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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Hyderabad-headquartered BluJ Aerospace has introduced its Gen 2 prototype electric vertical take-off and landing (eVTOL) vehicle, marking the first commercial-grade assembly developed from its Vantis platform architecture.

The rollout follows four years of internal research and development at the company's 40,000 square foot manufacturing facility in Hyderabad.

The Gen 2 is a fully battery-powered vertical take-off and landing (VTOL) aircraft configured for freight and cargo logistics. It operates with a maximum take-off weight of 500 kilograms and carries an active payload capacity target exceeding 200 kilograms. Employing a lift-plus-cruise design, the model is currently undergoing flight tests to validate subsystem integration, payload distribution and mission metrics for commercial deployments.

The underlying Vantis architecture forms a unified engineering baseline for the airframe, electric propulsion systems, flight controls and autonomous navigation software. Subsystems validated on the initial platforms are transferred directly to future vehicle iterations to manage development costs and accelerate commercial timelines. The company holds a design patent on its eVTOL layout and has submitted utility patent filings for its carbon-fibre airframe and distributed powertrain configurations.

BluJ’s current commercial pipeline encompasses infrastructure transport, express cargo, energy networks, airport freight and defence logistics. The company has finalised a pilot project with a public sector undertaking (PSU) in the power sector and maintains technical partnerships with a defence PSU alongside domestic military supplier.

On the development of its hydrogen-electric powertrains, the firm has completed ground testing of its fuel-cell assembly, which incorporates an internally designed Type IV composite hydrogen storage tank. Long-range hydrogen-electric variants are scheduled for testing between 2027 and 2028. To support this propulsion rollout, BluJ is collaborating with Bharat Petroleum Corporation Limited and Cochin International Airport Limited to outline regional hydrogen refueling infrastructure.

Amar Sri Vatsavaya, Founder and CEO, BluJ Aerospace, said, “The next major shift in aviation is the move from single product programs to platform-based architectures. Just as the automotive industry builds multiple vehicles on a common platform, Advanced Air Mobility will need adaptable architectures that scale across missions, payloads, and customer use cases. That is the advantage VANTIS gives BluJ. Our platform-based approach lets us develop multiple AAM product classes efficiently and at scale."

Sateesh Andra, Managing Director, Endiya Partners, added, “India runs one of the largest logistics economies in the world, but it still moves on aircraft and infrastructure designed elsewhere. Aerial mobility is a rare category where Indian deep-tech can build globally relevant aerospace IP from the ground up, and that needs founders willing to bet years on getting the engineering right. BluJ Aerospace’s Gen 2 flight is proof that the hard work is paying off. From long-range cargo to the regional passenger mobility India needs next, they are building what comes after the runway.”

Naganand Doraswamy, Managing Partner, Ideaspring Capital, said, "Deep-tech categories that compound, from semiconductors to robotics and now aerospace, are won by teams that build platforms, not single products. India has had the engineering talent for decades, but very few teams have applied that platform discipline to aircraft. That is what BluJ has done with VANTIS, and Gen 2 is the first commercial output of an architecture we expect will shape how India shows up in global aerospace over the next decade.”

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Vietnamese automotive company VinFast Auto has appointed Pham Nhat Quan Anh as Chairman of the Board of Directors, effective 23 May 2026. He succeeds Le Thi Thu Thuy, who steps down from the board to focus on her role as Vice Chairwoman of Vingroup, VinFast’s majority shareholder.

The management transition comes as the Vietnamese electric vehicle manufacturer expands its production and sales presence across international markets, including recent factory development and vehicle rollouts in Southeast Asia.

Prior to this appointment, Pham Nhat Quan Anh held the positions of Vice Chairman and Standing Deputy General Director at VinFast Trading and Production JSC.

Since joining the automotive firm in February 2019, his executive responsibilities have spanned vehicle development, manufacturing oversight and quality control, including tenures as Deputy General Director of Global Sales, Marketing & Aftersales and Director of the Planning, Program Coordination and Quality Inspection Division.

Pham Nhat Quan Anh, said, “I am honoured to assume the role of Chairman of the Board of VinFast. VinFast has built a strong foundation over the past several years, and we remain focused on executing the Company’s long-term strategic priorities, advancing innovation, and continuing to strengthen our global operations and customer experience. I look forward to working closely with the leadership team as VinFast enters its next stage of growth”.

Pham Nhat Quan Anh holds a Bachelor’s degree in business management from Singapore Management University. Between 2017 and 2019, he worked within the hospitality sector as Deputy General Director and Deputy Chief Operating Officer of Vinpearl Joint Stock Company, focusing on operational management and corporate strategic planning.

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Chennai-headquartered two-wheeler and three-wheeler major TVS Motor Company has achieved the first position globally in the 'Durable Consumer Goods' category of the annual 'Best Stocks in the World' ranking.

