Weekly News Wrap: CAFE draft, Ather fund raise, JSW MG's new multi-powertrain platform

The Indian automotive industry witnessed several important developments this week, with updates on the policy front, investment announcements and expansion plans dominating the headlines. The government released the draft Corporate Average Fuel Economy (CAFE) III regulations for passenger vehicles, opening them for public consultation ahead of implementation from the 2027-28 financial year. The proposed norms retain the broad framework shared with the industry earlier while introducing technical refinements and implementation details aimed at improving fuel efficiency and reducing carbon emissions.

In the electric vehicle segment, Ather Energy approved a Rs 1,200 crore preferential fund raise. Existing investor Hero MotoCorp will increase its investment, while the government-backed India-Japan Fund will also participate, reflecting continued confidence in the Bengaluru-based EV maker.

JSW MG Motor India announced a Rs 1,400 crore investment this year to expand manufacturing capacity, increase localisation and launch new products. The company also unveiled its ADAPT architecture, India's first multi-new energy vehicle platform supporting electric, hybrid, plug-in hybrid and range-extender technologies.

Meanwhile, Amara Raja said India-made battery cells will initially cost 20-25% more than Chinese products, while confirming it is evaluating a dedicated passenger EV battery pack plant as it expands its battery business.

Power Ministry Releases Revised CAFE III DraftThe government has issued a revised draft of the CAFE III fuel-efficiency norms for passenger vehicles, to be rolled out from 2027-28 to 2031-32, for public consultation. While retaining the core framework proposed earlier in April, the draft adds technical refinements, implementation details and incentives aimed at reducing fuel consumption and carbon emissions.

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Ather Energy Board Approves ₹1,200 Crore Preferential IssueAther Energy has approved a Rs 1,200 crore fund raise through a preferential issue, with Hero MotoCorp increasing its investment to strengthen its stake, while the government-backed India-Japan Fund will also invest, supporting the EV maker's future growth plans

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JSW MG Motor India Unveils MG AdaptJSW MG Motor has unveiled India's first multi-new energy vehicle platform, ADAPT, supporting EVs, hybrids, plug-in hybrids and range-extenders. The company will launch two SUVs on this architecture this financial year while boosting localisation and manufacturing capacity to support future growth.

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JSW MG Motor to Invest Rs 1,400 Crore This Year, Launch 4 VehiclesJSW MG Motor India will invest Rs 1,400 crore this year to expand manufacturing capacity, raise localisation, launch four vehicles and introduce its ADAPT multi-energy platform, supporting EVs and hybrids as it targets the next phase of growth in India's new-energy vehicle market.

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Tata Motors Seeks Changes to Proposed CAFE Credit Buying MechanismTata Motors has urged the government to revise the proposed CAFE framework, opposing plans to let the Bureau of Energy Efficiency sell compliance credits directly to automakers. It said credits should come only from verified overperformance to preserve market credibility and encourage genuine fuel-efficiency improvements.

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CEAT to Invest ₹1,205 Crore to Expand Two-Wheeler Tyre Capacity by 66%CEAT will invest Rs 1,205 crore to expand two-wheeler tyre production by 66% by FY31, increasing capacity to 1.33 lakh tyres a day as strong demand and near-full utilisation drive its long-term manufacturing expansion plans.

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Amara Raja Expects India-Made Battery Cells To Carry 20-25% Cost Premium Over ChinaAmara Raja expects India-made battery cells to initially cost 20-25% more than Chinese equivalents, citing China's scale and supply-chain advantages. The company expects the gap to narrow as domestic production expands, localisation improves, and investments strengthen India's battery manufacturing ecosystem.

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Amara Raja Eyes Passenger EV Battery Pack PlantAmara Raja is evaluating a dedicated passenger EV battery pack plant after initiating discussions with multiple automakers. The company expects battery packs to remain its primary revenue driver as domestic cell production begins and expands under its Telangana gigafactory plans

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From Banks to E-Mobility: Inside Sumit Mittal’s Multi-Crore Plan to Scale JSW GreentechSumit Mittal, a former infrastructure banker, leads JSW Greentech's ambitious entry into electric commercial vehicles through a massive greenfield facility in Maharashtra. 

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PV Sales Hit Record High in Q1 FY27, UVs Lead the ChargeIndia's passenger vehicle market recorded its strongest-ever first quarter, with domestic sales rising 25.9% year-on-year to 12.74 lakh units between April and June 2026, according to SIAM data

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Harman India Expects Automotive Business to Double in Five YearsHarman expects its India automotive business to double over the next five years, driven by growing demand for connected vehicles, software-defined technologies and premium in-car experiences. The company is also strengthening India's role as its global innovation and engineering hub for future mobility solutions.

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Hero MotoCorp Warns of Impact From Abrupt CAFE RolloutHero MotoCorp's annual report highlights a two-pronged strategy: expanding its premium motorcycle business through new products, Harley-Davidson models and retail growth, while warning that a sudden extension of CAFE norms to two-wheelers could raise compliance costs, disrupt product development and pressure profitability in India's price-sensitive market.

