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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Austrian cleantech startup REPS has raised USD 23.6 million in an equity financing round to scale its patented Road Energy Production System. The technology integrates into existing road infrastructure to capture kinetic energy from moving vehicles and convert it into electricity.

The system is designed to install directly into road surfaces without disrupting traffic flow. It targets high-traffic locations where vehicles naturally slow down, brake or experience forces from slopes, such as ports, logistics hubs and industrial sites.

According to the company, the mechanical energy lost through traffic could theoretically address around 5 percent of global electricity demand. The technology features a converter built on a permanent magnetic bearing combined with electromagnetic induction, which operates without conventional mechanical friction and conventional wear.

REPS has been running its first commercial system at the Port of Hamburg since November 2025. Over a 6-month period, more than 115,000 trucks crossed the system, generating over 6,700 kWh of electricity under real traffic conditions. Following the deployment, the company has engaged with over 90 parties across the port industry in Europe, the Middle East, Asia and North America.

Internal projections suggest that installing 230 systems on public roads across the Port of Hamburg could generate 10 GWh of electricity annually, offsetting nearly 10 percent of the CO2 emissions caused by port traffic.

Alfons Huber, Founder and CEO, REPS, said, “Roads are everywhere. Traffic is everywhere. What was previously wasted energy can now be transformed into clean electricity through REPS. We spent six years developing the technology. Now the scaling phase begins. The strong demand from ports and logistics operators worldwide confirms the need for our solution, and with this financing round we can now scale at the speed required by the energy transition.”

Justin Karnbach, CEO, Hamburger Container Service, added, "The installation at our facility demonstrates the potential of REPS: where vehicles have to brake anyway, clean energy is recovered and can be used directly where we need it. Without any interference with traffic and without additional space."

Jens Maier, CEO, Hamburg Port Authority (HPA) and President of the International Association of Ports and Harbors, noted, “We can't wait to see REPS in action - not just in the Port of Hamburg, but throughout the city and far beyond, all over the world. The Port of Hamburg aims to achieve climate neutrality by 2040. HPA actively supports this ambition by implementing innovative technologies. REPS is a future-orientated technology that generates electricity from previously unused energy sources, making a significant contribution toward achieving climate neutrality. With its high volume of truck movements and its role as a central logistics hub, the Port of Hamburg offers ideal conditions to test technologies like REPS under real-world conditions.”

Elisabeth Zehetner, State Secretary for Energy, Startups and Tourism, Austria, said, “Start-ups are no longer a side topic, they are the innovation lab of our economy. This is where technologies like REPS from Austria are created. REPS is innovation made in Austria and showcases what our founders are capable of: they don’t just make small adjustments; they transform entire systems. A road becomes a power plant, and existing infrastructure becomes a building block for a sustainable future. Our role in politics is clear: we must ensure that start-ups find the right framework conditions in Austria. With the Start-up Umbrella Fund, we aim to make sure that innovation is financed, developed, and scaled here in Austria and Europe instead of eventually returning to us as an import from the U.S. or Asia”

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LTM, an AI-centric global technology services company and part of the Larsen & Toubro Group, has issued an offer to acquire Randstad’s Technology and Consulting Services business across France, Germany, Belgium, Luxembourg and Australia.

The transaction represents more than USD 500 million (EUR 469 million) in annual revenue and is intended to scale domain-driven solutions and AI services within these regions.

The proposed acquisition will expand LTM’s market presence in the aerospace, defence, automotive, utilities and banking and financial services (BFS) sectors. The integration is expected to bring localised domain expertise and regional capabilities in digital engineering, cybersecurity and the Internet of Things (IoT). These operations will be supported by onshore and nearshore delivery centres located in Romania and Portugal.

The transaction is part of a broader collaboration between the two companies. This includes a five-year IT services partnership to drive AI-enabled transformation for Randstad’s Global Capability Center in India, alongside a strategic talent Managed Services Provider (MSP) agreement to support LTM’s expanding workforce.

The acquisition will be executed through LTM’s wholly owned subsidiary, LTIMindtree UK and remains subject to regulatory approvals and customary closing conditions.

Venu Lambu, CEO & MD, LTM, said, “The proposed agreement is aligned with our five-year strategy to build a more resilient, diversified, balanced portfolio. By combining our global AI-centric capabilities with local context and industry depth, this acquisition would strengthen our ability to deliver compliant, domain-driven AI services and sovereign solutions in markets that are strategically important to us. This 360°partnership with Randstad would be a key step forward in our growth journey.”

Sander van ‘t Noordende, CEO, Randstad, added, “The proposed agreement marks a deliberate step in our Partner For Talent strategy. By partnering with LTM, we would ensure our clients continue to receive world-class services while we streamline our portfolio to invest in growth segments and digital marketplaces that offer the most scale and value. We are equally excited to partner with LTM in India, where their AI expertise will be instrumental in evolving our digital capabilities.”

