India’s automotive industry, which contributes 7.1 percent to the country’s GDP, is set for a transformation driven by regulatory changes, including GST 2.0 reforms, customs duty adjustments and the Indo–Japan Free Trade Agreement (CEPA) said a whitepaper by Grant Thornton Bharat and the Indo–Japan Chamber of Commerce and Industry (IJCCI). It highlights how these factors are reshaping the competitiveness of the USD 74 billion auto component sector.

The rollout of GST 2.0 in September 2025 has streamlined tax structures, boosting consumer demand across vehicle segments.

• Tax Rate Changes: Small cars and motorcycles under 350cc now face an 18 percent GST (down from 28 percent plus cess), leading to price reductions. Premium vehicles, including SUVs and high-end motorcycles, now have a flat 40 percent GST.
• EV Support: Electric vehicles (EVs) continue to benefit from a 5 percent GST rate.
• Consumer Response: Following the rate adjustments, the small car segment recorded a surge in vehicle deliveries, with booking volumes rising by nearly 50 percent.
• Supply Chain Incentives: Union Budget 2025 announced customs duty exemptions on lithium-ion battery scrap and critical minerals like lead and copper to secure raw materials and support the EV sector.

Sohrab Bararia, Partner, India Investment Advisory, Grant Thornton Bharat, said, “The convergence of GST 2.0 and targeted customs incentives marks a defining moment for India’s automotive sector. Reduced tax rates, simplified compliance, and supply-chain-focused exemptions will not only elevate India’s cost competitiveness but also strengthen its positioning as a manufacturing and export hub for Japanese automakers.”

The partnership between India and Japan, supported by USD 43.3 billion in Japanese investments, is deepening through trade agreements and skill development initiatives.

• Trade Agreements: The India–Japan CEPA and the India–Japan Digital Partnership (IJDP) are fostering innovation in EVs, connected vehicles and AI-led manufacturing.
• Skill Development: Initiatives like the Japan-India Institute for Manufacturing (JIM) are training over 30,000 Indian engineers to Japanese manufacturing standards.
• Exports: Car exports from India to Japan reached USD 616.45 million in the first nine months of FY2025.

Suguna Ramamoorthy, Secretary General Indo-Japan Chamber of Commerce and Industry, said, “There is significant partnership between India and Japan in the automotive sector, particularly in the realms of hybrid and electric vehicles, and high-precision components. The Free Trade Agreement (FTA) serves as a crucial catalyst for collaboration, joint research and development, and knowledge transfer, further supported by the India-Japan Industrial Competitiveness Partnership (IJICP). Recent initiatives have greatly advanced our automotive collaboration, especially in clean mobility and advanced manufacturing. The implementation of the GST 2.0 reform stands as a boon to Prime Minister Narendra Modi’s Atmanirbhar Bharat programme, fostering an environment conducive to growth.”

The sustained policy alignment under GST 2.0, customs reforms and deeper utilisation of the Indo–Japan FTA are expected to drive competitiveness and technology transfer, accelerating India’s journey toward an innovation-led automotive future.

Image for representational purpose only: Credit Mike van Schoonderwalt/Pexels

Comments (0)

ADD COMMENT

Link Copied!

India Resurgence Fund (IndiaRF), an investment platform promoted by Piramal Finance and Bain Capital, has acquired a majority stake in Fine Edge Engineering, which houses the iron casting and machining business of Ashok Iron Works and its related entities.

Founded in 1974, the Belagavi, Karnataka-based Ashok Iron Works Group manufactures machined iron castings. The company operates four foundries with an annual capacity of 144,000 metric tonnes and seven machine shops capable of producing 600,000 parts per year.

The company manufactures engine blocks, engine heads and transmission housings weighing between 20 kilograms and 5,000 kilograms, with capabilities to machine engine blocks from single-cylinder to 18-cylinder configurations. Its products supply industrial engine, agricultural equipment and automotive manufacturing sectors.

Shantanu Nalavadi, Managing Director, IndiaRF, said, “IndiaRF is excited about the Company’s growth potential and sees significant opportunities to further strengthen its capabilities and scale the business. We will support the business through investments in capacity expansion, R&D, new product development and operational excellence, while building on its long-standing customer relationships. The Company is also well positioned to benefit from growing demand for high-horsepower engine applications, particularly as the global data centre build-out accelerates.”

