As automobiles prices in India go over the roof with not a decent set of four wheels to be found anywhere below INR 10,00,000 on-road, the auto industry – not only in India but the world over seems to adjust for a significant shift in technology, manufacturing, costs, expectations of buyers and the demand of the governments.

The shift in the world over for the auto industry isn’t charming to say the least with global giants like General Motors announcing huge layoffs ahead of potential turmoil. This is despite the automaker acknowledging earlier on the need to invest in alternative fuel technology and offering electric passenger vehicles.

With a market share of about 10 percent, it is behind Tesla in its home market. Tesla commands a market share of 48.2 percent as per the latest data published by Cox Automotive and Kelley Blue Book.

At the centre of the worry among automakers with a legacy the world over seems to be of the uptake in electric vehicles. It is slower than expected besides bringing competition from destinations that were until now least considered.

Besides inflation a big leading factor in markets like US and India, which has driven vehicle prices over the roof, automakers are also grappling with the geopolitical situations that could potentially disrupt the supply chains and drastically alter the prices of crude oil.

With many alternative fuel technologies such as bio-fuels, gaseous fuels and hydrogen still away from enjoying the popularity fossil fuels are, and to some extent electric/hybrid, the shifting world order for the auto industry is made complicated by the rush of various governments to tighten the regulations.

The considerable and quick elevation in prices in automobiles this factor is contributing too, has ensured that automakers address a demand trend that is not something that they were very successful at anticipating.

In India, the passenger vehicle market leader Maruti Suzuki moved away from diesel engines as the BS VI emission norms kicked in. This action seems to reflected through the sales of its Jimny lifestyle SUV as compared to that of the Mahindra Thar SUV, which is available with a petrol as well as a diesel engine.

The fact that a supplier like Cummins continues to invest in IC engines – diesel in particular – in indicative of the fact that the transition to alternative fuel technologies will still take a long time to come through.

When its does come through, it will not be just two fuels such as petrol or diesel, but a range of technologies that will have a higher bearing on costs, sustainability and convenience.

The cost to environment is a factor that seems to be not clear yet in the case of each alternative fuel technology. The gap between ‘green’ and ‘grey’ energy source is yet a considerable one to overcome.  

As it happens, a good number of jobs and enterprises in the auto industry – the world over – will be subject to greater scrutiny in terms of how they are able to navigate past the headwinds and best leverage the tailwinds.

Auto majors like General Motors and Stellantis are coming to face that scrutiny. In India too, the situation isn’t very different.  

The risk where people stop back and continue using their existing vehicles is likely to ensure a rethinking of strategy by the government regarding the route to a greener future that it would want to take without economically jeopardising the future of its people.  

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Kush Maini has become the first Indian driver in Formula 1 since 2012 by joining the BWT Alpine Formula 1 Team as their latest reserve driver for the 2025 season.

This new development not only marks the end of a 13-year hiatus for an Indian to be part of an F1 team but also makes Maini the only Alpine F1 reserve driver actively competing in the Formula 2 Championship, where he will be racing for Dams Lucas Oil. He is a valuable asset for the forthcoming campaign because of his position as the BWT Alpine F1 Team's Formula 1 Reserve and Test driver. Kush will keep testing the F1 vehicle to obtain useful knowledge and offer input in order to support the team and enhance his own growth and performance.

Last season, Maini impressed stakeholders with his performance in each of the four tests he did with the BWT Alpine F1 Team. With five podium finishes and a memorable win in Hungary, the young Indian driver had an outstanding Formula 2 season the previous year and was instrumental in Invicta Racing's Teams' Championship victory for the 2024 F2 season. In Jeddah, he also created history by being the first Indian driver to win a Formula 2 pole position. 

Maini said, "Being a reserve driver for the BWT Alpine F1 Team is an incredible opportunity and a moment of immense pride for me and my family, as it’s been my dream to represent Tricolor in F1. This is a once in-a-lifetime opportunity, and I’m deeply grateful for the trust the team has placed in me. I’m excited to kickstart 2025 and continue this remarkable journey.”

Julian Rouse, Director, Alpine Academy, said, “We are very happy to announce the expansion of Kush’s role in the Alpine Academy to include Test and Reserve Driver duties for the team this season. Kush has impressed the team across his TPC performances and Formula 2 results whilst we have been working with him, and we expect he will continue to do so in 2025. His wider role allows us to further expand our pool of driving talent who can provide support and resource to the whole team during the busy season.”

Mentor Mika Hakkinen said, “Kush’s inclusion into the BWT Alpine F1 team for 2025 as a reserve and test driver is a big step forward not only for his journey but also for Motorsport in India. As his mentor, I’ve seen his dedication and talent firsthand, and this recognition was long due.  This is an exciting time for motorsport in India, and Kush is leading the way for the next generation. The journey is just beginning – let’s support him all the way!”

Ajit Ravindran, MD, Meraki Sport & Entertainment, said, “Having this kind of representation in Formula 1, the pinnacle of motorsport, is a significant moment for India. This development opens valuable opportunities for brands to tap into Kush’s global reach and engage with a wide and diverse audience.”

