From Hyundai’s first locally designed EV and luxury play to Maruti’s bold price cuts, Bosch’s caution on over-electrification, and supply chain resilience–India’s auto sector shifted gears this week with policy, product, and global strategy colliding on the fast lane.
21 Sep 2025 | 5212 Views | By Autocar Professional Bureau
The week of September 15-21, 2025 brought shifts to India’s automotive landscape, blending bold corporate moves, policy reform, and fresh geopolitical realities.
At the center was Hyundai Motor Company, which announced plans to launch India’s first locally designed electric vehicle and expand its Pune plant by 250,000 units as ...
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The week of September 15-21, 2025 brought shifts to India’s automotive landscape, blending bold corporate moves, policy reform, and fresh geopolitical realities.
At the center was Hyundai Motor Company, which announced plans to launch India’s first locally designed electric vehicle and expand its Pune plant by 250,000 units as part of its 2030 roadmap. The company also hinted at introducing its luxury marque Genesis in India amid a broader global push, while stressing that products engineered in the country are increasingly being demanded worldwide.
But it was GST 2.0 reforms that truly set the industry abuzz. Maruti Suzuki rolled out price cuts of up to ₹1.29 lakh on its entry models like the S-Presso and Alto K10, declaring it the “best time to put India on wheels.” Hyundai’s Tarun Garg forecast a surge in compact SUVs, Toyota’s Vikram Gulati called it a gamechanger for small diesel, and luxury OEMs like Mercedes and Volvo welcomed the demand boost while flagging long-term headwinds. Finance Minister Nirmala Sitharaman, meanwhile, reminded industry leaders that it was now their turn to deliver.
Industry leaders also spoke candidly on India’s global role. Tata Motors’ Shailesh Chandra highlighted how regulations have put India “on par with the world” and predicted 15-20% EV adoption by 2030. Bosch Mobility CTO Mathias Pillin described India as a rare global growth bright spot, but warned that the auto industry’s overzealous rush into EVs in Europe created too many “solitaires”.
On the supply side, Sona Comstar restored EV motor volumes without heavy rare earths after China’s export block, JK Tyre rerouted exports to Europe amid US tariffs, and SAIC reportedly prepared to cut its stake in its India JV amid investment curbs.
Meanwhile, market signals began to shift. SIAM data showed SUVs losing steam for the third straight month while hatchbacks staged a comeback ahead of GST-driven price corrections. On two wheels, Piaggio’s Diego Graffi said the time is ripe to explore the electric segment, and Matter Motor Works doubled down on its contrarian bet to electrify bikes in a scooter-dominated market.
In sum, this week showcased India’s twin realities: a booming domestic market rejuvenated by GST cuts, and a globally critical hub navigating electrification challenges, geopolitical headwinds, and shifting consumer tastes.
Here’s the detailed round-up of all major developments this week:
Hyundai to Launch Locally designed EV in India, Expand Pune Plant as Part of 2030 Roadmap
Hyundai Motor Co on Thursday said it will launch India’s first locally designed electric vehicle and expand capacity at its Pune plant by 250,000 units by 2030, reinforcing the South Korean automaker’s long-term commitment to the world’s third-largest car market.
At the company’s first CEO Investor Day outside Korea, held in New York, Hyundai Motor President and CEO José Muñoz outlined the brand’s global 2030 targets of 5.55 million sales, with 60% coming from electrified models, including 18+ hybrids and a comprehensive EV lineup.
“We are delivering comprehensive electrified portfolios across all segments, localizing production in key markets, and leveraging breakthrough technologies. Our ability to adapt quickly, combined with the power of Hyundai Motor Group’s 50+ affiliates and our unwavering commitment to customers, will enable us to continue unlocking tremendous value,” Muñoz said.
Hyundai Eyes Genesis Opportunity in India Amid Global Luxury Push
Hyundai Motor Company is weighing the potential of bringing its luxury marque Genesis to India, as part of a broader global expansion strategy that aims to strengthen profitability across regions and diversify beyond its dependence on the United States.
At the 2025 CEO Investor Day and subsequent investor interactions, President and CEO Jose Munoz said the company sees India as a solid and profitable market. Hyundai already commands the number two position with about 15% market share.
While Hyundai is not expecting to grow its overall share dramatically soon, Munoz suggested that India’s strong brand perception could open the door for Genesis.
