Q: Globally, the car care market is bigger than the automotive aftermarket for paints. How is it in India. What is your current share in car care business and how do you plan to enhance it?

Malhotra: Car Care business is a new domain for us and we are just starting out. Globally and in India too, this is a large business area with potentially a larger market size than automotive aftermarket for paints. We are studying this business and working out our strategy. We will be offering our car care products as a product solution, through online and other channels, and as a service directly by us and our partners as well. This is an exciting area and you will soon see us becoming more visible.

Q: Your intent was to become a solutions partner, expanding into different areas like car care etc. Can you update on this journey?

Malhotra: We see ourselves emerging as a total solutions partner for customers, with car care encompassing refinishing of the paint as well. We call ourselves an augmented Finishing solutions company so our purpose is to provide excellent, unmatched finishing solutions for any surface, including cars.

This positions us quite uniquely in the market as no other player will be able to integrate paint into the car care proposition.

Q: Following car care technologies from the parent company in Japan may not be helpful as the geographical conditions are different in India. How do you customise it? Is your Indian R&D helping it?

Malhotra: While we leverage the knowledge and technology developed by our parent and sister companies, we essentially follow the market requirement. So we are in terms of technology and developments. We make for India, make in India and provide our solutions across India. That is how we operate.

For the automotive aftermarket business, our R&D set up in India is quite extensive and well resourced. Our technology centre in Manesar serves us well – both for the Indian market and as a key resource for the global business. This is where we do bulk of our developments – whether for paints or car care products.

Q: Till few years ago ceramic coating was popular in India. What is the current trend and how do you cater to the every changing customers’ expectations?

Malhotra: Ceramic coating is still quite popular but there are other products available too for the consumer. Our approach is to use our knowledge of surfaces and surface coatings to create unique and differentiated products for our customers. In this respect, we are developing new technologies. One of the unique products we have in this space is our CyGlaz clearcoat 9905 which creates a very strong film that far exceeds the performance of any normal coating or even a ceramic coating. So, there is a lot more in our kitty and we will soon be launching such products and services.

Q: What is Nippon’s USP? What are the compelling reasons for customers to look for NPI?

Malhotra: Every company tries to build its own compelling solution. Our differentiation comes from our widespread dealer network, our presence in over 1,000 towns in India, our unique products and services, our amazing sales and service team, our embracing of new ideas and platforms, our willingness and ability to customise, our short TAT between concept to creation and many more things. And all this stems from our unique DNA which makes us Nippon Paint. And this DNA is what makes us click across Asia Pacific and makes us the force that we have become.

The automotive aftermarket space is relatively very new for Nippon Paint and it is only in 2014 that we started focusing on this space as a separate, identified international business. So all that we have created is only in a short period of five to six years as compared to our illustrious competitors who have decades of legacy and knowledge. But I also feel that our freshness and ideas are helpful to give us a different perspective of the industry and emerging opportunities our uncluttered mind gives us speed to execute.

Q: Tell us about the Velocity Repair System; how many outlets are functional now and what the target for the next five years?

Malhotra: When we launched our Velocity Repair programme, there were not too many takers for it. Now, people who have used this product swear by it and use it extensively. In the first round, we focused on creating branded Nippon Paint Xpress Centres and set up around 50 such centres across India. Now, we take the product proposition across the country and make it available to all our major partner workshops. So, we have around 300 active users for this product line in India at this moment.

Our product proposition is still fresh and no competitors have been able to develop a similar system. In the future, we will continue to expand this portfolio and workshop network and take this to over 1,000 outlets. The key idea is for the car owner and not just the repair centre to experience this service and that’s what we are working on now.

Q: The secondary car market is always larger than the primary market and it is growing even bigger with the pandemic induced used-car sales. What kind of opportunity does this give you?

Malhotra: We are actively focused on the used car market and are working with leading used car players on the refurbishment side of things. Our solutions which give fast, efficient and high quality repairs make us the ideal paint partner for such used car companies and we are leveraging that capability.

