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Toyota Kirloskar Motor Opens Experiential Museum ‘tem’ in Bengaluru

Darshan Nakhwa — Sun, 23 Nov 2025 18:09:10

Toyota Kirloskar Motor (TKM) today opened the Toyota Experiential Museum (tem), a new lifestyle and cultural space that blends Indian philosophy of mindful-living with Japanese culture and advanced technology. The centre is located at Phoenix Mall of Asia in Bengaluru.

tem spans 8,200 sq ft and showcases a five-senses experience through visuals, sound, scent, textures, and flavours. Toyota positions the space as a cultural hub that goes beyond automobiles and focuses on art, innovation, and emotional connection.

Tadashi Asazuma, Deputy Managing Director, TKM, says the concept reflects Toyota’s vision of creating happier paths together. “In India, we found inspiration in the practice of Sādhanā–the mindful pursuit of inner balance and fulfilment. tem is where the Japanese culture and values of precision, serenity, and respect for nature beautifully align with the spirit of Sādhanā, making tem a meaningful blend of both. Designed to engage the senses and spark reflection, it brings together art, technology, and craftsmanship to inspire mindfulness, especially amongst the youth. “

Inside tem, visitors experience immersive rooms, a merchandise zone, and a Matcha Corner. The journey begins with mirrored projections depicting seasonal changes common to India and Japan. It mirrors how both the countries find beauty and oneness in nature’s rhythm expressed here through light, colour and motion.

Next is an immersive audio-visual installation developed with Japanese performance group DRUM TAO. It is followed by a striking centrepiece, featuring a cascading water curtain encircling a satin-draped Toyota model.

The space also includes a curated merchandise zone that blends heritage with contemporary lifestyle. The Matcha Corner offers a curated menu, celebrating the timeless tradition of Japanese matcha, infused with refreshing Indian flavours.

India Records 70.7 Lakh Vehicle Sales in Q2 FY26, Two-Wheelers Dominate Market

Arunima Pal — Tue, 18 Nov 2025 14:30:04

India's automotive sector registered sales of 70.70 lakh units across all vehicle categories during the second quarter of fiscal year 2025-26 (July-September 2025), with two-wheelers accounting for nearly 79% of total sales, according to the latest state-wise vehicle sales data.

Two-Wheeler Segment Leads

The two-wheeler segment emerged as the dominant category with 55.62 lakh units sold during the quarter. Uttar Pradesh topped the charts with 6.93 lakh units, followed by Maharashtra, Gujarat, Tamil Nadu, and Rajasthan. The Western Zone led regional sales with 19.33 lakh units.

Three-wheeler sales totaled 2.29 lakh units in Q2 FY 2025-26. Uttar Pradesh recorded the highest sales with 0.28 lakh units, followed by Telangana, Gujarat, Maharashtra, and Karnataka. The Southern Zone led this segment with 0.77 lakh units.

Passenger Vehicles

Passenger vehicle sales stood at 10.39 lakh units in Q2 FY 2025-26. Maharashtra recorded the highest sales in this segment with 1.32 lakh units, followed by Uttar Pradesh, Gujarat, Karnataka, and Kerala. The Western Zone dominated the passenger vehicle market with 3.44 lakh units, representing approximately 33% of total passenger vehicle sales.

Commercial Vehicles

The commercial vehicle segment recorded sales of 2.40 lakh units during the quarter. Maharashtra led the segment with 0.37 lakh units, followed by Gujarat, Uttar Pradesh, Tamil Nadu, and Karnataka. The Western Zone accounted for 0.92 lakh units in commercial vehicle sales.

Regional Performance Analysis

The Western Zone emerged as the strongest performing region across three out of four vehicle categories—passenger vehicles, two-wheelers, and commercial vehicles. The Southern Zone led only in the three-wheeler segment.

Uttar Pradesh demonstrated strong market presence across all categories, securing the top position in both two-wheelers and three-wheelers, while ranking among the top five states in passenger vehicles and commercial vehicles. Maharashtra also showed consistent performance, leading in passenger vehicles and commercial vehicles while ranking second in two-wheelers.

The data reflects the diverse nature of India's automotive market, with different states showing varying preferences across vehicle categories based on local economic conditions, infrastructure development, and consumer demographics.

NHAI to Deploy QR Code Sign Boards for Enhanced Highway Information and Commuter Safety

Arunima Pal — Fri, 03 Oct 2025 16:17:27

In a move aimed at improving transparency and convenience for highway users, the National Highways Authority of India (NHAI) has announced the installation of Project Information Sign Boards equipped with Quick Response (QR) codes along national highways.

The initiative is designed to provide commuters with project-specific details and critical emergency information through easy-to-access digital means. The QR code sign boards will display a range of information including National Highway numbers, highway chainage, project length, construction and maintenance periods, as well as contact details for the Highway Patrol, Toll Manager, Project Manager, Resident Engineer, and NHAI field offices. Emergency helpline numbers, including 1033, will also be accessible via the QR codes.

Additionally, the sign boards will guide users to nearby facilities such as hospitals, petrol pumps, toilets, police stations, restaurants, toll plazas, truck lay-byes, vehicle service stations, puncture repair shops, and e-charging stations, thereby improving on-road convenience.

For optimal visibility, the QR code sign boards will be strategically placed at wayside amenities, rest areas, toll plazas, truck lay-byes, and at highway start and end points.

Through this deployment, NHAI aims not only to enhance transparency and accessibility of highway project information but also to improve road safety and commuter experience. By enabling instant access to emergency contacts and local amenities, the initiative seeks to increase awareness about national highways while facilitating safer and more informed travel across India.

FM: Govt to Upgrade One ITI per District for AI Training

Yukta Mudgal — Thu, 18 Sep 2025 16:22:46

Finance Minister Nirmala Sitharaman on Thursday announced that one industrial training institute (ITI) in every district will be upgraded into an AI-based training hub under a hub-and-spoke model, to strengthen skills and tap India’s demographic dividend.

