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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The Society of Indian Automobile Manufacturers (SIAM) organised the 6th International Conference on ‘Climate Action: Accelerating India’s Transition to a Low-Carbon Future’, to mark World Environment Day.

The forum brought together automobile policymakers, industry CEOs, academic researchers and sustainability experts to detail decarbonisation pathways across the entire automotive value chain.

The conference emphasised that for a market as diverse as India, no single technology will satisfy the country's net-zero roadmap. Instead, progress relies on the parallel maturation of vehicle electrification, alternative bio-fuels, circular material economies and green factory manufacturing.

The transport sector was highlighted as a focal point for reinforcing India's domestic energy security and reducing its macro-economic reliance on volatile fuel imports. Government and industry speakers mapped out a multi-fuel ecosystem designed to transition the country toward localised and clean energy pathways.

While the three-wheeler category is experiencing a fast transition driven by favourable unit economics, panellists called for accelerated adoption curves within the four-wheeler and public transport segments, specifically via electric buses.

India is actively advancing a wide range of low-carbon fuel alternatives, including biofuels, ethanol and isobutanol blends, flex-fuel configurations, compressed biogas (CBG), liquefied natural gas (LNG/CNG), green hydrogen and synthetic fuels.

Technical pathways involving coal gasification-based fuels are being structurally explored to further diversify domestic supply lines.

Experts noted that tech adoption cannot be driven by immediate costs alone; long-term scale will naturally deflate pricing over the next decade. Crucially, vehicle deployment and localised charging/refuelling networks must expand in tandem.

The conference was segmented into three core technical tracks, evaluating circularity, fuel diversification and manufacturing supply chains.

The first thematic session, ‘Circularity in the Automotive Sector: From Materials to End-of-Life Vehicles,’ focused on circular economy practices across the automotive value chain, including sustainable sourcing, recycling, resource efficiency, and end-of-life vehicle management was addressed by Guest of Honour Dr. Virender Sharma, Member Technical (Additional Secretary to Government of India level), Commission for Air Quality management in National Capital Region and Adjoining Areas. The session was chaired by M S Anand Kumar, Chairperson, SIAM Recycling & Material Groups, and Assistant Vice-President, TVS Motor Company, the session included presentations by Dr. Rashi Gupta, Founder & Managing Director, Vision Mechatronics; Bhuwan Purohit, Executive Director, Rubamin; Dr Swati Singh, Head of Regional Standards, South Asia (UL Standards and Engagements) and Abhijit Sen Roy, General Manager (TS), Indian Oil Corporation Ltd. (IOCL), who shared perspectives on sustainable technologies, EPR frameworks, and circular resource recovery.

The session also included a panel discussion on ‘Building a Circular Automotive Value Chain,’ moderated by Sandeep Kumar Mohanty, Partner, PwC.

The second thematic session, ‘Alternate Fuels for Sustainable Mobility – Diversifying the Energy Mix: Pathways for Low-Carbon Fuels,’ focused on the role of alternate fuels in reducing transport emissions and supporting India’s mobility transition. Chaired by Vikram Gulati, Country Head & EVP – Corporate Affairs & Governance, Toyota Kirloskar Motor, the session included presentations by Dr. Santanu Gupta, Director Technical, Global Biofuels Alliance; Sumit Sarkar, Chief Executive Officer, Chhattisgarh Biofuel Development Authority and Santosh Gurunath, Chief Executive Officer, Umagine Hydrogen, who shared insights on global biofuel trends, agricultural residue-based fuels being developed, and elaborated on hydrogen as a pathway for low-carbon mobility.

A panel discussion on ‘Multi-Fuel Pathways to Achieve Sustainable Mobility,’ moderated by Atul Jairaj, Partner, Deloitte India, brought together Suruchi Bhadwal, TERI and Vedang Pittie, Harinagar Sugar Mills, along with the presenters and session chair. The discussion focused on the role of biofuels, hydrogen and other low-carbon fuels and the policy and infrastructure support needed to accelerate their adoption.

The third thematic session, ‘Decarbonising the Automotive Value Chain: Green Manufacturing and Sustainable Supply Chains,’ chaired by Suneet Deshmukh, Head Operations Excellence, Hero MotoCorp, discussed strategies for reducing emissions across manufacturing operations and supplychain.

The session included presentations by Chaitanya Kanuri, Director E-Mobility, WRI India; Mayur Karmarkar, Managing Director, International Copper Association India and Mohit Jauhari, Head SCM, Shriram Pistons and Rings, who shared insights on copper, critical minerals, rare earth magnets and elaborated on sustainable supply chain practices.

