Tuesday, August 4, 2026

2025 Auto Industry Recap: Key Moments That Defined The Year

India’s automobile industry went through a wave of transformation in 2025. From policy moves to tax restructuring, rollout of some interesting new products and the India debut of some pioneer global brands, the year delivered several defining moments. Here’s a look at the events that shaped the automotive landscape in 2025.

Exemption From Customs Duties

In order to support local EV production, the Union Budget 2025 exempted customs duties on Li-ion battery cells, cathode materials, battery management systems, along with 35 additional capital goods used in EV battery manufacturing.

The central government also lowered import duties on CBU, CKD, and SKD motorcycles with an engine capacity below 1600cc from 100% to 50%.

Import Relaxment for Classic & Vintage Cars

In February 2025, the Ministry of Commerce and Industry relaxed import rules for vintage and classic cars, allowing vehicles aged 50 years or older to be imported without any licence, making the process much simpler for automobile collectors and enthusiasts who want to bring time-honoured marvels. 

E20 petrol oll out

E20 Roll-out

From April 2025, the E20 fuel (petrol with 20% ethanol) became mandatory nationwide. This was to reduce crude oil imports while supporting the agriculture sector. But since ethanol is more corrosive and has a lower energy density than petrol, owners of non-E20-compliant vehicles started raising concerns over compromised fuel efficiency, as well as breakdown & rusting issues.

India-UK FTA

July saw the signing of the India–UK Free Trade Agreement (FTA), a move set to reshape the automotive landscape for both markets. Under the deal, import duties on luxury cars and large-engine-capacity motorcycles will be slashed from 110% to just 10% over a five-year period through a quota-based system with gradually increasing volumes. This is expected to bring significant price relief for UK-manufactured premium brands such as Aston Martin, Bentley, McLaren, Jaguar Land Rover, and Rolls-Royce.

On the other hand, the UK will eliminate import duties on Indian electric vehicles from the sixth year of the agreement, creating a fresh export opportunity for domestic automakers. Maruti Suzuki has already begun exporting the made-in-India e-Vitara to the UK and plans to add the Victoris to its export lineup, while Tata Motors and Mahindra are also well-positioned to benefit from these new export channels.

Tesla India Delhi Showroom

Entry of Global EV Players

Global EV giant, Tesla Inc., finally made its way to the Indian market in mid-2025 with the launch of Model Y. The brand also opened two showrooms in the country, one in Mumbai and the other in Delhi.

Vietnamese automaker Vinfast also forayed into the Indian market in November, launching the VF6 and VF7 premium electric SUVs in the cut-throat midsize segments. The brand also has plans to launch electric buses and two-wheelers from 2026.

2025 Tata Sierra bookings and deliveries timeline

Old nameplate in Modern Avatar

The arrival of the Tata Sierra marks a major milestone for the Indian automotive industry, bringing back an iconic nameplate that once defined lifestyle SUVs in the country. Reimagined for a new generation, the Sierra’s return signals Tata Motors’ intent to blend nostalgia with modern design, advanced technology, and electrification, making it one of the most anticipated launches in recent years. Its comeback not only strengthens Tata’s future-ready portfolio but also highlights the growing demand for distinctive, design-led SUVs in India.

Hyundai Creta price after GST 2.0 revision

New arrivals, old nameplates

While policy dominated the narrative, the year still delivered several notable milestones. Multiple long-running nameplates, such as the Hyundai Creta, Toyota Innova, Maruti Swift, Alto, and Mahindra Bolero, celebrated major anniversaries, reinforcing their continued relevance in a rapidly evolving market.

Car News

Honda ADV160 launch timeline

Upcoming Honda Bikes Launch Timeline Leaked: ADV160, Rebel 300, XR 300L and XR 300 Rally

0
A few days ago, Honda unveiled an exciting lineup of seven new and three updated models for the Indian market, all set to launch...
Kia Sorento bookings

Kia Open Bookings For The All-New Sorento SUV

0
Kia India has commenced pre-launch bookings for the Sorento SUV ahead of its launch in the coming weeks, though the official date is yet...

2026 Tesla Model Y Debuts in India with AI Features; Test Drives Begin

0
Tesla has announced that the 2026 Model Y Premium Rear-Wheel Drive (RWD) is now available for test drives across its experience centres in India....
Hyundai Creta Electric price in India

Hyundai Addressed EV Resale Concerns with Creta Electric Buyback Plan

0
Hyundai has introduced an assured buyback programme for Creta Electric, offering 60% assured buyback value for up to 3 years/45,000km. With this, the Korean...

Related Articles

Jeep Compass and Meridian Get Benefits of Up To Rs 1.65 Lakh In August 2026

Amid the continuing decline in Jeep SUV sales in the country, the American carmaker has announced discounts of up to Rs 1.65 lakh on...

Discounts of Up To Rs 3.35 Lakh On Tata EVs This Month

Are you planning to buy a Tata EV in August 2026? Well, the Indian carmaker has rolled out attractive offers & discounts of up...

Hyundai Addressed EV Resale Concerns with Creta Electric Buyback Plan

Hyundai has introduced an assured buyback programme for Creta Electric, offering 60% assured buyback value for up to 3 years/45,000km. With this, the Korean...

MG Reveals Prices For Cyberster, M9 Couture Editions

MG Motor India has announced prices for the new Couture Editions of the Cyberster and M9 luxurious electric vehicles, which are priced at Rs...

Michelin Primacy 5 Made-in-India Tyres Launched For Passenger Cars

The first made-in-India passenger car tyres from Michelin for Indian consumers Claims class-leading over 8 metres shorter wet braking distances compared to leading competitors on...