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Renault India CEO: CNG Rollout in Months, EV to Follow in 2028 as Part of Multi-Powertrain India Strategy

Autocar Professional Bureau — Sat, 18 Apr 2026 15:36:58

Unveiling its new mid-term plan under the FuturEReady 2030 strategy, Renault India intends to introduce seven new models alongside a diversified powertrain portfolio. Autocar Professional caught up with Stéphane Deblaise, CEO of Renault Group India, who shared insights on plans to add CNG, hybrid, and EV options within a short span of 18 months.

You mentioned dual-cylinder on the RGEP platform. What is the plan for CNG and when can we expect it?

I can tell you very soon. It’s a matter of months. We think that today around 22% of the market is about CNG, and we believe it is a very good solution because it is less expensive than gasoline. We will have the best solution in the market because we put the two gas tanks below the floor, allowing us to keep a full trunk for usage, which is an amazing solution for every customer. In addition, it is very useful for taxi drivers because they can put all the luggage they want. We will be the only ones to do so.

What is the calibration you are planning for the CNG powertrain? Will it be the 1-litre turbo with CVT?

I will not disclose everything today. Let’s say it is a one-litre turbo.

By when can we expect this to be introduced?

What I can tell you is that we are doing driving tests these days. We are conducting crash tests and calculations. We are well advanced in the project. As I said before, it is a matter of months, not years.

Was it a challenge to integrate this system, especially considering packaging and pedestrian safety constraints?

You are highlighting a very good advantage of our platform, the RGEP platform. It is an amazing platform in terms of roominess and the ability to fit a lot of things in a small space. As you know, Triber is the only seven-seater car under four metres. Thanks to this smart engineering, we were able to place these two gas tanks in a very safe way.

Will this dual-cylinder CNG technology also come to the Kiger?

I’ll let you imagine why I would do it on Triber and not on Kiger.

Will you consider CNG for Duster as well?

I will not disclose everything. Let’s speak about Bridger and the RGMP platform. The RGMP platform is the platform for Duster and Bridger. You have very different kinds of customers in India. They want diesel, gasoline, CNG, hybrid, and EV. These are very demanding customers. With the RGMP platform, we will deliver hybrid, CNG, electric cars, and gasoline, meaning nearly the full range of needs coming from customers.

On electric vehicles, when can we expect Renault EVs in India?

I said several months after the winter launch, which will be at the end of 2027.

The West Asia crisis has pushed EV sales in the country. Does that impact your decision-making?

You don’t take decisions depending on temporary issues. But for sure, it helps the market share of EVs increase. It helps customers understand EVs better, and it will help later to sell more EVs, even if the crisis is no longer there.

You have spoken about 90% localisation. Will that extend to EVs, especially considering battery cells are not localised in India?

As long as there are no cells in India, we cannot use Indian cells. We will begin with cells coming from another country. As soon as we can have cells in India, we will use Indian solutions. But we will not wait for that to introduce EVs in India. We don’t want to disadvantage our customers because some industrialisation has not been done yet. We have to offer the cars, and later, when localisation is possible, we will adapt.

How has the response been to the Duster so far?

It is just at the beginning. Word of mouth is very good. Everybody says the ride and handling are amazing, the turbo engine is amazing, and the design is amazing. Duster is back.

Has the West Asia crisis impacted your sourcing or supply chain?

We have put in place specific management on this topic because our supply chain is impacted. We have to avoid any issues in our supply. Until now, we have had no issues, but we are adapting. We are switching the plant to more PNG solutions than LPG, for instance. We are changing operations and adapting ourselves. Suppliers are also exposed, and we manage and help them if needed. Until now, it is okay, but we don’t know how long it will remain manageable.

Have you seen any impact on demand due to the crisis?

I cannot say clearly. It is too early. Maybe there is some impact, but it is not very clear yet. For sure, in the mindset of people, electric cars may become more relevant. This is what is happening in Europe, where people are thinking more about EVs due to such issues.

Exclusive: Bentley Targets 100 Cars per Year Milestone in India, Banks on New Set-up to Accelerate Sales

Hormazd Sorabjee — Thu, 09 Apr 2026 18:21:39

With a new National Sales Company structure, three dealer partners, and a sharper focus on pricing transparency, Bentley is laying the groundwork to scale up its India operations. Abbey Thomas, Head of Bentley India operations, outlines how the brand plans to move towards the landmark 100-unit mark annually, up from its historical highs of 60–70 units.

This aggressive roadmap comes close on the heels of the much-awaited India–UK Free Trade Agreement (FTA), which could significantly lower import duties for completely built units and reset pricing for ultra-luxury cars, thereby offering a significant boost to demand.

Abbey Thomas says that the company is aiming for the 100-unit sales mark in this financial year (2026–27). On the face of it, the target may appear ambitious, but the approach remains calibrated. It does depend on one caveat, which Thomas succinctly puts forth: “The 100-unit mark is achievable, but it depends on how quickly pricing becomes competitive.”

Under the new set-up, Bentley India’s strategy now rests on three key levers: streamlined pricing, stronger network control, and re-engaging its existing customer base. But the real unlock is expected to come from price reductions driven by the FTA. JLR India set the cat among the pigeons by announcing FTA-related price cuts of around 15 percent on its imports from the UK. It is logical that Bentley will follow.

With the new pricing structure awaited under the FTA, Bentley is taking a cautious approach to inventory. When Autocar India caught up with Thomas at the Bentley showroom, the limited number of cars on display stood out. But this, he insists, is intentional.

“There is clearly a wait-and-watch approach from customers today,” says Thomas.

Bentley is responding to this approach by aligning supply with demand at a time when customers themselves are understood to be delaying purchases in anticipation of potential price corrections once the FTA comes into effect.

A New Structure, a Fresh Start

Bentley’s shift to a direct NSC model, effective July 1, 2024, marked a clean break from its earlier importer-led setup. The brand now operates through three partners: Infinity in Mumbai, KUN Premium Cars in Bengaluru, and Bird Automotive in Delhi.

The move to Bengaluru over Hyderabad, traditionally a stronger ultra-luxury market, is a strategic one. As Thomas explains, customers are no longer restricted by geography. A buyer in Bengaluru can purchase from Delhi or Mumbai without any constraints, allowing the network to function as a unified national platform.

The biggest change, however, is pricing discipline. With a defined MSRP and a one-price policy across dealerships, Bentley aims to remove inconsistencies that previously affected the buying experience. Thomas notes that “there is no ambiguity anymore — we now have a one-price formula across the network.”

Backed by centralised global support in engineering, homologation, and logistics, the new structure gives Bentley far greater control over how it operates in India. More importantly, this structural reset is designed to position the brand for a step-up in volumes once pricing becomes more competitive under a lower-duty regime.

Three Dealers, Nationwide Reach

Bentley has deliberately limited its network to three partners for now, focusing on quality over scale. Each dealer is experienced in handling ultra-luxury clientele, and together they cover the entire country. Thomas believes that “three strong partners are enough to cover India at this stage.”

Aftersales has been given as much importance as sales under the new set-up. A new workshop in Navi Mumbai is already operational, while Bengaluru has separate retail and service facilities. This improved backend is expected to play a key role in building customer confidence. For the volumes it sells, Bentley believes this network is sufficient to support near-term growth and is instead focusing on utilisation and customer coverage rather than rapid expansion.

The brand has been around for decades. Bentley’s India car parc stands at around 1,000 units, of which roughly 400 are still active within the ecosystem. Instead of adding new stores and geographies, reaching out to these customers is a critical part of the growth strategy.

Abbey Thomas believes that “re-engaging existing customers is one of the fastest ways to drive volumes.” The company has initiated a centralised communication programme to bring existing owners back into the fold, highlighting improved service support and a more structured ownership experience.

Regulatory Realities

Like all import-dependent luxury brands, Bentley faces regulatory challenges. E20 fuel compliance has introduced delays in bringing new models to India, as certification is currently conducted in the UK. The company is exploring the possibility of local testing to reduce this gap.

GSR 870 norms, particularly around ADAS features, present another hurdle. Some systems designed for European conditions do not function optimally on Indian roads.

“Some global features simply don’t work in India the way they are designed,” says Thomas.

Bentley’s approach is to seek exemptions where possible or avoid bringing in variants where the customer experience could be compromised. While these are manageable, they continue to influence time-to-market and product availability.

SUV-led Demand, FTA Advantage

“India is an SUV market, and the Bentayga continues to lead our volumes.”
— Abbey Thomas, Brand Director and Country Head of Bentley India

The Bentayga continues to dominate Bentley’s India lineup, accounting for around 46–47 percent of sales. This reflects India’s strong preference for SUVs, even in the ultra-luxury segment.

It is also the model best placed to benefit from any duty reduction under the FTA, given its internal combustion powertrain, while electrified models may not immediately qualify under current terms. The Flying Spur remains the primary sedan offering, while the Continental GT and GTC cater to a more niche audience.

The Road to 100 Units

Bentley’s road to 100 units is not straightforward. It is closely tied to how pricing evolves.

“Today we can’t expand the base with the current pricing,” Thomas admits.

Under the present duty structures, the addressable market remains limited. However, a meaningful reduction in duties could significantly widen the customer base, allowing Bentley to expand the pie beyond its traditional ultra-high-net-worth buyer segment.

Even as there is an expected price benefit with the FTA, currency movements have added another layer of uncertainty to future pricing. “Pricing is the single biggest lever to expand this segment in India,” Thomas notes.

The intent, however, remains clear: pass on any pricing benefit to customers to drive demand. “We are not looking to maximise margins; we are looking to grow the market,” says Thomas. That strategy, if executed, could help unlock incremental volumes.

At the same time, Bentley is tightening its operational approach. Inventory is being carefully managed, and planning has shifted to a more flexible cycle in response to policy uncertainty. Thomas says that “planning today is no longer long-term — we are working on a half-yearly basis.”

For now, demand remains fluid, with buyers adopting a wait-and-watch approach ahead of potential price corrections. But Bentley believes the pieces are falling into place. If the FTA delivers on pricing, Bentley’s India story could be on the cusp of a meaningful expansion.

“The cars in the showroom may be few today, but the intent is to build for scale,” says Thomas.

(With inputs from Arushi Bhatia)

INTERVIEW: AI Safety is Far More Important in Car than a Data Center AI: Lars Reger

Mukul Yudhveer Singh — Sat, 04 Apr 2026 18:59:40

At a time when artificial intelligence is shaping the conversation around next-generation mobility, Lars Reger, Global CTO of NXP Semiconductors, believes that for a “rolling robot” like a car, being absolutely trustworthy, safe, and secure is far more important, and that only after these fundamentals are ensured does intelligence come into play. In an interview, he explains that the shift underway is not about making vehicles more intelligent in isolation, but about ensuring that this intelligence operates within a framework of safety, security and trust. In a detailed interaction with Autocar Professional, Reger explains why cars must now be seen as “rolling robots”, why the industry is moving from cloud-heavy AI to edge computing, and why cybersecurity will define the next phase of automotive evolution. Edited Excerpts:

We are not hearing as much about AI in cars today. Is something still evolving at the chip level?

There is a big difference between having tools like ChatGPT in the cloud and building a robot, a trusted machine, a rolling robot in that case, a car. When you ask something to a cloud system, it goes into a huge data centre, gets processed there, and comes back. But when you move into a physical system like a vehicle, everything changes.

For the robot, it becomes much more important to be absolutely trustworthy, safe and secure, because the moment it does something you do not want, it becomes dangerous. Energy efficiency then becomes the next layer, and only after that does intelligence come into the picture. As I said, for the robot, it is much more important to be absolutely trustworthy… only then is it about intelligence.

We are now shifting from these large data centre-based models into what I would call physical AI, robotics building. For that, you need smaller models, but you need to be able to trust them completely.

You describe cars as ‘rolling robots’. How does AI actually work in such systems?

There is a big misunderstanding in how people think about intelligence in autonomous driving. It is not like you take your son at 18, hand him the keys and say, you have watched driving for years, now go and drive. That does not work. We send people to driving school.

First, they learn the rules, then they learn how to apply them. That is not creativity, that is rule-based and deterministic. You have fixed rules. In Germany, you drive on the right side. In India, you drive on the left. At a red light, you stop. If there is a speed limit, you follow it.

Only inside these boundaries is there any room for flexibility. So what we are doing is boxing in the brain into a functional, safe and secure environment. That makes the robot. This is very different from asking an AI system to generate content or create something new. In a car, unpredictability is simply not acceptable.

There is a strong narrative that data is the new oil. How do you view that?

There is this nice saying that data is the new oil. It is not. Oil does not rot, oil does not become irrelevant. Data does. Every day, your eyes capture enormous amounts of raw data, but your brain processes only a very small, meaningful portion of it. The same principle applies here. Having all the data of an entire country does not help. What matters is having the right and relevant data.

That is where the science and the art lies. If you train systems with the wrong data, they will behave in the wrong way. And in automotive, that can become dangerous very quickly. You can create biased systems, systems that respond to the wrong signals, or systems that misinterpret situations. So the focus has to be on selecting the right data, training correctly and then validating those models before deploying them.

How do you see the balance between cloud and edge computing evolving?

A lot of what we are doing will move to the edge. We are already running AI accelerators with billions of parameters together with automotive microprocessors at very low power consumption. We are talking about around 7 watts. That is less energy than sending a question to a cloud system, processing it there and getting the answer back.

Now imagine billions of devices constantly sending data to the cloud. The energy required just for data transfer becomes enormous. That is something we simply cannot afford.

For many use cases, whether it is managing your car, your home systems or other devices, you can run these models locally, activate them when needed and avoid continuous connectivity. The cloud will still be there, especially for training and larger-scale processing, but a lot of real-time intelligence will sit at the edge.

With the move towards software-defined vehicles, does adding AI increase complexity?