The minister, speaking at the International Forum for Quality Management (IFQM) Symposium addressing industry leaders across the automotive, auto-component, and aviation sectors, said the government is taking a comprehensive approach to skilling, focusing not only on traditional training but also on emerging technologies like artificial intelligence.

“We came up with an offer from the central government that every district-level ITI, around 750 across the country, adopt a hub-and-spoke model within the state. We will be able to provide them the entire money required for upgrading these places into AI-driven training centres,” Sitharaman said.

According to a PIB release, India has 14,615 ITIs, of which 3,316 are government-run and 11,299 privately managed. ITIs are funded not only by the government but also by OEMs.

In July, the Centre set up a National Steering Committee (NSC) with members from key ministries, states, and industry to frame guidelines for upgrading India’s skilling ecosystem. The move follows the Cabinet’s approval in May of a ₹60,000 crore plan to revamp 1,000 ITIs under a hub-and-spoke model and establish five National Centres of Excellence, targeting training for over two million youth. Industry players like Bajaj Auto, ITC, HAL, and Hero MotoCorp are part of the panel.

The new model is designed to align skills with industry needs, particularly in areas ranging from agriculture to automation, and to offer hands-on AI training to youth, including school dropouts and graduates.

The initiative is part of a broader push to bridge the gap between education and employability. Sitharaman said India’s industry is moving rapidly toward digital and AI-driven operations but continues to face a shortage of skilled workers.

She highlighted the skill gap in the industry and called for greater collaboration between the private sector and the government. “The degree on paper is there. But the individuals are not groomed adequately enough to be a part of the large multinationals. So I would want private sector participation together with the government, in readying youth to be fit for quick and direct employment.”

“Industry’s grievance when talking to the government has been that we are moving rapidly… but we are not able to have the right kind of people to employ,” she said. “In the last two budgets, provisions have been made so that manpower, skilling and upskilling can all happen with the investment that we can put in.”

The government is also supporting AI research and training at top institutions, including IITs and the Indian Institute of Science, beyond ITI upgrades. These centres of excellence are focusing on priority sectors such as agriculture, education, health, and urban development, with space and nuclear technology recently added to the list.

SAIC to Cut Stake in Indian Car Venture Amid Investment Curbs: Reuters

Arunima Pal — Thu, 18 Sep 2025 15:05:15

China’s state-owned automaker SAIC Motor plans to significantly reduce its 49% stake in its Indian joint venture and halt further investment, Reuters reported, citing five people familiar with the matter. The move underscores how political tensions between India and China continue to affect cross-border business.

According to Reuters, the decision follows India’s 2020 restrictions on foreign investment from neighboring countries, widely viewed as aimed at China after a border standoff that year. In an attempt to navigate these hurdles, SAIC had tied up with Indian conglomerate JSW Group to expand in the world’s third-largest auto market.

While Indian and Chinese leaders met last month to ease tensions, Reuters noted there has been little progress. For instance, Indian auto companies are still awaiting approvals from Beijing to import rare earths.

Although SAIC is not fully exiting India, Reuters sources said it intends to dilute its stake in JSW MG Motor substantially while continuing to supply technology and products. JSW has offered to buy most of SAIC’s holding to become the largest shareholder, but both sides are reportedly at odds over valuation.

Reuters added that friction between the two partners is not limited to politics. JSW has engaged in advanced discussions with Chinese automaker Chery Automobile for a technology partnership to produce cars in India under its own brand, a move that has reportedly caused unease for SAIC.

SAIC first entered India in 2019 under the MG Motor brand, investing over $650 million and acquiring a former General Motors facility in Gujarat with a capacity of 120,000 cars annually. However, its proposal to invest further in electric vehicles under a government incentive scheme was declined in 2020.

Last year, SAIC sold a majority stake in its Indian unit to local entities, with JSW acquiring 35% for about $300 million, valuing MG Motor India at $1.2 billion, Reuters reported. The proceeds went to SAIC rather than the local subsidiary. JSW MG Motor has since filed a $240 million EV investment proposal, which is still pending government approval.

Despite financial strain and continued losses, JSW MG Motor has expanded sales — from 16,500 cars in 2019 to 61,000 in 2024 — making it India’s second-largest EV manufacturer after Tata Motors, Reuters noted. However, with Tesla’s recent entry into India, competition in the EV space is set to intensify further.

India’s Domestic Market Shields Economy From Global Shocks: S&P Global

Arunima Pal — Wed, 17 Sep 2025 15:17:34

India’s large domestic market provides a buffer against global volatility, helping it remain the fastest-growing major economy, according to S&P Global’s latest India Forward: Shifting Horizons report.

The study projects India’s GDP will expand by 6.5% in fiscal year 2025–26, despite shifting global trade policies and external uncertainties. S&P Global noted that while external shocks have posed short-term challenges in the past, India has managed to sustain its long-term growth trajectory through economic reforms, infrastructure expansion, and process improvements.

The report highlighted several key trends shaping India’s outlook. Private credit is expected to play a bigger role in bridging financing gaps left by traditional lenders, while India’s digital economy is driving demand for datacenter capacity. By 2028, India is projected to become the second-largest market in Asia-Pacific for datacenter electricity demand, overtaking Japan and Australia.

The study also points to opportunities in emerging sectors. India aims to scale its shipbuilding industry to rank among the world’s top five by 2047, up from less than 1% global share today. Efforts are also underway to localize the nuclear value chain, with reforms anticipated in 2026–27 to simplify liability frameworks and boost domestic capacity.

On the energy and transport front, the report observed that while electric vehicle adoption is growing, biofuels and green hydrogen will remain critical for heavy transport and legacy fleets. State-level incentives and central government initiatives are expected to accelerate this transition.

Atul Arya, Executive Sponsor of the India Research Chapter and Chief Energy Strategist at S&P Global Commodity Insights, said: “Frameworks that accelerate infrastructure development, promote inclusive reforms, foster private investments, diversify trade and build resilient supply chains can help India seize opportunities. This edition of India Forward shines light on multidimensional and multistakeholder approaches that will strengthen India’s growing claim as a global economic and geopolitical powerhouse.”

