The voice about India’s car market staring at stagnancy is growing amid much selling by foreign investors in the stock market. Auto sticks of OEMs and suppliers have taken a beating lately. The reasons for stock market decline are said to be structural issues as well as geopolitical issues. In other words, they are local as well as global in their nature. The Indian auto industry – as the largest contributor of GST to the exchequer and among the highest contributor to the country's manufacturing GPD – is also quite local and global in its ways of working. 

Like any other developing nation, it is a market where the scope for an increase in automobile population is bright. It is also a market that is beset by structural issues nonetheless. With 34 cars owned per 1,000 people, the country with a population estimated to be 1,463,865,525 in 2025 has ample scope for auto sales growth. 

But as banks struggle for liquidity and a reduction in repo rate by the apex bank fails to reflect in the reduction of loan interest rates or equated monthly instalments, the structural issues facing the automobile industry are too stark to overlook.

Adding to the structural issues are perhaps developments such as the recent announecement by Maharashtra Government to levy six percent motor vehicle tax on premium electric vehicles. The leading industrialised state also has among the highest road toll taxes among other Indian states. The highway network in the state is among the most lacking and unsafe. Most roads in the state have either deteriorated or are under a seemingly unending period of repairs. 

The state government in its 2025 budget has also announced that it has raised the motor vehicle tax by one percentage point on individual-owned non-transport four-wheeler CNG and LPG vehicles. Such vehicles currently attract a seven to nine percent tax depending on their type and price.

While electricity costs have been rising with distribution companies like MSEDCL pushing for a revision in fixed and energy charges for various categories in order to bridge revenue gap, owning electric vehicles and CNG vehicles is becoming costlier though eco-friendlier.

Attracting over 200 percent in taxes, petrol and diesel prices have been at an all-time high. A timely upward revision in toll prices is only adding further to the cost of motoring in a country where close to or more than 50 of the vehicle purchase price amounts to taxes. Spares are also taxed at a hefty 28 percent and the labour costs have steeply risen post Covid-19 pandemic.

With vehicle prices being jacked up by automakers under the pretext of rising input costs by about four to five percent if not more, the Indian auto industry is clearly under pressure to maintain its margins and stay profitable.

Against the operating costs, the foot falls in the showroom are taking longer to realise into actual sales. Discounts are gaining speed and indicative of sales losing stream in some of the segments that were until recently doing very well.

Any excitement about a rebate in Income Tax up to INR 1,200,000 – it takes over INR 1,000,000 to purchase a decent car in India today – seeming to have faded into thin air, the talk about government announced a reduction in GST taxes has gained speed. When it would actually come into effect is yet to be known but the narrative has started building. The stock market does not look excited however and the money lost by domestic investors may take a long time to come back, it seems.

As US President Donald Trump speaks about exposing India’s ‘wrong’ tariff policies in the absence of any statement from the Indian government striking out his claims, the Indian market for automobiles and other consumer goods looks destined for a rough ride. Stagnancy will be a part of the plot, the repercussions of which would stem from domestic structural issues as well as geopolitical shifts where calls like ‘China Plus One’ hold no value at all anymore.

With the entry of Tesla – which has seen its sales and stock prices plummet in many of existing markets off late – set to enter India with the government lowering tariff under pressure from the US President, the subject of too much regulation needs to be examined in terms of structural strength and the industry’s ability to be competitive. Local manufacture is also a subject that needs to be looked at as MSME sector continues to shrink and take down with it the PMI index.

Skilling is also a subject that should be looked at as engineering courses lose interest with the young in the country. A manufacturing-less economy that is also witnessing the services sector face a slowdown – again due to structural and geopolitical issues – may not spell a good omen for growth in the long run. This, particularly in the case of a country whose median age in 29 years.

China’s ‘Deep seek’ has shown how the prowess in technology can shift overnight and highly influence the economy of a nation, its stock markets suddenly. In India, the auto industry should nurture the MSME sector as much as the government should. A services alternative in terms of growth over manufacturing may not hold forth in the long-term. Manufacturing exports can shrink abruptly anytime under the shifting regulatory and other market issues in the domestic marketplace and under the shifting geopolitical situations in various parts of the world that also make lucrative export markets.  

Image for representative purpose only. 

