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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The Society of Indian Automobile Manufacturers (SIAM), the apex body representing the automakers in India, recently organised the Automotive HR & Skilling Conclave 2025 in Chennai, Tamil Nadu, on 31 October 2025.

The event, themed ‘Accelerating Ahead: HR and Skilling for the Future of Mobility’, focused on the evolving landscape of human resources and skill development within the mobility sector.

The conclave saw participation from government officials, Chief Human Resources Officers (CHROs) of automotive firms, HR specialists and academics. Key sessions addressed topics including ‘Driving Industry Readiness: Aligning Talent, Skills & Business Goals’ and ‘Healthy, Inclusive & High-Performing: The New Workforce Mindset’. These discussions aimed at shaping a workforce ready for the future, strengthening industry-academia links, and fostering progressive work cultures.

C V Ganesan, Minister for Labour Welfare & Skill Development, Government of Tamil Nadu, observed the significant role of HR leads. He said, “HR leaders of auto companies have greater responsibilities, as they need to take care of thousands of skilled professionals working for their organisations.”

K Veera Raghava Rao, Secretary, Labour Welfare & Skill Development, Government of Tamil Nadu, highlighted the need for appropriate skills, stating, “There is a need to ensure that we have appropriately skilled people to support the ever-evolving technological landscape and to ensure that the investments made by companies are sustained.”

Industry leaders stressed the sector’s contribution to the economy and employment. Dr. Natwar Kadel, Chairman, SIAM Human Capital Group, and Vertical Head- People Strategy, Hyundai Motor India, said, “HR leaders of Auto Industry have a responsibility to ensure we continue to unlearn, relearn and innovate ourselves in a sustained manner.”

Focusing on investment in future talent, Prabhu Nagaraj, Co-Chairman, SIAM Skilling Group and Operating Head - Corporate Affairs, Honda Motorcycle and Scooter India, commented, “Investing in skills today is the key to building a strong industry tomorrow. Let us continue to collaborate, innovate, and invest in our people, because the future of mobility will be built not just in factories, but in classrooms, workshops, and training centres across India.”

Madhuri Mehta, Co-Chair, SIAM Human Capital Group and CHRO, Hero MotoCorp, said, “Auto Industry needs to evolve itself to meet the expectations of the Gen-Z as they integrate into this Industry.”

Senior HR personnel from companies including Ashok Leyland, Hyundai Motor India, Mahindra & Mahindra, Royal Enfield and Tata Motors also contributed insights during the event.

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The ADAS Show, touted as one of India’s major automotive future mobility events, has been rescheduled to 12 February 2026 from the originally planned 12 December 2025.

The postponement has been due to the prolonged heavy rains in the Pune region, which have hampered the completion of the ADAS TEST CITY infrastructure.

The event will be held at the ADAS TEST CITY within ARAI’s Mobility Research Centre in Takwe, Pune, which is a proving ground designed for the validation of Advanced Driver Assistance Systems (ADAS) and autonomous vehicles. Organisers noted that achieving the required precision for the track surface and infrastructure before December 2025 was not possible despite continuous effort.

The show, organised by Aayera, will feature live ADAS testing demonstrations by ARAI using its instrumentation. The event will also see automakers, Tier-1 suppliers and technology innovators showcase their solutions at India’s first ADAS smart city.

Syed Fareed Ahmed, Director, Aayera, said, “This extended timeline opens doors for expanded collaborations with global ADAS and autonomous technology companies, offering a larger and more robust platform for live track demonstrations, product launches and international partnerships.”

What’s more, Israel-based Foresight Automotive has also confirmed its participation at the event, where it showcases its solutions designed to provide accurate, real-time detection in complex environments for both commercial and passenger vehicles.

It will present its perception capabilities using live camera streams from both visible-light and thermal cameras. The demonstration will focus on generating depth maps and high-density 3D point clouds, which supply detailed spatial information to enhance obstacle detection and segmentation.

The company states its scalable platform is built specifically for India’s diverse conditions, from heavy urban congestion to rural roads and varying weather, supporting current Advanced Driver Assistance Systems (ADAS) needs while enabling future vehicle automation.

