India’s automotive industry closed November on a high-energy note, shaped by three major currents that dominated policy, technology and product conversations. At the policy level, the government cleared a ₹7,280-crore scheme to build domestic capacity for rare-earth permanent magnets–an essential EV component and a longstanding chokepoint in India’s electrification journey. The move signals the clearest push yet to reduce dependence on China in a segment that powers everything from motors and steering systems to defence hardware and consumer electronics.
At the same time, India’s biggest automakers mounted a unified resistance against a proposed weight-based relaxation in Corporate Average Fuel Efficiency (CAFE) regulations for small cars–arguing that the 909-kg concession would distort competition, undermine EV investments, and benefit only one OEM. Their opposition marks a rare industry alignment on fuel-efficiency policy and sets up a crucial regulatory debate in the coming weeks.
Across the product battlefield, the week belonged to big-ticket launches and strategic firepower. Mahindra lit up the EV conversation with the debut of the XEV 9S, and a ramp-up of EV capacity to 8,000 units a month by March 2026. Tata Motors, meanwhile, attempted to redraw the mid-size SUV order with the reborn Sierra, targeting a 20-25% SUV market share. Bajaj Auto advanced its three-wheeler narrative with fresh market entries and insights into the L5 shift that is reshaping e-rickshaw demand. Stellantis doubled down on a “demand-led” India strategy, while suppliers and tech players added new layers to a week packed with signals about where India’s mobility market is heading next.
Here’s the detailed round-up of all major developments from this week:
India Approves Rs 7280 crore Plan to Make Magnets for EVs. Here’s Why It Matters.
The Central government approved a key initiative designed to bolster India’s manufacturing prowess in materials crucial for automotive and other industries. The Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets has been sanctioned with a financial outlay of Rs 7,280 crore, signaling a major push toward self-reliance in a component vital to the global shift toward electrification.
The primary goal of this first-of-its-kind scheme is to establish a domestic production capacity of 6,000 Metric Tons per Annum (MTPA) for integrated Rare Earth Permanent Magnets (REPMs).
India’s Top Automakers Oppose Weight-Based Emission Relief for Small Cars
India’s leading automakers including Tata Motors, Hyundai, Mahindra & Mahindra, and JSW MG Motor are urging the government to eliminate a weight-based emission concession for small cars under proposed fuel efficiency regulations, arguing the move would benefit only one company while undermining the country’s electric vehicle objectives, according to news reports.
The controversy centers on India’s draft Corporate Average Fuel Efficiency norms, which propose tightening average carbon dioxide emissions to 91.7 grams per kilometer from the current 113 grams/km target. The government’s latest draft includes leniency for petrol cars weighing 909 kilograms or less, measuring under four meters in length and with engine capacity of 1,200 cubic centimeters or below, citing their “limited potential for efficiency improvements.”
Velusamy Positions XEV 9S as Mahindra’s Answer to India’s Demand for Big EVs
Mahindra is preparing to scale up its electric SUV portfolio with a sharper focus on India’s growing appetite for large, spacious EVs. The company launched its all-new XEV 9S on Thursday, aimed at prospective buyers who want it all.
Speaking to the media at the launch conference, R Velusamy, President of Automotive Business at Mahindra & Mahindra, said the company’s upcoming XEV 9S architecture is being shaped directly by customer behaviour, real-world usage data, and the cultural meaning of “big vehicles” in India
Mahindra Ramps Up EV Capacity to 8,000/Month as It Eyes 3X Penetration by 2028
Mahindra & Mahindra plans to raise its electric vehicle operating capacity from the current 5,000 units a month to 8,000 units a month by March 2026, following the addition of the new XEV 9S to its line-up. The company is currently producing 4,000–5,000 units a month.
Rajesh Jejurikar, Executive Director, Mahindra & Mahindra, said capacity expansion is being aligned with projected demand and ecosystem readiness. “We will keep operating capacity at about 8,000 a month by March,” Jejurikar said. “Our focus is to make sure the supply chain, vendor ecosystem, and workforce are prepared to run consistently at that level.”
Mahindra Launches Ultra-Fast EV Charging Network Across India
Jejurikar Says Mahindra’s De-Risking Measures Have Shielded Volumes Amid Supply Chain Volatility
Mahindra & Mahindra’s multi-pronged de-risking strategy has helped the company maintain production volumes despite ongoing global and domestic supply chain uncertainties, Executive Director Rajesh Jejurikar said. He noted that the company has acted on multiple fronts to diversify sourcing and build buffers for critical components.
“We have put in place multiple de-risking and mitigation actions to insulate ourselves from supply chain disruptions,” Jejurikar said. “And the outcome is visible — we have not lost any volume over the last several quarters.”
