India's Auto Sector Gears Up: E20, GST, EV Drive Major 2025 Transformation

• India mandated E20 petrol nationwide from April, aiming to reduce oil imports and increase ethanol use, despite initial concerns about engine life and mileage.
• GST rates were adjusted for various vehicle categories, while import duties were cut for EV battery inputs and under-1600cc motorcycles, and a UK trade pact promises phased duty cuts for luxury cars.
• Tesla opened its first showroom, Vinfast launched EVs, and government schemes aim to attract global EV investments and secure rare-earth magnet production.
• Renault took full control of its Chennai plant, and draft CAFE 3 rules set tougher fuel efficiency targets for 2027-2032, pushing automakers to adapt.
• Despite a slow start, GST changes and festive demand boosted sales, projecting 4.5-5% growth, alongside infrastructure improvements like Mig La road and stricter urban emission rules.

Why It Matters: India's auto sector is undergoing a significant transformation driven by E20 fuel, GST reforms, EV push, and regulatory changes.