The India Forward: Shifting Horizons report is prepared by S&P Global and Crisil’s India Research Chapter, under the S&P Global India Leadership Council.

India Turns to Multimodal Strategy for Green Mobility Transition: S&P Global

Arunima Pal — Wed, 17 Sep 2025 15:01:44

India is accelerating efforts to reform its transportation sector as it confronts growing urban mobility challenges, pollution, and high logistics costs. According to a report by S&P Global, the country is embracing a multimodal and multifuel approach in its push toward sustainable transport.

The report highlights that while electric vehicles (EVs) are expanding rapidly — especially among two-wheelers, three-wheelers, and commercial vehicles — other technologies such as biofuels, hybrids, and green hydrogen are essential for existing fleets and heavy-duty transport. Government policy is seen as a key enabler: EV subsidies, incentives for domestic manufacturing, infrastructure expansion, and regulatory support are all part of this strategy.

As of 2024, the EV sector in India registered nearly 1.9 million units sold, translating into about 7.5% market penetration. Still, high upfront costs, limited charging infrastructure, and concerns over vehicle range remain obstacles. To address these, the government has launched schemes to boost charging networks, set ambitious production and investment targets, and introduced measures for battery recycling and reducing reliance on imports.

States are also playing a role: Delhi, Kerala, Assam, Karnataka, and Uttar Pradesh are among those leading in EV adoption, thanks in part to aggressive incentives, favorable policy environments, and infrastructure roll-outs.

Beyond EVs, biofuels and hydrogen are being positioned for roles in decarbonizing India’s transport system. The aim is to reach 20% ethanol blending in gasoline by 2025-26 and 5% biodiesel by 2030, while planning for green hydrogen use in heavy vehicles and fleet vehicles.

S&P Global’s report identifies several priorities for further action: ensuring stable long-term policy frameworks, scaling infrastructure — especially public charging — in underserved areas, building local battery and component supply chains, enforcing standards in recycling and circular economy practices, and focusing on skills development for the evolving green mobility ecosystem.

India Turns to Multimodal Strategy for Green Mobility Transition: S&P Global

Arunima Pal — Wed, 17 Sep 2025 15:01:44

Apollo Tyres Secures Team India Jersey Sponsorship in ₹579 Crore Deal

Arunima Pal — Tue, 16 Sep 2025 16:34:48

Apollo Tyres has emerged as the new jersey sponsor for the Indian cricket team, signing a three-year agreement valued at ₹579 crore. A senior BCCI official confirmed the development to PTI on Tuesday, adding that the formal announcement will follow soon.

The bidding process took place on September 16. Apollo Tyres outbid Canva and JK Cements, which had placed bids of ₹544 crore and ₹477 crore respectively. The tyre major’s deal is 62% higher than the ₹358 crore sponsorship previously signed with online gaming platform Dream11 for the same duration.

The new agreement covers 121 bilateral matches and 21 ICC fixtures involving the Indian men’s team. Apollo Tyres, headquartered in Gurugram, will see its first exposure as sponsor during India’s two-match Test series against the West Indies starting October 2. The logo will also feature in the India A vs. Australia A three-match ODI series in Kanpur.

The sponsorship rights had been up for grabs since early September after Dream11’s exit. The BCCI terminated its deal with the gaming firm following the enactment of the Promotion and Regulation of Online Gaming Act, 2025. The law prohibits offering or promoting online money gaming services, forcing Dream11 to withdraw.

As part of the tender process, the BCCI barred companies associated with real money gaming and cryptocurrency, in line with government regulations. Other sectors also declared ineligible included athleisure and sportswear manufacturers, banking and financial companies, non-alcoholic beverages, fans, mixer grinders, safety locks, and insurance firms.

With this deal, Apollo Tyres joins the roster of Indian corporates linking their brand to cricket, ensuring high visibility across international and domestic fixtures over the next three years.

EU Official Says Hope to Conclude India FTA by Year-End

Anurag Chaturvedi — Fri, 12 Sep 2025 16:45:53

A senior EU trade official said he hopes to finalize the India-European Union Free Trade Agreement by December 2025, positioning the auto component industry for significant gains as bilateral negotiations enter their decisive phase.

Speaking at the 65th Annual Convention of the Automotive Component Manufacturers Association of India (ACMA), European Commissioner for Trade and Economic Security Maroš Šefčovič declared: "We are now maximising the efforts to finalize trade negotiation by the end of this year for win-win scenarios for both parties."

The announcement carries weight for India's auto component sector, which currently exports $6.89 billion worth of components to Europe - making it the largest regional destination ahead of North America's $6.19 billion, according to Invest India data.

Auto Industry Primed for Growth

India's auto component exports reached $21.2 billion in financial year 2024, with Europe commanding a 32% share as of 2022, according to Statista data. The FTA could unlock this potential further as the industry targets $100 billion in exports by focusing on US and European markets, as reported in March 2025.

"The auto car components trade between EU and India share the high value investments and additional jobs... entire ecosystem and sharing equipment in manufacturing," the official explained, highlighting the sector's strategic importance.

The timing appears critical as India exported $77.5 billion worth of goods to the EU-27 in 2024, positioning the bloc as a major trade partner despite the absence of preferential access.

Economic Foundation

The negotiations build on substantial economic ties. "Over 6,000 EU companies operate in India... economic businesses have created more than 3 million jobs in India," the official noted, emphasizing the existing foundation.

Official EU trade data shows the bloc as India's second-largest trading partner with €120 billion in goods trade in 2024, representing 11.5% of India's total trade. The official maintained that "in 2024, the EU was India's largest trading partner."

"We'll be negotiating for quite some time... but I assure you that it has been in the best momentum," the official acknowledged, adding with characteristic diplomacy: "We will not agree on most of the things... but I'm sure we will achieve success."

Strategic Stakes Beyond Trade

The negotiations carry broader implications as both regions seek to diversify supply chains and reduce dependencies. "We are working [on] how to unlock further how to improve supply chain... how both can benefit," the official explained.

