If 2025 was the year India’s auto market remembered how quickly sentiment can swing, this week was the one that tried to institutionalise that swing. Budget 2026–27 leaned hard into the plumbing of an industrial upcycle – chips, clean freight, critical minerals, MSME liquidity, carbon capture – while keeping the EV flywheel alive through targeted duty and scheme support. In parallel, the India-EU FTA landed like a thunderclap in a market that loves “localisation” right up to the moment it meets a price tag.
And then came the numbers. January dispatches across multiple OEMs suggested the post-GST surge didn’t end with the festive quarter, it carried into the year’s first month with a kind of calm confidence: less panic buying, more this is the new baseline. Put together, it was a week that asked a bigger question than what sold: what kind of auto economy is India designing for 2026, and who is best positioned to ride it?
Here’s the detailed round-up of all major developments from this week:
Budget 2026‑27
India Lines Up Semiconductor Mission 2.0 to Push Deeper Into Chip Value Chain
In a bid to be self-reliant in critical components and parts, India will launch the India Semiconductor Mission (ISM) 2.0, as the government looks to move beyond initial chip manufacturing into equipment, materials, and intellectual property, Finance Minister Nirmala Sitharaman said in her Budget 2026–27 speech.
The new phase intends to build on Semiconductor Mission 1.0, which helped kickstart India’s presence in chip fabrication and packaging. ISM 2.0 will now expand to include locally produced semiconductor equipment and materials, the development of full-stack Indian chip IP, and the strengthening of supply chains that have been strained globally in recent years.
Government Targets Industry 4.0 Push Through Electronics Manufacturing Support
Govt Offers Tax Holiday Till 2047 to Global Cloud Firms
India to Create Rare Earth Corridors in Four States to Secure Critical Minerals
As India aggressively pushes toward zero-emission electric vehicles, the country aims to build its own rare-earth reserves and move toward self-reliance. The country will set up dedicated Rare-Earth corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu as part of a renewed push to secure critical minerals essential for high-technology manufacturing, Finance Minister Nirmala Sitharaman said in the Union Budget for 2026–27.
Govt Extends Customs Duty Exemption for Capital Goods Used for Li‑Ion Cell Manufacturing
The government has proposed to extend basic customs duty (BCD) exemption on capital goods used for manufacturing lithium-ion cells as part of its push to strengthen India’s clean energy and energy security goals.
Announcing the proposal in the Union Budget on Sunday, Finance Minister Nirmala Sitharaman said the move is aimed at supporting the country’s energy transition while reducing dependence on imports.
India to Build New Dedicated Freight Corridor Linking Dankuni and Surat
The government will develop a new dedicated freight corridor connecting Dankuni in eastern India to Surat in the west, as part of a wider push to make cargo movement cleaner, faster, and more cost-efficient, Finance Minister Nirmala Sitharaman said while presenting the Union Budget for 2026–27.
The proposed corridor aims to shift a larger share of freight to more sustainable transport modes, easing pressure on congested road and rail networks and lowering logistics costs for industry. Sitharaman said the corridor would complement ongoing investments in rail, inland waterways, and coastal shipping to create a more integrated freight transport ecosystem.
Rs 10,000 Cr SME Fund, ₹7 Lakh Cr Liquidity Push to Aid Automobile MSMEs
From small auto-component makers in Tier II towns to emerging EV suppliers, automobile MSMEs are expected to benefit from a fresh mix of equity funding, faster liquidity and compliance support as broader SME-focused policy measures take shape.
Automobile MSMEs form the backbone of India’s vehicle manufacturing supply chain, accounting for a large share of suppliers producing castings, forgings, stampings, wiring harnesses, plastics and electronics. While demand from OEMs has remained steady, many smaller suppliers continue to face challenges around access to growth capital, elongated payment cycles and rising regulatory requirements.
India’s Rs 20,000 Crore Bet on Factory Emission Traps
Finance Minister Nirmala Sitharaman unveiled a RS 20,000 crore five-year plan for carbon capture, utilization, and storage (CCUS) technologies in the Union Budget 2026-27, targeting emissions from factories that power India’s economy, including automotive manufacturing.
The announcement will be applicable on five industries including power, steel, cement, refineries, and chemicals.
