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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Maruti Suzuki India Limited has formalised an agreement with Gujarat’s Directorate of Employment and Training to establish Advanced Manufacturing Labs within five Industrial Training Institutes located in Palanpur, Bhavnagar, Surendranagar, Godhra and Dahod. This partnership is structured under the company’s corporate social responsibility framework and directly supports the national Skill India mission.

These specialised labs are engineered to mirror actual shop-floor conditions, offering trainees practical exposure to critical automotive processes including assembly, welding, painting, machining, mechatronics and safety protocols. The overarching goal is to elevate the employability of ITI graduates and cultivate a workforce that is immediately adaptable to the demands of modern manufacturing.

This educational initiative coincides with a massive production scale-up in Gujarat. Maruti Suzuki is preparing to activate a fourth production line at its Hansalpur facility this year, which will boost annual capacity to one million units from the current 750,000. Concurrently, a new manufacturing plant with an additional one-million-unit capacity is under construction in Sanand, positioning the state to eventually host a total annual production volume of two million vehicles.

The company’s commitment to skill development is already extensive, supporting 31 ITIs nationwide in manufacturing trades. The addition of the five Gujarat labs will increase the total count of Advanced Manufacturing Labs to 23 across seven states and union territories. Furthermore, the automaker sustains four Japan-India Institutes for Manufacturing in Gujarat and Haryana, a bilateral initiative designed to generate a robust talent pipeline for the industry.

Rahul Bharti, Senior Executive Officer, Corporate Affairs, Maruti Suzuki India Limited, said, “Maruti Suzuki aligns with the Government of India’s flagship Skill India mission to impart the relevant skill training to create livelihood opportunities for the youth. Through Advanced Manufacturing Labs, we are equipping students with experiential learning and confidence in modern equipment, nurturing professionals who can seamlessly integrate into the evolving automotive ecosystem. We have a robust plan to expand manufacturing operations in the State. Each expansion brings with it a new industrial ecosystem, one that demands skilled and future-ready workforce. The Advanced Manufacturing Labs will play a pivotal role in meeting this latent need and ensuring that talent is ready to meet the industry demands.”

Stuti Charan, IAS, Director, DET, Government of Gujarat, said, “Maruti Suzuki, while being the market leader, has consistently demonstrated its commitment to skill development in India. By setting up Advanced Manufacturing Labs in Gujarat’s ITIs, Maruti Suzuki is bridging the gap between classroom learning and industry requirements. This initiative will empower our youth and strengthen Gujarat’s position as a hub for the automotive sector, in line with Hon’ble Prime Minister Shri Narendra Modi’s vision of Viksit Bharat and Hon’ble Chief Minister of Gujarat Shri Bhupendrabhai Patel’s guidance toward Viksit Gujarat 2047. The momentum and support from Hon’ble Cabinet Minister Shri Kunwarjibhai Mohanbhai Bavaliya, Labour, Skill Development & Employment, Hon’ble State Minister Shri Kantibhai Amrutiya Labour, Skill Development and Hon'ble Secretary Shri Lochan Sahera, Labour, Skill Development are paving the way for future-ready learning skills that match the pace of global development.”

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Spiro, an African electric vehicle (EV) and energy infrastructure platform, has closed its latest funding round at USD 270 million, following a USD 55 million investment from Chinese growth-stage fund NewTrails Capital.

The platform currently operates across seven African markets, with 100,000 electric vehicles deployed and 2,500 smart-swap stations in operation. This capital injection will support the expansion of Spiro's battery-swapping network, industrial footprint and EV infrastructure.

Gagan Gupta, Founder of Spiro and Chairman of Equitane, said, "I would like to thank NewTrails Capital for believing in Spiro’s model and supporting our unique tech, energy and innovation journey. Having deployed 100,000 electric vehicles and 2,500 smart-swap stations across seven active markets, Spiro has firmly moved past the proof-of-concept phase. Partnering with NewTrail Capital’s deeply experienced team marks a powerful new chapter for Spiro as we prepare for the next steps of our pan-African and international expansion."