The official drew a personal comparison when discussing India's negotiating approach: "Your minister is fighting for you like a lion and I'm born in the land of lion... so we both understand each other very well."

With negotiations still ongoing, the auto component industry watches closely as the year-end deadline could reshape one of the world's most significant trade relationships, potentially transforming India's position in global automotive supply chains.

India Plans GST Cuts on Cars, Consumer Goods in Biggest Tax Overhaul in a Decade: Reuters

Autocar Professional Bureau — Mon, 01 Sep 2025 20:03:39

India is planning to slash consumption tax by at least 10 percentage points on nearly 175 products, including shampoos, hybrid cars and consumer electronics, Reuters reported on Monday, citing two sources familiar with the matter.

According to the report, this would mark the biggest reform of the goods and services tax (GST) system in nearly a decade. The move comes as Prime Minister Narendra Modi pushes for greater use of Indian-made products amid strained trade ties with the United States.

Modi, who had first flagged the reform during his Independence Day address last month, said he aimed to make daily-use items cheaper for people in the world’s fifth-largest economy. Reuters noted that consumer goods such as toothpaste, talcum powder and shampoo could see GST rates fall from 18% to 5%, benefiting companies like Hindustan Unilever and Godrej Industries.

Air conditioners and television sets may also witness a reduction in GST from 28% to 18%, ahead of the crucial Diwali shopping season, when brands such as Samsung, LG Electronics and Sony typically see peak sales, the report said.

India’s GST Council, chaired by Finance Minister Nirmala Sitharaman and including state representatives, is scheduled to finalise the list of items for tax cuts during its September 3-4 meeting. The finance ministry did not immediately respond to Reuters’ request for comment.

The proposed cuts are also aimed at offsetting an anticipated decline in exports to the U.S. by spurring domestic consumption, raising farm incomes and strengthening self-reliance among Indian manufacturers, Reuters added. Tax relief is expected for export-linked items such as fertilisers, farm machinery and tractors, with GST potentially dropping to 5% from the current 12–18%. The textile sector, hit by U.S. tariffs, is also set to benefit.

In the automobile sector, Reuters reported that the government has proposed cutting GST on small petrol hybrid cars to 18% from 28%, a move likely to benefit Toyota and Suzuki. While Japanese carmakers have long lobbied for such a cut, Indian EV makers Tata Motors and Mahindra & Mahindra have raised concerns that cheaper hybrids could slow the country’s transition to electric mobility.

The government also plans to lower GST on commuter motorcycles and scooters under 350cc, which account for about 95% of the nearly 20 million two-wheelers sold annually by companies such as Bajaj Auto, Hero MotoCorp and TVS Motor. Small car sales, dominated by Maruti Suzuki along with Hyundai and Tata Motors, are also expected to rise.

Meanwhile, bigger cars—over 4 meters long with higher engine capacity—will see GST rise from 28% to 40%, though Reuters said the government may reduce additional levies to keep the overall tax burden steady at about 50%.

On the revenue side, the government is also considering raising GST rates on coal and on services such as betting, casinos and horse racing, while maintaining existing levies on carbonated drinks produced by PepsiCo, Coca-Cola and Reliance Industries, despite industry calls for tax relief.

SC: No Motor Vehicle Tax If Vehicle Not Used or Kept for Use in Public Place

Autocar Professional Bureau — Mon, 01 Sep 2025 18:56:53

The Supreme Court has ruled that owners cannot be compelled to pay motor vehicle tax if their vehicles are not used in or kept for use in a “public place.” According to media reports, the Court emphasized that the levy is compensatory in nature and directly tied to the benefit of public infrastructure such as roads and highways.

The ruling came in an appeal arising from an Andhra Pradesh High Court order, reported LiveLaw and other legal news outlets. A Division Bench of Justice Manoj Misra and Justice Ujjal Bhuyan observed that the legislature had consciously used the term “public place” in Section 3 of the Andhra Pradesh Motor Vehicle Taxation Act, 1963. “If a motor vehicle is not used in a public place or not kept for such use, then the person concerned is not deriving benefit from the public infrastructure; therefore, he should not be burdened with tax for that period,” the judges held, as cited in reports.

Case Background

As per media accounts, the appellant company owned heavy lifting vehicles used for logistics within Visakhapatnam Steel Plant, operated by Rashtriya Ispat Nigam Limited (RINL). The company informed the Transport Department that these vehicles were confined to the plant premises and sought exemption from motor vehicle tax under Section 3 of the Act.

Despite this, officials raised a demand of ₹7,37,960, followed by another demand of ₹15,33,740. Reports note that the company paid a total of ₹22,71,700 under protest. While a Single Judge of the Andhra Pradesh High Court later ordered refund of the amount, a Division Bench overturned that decision. This led the company to approach the Supreme Court.

Court’s Reasoning

Media reports highlight that the apex court clarified that the taxable event under Section 3 arises only when a vehicle is used or kept for use in a public place. Vehicles confined to a restricted industrial premises, such as RINL’s yard, do not fall within this scope.

The Bench also addressed Rule 12A of the Andhra Pradesh Motor Vehicles Taxation Rules, 1963. Reports quote the judges as saying that a rule cannot go beyond the ambit of its parent statute and must be read harmoniously with Section 3. Thus, the words “kept for use” in Rule 12A must be understood as “kept for use in a public place.”

The Court further held that the absence of formal intimation of non-use under Rule 12A could not justify tax liability when the vehicles were never used outside the restricted premises.

Verdict

On this basis, the Supreme Court set aside the Division Bench order of the Andhra Pradesh High Court and restored the Single Judge’s ruling directing refund of ₹22,71,700 to the appellant, as reported across multiple legal news platforms.

Supreme Court Dismisses PIL Against E20 Petrol Implementation as Automotive Industry Battles Consumer Concerns

Shahkar Abidi — Mon, 01 Sep 2025 14:57:11

India's Supreme Court today dismissed a public interest litigation challenging the nationwide rollout of 20% ethanol-blended petrol, dealing a decisive blow to critics who argued that millions of motorists were being forced to use fuel incompatible with their vehicles. The ruling by Chief Justice B.R. Gavai and Justice K. Vinod Chandran effectively validates the government's ambitious ethanol blending programme amid fierce debate over vehicle compatibility and consumer choice.