In this field, we are also working on the concept of providing painting services and not just paint. Going forward, we see the refurbishment business relating to our used car customers growing into a very sizeable part of our business.

Q: What are the challenges NPI faced during the lockdown and COVID induced New Normal?

Malhotra: Several challenges; and we used this period to innovate. We relooked at our customer propositions. We developed and launched new products. We created new services. We set up new manufacturing concepts. We distributed our manufacturing from a single core to multiple units. We streamlined our supply chain. We localized more products and raw materials. We trained our workforce. We sharpened our optimisation focus. We developed new digital solutions. We empowered our managers. We cut our fat and become more lean and flexible. And yes, we didn’t forget our social responsibility and supported the painter community at this turbulent time.

So, in that sense, Covid-19 has been a great accelerator for us. Things that would have normally been done in a few years have been accomplished in a few months.

Q: What is the current status of the imported parts and accessories in India after the ban on imports from China? Does it anyway help affect you?

Malhotra: The paint industry has a fair share of raw materials and finished goods coming from China. At our side, we are not overly dependent on sourcing our products from China and more so, now our supply chain is more localised than ever. Yes, certain products sourcing from non-China sources is challenging but we are looking ahead at more localization and more diversified sourcing.

Q: With the life of automotive paints increasing due to technological advancements, how is the revenue being sourced nowadays?

Malhotra: We always aim to provide customers with more durable products. Our business is not impacted by the life of paint, but by the differentiation of the solutions that we offer. Our primary business in the aftermarket relates to collision repair which is not dependent on life but repair of paint due to accidents. Furthermore, as we expand into new products and new domains like wood coatings, car care, bus and application vehicles painting and light industrial coatings, our dependency even on collision repair induced paint consumption is also going down.

We always say – give the customer the best products and services and he will refer more customers to us. Give him a shoddy product with poor durability, we will shoot ourselves in the foot. So, we are absolutely clear that technology induced advancement of paint durability will always stand us in good stead.

Q: Can you tell us about your short-term and long-term plans?

Malhotra: In the short term, our plan is to utilise the learnings from the Covid induced lull to our advantage. As mentioned before, we have done a lot of things that will now help us. So, we will leverage these developments, regain our business and be back on growth. To that extent, October 2020 has been a good month where we were back on double digit growth and that gives us the satisfaction that we are back on track.

From the longer term perspective, the lockdown period has helped us to develop an alternative view about our business approach. We aim to be masters in Paint – Polish – Protect and we will be focusing on the various dimensions of this new strategy in the next two to three years. We are here to stay. And we are future ready. (MT)

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Union Minister of Commerce & Industry, Piyush Goyal, inaugurated the Electric Vehicle (EV) Zone at the International Electrotechnical Commission's (IEC) 89th General Meeting in New Delhi on 15 September 2025. The exhibition, hosted by the Bureau of Indian Standards (BIS), runs until 19 September at Bharat Mandapam.

The EV Zone, organised by the Society of Indian Automobile Manufacturers (SIAM), showcases the country's progress in electric mobility. Goyal toured the pavilion, which features 31 production-ready electric vehicles from 14 major manufacturers, including Tata Motors, Mahindra & Mahindra and JSW MG Motor.

During the event, Minister Goyal emphasised that sustainability is a core pillar of India's growth strategy. He highlighted the importance of high-quality standards in protecting consumers and boosting the competitiveness of Indian-made products on the global stage. He also stated that ‘Design in India, Made in India’ products would soon be recognized globally for their reliability and excellence.

Prashant K Banerjee, Executive Director of SIAM, expressed appreciation for the government's vision, noting that the automotive industry is committed to this journey. The IEC GM 2025 has brought together over 2,000 global experts from more than 100 countries to discuss international standards, with the exhibition also featuring advancements in smart lighting, electronics, and IT manufacturing.

