From Beijing’s new export controls on battery materials to Ola’s rare-earth-free motor milestone, and Mahindra’s strategic clarity–here’s how the week shaped the future of India’s auto industry.
12 Oct 2025 | 5463 Views | By Darshan Nakhwa
The week of October 6-12, 2025, brought pivotal shifts to the automotive sector, blending global supply chain challenges with local innovation and growth ambitions. China announced new export controls on high-end lithium battery materials, effective November 8, tightening its grip on a critical EV supply link and raising stakes for ...
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The week of October 6-12, 2025, brought pivotal shifts to the automotive sector, blending global supply chain challenges with local innovation and growth ambitions. China announced new export controls on high-end lithium battery materials, effective November 8, tightening its grip on a critical EV supply link and raising stakes for global automakers.
Closer home, Ola Electric achieved a breakthrough with government certification for its rare-earth-free ferrite motor, a first for an Indian electric two-wheeler maker. Mahindra & Mahindra, while denying reports of a demerger, set its sights on the UK market, banking on the India-UK FTA to boost its global push. Maruti Suzuki expects GST 2.0 to unleash a new wave of first-time car buyers, while Honda Cars India sharpened its focus on hybrids and confirmed plans for an electric SUV by FY27.
Amid these developments, sales surged on festive momentum and tax cuts, safety norms moved closer to a major upgrade with Bharat NCAP 2.0, and fresh investments and leadership changes signalled renewed confidence in the sector’s future.
Here’s the detailed round-up of all major developments from this week:
China to Control Export of High-End Lithium Battery Materials from Nov 8
China has imposed new export controls on specific lithium battery components and related manufacturing technologies effective November 8, according to multiple media reports. The export controls target critical parts of the lithium-ion battery supply chain, including high-performance lithium batteries, and cathode and graphite anode materials.
The rules, jointly issued by the Ministry of Commerce (MOFCOM) and the General Administration of Customs (GACC), are reportedly intended to safeguard China's national security and interests and meet international non-proliferation obligations. Exporters must now apply for a permit from MOFCOM for these restricted items.
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Mahindra Dismisses Reports of Auto-Tractor Business Demerger
Amid reports that the Mahindra group may separate its tractor, passenger vehicle (including EVs), and truck operations into independent entities, the company on Thursday issued a clarification saying it has no plans to demerge auto and tractor businesses.
On Thursday, a media report stated that Mahindra Group is weighing a major restructuring where it may spin off tractors, PVs & trucks into separate entities.
"In view of the above speculation, the Company on its own considers it necessary to clarify to the Stock Exchanges that there is no plan for a demerger of the Auto and Tractor businesses," Mahindra & Mahindra said in an exchange filing.
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Ola Electric Receives Government Certification for Ferrite Motor
Ola Electric has received government certification for its in-house developed ferrite motor, becoming the first two-wheeler electric vehicle manufacturer in India to achieve this milestone for a motor that does not use rare-earth elements.
The certification was granted by the Global Automotive Research Centre in Tamil Nadu following performance verification and mandatory motor power tests conducted according to AIS 041 standards, which are notified by the Ministry of Road Transport, Government of India.
According to the company, the ferrite motor delivers performance comparable to motors using rare-earth permanent magnets. Test results showed that the ferrite motor matched the net power output of rare-earth permanent magnet motors in both 7kW and 11kW variants.
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Tenneco Clean Air India Gets SEBI Approval for ₹3,000 Crore IPO
Tenneco Clean Air India Ltd has received observations from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering, marking a significant step toward listing on Indian stock exchanges.
The IPO comprises an offer-for-sale of up to ₹3,000 crore by Tenneco Mauritius Holdings, the promoter selling shareholder. Each equity share carries a face value of ₹10. The company's promoters include Tenneco Mauritius Holdings Ltd, Tenneco (Mauritius) Ltd, Federal-Mogul Investments B.V., Federal-Mogul Pty LTD, and Tenneco LLC.
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Exports Cushion Honda Cars India’s Weak Domestic Show; FY25 Profit Dips 9%
Led by record exports and cost-control measures, Honda Cars India Ltd (HCIL) posted a net profit of ₹604 crore in FY25, down 9 percent from ₹661 crore in FY24, offsetting a sharp slide in domestic volumes.
As per the financials sourced from business intelligence platform Tofler, total revenue rose 4.6 percent to ₹17,219 crore, while higher operating expenses and an unfavourable product mix weighed on margins.
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VE Commercial Vehicles to Invest ₹544 Cr in New AMT Plant in Madhya Pradesh
VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, has announced a ₹544 crore investment to establish a new manufacturing facility for automated manual transmissions in Madhya Pradesh. The greenfield factory will be located at Vikram Udyogpuri Integrated Industrial Township near Ujjain.