The PIL, filed by advocate Akshay Malhotra, sought to compel the Ministry of Petroleum and Natural Gas to ensure ethanol-free petrol remained available at fuel stations across India. Senior Counsel Shadan Farasat, representing the petitioner, argued that consumers lacked choice and that many vehicles, particularly those manufactured before April 2023, were not designed for high ethanol blends, risking engine damage and reduced mileage.

"E20 is a logical progression, but cars need to be made compatible along with engine calibration. Non-availability of E10 petrol for existing customers is what we are challenging. We want options. We do not want E20 to go," Farasat said, as per a report by legal news website Bar and Bench. “In India, without informing the consumers, only ethanol-blended petrol is made available to the public without any labelling or display of composition of the fuel,” the petitioner alleged.

The petition demanded mandatory labelling of ethanol content at fuel pumps, consumer awareness campaigns, and a nationwide study on the impact of E20 on non-compliant vehicles. It highlighted that in the United States and European Union, ethanol-free petrol remains widely available with clear labelling, allowing informed consumer choice.

Attorney General R. Venkataramani mounted a robust defence, suggesting vested interests were behind the challenge. He stated that the petitioner is a name lender. "Somebody from outside will dictate what petrol to use," he told the court, adding that the programme benefits sugarcane farmers and India's energy security. The government argued that consumers could not dictate fuel composition and emphasised the policy's alignment with national energy goals.

India's Ethanol Gamble: A Fuel-Blended Quandary

India is charging ahead with an ambitious ethanol blending programme, aiming for a 20 percent ethanol-petrol mix (E20) by 2025–26, a target advanced significantly from its original 2030 deadline. This rapid rollout, however, has ignited a fierce debate, pitting the government's strategic objectives against mounting consumer and industry anxieties.

The government champions ethanol blending as a dual panacea: a critical step to slash India's colossal crude oil import bill, which exceeds $130 billion (over Rs 1.1 lakh crore) every year, thereby bolstering energy security against geopolitical uncertainties. Official figures claim over Rs 24,300 crore of savings in foreign exchange in the ethanol supply year 2022–23. Beyond economics, ethanol, derived from crops, is touted as a cleaner-burning, low-carbon fuel that supports the rural economy.

Yet, the speed of E20 adoption and the lack of choice of lower ethanol blends like E10 have triggered an uproar. Motorists, especially those with older vehicles not explicitly designed for E20, voice fears of a drastic reduction in mileage and long-term corrosion of mechanical components. Anecdotal reports suggest efficiency losses of 15–20 percent, although official Automotive Research Association of India (ARAI) tests indicate a smaller dip of 1–6 percent, varying by vehicle.

Facing mounting criticism, the automotive sector organised a joint press conference featuring SIAM, ARAI, and petroleum industry representatives to address concerns. They dismissed consumer complaints as "misinformation and misunderstanding," claiming that mileage drops could also result from poor maintenance, bad driving habits, or vehicle age.

What Next?

With the Supreme Court dismissing the PIL, critics face limited legal recourse. The court's decision validates the government's position that ethanol blending serves national interests in energy security, environmental protection, and agricultural support. The ruling effectively endorses the phase-out of ethanol-free fuel options.

For vehicle owners concerned about compatibility, manufacturers have committed to honouring warranties and insurance claims. However, the lack of alternative fuel options means consumers will have to learn to live with it or, if possible, choose premium petrol variants like XP95 (from Indian Oil) or Power 95 (from Hindustan Petroleum), which are touted to generally contain lower ethanol content compared to regular E20 petrol, though the exact blend can vary by provider and location.

China Agrees to Lift Export Restrictions on Rare Earth Magnets, Critical Items to India- Report

Autocar Professional Bureau — Tue, 19 Aug 2025 11:32:55

In a significant diplomatic development, China has agreed to address India's pressing concerns regarding export restrictions on three critical items - fertilizers, rare earth minerals, and tunnel boring machines, according to a report by The Economic Times.

The breakthrough came during Chinese Foreign Minister Wang Yi's two-day visit to India, where he held crucial talks with External Affairs Minister S. Jaishankar, the newspaper said.

According to sources familiar with the discussions, as reported by the Economic Times (ET), Beijing has not only committed to easing fertilizer export restrictions but has also conveyed its readiness to allow shipments of rare earth magnets, minerals, and tunnel boring machines to India. These were the three key requests that New Delhi had consistently flagged in bilateral talks, ET sources revealed.

The Background

China had imposed unofficial trade restrictions on these critical items over the past several months, creating significant challenges for India's industrial and agricultural sectors.

The Economic Times had earlier reported that China stopped shipments of specialty fertilizers to India for over two months, adding to a growing list of trade restrictions that also affected rare-earth magnets and tunnel boring machines.

The fertilizer restrictions particularly impacted India's agricultural sector, which relies heavily on specialty fertilizers for high-yield crops. India imports approximately 80% of its specialty fertilizer supplies from China, making the restrictions especially concerning for farmers and the broader agricultural economy.

Strategic Importance

The lifting of these curbs holds immense strategic significance for India. Rare earth minerals are crucial for various industries including electric vehicles, wind turbines, and defense manufacturing. As ET has previously highlighted, India's dependence on Chinese rare earth imports has been a key concern in bilateral trade discussions.

Tunnel boring machines are essential for India's ambitious infrastructure projects, including metro rail systems and mountain tunnels. The restriction on these machines had the potential to delay several critical infrastructure developments across the country, according to industry sources quoted by ET.

Diplomatic Success

The assurance from Chinese Foreign Minister Wang Yi represents a significant diplomatic success for India. External Affairs Minister Jaishankar had raised these concerns during his visit to China in July, and the Chinese response during Wang Yi's visit indicates positive momentum in bilateral relations.

In his opening remarks during the meeting, EAM Jaishankar emphasized that the talks would cover "economic and trade issues, pilgrimages, people-to-people contacts, river data sharing, border trade, connectivity and bilateral exchanges," as reported by ET sources.