SIAM’s participation is part of its commitment to sustainable mobility and achieving India's Net Zero targets by 2070. Visitors to the EV Zone can also take a ‘Digital Sustainability Pledge,’ with BIS planting a sapling for each pledge made.

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The Federation of Automobile Dealers Associations (FADA) has released the results of its Dealer Satisfaction Study (DSS) 2025. The study, conducted in partnership with the Singapore-based consulting firm PremonAsia, was announced at the 7th Auto Retail Conclave on 10th September.

C.S. Vigneshwar, President, FADA, noted that the study provides a ‘true mirror’ to the relationship between dealers and OEMs. The study surveyed over 1,800 dealer principals, representing nearly 5,000 outlets across the country. For the first time, it was conducted in nine regional languages to ensure broader participation.

• JSW MG Motor captured the top position in the 4-Wheeler Mass Market segment with a score of 868 points.
• Royal Enfield led the 2-Wheeler segment with 852 points, followed by Hero MotoCorp. Both companies showed improvement from the previous year.
• Ashok Leyland retained its leadership in the Commercial Vehicle segment with 786 points.
• The 3-Wheeler segment was included again after three years, with Atul Auto topping the category with a score of 924 points.
• Volvo Cars topped the 4-Wheeler Luxury segment with 884 points.

The industry average dealer satisfaction score was 781, a 13-point increase from the previous year. Product continues to have the highest score across all categories, indicating dealers are largely satisfied with the quality, reliability and range offered by OEMs.

Rahul Sharma, Director and COO, PremonAsia, said, "close to two-thirds of dealer sentiment is shaped by after-sales service and viability factors. While after-sales service is the most important factor, Business and viability remains a key concern for dealers. Dealers cited issues such as buyback/write-off of unsold inventory, training cost-sharing arrangements and margins on vehicles and spare parts.”

Dealer satisfaction improved in the 2-wheeler segment compared to the previous year, but it declined in the 4-wheeler Mass Market and Commercial Vehicle segments. Vigneshwar stated that while the industry is performing well on product quality, structural issues like buyback policies, training costs and dealership viability cannot be ignored.

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The Society of Indian Automobile Manufacturers (SIAM), the apex body representing automakers in the country, has announced the wholesales for August 2025.

The automotive industry saw a total of 2.23 million vehicles sold last month, which was 5 percent higher than, 2.13 million units sold for the same period last year.

In fact, barring the passenger vehicle segment, almost all segments were in the green. The passenger vehicle with sales of 321,840 units, was down 9 percent, on the back of inventory correction and automakers recalibrating dispatches as the recent reduction in Goods & Services Tax (GST) comes into effect starting 22 September.

The three-wheeler segment reported its best-ever sales performance for August with a total of 75,759 units being sold, which was 8 percent higher YoY.

The two-wheeler segment reported a healthy 7 percent growth with a robust 1.83 million units sold, which includes 1.10 million motorcycles (+4 %) and 683,397 scooters (+13 percent).

Rajesh Menon, Director General, SIAM said, “Sales of passenger vehicles in August 2025 de-grew by (-) 8.8 percent, posting sales of 3.22 lakh units as compared to August of previous year, primarily due to recalibration of dispatches by passenger vehicle manufacturers. Three wheelers posted their highest ever sales of August in 2025 of 0.76 lakh units, with a growth of 8.3 percent as compared to August 2024. Two-wheeler segment grew by 7.1 percent in August 2025, as compared to August 2024, with sales of 18.34 lakh units. The landmark decision of government of India to reduce the GST rates on vehicles will go a long way in enabling broader access to mobility and inject fresh momentum into the Indian automotive sector in the upcoming festive season.”

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India’s automotive leadership used Society of Indian Automobile Manufacturers' 65th Annual Convention to signal continuity on emissions and safety policy, a pragmatic push on biofuels and electrification and a growing dependence on software-defined vehicles, while framing exports and supply-chain resilience as medium-term priorities.

