Weekly News Wrap: E20 Clarity, EV Ambitions, Global Shifts and Festive Readiness

By Pune Media On Aug 31, 2025

The final week of August 2025 brought a mix of reassurance, opportunity, and hard realities for India’s automotive sector. The most immediate relief came from the auto industry’s assurance that warranties would remain valid for older vehicles using E20 petrol, addressing widespread consumer anxiety around India’s rapid ethanol-blending rollout.

The clarification, delivered by SIAM executives, not only defused concerns but also aligned with broader government estimates that the E20 programme could generate ₹40,000 crore for farmers and save ₹43,000 crore in forex this year.

Meanwhile, corporate India revealed its longer-term plays. Reliance Industries, at its 48th AGM, laid out an audacious plan to reshape India’s clean energy and mobility ecosystem through giga-factories spanning solar, batteries, and hydrogen, all underpinned by AI-led efficiencies.

In parallel, Ather Energy launched its EL platform for mass-market EV scooters, setting 2026 as the timeline for its first rollouts, while TVS Motor expanded its EV portfolio with the Orbiter under ₹1 lakh to consolidate its leadership in the fast-growing budget electric segment.

But optimism was tempered by risks. Maruti Suzuki’s RC Bhargava flagged India’s heavy dependence on imported EV battery cells, warning that without raw material security, investment in local cell manufacturing remained unattractive.

On the trade front, the tyre industry raised alarms after the US hiked import tariffs to as much as 50%. Royal Enfield’s Siddhartha Lal also reignited the GST debate, urging a uniform 18% on all two-wheelers to protect India’s global leadership in motorcycles and prevent stunted growth in premium segments.

In essence, the week was a snapshot of the industry’s balancing act–soothing near-term anxieties with policy clarity, doubling down on clean mobility bets, grappling with external trade and supply-chain risks, and preparing for a festive season where demand signals remain uneven.

Here’s the detailed round-up of all major developments this week:

Auto Industry Assures Warranty Cover for Older Vehicles Using E20 Fuel

Amid concerns about the warranties of older vehicles on problems arising from the use of E20 fuel, the auto industry clarified that vehicle makers will honour the warranties for older vehicles using E20 fuel, irrespective of what the user manual says.

Senior executives of the Society of Indian Automobile Manufacturers (SIAM), which represents vehicle manufacturers in India, clarified at a press meet to address consumer concerns on E20 fuel usage on Saturday.

As India advances its ambitious ethanol-blending program, the transition to petrol blended with 20% ethanol (E20) has raised concerns among consumers, particularly those who own older vehicles.

A primary worry is that potential damage and performance issues resulting from the use of E20 fuel may not be covered under the manufacturer’s warranty, leaving owners to bear the cost of repairs.

India’s E20 Programme Expected to Generate Rs 40,000 Crore for Farmers This Year

India’s push toward 20 percent ethanol blended petrol (E20) is projected to generate approximately Rs 40,000 crore in payments to farmers this year, while saving around Rs 43,000 crore in foreign exchange, according to a joint statement from automotive testing agency ARAI, oil marketing companies, and vehicle manufacturers.

The Ethanol Blended Petrol Programme, launched in 2001, has gained momentum as the government aims to reduce crude oil imports and support rural incomes.

The initiative has resulted in carbon dioxide emission reductions of 736 lakh metric tonnes, equivalent to planting 30 crore trees, the statement said.

Reliance Fuels Automotive Future with Gigawatt-Scale Green Energy and AI Investments

Reliance Industries Limited is working on an ambitious multi-billion-dollar strategy centered on New Energy and Artificial Intelligence (AI), initiatives poised to significantly impact India’s automotive sector, from vehicle manufacturing to sustainable mobility solutions. The Mumbai-headquartered conglomerate unveiled this strategic plan at its 48th Annual General Meeting.

