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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Orion S.A. is preparing to demonstrate the role of its speciality carbon blacks in advancing sustainability, high-jet performance and electrical conductivity within coatings systems. The global speciality chemicals company will make these presentations at the 2026 American Coatings Show + Conference, scheduled for 5–7 May in Indianapolis.

Visitors to Orion’s Booth 1466 will be directed to three key product lines. The first is ECOLAR 50 POWDER, a bio-circular feedstock-based carbon black that has previously won industry awards. The company is also featuring COLOUR BLACK FW 310 and COLOUR BLACK FW 255, two grades recognised for their exceptional jetness in both waterborne and solvent-borne formulations. Beyond product displays, Orion will offer technical guidance on achieving effective dispersion of speciality carbon blacks in electrically conductive coating systems.

ECOLAR 50 POWDER functions as a low to medium furnace black, delivering medium jetness in mass tone applications alongside reliable tinting strength. Meanwhile, the FW 310 and FW 255 grades rank among the deepest black pigments available for automotive coatings, producing a clean and elegant finish. FW 310 achieves Orion’s highest jetness levels with a deep blue undertone, making it suitable for automotive OEM basecoats, refinish coatings and premium industrial uses. FW 255 is engineered for automotive OEM and refinish systems, providing very high jetness and a similar blue undertone in both solvent-borne and waterborne environments. An additional after-treatment step enhances its wetting and dispersion properties.

A technical presentation by Orion’s Jaelene Matos, North American Technical Marketing Manager for Coatings Systems, is scheduled for 9 a.m. on 6 May. Her talk will examine how the dispersion process influences the final conductive properties of new specialty conductive carbon blacks in waterborne and solvent-borne coating systems. The discussion will cover the fundamental role of carbon black in conductive coatings, as well as the effects of dispersion method, processing time and dosage on conductive performance. Matos will also compare the conductive behaviour of medium and high conductive carbon black grades across different coating system types.

Zack Hays, Marketing Manager for Coatings and Printing Systems in North America, Orion, said, “The colouristic properties of ECOLAR 50 POWDER compare favourably with traditional specialty carbon blacks across a broad range of coatings systems and applications, with the added benefit that it contains 100 percent biogenic raw material per 14C analysis. Since we officially launched ECOLAR 50 POWDER last year, industry response has been overwhelmingly positive. We’re very proud of introducing an industry-leading?  100 percent bio-based carbon black, and we look forward to helping our customers produce truly sustainable products, contribute to a healthier planet and promote a more circular economy.”

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Kia India has introduced Digital Passport, a new customer-centric feature aimed at improving vehicle ownership transparency. Available through the Kia Connect app under the ‘New Services’ tab, the digital tool provides a secure, data-driven vehicle health report that covers a vehicle’s complete lifecycle. Priced at INR 399 plus applicable taxes, the service is offered as a three-month subscription.

As customers increasingly seek transparency and trust in vehicle management, the automaker designed Digital Passport to solve the problem of fragmented vehicle data spread across multiple platforms. The feature consolidates essential information into a single, verified report that includes a clear health summary and an easy-to-understand vehicle health score, offering a reliable view of the vehicle’s overall condition. Key data points covered are service history, accident and repair records, driving insights and warranty status.

By bringing all essential vehicle information onto one platform, Digital Passport provides a verified, data-backed picture of a vehicle’s true state, enhancing confidence in its value. The feature strengthens engagement with the Kia Connect ecosystem while delivering convenience and peace of mind throughout the ownership journey.

Atul Sood, Senior – Vice President Marketing & Sales, Kia India, said, "At Kia India, we continuously strive to enhance the ownership experience through meaningful digital innovations. Digital Passport brings greater transparency and reliability to vehicle information, reinforcing customer confidence and trust. This initiative reflects our commitment to delivering technology-led solutions that simplify ownership and strengthen long-term relationships with our customers."

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Mahindra & Mahindra (M&M) has reported a twenty-fold surge in granted patents over the past decade, rising from just 56 patents accumulated since its inception through fiscal year 2016 to 1,334 by fiscal year 2026. The Indian automotive and farm equipment major attributed this leap to sustained investment in research and development, alongside a firm backing of the ‘Make in India’ initiative. As of March 2026, the company’s total patent applications reached 2,728, underscoring a systematic drive toward technological innovation and engineering excellence.

An analysis of the 1,334 granted patents reveals that 60 percent are linked to the automotive business, while the remaining 40 percent belong to the farm equipment division. The company’s application-to-patent conversion ratio has improved dramatically from just eight percent in fiscal 2016 to over 65 percent for applications filed in the last 10 years. This patent portfolio also includes filings from M&M’s subsidiary, Mahindra Electric Automobile Ltd, reflecting a broadening scope of intellectual property development.

Beyond the numerical growth in patents, M&M’s expanded research capabilities have enabled more immersive technological experiences for customers. The company has also garnered multiple prestigious accolades in the past year alone, including the CII IP Award for Best Patent Portfolio, recognition as one of India’s Top 50 Innovative Companies 2025, the CII National Award for Industry-Academia Partnership, the Questel IP Excellence Award and honours at the CMO Asia Awards 2025.

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Venttup, a Manufacturing as a Service (MaaS) company,  has announced the appointment of Prashanth R. Menon as strategic advisor. He will work on the company’s strategy, expansion plans and growth roadmap, with a focus on profitability.

The company seeks to connect industries with manufacturing solutions from India and focuses on innovation to alter the manufacturing sector by aligning efficiency with the demand for sustainability.

Menon has experience in strategy, operations and business transformation. He previously served as Director – India at Tesla, where he managed the strategy for the company's entry into India and established its operations. He also served as Chairman of the Board for Tesla India.

Sandeep Nair, Co-Founder & CEO, Venttup, said, “We are excited to welcome Prashanth R. Menon to Venttup. His deep global experience in strategy and transformation, combined with his leadership in scaling global organisations, will help us accelerate our journey towards building a world-class manufacturing startup from India. We are focused on localisation and rapid development of critical components to support the growing deep-tech ecosystem."

Prior to his role in India, Menon was Director – Advisory at Tesla US, where he led teams focused on revenue, productivity and cost. Earlier in his career, he worked with EY, advising on corporate strategy, mergers and acquisitions, supply chain management and working capital.

Prashanth R. Menon, said, “I am impressed by the outlook and the energy of the Venttup leadership team, and their vision to build a sustainable and local supply chain to fulfill global needs. Venttup has a promising business model, and it is aligned with the Government of India’s “Make in India” initiative. I am looking forward to guiding the team in achieving their growth and operational goals.”

Menon will work with the founders and leadership team to shape the growth roadmap, drive expansion and manage scalability. He will also support investor engagement and partnerships.

Bhaskar Majumdar, Managing Partner, Unicorn India Ventures, added, “A warm welcome to Mr Menon to the Venttup Advisory team. His deep industry experience, decades of global exposure in the US, strong understanding of evolving global supply chain dynamics, and keen interest in contributing to India’s manufacturing deep-tech ecosystem will significantly strengthen Venttup’s scale-up strategy and growth journey."

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