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Weekly News Wrap: BS7 Norms Proposed, Hyundai Commits $15.5 Billion, Stellantis Plans Rs 4,000 Crore Investment
The Centre proposes tighter emission norms, while Hyundai and Stellantis outline major investments, Renault launches the Duster hybrid, and electric truck manufacturing gathers pace.
By Darshan Nakhwa
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India's automotive industry saw a busy week between October 12 and 18, with new emission regulations, major investment announcements and a series of product launches dominating developments.
The Centre proposed Bharat Stage VII (BS7) emission norms from April 2029. Hyundai Motor Group announced a $15.5 billion India investment programme and inaugurated its new Pune manufacturing plant. Stellantis outlined an additional Rs 4,000 crore commitment to expand its Jeep and Citroen portfolios, and formalised an agreement with Tata Motors PV for a Sierra-based Jeep SUV.
Electrification also remained in focus. Renault launched the Duster strong hybrid, electric passenger vehicle registrations crossed 1.92 lakh units in the first half of FY2027, and Energy In Motion opened a new electric truck assembling facility in Pune. Tata Motors PV crossed one lakh electric passenger vehicle retail sales in the first nine months of 2026, while Varroc announced plans to take operational control of an EV battery joint venture. Meanwhile, Tata Motors moved closer to its acquisition of Iveco, and rising raw material costs continued to put pressure on automotive suppliers.
Market and Regulation
Centre Proposes BS7 Emission Norms From April 2029
The Ministry of Road Transport and Highways proposed introducing Bharat Stage VII emission standards from April 1, 2029, with a phased rollout extending until 2035.
Under three draft notifications, passenger cars will come under the proposed standards from April 2029, followed by light commercial vehicles in April 2030 and medium and heavy trucks and buses in April 2031.
The proposed rules go beyond conventional exhaust emissions to cover brake and tyre particles, electric vehicle battery durability, real-world emissions testing and onboard monitoring. The framework largely retains existing limits for key exhaust pollutants in passenger cars while tightening testing and lifetime compliance requirements.
Auto Sales Rise 18.2% in Q2, Passenger Vehicles Jump 30.7%
India's automobile industry recorded its highest-ever second-quarter sales across major vehicle segments, with total domestic sales rising 18.2% year-on-year to 83,87,938 units in July-September, according to SIAM.
Passenger vehicle sales increased 30.7% to 13,60,687 units, supported by the GST-related price reductions, a favourable base and festive demand. Utility vehicles accounted for around 68% of passenger vehicle volumes.
Commercial vehicle sales rose 28.7%, while two-wheeler sales increased 15.2%. SIAM expects positive growth in the second half of FY2027, although higher interest rates, inflation and a stronger comparison base could moderate the pace.
Electric Passenger Vehicle Sales Cross 1.92 Lakh units in H1 FY27
India's electric passenger vehicle market maintained strong momentum, with retail sales rising 89% year-on-year to 1,92,012 units in the first half of FY27, according to VAHAN data.
Sales accelerated in the July-September quarter to 1,04,009 units, up 84%, while September set a new monthly record of 36,904 electric cars and SUVs.
The sharp increase has strengthened expectations that annual electric passenger vehicle sales could approach or cross four lakh units in FY27 if the current momentum continues.
Separately, Tata Motors retailed 1,01,484 electric passenger vehicles during January-September 2026, giving it nearly 40% of the 2,55,326 electric cars and SUVs sold in India during the period. Its wholesale dispatches reached 1,08,548 units.
Read the full story, Read the Tata Motors EV sales analysis
Scooter Wholesales Reach Record 9.96 Lakh Units in September
Scooter manufacturers dispatched a record 9,95,576 units in September 2026, up 34% year-on-year, according to SIAM data. The total included 1,86,692 electric scooters, reflecting strong festive-season stocking by dealerships.
Honda Motorcycle & Scooter India led the market with 3,83,035 units, followed by TVS Motor with 2,77,115 units. Together, the two manufacturers accounted for about two-thirds of scooter dispatches.