Govt Announces New Scheme for CE Manufacturing
Announcing the Budget 2026-2027 speech, Finance Minister Nirmala Sitharaman introduced a new Scheme for Enhancement of Construction and Infrastructure Equipment (CIE), which will help in the industry moving closer towards self reliance. An amount of Rs 200 crore has been proposed for the scheme for 2026-2027.
Allocation estimates for PLI Auto at Rs 5,940 crore
The Union Budget for 2026-27 (FY27) has allocated Rs 5,940 crore for the Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components under the Ministry of Heavy Industries, double the allocation from FY26. The Rs 25,938-crore output-linked incentive scheme was launched in 2021 and will run till March 31, 2028 (FY28).
Budget documents show that in FY25, the scheme had an allocation of Rs 325 crore. The budget estimate for FY26 was pegged at Rs 2,819 crore, while the actual estimate for the year stood at Rs 2,091 crore. The allocation for FY27 marks a sharp increase over earlier years, reflecting a gradual ramp-up in incentive payouts as projects under the scheme move into advanced stages of production.
Allocation estimate for PM E-Drive Scheme at Rs 1,500 Cr
The Union Budget for 2026-27 (FY27) has allocated Rs 1,500 crore for the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme under the Ministry of Heavy Industries, which has been a key driver of electric vehicle demand in the country.
Budget documents show that the allocation for the PM E-Drive scheme stood at Rs 993 crore in FY25. In FY26, the budget estimate was set at Rs 4,000 crore, but this was revised down to Rs 1,300 crore.
Budget Slashes Excise Burden on Bio-CNG Mix
Finance Minister Nirmala Sitharaman during her Union Budget 2026-27 announcements, declared that when calculating central excise duty on biogas-blended CNG, the entire biogas value will now be excluded, making blended fuel cheaper without the tax drag on its green component.
Biogas, made from farm waste like crop stalks and garbage, mixes with regular CNG to create a low-carbon fuel that is slowly gaining acceptance in automobile. This full exclusions builds on partial relief from 2023, where only the goods and services tax paid on biogas was deducted from excise—not the full amount.
Govt Boosts Infra Capex 9% to Rs 12.2 Lakh Cr, Igniting Demand for Trucks and Earthmovers
India’s Union Budget 2026-27 delivers a major lift for the automotive and construction equipment sectors, with Finance Minister Nirmala Sitharaman hiking capital spending by 9% to Rs 12.2 lakh crore. This surge targets roads, urban projects, and other builds that will drive demand for trucks, excavators, and earthmovers amid economic headwinds.
The budget spotlights a decade of infrastructure work, backed by funds like the National Investment and Infrastructure Fund and the National Bank for Financing Infrastructure and Development. These have fueled highways and bridges, boosting orders for heavy-duty vehicles and construction machines.
Trucks and CVs may gain the most from Budget 2026–27
Union Budget 2026–27 may not have announced a dedicated scheme for trucks or commercial vehicles, but its strong emphasis on infrastructure expansion, freight corridors, waterways and state-backed transport deployment lays the foundation for sustained demand across the commercial vehicle ecosystem.
Presenting the Budget, Finance Minister Nirmala Sitharaman underlined the government’s continued reliance on infrastructure-led growth. “Public capex has increased manifold from ₹2 lakh crore in FY2014–15 to an allocation of ₹11.2 lakh crore in BE 2025–26. In FY2026–27, I propose to increase it to ₹12.2 lakh crore to continue the momentum,” she said.
Formalises Gig Workforce With ID Cards and Health Cover, Key to Urban Mobility
Sitharaman Proposes 4,000 E-Buses for East India Industrial Corridor
Finance Minister Nirmala Sitharaman announced on February 1, 2026, the deployment of 4,000 electric buses across five eastern states as part of a major infrastructure push under the “Purvodaya” initiative in the Union Budget 2026-27. The proposal includes development of an Integrated East Coast Industrial Corridor with Durgapur designated as a primary node, alongside creation of five new tourism destinations in the region to be served by the clean-energy fleet.
Highlights of Union Budget 2026-27
Reactions by major industry bodies and officials to Union Budget 2026-27.
January Sales
Hero MotoCorp January Sales Rise 26% YoY, Led by Scooters, Premium Motorcycles
Hero MotoCorp reported a strong start to 2026, posting a 26% year-on-year rise in wholesale dispatches in January, led by sharp growth in scooters and sustained traction in the motorcycle portfolio.
