With the Monetary Policy Committee (MPC) meeting led by Reserve Bank of India (RBI) Governor Shaktikanta Das leaving the benchmark repo rate unchanged at 6.5 percent and the policy stance ‘Neutral’, the fight against high and stubborn inflation is far from over. 
With the possibility of any reduction in interest rates for car buyers a distant dream yet, the 5.4 percent GDP during the first half of the current financial year – which amounts to a two-year low – and a Rupee that seems to struggle to keep up with the US Dollar are reflective of the challenges the Indian economy has come to face.  
Against these developments that also saw manufacturing moderate considerably, it is not surprising that automakers have announced a price hike, effective 1 January 2025 for their products. 
Citing rising input costs and operating expenses, it is the passenger vehicle (car and SUV) manufacturers that are at the forefront of the price hike announcements. 
Passenger vehicle market leader, Maruti Suzuki India has announced that it will hike the prices of its vehicles by up to four percent. Mahindra & Mahindra has said that it will hike the prices of its SUVs by three percent. 
JSW MG Motor India has decided to increase of the prices of its entire model line-up by up to 3 per cent whereas Hyundai Motor India will be hiking the price of its offerings by up to INR 25,000. 
Luxury automobile manufacturers Mercedes-Benz, BMW and Audi have announced that they will increase the price of their vehicles by up to three percent each on the back of escalating material costs, fluctuating commodity prices, logistics expenses and inflationary costs. 
Stating that the price increase of passenger vehicles in January 2025 will drive up the already ‘over the roof’ prices, an industry expert mentioned that even the most basic and entry-level car – the Maruti Suzuki Alto – costs no less than INR 470,000 on-road Mumbai. 
Of the opinion that passenger vehicles are already out of the reach of many young earners and those aspiring to move up from a two-wheeler to a decent set of four-wheels, he averred that the growth of the auto industry in India during the last quarter of this financial year and the first half of the next financial year is likely to be muted. 
Any change in the monetary stance by the government and the apex bank, he said further, will take time to percolate into the national economy and its effect would be best felt during the next festive season. 
Another round of hike amid inflationary pressure of automobiles by some manufacturers in April 2025 is another possibility, it seems.  

Image for representative purpose only.
 

Comments (0)

ADD COMMENT

Link Copied!

UK-based energy major bp has reached an agreement to sell its 65 percent shareholding in Castrol to investment firm Stonepeak at an enterprise value of USD 10.1 billion. The deal follows a strategic review of the lubricants business and is expected to result in net proceeds for bp of approximately USD 6 billion.

The transaction includes USD 0.8 billion as a pre-payment of future dividend income on bp’s retained 35 percent stake. The valuation represents an enterprise value to EBITDA ratio of approximately 8.6x. Following the sale, a new joint venture will be formed with Stonepeak holding the majority interest and bp retaining 35 percent.

The sale is a component of bp's USD 20 billion divestment programme. To date, the company has announced or completed divestments totalling USD 11 billion.

Proceeds from the Castrol transaction will be used to reduce bp’s net debt, which stood at USD 26.1 billion at the end of the third quarter of 2025. The company aims to reach a net debt target of USD 14–18 billion by the end of 2027. bp has a two-year lock-up period on its remaining 35 percent stake, after which it has the option to sell.

Carol Howle, interim CEO, bp, said, “Today’s announcement is a very good outcome for all stakeholders. We concluded a thorough strategic review of Castrol, that generated extensive interest and resulted in the sale of a majority interest to Stonepeak. The transaction allows us to realise value for our shareholders, generating significant proceeds while continuing to benefit from Castrol’s strong growth momentum. And with this, we have now completed or announced over half of our targeted USD 20bn divestment programme, with proceeds to significantly strengthen bp’s balance sheet. The sale marks an important milestone in the ongoing delivery of our reset strategy. We are reducing complexity, focusing the downstream on our leading integrated businesses, and accelerating delivery of our plan. And we are doing so with increasing intensity – with a continued focus on growing cash flow and returns and delivering value for our shareholders.”

Anthony Borreca, Senior Managing Director, Stonepeak, said, “Lubricants are a mission-critical product, which are essential to the safe and efficient functioning of virtually every vehicle, machine, and industrial process in the world. Castrol’s 126-year heritage has created a leading market position, an iconic brand, and a portfolio of differentiated products that deliver meaningful value to its customers. We are excited to work alongside Castrol’s talented employees, coupled with bp’s continued guidance as a minority interest holder, as we support the business’s continued growth.”

The transaction is expected to complete by the end of 2026, subject to regulatory approvals. bp stated that the move allows the company to simplify its portfolio and focus its downstream operations on integrated businesses.

Comments (0)

ADD COMMENT

Link Copied!

The Automotive Skills Development Council (ASDC), in collaboration with the Central Board of Secondary Education (CBSE) and Toyota Kirloskar Motor (TKM), concluded the National Automobile Olympiad (NAO) 2025. The event took place from 17–19 December at Toyota’s manufacturing facility in Bidadi.

The initiative, aligned with the Skill India Mission, is designed to introduce school students to careers in the automotive and mobility sectors. The Olympiad saw participation from 175 students in Classes VI to XII. These participants were selected from an initial pool of over 136,000 students from schools across India and the UAE.

The three-day event included:

• Industry Masterclasses: Sessions led by experts on automotive fundamentals and emerging technologies.
• Technical Challenges: Competitions covering robotics, welding precision and technical problem-solving.
• Future Mobility Modules: Exposure to hybrid vehicles, data science and AR/VR tools.
• Industry Immersion: Visits to the Toyota manufacturing plant, the Toyota Technical Training Institute (TTTI) and test-track experiences.