Actually, it is the opposite. These software-defined architectures are a cleanup of functions. Earlier, you had many domain-based systems, powertrain, infotainment, connectivity, driver assistance, each with its own control unit. That led to a very fragmented system. Now we are moving towards central compute devices connected through zonal architectures. These central systems act like the spine or the cerebellum of the car.

You reduce the number of control units, simplify the software environment and create a more flexible system. With the right middleware, you can move functions between central and peripheral systems easily. It is similar to running the same operating system on different devices. You can shift applications back and forth without redesigning everything.

And where does AI fit into this new architecture?

You do not necessarily need separate systems for AI. You can integrate these capabilities into existing architectures as co-processors, as add-ons. That allows you to enhance the system without increasing complexity. You also get advantages in terms of data security because you can process data locally instead of sending everything to the cloud. At the same time, response times improve and systems become more reliable.

Cybersecurity is still not widely discussed in India’s automotive ecosystem. Should OEMs and suppliers act now?

There is no chance to build a connected device without cybersecurity. If you have an unconnected system, fine, but the moment it is connected, you need protection. The good news is that we already have many of the building blocks. The same technologies used in banking cards and biometric passports are being used in automotive systems.

Every device needs a secure identity, like a passport. A car can authenticate itself, communicate securely and prove what it is allowed to do. You need both hardware and software. Hardware gives you the anchor, software enables the system. One without the other is not enough.

Cars are increasingly becoming extensions of smartphones. How do you see this comparison?

I am always careful with that comparison. A car is not a smartphone on wheels. The smartphone is becoming a car without wheels. The risk levels are very different. With a smartphone, you are dealing with financial loss or reputational damage. With a car, you are dealing with physical harm. We think in what I call damage classes. You do not want to overrun a person.

You do not want your bank account hacked. You do not want your reputation damaged. That is why “trust your device” becomes so important. This applies not just to cars, but to all connected systems, whether it is a medical device, a home system or an industrial machine. If your fridge orders too much milk, you fix it. If your thermostat overheats your home, you adjust it. But if your car behaves unpredictably, that becomes a serious problem.

Your message for Indian OEMs and suppliers?

You cannot talk enough about cybersecurity. We are already working closely with Indian OEMs, including two-wheeler manufacturers, and I see a strong need for everyone to address this. At the end of the day, “you cannot sell a product that is not cyber secure.” If vehicles fail, if they get hacked or behave unpredictably, the trust is gone. And once trust is gone, it is very difficult to bring it back.

India can Close Testing Gap with Europe in Five Years: ARAI’s Nagesh Walke

Prerna Lidhoo — Sun, 15 Mar 2026 14:04:37

Testing infrastructure is the quiet engine behind India's ambition to become a global automotive hub. At SIAT 2026, the 19th edition of the Symposium on International Automotive Technology held from 27 to 30 January in Pune, it was front and centre. Dr Nagesh Walke, Senior Director at ARAI, spoke about how the symposium came together, the infrastructure India still needs to build, and the five-year window in which he believes the country can close the gap with Europe.

Testing, whether physical, digital or simulation-based, seems to be the real heartbeat of SIAT 2026. What did it take to get so many testing players under one roof?

Testing is the core of product validation, and product validation has become non-negotiable, both because of tightening legislative requirements and because customer expectations are rising fast. So naturally, every testing and service provider wanted to be here. We have dedicated pavilions for them, and they occupy the largest exhibition space at the show. But we also set up a separate pavilion, for the first time, specifically for advanced testing: ADAS, software-defined vehicles and AI-driven validation. That has drawn strong interest. There is also a pavilion for start-ups and micro enterprises showcasing their innovations, and a student zone where academic work is being presented directly to OEMs and visitors.

Part of the reason, surely, is that product cycles are shrinking. Is that compressing the focus onto testing?

Absolutely. Product development cycles have compressed dramatically. What used to be a sequential process, design, simulation, build and test, is now concurrent engineering. Simulation, component development and physical proving all have to happen in parallel. That puts enormous pressure on R&D infrastructure and on the speed at which testing can be turned around. The service providers here are showcasing exactly the kind of solutions that address that pressure, which is a big part of why the show is drawing so much interest.

And yet, some of the critical technologies still do not exist in India. OEMs are flying to Europe for a week or two of simulator time. What is ARAI doing to change that?

ARAI is building testing infrastructure that simply does not exist in the public domain in India today. Crash-test facilities, advanced battery test laboratories, ADAS proving grounds and simulators are either already developed or actively under development so that OEMs and Tier 1 suppliers can validate products cost-effectively without leaving the country. The goal is to support India's self-reliance in automotive development. And it is already beginning to work. Some of the facilities we have built are now attracting global users. Companies from Europe and elsewhere are coming to India to use them.

So when do we get to the point where no Indian OEM and no Tier 1 supplier needs to leave the country to test?

That is the goal, and it is a long-term one. Building infrastructure takes time. But we are closing the gap faster than most people expect. A number of capabilities that Indian companies used to have to source abroad can now be accessed domestically. The remaining gaps are being addressed, and with active government and industry support, infrastructure development is moving at a rapid pace. Within a five-year window, I believe we will be self-sufficient for all the advanced testing that the market requires.

Five years, then. Is that the timeline to genuinely compete with Europe on testing infrastructure?

Yes. And it is not just about matching Europe. We already have unique facilities where foreign manufacturers are choosing to come here. The government's customs duty exemption scheme has helped make those facilities attractive for global product development, not just for Indian programmes. So the direction of travel is already two-way.

SIAT 2026 is already the largest the country has seen. What does the next edition look like from where you're standing?

Each edition sets a new benchmark, and this one has done exactly that. The scale, the quality and the breadth of participation are all significantly higher than what we have seen before. The next edition will be larger still, and I say that with confidence, because the need for a symposium like this, one that brings every stakeholder into the same room, is only growing. India needs this kind of forum, and the momentum is clearly there.

"Technology Will Drive the Next Safety Gains": ARAI’s Reji Mathai at SIAT 2026

Prerna Lidhoo — Sun, 15 Mar 2026 13:32:48

The 19th edition of the SIAT 2026 ran from 27 to 30 January in Pune, organised by the Automotive Research Association of India (ARAI) in association with SAE India. It drew close to 285 exhibitors and around 260 technical papers, spanning everything from start-ups to legacy OEMs.

Dr Reji Mathai, Director at ARAI, spoke with about safety, powertrains, localisation, and what 2026 holds for the Indian auto industry.

SIAT 2026 is a big show. Start-ups, legacy players, India-specific solutions all under one roof. What are the highlights for you?

The pace of change has accelerated sharply. Earlier, the cycle was driven largely by emission regulations, which came every five years or so. Now a whole new set of demands is arriving at once consumer comfort, safety, and a surge of electronics and processors across vehicle systems. That's why you see so many collaborations at this edition: start-ups alongside established players, all trying to understand what's new and where they can contribute. We have close to 285 exhibitors and around 260 technical papers a rare combination of technology and its practical applicability in one place.

Let's build on two points you raised, safety and testing, and the growing role of technology and electronics. Going forward, what are the key trends in safety, and how will ARAI push that agenda?

Globally, wherever new safety regulations have kicked in, accident fatalities have started to come down even as vehicle volumes grew. In India, our fatalities are plateauing, they are not falling. So, the push is on two fronts. The first is regulation: Bharat NCAP 2.0 is on the way, and ADAS mandates are being tightened. Right now, we are at a level where driver-assist systems issue warnings and, in limited cases, intervene braking, for instance but full takeover is still ahead.

The second front is localisation. The volumes we are talking about are enormous. We need the sensors, controllers, and electronic systems to be made in India. That's where the real game-changer lies. To support that, we have set up an ADAS city — a controlled, repeatable test environment with standardised dummies and simulated scenarios. It lets OEMs validate products against Indian conditions far faster than road testing ever could.

And the ADAS city for OEMs to sharpen their testing?

Exactly. The technology and software for ADAS are largely available globally, but road scenarios differ enormously once you bring them into India. The ADAS city lets manufacturers adapt and validate much faster. On top of that, we have been capturing real scenarios across the country — a vehicle fitted with sensors has already covered 20,000 to 30,000 kilometres of Indian roads.

That data lets an OEM run a scenario on a desktop, check how its controller responds, and fine-tune it, no need to go out on the road every time. The plan is to make that database available to everyone so that the whole industry can tune its systems more effectively.

Is there a way to quantify the impact of these technologies — say, in terms of bringing road-accident fatalities down?

We can already map the trend: vehicle population has grown steadily over the past five years while fatalities have stayed flat — so, per vehicle, the rate is effectively rising. But the real impact of the current wave of technology will take another four to five years to show up in the numbers.

The nature of the intervention has changed. Earlier it was passive — seatbelts, airbags, safer brakes. Now there is an active, continuous dialogue between the system and the driver. That shift is what will move the needle, and we should start seeing it clearly by the end of the decade.

Moving to powertrains, there's a growing sense that India won't settle on a single answer. It will be a mix, much as the E20 programme borrowed Brazil's ethanol playbook. How do you see India's powertrain strategy shaping up, and what role does ARAI play?

It comes down to what a country is strong in. India is not sitting on large crude reserves, and the raw-material base for batteries is limited. But we have a vast agricultural sector. That's exactly why the ethanol story worked — we could scale it up alongside gasoline, with the OEMs, SIAM, and the government all aligned. Looking ahead, it will definitely be a multi-fuel landscape.

The volumes and growth rates we are dealing with mean no single powertrain can meet the demand. Which segment grows faster will depend on local availability and local needs. Delhi moved to CNG because of air quality; other regions may lean on ethanol or hydrogen for different reasons.

The automotive industry plan for the coming decade is still being worked out, and everyone is working backwards from the net-zero 2070 target. Energy strategy is at the centre of that conversation, and ARAI has been part of it at every stage — from E20 to EV certification frameworks.

Policy has to keep pace with that multiplicity. Hybrids, for instance, found genuine demand at the state level, yet central policy hasn't really pushed them. How do you see policy at every level keeping up with where the market is heading?

Central policy has to take a holistic view — it cannot pick one powertrain and ignore the rest. What the government has done is lay out long-horizon frameworks: PLI schemes with a seven-year runway, FAME with its own timeline.

The real mechanism that will tie it all together, though, is Corporate Average Fuel Economy (CAFE) norms. Once those are tightened, every manufacturer will know exactly what its vehicle mix needs to look like over the next five years: how many EVs, how much efficiency improvement, and what the CO₂ ceiling is. That gives the industry a clear, level playing field to plan against. I think the direction is right, and we will see more integrated solutions emerge.

Two years of incentive support doesn't give automakers much runway to plan an entire EV portfolio. On EVs specifically, do we need a longer-term policy horizon?

The initial benchmark set by NITI Aayog was around 30% EV penetration, after which market forces are expected to take over. Three-wheelers are already close to that — the total cost of ownership story is compelling, and penetration is strong. Two-wheelers are the next segment to watch; the economics are improving fast there too.

But the honest reality is that we are trying to replicate in five to seven years what the internal-combustion engine took four decades to build. That's not a fair comparison, and the ecosystem — charging, components, supply chains — needs time to mature.

The good news is that manufacturers are preparing: localisation is being prioritised, and dependence on government incentives is consciously being reduced, because everyone knows those will eventually phase out.

Around 40% penetration for two-wheelers?

Once that threshold is reached in two-wheelers, we are talking about a very large volume segment. The ecosystem will need to scale in proportion — more resources, deeper supply chains, and more robust systems. But the trajectory is encouraging.

Do you have any projections you'd like to put on the table at this point?

I'll leave the projections to the government and the planning bodies. What I will say is that the fundamentals are in place, and as the systems become more robust and resources scale up, focused penetration gains in each segment will follow.

Reskilling is another thread you've been focused on. As technology accelerates and regulations tighten, what will ARAI contribute on that front?

The approach has been to get ahead of the curve — ideally two years before a new requirement comes into force. When battery technology was ramping up, the Ministry of Heavy Industries stepped in with support, and ARAI was ready with testing capability when the industry needed it. The same happened with ADAS: by the time manufacturers started looking for validation tools, we already had them.

Now we are building a hydrogen cylinder test facility, because hydrogen is clearly the next conversation. The pattern is the same: watch what is happening globally, map it to India's roadmap, and build the capability in advance. That way, when policy or demand arrives, the infrastructure is already there.

Finally, three key trends that will define 2026 according to you?

2026 is short-term. The trends are already in motion. ADAS adoption will continue to accelerate. The alternate-fuel market will stabilise, even if the exact mix is still being worked out. And there will be a sharper focus on consumer education, particularly around driving behaviour — because without that, no amount of technology will deliver the safety outcomes we need.

Longer out, the big shift is toward software-defined vehicles. How much software enters the vehicle, and how well it is integrated, will determine performance and efficiency in ways we are only beginning to understand. And with that comes the critical question of data — how it is collected, stored, and secured. Cybersecurity, in short, is going to be a defining issue.

"ADAS Features will Eventually Become Common Across Vehicles": Dr. Reji Mathai, Director, ARAI

Hormazd Sorabjee — Wed, 11 Mar 2026 17:38:54

Advanced Driver Assistance Systems, or ADAS, are rapidly becoming part of everyday automotive vocabulary. Once seen only in luxury vehicles, features such as adaptive cruise control, automatic emergency braking, and lane-keeping assist are gradually entering mainstream cars. The promise is simple but powerful: prevent accidents before they happen.

For a country like India, where road safety remains a critical challenge, the potential impact is enormous. India records more than 1.5 lakh road fatalities every year, making it one of the most dangerous road environments globally. For years, safety conversations focused largely on passive safety features such as airbags, crash structures, and safety ratings under programs like Bharat NCAP.

