Amidst the ongoing tension in the Middle East, Iran’s Revolutionary Guards have closed the Strait of Hormuz to ships. This ongoing war between Iran and Israel-America can shake the world’s oil trade. When war or tension increases in any major oil producing region of the world, its impact is not limited to that country only, but falls on the economy of the entire world.

If there is a war related to Iran or a major military conflict in the Middle East, then the supply of crude oil will be affected first. A large part of the world gets oil from this region. In such a situation, oil prices start increasing rapidly in the international market. As soon as oil becomes expensive, the prices of petrol and diesel increase, and this increase has a direct impact on the auto industry.

How much impact on auto industry?

• First of all, the impact on common people is visible in the form of fuel prices. Driving will become expensive as petrol and diesel become expensive. When transport becomes expensive, the cost of everything increases, due to which inflation starts increasing. This can also affect the demand for vehicles, because people take decisions more thoughtfully before buying a new vehicle.
• The second biggest impact is on automobile companies. Many of the materials used in making vehicles—such as plastic, rubber, synthetic fiber, paint and many chemicals—are made from petroleum. When crude oil becomes expensive, the price of these raw materials also increases.
• Apart from this, electricity and energy expenditure in factories may also increase. Then the cost of transporting the finished vehicles to the dealer through trucks or ships also becomes high. Due to all these reasons the total production cost of companies increases.

How expensive will cars become?

• If oil prices rise for a short period, companies can keep the prices stable by bearing losses for some time. But if the crisis continues for a long time and oil remains expensive, companies may be forced to increase the prices of vehicles. In such circumstances, an increase of 2% to 10% in the prices of cars and bikes may be possible.
• It will depend on how high oil prices go and for how long they remain. When fuel is expensive, people give preference to high mileage vehicles. Demand for small cars, CNG models, hybrid and electric vehicles may increase.

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The long-running Free Trade Agreement negotiations between India and the European Union have now been successfully completed. Under this historic agreement, the heavy tariff imposed on European cars imported into India will now be gradually reduced. This decision is being considered very important for both the Indian auto sector and car buying customers. Let us know in detail.

How much has the tariff reduced?

According to the government press statement, under this agreement the import tariff on cars will be reduced from the current 110% to 10%. Although this reduction will not happen immediately, rather this rule will be implemented gradually in phases. Along with this, a quota of 2.5 lakh i.e. 250,000 cars has been fixed annually, on which this concessional tariff will be applicable. With this, premium and global cars coming from Europe can become more affordable in India than before.

What benefit will Indian customers get?

Till now, due to heavy taxes, cars of European companies like BMW, Mercedes-Benz, Volkswagen, Skoda and Renault were very expensive in India. After the reduction in tariff, a big difference can be seen in the prices of these cars. This will increase the chances of Indian customers getting more options, better technology and premium cars at lower prices.

India-EU trade relations will get strengthened

Bilateral trade has become a strong link in the relations between India and the European Union. The total trade between India and EU in the financial year 2024–25 will exceed US $ 190 billion. During this period, India exported goods worth $75.9 billion and services worth $30 billion to the EU, while the EU exported goods worth $60.7 billion and services worth $23 billion to India. This agreement will open new avenues of growth for both the economies.

This FTA is being considered as the biggest opening ever for India’s auto industry. This will make it easier for foreign companies to launch their models in India, while due to increased competition in the domestic market, customers are expected to get better products. After the implementation of India-EU Free Trade Agreement, India’s auto sector will enter a new phase. Drastic reduction in tariffs may bring down car prices and it may now be easier than ever for Indian customers to buy premium cars.

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Mexico has given a big blow—from January 1, 2026, it is increasing huge import duties on all those countries with which there is no Free Trade Agreement, and India is also included in this list. Mexico’s Senate has approved new tariffs, in which duties on many categories will increase from 35% to 50%. The biggest impact will be on Indian automobile exporters—Mexico is India’s third-largest car export destination, with annual shipments of about $1 billion. Now, due to imposition of such heavy tariff, Indian companies like Maruti Suzuki, Hyundai, Tata Motors, Mahindra and component manufacturers may have to face huge cost pressure and demand slowdown. Steel, plastics, aluminium, chemicals and textile exporters will also be directly affected. These tariffs have been taken to protect Mexico’s domestic industry, to increase revenue, and perhaps for geopolitical balancing (especially US pressure). This step will increase both India-Mexico trade imbalance and supply chain costs. Trade tensions and global export competition are going to intensify. Will India retaliate? Will Indian exporters find alternate markets? This video will explain all the details in easy language.

India’s two-wheeler market has reached a new peak in September 2025. Due to the beginning of the festive season, increased demand in rural areas and the launch of new models, a strong increase in the sales of bikes and scooters was recorded. This month, a total of 24.58 lakh two-wheelers (domestic + import) have been sold in the country, which shows a growth of 14.37% more as compared to August 2025 and 7.85% growth as compared to September 2024, but the biggest surprise is the lagging behind of a big company like Honda and Hero MotoCorp again maintaining its dominance at the number-1 position.

Hero MotoCorp becomes number-1

• Hero MotoCorp once again proved in September 2025 that it is India’s two-wheeler market leader. The company sold the highest number of units this month and left behind companies like Honda, TVS, Bajaj and Royal Enfield. On the other hand, Honda’s sales declined on year-on-year (YoY) basis. It was the only company whose growth was negative in September. Although Honda’s scooter models (like the Activa) are still popular in their category, the decline in bike sales has dragged down the overall figures. TVS Motor and Royal Enfield performed well, with both companies registering double-digit growth in September.

