The automotive retail sales in January 2025 grew by 6.63 percent YoY, a growth much better than previously anticipated by most industry observers. A total of 22,91,621 vehicles were sold across segments, which includes 15,21,862 two-wheelers (+4.15 percent YoY), 1,07,033 three-wheelers (+6.86 percent YoY), 4,65,920 passenger vehicles (+15.53 percent YoY), 93,381 tractors (+5.23% YoY) and 99,425 commercial vehicles (+8.22% YoY) according to the latest data released by the Federation of Automobile Dealers Associations (FADA).

“The auto retail sector kicked off 2025 on a promising note, aligning with FADA’s earlier survey projections that expected January to range from flat to moderately positive. Indeed, overall retail sales posted a robust 6.6 percent YoY growth, reinforcing the industry’s optimistic start. Our observations indicate that each vehicle category – two-wheeler, three-wheeler, passenger vehicle, tractor and commercial vehicle – witnessed positive momentum, pointing toward sustained consumer confidence and steady market recovery,” said C S Vigneshwar, President, FADA.

In the two-wheeler segment, urban sales outpaced rural sales on the back of new model launches, marriage season demand and improved financing as key growth drivers. However, concerns about rising interest rates, rural liquidity challenges and market uncertainty still linger.

The passenger vehicle segment saw some spike on the back of ‘2025 model year’ sales, as the previous year models do see significant discounting.

“Commercial Vehicle sales increased by 8.22 percent YoY and surged 38.04 percent MoM, with urban markets climbing from 50.1 percent to 51.2 percent share and outpacing rural growth (9.51 percent vs 6.89 percent). While higher freight rates and passenger carrier demand provided a boost, many dealers cited low cash flow, strict financing policies and sluggish industries (like cement and coal) as major hurdles. Sentiments in rural regions remained notably subdued, compounded by limited new products. Overall, the sector shows cautious optimism but faces persistent headwinds,” added Vigneshwar.

Going forward, FADA maintains a cautious optimism for February, with dealers having a mixed sentiment ranging from an uptick, flat to even a drop in sales.

The tailwinds include continuing marriage season, fresh product launches and strategic promotional activities to sustain customer footfalls. This will be aided by improved inventory management, better financing options from select lenders and backlogged orders in certain segments (such as commercial vehicles) add to the sense of guarded confidence. With supportive policies and a post-budget lift in consumer sentiment, many believe February could see a stable or slightly elevated sales curve.

On the other hand, the headwinds expected include shorter working days, pockets of weak rural liquidity and inflationary pressures. Then there is the strict lending criteria, costlier vehicles and subdued demand in certain industrial sectors to further weigh on overall performance.

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As a key contributor to India’s rail modernisation, Pinnacle Industries has been selected as the official partner by Indian Railways to design and manufacture the sleeper berths and executive seating for the new Amrit Bharat Express. This partnership aligns with the train's role as a transformative, high-speed and affordable option for long-distance travel across the country.

The seating solutions developed by Pinnacle are the result of extensive ergonomic engineering, created to provide superior comfort, safety and longevity. They are specifically optimised to perform reliably in both air-conditioned and non-air-conditioned coaches. A primary focus has been placed on passenger well-being for extended journeys, achieved through enhanced cushion thickness in both seats and berths. The design also incorporates refined aesthetics with improved colour schemes and features like aluminium extrusions for the upper berths.

Safety is a critical component of the design, which includes specialised anti-injury fittings integrated into the seats and berths to minimise potential risks. Furthermore, all materials fully comply with the stringent fire safety standard EN45545-2 HL3, meeting Indian Railways' rigorous requirements for fire-retardant properties. Leveraging decades of expertise in mobility interiors, this project reinforces Pinnacle Industries' position at the forefront of developing world-class transportation solutions for India.

Arihant Mehta, President, Pinnacle Industries, said, “We are honoured to be a part of this visionary initiative by Indian Railways. Our seating solutions for the Amrit Bharat Express reflect our commitment to designing products that combine comfort, safety and innovation while being proudly Made in India. With this, we continue to drive India’s vision of modern, accessible and reliable public transport.”

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The Society for Automotive Fitness & Environment (SAFE), an initiative of the Society of Indian Automobile Manufacturers (SIAM), held its 26th annual convention today to address the urgent need for road safety and a transition to green mobility. Held at Bharat Mandapam, the event, themed ‘Together for Safe Roads and Green Mobility: Building a Sustainable India,’ brought together government officials, industry leaders and experts.

Rekha Gupta, the Chief Minister of Delhi, was the Chief Guest and emphasised that accidents are a result of driver behaviour, not vehicles. "We must shed the mindset that breaking rules is a badge of pride," she said.

She also highlighted Delhi's commitment to clean mobility, with a goal of electrifying 100 percent of its public transport by 2026. The Chief Minister also launched SAFE's new Road Safety Context Paper and a new initiative to involve college students in road safety.