ADAS represents the next step: active safety systems designed to avoid accidents altogether. But there is a complication. Most ADAS technologies have been developed and tested in markets with structured traffic, clearly marked lanes, and disciplined driving behaviour. Indian roads present a very different environment, comprising dense traffic, mixed vehicle types, inconsistent lane markings, and unpredictable driving patterns.

Recognising this gap, the Automotive Research Association of India (ARAI) has launched the country’s first dedicated ADAS Test City near Pune. Spread across 20 acres in Takwe near Talegaon, the facility recreates Indian road scenarios in a controlled environment. The goal is to allow automakers to test, validate, and calibrate ADAS technologies specifically for Indian conditions.

The initiative was formally unveiled during the 3rd edition of The ADAS Show, attended by government officials, global OEMs, suppliers, and technology companies. The facility includes simulated urban environments, complex intersections, lane variations, and testing equipment designed to replicate real-world driving scenarios.

In this conversation, Dr. Reji Mathai, Director of ARAI, explains why India needed its own ADAS testing ecosystem, the role of data and artificial intelligence in developing autonomous systems, and how safety regulations like Bharat NCAP 2.0 could accelerate adoption.

He also outlines why ADAS technologies must be adapted to India’s challenging road conditions and why the journey toward safer, smarter vehicles may be faster than many expect.

ADAS is now becoming part of everyday automotive vocabulary. It is also seen as a key technology that could eventually become mandatory for safety. What makes this new facility important?

I can say that the response to this technology has been overwhelming. ADAS is something we are looking at seriously because it can help address the problem of road accidents and fatalities in India.

If you look at how things have evolved over the past four or five years, we have been thinking about how ADAS features should be brought into the country. One advantage we have is that India participates in regulation discussions at the United Nations level. This allows us to understand how other countries are adopting technologies and how much of it can be adapted for India.

But the objective is not just about creating regulations or issuing guidelines and saying that the requirements have been met. The outcome has to be much larger than that. That is where the thought of building an ADAS Test City came into our plans.

What you see today is still under development. However, once you see the facility and the trials conducted here, you will realise that the idea is to recreate real city conditions in a controlled environment.

Testing technologies abroad and then validating them here is something the industry already does. This facility provides another tool for manufacturers. Ultimately, the goal is that consumers should benefit from safer vehicles.

How challenging is it to develop or calibrate ADAS systems for Indian conditions?

If you look at how technologies are adopted globally and how their impact is measured, we have not always been the best example. Take emissions or safety regulations. In many countries, once regulations are implemented, you see clear improvements in air quality and a reduction in fatalities. In India, we see something different. Our air quality has remained at high levels, around 200 to 300 in many places, even though the economy and vehicle population continue to grow at 8–9% every year. It has not worsened significantly, but it has also not improved as expected.

The same applies to road safety. We still have around 1.5 lakh road fatalities every year. That shows how serious the issue is. So when you ask whether global ADAS technologies can be adopted here, the answer is not always straightforward.

Many of you may have already experienced this. Some systems calibrated for other conditions may not work perfectly in India. Customers sometimes find them intrusive or not well suited for local traffic.

If these technologies do not perform well, they will not remain a strong selling point in the future. That is why validation for Indian conditions is necessary. Our road environment is very diverse. Sometimes, regulations are not implemented perfectly. Traffic density is very high in many areas.

So we need mechanisms to test these technologies repeatedly in controlled conditions. This facility allows us to reproduce scenarios again and again with slight variations. That helps manufacturers test the reliability and robustness of their systems. I believe these tracks will be very useful in achieving that.

What kind of Indian driving conditions have been built into this facility?

We have tried to recreate many scenarios that are typical in Indian cities. For example, we have situations where four lanes merge into two lanes, which is quite common on our roads.

We have S-curves, multiple types of intersections, and crossings that are not always perpendicular. There are also parking areas where guided or autonomous vehicle functions can be tested. We have lane markings as well as sections without lane markings because that is something we often see on Indian roads. Essentially, any variation you want to simulate in real conditions can be recreated here.

We are also introducing testing robots and dummies. We are working on India-specific dummy objects, such as three-wheelers and auto-rickshaws, which are rarely seen in global testing environments. These vehicles are common on Indian roads, so we need to include them in testing scenarios.

There is also a large amount of data acquisition happening. Many OEMs are already collecting this data. At ARAI, we have also conducted around 30,000 to 40,000 kilometres of testing.

But we have observed that data collection challenges vary depending on the vehicle type. A truck behaves differently from a passenger car. The data requirements also differ. All these variations will influence how quickly we can adapt the technology and deliver reliable solutions.

Data and artificial intelligence are becoming central to ADAS and autonomous technologies. How big is the challenge there?

This area looks very attractive from the outside. Many people want to enter it. But when you actually start working on it, you realise the complexity. One of the biggest challenges is the volume of data. In just a few hours or a single day of testing, you can generate terabytes of data. Managing that data becomes a huge task.

You have to ask several questions. Where do you store the data? Do we have sufficient processing centres? Who owns the data? There are also privacy concerns. For example, data captured during testing may include faces or vehicle number plates. That information cannot simply be made public. So there are regulatory and privacy issues as well.

Another challenge is converting raw data into a format that engineers can easily use. How quickly can we process and analyse the information? This is where collaboration becomes important. At events like this, you see many stakeholders working across different aspects of the ecosystem.

In fact, this is the first time since the development of the internal combustion engine that we are seeing such a wide range of new players entering the automotive ecosystem. Many of these stakeholders did not need expertise in ICE technology. But now they are becoming important contributors to the future of mobility.

Do you think India will lag behind global markets in ADAS adoption?

There are a few factors that could help ADAS grow faster in India. One of the most important is infrastructure standardisation. At the UN level, there are discussions under WP29, which focuses on vehicle regulations and mobility technologies. There is another group, WP1, which looks at road infrastructure. In many countries that have advanced ADAS systems, these two aspects, vehicle technology and infrastructure, are aligned.

In India, we need stronger alignment between the two. One possible approach is to identify specific geographies or corridors where infrastructure can be standardised. If we demonstrate that ADAS works reliably in these areas, it will help build confidence.

When we proposed this project, we were asked an important question. The ADAS Test City required a significant investment of around ₹40 crore just for the test tracks. Traditionally, test tracks do not generate direct financial returns. So the question was: will this investment create value? The answer will come when we demonstrate that these technologies are workable in India. If we can standardise certain areas and activate ADAS functions successfully there, it will show the way forward.

Could safety regulations accelerate ADAS adoption?

Certification is often like a pass mark. It tells you whether a vehicle meets the minimum requirement. But it does not always tell you how well the vehicle performs beyond that. Programs like Bharat NCAP help push manufacturers beyond the minimum regulatory requirements. Features that are not mandatory can still be included to achieve higher safety ratings. With Bharat NCAP 2.0, which may come into effect around 2027, ADAS features are expected to play a larger role. Overall, it is a good starting point. Manufacturers aiming for higher safety ratings will naturally start including more advanced safety features.

Do you see a future where all cars in India have ADAS?

I believe the journey may move faster than we expect. The level of response we see today is already much higher than what we saw a few years ago. Vehicle-to-vehicle communication is likely to become an important development in the future. Imagine a scenario where a vehicle ahead suddenly brakes. Your vehicle receives that information instantly and activates safety functions. That kind of communication can enhance ADAS capabilities significantly. Sensor localisation and improved responsiveness will also play a major role.

We have already seen a similar evolution with airbags. Initially, vehicles had only front airbags. Later we moved to multiple airbags. Today, six airbags have become standard in many cars. ADAS will follow a similar path.

Whether you like it or not, these features will eventually become common across vehicles. The real question is how useful and customer-friendly they will be. Facilities like this will help ensure that the technologies are practical and relevant for Indian roads. And that is what will ultimately determine how fast they spread across the market.

Marposs Eyes India as a Top-three Market in Five Years

Kiran Murali — Fri, 06 Mar 2026 22:56:06

As Marposs sets sight on high-growth markets, India is emerging as a strategic priority in the group’s game plan. The Italian precision engineering company, known for its grinding, measurement and machine-monitoring systems, currently counts India among its top 10 markets. However, on the back of rapid industrial expansion, technology upgrades, the country is expected to be in the top three list over the next five years.

Cosimo Cereda, managing director of Marposs India operations, sees the opportunity here on two fronts. On one side, India’s industrial base is expanding in double digits, particularly in automotive and advanced engineering spaces. On the other side, manufacturers are moving up the value chain with tighter tolerances, better process control, and global quality benchmarks. For Marposs - whose solutions are for precision and defect prevention - that transition creates structural demand, not just a cyclical opportunity.

Electric mobility is a central pillar of this opportunity. The company is positioning itself to replicate in India the EV production solutions it has already deployed globally - from battery cell testing and pack validation to gearbox assembly and die-cast structural components.

At the same time, aerospace is emerging as one of the fastest-growing segments here, as rising domestic air traffic and localised production by global OEMs bring demand for high-precision solutions. Over the long term, semiconductor fabrication presents another opportunity with India looking to scale the fab ecosystem.

To support this growth potential, Marposs is working on a localisation roadmap. It plans to raise local manufacturing in India to nearly 50% over the next five years from 20% through the expansion of production and engineering capabilities.

Could you explain Marposs’ core business areas for our readers?

Marposs was created around grinding technology. Grinding is the final stage in metalworking for extremely tight dimensional accuracy. When a metal part is cast or machined, it is still slightly oversized. Grinding removes microscopic amounts of material using synthetic abrasive tools to reach exact tolerances, sometimes down to thousandths of a millimetre.

Over time, the company expanded into measurement systems that verify whether parts meet dimensional specifications, testing systems that validate functionality, and monitoring systems that check, every few milliseconds, whether machines are operating correctly. Together, these technologies prevent defects, increase productivity and ensure consistent quality. The idea is not only to measure a defect after it occurs, but to prevent it from happening.

In the automotive sector specifically, where do your solutions fit in?

In automotive manufacturing, our applications span across gears, engines, bearings, brake and clutch systems and increasingly electric vehicle components. For engines, we work on crankshafts, camshafts, connecting rods and engine blocks. In electric vehicles, we test battery cells, validate battery pack assemblies, ensure sealing of battery trays and verify electrical integrity. These are critical areas for safety and durability.

Beyond automotive, we are active in aerospace, train components, generators, pumps and globally in semiconductors. Essentially, wherever high-precision metalworking is involved, we are present.

How do you view India as a market?

India is growing in two dimensions - size and technology. Industrial growth is in double digits, which makes it one of the fastest-growing major markets. But what is more interesting is how quickly the technological gap is closing.

In the past, the focus in India was strongly on cost, often resulting in lower specifications. Today, India is moving towards advanced standards, including Euro 6-equivalent combustion technologies and higher reliability benchmarks. You now see companies operating at global standards alongside more cost-driven segments. The transition is happening fast.

How has the approach to quality changed over the years in India?

There is still strong price sensitivity. That is a reality. However, we try to shift the discussion from price to return on investment. If you compare two solutions - one that costs little but generates modest returns, and another that costs more but pays for itself quickly - the second is economically superior for an industrial customer.

Our systems may have higher upfront costs, but they reduce scrap, prevent defects, increase throughput and compress production time. That lowers the cost per part. Increasingly, customers now understand this business logic.

What differentiates Marposs from competitors in India?

First, presence. Technical products require close collaboration. We currently operate six offices across India. Being close to customers is critical because precision manufacturing is not transactional; it is collaborative.

Second, technological depth. At very high precision levels, alternatives are limited. In certain monitoring and metrology applications, there are a few competitors who can offer a complete range.

Third, our approach. We do not simply sell a measuring device. We provide a comprehensive solution. If a customer wants to measure a component, we evaluate the entire production line - monitoring systems, environmental conditions, integration issues - and propose a complete setup that works seamlessly. It is the difference between selling car parts and delivering a fully assembled vehicle.

What are your priorities for India over the next five years?

The first priority is excellence. We want to position ourselves as a problem-solving partner, not just a supplier of equipment.

Second, we want to expand into new-generation applications, especially electric mobility. Globally, we have installed EV production lines for major brands. As these technologies scale in India, we want to bring proven solutions here.
Third, localisation is a key focus.

How significant is localisation in your roadmap?

Currently, about 20% of what we sell in India is locally manufactured. Over the next five years, we aim to raise that to between 40% and 50%.

We already have a small production facility in Delhi. The plan is to expand it. This is not a greenfield investment but a scaling up of existing operations, with a larger plant, expanded design capabilities and more product lines in measuring systems.

Not everything can be localised. Certain high-precision products require specialised facilities. However, selective localisation improves responsiveness and can eventually support exports.

Could India become an export hub for Marposs?

Potentially, yes. Large industrial markets such as the US and Mexico could be served from India, depending on scale and global trade dynamics. However, our primary driver remains domestic growth.

Where does India rank among your global markets today?

India is currently among our top ten markets, around seventh. Within five years, I expect India to become our third-largest market.

What is the current size of your India operations?

India contributes less than 10% of global turnover. In absolute terms, our India business is between Rs 200-300 crore annually. Over the next five years, we expect this to double to around Rs 400 crore to Rs 500 crore, depending on industrial growth and market conditions.

What share of India revenue comes from automotive?

Around 40% of our India business comes from automotive. Interestingly, aerospace is currently the fastest-growing segment here. As air travel expands and global aerospace players increase local production and maintenance capacity, demand for precision systems rises accordingly.

Globally, automotive remains dominant, but aerospace has strong growth momentum in India.

What kind of investments are planned in India?

Our India headcount is around 140 employees. The main investment is in people. We may add 20 to 30 professionals over time, but more importantly, we are investing heavily in training and capability development.

To reach excellence, you must build a strong team. That requires sending engineers abroad, exposing them to global installations and continuously upgrading skills. The investment is not only financial; it is in attention and effort.

