INDUSTRY STRUCTURE, OVERVIEW AND TRENDS AUTOMOTIVE INDUSTRY In Calendar Year 2024 (CY24), worldwide sales of Passenger Vehicles and Commercial Vehicles increased to 95.3 million, a growth of 2.7% over the CY23 sales of 92.8 million. Global Passenger Vehicles (PV) and Commercial Vehicles (CV) reported a growth of 3.3% and 1.1% respectively. India was ranked 3rd in passenger vehicle segment after China and United States of America. The fastest growing segment worldwide was that of Electric Vehicles (EVs) and has grown at 49% CAGR over the last five years. (Source: Organisation Internationale des Constructeurs d'Automobiles) The long-term growth outlook for the Indian auto industry remains positive, driven by strong economic fundamentals, progressive government initiatives, rapidly improving infrastructure, and a young, aspirational population. While the outlook for the industry remains promising, when compared to FY19 pre-COVID levels, it has achieved 95% recovery in commercial vehicles and 93% in two-wheelers. The three-wheeler segment has surpassed FY19 levels, recording sales of 7.4 lakh units. Passenger vehicles, which had already recovered to pre-COVID levels last year, crossed the 4.3 million mark in FY25. The Indian auto industry today is sharply focused on accelerating the transition to cleaner mobility, and enhancing road safety. Recognizing the evolving global and domestic imperatives around carbon neutrality and technological self-reliance, the industry has made significant strides in the indigenization of key automotive technologies. A notable achievement was the swift transition to BS6 emission norms within just three years, demonstrating world-class executional agility. Building on this momentum, the industry successfully implemented the BS6.2 emission standards from FY23, further aligning with global benchmarks for emissions control and sustainability. The Government of India has introduced a series of initiatives to accelerate green mobility and establish India as a global hub for EV manufacturing. The newly approved E-Vehicle Policy and the PM E-DRIVE Scheme, with an outlay of Rs. 10,900 crores over two years (FY25–FY26), aims to drive the adoption of advanced EV technologies, boost domestic manufacturing under the Make in India initiative, promote healthy competition, and achieve economies of scale. These efforts are expected to reduce crude oil imports, lower the trade deficit, and improve environmental outcomes. Additionally, the Voluntary Vehicle Modernization Program is creating a supportive ecosystem for phasing out older, polluting vehicles and enhancing road and vehicular safety. AUTO INDUSTRY IN FY25 In FY25, the Indian auto industry sales (excluding two-wheelers) have recorded highest ever sales of 6 million units, a 2% growth over the previous peak of FY24. While CVs have shown de-growth of 1.2%, the PVs have reached new heights with 4.30 million sales units, a volume growth of 2.0% over previous year. The total revenue of PVs sold in the industry rose 3.7% during the same period (source: JATO). Over the last ten years, the Utility Vehicle (UV) segment has been key driver of PV growth. UV CAGR from FY15 to FY25 was 17.6% vs PV CAGR of 5.2%. UV, as share of PV, has increased from 21% in FY15 to 65% in FY25. This growth in UV is driven by increased customer preference for command seating, higher ground clearance, superior performance and enhanced range of choices. The Indian Auto Industry has seen new launches in Electric Passenger Vehicle segment. Electric Utility vehicles have seen 36.4% growth and 2.1% penetration. However, EV adoption in India is led by e-3W; the key drivers being improving operating economies, easy deployment for last/first mile connectivity (including at metro stations) and the growth of start-ups as 3W aggregators. For the year FY25, a total of 1,80,141 e-3W were sold with growth of 55.9%, accounting for 24.3% of the 3W industry. Segment (Domestic sales) FY19 FY25 % CAGR Passenger Vehicles 33,77,389 43,01,848 4.11% Commercial Vehicles 10,07,311 9,56,671 -0.86% 3 Wheelers 7,01,005 7,41,420 0.94% 2 Wheelers 2,11,79,847 1,96,07,332 -1.28% Integrated Annual Report 2024-25 | 138
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