FORCE INDIA MERCEDES

ET Industry Changemakers Awards North 2026: Celebrating Visionaries Who Are Shaping Tomorrow

Not-so smooth ride: Auto industry faces cost squeeze as steel, freight prices surge, more hikes likely

The Indian automobile industry is currently grappling with rising input and freight costs due to geopolitical uncertainties. Prices of key commodities like HR steel and aluminum have surged significantly over the past year. Major car manufacturers have already implemented multiple price hikes and are considering more after the festive season. Despite these challenges, overall auto sales have recorded strong growth in the first half of this fiscal year.

From luxury cars to watches: Why India’s wealthy are spending more on ultra-premium products

India’s luxury market is shifting from traditional status symbols towards products that offer craftsmanship, exclusivity, heritage and individuality. The trend is visible in cars and high-end watches, with luxury and premium watches accounting for 70% of sales in FY25, up from 48% in FY20. Younger affluent consumers and buyers from smaller cities are also driving demand, while limited-edition and niche products are gaining appeal as consumers increasingly seek distinctive purchases beyond brand recognition.