Over the last three decades, Vector has been supplying tools and services that give engineers the decisive advantage to make challenging and highly complex designs and develop automotive products as simple and manageable as possible. Today, the company is working on various fronts from e-mobility to connectivity, cyber security to ADAS and will continue to work on the new areas which will drive the future of mobility. “Vector is also working on identifying the challenges that a customer could face in the future in the context of these trends and is working as a partner with the customers to overcome these challenges,” said Chandra Nataraja, Managing Director, Vector Informatik India. Nataraja also emphasises the need of ‘real R&D development’ at the local level in India, instead of being followers and adapters.

Q) We are coming across the word “complexity” often in the automotive industry? How does Vector help in simplifying the process in engineering, design, testing, validation and calibration?

Chandra Nataraja: At Vector Informatik, more than 3,000 employees across 31 locations worldwide support manufacturers and suppliers of the automotive industry with a professional platform of tools and software components. Our solutions are used by engineers of automotive OEMs, Tier-1 suppliers and other software organisations undertaking the development of automotive electronics.

There is increased complexity in the automotive space, especially with the software running in cars, for which development teams need to have an overview of their ideas being realised into technologies. There is a lot of toolchain and structure development, not to mention the standards that are being adopted. Vector is a part of several standardisation groups and offers solutions across the complete V cycle of automotive development process, including system engineering, design, testing, validation and calibration, which helps to simplify the processes for the customers.

To elaborate further, the ECU testing tools from Vector support in the implementation of simulation and test environments in an efficient way. Regardless of the task in the development process, the Vector testing tools provide a scalable and re-usable solution from pure SIL simulations to HIL testing with functional acceptance tests – for all types of vehicles including internal combustion engine, a hybrid or a purely electric vehicle. Similarly, for calibration, we provide software and hardware solutions which cover all requirements throughout the entire development process, right from function development through bypassing and rapid prototyping solutions to test bench applications and test drives during trials and in series production.

We also offer solutions to engineers in other application areas such as advanced driver assistance systems (ADAS), autonomous driving, connected vehicles and electric vehicles. The company puts together solutions and provides customers with toolchain to develop, test, calibrate and validate software that is being developed for such applications.

Q) What are the current trends in the automotive industry for which the company is developing solutions?

Chandra Nataraja: Vector follows automotive trends closely, with the principle for the company being that it does not develop solutions in isolation, but rather works with customers as partners.

E-mobility is one of the major trends today and for electric mobility to enter mass market, smart charging is a key solution. The term smart charging is used for charging systems of electric or hybrid vehicles according to various standards like ISO 15118, DIN SPEC 70121 and SAE J2847/2. Vector supports developers of on-board charging ECUs in the vehicle, charging stations and induction charging systems with extensive test systems and bespoke ECU software. Using Vector test solution for smart charging, customers can test on-board charging ECUs without having to operate a real charging spot. Vector also offers solutions for testing of charging stations, E-Mobility Measurement and software stack for rapid development of charging ECUs, which supports all international standards including CCS, GB/T and CHAdeMO. This helps customers develop their software quickly and cost effectively.

Another area of focus is connected vehicles, where Vector is looking at extending the domain beyond the car, at the areas where it can offer standardisation. There is a large amount of data collected from the car when talking about connectivity, and the company is looking at cloud solutions in managing this data.

This also brings us to cyber security, where OEMs and applied partners are analysing if there is enough security of information inside the automobile. Vector has developed solutions related to remote updating of software, for which its understanding of the vehicle network is helping us to see how this can be connected with the IT world.

Autonomous Driving is another trend towards which Vector is carrying out development work, in partnership with BASELABS. BASELABS has algorithms related to ADAS for autonomous driving, and with Vector’s calibration product line aligned to it, we have an entire package which supports both the development and validation of ADAS.

Our tool set for testing and calibration has been developed to accommodate future vehicle technologies, and also extend it to multiple networks in the vehicle. Apart from developing innovations based on market trends, Vector is also working on identifying the challenges that a customer could face in the future in the context of these trends and is working as a partner with the customers to overcome these challenges.