The country’s largest two-wheeler maker dispatched 557,871 units in January, compared with 442,873 units a year earlier. Retail momentum also remained healthy, with 491,986 vehicles registered on VAHAN, reflecting steady consumer demand across key markets.
TVS Motor Posts 29% YoY Growth in Total January Sales
Royal Enfield January Sales Grow 14%; Dispatch Crosses 1 Million Units in FY27
India’s PV Market Estimated To Have Clocked Record January Sales With 4.5 Lakh Units
India’s passenger vehicle market is estimated to have clocked about 4.5 lakh units in January 2026 wholesales, marking the highest-ever performance in any January, and the second-highest for any month. Record dispatches come on the back of strong retail demand and lean inventory management at dealerships, which helped carry the post-GST cut and festival season momentum into the new calendar year.
Major automakers, including Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Toyota Kirloskar Motor, and Kia India, have officially released their January sales numbers, all reporting year-on-year growth. The largest carmaker, Maruti Suzuki, is yet to release its January dispatch numbers at the time of publishing.
Kia India Reports 10.3% Sales Increase in January 2026
MG Motor India Posts 9% Sales Growth in January 2026
Tata Motors Passenger Vehicles Hits Record Volumes, Despatches Over 70,000 Units in January 2026
Strong demand following the recent GST cut, incremental volumes from the Sierra, and sustained traction for its compact SUV portfolio helped Tata Motors Passenger Vehicles Ltd post another record-high monthly performance in January 2026.
The company sold 71,066 passenger vehicles across domestic and international markets during the month, a 47.1 percent year-on-year increase from 48,316 units in January 2025.
Mahindra Auto Clocks 63,510 SUVs and 104,309 Total Vehicle Sales in January 2026
Hyundai Motor India Limited Signals Comeback Intent with Record Sales in January 2026
Toyota Kirloskar Motor Begins 2026 with 15% Rise in January 2026 Sales
Heavy Truck Demand Fuels 30% Sales Surge for Tata Motors
Tata Motors Limited reported a 29.9% year-on-year increase in commercial vehicle sales for January 2026, a performance driven by a sharp rebound in heavy industrial hauling and a burgeoning international presence. The company, which serves as a primary barometer for industrial activity, moved 41,549 units during the month, compared to 31,988 units in the same period last year.
The most striking growth occurred in the Heavy Commercial Vehicle (HCV) truck segment, which saw sales jump 41.2% to 12,691 units. In the commercial vehicle industry, HCVs, the massive rigs used for long-haul freight and infrastructure projects, are often viewed as leading indicators of macroeconomic health. The surge suggests robust activity in the construction and national logistics sectors.
Ashok Leyland Truck Sales Soar as Bus Demand Softens
Heavy-Duty Gains Mask a Softening Bus Market for Volvo Eicher
Trucks Haul Growth While Buses Lose Steam in January 2026
While the heavy-duty trucks that haul steel and cement are flying off dealer lots, the buses that move the nation’s workforce and students have suddenly hit a speed bump.
Fresh sales data for January 2026 reveals a cooling trend in the passenger carrier segment, marking a sharp departure from the breakneck growth seen over the last two years. This slowdown comes even as the broader automotive industry continues to capitalize on a robust economy and aggressive infrastructure spending.
SML Mahindra Records 30% Sales Growth in January 2026 Amid Broader Market Softness
Mahindra Farm Equipment Posts 46% Domestic Growth, Sells 38,484 Tractors in January 2026
Mahindra & Mahindra’s Farm Equipment Business (FEB) reported a 46% increase in domestic tractor sales for January 2026, moving 38,484 units compared to 26,305 units during the same month last year.
While passenger vehicle sales are often dictated by urban consumer sentiment and interest rates, tractor demand serves as a primary indicator of the health of the rural economy.
Total tractor sales (domestic + exports) during January 2026 were at 40,643 units, as against 27,557 units for the same period last year. Exports for the month stood at 2,159 units, which was a growth of 72%.
Other Highlights From The Week
India Signs FTA with European Union: Import duty on Motor Vehicles Slashed to 10%
India and the European Union concluded free trade agreement talks on Tuesday, marking the largest and most ambitious trade deal signed by either side. This FTA will see a gradual reduction in import duty on motor vehicles from the EU to India to 10% from the current 110% over a period of time, subject to a quota of 250,000 vehicles a year.
Duties on car parts will be phased out over five to ten years, according to the FTA documents. At present, India levies a 70% duty on imported cars priced below $40,000, and those priced above $40,000 are taxed at 110%.
