Q: What are the challenges faced by the members of the Auto Care Association during the COVID-19 induced scenario?

Hanvey: While our association’s Government Affairs team was able to successfully lobby and petition all levels of Government here in the United States to categorise our industry as “essential,” which allowed our members to continue operating their businesses, there are still a number of challenges facing our members right now. The overall decline in Vehicle Miles Travelled by Americans we saw in March/April this year has had an impact on the demand for parts and services in the aftermarket.

Additionally, all businesses—not just auto care industry businesses—have to navigate continuously changing health and safety regulations, a bureaucratic process for receiving emergency relief or stimulus funding, figuring out how to pay back emergency Government loans, and the increased potential for lawsuits if a customer or employee becomes ill.

Despite these challenges facing our industry, we’ve seen some positive trends in the aftermarket since the spring, including a rise in Vehicle Miles Travelled, an increase in the forecasted sales of light vehicles, and an increase in Do-It-Yourself (DIY) activity.

Q: What are the leanings for Auto Care Association from the COVID- 19-induced new normal and how it supported its members during this time?

Hanvey: As an association, we remain optimistic, despite the obstacles our industry has been facing. We’ve been fighting for our members on all fronts, including providing a dedicated and comprehensive Coronavirus resources webpage, lobbying all levels of Government for “essential” status, assisting members with navigating Government regulations and loans, as well as surveying members and tracking industry trends to keep both our association and our members informed on the latest developments in this battle with COVID-19 on our industry and our country.

Q: How has the ‘Be Car Care Aware’ campaign helped during COVID-19?

Hanvey: The Car Care Council has continued to inform and instruct vehicle owners on how to maintain their vehicles during COVID-19, even if their cars are spending more time in their driveways than on highways.

Q: What kind of role does the Auto Care Association play when the geopolitical imbroglio between different nations erupt leading to changes in the tariff, affecting the business of your members?

Hanvey: The Auto Care Association’s priority is and will always be the protection of our members and our industry’s future. Our Government Affairs team works year-round to defend the interests of our members, whether it’s for vehicle data access in Massachusetts or testifying before Congress about the impact of tariffs on complex global supply chains. We, as an association, also work extensively to facilitate meetings between our members and their congressional representatives to form meaningful relationships that can result in the prioritisation of our industry’s needs. We also work with our sister associations in-country to further demonstrate the impact of tariffs on multiple economies and get those messages to lawmakers.

Q: Can you update on the issues related to tariffs and their implications?

Hanvey: Our association continues to engage with the United States Government to seek means of relief for our members and industry from the negative impact of tariffs. We have been able to assist many of our members with obtaining exemptions from some of these burdensome tariffs, but we will continue engaging with the Government on this issue until the elimination of these tariffs is achieved.

Q: How do you see the growth of the US aftermarket vis-à-vis the global aftermarket industry?

Hanvey: Despite COVID impacts, forecasts for GDP growth in other countries for 2021 and 2022 show countries emerging from the pandemic and returning to positive growth, according to IHS Markit. Demand was improving for light vehicles as much of the world reopened, but of course, with new closures happening as a “second wave” permeates, that could obviously be affected. In the US, August sales were advancing recovery in auto demand since April as incentives, reopenings and stimulus helped auto demand defy economic indicators.

Again, the second wave happening now is likely affecting that. The aftermarket continues to demonstrate that it’s a recession-resilient industry and forecasts show a quicker recovery than expected due to more DIY and more preference for personal rather than public modes of transportation. More reliance on the current VIO means the vehicle age will continue to grow as people keep their cars for longer meaning more opportunities for the aftermarket to keep money in wallets and offer more convenience in a newly inconvenient world. While what is happening now is referred to as a V-shaped recovery, the emergence of a second wave could possibly point to a W-shaped recovery.

Q: What kind of changes do you see in the aftermarket with the automotive industry being triggered by either legislation or regulation?

Hanvey: The aftermarket continues to change and adapt to new technologies, and it absolutely presents an opportunity to standardise repair procedures to keep consumers safe as well as a level playing field for the industry. In fact, the Auto Care Association Emerging Technologies Workgroup has been working to identify these challenges and turn them into opportunities for the aftermarket as well as working to ensure that the aftermarket is included in the evolving transportation ecosystem and that there is a level playing field for all.

An Auto Care Emerging Technologies workgroup is defining a set of best practice recommendations to standardise safe and efficient ADAS sensor recalibration processes for all passenger vehicles. That workgroup is also defining standards recommendations that ensure fair and equitable access to embedded device software needed to maintain and repair today’s vehicles.