At the core of Reliance’s vision is the creation of an integrated New Energy ecosystem, described as spanning “from sand to electrons to green molecules”. This includes developing massive manufacturing facilities, or giga-factories, for crucial components like solar modules, batteries, and electrolysers for green hydrogen production.

Work is rapidly progressing on the Dhirubhai Ambani Giga Energy Complex in Jamnagar, which aims to become the largest and most integrated single-site solar complex globally with a 20 GWp capacity.

Maruti Suzuki’s RC Bhargava warns of “high risk” from EV battery import dependence

After starting the production of Maruti Suzuki’s first global battery electric vehicle (BEV), eVitara, and Suzuki’s first lithium-ion battery, cell and electrode manufacturing in the Gujarat plant, Chairman RC Bhargava said the absence of domestic cell manufacturing is a major obstacle for India’s electric vehicle industry and heavy reliance on imports of raw materials is pulling back companies from investing in cell manufacturing for BEVs.

“I’m told that the economic side would be around Rs 20,000 crores to put up a battery plant. If I put up a plant, the raw material is not available to me. As an investor, what is my risk level? Especially if the raw material is controlled by one supplier. Risk is very high. That is possibly one of the factors that is deterring people from making investments in battery cell manufacturing in India,” Bhargava told reporters.

Royal Enfield’s Siddhartha Lal Urges Uniform 18% GST on Two-Wheelers

Siddhartha Lal, Executive Chairman of Eicher Motors, has issued a strong appeal to policymakers for a uniform 18 percent Goods and Services Tax (GST) across all two-wheelers.

In a statement posted on LinkedIn on Saturday, Lal warned that a split tax regime could weaken India’s global leadership in the sector, stall investment, and create an opening for foreign competitors.

Lal pointed out that motorcycles above 350cc account for just 1% of India’s two-wheeler market, and raising GST on them would generate negligible revenue while contracting the segment.

“For Indian riders, these motorcycles are not luxury goods; they are efficient, affordable alternatives to cars, offering lower fuel consumption and maintenance — benefits that also help reduce India’s fuel imports,” he added.

Indian Tyre Industry Seeks Relief as US Imposes Higher Tariffs

The Automotive Tyre Manufacturers’ Association (ATMA) has raised concerns over the recent imposition of higher tariffs by the United States on tyre imports from India, calling for urgent policy interventions to protect export competitiveness.

Under the revised tariff structure, Indian tyre exports to the US now face duties of up to 50% on most categories, with select types attracting a 25% rate. This positions Indian manufacturers at a disadvantage compared to producers in countries like China, Thailand, Vietnam, Cambodia, and Indonesia, which continue to face lower tariff barriers in the US market.

The US remains India’s largest export destination for tyres, accounting for 17% of total exports. In the financial year 2024–25, India’s tyre exports surpassed ₹25,000 crore, with exports to the US exceeding ₹4,300 crore.

Ather Launches EL Platform for Affordable Electric Scooters

As a part of getting into the mainstream electric two-wheeler market, mass premium electric scooter maker Ather Energy on Saturday unveiled its affordable electric scooter platform EL, which the company says is the most versatile and scalable one.

The platform can produce a diverse range of scooters, from commuter and family to high-performance models, offering various battery sizes, wheel dimensions, and dashboard designs.

“With the EL platform, we are laying the foundation for Ather’s next phase of growth. Just as the 450 defined our first chapter, EL will define the next, enabling us to develop multiple types of scooters at scale far more efficiently.

This platform-first approach enables faster innovation and improved efficiency, serviceability, and rider experience,” Tarun Mehta, co-founder & CEO of Ather Energy.

Ather to Roll Out First EL Platform-Based Scooter in Festive 2026

Mass premium electric scooter maker Ather Energy will roll out the first scooter based on its newly unveiled EL platform during the festival season of 2026 as the company’s strategy this year is centered on enhancing the brand’s reach and product experience.

