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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TVS Racing has announced that the third season of the TVS Apache Racing Experience GP (ARE) International will begin on 15 November 2026, marking the widest reach yet for the customer-focused championship. The 2026–27 series will visit seven nations – India, Mexico, Colombia, Nepal, Morocco, Egypt and Ivory Coast – as the brand pushes to widen access to competitive riding. Organisers describe the move as a step towards a structured and aspirational entry point into motorsport while extending the company's international racing footprint.

The upcoming season will run multiple categories, including a women's customer class introduced earlier, and will extend to 20 cities with over 1,200 expected entrants. To date, the property has already covered 20 cities and drawn more than 4,000 participants since launching. TVS Racing views the growth as part of a wider mission to make the sport more inclusive and open to ordinary enthusiasts.

Originally launched in 2007, the initiative gave Apache owners a safe, professional setting in which to try competitive racing. It was reorganised into a formal championship in 2023. The 2025–26 edition took the series abroad for the first time, spanning India, Mexico, Colombia and Nepal and closing with a finale at the Madras International Circuit in Chennai. The third season builds on that foundation.

The championship now serves customers, enthusiasts and budding racers alike, drawing them together around performance and competition. The Apache line has over seven million international customers, backed by the Apache Owners Group, which counts more than 500,000 registered members. More details are available on the company website.

Vimal Sumbly, Head – Premium Business, TVS Motor Company, said, “TVS ARE GP has grown from a customer racing platform into a championship that embodies TVS Racing’s belief in making competitive motorsport more accessible and creating a strong pathway for racing talent. As we enter Season 3, our expansion to seven countries marks an important step in taking this racing ecosystem to a truly global stage. For us, this is not simply about expanding the championship’s footprint but about extending our racing culture, expertise and standards to riders across markets while creating opportunities for emerging talent to experience competitive racing. With a strong foundation built on championships and a deep understanding of grassroots motorsport, TVS ARE GP is evolving into a globally connected platform that will continue to nurture riders, strengthen racing communities and take the spirit of TVS Racing to the world.”

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Chinese automotive major BYD has become a participant of the United Nations Global Compact (UNGC), formally joining the world’s largest corporate sustainability initiative on 14 September 2026. The Chinese new energy vehicle manufacturer has committed to upholding the compact’s Ten Principles while embedding the UN Sustainable Development Goals (SDGs) more deeply into its corporate strategy and daily operations, with the company framing the move as a contribution to global sustainable development through concrete action.

The UN Global Compact, founded in 2000, pioneered the concept of environmental, social and governance performance and now counts more than 25,000 participating enterprises across over 160 countries. It works to translate its Ten Principles into business operations and strategic development, helping companies meet their compact responsibilities while advancing the UN’s 2030 Agenda for Sustainable Development. The initiative also promotes collaboration and partnerships aimed at addressing the challenges of globalisation and accelerating sustainability worldwide.

BYD, the world’s largest new energy vehicle enterprise, sells its vehicles in more than 100 countries and regions. Guided by its vision to cool the Earth by 1°C, the automaker stopped producing purely fuel-powered vehicles in 2022, becoming the first carmaker to do so, and aims to reach carbon neutrality across its entire value chain by 2045. Its DREAMS sustainability strategy, unveiled in 2025, rests on six pillars: decarbonisation, revolution, equity, alliance, moral integrity and shared value. In 2025, BYD delivered 4.6 million new energy vehicles and reduced carbon emissions by 46.6 million tonnes, equivalent to planting 776 million trees. It has also established a RMB 3 billion charity fund supporting education, university scholarships and the popularization of new energy vehicle technology.

The company described joining the compact as a milestone in its sustainability journey. Going forward, BYD intends to adhere strictly to the initiative’s principles and requirements, fulfil its corporate social responsibility and promote responsible governance and business practices throughout its operations while working with value chain partners to advance broader sustainable development goals.

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India Pistons, the flagship company of Chennai-headquartered Amalgamations Group, has announced the appointment of Suresh KV as Chief Executive Officer effective 14 October 2026.

The appointment marks his return to corporate leadership following a sabbatical of nearly three years spanning from January 2024 to October 2026. Prior to his sabbatical, Suresh served as President of ZF India from June 2015 to December 2023, where he led the vision, strategy, governance, and business performance across 18 manufacturing plants, eight engineering centres, three subsidiaries, and four joint ventures nationwide.

At present, IPL's major OEM customers include Hyundai Motor Company, Maruti Suzuki India, Ashok Leyland, Tata Motors, VE Commercial Vehicles, Simpsons & Co, TAFE, Mahindra & Mahindra and Greaves Cotton, among others.

He also represented the company on the Executive Committee of the Automotive Component Manufacturers Association of India (ACMA), serving as Co-Chair for its Western Chapter.

His earlier tenure at ZF included serving as Executive Director of ZF Wind Power Coimbatore from November 2010 to May 2015. He managed a 60-acre manufacturing facility producing wind turbine gearboxes, axles, and transmissions for agricultural and construction equipment, achieving an annual turnover exceeding INR 9.50 billion in 2015.

Suresh's career in the automotive and industrial manufacturing sectors spans more than three decades, including operational and managerial positions at Hansen Transmissions, High Technology Plastics India, Motherson Sumi Systems, Climate Systems India, Visteon Automotive Systems, Bajaj Auto and Asian Paints.

In his new role at India Pistons in Chennai, Suresh will oversee operations, performance execution, and growth strategy for the manufacturer.

"My nearly three-year break from the corporate world has been much the same – a welcome pause to reflect, rejuvenate and rediscover purpose. This new chapter is much more than professional achievement, alone. It is an opportunity to make a meaningful difference, create lasting value, and perhaps pursue the fifth level of Maslow’s hierarchy of needs – self-actualisation. As the saying goes, 'Old wine in a new bottle' – though I would like to believe that, with age, the wine only gets better! The break is over. The final stint begins, with renewed energy, a clearer sense of purpose, and the excitement of being back in the game," said Suresh KV.

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Japanese automotive companies Honda Motor Co and Mitsubishi Motors Corporation have signed a Memorandum of Understanding (MoU) to develop a Honda pickup truck based on the Mitsubishi Triton.

The agreement marks the first product-supply initiative between the two manufacturers, with the new Honda model scheduled to enter the ASEAN market in 2028. The collaboration originates from a strategic partnership framework established in August 2024 among Honda, Mitsubishi Motors and Nissan Motor, which explores vehicle supply arrangements to expand product lineups across international markets.

As per the agreement, Honda will enter the pickup truck segment in the ASEAN region by utilising Mitsubishi's 1-tonne ladder-frame Triton platform. For Mitsubishi Motors, the OEM supply contract will increase production volumes and vehicle assembly capacity utilisation at its manufacturing facilities in Thailand. The three partner companies continue to examine additional vehicle supply and technology-sharing initiatives.

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