Tuesday, August 25, 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

BMW X1 LWB price in India

2026 BMW X1 Long Wheelbase Launched At Rs 49.90 Lakh

0
BMW India has launched the long-wheelbase iteration of the X1, called X1 LWB. Offered in a single sDrive 15Li variant, the elongated SUV is...

Skoda Kylaq Sportline Launched At Rs 11.32 Lakh

0
Skoda India has expanded the Kylaq range by introducing the new Sportline variant, with prices starting from Rs 11.32 lakh (ex-showroom). It is essentially...
2026 Skoda Slavia price

2026 Skoda Slavia Facelift Revealed; Bookings Now Open

0
The Skoda Slavia, which carries forward the legacy of the Rapid, has finally entered a new chapter with the introduction of its mid-life facelift...
2026 Mahindra BE 6 Sporteq One variant price

Mahindra BE 6 SPORTEQ One Variant Detailed: Price, Features, Specs and Images

0
Mahindra has recently given the BE 6 its first model-year update by introducing the BE 6 Sporteq. With this update, the electrified SUV gets...

Related Articles

2026 Mahindra BE 6 SPORTEQ Three Plus Variant Explained: Price, Features, Specs and Images

Are you planning to buy the recently updated Mahindra BE 6, now christened "BE 6 Sporteq"? The upgraded electric SUV receives a new interior...

2026 Mahindra BE 6 SPORTEQ Formula Edition Explained

With the introduction of the updated BE 6 SUV, now called BE 6 Sporteq, Mahindra has also introduced the upgraded BE 6 Formula E...

2026 Mahindra BE 6 SPORTEQ Three Variant Detailed: Price, Features, Specs and Images

Mahindra has recently given the BE 6 a model year upgrade (now called BE 6 Sporteq), introducing a new cabin design, an updated features...

Volkswagen Confirms New Compact SUV For India To Rival Tata Nexon, Maruti Brezza

Volkswagen has officially confirmed a sub-4m SUV for the Indian market, which will be launched sometimes in 2027. The upcoming SUV will share its...

Tata Cars Prices Set To Increase From September 2026

Tata Motors announced that it will increase prices across its portfolio by up to Rs 25,000, covering both internal combustion engine (ICE) and electric...