Market Impact

The news has already begun to impact Indian markets, with fertilizer companies showing positive movement. FACT (Fertilisers and Chemicals Travancore) shares jumped nearly 3% following reports of China lifting fertilizer export curbs, reflecting investor optimism about improved supply chains.

Industry analysts believe that the easing of Chinese export restrictions will help stabilize domestic prices and improve availability, directly benefiting fertilizer producers and ultimately Indian farmers.

Moving Forward

Jaishankar told his Chinese counterpart that the differences between the two countries should not become disputes, emphasizing the need for a "candid and constructive approach from both sides." He stressed that this endeavor must be guided by the three mutuals - mutual respect, mutual sensitivity, and mutual interest.

The Chinese Foreign Minister's visit comes at a crucial time, just ahead of Prime Minister Narendra Modi's proposed visit to China to attend the annual Shanghai Cooperation Organisation (SCO) summit.

As ET has consistently reported, this development marks a positive step in India-China trade relations, which have faced various challenges in recent years. The resolution of these three critical export issues could pave the way for broader improvements in bilateral economic cooperation.

The actual resumption of shipments will be closely watched by industry stakeholders, with reports indicating that some shipments may have already begun, according to sources cited by ET.

Centre Issues Guidelines for Electric Truck Subsidies under PM E-Drive

Kiran Murali — Fri, 11 Jul 2025 09:53:12

The Union government has announced the guidelines and subsidies for electric trucks under the PM E-DRIVE Scheme, which offers demand incentives for electric vehicles and supports charging infrastructure. A total of Rs 500 crore has been allocated under the Rs 10,900-crore scheme to support 5,643 electric trucks in the financial year 2026.

As per the guidelines, incentives are applicable for electric trucks with gross vehicle weight exceeding 3.5 tonnes but not more than 55 tonnes. The incentive will be calculated as ₹5,000 per kilowatt-hour (kWh) of battery capacity, or up to 10% of the vehicle’s ex-factory price, whichever is lower.

Electric trucks under the N2 category with a Gross Vehicle Weight (GVW) between 3.5 and 7.5 tonnes qualify for a maximum incentive of Rs 2.7 lakh. Trucks with a GVW exceeding 7.5 tonnes and up to 12 tonnes are eligible for a maximum subsidy of Rs 3.6 lakh. Subsidies can be availed only if the consumer buys an electric truck with a Certificate of Deposit (CD) obtained after scrapping an old vehicle.

"The incentive will be applicable only for the “puller tractor” of N3 category in case of an articulated vehicle (tractor-trailer combination)," the government said.

In the N3 category, trucks with a GVM of more than 12 tonnes and up to 18.5 tonnes will be eligible for a maximum subsidy of ₹7.8 lakh. Those with a GVM of over 18.5 tonnes and up to 35 tonnes can receive up to ₹9.6 lakh, while trucks with a GVM between 35 and 55 tonnes will be eligible for a subsidy of up to ₹9.3 lakh.

The eligibility for incentives is also based on a minimum battery warranty of 5 years or 5,00,000 km, a motor warranty of 5 years or 2,50,000 km, and a vehicle warranty of 5 years or 2,50,000 km.

“The incentives of e-trucks announced today under the PM E-Drive scheme are a step forward in the journey towards zero-emission mobility. Sustained progressive direction in this direction will be key in this direction will be key to improving total cost of ownership and driving large-scale fleet adoption,” said Girish Wagh, executive director at Tata Motors.

The PM E-Drive scheme replaced the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) schemes and the temporary Electric Mobility Promotion Scheme (EMPS). It began on October 1, 2024, and is set to expire on March 31, 2026, unless extended.

While the incentives for two-wheelers, three-wheelers, and buses were rolled out last year, electric trucks, e-ambulances, and incentives for charging infrastructure have been awaiting guidelines. The guidelines for charging infrastructure is being formulated by the Ministry of Power.

Under the scheme, demand incentives worth Rs 3,679 crore have been allocated for electric two-wheelers, three-wheelers, ambulances and trucks, while Rs 7,171 crore has been set aside to boost the adoption of electric buses, improve public charging infrastructure and upgrade testing infrastructure.

The target is to support 24.79 lakh electric two-wheelers, 3.16 lakh three-wheelers and 14,028 buses and trucks, as well as 88,500 electric vehicle charging sites.

The subsidies given on the purchase of electric vehicles are instrumental in driving the early-stage adoption of electric vehicles as incentives help in reducing the upfront cost of the vehicle.

As EV adoption grows, the government has been progressively scaling back subsidies, signaling a deliberate policy shift away from fiscal dependency. The incentives for purchasing electric two-wheelers and three-wheelers are likely to be phased out with the expiration of the current scheme.

Government officials are of the opinion that only those segments that have not reached 10% electric vehicle penetration will require demand incentives from 2026.

The 2-year PM E-Drive scheme with a subsidy of Rs 5,000 per kWh for electric two-wheelers in October last year and a cap of Rs 10,000 per vehicle. The incentive was halved to ₹2,500 per kWh in April this year.

Electric rickshaws were getting a subsidy of Rs 5,000 per kWh with a cap of Rs 25,000 per vehicle, while passenger and cargo electric autos received a subsidy of Rs 5,000 per kWh with a cap of Rs 50,000 per vehicle last year. These subsidies were also halved from April 2025.

Several OEMs and industry leaders have indicated that the two-wheeler and three-wheeler industry has reached a level of scale of self-sufficiency, that they can sustain the growth momentum going forward without depending on the incentives.

A Certificate of Deposit (CD) obtained after scrapping an old vehicle is mandatory to avail the incentives for electric trucks.

The Voluntary Vehicle-Fleet Modernisation Programme, or Vehicle Scrapping Policy, was introduced in 2022 to support vehicle scrapping through incentives and infrastructure in the form of automated testing stations and registered vehicle scrapping facilities.