Do you have R&D in India?

Not yet. In our model, R&D is closely linked to production. As localisation deepens, R&D could follow. For now, our focus is on scaling manufacturing and engineering capabilities.

Which are the new sectors on the horizon?

Semiconductors represent a major opportunity. Globally, we are active in semiconductor applications. As India develops fabrication capacity, we expect to participate. However, the opportunity depends on which technologies are established locally.

If you had to summarise your India strategy?

We aim to build a high-excellence, solution-driven organisation that delivers measurable return on investment to customers. India is not merely a cost-driven market; it is a technology market in transition. We intend to grow alongside that transformation.

INTERVIEW- Renault CEO Cambolive: 'India Is Renault' — Targets 3–5% Market Share by 2030

Hormazd Sorabjee — Sat, 21 Feb 2026 14:36:12

The French carmaker is committing to accelerate product launches across multiple powertrains after years of declining market presence. This marks a departure from the measured approach that allowed competitors to gain momentum through more frequent model introductions.

The slower cadence of product updates made it increasingly difficult for Renault to maintain relevance in a rapidly evolving market. Central to this reset is an ambitious plan to introduce new models annually. The launch of the Duster facelift—now available with a hybrid powertrain option—signals the first step in this renewed strategy, underscoring Renault's commitment to regaining its footing in India.

The urgency behind this shift becomes clear when examining Renault's recent trajectory. In 2016- 17, the brand sold 135,123 vehicles and commanded nearly 4% market share, buoyed by strong demand for the Duster, which helped pioneer India's SUV segment alongside the Ford EcoSport, and the Kwid, which brought fresh design thinking to the entry-level space.

However, as SUVs emerged as the dominant sales driver, Renault's limited product range struggled to sustain its market position. Volumes declined steadily, culminating in just 37,900 units sold in 2024-25, with market share falling below 1%. Reversing this decline has become critical for Renault. Beyond the Duster, the company plans to expand its portfolio across SUV and passenger car segments, including a three-row SUV that addresses the growing demand for family-oriented vehicles.

The automaker is targeting a return to 3–5% market share by 2030. On electrification, Renault is adopting a measured approach, prioritising hybrid powertrains in the near term while keeping full-scale EV deployment as a longer-term objective. By the end of the decade, Renault expects one in three vehicles sold outside Europe to feature electric or hybrid technology. Edited Excerpts:

The launch of the new Duster has been done on a large-scale, in a way not seen before in the industry. Does this send a message about how Renault looks at India after a long time?

The message is very clear: Renault is India, and India is Renault. We have been present here for 20 years, and the Duster has been one of our most important icons. With this launch, we wanted to come back strongly - with the best Duster we have ever made. Best in terms of engines, including hybrid technology, best in connectivity with Google built in, and a design that resonates with Indian customers.

There was a gap after the last Duster, even though it was such a strong icon. What lessons have you learnt, and what will be different in this comeback?

The first lesson in India is speed. You need to bring products that are refreshed every two years. That is why, what we decided to do is to increase the speed at which we are developing our cars.The second important point is that this Duster is made in India, by Indians.

We are a global company with cross-car lines around the world, but we have adjusted this Duster to Indian consumer needs. Growth of hybrid technology and SUVs is important in India, and we decided to address this from within India. What we also demonstrate again is our strength in ride and handling. I can assure you the new Duster will prove we never lost our magic, our recipe, to make a very good, dynamic car.

You mentioned launching models every two years. Does this signal a more sustained product offensive for India?

It is important to be present not only every two years, but ideally every year with new models. We can do this because we have significantly increased development speed. We are moving out of a Europe-centric approach and leveraging strong synergies across regions. India is now part of a global network with Latin America, Turkey, Morocco and Korea. This gives us scale and speed. That is why I can tell you will see many new launches in India over the next two years, not only the Duster.

With recent tax changes, the sub-4-metre segment remains critical. Do you think a more Duster-like body style is needed there?

That is a very good suggestion, and we will work on that. I take your point seriously.

The hybrid powertrain was a surprise. You are working with Bosch. How does this partnership work, and will localisation increase over time?

You always have to adapt the model to the region. Today, there is no truly global car—only global platforms and cross-engineering directions. Electrification is one such direction. Working with Bosch allows us to reach more scale and reduce costs.

Ultimately, hybrid technology will replace diesel. To do that, it has to be priced right. The hybrid will be very competitively priced, and more importantly, the fuel consumption figures are exceptional.

With CAFE targets tightening and EVs gaining attention, what is Renault’s EV strategy for India?

EVs currently account for around 5% of the Indian market. We see hybrids growing, and traditional engines - diesel, CNG and others - remain important. Of course, we have to come with EVs, but we will announce that in due time. For now, the focus is hybrid first, EV later. That said, this car will also come with a 1.3-litre engine, offering strong torque and power, which remains very important for Indian customers.

Right now, Renault’s volumes are very small in India. What are your market ambitions going forward?

Today, we are at around 1% market share. The objective is now to gain traction through renewal of the line-up. A market share of 3–5% would be a good target. It is not a target in itself; it will be the result of doing our job well and bringing many new cars to the market.

A lot of OEMs are not looking at the entry-level hatchback segment. You have Kwid in that space. Can you detail your plans in that space, as well as in the MPV segment?

Kwid represents important know-how for us in India. For us, we have to grow with Kwid. There is still more life left in the product, and we will continue to develop it. The Triber is a very strategic positioning for Renault in India. Offering seven seats within four metres is something quite unique in this market. We want to maintain this positioning and keep this relationship with Indian customers for a long time.

What could be the impact of the India–EU trade agreement on Renault’s India operations?

This is very good news. The impact would work in both directions. We perform best in markets where we can combine local production with selective imports. India’s competitiveness can support Europe, and Europe can also add value to the Indian line-up. Smallvolume CBU opportunities could emerge, depending on competitiveness.

INTERVIEW: "EV Demand is Rebounding both in India and Around the Globe" - JLR's Rajan Amba

Prerna Lidhoo — Sat, 17 Jan 2026 19:40:50

In a candid conversation with Autocar Professional, Rajan Amba, Managing Director of Jaguar Land Rover India, breaks down the realities behind the India–UK FTA, the company’s manufacturing strategy, the future of the Panapakkam plant and what lies ahead for the rebirth of Jaguar. From the rise of India as a global production base to the evolving psychology of luxury car buyers, Amba offers views on opportunities, misconceptions and the road to JLR’s next phase of growth in India.

How do you see the impact of the India–UK FTA in the short, medium, and long term?

The implementation of the FTA could be a minimum nine months, maybe 12 months away. So, the consumer should not be expecting anything till then. Having said that, 95% of our business is already local. So there is going to be no impact on those products. In fact, I would say, please buy now, because prices inevitably tend to go up year after year because of escalating costs.

So there’s no point in waiting. The pound is also appreciating rapidly. That leaves 5% of the business—our SV (special vehicles) business and special editions. Those are in our hands to import or not, keeping in mind the situation. Yes, we have orders, but it’s a small part of the business. So it’s business as usual.. FTA announcement does create confusion. Every time there's an announcement, everybody freezes.

Then the questions come. I don't expect people to believe it outright. In May, when this happened, the initial PR outburst in the press was incorrect. The narrative was that a 4-crore car would become half the price which is completely untrue. Slowly the narrative got corrected. We are not seeing any impact at the ground level, barring questions around SV pricing. It’s a very limited impact, and we have to manage it.

Could the FTA ultimately create a balance, lower customs duties for CBUs and attractive pricing for CKDs?

Exactly. In a way, it could help. We made the investment many years ago, and it has paid dividends, particularly in the last two and a half years. Who would have thought that India would be the first country to manufacture the flagship vehicle? India not only delivers very high manufacturing quality, but we also convinced the global team that India needs it and will benefit from it.

It’s a win-win. In the future, if we choose to start pilots or projects on smaller elements of localization, the FTA will benefit from year three, especially in increasing our SV and special-edition business. Whereas on the question of whether lower customs duties will discourage local manufacturing in India, I think it depends on the quota and the usage of the quota.

If the quota is exceeded, everybody will be forced to relook at it. It may be discouraging, but it’s only the UK right now. And we are already invested. I don’t think there is any other UK brand with volumes close enough to think of investing. If they were thinking, they might think again now, because the FTA allows them to import.

Do you see the SV and special-edition business expanding significantly?

Absolutely. These vehicles are Rs 3–5 crore products, but the SV business can really enlarge. We have the SV business, the market editions like Ranthambore and Masara and special editions like the Range Rover SV Black. Now, our partners can choose to craft an edition. Then we have bespoke editions that customers craft.

Currently, the dialogue happens between the customer here and the UK, but we are planning to bring SVO (Special Vehicle Operations) to India so these conversations and executions can happen faster. This allows us to provide an even more elevated experience to people who want to craft their own vehicles or own something unique.

Ranthambore and Masara are classic examples: One of twelve, colors never repeated, interiors never repeated. That’s what drives sales at Rs 5 crore. You’re owning something unique under the Range Rover umbrella and Range Rover is all about embodying magnificence.

What about using India as an export base? What’s the rationale behind adding another plant in Panapakkam?

It is happening but it's still a couple of years away. The rationale comes from the thought process that India is definitely a growth market. Using it as a base for exports is certainly a possibility. What I understand from the Germans, especially with the FTA, is that they want to bring down the complexity of importing 10–15 different models and rely more on CBUs, having one or two models aligned.

So yes, the opportunity for exports is a key part of the long-term strategy. Panapakkam is fundamentally a TMIL (Tata Motors India Limited) facility not a dedicated JLR plant. It will support both JLR and TMIL operations. It's being built to add capacity for future portfolios, exports, and manufacturing flexibility. India–UK FTA could potentially open export possibilities for vehicles made at Panapakkam.

If the FTA results in 0% import duty for UK shipments, vehicles made in India could be exported more competitively. But it’s too early to comment because global factors, from wars to tariffs, are shifting constantly.

Is the Panapakkam plant on schedule?

Yes. The plant is progressing as planned and remains on schedule with no intention to roll back or delay the project. The strategy is to begin with smaller volumes in Panapakkam, then transition some production from Pune as Pune reaches capacity limits. Over time, Panapakkam will take on more responsibility as part of a broader capacity expansion plan. Tata Motors Group is building capacity for up to 30,000 vehicles, anticipating opportunities such as potential 0% tariffs in the UK under the FTA.

What is happening with Jaguar’s global relaunch plan?

Jaguar’s global product launch cadence is still being finalised. While earlier timelines suggested 2026, there may be delays. But India will be a Tier-1 launch market, meaning it will get new Jaguar products among the earliest globally. The leadership expresses strong confidence that upcoming Jaguar designs will be stunning and mind-blowing.

Testing is underway, and internal optimism is very high. As far as pricing goes, a lot will depend on FTA clarity, market conditions, and EV sentiment. Decisions will be made closer to launch.

Is the EV slowdown a concern?

There is no major concern about an EV slowdown. JLR has already received 65,000 bookings globally for its upcoming BEVs, even before journalists have driven the cars. EV demand is rebounding both in India and globally, and luxury EV penetration levels have already reached 11–12%. This shows strong, sustained interest in the category.

The 5% GST is extremely important because it is driving luxury EV growth. It allows brands to price EVs close to, or even below, ICE equivalents, making them more accessible in the luxury segment. Any change in this rate would immediately affect competitiveness and could alter the momentum EVs are seeing today.

Why is India’s luxury market still small (~50K units)?

India’s luxury car market remains relatively small because of several structural factors. Consumer psychology still leans toward saving rather than self-reward and many potential buyers fear scrutiny whether tax-related or social visibility. The dealership and service network remains limited outside key metros and the overall market is yet to hit its true “tipping point.”

However, the Rs 1 crore-plus segment is growing faster than the sub-Rs 1 crore category. Pricing is not really a barrier in the luxury segment because aspiration matters more than cost. Customers buying cars priced between Rs 1–3 crore are motivated by brand value, luxury and experiential appeal not by EMI calculations or minor fluctuations in currency. At this level, emotional and aspirational factors outweigh financial considerations.

Is the luxury buyer profile changing in India?

Yes, the luxury buyer profile in India is changing significantly. New-age luxury buyers now include firstgeneration entrepreneurs, people from tier-2 and tier-3 cities, individuals experiencing sudden wealth growth and customers who may continue to live modestly but can comfortably afford aspirational purchases. The next phase of growth will come when India hits a stronger tipping point of aspiration.

Greater dealership and service presence beyond the top 20 cities will be crucial, as will reducing the fear around taxation. Continued high economic growth and the rise of new millionaires entering the luxury consumption cycle will also play major roles. When these factors align, luxury car sales could climb toward 100,000 units, a threshold the Germans have predicted for years.

TVS Celebrates 20 Years of Apache, Eyes Premium and Global Push

Darshan Nakhwa — Sat, 06 Sep 2025 19:08:06

TVS Motor Company marked a landmark moment on Saturday as its Apache brand completed 20 years, a milestone few Indian motorcycle brands have achieved. From its debut in 2005 as a track-inspired street bike to becoming a global name with over 6.5 million riders across 80 countries, Apache today stands as a symbol of performance and racing. "It's rare to see a brand sustain momentum over two decades. Apache has evolved into a global phenomenon and proudly reflects its Indian origins," said Gaurav Gupta, President, India two-wheeler business, TVS Motor.

To celebrate 20 years of the Apache brand, the company launched special anniversary editions of its RTR and RR series, alongside upgraded 4V variants of the RTR 160 and 200. Looking ahead, TVS sees Apache entering its third decade with renewed confidence and potential entry into higher-capacity segments. The company also sees fresh tailwinds at home, with GST reforms expected to boost demand during what could be one of the most buoyant festive seasons in recent years.

