From multi-billion-dollar acquisitions and strategic partnerships to Q1 earnings, rare earth supply shocks, and new EV rollouts, it was a week of major shifts in India’s mobility landscape.
03 Aug 2025 | 8739 Views | By Darshan Nakhwa
The Indian automotive industry entered August in high gear, fueled by a potent mix of high-stakes acquisitions, ambitious EV plans, and shifting global dynamics.
Leading the headlines was Tata Motors, which roared onto the global stage with its landmark €3.8 billion acquisition of Italy’s Iveco Group. Already the world’s ...
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The Indian automotive industry entered August in high gear, fueled by a potent mix of high-stakes acquisitions, ambitious EV plans, and shifting global dynamics.
Leading the headlines was Tata Motors, which roared onto the global stage with its landmark €3.8 billion acquisition of Italy’s Iveco Group. Already the world’s fourth-largest maker of heavy trucks, Tata is now in what its Group CFO PB Balaji calls “touching distance” of the second and third spots in the global commercial vehicle hierarchy.
Not to be outdone, Mahindra & Mahindra (M&M) kept its domestic momentum strong with a slew of announcements. The company reaffirmed its mid-to-high teens growth guidance for FY26 and confirmed the launch of two new electric SUVs in Q1 2026, along with refreshed ICE models. M&M also finalized its acquisition of SML Isuzu, renaming it SML Mahindra, further expanding its presence in the intermediate and light commercial vehicle space.
Meanwhile, TVS Motor Company is doubling down on both electrification and premiumization. It announced the launch of a new electric two-wheeler and three-wheeler before the year ends and unveiled a distinct retail strategy for Norton Motorcycles and premium TVS models. This aligns with the company's sharp shift toward higher-margin offerings and brand elevation.
Global headwinds were also on display this week. Stellantis flagged a hefty $1.7 billion tariff hit due to new U.S. rules, highlighting the fragility of global trade flows in the auto sector. At the same time, Royal Enfield acknowledged production disruptions caused by rare earth magnet shortages from China–a supply chain issue affecting multiple manufacturers.
In the electric mobility space, India’s car market hit a new high in July, with nearly 15,300 registrations–a 91% YoY jump–pushing EV penetration to 4.6%. Tata Motors retained market leadership despite a shrinking share, thanks to strong demand for the Nexon, Punch, and Harrier EV. On the two-wheeler front, registrations declined marginally, although Ather Energy continued to narrow the gap with Ola Electric, which saw its sales more than halve.
And in the world of components and supply chains, Eaton India and National Instruments all made strong growth signals, showcasing the strength of India’s supplier ecosystem. Here's a wrap-up of the top stories from July 28-August 3:
Top Headlines
Iveco Deal Puts Tata Motor CV on Heels of Global Truck Leaders
In a strategic move set to reshape the global commercial vehicle industry, Tata Motors Commercial Vehicle has announced the acquisition of Italy’s Iveco Group (excluding its defense business). The deal significantly boosts Tata’s global footprint in the heavy truck segment and strengthens its position among the world’s leading manufacturers.
Already ranked fourth globally in the production of trucks over six tonnes, Tata Motors now sees itself “within touching distance of the number two and three spots,” according to Group CFO PB Balaji. Calling it “a very, very large move” in a “very consolidated industry,” Balaji said the acquisition is among the most significant ever undertaken by the Tata Group. Read more
Tata Motors to Raise €1 Billion, Monetise Tata Capital Stake to Fund Iveco Deal
Tata Motors plans to raise close to €1 billion through equity via either a rights issue or qualified institutional placement (QIP) and monetise its stake in Tata Capital to help repay a €3.8 billion bridge loan it will use to acquire Italy's Iveco Group, Group CFO PB Balaji said.
The funding strategy is expected to be executed over the next 12 to 18 months. "We will pay down our acquisition debt over a four-year period," Balaji said. "To do so, there will be a capital raise, and it could be a rights issue or QIP, we’ll see how it works out. We’ll also be monetising our stake in Tata Capital to ensure we minimise the debt raise." Read more
M&M Confirms Mid-Teens Growth Guidance, Two New EVs Coming in Q1 2026
Mahindra & Mahindra (M&M) reiterated its guidance of mid-to-high teens volume growth in FY26, driven by a robust pipeline. This includes:
Despite macroeconomic challenges, Mahindra expects this product lineup to drive sustained growth. Read more
Stellantis Faces $1.7 Billion Tariff Hit in 2025, Warns of Challenging Year Ahead
Stellantis has flagged a significant 1.5-billion-euro ($1.73 billion) impact from U.S. tariffs in 2025, warning of broader operational headwinds and projecting low single-digit operating income for the second half of the year.