The voice about India’s car market staring at stagnancy is growing amid much selling by foreign investors in the stock market. The reasons for stock market decline are said to be issues that are structural in nature as well as geopolitical. So they are local as well as global in nature. The Indian auto industry – as the largest contributor of GST to the exchequer – is also quite local and global in nature.

Like any other developing nation, it is a market where the scope for an increase in automobile population is bright but also 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.

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 automobile buyers are no longer hidden. The structural issues are also highlighted by the fact that the State of Maharashtra has announced it will levy six percent motor vehicle tax on premium electric vehicles. The state also has among the highest toll tax once out on the road. The highway network in the state is among the most lacking and unsafe. Most roads in the state have either deteriorated or 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.  

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In order to strengthen its One Team with Customers approach and establish itself as a preferred partner in the software-defined age, Tata Technologies, a multinational provider of digital services and product engineering, has announced its updated strategy and significant leadership changes. In order to assist clients in the automotive, industrial heavy machinery and aerospace industries with their transformational journeys, this strategic realignment improves agility, efficiency and sustainability.

Tata Technologies’ growth strategy revolves around customer-centric innovation, engineering excellence and digital transformation. The company is focusing on four strategic pillars to drive customer success and engineer industry transformation, namely deepening engagements with top clients, accelerating time-to-market, expanding embedded & software-driven capabilities and transforming the go-to-market approach.

As part of the growth strategy, Tata Technologies is also making some organisational changes. Anish Raghunandan is appointed as President and Client Partner – TML group. He will be in charge of Tata Technologies' interactions with Jaguar Land Rover (JLR) and Tata Motors Limited (TML). In addition to spearheading change in the Embedded Software and SDV businesses, Nachiket Paranjpe will broaden his leadership responsibilities by continuing to build the Automotive business outside of the TML Group. He will be responsible for the whole sales, solution, and delivery lifecycle. With immediate effect, Keith Matthews has been promoted to Head Sales – Aerospace Business. He will concentrate on growing Tata Technologies' aerospace division, opening doors in the fields of airframe, propulsion, manufacturing, MRO and digital transformation, and fortifying alliances with leading aerospace customers, such as Airbus. With immediate effect, Komal Chhabra has been named Head Sales for the IHM company. Chhabra will spearhead the Industrial Heavy Machinery vertical.

Warren Harris, CEO & MD, Tata Technologies, said, "Our vision of engineering a better world is rooted in delivering innovative solutions that empower our customers to succeed in the new software-defined era. The new go-to-market approach reinforces our commitment to customer-centric innovation, agility and AI-led engineering excellence. By strengthening our leadership team and sharpening our focus on embedded software, SDVs, aerospace and IHM, we are positioning ourselves to drive the next phase of growth for Tata Technologies and our customers. Our shift towards an IP-led, value-driven approach will enhance customer outcomes, accelerate premiumisation and engineer a better future for all our stakeholders including the shareholders.”

The prestigious ‘Heritage Motoring Pioneer Trophy’ for Outstanding Contributions was presented to Yohan Poonawalla, a billionaire industrialist and renowned car collector, at the 21 Gun Salute Concours d'Elegance Gurugram 2025 in recognition of his contributions to the preservation of India's automotive legacy and its global prominence. Gajendra Singh Shekhawat, Union Cabinet Minister of Culture & Tourism, presented the award.

A prominent figure in advancing India's automotive heritage internationally, Poonawalla is renowned for his ‘Yohan Poonawalla Collection’, which consists of some of the rarest and most historically significant cars in the world. His position as the world's foremost automobile collector and ambassador is further cemented by his most recent accolade at this prestigious event.

Poonawalla's love of vintage automobiles has brought him several honours, such as the Historic Motoring Awards UK's ‘Classic Car Ambassador of the Year Award 2023’ and his inclusion as the first and only Indian to be listed among the ‘Top 100 Classic Collectors of the World’. Additionally, during the Vintage and Classic Car Club of India (VCCCI) Annual Vintage Car Fiesta, Amruta Fadnavis presented him with the Vintage & Classic Car Vanguard of India Legacy Excellence Award. He also received the ‘Hero of the Rally’ title earlier this year in the Mille Miglia UAE, when he drove his renowned Popemobile on behalf of India. In addition to his impeccable collection, Poonawalla has improved India's standing in the world of classic motoring by competing in prestigious international events like the Salon Privé, Concours of Elegance Hampton Court, Concorso d'Eleganza Villa d'Este, Valletta Concours, RREC and the renowned Mille Miglia UAE Rally three times in a row.

Poonawalla said, "It is a privilege to receive this award at the prestigious 21 Gun Salute Concours d’Elegance, an event that celebrates automotive history and craftsmanship. My passion for classic cars has always been driven by the desire to preserve and showcase India’s rich motoring heritage on a global stage. This recognition is not just for me but also for keeping India’s Vintage & Classic car heritage & legacy alive.”