In a video message, H D Kumaraswamy, the Union Minister of Heavy Industries and Steel, noted that the government has invested over INR 600 billion to boost domestic manufacturing and support clean energy adoption.

Sushant Naik, President of SAFE, stressed that safety must be a core part of design and manufacturing. "Over 173,000 lives are lost each year, a stark reminder that action should be urgent and collective," he said. He emphasised that road safety requires the collaboration of the five ‘Es: Education, Engineering, Emergency Care, Enforcement and Evaluation’.

Speakers, including Mahmood Ahmed, Additional Secretary of the Ministry of Road Transport and Highways (MoRTH), highlighted the need for a comprehensive accident database and a unified system to link driver licensing, vehicle registration and enforcement.

Sanjay Bandopadhyaya, a member of the Supreme Court Committee on Road Safety, pointed out that accidents rose in 2023 despite a goal to halve them, calling for stricter electronic enforcement to curb reckless driving.

Ajay Chaudhry, Special Commissioner of Police (Traffic) of the Delhi Police, noted that while the city has cut accident fatalities by 8 percent, speeding and violations remain a serious problem and he called for ‘zero leniency.’

The convention featured two plenary sessions focusing on ‘Education and Engineering’ and ‘Enforcement, Emergency Care and Evaluation.’ These sessions covered topics like promoting responsible driving, designing safer infrastructure and the importance of a swift emergency response to reduce accidents and save lives.

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Union Minister of Commerce & Industry, Piyush Goyal, inaugurated the Electric Vehicle (EV) Zone at the International Electrotechnical Commission's (IEC) 89th General Meeting in New Delhi on 15 September 2025. The exhibition, hosted by the Bureau of Indian Standards (BIS), runs until 19 September at Bharat Mandapam.

The EV Zone, organised by the Society of Indian Automobile Manufacturers (SIAM), showcases the country's progress in electric mobility. Goyal toured the pavilion, which features 31 production-ready electric vehicles from 14 major manufacturers, including Tata Motors, Mahindra & Mahindra and JSW MG Motor.

During the event, Minister Goyal emphasised that sustainability is a core pillar of India's growth strategy. He highlighted the importance of high-quality standards in protecting consumers and boosting the competitiveness of Indian-made products on the global stage. He also stated that ‘Design in India, Made in India’ products would soon be recognized globally for their reliability and excellence.

Prashant K Banerjee, Executive Director of SIAM, expressed appreciation for the government's vision, noting that the automotive industry is committed to this journey. The IEC GM 2025 has brought together over 2,000 global experts from more than 100 countries to discuss international standards, with the exhibition also featuring advancements in smart lighting, electronics, and IT manufacturing.

SIAM’s participation is part of its commitment to sustainable mobility and achieving India's Net Zero targets by 2070. Visitors to the EV Zone can also take a ‘Digital Sustainability Pledge,’ with BIS planting a sapling for each pledge made.

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The Federation of Automobile Dealers Associations (FADA) has released the results of its Dealer Satisfaction Study (DSS) 2025. The study, conducted in partnership with the Singapore-based consulting firm PremonAsia, was announced at the 7th Auto Retail Conclave on 10th September.

C.S. Vigneshwar, President, FADA, noted that the study provides a ‘true mirror’ to the relationship between dealers and OEMs. The study surveyed over 1,800 dealer principals, representing nearly 5,000 outlets across the country. For the first time, it was conducted in nine regional languages to ensure broader participation.

• JSW MG Motor captured the top position in the 4-Wheeler Mass Market segment with a score of 868 points.
• Royal Enfield led the 2-Wheeler segment with 852 points, followed by Hero MotoCorp. Both companies showed improvement from the previous year.
• Ashok Leyland retained its leadership in the Commercial Vehicle segment with 786 points.
• The 3-Wheeler segment was included again after three years, with Atul Auto topping the category with a score of 924 points.
• Volvo Cars topped the 4-Wheeler Luxury segment with 884 points.

The industry average dealer satisfaction score was 781, a 13-point increase from the previous year. Product continues to have the highest score across all categories, indicating dealers are largely satisfied with the quality, reliability and range offered by OEMs.

Rahul Sharma, Director and COO, PremonAsia, said, "close to two-thirds of dealer sentiment is shaped by after-sales service and viability factors. While after-sales service is the most important factor, Business and viability remains a key concern for dealers. Dealers cited issues such as buyback/write-off of unsold inventory, training cost-sharing arrangements and margins on vehicles and spare parts.”

Dealer satisfaction improved in the 2-wheeler segment compared to the previous year, but it declined in the 4-wheeler Mass Market and Commercial Vehicle segments. Vigneshwar stated that while the industry is performing well on product quality, structural issues like buyback policies, training costs and dealership viability cannot be ignored.

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