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European auto major Stellantis has unveiled its FaSTLAne 2030 strategy, which will see it invest around EUR 60 billion over the course of the next five years.

The aim is to accelerate growth and profit, prioritising customer centrality and capital allocation across its global regions and brands.

Antonio Filosa, CEO, Stellantis, said, “FaSTLAne 2030 is the result of months of disciplined work across the Company and is designed to drive long-term profitable growth. With the customer at the centre of everything we do, the plan will deliver our purpose – ‘to move people with brands and products they love and trust’ – powered by our unique combination of strengths.”

The strategy focuses on an overhaul of the brand portfolio to improve capital efficiency, leading to more than 60 vehicle launches and 50 refreshes by 2030. The company will direct 70 percent of its product investments towards its four global brands – Jeep, Ram, Peugeot and FIAT – and its commercial vehicle unit, Pro One.

Its regional brands, including Chrysler, Dodge, Citroen, Opel and Alfa Romeo, will share global assets, while DS and Lancia will be managed as specialty brands. Maserati will add two vehicles to its lineup.

Filosa noted, “Every brand in Stellantis will play a clear role in delivering our FaSTLAne 2030 commitments.”

Stellantis will allocate over EUR 24 billion to global platforms, powertrains and technologies, including the new STLA One architecture. By 2030, half of its annual volumes will be produced on three global platforms. The company will also deploy its software and autonomous driving architectures – STLA Brain, STLA SmartCockpit, and STLA AutoDrive – starting in 2027.

The plan incorporates new and expanded corporate partnerships to access markets and share manufacturing capacity.

Through Leapmotor International, Stellantis will share capacity at its Madrid and Zaragoza plants in Spain. A joint venture with Dongfeng will produce Peugeot and Jeep models for China, while a European joint venture with Dongfeng will handle distribution and capacity sharing at the Rennes plant in France.

Stellantis is also working with Tata Motors to improve supply chain synergies in the Asia-Pacific, Middle East, Africa and South America regions, and will explore technology collaboration with Jaguar Land Rover in the United States.

Manufacturing capacity utilisation will be adjusted across regions, with European capacity expected to decrease by more than 800,000 units to raise utilisation from 60 percent to 80 percent by 2030. US capacity utilisation is also projected to reach 80 percent by 2030.

To improve execution, Stellantis aims to reduce vehicle development cycles to 24 months and implement a Value Creation Program to cut annual costs by EUR 6 billion by 2028.

“The success of FaSTLAne 2030 is built upon the great talent and strong commitment of our Stellantis team. We will execute as one team, hands-on, to deliver incremental, profitable growth for the benefit of all our stakeholders,” added Filosa.

Regional targets under the plan include 25 percent revenue growth in North America, supported by 11 vehicles. Enlarged Europe targets 15 percent revenue growth, featuring a new generation of electric vehicles built at the Pomigliano d'Arco plant in Italy. South America aims for 10 percent revenue growth via a pickup offensive, while the Middle East and Africa targets 40 percent revenue growth through local manufacturing. The Asia-Pacific region will focus on asset-light growth to support export requirements.

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Eicher Motors (EML) and the Volvo Group have announced their intent to form a new 50:50 joint venture to provide financing, leasing and other financial services in India.

The partnership will be established through EML acquiring a 50 percent stake in Volvo Financial Services (VFS) India. Eicher Motors' board has approved an investment of up to INR 7.5 billion to subscribe to the equity stake. The exact investment amount will be finalised upon the closing of the transaction, which is subject to regulatory approvals.

The new joint venture will serve as the captive financing arm for products from Volvo Eicher Commercial Vehicles (VECV), Eicher Motors, Volvo Group and Royal Enfield. By combining VFS’s global financial services expertise with Eicher’s local market knowledge, extensive dealer network and product portfolio, the venture aims to offer more accessible and streamlined financing solutions to customers.

Siddhartha Lal, Chairman, Eicher Motors, said, "Expanding our highly successful 18-year partnership with Volvo Group, Eicher is now entering the vehicle financing business in India through a new joint-venture. This JV combines Volvo’s global financial services expertise and Eicher’s local knowledge and network. The JV will serve Eicher, Volvo, and Royal Enfield customers in India and presents an opportunity for EML to operate in an important segment of the value chain, using financing as a lever for a superior customer experience."

Marcio Pedroso, President, Volvo Financial Services, added, "We believe now is the time to sharpen our focus on the Eicher brand as well, with our intended partnership serving as a springboard for bringing innovative financial services and solutions to both current and new customers and dealers, positioning us well to create long-term value in the growing Indian market."

This joint venture builds upon the long-standing collaboration between Eicher Motors and Volvo Group, which has successfully operated Volvo Eicher Commercial Vehicles (VECV) for the past 18 years. VFS India has been operational in the market for over a decade and reported assets under management (AUM) of approximately INR 18.25 billion as of 31 March 2026.

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