Automakers ride GST 2.0 tailwinds as September sales surge; EVs near mass-market tipping point while global suppliers double down on India.
05 Oct 2025 | 4131 Views | By Darshan Nakhwa
India’s auto industry closed September on a high, powered by GST 2.0-led price corrections and a robust rebound in festive demand. Passenger vehicle and two-wheeler sales surged over 20% during Navratri, even as early data showed that the market’s top six carmakers are headed for record annual volumes.
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India’s auto industry closed September on a high, powered by GST 2.0-led price corrections and a robust rebound in festive demand. Passenger vehicle and two-wheeler sales surged over 20% during Navratri, even as early data showed that the market’s top six carmakers are headed for record annual volumes.
Tata Motors led from the front, clocking its best-ever monthly EV dispatches, while JSW MG Motor’s forecast that 70-80% of its future sales will come from new energy vehicles underscored how rapidly electrification is reshaping the landscape.
Meanwhile, global majors continued to deepen their India bets–Forvia and Michelin doubled down on their India investments–and domestic players like Ola Electric and Montra Electric outlined aggressive funding and growth blueprints. Further, Omega Seiki Mobility unveiled the world’s first autonomous electric three-wheeler.
Policy developments added further charge: the government eased localisation norms for e-truck and bus makers under the PM E-Drive scheme, and Minister Pralhad Joshi urged the industry to ensure all EVs run on renewable power.
Here’s the detailed round-up of all major developments this week:
JSW MG Motor Sees 70-80% Sales from New Energy Portfolio as EVs Reach Price Parity
"If you look at a 4.3 meter car like Windsor, a similar petrol automatic you compare it to, you will find that the EV is already cheaper," said Mehrotra in an interview with Autocar Professional, adding that the development can reshape India's automotive landscape.
The comment comes at a time when India's passenger vehicle market has been seeing tepid growth. "At the end of last year all of you reported that EV as a percentage of total industry was 2.5%, first quarter Jan to March it was about 3 odd percent, second quarter about 4 odd percent and last month in August despite the announcement, it crossed the 6% threshold," Mehrotra noted. This represents tremendous progress in a market where, until 2022, EVs struggled to exceed 1% of total passenger vehicle sales.
Michelin Sees India as Key Growth Market; Unveils Made-In-India PV Tyres
The company, which previously relied on imports to serve the passenger vehicle market in India, has invested nearly Rs 686 crore over the last one year in its manufacturing facility in Tamil Nadu and ramped up capacity for PCR tyres, beyond truck and bus tyres.
“India is more and more becoming a key market for us. It is a new chapter for Michelin in India, especially with our passenger car tyre business…,” Vitor Silva, president for Michelin’s Africa, India and Middle East business, told Autocar Professional.
Forvia Eyes Rs 10,000 Crore India Revenue with Rs 2,000 Crore Investment Plan
Forvia is growing at approximately 11% in India, which is roughly twice the market CAGR of 5-6%. This massive projected growth, up from the current product sales of over €400 million, is being fueled by a committed investment of approximately €218 million (approximately Rs 1,964 crore) focused on local manufacturing and advanced technology.
The aggressive strategy reflects a profound reassessment of India’s role within the global supply chain, according to Martin Fischer, Forvia’s Group Chief Executive Officer.
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Montra Electric Eyes Break-Even in FY27, 55% Revenue from E-Trucks
P.V. Satyanarayana, Chief Business Officer, Montra Electric, told Autocar Professional that the company is working on a long-term plan to scale up volumes and revenues, with e-trucks projected to account for 50–55% of the total.
“We are looking at becoming $1 billion by 2030. That’s what is the target which we are chasing right now. And that means almost like 50 to 55% of the revenue has to come from trucks,” he said.
Zelio E-Mobility Plans Three-Wheeler Expansion Under Tanga Brand
Zelio is a fully bootstrapped startup led by promoters Niraj Arya, Deepak Arya, and Kunal Arya. It currently operates a Hisar plant with an annual capacity of 72,000 electric two-wheelers in a single shift. As of 31 March 2025, the facility operated at about 52% capacity. Garg said, “As utilisation increases, we may add shifts to optimise output and meet market demand.”
Omega Seiki Mobility Launches World’s First Autonomous Electric Three-Wheeler
The autonomous EV is priced at ₹4 lakh for the passenger variant, while a cargo version will follow soon at ₹4.15 lakh. Powered by a battery offering up to 120 km range on a single charge, the vehicle integrates OSM’s electric platform with an AI-driven autonomy stack.
Every Electric Vehicle Should Run on Renewable Energy: Pralhad Joshi
"The vision is simple, every electrical vehicle in India should run on clean energy means. All the charging-recharging should happen by renewable energy," Joshi said, speaking at the fleet launch of Refex Mobility in Delhi.
“Today, out of India’s total installed power capacity of 495 gigawatt, about 50% or 253 gigawatt comes from renewable energy,” he said.
Tata Power and VE Commercial Vehicles Partner to Boost Electric CV Adoption in India
The partnership, formalized through a memorandum of understanding, will initially focus on VECV's recently launched Eicher Pro X range of small commercial vehicles, with plans to expand to other models in Eicher's electric vehicle portfolio.
Govt Eases PMP Guidelines Under PM E-Drive for e-Trucks, Buses to Import Motors
Under the Rs 10,900-crore PM E-Drive scheme, the government provides incentives to electric two-wheelers, three-wheelers, trucks and buses. Subsidies are subject to compliance with PMP, which ensures domestic value addition.
The Ministry of Heavy Industries has issued a notification that amends the Phased Manufacturing Programme (PMP) guidelines for electric trucks under the N2 category (3.5–12 tonnes) and electric buses in this regard.
