India’s automotive industry, which contributes 7.1 percent to the country’s GDP, is set for a transformation driven by regulatory changes, including GST 2.0 reforms, customs duty adjustments and the Indo–Japan Free Trade Agreement (CEPA) said a whitepaper by Grant Thornton Bharat and the Indo–Japan Chamber of Commerce and Industry (IJCCI). It highlights how these factors are reshaping the competitiveness of the USD 74 billion auto component sector.

The rollout of GST 2.0 in September 2025 has streamlined tax structures, boosting consumer demand across vehicle segments.

• Tax Rate Changes: Small cars and motorcycles under 350cc now face an 18 percent GST (down from 28 percent plus cess), leading to price reductions. Premium vehicles, including SUVs and high-end motorcycles, now have a flat 40 percent GST.
• EV Support: Electric vehicles (EVs) continue to benefit from a 5 percent GST rate.
• Consumer Response: Following the rate adjustments, the small car segment recorded a surge in vehicle deliveries, with booking volumes rising by nearly 50 percent.
• Supply Chain Incentives: Union Budget 2025 announced customs duty exemptions on lithium-ion battery scrap and critical minerals like lead and copper to secure raw materials and support the EV sector.

Sohrab Bararia, Partner, India Investment Advisory, Grant Thornton Bharat, said, “The convergence of GST 2.0 and targeted customs incentives marks a defining moment for India’s automotive sector. Reduced tax rates, simplified compliance, and supply-chain-focused exemptions will not only elevate India’s cost competitiveness but also strengthen its positioning as a manufacturing and export hub for Japanese automakers.”

The partnership between India and Japan, supported by USD 43.3 billion in Japanese investments, is deepening through trade agreements and skill development initiatives.

• Trade Agreements: The India–Japan CEPA and the India–Japan Digital Partnership (IJDP) are fostering innovation in EVs, connected vehicles and AI-led manufacturing.
• Skill Development: Initiatives like the Japan-India Institute for Manufacturing (JIM) are training over 30,000 Indian engineers to Japanese manufacturing standards.
• Exports: Car exports from India to Japan reached USD 616.45 million in the first nine months of FY2025.

Suguna Ramamoorthy, Secretary General Indo-Japan Chamber of Commerce and Industry, said, “There is significant partnership between India and Japan in the automotive sector, particularly in the realms of hybrid and electric vehicles, and high-precision components. The Free Trade Agreement (FTA) serves as a crucial catalyst for collaboration, joint research and development, and knowledge transfer, further supported by the India-Japan Industrial Competitiveness Partnership (IJICP). Recent initiatives have greatly advanced our automotive collaboration, especially in clean mobility and advanced manufacturing. The implementation of the GST 2.0 reform stands as a boon to Prime Minister Narendra Modi’s Atmanirbhar Bharat programme, fostering an environment conducive to growth.”

The sustained policy alignment under GST 2.0, customs reforms and deeper utilisation of the Indo–Japan FTA are expected to drive competitiveness and technology transfer, accelerating India’s journey toward an innovation-led automotive future.

Image for representational purpose only: Credit Mike van Schoonderwalt/Pexels

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BOS and JRG Automotive Industries India have formed a new joint venture christened ‘BOS-JRG Automotive Systems’, which combines engineering and manufacturing resources. The partnership aims to supply shading and cargo management systems to the Indian automotive market.

As per the understanding, the new JV will see BOS hold a 60 percent stake in the venture, while JRG Automotive will hold 40 percent. The partners have made an initial investment of over USD 1 million, with an aim to generate USD 15 million in revenue within five years.

The partners have established a manufacturing facility in Bawal, Haryana, which went on stream on 10 June 2026. This site utilises production lines based on BOS systems, supported by the tooling, injection moulding and supply chain network provided by JRG. Series production is scheduled to begin in December 2026. The initial product range includes side window sunshades and tonneau covers, with plans to expand into other interior and mechatronic systems.

Pawan Goyal, Managing Director, JRG Automotive Industries India, said, "This partnership reflects our shared vision of building a world-class automotive systems company in India, combining global technology, strong localisation and a commitment to long-term value creation for customers."

Nicolaus Francke, Director, BOS-JRG Automotive Systems, added, "BOS-JRG is a strategic step towards bringing global innovation closer to the Indian market, creating a strong foundation for sustainable growth, localisation and future mobility solutions."

The venture plans to support the production requirements of passenger vehicle manufacturers in India through technology transfer and local manufacturing.

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Tsuyo Manufacturing Private Limited (Tsuyo), India’s leading e-mobility component manufacturing company and a pioneer in integrated electric vehicle powertrain technologies, has earned a place among 120 startups selected for Bharat Innovates 2026. This flagship initiative is overseen by India’s Ministry of Education and aims to identify and support the nation’s most promising technology ventures.

The selection underscores Tsuyo’s rising contribution to the domestic electric mobility sector, particularly through the development of advanced powertrain solutions. By focusing on indigenous capabilities, the company supports India’s goal of self-reliance in clean mobility and assists original equipment manufacturers in accelerating electric vehicle adoption across multiple vehicle categories.

Bharat Innovates 2026 will take place in Nice, France, from 14 to 16 June. Announced by Prime Minister Narendra Modi on 17 February 2026 during the India-France Year of Innovation, the programme is designed to mentor high-potential startups and showcase them globally. Through this platform, Tsuyo will gain mentorship, networking opportunities and international visibility to further expand its technological reach.

