The domestic production of the two-wheeler segment dropped to about 1.83 crore in FY21 as against the production of about 2.10 crore in FY20, financial services credit rating company Infomerics Valuation and Rating said in a report.

According to the Industry Outlook Automobile Industry report, the Indian automobile industry is valued at more than INR 8 lakh crore. Its turnover contributes approximately 7.1 percent of overall GDP, 27 per cent of industrial GDP and 49 per cent of manufacturing GDP. 

With the pandemic causing havoc in the automobile industry, the numbers have plummeted in FY21 for both production and sales, compared to the figure in FY20.

The study said two-wheeler is the most significant contributor to the automobile sector. It contributes about four-fifth to the overall industry, followed by passenger vehicles, contributing approximately 13 per cent to the industry.

Following some positive steps from the government, the automobile industry emerged as the top sector during the first four months of FY2021-22 with a 23 per cent share of the total FDI equity inflow, the study pointed out. The reforms by the government in FDI policy, investment facilitation and improving ease of doing business are some of the reasons for the increased FDI inflow, it said.

Along with enhancing FDI, the government has floated INT 25,938 crore worth of new production-linked incentive (PLI) scheme for the auto sector. The PLI Scheme for Automobile and Auto Components Industry will lead to a new investment of more than INR 42,500 crore, incremental production of over INR 2.3 lakh crore for five years. It is also expected to create additional employment opportunities for more than 7.5 lakh jobs.

The government also extended the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric vehicle (FAME) scheme by two years to 31 March 2024. Besides, the Central government approved the INR 76,000 crore scheme to boost semiconductor and display manufacturing.

However, the study pointed some significant challenges for the industry in future. It said there was a mismatch between funds allocated and disbursed. The Union government has only disbursed about 10 per cent (about INR 820 crore) of the total subsidies out of INR 8,596 crore earmarked under the FAME-II scheme. EV makers pointed out that the aggressive localisation criteria for qualifying for FAME-II were a reason for the limited disbursal under the scheme. The semiconductor shortage has also been adversely affecting the industry. The automotive component industry, which had a turnover of INR 3.40 lakh crore (USD 45.9 billion) for the April 2020-March 2021 period, posted a de-growth of 3 per cent, compared with the turnover in the previous year.

The report said the restructuring of Ford’s Indian operations caused massive anxiety for dealers and customers. The future of about 170 Ford dealers with a combined investment of INR 2000 crore and about 40,000 employees is uncertain, the study pointed out.

Some foreign original equipment manufacturers (OEMs) who exited in the last four years include General Motors in 2017, MAN Trucks in 2018, United Motor Cycles in 2019 and Harley Davidson in 2020. Accordingly, the FADA sought to introduce legislation, viz., Automobile Dealers Protection Act, to create an enabling environment for automobile dealers. Industry body FADA also indicated that it was the worst festive season in the decade, with overall vehicle registrations falling 18 per cent in 2021 as against the festive season in 2020.

However, the report highlighted that the EV segment and the sector growth is optimistic and is also likely to get an impetus by the government’s series of incentives.

Besides, the report is not very optimistic about the overall industry in the short term due to the semiconductor shortage and infrastructure challenges on the EV front.

The industry faces challenges from other factors like triple-digit fuel prices and the sudden exit of big companies. The report suggested that the industry needs to work on the semiconductor issue and try to develop native capacities, adding that the government needs to work in tandem and consider reducing fuel prices. (MT)

Bengaluru-based electric vehicle company Ultraviolette Automotive collaborated with the Madras Regiment Centre (MRC) of the Indian Army for a five-day rally across Tamil Nadu, by providing a fleet of F77 motorcycles.

The ride honoured the army Veterans and Veer Naris of Madras Regiment and the Armed Forces community in the region.

Under the aegis of the Dakshin Bharat Area, the rally covered six districts of Tamil Nadu - Tirupur, Karur, Dindigul, Madurai, Theni and Coimbatore. The team of army personnel engaged with approximately 3,000 veterans and veer naris during the journey: addressing various concerns, sharing crucial information on entitlements, and providing immediate assistance. The F77s covered a cumulative distance of over 6000 kilometres.

Narayan Subramaniam, CEO & Co-Founder, Ultraviolette, said, " Collaborating again with the Indian Army for this remarkable outreach initiative is an honour that resonates deeply with Ultraviolette's ethos. Our vision to create world-class technology is inspired by the spirit of the India - undaunted, resilient, and driven by purpose. The F77 embodies the very principles that define our Armed Forces - precision, performance, and an unwavering commitment to excellence. To witness Ultraviolette playing a key role in this rally, honouring veterans, and their families, is not just a privilege but a defining moment in our journey".

Suzuki Motorcycle India (SMIPL), a leading manufacturer of two-wheelers in the country, has reported wholesales of 112,948 units for April 2025, which is 14 percent higher than 99,377 units it sold last year.

The company reported an 8 percent growth in its domestic sales at 95,214 units, as compared to 88,067 units last year, while exports grew by 57 percent at 17,734 units, as against 11,310 units for the same period last year.

Deepak Mutreja, Vice-President – Sales & Marketing, Suzuki Motorcycle India, said, “This positive start to the year fills us with gratitude. Each unit sold represents the beginning of a new journey with our customers and we are thankful to be a part of it. We will continue to work sincerely to meet the evolving expectations of our customers and contribute positively to their journey with us.”

Last month, the company further upgraded its product lineup, including the Hayabusa to be OBD-2B compliant.

Chennai-based two-wheeler and three-wheeler maker TVS Motor Company has announced its wholesales for April 2025. The company reported witnessing a 16 percent growth, selling 443,896 units, as against 383,615 units last year. 

The domestic two-wheeler sales include 220,527 motorcycles and 169,741, while exports accounted for 106,683 units.  

EV sales grew by 59 percent, rising from 17,403 units in April 2024 to 27,684 units last month.

Three-wheeler sales grew by 50 percent YoY from 9,023 units to 13,566 units.

Blending the pulse of street culture, community and high-octane energy, Royal Enfield hosted the first-ever edition of HunterHood in Mumbai and New Delhi during the last weekend of April 2025. 
Inspired by the spirit of Hunter motorcycle of the company, the HunterHood event – the latest cultural initiative built around the ethos of “From the streets, For the streets” – brought together riders, artists and urban explorers across the two Indian mega cities. 
The company also unveiled ‘The 2025 Hunter 350’ with three new colourways and upgraded features inspired by and designed for ‘The Coolest Neighbourhoods of the world’.
Featuring unique programming in the form of skateboarding sessions, spontaneous cyphers, vibrant graffiti art, live music jams, dynamic dance circles and exhilarating BMX stunts, the event witnessed high-octane performances by some of India’s top musicians like Dino James, Wild Wild Women, Shah Rule, Suggahunny, The Spindoctor, OG Shez, Ikka, DK Mocity, Dhanji, Lush Lata and Samriddhi Bhargav. 
The event saw over 12 homegrown, premium and emerging street-led brands spanning skateboarding, apparel, sneakers and the culinary space participate. It was attended by 5,000 people across the two mega cities.