Annat Himmel, Vice-President of Research and Development, Foresight, will participate in a panel discussion titled ‘ADAS for the Indian Market – From Premium to Mass Adoption’ on 12 February 2026.

Oren Bar-On, Co-Chief Executive Officer, Foresight Automotive, said: “ADAS Test City provides an important platform to showcase how advanced perception technology can enhance road safety in India. We are excited to demonstrate how our 3D perception solutions not only support today’s ADAS capabilities but also lay the groundwork for the next generation of autonomous vehicles, unlocking safer and smarter mobility for the future. Foresight looks forward to strengthening collaborations with Indian OEMs, Tier-One suppliers, and technology partners to support India’s growing ADAS ecosystem.”

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Toyota Kirloskar Motor, one of the leading passenger vehicle manufacturers, has announced that 100 members of its workforce will travel to Japan to participate in the Global Skill-Up Training (GST) program at Toyota Motor Corporation.

The initiative aligns with the Government of India’s Skill India Mission and the Technical Intern Training Program (TITP), a framework between the Governments of India and Japan for skill development and talent exchange.

The Global Skill-Up Training program in Japan is an 11-month program, combining classroom sessions with on-the-job training. It focuses on Toyota’s core principles, while also preparing trainees with Japanese language, culture and civic responsibility to prepare for global integration.

The automaker, an NSDC-approved Sending Organisation, has facilitated the overseas training of over 1,000 youth to countries including Japan, Jordan, Qatar and Slovakia.

G Shankara, Executive Vice-President, Finance and Administration, Toyota Kirloskar Motor, said, “We at Toyota Kirloskar Motor are deeply committed to nurturing globally competitive talent from India. The Global Skill Up Training Program is more than just a learning opportunity; it is a journey to experience excellence, discipline, innovation, and respect on a global stage. Through this initiative, we aim to empower our youth with world class technical expertise and the values that define Toyota’s culture, while contributing to the Government of India’s Skill India vision. Together, we aspire to make India a global hub for people, solutions, and automobiles, and together we will make that vision a reality.”

Dr. Sharanaprakash Rudrappa Patil, Minister for Skill Development, Government of Karnataka, said, “We are proud to see our youth getting access to this global opportunity with Toyota. This program aligns strongly with our vision to position Karnataka as a hub for advanced skills while empowering rural talent to access world-class career opportunities.”

Sonal Mishra, Additional Secretary, Ministry of Skill Development & Entrepreneurship (MSDE), Government of India, said, “The collaboration between MSDE and Toyota under the TITP framework represents India’s growing role as a trusted global source of highly skilled professionals. This international apprenticeship opportunity will accelerate India’s contribution to global value chains and enable our youth to build future-ready careers.”

Till date, Toyota Kirloskar Motor has trained and empowered over 140,000 youth across India through its multi-tier skilling initiatives, including the Toyota Technical Training Institute (TTTI) model.

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Uber for Business, the enterprise division of Uber, has appointed Rituraj Chaturmohta as the Senior Country Manager for India & South Asia.

In his new role, Chaturmohta will lead the division’s growth strategy, focusing on strengthening partnerships with organisations, enhancing enterprise mobility solutions and driving innovation in corporate travel and employee transportation.

Chaturmohta joins Uber with experience in marketplace and platform businesses. He previously served as Head of Sales and Business Development at Airbnb.

Eric Lee, Regional General Manager and Head of Uber for Business - APAC, said, “We are delighted to have Rituraj join our leadership team to drive Uber for Business’ growth and partnerships in India and South Asia. His experience in building and scaling platform businesses, combined with his understanding of the Indian market will be instrumental in strengthening our enterprise offering.”

Rituraj Chaturmohta, Senior Country Manager, Uber for Business, India and South Asia, said, “I am thrilled to join Uber for Business to lead India and South Asia, one of Uber’s most dynamic growth markets. Uber for Business is reimagining how businesses move - with scale, sustainability, and customer centricity at the core. My focus is to deepen Uber’s relationships with our business clients, build tailored mobility solutions that drive measurable ROI, and make Uber for Business a growth partner for every company operating in this region.”

Uber for Business manages travel, meals, and commute programmes for over 200,000 organisations worldwide. In India, the division currently assists over 8,000 organisations with solutions for business travel, daily commutesand employee shift transportation.

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