Auto Industry Reacts To India-EU FTA
India-EU Trade Pact Opens Door for Luxury Automakers
Mercedes CEO Says Company Will Continue to Grow and Invest in India; Backs India–EU FTA
Mercedes-Benz is “absolutely convinced” about the scale of its future in India and will continue to grow and invest in the country, group chief executive officer Ola Kallenius said. The comments come amid a landmark India–EU trade deal that could potentially open up the biggest trading zone in the world.
Speaking on the sidelines of the launch of the new Mercedes-Benz S-Class, Kallenius told Autocar India he was “absolutely convinced” that Mercedes-Benz’s future in India would be significantly bigger, reflecting the company’s long-term confidence in the market.
“India is a growth market, so whatever happens, we are going to grow and continue to invest in the country.”
India–EU FTA to Create World’s Largest Free Trade Zone, Says Mercedes-Benz India’s Santosh Iyer
Luxury Car Prices to Rise Despite India–EU FTA, but Pact to Act as Cost Buffer, Says Mercedes-Benz India MD
Luxury car prices in India are expected to continue rising in the near term, despite the conclusion of the India–European Union Free Trade Agreement (FTA), as currency headwinds remain a significant cost driver.
The historic pact will drive the economic movement, but at best it will act as a buffer against sharper price increases in the mainstream luxury car market, according to Santosh Iyer, Managing Director and CEO of Mercedes-Benz India.
India-EU FTA Impact on Automotive Sector Likely Limited, Analysts Say
Jeep Announces Strategic Plan 2.0 to Strengthen India Operations
Jeep announced Strategic Plan Jeep 2.0 on January 30, a strategy focused on brand heritage, capability and desirability in the Asia Pacific region with India at its center, aimed at boosting product momentum and enhancing the ownership experience through deeper localization, expanded exports, and improved aftersales support.
The plan includes targeting 90% localization at the Ranjangaon manufacturing facility, up from the current 65-70%, to strengthen cost competitiveness and supply-chain resilience. The facility has an installed capacity of 160,000 vehicles annually.
Bentley Unveils High-Performance Continental GT S and GTC S Models
Renault Eyes Aggressive Product Push With New Models Every Year
French automaker Renault is looking at a fundamental reset in its strategy for India business with plans to bring new products every year, as the brand believes speed of new product development and launches are critical to remain competitive in India.
“When you are in India, the first lesson you have to learn is the speed. That is why what we decided to do is to increase the speed at which we are developing our car…It is important to be present [with new models] not only every two years, but every year, with new models is very important,” Renault brand CEO and Chief Growth Officer Fabrice Cambolive told Autocar Professional.
Renault Brings Back Iconic Duster SUV with Strong Hybrid, Turbo Engine
Renault Targets India Market Share Recovery to 3-5% by 2030
On the back of accelerated product development and faster product launches, French automaker Renault is targeting to regain its market share in India’s passenger vehicle market, with an eye on a 3-5% share in the world’s fastest-growing market by the end of this decade.
“Our objective now is to gain traction in terms of renewals. I would say that between a 3% and 5% of the market should be a good target for us. I would say this is not a target in itself, but rather a result of doing our job well,” Renault brand CEO and Chief Growth Officer Fabrice Cambolive told Autocar Professional.
Volkswagen India Announces Five Product Launches for 2026
Volkswagen India has unveiled an aggressive product strategy for 2026, announcing five product interventions scheduled across all four quarters of the year. The German automaker revealed its first offering, the Tayron R-Line, while confirming four additional launches designed to maintain market momentum and customer engagement throughout the calendar year.
The company’s 2026 lineup will span multiple body styles, including SUVs, sedans, and hatchbacks, each targeting distinct premium customer segments. This multi-pronged approach represents Volkswagen’s commitment to maintaining relevance in India’s competitive automotive market.
India–EU FTA to Boost Export Opportunities: Skoda Auto Volkswagen India CEO Piyush Arora
In this in-depth conversation, Piyush Arora, Managing Director & CEO, Skoda Auto Volkswagen India, lays out how India has evolved from a localisation-led market to a core pillar of the group’s global strategy.
From the success of India 2.0 and the role of Kylaq in expanding the addressable market, to exports, EVs, software-defined vehicles and AI, Arora explains what’s next for the Group in one of its most critical markets.
