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Latest Cars News in India (2025)

The Indian automotive industry in 2025

AUTOMOTIVE - CARS AND BIKES

VoyagerX

2/23/20252 min read

gray mercedes benz coupe on black asphalt road during daytime
gray mercedes benz coupe on black asphalt road during daytime

The Indian automotive industry in 2025 is buzzing with major developments, from Tesla’s entry to new government policies and exciting vehicle launches. Here’s a look at the biggest updates shaping the sector this year.

Tesla Finally Enters India

Tesla has identified locations for its first showrooms in India, with sites planned in New Delhi’s Aerocity and Mumbai’s Bandra Kurla Complex (BKC). These showrooms will sell imported Tesla EVs, but they won’t function as service centers initially. This move follows discussions between Tesla CEO Elon Musk and Indian Prime Minister Narendra Modi. However, Tesla’s expansion in India still faces challenges due to high import tariffs.

India’s New EV Policy

The Indian government has introduced a new policy aimed at attracting global automakers. The key points include:

Reduced import tariffs for EVs if companies invest at least $500 million in local manufacturing.

Only 5% of this investment can be allocated to charging infrastructure, focusing more on vehicle production.

Automakers like Tesla, Hyundai, and Toyota are keen to take advantage of this policy to manufacture EVs in India.

Suzuki’s Massive Investment in India

Japan’s Suzuki Motor Corporation is set to make India a major part of its global strategy.

Targeting 4.2 million global vehicle sales by 2030, with 60% of the volume from India.

Investment of 2 trillion yen to increase production and make India an export hub for Africa and the Middle East.

Plans to launch four new electric vehicles (EVs) in India by 2030.

Volkswagen’s $1.4 Billion Tax Dispute

Volkswagen’s Indian subsidiary, Skoda Auto Volkswagen India, is facing a $1.4 billion tax demand from Indian authorities. The issue stems from allegations that the company imported nearly complete cars as separate parts to reduce tax liability. Volkswagen warns that paying the total amount (including penalties of $2.8 billion) could severely impact its operations and 6,000 local employees.

Exciting New Vehicle Launches

2025 has already seen some exciting new models hit the Indian market:

Aprilia Tuono 457 – A stylish new streetfighter motorcycle, priced at Rs 3.95 lakh.

BYD Sealion 7 – India’s first car with 11 airbags, priced at Rs 48.90 lakh.

2025 Renault Triber – Updated model now available for Rs 6.10 – 8.75 lakh.

Tata Sierra SUV – Testing is underway, with spy shots surfacing online.

What’s Next?

The Indian automotive industry is set for an exciting year, with global brands investing heavily in EVs, manufacturing, and innovation. Stay tuned for more updates as the industry evolves.

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white concrete building during daytime