Automotive to Sustainable Mobility, EVs and Beyond: Auto Industry’s journey for 2025

Tata Motors is at the leading edge of what Indian automobile would be in a race to 2025 that’s sustainable mobility.

Ss as Indian autos await for the year 2025, the spotlight majorly and centrally is on the sustainable mobility that also lays in electric vehicle manufacturing; the leading EV company that remains home-brew, as of now, still waits deeper as the auto companies wait for all the preparations to showcase extremely interesting inventions at the much-needed show that is to be held next, from January 17 – 22, Bharat Mobility Global Expo coming about at Delhi-NCR this time.

The Indian automobile industry is becoming sustainable mobility. In India, with all such technologies, like electric vehicles, autonomous driving, and connected features, gaining momentum there, Indian automobile industry finds itself sort of at a crossroads because now the sale has begun to reduce, and demand generated during this post-pandemic phase has started becoming ineffective. The momentum is still moving forward to get more environmentally friendly cars by 2025, as each and every auto manufacturer in the scale is preparing for the coming auto expo.

The Bharat Mobility Global Expo will include the entire spectrum of vehicles with different propulsion technologies – pure electric, hybrids, and alternative fuels. In this way, it would cater to all sections of consumers. Though electric vehicle is at the center, still, the demand for support for other eco-friendly powertrains such as hybrid, biofuel, and CNG in the passenger vehicle segment is slowly gathering momentum.
As long as India retains its leadership position in the EVs marketplace, it will continue to push for its dominance. Until then, it sees a rosy growth of the passenger vehicle market in India to 2025. “The commitment is not just to lead the charge in the EV space but give the customer an experience,” said Shailesh Chandra, MD, Tata Motors Passenger Vehicles.

Other companies that will get the industry ready to a threefold increase in 2025 in terms of the preparation process for an EV market explosion, including JSW MG Motor India, would make the business strategy of the company align with the needs of customers, thus making the offered EVs more attractive and affordable to consumers. In the same manner, Maruti Suzuki India, the largest carmaker in the country, is building up its presence in the electric vehicle market as the company unveiled a new product called eVITARA. Moreover, the company will adopt a multi-pathway mechanism to establish a carbon-neutral society through hybrids, CNG, and biofuels.

Other Eco-Friendly Technological Solutions Get Momentum
Even while all the attention is to electrive vehicles, others are the hybrids, plug-in hybrid, ethanol, compressed bio-gas, too closely positioned. Vikram Gulati of Toyota Kirloskar Motor said a balance between need a supporting all technologies that have any role in achieving society and societal goals. The chairman CEO and managing director of Kia Motors India Gwanggu Lee also shared similar opinion, “Electrification required however don’t forget hybrids, CNG, and alternative fuel.

Mercedes-Benz India saw a considerable increase in the adoption of BEV in the luxury segment. In the first nine months of 2024, Mercedes-Benz India saw electric vehicle sales over 800 units, growing by 80%. Mercedes-Benz India believes this trend will carry forward into 2025 as it brings out new launches like EQS SUV and the Electric G-Class.

There is an opportunity in the medium to long term in luxury EV where demand from HNW individuals and environmentally-conscious customers will only continue growing. The better chance of a growing demand for luxury electric vehicles will be when people look for premium products that resonate with environmental values.

Industry Faces Price Hikes in 2025
With more consumers now concentrating on sustainable mobility, the price of a new car in 2025 will be too pricey for the consumers. Virtually all producers, mass-market to luxury, are considering raising their prices in January to make up for input cost increases. Price increases in vehicles may weigh down consumer choices, considering that many of these manufacturers are shifting towards electric and hybrid powertrains, which are generally pricier than the conventional vehicle.

Look to the Future: Possibilities and Headaches
The auto industry is optimistic about its prospects even though it will have to deal with a difficult sales environment. Much of the pent-up demand since the pandemic has been spent, and having last year as a super high base by comparison, the auto companies have quite a bit of work this year compared to last to be growth positive. The urban market has been softer, but rural markets continue to be in robust demand, especially for entry-level small cars and two-wheelers.

Hisashi Takeuchi, Maruti Suzuki said that the company has surpassed its first ever production milestone of 20 lakh units in 2024 despite all these adversities. Society of Indian Automobile Manufacturers or SIAM also said that the demand for SUVs as well as new energy vehicles remained steady and there is sustained growth in the adoption of hybrids, electrics and gaseous fuel vehicles in 2024.

New Industry Three Problems facing this sector include localizations, research, and developments in addition to sustainability. This industry has managed impressive resilience growth not only at a national level but also outside, although very un-sure within the world horizon.

Conclusion
Indian automobile Industry at this stage, approaching 2025 is crossing roads wherein, only the solution related to the sustainability of mobility shall look into. Electric vehicles are leading the pack with others like hybrids, biofuels, and CNG coming in. The sector geared up with optimism in growth with the Bharat Mobility Global Expo and the new models launching though rising input costs and sales slowdown have been challenging for the sector. In 2025, the trend of sustainable mobility will continue, as automobile manufacturers innovate to keep pace with the rising demand for environmental-friendly transportation solutions.

Source: Industry reports, Maruti Suzuki, Tata Motors, Mercedes-Benz, Kia India, SIAM.

 

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