The facility will manufacture Volvo Group's 12-speed Automated Manual Transmission (AMT), which is designed to reduce driver fatigue and improve fuel economy and productivity in commercial vehicle operations.
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Corporate Insights
GST 2.0 to Bring First-Time Buyers Back to the Market, Says Maruti’s Partho Banerjee
In this conversation, Partho Banerjee, Sr. Executive Officer – Marketing & Sales at Maruti Suzuki India, shares how GST 2.0 is reshaping India’s passenger car market. From 8.5% price reductions on mass-market models to 3.5% cuts on larger cars, Banerjee explains how these reforms are widening affordability, driving new enquiries and bringing first-time buyers into the fold.
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Mahindra Gears Up for UK Entry, Eyes Boost from India-UK FTA: Nalinikanth Gollagunta
In this conversation, Nalinikanth Gollagunta, CEO of Mahindra & Mahindra’s Automotive Division, shares his insights on India’s fast-changing automotive landscape. From the impact of GST 2.0 on customers and dealers to the company’s plans for EVs and international expansion, Gollagunta breaks down how Mahindra is positioning itself for sustained growth.
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🔗 EVs Will Be Key to CAFE-3 Compliance and Future Growth: Mahindra
Honda Gears Up for FY27 Electric SUV, Leverages Hybrid Strength to Meet CAFE Norms
In this in-depth conversation, Kunal Behl, Vice President – Marketing & Sales at Honda Cars India Ltd, speaks with Hormazd Sorabjee, about the shifts shaping India’s passenger vehicle market and Honda’s upcoming launches. Behl explains how sub-4m hatchbacks and sedans are shrinking, why SUVs above 4m are gaining traction, and how macro factors such as GST, GDP growth, low inflation and bank rate cuts could lift demand in the months ahead.
Sub-4-metre hatchbacks and sedans have seen a -4% CAGR over the past five years even as larger SUVs above 4 metres continue to rise. The overall industry outlook remains moderate at 3-4% growth. Honda’s Amaze continues to perform strongly, with 60% of sales coming from its top variant and 55% from CVT versions, while new entry-level models are under consideration.
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Mahindra Last Mile Mobility Targets 50% Segment Penetration Within Five Years: Suman Mishra
Suman Mishra, MD & CEO of Mahindra Last Mile Mobility, shares how the company is driving the electrification of India’s last-mile transport segment. Mishra explains why smaller markets are outpacing metros in adoption and how Mahindra plans to make EVs more accessible to all.
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'AI Thrives When Organisations Break Down Silos': PTC's Rajkiran C
American technology provider PTC is excited to facilitate the Software-Defined Vehicle (SDV) trend that is currently defining the automotive industry globally.
The company, which is a leading provider of CAD, CAE, Product Lifecycle Management (PLM), and Application Lifecycle Management (ALM) tools, among other business-critical solutions, says it is geared to cater to the sector's diverse requirements for engineering future products with definitive agility.
In this conversation, Rajkiran C, Senior Director - Enterprise Business, India, PTC, outlines the roadmap automotive companies can adopt to realise the full potential of modern digital tools like AI and cloud. "AI thrives when organisation break down silos," says Rajkiran in this video.
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‘New Industries Adopting Virtual Twin Model’ - Dassault Systemes
The automotive sector, long viewed as a crucible for engineering efficiency and cost management, has long been at the forefront of evolving technologies aimed at reducing costs and product development time, such as the ‘Virtual Twin’. Other industries, such as energy, infrastructure, and construction, are now borrowing such technologies and concepts, to manage complexity and reduce timelines, most notably, the energy and infrastructure sectors.
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Long Reads
Is India's Auto Inc Ready for SDVs?
It’s hard to imagine that just a few years ago, the hum of a car engine was purely mechanical, a symphony of pistons, gears and fuel. Today, that sound is being rewritten in code. The modern car is no longer just a machine but a smartphone on wheels that learns, updates and adapts. From over-the-air updates to AI-driven diagnostics, in this age of the Software-Defined Vehicle (SDV), cars are shedding their analog past and embracing a digital, data-driven future. But as India steps into this new era, a question is: Is the industry ready?
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JSW MG Bets Big on Premium EVs with MG Select
For all the buzz around MG Select, the idea raises as many questions as it promises. Can a relatively young brand convince India’s affluent, badgeconscious buyers to shift from German marques? Can a roadster and a limousine—two body styles with limited traction in
India—anchor a new premium strategy? And can a company still chasing breakeven deliver the ownership experience that premium buyers expect? These are the doubts shadowing JSW MG Motor’s latest venture.
