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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Hyundai Motor India Limited (HMIL) has facilitated a landmark achievement in accessible mobility through its ‘Samarth by Hyundai’ initiative. The company supported international para-athlete Chandeep Singh in completing a record-setting cross-country drive spanning over 7,000 kilometres. The expedition, undertaken in a specially modified Hyundai CRETA, saw Singh successfully traverse from Kashmir to Kanyakumari and back to the starting point.

This arduous journey stands as one of the longest transcontinental drives ever undertaken by a para-athlete in India. The customised vehicle proved instrumental as Singh traversed a vast array of challenging terrains and severe climatic conditions. His successful completion of the route not only demonstrated exceptional personal endurance but also served as a powerful testament to the principle that mobility solutions should enable all individuals to chase their goals without barriers.

Consequently, Singh’s feat has earned him a distinguished place in the Golden Book of Records. Beyond this personal victory, the expedition solidifies HMIL’s ongoing dedication to social progress and inclusive mobility. Through ‘Samarth by Hyundai,’ the company continues to champion interventions that improve accessibility, ensure equal opportunities, and empower persons with disabilities.

Virat Khullar, Head – Marketing, HMIL, said, “At Hyundai Motor India, we believe mobility is about empowering people and enabling possibilities. Through our ‘Samarth by Hyundai’ initiative, we are committed to creating a more inclusive and accessible ecosystem where every individual can dream bigger and achieve more. Chandeep Singh’s remarkable journey is a powerful testament to the indomitable human spirit, resilience and determination. We are honoured to have supported him in this historic achievement, which not only finds a place in the Golden Book of Records but also inspires millions across the country to redefine what is possible.”

Singh said, “Completing this 7,000+ km drive from Jammu to Kanyakumari and back, and securing a place in the Golden Book of Records, is a dream realised through years of relentless preparation, grit and belief. This journey was never just about setting a record; it was about showing every person that with determination, the right support and accessible technology, no destination is out of reach. The specially adapted Hyundai CRETA performed flawlessly across every terrain, truly becoming an extension of my body and spirit. I am deeply grateful to Samarth by Hyundai for believing in my vision and helping turn what seemed impossible into a reality for India. Furthermore, I am also grateful to Hyundai dealership network for their unwavering support throughout this remarkable journey.”

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The Automotive Skills Development Council (ASDC) has appointed Prasanna Pahade as its Chief Executive Officer. He comes with over 25 years of operational experience across the automotive, logistics, manufacturing and engineering sectors. He succeeds Arindam Lahiri, who held the post of Chief Executive Officer at the organisation from 2019.

Pahade graduated with a degree in mechanical engineering from the College of Engineering, Pune in 1996 and holds a postgraduate diploma in management from IIM Calcutta. His career includes management positions at Mahindra Logistics, Tata Strategic Management Group and Voltas, as well as founding the startup Making Champs.

Vinkesh Gulati, Chairperson of ASDC, said, “Prasanna Pahade brings a strong combination of strategic vision, business leadership and operational excellence. His diverse industry experience will help ASDC strengthen its role in preparing a future-ready workforce and deepen collaboration with industry, academia and government as India's mobility ecosystem continues to evolve.”

Prabhu Nagaraj, Vice Chairperson of ASDC, said, “The automotive industry is witnessing unprecedented technological change, and skilling will remain central to sustaining its growth. We are confident that Prasanna's leadership will accelerate innovation, expand industry partnerships and further strengthen ASDC's contribution to the Skill India Mission.”

Rama Shankar Pandey, Treasurer, ASDC, said, “Prasanna Pahade's extensive industry experience and leadership will further strengthen ASDC's efforts to build a skilled, future-ready automotive workforce. We look forward to expanding our impact through stronger industry collaboration and innovation in skilling.”

Pahade said, “I am honoured to join ASDC at a time when India's automotive industry is undergoing unprecedented transformation. My focus will be on strengthening industry-led skilling, fostering innovation, building stronger partnerships with industry and academia, and preparing a future-ready workforce that supports India's ambition of becoming a global leader in mobility and automotive manufacturing.”

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Sona Comstar, in partnership with Tata STRIVE, has opened a vocational training facility in Chakan, Pune.

The Sona Comstar–Tata STRIVE Skill Development Centre was inaugurated by Priya Kapur, Non-Executive Director of Sona Comstar and Chairperson of its Corporate Social Responsibility (CSR) Committee.

Located within the Chakan industrial cluster, the facility aims to train 220 individuals during FY2026–27. The centre offers instructional programs in computer numerical control (CNC) machine operations, electrical maintenance and banking, financial services & insurance (BFSI) roles to match workforce requirements in local manufacturing and service sectors.

The Chakan project expands an existing skill development initiative between Sona Comstar and Tata STRIVE, following the establishment of a similar facility in Chennai. The Chennai centre has provided training to 623 individuals, recording an 80 percent job placement rate and 42 per cent female participation.

Priya Kapur said, "Every young person I met had a different story to tell. Different struggles, different ambitions, but the same dream of building a better future. It was inspiring to hear their journeys and learn what brought them here. Skilling is about much more than employability. It equips young people with the confidence, dignity and practical skills to build better livelihoods. Partnerships like the one between Sona Comstar and Tata STRIVE demonstrate how industry can play a meaningful role in preparing young people for the jobs of tomorrow. I hope the Chakan centre becomes a launchpad for hundreds of such journeys."

The facility will conduct continuous technical training, faculty interactions and industry placement assistance to facilitate employment across manufacturing plants and corporate entities operating in the Pune region.

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Toyota Motor Corporation-owned luxury brand Lexus has introduced Lexus Flight, a helicopter transportation service operated by Aero Toyota Co, with operations scheduled to commence from 24 August 2026.

The service expands the brand's product offerings beyond ground vehicles and maritime vessels into air transport. The operational structure combines road transfers in Lexus vehicles between passenger departure points and heliports, flight connections between cities and resort locations aboard helicopters and marine transport options utilising the LY680 yacht.

The service utilises the Leonardo AW169 helicopter, manufactured in Italy, which accommodates seven passengers. The aircraft measures 14.65 metres in length, 3.21 metres in width and 4.56 metres in height, powered by two Pratt & Whitney Canada PW210A1 turboshaft engines. The twin-engine helicopter reaches a maximum cruise speed of 267 kilometres per hour and maintains an operational range of 785 kilometres.

Cabin specifications for the aircraft include Wi-Fi connectivity and an onboard tablet interface allowing passengers to control climate settings, interior lighting, flight map tracking, exterior camera feeds and entertainment systems.

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