👉 Read: All Regions Want Product from India
India’s Regulations Put Us on Par with the World - Shailesh Chandra
In this exclusive conversation, Shailesh Chandra, President of SIAM and MD of Tata Motors Passenger Vehicles and Electric Vehicles shares his views on India’s automotive growth story, global aspirations, and the EV revolution.
He explains why every company must go global to hedge risks, highlights South Africa as a key market, and notes how India’s regulations are putting the industry on par with the world. Chandra emphasizes that strong products need strong brands, with India set to be the fastest-growing auto market, clocking 6–8% growth.
He underlines that competing in India is like competing globally and that building global brands also strengthens one’s play at home. On the EV front, he points to strong government support, constant EV growth this year, and the critical question of EV versus ICE price parity.
‘Best Time to Put India on Wheels’: Maruti’s Partho Banerjee on Price Reductions Beyond GST Cuts
Maruti Suzuki India expects the recent GST rate cut on automobiles to trigger a fresh wave of car ownership in the country, with entry-level vehicles becoming substantially more affordable. The company believes this reform, combined with supportive economic measures, could unlock India’s next phase of motorisation. Entry-level cars see reductions of up to ₹1.29 lakh as the automaker passes on benefits to customers.
Among the models, the S-Presso received the highest price reduction of up to ₹1,29,600, bringing its starting price to ₹3,49,900. The Alto K10 follows with a cut of up to ₹1,07,600, now starting at ₹3,69,900. Other entry hatchbacks such as the Celerio, Wagon-R, and Ignis have seen reductions between ₹71,300 and ₹94,100. This move will significantly boost affordability and could unlock pent-up demand, especially in the entry-level market where sales had slowed in recent months.
Compact SUVs to Drive Growth, EVs Set for Next Phase - Hyundai’s Tarun Garg
Tarun Garg, COO at Hyundai Motor India, breaks down the key trends shaping the auto industry. He explains how the typical industry cycle works, noting a 2% dip between April and August but projecting a strong 5% recovery from September onwards.
With GST cuts arriving at just the right time, compact SUVs like the Venue and Exter are set to gain the biggest boost, striking the perfect balance between aspiration and affordability. Garg highlights that most upcoming launches will be in the compact SUV space, which already accounts for 28% of the market, driven by a clear shift from hatchbacks to SUVs.
GST 2.0 a Gamechanger, Small Diesel to Gain - Toyota’s Vikram Gulati
Vikram Gulati, Country Head of Toyota Kirloskar Motor, discusses how the latest GST reform marks a structural positive shift for the auto industry, strengthening growth prospects beyond initial projections and putting more money in people’s hands.
He highlights small diesel as the biggest gainer, while stressing that green technologies need stronger support to achieve mass adoption. Gulati addresses concerns around E20 fuel, assuring that there are no real damage risks, and emphasizes the role of indigenous fuels in shielding consumers from future shocks.
Despite GST Boost, Forex Pressure Keeps Luxury Car Growth in Single Digits: Mercedes' Santosh Iyer
Mercedes-Benz India expects the government’s recent GST rate cut to fuel strong double-digit growth in the short term, but has cautioned that the benefits may be tempered by macroeconomic headwinds such as rising inflation, volatile exchange rates, and the weakening of the rupee.
“An average reduction of 5-6% will have a positive impact on demand in next 4 months. For the long term, that 5-6% will be eroded with prices and it'll go back to the status quo," Santosh Iyer, Managing Director and CEO, Mercedes-Benz India told Autocar Professional.
'GST Cut to Create Short- and Long-Term Stimulus': Volvo Car's Jyoti Malhotra
The reduction in GST slabs on the automotive industry are poised to give a fillip to the sector, says Jyoti Malhora, MD of Volvo Car India. While speaking to Autocar Professional on the sidelines of the 65th SIAM Annual Convention, Malhotra said, "GST cut will create a short- and long-term demand stimulus."
He also remained confident of the EV potential in the luxury car segment and said that after rolling out the EX30 in CY25, Volvo will introduce two new EV models next year.
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After GST Cuts, Govt Says It's Industry's Turn to Deliver
Days after implementing deep cuts the tax structure with an aim to spur consumption and boost a slowing economy, Finance Minister Nirmala Sitharaman today made a strong appeal to the industry to do its part by investing more and scaling up production.
The minister said the government has delivered on demands made by the industry over the past decade.
"I have a basket of things on which government has delivered...I hope there is no more hesitation for industry to invest further, to expand capacities, to produce more in India,” Sitharaman said at the Indian Foundation for Quality Management (IFQM) Symposium 2025 where industry leaders across the automotive, aviation, and auto-component were present.
