Toll Tax Increase From 1 April 2025; Motor Vehicle Fines Rise Too

Toll Tax Increase From 1 April 2025; Motor Vehicle Fines Rise Too

From 1 April 2025, all drivers in Mumbai will have to pay tolls using FASTag at every toll plaza. This is in line with Maharashtra State Road Development Corporation’s (MSRDC) announcement some time ago regarding a FASTag-only system to make toll payments, which would facilitate quicker and easier passage of vehicles through toll gates. But that is not the key news. The key news is that the toll on the Mumbai-Pune Expressway will rise by three percent from 1 April 2025. This hike is expected to dig a hole of up to INR 10 in every passenger car owner every time he gets on the respective expressway. 
Fully operationalised in April 2002, the Mumbai-Pune Expressway – first of its kind in India – was built on a BOT basis. It cost more than INR 16.3 billion to complete, according to a report found on the Magicbricks.com website dated 5 February 2025. An analysis in 1994 estimated the cost to be INR 11.46 billion. 
In its affidavit in response to a PIL filed in the Bombay High Court in 2019 citing a CAG report, MSRDC – the Maharashtra state’s special vehicle that built the respective expressway – mentioned that the CAG failed to consider aspects such as traffic flow in initial years, fluctuation in interest and value of money at the time when the first contract was awarded in 2004. 
After taking into consideration the internal rate of return at 16 percent, the total amount recoverable in 2021 was INR 223.7 billion (22,370 crore), MSRDC is known to have stated in its affidavit filed by Kamlakar Phand, Chief General Manager, MSRDC, justifying the extension of contract to collect toll.  
Known as India’s highest toll collecting expressway and also the costliest, the toll collection across the nine gates of the expressway in FY2022-23 was an estimated INR 480.28 billion (48,028.22 crore). In FY2023-24, it was an estimated INR 648.09 billion (64,809.86 crore), a 35 percent increase from the previous year. The average daily collection of around INR 1.5 billion in FY2023-24 in the respective fiscal marked an all-time high. 
But then it is not just the Mumbai-Pune Expressway that will see a hike in toll tax, driving in turn the cost of consumables, essential goods etc., up, the National Highways Authority of India (NHAI) will also increase the toll tax on national highways and expressways that it governs, effective 1 April 2025, mention sources. 
This hike will also touch two-wheelers as stretches such as the Delhi-Lucknow expressway are known to charge toll from that class of vehicles as well. The toll tax increase, sources say, will be in line with the tradition to yearly revise the charges to account for changes in the wholesale price index (CPI)-based inflation. 
Not stopping there and not taking into account the poor quality as well as sheer unsafe stretches of key highways such as the one connecting Pune with Belgaum, which is said to have been under construction for many-many years now, or the one that connects Mumbai with Goa, motorists of all class of vehicles, two-wheelers included, should brace themselves to see their pockets burn a bigger hole effective 1 March 2025 as road fines increase. 
Not supposed to complain about bad road surface, unsafe road design, crater-like patches or the suddenly appearing speed humps and simply pay the roll tax, motorists found to be under the influence of alcohol will have to pay a fine of INR 10,000 and/or face a six months term in prison for the first offence. Repeat offenders will have to pay INR 15,000 and may face up to 2 years in prison.
Those riding without helmets will have to pay INR 1,000 (earlier it was INR 100) and face license suspension for three months. Failing to wear a seat belt, the fine will be INR 1,000. 
Found talking on the phone while driving, the fine will be INR 5,000. Found driving without a valid driving license, the fine will be INR 5,000. Riding triple seat on a two-wheeler, the fine will now be INR 1,000. Sans a valid insurance (insurance attracts 18 percent GST whereas buying a vehicle amounts to between 28 to 50 percent of the price being taxes!), the fine will now be INR 2,000. Besides three months of imprisonment and community service, a repeat offence will see the fine double to INR 4,000. 
The absence of pollution certificate will attract a fine of INR 10,000 along with a prison sentence of six months and community service. Dangerous driving and over speeding with attract a fine of INR 5,000 each here after. Blocking of emergency vehicles will lead to a fine of INR 10,000. Overloading of commercial vehicles will lead to a fine of INR 20,000. 
Jumping a red signal will attract a fine of INR 5,000. Earlier it was INR 500. Offence committed by juveniles behind the wheel or handlebar will lead to a fine of INR 25,000 rather than INR 2,500. A prison sentence of three years and cancelation of vehicle registration for a year besides ineligibility to get a driving license till the age of 25 will be there too. 

