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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Hyundai Motor India Limited (HMIL) has launched a new brand campaign ahead of the ICC Women’s T20 World Cup 2026, featuring its brand ambassadors Smriti Mandhana and Jemimah Rodrigues. The campaign builds on the success of the earlier men’s World Cup initiative titled ‘Deewane India ka Deewana Humsafar’ but presents a distinct narrative focused on celebrating the rising support and admiration for women’s cricket in India.

The campaign directly challenges the traditional label of cricket as a gentleman’s game with the bold message that the ‘gentle’ has been removed from the sport. Through strong visuals, it highlights the determination, skill and barrier-breaking performances of women cricketers, showing how their passion is transforming the game and deepening India’s love for cricket.

As a Premier Partner of the ICC, HMIL plans to engage fans during the tournament with curated digital content and targeted outreach. These efforts aim to amplify the excitement of the Women’s T20 World Cup, bring fans closer to the action and strengthen Hyundai’s emotional connection with cricket enthusiasts.

Virat Khullar, Head – Marketing, Hyundai Motor India Limited, said, “At Hyundai, we believe sport has the power to unite communities, inspire dreams and create meaningful connections. The overwhelming response to our ‘Deewane India Ka Deewana Humsafar’ campaign reaffirmed the deep emotional bond between cricket and its fans. With the ICC Women’s T20 World Cup, we are proud to celebrate a new chapter of this passion by recognising the growing influence of women’s cricket and the millions of fans who continue to champion the game. This campaign aims to celebrate that shift and spotlight the incredible journeys of players like Smriti Mandhana and Jemimah Rodrigues, who continue to break stereotypes and inspire millions. As a proud partner of the ICC, Hyundai remains committed to supporting this new era of cricket and standing alongside the champions who embody the true spirit of ‘Deewangi’.”

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Vega Auto Accessories, a leading helmet manufacturer, has announced a strategic investment in Tageze Medical ID System, a Pune-based emergency technology platform operated by Techsocio Projects.

The transaction marks a direct entry for the traditional protective gear manufacturer into the connected safety and digital emergency response sectors, moving the brand's product ecosystem from pure accident prevention into active medical response coordination.

Tageze develops a decentralised, application-free medical identification platform. Utilising ruggedised, weather-proof QR-code tags integrated directly onto the helmet shell, the technology creates an immediate digital profile for first responders.

During a critical road incident (golden hour), bystanders, emergency responders, or healthcare professionals can simply scan the helmet-mounted QR code with any standard smartphone camera. The system instantly loads a secure, cloud-hosted medical profile outlining: primary and secondary emergency contact routing; blood group categorisation, known allergies, chronic medical conditions and current medications; health and vehicular insurance policy details to expedite hospital admission procedures.

Because app installation requirements often introduce friction during high-stress rescue operations, the platform operates entirely via a responsive mobile web interface. It supports multilingual localisation, dynamically translating medical profiles based on the browser settings of the first responder – a critical feature for long-distance touring riders navigating diverse linguistic states and countries.

The capital injection from Vega will be utilised to expand Tageze's technical infrastructure and scale its market footprint across India and its existing international distribution nodes.

For Vega, the alignment signals a broader shift occurring across the personal protective equipment (PPE) sector. As global motorcycling demographics demand higher technology integration, manufacturers are shifting beyond standard impact testing (such as ECE 22.06 or DOT standards) to capture the digital layer of post-crash telemetry and identity verification. The companies confirmed that the investment will fund a dedicated R&D pipeline aimed at embedding next-generation, hardware-level emergency tracking chips and intelligent response systems directly into future Vega and AXOR helmet lineups.

"At Vega, rider safety has always been at the core of everything we do. Through our partnership with Tageze, we are looking at safety beyond the helmet itself by enabling faster access to critical information during emergencies. We believe this is an important step towards building a more connected and responsive rider safety ecosystem," Vega said in a statement.

Deepak Gaikwad, Founder & CEO, Tageze Medical ID System, added, "Our mission has always been to make life-saving information accessible when it matters most. Partnering with Vega allows us to expand the reach of this technology and bring emergency preparedness closer to riders across India and global markets."

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Ireland-headquartered intelligent power management company Eaton has entered into a definitive agreement to separate its Mobility Group business and combine it with Dana Incorporated in a Reverse Morris Trust transaction.

The deal values the combined company at over USD 10 billion in enterprise value and values Eaton’s Mobility Group at approximately USD 5.1 billion. The transaction is scheduled to close in Q1 of CY2027, subject to approval by Dana shareholders and regulatory clearances.

Under the terms of the agreement, Eaton will receive a tax-free cash distribution of approximately USD 1.1 billion, which will be funded by newly issued debt from the mobility entity. Eaton shareholders will receive shares in the combined business, resulting in a post-transaction ownership structure where Eaton shareholders hold at least 50.1 percent of the outstanding shares and Dana shareholders own approximately 49.9 percent.

