Announcing that Prime Minister Modi’s message was motivating for the Indian auto industry to work together towards new age technology, world class manufacturing, and next generation infrastructure, Kenichi Ayukawa, President, SIAM and MD & CEO, Maruti Suzuki, in his address during the opening session, said that there was a need to achieve sustainable and productive growth with quality and safety, and protect our environment, resources and raw materials. Stressing on the need for focused efforts, Ayukawa mentioned that SIAM and ACMA have together worked out a localisation roadmap with a target of about 15 to 20 percent further localisation in the next 2 to 5 years. Revealing that SIAM has prepared an approach paper for long term regulation roadmap that takes care of all aspects and gives clarity on future investments, Ayukawa San said that the auto industry is working on new powertrain technologies. He appreciated the government’s announcement of the scrappage policy and PLI scheme. 

Amitabh Kant.

Recognising the contribution of the Indian automobile industry to the Indian economy, Dr Mahendra Nath Pandey, Union Minister of Heavy Industries, Government of India, said that his ministry is working consistently for the growth of the automotive sector. Acknowledging the rise in localisation supported by the PLI initiatives of government, Dr Pandey said that these efforts would make the industry more robust. He stressed on the need to develop EV charging infrastructure as well as manufacture quality products that would help the Indian automobile industry to be regarded as the best in the world. T V Narendran, President, CII and MD, Tata Steel Ltd, in his address, mentioned the need for the right policy support to make India a five-trillion-dollar economy by 2025-26. It is important that the Indian manufacturing sector is strong. He called on the auto industry to focus on six key areas – electric vehicles, circularity, urbanisation, resilient supply chain and an ability to reap in functionality and embed sustainability, going forward. 
 

R C Bhargava.

In his speech, Amitabh Kant, CEO, NITI Aayog, said that the future direction of the auto industry is in the area of shared, connected and electric mobility. He opined that there are four prominent growth drivers that the industry should focus on. These include the expansion of investment in R&D, more focus on innovation in small format mobility segment, establishment of massive charging infrastructure across the country and provision of export impetus to the industry. Kant said that EV should be an integral part in every OEM’s plans. Road Transport Minister Nitin Gadkari spoke about the government’s aim to increase the contribution of the automotive sector towards the nation’s GDP. Currently, the sector contributes roughly 7.1 percent towards the GDP, he said. Revealing that the government would like to see the contribution rise to 12 percent, the union minister stated that it would amount to a huge step towards making India a five-trillion-dollar economy. Expressing gratitude to the dignitaries for their presence, Vipin Sondhi, Vice President, SIAM and MD, Ashok Leyland Ltd, drew attention towards the effect of Covid-19 on sales. 
 

Appreciating the efforts of the Ministry of Heavy Industries to create world-class testing and R&D infrastructure in all the auto hubs of the country, he spoke about how the auto industry will take advantage of localisation, PLI scheme and EV charging infrastructure. These efforts, he added, will contribute to the government’s initiative of ‘Make in India’. In a session focusing on the outlook of the Indian auto industry and its role in the economic growth, Venu Srinivasan, Chairman and Managing Director, TVS Motor Company, and R C Bhargava, Chairman, Maruti Suzuki India Ltd., drew attention to the new policies introduced over the past few years. The duo stressed on the high taxation structure on automobiles and the mandatory insurance costs. These, they said, have hugely bumped up the pricing to make vehicles expensive. Srinivasan touched on two-wheelers being taxed at 28 percent despite being the most basic means of transport. This, he added, is almost equal to cars which are a luxury item. Opining that the prices of vehicles have risen over the past few years with the switch to BS IV and subsequently to BS VI, and the change in safety norms, R C Bhargava mentioned that mounting challenges have had an effect on the sales. 
 

Venu Srinivasan.

Revenue Secretary Tarun Bajaj said that the government is open to discussing a change in Goods and Services Tax (GST) rates on automobiles. Seeking to know from the auto industry whether it is the GST rate on cars that is preventing the sector from growing, Bajaj questioned the reason behind SUV sales going up and not that of the cars in economic terms. Stating that the tax rates were higher in some states before GST came into force, he suggested the auto industry to examine in detail the reasons behind the dip in sales. Covid-19 and other factors could be at play, he reasoned. Bajaj called on the industry to keep pace with the changing technology.