The company noted that 300 million euros of the total tariff burden had already been incurred in the first half of 2025. Reuters reported that this revised figure sits at the upper end of the previously forecasted 1.0–1.5 billion euro range announced by Stellantis during its preliminary earnings release last week. Read more
TVS Motor To Launch New Electric 2-Wheeler, 3-Wheeler before 2025-end
Building on its leadership in the electric two-wheeler market and strengthening the presence in the electric three-wheeler market, TVS Motor Company is planning to launch a new electric two-wheeler and an electric three-wheeler during the October-December period, TVS Motor Director and CEO KN Radhakrishnan said.
“There are products which will be ready for launch in the next quarter, which include an electric two-wheeler and three-wheeler,” he said after announcing the company first first-quarter earnings. Read more
TVS Motor Charts Separate Retail Strategy for Premium, Norton Models
TVS Motor Co, which is deepening its play in the premium side of the two-wheeler business, is working on a separate distribution strategy for Norton Motorcycle models. This different retail channel could also include premium models under the TVS brand.
“We will have a differentiated retail strategy in India for Norton, and possibly for some of the premium TVS buyers,” TVS Motor Director and CEO KN Radhakrishnan told investors after announcing the company’s first-quarter earnings.
The strategy for different retail experiences for premium consumers comes as TVS Motor has strategically shifted its focus from mass-market models to premium motorcycles and scooters. The automaker is also preparing to launch four new Norton Motorcycles models in FY26 across the UK, India and key European markets. Read more
Rare Earth Supply Disruption Hits Royal Enfield Production
The production of Royal Enfield’s 450cc platform motorcycles was temporarily disrupted because of the scarcity of rare earth elements from China during the April-June period, company officials said.
The magnet supply constraint resulted in halting the production of models, such as Himalayan, at some point during the quarter, but the company has now stabilized the output using alternative materials.
“In the first quarter, we had that issue [rare earth magnet supply] in those products [450cc platform]. There was a bit of a problem with production,” Eicher Motors MD and Royal Enfield CEO B Govindarajan said. Read more
Mahindra Completes SML Isuzu Buyout, Renames it SML Mahindra
Mahindra & Mahindra Ltd (M&M) has completed the acquisition of a 58.96% controlling stake in SML Isuzu Ltd, marking its formal entry into the intermediate and light commercial vehicle (ILCV) space with significant market presence.
Initially announced in April, the deal saw M&M acquire the stake from Japan’s Sumitomo Corporation and Isuzu Motors Ltd for ₹555 crore at ₹650 per share. The company said it would launch a mandatory open offer to buy up to 26% from public shareholders, in line with Indian securities regulations. Read more
Kinetic Watts and Volts Aims to be Among Top 3 e-2W Makers in 3 Years with Kinetic DX
In a revival of an iconic name, Kinetic Watts and Volts, the electric vehicle subsidiary of Pune-based Firodia family’s Kinetic Engineering Ltd, relaunched the legendary Kinetic DX—this time as an all-electric scooter.
Banking on the legacy of its iconic predecessor, Kinetic Engineering says it will be among the top three in the crowded electric scooter market in the next three years, with a target of selling 1.5 lakh units of Kinetic DX annually by the third year. Read more
Maruti Suzuki Expects CAFE 3 Norms to be Final in 1-2 Months
The government is expected to finalize the guidelines for the Corporate Average Fuel Economy (CAFE) 3 regulations within the next one to two months, offering long-awaited clarity to automakers as they prepare future powertrain roadmaps.
According to Rahul Bharti, Senior Executive Officer, Corporate Affairs at Maruti Suzuki, discussions between the industry and the government have been proceeding smoothly. “Both sides understand each other’s position quite well,” he said. “It is expected that within one to two months, final regulation will be out so that we have clarity for the powertrain.” Read more
JSW MG Motor India and KPIT Technologies Partner to Develop New Energy Vehicles
JSW MG Motor India, the newly established automotive arm of the JSW Group, has entered into a strategic partnership with KPIT Technologies to develop robust software and digital infrastructure for its upcoming portfolio of New Energy Vehicles (NEVs).