Here's an edited excerpt from the interview with Gaurav Gupta, President of TVS Motor Company's India two-wheeler business, and Vimal Sumbly, Head of Premium Business and Marketing.

Congratulations on 20 years of Apache. How significant is this milestone, and if you had to define the brand in three words, what would they be?

Gupta: This milestone is truly significant. It's rare to see a brand sustain its momentum over two decades. And it's not just about completing 20 years, but also about what Apache has achieved in that time. The brand has grown into a global phenomenon, connecting with over 6.5 million riders and establishing a presence in more than 80 countries. To sum it up, we have a global brand that proudly reflects its Indian origins. And when I think of Apache, three words come to mind: performance, passion, and racing.

As Apache enters its third decade, what is the broader vision in terms of new launches, technology, and displacement?

Gupta: Historically, Apache has pioneered several firsts in its segment from dual-channel ABS to other advanced technologies. These innovations have not only helped us engage with customers but also positioned Apache as a brand that consistently delivers "what's new" and "what's in it for me" from a customer's perspective.

Today, we offer a range from 160cc to 200cc across more than 80 countries. At TVS, customer obsession is one of our core values. We continuously study evolving needs and behaviors in a rapidly changing global consumer landscape. Whether it's premiumization, personalization, or shifting usage patterns, we adapt to stay ahead. With this approach, we won't rule out entering new segments or expanding our global footprint, and that journey will certainly continue.

With cleaner mobility solutions like electrification and CNG gaining attention, how does Apache balance its racing DNA with these emerging requirements?

Gaurav Gupta: We've always explored new technologies, new segments, and new geographies for our products, and that will continue. What drives us is the customer. If consumer needs evolve, our teams study them and work towards delivering the right solutions. We're fortunate to have close collaboration across engineering, R&D, design, and the front end, which helps us create engaging products supported by strong service.

It's difficult to single out one fuel type and say we'll only participate there. The landscape is evolving with many factors such as technology, policy, regulation, supply chain strength, and sustainability. All of these influence what we offer to customers.

We actively track customer profiles and product strategies across multiple brands, and Apache is one of the brands we are most proud to have built over 20 years. The journey ahead, we believe, will be even more exciting.

Recently, there has been a lot of talk about E20 fuel, and ethanol blending is only expected to increase in the future. Where does this leave brands like Apache in terms of performance?

Gaurav Gupta: Our current products are compatible with existing fuel offerings, including E20. We understand that migration will bring certain requirements and ground realities, but as of now, in simple terms, we are compatible with E20. In terms of performance, the implications are standard across most products in the marketplace, and that will continue.

While the Apache 160cc and 200cc models have grown strongly, the 310cc range hasn't kept pace despite premium two-wheelers gaining traction over the last few years. How will you strengthen Apache in this space?

Gaurav Gupta: The Apache family's trajectory has been very encouraging for us. Apache continues to grow within its category, which motivates us to keep investing and working on future opportunities whether that's exploring new segments, new geographies, or new formats. That journey will continue.

Vimal Sumbly: If you look at Apache, the 160cc to 200cc models mainly cater to youngsters and enthusiasts who want performance on the road. In the 310 series, we currently have two products. The RR 310 is already the number-one sports bike in its segment, and sales have been growing every month.

As a brand, we place a strong emphasis on the 300cc space and aim to own it. Together, the two products in this range have given us strong momentum. These are powerful, premium bikes, and they are our "hero products."

Even this year, from Q4 onwards, the 310cc series has shown healthy double-digit growth. At TVS, we are very retail- and Vahan-driven; we don't bill to stock but focus on catering to customer demand. Within that framework, we're seeing very strong traction. That is why we've continued to invest in this segment—if the products weren't performing, we wouldn't. The strong demand gives us confidence.

Have the recent GST reforms had any measurable impact on dealer-level inquiries for the Apache range? This is also likely to renew focus on the entry-level performance segment.

Gaurav Gupta: We are very grateful to the government for this move. It's a well-thought-out simplification and an empowerment initiative for India's middle-class customers. At TVS, we appreciate that it directly enhances buying power and makes motorcycles, scooters, and two-wheelers more accessible to consumers. This had been a long-standing demand to bring prices down, and it has been successfully addressed.

We were already looking forward to a strong festive season. Several factors pointed to this: encouraging monsoons, stable and growth-oriented macroeconomic fundamentals, and supportive repo rates enabling consumers to buy the products they desire, especially in our segment. The GST reforms have only amplified this momentum.

So, we are expecting a very active and buoyant festive season, and in fact, I anticipate the positivity extending well into the end of the year.

Q&A: Mahindra's Nalinikanth Gollagunta on Upcoming Festive Season, 'Bold' Design Choices

Darshan Nakhwa — Sun, 31 Aug 2025 22:48:54

Mahindra & Mahindra is in the midst of its most ambitious transformation yet, backed by a ₹27,000 crore investment plan, a new greenfield plant, new vehicle platform, and a sharpened focus on both electrification and global expansion.

In an exclusive conversation, Nalinikanth Gollagunta, CEO of M&M’s Automotive Division and Executive Director of Mahindra Electric Automobile Ltd. discusses how the SUV maker is preparing for the festive season, leveraging digital tools to align production with real demand, and managing the transition from a supply-constrained to a demand-driven market.

He also shares insights on the company’s EV strategy under the INGLO platform, its approach to the NU_IQ architecture, global expansion priorities, and how Mahindra plans to sustain mid-teen growth in a muted industry environment.

Mahindra has announced a ₹27,000 crore investment plan, a greenfield plant, and a strong global push. How do you ensure that M&M keeps pace with the changing market dynamics? There also seems to be a notable gap between Vahan data and wholesale numbers; how do you read the current demand scenario?

I'll break it up into the first quarter and beyond the first quarter. If you take just the first quarter, first FY quarter, if you see, our Vahan growth was the same or slightly more than our billing growth. Our billing growth was 22%, our Vahan growth was 22.5% or something like that.

So, I want to keep that quarter off, because very clearly, our Vahan growth was keeping pace with that. In fact, in the last 6 months, our Vahan growth was slightly more than our billing growth. In July and August what you have seen is pure stocking.

For us, we are very clear about what we are trying to do. I'll go back to the first point you made, the sentiment in the market. That's an important aspect. I don't think anybody can discount that fact. Our view at this point in time from what we are seeing as signals in the market is that the festive will get some optimism back into the market.

And we don't want to lose the opportunity. We want to ensure that it goes off the shelf. So, in that sense, there is a little bit of a push from our side to make sure that we are ready for it. But we are calibrating in terms of where we are putting it. Which variants we are putting in and what we are doing. So, one of the things we have done over the last couple of years is a massive digitisation of our entire forecasting and sales pipeline through ConnectSys.

Mahindra posted strong growth in Q1 FY26. What’s your expectation for the festive season, given that the base in H2 is higher?

We stick to the mid to high teens projection. But let me answer the question in two different ways. Last year, the festival season we had very small (Thar) Roxx (volume) in it. This year, we have full-on Roxx (volumes) coming in. We have the fungibility to go all the way to 9,000-9,500 units just on Roxx.

That didn't exist last year. Thar Roxx continues to have strong traction. Secondly, our BEVs weren’t available last year. That's new capacity and new demand we have added. So, you can do the math. My average last year was 45,000 billings. To achieve mid-teens (growth), I need to do 6,500 extra units. Provided the rest of it stays where it is.

How is the rest of the portfolio performing?

The Thar and the XUV 3XO petrol capacity has grown. Last year, if you look at it, the government and the institutional business of Boleros were not that great. And, if you do the basic comparison, you start to see that Boleros have come back to the traditional level where they are at. So, that gives me some confidence. Scorpio is doing extremely well.

Scorpio N is going strong and that to me is a 14,000-15,000 units portfolio. The piece which needs a refresh is the XUV 700. So, there could be a little bit of numbers going down, but my Bolero, Scorpio N, Scorpio Classic is helping. The new XUV 700 will come in the fourth quarter. Overall, the base remains solid, and incremental growth will come from new introductions.

Yet, overall market demand seems muted. Do you agree?

For the industry, yes, demand is subdued. But, the way we look at it is that customers get excited when you put products out there which are exciting. It's a reflection on the OEMs rather than a reflection on the market. So, when we say it's a muted market, that’s because it's a muted launch scenario. Where are the exciting products? So, our view is that when the exciting products come, the market will get excited.

Any new launches for the festive season?

During the festival we don't have much coming in. But we have done some variant tweaks. We saw good traction on XUV 3XO Rev-X. And, we did some tweaks on Scorpio N, which is also helping us quite a bit. So, we are well set in that perspective. We might have a couple of surprises, but those are minimal pieces we will play around with, but not much for the festive. The big launches are lined up post festive season.

You’ve addressed EVs with the INGLO platform. With NU_IQ, are you now looking to cater to the core market where Mahindra doesn’t yet have a strong presence?

In larger vehicle categories, like 4.5-4.6 meters, we are in a bit of a unique place where we actually have three products, and they are in the same price band, but they cater to different segments. We believe the 4.3 meter segment is getting to a point where the customers are actually sophisticated enough.

There's a distinct segment which won't overlap. And that's generally where our products start to play out. Our products have character, but they also turn off some customers. But that's okay for us because then it helps me carve out a very clear niche. And if I'm able to put two products which carve out separate niches, I capture the market. Rather than putting one large volume product in the space and say that this is the product which will capture everything in that space. That's the way we're looking at it.

Last year you clocked 20% growth, and this year you’re guiding for mid-teens. What’s the long-term vision for Mahindra, say by 2030?

It's hard to predict what the volumes will look like. Our job is to put out products which excite customers and encourage them to buy. This market is different from the market 20-25 years ago when people held a car until they were forced to replace the car. This is a market which replaces when they get excited. So, it's in that sense demand-driven based on what your portfolio looks like. Our goal is to be the No. 1 SUV player by revenue market share.

Mahindra has spoken about global ambitions for years. But exports are still relatively small. Why?

If you look at the capacity that we are adding that says it all. We won't put capacity if we don't have conviction that we'll be 80%-85% of the business. The way we look at it is we would rather go slow and steady than going too fast and having duds in the market. We are doing it in a calibrated way.

We want to make sure every product lands well and does well. For the last couple of years we have seen good growth in exports. The challenge is people do comparison with the other global OEMs who do sizable exports out of India. Their brand is already built (globally). We have to do the hard work of building the brand and then sell. We want to do it the right way.

So, what are the priority markets? South Africa, Australia we heard. What other markets are on your radar?

The UK is definitely something we are looking closely at from BEVs perspective. We have products which help us there. There are some unique LHD markets like Chile and a few other places. which have an audience which appreciates our products. The Middle East is an area where we are starting to expand. We are also looking for good partners that we can play with sustainably.

So, we will take it as it happens. And even in places where we are present like South Africa and Australia, we still have significant headroom to grow. We have just gone from having one product to now having three products in these markets. We are yet to tap into the full market. XUV 3XO has been a great learning experience for us.

XUV 700 if you look at it, it was diaspora led growth. People came to India on vacation, saw the product, loved it, went back, saw the product there and started to buy. XUV 3XO is the first time where you see non-diaspora coming and buying the product. Which is a good sign.

Nepal and Sri Lanka have seen a dramatic change when it comes to electrification. The Nepal market has been captured by Chinese OEMs. And even in Sri Lanka, there's a lot of action. As a SARC country, and as a leading player with good presence, how are you seeing Nepal and Sri Lanka as markets?

Those are interesting markets. In some ways, adjacent markets to play in. By the way, we launched BEVs in Nepal two weeks ago. We'll see how it plays out. We'll continue to play and learn. But just from a headroom to grow, from the size where we are, we'd love to do well.

Chinese OEMs are the next benchmark for all of us. It's quite clear. I'm not surprised they are doing well and not just in these two markets. So, when we're putting out our products, we're looking very closely at these benchmarks. What we have to put out to stay as confident.

We will fight it out in the market, and let the customer decide. That's the view I have. But wherever I go, I want to make sure I have a right to win and I have an ability to stay in the market. So, we'll see how it plays out.

Could you elaborate on this digitisation initiative? How does it help bridge the gap between actual demand and production?

It's a work in progress. I don't want to say that it's solving everything. But it's already starting to show interesting trends for us to work with. At a fundamental level, what it does is on a monthly basis, my dealers now write down to the last detail what product they want next month.

So, I have a clear view of what each dealer wants. And I also know what the retail momentum for a dealer is and what he/she is selling. And then we look at it and say, okay, do you really want this or why are you asking for this? The new program helps us align production, manage parts commonality, and adjust for seasonality. In short, we can now plan end-to-end in a much more agile manner.

How different is this process compared to earlier?

A lot of this was done in Excel earlier and often after the fact. Now, we're able to do it ahead of the fact and we're able to use digital systems to figure out demand patterns or red flags that we're starting to see. We couldn't do it earlier at that level. The system was piloted over the last couple of years and rolled out two months back.

Does the platform leverage AI tools?

It has some aspects. A digital platform has been put in place and we'll get to the AI part. AI works only when you have a lot of data to play with. We're starting to get to a point where we can collect data from it. Just the digitisation gives a lot of visibility now. So, when I do my planning on a weekly basis now, if somebody says that I have a shortage of this product, I can instantly say that translates to A, B, C from a supply perspective.

And say that it's not just a shortage of the product, it's because of just these three components. Then the question is, instantly I can go back to the supplier and say, what can I do to make this happen? That agility is much more now than what used to happen. Earlier it would take two weeks. Now I can do it in a one-hour meeting. So, that helps move faster.

How has the response been so far?

Encouraging. The real risk is when the market shifts from supply-constrained to demand-constrained and OEMs miss the signal. That's when you get into real trouble. Because you are thinking, this is a supply-constrained market, so keep producing. And you don't know when that switch happens. Our system now helps us detect demand weakness at the variant level itself. So, then I can start to close those spigots off or put demand generation measures proactively.

