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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The Sri Lanka Automotive Component Manufacturers’ Association (SLACMA) has appointed its latest Executive Committee, bringing together industry representatives from across the country’s component manufacturing sector.

The new leadership team takes office as Sri Lanka seeks to expand local vehicle assembly, increase domestic value addition and integrate local suppliers into regional and international supply chains.

The association represents manufacturers producing rubber products, electrical components, springs, seating systems, metal parts, trailers and other vehicle assemblies.

A core focus for the organisation is expanding industrial links with India to leverage its automotive manufacturing ecosystem and supplier network.

At present, SLACMA maintains a formal partnership with the Automotive Component Manufacturers Association of India (ACMA) via a Memorandum of Understanding, an initiative commemorated during Automechanika New Delhi 2026 to mark 10-years of institutional cooperation.

The implementation of Sri Lanka’s vehicle assembly Standard Operating Procedure (SOP) has created frameworks for local component integration. Local suppliers currently manufacture parts for vehicle assembly programs involving international and Indian brands, including Tata Motors, TVS Motor Co, Bajaj Auto, Mahindra & Mahindra, Ashok Leyland, Hyundai Motor India, BAIC, DFSK, JAC Motors, Proton, Wuling, JMC and Chery.

In global markets, Sri Lankan manufacturers supply components to international original equipment manufacturers. Lanka Harness Company produces safety components, including airbag sensor switches, seatbelt sensor switches and sun visor harnesses for brands such as Toyota Motor Corporation, Aston Martin and BMW. Electronics manufacturing services provider Variosystems manufactures electronic assemblies for international clients, including Bombardier.

The newly appointed Executive Committee is led by President Dimantha Jayawardena, Vice-President Athula Haputantri, Secretary Thisal Jayathilaka, Treasurer Dr Shriyantha Cooray and Deputy Secretary Vidurshan Gopalakrishnan.

The committee members represent brands such as Shamini Rubber Industries, Modicon Group, Bopitiya Auto Springs, Dyno Innovations, OREL Group, M.V. Electronic, Accolade Ventures Group and LPG Rubber Industries.

Dimantha Jayawardena, President, SLACMA, said, “As an Association, our priority will be to work collectively with our members, policymakers and industry stakeholders to address the challenges facing the sector while creating opportunities for greater local value addition, technological advancement and international competitiveness. I am confident that, with the experience and commitment of the new Committee, SLACMA can continue to build a stronger platform for collaboration and contribute meaningfully towards the long-term development of Sri Lanka’s automotive manufacturing industry.”

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Indian automotive retail sales reached nearly 2.5 million units in August 2026, marking its best-ever performance for the month. A total of 2.42 million units were sold last month, which translates to a 17.51 percent YoY growth as per the latest data released by the Federation of Automobile Dealers Associations (FADA).

In terms of segment-wise sales, two-wheelers at 1.71 million units, passenger vehicles at 402,398 units, construction equipment at 5,166 units and commercial vehicles at 90,769 units, clocked strong double-digit YoY growth.

Interestingly, the penetration of alternative energy (CNG, hybrid and electric) in the passenger vehicle segment at 41.95 percent, surpassed petrol vehicle demand at 40.85 percent for the first time in the country.

The industry body attributed the shift to running-cost economics and continuing consumer hesitation around the E20 transition, which pushed petrol buyers towards CNG, hybrids and EVs.

Sai Giridhar, President, FADA, said, “Even as retails eased 6.48 percent over a record July on the seasonal monsoon lull and a festival calendar that shifted Ganesh Chaturthi and the spillover of Onam-led buying into September. Two-wheelers, passenger vehicles, commercial vehicles, tractors and three-wheelers each set fresh August records, and overall registrations were the highest ever for the month.”

“The defining development of the month, however, was a structural one: for the first time in India’s history, alternative fuels – CNG, hybrid and electric combined – overtook petrol in the passenger vehicle market, at 41.95 percent against petrol’s 40.85 percent. A little over a year ago petrol led this contest by nearly 11 percentage points; that lead has now been erased. We would, however, read the headline with discipline: much of the YoY strength rests on a soft August 2025 base, when buyers had deferred purchases awaiting the GST 2.0 rate cut, and dealers report that the festive curtain-raiser came in below their own expectations – the true test of the season lies in showroom conversion through September to November, not in year-on-year optics,” he said.

