The Federation of Automobile Dealers Associations (FADA) today released its April 2025 vehicle retail data, revealing a moderate overall growth of 3 percent YoY.

The two-wheeler segment emerged as the primary growth driver, registering a 2.25 percent increase in retail sales compared to April 2024 and a significant 11.84 percent MoM growth. FADA attributes this positive momentum to strong rural demand. However, the sector continues to face headwinds in the form of high financing costs and the pricing impact of OBD-2B emission norms.

The tractor segment demonstrated robust growth, with a 7.5 percent increase in retail sales year-on-year. This strong performance likely reflects the positive sentiment stemming from a strong Rabi harvest, which typically boosts agricultural activity and consequently, tractor demand.

In contrast to the strong performance of two-wheelers and tractors, the passenger vehicle segment experienced a modest 1.55 percent YoY growth, while witnessing a slight dip of 0.19 percent on MoM basis. The auto retail body attributes that deep discounts are prevalent in the market and while the demand for SUVs remains strong, the entry-level segment continues to exhibit sluggishness. FADA also noted that the PV inventory levels are currently around 50 days, significantly higher than their advocated norm of 21 days.

The commercial vehicle segment faced a contraction, with retail sales declining by 1.05 percent YoY and 4.44 percent on MoM basis. FADA suggests that recent price hikes by OEMs and flat freight rates are negatively impacting sales. Within the CV segment, the Small Commercial Vehicle category saw weak demand, while the bus segment remains steady.

Looking ahead to May 2025, FADA anticipates a positive outlook, primarily driven by the strong conclusion of the Rabi harvest. The expectation of a normal monsoon further strengthens this positive sentiment, suggesting continued momentum in rural demand which could positively influence vehicle sales across various segments.

In a significant development, FADA has begun releasing fuel-wise vehicle retail market share data across all key categories. This new initiative aims to provide stakeholders with a granular understanding of evolving energy preferences and the impact of regulatory influences on India's automotive ecosystem.

C S Vigneshwar, President, FADA, said, “The new financial year began on a measured note as overall retails in April managed to grow by 3 percent YoY. All categories except CV closed in the green, with 2W, 3W, PV and Trac up 2.25 percent, 24.5 percent, 1.5 percent and 7.5 percent respectively, while CVs declined by 1 percent. With the tariff war paused, stock markets staged a sharp pullback – alleviating investor concerns – and customers thus leveraged Chaitra Navratri, Akshay Tritiya, Bengali New Year, Baisakhi and Vishu to complete purchases, helping April end on a positive note.”

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Tata Motors, one of the country’s largest automakers, has announced a landmark financial performance for FY2025, achieving record revenues and profitability, becoming debt-free, and confirming the ongoing process to demerge into two independent listed entities. The announcement was made by N Chandrasekaran at the 80th AGM of Tata Motors, on 20 June 2025.

In his address, he mentioned that on a consolidated basis, the Tata Motors Group delivered record high revenue of INR 4,396 billion, a record EBITDA of INR 576 billion, and a record Profit Before Tax (PBT) of INR 343 billion (before exceptional items). This robust performance has enabled the Tata Motors Group to achieve a debt-free status this year.

The company highlighted strong individual performances across its business segments:

• Commercial Vehicles (CV): Achieved INR 751 billion in revenue, a record EBITDA of INR 88 billion, and INR 75 billion in Free Cash Flows, with a strong ROCE of 37.7 percent.
• Passenger Vehicles (PV): Generated revenues of INR 484 billion with a 0.9 percent EBIT. The Tata Punch emerged as India’s top SUV, with CNG and EVs comprising 36 percent of its multi-powertrain portfolio.
• Jaguar Land Rover (JLR): Delivered solid results with revenues of GBP 28.9 billion and an 8.5 percent EBIT, resulting in a PBT of GBP 2.5 billion, turning net cash this year. The Range Rover and Defender franchises continued their strong performance, complemented by localized CKD manufacturing of Range Rover and Range Rover Sport in India.

The strategic demerger process, which will see the company operate as two independent listed entities – one for Commercial Vehicles and one for Passenger Vehicles and JLR – is well underway and expected to be completed by the end of the calendar year.

Chandrasekaran mentioned that each business is positioned for independent growth, supported by strengthened financials and dedicated management teams.

Despite anticipated future volatility from geopolitical conflicts, supply chain shifts, AI, and energy transition, he stated its businesses are structured to thrive, building on years of simplification and strategic investments.

The company also acknowledged the recent passing of Mr. Ratan Tata, noting his profound impact and enduring legacy on the Group.

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India's automotive sector is poised for a significant transformation with the establishment of the Indian School for Design of Automobiles (INDEA), the nation's first dedicated institution for automobile design and management. A groundbreaking and foundation stone ceremony was held today at the XLRI Delhi-NCR campus, marking a historic milestone for the nascent institute.

The Union Minister of Road Transport and Highways, Nitin Gadkari, served as the Chief Guest, virtually unveiling the foundation stone and offering his full support for the forward-thinking initiative. His virtual presence underscored the government's recognition of design's crucial role in India's evolving mobility landscape.

The ceremony brought together a distinguished gathering, including industry titans, senior government officials, design and automotive professionals and academic luminaries. The consensus among attendees was clear: design is rapidly gaining importance within India's mobility ecosystem, and INDEA is positioned to be a cornerstone of this shift.

