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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IndiaTech.org has released India’s first Ease of Vehicle Ownership Index (EVOI), in partnership with Consumer VOICE, with Andhra Pradesh topping the rankings at 5.91 out of 10. Kerala ranked second at 5.74, while Uttar Pradesh finished last at 2.47, behind Bihar (2.51) and West Bengal (2.56). No state crossed 6.0, and 8 of the 15 assessed states clustered between 3.8 and 4.3, pointing to system-wide friction rather than isolated laggards. Together these states represent over 85 percent of India's organised used-car market.

The index scores states on six pillars – policy and regulation, digital infrastructure, process efficiency, transparency and accountability, institutional ecosystem and dealer support and cost and affordability – using a weighted geometric mean so strength in one area cannot mask weakness in another. It draws on a survey of over 1,000 buyers and sellers, interviews with dealers and RTO agents and a review of motor vehicle rules. Andhra Pradesh excelled in policy and regulation (7.90) but scored lowest on dealer ecosystem (2.22); Kerala's strength was digital infrastructure (7.02), its weakness transparency (4.86).

Cost was the weakest pillar nationally, with 12 of 15 states below 3.5. Manual verification and informal payments push transfer costs to nearly 10 times the statutory fee – INR 13,000 to INR 14,000 above the VAHAN fee in Bihar, and INR 7,000 to INR 8,000 against an official INR 800 at Tamil Nadu's border RTOs. Transfers take 7 to 10 days in Andhra Pradesh but over 30 days in Uttar Pradesh, and 13 states still demand physical copies despite online filing. Road tax on an INR 600,000 petrol car ranges from 3 percent in Uttar Pradesh to 14 percent in Karnataka and Telangana. Only Andhra Pradesh and Telangana run working interstate refunds; a CAG audit in Karnataka found a mean processing time of 436 days.

The 2022 Deemed Ownership framework has yielded 2,032 registered dealers, 875 in Kerala, while Delhi, Karnataka and Telangana have none. The survey found 39 percent of transfers still pending after sale, only 9.6 percent completed within two weeks, 61.5 percent unaware of mandatory in-person RTO visits, 62.7 percent unable to state total costs, 28.1 percent of sellers receiving challans afterwards and 52.5 percent willing to handle transfers themselves if fully online.

Recommendations include statutory timelines under Section 50 of the Motor Vehicles Act and Rule 55 of the CMVR, acceptance of DigiLocker and mParivahan documents as primary evidence, real-time bank-VAHAN integration, nationwide Deemed Ownership enforcement, a ‘One Bharat, One Road Tax’ framework, dealer authority to clear challans without owner OTP and automatic own-damage insurance carryover. IndiaTech.org will share scorecards with states and convene a national workshop, as the pre-owned market is projected to grow from USD 36.4 billion in 2025 to USD 73.5 billion by 2030.

Harsh Malhotra, Minister of State, Ministry of Road Transport and Highways, who launched the report, said, “The used car market in India is very big, and many people buy their first car as a second­hand or used car. I remember my first car, which was also a pre-owned car. While there are hassles and challenges in the transfer of ownership, the integration of policies and their implementation across states is very important, as differences in state-level governance often lead to problems. The Central Government is working on policies in this regard, and we are also taking steps such as setting up automated testing stations, which provide considerable relief, promote ease of doing business and help eliminate corruption. There is always scope for improvement, and we will discuss the recommendations basis this report findings to further enable ease of mobility.”

Dhiraj Gyani, CEO, IndiaTech.org, said, “A vehicle may travel seamlessly across state boundaries, but the administrative processes governing its ownership often do not. As India's pre-owned vehicle market becomes an increasingly important part of our mobility and consumer economy, the systems governing ownership transfers must evolve in step with the market. The EVOI 2026 findings highlight significant variations in state-level processes, as well as considerable scope for improvement across the country. Our objective is to encourage greater harmonisation, digital integration and administrative efficiency, enabling citizens and businesses to experience seamless and predictable vehicle ownership transfers, irrespective of where they are located. We believe that a more integrated national framework, including progress towards the vision of ‘One Bharat, One Road Tax’, can play an important role in unlocking the sector's full potential.”