On depositing the vehicle for scrapping at registered scrapping facilities, the vehicle owner gets the CD. It is being used for multiple benefits, such as registration fee waivers, road tax concessions, and discounts from automakers on the purchase of new vehicles.

The government has been pitching the vehicle scrappage policy, highlighting its impact on reducing vehicle pollution, improving safety, and boosting new vehicle sales. Recently, most OEMs have agreed to give discounts up to 3% to consumers who purchase new vehicles after scrapping their old vehicles.

"What makes this scheme particularly impactful is its linkage to the scrappage of older vehicles, delivering both environmental and economic benefits," said Volvo Eicher Commercial Vehicles Managing Director and CEO Vinod Aggarwal.

Delhi Government Urges CAQM to Defer Fuel Ban on End-of-Life Vehicles

Kiran Murali — Thu, 03 Jul 2025 21:26:08

Days after implementing a ban on supplying fuel for end-of-life vehicles (ELVs), the Delhi government has written to the Commission for Air Quality Management (CAQM) to hold the implementation of the latter’s direction that mandated the denial of fuel to ELVs in the National Capital Region (NCR) and adjoining areas. He noted that it is difficult to implement the ban due to operational and infrastructure challenges.

Following the orders issued by the CAQM in NCR and adjoining areas earlier this year amid deteriorating air pollution, the Delhi government implemented the ban on refueling ELVs from July 1. ELVs: diesel vehicles older than 10 years and petrol vehicles older than 15 years - are no longer allowed to purchase fuel in the city. The transport department and traffic police are actively impounding ELVs that attempt to refuel at petrol pumps.

“It is not feasible to implement this order at this juncture. In fact, immediate implementation of the direction may be premature and potentially counterproductive,” Delhi Environment Minister Sardar Majinder Singh Sirsa wrote in the letter. “We strongly urge the Commission to put the on hold with implementation of Direction No. 89 NCR.”

To enforce the ban, ELVs are identified using ANPR cameras deployed across Delhi's fuel stations. These cameras scan vehicle number plates and cross-reference the data with the government's VAHAN portal. The ANPR system is specifically designed to flag vehicles that lack a valid Pollution Under Control Certificate (PUCC) or have been deregistered as ELVs.

Sirsa highlighted operational issues with the ANPR system, stating in a letter that it is "not working properly at many places." He cited "crucial issues related to technological glitches, camera placement, sensors not working, and speakers not functioning."

“A stage-wise implementation that begins only in Delhi will not serve its intended purpose. It is highly likely to lead to vehicle owners procuring fuel from adjacent districts like Gurugram, Faridabad, and Ghaziabad, thereby circumventing the ban and potentially fostering an illegal cross-border market for fuel, which would further exacerbate the problem,” he said, adding that the ANPR system is not implemented in the neighbouring areas.

He added that the Delhi government has been complying with the directions of the National Green Tribunal and the Supreme Court on implementing a ban on ELVs and deregistering them to ensure they do not ply on Delhi roads.

Cabinet Approves ₹1 lakh crore RDI Scheme to Fuel Sunrise Sector Innovation

Arunima Pal — Tue, 01 Jul 2025 22:16:29

In a move to strengthen India's innovation and research landscape, the Union Cabinet approved the Research Development and Innovation (RDI) Scheme with a corpus of ₹1 lakh crore. The scheme aims to catalyze private sector investment in research, development, and innovation, especially in sunrise and strategic sectors critical for national economic and technological advancement.

The RDI Scheme is designed to address key constraints in financing private R&D initiatives by offering long-term, low or zero-interest loans. It seeks to provide growth and risk capital to foster cutting-edge innovation, accelerate technology adoption, and enhance competitiveness in sectors of strategic and economic significance.

Key Objectives of the RDI Scheme

Stimulate private sector-led R&D in sunrise domains and areas vital to self-reliance and economic security.
Finance transformative projects with higher Technology Readiness Levels (TRL).
Support acquisition of strategically important technologies.
Facilitate the creation of a Deep-Tech Fund of Funds (FoF).

The Department of Science and Technology (DST) will act as the nodal body for implementing the scheme. Strategic direction will be provided by the Governing Board of the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister. An Executive Council within the ANRF will formulate scheme guidelines and identify fund managers and eligible project categories, while an Empowered Group of Secretaries (EGoS) led by the Cabinet Secretary will monitor implementation and approve adjustments to the scheme.

The scheme introduces a two-tiered funding structure. At the first level, a Special Purpose Fund (SPF) will be created within ANRF to manage and allocate funds. These resources will then be distributed to second-level fund managers to finance R&D projects—primarily through concessional loans, and in select cases, equity funding for startups. Contributions to deep-tech or other innovation-focused funds may also be made under this framework.

By addressing the long-standing financing gap in India’s private R&D ecosystem, the RDI Scheme is expected to foster self-reliance, stimulate deep-tech innovation, and position India as a globally competitive innovation hub—aligning with the country’s long-term vision of Viksit Bharat by 2047.

Cabinet Approves ₹1 Lakh Crore Employment Linked Incentive Scheme

Arunima Pal — Tue, 01 Jul 2025 19:14:28

In a major push to generate employment and formalize India’s workforce, the Union Cabinet Modi approved the Employment Linked Incentive (ELI) Scheme, with a total outlay of ₹99,446 crore. The scheme aims to create over 3.5 crore new jobs across sectors over two years, with a strong focus on the manufacturing sector and first-time employees.

Unveiled as part of the Union Budget 2024–25 under a ₹2 lakh crore employment and skilling package targeting 4.1 crore youth, the ELI Scheme is designed to incentivize both workers and employers through financial support, social security, and formal employment pathways.

Two-Part Scheme

The scheme is structured into two components:

Part A: Incentives for First-Time Employees

Targeting approximately 1.92 crore first-time workers, this segment offers a one-month EPF wage incentive up to ₹15,000, split into two installments. Employees earning up to ₹1 lakh/month and registered with the Employees’ Provident Fund Organisation (EPFO) are eligible.