The company’s Cheif Business Officer Ravneet Phokela said the first model on the EL platform will go for production towards the festival season of next year. EL-based model would be the first to be manufactured from Ather Energy’s upcoming facility in Aurangabad.

As part of taking Ather to the mainstream market, the company is expanding its retail network across the country while simultaneously implementing new software features and rolling out their fast-charging technology ahead of launching new affordable products.

TVS Motor Expands EV Lineup with Sub-₹1 Lakh Orbiter

In an increasingly competitive electric two-wheeler market where players are preparing to launch more affordable products, TVS Motor Co has strategically broadened its product portfolio to cater to a wider customer base in the crucial sub-Rs 1 lakh price segment and consolidate its market leadership with the new Orbiter priced at Rs 99,900 just ahead of the festival season.

Electric vehicle adoption is accelerating in India’s two-wheeler segment, with sales showing a robust trend. This growth is heavily concentrated in the sub-Rs 1 lakh category, which is estimated to account for 40-60% of the electric two-wheeler market.

TVS Motors is currently the market leader with a share of over 21% in July, and its portfolio consists of three models – iQube, Orbiter and X.

Renault India Eyes 3% Market Share by FY27 With Double-Digit Growth

After a tough couple of years with weak sales, French carmaker Renault is shifting its gears for a growth phase in India. With a refresh of its entire existing models and the much-anticipated relaunch of Duster SUV expected this year, Renault India is targeting double-digit growth and achieving a market share of 3% by the financial year 2027, according to a senior company official.

“We want a double-digit growth rate. That is what we are working on, with the new product launches. When we finish the first cycle, we should have a double-digit growth.

Today I’m at about 1% and we were at 3% once upon a time. I should come to that place, 3% in a year and a half,” Renault India Chief Executive Officer and Managing Director Venkatram Mamillapalle told Autocar Professional.

Oben Electric Targets 100 Retail Outlets by CY25-End

Bengaluru-headquartered e-motorcycle startup Oben Electric is on an expansion spree, with the company opening retail outlets across various Indian geographies and venturing out of its home turf of southern India.

While it recently announced to strengthen its North India presence by scaling to 20 outlets in the region by end-FY26, the company hit the cumulative 50-outlet milestone by opening a store in Vishakhapatnam, Andhra Pradesh on August 20. It aims to go deeper across North, West, Central and East India, and augment its presence in a growing electric two-wheeler market in the country.

Samvardhana Motherson to Acquire 81% Stake in Honda Subsidiary Yutaka Giken for JPY 27 Billion

Samvardhana Motherson International Ltd (SAMIL) is buying control of Honda’s metal-bits maker, Yutaka Giken for about JPY 27 billion, snapping up 81% of its voting rights, while Honda will keep a 19% foothold as a long-term partner.

In the same manoeuvre, the Indian supplier will fold in Yutaka’s India arm outright and pick up 11% of Shinnichi Kogyo, a Yutaka subsidiary, tightening the bolts on a broader supply pact with Japan Inc.

Honda Motor Co., Ltd. currently owns 69.66% stake in the target company, while the rest is owned by the public. Post completion of all steps, Honda shall continue to own remaining 19% voting rights shares in Yutaka Giken.

Lumax Turns Towards China for Technology, Collaborations

Lumax Auto Technologies Ltd. is turning toward China for technical collaborations and tap advanced New Energy Vehicle know-how as it readies proof‑of‑concepts for Indian conditions and weighs selective on‑ground presence in the mainland.

“One clear shift we are seeing is China emerging as a clear winner… These technologies are very, very competitively positioned in the Chinese market, and they are working on the next level of technologies,” said Managing Director Anmol Jain.

The calculus is straightforward: China’s NEV share has crossed the halfway mark in recent months, concentrating scale, cost and learning effects that now radiate across global supply chains.

Ammann India’s “Road” Map For Growth

Roads are the arteries of an economy, a route for carrying goods, people, aspirations and stories of everything that moves. India, with the world’s second-largest road network, still has vast white spaces awaiting development.