Secure Vehicle Interface (SVI) – our work to standardise the transmission of wirelessly generated vehicle data is critical to the future of the aftermarket.

Q: Today, almost all the vehicles, including trucks, are connected in one way or the other. What are the new challenges that emerge out of these connected vehicles?

Hanvey: The foremost challenge our industry is facing with “connected” vehicle technology is ensuring access to the telematics data generated by today’s vehicles for the aftermarket and vehicle owners. Without access to this vehicle data, the vehicle manufacturers are able to shut out vehicle owners and their independent repair shops, which stifles competition and increases prices. This is precisely why we returned to the battleground of Massachusetts this year to present a ballot question to voters intended to amend the original Right to Repair law and put consumers in control of their vehicle. We were victorious with a 75% yes vote.

Q: The Auto Care Association has been working on developing the adoption of the secure vehicle interface to access data cyber-securely utilising ISO standards. What is the update on this?

Hanvey: The Auto Care Association, along with Michelin and Enterprise Holdings, produced a demonstration in September for the European Commission and other interested constituents around the world on the Secure Vehicle Interface (SVI). SVI is a standards-based technology that enables secure cyber access to in-vehicle data to trusted third parties. The European Commission is currently working towards delivering a legislative proposal on the critical topic of access to in-vehicle data, which will define the future of the mobility ecosystem in Europe and around the world.

Viewed globally by over 300 participants, the webinar included a live demonstration of the capabilities of SVI, examples of potential applications and new opportunities presented by the technology.

Q: How is the Auto Care Association preparing its members to cater to electric mobility?

Hanvey: This is an important development that the entire industry needs to work together on to prepare future technicians. We work with partners such as TechForce, ASE and our community programmes to provide scholarships to young professionals looking to pursue careers in the industry and share information that showcases what the “new” reality of incoming technicians and why these jobs are so viable.

Q: What is the feedback to ACES (Aftermarket Catalogue Exchange Standard) and PIES (Product Information Exchange Standard); do they need any amendments?

Hanvey: The Auto Care Association recently received a federal award that will grant the association $299,000 from the International Trade Administration’s (ITA) Market Development Cooperator Programme (MDCP) award to help the automotive aftermarket industry facilitate the implementation and adoption of ACES and PIES technology standards in China and key Latin American markets.

We also continued to expand our standards coverage this year. On the ACES front, VCdb South America will soon become available, providing vehicle content in our VCdb database for Chile, Colombia, Argentina and Brazil. Spanish Translations for the VCdb, Qdb, PCdb and PAdb will also be available as an add-on. We’ve expanded the catalogue and access for North American companies to do businesses in Latin American countries despite closed borders.

Q: Can you update on UniLink?

Hanvey: The UniLink dataset is available and now includes 96 percent of the 1.4 billion global VIO. The UniLink database contains 23 years of information that is constantly growing and extending and is organised into 16 high-level original equipment manufacturing attributes. Serving as a high-level bridge to ACES so users can see which parts fit with their product portfolio, UniLink allows users to identify new countries, makes and models to sell existing parts already in their portfolio – eliminating redundancies in the supply chain. Aftermarket companies can now determine new markets across the globe for underperforming inventory parts that are sitting and collecting dust in the warehouse and connect product data under a unified platform approach to reduce redundant, time-consuming research and avoid costly errors. Our market feedback tells us that UniLink will help increase sales (five to fifteen percent).

Q: Can you update on Auto Care Association’s working model of the secure vehicle data from OEMs?

Hanvey: Now that we have won the Right to Repair ballot for the second time in Massachusetts, we hope to work with the automakers to implement SVI.

Q: Reports are doing the rounds that with more electronics and software entering cars/trucks, the OEMs might do away with the OBD port and will store data wirelessly, exempting them from the current law. Has the Auto Care Association taken cognisance of this as this move may bother your members / independent repair shops?

Hanvey: The Auto Care Association is aware that the OEMs are currently and actively opposed to allowing third parties to access the data generated by vehicles today and that they are spending millions of dollars to prevent independent repairers and vehicle owners from gaining access to this data. After a decisive victory for the Right to Repair initiative in Massachusetts this November, the public has put the OEMs on notice that they want access to their vehicle data. Should the OEMs move to an entirely cloud-based system and do away with the OBD port on vehicles, we will continue to fight for the rights and abilities of the American people to access their vehicle data and service their cars wherever they see fit.

Q: Can you tell us about your initiatives in building professional skills to your members?