Kenichi Ayukawa.

Japanese auto major Honda Motor Co, has partnered the United Nations Road Safety Fund (UNRSF) to contribute to global initiatives to reduce fatalities from traffic collisions, including a previously announced commitment of USD 3 million over 5 years. The partnership will see Honda combine its know-how and knowledge to promote safe driving/riding practices with the UNRSF. They will support traffic collision analysis and the road safety policies of various countries.

The ultimate goal is to achieve a collision-free society for all road users. Honda stated that it has been pursuing safety initiatives from both hardware and software perspective under its ‘Safety for Everyone’. It aims to achieve zero traffic collision fatalities involving Honda motorcycles and automobiles worldwide by 2050, with a milestone to reduce fatalities by 50 percent by 2030.

Under the new partnership, Honda and UNRSF will focus on two key areas – traffic collision analysis and support for road safety policies. A key focus would be to reduce road fatalities involving two-wheelers especially in emerging countries, which account for a significant portion of worldwide traffic collision fatalities, Honda and UNRSF have made emerging nations, particularly in Asia, as a focus area.

Hideaki Takaishi, General Manager of Safety Planning Division, Corporate Planning Unit, Honda Motor Co, said, “Honda has set a clear safety goal to strive for zero traffic collision fatalities involving Honda motorcycles and automobiles worldwide by 2050. Toward this goal, Honda is continuing its initiatives to enhance safety and reduce traffic collision fatalities worldwide. For many years, Honda has been committed to safety initiatives not only from the hardware perspective such as the development of safety technologies, but also from software perspectives including the promotion of traffic safety awareness among everyone sharing the road. Through our partnership with the UNRSF, we will integrate the knowledge, know-how and network of both parties and strengthen outreach and engagement with various countries with an aim to achieve the milestone of halving worldwide traffic collision fatalities by 2030.”

Nneka Henry, Head of the UN Road Safety Fund, added, “We welcome Honda as the first vehicle manufacturer to join the UNRSF and its governing body. Their contribution through sharing the knowledge and know-how of a mobility company is one of the largest we have received and will help us direct vital resources to high-impact projects that save lives in developing countries. Honda’s leadership sets an important example for the private sector’s role in tackling the global road safety crisis.”

The automotive industry which employs over 19 million people in India and contributes 7.1 percent to the country’s Gross Domestic Product (GDP) can further improve productivity through new-age technologies.

As per the latest EY India report titled ‘How much productivity can Generative AI (GenAI) unlock in India? The AIdea of India: 2025,’ the Indian automotive sector see its productivity improve between 30 percent to 32 percent by 2030 through GenAI.

The report highlights that the automotive sector can leverage GenAI's potential right from product development, customer engagement, autonomous driving and also sustainability initiatives.

The industry is already leveraging advanced technologies such as autonomous driving, real-time analytics and AI-driven optimisation. Furthermore, the integration of GenAI will provide additional fillip towards innovation and efficiency across the entire value chain.

The significant gains through GenAI will be in areas such as product development, process optimisation and customer engagement.

The EY India report stated that 33 percent of respondents shared that their organisations are actively investing in GenAI, with budgets either allocated or in the process of being invested. Additionally, 57 percent of respondents have initiated Proof of Concept (POC) initiatives, with 14 percent already moving these POCs into production. Furthermore, AI is showing a substantial impact on customer satisfaction, with its ability to revolutionise customer engagement through personalised and real-time interactions.       

Vinay Raghunath, Partner and Automotive Sector Leader at EY-Parthenon, said, “GenAI offers a tremendous opportunity for innovation across the entire automotive value chain and can help unlock new potential across manufacturing processes, customer interactions and aspects related to vehicle autonomy, safety and personalisation. Integrating real-time data processing with autonomous features can reshape personal and public transportation systems. Incorporating GenAI capabilities can help streamline production processes, leading to increased efficiency, reduced waste, and improved product quality. Predictive models can help enhance vehicle reliability and lower repair frequency and associated costs. The industry can leverage GenAI to reshape the future of mobility but will also need to address challenges related to investment, data security concerns, regulatory compliance and workforce training”

The report estimates that GenAI can help improve productivity between 37 percent to 39 percent with AI-powered solutions set to revolutionise customer interactions, improving customer satisfaction and engagement.