Building strong roads requires not just a coat of bitumen but multiple layers of materials and specialized equipment such as pavers and compactors – an opportunity identified early by Ammann India.

The company has made steady inroads in India, with its machines powering projects such as the Ganga Expressway. Pavers, in essence, are machines that lay asphalt and ensure proper compaction of roads. “If you look at any road in India, chances are high it has been built using Ammann’s pavers,” said the company’s managing director Dheeraj Panda.

“Road construction equipment such as pavers may account for only 7–8% of the overall sector, but they are among the most critical machines for creating strong, long-lasting roads,” he added.

The demand for these machines is closely tied to government spending and the awarding of tenders, which typically carry a long gestation period of two to three years.

This dependence was evident in FY25, when the construction equipment industry grew by just 3%, a sharp slowdown from 26% in FY24, largely due to election-related delays. This year (FY26), too, the industry is expected to remain flat. Ammann, however, managed to grow about 5% last year.

AC Truck Cabins: Comfort or Profit?

The heat is quite literally on for India’s commercial vehicle sector. Starting June 8, 2025, every new medium and heavy truck sold in India must come equipped with an air-conditioned cabin. For an industry that moves the vast majority of the country’s goods, this regulatory shakeup has profound technological, economic, and human implications.

Yet, amidst early grumbles about rising costs, a quiet efficiency enhancement is underway, aiming to reconcile comfort with cost — and setting a blueprint for emerging markets worldwide.

INDUSTRY LANDSCAPE

Maharashtra, Uttar Pradesh Lead Vehicle Sales in Q1 FY26

Vehicle sales in India crossed 60 lakh units in the first quarter of 2025-26, with Maharashtra and Uttar Pradesh emerging as the top markets across categories, according to data from the Society of Indian Automobile Manufacturers (SIAM). While Maharashtra dominated in cars and trucks, Uttar Pradesh remained the country’s largest market for two- and three-wheelers.

“Uttar Pradesh is largely a rural market where public transport is limited, so motorcycles and three-wheelers are natural choices. That is why the state consistently shows strong numbers in these categories,” said Vinkesh Gulati, former president of the Federation of Automobile Dealers Associations (FADA).

In passenger vehicles, sales crossed 10.12 lakh units in the April–June quarter. Maharashtra emerged as the largest state market, accounting for nearly 12% of the total at 1.19 lakh units, followed by Uttar Pradesh (11.3%), Gujarat (7.6%), Karnataka (7.2%) and Haryana (6.8%).

India Car Sales Show Mixed Trends Ahead of Festive Season as Inventory Builds

India’s passenger vehicle market displayed contrasting trends in July 2025, with wholesale volumes growing 8.9% sequentially while year-over-year growth remained flat at 340,000 units, according to a recent report by credit rating agency ICRA.

Original equipment manufacturers (OEMs) are strategically building inventory ahead of the upcoming festive season, resulting in dealer stock levels rising to 55 days, as reported by the Federation of Automobile Dealers Association (FADA).

Meanwhile, retail sales increased 10.4% compared to the previous month but declined marginally by 0.8% year-over-year, indicating continued demand-side challenges.

Nissan drops out of top 10 in global auto sales charts in H1 of 2025

Nissan has been struggling for quite some time, facing financial troubles, weak sales, and multiple lawsuits over faulty engines. The Japanese automaker sold 1.61 million vehicles globally in the first half of 2025, a 6 percent decline compared to last year, according to data from research firm MarketLines—first reported by Nikkei Asia.

This sharp drop means Nissan has fallen out of the top 10 brands in global auto sales for the first time in 16 years, lagging far behind leaders like Toyota and Volkswagen Group.