But isn’t your primary data source still dealers and field executives? Do they have the ability to predict consumer demand accurately?

The primary source is the retail momentum–what is selling off the shelves and what is not. So, we are giving them all that data. We are giving dealers data about preferred products, variants, colors sold over a few months. We are also equipping dealers with historical sales trends during the festive season.

This data didn't exist for them in one place to look at. We are hoping that it leads to a point where dealers can start to make educated decisions. And even when they don't, we can look at data and say that you just put some order, but in reality, this is the number you need.

Tata Hitachi’s Next Act: Mining, Exports, and Electrification to Power Growth

Yukta Mudgal — Fri, 15 Aug 2025 12:38:26

Tata Hitachi is gearing up for its next growth chapter with three clear priorities: ramping up exports, deepening its dominance in mining equipment, and accelerating the shift towards electrified machines. The Rs 5,200-crore company plans to more than double exports over the next five years, assemble high-value mining trucks locally, and commercialise its first Electric-powered excavator in a near future.

These moves come at a time when the Indian construction equipment (CE) market is experiencing both rapid expansion and intense competition. Infrastructure spending by the government has pushed excavator sales to the 30,000–32,000 unit range, but the number of active players has surged from just four or five a decade ago to over a dozen today. Chinese brands, in particular, have shaken up pricing and credit norms, forcing established players to redefine their value propositions.

For Managing Director Sandeep Singh, these challenges are not new. They are the next phase in a journey of transformation he has led since taking charge — a journey that began with stabilisation and is now about strategic expansion.

From Restructuring to Revival

When Singh took the helm, the 40-year-old joint venture between Tata Motors and Hitachi Construction Machinery (HCM) was in the red. Operational inefficiencies, a scattered manufacturing footprint, and intense price competition were eating into margins.

Singh’s early playbook was about consolidation and focus: shutting underutilised plants, streamlining the product range, vendor base, cutting waste, and investing in brand-building and dealer engagement. With India’s CE market still recovering from cyclical downturns and government policy shifts, these moves helped build a resilient base. Within two years, Tata Hitachi had returned to profitability.

“The fundamentals were clear — build customer trust through quality and service, simplify operations, and strengthen our market position,” Singh says.

Defending Share in a Crowded Excavator Market

Excavators remain Tata Hitachi’s bread-and-butter, accounting for the majority of its 8,300 annual sales. The company holds a 23% share, down from 30% earlier, as more manufacturers — including Korean, Japanese, and Chinese brands — entered the fray.

In a market where price pressure is relentless and finance-led sales models are gaining ground, Tata Hitachi has leveraged its quality, service reputation, and localisation capability to remain relevant. Singh’s counter to Chinese aggression was to compete with them with value proposition on cost competitiveness while keeping product quality reliability intact.

“We’ve contained Chinese penetration in India because customers know our machines deliver higher uptime with low cost of ownership,” he notes.

Mining as a Growth Engine

Mining has emerged as a strategic high-margin vertical. Tata Hitachi now commands over 30% share in the mining excavator segment and is winning landmark orders — including 190-ton and 360-ton models worth over Rs 20 crore each, as well as hybrid-electric dump trucks.

The mining segment is seeing renewed activity on the back of coal production targets and large private-sector mining investments. Equipment reliability, higher utilisation and fast turnarounds are critical, giving Tata Hitachi a strong advantage.

The company also runs a certified refurbishment programme, extending machine lifecycles beyond 40,000 hours in some cases — more than the industry norm — which appeals to customers in tight financing environments.

Exports and Global Mandate

Exports, currently 500 units a year, are targeted to grow to 1,500–2,000 by financial year 2029. Tata Hitachi will develop and assemble models in India for the Middle East, Africa, and Southeast Asia — markets where Chinese brands are also expanding rapidly, and where cost-efficient yet high-quality products can create a distinct niche.

Hitachi Construction Machinery (HCM) has also entrusted its Indian arm with global product development responsibility. A new Global Technical Development Centre in Dharwad will hire 200 engineers in the next few years to design products for international markets — a significant signal of India’s strategic role in HCM’s supply chain.

Electrification Bet

While alternative fuels are being explored globally, Tata Hitachi is betting big on electric solutions. A locally developed battery-powered mini excavator is undergoing trials, with launch targeted in 12-24 months. Globally, HCM is also working on battery-operated dump trucks, with commercial rollout in 2027.

The electric CE segment is still at a nascent stage in India, largely constrained by cost acceptance and charging infrastructure, but export markets in Europe and Japan are already creating demand for zero-emission equipment.

“India will eventually see these machines, but our development work here will feed global markets first,” Singh says.

Sustained Investment to Build Niches

Tata Hitachi has been consistently investing Rs 100–150 crore annually, a commitment Singh says will continue in order to strengthen the company’s product niches and market reach. Recent spends include a new ED paint shop at Dharwad, integrating warehousing into the plant, and ongoing upgrades to manufacturing and service capabilities.

Policy and Industry Outlook

The proposed Construction Equipment, Material and Manufacturing Act aims to phase out older, more polluting machines and enforce stricter emissions norms. Singh expects this to boost both domestic replacement demand and export competitiveness.

With the CE industry expected to benefit from continued public capital expenditure, the next decade could see India rise as both a major consumer and exporter of heavy equipment.

The Road Ahead

For Singh, Tata Hitachi’s transformation is not complete. “This is a 24x7, service-driven business. Staying ahead means constant innovation, deeper customer engagement, and competing globally from India,” he says.

From a turnaround story to a growth play rooted in mining, exports, electrification, and sustained investment, Tata Hitachi’s evolving game-plan reflects both a sharper strategic focus and the resilience to navigate one of the most demanding construction equipment markets in the world.

"India Offers Not Only The Best Cost, But Also Great Brains": Marelli Electronic Systems President

Mayank Dhingra — Mon, 11 Aug 2025 16:36:53

As the shift towards software-defined vehicles (SDVs) gains momentum, technology suppliers are gearing to tap into the robust demand potential offered by the Indian market, which has emerged as the third-largest passenger vehicle market in the world. The country is also witnessing an accelerated adoption of modern technologies such as high-end infotainment screens, digital cockpits, and ADAS solutions. In this interview, Ravi Tallapragada, President, Electronic Systems, Marelli, reveals the auto component maker’s future readiness with its advanced range of vehicle electronics as well as zone control units or ZCUs that aim to revolutionise the vehicle E/E architecture of the future.

How do you see the SDV transition currently underway in the automotive industry? How is Marelli innovating in this domain?

The shift towards Software-Defined Vehicles (SDVs) is transforming the automotive industry paradigm from hardware-based systems to dynamic software platforms capable of new features and continuous updates. In this scenario, automotive architectures are evolving from distributed systems to zonal approaches. In zonal architecture, zone control units manage cross-domain functionalities, significantly reducing weight, cost, and complexity.

Consequently, vehicle makers are adopting different solutions, each with individual levels of investment and speed. As part of Marelli’s flexible business model focused on co-creation with our customers at their pace, we listen, adapt, solve and deliver - with a commitment to grow with them as their needs evolve.

At Auto Shanghai 2025, we unveiled innovative technologies and solutions for the software-defined age that follow this approach For example, we showcased the ‘ProZone’ platform, which is part of our next-generation zone control unit portfolio and consolidates autonomous electronic control units (ECUs) into centralised architecture, reducing overall cost and weight. They enable a truly software-defined system that can be upgraded over time.

How does Marelli plan to leverage its cross-domain expertise to deliver a cohesive SDV experience?

Marelli's cross-domain expertise allows us to deliver comprehensive SDV solutions that integrate lighting, interior electronics, powertrain and even more. In particular, the ProZone platform combines innovation and affordability, being able to manage body, lighting, power distribution, diagnostics, powertrain, thermal management, driving dynamics, and chassis.

By consolidating these elements into a unified zonal architecture, we enhance vehicle intelligence and personalisation, offering features that can be tailored to individual preferences. Moreover, we have a ready-to-offer catalogue of 300 cross-domains proven applications. These have been decoupled to provide vehicle makers with the opportunity to integrate them, taking advantage of Marelli's experience.

How does the company align its SDV roadmap with the electrification and digital transformation strategies of its key customers in India?

We are in close contact with several prominent vehicle makers in the Indian market to understand their vision as well as their unique requirements for the software-defined age, depending on where they are in their journey from domain-based architecture to software-defined vehicles.

We regularly share with them global market trends and our internal platform development activities to ensure close alignment. Based on the discussions with our customers and data from S&P Global (formerly IHS Market), we anticipate the first adoption of zonal architectures by Indian vehicle manufacturers starting in 2028, with mass adoption by 2030.

What is Marelli’s go-to-market strategy for SDV solutions in a cost-sensitive market like India?

Vehicle manufacturers in India are at different stages with respect to the launch of zonal architectures. Marelli sees that the coexistence of standard and legacy electronic control units (ECUs) with the advancement to zones is the best way to approach the market. Since many carmakers are eager to experiment while not yet fully adapting to a 100 percent zonal architecture, we at Marelli are a transition partner, accompanying OEM customers on their journey.

In addition, it has been crucial to empower our regional teams to take the lead on region-specific technologies and processes. At the same time, clearly defining global standards and balancing them with the necessary regional flexibility is essential. We have two R&D centers (Gurugram and Bengaluru) in India with over 1,000 engineers working on the latest technologies.

India offers not only the best cost, but also great brains. Our focus on cost and platforms gives us an advantage in the areas of technology, affordability and speed. We also leverage our partners such as LTTS, Tata Elxsi for scalability and for know-how in some emerging technologies.

How is the company placed in terms of local manufacturing of advanced electronic components in India?

Today we have several manufacturing sites in India that can produce advanced electronics, including electronic control units (ECUs) and displays. These existing capabilities can support customers adopting new E/E architecture products as well. We are also exploring the addition of more localised display manufacturing capabilities in India.

How does Marelli view the impact of US tariffs on the future of India's automotive components sector?

Regarding the subject of tariffs, we have a team in Marelli constantly monitoring the situation, which remains very fluid and unclear, particularly concerning automotive technology and related themes. At this time, we cannot provide much detail, apart from saying that we are keeping a close watch on developments hour by hour.

What role do ZCUs play in the evolution towards SDVs?

Zone control units (ZCUs) are crucial in advancing towards software-defined vehicles. This transformation reduces the number of electronic control units in a vehicle from 100 to less than 20, on average. Through our broad domain expertise, we can cover 80 percent of a vehicle’s software functionalities.

We have introduced an architecture combined with microservices for enabling and disabling hardware and software functions. This architecture is scalable to all vehicle platforms. In addition, Marelli already offers about 300 zone applications decoupled from legacy systems that can be easily integrated with third-party products. This dramatically reduces the time to market.

How is Marelli reimagining the in-cabin experience through software-defined capabilities with its cockpit ZCUs?

Marelli's zone control units go beyond just the cockpit domain. They are at the heart of redefining in-cabin experiences and allowing seamless integration and control of functionalities such as infotainment, connectivity, climate and comfort systems. Our zonal architecture enables customisation as well as personalisation and significantly enhances the driving experience.

From adjusting seating and climate preferences to selecting entertainment options, the zonal architecture ensures in-cabin features can be updated over the air, continuously improving and adapting to user preferences to provide a more comfortable experience.

What role is India playing in the innovation and R&D of new electronics and SDV solutions for Marelli globally?

Our technology and development centers in Gurugram and Bengaluru belong to our global hubs for the development of electronic components and software for the software-defined age. In India we take advantage of the availability of skilled engineers in our R&D centres and the ecosystem in Bengaluru, as well as our partners to implement our solutions.

What investments have taken place within the Electronics System division to support Marelli’s transformation into a mobility tech company?

When it comes to the allocation of investment funds and resources, we do what probably all well-run companies do - we look at the potential of new technology and make the decisions accordingly. Having said that, the software and hardware solutions enabling the SDV architecture are high on our radar.

We also use minimal viable products, sharing new technologies early with OEM customers. Together, we cocreate and enhance them for launch, allowing us to use our innovation budget more efficiently.

What is the company’s growth outlook when it comes to revenue from SDV platforms in India?

We will continue investing in next-generation architecture. In 2026, we’ll launch two zone control unit projects, making Marelli a top global supplier. By 2030, we estimate over 20% revenue growth in India from SDV platforms, especially for cockpit, display, and body electronics.

"India Offers Not Only The Best Cost, But Also Great Brains": Marelli Electronic Systems President

Mayank Dhingra — Mon, 11 Aug 2025 16:36:53

How do you see the SDV transition currently underway in the automotive industry? How is Marelli innovating in this domain?

How does Marelli plan to leverage its cross-domain expertise to deliver a cohesive SDV experience?

How does the company align its SDV roadmap with the electrification and digital transformation strategies of its key customers in India?

What is Marelli’s go-to-market strategy for SDV solutions in a cost-sensitive market like India?

How is the company placed in terms of local manufacturing of advanced electronic components in India?

How does Marelli view the impact of US tariffs on the future of India's automotive components sector?

What role do ZCUs play in the evolution towards SDVs?

How is Marelli reimagining the in-cabin experience through software-defined capabilities with its cockpit ZCUs?

What role is India playing in the innovation and R&D of new electronics and SDV solutions for Marelli globally?

What investments have taken place within the Electronics System division to support Marelli’s transformation into a mobility tech company?

We also use minimal viable products, sharing new technologies early with OEM customers. Together, we cocreate and enhance them for launch, allowing us to use our innovation budget more efficiently.

What is the company’s growth outlook when it comes to revenue from SDV platforms in India?

