· Electronics & Manufacturing · Source: economictimes.indiatimes.com

Auto industry faces ₹25,000 crore profit hit in FY26 due to end-of-life vehicle rules

India’s automobile sector is expected to face a ₹25,000 crore hit in FY26 profits due to the Environment Protection (End-of-Life Vehicles) Rules 2025. The rules trigger mandatory financial provisioning under accounting norms for past vehicle sales, significantly impacting automakers’ balance sheets. Industry body Society of Indian Automobile Manufacturers has raised concerns over the financial burden, warning it could constrain investments in new technologies and future growth plans across the sector.

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