On the other hand, tractor sales at 87,977 units, witnessed flat growth, due to the widening monsoon deficit of about 13 percent across 14 states.

But rural passenger vehicles at 24.9 percent YoY, as against 10.9 percent YoY growth in the urban segment, pointing to a stronger base demand decoupled from the monsoon.

“Rural demand, in other words, has begun to decouple from the monsoon — the farm-income-linked segment softened, yet the non-farm rural economy of livelihood mobility, goods movement and construction kept accelerating. For an industry long accustomed to reading rural India through the rainfall map, that is the quiet structural marker of FY27, and a measure of how broad-based Bharat’s consumption has become,” pointed out Giridhar.

The two-wheeler segment at 1.71 million units recorded its peak for August since 2018, despite a 5.7 percent decline over July 2026.

FADA attributed sustained GST 2.0 affordability and steady rural demand to the performance. Interestingly, electrification in the segment crossed the 10 percent mark at 10.68 percent, as against 7.6 percent a year ago.

Similarly, electrification in the commercial vehicle segment too reached its highest-ever at 5.18 percent from a 2.06 percent penetration last year.

FADA expressed caution on the passenger vehicle inventory rose to 38-40 days, an additional 5 days over July 2026, as against the recommended 21-day benchmark. “With festive stocking now underway, we urge PV OEMs to bill strictly to retail so that dealer capital is not locked in ageing inventory,” said Giridhar.

Going forward, the industry body expects a positive growth story with the festive season leading to increased demand. But widening monsoon deficit and price hikes by OEMs could affect demand.

Furthermore, FADA has shared its outlook for the three-month period (September to November), which incorporates major festivals including Ganesh Chaturthi, Navratri, Dhanteras, and Diwali (November).

Dealers identified festive demand failing to meet expectations as the primary operational risk, cited by 29.06 percent of respondents. Additional risks include the impact of below-normal rainfall on rural demand, noted by 17.52 percent of dealers, and price increases affecting consumer affordability, identified by 11.11 percent.

FADA stated that retail sales figures for October and November will be compared against the previous year's high base, which was influenced by GST rate adjustments, alongside the calendar shift of Diwali into November. Total retail sales for the 2027 financial year have risen 18.47 percent over the initial five-month period. FADA noted that price increases driven by input costs have reduced the consumer affordability cushion provided by tax revisions across entry-level passenger vehicles, commuter two-wheelers, and commercial vehicles.

The industry body highlighted supporting structural factors, including a stable central bank repo rate, electric vehicle promotion policies and rural economic growth. Non-fossil fuel powertrains have passed petrol options in passenger vehicle retail volumes. Water reservoir levels supporting the upcoming Rabi crop cycle and non-agricultural rural activity were cited as additional factors supporting demand across rural regions.

“Two-wheelers should draw support from festive demand and the alternative-fuel shift, though rural cashflows remain hostage to late-season rainfall; Passenger vehicles enter September with fresh launches and healthy pipelines but must convert them against elevated inventory and a demanding base; and Commercial Vehicles should firm up as post-monsoon freight, infrastructure and harvest movement resume. Overall, the outlook for September’26 appears Cautiously Optimistic – with festive conversion and the monsoon’s closing behaviour the key swing factors,” concluded Giridhar.

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The Executive Committee of the Society of Indian Automobile Manufacturers (SIAM) has elected Shenu Agarwal, Managing Director and Chief Executive Officer of Ashok Leyland, as its President for the 2026–27 term.

The election took place during the organisation's Executive Committee meeting in New Delhi.

Agarwal, who previously served as Vice-President of the SIAM, succeeds Shailesh Chandra, Managing Director and Chief Executive Officer of Tata Motors Passenger Vehicles.

The Executive Committee also elected K N Radhakrishnan, Director and Chief Executive Officer of TVS Motor Company, as Vice-President for the 2026–27 term. Santosh Iyer, Managing Director and Chief Executive Officer of Mercedes-Benz India, was elected as Treasurer.

