India’s automotive industry is one of the largest globally, contributing approximately $240 billion in 2025 to the nation’s GDP and employment. Urbanization, government initiatives, and rising incomes have all contributed to the sector’s strong growth.
Navigating such developments presents challenges for businesses, including growing cost constraints and risks associated with expansion. Nexdigm uses its Market Assessment tools and methodologies to provide in-depth industry insights as it evaluates key elements shaping the Indian automotive market.
Challenges Faced by Market Players due to Rising Costs in the Industry
Raw material price hikes (steel, semiconductors) force OEMs to cover higher costs. Nexdigm provides strategic insights and alternative sourcing strategies to manage these pressures.
Shift to EVs requires significant R&D and production line adjustments. Nexdigm offers regulatory guidance, helps integrate new technologies, and manages compliance costs.
Supply chain disruptions, particularly in semiconductors, impact production and component costs. Nexdigm’s optimization services identify bottlenecks, streamline operations, and reduce costs to improve efficiency.
How Nexdigm is tackling Expansion Risks in the Industry
Nexdigm provides automakers with a comprehensive method to identify risks related to market expansion using its extensive Market Assessment tools. One primary challenge it addresses is market saturation. By offering in-depth insights into emerging trends, Nexdigm helps businesses remain competitive, enabling them to adapt and find new growth opportunities.
With its regulatory expertise, Nexdigm guides businesses through shifting tax laws and EV incentives, which directly impact consumer demand. In 2025, EV adoption in India rose by 18% year-over-year. Nexdigm’s market entry services help businesses understand competitive dynamics, particularly as EV-focused entrants intensify. In FY25, India’s EV shipments exceeded 150,000 units.
Nexdigm also identifies critical infrastructure gaps in production and EV charging networks, offering solutions to overcome limitations, as India has only about 12,000 charging stations. Finally, Nexdigm supports companies in adapting to external macroeconomic and geopolitical risks, ensuring resilience in a volatile environment.
Nexdigm’s Step-by-Step Technique
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Market Saturation
Provide insights into emerging trends to help businesses find new growth prospects, ensuring continued competitiveness.
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Regulatory Guidance
Advice on tax laws and EV incentives, ensuring businesses adapt to shifts that affect consumer demand.
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Competitive Dynamics
Use market entry services to help businesses understand the rise of EV entrants and refine strategies.
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Infrastructure Gaps
Identify and address production and charging network constraints, supporting the expansion of EV infrastructure.
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Risk Management
Assist companies in preparing for macroeconomic and geopolitical uncertainties, ensuring resilience in changing global markets.
Nexdigm Case
An automotive firm entered India’s automotive market in 2025 when passenger vehicle growth was moderating at a modest rate, and EV adoption was rising sharply. Nexdigm’s Market Assessment tools identified regulatory shifts in EV incentives and tax policies, allowing the firm to refine its pricing and compliance strategies. We also highlighted infrastructure gaps, noting that the national network of charging points limited EV penetration, and advised on regional production hubs. Through targeted competitive analysis and regulatory support, the firm exceeded its revenue target, captured a notable market share in its segment, and established a scalable platform for continued growth.
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Harsh Mittal
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