The decline opened the door for Chinese automakers BYD and Geely to surpass Nissan, with BYD posting a massive 33 percent sales increase to move up to eighth place. Adding insult to injury, Nissan’s domestic rival Suzuki also edged past it, selling 1.63 million units—just 20,000 more—marking the first time Suzuki has outsold Nissan since 2004.

EXPERT VIEWS

Beyond the Badge: The Rise and Fall of Model Brands

In the automotive industry, a complex relationship exists between a company’s overarching brand and its individual vehicle models. Over time, specific models can achieve such prominence that they evolve into powerful sub-brands, often yielding significant benefits for the parent company.

A model renowned for reliability can elevate the overall perception of the manufacturer as trustworthy, while one acclaimed for innovation can position the entire brand as an industry pioneer.

Cultivating a diverse portfolio of robust model brands offers numerous strategic advantages, allowing manufacturers to target various market segments effectively without compromising core brand messaging. Each model can develop a distinct identity, addressing specific customer needs and preferences while contributing to overall brand strength.

The Indian automotive landscape presents intriguing results, with manufacturers experiencing varying degrees of success in developing and leveraging model brands.

Software-Defined Vehicles: Digital Revolution of India’s Automotive Industry

India’s automotive landscape is experiencing a fundamental transformation. Gone are the days when cars were simply mechanical marvels—today’s vehicles are becoming computers on wheels.

Software-Defined Vehicles (SDVs), where critical functions like safety systems, infotainment, and performance parameters can be updated through over-the-air (OTA) software patches, represent the industry’s next major leap forward.

With Tata collaborating with BMW on SDV platforms and Mahindra investing heavily in connected ecosystems, Indian automakers are positioning themselves for a software-first future. But what does this mean for consumers, manufacturers, and the broader ecosystem?

Know more

Future of Last-Mile Mobility in India’s Tier-2 and Tier-3 Cities

India’s smaller cities are growing fast. As Tier-2 and Tier-3 cities evolve with new housing colonies, industrial estates, educational institutions, and healthcare centers on their expanding fringes, they are no longer the sleepy towns of the past. But one thing isn’t keeping pace: the local transport system.

The term “last-mile mobility” might sound technical, but its impact is deeply personal. It refers to the small but critical gap between people’s homes and major transport hubs, like bus stands, railway stations, or workplaces. And in these cities, that gap is often filled with uncertainty, inconvenience, or exclusion.

How IoT and AI Are Revolutionizing Fleet Management in India

India’s logistics and transportation industry is in the middle of a major technology shift. For decades, fleet management largely meant manual tracking, paper-based records, and reactive maintenance.

Today, Internet of Things (IoT) devices and Artificial Intelligence (AI) are rapidly changing the way fleets are operated—bringing in automation, data-driven insights, and predictive capabilities that were unthinkable just a few years ago.

With India’s logistics market expected to reach nearly USD 380 billion by 2030, according to NITI AAYOG estimates, efficiency is no longer optional -it is essential.

The adoption of IoT and AI will prove to be a game-changer, helping companies cut costs, improve safety, and deliver goods faster in an increasingly competitive market.

OEM-Vendor Tensions: Finding Common Ground for Collaboration

The relationship between auto Original Equipment Manufacturers (OEMs) and their Tier-1 vendors is fraught with conflict. Despite being interdependent, the relation suffers from frequent mistrust, and this overshadows collaboration.

To resolve this conflict and arrive at a win-win solution, it is important to understand the root cause of this strained relation.

For Car Dealerships, Is Agentic AI the Next Big Thing?

Walk into any dealership today and you’ll see the same juggling act: a salesperson on the phone with a prospect, another answering a WhatsApp query, a manager trying to reconcile CRM data with last month’s leads, and a receptionist fielding service requests.

Cars may be more advanced than ever, but dealership operations often feel like they’re running on carburetors in an EV world. Enter Agentic AI—the emerging class of autonomous, context-aware software agents—and the question: is this the next big thing for dealerships?

Find out

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}

_{Aggregated From –}

_{Source link}