The first installment will be disbursed after six months of continuous employment.
The second installment will follow after twelve months, subject to successful completion of a financial literacy program.
A portion of the incentive will be held in a fixed savings account, encouraging long-term financial discipline.

Part B: Incentives for Employers

To promote additional hiring, particularly in the manufacturing sector, employers will receive incentives for each new employee earning up to ₹1 lakh/month and retained for at least six months.

₹1,000/month for EPF wages up to ₹10,000
₹2,000/month for wages between ₹10,001–₹20,000
₹3,000/month for wages above ₹20,000 up to ₹1 lakh

Incentives will be provided for two years, with an extended duration of four years for employers in the manufacturing sector. To qualify, EPFO-registered establishments must hire at least two additional employees (for firms with fewer than 50 workers) or five (for firms with 50 or more).

This component is expected to generate employment for nearly 2.6 crore persons.

Welcoming the announcement, Dr. Anish Shah, Immediate Past President of FICCI, said:

“FICCI welcomes the Employment Linked Incentive Scheme as a bold and timely step toward tackling India’s employment challenge. By incentivising first-time workers, boosting manufacturing, and encouraging employer participation, it reflects smart, inclusive policymaking. Its emphasis on dignity, security, and formalisation aligns deeply with industry aspirations. We commend the Government’s vision and commitment to creating meaningful jobs at scale.”

All payments to first-time employees under Part A will be made via Aadhaar-based Direct Benefit Transfer (DBT). Employer incentives under Part B will be credited directly into PAN-linked accounts, ensuring transparency and ease of access.

The scheme’s benefits will be applicable to jobs created between August 1, 2025, and July 31, 2027.

Through the ELI Scheme, the government aims to accelerate job creation across all sectors, with a strong emphasis on manufacturing. The scheme also seeks to encourage youth entering the workforce for the first time. A key outcome will be the formalisation of India’s labour force by expanding social security coverage to millions of young workers.

Maruti Suzuki Opens India's Largest Automobile Railway Siding at Manesar Plant

Arunima Pal — Tue, 17 Jun 2025 13:52:42

Union Minister for Railways Ashwini Vaishnaw and Haryana Chief Minister Nayab Singh Saini inaugurated India's largest automobile in-plant railway siding at Maruti Suzuki's Manesar facility. The facility can dispatch 450,000 vehicles annually at full capacity.

The railway siding operates under the PM GatiShakti National Master Plan and forms part of the 126-kilometer Haryana Orbital Rail Corridor (HORC) connecting Sonipat to Palwal. The project was executed by Haryana Orbital Rail Corporation Limited (HORCL), a joint venture company.

Maruti Suzuki invested Rs 3,250 million in developing HORC and Rs 1,270 million in internal yard development, totaling Rs 4,520 million. The siding spans 46 acres within the Manesar facility and features four full-length tracks for rakes and one track for engine escape, with a total track length of 8.2 kilometers.

The facility includes a two-floor station building, pathways for guards and drivers, and electronic train interlocking systems. It will serve vehicle dispatch to 17 hubs covering 380 cities across India, including port locations at Mundra and Pipavav for exports.

The company estimates the facility will help avoid 175,000 tonnes of CO2 equivalent emissions and save 60 million liters of fuel annually at full capacity. The project supports India's Net Zero emissions target for 2070.

"The project underscores our commitment to India's Net Zero emissions target 2070," said Hisashi Takeuchi, MD & CEO of Maruti Suzuki India Limited. The company aims to increase vehicle dispatches through railways to 35% by fiscal year 2030-31.

Maruti Suzuki has dispatched 2.5 million vehicles through railways since fiscal year 2014-15. This is the company's second GatiShakti in-plant terminal after its Gujarat facility.

The HORC project connects Sonipat to Palwal via Kharkhoda, Patli, Manesar, and Sohna. HORCL is a joint venture between Haryana Rail Infrastructure Development Corporation Limited (55.4%), Haryana State Industrial & Infrastructure Development Corporation Limited (19%), Maruti Suzuki (13%), All Cargo Logistics (7.6%), and Gurugram Metropolitan Development Authority (5%).

The total project cost is estimated at Rs 117,091 million, with construction planned over five to six years. The first phase includes a 5.7-kilometer track connecting Patli to Manesar station and an additional 1.2-kilometer track to the Maruti facility boundary.

Nitin Gadkari Lays Foundation Stone for India's First Automobile Design School

Arunima Pal — Tue, 17 Jun 2025 13:32:39

Union Minister for Road Transport and Highways Nitin Gadkari virtually laid the foundation stone for the Indian School for Design of Automobiles (INDEA) at XLRI Delhi-NCR campus. INDEA will be India's first institution focused exclusively on automobile design and management.

INDEA operates under XLRI's Centre for Automobile Design & Management (XADM) and is led by Avik Chattopadhyay, the institute's founder and XADM chairperson. The school aims to train automotive designers capable of meeting both global standards and local requirements.

The foundation pillar, named "Param," was designed by installation artist Vibhor Sogani. The steel structure serves as the symbolic centerpiece of the institution.

Speaking at the event, Gadkari emphasized the automobile sector's importance for economic growth and employment generation. "India's automobile sector holds the key to economic growth, employment generation, and global competitiveness," he said. "I am confident that the young talent trained at INDEA will become catalysts for change."

The minister noted the industry's shift from cost-driven to quality-focused approaches, emphasizing design, safety, and sustainability.

Fr. Dr. K.S. Casimir, Director of XLRI Delhi-NCR, described the ceremony as a step toward creating an institute that combines design thinking with technical skills and industry alignment.

Chattopadhyay stated that INDEA aims to function as more than an educational institute, positioning itself as a driver of India's design capabilities.

The ceremony was held at the XLRI Delhi-NCR campus and attended by industry leaders, government officials, and academic representatives. The event highlighted the role of design in India's automotive sector transformation.

INDEA will offer a master's program for graduates in automobile and transportation design. The curriculum focuses on hands-on training in design, prototyping, and design management, aligned with the Make in India initiative.

The school operates from XLRI's Delhi-NCR campus and plans to establish partnerships with industry players to support India's automotive design development.