The session also included a panel discussion on ‘Accelerating the Transition to a Low-Carbon Automotive Value Chain,’ moderated by Pratik Shah, Partner, EY Parthenon. The panel brought together Parag Sharma, Stellantis; Lt Col Monish Ahuja (Retd), Punjab Renewable Energy Systems along with the session presenters. They discussed green manufacturing, renewable energy, sustainable sourcing and supply chain decarbonisation.

To actively support India's target of carbon neutrality by 2070 and the Viksit Bharat vision by 2047, SIAM formalized its long-term actions under six targeted environmental and structural initiatives – विद्युतीकरण (Electrification), जैविक पहल (Bio-Initiatives), चक्रीयता (Circularity), गैस गतिशीलता (Gas Mobility), हरित हाइड्रोजन (Green Hydrogen) and सुरक्षित सफर (Safe Journey).

Tarun Kapoor, Advisor to the Prime Minister of India, stated during the opening session, "The transport sector must play a central role in strengthening India's energy security. We cannot continue to depend on large-scale fuel imports and, over time, must move towards fuels that can be produced within the country. While three-wheelers are ready for rapid electrification, we need much faster adoption in the four-wheeler segment as well."

Prashant K. Banerjee, Executive Director, SIAM, added, "We are living through a time of unprecedented challenges, from climate change and air pollution to energy security concerns. But every challenge also creates an opportunity and as the world's largest market for two-wheelers and three-wheelers, India has already demonstrated remarkable progress in sustainable mobility."

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Green SM, the electric vehicle ride-hailing service company of Vietnamese conglomerate Vingroup has officially launched Green SM Limo service in New Delhi, marking its strategic entry into the Indian market.

India represents the company's fifth international territory, following active deployments in Vietnam, Laos, Indonesia and the Philippines.

The inauguration ceremony was attended by prominent dignitaries, including Rao Narbir Singh, Minister for Industries & Commerce, Environment, Forest & Wildlife, Foreign Cooperation, and Sainik & Ardh Sainik Welfare for the Government of Haryana and Dr. Virinder Sharma, Vice-President of the Commission for Air Quality Management. Representatives from the Embassy of Vietnam in India and various strategic industrial sectors were also present.

In its initial phase, Green SM Limo will operate exclusively within key areas of the Delhi National Capital Region (NCR), with plans to scale service coverage incrementally in response to consumer demand. The service features a specialised, single-model electric fleet tailored for premium passenger transport.

The fleet consists entirely of the VinFast Limo Green, a fully electric, 7-seater SUV that produces zero tailpipe emissions. To optimise passenger comfort during business commutes, family trips, or airport transfers, each vehicle is stocked with complimentary drinking water, wet tissues and essential travel amenities. Vehicles are integrated with a proprietary Secure-to-Safe system, which features interior and exterior monitoring cameras, AI-powered driving assists and dedicated emergency support buttons accessible by both the driver and passengers.

Operating under the core service commitment of ‘Ride 5 Star,’ Green SM Limo utilises a team of professionally trained ‘Green Drivers’ instructed in specialised electric vehicle mechanics, defensive driving and hospitality workflows.

Passengers within the active Delhi NCR zones can secure rides through three primary channels:

• The Green SM mobile application (available on the iOS App Store and Google Play).
• A dedicated telephone service hotline.
• Direct street-hailing within valid Green SM operating parameters.

To celebrate its market entry, Green SM is offering a 50 percent discount (up to INR 250) for all rides booked via its official app from 5 June to 11 June 2026.

Coinciding with the brand launch, Green SM inducted five local Indian partners spanning the mobility, travel, technology and service sectors into its Green Alliance Frontier. This global platform is designed to connect eco-conscious commercial enterprises to encourage collaborative cross-market innovation and accelerate localized green transformations.

Nguyen Van Thanh, Global CEO, GSM, said, “India is one of the most important mobility markets in the world. Its scale, rapid growth, and strong spirit of innovation are opening up many opportunities for the future of green transportation. We come to India with respect for the market, confidence in its long-term potential, and a commitment to working closely with local partners. Green SM hopes to bring high-quality fully electric rides to customers, while contributing to broader access to safe, reliable, and more sustainable mobility choices."

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Toyota Kirloskar Motor, a leading passenger vehicle manufacturer, has announced a national partnership with Animation Express for the multi-city Anime India 2026 convention series.

The collaboration is designed to deepen the automaker's brand engagement with Gen Z and millennial demographics by blending automotive showcases with contemporary pop culture.