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Toyota Kirloskar Motor (TKM), one of the leading passenger vehicle manufacturers, has announced that its participants secured 9 medals at the IndiaSkills National Competition 2025-26.

The cohort achieved 5 Gold, 3 Silver and 1 Bronze medal across seven vocational categories. The competition serves as the primary platform for vocational excellence in India, with participants progressing through district, state and regional levels before reaching the national finals held in Delhi, Bengaluru and Chennai.

In the Mechatronics category, Deepu M S and Jayanth K won gold, while Ganesh P B and Punith Kumar received silver. Shashank S and Abhishek S S secured gold in Robotic System Integration, followed by Chirag G and Vinay M H with silver. In Additive Manufacturing, Pavan B S achieved gold and Harshith K B took silver. Individual gold medals were also awarded to Tejas B S for Auto Body Repair and Punith P for Mechanical Engineering CAD, while Praveen Y H earned a bronze medal in Welding.

The winners will now enter selection rounds for the WorldSkills Competition 2026, which is scheduled to take place in Shanghai, China, from 22 to 27 September. WorldSkills involves young professionals from over 60 countries competing in more than 65 technical skills. Toyota Kirloskar Motors’ participation in these events is part of a broader strategy to train technicians through advanced infrastructure and curricula aligned with international manufacturing standards.

G Shankara, Chief Strategy Officer, Toyota Kirloskar Motor, said, “At Toyota, we believe manufacturing excellence begins with nurturing exceptional talent. The remarkable performance of TKM participants at these prestigious events reflects their ability to excel across diverse skill categories and compete at the highest level. Their achievements embody the spirit of the Skill India Mission – empowering youth, nurturing creativity and fostering innovation. With such milestones, TKM continues to set new benchmarks in skill development and plays a pivotal role in shaping India’s growing talent landscape”

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Cars24 has announced that former Indian cricket captain MS Dhoni has joined Crashfree India, a national road safety initiative, as its Goodwill Ambassador.

The partnership aims to address the high rate of traffic fatalities in India by shifting public focus towards driver accountability and discipline. India currently records the highest number of road deaths globally, with 180,000 fatalities reported in 2024.

Despite possessing approximately 1 percent of the world's vehicles, the country accounts for 11 percent of global road deaths.

The initiative highlights a demographic crisis, noting that 66 percent of those killed in 2024 were aged between 18 and 34. Data indicates that seven in ten fatalities were linked to overspeeding. Through this collaboration, Cars24 seeks to move the conversation beyond annual statistics and integrate safety into the daily mobility habits of Indian drivers.

The programme focuses on behavioural change, suggesting that improved judgment and patience on the road can prevent the majority of accidents.

MS Dhoni, said, “I have spent a big part of my life around cars, bikes, and roads. When you love driving and riding, you also learn to respect them. You understand that control matters, judgment matters, and patience matters. A vehicle gives you freedom, but it also gives you responsibility. On our roads, too many people still see safety as a rule to follow only when someone is watching. That mindset has cost us far too much. We already know what is going wrong. We know how many lives are being lost. We know the habits that put people in danger every day. What we need now is not more excuses. We need more responsibility, more discipline, and more respect for life. Roads may be beautiful, but they come with real risks. As much as we love them, they can be dangerous. We have the data. We know what the problem is. We know what needs to change. The only thing missing is the will to make it a priority. This isn’t something I was asked to do. This is something I decided to do.”

Vikram Chopra, Founder and CEO, Cars24, sad, “Some missions need encouragement. This one needs scrutiny. Crashfree India cannot be built by people who only know how to say the right things. It needs someone who sets a harder standard: someone strict, deeply observant, unwilling to indulge comfortable language and clear enough to call out the truth without softening it. Dhoni is exactly that. He does not mince words and that is one of the most valuable things about him. His understanding of Indian roads is grounded in lived experience rather than theory alone. Years of navigating them have given him insights into driver behaviour, road conditions and the split-second decisions that matter most. Every meeting with him has been inspiring, not in a superficial way, but in a way that leaves you sharper, more serious and less satisfied with easy answers. Dhoni holds us to a higher standard and his involvement challenges us to push this mission further. That changes the seriousness of the work. And that is exactly what this mission needs.”

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The UK government is securing 4,200 jobs following an investment of more than GBP 700 million into the advanced manufacturing sector.