Hanvey: The Auto Care Association’s education resources include networking and conference events, market research reports and analyses, publications, websites, scholarships and a partnership with the University of the Aftermarket, all with the goal of providing continuous professional development opportunities. The Auto Care Association also recognises and celebrates members of our industry each year who go above and beyond to equip their employees with the education and skills they need to be successful in today’s auto care industry through the Automotive Career and Education (ACE) Award.

Q: Can you tell us about the initiatives taken to support the sustainable growth of your industry?

Hanvey: COVID really accelerated a lot of things for the industry. A shift to digital and needing even more data to make better business decisions was crucial the moment our world changed earlier this year. Our industry has always been driven by a commitment to innovation and agility, and this has been an even bigger part of the aftermarket’s identity during the pandemic. We continued to build on our foundation of innovative products and services to keep the supply chain running efficiently, provide dynamic access to the real-time marketplace and help companies run their businesses at top capacity.

Our TrendLens platform, which houses our Demand Index tool is a prime example. The aftermarket needs to know how the changing economic world is impacting their businesses:

• Day to day changes to vehicle miles driven.
• Record highs and lows in temperatures across the US.
• Consumer confidence fluctuations that shift with every news cycle.

Searching for the latest economic and industry data (like the ones mentioned) to help inform business decisions can be frustrating: multiple data sources, inconsistent data, out of date data, and costly subscriptions. We tackle those big questions with TrendLens.

TrendLens puts curated and current interactive industry insights at the fingertips of all of our users. The platform enables users to understand how market influencing factors are affecting the industry with the most complete and up to date data sets available, all in one place with innovative ways to compare and contrast data to give it context.

We accelerated the production timeline of TrendLens by several months in response to the COVID crisis, and it should be an absolutely invaluable tool in the industry’s arsenal. But we took it a step further with Demand Index.

Demand Index lets aftermarket companies compare their performance to the market. It provides sales performance data with both a unit index and dollar index for 38 different product groups, from air filters to shocks and struts, and growing.

More data and better value are provided by the Demand Index than any other tool, and what we’re hearing is that buyers and manufacturers are finally coming to the table and speaking the same language and correlate efforts to ROI thanks to the tool. (MT)

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Automotive wholesales for May 2025 showcased a dynamic landscape for the Indian automotive industry, with OEMs experiencing distinct sales trajectories. From significant growth in the two-wheeler segment to some PV makers facing headwinds, the month provided an indicative picture of shifting consumer preferences and market conditions.

Hero MotoCorp, the world's largest manufacturer of motorcycles and scooters, dispatched 507,701 motorcycles and scooters in May 2025, showing both sequential and annual growth. The company maintained strong market momentum with 500,000 VAHAN registrations.

Hero MotoCorp's global retail performance also showed robust momentum, particularly in Bangladesh and Colombia, with exports maintaining a steady trajectory. The electric vehicle brand, VIDA, powered by Hero MotoCorp, delivered growth with dispatches of 8,361 units and 7,161 VAHAN registrations for the VIDA V2 electric scooter range, achieving a 7.2 percent VAHAN market share.

Honda Motorcycle & Scooter India (HMSI) recorded total sales of 465,115 units in May 2025. Domestic sales for HMSI stood at 417,256 units. The company's exports contributed 47,859 units to the total sales figure.

TVS Motor Company demonstrated impressive overall sales growth in May 2025, increasing by 17 percent to 431,275 units from 369,914 units in May 2024. Domestic two-wheeler sales registered growth of 14 percent, increasing from 271,140 units in May 2024 to 309,287 units in May 2025. Motorcycle sales saw a 22 percent increase to 211,505 units, scooter sales grew by 15 percent to 166,749 units and electric vehicle sales surged by 50 percent to 27,976 units. The company's international business (exports) also saw growth of 22 percent.

Royal Enfield experienced a significant surge in May 2025, posting monthly sales of 89,429 motorcycles, marking a robust 26 percent increase compared to the same month last year. The company's domestic sales contributed significantly to this performance. A key driver for this growth was the outstanding performance in exports, which soared by 82 percent to 13,609 motorcycles, up from 7,479 units in May 2024.

Maruti Suzuki India, the country’s largest passenger vehicle maker, reported total sales of 180,077 units in May 2025, demonstrating a 3.17 percent growth compared to 174,551 units sold in May 2024. Domestic sales, including Light Commercial Vehicles (LCV), stood at 138,690 units, experiencing a 5.46 percent decline from 146,694 units in May 2024. Sales to other OEMs also saw a marginal dip of 3.07 percent, reaching 10,168 units in May 2025. Conversely, exports surged by 79.76 percent YoY, totalling 31,219 units in May 2025 compared to 17,367 units in May 2024. Within passenger vehicles, while the Mini and Compact segment saw a decrease in sales, the Utility Vehicles segment demonstrated slight growth.