He also discusses capacity expansion, faster product localisation, the impact of the India–EU FTA and why India will be central to Skoda’s internationalisation plans along with the ambition to cross 5% market share in the medium term.
Auto Sector Grows Exports, Cuts Imports Despite 50% US Tariffs
The Economic Survey 2025-26 has presented a detailed trade performance analysis of Production-Linked Incentive (PLI) sectors, positioning the automobile sector in what appears to be a favorable pattern—positive export growth accompanied by declining imports—which the Survey interprets as indicating “maturing domestic manufacturing capability.”
The Survey, released on January 28, analyzed trade data from FY21-FY25 across all 14 PLI sectors, finding significant variation in how different sectors have performed. The automobile sector’s performance is particularly notable given that exports have grown despite India facing an effective 50% tariff on goods exports to the United States, suggesting genuine competitiveness rather than favorable market access.
Maruti Suzuki Accelerates Expansion to Add 5 Lakh Units Capacity as Post-GST Demand Surges
Maruti Suzuki India, the country’s largest carmaker, is preparing to add nearly 500,000 units of annual manufacturing capacity over the next year across two new plants and a greenfield facility in Gujarat. “The GST reform has not only boosted consumption, but has also accelerated private capex,” said Rahul Bharti, Executive Officer, Corporate Affairs.
Speaking to analysts following the company’s Q3 FY26 earnings, Bharti said Maruti Suzuki’s top management moved quickly to fast-track capacity expansion after the GST reform was announced on August 15, as demand across the passenger vehicle market rebounded far more sharply than anticipated.
Maruti Suzuki Partners with Five Startups for Technology Integration
Maruti Suzuki Says Small Cars Back in ‘Healthy Black’ as First-Time Buyer Share Rises to 47%
India’s largest car maker, Maruti Suzuki India, said the small car segment has returned to “healthy black” growth, reversing an earlier slowdown, even as the carmaker continues to hold prices steady, with the recovery being driven largely by first-time car buyers.
Speaking to analysts after the company’s Q3 FY26 earnings, Rahul Bharti, Executive Officer, Corporate Affairs at Maruti Suzuki India, said the demand for small and compact cars has swung sharply back into positive territory, marking a stronger recovery than seen in larger vehicle segments.
Maruti Suzuki Says Demand Remains Strong in Q4; Supply Constraints Persist
Tata Motors Navigates Trade Headwinds as South Africa Weighs Steep Auto Tariffs
Tata Motors Ltd. is keeping a watchful eye on Pretoria. Just as the Indian automaker celebrated a staggering 70% year-on-year surge in its commercial vehicle (CV) exports, a new geopolitical challenge has emerged on the horizon: a potential overhaul of import taxes in South Africa.
The company, which on Thursday reported its third-quarter financial results for fiscal year 2026, confirmed it is closely tracking signals from South African authorities regarding a review of import tariffs on Indian-made vehicles. Early reports suggest these duties could climb as high as 50%, a move that could significantly alter the cost of doing business in one of Africa’s most developed economies.
Tata Motors Sees Commercial Vehicle Market Hitting New Peak; FY26 Volumes to Cross Million-Unit Mark
Ola Electric to Cut 5% of Workforce in Restructuring
India’s Ola Electric will lay off 5% of its workforce as part of a restructuring effort, the electric scooter manufacturer announced on Friday.
The company said it is “doubling down” on speed and discipline through increased automation across its front-end operations, according to the statement. Ola Electric added that it is building a “leaner organisation” positioned for long-term, profitable growth.
Luminous Power Technologies Launches First Lithium-Ion Battery Assembly Line
Maxvolt Energy Establishes Subsidiary for Lithium Battery Recycling in India
Exide Industries Invests ₹50 Crore in Wholly-Owned Subsidiary for Lithium-Ion Battery Manufacturing
German Auto Supplier Aumovio to Cut Up to 4,000 Jobs Globally
German automotive supplier Aumovio announced plans on Tuesday to eliminate up to 4,000 positions worldwide by year’s end as part of a restructuring of its research and development operations, according to Reuters.
The job cuts will affect employees across six countries: India, Singapore, Romania, Serbia, Germany, and Mexico, Reuters reported, citing a company statement.
Bajaj Auto Lines Up Product Blitz to Rebuild Premium Segment Share
With an aim to regain lost market share, Bajaj Auto is sustaining its new product launch plan in 2026, with eight new motorcycle offerings planned over the next four to five months as part of a wider 15-model product plan spanning 2025 and 2026.
