“India’s Mobility Sector Stands at a Pivotal Inflection Point”: What The Auto Sector Said About 2025

As the curtains draw on 2025, India’s automotive sector has reflected on how the year shaped up as a whole. 2025 was a challenging year for the industry between policy changes, tariff headwinds, volatile forex, and a much-needed respite in the form of GST reduction, it was nothing short of a rollercoaster ride. However, what the year truly witnessed was an accelerated premiumisation of passenger vehicles, a faster maturing electric mobility segment, and a need to emphasise on domestic engineering and design transformation. That said, capacity expansion, technology integration, customer-centric innovation, and key partnerships have helped the industry grow and brace itself as it steps into the new year. Here’s what the Indian auto sector had to say about 2025.

Anand Mahindra, Chairman - Mahindra Group

“Business-wise, it has been a deeply satisfying year, not just because the numbers were strong, but because of what they signify. We did not just lead markets. We redefined expectations. Our SUV business led the market with record share, reaffirming our ability to anticipate what customers genuinely desire. Our farm equipment business achieved its highest ever quarterly market share, proving that innovation on the ground transforms lives. Meanwhile, our electric three-wheelers continued to dominate a highly competitive space.”

“For decades, Mahindra was seen as a homegrown brand known for rugged dependability. Today, we are perceived as modern, confident, and future-ready. EVs did not just change our portfolio. They changed the conversation. They signalled that Mahindra is mastering frontier technologies and shaping the future of mobility. We have raised the bar, and now we must keep raising it.”

Ajinkya Firodia, Vice Chairman & Managing Director - Kinetic Watts & Volts Ltd.

“2025 was a defining year for India’s electric-scooter journey. The industry decisively consolidated around leaders who stayed true to core scooter values – strength, reliability, service and quality – while intelligently blending modern electronics and connected features. EV penetration in scooters crossed an all-time high of 16%, and the momentum is only accelerating. Despite headwinds such as rare-earth magnet shortages, tapering subsidies and rising input costs, India’s EV makers didn’t just survive – they innovated and strengthened. The entry of global players like Tesla and VinFast further reinforced India’s position as a serious long-term EV market with enormous potential. On the broader automobile front, the reduction of GST from 28% to 18% brought renewed energy to the market. The auto industry continued its steady growth trajectory despite global conflicts, tariff uncertainties, and economic and political volatility – a testament to India’s resilience."

"This year also marked the loss of a true legend, Ratan Tata. A rare business leader who lived in the hearts of people, who dared to acquire iconic global marques and consistently innovated for the common Indian. His passing is not just a personal loss for the industry, but a turning point in India’s automotive history. For me personally, 2025 was a year of completion and action. After four years of relentless effort, we launched the Kinetic DX – a product that brought nostalgia, excitement, and overwhelming love from customers who connected deeply with the legacy it carries. Alongside the DX, we introduced our Range-X batteries, controllers and motors from KCL, unveiled our new identity, new showrooms, and formally re-entered the two-wheeler market. Delivering our first scooter at the feet of Shrimant Dagdusheth Ganpati was a moment of humility and gratitude. Our strategic technology partnership with Jio sets the foundation for scalable and exciting innovations ahead.”

Harinder Singh, Managing Director & CEO - Yokohama India Pvt. Ltd.

“Yokohama India continues to outpace market growth in 2025, delivering double-digit growth as India's passenger vehicle market continued its structural shift toward SUVs, larger tyre fitments, and premium offerings. On the OEM side, the shift has been even more pronounced. 17-inch and above tyres, now account for nearly a quarter of OEM supply, growing rapidly as SUVs and premium vehicles redefine the fitment landscape. Aligned with evolving market needs, Yokohama India introduced 20 inch tyres manufactured in India, and the commercial rollout from our Vizag facility strengthened our manufacturing capacity at exactly the right time. This expansion supports growing replacement-market demand while also enabling our OEM strategy."

"Consumers are demanding more from their tyres as vehicles and road infrastructure continue to improve, but they remain pragmatic about value and mileage. The strong response to BluEarth-GT Max is a testament to the same – after delivering a 30% improvement in tread life, volumes more than doubled, reinforcing that performance must translate into tangible returns for the customer. While currency volatility continues to exert pressure on costs, the broader direction of the industry is clear. India’s passenger vehicle market is upgrading, led by the continued shift toward SUVs and larger fitments. With expanded capacity, stronger OEM alignment, and a focused SUV strategy anchored by our Geolandar portfolio, Yokohama India is well positioned to grow ahead of the category as these trends accelerate into 2026.”

Pratik Malkan, Chairman, Lusso Designs India

“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. 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.”

Chanakya Bellam, Board Member - AION-Tech Solutions Ltd

“2025 marked a pivotal year for AION-Tech Solutions Ltd. as we strengthened our position as a global, technology-first enterprise. From our early roots as a focused data and technology solutions provider, AION-Tech has evolved into an integrated platform spanning analytics, AI, cloud, and digital infrastructure. A key milestone during the year was the launch of our Dubai office, expanding our international footprint and bringing India’s expertise in data, analytics, cloud, and AI-driven digital solutions closer to the Middle East. Within this broader technology ecosystem, 2025 was also a defining year for our subsidiary, ETO Motors, as India’s electric mobility landscape scaled rapidly across urban and intercity use cases. Fleet-led electrification accelerated across passenger mobility, logistics, airports, metro-feeder services, and intercity transport, driven by operators seeking cost efficiency, higher uptime, and regulatory alignment."