Tata Motors presented a contrasting picture, with total sales in the domestic and international markets for May 2025 standing at 70,187 units, a decline from 76,766 units in May 2024. Domestic sales for Tata Motors were 67,429 units, with Commercial Vehicle (CV) domestic sales at 25,872 units (a 9 percent year-on-year decrease) and Passenger Vehicle (PV) sales at 42,040 units (an 11 percent decline). In terms of international business for commercial vehicles (CV IB), Tata Motors saw a significant increase of 87 percent to 2,275 units.

Hyundai Motor India (HMIL) reported total monthly sales of 58,701 units in May 2025. Domestic sales for HMIL were 43,861 units. The company noted that the availability of some critical models was impacted due to a scheduled biannual plant maintenance shutdown during the month. Export sales for HMIL reached 14,840 units.

Mahindra & Mahindra, the SUV specialist, reported robust sales performance in May 2025, with overall auto sales reaching 84,110 vehicles, marking a significant 17 percent YoY growth. This was largely driven by the Utility Vehicles (UV) segment, which saw domestic sales rise by 21 percent to 52,431 units, contributing to a total of 54,819 UVs sold including exports. The commercial vehicles segment also performed well domestically, recording 21,392 units. Exports saw exceptional growth, surging by 37 percent to 3,652 units in May 2025.

Toyota Kirloskar Motor (TKM) continued its positive sales momentum in May 2025, reporting a total of 30,864 units sold, a 22 percent growth over May 2024. Domestic sales played a crucial role, reaching 29,280 units. The company also contributed to exports with 1,584 units.

Kia India maintained its strong growth trajectory for the fifth consecutive month in May 2025, dispatching 22,315 vehicles in the domestic market. This performance reflects a healthy 14.43 percent year-on-year growth when compared to the 19,500 units sold in May 2024.

Ashok Leyland saw a 5 percent increase in its total domestic vehicle sales in May 2025, reaching 14,534 units, up from 13,852 units in May 2024. This growth was primarily driven by its Medium and Heavy Commercial Vehicle (M&HCV) segment, with M&HCV Trucks increasing by 12 percent to 7,466 units and M&HCV Buses growing by 1 percent to 1,920 units. Light Commercial Vehicle (LCV) domestic sales experienced a slight decrease of 3 percent to 5,148 units.

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Reporting a revenue of over INR 500 billion for the first time, up 12 percent year-on-year, on the basis of automobiles are spares in FY25, Bajaj Auto Ltd has revealed that volumes rose seven percent YoY during the respective period with a strong performance in the first half and a relatively soft performance in the second half.

Observing a solid rebound (double digit volume and revenue growth) in exports, the Pune-based company earned an all-time high EBITDA of INR 101 billion, up 14 percent YoY. PAT also hit a new record at over INR 80 billion. With a revenue of around INR 55 billion from electric vehicles (20 percent of its domestic), the company, with a full PLI certified portfolio, underlined its organisation agility and adaptability with significantly improved unit economics in a journey spanning over the last three years.

With the refreshed Duke 200/250 and the new Adventure 390, the KTM portfolio of Bajaj Auto experienced strong momentum in FY25. Also the Triumph motorcycle portfolio with sales up 60 percent YoY. The KTM and Triumph motorcycles sold one lakh units domestically

The commercial vehicles portfolio of the company comprising mainly of three-wheelers saw a revenue increase of over INR 100 billion. It combined the tradition ICE vehicle business and the newly developed electric vehicle business. The launch of GoGo electric three-wheeler and a wide network of over 850 dealerships helped to increase the momentum.

Image for representative purpose only. 

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Disruptive events such as the Red Sea crisis and the Russia-Ukraine war have caused a need to have a closer look at the role of Chief Financial Officers (CFOs). A renewed approach demands that CFOs act as a change catalyst within the automotive supply chain to tackle future hurdles. To ensure stability in the Indian automotive industry filled with technological advancements, especially in alternative energy vehicles, CFOs are acting as co-pilots of transformation in the Indian automotive supply chain, opined Former Additional Secretary of the Department of Commerce, Government of India, Anand Swarup, during the ACMA CFO and Supply Chain Conference on 28 May 2025, in New Delhi.

The event brought to the forefront discussions on how the role of CFO’s has been changing over the year and saw participation from speakers from different organisations, including Maruti Suzuki India CFO Arnab Roy, among others. 