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Federation of Automobile Dealers Associations (FADA), the apex national body for automobile retail in India, has unveiled the findings of its sixth annual Dealer Satisfaction Study (DSS) 2026. The results were announced during a prestigious awards ceremony at the 8th Auto Retail Conclave on 1 September. This comprehensive industry barometer is conducted in collaboration with PremonAsia, a Singapore-based consumer-insight and advisory firm.

The 2026 study broadened its analytical framework to include the Tractor and Wheeled Construction Equipment sectors for the first time. The Tractor segment recorded a satisfaction index of 784, while the 4-Wheeler Luxury category posted an index of 758. JSW MG Motor maintained its dominant position in the 4-Wheeler Mass Market with an industry-leading score of 865 points. Royal Enfield retained its top ranking in the Two-Wheeler category with 878 index points, closely pursued by Hero MotoCorp.

The Commercial Vehicle segment witnessed a shift in leadership, with Tata Motors CV ascending to the top spot with 800 points, narrowly edging out Ashok Leyland. In the Pure Electric category, Ather Energy and VinFast Auto emerged as frontrunners in the 2-Wheeler and 4-Wheeler sub-segments, respectively. BMW in the 4-Wheeler Luxury segment and Mahindra's Swaraj Division in tractors secured pole positions in their respective categories.

The aggregate Industry Average Dealer Satisfaction score rose by 29 points to 810. The Two-Wheeler segment improved by 35 points to 827, while the 4-Wheeler Mass segment saw a 39-point increase to 810. Toyota Kirloskar Motor and Kia Motors recorded the most notable gains among 4W Mass OEMs, while VECV-Eicher demonstrated strong improvement in the CV space.

Product attributes continue to garner the highest scores, reflecting robust dealer confidence in reliability and refresh cycles. After-Sales service holds the highest importance in dealers' minds, and together with Sales & Order Planning and Business Viability & Policy, these account for nearly 68 percent of dealer priorities. Business Viability & Policy remains the lowest-scoring factor, with dealers highlighting challenges such as unsold inventory buyback policies, training cost-sharing and margins on vehicles and spare parts.

Two-Wheeler dealers appreciate product reliability but voice concerns over inventory write-offs and cost-sharing. In the 4-Wheeler Mass segment, operational pressures like stock carrying costs and network expansion policies are paramount. Commercial Vehicle dealers are focused on service economics including labour rates and warranty reimbursement, while Tractor dealers seek improvements in trial-vehicle support and warranty policies.

Profitability and margins are the most frequently cited requests for improvement, followed by concerns regarding the EV transition and OEM relationships. Dealers are increasingly calling for fairer agreement principles, greater predictability in network policies and more robust support systems to navigate the evolving automotive landscape.

FADA President Sai Giridhar said, “The DSS 2026 continues to provide an important reflection of the evolving Dealer–OEM relationship. This year’s record participation reinforces the confidence of dealers in using this platform to voice their expectations and concerns. While product quality, reliability and range continue to be strong areas, the findings clearly underline the need for greater focus on dealer viability, including sustainable margins, inventory and buyback policies, training cost-sharing and greater clarity in OEM policies. Dealers are also seeking more structured involvement in decision-making and regular engagement with OEMs at national, regional and zonal levels. As the automotive retail business evolves, particularly with the transition towards new technologies, strengthening dealer economics and ensuring a fair, collaborative and sustainable OEM–dealer relationship will be critical for the industry’s long-term growth.”

PremonAsia Director and COO Rahul Sharma said, “The Overall Dealer Satisfaction Index has moved up 29 points over 2025. Changing importance of factors influencing dealer satisfaction displays the dynamic nature of Industry. While Product remains the strongest pillar, After-Sales, Sales & Order Planning and Business Viability & Policy together account for nearly two thirds of dealer mind space. The 2026 DSS study is not just about ‘who ranks where’; it is a clear mandate to build a more viable, fair and future-ready dealer ecosystem. The Voice of Dealer reinforces the quantitative findings – profitability, inventory, dealer rights and future readiness are now central to the OEM-dealer partnership.”

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