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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Alpine has appointed Massimo Fumarola as Vice President Strategy & Product Performance, with effect from 1 April 2026. He will become a member of the Alpine Management Committee and report directly to CEO Philippe Krief. Fumarola replaces Sovany Ang, who is moving to a new position elsewhere within Renault Group.

Bringing more than three decades of international automotive experience, Fumarola has deep knowledge in product and portfolio strategy, project management, product development and premium brands. His career includes leadership roles at IVECO, CNH Industrial, Ferrari, Audi, Lamborghini and most recently as CEO of Morgan Motor Company, where he led that brand’s strategic turnaround.

Since joining Renault Group in 2025, he has served as Director of Renault Couture while also handling broader product and project management duties. In his new capacity, Fumarola will shape Alpine’s long‑term plans and product strategy, ensuring that brand identity, technological advances, market trends and future vehicle development remain closely aligned.

Holding a Master’s in Engineering of Industrial Technologies from Politecnico di Milano and an MBA from Cranfield University, Fumarola combines technical grounding with strategic leadership, international perspective and P&L experience. His background in high‑performance, premium and luxury vehicles will be crucial as Alpine pursues its goal of becoming a distinctive electric brand focused on performance.

Krief said, “First of all, I would like to thank warmly Sovany for her dedication, commitment and support over the last years, it has been a pleasure to collaborate with her and her team. While I wish her all the best, I will not forget her and she is now next door. I am now looking forward to working closer with Massimo. His solid expertise combining product, strategic vision and customer experience with high-end sportscars brands will certainly help us to deploy our new strategy and future product portfolio. Massimo is joining at an exciting time for the brand, as we are just starting to unveil our Alpine Performance Platform, which will be our strongest asset for our upcoming product range.”

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Agratas, the Tata group’s global battery business, has completed the steel frame at its Sanand site in India. This achievement brings the site significantly closer to operational readiness and confirms that the production is on track to begin in 2027.

The completed steel frame measures 700 metres in length, 150 metres in width and reaches 34 metres at its highest point, covering a built-up area of 105,000 square metres. More than 24,000 tonnes of steel were used in the main structure, while work on associated buildings advances in parallel. Tata Projects Limited is executing the project with support from Tata Consulting Engineers and multiple steel contractors. All steel and the majority of other materials have been sourced from across India, strengthening domestic supply chains and reducing import dependence, with sustainability integrated into the design and construction approach.

India has committed to net zero emissions by 2070 and set a target of 500 GW of non-fossil fuel energy capacity by 2030, requiring rapid acceleration in electric mobility and grid scale energy storage supported by a robust domestic supply of advanced battery cells. The Sanand facility will have an annual capacity of 20 GWh in its first phase, producing advanced battery cells for electric vehicles and energy storage applications once operational. This will enable a faster and more affordable transition away from fossil fuels while positioning India as a key player in the global battery value chain.

Beyond manufacturing, the Sanand plant is expected to generate widespread employment across production, maintenance, quality assurance, engineering and technical roles. Agratas is also investing in local workforce development, building a pipeline of skilled professionals to support India’s emerging battery ecosystem and its position in the global value chain.

Sudhir Ghalsasi, Vice President – Capital Delivery, Agratas, said, “This milestone reflects the scale, complexity and pace of execution at Sanand. In a dynamic and evolving environment, translating detailed designs into on-ground reality comes with its own set of challenges. What began as a vision is now taking shape through strong collaboration, disciplined execution and a shared commitment across teams. Together with our partners, we’ve turned our plans into tangible progress, building a future-ready facility that will deliver long-term value.”

Deepak Khare, Vice President – Manufacturing Operations, Agratas, said, “Completing the steel frame at Sanand marks an important step in our journey towards operational readiness. As we move forward, our focus is on building the systems, processes and capabilities required to deliver reliable, world-class batteries made in India for the world while developing a highly skilled workforce to support safe and high-quality manufacturing.”

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Volvo Group, Daimler Truck and Toyota Motor Corporation have signed a non-binding Memorandum of Understanding (MoU) to cooperate within the fuel cell joint venture, cellcentric.

As per the understanding, Toyota intends to acquire an equal shareholding in the entity alongside the two founding partners. The collaboration aims to accelerate the development, production and commercialisation of fuel cell systems for heavy-duty vehicles and stationary applications.

Toyota and cellcentric plan to jointly manage the production of fuel cell unit cells, which serve as the core component of the power systems, along with related control elements and architecture.

