As 2025 draws to a close, India’s automotive and mobility sector has emerged more resilient and future-focused, driven by premiumisation, deeper electric vehicle consolidation and a growing emphasis on engineering-led innovation, according to industry leaders. Despite global geopolitical uncertainty, supply-chain disruptions and cost pressures, the sector maintained steady growth through capacity expansion, technology adoption and evolving consumer preferences, reinforcing India’s position as a key long-term mobility market heading into 2026. Highlighting developments in electric two-wheelers, Ajinkya Firodia, Vice Chairman and Managing Director of Kinetic Watts & Volts Ltd., said 2025 marked a defining phase for India’s electric scooter ecosystem. He noted that the industry consolidated around players that remained focused on core scooter attributes such as strength, reliability, service and quality, while effectively integrating modern electronics and connected features. Electric vehicle penetration in scooters crossed a record 16 per cent during the year, he added. Firodia said domestic EV manufacturers continued to innovate despite challenges such as rare-earth magnet shortages, tapering subsidies and rising input costs. The entry of global players including Tesla and VinFast further strengthened India’s credibility as a long-term electric mobility destination. He also highlighted policy support, including the reduction in goods and services tax on automobiles from 28 per cent to 18 per cent, as a positive catalyst that helped the broader market sustain growth amid global conflicts, tariff uncertainty and economic volatility. Reflecting on the sector’s legacy, Firodia described the passing of Ratan Tata as a turning point in Indian automotive history, calling him a leader who combined global ambition with innovation for the common Indian. Design- and engineering-led transformation is increasingly influencing vehicle development, according to Pratik Malkan, Chairman of Lusso Designs India. He said personalisation has evolved beyond cosmetic differentiation to become a core engineering principle shaping vehicle architecture, material selection and feature integration. Lusso Designs is supporting original equipment manufacturers through AI-led design modelling, robotics-assisted production, advanced prototyping and lightweight composite engineering, enabling faster development cycles, premium positioning and alignment with sustainability goals. With India’s high-net-worth and ultra-high-net-worth consumer base expanding, Malkan said demand for bespoke and premium mobility solutions is expected to remain strong, supported by global collaborations and a focused research and development roadmap. From the tyre industry perspective, Harinder Singh, Managing Director and Chief Executive Officer of Yokohama India Pvt. Ltd., said that while improved road infrastructure is driving demand for higher performance, value and mileage continue to influence purchase decisions. On the original equipment manufacturer side, the shift towards larger tyres has been more pronounced, with 17-inch and above tyres now accounting for nearly one-quarter of OEM supply as SUVs and premium vehicles reshape fitment trends. Despite ongoing currency volatility, Singh said the direction of the passenger vehicle market remains clear, led by SUV-driven premiumisation. As the industry moves into 2026, leaders remain optimistic that continued innovation, strategic partnerships and customer-centric design will underpin the next phase of growth for India’s automotive and mobility ecosystem.