India’s auto sector sees key moves this week: rare earth incentives, EV milestones, used car growth, Tata’s roadmap, and Tesla’s showroom debut mark industry shifts
13 Jul 2025 | 2188 Views | By Autocar Professional Bureau
India’s auto industry witnessed a flurry of significant developments this past week — from concerns around rare earth supply and a new government incentive, to Tata Motors’ ambitious product overhaul, Mercedes-Benz’s market outlook, surging EV sales, and the much-anticipated opening of Tesla’s first showroom in the country. Here’s a quick ...
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India’s auto industry witnessed a flurry of significant developments this past week — from concerns around rare earth supply and a new government incentive, to Tata Motors’ ambitious product overhaul, Mercedes-Benz’s market outlook, surging EV sales, and the much-anticipated opening of Tesla’s first showroom in the country. Here’s a quick roundup of everything you need to know.
India Planning ₹1,345 Crore Incentive Scheme for Rare Earth Magnet Production
Govt plans domestic push amid China supply disruption
The government is developing an incentive scheme to support rare earth magnet production, vital for EV and electronics industries, as export restrictions from China continue to strain supply.
🔗 More details here
Mahindra, Uno Minda Eye Local Magnet Production Amid China Disruptions
Indian auto giants step up rare earth localisation efforts
Mahindra and Uno Minda are exploring domestic magnet manufacturing to reduce reliance on Chinese imports following recent export restrictions.
🔗 Full report
Australia Says Willing to Be Long-Term Rare Earth Supplier to India
"We have minerals, you have manufacturing," says Australian High Commissioner
Australia reaffirmed its commitment to being a stable, long-term supplier of rare earth minerals, calling it a strategic opportunity to strengthen bilateral EV and green tech cooperation.
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Exclusive: Tata Motors Plots Comeback with New Nexon, Sierra, Avinya Brand and Compact Lifestyle SUV in ₹35,000 Cr Overhaul
Tata to launch 30 new models, target 18–20% market share by FY30
Tata Motors has unveiled a bold ₹35,000 crore plan to bridge critical product gaps and reclaim lost momentum in key segments. The company plans 30 new models—including seven all-new nameplates—and aims to achieve an 18–20% market share by FY30.
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India's EV Moment: Hype Ahead of the Curve?
EVs gain momentum, but consumer hesitation and infrastructure gaps remain
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Auto Giants Explore Hybrid Strategy as EVs Hit Speed Bumps
Carmakers bet on hybrids to bridge the EV transition gap
Most OEMs—except Tata and Stellantis—are actively investing in hybrid technology to balance consumer hesitation toward EVs and lack of supporting infrastructure.
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Tesla to Inaugurate First India Showroom on July 15
Mumbai to host flagship store ahead of vehicle launch
Tesla will open its first India Experience Centre at BKC, Mumbai. While sales may still be months away, the launch sets the stage for the EV giant’s formal entry into the market.
🔗 More on Tesla India
VinFast to Launch 32 Dealerships Across 27 Indian Cities by Year-End
Vietnamese EV maker VinFast has partnered with 13 dealer groups to set up 32 outlets across 27 Indian cities, aiming for 35 by the end of 2025 — marking a major step in its India expansion strategy.
Centre Issues Guidelines for Electric Truck Subsidies under PM E-Drive
Rs 500 crore earmarked to support 5,643 e-trucks in FY26
The Union government has issued guidelines under the PM E-Drive scheme, offering incentives up to ₹5,000/kWh for e-trucks, with a cap of 10% of ex-factory price.
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EV Sales in India Race Past a Million Units in H1 CY2025
17% YoY growth puts India’s EV market in top gear
India crossed 1 million EV sales in the first half of 2025, marking a significant milestone with 1.04 million units sold across all segments—a first for any H1 period.
🔗 Explore the numbers
India’s Used Car Market Set to Expand 8–10% This Year
Used cars now grow faster than new car sales
Crisil expects the used car market to grow 8–10% in FY26, double the rate of new car sales. Rising prices of new vehicles and better financing have fueled demand.
🔗 Full analysis
Mercedes-Benz India Sees Flat-to-Single-Digit Growth in 2025: MD Iyer
High base, price hikes, and global uncertainty weigh on outlook
Mercedes-Benz expects muted growth for the second half of 2025 due to pricing pressures and macroeconomic challenges. Still, festive demand and potential trade deals could offer support.
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India’s Auto Retail Sales Up 4.84% in June 2025, Driven by Broad-Based Growth
India’s auto retail sales rose 4.84% YoY in June 2025 to 20.04 lakh units, according to FADA. Growth was led by construction equipment (+55%), followed by tractors, CVs, two-wheelers, and passenger vehicles, despite a slight month-on-month decline.
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Tata Motors Ties Up with Desay SV to Develop Software-Defined Vehicles
Tata Motors has partnered with Chinese electronics major Desay SV Automotive to co-develop core architecture and software for its future software-defined vehicles (SDVs), marking a key step in its tech-led mobility strategy.
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Ola Electric vs Ather Energy: When Strategies Collide
Year 2025 is proving to be a vindication of Ather Energy's 'Build to Last' strategy, even as competitor Ola Electric's fast-scaling approach seems to be falling apart. The first six months of 2025 paint a stark picture of Ola Electric's precipitous fall from grace, with the company emerging as the biggest loser among all two-wheeler manufacturers, both in absolute and market-share terms.
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