The 42 days festive period vehicle retail data for 2024 that the Federation Of Automobile Dealers Associations (FADA) has released, the overall sales of automobiles during this festive season have exceeded that of the last festive season. 
"I am delighted to announce that the automobile retail sector has achieved a new milestone, surpassing last year's festive records. We witnessed a remarkable surge in numbers since the beginning of Navratri, nearly hitting our forecasted target with 42.88 lakh vehicles registered during this period — a growth of 11.76 percent over last year's 38.37 lakh units,” mentioned C S Vigneshwar, President, FADA. 
Two-wheeler sales were particularly robust, according to him, registering a 13.79 percent growth to reach 3.31 million units, largely driven by strong rural demand. 
Passenger vehicle sales bounced back after a decline of roughly two-to-three months with a growth of 7.10 percent to 0.6 million units, spurred by pent-up demand and unprecedented discounts available in the market. 
Acknowledging that the target of 45,00,000-unit sales could have been fully met or even exceeded were it not for the unseasonal heavy rains in South India (especially in Bengaluru and Tamil Nadu) and the Cyclone Dana that affected Odisha, Vigneshwar averred, “FADA anticipates – as the festivities conclude – that passenger vehicle stock levels will reduce further from was reported in the October retail data press release.”
“FADA advises caution as the complete picture on inventory will emerge by month-end,” he added. 
Stating that FADA urges OEMs to focus on liquidating 2024 stock so that Dealers can enter 2025 with ideal FADA-recommended 21 days of inventory, Vigneshwar said, “Its 1.5 months remaining before the calendar year ends.”
 

The foundation stone for four manufacturing units was laid today by Ashwini Vaishnaw, Union Minister for Railways, Electronics, IT and Information & Broadcasting, at the Electronics Manufacturing Cluster in Divitipally, Mahabubnagar Dsitrict, Telangana. The Electronics Manufacturing Cluster in Divitipally was set up under the EMC-2.0 Scheme by the Telangana Government to promote electronics manufacturing in the state.

As part of the event, Amara Raja laid the foundation stone for its upcoming Giga Factory-1, while Altmin laid the foundation stone for its first LFP-CAM Giga Factory, Lohum held the groundbreaking ceremony for its battery recycling and critical minerals refining and Scell Energy held the groundbreaking ceremony for its cell casing manufacturing.

The Honourable Minister of Information Technology, Electronics, Industries, and Commerce, Legislative Affairs in the Telangana Government, D Sridhar Babu, the Honourable Member of Parliament from Mahbubnagar Constituency, Aruna D K, and the Legislative Assembly Member, Y Srinivas Reddy, graced the occasion. Jayadev Galla, the Chairman and Managing Director of Amara Raja Energy and Mobility Ltd, was also in attendance, as were senior state government officials and business executives.

In 2022, ARACT and the Telangana Government signed a Memorandum of Understanding to establish the Amara Raja Giga Corridor, wherein the business will establish facilities for the production of lithium cells and battery packs with capacities of up to 16 GWh and 5GWh, respectively, for both the Indian and foreign markets. The project is anticipated to significantly contribute to the socioeconomic growth of the area once it is operational, providing 4,500 direct jobs and a comparable number of indirect jobs in the state.

"The battery technology is as essential for India’s economy as steel and chemical, and It is heartening to see Amara Raja taking a lead in this space. The Union government is committed to the all-round growth of the sector and Divitipally region and will contribute further through modernisation of railway station and establishing allied infrastructure. The Centre has committed over INR 50 billion for State’s railway development,” said the Union Minister.

"Telangana is committed to be the Industrial hub and has been a leader in adopting sustainability. The state government is committed to extending support to manufacturing initiatives such as these, and we look forward to Giga Factory’s inauguration,” said the State Minister.

Galla said, "The Foundation Stone laying ceremony is a big step forward for our Company and the Group. We are grateful to the Government of India under the leadership of Prime Minister Narendra Modi and to the Hon’ble Minister Ashwini Vaishnaw for being proactive and pro-industry. We are also thankful to the Telangana Government under the leadership of Chief Minister Revanth Reddy and State Minister D Sridhar Babu for their tremendous support and encouragement in this endeavour. As we step forward, we are looking to be amongst the first companies in India to present an indigenously manufactured Lithium-Ion cell to the nation.”

Mercedes-Benz India has signed a Memorandum of Understanding (MoU) with the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India, to foster innovation, sustainability, societal development and entrepreneurship within India’s startup ecosystem. 
This collaboration is aimed at accelerating the development of product startups, innovators and entrepreneurs, reinforcing Mercedes-Benz India’s commitment to driving positive societal impact through technology and sustainability. 
It also aligns with the Government of India's vision to support the entrepreneurial ecosystem, with a particular focus on overall societal development, road safety and environmental sustainability. Under the MoU, Mercedes-Benz India will work closely with DPIIT to provide startups with crucial infrastructure, mentorship, funding access and market linkages. 
Commenting on the collaboration with Mercedes-Benz, Shri Sanjiv, Joint Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, stated "We are excited to have Mercedes India on-board our drive under the Startup India initiative encouraging corporates to collaborate with startups. This MoU paves the way for groundbreaking collaboration where Mercedes’s global expertise, legacy of innovation and high-tech resources will empower our startups to drive technological advancements, sustainability, and mobility solutions for the future. We look forward to seeing our startups leverage this collaboration to develop world-class solutions that redefine industries and create lasting impact." 

