The Federation of Automobile Dealers Associations (FADA) inaugurated the 13th edition of the Auto Summit 2025, its flagship biennial convention, now an annual event aligned with Bharat Mobility, the Global Expo. Themed "Safe, Efficient & Sustainable: Shaping Tomorrow’s Mobility," the summit highlights the Indian retail automobile industry's progress and outlook.

Dubbed the "Maha Kumbh" of India’s automobile retail industry, the summit welcomed Union Minister for Heavy Industries H.D. Kumaraswamy as the Chief Guest with Union Minister for Road Transport and Highways Nitin Jairam Gadkari, addressing the gathering virtually as the Guest of Honour.

A prestigious platform for manufacturers, government officials, dealers, industry analysts, academia and thought leaders, the FADA Auto Summit fosters discussions on auto retail's evolving dynamics, emerging opportunities and strategic visions.

Auto Summit 2025 featured 75 distinguished speakers across 20 sessions, providing stakeholders an unmatched opportunity to engage in meaningful dialogue, share insights and explore sustainable growth strategies for the sector's future.

Recognising the automotive industry’s contribution to the Indian economy, Kumaraswamy said, “The 13th Auto Summit is a pivotal moment for India’s automotive sector, focused on the theme "Safe, Efficient & Sustainable: Shaping Tomorrow’s Mobility." Safety remains a core priority, with an emphasis on enhancing road safety standards, integrating advanced driver-assistance systems, and improving infrastructure. Achieving this requires collaboration among manufacturers, dealers, policymakers, and consumers to reduce accidents and protect lives. Efficiency is also at the forefront, as evidenced by the 9% growth in vehicle sales in 2024, reaching 26.1 million units. This growth reflects the industry's focus on cutting-edge technologies that streamline manufacturing and enhance customer experiences across all segments.”

He added, “Sustainability is now a necessity. In 2024, electric vehicle (EV) sales surged to 14,08,245 units. Together, these efforts, supported by FADA and the government, are positioning India as a global leader in safe, efficient, and sustainable mobility, ensuring the sector meets both consumer needs and global challenges like climate change and road safety.”

Speaking at the occassion Gadkari stated , “The Indian automobile sector is witnessing a remarkable transformation, growing from INR 7 lakh crore to INR 22 lakh crore, now surpassing Japan globally, and becoming the fastest-growing economy in the world. As the 5th largest economy, India is on track to become the 3rd largest, backed by its immense skilled and youth workforce. The country's potential in raw materials, especially at reasonable rates, positions us to lead in industries ranging from 2Ws and tractors to alternative fuel options.”

He added, “India is not just leading domestically and now has a strong foothold in the international market, with 50% of the two-wheeler segment being exported. The focus on clean, sustainable energy—ranging from ethanol and biodiesel to hydrogen and electric—underscores our commitment to a greener future. As we work towards reducing our dependency on fossil fuels, we’re creating employment opportunities for millions, with the automobile sector alone poised to generate up to 4 crore jobs. The industry’s future looks promising, with a competitive edge driven by research, innovation, and the focus on quality. We are committed to making India an ‘Atmanirbhar Bharat’, achieving self-sufficiency, while also positioning ourselves as global leaders. Initiatives like the pilot project in Nagpur for ropeway cable cars and flash-charging buses highlight the industry's focus on cutting-edge technology for urban mass transport. The potential for growth is enormous, as we continue to expand both the domestic and export markets. With strong research, investment in institutions like IITs, and a robust focus on sustainability, India is well on its way to being a global powerhouse in the automobile sector."

Alludng to the occassion, FADA President C S Vigneshwar said, “As we gather today at FADA’s 13th Auto Summit, it is inspiring to reflect on the significant progress our industry has made in shaping India’s automotive landscape. Over the past year, the sector has displayed remarkable resilience, achieving a 9% growth in vehicle retail. This success highlights the strength of consumer confidence and the dedication of all stakeholders in the ecosystem. This year the theme of the summit, ‘Safe, Efficient & Sustainable: Shaping Tomorrow’s Mobility,’ underscores the collective responsibility we share to shape an automotive future that is not only technologically advanced but also mindful of our environmental and societal obligations. As vehicle penetration increases, it is essential that we prioritize road safety, enhance operational efficiency, and accelerate our transition to sustainable mobility solutions. These are not just goals but imperatives for the industry to thrive and for India to emerge as a global leader in mobility.”