Mahindra Introduces Racing-Inspired BE 6 Formula E Edition at ₹23.69 Lakh
Sierra Will Help Us Achieve 20-25% Market Share of the SUV Segment: Tata Motors’ Shailesh Chandra
Tata Motors is betting big on the reborn Sierra, positioning it as the brand’s next major growth engine in the SUV space. With SUVs already accounting for a bulk of the company’s passenger vehicle sales, Tata Motors Passenger Vehicles MD & CEO Shailesh Chandra believes the Sierra can push the company into a new league. “We are today 16-17% market share in SUVs. With Sierra we feel confident that we will now be somewhere between 20-25% market share. It should really help us plug the gap that we had in our portfolio,” he said.
Chandra expects this car to add significant volumes for Tata Motors. The Sierra enters a fiercely competitive segment dominated by the Hyundai Creta and Kia Seltos. But he is confident that the new model will carve out a strong space for itself. “The Sierra will be the most compelling value proposition and therefore it should drive good volumes and not only take a part of the share of the current mid SUV segment which is about 40-45,000 per month,” he said.
Tata Motors Launches Sierra at Starting Price of Rs 11.49 lakh
How Tata Motors Balanced Nostalgia and Modernity While Redesigning the New Sierra
When Tata Motors decided to revive the Sierra, one of its most iconic badges from the 1990s, the challenge was not merely technical. It was emotional, cultural, and symbolic. For the design team, the task was to bring back a car that had lived on bedroom posters and in childhood memories, but also reimagine it for a generation that had never seen the original on Indian roads.
“It was difficult because you have to find the right balance between nostalgia and a modern interpretation,” said Martin Uhlarik, Chief Design Officer at Tata Motors and Executive Director of Tata Motors Design and Tech Centre. “People who remember the original should be able to see it in the new car. But at the same time, we want it to appeal to an entirely new audience.”
The New Sierra: An A-to-Z Deep Dive
Tata Motors Eyes Sierra Family Beyond First Launch
Tata Motors is considering a multi-model family under the Sierra brand to extend its presence in the mid-size SUV space, leveraging the flexibility of its new Argos architecture. The company has positioned the Sierra, due for market entry in 2026, as the first model in what could become a wider portfolio rather than a standalone product revival.
Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles Ltd, said the Sierra has been engineered with the scope for future extensions. “Retro only in the sense that you have taken cues to pass on the DNA of the silhouette. Otherwise, this is a very modern product,” he said, indicating that the design fundamentals are intended to support additional silhouettes.
Sierra Stakes its Claim for Top-Two in India’s Mid-Size SUV Market
Stellantis’ Future Investments in India to be Demand-led, Says CEO Hazela
Stellantis has invested nearly ₹11,000 crore in India operations so far and will deploy additional capital in line with market demand, Managing Director and CEO Shailesh Hazela said, outlining the automaker’s long-term commitment to manufacturing, engineering and exports from the country.
“We have invested close to ₹11,000 crore in our journey in India, and we will keep investing as we go,” Hazela said. “For Stellantis, investments are not capex-driven; they are demand-driven. As soon as we have the requirement, we invest.”
How Stellantis Is Using AI to Build Cars Faster and Smarter
Stellantis is stepping up its use of artificial intelligence across the vehicle development cycle, with the company’s Bengaluru Technology Centre becoming a critical base for engineering transformation and next-generation customer experience. A senior official at the centre said the company views AI as a catalyst that multiplies the effectiveness of skilled engineers rather than replacing human expertise.
The executive said Stellantis is pursuing two distinct but connected AI tracks. The first focuses on customer experience, anchored by its in-car AI assistant. The second applies AI to engineering and product development, where tools are being deployed across simulation, design, validation and optimisation.
Karnataka High Court Rules in Favour of Boman Irani in YEZDI Trademark Dispute
The Karnataka High Court’s Division Bench has ruled in favour of Boman Irani, co-founder of Classic Legends, affirming his ownership of the YEZDI motorcycle trademark. The judgment, delivered on 27 November 2025, overturns an earlier Single Judge ruling and marks a significant development in India’s intellectual property rights landscape.
The court observed that Ideal Jawa, the previous manufacturer, had abandoned the trademark after ceasing production in 1996 and entering liquidation in 2001. The company failed to renew trademark registrations and made no efforts to protect the brand for over 15 years, leading the court to conclude that any associated goodwill had been extinguished.
Why India’s E-Rickshaw Boom Hit the Brakes: The L5 Upgrade Effect
India’s fast-evolving three-wheeler (3W) market, which serves as the backbone of last-mile connectivity, is experiencing a surprising stagnation in its most basic electric segment. While the overall industry has nearly doubled in size over the past six to seven years, driven largely by new electric entrants, the explosive growth of the entry-level electric rickshaw (e-rickshaw) category has recently slowed down over the past 3–4 quarters.