Prime Minister Narendra Modi, in a special message, said India must achieve “true self-reliance across the entire automotive manufacturing value chain,” adding that “as the nation advances towards global leadership in green and smart transportation, opportunities for investment and collaboration are immense.”

Union Road Transport and Highways Minister Nitin Gadkari said, “We will maintain global alignment on BS7 and CAFE norms to address air pollution issues,” linking the shift to alternative fuels with macro-objectives: “Moving to biofuels helps in reducing India’s crude imports and enhances farmer incomes.”

He added, “For those aiding road accident victims, INR 25,000 will be awarded to Rakshaveers,” alongside ‘insurance up to 150,000 to accident victims,’ while stating that public campaigns and NGO engagement are ‘essential to improve human behaviour to prevent accidents.’

Gadkari also said logistics costs would ‘come down to single digit by year end,’ and cited scrappage progress with ‘more than 300,000 vehicles’ dismantled to date.

Industry capacity and localisation

Union Minister of Heavy Industries and Steel H. D. Kumaraswamy said the production-linked incentive scheme has drawn ‘more than INR 295 billion of capital investments,’ and that the steel ecosystem is working on ‘developing specialised steel for the auto sector to reduce its import dependence.’

Tarun Kapoor, Adviser to the Prime Minister, urged industry to partner with the Anusandhan National Research Foundation and to scale ‘biofuels, gaseous fuel and electric mobility’ and compressed biogas, while ‘working towards enhancing presence in global markets.’

Hanif Qureshi, Additional Secretary, Ministry of Heavy Industries, noted government support to the EV ecosystem since 2015, the installation of ‘8,900+ public chargers’ and ‘around 10,900 e-buses,’ and called for investments in electric heavy vehicles.

Software-defined vehicles and AI

Rajan Wadhera, Member, SCALE Committee and former SIAM President, chaired the session on software-defined vehicles, where Dr Christopher Borroni-Bird, Founder, Afreecar (USA), said, “The path to SDVs is a major disruption for automakers.”

Dr Bird clarified distinctions between connected vehicles and fully software-defined platforms and noting rising software share in value.

A technology leader argued, “Generative AI is not simply another tool; it is a strategic enabler that is fundamentally shaping the Indian automotive sector, while acknowledging enterprise deployments are still early.”

Andreas Tschiesner, Senior Partner, McKinsey & Company, projected that “in 2035, we expect 30 percent of all produced vehicles will be built on zonal EE architectures, with cloud-managed development, AI-powered coding and virtual twins accelerating programmes.”

Exports, FTAs and supply chains

Rajesh Agrawal, Special Secretary, Ministry of Commerce and Industry, said, “India is now increasingly looking at integrating more with the world.”

He added, “We believe the next phase of growth, beyond a 4 trillion economy, will come through exporting to international markets and noting that India has signed FTAs with 27 countries.”

Sudhakar Dalela, Secretary (Economic Relations), Ministry of External Affairs, said, “the domestic market is robust but it is equally important for the auto industry to strengthen exports and diversify its supply chain, integrating into the global markets and value chains.”

SIAM President Shailesh Chandra, who is also MD of Tata Motors Passenger Vehicles and TPEM, pointed to ‘a record 5 million vehicles exported’ and called a recent UK FTA ‘a landmark,’ describing 20 percent export growth as ‘a powerful vote of confidence.’

OEM perspectives and next steps

Shenu Agarwal, Vice President, SIAM, and MD & CEO, Ashok Leyland, said commercial vehicles remain ‘pivotal for sustainable mobility,’ backing CNG and LNG in long-haul and ‘deep localisation of electric mobility.’

K. N. Radhakrishnan, Director & CEO, TVS Motor Company, highlighted ‘strong R&D momentum,’ progress on the circular economy and the need to ‘focus on developing local talent,’ adding, ‘The customer should remain at the centre of all decision making.’

Unsoo Kim, MD & CEO, Hyundai Motor India, said GST reforms have supported domestic manufacturing and rural demand and that AI will redefine mobility within enabling frameworks under Make in India.

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