With two manufacturing plants in Greater Noida and over 200,000 motors sold to more than 50 original equipment manufacturers, Tsuyo leads the mid-drive electric motor segment in India. Its products serve three-wheelers, light commercial vehicles, medium and heavy commercial vehicles and off-road applications, with powertrain systems ranging from 0.5 kW to 400 kW. Continued investment in research and development keeps the company committed to India’s sustainability and manufacturing ambitions.

Vijay Kumar, Founder & CEO, Tsuyo Manufacturing Private Limited, said, "This milestone is the advocacy of the incessant effort of the entire Tsuyo team. It affirms our vision of developing globally advanced, adaptable and affordable EV powertrain technologies that are both designed and manufactured in India. As the nation accelerates its shift towards sustainable mobility, indigenous innovation will be the right pivot towards enhancing supply chain resilience, reducing technological dependence and positioning India as a global hub for electric mobility. We are eager to utilise this platform to highlight India's engineering prowess and engage with global stakeholders who share our commitment to sustainable transportation.”

Lalit Baid, Founder & COO, Tsuyo Manufacturing Private Limited, said, "Bharat Innovates 2026 offers a unique opportunity for technology companies to collaborate, learn and expand. At Tsuyo, our focus has consistently been on developing high-performance, reliable and cost-effective powertrain solutions which must meet the evolving demands of the EV industry. A key pillar of our innovation is our work on sustainable motor manufacturing without rare-earth magnets – reducing dependence on critical mineral supply chains and eliminating the geopolitical risk that comes with China-dominated RE magnet sourcing. Participation in this initiative will enable us to further enhance our innovation roadmap, forge meaningful partnerships and contribute to India's goal of becoming a global leader in electric mobility technologies."

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Mumbai-headquartered JNV Group (formerly Sujan Group) has announced the strategic appointment of Sandeep Jad as the Chief Executive Officer (CEO) of its Automotive business.

Jad brings around three decades of experience in the automotive and mobility sectors, having held various cross-functional leadership roles with prominent multinational and Indian original equipment manufacturers (OEMs). His domain expertise encompasses Strategic Sourcing, Project Management, Operations, Process Excellence and Quality Management.

JNV Group operates as a vital industrial partner to global automotive OEMs and Tier-1 suppliers, offering solutions across cars, commercial vehicles, two-wheelers and three-wheelers and the agricultural sectors. The company operates 20 manufacturing facilities in India and 3 dedicated technical centres.

The Group's automotive sector business framework comprises a diverse network of operating companies including – Sujan ContiTech AVS, Polyrub CooperStandard FTS, WBTL India, JNV Gold, Polyrub Plastics, Mega KLC Polymer Technologies, CGS and Intrenio.

Vijay J Sujan, Director, JNV Group, said, “I am thrilled to welcome Sandeep Jad to the JNV Group. His appointment comes at a crucial time as the group evolves with a new portfolio and moves into new areas such as mechatronics. Our vision includes diversifying into braking systems, including ADAS, as well as suspension products and solutions. We aim to create enduring value for customers and be among the Top 50 companies in the automotive parts vertical.”

Sandeep Jad, added, “I am excited to join JNV Group at a time when Indian automobile industry is going through big technological transformation. As we look to the future, my priority will be to build upon the legacy and at the same time focus on delivering greater value to our customers by offering them best technologies and a range of new products.”

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JK Fenner (India) has announced the appointment of Jegapriyan Govindarajan as the company's new President. Based out of Chennai, he will report directly to Vikrampati Singhania, Vice-Chairman & Managing Director of JK Fenner.

Govindarajan comes with nearly three decades of industrial and automotive sector experience to the role, with a professional track record of leading business transformations and profitable growth across both domestic and multinational organisations.

Prior to joining JK Fenner, Govindarajan served as the Managing Director & General Manager (India) at Garrett Motion Technologies India. His previous executive leadership stints include tenures as Managing Director at Tecumseh Products Company and Valeo Lighting Systems India.

He holds a Bachelor’s degree in Mechanical Engineering from Madurai Kamraj University and a Post Graduate Diploma in Business Management from XLRI, Jamshedpur.

JK Fenner operates a robust manufacturing and research network across India, consisting of 9 state-of-the-art manufacturing facilities and 4 advanced R&D centres. The company's domestic distribution channels establish an all-India market presence, complemented by an international export footprint that spans more than 50 countries.

The company supplies specialised mechanical and industrial components to critical sectors such as steel, cement, power, textiles, agriculture, and automotive original equipment manufacturers (OEMs). Its core product portfolio encompasses – Oil Seals & Hoses; Gearboxes & Geared Motors; Pulleys & Belt Tensioners; Front-End Accessory Drive (FEAD) Systems and Moulded Rubber Products.

Moving forward, JK Fenner is expanding its technical and engineering frameworks to target emerging industrial sectors. The company's long-term strategy focuses on developing components tailored for the electric vehicle (EV) ecosystem, integrating AI and digital technologies into its operations and increasing corporate focuses on environmental sustainability.

Vikrampati Singhania said, “I am confident that Govindarajan will provide strong and adept leadership and steer JK Fenner on a new growth trajectory.”

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