The transaction allows Eaton to alter its corporate focus toward its electrical and aerospace divisions, which align with market trends in electrification, data centres, infrastructure modernisation and aerospace defence.

The combined entity will merge Dana’s portfolio of axles, driveshafts, thermal management and sealing products with Eaton’s commercial vehicle transmissions, clutches and engine emissions technologies. The merged entity will target internal combustion, hybrid and electric vehicle platforms across commercial and light vehicle manufacturing sectors.

The combined entity will retain the name Dana Incorporated and continue its public listing on the New York Stock Exchange under the ticker symbol DAN. The business is projected to generate approximately USD 11 billion in pro forma revenue and USD 1.7 billion in pro forma estimated 2026 adjusted EBITDA. The integration plan targets USD 250 million in annual run-rate cost synergies to be fully achieved within 24 months of closing.

Furthermore, Byron Foster will become the Chief Executive Officer of the combined company and Timothy Kraus will assume the role of Chief Financial Officer. R. Bruce McDonald will serve as Executive Chairman, while Erin Rowse is named as the incoming Chief Human Resources Officer. Dana’s board of directors will expand from eight members to include three additional directors appointed by Eaton.

Paulo Ruiz, Chief Executive Officer, Eaton, said, "We are pleased to have reached this agreement, which delivers significant value to Eaton and its shareholders and represents a major milestone in Eaton’s 2030 growth strategy to lead, invest and execute for growth. Eaton shareholders will benefit from the meaningful upside created by the combined company, and the transaction will provide substantial cash value for Eaton to deploy to our highest-growth and highest-margin opportunities. Looking ahead, our portfolio will be closely aligned with the powerful megatrends driving generational growth in our Electrical and Aerospace businesses, and we look forward to continuing our momentum to drive meaningful value for our customers and shareholders."

R. Bruce McDonald, Dana Chairman and Chief Executive Officer, said, "We are excited to bring together Eaton’s Mobility Group with Dana. The addition of Mobility Group’s leading positions in commercial vehicle transmissions, clutches and power management technologies, combined with Dana’s strengths in axles, driveshafts, electrification, thermal management and sealing products, will create a truly differentiated global platform. Together, we will be better positioned to serve our customers, invest in innovation and drive long-term value creation for shareholders of the combined company.”

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Bajaj Auto Foundation, the CSR arm of Bajaj Auto Limited, has announced a significant INR 4 billion commitment over the next decade to support women engineers through the Rupa Rahul Bajaj Scholarship for Women in Engineering (RRBSWE). The initiative is aimed at increasing female participation in core technical fields.

The scholarship, recognised as India’s largest such programme for women in core engineering, targets meritorious students pursuing disciplines like Mechanical Engineering, Electronics, Industrial Instrumentation, Mechatronics and Robotics. Scholars at 40 leading institutes, including IITs, NITs, IIITs and reputed state and private universities, can receive up to INR 800,000 in financial aid throughout their engineering education.

Beyond monetary support, the programme focuses on holistic leadership development. It offers structured mentorship, industry immersion and professional networking opportunities to cultivate future women leaders in engineering and manufacturing sectors. The launch event at Bajaj Auto Ltd.’s Pune headquarters also celebrated the first cohort of 506 scholars, with chief guest Kiran Mazumdar-Shaw and Rajiv Bajaj in attendance.

The foundation highlighted that this effort tackles the persistent underrepresentation of women as advanced manufacturing and deep technology grow critical for India’s economy. Unveiling its overarching proposition, ‘Where there’s a skill, there’s a way’, the foundation reaffirmed its dedication to skilling and education for the nation’s future workforce.

Rajiv Bajaj, Managing Director, Bajaj Auto Limited, said, “Women possess inherent skills of patience, empathy and diligence, which are very strong attributes to excel in core engineering jobs. We identified this long back and made women engineers a significant part of our workforce. In fact, from virtually no women in our operations till around a decade back, today they account for nearly 20 percent of our workforce. This has brought a meaningful difference to our way of working and contributed to Bajaj Auto’s global scale, thereby making us the World’s Favourite Indian. This programme would extend our learning with the larger manufacturing industry.

“The Rupa Rahul Bajaj Scholarship for Women in Engineering holds a special place in my heart, as it carries the name of my beloved mother, Rupa Rahul Bajaj. Her dedication to education and her belief that women can drive change in their communities inspire this programme. The Rupa Rahul Bajaj Scholarship is an investment in talent, ambition and the belief that opportunity can unlock extraordinary potential. We are deeply committed to ensuring that women play a far greater role in shaping the future of engineering and manufacturing.”

Kiran Mazumdar-Shaw, Executive Chairperson, Biocon Limited, said, “The future of science, engineering and manufacturing must be built on inclusion and equal opportunity. Encouraging more women to pursue core engineering disciplines is not just a social imperative but an economic one. Initiatives like the Rupa Rahul Bajaj Scholarship can help create a stronger and more diverse innovation ecosystem for India.”

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