"ETO Motors expanded its fleet presence across multiple high-impact corridors, including the launch of electric four-wheeler services at Kempegowda International Airport, Bengaluru, and a strategic partnership with FlixBus Germany to operate electric intercity routes between Hyderabad and Vijayawada. Continued investments in smart charging hubs, captive infrastructure, intelligent energy management, advanced telematics, AI-enabled fleet operations, driver training, and predictive maintenance significantly improved utilisation, safety, and operational resilience. At the centre of this integrated vision is ROQIT, AION-Tech’s OEM-agnostic, cloud-native, AI-powered SaaS platform, which enables end-to-end zero-emission mobility and logistics orchestration. During the year, ROQIT strengthened its footprint through enterprise deployments and strategic collaborations, including its work with Indian Railways on AI-led parcel logistics. Looking ahead to 2026, our focus remains on responsible scale—deepening global presence, advancing GenAI-led platforms, expanding multimodal electric mobility, and accelerating AI-driven fleet intelligence to build resilient, future-ready digital and mobility infrastructure for India and global markets.”

Nirmal Reddy, President – ETO Motors

“2025 marked a clear inflection point for the automotive industry, with electric vehicles moving decisively from early adoption to scaled, mainstream deployment across both passenger and commercial segments. Stronger policy clarity around incentives, localisation and safety norms, coupled with accelerated domestic manufacturing of EVs, components and batteries, helped stabilise costs and improve supply-chain resilience. Battery prices continued to rationalise, while improvements in energy density and thermal management expanded viable use cases across urban, intercity and fleet applications. At a macro level, the industry saw a structural shift from hardware-led vehicles to software-defined mobility, with AI-driven telematics, battery intelligence and over-the-air capabilities becoming central to vehicle design, operations and lifecycle management. Integrated charging ecosystems—combining fast charging, smart depot charging and energy management—emerged as a critical enabler of scale, especially for high-utilisation fleets. At the same time, reforms around localisation, safety standards and data-driven compliance increased long-term confidence among OEMs, suppliers and fleet operators, positioning EVs as a core pillar of the automotive sector rather than a parallel alternative."

"Within this evolving ecosystem, 2025 was a defining year for AION-Tech Solutions’ subsidiary, ETO Motors, as fleet-led electrification scaled rapidly across passenger mobility, logistics, airport, metro-feeder and intercity segments. Expansion across high-impact corridors included the launch of electric four-wheeler services at Kempegowda International Airport, Bengaluru, and a partnership with FlixBus Germany to operate electric intercity routes between Hyderabad and Vijayawada. Looking ahead to 2026, the focus will shift from adoption to optimisation—higher asset utilisation, deeper integration with public transport, smarter energy management, and sustainable commercial models. The next phase of EV growth will be defined not just by vehicles sold, but by how intelligently electric mobility systems are planned, operated and scaled across cities and regions.”

S Raghav Bharadwaj, CEO & Founder - Bolt.Earth

“This year marked a phase of consolidation for India’s electric mobility ecosystem, where the focus shifted from early adoption to building reliable and everyday charging access. At Bolt.Earth, our network reached over 1 lakh chargers across 1,800 cities and towns, accounting for 63 percent of India’s public charging market. We also saw growing adoption of our fast-charging solutions, including Blaze DC for high-utilisation public and commercial locations and Lightning DC for fleet operators and high-throughput corridors, each catering to distinct and expanding charging requirements."

"We are on track to generate $5 million in revenue in FY 2025 and continue progressing towards profitability by FY 2026-27. Our model of enabling charger hosts across residences, workplaces, and commercial locations has helped improve utilization and unit economics, making EV infrastructure increasingly sustainable. Looking ahead, the next phase will focus on scaling fast charging density and moving towards significantly higher annual deployments as adoption accelerates across segments in India.”

Rohan Dewan, Co-founder and CEO - LeafyBus

“If I look back at 2025, it was a solid year for India’s EV market, especially on the commercial side. Things didn’t move dramatically overnight, but they moved in the right direction and more importantly, they held. On the adoption side, EV penetration continued to rise across segments, with commercial vehicles contributing a disproportionate share of real usage. Electric buses saw continued expansion through state and PSU tenders, with many cities moving from first-phase deployments to larger fleet additions. Fleet operators in staff transport, logistics, and intercity movement increased EV utilisation because daily running economics were proving stable over time, not just during pilot phases. Infrastructure improvements supported this shift. Major highway projects, including the Delhi–Dehradun Expressway, brought down travel time significantly and improved route predictability. For EV operators, this mattered more than range on paper. Shorter, smoother corridors meant fewer energy fluctuations, easier charging planning, and higher daily vehicle utilisation all of which directly affect commercial viability.

"Charging availability also reached a more functional stage in 2025. Fast chargers are now present in most large cities and at select highway locations, allowing operators to plan routes instead of improvising. For fleets, charging is increasingly being aligned with scheduled halts and driver breaks, reducing non-productive downtime. This operational predictability is a key reason why fleet confidence improved during the year. From a cost perspective, the gap between EV and ICE operating expenses became clearer. With diesel prices remaining volatile, EV operators benefited from more predictable energy costs. Maintenance trends also stabilised, with electric buses and commercial EVs showing lower service frequency once early-life issues were resolved. This improved uptime and reduced unplanned stoppages. Another visible change in 2025 was the behaviour of lenders. Financing for EV fleets became more accessible where vehicles were backed by contracts or fixed routes. This shift was driven by actual operating data, kilometres run, uptime, and battery performance rather than assumptions. Insurance pricing also began reflecting lower risk as data sets improved.”