Bajaj and TVS dominate the export market

• The two-wheeler export market also performed better in September 2025. A total of 3.98 lakh units were imported from India this month, which shows a growth of 16.95%. Bajaj Auto and TVS Motor Company together capture about 67% of India’s two-wheeler export market. Both the companies have strengthened their hold in markets like Latin America, Africa and South-East Asia. Hero MotoCorp has also made a better comeback in the field of exports. The company’s exports have almost doubled, while Suzuki has faced a decline in foreign markets.

Tremendous growth in two-wheeler market in September 2025

• According to the SIAM report and industry data, India’s total two-wheeler sales (domestic + exports) are expected to reach 24.58 lakh units in September 2025. This is a big increase compared to last month and last year.

performance of companies

• Hero MotoCorp sold the most two-wheelers and again achieved the number-1 position. The company’s sales increased by 8%. Honda sales have declined. It was the only company whose growth was -3% in September. TVS Motor performed brilliantly and achieved a growth of 12%. The company also registered good growth in the export market. Bajaj Auto’s sales remained stable and achieved a growth of 9%. Bajaj and TVS together capture 67% of India’s two-wheeler export market. Royal Enfield performed record breaking. The company’s growth reached 43%. The demand for its models like Classic 350, Bullet 350 and Hunter 350 was very high. Suzuki also performed well and registered a growth of 24.48%. Sales of its Access 125 scooter and Gixxer series increased, although there was a slight decline in exports.

Why did Honda sales decline?

• There are some big reasons behind the decline of Honda Motorcycle & Scooter India (HMSI). The company did not launch any new model for a long time and remained dependent on the old models. Also, competition from companies like Hero, TVS and Bajaj has increased. The strong hold of Hero and TVS in rural markets is also affecting Honda’s sales. However, Honda is now preparing to enter the new 125cc scooter and electric vehicle segment (EV). The company hopes that this will increase its sales again in the coming months.

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Artificial Intelligence (AI) will not be limited to only chatbott or tech companies in the coming time, but it is going to change the picture of the entire auto industry. A new report states that by 2030, 4-5 crore car deals worldwide will see the impact of Gen AI Assistant. Let us know in detail that this will increase or reduce the sales of companies.

Will the sale of companies be affected?

• According to the report of Openai and Boston Consulting Group (BCG), the vehicle manufacturer companies that will quickly adopt the AI-powered customer experience can increase their sales by 20%. At the same time, companies which will be left behind in adopting this change may have to face revenue loss up to 15%.

Shopping will be easy for customers

• AI-Powered Chatbot and Assistant will act as a neutral advisor for customers in the future. Through them, customers will be able to configure the car of their choice, compare loan options and also book test drives directly. A major impact of this change will be that the brand loyalty of customers will be reduced. Now buyers will compare vehicles only on the basis of practical factors like price, mileage and features and will decide to shop accordingly.

New challenge for auto companies

• The report suggested that auto companies will have to be firmly present on the AI-powered platform to stay connected to customers. For this, she can become part of multi-brand marketplace or launch her own branded AI Assistant. With this, they will be able to give customers a hyper-reclosed Bing Experience and will be able to maintain their identity in the market.

Also helpful in reducing cost

• Let us know that nowadays it happens that customers do not buy them even after taking information about the vehicles. But AI-powered chatbots will be available 24×7 in every language. They will immediately answer questions and help book the test drive. With this, companies will be able to convert maximum inquiry into sales and their cost will also be low. It is clear that by 2030 AI will change the entire auto industry. It will be easy and transparent to buy a car for customers, while companies will have a chance to reduce more sales and costs. But the companies which will delay in adopting this change, they will be left behind in the market.

The central government has improved GST rates, due to which people have received a big gift before Diwali. It is going to be a little easier for people to buy a car and motorcycle, because after the GST cut, the prices of both are getting a decline.

Under the new GST reforms, scooters and bikes up to 350cc have become cheap, while bikes above 350cc will become expensive. GST will be reduced from 28% to 18% on bikes. These GST rates will be applicable from September 22. If you are planning to buy Royal Enfield Bullet 350 in the coming time, then here we are going to tell you how cheap you will get this bike than before?

How much will the price of the bike be reduced?

Royal Enfield Bullet 350 gets 349 cc engine. The ex -showroom price of Bullet 350 is 1 lakh 76 thousand rupees. Currently, 28 percent GST tax is levied on this bike. In such a situation, if this GST tax is reduced by 10 percent, then people are going to benefit from Rs 17,663 on buying this bike.

Power and Mileage of Royal Enfield 320

• The Royal Enfield Bullet 350 is powered by a single-cylinder, 4-stroke, air-oil cooled engine.
• This engine in the bike provides power of 20.2 bhp at 6,100 rpm and 27 Nm of torque at 4,000 rpm.
• The engine of this motorcycle is also installed with a 5-speed concentant mash gear box.
• This bike gives a mileage of 35 kmpl. The fuel tank capacity of this bike is 13 liters.
• Once the tank is full, this motorcycle can cover a distance of about 450 kilometers.

Safety features of bike

• In the braking system of Royal Enfield Bullet 350, discs are found in the front and drum brakes in the rear.
• In terms of safety, an ABS system has been given. Military variants have a single channel and dual channel ABS in Black Gold variants.
• The color option of Bullet 350 includes military red, black, standard maroon and black gold.

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