Yufan Zhang, Founding Partner, NewTrails Capital, added, “We believe Spiro is driving a profound “energy revolution” across mobility use cases in Africa. This represents not only a vast and highly imaginative market opportunity, but also the potential to grow into an infrastructure-like business that creates meaningful commercial, social, and environmental value. In our view, Spiro’s core strengths lie in its deeply localized operating capabilities, vertically integrated supply chain, digitally enabled ecosystem, sound unit economics, and strong ability to scale rapidly. More importantly, Spiro has systematically integrated vehicles, batteries, energy replenishment, payments, and service networks into a solution that is truly tailored to the needs of African users, effectively addressing long-standing structural pain points in the local market.”

Spiro’s consortium of investors also includes FEDA, Impact Fund Denmark, Equitane, Nithio and the Africa Go Green Fund.

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US-headquartered vehicle cockpit and technology company Visteon Corporation has announced the appointment of Gary Hicok to its board of directors, effective 1 July 2026, who is also set to serve on the company’s Technology Committee.

Hicok has nearly 25 years of experience at Nvidia, where he served as Senior Vice President and led the company's automotive, mobile (Tegra) and PC core logic businesses and directed Xbox chip development. He was also involved in developing infrastructure for AI platforms, robotics and real-time computing.

Before his tenure at Nvidia, he held senior positions at Trident Microsystems, Cirrus Logic and VLSI Technology, focusing on PC audio, 3D graphics and system-on-chip (SoC) architectures. He holds a Bachelor of Science degree in Electrical Engineering from Arizona State University and holds 40 U.S. patents.

Francis Scricco, Chair of Visteon's Board, said, "We are delighted to welcome Gary Hicok to Visteon's board of directors. Gary brings a unique combination of automotive, semiconductor and systems leadership experience gained over decades at the forefront of technology innovation. His leadership in building NVIDIA's automotive business and advancing complex computing platforms will provide valuable perspective as Visteon continues to accelerate innovation for software-defined vehicles and next-generation cockpit solutions."

Hicok stated, "Visteon's leadership in digital cockpit technologies, software-defined architectures and AI-enhanced solutions provides a strong foundation for growth. Beyond automotive applications, the company's AI and software capabilities have the potential to address opportunities across a range of intelligent, connected systems markets. I am excited to join the board and contribute to Visteon's continued innovation, growth and value creation."

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Flying Flea, the newly established urban electric mobility brand from Royal Enfield, has officially commenced retail deliveries of its debut electric motorcycle, the FF.C6, in Bengaluru. Alongside the vehicle rollout, the brand has introduced an integrated connected ownership ecosystem and a localised service framework.

The FF.C6 is available in two colour configurations – Storm Black and Flea Green. Flying Flea is utilising a city-by-city rollout strategy, establishing its initial commercial footprint in Bengaluru before expanding to other markets.

The vehicle is positioned with two distinct ownership pricing structures – INR 279,000 (ex-showroom) for the complete motorcycle and the integrated battery pack infrastructure. It can be had as Battery-as-a-Service (BaaS) Tier at INR 199,000, which lowers the initial acquisition cost by unbundling the battery pack from the vehicle chassis, allowing owners to pay for energy utilisation separately.

To support the product rollout, Flying Flea has deployed a decentralised hub-and-spoke service network across Bengaluru to manage both routine maintenance and specialised technical repairs. The Primary Hub located in BTM Layout has a specialised facility that is equipped to handle complex electrical diagnostics, battery health management and advanced technical support.

The spoke centres will act as distributors across various sectors of the city. These touchpoints are optimised for high-throughput routine service, software recalibrations and minor wear-and-tear maintenance.

Flying Flea is leveraging Royal Enfield's existing corporate footprint by establishing dedicated ‘shop-in-shop’ formats inside operational Royal Enfield showrooms and service bays. This integration grants the new brand immediate scaling advantages and extensive service reach.

Additionally, all FF.C6 units are backed by a standard 24x7 Roadside Assistance (RSA) program to provide continuous emergency support to riders.

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