Q) With the growing penetration of electronics in vehicles, how do you see the business opportunities for the company?

Chandra Nataraja: Since last 30 years, Vector has been a capable partner in the development of automotive electronics. Satisfied and successful customers are our motivation, and we work to ensure that our customers achieve an increase in value in their work that we can also be proud of. Driven by our passion for technology, we develop solutions which relieve engineers of their demanding tasks and our focus continues to be on providing products to customers for developing embedded systems so that they can develop solutions which will drive the future of mobility.

We see the business opportunities increasing with our existing customers as they look towards future challenges and opportunities. Also, the current trends have brought in new technology players in the automotive ecosystem, and we look forward to working with them as their reliable and technically competent partner.

Q) How do you see the collaborative approach, especially with high-tech companies?

Chandra Nataraja: Presently, we are already collaborating with multiple high-tech companies in Europe and USA. We do see the potential to collaborate with Indian Tier-1s, Tier-2s and service organisations, especially in the EV space. India is poised to develop a unique ecosystem within the electric vehicle segment where all these companies will play a key role, and we look forward to working as partners with everyone who will develop the future of mobility.

We continue to explore synergies with agile companies and our technology, which can be seen in our efforts to foray into areas other than automotive where we can add value as partner to customers and collaborate to develop technology solutions.

Q) What is the role of the Indian entity in Vector’s global business?

Chandra Nataraja: Vector Informatik India Private Limited is a 100 percent subsidiary of Vector Informatik GmbH and is headquartered at Pune with offices in Bengaluru, where more than 100 technical experts and subject matter specialists support the customers in automotive ecosystem with their challenges and provide customised solutions as per their development and testing needs.

We work closely with all global and local customers based in India, those who have technical teams and presence in India – to understand their development needs and provide solutions across application areas. Dedicated support team in India is available to the customers for all technical queries’ resolution, while we also facilitate the training needs of the customer locally. We also have a test services team which supports the customers with their customised project requirements related to test systems.

Q) What significance does AUTOSAR have for Vector?

Chandra Nataraja: We see that AUTOSAR is a standard that is widely adopted across the globe and the automotive market in India has also seen good adaptation towards AUTOSAR.

Vector has many years of experience in AUTOSAR and provides a comprehensive AUTOSAR Classic solution called as MICROSAR. It consists of the MICROSAR RTE (runtime environment) and MICROSAR basic software modules (BSW), which cover all aspects of the AUTOSAR standard and include many useful extensions. MICROSAR is widely used by several OEMs globally, and in India, many customers have MICROSAR stack running in their cars as the Tier-1s have used Vector AUTOSAR solutions.

Exida, the internationally recognised specialist for functional safety, has verified and independently certifies that the AUTOSAR 4 basic software from Vector fulfills the requirements of ISO 26262 up to the ASIL D level – it is called as MICROSAR Safe. MICROSAR Safe is the result of many years of experience in the field of functional safety and it helps customers integrate safety related functions into their ECU and develop AUTOSAR-based applications as per the functional safety standard, ISO 26262.

In 2017, the AUTOSAR development partnership added a new standard to its line-up that is based on POSIX operating systems: the “AUTOSAR Adaptive Platform”. Adaptive MICROSAR is the Vector solution for vehicles with an E/E architecture based on the AUTOSAR Adaptive Platform. It complements the proven MICROSAR with basic software for the AUTOSAR Adaptive Platform, which is optimised for highly automated driving, multimedia applications and networking services.

Thus, we at Vector provide field-proven AUTOSAR solutions which are tuned to the customer needs – offering a comprehensive range of design and development tools, ECU software and services around AUTOSAR. We are committed to support customers going ahead for all requirements around AUTOSAR.

Q) What are the new areas that Vector is now focusing on?

Chandra Nataraja: We continue to work closely as partners with customers to identify the new areas which will drive the future of mobility. We spoke about the current trends earlier and Vector continues its focus around those, including e-mobility, connectivity, cyber security and ADAS.

There is good amount of work going on towards the development of new connectivity-related technologies, as well as in cloud solutions. A lot of research is being undertaken on identifying the appropriate connectivity technologies for vehicle networks.

