As 2025 draws to a close, India’s automotive ecosystem reflects a year marked by expansion into new markets, deeper engineering integration and rising demand for personalised, premium and sustainable mobility solutions. From coatings and materials to advanced vehicle design and mass-market OEM strategies, industry leaders highlight how efficiency, adaptability and customer-centric innovation shaped the year. In this year-end compilation, senior executives share their perspectives on growth drivers, evolving consumer expectations and the strategic priorities that will define the industry’s trajectory in 2026 and beyond.
Mr. Rajesh Menon, Director-General, SIAM: 2025 has been a landmark year for India’s automobile industry on multiple fronts. The year began on a strong note with the successful Bharat Mobility Global Expo, followed by the Government of India’s announcement of personal income tax reforms in the Union Budget, which helped lay the foundation for a positive demand environment.
FY2024–25 closed with robust performance across segments. Passenger vehicles and three-wheelers recorded their highest-ever sales, two-wheelers witnessed healthy growth, and the commercial vehicle segment maintained steady momentum. This performance was underpinned by a series of timely and supportive policy interventions that played a crucial role in sustaining demand and strengthening consumer confidence.
Monetary policy also provided a tailwind, with successive repo rate cuts by the Reserve Bank of India easing financing costs and improving sentiment. On the global front, the conclusion of the India–UK Free Trade Agreement in July marked a significant milestone, signalling India’s growing leadership in global trade and opening new opportunities for the domestic automotive industry.
While the industry faced certain supply-side challenges during the year, particularly due to the global shortage of rare earth magnets, it responded swiftly and effectively. A major positive development was the rollout of GST 2.0 reforms in September, which reduced GST rates on vehicles to 18 per cent and 40 per cent from earlier levels of 28–31 per cent and 43–50 per cent, respectively. These reforms significantly improved affordability, especially in entry-level segments, benefiting first-time buyers and middle-income households.
The continuation of the concessional 5 per cent GST rate on electric vehicles has further supported steady EV adoption across segments. Overall, all vehicle categories are expected to close the calendar year with growth over the previous year, alongside strong double-digit growth in exports—reflecting increasing global acceptance of vehicles manufactured in India.
With a favourable policy environment and improving geopolitical outlook, the Indian automobile industry remains optimistic that 2026 will witness sustained growth, as the country steadily progresses towards its vision of Viksit Bharat.
Mr. Vishal Kaul, President & Business Head, UNO Minda Aftermarket: “As the industry draws to a close on another transformative year, the Indian automotive aftermarket has entered a new phase of evolution marked by increased formalisation, a sharper focus on quality, sustainable value-led growth, and wider access to vehicle safety solutions. A key catalyst in this transition has been the GST 2.0 rationalisation implemented in September 2025, which brought most automotive components under a uniform tax slab.
This long-awaited reform has streamlined the aftermarket value chain, reduced the overall cost of vehicle ownership and reinforced consumer confidence in genuine, compliant auto components. In doing so, it has accelerated the shift towards a more transparent, organised, and trust-driven aftermarket ecosystem in India.
With SUVs now accounting for over half of new vehicle sales, the aftermarket product mix is evolving rapidly, fueled by strong demand for premium upgrades such as alloy wheels, high-intensity LED lighting, and advanced Android-based infotainment systems. At the same time, the growing awareness of Bharat NCAP ratings is accelerating the wider adoption of vehicle safety, with consumers increasingly investing in certified and trusted components and preventive safety technologies to protect their vehicles.
Looking ahead, 2025 has marked the emergence of EV-focused aftermarket solutions—including charging infrastructure and high-voltage electronics—working alongside the established ICE segment. As the market continues to mature, Uno Minda is well positioned for resilient growth in 2026, supported by a growing middle class and longer vehicle lifecycles that are sustaining demand for high-quality maintenance products.
To address this evolving demand, the company will significantly expand its portfolio in 2026 with the introduction of its advanced Blade Fuse range and an upgraded lineup of high-performance LED bulbs for both two-wheelers and four-wheelers. Backed by a presence across more than 25 product categories and a distribution network covering over 7,000 pincodes, Uno Minda remains committed to delivering reliable, world-class automotive solutions across India, even amid ongoing global raw material volatility”.
Toyota Kirloskar Motor spokesperson: “Overall, 2025 has been a positive year for Toyota, marked by stronger customer acceptance across our products and services, with year-on-year growth of over 17% [Jan–Nov]. We are grateful to the Government for the GST reforms, which have improved overall market affordability and enhanced purchasing power, thereby contributing to the sustained growth of the automotive industry.
