A Year of Conscious Consolidation and Electric Momentum

2026 will not just be another year of new products and technologies. It will be a year of purpose, where responsible mobility becomes the true measure of progress

- By JYOTI MALHOTRA, Managing Director, Volvo Car India

As 2025 drew to a close, India's automotive industry stood at a defining intersection, where scale met sustainability, and performance met purpose. The year was shaped by resilient demand, rising aspirations, and a clear national pivot toward sustainable mobility.

The passenger vehicle segment is expected to grow by 3-6 per cent in FY25, reaching 4.4-4.5 million units. Within this, the luxury segment is still around 1-1.2 per cent of total sales and continues to outpace the market, fuelled by higher disposable incomes, maturing consumer sophistication, and the growing appeal of experience-led ownership.

Yet the real transformation of 2025 lies in the electrification shift. Once considered a fringe curiosity, electric mobility has gone mainstream. Between January and November, more than 160,000 electric passenger vehicles were sold in India i.e. a striking 78 per cent year-on-year growth. This surge marks a turning point: Indian consumers are now choosing EVs not merely as an alternative, but as a responsible and aspirational choice combining environmental awareness with cutting-edge technology.

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