The partnership will officially kick off with the Delhi edition of the convention, scheduled for 6-7 June 2026, at Yashobhoomi in New Delhi. As one of the country's leading ticketed anime conventions – having drawn over 60,000 attendees across its last two iterations – the event celebrates licensed anime, manga, gaming and Japanese pop culture.

The event will see a live performance by popular Japanese musical artist Yurika and a highly anticipated first appearance in India by veteran Japanese voice actor Inoue Kazuhiko, globally recognised for voicing the character Kakashi in the hit anime series Naruto.

Toyota Kirloskar Motor will deploy an immersive on-ground experiential showcase featuring interactive customer touchpoints and themed vehicle wraps. Toyota will exhibit three of its popular passenger models across the venue: Urban Cruiser Hyryder (Flagship Booth), Toyota Glanza and Urban Cruiser Taisor.

To directly appeal to convention attendees, all three display cars will feature custom exterior wraps inspired by the globally renowned anime franchise 'Attack on Titan'. The flagship Hyryder booth will also drive community engagement through gamified activations, including a stamp rally, a spin-the-wheel game, and a live quiz competition.

Sabari Manohar, Executive Vice-President of Sales-Service-Used Car Business at Toyota Kirloskar Motor, said, “Anime India offers a unique platform to connect with a highly passionate community that strongly identifies with creativity, self-expression and contemporary pop culture. As an innovative, new-age format, Anime India presents an exciting opportunity to engage meaningfully with the Gen Z audiences. Through this partnership, we aim to further position Toyota as an exciting brand that resonates with younger customers by creating engaging and culturally relevant experiences."

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Caterham has announced the appointment of three new official retailers across Europe, strengthening the brand’s presence in key markets. Caterham Noville in Switzerland, Caterham Barcelona in Spain and Caterham Colmar in France will bring the iconic Seven model closer to driving enthusiasts in their respective regions.

In Switzerland, Caterham Noville joins the Leuba Collection, an organisation known for its dedication to automotive excellence and heritage. Kevin Duffournet, Head of the Collection, will lead his team in providing Swiss customers with expert guidance on the Caterham range along with dedicated aftersales support.

The Spanish expansion sees Hirundo Motors, the team behind Caterham Madrid, launch Caterham Barcelona under CEO Bernardo Bello. The new Catalan showroom aims to grow the Seven’s presence in Spain, deliver the brand’s pure and simple driving experience and serve existing owners with aftersales support.

Meanwhile, France gains Caterham Colmar in the Alsace region, managed by Julien Paques of PJ Sportscars. Leveraging his specialist automotive experience, Paques and his team are well positioned to deliver the pure driving experience for which Caterham is renowned.

Olivier Jouanne, European Territory Manager, Caterham, said, "We are absolutely delighted to welcome Caterham Noville, Caterham Barcelona and Caterham Colmar to our European retail network. Europe continues to be a crucially important market for the brand. By partnering with experienced and highly passionate individuals like Kevin, Bernardo and Julien, we can ensure that our customers receive the exceptional service, expertise and enthusiasm they expect when purchasing a Seven."

Kevin Duffournet, Head of the Leuba Collection (Caterham Noville), said, "We are proud to welcome Caterham within Leuba Collection in Noville and to officially represent such an iconic and authentic British sports car brand in Switzerland. In an increasingly digital automotive world, Caterham remains one of the last brands delivering a truly raw and mechanical driving experience. Our ambition is to develop the brand in Switzerland through a premium customer experience, exclusive events and a true community of driving enthusiasts.

Bernardo Bello, CEO, Hirundo Motors (Caterham Barcelona), said, “After three years operating from Madrid, we are delighted to expand the Caterham brand presence in Spain, starting with Barcelona because of the passion and support from all the Caterham lovers in Spain since we are back in 2023. With this opening, we will be able to offer customers in the Cataluña region comprehensive sales and authorised service together with motorsport and track events. We aim to keep growing our community in Spain by enabling more car lovers the thrill of driving a Caterham and feel first-hand what is like to feel something so pure, simple and fun.”

Julien Paques, Managing Director, PJ Sportscars (Caterham Colmar), said, "We are particularly proud and thrilled to officially represent the Caterham brand in Eastern France and to offer our customers a comprehensive experience, from vehicle sales to authorised after-sales service. Our ambition is to expand Caterham's footprint nationwide – both within our dealership and during enthusiast gatherings, track days or motorsport events. We look forward to sharing with the brand’s enthusiasts the pure joy of driving that makes Caterham legendary."

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