Ola Electric Arm to Invest Rs 877.64 Crore in Another Group Entity
The investment will be made through subscription to 87.76 crore non-cumulative and non-participating 0.001% Series A Optionally Convertible Redeemable Preference Shares, each with a face value of Rs 10. The shares will be issued by Ola Electric Technologies on a preferential basis in one or more tranches.
Demand for Cybersecurity, Functional Safety Certification on the Rise, says TÜV SÜD CEO Ishan Palit
The company, which is headquartered in Munich, Germany, says adherence to standards like the ISO 27001 (cybersecurity), and ISO 26262 (functional safety) is becoming extremely critical, as both products and processes increasingly transition towards being more connected and digitised, and therefore, susceptible to unwarranted hacks and cyber attacks.
A Look at Major Car Launches Planned in October
To keep the momentum going, brands across the spectrum — from mainstream mass-market players to niche premium marques — are lining up a flurry of launches and unveilings through October.
Some are crucial bread-and-butter models aimed at strengthening volumes, while others are headline-grabbing performance flagships designed to add glamour to the showroom floor.
Long Reads
The Long Road to Luxury
The on-road price nudged Rs 70 lakh once taxes and registration were factored in. Plus, the annual service packages looked steep, and he discovered that a three-to-five-year-old BMW could lose more than half its value. Three months later, Sahil drove home a Toyota Fortuner bought at a price tag of around Rs 50 lakh.
“It has all the features I wanted, plenty of space and great mileage. Why spend a fortune when you can get it all for less?,” he says. Chhabra’s story is the quiet reality behind India’s stagnant luxury car market. The aspiration exists, but so do cultural brakes and a deep-rooted instinct to prioritise practicality and savings over showmanship.
Bansal Wire Sharpens Focus on Auto Supply Chain, Targets 35% Revenue Share
In a decade, the automotive segment has grown from contributing "almost nothing" to 20-25% of total revenue, and top management now wants that share to reach 30-35% of sales.
"So a big part of all of that is automotive for us. Automotive is our largest end user" noted Pranav Bansal who is the MD and CEO of the company.
The Algorithm That Adjusts Bus Prices 15,000 Times a Day
The centerpiece of this technological approach is revMax, a dynamic pricing tool built on EIML (AI/ML). This system is designed to solve the critical problem of manual pricing, which is unfeasible given the constant flux of demand, time of day, and departure schedules.Using the revMax algorithm, the company can change the price for a particular bus service more than 15,000 times in a single day.
Sales Analysis
PV, 2-Wheeler Sales Jump Over 20% During Navratri on GST Boost, But Overall Festive Momentum Lags
Despite the strong momentum during Navratri, total vehicle registrations during the broader festive window--from Ganesh Chaturthi on August 27 to September 30--remained slightly below last year’s levels.
The resurgence in demand during Navratri comes after months of subdued performance. The rebound has been driven by a confluence of factors, including the much-anticipated GST rate cut--on small cars, two-wheelers and other vehicle categories--which came into effect on September 22, the first day of Navratri.
Tata Motors Sets New EV Sales Record in September
This achievement comes as the company's quarterly EV performance hit nearly 25,000 units in Q2 FY26, marking a 59% year-on-year growth and contributing a record 17% to overall passenger vehicle sales.
Tata Motors Outpaces Mahindra and Eicher in September CV Sales Amid GST 2.0 Rollout
Tata Motors emerged as the clear leader in the commercial vehicles segment, reporting total sales of 94,681 units in Q2 FY26, marking a 12% increase over the same period last year. The company's September 2025 performance was particularly robust, with total CV sales reaching 35,862 units, up 19% year-on-year.
TVS, Royal Enfield, and Suzuki Lead Market Share Gains in 2025
TVS Motor Company, Royal Enfield, Suzuki Motorcycle India, and electric vehicle specialist Ather Energy have collectively gained significant market share when comparing their first nine months of 2025 performance to full-year 2024 figures, capitalizing on shifting consumer preferences toward premiumization, electrification, and technological innovation.
TVS Motor has emerged as the biggest gainer with a remarkable 1.86% increase in market share, expanding from 17.16% in full-year 2024 to 19.02% in the first nine months of 2025.
Hero, Ola, Honda and Bajaj See Biggest Losses in Market Share in 2025
Data comparing the first nine months of 2025 with full-year 2024 figures reveals that four major players—Hero MotoCorp, Ola Electric, Honda Motorcycle & Scooter India, and Bajaj Auto—have collectively shed significant market share, signaling a fundamental transformation in consumer preferences and competitive dynamics in the world's largest two-wheeler market.
GST ICE effect: Electric car and SUV sales slow down after two months of record growth
The 5% GST on EVs remains untouched, which essentially means that the once-substantial price gap between ICE PVs and EVs, particularly entry level models, has reduced sharply. This market dynamic has been reflected in the slowed-down demand for e-PVs in September.
India’s Top 6 Car and SUV Makers Headed for Record Sales in CY2025
Nine months into the year, each of these six PV manufacturers has achieved nearly three-fourths or more of their CY2024 wholesales. What has added strong tailwinds to their growth is the reduced GST, which has helped slash prices of most cars, SUVs and even MPVs and brought pent-up consumer demand to the fore.
Opinions
The Service Advantage: How Leading Luxury Brands Create Lasting Customer Loyalty
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.
How the EV Rental Industry Supercharges Local Economies
The EV rental industry has led to strategic growth by keeping all the profits within the community rather than distributing them to other nations. This is different from the traditional automobile industry, where fuel is imported from neighboring countries.
The government has introduced an increasing number of incentives, including tax rebates and the establishment of more charging stations for these electric vehicles. These initiatives, along with the rental system, have made EVs more accessible to the general populace.