Tractor Wholesales Fall 18% as Retail Registrations Rise
Tractor dispatches declined 18.1% year-on-year to 1,19,667 units in September, even as retail registrations increased 13.8% to 76,906 units, according to FADA data. The divergence suggests manufacturers were adjusting dealership inventories rather than facing an immediate collapse in retail demand.
The report also highlighted concerns about rural demand following an uneven monsoon, with rainfall around 13% below normal.
India's Vehicle Loan Portfolio Reaches Rs 20.5 Lakh Crore
India's vehicle-finance portfolio has reached Rs 20.5 lakh crore, according to CRIF High Mark data covering passenger vehicles, two-wheelers and commercial vehicles. A separate TransUnion CIBIL report put outstanding loans for cars and two-wheelers at Rs 12.76 lakh crore as of June 2026.
Average passenger vehicle loan sizes have increased nearly 49% since 2019 to Rs 8.2 lakh, while average repayment tenures have lengthened by five months to 62 months. NBFCs account for nearly three-quarters of active two-wheeler loans and 37% of passenger vehicle loans.
Although delinquency levels remain low, the analysis raised questions about debt sustainability as borrowers take on multiple credit products. TransUnion CIBIL said it lacks sufficient information on borrowers' incomes to fully assess their debt-servicing capacity.
Read the full story
Investments and Expansion
Hyundai Motor Group Commits $15.5 Billion to India Through 2032
Hyundai Motor Group announced a $15.5 billion investment programme for India between 2026 and 2032, covering manufacturing expansion, research and development, local sourcing and new mobility businesses.
The investment includes $700 million for R&D and plans to expand capacity at Hyundai Motor India and Kia India. The group will also explore opportunities in automotive financing, EV charging infrastructure and vehicle recycling.
Hyundai Motor Company CEO José Muñoz separately described India as a model for the company's global expansion strategy, highlighting its experience in localisation and building a supplier ecosystem.
Hyundai Motor India also inaugurated its Talegaon plant in Pune on October 14, adding an initial annual production capacity of 1.7 lakh vehicles. The company plans to increase this to 3.2 lakh by 2030, taking its combined Pune and Chennai capacity to around 11.4 lakh vehicles annually. Hyundai has outlined investments of up to Rs 11,000 crore in the Pune facility, which will manufacture the Venue for domestic and export markets.
Muñoz also said the capacity expansion could help Hyundai regain the No. 2 position in India's passenger vehicle market by 2028-29.
Read the investment story, Read the José Muñoz story, Read the Pune plant story, Read Hyundai's market-share outlook
Stellantis Plans Rs 4,000 Crore India Investment, 12 Product Introductions
Stellantis announced plans to invest an additional Rs 4,000 crore in India under its Fastlane 2030 strategy, as it seeks to expand the presence of Jeep and Citroen.
The company plans seven new products and five refreshed models by 2030, with the first launch scheduled for the second quarter of 2027. The investment will support product development, localisation and customer experience.
A smaller Jeep SUV based on Tata Motors' Sierra architecture forms part of the planned expansion. Stellantis is also considering sourcing hybrid powertrains from external partners to reduce development costs and make the technology more competitive in India.
Jeep is also planning to enter India's lifestyle pickup market with a D-segment model, expanding its portfolio beyond SUVs. Stellantis India Managing Director and CEO Shailesh Hazela confirmed that future Jeep products would cover the B, C and D segments, along with a D-segment pickup. However, the company has not disclosed the pickup's launch date, powertrain or manufacturing location.
The automaker has also confirmed plans to introduce an electric Jeep in India as part of its broader expansion. Hazela said Jeep would seek to offer four-wheel-drive variants across its future range, although he stopped short of committing to 4x4 capability on every model. The company intends to use greater localisation and Indian engineering capabilities to improve cost competitiveness while retaining Jeep's off-road positioning.
Read the Tata-Stellantis exclusive, Read the Stellantis investment story, Read the hybrid sourcing story, Read the Jeep pickup story, Read the Jeep EV and 4x4 strategy
Citroen Plans Small Car, C-SUV and D-Segment MPV
Citroen outlined plans to enter additional vehicle segments in India, including a small car, a C-segment SUV and a larger D-segment MPV. The proposed products form part of Stellantis' wider Fastlane 2030 strategy, as the French brand looks to improve its market presence and address gaps in its portfolio.
