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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The German Rubber Industry Association (wdk) has expressed deep concern over the widening gap between automotive manufacturers and their suppliers in Germany, a trend observed for the first time since 2025. Managing Director Boris Engelhardt noted that many industry suppliers are fighting for economic survival. While car manufacturers continue to grow, German suppliers are shrinking. Engelhardt condemned automakers for demanding financial concessions from struggling suppliers, warning this threatens their very existence.

For decades, German automakers and suppliers worked hand in hand to achieve global leadership. Engelhardt argues this cooperation is now being abandoned as carmakers shift to cost-driven strategies, jeopardising Germany’s future as an innovative production hub. Since 2019, global disruptions have forced suppliers to reduce capacity while remaining flexible, but limits have now been reached.

Projected write downs of EUR 65 billion for 2025 stem from a lack of technological foresight in government mobility regulations. Engelhardt emphasised these consequences are no surprise, as the association warned more than a decade ago. Yet automakers now demand massive price reductions from shrinking suppliers instead of offering support.

Engelhardt concluded that solidarity is not a one-way street. After years of supplier flexibility, it is now the automakers’ turn to act responsibly. Preserving Germany’s automotive supplier base requires shared burden sharing, not unilateral financial demands from manufacturers.

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Scania has completely reworked its Services 360 portfolio by introducing a dedicated offering for new electric trucks, which now covers every operational need including battery care. At the same time, the company has rolled out flexible coverage plans for second-hand combustion engine vehicles, allowing owners of used trucks to choose from different levels of repair, maintenance and productivity support. This move reflects rising sales in both the new electric and used diesel truck segments.

Originally launched in 2024, the Services 360 portfolio was built around smart flexible maintenance planning and a range of digital tools. It already provided customised packages suited to fleets of any size or powertrain type. Now, Scania has extended Services 360 to include used vehicle customers, who are often more price sensitive. For them, four distinct packages called Core, Plus, Full and Pro are available, offering progressively deeper coverage. Core includes basic fleet maintenance and digital monitoring, while Pro adds proactive and powertrain repairs.

For owners of battery electric trucks, Scania offers the Full package within Services 360. By broadening access to these tailored service levels, the company reinforces its commitment to customer profitability across all business types. This expansion ensures that whether a customer operates new electric trucks or used conventional ones, they receive a competitive and customized service solution designed to keep their vehicles running efficiently and profitably.

Lars Gustafsson, Senior Vice President and Head of Trucks at Scania, said, “We want our battery-electric truck customers to only focus on maximising the use of their vehicles. By offering a single service level – Full – we ensure that every repair, every interaction between systems and every unexpected issue is handled and covered by Scania, giving our electric truck customers all the support they need. We pride ourselves in being close to our customers’ pain points, and extending Services 360 is a way to reach even more transport operators and cover the full ecosystem of needs around their business. No matter the type of powertrain, operation or business sector, the underlying goal of Services 360 is to support the customer and make them more profitable and sustainable for the long term.”

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Bentley Motors has kicked off a new collaboration by introducing Priyanka Chopra Jonas as its latest global brand ambassador. The announcement arrives with a campaign set to launch this weekend. Audiences can expect a complementary film in the near future, featuring the actor and producer speaking openly to the camera about her personal journey, professional milestones and artistic point of view, all supported by a fresh collection of still photography.

The actress now joins an expanding lineup of Bentley’s global representatives. Among them are Co-Creative Directors Greg Williams and Mai Ikuzawa, who were brought into the fold by the British automaker last September. This growing circle reflects the brand’s effort to build connections with influential creative figures across different industries.

For nearly 25 years, Priyanka’s wide-ranging body of work has held the attention of audiences around the world. She is recognised not only as a film industry standout and producer but also as a New York Times bestselling author, entrepreneur and investor. In her role as a UNICEF Goodwill Ambassador, she has become known for championing education and children’s welfare, leveraging her fame to bring about real world change.

Shot in a natural, documentary like manner at Sony Studios in Los Angeles, the upcoming film creates an intimate setting for a conversational back and forth between Priyanka and Greg. Viewers gain a more personal window into her life and creative thinking. She expresses a deep affection for the energy of a working set and the unexpected artistic moments that can arise during a day of performing and producing, with a Bentley Continental GT subtly present throughout the scene.

Priyanka said, “I’ve always been drawn to Bentley’s commitment to craftsmanship and storytelling, because there’s an intentionality behind every detail that feels rare. As someone who lives for the creative energy of being on set, this collaboration felt instinctive. It’s about shared values, but also about a shared appreciation for the process behind what we create.”

Ben Whattam, Marketing Director, Bentley Motors, said, “Priyanka brings a fresh energy and authentic perspective that aligns with Bentley. The film’s relaxed style allows her voice and personality to come through naturally, creating something more authentic than traditional advertising.”

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Maruti Suzuki India Limited has actively advanced gender diversity over the past two years. The company deliberately raised female recruitment for vehicle assembly and engine transmission positions at its Gurugram and Manesar plants. These women handle critical tasks in production and quality assurance, where attention to detail is paramount.

Their training and skill enhancement opportunities mirror those given to male employees, ensuring equal access to career growth. Through this approach, the firm guarantees that women on the shopfloor receive identical on-the-job development and pathways for professional advancement.

Within a single year, Maruti Suzuki brought on over 190 women for its manufacturing floor, pushing its total female workforce across all departments past the 1,300 mark. This steady increase highlights the organisation’s broader commitment to inclusion in industrial operations.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India Limited, said, “We have always had a good representation of women across diverse functions like Engineering, Marketing & Sales, Finance, Legal, Logistics and Supply Chain. However, real integration happens on the shopfloor when they work on building high-quality vehicles with precision and care. It is my personal wish to strengthen women representation at the shopfloor.

“To achieve this mission, we have carefully created an eco-system that supports women at shopfloor. A detailed study was undertaken to understand the requirements, and specific infrastructure changes were made on the shop floor to ensure their convenience and security. Infrastructure such as adequate restrooms, changing area, creche and safety support in the form of guards on duty and patrolling during evening shift were introduced. Furthermore, sensitisation training for other team members was initiated to bring a positive shift in mindset and openness to promote an inclusive work culture. We mandate 100 percent employee participation in POSH (Prevention of Sexual Harassment) training to cultivate sensitisation and a safe work environment.”

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