There are many new start-ups and technology players who are coming up as new trends emerge, across India and globe. Through our subsidiary VVC Vector Venture Capital GmbH, we continue to accompany young companies in their first steps by providing required support in different ways to these new entrants.

Vector Consulting Services is another such effort from our end to add value based on benchmarks, methodology and Vector experience in different toolchains. Through Vector Consulting, we aim to support customers for optimising the engineering and product development.

Q) What are the challenges in the industry?

Chandra Nataraja: Automotive electronics has come a long way and continues to evolve with trends and technologies like connected vehicles and autonomous driving, which we discussed earlier. Thus, one of the main challenges to the automotive ecosystem is to develop vehicles which are as secured as they are connected. The idea is to think more about the abuse cases than the use cases during development, which will ensure that the vehicles on the road continue to be reliable and secured.

On the development side, standardisation at the E/E Architecture level is the need of the hour which will allow for effective implementation of use cases like customisations amongst others.

We must understand that it takes considerable time and thought to bring new technologies to fruition and the process is at times slow. We thus need real R&D development at the local level in India, instead of being followers and adapters – this will allow for faster turnaround times and quicker technology adoption within the Indian automotive industry. (MT)

Two-wheeler and commercial vehicles major Eicher Motors has reported its record financial results for FY2025.

For the quarter ending 31 March 2025, Eicher Motors reported its highest-ever quarterly revenue from operations at INR 52.41 billion, marking a 23.1 percent increase over the same period last year. Quarterly EBITDA rose 11.4 percent to INR 12.58 billion, while net profit surged 27.3 percent to INR 13.62 billion.

Royal Enfield registered its highest-ever quarterly sales during Q4, with 280,801 motorcycles sold, up 23.2 percent YoY.

For fiscal 2025, Eicher Motors reported revenue of INR 188 billion, a 14.1 percent increase over FY2024, EBITDA rose 8.9 percent to INR 47.12 billion, while PAT stood at INR 47.34 billion, up 18.3 percent YoY.

The company also reported that Royal Enfield crossed the 1 million mark in annual sales for the first time in its history, clocking 1,002,893 units, up 10 percent YoY. Domestic sales grew 8.1 percent to 902,757 units, while exports surged 29.7 percent to 100,136 units.

The iconic brand launched six new motorcycles during the year, including the Guerrilla 450, Bear 650, Classic 650, Goan Classic 350, the 2024 Classic 350 (featuring a Factory Custom Programme) and the Scram 440.

Royal Enfield also made its debut in electric mobility with Flying Flea, a city+ EV brand inspired by the 1940s model of the same name. The new EV line-up is set to launch its first product by 2026, blending classic aesthetics with cutting-edge technology.

To strengthen its international footprint, Royal Enfield inaugurated its first fully owned CKD (completely knocked down) assembly plant in Thailand and announced a second CKD unit in Brazil aimed at serving the LATAM region. It also expanded operations in Bangladesh with a new manufacturing facility and flagship showroom.

Eicher Motors’ commercial vehicle arm, VECV, also posted a strong performance in a flat market. It reported annual revenue of INR 235.48 billion, up 7.7 percent from the previous year. PAT rose 57 percent to INR 12.86 billion, while EBITDA stood at INR 20.23 billion. The company sold 90,000 vehicles in FY2025, a 5.4 percent YoY growth.

VECV introduced the Eicher Pro X range – electric small commercial trucks assembled on an all-woman assembly line – as part of its push for sustainability and inclusivity. Volvo Trucks, part of the joint venture, launched India’s first FM Road Train for efficient long-haul logistics and also began deliveries of LNG-powered trucks.

Siddhartha Lal, Chairman, Eicher Motors, said, “We have had a remarkable year at EML and have reported exceptional performance across both Royal Enfield and VE Commercial Vehicles. In the motorcycle business, the middleweight segment saw a lot of action from our peers. Remaining unfazed and maintaining focus on our strategic goals and community, Royal Enfield stood head and shoulders above everyone else to sell one million motorcycles annually, for the first time in its history. With several global award winning and category defining motorcycles now sitting within the Royal Enfield portfolio, we are super excited and confident about the possibilities that lie ahead of us. At VECV also we saw record-breaking volumes and a strong performance despite the prevailing challenging market conditions. What excites me the most is that we have done it all quietly, consistently and with a sense of purpose. We balanced creativity with rigour, legacy and progress in a way that’s unique to our company and I genuinely believe we are just getting started.”