Samardeep Subandh, President of the Intra-City Business Unit at Bajaj Auto Ltd., an industry leader long dominant in the three-wheeler ecosystem, pointed to a slowdown that reflects a significant shift in driver preferences and competition dynamics.
Bajaj Auto Enters E-Rickshaw Market with Riki Launch
Youdha Targets 30% Aftermarket Revenue with L5 EV Expansion Plan
Youdha, the electric mobility division of Lohia Global Group, has unveiled plans to significantly expand its after-sales infrastructure and dealer network as it seeks to strengthen its foothold in India’s L5 commercial electric vehicle segment.
The company aims to increase its aftermarket revenue share from the current 10-12% to approximately 30% over the next two years, targeting the rapidly expanding electric auto and cargo loader market where more than 1.3 million vehicles are currently operational across India.
Volvo Construction Equipment to Build New Crawler Excavator Plant in Sweden
Volvo Construction Equipment has announced plans to establish a new crawler excavator assembly plant in Eskilstuna, Sweden, as part of its strategy to strengthen its position in the excavator segment across Europe.
The 30,000 square meter facility represents a 700 million SEK investment and will be capable of producing up to 3,500 machines annually. The plant will manufacture both electric and internal combustion engine models in medium and large size classes ranging from 14 to 50 tonnes.
myTVS Targets 30-40% Annual Growth, Poised to Turn PBT Positive
Automotive service provider myTVS expects to close the current financial year with revenues of about ₹2,100 crore and aims to sustain annual growth of 30-40% over the next few years, Managing Director G. Srinivasa Raghavan said. The company has grown at a CAGR of 35-40% in the last four years and is “fairly confident” of maintaining the momentum.
Raghavan said myTVS has turned EBITDA-profitable within five years of its digital platform launch, making it “one of the fastest digital mobility platforms” to achieve this milestone. He added that the company expects to turn profit-before-tax positive in the next few quarters.
Auto Retail Demand Stays Firm After Festive Peak; Two-wheelers Up 38%, PVs Up 31%
India’s auto retail market continued to hold firm after the festive season, with two-wheelers and passenger vehicles posting strong year-on-year gains in the weeks following Diwali. Vahan data for the period from November 11-27 shows that two-wheeler registrations rose 38% and passenger vehicle registrations grew 31% compared with the post-festive period from November 22 to December 8 in 2024.
The sustained momentum comes after a record high in October, with overall retail sales surging 40.5% year-on-year to an all-time high of 40.2 lakh units.
EV Sales Cross the 2 million Mark for the First Time
India EV Inc has registered and surpassed the two million sales mark number. At the end of October 2025, the industry needed to deliver 151,444 EVs across all four EV segments to cross the 2 million-units mark. That came through in the last week of this month.
Between January 1 and November 25, as per the data on the government of India’s Vahan portal which tracks new vehicle registrations across the country, India EV Inc has delivered a total of 2.02 million zero-emission vehicles to buyers. With this stellar performance, the domestic EV industry has scaled a new high for annual sales, charging past CY2024’s 1.95 million units
Insights & Interpretation
How AI and Edge Computing Are Transforming Road Safety and Fleet Performance in India
India’s road-safety reality is unambiguous and, for commercial fleets, it’s impossible to ignore. In the calendar year 2023, the country recorded 4,80,583 crashes, 1,72,890 deaths, and 4,62,825 injuries, roughly 55 crashes and 20 lives lost every hour. Viewed over time, fatalities have hovered above 1.5 lakh annually since 2018. These are not just public safety figures; they translate into daily operating risk for logistics networks that keep the economy moving. The human toll is immense, and the business fallout, ranging from insurance claims and operational downtime to unpredictable delivery performance, is just as significant.
The traditional response to risk in fleet technology was centered around efficiency and security. Mainly, telematics were used for tracking, monitoring, and surveillance, which was a reactive and often punitive approach focused on the asset.
That is now shifting as AI and edge computing are moving safety from “after the fact” to “in the moment” and, equally important, transitioning from surveillance to support. The aim is clear and straightforward. It is to reduce incidents, enable better decisions and cultivate higher trust.
Indian founders on Budget 2026: Powering the next EV growth wave
India’s electric vehicle (EV) market has experienced explosive growth, with sales surpassing over 2 million units in the last fiscal year and passenger EV sales nearly doubling within six months in 2025. This surge highlights a nation rapidly embracing electric mobility, driven by technological maturity, expanding infrastructure, and increasing policy support. The market now represents around 5% of total passenger vehicle sales, nearly doubling from the previous year, an important milestone on the journey to achieve a 30% EV market share by 2030.
This transformation is not just about numbers, but about the lived experiences of entrepreneurs and innovators who build and operate within this ecosystem daily. The opportunity presented by Budget 2026 is critical; it could serve as a springboard to propel India beyond early adoption phases and into robust ecosystem acceleration.