Increased demand and strategic shifts by global corporations are acting as growth factors for the sector. The home-grown automobile sector is also relying on this new-age trade practice as it allows companies to reduce capital expenditure on infrastructure, equipment and labour. 

Different industries within India have found a fondness towards contract manufacturing owing to several factors. The sector is experiencing significant growth driven by increased demand and strategic shifts by global corporations.

Policies like ‘Make in India’ act as a catalyst for the growth by offering incentives to boost domestic manufacturing. The Central Government has also introduced measures to attract foreign investment in electric vehicle (EV) manufacturing, aiming to establish India as a hub for EV production.

The home-grown automotive sector is also seen relying more on this new-age trade practice. From commercial to passenger vehicles, contract manufacturing allows automakers to reduce capital expenditure on infrastructure, equipment and labour. Instead of investing heavily in setting up factories, companies can focus on product development, marketing and other areas while leveraging third-party manufacturers.

Speaking to Motoring Trends, Layam Group Chairman G S Ramesh said, “The automobile industry encompasses plenty of activities including assemblies, subassembly etc. Currently, there is a shortage of labour within the industry. Contract manufacturing is picking pace as it helps companies to offload certain responsibilities without compromising on quality standards.”

“Companies involved in contract manufacturing take full responsibility of the products and are extremely cautious about quality and skill aspects. They produce the products in tandem with set quality standards and get paid in return,” he added.

Companies involved in this model also cut back on employee costs as contractors hire their own workforce and are responsible for their career progression.

Layam Group is involved in automobile, smartphone and other sectors for contract manufacturing. It reported an INR 3-4 billion turnover with 70 percent revenue coming from the automobile and engineering sectors.

Commenting on the same, Ramesh explained, “We have been involved in the space for the past few years. We have undertaken two kinds of models. One is contract manufacturing, and the other is job contract model. In the job contract model, we assume the role of a third-party quality inspector of the contract issuer’s product line.”

Alluding to vehicle segments the company manufactures under contracts, he noted, “We are involved in the commercial vehicle segment, where we produce the body frame for Tata Motors’ buses. We produce electric buses too and are also involved in logistics, shell making, final panelling etc. The manufacturing unit is in Dharwad and Lucknow.”

Commenting on market opportunities, the executive noted, “India’s contract manufacturing sector presents a compelling growth story, driven by rising demand for trusted partners among OEMs and smaller manufacturers alike. The opportunity lies in how effectively firms can position themselves as reliable collaborators. Clients are increasingly open to outsourcing, provided they find dependable service providers, creating a strong business case for contract manufacturers.”

“Small and medium enterprises are also showing interest in contract manufacturing, seeking to integrate themselves into broader supply chains. This trend signals a growing ecosystem where even niche players can secure a foothold,” he added.

However, the key challenge remains a mindset shift. Traditional industry players often resist adopting technology-driven solutions, preferring conventional methods. Yet, once convinced, they integrate seamlessly, underscoring the importance of strategic engagement. The availability of skilled resources is less of a bottleneck, given the emergence of hire-train-deploy models that ensure workforce readiness.

“In an increasingly competitive landscape, transparency and trust emerge as the defining factors for success. Companies that establish credibility and deliver on performance expectations will secure long-term partnerships and growth,” said Ramesh.

JSW MG Motor India has installed a ‘Green Pretreatment’ line in its paint shop at the Halol plant. It has claimed that it is the first Indian OEM to have implemented this technique. 
Achieved through the implementation of ambient temperature phosphate (at 38 degree Celsius), the ‘Green Pretreatment’ line was developed by PPG Asian Paints in its Pretreatment Electrodeposition (PT-ED) line and has resulted in a significant reduction of carbon emissions by approximately 1800 tonnes per annum. This is in comparison to the conventional process, which typically operates at 42 ~ 50 degree Celsius.
The ambient temperature phosphate technology provides several important benefits, such as considerable fuel savings by removing the need for heating and consequently lowering fuel consumption. This cutting-edge method also results in a significant drop in carbon emissions, with an estimated reduction of around 1800 tons each year. Additionally, the technology improves overall process efficiency by simplifying operations and minimizing maintenance requirements.
Commenting on the development, Biju Balendran, Deputy Managing Director, JSW MG Motor India said, “At JSW MG Motor India, sustainability isn't just a corporate mandate; it's embedded in our philosophy and drives our innovation. This new PT-ED line showcases that spirit of innovation, allowing us to enhance our green manufacturing process vision and set a new industry benchmark for sustainable practices. Through strong partnerships like the one with PPG Asian Paints, and our shared vision for a sustainable future, we've significantly reduced carbon emissions since 2022. We're committed to continuing our work towards addressing environmental challenges."
Jitendra Kalra, CEO, PPG Asian Paints, said, “Our Partnership with MG underscores our commitment to sustainability and innovation. Through our joint efforts and shared expertise, we are taking a significant step forward in promoting energy conservation, and we are delighted to be a part of the brand's sustainability initiative.”
In 2022, JSW MG Motor India was one of the world’s first automotive brand to adopt ULTRAX Degreaser, a liquid alkaline degreasing cleaner developed by PPG Asian Paints. This, along with the implementation of High Throw Low Cure Cathodic Electro Coating Paint, has already contributed to substantial CO2 reduction of 787 tonnes per annum. Additionally, the company conserved energy and fuel through Low-Temperature Phosphate (VERSABOND) and High Throw Low Cure Cathodic Electro Coating Paint, leading to a CO2 reduction of 325 tonnes per annum and approximately 388 tonnes per annum, respectively. With all the above initiatives, overall, 47 percent reduction in carbon emissions has been achieved.