The study was published by German business weekly WirtschaftsWoche and was based on the Boston Consulting Group (BCG) Value Creators analysis.

The evaluation analysed more than 2,000 listed companies across 35 industries worldwide. Over the 5-year period from 2021 to 2025, TVS Motor Company recorded an average annual total shareholder return of approximately 51 percent.

This placed the company ahead of category peers from Japan, China, the United States and India. According to the data, the performance was driven by revenue growth contributing 22 percentage points and market valuation contributing 18 percentage points, along with profit margin improvements and debt reduction.

Professor Sir Ralf Speth, Chief Mentor, TVS Motor Company, said, “This recognition by WirtschaftsWoche and BCG is the result of the consistent implementation of Chairman Sudarshan Venu’s clear strategic vision. His passion for the company, deep understanding of markets and customers, openness to new technology, and attentiveness to the workforce create a values-based environment in which creativity and performance can flourish. Equally exemplary is the strong commitment to social responsibility. With this mindset - the ‘TVS Way’ - and under outstanding corporate leadership, the TVS team wins numerous international awards year after year, including accolades for environmental stewardship and exceptional product quality. TVS is synonymous with quality and a strong commitment to the environment, rooted in the skill of its people and built on manufacturing excellence. In symbiosis with this commitment, the company continues to advance energy-efficient solutions and strengthen its leadership in electric mobility. Under TVS Motor Company’s ownership, Norton’s global resurgence is now clear. This storied and deeply revered brand is once again delivering a compelling combination of technology, design integrity and dynamism. I am confident TVS Motor Company is strongly positioned for the future - delivering sustainable growth, strengthening global competitiveness and creating long-term shareholder value - recognition goes to the whole TVS team for their hard work and commitment."

In FY2026, TVS Motor Co reported annual sales of 5.89 million units, representing a 24 percent increase YoY. International business grew 33 percent across more than 90 markets. Revenue increased 30 percent YoY to INR 472 billion, operating profit before tax rose 40 percent to INR 49.75 billion and the operating EBITDA margin reached 12.9 percent.

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Eicher Motors, one of the leading manufacturers of two-wheelers and commercial vehicles, has announced its financial results for Q4 FY2026 and FY2026.

During Q4 FY2026, Royal Enfield sold 313,811 motorcycles, up 12 percent YoY, while VE Commercial Vehicles (VECV) reported sales of 33,976 units, as against 28,675 units a year ago.  The company reported INR 60.8 billion revenue, up 16 percent YoY, EBITDA of INR 15.14 billion, up 20 percent YoY and net profit of INR 15.20, up 12 percent YoY for Q4 FY2026.

For FY2026, Royal Enfield reported its highest-ever annual sales, surpassing 1.2 million units, up 22 percent YoY, which includes 1.10 million units in the domestic market, up 23 percent YoY.

The revenue came at INR 234 billion, up 24 percent YoY, EBITDA at INR 57.8 billion, up 23 percent YoY and profit after tax of INR 55.15 billion, up 17 percent YoY.

B. Govindarajan, Managing Director - Eicher Motors and CEO, Royal Enfield, said, “FY2026 has been an exceptional year for Eicher Motors and Royal Enfield, marked by strong growth, record volumes, and a continued focus on our global ambitions during our 125th anniversary. We achieved over one million motorcycle sales for the second consecutive year and recorded our best-ever festive season, with record volumes in both domestic and international markets. We also marked a major milestone in April ‘26 with our entry into the electric mobility space via the launch of the Flying Flea C6. International business remains a key priority as we steadily deepen our presence in markets like Brazil. This year, we also took the brand into new cultural spaces - ranging from gaming collaborations to marquee community rides - that strengthen our global identity. To power our next phase of growth, we have committed to significant investments, including the brownfield capacity expansion at Cheyyar with INR 9.58 billion and our strategic expansion plan at Tada in Andhra Pradesh, both aimed at building future-ready capacity to support our long-term projected growth.”

B Srinivas. Managing Director and Chief Executive Officer, VECV, said, “Crossing the milestone of 1,00,000 vehicles in a year is a significant achievement for VECV and reflects the trust our customers have placed in our products and solutions. This milestone also fulfills a key part of the original vision set at the inception of the Volvo–Eicher joint venture, underscoring the strength and long-term strategic direction of our partnership. During the year, VECV launched several innovative solutions in the rapidly evolving Indian CV Industry -including the Eicher Pro X Small Truck for city distribution, 12 m Eicher electric intercity coach, electric Tarmac Buses and the Volvo FM LNG Road Train specially designed for long haul logistics. As we move forward, we remain committed to driving the next phase of growth through innovation, sustainability, and deeper customer engagement.”

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