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-based conglomerate Murugappa Group has announced the passing of Arunachalam Vellayan (1953–2025) following an illness.

Vellayan was the Chairman Emeritus of Coromandel International and the Former Chairman of the Murugappa Group. He is survived by his wife, Lalitha Vellayan, his sons, Arun Vellayan and Narayanan Vellayan, and his grandchildren.

The Former Chairman dedicated several decades to the Group, providing strategic direction across its businesses. His approach to value creation helped strengthen and expand the Group, contributing to its reputation as a respected conglomerate.

He served on the Boards of various Murugappa Group companies, including as Chairman of Coromandel International and EID Parry.

Outside the Group, he served on the Boards of entities such as Kanoria Chemicals & Industries, EXIM Bank and Indian Overseas Bank.

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Tier 1 automotive supplier Tata AutoComp Systems has won the Deming Prize for the third time in two years. The award recognises organisations for excellence in Total Quality Management (TQM) and continuous improvement.

It was on 5th October, Motoring Trends first broke the news that Tata AutoComp Hendrickson Suspensions, a business unit of Tata AutoComp Systems, had become the latest recipient of the prize, becoming the world’s first commercial vehicle suspension system manufacturer to receive the honour. The company's other two business units that won the Deming Prize were the Composites Division and Tata Ficosa, both awarded in 2024.

Arvind Goel, Vice-Chairman – Tata AutoComp Systems, said, “Winning back-to-back Deming Prizes in 2024 and 2025, three prizes in two years, is a proud milestone that emphasises the paramount importance of Total Quality Management in our organisation. As we expand into new segments, geographies and technologies, quality management remains our foremost priority. This achievement is a testament to our collective dedication. TQM is a people’s movement and every employee has played a pivotal role in this journey. Building on this momentum, we have a well-defined and ambitious plan for other BUs to adopt the TQM way and pursue the Deming Prize.”

Manoj Kolhatkar, MD & CEO, Tata AutoComp Systems, added, “Total Quality Management is a people’s movement, and the Deming Prize reflects how we are enabling a quality mindset, driving customer-centric transformation, and promoting sustainable growth through quality leadership.”

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Blue Ocean Corporation, a globally recognised leader in supply chain consulting and training, is strengthening its engagement with India's evolving economic landscape through a significant strategic appointment. The company has welcomed Pushpinder S Puniha, a distinguished figure who chairs the Consultative Group on Tax Policy at NITI Aayog, to its Advisory Board. This move is designed to create a powerful synergy between high-level policy expertise and practical industry application.

Puniha’s arrival coincides with a period of profound structural change within the Indian economy, where modernising supply chains, implementing tax reforms and executing policy-driven initiatives are central to national progress. His deep expertise in fiscal governance and public policy will equip Blue Ocean with critical insights, enabling the firm to precisely align its consulting, training and capacity-building programmes with the country's development goals. This collaboration not only accelerates Blue Ocean’s expansion within India but also solidifies its commitment to cultivating a robust supply chain ecosystem and a highly skilled workforce. The appointment acts as a strategic bridge, connecting the government’s economic vision with global professional standards.

By integrating thought leadership from India's premier policy institution, Blue Ocean ensures its services directly support national campaigns such as Make in India and Skill India while remaining forward-looking and relevant. Puniha’s recent participation at the company's International Procurement and Supply Chain Conference in New Delhi underscores this shared mission to merge international best practices with India's ambitions for sustainable growth. As an Indian-owned multinational, Blue Ocean is actively broadening its domestic footprint with new offices in Tier 1 and 2 cities. Puniha’s advisory role is anticipated to be a catalyst in this expansion, reinforcing the corporation's position as a key partner in India's journey towards becoming a USD 5 trillion economy and a global hub for talent.

Sourav Ganguly, Member of Board at Blue Ocean Corporation, said, "Having worked with Puniha earlier at the BCCI, I know the value he brings through his expertise and professionalism. It is a privilege to work with him again at Blue Ocean, where his presence on the Advisory Board will help us drive our future growth and impact."

Puniha said, "At Blue Ocean, I see a strong commitment to aligning global expertise with India’s economic priorities. Together, we will drive initiatives that build skilled talent and strengthen India’s position as a global supply chain hub."

Dr Sathya Menon, Group CEO of Blue Ocean Corporation, said, "India is positioning itself as the world’s supply chain hub. Puniha’s expertise will strengthen our India strategy and make our initiatives more impactful."

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Shailesh Chandra, the Managing Director of Tata Motors Passenger Vehicles & Tata Passenger Electric Mobility, who is also currently the President of the Society of Indian Automobile Manufacturers (SIAM), has been elected the new President of the Organisation Internationale des Constructeurs d’Automobiles (OICA), effective 1 November 2025.

This makes Chandra the first Indian to lead the global federation, succeeding John Bozzella of the USA.

Founded in 1919, the OICA represents 36 national associations of motor vehicle manufacturers worldwide, focusing on issues of mobility, environment, safety, and economy and promotes harmonised technical regulations through the United Nations.

“It is an honour to become the first OICA President from India, which is highlighting the organisation’s global representation. As the global automotive industry transitions towards sustainable mobility and pursuits ‘Net Zero’, in alignment with the visions of Governments worldwide, the role of OICA becomes increasingly critical – to acknowledge the diversity of every region, as we collectively strive to make our vehicles more aspirational, safer and environmentally friendly,” said Chandra.

Chandra's background includes over two decades of automotive experience with Tata Motors, where he is credited with turning around the passenger vehicle business and spearheading the electric vehicle segment in India. He holds a Mechanical Engineering degree from IIT Varanasi.

On the other hand, Hildegard Muller, President of Germany's Verband der Automobilindustrie (VDA), was elected OICA's Vice President. Her appointment recognises her leadership within Europe's automotive sector and her experience in industry and government, which includes serving as a former Minister of State to the German Chancellor. Muller has led the VDA since 2020, navigating the German automotive industry through challenges related to electrification and global trade.

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