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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Vedanta Aluminium has deployed its first cohort of 30 women crane pilots at the Bharat Aluminium Company  (BALCO) unit in Korba, Chhattisgarh. The group includes 20 Pot Tending Machine (PTM) pilots and 10 beam-raising operators, marking a shift toward women-led operations as the facility enters the ‘million tonne club’.

The pilots operate in a smelting environment, executing tasks for stable metal production. These responsibilities include: anode changing & covering, tapping of molten aluminium and beam raising activities across all potlines.

The deployment followed a training programme involving classroom instruction, simulator sessions and on-the-job exposure. Currently, beam-raising activities at the plant are led by women designated as Beam Raising In-Charge in each room.

The initiative is part of a broader strategy to automate core manufacturing roles and make them gender-agnostic. Vedanta Aluminium has previously implemented:

• Jharsuguda: India’s first fully women-operated potline.
• Lanjigarh: An all-women team managing the digital command centre at the alumina refinery.
• Logistics: An all-women locomotive crew for in-plant rail operations.

BALCO also integrates transgender professionals into functions such as forklift operations and security, supported by policies including financial assistance and paid leave for gender reaffirmation.

Rajiv Kumar, CEO, Vedanta Aluminium, said, “Automation and advanced technologies are reshaping how modern aluminium operations function across all our units. This transformation is creating space for a new generation of highly skilled professionals to lead critical, technology-enabled roles. At Vedanta Aluminium, we are proud to see women stepping confidently into these specialised positions across our operations. This milestone at BALCO reflects our commitment to building a future-ready workforce while fostering greater participation of women in core manufacturing.”

Naaz Fatima, a PTM pilot, commented, “Working as a PTM pilot is both challenging and deeply rewarding. What I value most is that the company trusts us with these critical operations and invests in our growth. It feels empowering to know that our work directly contributes to BALCO’s progress and that we are shaping a new future for women in industrial roles.”

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KKR, Allfleet India and PMI Electro Mobility Solutions have announced definitive agreements for a strategic partnership. KKR-managed funds will commit up to USD 310 million to scale Allfleet’s electric bus platform and enhance PMI Electro’s manufacturing capabilities.

As part of the transaction, KKR will acquire a majority stake in Allfleet and a minority stake in PMI Electro. This represents the eighth investment globally under KKR’s Global Climate Transition strategy and its first in India.

Established in 2022, Allfleet serves as the e-bus platform for PMI Electro, focusing on the ownership and operation of public transport fleets. The company is currently deploying over 5,000 electric buses under long-term service agreements with various state transport authorities across India.

The partnership will see an integrated model covering manufacturing led by PMI Electro, ownership and operations by managed by Allfleet and lifecycle support by technical maintenance and infrastructure management.

KKR’s investment is drawn from its Global Climate Transition strategy, which has committed over USD 44 billion to sustainability initiatives since 2010. The firm’s global portfolio in this sector includes transport electrification specialist Zenobe in the UK and solar developer Avantus in the US.

The capital will be used to expand Allfleet’s presence in Indian cities and support the national transition toward decarbonised urban mobility.

Neil Arora, Partner and Head, of KKR’s Climate Transition strategy for Asia-Pacific, said, “Transport electrification is a critical pillar of the energy transition, and India – with its scale, urbanisation trends and decarbonisation ambitions – represents one of the most significant opportunities for the sector globally. The differentiated combination of Allfleet’s proven, scalable platform and PMI’s manufacturing and service expertise stands out as a full-service solution in this market. We look forward to supporting Allfleet’s next phase of growth by working together with PMI and leveraging KKR’s global operational expertise and experience investing across climate transition.”

Aanchal Jain, CEO, PMI Electro and Director, Allfleet, said, “This investment by KKR marks a defining milestone in our journey and is a powerful endorsement of the integrated electric mobility platform we have built at Allfleet. PMI Electro’s vision is to create a scalable, reliable, and future-ready ecosystem that can transform public transport in India. As our cities grow and mobility needs evolve, clean, efficient, and accessible public transport will play a central role in shaping a more sustainable future.”

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Navi General Insurance has launched its motor insurance product, expanding its portfolio into the automotive sector. The offering provides a digital, app-led process for car and two-wheeler insurance with instant policy issuance and a zero-commission structure.

The company’s business model removes intermediary commissions traditionally associated with agent and dealer-led distribution. This direct-to-customer approach is intended to pass cost efficiencies to the policyholder.

Motor insurance currently accounts for approximately 30-35 percent of total premiums in the Indian general insurance market. The sector is supported by mandatory third-party cover requirements and increasing vehicle ownership.

The company’s service includes digital integration, comprehensive coverage options, electric vehicle-specific plans, add-on covers and underwriting & claims.

Vaibhav Goyal, Managing Director & CEO, Navi General Insurance, stated, “Motor insurance is one of the most widely held financial products in India, yet the buying and claims experience remains complicated. We see a tremendous opportunity to change that. As a digital-first, direct-to-customer insurer, we are cutting out commissions entirely, thus passing those savings directly to customers through competitive pricing. Simplifying finance for every Indian is at the heart of what we do at Navi, and with motor insurance, we're extending that promise to a product that touches millions of vehicle owners every year.”

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Kordsa, a subsidiary of Sabancı Holding, presented its advanced material technologies to a global audience at the JEC World 2026 trade show in Paris. The company featured its latest breakthroughs in composite technologies tailored for the aviation, energy and automotive sectors. The event also served as a platform for Kordsa to communicate its sustainable growth strategy and technological transformation to an international network of stakeholders.

Held from 10 to 12 March 2026, JEC World is recognised as the premier global event for the composites industry. By convening the entire value chain, the exhibition enabled Kordsa to prominently display its expanding role and expertise in composite materials. The company’s presence was reinforced by its international subsidiaries, including US-based Fabric Development, Inc., Textile Products, Inc. and Axiom Materials, Inc., alongside Italy’s Microtex Composites Srl., demonstrating a unified approach shaped by evolving market demands.

Among the key innovations showcased were Ceramic Matrix Composite (CMC) technologies, carbon-reinforced prepregs, thermoplastic automotive interior components and structural body parts. These solutions are engineered to deliver high performance and reduced weight while simultaneously boosting production efficiency and minimising carbon footprint. For the aviation and energy industries, the company highlighted advanced composites designed to meet stringent demands for high-temperature resistance, durability and operational reliability.

Ergun Hepvar, CEO, Kordsa, said, “JEC World is one of the most important global meeting points in the field of composite technologies. On this platform, which brings together the entire value chain of the industry, we have the opportunity to closely observe both the current state of technologies and the trends that will shape the future. This year, we clearly saw that solutions focused on sustainability, lightweighting, high performance and production efficiency are becoming increasingly decisive. At the same time, we witnessed a transformation in customer expectations towards more integrated, agile and sustainable solutions. As Kordsa, we will continue to be an active part of this transformation and to develop value-creating solutions together with our customers.”

Emphasising that Kordsa differentiates itself in composite technologies by offering an end-to-end integrated structure, from R&D and serial production to supply chain and certification processes, Hepvar further added, “The increasing demand for advanced material solutions further strengthens our position in composites. We position composite technologies as one of our two strategic focus areas in Kordsa’s future. In this field, we adopt an approach that expands technological depth, product diversity and application areas simultaneously. Composite technologies stand out as a core area shaping both Kordsa’s present and future. Our goal is to deepen our capabilities here, build a structure that generates higher added value, differentiates itself and grows together with its customers.”

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