Jayant Humbarwadi, Joint Managing Director, Ashok Iron Works Group, said, “Over the past four decades, we have built a strong position in the iron casting and machining industry, supported by long-standing customer relationships, strong R&D capabilities and a focus on meeting our customers' evolving requirements. We are a single- or dual-source supplier to most of our customers and are pleased to partner with IndiaRF, whose experience in transforming businesses will support the Company's next phase of growth.”

The transaction provides capital for capacity expansion and research and development activities, while positioning the manufacturing unit to meet supply demands across industrial and high-horsepower engine markets.

Comments (0)

ADD COMMENT

Link Copied!

Automotive tier 1 supplier Uno Minda has announced its financial results for Q1 FY2027, achieving INR 55.57 billion in consolidated revenue, up 26 percent YoY. Last year, the company attained normalised revenue of INR 44.20 billion (i.e. excluding prior period income of INR 690 million) in Q1FY2026.

The EBITDA came at INR 5.72 billion, net profit of INR 2.96 billion, up 24 percent YoY.

This company witnessed growth across its core product offerings, including switches, lighting, alloy wheels, seating, as well as its new-age EV systems and alternate fuel divisions.

Ravi Mehra, Managing Director, Uno Minda, said, “Q1 FY27 reinforces Uno Minda’s strategic trajectory as we continue to outperform the broader automotive market. The ongoing shift toward vehicle premiumisation, connected mobility, and electrification is fundamentally elevating per-vehicle content across segments. By aligning our R&D roadmap with these structural industry shifts and accelerating execution across our new-age platforms, we are not just participating in market growth—we are driving the technological evolution of the vehicle cabin. Backed by disciplined capital deployment and expanding capacity, we are exceptionally well-positioned to lead the next phase of mobility innovation”

Sunil Bohra, CFO, Uno Minda, added, “Q1 FY27 marks a historic milestone for Uno Minda, as we delivered our highest-ever quarterly revenues with 26% YoY growth and a 24% increase in PAT. While we navigated a challenging commodity pricing environment during the quarter, underlying demand across the automotive sector remains strong. Our resilient performance reflects the strength of our technology leadership, product diversification, and focus on operational efficiencies. Driven by multiple growth initiatives, strategic investments, and increasing momentum in our new-age businesses, we remain confident of delivering sustainable, profitable growth while creating long-term value for our shareholders and other stakeholders.”

Comments (0)

ADD COMMENT

Link Copied!

Automotive supplier BorgWarner has secured extensions for multiple high-voltage inverter programs with a European original equipment manufacturer (OEM). The contract covers inverter designs for plug-in hybrid and 800V battery-electric vehicle platforms, with the start of production planned for 2029.

Under the agreement, BorgWarner will supply updated high-voltage inverters for plug-in hybrid vehicles incorporating its Application-Specific Integrated Circuit (ASIC) technology, configured to interface with the OEM's vehicle operating system.

For 800V battery-electric applications, the company will supply traction inverters utilising its Viper silicon carbide (SiC) power switches paired with a dual-sided-cooled power module.

Isabelle McKenzie, President and General Manager, BorgWarner PowerDrive Systems, said, “Extending several high-volume programs at the same time confirms BorgWarner's leading position in power electronics and the strength of our technology, in-house expertise and customer focus. Evolving our inverters generation by generation together with our customers, for both hybrid and fully electric applications, is how we build trusted, long-term partnerships with the world's leading OEMs.”

The inverter families are developed to support power management across both hybrid and electric drive architectures.

Comments (0)

ADD COMMENT

Link Copied!

Automotive cable and shifter manufacturer Remsons Industries has appointed Rahul Prabhakar Desai as its new Chief Executive Officer, effective 3 August 2026. He succeeds Amit Srivastava, whose resignation takes effect at the close of business hours on 4 September 2026.

Desai comes with three decades of experience in automotive manufacturing, including 17 years in executive roles. Before joining Remsons Industries, he was Executive Director and Chief Executive Officer at Pinnacle Industries, overseeing five manufacturing facilities.

He previously served as Chief Executive Officer at CIE India, managing multiple business divisions and ten manufacturing plants, and held leadership positions at GKN Sinter Metals and Inteva Products.

Throughout his career, Desai has managed greenfield plant setups, manufacturing optimisation projects and supply partnerships with original equipment manufacturers. He holds a bachelor's degree in mechanical engineering, a Six Sigma Black Belt certification and has completed executive management training at the Indian Institute of Management Ahmedabad alongside technical programs in Japan and the United States.

Comments (0)

ADD COMMENT

Link Copied!