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Auto Expo 2025: OEMs focus on clean fuels

* At the Bharat Mobility Show, we observed a significant focus on EVs and clean fuels among OEMs, both in the 2W and PV segments, as manufacturers work to meet the upcoming CAFÉ regulations. We anticipate a boost in the EV transition for PVs and 2Ws in the coming years, with large OEMs, such as MSIL and Hyundai in the PV segment and HMSI and Suzuki in the 2W segment, launching their own EVs. Suzuki’s move to make India its global hub for EVs, coupled with Toyota’s partnership with Suzuki to source the same model from MSIL for global markets, is expected to help MSIL scale up its EV production and build a long-term, sustainable EV business model. On the back of this, MSIL targets to become the largest EV OEM in India, in production terms, within the first year of the launch. While Hyundai’s positioning of Creta EV has been aggressive and is expected to boost its EV contribution in the overall mix, we believe there is a risk of cannibalization with the diesel variant. Further, in India, the EV segment in PVs is poised for increased competition, with the likes of BYD and Vinfast targeting to gain a foothold in the market. In the 2W segment, apart from EV launches from HMSI and Suzuki, other key attractions were from HMCL (launched four new products in the premium segment) and TVSL (showcased upcoming models from Norton and India’s first CNG scooter).

* Passenger vehicles: At the Bharat Mobility Show 2025, many PV OEMs were focused on launching EVs, with only a few launches in the ICE segment. Prominent PV launches included MSIL’s first EV (the eVX) and Hyundai’s Creta EV. eVX’s pricing is expected to be announced by April this year after gathering customer feedback on the model, while the Creta EV has been launched at an introductory pricing of INR1.8m. TTMT showcased the Harrier EV and the Sierra SUV (ICE) models, both likely to be launched later in FY26, along with the Avinya concept. Kia showcased its recently unveiled Syros, which is expected to be positioned between Seltos and Sonet. Other attractions included BYD’s Sealion and e Max7, as well as Vinfast’s VF6 and VF7.

* Two wheelers: Hero MotoCorp made several new launches, largely in the premium segment, including Xoom 125 and Xoom 160cc, X-Pulse 210, and Xtreme250R. It also displayed the prototype of its two-in-one vehicle, Surge. Both Japanese companies, Suzuki and HMSI, showcased their first 2W EVs at the Expo. HMSI introduced two EV options (e-Activa – a swappable solution and QC1 – equipped with a fixed battery), while Suzuki showcased its electric Access, equipped with a 3.01 kWh battery. TVS also showcased an interesting lineup featuring upcoming Norton products, set to launch in the next 12 months, as well as India’s first CNG-based scooter. Ola presented its Roadster series motorcycles alongside scooter variants, S1Z and Gig.

* Our view: At the Bharat Mobility Show, there was a strong focus on EVs and clean fuels among OEMs, both in the 2W and PV segments, as manufacturers work toward meeting the upcoming CAFÉ regulations. We expect the EV transition in PVs to gain momentum in the coming years, particularly with two large PV OEMs, MSIL and Hyundai, launching their own sub-INR2m EVs. This segment is likely to experience strong competition from BYD and Vinfast, as both global EV giants aim to establish presence in the fast-growing Indian EV market. Similarly, in the 2W sector, the launch of EV scooters in India by Japanese peers, HMSI and Suzuki, will further help boost the EV transition in 2Ws. Among auto OEMs, our top picks are MSIL, Hyundai, and M&M, while we like Endurance, SAMIL, and Happy Forgings in auto ancillaries.

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