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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Fluid transmission solutions provider Imperial Auto has opened its new Global Technology Centre in Backnang, Germany, expanding its engineering footprint within the European automotive sector.

Situated in the Stuttgart metropolitan area, the facility will function as a hub for technology development, engineering and customer collaboration. The centre is designed to support OEMs and Tier-1 suppliers across passenger cars, commercial vehicles, agricultural machinery, off-highway equipment and mobility applications by integrating European client requirements with Imperial Auto's global manufacturing infrastructure.

Vikram Wagh, Managing Director and CEO, Imperial Auto, said, “Europe is an important market for Imperial Auto, and establishing a dedicated technology centre in Germany is a significant step in our global growth journey. The centre will strengthen our ability to work closely with customers, understand their evolving technology and product requirements, and translate these insights into innovative solutions. Being closer to our customers will enable faster technical responses, more effective collaboration and stronger product development. The Backnang centre will also facilitate the exchange of engineering knowledge, technologies and best practices across our global network, helping us accelerate innovation and deliver reliable, future-ready solutions to customers across markets.”

The Backnang facility will house teams dedicated to product development and technical support, aiming to accelerate decision-making cycles and facilitate joint engineering initiatives between regional clients and the company's central development units.

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Saudi Arabia’s first homegrown brand CEER has revealed its first flagship vehicles, the EXOBOT e-sedan and SUV, during a ceremony led by Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud.

The EVs were showcased at the CEER Manufacturing Complex located in King Abdullah Economic City, marking the initial step in a planned portfolio of 7 vehicle models scheduled for release by 2030.

The EXOBOT models are built on a tri-motor all-wheel-drive electric powertrain architecture. In its highest specification, the powertrain produces 1,111 horsepower and 1,500 Nm of torque.

The e-sedan accelerates from standstill to 100 kmph in a claimed 2.1 seconds with a top speed of 250 kmph, while the SUV reaches 100 kmph in 2.4 seconds with a maximum speed of 210 kmph.

Thermal management systems, termed Halo Cooling, is designed to lower cabin temperatures from 65deg C to 32deg C within 10 minutes. The EV incorporate steer-by-wire technology, reducing steering input angles from 400 degrees to 160 degrees, alongside rear-wheel steering capabilities.

In terms of dimension, the EXOBOT sedan measures 5.26 metres in length, 2.1 metres in width and 1.43 metres in height. The SUV measures 5.02 metres in length, 2.1 metres in width and 1.69 metres in height.

On the outside, it features include a 2.4-metre windshield angled at a 15-degree inclination, three-metre-long Shahin Wing doors that open in a 60cm arc and light signatures comprising 32 individual light elements.

Inside, the cabin contains a 48-inch curved digital display operating at 8K resolution, a 10.4-inch central control screen and an eight-inch rear display screen.

Commercial roll-out will begin with the EXOBOT First Edition, offered in sedan and SUV configurations powered by an 850-horsepower tri-motor setup producing 1,000 Nm of torque.

The EXOBOT utilises a 112 kWh battery pack and an 800-volt electrical architecture, the First Edition delivers an estimated range of up to 670 kilometres for the sedan and 560 kilometres for the SUV, with 10 to 80 percent charging achieved in under 30 minutes.

CEER is targeting a local content ratio of 45 percent for its vehicle supply chain by 2034.

