Union Budget 2025: ZEDEX Mobility MD Atishay Jain sees passenger car industry revival driven by new launches and EV incentives

The passenger car industry in India faced a challenging 2024, registering low single-digit growth of 4%, with a demand slowdown post-May’s Lok Sabha elections. According to Atishay Jain, MD of ZEDEX Mobility, the sector was impacted by economic cooling in H1FY25, leading major OEMs to resort to pricing wars to boost sales.

“As we step into 2025, the industry has shown excitement with the Bharat Mobility 2025 expo, but fresh demand remains muted, with a 30% month-on-month dip in new order bookings,” Jain noted. However, strong retail momentum in January, carried forward from December, has provided optimism.

Jain highlighted Tier 2 & Tier 3 towns as key growth drivers in 2024, while metro cities, including Delhi, saw a 10% decline in H2. Looking ahead, he expects new car launches across OEMs and liquidity infusion in the banking system to support demand recovery. “Government-led incentives and rebates on replacing older vehicles with low-emission models will further boost demand,” he added.

With top four OEMs set to introduce new mass-market EVs, Jain predicts that EV penetration could double to 5% in 2025 from 2.4% last year. He also anticipates that OEMs will shift from discount-driven sales to profitability-focused new product launches, positioning the industry for a second-half recovery and a flat year-end performance.

The auto sector now looks to Union Budget 2025 for policies that will stimulate demand, expand EV adoption, and strengthen economic momentum in the coming months.

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