despite global ‘geopolitical headwinds,’ the company maintains a disciplined approach to capital allocation, focusing on high-growth ‘Growth Gems’ and exiting non-performing international farm businesses to ensure a 20.1 percent Return on Equity (RoE).
It expects FY2027 to see the tractor sales to grow in mid-single digits, while SUVs will see mid to high teen growth. Mahindra's aim is to focus on ramping up manufacturing capacity to meet volume growth aspirations.
On the LCV (upto 3.5-tonne segment), where Mahindra holds the lion’s or 52 percent market share, it expects the industry growth volumes to come in high single digits.
April Sees Robust Record Automotive Retail Sales In India
- By MT Bureau
- May 05, 2026
The positive momentum for the Indian automotive industry continues to accelerate in the new fiscal year. In what comes as a record retail sales registration across categories, the total automotive sales in April 2026 reached a whopping 2.61 million units, up 12.94 percent, as compared to 2.31 million units last year.
The record retail sales were witnessed across two-wheelers, which saw retail registrations at 1.91 million units, up 13 percent YoY, three-wheelers at 106,908 units, up 7.19 percent YoY, passenger vehicles at 407,355 units, up 12.21 percent YoY, tractors at 75,109 units, up 23.22 percent YoY and commercial vehicles at 99,339 unit, up 15.02 percent YoY.
Barring construction equipment at 6,348 units, down 2.25 percent YoY, all categories were in the green.
Sai Giridhar, President, FADA, said: “This clearly underlines that the structural demand momentum which defined the second half of FY2026 has carried into the new financial year. The sequential MoM softness of -3.01 percent reflects the customary post-March seasonal reset rather than any erosion in underlying demand.”
He stated that the demand engine remained broad-based with Urban markets growing 14.07 percent YoY and Rural markets growing 12.30 percent YoY.
The industry body attributed this performance to improved rural liquidity following a healthy rabi season, the extended marriage-season tailwind that runs through May and June, and continued affordability gains carried over from the GST 2.0 framework. Furthermore, the performance could have further grown, if the industry did not witness supply constraints for selective models in certain commuter and premium variants.
In terms of electrification in the two-wheeler segment, it saw moderation at 7.76 percent, as compared to 9.79 percent last month.
Commenting on the commercial vehicle performance, Giridhar said, “From a market mix standpoint, Rural markets grew a striking 20.25 percent YoY versus Urban at 10.22 percent YoY, highlighting that logistics-led demand is no longer concentrated in metros. Dealers across regions reported sustained freight movement, infrastructure-linked goods activity, school-bus replacement demand, and steady single-owner operator confidence as the principal drivers. The MCV sub-segment continued its standout run at 27.07 percent YoY, while LCVs grew 17.76 percent and HCVs 8.25 percent — reflecting participatory growth across sub-segments. Some dealers, however, flagged elongated financing turnaround time, sporadic variant-level supply gaps and a degree of caution induced by external geopolitical developments as monitorables.”
Coming to the passenger vehicle segment, the segment has seen demand firing on all cylinders. Interestingly, Rural PV growth at 20.40 percent YoY, was nearly three times the Urban pace of 7.11 percent YoY.
“This confirms the structural broadening of personal mobility into Tier-3 and rural India, supported by a small-car revival, sustained SUV demand and a richer alternative-powertrain product mix where CNG share held firm at 22.62 percent and EV share improved further to 5.77 percent. Dealers cited improved affordability post-GST 2.0, the Reserve Bank of India's supportive rate stance, which has translated into stronger EMI comfort, and a healthy marriage-season pipeline as the principal demand drivers. PV inventory levels have moved up modestly to a range of 28–30 days, marginally above March'26's around 28 days but well within the healthy band that we view as constructive. We continue to encourage PV OEMs to maintain disciplined dispatches in the coming weeks so that channel inventory stays anchored close to FADA's recommended 21-day benchmark, particularly as we move into the seasonally softer May-June window,” added Giridhar.
The near-term outlook for May 2026 is cautiously optimistic, with over 55 percent of dealers expecting continued growth. Momentum is expected to be maintained by the peak of the marriage season and residual buying from festivals like Akshaya Tritiya. However, monitorable factors include potential heatwaves, geopolitical tensions in West Asia that could impact fuel prices, and selective supply constraints. Over the next three months, dealer confidence remains steady as the industry transitions toward its mid-year phase.
Going forward, the industry body expects that demand for CVs, two-wheelers and passenger vehicles will continue to be positive. For CVs, he attributes the same to residual buying triggered by Akshaya Tritiya in select northern and western markets, the new financial-year OEM scheme cycle and sustained replacement demand in the CV segment.
The two-wheeler segment will continue to reap the benefits of improving rural cashflows, agri-cycle preparation purchases and continued post-GST 2.0 affordability in the rural market, while passenger vehicles are likely to benefit from healthy booking pipelines, refreshed product launches and improving small-car traction.
“That said, the India Meteorological Department's forecast of an above-normal heatwave across several states, the geopolitical situation in West Asia and its potential pass-through to fuel prices, selective supply constraints on running models remain factors to watch,” he concluded.
| AUTO RETAIL SALES IN INDIA | ||||||
| Category | Apr '26 | Apr '25 | Change (in units) | Change (in %) | Mar '26 | Change (in %) |
| YoY | YoY | MoM | ||||
| Two-wheeler | 1,916,258 | 1,695,638 | 220,620 | 13.01% | 1,951,006 | -1.78% |
| Three-wheeler | 106,908 | 99,741 | 7,167 | 7.19% | 109,777 | -2.61% |
| E-Rickshaw (P) | 28,154 | 39,504 | -11,350 | -28.73% | 28,946 | -2.74% |
| E-Rickshaw with Cart (G) | 7,742 | 7,447 | 295 | 3.96% | 7,425 | 4.27% |
| Three-wheeler (Goods) | 13,133 | 10,322 | 2,811 | 27.23% | 14,006 | -6.23% |
| Three-wheeler (Passenger) | 57,767 | 42,326 | 15,441 | 36.48% | 59,283 | -2.56% |
| Three-wheeler (Personal) | 112 | 142 | -30 | -21.13% | 117 | -4.27% |
| Passenger Vehicle | 407,355 | 363,028 | 44,327 | 12.21% | 440,144 | -7.45% |
| Tractor | 75,109 | 60,956 | 14,153 | 23.22% | 82,080 | -8.49% |
| Construction Equipment | 6,348 | 6,494 | -146 | -2.25% | 6,906 | -8.08% |
| Commercial Vehicle | 99,339 | 86,364 | 12,975 | 15.02% | 102,536 | -3.12% |
| LCV | 55,949 | 475,120 | ###### | -88.22% | 59,379 | -5.78% |
| MCV | 9,177 | 7,222 |
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