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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ALTEN India, a global engineering and technology consulting group, has appointed Prabhakar Atla as its new Chief Executive Officer, effective 5 October 2026. He previously served as President and Chief Operating Officer at Cyient, succeeds Balaji Viswanathan as head of the company's Indian operations.

Atla brings three decades of industry experience to the role, having led global operations and business units across sectors including aerospace, communications, rail, energy and semiconductors. His previous assignments include roles in Europe, India, the United States, Japan, and Australia, as well as serving as President and Chief Financial Officer at Cyient prior to his appointment as Chief Operating Officer.

Pascal Amore, Group EVP, Head of APAC, ALTEN, said, "Prabhakar's depth of experience in engineering, IT and technology services, and his track record of leading large global organisations through transformation, make him the right leader for ALTEN next chapter in India. India is core to the ambitions of our 2030 strategic plan, and I am confident Prabhakar will strengthen our organisation, develop new capabilities and accelerate our growth across the country."

Prabhakar Atla said, "I am honoured to join ALTEN and lead its talented teams in India. ALTEN India has grown into a strategic capability hub for the Group, with deep engineering expertise and trusted client relationships. My ambition is clear: enable and empower India as the engine of ALTEN Group's transformation, powered by deep sector expertise, AI-led engineering and faster innovation for our clients."

The company currently employs more than 8,500 personnel across 13 centres in eight Indian cities. The unit provides engineering, digital transformation, semiconductor and artificial intelligence solutions to clients in the automotive, aerospace, defence, telecommunications, consumer technology, manufacturing, and life sciences sectors.

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AIC Pinnacle Entrepreneurship Forum and the National Automotive Test Tracks (NATRAX) have signed a memorandum of understanding to support startups in the automotive, electric vehicle and connected mobility sectors.

The agreement was executed at EKA's vehicle manufacturing facility in Chakan by Dr Avinash Thakur, CEO, AIC Pinnacle and Dr Manish Jaiswal, Director, NATRAX.

The collaboration combines AIC Pinnacle’s business incubation and mentoring programs with the testing and certification infrastructure at NATRAX. The partnership aims to assist startups in progressing from prototypes to validated commercial products. Immediate initiatives include organising a startup hackathon and granting select cohort members access to the NATRAX testing tracks near Pithampur, Madhya Pradesh.

The signing event included representatives from EKA Mobility, AIC Pinnacle and NATRAX, such as EKA Mobility Chief Product Officer Zoeb Altafhussain Karampurwala, Chief Engineers Kaustubh Vasant Joshi and Pankaj Shivrudrappa Munoli, and R&D Team Lead Swapnil Anil Tambe, alongside AIC Pinnacle Senior Manager Shadab Hussain and NATRAX Group Lead Tulika Mazumdar.

"The partnership with NATRAX opens an important bridge between startups and the automotive testing and validation ecosystem. Our objective is to help promising innovations move beyond the incubation stage and gain access to the technical, industry and testing support required to develop market-ready solutions," said Dr. Thakur.

Dr Manish Jaiswal said the partnership would create opportunities for startups and innovators to access relevant testing, validation and ecosystem capabilities. "Such partnerships can contribute to accelerating the development and adoption of emerging mobility technologies," he said.

Dr Sudhir Mehta, Founder and Chairman, Pinnacle Industries and Group Companies, said, "Electric mobility will remain a key focus area for AIC Pinnacle in the coming period. This MoU strengthens that vision by giving startups direct access to the industry, strategic partners, academic institutions and government agencies they need to scale."

The initiative will establish networks between early-stage companies, industrial firms, academic institutions, and government agencies across Maharashtra and Madhya Pradesh. AIC Pinnacle operates as a non-profit incubator supported by NITI Aayog's Atal Innovation Mission, while NATRAX operates testing and certification facilities in Central India.

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Indian vehicle retail sales reached a record 2,536,920 units in September 2026, marking a 31.82 percent YoY increase and a 4.69 percent sequential rise over August shows data released by the Federation of Automobile Dealers Associations (FADA).

Interestingly, in H1 (April–September) of FY2027, auto retail reached 15,512,319 units, a rise of 20.77 percent YoY.

In September 2026, growth was recorded across all major segments compared to the previous year. Two-wheeler sales rose 33.08 percent to 1,790,188 units, surpassing the pre-pandemic peak recorded in 2018 by 15.3 percent.

Passenger vehicle registrations increased 32.10 percent to 427,213 units and commercial vehicle registrations grew 37.62 percent to 103,557 units, crossing the 100,000 mark in September for the first time.

Three-wheeler sales climbed 22.25 percent to 132,570 units, with electric models accounting for 64.90 percent of the total.

Wheeled construction equipment sales increased 38 percent to 6,486 units. Tractor sales grew 13.75 percent YoY to 76,906 units, though registrations fell 12.58 percent compared to August due to a delayed festive calendar and uneven rainfall.

Total electric vehicle sales across all categories reached a monthly figure of approximately 334,000 units, bringing electric vehicle market penetration to roughly 13 percent.

In the two-wheeler space, electric vehicles accounted for 11.58 percent of new vehicle sales. In the passenger vehicle segment, petrol vehicles held a 41.27 percent market share, while alternative fuel vehicles accounted for 41 percent. The alternative fuel share comprised compressed natural gas at 23.11 percent, hybrid powertrains at 9.44 percent and electric vehicles at 8.45 percent.

Passenger vehicle dealer stock levels rose to between 43 and 45 days of sales, exceeding FADA’s recommended benchmark of 21 days.

C S Vigneshwar, President, FADA, said, “September’26 was the best-ever September in Indian auto retail, with the industry registering 25,36,920 units, up 31.82 percent YoY and 4.69 percent MoM. I would, however, urge that this headline be read with discipline: the 31.82 percent is the most base-distorted print of the year – a mirror of last September, when buyers deferred purchases in the week before GST 2.0 took effect on 22 September 2025. The cleaner signals are three. It was the best-ever September across five of our six categories and, with it, the best-ever first half of any financial year at 1,55,12,319 units (+20.77 percent); retail rose 4.69 percent over August and even setting the distorted September aside, FY’27’s first five months grew about 17 percent, which is the truer underlying run-rate.”

Going forward, survey results from FADA indicate that 75.57 percent of automobile dealers expect sales growth in October, up from 67.09 percent in August. For the October–December quarter, 78.28 percent of dealers anticipate growth and 49.5 percent have revised their sales forecasts upward for the full financial year following the first-half results.

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French automotive major Renault Group has announced the appointment of Carine Damois as Chief Financial Officer, effective 14 November 2026. She will report to Francois Provost and join the Group's Leadership Team.

She comes with over 20 years of experience in corporate finance, financial governance and digital transformation within international organisations. Her background includes oversight across management control, treasury, risk management, tax, strategic planning, consolidation and sustainable finance.

Since 2021, she has served as Deputy Chief Financial Officer of Michelin, managing finance functions across more than 100 countries. Her prior career includes senior leadership roles across manufacturing, logistics, energy, and operations within Michelin and the AREVA Group. She is a graduate of ESSEC Business School.

The appointment comes as Renault Group continues the implementation of its futuREady strategic plan, aimed at maintaining financial performance and operational agility.

François Provost said: "I am delighted to welcome Carine Damois to Renault Group. Her recognised financial expertise, strong industrial background and international perspective make her the ideal leader for our Finance function. As we continue to execute our strategy and aim to maintain a high level of financial performance, I am confident that Carine will play a decisive role in achieving our ambitions. I would also like to extend my sincere thanks to Duncan for his commitment and contribution to the Group's development over nearly three decades."

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