The partners intend for cellcentric to operate as an autonomous centre of competence. While the three companies will collaborate on the underlying technology and hydrogen infrastructure, they will remain independent competitors in all other areas of their respective businesses.

The agreement focuses on achieving the scale required to make hydrogen a viable energy source for decarbonising the transport sector. The partners aim to support the broader hydrogen value chain, aligning with the objectives of the European Green Deal and the Hydrogen Society Act in Japan.

The transaction is not expected to have a significant impact on the financial position of the Volvo Group. The final legally binding agreement remains subject to approval by relevant boards and regulatory authorities.

Martin Lundstedt, President and CEO, Volvo Group, said, “We are thrilled to explore this collaboration with Toyota, so that we through cellcentric can accelerate and create critical mass for hydrogen applications. This is an important signal to customers, suppliers, and others in the ecosystem. Given the importance of accelerating the transformation into net-zero transportation, the need of great companies coming together and collaborating is more important than ever. Welcoming Toyota onboard will be a big leap towards realising decarbonisation of our industries.”

Karin Radstrom, President & CEO, Daimler Truck, said, “We are proud that Toyota plans to join cellcentric as a shareholder. This will enable us to strengthen development and further scale hydrogen technology, which we believe must complement battery-electric drives in decarbonising transport.”

Koji Sato, President and CEO, Toyota Motor Corporation, noted, “We are deeply grateful for the opportunity to soon be joining Daimler Truck and Volvo Group as partners in building a hydrogen society. Cellcentric which possess deep expertise in commercial fields together with Toyota ‘s over 30 years of fuel-cell development in the passenger car sector, can combine their strengths to deliver one of the world-leading fuel cell systems for heavy commercial vehicles. Toyota will continue to contribute to realising a hydrogen society alongside like-minded partners.”

Nicholas Loughlan, Managing Director, cellcentric, added, “We are extremely proud that Toyota is intending to join as a shareholder of cellcentric - a great sign of trust in our company from one of the world‘s leading automotive companies. Together, in this new set-up, we look forward to seizing the opportunity to significantly improve our company across the entire value chain.”

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The Society of Indian Automobile Manufacturers (SIAM), in partnership with the Delhi Traffic Police, Yamaha Motor India and Hindustan Times, held the Annual Principals’ Meet 2026 in New Delhi. The event, themed “Bridging the Gap: Connecting Road Awareness with Education,” convened over 400 school principals from across the Delhi-NCR region to discuss the formal integration of road safety modules into student learning.

The meeting is part of SIAM’s ‘Surakshit Safar’ initiative, which seeks to address rising road fatalities through a focus on human behaviour rather than vehicle technology alone.

The program saw over 100,000 students reached through structured modules in collaboration with Kendriya Vidyalaya Sangathan. Focus on pedestrians and two-wheeler users, who account for the highest percentage of road fatalities, promoting the consistent use of helmets and seatbelts while discouraging over-speeding through early-age education.

During the forum, SIAM recognised educational institutions for their efforts in promoting road safety awareness for the 2025–26 academic year:

1. School of the Year: Modern Public School, Shalimar Bagh, New Delhi.
2. 1st Runner Up: Mount Abu Public School, Rohini Sec-5, New Delhi.
3. 2nd Runner Up: Greenway Modern Sr. Sec. School, Dilshad Garden, New Delhi.

Prashant Banerjee, Executive Director, SIAM, stated, “India has already adopted the best of vehicle technologies, including active and passive safety systems, but road accident fatalities are still rising. What has been found is that this is largely a behavioral aspect which needs to be controlled. Enforcement alone cannot solve the issue. It is education that brings humility, politeness, and responsibility, and that is something we do not see on roads today.”

Sanjay Bandopadhyaya, Member, Supreme Court Committee on Road Safety, added, “Enforcement combined with education is the most effective and economical way to reduce fatalities. With schools, industry, media, and enforcement agencies coming together, we can ensure a significant reduction in accidents and make our roads much safer.”

Vijayanta Arya, Additional Commissioner of Police – Traffic, Delhi Police, commented, “Road safety cannot be achieved through enforcement alone, because the decision ultimately rests with the people using the road. This is where schools become central to the solution. While enforcement acts as a deterrent, education creates understanding, and together they can bring far more sustainable outcomes in improving road safety.”

S Kumar, Vice-President, India Yamaha Motor, said, “If we want to create lasting change, we must begin at the school level, where awareness can be translated into values and eventually into lifelong habits. From an industry perspective, we see a critical opportunity to promote road safety through school-level awareness and engagement.”

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