India: A Bastion Of Stability for Schaeffler

Ketan Thakkar — Thu, 03 Jul 2025 17:44:54

In a world roiled by geopolitical tensions and supply chain upheavals, Schaeffler AG, a German titan in motion technology, is doubling down on India as a linchpin of its global ambitions. With an investment commitment of €500 million over the next five years, Schaeffler sees India not merely as a market but as a strategic hub for innovation, localisation, and resilience in an increasingly bipolar global economy.

At a time when global trade is under strain from tariffs, protectionism, and supply chain disruptions, Schaeffler’s CEO, Klaus Rosenfeld, is looking towards India as a dependable ally. “In this geopolitical environment with all the tensions that we have, with all the stress in supply chains, and with questions such as where you are and who your friends are, you need to be careful,” he says.

“Our relationship with India has proven to be strong. India has shown over the last years, also in these difficult situations, that it is a very reliable partner,” Rosenfeld said, emphasizing Schaeffler’s role as a “good local corporate citizen” in the country. India’s allure for Schaeffler is multifaceted. The company, which employs over 3,600 people across five plants and generates over €1 billion in revenue locally, has been a fixture in the country for 62 years.

Its latest venture greenfield plant inaugurated this month—marks a new chapter, with an initial €35 million investment and plans for further expansion. Rosenfeld confirmed a robust investment strategy: “Our plans are to invest about €100 million plus every year, and that over time will also increase the revenue base of this company.”

When pressed on the timeline, he clarified, “So €500 million on an average for the next five years.” This commitment underscores Schaeffler’s confidence in India’s doubledigit growth potential, driven by a burgeoning talent pool, government-led infrastructure and digitalisation initiatives, and a stable business environment. The geopolitical backdrop amplifies India’s strategic importance. Rosenfeld described a shift to a “multipolar world” where the notion of unfettered free trade is increasingly untenable.

“The old idea of free trade is obviously challenged. It started with these surprising announcements that no one really could believe. It has relaxed a little bit. We’re going into a more world where now negotiations will happen,” he said, referring to US President Donald Trump’s decision to impose steep import duties on goods from across the world, and the ongoing negotiations around those.

He expressed cautious optimism that trade talks could yield a more balanced global market. Yet, he recognized the unlikelihood of a full return to open markets, “If all of this would lead to a more focus on why free trade and free flow of goods is important, that would be good. I doubt that this is the case.”

For Schaeffler, India serves as a hedge against these uncertainties. The country’s role in the “China Plus One” strategy i.e. diversifying supply chains beyond China—is pivotal. Rosenfeld reflected on how Europe and German manufacturers once viewed China as a mere “workbench,” a perspective that has been upended by China’s rapid technological and competitive ascent.

“For a long time Europe and also German manufacturers thought about China as a workbench and that has completely changed,” he said. In contrast, India offers a stable alternative, bolstered by its democratic governance and market potential. “I think here in balancing risk, managing supply chain risk, India can play a very important role,” Rosenfeld asserted, adding, “We are super proud that what we have here and my trip again has motivated me to do more and not less.” Schaeffler’s India strategy is not just about mitigating risks but seizing opportunities.

The company’s annual strategic dialogue, held before the summer break, is a forum where regions pitch their growth and investment plans. India, led by Harsha Kadam, CEO and Managing Director, Schaeffler India, has emerged as a standout. “Harsha again has put together a challenging plan. He knows how to compete. The sky’s the limit,” Rosenfeld said, hinting at ambitious targets.

“It’s definitely two-digit growth per annum. And that’s possible. We’ve seen this over the years.” Yet, he tempered this ambition with a distinctly German ethos: “And let me also say, and again, it’s a little bit German, we like the saying, diligence before speed. Don’t try to run before you can walk.” Implementation, he stressed, requires “strong leadership and trust,” qualities he believes India’s operations embody.

Schaeffler’s focus on localization—currently at 76% and set to rise—further cements India’s role. “Localization means nothing else than investing in capacity and financial capital and also human capital,” Rosenfeld explained. This includes producing components for wind energy—previously imported—and expanding into rail and two-wheelers, both critical to India's mobilitydriven growth.

The company’s three R&D centers and 1,600 engineers in India are tasked with developing local solutions with global technology, aligning with India’s push for self-reliance under initiatives like Atmanirbhar Bharat. India’s economic trajectory also aligns with Schaeffler’s shift toward becoming a “motion technology company,” moving beyond its automotive roots.

The €3.5 billion acquisition of Vitesco Technologies has bolstered its capabilities in e-mobility and power electronics, positioning it to serve diverse sectors from automotive to renewables. “People think we are an automotive supplier. And I have to say that is only half of the equation,” Rosenfeld said, emphasising that Schaeffler’s products—bearings, actuators, and more—are about “guiding motion, transmitting motion, generating motion.”

This ethos, encapsulated in the company’s claim “we pioneer motion,” resonates in India, where its investments in hybrid powertrains and railway bearings support national priorities like electrification and sustainability. Rosenfeld also sees India as a counterweight to the cyclical nature of the global automotive market, where Schaeffler’s repair and maintenance division thrives during downturns.

“In bad times, if people don’t buy cars, they repair cars,” he noted, highlighting the strategic value of its vehicle lifetime solutions. With India’s automotive market projected to grow from 4 million to 8 million vehicles, Schaeffler is well-positioned to capitalize, even as global volumes stagnate around 90 million.

The CEO’s visit to India, including a board session in Bengaluru on leveraging artificial intelligence, underscores the country’s role in Schaeffler’s innovation agenda. Yet, Rosenfeld remains pragmatic, viewing India not just as a growth story but as a testament to resilience.

“A strong, reliable partner, India will become bigger and bigger, especially with the FTA conversation with the UK and EU,” he said, advocating for the UK-India trade arrangement as a model for broader agreements. As Schaeffler navigates a world of tariffs and competition, India’s blend of stability, talent, and opportunity makes it a cornerstone of its future vision.

'No Question of Us Being Late' - Suzuki India on e-2Wheeler Market

Angitha Suresh — Sun, 01 Jun 2025 14:14:27

India’s electric two-wheeler market is entering a new phase. While subsidies and start-up buzz mainly drove early adoption, the recent shift in market leadership—from disruptors to legacy OEMs—is telling. With legacy automakers reclaiming dominance, Suzuki Motorcycle India sees this transitional moment as the perfect entry point.

According to Devashish Handa, Former Executive VP-sales and marketing who took charge as the Executive Officer- Business & Human Resource Development in April, the segment is beginning to mature. Suzuki’s entry with the Access EV is not late but well-timed.

“Scooter alone is seeing a penetration of between 15% and 16%. What is noteworthy is that even after the FAME regime ended and subsidies were halved, adoption has continued. It's not growing, it's not falling. That proves the demand is stabilising and becoming sustainable,” Handa told Autocar Professional on the sidelines of Bharat mobility show. e-Access, Suzuki’s first major electric model, is entering a market transitioning from incentive driven purchases to genuine consumer interest. “People are now buying EVs out of interest, not just because of subsidies,” Handa emphasized.

Handa highlighted a significant trend over the past year: Traditional automotive brands have started reclaiming dominance in EV sales. “If you see the trend over a year, who's leading the EV growth has shrunk. More legacy brands have started leading the EV growth. This entire transformation has happened gradually…and it's very clear now.”

Suzuki views this shift as indicative of evolving consumer preferences. “The customer is maturing. As the more trustworthy, legacy brands enter the market with more robust offerings, buyers are upgrading,” he explained.

The Replacement Cycle Starts

Another critical market dynamic highlighted by Handa is the initiation of the replacement cycle among early EV adopters, who now seek significantly improved products. “The first product replacement cycle is due. And the early adopters now want to upgrade into a significantly superior product,” he said.

Suzuki’s strategy centers around delivering quality, reliability, and long-term value rather than merely competing on price. “Now, it’s not about price. Now, I believe it is the product that is being chosen,” Handa noted. Addressing perceptions that Suzuki is late to enter the EV segment, Handa emphasized the company's strategic intent. With demand becoming organic and sustainable, Suzuki is confident in the timing of its entry. “This is natural demand, not curated. And that gives us confidence that the time is right,” he stated.

Family Scooter is just the start. The Access scooter has been strongly accepted by family buyers, and hence, E-Access is Suzuki's first alternative to cater to its large consumer base. Still, the company does believe that there are different categories of buyers in the market, and those will be catered to at a later date.

Autocar Professional learns Suzuki Motorcycle is actively exploring various electric two-wheeler options, with multiple models on the radar for introduction by the decade's end. The Japanese two-wheeler maker is planning to bring in at least 4-5 EVs by the end of the decade, and it is exploring potential offerings that include an electric variant of the popular performance scooter, electric motorcycles, and innovative models like the EV Cross aimed at the gig economy segment.

Handa declined to share the specifics but confirmed that multiple models are being explored. “We’re studying multiple ideas, but the rollout will depend entirely on how the market develops,” Handa said.

Suzuki’s approach aligns closely with its global parent company's strategy, emphasizing technological flexibility. Referencing Suzuki Motor Corporation President, Toshiro Suzuki’s comments, Handa stated, “Toshirosan also mentioned the multi-pathway approach in his explanation. It is a rapidly evolving landscape. Which technology will work and to what extent—that’s how it stands now. We are watching this space very closely. It may get tweaked a little.”

Strategic Urban Rollout

Though Suzuki has officially unveiled the e-Access, final strategic details, particularly volume and penetration targets, are still under review. “We’ve unveiled it, but there is still some time before we close on things like exact volume numbers and penetration targets,” said Handa.

Suzuki will employ a phased market introduction, prioritizing India’s top 30 urban markets due to existing demand and infrastructure availability. “EV penetration in scooters may be around 16%, but it’s heavily skewed towards the urban market. The bigger the city, the higher the penetration rate,” he added.

Production plans align closely with this phased rollout strategy. “As production gears up, the focus will be on establishing presence in those cities first, especially where charging infrastructure can be supported. After that, we’ll expand across the country,” Handa clarified. Suzuki anticipates penetration to reach about 25% by the decade's end.

E-Access: Suzuki’s EV Leap

The Access EV unveiled at the Bharat Mobility Show is key to Suzuki Motorcycle’s global EV expansion, and India is a key manufacturing and export base. While primarily targeting India, the upcoming Suzuki e-Access scooter carries global aspirations. Given India’s robust demand, Suzuki intends first to gauge local market response before expanding internationally.

“India comes first,” Handa confirmed, acknowledging slower adoption rates in European and Japanese markets. “We’ll observe how Indian consumers respond to the e-Access and how the ownership experience shapes up before expanding globally.” Suzuki describes the e-Access as a ‘Made in India, for the world’ product, underscoring its ambition to contribute to domestic and global electrification trends actively.

Addressing Production Constraints

Suzuki Motorcycle reported its highest-ever annual sales of 12.56 lakh units for FY2024- 25, recording an 11% increase year-on-year. The Indian arm of Japan’s Suzuki Motor Corporation saw domestic sales rise by 14% to reach 10.45 lakh units compared to the previous financial year.

The company continues to experience robust demand across its product lineup, notably scooters. Despite operating at peak production levels, Suzuki faces a supply shortfall of 15–20%. “We are falling short of retail demand every month by 15–20%,” Handa explained.

To resolve this, Suzuki is establishing a new manufacturing plant in Kharkhoda - Haryana, designed to add an initial 7 lakh units annually and with the potential for further expansion. Located next to Suzuki’s existing automobile facility, this plant will leverage an established vendor ecosystem. Suzuki recently refreshed its flagship Access scooter and confirmed plans to introduce two new internal combustion engine (ICE) models annually.

Exports and Global Strategy

Exports significantly contribute to Suzuki Motorcycle India’s success, constituting approximately 20% of its total volume this year, or around two lakh units. "We’re among the few Indian manufacturers exporting to developed countries, which sets us apart," Handa highlighted. Suzuki’s planned Kharkhoda facility will further cement India’s role as its global small-displacement motorcycle hub.

“Our strategy is clear: expand production capacity first, then enhance our product lineup to match global demand,” Handa said. Suzuki aims to significantly double its volumes from FY23 by 2030 under its internal “3.0 strategy”. “We prefer to share targets only when we're fully confident. Right now, we're optimistic about the journey ahead,” Handa concluded.

'No Question of Us Being Late' - Suzuki India on e-2Wheeler Market

Angitha Suresh — Sun, 01 Jun 2025 14:14:27

The Replacement Cycle Starts

Strategic Urban Rollout

E-Access: Suzuki’s EV Leap

Addressing Production Constraints

Exports and Global Strategy

'India Can Become a Major Pillar for Us' - Marquardt Group

Darshan Nakhwa — Sun, 06 Apr 2025 13:28:26

India, the world’s third largest automotive market, is witnessing action across vehicle categories, and German mechatronics specialist Marquardt Group is keen to make the most of this opportunity. Outside the passenger vehicle segment–which contributes the most to the group's India sales–it has spotted opportunities in the two- and three-wheeler, truck, and construction equipment categories, says Chief Executive Officer Björn Twiehaus.

The company is one of the world’s prominent manufacturers of switches, passive keyless entry systems and battery management systems. According to him, the group expects its India business to grow faster than those of all other regions, and in March, it opened a new production plant in Talegaon near Pune to ensure they have enough capacity to cater to demand.

By 2030, it expects its annual turnover from the India business to grow 10 times, from the current 40 million euro turnover. Here are the edited excerpts of the conversation with Twiehaus and Marquardt India’s General Manager, Vishal Narvekar. The two shared insights on opportunities in India, sustainable mobility solutions, their product portfolio, and geopolitical uncertainty.

How much does the India market contribute to your business at a group level? Where do you see it heading in terms of growth by 2030?

Twiehaus: India has the potential to become a major pillar of our group business in the future. At the moment, our turnover from this market is 40 million euros. It’s small compared to the 1.4 billion euro turnover on a group level. But the Indian market is growing and we are prepared to capitalise on it. With the opening of our new production facility in Talegaon, now we have enough capacity to cater to demand for our parts in future.