The collaboration aims to leverage KPIT’s two decades of experience in automotive software and systems development, spanning over 2,000 global vehicle programs, including several Software Defined Vehicle (SDV) initiatives. The partnership is expected to support JSW MG’s ambitions to introduce technologically advanced electric, hybrid, and plug-in hybrid vehicles in India. Read more
Isuzu Motors and Volvo Group Expand Strategic Alliance with 20-Year Platform Deal
Isuzu Motors and Volvo Group have announced an expansion of their existing strategic alliance through a new 20-year agreement. The companies will jointly develop a common platform for medium heavy-duty trucks, aimed primarily at Japan and other Asian markets.
This extended collaboration builds on the original agreement signed in October 2020. The updated alliance allows both companies to address evolving logistics industry challenges across Asia, combining Isuzu’s market reach with Volvo Group’s technological capabilities. Read more
CCI approves Renault's deal to buyout JV with Nissan in India
The Competition Commission of India (CCI) has approved the Renault Group’s proposal to acquire full ownership of Renault Nissan Automotive India Pvt Ltd (RNAIPL), marking a significant strategic shift for the alliance’s India operations.
The approval clears the way for Renault Group B.V. and its nominee, Renault S.A.S., to purchase all equity and preference shares currently held by Nissan Motor Company and Nissan Overseas Investments B.V. in the joint venture. The move reflects Renault’s sharpened focus on independent operations, with full manufacturing control in India. Read more
Govt Proposes 2nd Phase Of Fuel Efficiency Norms For CVs, Brings LCVs Under Regulation
The Ministry of Power has released the draft proposal for implementing future fuel efficiency norms for commercial vehicles. The draft proposes a new methodology for establishing baselines for fuel consumption, critically expands regulatory coverage to include all fuel types beyond just diesel, and notably brings Light Commercial Vehicles (LCVs) under its ambit for the first time. The fuel efficiency targets proposed are 30% below the new baseline. Read more
Earnings Report Card
TVS Motor Q1FY26 Earnings: Consol net profit grows 32% YoY on record sales
TVS Motor Company posted strong results for the first quarter of FY26, reporting a 32.4% year-on-year growth in consolidated net profit to ₹610.04 crore, compared to ₹460.88 crore in the year-ago period. This surge came on the back of record quarterly vehicle sales. Revenue from operations rose 18.4% to ₹12,210.05 crore during April–June. The company’s operating profit (EBITDA) improved 25% to ₹1,813.84 crore, with an EBITDA margin increase of 81 basis points to 14.86%, up from 14.05% in the same quarter last year. Read more
Eicher Motors Q1FY26 Net Profit Rises 9% YoY; Margins Narrow Amid Higher Costs
Eicher Motors Ltd delivered a steady set of earnings in the April-June quarter of FY26, driven by healthy growth in its Royal Enfield motorcycle and VE Commercial Vehicles (VECV) businesses. The company posted a consolidated net profit of ₹1,205.22 crore, up 9.4% year-on-year from ₹1,101.46 crore in the same period last year. Total revenue from operations rose 14.8% to ₹5,041.8 crore, compared to ₹4,393.1 crore a year ago, while total income, including other income, stood at ₹5,487.9 crore against ₹4,675 crore in Q1 FY25. Read more
Hyundai India Q1FY26 Net Profit Falls 8% Amid Volume Pressure
Hyundai Motor India posted an 8% decline in its April–June net profit year-on-year. The drop in profit reflects a contraction in margin amid a decline in the first quarter dispatches as well as higher discounting. For the quarter ended June 30, the India unit of the South Korean carmaker reported a consolidated net profit of Rs 1,362.34 crore, against Rs 1,483.05 crore in the year-ago period. Revenue from operations also fell 5% on year to Rs 1,641.3 crore.
The Creta-maker’s operating profit or Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) decreased 6.6% on year to Rs 2,185.23 crore, while EBITDA margin contracted to 13.3% from 13.5% in the year-ago period. Read more
Mahindra & Mahindra Reports Strong Q1 Results with 23% Revenue Growth
Mahindra & Mahindra Ltd, one of India’s leading automotive and farm equipment manufacturers, reported a strong set of results for the quarter ended June 30, 2025. Consolidated revenue rose by 23% year-on-year, reaching ₹45,436 crore compared to ₹37,010 crore in Q1 FY25. Net profit attributable to shareholders increased 24%, hitting ₹4,083 crore versus ₹3,283 crore in the same period last year. The performance highlights continued growth momentum across Mahindra’s automotive and farm segments, supported by robust SUV demand and a healthy product pipeline. Read more
Mahindra’s EV Business Posts ₹111 Cr EBITDA on ₹2,800 Cr Revenue in Q1
Mahindra & Mahindra’s electric vehicle division posted strong financial results in Q1 FY26, delivering ₹111 crore in EBITDA on ₹2,800 crore in revenue. The company’s EV operations are split between Mahindra Limited, which handles manufacturing under a contract model, and Mahindra Electric Automobile Ltd (MEAL), which manages EV retail and distribution.