'Hopeful That Geopolitical Challenges Will be Ironed Out Soon': ACMA's Vinnie Mehta and Shradha Suri Marwah
In this interview, Shradha Suri Marwah, President; and Vinnie Mehta, Director General, ACMA, share their perspectives about how the sector continues to show resilience and stay optimistic about a possible resolution with government's focused intervention. "We are hopeful that geopolitical challenges will be ironed out soon," says Marwah - the outgoing ACMA president in this video.
'Time is Ripe for Piaggio to Look at the E-2W Segment More Positively': Piaggio's Diego Graffi
At the 65th SIAM Annual Convention held in New Delhi on September 11, 2025, industry leaders from the automotive sector discussed the way forward amidst a slew of challenges such as geopolitical constraints and the slump in the domestic market.
In this interview, Diego Graffi, Chairman & Managing Director, Piaggio Vehicles talks about the positive impact of the GST reforms introduced by the government as well as the stage being now set for the company to seriously consider entering the electric two-wheeler segment in India.
'FTAs to Unlock More Opportunities for Indian Component Makers': Nirmal Minda
In this interview, industry doyen Nirmal K Minda, Executive Chairman, Uno Minda shares his perspective on the growing opportunity for Indian component suppliers amidst stiff tariffs imposed by the US, and government's push for FTAs that will unlock more export opportunities for Indian component makers.
India to Outpace Global Growth, Multi-Pathway is the Road Ahead: Bosch’s Mathias Pillin
In a world where most mature auto markets are flattening out, global passenger vehicle sales are expected to grow at just 1–2% CAGR through 2030. India, however, is emerging as a rare bright spot where growth, ambition, and cost discipline converge.
The passenger vehicle market crossed 4.3 million units in FY25, and two-wheelers touched 19 million units, making India the world's third-largest automotive market.
For Bosch Mobility CTO Mathias Pillin, the country is no longer just an outsourcing hub but a strategic epicenter of innovation and growth. "India is the automotive market that will still grow over the next few years, while others will stagnate. We have to be here as Bosch and participate in this growth," he says.
Industry Overcommitted to Electrification, Created Too Many ‘Solitaires’ - Bosch Mobility CTO
Bosch Mobility Chief Technology Officer Mathias Pillin has cautioned that the auto industry’s overzealous rush into electrification has led to costly mistakes, particularly in Europe, where regulatory deadlines and political signals pushed OEMs into complex EV architectures he described as “solitaires.”
Pillin said that expectations of a rapid tipping point in battery EV adoption have not materialized. “We also thought that this tipping point in the new S-curve, meaning better adoption of battery electric vehicles, would come fast and really strong because consumers would adopt this technology, given the political boundary conditions and other factors. We have also seen that the amount of complexity in these e-powertrains is huge,” he noted.
Engineering Beats Geopolitics: Sona Comstar Restores Volumes Without Heavy Rare Earths
When China, which controls roughly 70% of the world's rare earth mining and 90% of global rare earth processing, in a sudden but not unexpected move decided to block the supply of heavy rare earth (HRE) to India, Sona Comstar, a major supplier to many global and Indian electric vehicle makers, like many of its peers, felt the impact. In a cascading effect, many OEMs, particularly those in the electric two-wheeler space, saw production slow significantly.
Yet just over two months later, in July, the company was back to its April-level volumes of electric motor production. For customers and suppliers alike, the rebound invited a simple question: how was that possible without any short-term visible change in the supply of heavy rare-earth minerals that are essential for these motors?
JK Tyre Eyes New Markets to Offset US Tariff Impact; Sees Mid-Single-Digit Export Gains in FY26
JK Tyre & Industries Ltd has suspended tire exports to the US market from India amid the recent tariff hike to 50% by the Trump administration on tire exports from India. The company has diversified those exports to European markets and is looking to further diversify to offset the impact of the US tariff hike, according to the company’s Managing Director Anshuman Singhania. Despite the geopolitical headwinds, Singhania expects export revenue to grow in the mid-single digits during the financial year 2026.
Currently, the US market contributes only around 3% to JK Tyre’s total revenue, limiting the company's exposure to the US tariff war. “We have stopped our exports from India to the US. But we continue our exports to the US from Mexico, as the trade tariff deal is still going on between the US and Mexico. Exports that have been cut to the US market have been diversified into other global markets. So, we have not got a hit in our business,” Singhania told Autocar Professional.