Yet ambition is undeniable, and the early start has been encouraging. In its first month, MG sold about 250 Cybersters in India
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Opinions
Can a National Battery-Swapping Consortium Unlock 4W EV Adoption in India?
Picture a future where EV drivers enjoy the same ease as refueling a petrol car—regardless of the vehicle’s brand. A Maruti, a Mahindra, and a Tata Ace EV pull into the same swap station, exchange depleted batteries for fully charged ones, and drive off in minutes. No queues. No compatibility issues. No downtime.
This isn’t a distant dream—it’s a tangible possibility. But unlocking it will take more than innovation. It calls for collective action—a unified push by OEMs, battery-swapping players, and infrastructure developers, with the government acting as the central convener to bind it all together.
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The Service Advantage: How Leading Luxury Brands Create Lasting Customer Loyalty
The luxury automotive sector faces an uncomfortable truth: traditional competitive advantages are evaporating. When 84% of luxury buyers consider personalisation essential and 80% demand seamless omnichannel experiences, the industry's response will determine which brands thrive and which merely survive over the next decade.
With luxury vehicles increasingly converging in quality and performance, customer service has emerged as the decisive battleground. Yet most brands remain trapped in transactional thinking at a time when experiential differentiation matters most.
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Sales Trends
PV, 2W, LCV Sales Grow Over 20% from Navratri After GST Cut
Underlining the strong demand momentum with the Goods and Services Tax (GST) rate cut and peak festival season, registrations of passenger vehicles, two-wheelers, and light commercial vehicles (LCV) recorded over 20% growth during the first 17 days from Navratri.
According to data from VAHAN, two-wheeler registrations increased by 21% between September 22 and October 8, reaching 13.29 lakh units, compared to the same 17 days in the year-ago period. The passenger vehicle segment recorded the highest growth of 23% to 3.05 lakh units, while LCVs saw a 21% increase to 37,779 units.
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🔗 GST 2.0 Sparks Festive Momentum, Revs Up Auto Retail Sales in September
🔗 Nexon, Punch among the top five best selling cars in India in September 2025
Domestic Tractor Sales Surge 45% in September on GST Cuts, Festive Demand
India’s tractor industry posted a strong double-digit growth in September 2025, with total sales rising 43% year-on-year to 154,417 units, supported by festive-season buying and the recent Goods and Services Tax (GST) rate reduction on tractors and farm machinery.
According to data from the Tractor and Mechanization Association (TMA), domestic sales surged 45% to 146,180 units compared to 100,542 units in September 2024. Export volumes also rose 10% to 8,237 units from 7,488 units last year.
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BMW Group India Races Ahead With 246% EV Growth; Targets 30% Penetration by 2027
BMW Group India has seen a sharp rise in electric vehicle demand this year, delivering 2,509 electric BMWs and MINIs between January and September, a 246% year-on-year increase. Electric models now account for 21% of the company’s total sales, marking a significant shift in its portfolio. The BMW iX1 led the line-up, followed by the flagship i7.
“Till now we have sold about 5,000 EVs out of which 2,500 are only in this year. Probably we are one of the highest in terms of BEV’s contribution to overall sales in the four-wheeler industry. And I think we probably would be the only one who would hit a 30% mark by 2027, which the government of India was targeting by 2030,” Hardeep Singh Brar, President and CEO, BMW Group India told Autocar Professional.
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🔗 BMW Group India Expects to End 2025 With Strong Double-digit Sales Growth
Leadership Moves
Castrol India MD Kedar Lele Resigns, Saugata Basuray to Take Over as Interim CEO
Castrol India Ltd announced significant changes to its senior leadership this week, with Managing Director Kedar Lele set to step down at the end of December to pursue other opportunities outside the company.
The Board of Directors disclosed that Lele will cease his role as Managing Director at the close of business on December 31, 2025. However, to ensure continuity, the board has appointed Saugata Basuray as Interim Chief Executive Officer, effective January 1, 2026. Basuray will serve in this capacity until a new Managing Director is appointed by the company.
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Revolt Motors Appoints Roy Kurian as President to Drive Growth
Revolt Motors has appointed Roy Kurian as President, marking a strategic leadership move as India's leading electric motorcycle brand prepares for its next phase of expansion.
Kurian brings over three decades of automotive and electric mobility experience to the role. His career spans senior positions at Montra Electric, Greaves Electric Mobility (Ampere), Baxy Mobility, and Tork Motors, where he contributed to EV product development, network expansion, and brand building initiatives.
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