Mohit Gupta, COO & Co-Founder, Spinny, said, “Every Indian deserves the opportunity to own a quality car. A car is an aspiration, the promise of new beginnings, freedom and possibilities for individuals and families. Buying one should be an exciting milestone, not weighed down by paperwork and complex processes. As an industry, we have a responsibility to help consumers understand existing processes and work closely with policymakers to drive meaningful reforms – support state-wise implementation of ADRV, simplify hypothecation addition and removal and advance end-to-end digitisation of processes. The Ease of Vehicle Ownership Index (EVOI) is an important step towards bringing Central and State Governments and industry players together to address these challenges and make car ownership simpler and easier for people across India.”

Vikram Chopra, Builder Cars24, said, “A car may change hands, but ownership and liability do not always follow. At Cars24, we see this firsthand: sellers remain exposed to liabilities long after handing over their vehicles, while buyers wait to be recognised as legal owners despite completing the purchase. This is not just a procedural delay but a gap in consumer protection and accountability. The Ease of Vehicle Ownership Index brings these challenges to light, identifies systemic gaps and gives states a framework to drive reforms through competitive federalism. Ownership transfer must be an integral part of every car transaction, ensuring that ownership, responsibility and liability move together, giving both buyers and sellers complete peace of mind.”

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German tier 1 supplier Schaeffler has announced a performance improvement programme aimed at eliminating overcapacity, reducing organisational complexity and lowering personnel costs in response to challenging conditions in the European automotive sector.

The measures follow the completion of restructuring initiatives announced in November 2024 and the execution of 1,800 partial retirement agreements in October.

The plan involves a net reduction of 3,460 positions across Europe, with approximately 2,660 cuts located in Germany, representing 9 percent of its domestic core workforce by 2028.

Furthermore, 50 percent of the affected positions are in production, 30 percent in research and development and 20 percent in functional areas. The programme includes the closure of five European facilities, encompassing four German sites in Dortmund, Morbach, Berlin and Schwalbach, alongside a site in Herstal, Belgium.

Operations at additional locations in Germany, France and Slovakia will undergo structural adjustments. The restructuring is projected to generate annual earnings improvements of approximately EUR 300 million by 2030, against one-time expenses of around EUR 480 million, the majority of which will be recognised as restructuring provisions in 2026. The job cuts will be accompanied by a solidarity contribution involving a temporary compensation reduction across management levels.

Klaus Rosenfeld, CEO, Schaeffler, said, "With the performance improvement program announced today, we want to demonstrate that, despite the challenging operating environment, it is both possible and sensible to develop and manufacture in Germany and Europe in a way that is competitive and cost-efficient over the long term. This requires that we consolidate locations, bundle technological expertise in selected regional clusters, and optimize costs per employee. At the same time, we intend to further streamline the organization and reduce hierarchical levels. The most important element of the program – also in comparison to previous programs – is the solidarity contribution, which is intended to include, among other measures, a temporary compensation reduction across all hierarchical levels. Based on our strategic goal of becoming the leading Motion Technology Company, we view the Schaeffler Group’s broad cross-sector diversification as an important opportunity. We will do everything in our power to tap into new growth areas and, as far as possible, replace declining activities with new business "

Dr. Jochen Schröder, COO, Schaeffler, said, "In addition to our focus on further developing our core business, the Schaeffler Group has promising growth opportunities in future-oriented fields, particularly in the areas of humanoid robotics and defense. Here, we can draw on the technological expertise we have developed in our core business."

Dr. Astrid Fontaine, CHRO, Schaeffler, said, "As a family-owned company, it is particularly important to us that we implement the necessary measures in a socially responsible manner and in close dialogue with employee representatives. We have repeatedly found good solutions together in the past, and we want to build on that. We invite our employees to contribute constructively and actively support the necessary transformation."