B Govindarajan, MD, Eicher Motors and CEO, Royal Enfield, said, “FY25 was an incredible year for Eicher Motors and Royal Enfield. We delivered our best-ever financial performance and despite a slow start to the year, we built strong momentum in the second half, launching six new motorcycles, achieving a record festive season and seeing healthy demand across all our products. We also strengthened our international footprint, with consolidated exports surging 29.7 percent to 100,136 units and opened new CKD operations. We also marked our entry into electric mobility with Flying Flea, our city+ EV brand that brings together timeless design and modern tech. It’s been a year of growth, resilience and execution and we are excited for what lies ahead.”

Vinod Aggarwal, MD & CEO, VE Commercial Vehicles, said, “VECV continued to outperform a nearly flat industry in FY2025, with vehicle sales growing 6 percent to 90,161 units. Our company closed the year as a market leader in the Indian 5-18.5T Light and Medium Duty truck segment and recorded its highest ever deliveries across key business verticals.”

Tata Motors Group Chief Financial Officer PB Balaji outlined a bullish roadmap for the company’s growth trajectory, citing strong performance recovery, a vibrant product pipeline and a sharp focus on electric mobility and international market expansion.

Balaji struck an optimistic note on Tata Motors' future, calling out sustained momentum across all three verticals – Jaguar Land Rover (JLR), Tata Commercial Vehicles and Tata Passenger Vehicles (PV).

"We are entering FY26 with a strong balance sheet and a clear growth agenda across all businesses,” Balaji said, underscoring that the Group is now structurally and strategically aligned for the next phase of expansion.

He emphasised that Tata Motors’ growth will be ‘product-led,’ particularly in the passenger vehicle segment. New launches – especially in the SUV and EV space – have been pivotal in reinforcing Tata’s market positioning.

In the commercial vehicles segment, Tata is banking on market recovery and improved fleet utilisation. “The freight cycle is showing signs of improvement, and we expect to benefit as replacement demand kicks in,” he noted.

On electric vehicles, Balaji reaffirmed Tata’s dominant stance in the Indian EV market and outlined plans to extend its lead. “The EV strategy is working. We’ve proven the thesis. The next steps will be about scale and ecosystem development,” he said. He highlighted Tata’s ambition to transition from simply selling EVs to enabling an entire EV ecosystem – touching on charging infrastructure, localisation of components and battery recycling as critical next steps.

JLR's transformation was another highlight of Balaji’s outlook. The British marque has returned to healthy margins and is now positioned to scale profitably, thanks to a focused approach on premiumisation, disciplined capital allocation and electric architecture development. “JLR has turned a corner—it’s about consolidating gains and investing in future-ready platforms,” he stated.

In addition, Tata Motors is eyeing growth outside India, particularly in the ASEAN and African regions. “We’ll continue to invest in markets where we see sustainable long-term potential,” he said.

Balaji also stressed Tata Motors' disciplined capital deployment approach, indicating that future investments would be ‘self-funded through strong cash flows.’ Debt reduction remains a high priority, even as CAPEX is strategically allocated.

Calling the next two years ‘defining’ for Tata Motors, Balaji summed up the strategy, “The next 24 months are defining for us as a group across the three businesses. We have tailwinds, we have the execution muscle and we are focused. Now is the time to accelerate.”

Financial Performance

Tata Motors reported record consolidated revenues of INR 4,396 billion for FY2025, marking a 1.3 percent YoY growth. However, net profit declined by 11.4 percent to INR 278 billion, impacted by margin pressures across key business segments.

Significantly, the Tata Motors Group turned net auto cash positive during the fiscal, closing FY2025 with a net cash balance of INRR 10 billion – a key milestone in the company's financial turnaround strategy.