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    Hyundai Motor Company Bags 18 iF Design Awards For 2025

    Hyundai - iF Design Awards

    South Korean auto major Hyundai Motor Company, along with its Robotics LAB, has won 18 iF Design Awards for 2025 for its design and innovation across sectors.

    Established in 1954, the iF Design Award honours innovative designs across the globe. The two-stage selection process saw over 10,800 designs being evaluated from more than 72 nations.

    The Korean major marked 11th consecutive year of recognition at the iF Design Awards. For 2025, Hyundai Motor received 18 awards across eight disciplines and 12 categories.

    SangYup Lee, Executive Vice-President and Head of Hyundai and Gensis Global Design, said, “This recognition from iF Design Award is a testament to the exceptional dedication exhibited by our team of visionary designers and collaborative engineers. It highlights the remarkable competitiveness of Hyundai’s design identity within the global market.”

    Hyundai’s 2025 iF Design Award highlights
    Automotive:  IONIQ 9, PALISADE, INITIUM, Smart Taxi Indicator, Global EV Home Charger, E-pit EV Fast Charger, DICE (Digital Curated Experience) concept, Multi-Hanger set
    Product Concepts:  SPACE (Spatial Curated Experience) concept
    Industry:  Robotics LAB’s X-ble Shoulder industrial wearable robot
    Service Design:  Robotics LAB’s ACR (Automatic Charging Robot) Service
    Interior Architecture:  ‘Inside the City of Ease’ booth design at CES 2024, IONIQ Lab
    User Experience:  Robotic Retail Experience at IONIQ Lab
    Campaigns and Film & Video:  FIFA Women’s World Cup ‘How far we’ve come’ campaign
    Publishing:  All-New SANTA FE Launching Book
    Branding:  AD Creator for Hyundai Car Dealers

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      Gunter Butschek Joins Tata Motors Board As Independent Director

      Gunter Butschek

      Tata Motors, a leading passenger vehicles and commercial vehicles manufacturer, has further strengthened its Board with the appointment of Gunter Butschek as Additional Non-Executive Independent Director for five years (1 May 2025 to 30 April 2030).

      This marks a homecoming for Butschek, who played a key role for Tata Motors as its Chief Executive Officer from February 2016 to June 2021. He can be credited with the Tata Motors Turnaround 2.0 strategy, which saw the automaker regain lost ground in the passenger vehicle segment and expand market share in the commercial vehicle segment.

      Butschek has global experience as a professional leader of multinational companies in countries such as South Africa, China, India, South Korea and Europe. A turnaround and transformation specialist, he has been associated with companies such as Airbus and Daimler Group, to name a few.

      He currently serves as the CEO of Germany-based Cubonic, which is working on customisable light commercial vehicle solutions offering automated to autonomous driving capabilities. Butschek is also associated with UK-based Cheesecake Energy as a Non-Executive Director from 1 February 2023.

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        Kush Maini Becomes Formula 1 Reserve Driver For BWT Alpine F1 Team

        Kush Maini Becomes Formula 1 Reserve Driver For BWT Alpine F1 Team

        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.”

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          Rough Road Ahead For the Indian Auto Industry?

          Rough Road Ahead For the Indian Auto Industry?

          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.  

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