Matter’s e-Motorcycle Push in a Scooter Dominated Market
When electric motorcycle startup Matter Motor Works Pvt Ltd, was founded by Mohal Lalbhai in 2019, the electric two-wheeler market in India was still at a nascent stage. Barely 30,000 units were being sold annually, and scooters were seen as the natural spearhead of electrification.
Startups such as Ather Energy and Okinawa had entered early, Hero Electric was the established volume player, and Ola Electric was preparing to enter the scooter space. Motorcycles, the dominant category of Indian two-wheelers, were almost entirely missing from the electrification conversation. Lalbhai saw that omission as both a challenge and an opportunity.
“The idea was never about chasing a hot segment,” he says. “Scooters already had global technology solutions, from China to Europe. But motorcycles, which are 60-70% of India’s two-wheeler market, had no one solving for them. Motorcycles are tougher to engineer than scooters, and this is where India’s heart lies. Indians want SUVs on two wheels.”
Geopolitical Tensions to Container Backlogs: Managing Modern Auto Supply Risks
India is on track to become the world’s third-largest automotive market, a transformation that reflects both the country’s growing domestic demand and its emergence as a global manufacturing hub. Indian customers have become as discerning as their Western counterparts, pushing original equipment manufacturers to design India-specific vehicles for both domestic sales and export.
This evolution has created supply chains of staggering complexity. A single vehicle might incorporate components sourced locally, battery packs imported from China, and raw materials shipped from across the globe—all converging on assembly lines that operate with minimal inventory buffers. Any disruption—like a port strike, customs delay, or factory shutdown—can cascade through the entire system. The COVID-19 pandemic and subsequent supply chain disruptions have made resilience a boardroom priority.
In this environment, disruption isn’t an exception—it’s the baseline. Whether it’s rare-earth shortages from geopolitical tensions, container backlogs from regional conflicts, or the sheer complexity of managing supply chains that span continents and time zones, the ability to absorb shocks and maintain operations has become a core competency.
SAIC to Cut Stake in Indian Car Venture Amid Investment Curbs: Report
China’s state-owned automaker SAIC Motor plans to significantly reduce its 49% stake in its Indian joint venture and halt further investment, Reuters reported, citing five people familiar with the matter. The move underscores how political tensions between India and China continue to affect cross-border business.
According to Reuters, the decision follows India’s 2020 restrictions on foreign investment from neighboring countries, widely viewed as aimed at China after a border standoff that year. In an attempt to navigate these hurdles, SAIC had tied up with Indian conglomerate JSW Group to expand in the world’s third-largest auto market.
While Indian and Chinese leaders met last month to ease tensions, Reuters noted there has been little progress. For instance, Indian auto companies are still awaiting approvals from Beijing to import rare earths.
SUV vs Hatchback: Is the Tide Finally Beginning to Turn?
India's yearslong shift toward sport utility vehicles hit a wall this summer, with SUV sales declining for three consecutive months while the beleaguered small-car segment showed signs of recovery ahead of tax cuts that take effect this weekend.
Data from the Society of Indian Automobile Manufacturers (SIAM) reveals a notable reversal in buying patterns that have favored larger, more expensive vehicles for the better part of a decade. The shift comes as the government prepares to slash taxes on small cars by 10 percentage points, but the trend predates the tax move, going by the data.
The trend towards rebalancing is visible in two ways – a slowdown in the sales of SUVs, and a stabilization in the sales of the compact hatchback cars.
Schwing Stetter’s Rajeev Shalia Says Indian CE Industry Is Becoming Less Dependent on Imported Technology
India’s construction equipment sector, once heavily dependent on imported technologies, is now entering a new phase of localized innovation and frugal engineering to create India-specific solutions, says Rajeev Shalia, President, R&D, Product Design & Development, Schwing Stetter India.
“Earlier, most of the technology was brought in without keeping local needs in mind. Suppliers were also largely from outside. But over the last 8–10 years, some companies in India have started developing their own technologies and even exporting them, including us,” Shalia said, speaking at Autocar Professional’s Construction Equipment Inner Circle (‘FutureStarters of Mobility,’ a CXO Roundtable hosted by ZF Group).
He added that Schwing Stetter has recently set up a Global Competence Centre (GCC), which is already supporting operations overseas. The focus, he explained, is not on copying existing designs but on creating products built around components available in India and adapting them to domestic requirements.