The Olympiad concluded with the announcement of winners across three categories:

Dr Biswajeet Saha, Director, Training & Skill Education, CBSE, said, “We are delighted to see Toyota Kirloskar Motor hosting National Automobile Olympiad, which perfectly aligns with CBSE’s vision of experiential and skill-based learning. Events like this provide students with invaluable exposure to real-world automotive excellence and industry best practices. They also bridge the gap between classroom learning and practical application, inspiring young minds.”

Vinkesh Gulati, Chairperson, ASDC, said, “National Automobile Olympiad is a powerful platform to spark curiosity and channel young talent toward the automotive sector. ASDC is committed to building a future-ready workforce, and collaborations such as this with Toyota Kirloskar Motor provide students early exposure to real-world industry practices. The enthusiasm and technical aptitude displayed by participants reaffirm our belief in India’s next generation of mobility professionals.”

G Shankara, Executive Vice-President, Toyota Kirloskar Motor, stated, “We are proud to collaborate with ASDC in nurturing young minds through NAO 2025. By offering experiential learning and access to world-class skilling infrastructure, we aim to inspire students to innovate and contribute meaningfully to the future of mobility while supporting the Skill India vision.”

The programme concludes a cycle of assessments and training intended to bridge the gap between academic learning and industrial application in the automotive sector.

Comments (0)

ADD COMMENT

Link Copied!

The Society of Indian Automobile Manufacturers (SIAM) has launched the National Road Accident Reduction Challenge 2026 under its ‘Safe Journey’ initiative. The competition invites undergraduate students across India to develop solutions aimed at improving road safety and reducing fatalities.

The challenge targets undergraduate students in teams of two to four. Participants are required to submit field-tested or ready-to-implement ideas across several themes:

• User-centric interventions
• Technology-driven safety
• Infrastructure improvement
• Evaluation and enforcement

Submissions must include a 15–20 slide concept deck backed by data validation, fieldwork, or prototypes. The deadline for nominations is 15 January 2026, with final projects due by 1 March 2026.

Shortlisted teams will present their projects to a jury consisting of representatives from SIAM, vehicle manufacturers (OEMs), transport authorities and NGOs. The winning team will be awarded a cash prize of INR 250,000 at the SIAM SAFE Annual Convention 2026.

Prashant K Banerjee, Executive Director, SIAM, said, “In India, around 485 people lose their life daily due to road accidents. India’s young minds have the power to drive real change on our roads. The National Road Accident Reduction Challenge 2026 is designed to channel their creativity, problem-solving skills, and sense of responsibility into practical interventions that can be implemented on the ground. By engaging students as partners in road safety, SIAM aims to foster a culture of accountability, innovation, and safer mobility for the nation.”

Devashish Handa, Executive Officer, Suzuki Motorcycle India (SMIPL), said, “Road safety is a key focus area of Suzuki Motorcycle India’s CSR efforts. We believe that student-led innovation can contribute meaningfully to safer mobility in India. Through SIAM’s National Road Accident Reduction Challenge 2026, we aim to strengthen road safety ethics among the young generation and encourage practical, on-ground interventions to help bring down road fatalities.”

Comments (0)

ADD COMMENT

Link Copied!

South Korean automotive major Hyundai Motor Company has announced a partnership with the International Cricket Council (ICC), serving as a Premier Partner for tournaments between 2026 and 2027. The agreement covers six major ICC events across multiple formats, including the Men’s Cricket World Cup 2027.

The partnership grants Hyundai exclusive rights for the international cricket calendar. These include participation in matchday moments such as the coin toss, in-stadium branding and fan experiences.

The collaboration aligns with Hyundai Motor’s sports strategy, which focuses on sports in specific regions. Cricket has an audience of over 2 billion fans, providing the brand with a platform to connect with audiences in markets such as India. This deal marks a return to the sport for Hyundai, which previously collaborated with the ICC from 2011 to 2015.

Hyundai subsidiaries will collaborate to offer vehicle showcases, interactive zones and digital engagement initiatives during matches. The partnership was announced at the Narendra Modi Stadium in Ahmedabad, India.

Jose Munoz, President and CEO, Hyundai Motor Company, said, "Cricket and Hyundai share a relentless drive to improve and the resilience to rise to every challenge. We are honoured to partner with the ICC and connect with over two billion passionate fans worldwide. In key markets like India, where cricket is a way of life, this partnership deepens our connection with the customers and communities who inspire everything we do. We look forward to creating memorable experiences together at these iconic tournaments."

Jay Shah, Chairman, ICC, said, "Cricket is among the world's most popular sports, with over two billion fans whose passion is especially evident during ICC's marquee events. These global events offer an excellent opportunity to engage fans through innovative digital and in-stadium integrations. We welcome Hyundai as a Premier Partner and look forward to delivering outstanding events together. Hyundai is a global brand that has long supported sports, and we look forward to maximising our combined strengths at these events."

Tarun Garg, Managing Director & CEO Designate, Hyundai Motor India, said, "This partnership reflects Hyundai's strong commitment to India and growing importance of India market in Hyundai's global operations. We look forward to some thrilling cricketing action and are ready with a 360-degree communication approach across PR, digital, experiential and dealerships to maximise this opportunity across the country."

Comments (0)

ADD COMMENT

Link Copied!