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Tejas Cargo has added a Blue Energy electric heavy-duty trucks to its fleet. The e-trucks will cater to the needs of Dalmia Cement logistics requirements with an eye on reducing the carbon footprint. The deployment underlines the growing need of various industrial sectors such as cement, e-commerce etc. to reduce transportation-related emissions and build a more sustainable supply chain.
As businesses across different industrial sectors look beyond their manufacturing operations to reduce emissions, freight transportation is visited in terms of how it can contribute positively to Scope 3 norms. It makes an important area for action. 
This association between Blue Energy Motors and Tejas Cargo marks a new arrangement that is emerging in the logistics space where vehicle OEMs, logistics providers and end customers look at a sustainable and carbon footprint reducing means to transport the produce. To build an efficient supply chain that is robust and risk averse for the various shifts that are taking place. 
"The logistics sector is undergoing a significant transformation, and sustainable transportation will play a defining role in its future. We are pleased to deploy Blue Energy Motors' electric heavy-duty truck for Dalmia Cement's operations and look forward to contributing to the adoption of cleaner and more efficient freight solutions across the industry," said hander Bindal, Chairman & Managing Director, Tejas Cargo India Limited. 
Anand Mimani, CEO – EV & New Energy Business, Blue Energy Motors, said, "As India accelerates its transition towards a lower-carbon future, decarbonizing freight transportation will be critical to achieving meaningful emissions reductions. Electric heavy-duty trucks are increasingly proving their ability to deliver the performance, reliability and economics required for commercial operations. This deployment is a strong example of how clean mobility solutions can help industries reduce transportation-related emissions while advancing their broader sustainability ambitions."
 

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The Association of Indian Forging Industry (AIFI), the apex body of the Indian forging sector, hosted its 2nd Annual Conference on ‘New Development Trends – Impact on Forging Industry’. The event gathered leading stakeholders to discuss the evolving business environment, the China Plus One opportunity, technology and automation, productivity, manpower, rising input costs and the need for greater resilience and competitiveness.

Discussions stressed that the industry stands at a pivotal moment to strengthen its place in global value chains as companies diversify supply sources. However, it must move beyond traditional manufacturing models by investing in technology, automation, engineering, R&D, skilled manpower, productivity and sustainability. The consensus was that while India has the base, talent and market opportunity, forging firms must build capability to manage uncertainty and deliver higher-value solutions.

Chief Guest Thomas Dose, Managing Director, BMW Group Plant Chennai, highlighted India’s growing global relevance under the China Plus One strategy. He noted that geopolitical turbulence and single-supplier risks are pushing global companies to diversify, giving India a strong chance to become the preferred destination, with customers seeking greater engineering and end-to-end responsibility.

Sunil Javalekar, Chairman, Western Region, AIFI & CEO, S. B. Forgetech Pvt. Ltd., gave the welcome address. Yogesh Thakar, Executive Director, PwC, presented ‘Indian Forging Industry – Next Global Edge’. The memento presentation and vote of thanks were delivered by S Ravishankar, Vice President, AIFI & MD, Super Auto Forge Pvt. Ltd.

A panel on ‘Managing Uncertainty / Challenges to Capitalize on Demand Surge’ was moderated by S Ravishankar, with Vidyashankar Krishnan, CMD, M.M. Forgings Ltd.; Vikas Bajaj, MD, Bajaj Motors Ltd. and Sahil Jain, CEO, Hirschvogel Components India Private Limited. Discussions covered GST, manpower, automation, technology upgrades, investments, training, contingency planning, R&D, productivity, demand management and rising input costs.

The conference reinforced the industry’s significant opportunity as global supply chains evolve. AIFI continues to unite stakeholders, facilitate knowledge exchange and represent the forging fraternity, with a renewed commitment to competitiveness and growth in domestic and global markets.

Addressing the gathering, Yash Munot, President, AIFI & CEO, Varsha Forgings Pvt. Ltd., said, “The Indian forging industry is at an important juncture, with global supply-chain realignments creating significant opportunities for India. At the same time, we must remain prepared to navigate geopolitical uncertainty, rising input costs, technology disruption and changing customer requirements. Our focus must be on increasing productivity, accelerating technology adoption, developing our people and strengthening innovation and sustainability. The opportunity before the Indian forging industry is significant, but we must build the capabilities and competitiveness required to become a stronger and more valuable partner to global customers.”

Thomas Dose, Managing Director, BMW Group Plant Chennai, said, “We believe India should be the Plus One. India has engineering talent, a large market and a very capable forging industry. But China Plus One is not only about supply; we want to see much more partnership from India. Customers are looking for capable partners who can take responsibility, contribute to engineering and development and become part of the development process. India is no longer just a supply chain; Indian companies need to be part of our development. The challenge is to connect the capabilities that are already there, and AIFI has a major role to play in this.”

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