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Gabriel India to Invest ₹180 Crore in New Capacity, Automation in FY27Gabriel India plans to invest Rs 180 crore in FY27 to expand manufacturing, including a new Hosur plant, while raising sunroof localisation to over 60% and increasing exports to 10% of its portfolio as it broadens its customer base and strengthens its global presence.

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After the Oil Shock, the Metal ShockAlthough crude oil prices have retreated from their wartime peak, the West Asia conflict has triggered persistent inflation in automotive raw materials, with steel, copper, rubber, battery chemicals and other inputs remaining near 12-month highs, keeping cost pressures elevated for automakers and suppliers.

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Software, In-Cabin Experience to Drive Next Phase of Automotive Tech: HarmanHarman India expects software and in-cabin digital experiences to become the biggest differentiators for automakers as vehicles become increasingly connected. The company believes consumer demand for seamless, smartphone-like experiences will drive future competition, with India emerging as a key innovation market.

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Govt Approves Second Leg of Chip Manufacturing Program with Semicon 2.0The Union Cabinet has approved the Rs 1.28 lakh crore Semicon 2.0 programme to strengthen India's semiconductor ecosystem, expanding support for chip design, manufacturing equipment and fabrication while building on investments approved under the first phase of the India Semiconductor Mission.

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Ather to Unveil Mass-Market EL Platform Scooter at Community Day 2026Ather Energy will unveil its first scooter based on the new EL platform at Ather Community Day on August 29, marking its entry into the mass-market scooter segment. The company will also showcase new technologies, charging solutions and ownership ecosystem innovations to support future growth.

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Hindustan Petroleum Conducts Retail Fuel Inspections to Verify Ethanol QualityHPCL said surprise inspections across its nationwide retail network found no cases of adulteration, contamination or major fuel quality lapses. The surveillance covered over 2,100 surprise checks, supported by regular inspections, quality assurance teams and on-site mobile laboratory testing.

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Mercedes-Benz India Reshuffles Sales & Marketing LeadershipMercedes-Benz India has reshuffled its Sales & Marketing leadership, effective September 1, promoting executives across marketing, retail finance and product planning as it strengthens data-driven customer engagement, AI adoption, integrated retail finance and cross-functional leadership to support its next phase of growth.

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Maruti Suzuki Commences Bookings for Updated Brezza before LaunchMaruti Suzuki has opened bookings for the new-generation Vitara Brezza, marking a decade since the SUV's launch. The refreshed model aims to strengthen its position in the sub-four-metre SUV segment after surpassing 1.4 million cumulative sales.

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Ashok Leyland Wins ₹222.65 Crore Arbitral Award Against Delhi Transport CorporationAshok Leyland has won a long-running arbitration against Delhi Transport Corporation, securing an award of Rs 222.65 crore plus interest and legal costs, while DTC's Rs 136 crore counterclaim was rejected. The company is evaluating the financial impact and further legal options.

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JBM Electric Vehicles Signs MoU with Drivn to Supply 500 Electric BusesJBM Electric Vehicles has partnered with Drivn to supply 500 electric buses over the next year, combining vehicle manufacturing with leasing, financing, charging and maintenance support to accelerate electric bus adoption across intercity, school, employee and airport transport segments.

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Steelbird to Set Up Seventh Manufacturing Plant in BaddiSteelbird Hi-Tech will establish its seventh manufacturing plant in Himachal Pradesh, increasing annual helmet production capacity to 2.5 crore units by 2032. The facility will produce advanced safety materials and support the company's expansion into premium, smart and internationally certified helmets.

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Accounting Changes or Growth Surge? Euler Motors Reports Positive Net Worth Despite Widening LossesEuler Motors reported a positive net worth of Rs 421.3 crore in FY26, reversing the previous year's deficit through fresh capital infusion and balance-sheet restructuring.

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E3 Electric.Ai Raises ₹100 Crore Series A Led by BluVenture HoldingsE3 Electric.Ai has raised Rs 100 crore in a Series A funding round led by BluVenture Holdings. The capital will support product development and market expansion ahead of the launch of its AI-powered, modular electric scooter, the E3 TRION.

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India’s EV Component Market Seen Crossing ₹3 Lakh Crore by 2032An India Energy Storage Alliance report highlights both the opportunities and concentration in India's EV ecosystem. It projects the EV component market will expand more than sevenfold to Rs 3.02 lakh crore by 2032, while noting that nearly all Production Linked Incentive payouts for automobiles and auto components have so far been cornered by five vehicle manufacturers.

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VinFast Charts FY27 Roadmap Around Localisation, 2W Debut and Network GrowthVinFast is making one of the biggest commitments by a global EV manufacturer in India, with a planned $2 billion investment, a manufacturing facility in Thoothukudi, Tamil Nadu, and an expanding electric vehicle portfolio.

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