Outside the passenger vehicle segment, we also see opportunities in the two and three-wheelers, trucks, and construction equipment categories in the country. There is huge potential in these segments as well as in nonautomotive segments. So we are optimistic about our prospects. We expect our India business to grow faster than all other regions. We are targeting a turnover of 400 million euro per year with good profitability by 2030.

What makes you confident in your ability to deliver such strong growth over the next five years?

Twiehaus: There are two reasons why we are confident of delivering such sharp growth. First, confidence in the people that they can handle end-to-end. Our team here is motivated, capable and well prepared. Plus they have the prior experience of handling a smaller facility in Mumbai. And the second reason is that we have tie ups with wellknown automotive companies from India.

Currently, we provide parts to Mahindra & Mahindra, Maruti Suzuki India, Tata Motors, Hyundai Motor, Kia, TVS Motor Co, Daimler, and Stellantis. So we have established business relationships. It's not a greenfield activity that we have to start opening the doors. Now it's much easier to penetrate further product lines with these customers because they are convinced with the quality and the delivery status.

Among vehicle segments, which is the biggest contributor to your sales in India? How much of your business comes from internal combustion engine powered vehicles and electric vehicles?

Narvekar: The passenger vehicle segment is the biggest contributor to sales in India. In this segment, 10-15% of our business comes from EVs and the rest from the ICE segment. Among electric vehicle manufactures, we provide parts to Tata Motors and Mahindra. Going forward, with the launch of more EVs, and a shift in sales trend, we expect the EV contribution to grow.

Twiehaus: The EV segment will support the company’s future growth, but we are not dependent on it. Regardless of powertrain and fuel, whether hydrogen, electric or ICE, all vehicles will require switches, human interface solutions, and entry and authorisation solutions. We provide technologies and solutions which support all kinds of powertrains.

In search of sustainable mobility solutions, automakers are exploring different fuels and powertrains. What is your take on this?

Twiehaus: For passenger cars, and two and three-wheelers, I think electrification is clearly the way forward. Globally, there is continuous growth in EV sales. If you look at China, it's already done, and I think the same is coming for India and other countries. In the truck segment, there has been some electrification, but it's not efficient in terms of the driving range they offer.

Therefore, we may see more hydrogen and synthetic gasoline technologies in the truck segment. And for us, this means we have to observe, discuss with customers and find solutions for their problems. We have to be agile. In these diverse markets, we have to find the best modular approaches to cope with the complexity.

What are the lessons you learnt from the operation of your plant in Mumbai? How have these lessons been incorporated in the new facility?

Twiehaus: The one thing we learned is that we will be much stronger in the region if we have both research and development and production units in close proximity. We can support our customers with end-to-end solutions. Most of our customers are either building or have plants in Pune. Other than developing for the region, now we are also developing for global projects from India. So, they are taking over software development and validation. And we can extend that business as well.

What was the thinking behind selecting Talegaon in Pune to set up a new production base?

Narvekar: There were multiple reasons to select Talegaon as the base. The first reason is that we wanted to be closer to our research and development centre, which is in Pune. When you look at product development and production, they are two processes which are interconnected, and both teams need to work together. The second reason was to come closer to the suppliers and customers both. As you know, Chakan is the base for suppliers as well as major original equipment manufacturers. The third objective was to attract the right talent. Mumbai is not a hub of auto component makers, so sometimes it becomes difficult to get people with the right skills.

With the opening of the Talegaon facility, by how much has your manufacturing capacity gone up in India?

Narvekar: For this year, it would be just 20% higher than the Mumbai plant capacity. But there is scope to up the capacity by 10 times from the current levels to cater to future demand. There is scope for brownfield expansion on this plot as and when the need arises. If you look at the current shop floor, we have not even occupied half of it yet.

What are your export plans?

Narvekar: We are already exporting parts from our Mumbai plant, and we will continue to do that from the new facility as well. We have been able to meet the global quality standard. Currently, we supply parts to South Korea and Europe. Nearly 12% of our sales come from exports. With the new facility, there is scope to increase exports further. But it will also depend on the customer contracts. Our primary focus is to cater to domestic demand.

Twiehaus: I would say we are open to supporting our global needs from India, but the primary reason why we have invested so much here is to have a plant for this region.

The geopolitical tensions have increased in recent times, with a threat of tariff war looming. Do you expect any challenges on the supply front in the near future? And how do you plan to cope with this?

Twiehaus: There are challenges, but I wish everybody cools down a little bit and we work together again globally. Because in the end, that is the best for all of us. If the situation worsens then it would impact everyone directly or indirectly. At Marquardt, we cannot steer the situation, so we have to observe, adjust and consider. But in the end, we are entrepreneurs. We have to search for solutions, and this is what we are looking for, especially in India.

Narvekar: In terms of parts supply, close to 80% of our mechanical components are procured locally and 20% are imported due to specific critical reasons. When it comes to e-components, we still need to import them. So, that's how the distribution is.

Have you seen any interest from Indian suppliers for providing parts for technology shown in Demo Car 2.0?

Twiehaus: In the end, we need alternatives from India for local and global technological requirements. Decoupling is something our customers are looking for. Many Indian suppliers visited the Demo Car 2.0 booth and started a discussion with me about how they can support us and how we can work together. So yes, we are looking for partnerships also in India. For me, it is important to have the Indian speed and innovation spirit. But at the same time, we are looking for discipline and quality which is up to German standards. There are partners here who deliver on time, with the right quality and quantity.

Are you looking for tie ups with charge point operators to provide your robotic charging solutions for EVs?

Twiehaus: There is no concrete plan as of now. We want to support companies who are looking for technical solutions in this space, but cars will also need to be equipped with communication technology. It's more than just a robot charging a vehicle. If you want to have automated charging, there needs to be communication between the car and robot.

So that when a car comes to the charging station the robot can charge, and when it is finished the car should move away so that the next car can come. So there is more to it if you really think about automated charging than just to enter the plug via a robot. It's an ecosystem which we want to support, and are looking for partners who would like to work with us on those technologies.

Luxury Car Market to Slow in 2025: Mercedes-Benz Sees Flattish Numbers

Prerna Lidhoo — Thu, 20 Mar 2025 08:54:30

The Indian luxury car market, which has enjoyed robust growth since the COVID-19 pandemic, outpacing the mainstream segment, is now seeing a slowdown as falling stock markets and geopolitical instability dampen consumer sentiment.

The high-end car market may be experiencing its slowest growth from January to March 2025. If the weakness persists, it may even experience its first quarterly decline in the same period, following nearly 16 consecutive quarters.

According to Santosh Iyer, Managing Director of Mercedes-Benz India, the Indian luxury car market may experience a period of flat growth or a slight dip in the coming quarters due to weak consumer sentiment. However, he remains confident about the sector’s long-term outlook, citing strong economic fundamentals and continued brand desirability.

"We began the year by clearly stating that this year, we would experience growth as such. That’s a broad expectation, but right now, luxury is also a sentiment-driven demand,” Iyer said.

“Currently, sentiments are muted in capital markets and some other sectors due to various geopolitical uncertainties as well.”

The Indian luxury car market is estimated to have grown by 6-7%, with retail sales of over 50,000 units, whereas the mainstream market grew by 4% in 2024. The market grew at nearly double the pace of the mainstream market between 2021 and 2023, helping the industry reach a new peak last calendar year.

Even this year, the market started on a high, with Vahan retail sales in January growing 12%. The momentum slowed in February to 5%, and the stress continues in the current month.

While the market conditions may remain sluggish in the short term, Iyer expects demand to recover in the second half.

“We need to wait for those sentiments to return because, structurally, we don’t see anything wrong from either the economic or consumption perspective. The products are great, and the brand remains very desirable, so the growth should come at the right time,” he explained.

He acknowledged that the industry may see flat or slightly negative growth for a quarter or two before demand picks up again.

“Maybe for one or two quarters, you may see a flat or even a slight decrease, and then it should return to a better growth rate.” On a full-year basis, we still believe it should be either flat or slightly better than last year; therefore, we need to wait for it,” he added.

Tesla's impact on the Luxury Market
Regarding the potential entry of Tesla, Iyer stated that the introduction of new players into the Indian car market will grow the space. “New players always help to grow the market, so I think it’s always welcome to be there,” he said. However, he pointed out that Mercedes-Benz operates primarily in the premium and luxury segments.

"Our stake in the entry-luxury segment is only 10%. Ninety percent of cars sold in India fall in the top-end luxury, ultra-luxury, or core luxury segment,” he noted.

Maharashtra’s EV Tax on Demand
Addressing the recent 6% tax on electric vehicles (EVs) imposed by the Maharashtra Government, Iyer noted that such policy shifts could temporarily impact demand.

“One of the reasons EVs were given exemptions by different states was to promote decarbonization,” he said. “State governments are trying to address issues like livable cities by increasing electric mobility, which is great. However, they also face financial constraints in continuing this waiver.

Mercedes-Benz has observed a demand impact in states where taxes on EVs were introduced. "However, over the last three years, our penetration into EVs has increased from 2% to 3% to 6% last year. More and more consumers are accepting it, and I believe this is also due to the increased availability of a greater variety of products. So, we should wait and watch how this develops.”

Despite short-term headwinds, Mercedes-Benz India remains optimistic about the luxury car market’s long-term potential, anticipating a rebound as consumer confidence stabilizes.

Forex Impact on Pricing
Mercedes-Benz India has implemented price increases this year, with hikes in January and March for the E-Class, which was initially launched at an introductory price.

The company is now closely monitoring foreign exchange movements, as the euro-to-rupee exchange rate has seen a sharp increase, which could lead to further price revisions.

“We implemented a price increase in January, and we also raised the price of the E-Class in March, as we had initially introduced it at a promotional rate," said Iyer.

"The recent depreciation of the rupee against the euro has been a cause for concern. When we look at the exchange rate, the euro has already reached a 95 level, whereas we have always priced our cars at 90. That’s a significant increase, and if this trend continues, it may lead to another price hike from April onwards," Iyer explained.

Market Volatility and Pricing Strategy
The company generally follows an annual price review policy, with occasional adjustments made in the second half of the year as needed. However, sharp currency fluctuations may necessitate quicker responses.

"We generally implement an annual price increase, and sometimes, if required, we may also introduce another hike in the second half of the year. But if the exchange rate fluctuates significantly, we need to react," Iyer said.

To put the impact into perspective, he added, "A five-rupee increase in the euro-to-rupee exchange rate translates to a rise of almost 5-8% in costs, which is quite significant."

Despite these challenges, Iyer emphasized that such fluctuations are a normal part of business dynamics in a global market, and the company will continue to evaluate the situation closely.

‘We Must Have More Women Leaders in the Auto Sector:’ Anjali Rattan

Mayank Dhingra — Tue, 11 Mar 2025 19:34:06

The multi-faceted RattanIndia Enterprises, which operates in the areas of e-commerce and drones, and since June 2022, has taken complete ownership of leading e-motorcycle brand – Revolt Motors – is led by the dynamic Anjali Rattan – who is the chairperson of this New Delhi-headquartered company. Rattan, who is a first-generation entrepreneur, believes that women representation, particularly in roles beyond manufacturing, is sub-par in the automotive industry, and it is important to increase their participation across all tiers of an organisation, especially at the top level. Anjali Rattan, Chairperson, RattanIndia Enterprises shares her viewpoint in this interview.

What is your take on diversity in the automotive industry?

When it comes to diversity, while it is there in the automotive sector, it is mainly in manufacturing and at the shopfloor. There are very few women in areas such as R&D, and sales, among other white-collared roles. Therefore, we need to have women reaching the top level, and once that happens, it will automatically percolate down.

Companies in the automotive industry must aim for equal representation from either gender in the workforce. Having said that, just like how the government is doing excellent programmes in drones, they must introduce initiatives to skill women in technology, R&D, and sales in the automotive industry as well.

What is your vision for diversity at Revolt Motors?

I am a first-generation entrepreneur and it was not an easy journey to be where I am today. Hence, I want to inspire women to unleash their potential and scale heights in their careers. I believe women are naturally wired to be multi-taskers, and hence, my aim is to have more women across domains, across various levels in the organisation. At Revolt Motors, it is our endeavour to hire more women, and bring them into the workforce, be it at the entry- , mid-, or top-level roles.

Are women also emerging as customers of Revolt Motors?

Almost 10% of our customer base comprises women who hail from not just metros, but from Tier-2 and Tier-3 towns as well. Most of these women initially had scooters, and have now converted to using an electric motorcycle. When I speak with them, I get to learn that they like the design of the bike, as well as the convenience offered by the gearless nature of an electric motorcycle.

Moreover, the need to not visit the fuel station to refuel, as well as the elimination of cumbersome servicing needs in an electric two-wheeler, are other important attributes alluring women riders to our products.

What innovative return-to-work measures can be adopted to give women a second shot at their careers?

While we usually hire people for skills, one must hire for the right attitude - irrespective of the gender. Skills can be imparted with training. If a woman who has recently had kids is willing to work for some part of the day, she must be given a chance to revive her career.

At Revolt Motors, we are working on devising such womencentric roles that are flexible, and allow women to showcase their potential and excel in them. I will reiterate that women are naturally wired to multitask, and we are trying to tap into that instinct to bring more women to our company.

Are you passionate about automobiles?

I am an EV lover, and it is something that I bought seven years ago. While I am really passionate about Revolt, I am not an avid biker myself. I do ride our products, but that is primarily for feedback and product reviews to the team. Having said that, I am not scared anymore to ride an electric motorcycle, which is suitable even for women riders. Rather than being a biker, I am more passionate about launching new bikes, and getting to know my customers is something that piques my interest.