The company is also working to expand customer reach, strengthen its CNG offerings and improve product competitiveness in a market increasingly dominated by SUVs.
Read the full story
Passenger Vehicles and Product Strategy
Renault Launches Duster Strong Hybrid at Rs 16.99 Lakh
Renault India launched the Duster Strong Hybrid E-Tech 160 at an introductory starting price of Rs 16.99 lakh (ex-showroom), with deliveries scheduled to begin on November 6.
The SUV combines a 1.8-litre petrol engine with two electric motors and a 1.4 kWh battery, delivering a combined output of 160 PS. Renault claims an ARAI-certified fuel efficiency of 29 km/l.
The launch comes as Renault seeks to improve the Duster's sales performance. India CEO Stéphane Deblaise said limited powertrain choices had constrained the SUV's appeal, estimating that the hybrid and further engine changes could expand its market coverage from 20% to as much as 90%. He indicated that this could create scope for a fourfold increase in volumes, without committing to a sales target.
Deblaise also expressed confidence that Renault's planned hybrid, CNG and EV portfolio would enable the company to meet CAFE III requirements. He said hybrids and CNG could together account for as much as 50% of Renault's India sales in the next two to three years, while clarifying that it was a possibility rather than a formal target. Renault is also aiming for annual export revenue of €2 billion from India by 2030, covering vehicles, components and related services.
Read the Renault powertrain and export outlook, Read the launch story, Read the sales potential story
Mahindra Enters Passenger CNG Market With XUV 3XO ZNG
Mahindra & Mahindra launched its first mainstream CNG passenger vehicle, the XUV 3XO ZNG, at a starting price of Rs 9.99 lakh (ex-showroom).
The compact SUV uses a 1.2-litre turbocharged petrol engine with a factory-integrated CNG system, delivering 200 Nm of torque in both petrol and CNG modes. Mahindra claims fuel efficiency of 24.7 km/kg.
The model is offered in four variants priced up to Rs 12.27 lakh, expanding Mahindra's powertrain portfolio beyond petrol, diesel and electric passenger vehicles.
Toyota Sees Continued Demand for Hatchbacks Despite SUV Growth
Toyota Kirloskar Motor expects hatchbacks to remain relevant in India despite the growing popularity of SUVs, supported by first-time buyers, customers upgrading their vehicles and households purchasing an additional car.
Sabari Manohar, Vice President, Sales, Service and Used Cars at Toyota Kirloskar Motor, said demand for smaller cars continues across urban and rural markets, where affordability and individual ownership needs influence purchasing decisions.
The company recently introduced an updated Glanza, priced from Rs 6.99 lakh to Rs 10.49 lakh (ex-showroom), as it seeks to attract first-time car buyers and existing Toyota customers looking for an additional vehicle.
MG Discontinues Astor Amid Weak Demand
JSW MG Motor India has discontinued the Astor midsize SUV amid weak sales, according to dealer sources. The SUV averaged just 112 units in monthly sales between September 2025 and September 2026, reflecting its limited traction in a segment dominated by models such as the Hyundai Creta and Kia Seltos.
The Astor's limited powertrain range was among the factors affecting its competitiveness. MG is preparing a successor, expected in 2027, that could support petrol, hybrid and electric powertrains.
Hero MotoCorp Updates Xtreme 160R 4V and Xtreme 250R
Hero MotoCorp introduced updated versions of the Xtreme 160R 4V and Xtreme 250R, with prices starting at Rs 1.27 lakh and Rs 1.98 lakh, respectively. The launches add to activity in India's sporty commuter and quarter-litre motorcycle segments.
Audi Expects Record Luxury Car Sales in 2026, Launches New Q3
Audi India expects the country's luxury passenger vehicle market to reach a record 58,000 units in 2026, up nearly 12% from approximately 52,000 units last year.
The German carmaker plans to expand its showroom network from 28 outlets to around 40 by 2027 and more than 50 by 2030, with an increasing focus on smaller cities.
Audi also launched the third-generation Q3 at Rs 51.99 lakh (ex-showroom). The locally assembled SUV is powered by a 2.0-litre turbo-petrol engine producing 204 PS and 320 Nm of torque.