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European automotive group Stellantis has appointed Sandeep Bhambra as the head of design for the Citroen and DS Automobiles brands, effective 2 November 2026.

Bhambra succeeds Pierre Leclercq at Citroen and Thierry Metroz at DS Automobiles, reporting directly to Gilles Vidal, Head of Design for Stellantis European brands. He will also join the management teams of both brands under Xavier Chardon, CEO of Citroen and DS Automobiles.

Leclercq transitions to Head of Design for Opel and Vauxhall, succeeding Mark Adams, who is retiring. Thierry Metroz will transition to support Gilles Vidal on European design strategy.

"The arrival of Sandeep Bhambra marks a new step in our ambition to strengthen the identity and appeal of our brands. His experience, creativity and vision of Design will be valuable assets in supporting Citroën and DS Automobiles in expressing strong and distinctive identities, true to their heritage while firmly looking to the future. I would also like to thank Pierre Leclercq for his work and contribution to Citroën. His talent and vision have helped shape several key projects and reinforce the brand’s distinctive character. I wish him every success in his new role at Opel," said Xavier Chardon.

Gilles Vidal said, "I am particularly pleased to entrust Sandeep with the responsibility for the Design of Citroën and DS Automobiles. His background, combining creativity, strong product expertise and a strategic vision of Design, will be a major asset in supporting the ambitions and transformation of both brands. I would also like to warmly thank Pierre Leclercq for his commitment and contribution to the development of Citroën Design, and wish him every success in his new role leading Design at Opel. Finally, I would like to thank Thierry Metroz for his talent, passion and contribution to DS Automobiles Design. His experience and vision will be invaluable in his new role."

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BendPak has launched the OctaFlex Series, turning its eight-arm car lift concept into production reality. The two-post lift aims to improve bay productivity, technician ergonomics and operational precision, making cab-off repairs, EV battery replacement and other demanding tasks efficient enough to pay for itself. The OctaFlex 12DPS is now shipping and will appear at the SEMA Show from 3–6 November in Upper South Hall Booth #36129.

After introducing the concept in 2024, BendPak spent two years refining it through customer feedback and lab testing. The OctaFlex 12DPS pairs a traditional 12,000-pound-capacity two-post lift with an integrated 6,000-pound lift-assist system, described as an industry first. Four primary arms support the vehicle while four secondary arms raise, lower or hold cabs, drivetrains, EV batteries, suspension assemblies and other heavy components without extra equipment, helpers or bays. The auxiliary arms move out of the way when not needed, allowing standard two-post operation.

The patent-pending series also features a magnetic pendant controller with two-speed controls, letting technicians stand back from the columns for better visibility. Each set of arms operates independently at normal or slow speed, supporting the fine alignment needed for EV battery installation or single-handed cab and chassis removal.

Dave’s Auto Center in Centerville, Utah, services trucks nationwide and performs multiple cab-offs daily across 25 bays. Owner Dave Bell said the installed OctaFlex saves hours, easing cab removal and allowing chassis work while the cab is airborne. He called it significantly more efficient than completing the cab-off before remaining repairs.

BendPak says shops save an average of two hours per cab-off. A bay pulling 20 cabs monthly at a USD 150 hourly rate could add USD 6,000 monthly, or USD 72,000 annually. Customers can calculate returns by visiting the OctaFlex page on the company website. Savings also come from eliminating a second technician and completing work in one bay instead of two.

Because OctaFlex holds chassis and cab, technicians stand comfortably with everything at eye level, improving ergonomics and eliminating manual lifting of heavy components. The lift features BendPak’s Automatic Swing Arm Restraint System with a 360-degree grip and 10 times traditional holding power. It is third-party tested and ALI Certified as model EV12DPS.

Jeff Kritzer, President and CEO, BendPak, said, “As dealers and independent repair shops continue to struggle with an ageing and shrinking technician workforce, they also face surging demand for labour-intensive tasks like cab-off repairs and EV service. OctaFlex eases the pressure by helping technicians handle complex jobs independently with greater efficiency and less physical strain, maximising throughput and profit potential.”

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