He added, “The successful implementation of FAME I and II, along with the ongoing PM eDrive initiative, are crucial steps in India's journey towards cleaner and greener vehicles, and FADA remains committed to supporting these efforts.”

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Swedish steel manufacturer SSAB has announced a new collaboration with Polmotors, a tier 1 supplier focusing on low-emission products, for exploring the potential of fossil-free materials in demanding automotive applications.

The partnership will see Polmotors explore manufacturing components using SSAB’s decarbonised steel.

SSAB is working on two unique decarbonised steels and aims to largely eliminate carbon dioxide emissions from its own operations. It has already introduced SSAB Zero, which is based on recycled steel and made using fossil-free energy. The company claims that it has also successfully produced the world’s first fossil-free steel. It works with iron ore producer LKAB and energy company Vattenfall as part of the HYBRIT initiative to develop a value chain for fossil-free iron- and steel production, replacing the coking coal traditionally used for iron ore-based steelmaking with fossil-free electricity and hydrogen. This process virtually eliminates carbon dioxide emissions in steel production.

On the other hand, Polmotors closely works with the likes of Volkswagen, Audi, BMW, Peugeot, Citroen, Jeep, Stellantis, Mercedes-Benz and Opel among others, to introduce high-performance components which are not only lighter but also greener.

Maciej Grabos, CEO, Polmotors, said, “Polmotors sees the future of fossil-free steel. And the potential competitive advantage of being an early adopter, positioning ourselves to meet the anticipated market demand from premium automotive OEMs. We design and manufacture crash management systems (CMSs) for these customers, such as bumpers and rally bars, so choice of materials is crucial. Polmotors looks forward to joint R&D – working with SSAB and the OEMs – for the implementation of new steel grades in our products.”

Robert Lewandowski, Key Account Manager, SSAB, said, “Polmotors recently celebrated its 35thanniversary. I’ve had the pleasure and privilege to meet them 20 years ago and observe how an initially small, Polish-owned enterprise turned into a global Tier1 supplier. Decarbonisation of the automotive industry requires cooperation across the supply chain where Tier 1 companies play an important role”.

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The Ministry of Heavy Industries (MHI) has announced a new initiative to promote green mobility in the country under the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India’ (SPMECI).

The initiative aims to focus on encouraging the manufacturing of electric four-wheelers in the country. The scheme eventually looks to establish India as a premier global EV-manufacturing hub and attract investments from global electric vehicle companies, along with generating employment.

The Ministry of Heavy Industry has opened the application portal for a period of around 3 months starting from 24 June 2025 till 6pm on 21^st October 2025.

HD Kumaraswamy, Union Minister for Heavy Industries and Steel of India, said, “Guided by the visionary leadership of Prime Minister Narendra Modi, this initiative marks a defining moment in India’s journey towards clean, self-reliant and future-ready mobility. The launch of this portal under the SPMEPCI scheme opens new avenues for global electric vehicle manufacturers to invest in India’s rapidly evolving automotive landscape. This scheme not only supports our national commitment to achieving Net Zero by 2070, but also reinforces our resolve to build a sustainable, innovation-driven economy.”

As per the guidelines, all approved applicants will need to invest a minimum of INR 41.5 billion to establish long-term manufacturing footprints in India. Global OEMs who invest in the country will be able to import electric passenger vehicles as Completely Built Units (CBUs) with a minimum CIF value of USD 35,000 at reduced customs duty of 15 percent for a period of five years from the Application Approval Date.

The Ministry has announced calibrated customs duty concessions and clearly defined Domestic Value Addition (DVA) milestones to strike a balance between the introduction of advanced EV technologies and the use of indigenous capabilities. Through domestic value addition targets, the scheme aims to fast track global and domestic companies towards becoming active partners in the country’s green mobility revolution.