Developed under the umbrella of XLRI’s Centre for Automobile Design & Management (XADM), INDEA aims to revolutionise design education in India. Avik Chattopadhyay, Founder of INDEA and Chairperson of XADM, is leading the charge to cultivate a new generation of automotive designers and visionaries. The institute's mission is to equip these future professionals with the skills needed to meet both global standards and unique local requirements.

A striking steel structure, named Param – a Sanskrit word signifying supreme, highest, or ultimate – was unveiled as the foundation pillar. Designed by renowned Indian installation artist and designer Vibhor Sogani, the skyward-reaching sculpture symbolises INDEA's aspirations for boundless growth and transformative knowledge. Param is envisioned as the symbolic heart of the institute, representing not just a foundation but a future hub for innovation and excellence with state-of-the-art facilities fostering a community of innovators, thinkers and leaders in automotive design.

In his virtual address, Nitin Gadkari emphasised the automotive sector's critical role in India's economic growth, employment generation and global competitiveness. "As we strive towards the Prime Minister’s USD 5 trillion economy vision, our industry is evolving from being cost-driven to quality-led, anchored in smart design, robust safety, and sustainable practices. The future will be shaped by strong R&D, innovation, and next-generation testing and certification. I am confident that the young talent trained at INDEA will become catalysts for change, turning knowledge into innovation, and innovation into national strength."

Fr. Dr. K.S. Casimir, Director, XLRI Delhi-NCR, said, "This ceremony marks a major leap in our vision of creating an institute that seamlessly blends design thinking, technical prowess, and industry alignment. Nitin Gadkari’s digital presence as Chief Guest is not only an honour but also a strong endorsement of the vital role that design can play in India’s mobility future."

Avik Chattopadhyay echoed these sentiments, asserting, "INDEA is designed to be more than just an educational institute – it is a movement to elevate India’s design capabilities. With the encouragement of leaders like Nitin Gadkari and guided by the vision of our Prime Minister Narendra Modi, we are confident INDEA will become a key enabler in India’s journey to becoming a global design and innovation hub."

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German technology giant Freudenberg Group has announced the expansion of its Freudenberg Training Centre in Nagapattinam, Tamil Nadu, reinforcing its long-term commitment to community development in India.

Esther Maria Loidl, Chief Human Resources Officer and global board member of Freudenberg & Co., laid the foundation stone for a new extension and auditorium at the training campus. The upgrade will include converting the existing auditorium into a computer lab, with a focus on offering digital and computer-based vocational courses. The new facilities are expected to be completed by mid-2026.

The expansion aims to attract and support more women students, equipping them with skills for financial independence and sustainable employment. The centre, established in 2008 in the aftermath of the 2004 tsunami, offers training in welding, fitting, machining, motor mechanics and electrical work. It has trained over 1,400 students to date, many of whom are now employed at leading firms such as Hyundai Motor India, TVS Motor Co and Simpson Group, while some have launched their own ventures.

Freudenberg has invested over INR 400 million in the region over the past 16 years. The 28-acre training campus is staffed by 18 qualified educators and led by Principal Dr Chitrakala Mohan.

Esther Maria Loidl, said, “It’s a pleasure and privilege to lay the foundation for further expansion of our largest CSR initiative in India - the Freudenberg Training centre in Nagapattinam. The institute’s growth affirms the visionary decision in 2008 to support the region’s rebuilding by empowering its young people with the right vocational skills. We look forward to investing and supporting the institute to grow further in its noble mission to power the aspirations of the needy in this region.”

G Sivasailam, Director & CEO, Freudenberg Regional Corporate Center India & Managing Director, Freudenberg Performance Materials India, said, "I am immensely proud to see the growth of the institute to where it is today. This reaffirms many of the core values of the Freudenberg group – long-term commitment, proactive and responsible action, among others. I would like to credit the Principal and her faculty who have been instrumental in ensuring the delivery of quality education to the local youth. They have been constantly innovating and adding to the courses and teaching pedagogy to what it provides is needed in the industry.”

Dr Chitrakala Mohan, Principal, Freudenberg Training Center, said, “It has been a great journey leading this visionary initiative for 7 years. The whole-hearted and passionate support we receive from the group executives in India and at the global HQ has been pivotal to whatever we’ve been able to accomplish so far. The foundation laying today and the other initiatives in the pipeline will help us expand sustainable community development through world-class vocational education, which sees local youth gainfully employed with leading companies in India.”

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Daimler Truck, Mitsubishi Fuso, Hino and Toyota Motor Corporation have concluded definitive agreements to integrate Mitsubishi Fuso and Hino Motors. The arrangement has Daimler Truck and Toyota Motor Corporation at the top. The motive behind the definitive agreements being to integrate Mitsubishi Fuso and Hino on equal footing, the change is expected to affect over 40,000 people. They will have to learn some as the two automotive giants – Daimler and Toyota – sat through, thought through and came to an agreement, creating yet another value intensive enterprise that will be headed by Karl Anton Deppen as the CEO.   
Bundling forces to establish a new strong Japanese truck powerhouse to the benefit of all stakeholders, the agreement to integrate the two Japanese commercial vehicle manufacturers aims at a new listed holding company that will begin operations in April 2026. It will have the scale, resources and technology leadership to shape the future of the commercial vehicle landscape in the Asia-Pacific region and beyond

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