This growth was supported by strong demand across our portfolio, with MPVs and SUVs remaining key drivers, resonating with customers who value reliability, comfort and versatility. At the same time, we witnessed a clear rise in demand for greener mobility solutions, reflecting increasing acceptance of our electrified offerings within India’s evolving mobility landscape. In addition, rural markets continued to gain momentum, with their growing openness to newer technologies, helping set the agenda for the year ahead.
As we look ahead, our commitment to decarbonization remains steadfast through Toyota’s multipath way approach, offering a broad range of technologies tailored to diverse customer needs and real-world usage. Anchored in our customer-first philosophy and long-term commitment to India, we will collaborate closely with all stakeholders to deliver world-class mobility solutions, advancing our global vision of carbon neutrality and mass happiness for all.”
Mr. Pratik Malkan, Chairman, Lusso Designs India: At Lusso Designs, transformation is approached as a structured, end-to-end process. Our capabilities span AI-led design modelling, robotics-assisted production, advanced prototyping and lightweight composite engineering, supported by strong process control and craftsmanship. This allows OEMs and mobility partners to enhance existing platforms, accelerate development cycles and deliver differentiated products that command premium positioning while aligning with sustainability objectives.
With India’s HNI and UHNI base continuing to expand, demand for bespoke and premium mobility solutions is expected to remain strong. Supported by global OEM collaborations and a focused R&D roadmap across luxury platforms, lifestyle vehicles and sustainable design concepts, Lusso Designs is well-positioned to support the industry’s next phase of growth through scalable, design-led and engineering-driven transformation.
Mr. Nirmal Reddy, President – ETO Motors: 2025 marked a turning point for the automotive industry as electric vehicles moved firmly into the mainstream across passenger and commercial segments. Clearer policies, localisation push, improving safety norms, falling battery costs and advances in battery technology strengthened supply chains and expanded EV use cases. The industry also shifted toward software-defined mobility, with AI-led telematics, battery intelligence, over-the-air updates and integrated charging ecosystems becoming central to scalable EV operations.
Against this backdrop, 2025 was a milestone year for AION-Tech Solutions’ subsidiary ETO Motors, which rapidly scaled fleet-led electrification across passenger mobility, logistics, airport, metro-feeder and intercity services, including electric operations at Bengaluru airport and intercity routes in partnership with FlixBus Germany. Investments in smart charging, energy management and AI-enabled fleet operations improved utilisation and reliability. Looking ahead to 2026, the EV sector is expected to move from adoption to optimisation, focusing on efficiency, integration and sustainable, scalable mobility systems.
Mr. Vyom Agarwal, President, ACE: “2025 was a year of moderated growth for the construction equipment industry, impacted by prolonged monsoons, the transition to Stage V emission norms, cautious customer sentiment and global cost pressures. Pre-buying activity and slower adoption of new technologies further tempered demand.
Looking ahead to 2026, ACE expects a demand revival driven by rising private capital expenditure, export opportunities, defence applications and increased public infrastructure spending across airports, railways and freight corridors. Supportive policies, GST reforms, softer interest rates and improved liquidity are expected to boost industry confidence. The sector will also see greater adoption of digital solutions such as telematics, remote diagnostics and predictive analytics. To support domestic manufacturers, ACE has urged the government to consider safeguard or anti-dumping duties on Chinese imports, which it believes would help strengthen competitiveness and support India’s infrastructure growth ambitions”.
Mr. Sharad Malhotra, Managing Director, Nippon Paint India: “2025 has been a year of expanding possibilities for us as we entered new product markets. As we look toward 2026, our focus remains on adding tangible value to our partners’ businesses. We anticipate a year where efficiency and adaptability will drive the market. We’re optimistic about the year ahead and confident in our ability to create lasting value for our stakeholders.”
As the industry moves forward, vehicle transformation is increasingly being driven by advanced engineering integration, intelligent systems and manufacturing-led innovation. Personalisation today has evolved from cosmetic differentiation to a core engineering principle, influencing vehicle architecture, material choices and feature integration across platforms.
