How Global Automakers Can Thrive in India's Hyper-Competitive Market
In India, cars are much more than merely machines. They mark independence, progress, ambition. And as the world's third-largest auto market races toward a new era of electric mobility, connected vehicles, and sustainability-first thinking, one truth is becoming clearer than ever - if you're not agile and visible, you're not relevant!
For global automotive brands, India has now become a proving ground. A place where innovation meets diversity, and where growth is exponential, but never guaranteed. The question is no longer whether to invest in India. It's how fast you can adapt to claim your space.
The Market That Never Waits
India's auto industry is a $240 billion force, contributing 7% to the GDP and employing millions. It's growing, shifting, and surging ahead, even as challenges mount. Consumer sentiment may waver. Climate pressures and regulatory complexities may rise. But India keeps powering ahead.
The Indian consumer is evolving. More aware. More connected. More value-driven. They want safer cars, cleaner engines, and smarter tech, but at an aggressive price point. If you can't meet their evolving needs, someone else will. In fact, many already are.
From Factories to Future: Why Localized Strategy Wins
Last year alone, India rolled out around 5 million vehicles, emerging as a global manufacturing powerhouse. EV production is booming. Exports are rising. Government initiatives like '
Make in India
' and PLI schemes are opening doors that didn't exist five years ago.
Manufacturing scale is only one side of the coin. It's equally important to understand India's emotional, cultural, and economic fabric. Winning here isn't just about what you make. It's about how well you fit.
Look at the runaway success of sub-4 meter cars. They're compact, well packaged and tax-efficient, a uniquely Indian category born from local constraints and local genius. Global brands that overlook these nuances miss the real opportunity.
Don't Just Build—Belong
India doesn't need more car models. It needs better experiences. Customers today are no longer impressed by badge value alone. They expect world-class safety, tech that simplifies life, and designs that reflect their aspirations. And they want it all without feeling priced out.
This is your opportunity to go beyond specs and create loyalty that lasts. To build not just vehicles, but experiences that connect emotionally. Because here, relationships matter. And trust takes time, but pays in permanence.
Stay Ahead, or Fall Behind
Upcoming regulations like the End-of-Life Vehicles Rules 2025 are reshaping the landscape faster than ever. Brands will be expected to track recyclability, report environmental impact, and take responsibility beyond the sale. Those who prepare now will lead. Those who wait, risk losing market access entirely.
Being regulatory-ready isn't just about ticking boxes. It's about future-proofing your reputation and reinforcing brand integrity in one of the world's most scrutinized, price-sensitive markets.
What Comes Next? A Choice
India is urbanizing fast. The middle class is expanding. Demand for premium and luxury vehicles is growing, but so is the competition. With both local disruptors and global challengers fighting for share, the brands that thrive will be the ones who listen better, move faster, and stand taller, not by shouting louder, but by staying relentlessly relevant.
Adaptation isn't optional. Agility is everything.
And now is the time to act.
If you're a global automaker looking to cut through the noise, now's your moment to align your global ambitions with local insight. To invest in relevance. To lead with empathy, efficiency, and innovation.
Because in India's fast-moving auto market, visibility isn't just a marketing metric. It's survival.
(The author is the Executive Director – Sales, Marketing and Digital, Škoda Auto Volkswagen India and a speaker at the ET Brand Equity Brand World Summit 2025. Opinions are personal.)
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