SPMECI had been notified by a notification given on 15 March 2024.

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Tata Motors, one of India’s leading automobile manufacturers, has inaugurated two—state-of-the-art Re.Wi.Re – Recycle with Respect – Registered Vehicle Scrapping Facilities (RVSFs) in Lucknow, Uttar Pradesh and Raipur, Chhattisgarh.

The Union Minister of Road Transport and Highways, Government of India, Nitin Gadkari, inaugurated these facilities virtually. The facilities are designed to safely and responsibly dismantle end-of-life vehicles including two-wheelers, three-wheelers, passenger vehicles and commercial vehicles, irrespective of the brands.

Nitin Gadkari, said, “I am pleased to launch two Registered Vehicle Scrapping Facilities in Lucknow and Raipur. These modern centres mark a progressive step under the National Vehicle Scrappage Policy, which empowers citizens to transition to cleaner, more fuel-efficient vehicles through structured incentives. These facilities will play a crucial role in the safe dismantling of unfit vehicles while enabling the recovery of valuable materials for scientific recycling. I commend Tata Motors for their steadfast commitment to sustainability and for establishing a nationwide RVSF infrastructure that aligns with global standards. Progressive initiatives like these are vital to building a robust ecosystem that makes vehicle scrappage accessible, efficient, and impactful across the country.”

The Raipur facility has a capacity to process 25,000 vehicles per annum, while Lucknow facility can scrap upto 15,000 vehicles annually.  

Girish Wagh, Executive Director, Tata Motors, said, “Sustainability is not merely a commitment at Tata Motors—it is a foundational pillar shaping the future of mobility. Guided by the principles of a circular economy, we are steadfast in our pursuit of responsible and eco-friendly practices. With the widest nationwide network of Re.Wi.Re facilities, Tata Motors is now equipped to responsibly dismantle over 175,000 end-of-life vehicles annually. We deeply value the unwavering support and collaboration of our partners, state governments, and local authorities in turning this vision into reality. I would especially like to thank Union Minister Nitin Gadkari for his continued leadership and encouragement in advancing sustainable mobility and vehicle recycling in India.”

With this, Tata Motors now has 10 vehicle scrapping centres across the country including -  Jaipur, Bhubaneswar, Surat, Chandigarh, Delhi-NCR, Pune, Guwahati, Raipur, Lucknow and Kolkata.

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The Society of Indian Automobile Manufacturers (SIAM), the apex body representing automakers in India, has announced the wholesale data for May 2025. The month gone by saw a total of 2.05 million vehicles sold across the two-wheeler, three-wheeler and four-wheeler categories. This marked a flat growth versus 2.02 million vehicles sold last year, but an 11 percent growth over April 2025.

Looking at the segment-wise sales, the passenger vehicle sales were primarily driven by the robust demand for SUVs with 196,821 units sold, up 7.6 percent, as compared to 182,883 units sold last year. On the other hand, passenger car sales declined by 12.2 percent with 93,951 units sold, as compared to 106,952 units sold last year.

The three-wheeler segment was in the red across segments, with a total of 53,942 units sold, down 3.3 percent YoY.

In the two-wheeler space, the wholesales for motorcycles remained flat at 1.03 million units sold, while scooter sales grew by 7 percent at 579,507 units sold as compared to 540,866 units sold last year.

Commenting on the sales data, Rajesh Menon, Director General, SIAM, said, “All vehicle segments posted stable performance in May 2025. Passenger Vehicles segment posted sales of 3.45 lakh units, though 2nd highest ever of May, the segment de-grew marginally by 0.8 percent compared to May 2024, three-wheelers de-grew by 3.3 percent compared to May of previous year, with sales of 0.54 lakh units, while two-wheeler segment grew by 2.2 percent in May 2025, as compared to May 2024, with sales of 16.56 lakh units. Going forward, the RBI’s three repo rate cuts totalling 100 basis points in less than six months, along with a forecast of above-normal monsoons are some of the indicators which should positively impact the auto sector by improving affordability and boosting consumer sentiment in the coming months.”

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