Business Secretary Peter Kyle announced the measures during a visit to Agratas in Somerset, where a GBP 380 million grant was confirmed to support the construction of a gigafactory. The facility, built using British steel, is projected to generate GBP 43 billion in economic growth over 25 years and will include a training unit to provide 300 apprenticeships.

Additional funding includes GBP 47 million for the Battery Innovation Programme to support research and development projects and GBP 190 million for the automotive industry. Of this, GBP 90 million in DRIVE35 funding has been awarded to firms including Nissan and Jaguar Land Rover for prototype development, while GBP 100 million is allocated to suppliers in the North East and West Midlands to assist in the transition to electric vehicle manufacturing.

The UK government is also providing GBP 115.44 million through the Made Smarter programmes to help small and medium-sized enterprises adopt digital technologies such as robotics and artificial intelligence. Furthermore, a GBP 182 million engineering skills package has been implemented to train the next generation of technicians, alongside GBP 1.4 million for autonomous freight and passenger service trials in UK ports.

Peter Kyle, Business Secretary, UK Government, said, “This government is backing the industries of the future by investing in auto firms, SMEs and battery manufacturers across the country - helping to boost economic growth and our resilience, secure jobs and put more money in people’s pockets. In an unstable world, our Modern Industrial Strategy is providing investors the stability and confidence they need to plan not just for the next year, but for the next 10 years and beyond. That is what sets us apart from the rest, and will help ensure advanced manufacturing remains a thriving sector in the UK for decades to come.”

Earl Wiggins, Vice-President of Manufacturing Operations, UK for Agratas, said, “We welcome the UK Government’s investment as we build a battery manufacturing facility that will play a vital role in delivering net zero and strengthening the UK’s position as a global leader in battery manufacturing. This funding will support the development of our Somerset facility, enabling us to produce battery cells for our anchor customer, JLR (Jaguar Land Rover). Over the next year we will have over 2,200 people working on the site, and that growth will continue over the coming years.”

Julian Hetherington, Automotive Transformation Director at the APC, said, “This globally significant investment by Agratas reinforces the UK’s accelerating position in pursuit of road transport decarbonisation through the production of vital high-performance batteries for electrified vehicles. I’m delighted that the ATF has been able to support Agratas in their investment in new facilities, creating secure and highly skilled jobs in this area and across the supply chain.”

Mike Hawes, Chief Executive, Society of Motor Manufacturers and Traders (SMMT), said, “Recent global events have highlighted the need for resilient supply chains, making this new investment in the sector both timely and important. The UK has a highly skilled and innovative automotive industry, but long‑term competitiveness depends on a policy framework that encourages investment. The modern Industrial Strategy provides that forward‑looking support, and today’s announcement demonstrates strong government backing for one of the UK’s most vital industries.”

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Hyderabad-headquartered electric vehicle company Olectra Greentech has launched a new brand identity and tagline, ‘Transforming Everyday’. The update marks the company’s transition from a specialist bus manufacturer to an organisation providing integrated mobility and energy solutions.

The brand repositioning is built upon three operational pillars intended to guide product development and market engagement:

• Pragmatic Futurism: Developing platforms for real-world conditions.
• Accessible Innovation: Ensuring technology remains scalable and usable.
• Trusted Guide: Establishing the company as a partner within the electric vehicle (EV) ecosystem.

The mission statement accompanying the refresh focuses on delivering innovation and execution excellence to create value for stakeholders in the mobility and energy sectors.

The updated visual language reinterprets existing company elements – the Olectra Prism – a central triangle representing structural integrity and direction. The Olectra Universe – a surrounding circle symbolising the ecosystem of stakeholders, infrastructure and cities.

Olectra currently operates with a portfolio that has expanded to include electric trucks and tippers alongside its established bus manufacturing division. The company maintains a manufacturing pipeline primarily serving government sectors.

Mahesh Babu, Managing Director, Olectra Greentech, said, “Olectra’s new brand identity is not just a visual change – it represents our ambition, mindset and the direction we are heading. It ensures that our brand, organisation and long-term strategy are aligned. As we transform from a pioneering electric bus manufacturer to a future-ready, innovation-led organisation delivering integrated mobility and energy solutions, this new identity reflects our core values and our commitment to ‘Transforming Everyday’ across the mobility and energy ecosystem.”

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