For production and assembly, the improvement can be between 35 percent to 37 percent, while automation and predictive maintenance will see improvement between 34 percent to 36 percent.

While there is a tremendous opportunity to gain through the adoption of GenAI, the challenges include investment expenses, data security concerns, regulatory compliance and workforce training.

Representational Image Courtesy: Cottonbro studio/Pexels

Japanese auto major Honda claims it has become the first company in the automotive industry to receive the highest ranking of ‘3 stars’, as part of the FIA Road Safety Index. The index was introduced by the FIA to enable businesses and organisations to measure their road safety footprint.

The Fédération Internationale de l'Automobile (FIA) is an international organisation focussing on road safety & traffic circulation and its sports division is the governing body for international motorsport championships and disciplines, including Formula One.  

The 3-star recognition was announced on 17 February at the ‘Challenge 2030: Achieving the Global Road Safety Goals’, a concurrent event of the 4th Global Ministerial Conference on Road Safety which was held in Marrakech, Morocco, held from 18 February to 20 February 2025, local time.

The FIA Road Safety (RS) Index tool allows companies to visualise and measure the impact of their operations on road safety and achieve more sustainable road traffic. It enables comprehensive assessment and evaluation of the safety footprint of each organisation based on various factors such as their road safety goals, commitment and the number of road traffic fatalities and injuries across their entire value chain.

The index system contains two ratings: 1. the ‘supply chain rating’ covering a broad range of corporate activities from procuring raw materials, to development and production of products and customer delivery of the products. 2.  the ‘product/service rating,’ which evaluates the safety aspects of products/services.

Honda is said to become the first company in the automotive industry to undergo audits for both ratings and received the highest 3 stars ratings in both.

Willem Groenewald, FIA Secretary General for Automobile Mobility, said, “Safety is at the heart of our mission in both motorsport and for the daily road user. Through the FIA Road Safety Index, we help companies measure and improve their impact on road safety. We are pleased to announce that Honda is the first car and motorcycle manufacturer to achieve the Index's highest rating of 3 stars both for its supply chain and safety-related products and services. Honda has demonstrated a strong commitment to fostering a culture of continuous improvement in road safety.”

Hideaki Takaishi, General Manager of Safety Planning Division, Corporate Planning Unit, Honda Motor Co, added, “Honda is honored to have our long-standing safety initiatives recognised through successful completion of the FIA Road Safety Index. For over 50 years, we have focused not only on developing safe motorcycle and automobile products but also on spreading knowledge of safe driving and riding practices among our customers through our awareness-building activities. The FIA Road Safety Index has proven to be a promising tool to objectively evaluate the sincere safety initiatives of Honda. We are expecting that widespread commitment to safety initiatives among more companies and organisations will lead to reduction of traffic collisions around the world.”

Cars24, one of India’s leading automotive platform, has expanded its financial arm – Cars24 Financial Services – with the launch of Loans24, a digital-first, hassle-free credit platform designed for car buyers and owners among others.

Being a digital-first platform will enable Loans24 customers to get instant approvals, provide upto 100 percent on-road price for purchases or 200 percent top-ups with upto 6 years loan and an affordable loan starting at 10.99 percent interest.

Ruchit Agarwal, Co-Founder & CFO, Cars24, said, "Getting a car should feel exciting, not exhausting. But for too long, car loans have felt like a necessarily difficult process-slow, complicated, and designed to test patience. If personal loans can be instant, why should car loans still feel like a maze of paperwork and waiting? That’s what we’re fixing with Loans24. No hoops to jump through, no hidden surprises, just a loan that works for you, not against you. Because whether you already own a car or dream of one, access to credit should never be the thing that holds you back." 

Since 2019, Cars24 Financial Services has enabled over INR 40 billion in car loans through Cars24. It has also provided around INR 150 billion in working capital loans to dealers.