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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ZF Commercial Vehicle Control Systems India Limited (ZF CVCS India) has finalised multi-year supply agreements with three major Indian truck manufacturers for its ESCsmart Electronic Stability Control (ESC) solution. The deals cover 12-volt and 24-volt architectures and are tied to new model launches developed to align with upcoming safety legislation. Local assembly will occur at ZF CVCS India's domestic production hubs, with series manufacturing scheduled to start in the third quarter of 2027.

The regulatory landscape is the primary driver, as Indian authorities have set an October 2027 deadline for mandatory ESC installation on all trucks. With that compliance date approaching, OEMs are securing proven technology partners well in advance, and the nominations reflect a broader industry shift towards active safety adoption ahead of the mandate.

Electronic stability control is globally regarded as a critical tool for preventing rollovers and loss-of-control incidents, with many developed markets already enforcing similar requirements. India's forthcoming regulations represent a meaningful convergence with international norms, and observers anticipate measurable improvements in commercial vehicle accident statistics once the technology becomes standard.

The ESCsmart system is tailored for heavy commercial use, automatically modulating braking and engine torque when sensors detect instability. Its effectiveness in Indian conditions has been validated through deployments on over 60,000 vehicles, while ZF's pedigree includes 20 years of innovation and more than three million global deliveries. The company is providing validation and pre-certification support, positioning the solution as fully compliant with both current and stricter 2027 rules.

Paramjit Singh Chadha, Managing Director, ZF Commercial Vehicle Control Systems India Ltd, said, “As the Indian commercial vehicle industry prepares for the next phase of safety regulations, vehicle stability technologies are evolving from being a differentiator to becoming a fundamental requirement. These business nominations reflect the growing momentum towards advanced active safety systems across the market. With a proven ESC platform, dedicated validation capabilities at our ESC test track and strong local engineering and manufacturing expertise, ZF CVCS India is ready to support OEMs in meeting the upcoming safety requirements with scalable, India-ready solutions.”

Akash Passey, Non-Executive Chairman, ZF Commercial Vehicle Control Systems India Ltd and President – ZF Group in India, said, “We are proud of the confidence our customers have placed in ZF CVCS India and the partnerships we have built. As India enters a defining phase in commercial vehicle safety, OEMs are increasingly prioritising proven technologies that enhance vehicle stability and deliver meaningful safety outcomes at scale. These nominations reinforce ZF CVCS India's leadership in active safety and our readiness to support the industry's transition through proven technology, local manufacturing, advanced validation capabilities and ZF's global expertise in electronic stability control.”

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Delhi-NCR-headquartered alternative energy vehicle company Omega Seiki Mobility has successfully secured strategic funding from Securocorp Securities, Sangeeta Pareekh, Saket Aggarwal Family Office and Vanshika Sharma in New Delhi.

The funds will be deployed to expand manufacturing capacity at production facilities in Faridabad and Pune, strengthen research and development, enhance the dealer network and accelerate electric mobility solutions following Delhi's EV Policy 2026.

Dr. Uday Narang, Founder & Chairman, Omega Seiki Mobility, said, "This investment reflects the confidence investors have in our vision, execution, and long-term strategy. Over the last eight years, we have built a company grounded in manufacturing excellence, innovation, and financial discipline. As India's EV market enters its next phase of growth, we remain committed to delivering sustainable mobility solutions while creating long-term value for our customers, partners, and investors."

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European automaker Stellantis has appointed Tianshu Xin to lead its China and Asia-Pacific region, effective 3 August 2026. He will report to Stellantis CEO Antonio Filosa and join the Stellantis Leadership Team, while continuing to serve as CEO of Leapmotor International.

On the other hand, Gregoire Olivier has been appointed strategic advisor, reporting to Xin.

Furthermore, Pablo Di Si has been named Chief Performance Officer, effective 3 August 2026. Reporting directly to Antonio Filosa, Di Si will lead execution of Stellantis’ ‘Value Creation Program’ to deliver business targets.

Antonio Filosa, CEO, Stellantis, said, “Tianshu Xin and Pablo Di Si bring deep global leadership experience, operational discipline and proven records of building strong teams and driving performance in highly competitive markets. Their appointments strengthen our leadership team as we sharpen execution, accelerate value creation, and continue positioning Stellantis for long-term success across regions and functions. I also want to thank Gregoire for his leadership and look forward to working together as he takes on his new role.”

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  - Rishi pandey July 25, 2026 15:23 PM

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Sona BLW Precision Forgings has signed definitive agreements with DENSO Corporation to establish two joint ventures aimed at developing, manufacturing and marketing electric and hybrid powertrain systems.

The partnership involves two strategic joint ventures tailored to different vehicle segments. The first joint venture focuses on high-voltage liquid-cooled traction inverters, traction motors and generators for passenger vehicles and commercial vehicles, with DENSO holding a 51 percent equity stake and management control and Sona Comstar holding 49 percent.

The second joint venture targets air-cooled traction inverters, traction motors, generators and e-axles for two-wheelers and three-wheelers, where Sona Comstar retains a 51 percent stake and management control and DENSO acquires 49 percent through a subsidiary structure.

Vivek Vikram Singh, MD and Group CEO, Sona Comstar, said, “We have always believed that the future of mobility will be defined by companies that continuously invest in innovation, product development and industrialization of advanced technologies. This partnership marks an historic milestone in Sona Comstar’s journey as a mobility technology company and reflects the capabilities we have built across advanced electric powertrain systems over the years. DENSO is a company we have immense respect for, as they have been at the forefront of automotive innovation globally for decades with deep expertise in electrification technologies. We are honored and delighted to partner with DENSO to bring together the complementary strengths of both companies and build advanced electric and hybrid powertrain solutions for four-wheelers and larger vehicle applications. This partnership will also accelerate the growth of our existing electric powertrain business for two and three-wheelers by strengthening our capabilities across the powertrain value chain and enabling us to serve a broader set of customers.”

Tsuneo Maebara, Head of Powertrain Systems Business Group, DENSO Corporation, said, “The electrification of mobility represents a major transformation that will continue to evolve in response to the diverse needs of customers and society across the world. India, in particular, is an important region where diverse forms of mobility coexist and electrification is advancing at significant scale. Sona Comstar is a mobility technology company with a global business presence, serving a broad range of customers, and having boldly transformed itself alongside the rapid evolution of the mobility market – from conventional vehicle technologies to solutions for both two- and three-wheelers and passenger electric vehicles. Through this partnership, we will bring together the respective strengths that both companies have built over the years to provide electrification solutions that address the diverse needs of customers in India. By harnessing new competitive strengths created through synergies across the two companies’ products, technologies and business foundations, DENSO will further advance and accelerate its electrification business. We will also build on the outcomes achieved in India to deliver value that meets a broader range of customer needs in the future.”

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