The upcoming launches follow seven product introductions since Diwali, bringing the current product intervention cycle to 15 models. While the broader plan spans multiple brands and includes a mix of refreshes and variants, the company’s primary focus is on rebuilding the Pulsar franchise, which it considers its “core driver” of growth and equity.
Bajaj Auto Sees Steady Two-Wheeler Demand in Coming Months After GST Boost
Bajaj Auto Explores Further Integration Of Ktm Production For Cost Competitiveness
2W Makers Flag Cost Risks from ABS norms, Say Govt Talks Positive
The proposed mandating of anti-lock braking systems (ABS) for all two-wheelers could push up motorcycle prices and potentially weigh on demand, but the two-wheeler industry has had a constructive and ongoing dialogue with the government to balance safety objectives with affordability, Bajaj Auto said.
Speaking to the media after the Q3 FY26 earnings, Rakesh Sharma, Executive Director at Bajaj Auto, said regulatory-led cost increases have historically affected demand, particularly in price-sensitive segments of the motorcycle market.
ASK Automotive Announces ₹35 Crore Capacity Expansion for Advanced Braking Systems
Bajaj Auto EV EBITDA Hits Double Digit as Business Reaches 25% of Revenue
Electric vehicles now account for 25% of Bajaj Auto’s total revenues, with the company’s EV portfolio delivering double-digit EBITDA margins, marking a clear shift from a new business opportunity to a profitable growth engine.
Speaking to the media post the Q3 FY26 earnings, Rakesh Sharma, Executive Director at Bajaj Auto, said the rapid scale-up across electric scooters and electric three-wheelers has fundamentally altered the economics of the business.
Two- and Three-Wheel EVs Key to India’s Clean Mobility Push: Bajaj Auto
TVS Motor Revises FY26 Investment Plan Upwards to Rs 2,900 Crore
TVS Motor Company has revised its total investment guidance for FY26 upwards to around Rs 2,900 crore, from an earlier plan of about Rs 2,000 crore, reflecting stronger-than-expected growth momentum and increased strategic investments across businesses, according to KN Radhakrishnan, CEO and director of the company.
Speaking to analysts after the company’s Q3 FY26 earnings, Radhakrishnan said the higher investment outlay is being driven by stepped-up funding towards TVS Credit Services, Norton Motorcycles, electric mobility initiatives, and international expansion, even as the company continues to invest in capacity enhancement to support rising demand.
TVS Motor Looks at EV Capacity Expansion as Output Inches Towards 5 Lakh Units Annually
TVS Motor Company is reviewing a fresh expansion of its electric two-wheeler manufacturing capacity as rising demand pushes the company closer to an annual EV output of nearly 5 lakh units, according to a senior company official.
Speaking to analysts after the company’s Q3 FY26 earnings, KN Radhakrishnan, CEO and director of TVS Motor Company, said the capacity review is being driven by strong demand for the company’s EV portfolio and easing supply-side constraints.
TVS Motor Sees 2W Industry Growing 15% in Q4, 9% in FY26 with GST Boost, Strong Rabi Output
Yamaha Motor India Announces Organizational Restructuring to Streamline Operations
Yamaha Motor India has announced a strategic restructuring initiative designed to simplify its organizational framework and improve operational efficiency. The company currently operates through four separate entities in India.
Under the new structure, Yamaha Motor India Sales and Yamaha Motor India will be consolidated into India Yamaha Motor. This merger will bring sales, marketing, finance, administrative functions, and manufacturing operations under a single organizational unit. Yamaha Motor Research & Development India will remain a separate entity focused on engineering and product development.
India has got an opportunity to shape the future of mobility: Tata Motors’ Shailesh Chandra
India stands at a defining moment in its mobility and automotive transformation, with the opportunity to influence not just domestic markets but also global pathways, Tata Motors Passenger Vehicles Managing Director and CEO Shailesh Chandra said at the Symposium on International Automotive Technology (SIAT) 2026.
Framing the transition as both an economic and societal responsibility, Chandra said “On one hand, we are rapidly growing as an economy, providing mobility solutions for personal and commercial needs. On the other, many of our towns are struggling with air pollution,” adding that sustainability pressures can no longer be addressed through incremental change.
