As the auto industry barrels through mid-2025, this past week spotlighted both growing pains and fresh possibilities. A looming EV production halt, game-changing import duty reductions under the India–UK FTA, and global strategy pivots from OEMs like VW, Honda, and Renault made headlines. Here's a wrap-up of the top stories from July 21–27 that signal how India’s auto industry is being reshaped at the intersection of trade, technology, and transformation.
India-UK FTA Slashes ICE Car Duties, Excludes Mass-Market EVs
The landmark India–UK FTA will reduce customs duty on ICE passenger vehicles made in the UK to 10% in five years, down from a steep 66–110% today. However, battery and hybrid vehicles under £40,000 have been excluded to protect local manufacturers.
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Commercial Vehicle Duties to Drop to 8.8% Under India–UK Deal
The same FTA will gradually reduce customs duties on ICE goods vehicles from the UK to as low as 8.8% over five years, under a defined import quota system.
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Bajaj Auto Faces EV Shutdown Amid Rare Earth Shortage
Rajiv Bajaj warned that August could be a “zero production month” due to China’s export curbs on heavy rare earth magnets used in EVs. The supply crisis could dent not just Bajaj’s market leadership, but also broader industry momentum.
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Sona Comstar Holds AGM As Per Schedule, Says Rani Kapur not a shareholder
Sona Comstar is currently embroiled in a brewing family feud following the death of its Chairman Sunjay Kapur in June. Tensions escalated sharply this past Friday as Rani Kapur, Sunjay's mother, publicly objected to the company's scheduled AGM.
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EV Two-Wheeler Sales Slow in July as Rare Earth Curbs Bite
With China’s restrictions on magnet exports taking effect, two-wheeler EV sales have slowed across India, with inventories tightening and delivery times rising.
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Volkswagen Slashes 2025 Outlook Amid EV Margin Pressure
Citing high tariffs, restructuring costs, and weaker margins from EVs, Volkswagen revised its 2025 financial forecast downward, abandoning its earlier growth targets.
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Renault India Bets Big on Localisation With New Triber
With 95% localisation, Renault’s new Triber signals its strategic pivot to cost competitiveness and Indian engineering as it eyes a bigger share in the subcompact market.
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TVS Motor Set to Launch 4 Norton Models Globally by Year-End
TVS-owned Norton will roll out four new premium motorcycles between October and December in the UK, India, and Europe, led by a 1200cc four-cylinder superbike.
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After Tesla, VinFast Opens First Indian Showroom in India
Days after Tesla made its debut in India with its first showroom opening in Mumbai, Vietnamese EV manufacturer VinFast opened its first showroom in India, located in Surat, Gujarat.
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Honda 2W Targets 7M Units by 2027, Adds New 100–125cc Bikes
Celebrating 25 years in India, HMSI is scaling up capacity and portfolio to touch 7 million units annually, with localisation and exports at the heart of its roadmap.
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MAHLE Pushes Hybrids and Range Extenders in India
Citing uneven EV uptake globally, MAHLE is advocating for a diversified electrification path for India—including range extenders and hybrids, not just BEVs.
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L&T Technology Sees Mobility Slowdown Amid Global Headwinds
Despite strong overall performance, L&T Technology Services reported delays and softness in its auto segment due to cautious OEM investment cycles.
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L&T Energy GreenTech to Build India’s Largest Green Hydrogen Plant
A 10,000-tonne green hydrogen facility will be built at IOCL’s Panipat Refinery under a 25-year supply contract—marking a milestone in clean fuel infrastructure.
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ACE Aims to Double Revenues by FY30 with Diverse Portfolio
Action Construction Equipment Ltd. is targeting βΉ6,000–6,300 crore revenue by FY30, leveraging its bets on infra, agri, defence, and exports.
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Ola Electric Tweaks IPO Fund Use Amid Gigafactory Delay
With gigafactory timelines pushed back, Ola Electric’s board has approved changes to its IPO fund utilisation strategy to reflect slower EV demand growth.
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Digital Design Accelerates India’s Vehicle Development Cycles
Thanks to tools like Modelling and Simulation (ModSim), Indian OEMs are slashing development times from years to months—bringing faster innovation to market.
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Hyundai Creta Crosses 1.2 Million Milestone, Still Dominates SUV Market
A decade after launch, the Hyundai Creta remains India’s top-selling mid-size SUV, proving its enduring appeal and versatility.
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The Future of Mobility: India’s Trilemma of Clean Air, Energy Security, and Growth
A new analysis urges holistic thinking as India juggles sustainability, oil import bills, and rural access—calling for a balanced mobility roadmap.
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