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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Italian automotive brand Automobili Lamborghini has announced that Fermin Soneira will join the company on 1 July as the new head of Research & Development and Motorsport. He succeeds Rouven Mohr, who has been appointed Chief Technical Officer of Audi AG.

Soneira brings extensive international and technical experience to his new role and till recently, he served as CEO of the Audi and SAIC Cooperation Project in Shanghai, developing a new brand and platform for the Chinese market.

 Born in 1972 in Spain, he holds a Master’s degree in Mechanical and Automotive Engineering. He began his career at Audi AG in chassis development before spending 12-years at SEAT, where he led chassis and vehicle engineering. Upon returning to Audi in 2014, he directed product and electrification strategy and later served as Head of Global Product Marketing. From 2020, he oversaw the product lines for several electric models, including the Q4, Q6, Q8 and A6 e-tron series.

Mohr leaves Lamborghini after serving as Chief Technical Officer since January 2022. He oversaw the technical transition to hybrid power for the Revuelto, Urus SE and Temerario. He was also managing the development of the SC63 for endurance racing, as well as the upcoming Temerario GT3 and Super Trofeo.

Stephan Winkelmann, Chairman and CEO, Automobili Lamborghini, said, “On behalf of the entire company, I would like to sincerely thank Rouven Mohr for his outstanding dedication and leadership over the past years. His contribution has been instrumental in shaping Lamborghini’s technological path, particularly in the transition towards hybridisation. At the same time, I am pleased to welcome Fermín Soneira to Lamborghini. With his extensive international experience, technical competence and strategic vision, he will further strengthen the brand’s success and drive our future innovation.”

Fermín Soneira, added, “It is a great honour to join an iconic brand such as Lamborghini, which has contributed to writing the history of the automotive industry, performance and design. I look forward to working with the team to further elevate the brand’s technological excellence and driving experience.”

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Maruti Suzuki India has announced that its staff contributed 2,600 hours to the eParivartan initiative during FY2025–26.

The programme involved 1,100 employees who participated in 30 activities focused on health, community care, and education.

In the health sector, employees took part in four blood donation sessions at company sites. Staff also used kits to build wheelchairs for donation to care centres and provided food, medicines, and toiletries to residents of shelter homes. Companionship programmes were established to connect volunteers with elderly and underprivileged individuals.

Education efforts included hosting students from underprivileged backgrounds at the Manesar manufacturing plant to observe production processes. Volunteers also provided support to students with visual impairments by distributing Braille kits and held art sessions for children with disabilities. A 'Wish Tree' project resulted in the provision of stationery and bags to 300 students. Additionally, employees painted 1,400 square feet of wall space at schools in Manesar and Gurugram to update learning environments.

Rahul Bharti, Senior Executive Officer, Corporate Affairs, Maruti Suzuki India, said, “At Maruti Suzuki, we believe progress is meaningful only when it is shared with the communities around us. We are happy to share that in FY 2025–26, over 1,100 Maruti Suzuki employees volunteered more than 2,600 hours, supporting more than 8,700 people in education, healthcare, or companionship. We don’t know how much difference we have made to the lives of these people, but we do know that the Maruti Suzuki volunteers have found it an immensely fulfilling, soul-warming, and life-changing experience.”

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JSW Motors, the new energy passenger vehicle division of the JSW Group, hosted its first Supplier Partner Conference & Tech Show at its manufacturing facility in Bidkin, Chhatrapati Sambhajinagar, Maharashtra.

Organised in collaboration with the Automotive Component Manufacturers Association of India (ACMA), the event brought together over 100 auto-component business houses. The conference serves as a strategic precursor to JSW Motors' upcoming entry into the Indian passenger vehicle market, focusing on building a localised, resilient and ‘glocal’ supply chain for its new energy vehicle (NEV) programs.

The conference highlighted JSW Motors' commitment to domestic value creation as it prepares for its first vehicle rollout later this year.

The Bidkin facility in the Aurangabad Industrial City (AURIC) is positioned as the primary production hub for JSW’s independent EV and hybrid lineup, separate from its joint venture with MG Motor.

The Tech Show showcased innovations in automotive design and next-generation manufacturing, encouraging technical licensing agreements (TLAs) between local suppliers and global technology partners.

Ranjan Nayak, CEO, JSW Motors, said, “At JSW Motors, we believe that building world-class mobility solutions requires a strong and future-ready supplier ecosystem. The first ever Supplier Conference & Tech Show reflects our commitment to collaborative growth, technology excellence and supply chain resilience. JSW Motors is months away from its first launch. The conference we're holding today is a signal of how seriously we take localisation and how seriously we take the partners we're building with.”

Vikrampati Singhania, President, ACMA, said, “This initiative marks an important step towards building a future-ready and resilient mobility ecosystem in India. As the industry transitions towards new energy vehicles, the role of suppliers becomes increasingly strategic, requiring early alignment on product roadmap, technology direction and scale to enable timely investments and capability development. We are encouraged by JSW Motors’ strong commitment to collaboration and localisation, which will be critical in strengthening the domestic value chain and enhancing the global competitiveness of India’s auto component industry.”

The event aligns with JSW Motors' broader strategy to disrupt the Indian NEV segment with a mix of high-tech SUVs and premium models.

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Michael R Bloomberg has announced a new USD 350 million investment towards Bloomberg Philanthropies Initiative for Global Road Safety, including the Bloomberg Initiative for Cycling Infrastructure, aimed at saving one million lives over the next five years through improved road safety policies and cycling infrastructure.

The announcement, made at CityLab 2026 in Madrid, brings the total funding for the Bloomberg Philanthropies Initiative for Global Road Safety (BIGRS) to USD 865 million since 2007. The initiative focuses on high-impact interventions to combat the more than one million annual road traffic deaths reported by the World Health Organization.

The new funding will scale proven interventions across 13 countries and over 30 cities, with a specific focus on high-risk regions in Latin America, Africa and Asia.

• Cycling Infrastructure (BICI): A global competition will select 25 cities for technical training, with 10 finalists receiving USD 400,000 each to implement safe cycling networks. The goal is to reach 15 million people with improved bike lanes.
• Policy & Enforcement: Continued support for national and city-level policies targeting speeding (a factor in 50 percent of fatalities) and new research into distracted driving.
• Vehicle Safety: Expanding safety standard improvements to more car models across emerging markets.
• Urban Transit: Promoting government investment in Bus Rapid Transit (BRT), cited as the safest urban transport method.

In India, the initiative will specifically target Delhi, Karnataka State and Maharashtra State (with an emphasis on Mumbai and Pune). To accelerate progress, the program uses a ‘mentor city’ model where regional leaders like Bogota, Ho Chi Minh City and Addis Ababa provide peer-to-peer support to neighbouring municipalities.

Michael R. Bloomberg, said, “Road crashes don’t receive enough attention, even though they take a staggering toll on human life and health – and so many of the injuries and deaths are preventable. At Bloomberg Philanthropies, we’ve long recognized the urgency to improve road safety and the important role that improved cycling infrastructure can play. This major new investment will expand and accelerate the lifesaving progress we’ve made bringing proven interventions to streets around the world.”

The initiative which begin in 2007 has established a strong track record of measurable outcomes including nearly 900,000 lives saved through the passage of 190 policies.

Over 2,400 dangerous intersections redesigned and 200 miles of bike lanes built. Nearly 80,000 traffic police trained across 22 countries and anticipated reduction of 97,000 tons of CO2 emissions by 2040 through increased cycling.

The program will also produce the world’s first comprehensive guide for safe cycling infrastructure, establishing new international design standards to supplement the Global Street Design Guide.

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