Mr. Manish Rathi, Co-founder & CEO, IntrCity SmartBus: “2025 saw a structural shift in India’s intercity bus segment, transforming it from an episodic, festival-driven mode of transport to a consistent pillar of the country’s mobility ecosystem. Demand is no longer limited to a few peak dates; instead, festive travel, large-scale events such as the IPL, and the steady rise of short-haul, high-frequency journeys are fuelling year-round growth.
This transformation is most noticeable in winter travel patterns. Advance bookings for the December-January period increased by approximately 33% year on year, while average booking lead times more than doubled—from about 9 days last winter to nearly 20 days this season. Winter continues to account for nearly 55% of annual holiday planning, bolstered by clustered long weekends around Christmas, New Year’s, and Republic Day. At the same time, travellers are staying longer and preferring experience-based, immersive journeys to short, transactional trips.
Along with this, consumer preferences have clearly matured. Reliability, safety standards, and air quality are now influencing booking decisions alongside price, especially during peak winter months and disruptions in rail and air travel. In response, we have raised operational benchmarks at IntrCity SmartBus, including increasing safety compliance, improving on-time performance, establishing clearly defined boarding points, introducing air-purified SmartBuses on select routes, and enabling flexible boarding through initiatives like Smart Switch.
As a result, intercity buses are increasingly taking on time-sensitive and event-driven demand, which other modes struggle to scale efficiently during peak seasons. The segment is transitioning from a backup option to a high-frequency, experience-based mobility model, with long-term implications for fleet investment, capacity planning, and India’s overall transportation infrastructure”.
Mr. Nagendra Nath Sinha, MD, Rodic Digital & Advisory, describes 2025 as a transformative year for India’s infrastructure-led growth, driven by accelerated road construction, renewed momentum in rail, metro and industrial corridors, and strong government fiscal support. With India’s road network crossing 63 lakh km, digital mapping, GIS and spatial intelligence—integrated with the PM Gati Shakti National Master Plan—have become central to faster, data-driven and future-ready infrastructure planning and execution. The year also saw growing emphasis on renewable energy, sustainable utilities, smart cities and large-scale “mega projects” across transport, urban infrastructure, energy and ports, alongside regulatory reforms aimed at improving investment clarity and agility.
However, challenges persisted in 2025, including slower highway approvals, skill shortages, supply-chain disruptions, cost inflation, land acquisition and clearance delays, financing constraints and limited adoption of advanced construction technologies. Looking ahead to 2026, Rodic believes India must align ambition, sustainability and integration by deepening digital skilling, streamlining approvals, strengthening supply chains, improving long-term financing and continuing policy and fiscal support. Focus on asset monetisation, PPP reforms and emerging infrastructure segments such as energy storage, data centres, green energy and urban infrastructure will be critical to sustaining momentum and shaping the next phase of infrastructure development.
Mr. Mohit Jandu, MD, J Infratech: “The past year has been a mix of steady advancement and evolving priorities for India’s highway sector. While certain project bids saw rescheduling due to state-level clearance delays, the broader development momentum remained intact. The government’s renewed push to attract private participation, supported by the approval of high-speed corridor packages spanning nearly 930 km and backed by over ₹ 50,655 crore, has set a strong foundation for the years ahead. This aligns with India’s ambitious roadmap to expand its high-speed road network, with an investment outlay of nearly ₹11 lakh crore aimed at modernising infrastructure and reducing logistics costs.
The integration of GIS-led planning, intelligent traffic systems, digital tolling, and citizen-facing mobility platforms is transforming highways into responsive, data-enabled assets. In 2026, technologies, sustainability-focused methods and corridor-led approaches are poised to remain areas of sectoral focus.”
Mr. Khursheed Alam, Founder, Atmos Systems, notes that 2025 was a pivotal year for the company, driven by strong growth in logistics and warehousing as e-commerce, retail expansion and 3PL activity accelerated across India. Demand rose sharply for advanced material handling solutions such as high-throughput conveyors, automated storage, electric forklifts and intelligent sorting systems, as customers focused on efficiency, safety and operational predictability.
Despite this momentum, challenges such as high automation costs, skill shortages and system integration complexities remained. Atmos Systems addressed these through modular designs, training initiatives and closer collaboration with customers. Looking ahead to 2026, the company sees sustainability, autonomy and intelligence shaping the next phase of material handling, with lithium-ion electric forklifts, AI-enabled equipment, IoT diagnostics and autonomous mobile robots moving into mainstream adoption. Atmos Systems plans to strengthen its portfolio of sustainable and digitally intelligent solutions to support future-ready Indian warehouses.