India’s Energy Sector Holds $500 Billion Investment Potential: PM Modi
Prime Minister Narendra Modi inaugurated India Energy Week 2026 on Tuesday, addressing delegates from nearly 125 countries gathered in Goa to discuss energy security and sustainability.
Speaking at the event, Modi emphasized that India has emerged as a land of immense opportunities for the energy sector, driven by its status as the world’s fastest-growing economy. The Prime Minister noted that rising domestic demand, combined with India’s position among the top five global exporters of petroleum products to over 150 countries, creates substantial opportunities for international partnerships.
Govt to Come up with Compressed Biogas Policy Soon: Hardeep Singh Puri
Amid a strong push to transition to cleaner fuels from fossil fuels and scale up the availability of alternative fuels, the Ministry of Petroleum and Natural Gas will soon come out with a policy to strengthen the Compressed Biogas (CBG) ecosystem, according to Minister Hardeep Singh Puri.
“I just want to share something on the two-day conference on developing the Indian CBG ecosystem. We had convened high-level conferences. The key outcomes are presented and, based on this, my ministry will be coming up with a policy on CBG in a short time frame,” Puri said on Thursday.
India Energy Week 2026: Global Leaders Identify Natural Gas as Key to Emissions Reduction
Why Biofuels, Not EVs, Will Drive India’s Auto Market Growth: Insight from Deputy DG Dr. Ojha
Ethanol, Biogas can Accelerate India’s Clean Mobility Transition, says Maruti Suzuki’s Tarun Aggarwal
Amid a strong push for electric vehicles, ethanol blending and biogas offer India the fastest and most cost-effective pathway to decarbonise mobility while expanding access to personal transport, Tarun Aggarwal, senior executive officer at Maruti Suzuki India, said, arguing that a multi-pathway approach is critical for the country’s journey to net-zero emissions by 2070.
Speaking at SIAT 2026 in Pune, Aggarwal noted that India’s mobility challenge is fundamentally different from that of developed economies, and that factors such as affordability, scale, and energy security will determine the path the country can realistically take.
EKA Mobility and HPCL Sign MoU to Develop Green Mobility Infrastructure
India Eyes Canada’s Mineral Wealth to Power Its Electric Ambitions
India and Canada have formally revived their Ministerial Energy Dialogue, signalling a renewed push to cooperate on critical minerals such as lithium, cobalt and nickel—materials vital for electric vehicle batteries and the broader energy transition. The dialogue was formalised by India’s Minister of Petroleum and Natural Gas Hardeep Singh Puri and Canada’s Minister of Energy and Natural Resources Timothy Hodgson on the sidelines of the fourth edition of India Energy Week in Goa.
The move follows discussions between the Prime Ministers of the two countries at the 2025 G7 Summit and reflects a growing strategic partnership aimed at strengthening and stabilising global energy supply chains. If successful, the cooperation could help ease critical mineral supply constraints for the automotive industry, particularly electric vehicles.
CAFE Norms are Misaligned with India’s Mobility Reality: CAQM member
India’s corporate average fuel efficiency (CAFE) norms are overly car-centric and not aligned with the country’s mobility and air-quality realities, a senior member of the Commission for Air Quality Management (CAQM) said on Wednesday.
“CAFE targets CO₂ (emissions) and fuel efficiency. It is designed for decarbonisation,” Dr Virinder Sharma, Member (Technical) at CAQM, said at the Symposium on International Automotive Technology (SIAT) 2026. “But India’s air-quality problem is fundamentally about PM2.5 exposure, and that is where the gap lies.”
ACMA Automechanika New Delhi 2026 to Showcase India’s USD 80 Billion Component Market
Q3 Earnings Report Card
Maruti Suzuki Posts 29% Revenue Jump in Q3, Net Profit Up 3.7%
Maruti Suzuki India Limited reported net sales of ₹47,534 crore in Q3 FY2025-26, up 29.2% from ₹36,802 crore in Q3 FY2024-25. Net profit for the quarter rose 3.7% to ₹3,794 crore compared to ₹3,659 crore in the year-ago period, despite being impacted by a one-time provision of ₹594 crore related to the New Labour Codes.
The automaker achieved record-breaking quarterly domestic sales of 5.65 lakh units, up 20.9% from 4.67 lakh units in Q3 FY2024-25. Total sales including exports reached an all-time high of 6.68 lakh units, up 17.9% from 5.66 lakh units in the previous year’s third quarter.