Jaguar Land Rover (JLR) recorded Q4 FY25 revenues of GBP 7.7 billion, a decline of 1.7 percent YoY.

In the domestic commercial vehicles (CV) segment, wholesale volumes stood at 99,600 units in Q4 FY25, down 4.8 percent YoY. Exports, however, surged 29.4 percent YoY to 5,900 units. Total CV revenue declined marginally by 0.5 percent YoY to INR 215 billion, mainly due to lower volumes. Nevertheless, the business delivered improved profitability, with EBITDA and EBIT margins rising to 12.2 percent (up 20 bps YoY) and 9.7 percent, respectively – driven by better realisations.

In the passenger vehicles (PV) segment, Q4 volumes were at 147,000 units, down 5.5 percent YoY. Revenue fell 13.1 percent YoY to INR 125 billion. The EBIT margin came in at 1.6 percent, impacted by both lower volumes and realisations. However, this was partially offset by cost optimisation measures and government incentives.

The company also highlighted profitability in its core and electric PV portfolios. The internal combustion engine (ICE) PV business delivered an EBITDA margin of 8.2 percent in Q4, while the electric vehicle (EV) business remained EBITDA positive at 6.5 percent.

Akio Toyoda, Chairman of Toyota Motor Corporation (TMC), has been honoured with the 2025 Industry Leadership Award by the Society of Automotive Engineers (SAE) Foundation. The recognition was presented at the 27th Annual SAE Foundation Celebration held in Pontiac, Michigan, an event that pays tribute to industry leaders whose careers have inspired future generations of innovators.

Toyoda was recognised for his visionary leadership and transformative impact on the global mobility landscape. Serving as President and CEO of TMC from 2009 to 2023, he played a pivotal role in steering the company through a dynamic period of technological evolution. As Chairman, he continues to champion innovation, sustainability, and the development of a future-ready workforce.

In honour of Toyoda’s recognition, Toyota Motor North America announced a USD 1 million donation to support SAE’s A World in Motion (AWIM) program. The initiative introduces students to STEM education through hands-on experiences that develop critical thinking and problem-solving skills essential for the mobility industry.

This contribution complements the efforts of the Toyota USA Foundation’s Driving Possibilities initiative, which aims to enhance STEM learning and career readiness in Pre-K through 12th-grade schools across the U.S. Together, the AWIM and Driving Possibilities programs will serve nearly 24,000 students and provide STEM education training to approximately 700 teachers in key communities.

“Toyoda’s passion for driving excellence extends beyond the automotive industry. His commitment to education and Toyota’s investment in STEM programs like AWIM will leave a lasting impact on students and future engineers,” said Jamie Ferguson, Executive Director of the SAE Foundation & STEM Learning.

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.”

Category	Apr '25	Apr '24	Change (in units)	Change (in %)	Mar '25	Change (in %)
			YoY	YoY		MoM
Two-wheeler	1,686,774	1,649,591	37,183	2.25%	1,508,232	11.84%
Three-wheeler	99,766	80,127	19,639	24.51%	99,376	0.39%
E-Rickshaw (P)	39,528	31,811	7,717	24.26%	36,097	9.50%
E-Rickshaw with Cart (G)	7,463	4,215	3,248	77.06%	7,222	3.34%
Three-wheeler (Goods)	10,312	9,080	1,232	13.57%	11,001	-6.26%
Three-wheeler (Passenger)	42,321	34,959	7,362	21.06%	44,971	-5.89%
Three-wheeler (Personal)	142	62	80	129.03%	85	67.06%
Passenger Vehicle	349,939	344,594	5,345	1.55%	350,603	-0.19%
Tractor	60,915	56,635	4,280	7.56%	74,013	-17.70%
Commercial Vehicle	90,558	91,516	-958	-1.05%	94,764	-4.44%
LCV	46,751	47,267	-516	-1.09%	52,380	-10.75%
MCV	7,638	6,776	862	12.72%	7,200	6.08%
HCV	31,657	32,590	-933	-2.86%	29,436	7.55%
Others	4,512	4,883	-371	-7.60%	5,748	-21.50%
Total	2,287,952	2,222,463	65,489	2.95%	2,126,988	7.57%