Of the total EBITDA, ₹90 crore came from MEAL, while the remaining ₹21 crore was contributed by Mahindra Limited. Executive Director Rajesh Jejurikar noted that the manufacturing margin is based solely on conversion costs, explaining why profit before interest and taxes (PBIT) was only ₹7 crore, despite substantial revenue. Read more
Maruti Suzuki Reports Modest 7.6% Revenue Growth in Q1 FY26
Maruti Suzuki India Ltd reported revenue of ₹38,605 crore for Q1 FY26, reflecting a 7.6% year-on-year increase. However, net profit remained largely flat at ₹3,792 crore, compared to ₹3,760 crore in the same quarter last year. The results highlight ongoing challenges in the entry-level and hatchback segments, where demand has weakened. While Maruti remains India’s largest carmaker by volume, its growth has lagged SUV-focused competitors like Mahindra and Toyota, both of which are seeing annual growth rates of 15–20%. Read more
Motherson Sumi Wiring India Reports 14% YoY Revenue Growth in Q1 FY26
Motherson Sumi Wiring India Ltd (MSWIL) posted a 14% year-on-year increase in revenue for Q1 FY26, reaching ₹2,338 crore. This growth significantly outperformed the domestic auto industry’s 3% rise in the same period and was driven by increased content per vehicle and participation in new model launches. Chairman Vivek Chaand Sehgal emphasized that even with a slower-than-expected ramp-up at one greenfield facility, the company remains aligned with its long-term expansion and customer-focused goals. Read more
July Sales Performance
Passenger Vehicle Sales Remain Flat in July; Industry Pins Hope on Festival Season
According to estimates from India’s largest car maker Maruti Suzuki India, the total domestic industry volume during July was at around 3.48 lakh units, compared to 3.44 lakh units in July 2024. In June, the industry wholesales were at 3.12 lakh units. Maruti Suzuki’s Senior Executive Officer for Marketing and Sales Partho Banerjee noted that the industry’s retail sales are also flat at 3.28 lakh units. Read more
Royal Enfield Sees Strong July Sales Growth even as Bajaj Numbers Remain Muted
Royal Enfield has reported a robust 31% year-on-year (YoY) growth in total sales for July 2025, with 88,045 motorcycles sold compared to 67,265 units in July 2024. This performance is in stark contrast to its competitor, Bajaj Auto, which saw a decline in its domestic two-wheeler sales during the same period. The growth for Royal Enfield was primarily driven by its popular models with engine capacities up to 350cc, which sold 76,047 units, a 34% increase from the previous year. Read more
Electric 2W Registrations Decline in July; Ather Narrows Gap With Ola Electric
Electric two-wheeler registration declined both on a year-on-year and month-on-month basis during July, according to the data from the Vahan registry portal. A total of 1.03 lakh electric two-wheelers were registered during the month, representing a 4% on-year decline and 3% drop from June.
The year-on-year decline in total volumes reflects Ola Electric sales, which more than halved during the period. Among all the top electric two-wheeler makers, only Ola Electric saw its registration drop.
However, all the companies, excluding Hero MotoCorp, saw a decline in their registrations on a month-on-month basis. Industry experts and analysts attribute this sequential drop to muted demand preceding the festive period and production disruptions stemming from rare earth magnet supply challenges. Read more
India’s Electric Car Market Scales New High in July; Penetration Close to 5%
India’s electric passenger vehicle market scaled new heights in July with registrations almost doubling to 15,295 units on a year-on-year basis. The 91% year-on-year and 10% month-on-month growth reflects growing consumer acceptance for EVs, model availability, and confidence in charging infrastructure.