Tata Motors Q3 Profit Down 48%; Revenue Up 17%
Tata Motors Limited reported a consolidated net profit of ₹705 crore for the third quarter of fiscal year 2026, compared to a loss of ₹867 crore in the previous quarter (Q2FY26). On a year-on-year basis, however, the profit declined 48% from ₹1,355 crore in Q3FY25, impacted by exceptional items totaling ₹1,647 crore related to labor code implementation, demerger expenses, and acquisition costs.
The commercial vehicles segment reported revenue of ₹21,533 crore for Q3FY26, up 17% from ₹18,478 crore in Q3FY25. EBITDA increased 19% to ₹2,732 crore, with margins expanding by 30 basis points to 12.7%, marking the 10th consecutive quarter of double-digit EBITDA margins.
Bajaj Auto Reports 19% Revenue Growth to ₹15,220 Crore in Q3 FY26
Bajaj Auto Limited reported standalone revenue from operations of ₹15,220 crore for the quarter ended December 31, 2025, marking 19% year-on-year growth and the first time the company has exceeded ₹15,000 crore in quarterly revenue. The Pune-based manufacturer recorded volume growth across all business segments, with total unit sales reaching 13,41,252 vehicles.
EBITDA for Q3 FY26 reached ₹3,161 crore, up 22% year-on-year, with margin expanding to 20.8% from 20.2% in the prior-year quarter. Sequential margin improved 30 basis points from Q2 FY26’s 20.5%, driven by currency tailwinds and productivity benefits that offset cost inflation absorption and margin dilution from the electric two-wheeler portfolio’s highest-ever quarterly sales.
TVS Motor Revenue Jumps 37% in Q3; PAT up 59%
TVS Motor Company reported a strong set of results for the third quarter ended December FY26, with operating performance exceeding market expectations, driven by robust volume growth, improved realisations and margin expansion. The two-wheeler maker’s EBITDA came in above consensus estimates, prompting a likely positive reaction from the market.
Revenue for the quarter rose 37% year-on-year to ₹124.8 billion, marginally ahead of analyst expectations, as overall volumes increased 27% to 1.54 million units. Average realisation per vehicle improved 8% to ₹80,781, reflecting a better product mix and price discipline.
Volvo Group Sales Down 9%, Operating Profit Down 22% in 2025
Volvo Group on Tuesday reported a 9% drop in net sales and a 22% decline in adjusted operating income for 2025, reflecting softer demand and currency headwinds, even as the Swedish commercial vehicle maker proposed a total dividend of SEK 13 per share. Net sales fell to SEK 479.2 billion from SEK 526.8 billion a year earlier, while adjusted operating income declined to SEK 51.2 billion from SEK 65.7 billion.
Motherson Sumi Wiring India Reports 26% Revenue Growth in Q3 FY26
Motherson Sumi Wiring India Limited (MSWIL) reported revenues of Rs. 2,887 crores for the third quarter of fiscal year 2025-26, representing a 26% increase compared to the same period last year.
The wiring harness manufacturer maintained its debt-free status during the quarter while posting growth in both revenues and EBITDA. The company attributed the performance to operational efficiencies at existing plants and contributions from greenfield facilities.
JBM Auto Revenue Rises 15.6% in Q3FY26 on OEM, E-bus Momentum
Pricol Reports 34% PAT Growth in Nine Months
Long Reads
A Breather for Hero
For a brief moment in 2024, India’s two-wheeler pecking order looked vulnerable.
Hero MotoCorp, the industry’s perennial volume leader, watched its lead over former partner Honda shrink at an alarming pace. The Japanese major was firing on multiple cylinders—scooters, executive motorcycles, premium bikes—and the gap that once seemed insurmountable had more than halved, from 13.8 lakh units in 2023 to 6.88 lakh by year-end.
Beyond Cars: VinFast’s Full-spectrum EV Push in India
When VinFast rolled out its VF6 and VF7 electric SUVs in India last September, it marked more than just another global automaker testing the waters in a promising market. For the Vietnamese carmaker, India represents the cornerstone of a far more ambitious play—one that extends well beyond selling premium electric cars to a handful of early adopters.
The company is now preparing to enter ride-hailing through its sister concern GSM, launch India-specific electric scooters, supply buses to state transport undertakings, and build out a sprawling manufacturing ecosystem in Tamil Nadu.