The speakers highlighted the evolution of customer demands, market dynamics and innovation due to the volatile business environment. Speaking at the event, Partner and National Auto Tax Leader at EY India, Saurabh Agarwal, said, “The CFO no longer works as an accountant, but dons multiple hats such as a risk manager and a strategic partner for resilience.”

“The leader must focus on execution and being agile in a dynamic environment to build strong relationships with other departments and ensure faster time to market. Staying agile will help an OEM to better handle changing customer demands and be able to introduce new features and variants faster,” he added.

Enumerating how flexibility helps the CFO devise strategies for optimising auto production, managing risks and adapting to supply chain disruptions, Roy said, “Real-time decisions must be made in today’s volatile world. As a result, the CFO’s role is now expanding to cover a gamut of subjects such as sustainability, location strategy and choice of appliances. Since we are within a multi-dimensional environment at present, the CFO’s role is moving from a cost controller to a continuity architect.”

Further describing the changing role of a CFO in a volatile uncertain complex and ambiguous world, it was discussed that CFOs must act as change catalyst in the automotive supply chain. While enumerating the above, Anant Swarup said, “The CFOs are not naysayers and their image of being cost-cutting agents is gradually changing. They are supply chain whisperers and co-pilots of transformation. Data-driven risk modelling helps them make accurate future decisions and turns them into participative entities.”

The current world scenario mandates a CFO’s financial expertise to assess vendor performance, identify cost-saving opportunities and process improvements, analyse costs and mitigate supply chain risks. Alluding to the same, Roy explained, “The CFO can build a resilient supply chain through cash visibility and crisis foresight. Relocation with risk-adjusted precision is necessary as it helps prepare risk-adjusted return-on-investments models for various situations. The CFO must also build redundancies and incorporate inventory industrial planning into the company’s business plan. As the world de-globalises due to geo-political scenarios, auto manufacturers are being forced to reassess their supply chains.”    

“Seventy-five percent of automotive revenue is attributable to raw materials. Supply chain management provides a competitive edge. Yet another role for the CFO would be to optimise capital for crisis situations that may include geopolitical shifts,” Roy added.  Speaker Sunil Bohra, CFO, Uno Minda Group, while describing how CFO’s act as change catalyst in automotive supply chain, said, “Every automotive plant in India produces roughly 14,000 parts.” He explained that supply chain management must account for cost control and operational efficiency, leading to effective allocation of resources, high profitability and less waste. It is the supply chain-CFO partnership that decides the future of automotive companies and manufacturers.

Though geo-political scenarios are predominantly uncertain, CFO’s have the arsenal to make calculated decisions for mitigating risks. EY India Partner, Tax, Pankaj Jain, explained, “When changes happen at the geo-political level, we must take some calls. For example, one such concept could be focusing on developing tier II and tier III vendors in India.”

The speakers also discussed on how discipline and immense hard work during the entire shift has helped China reach where it is in the auto manufacturing sector. Highlighting the Indian scenario vis-a-vis China, President- Finance and Strategy at Minda Corporation, Ajay Agrawal, said, “India must stop trying to beat China in the manufacturing industry right now since we have only been in the supply chain business for 2-3 years. The best way forward is for us to partner with China.”  

A smart supply chain-CFO partnership is possible through digitalisation. The CFO's role today has undergone a paradigm shift, making him a partner of strategic convergence across the supply chain, finance and digitalisation as the partnership is no longer just an operational topic.

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Gurgaon-headquartered BMW India Financial Services, the subsidiary of the BMW Group, which focusses on retail finance, commercial finance and insurance solutions, has appointed Andreas Modlmayer as the new Managing Director and Chief Executive Officer.

He succeeds Jaejoon Lee, who successfully led the company as a leading end-to-end automotive financial solution for the BMW brand in the country.

Modlmayer has been associated with the BMW Group since 2000 and was the CEO of BMW Austria Bank in Greece. He has extensive leadership experience for BMW Group Financial Services and has worked across geographies such as New Zealand, China and Hong Kong. He started his career with BMW Bank Munich in Sales and Marketing function.

Lisa Ng, Regional Chief Executive Officer of BMW Group Financial Services for Asia Pacific, said, “Andreas Modlmayer brings with him valuable expertise and leadership acumen, with successful development of BMW Financial Services in diverse markets for over two decades. India is an important market for us, and we are confident that he will further add to the company’s growth as he takes charge of BMW India Financial Services.”

“We thank Jaejoon Lee for his immense contribution to BMW India Financial Services in the recent years. He successfully steered the company with new initiatives in product offerings and customer centricity and strengthened the foundation for future growth. We wish him all the best as he returns to BMW Korea once again,” added Ng.

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