Electric vehicle penetration in July touched 4.6%, up from 4.4% in June, with cumulative sales in the first four months of the financial year rising 79% to 55,816 units. Tata Motors retained its lead with 5,972 units, commanding 39% of the market. The carmaker’s performance is on the back of robust demand for the Punch and Nexon EVs, as well as for the newly launched Harrier EV. Harrier EV, Tata Motors’ first midsize electric SUV, has helped the company reassert its presence in the premium EV segment. Despite growing competition, the automaker’s EV volumes in FY26 so far stand at 20,232 units, though its market share has dropped to 36.2% from 64.7% a year ago. Read more
Key Insights
M&M and SML Isuzu: Strategy, Synergy, and Game Plan
In 2020, Mahindra & Mahindra (M&M), the Mumbai-based conglomerate known for its rugged SUVs and agricultural machinery, laid out a bold vision: to transform its commercial vehicle (CV) business and replicate its market leadership in the tractor and SUV segments. Now, five years later, that strategy is beginning to take shape, especially with the company’s acquisition of SML Isuzu Ltd. This significant move strengthens Mahindra’s foothold in the highly competitive ILCV (Intermediate and Light Commercial Vehicle) space and supports its long-term goal of leadership across vehicle categories. Read more
We’ll Cover All Segments from A to C in Two Years: Renault India's Venkatram Mamillapalle
As part of its strategy to reinvent itself in India, Renault India is preparing for a major transformation. In an exclusive interview, Venkatram Mamillapalle, Managing Director of Renault India, shares insights into the company’s future roadmap, including a ₹5,400 crore investment, a completely refreshed product lineup, and aggressive plans to cover all vehicle segments from A to C within two years.
He discusses the importance of the Chennai design studio, local innovation, and the decision to assume full control of Renault Nissan’s Indian operations. Mamillapalle emphasizes a renewed focus on exports, localization, and a reimagined brand experience that could position Renault as a serious contender in India’s evolving automotive landscape.
Watch the full interview: https://www.autocarpro.in/video/well-cover-all-segments-from-a-to-c-in-two-years-renault-indias-venkatram-mamillapalle-127851
Powering Ahead: Eaton India’s Growth Engine
Eaton India’s automotive division is preparing for its next phase of aggressive growth after doubling revenues and tripling profits over the past five years. With a targeted revenue growth of 60–70% over the next five years, the company is looking to outpace the broader auto component market.
This ambitious expansion will be driven by a multi-pronged strategy, including agile product development, expanded export capability, the integration of next-gen technologies, and a disciplined capacity-building approach. Eaton is leveraging both global expertise and strong domestic capabilities to meet the evolving needs of OEMs and drive innovation across segments. Read more
'We are excited about India building tech for the world': Baskar Ceri
As software-defined vehicles (SDVs) emerge as a defining trend in the auto industry, India is positioning itself as a technology and innovation hub. In this interview, Baskar Ceri, Managing Director of National Instruments (NI) India, shares how the company is helping Tier-1 suppliers and OEMs develop advanced solutions in connectivity, ADAS, and in-cabin experiences. He also discusses how NI’s tools are helping accelerate time-to-market for auto brands globally and why India’s role in the SDV revolution is becoming increasingly critical. “We are excited about India building tech for the world,” Ceri says, underscoring the country's growing influence on global automotive development. Watch the full interview
High Stakes For a New Bee: Can Everta Plug Into India’s EV Ambitions?
Everta, a new entrant in India’s EV charging infrastructure space, is making a bold bet on high-tech manufacturing. Backed by a strategic partnership with Epsilon Advanced Materials, Everta aims to become a major player in India’s EV ecosystem by 2030. Founders Benny Parihar and Manasvi Sharma describe their venture as a disciplined, innovation-led operation ready to take on established players. The leadership draws parallels to their experience in medical devices—an even more demanding manufacturing field—and believes their focus on precision engineering and rigorous standards will help them scale fast. But questions remain: Can even the best-planned new venture overcome India’s infrastructure and market hurdles? Read more
India Emerges as CNH's Manufacturing Hub
CNH, the global manufacturer of agricultural and construction equipment, is realigning its global manufacturing footprint, increasingly positioning India—especially its advanced facility in Pithampur, Madhya Pradesh—as a hub for worldwide exports. This pivot stands in contrast to CNH’s operations in China, which remain largely domestically focused.
The shift toward India is driven by a combination of favorable labor costs, regulatory predictability, technology readiness, and geopolitical advantages. CNH’s Indian operations now play a key role in supplying equipment to high-demand global markets, cementing India’s role as a strategic manufacturing center. Read more