Read the luxury market outlook, Read the Q3 launch story
Volvo Evaluates Plug-In Hybrids, Warns of Price Hikes Amid Supply Pressures
Volvo Car India is evaluating the introduction of plug-in hybrid vehicles from its global portfolio but says India's tax structure and customers' willingness to pay remain key challenges. Managing Director Jyoti Malhotra said the company continues to focus on mild hybrids and battery-electric vehicles, with a long-term ambition to become an electric-only carmaker.
The Swedish automaker also indicated that it may increase vehicle prices before its next annual review because of currency fluctuations and higher logistics costs. Malhotra said supply disruptions had affected the availability of models such as the EX30 electric SUV, limiting the company's ability to meet festive-season demand. Volvo has not announced the timing or extent of a potential price increase.
Meanwhile, Volvo is betting on its flagship EX90 electric SUV to strengthen its premium positioning in India. Deliveries are scheduled to begin in January 2027, with the ES90 electric sedan planned as the next addition. Malhotra said the company is taking a long-term approach to building its presence in India's luxury vehicle market.
Read Volvo's plug-in hybrid plans, Read Volvo's pricing and supply outlook, Read Volvo's EX90 and India strategy
Electric Mobility and Commercial Vehicles
EIM Opens Rs 500 Crore Electric Truck Complex in Pune
Energy In Motion inaugurated a Rs 500 crore electric heavy commercial vehicle assembly complex in Talegaon, Pune, marking its shift from imported trucks towards local assembly and production.
The facility has an initial annual vehicle assembly capacity of 5,000 units and also houses battery-pack operations. The company plans to introduce two additional electric truck models, a heavy tipper and a rigid-body truck, over the next 15 months.
Managing Director Narendra Murkumbi said more than 95% of the company's electric truck sales follow a Battery-as-a-Service model, under which customers purchase trucks without batteries. EIM claims the arrangement can reduce upfront purchase costs by around 40%.
The company also plans to establish 160 megawatt-scale battery-swapping and charging stations along major freight corridors over the next three years.
Read the product portfolio expansion story, Read the battery subscription story
VinFast Sells Over 14,600 EVs Since India Entry
Vietnamese electric vehicle manufacturer VinFast has sold approximately 14,600 EVs in India since entering the market in September 2025, establishing itself among the country's leading electric passenger vehicle brands.
The company has expanded its presence through the VF6 and VF7 electric SUVs and the Limo Green electric MPV, entering a market where established Indian manufacturers continue to account for a substantial share of EV sales.
Its performance highlights the growing competition in India's electric passenger vehicle market as new entrants expand their product offerings.
Ather Gets IRDAI Approval for Insurance Distribution
Ather Energy received regulatory approval for a wholly owned subsidiary to distribute insurance products, opening an additional opportunity to earn revenue from services linked to its electric scooters. The move follows a wider industry push to expand customer relationships beyond vehicle sales.
Jio-bp and Kia Expand EV Charging Access
Jio-bp and Kia India announced an integration of their EV charging networks, allowing Kia customers to access more than 7,000 Jio-bp charging points through the MyKia application.
Under the arrangement, Kia's dealership charging points will also be integrated into the network. The partnership comes as automakers and charging infrastructure providers seek to make public charging more accessible and reduce the inconvenience of using multiple applications and charging networks.
Read the full story
Corporate Deals, Components and Manufacturing
Iveco Shareholders Lower Takeover Threshold for Tata Motors
Tata Motors' proposed acquisition of Iveco moved a step forward after shareholders of the Italian commercial vehicle manufacturer approved resolutions that reduced the minimum acceptance threshold for the transaction from 95% to 80%.
The decision, taken at an extraordinary general meeting on October 16, gives Tata Motors greater flexibility to complete the acquisition through alternative restructuring arrangements under Dutch law.
Tata Motors had earlier increased its offer to €14.40 per share, valuing the proposed deal at approximately €3.91 billion. The transaction remains subject to the applicable offer and completion conditions.
CEAT Faces Margin Pressure, Sees Need for 7-8% Price Increase
Tyre manufacturer CEAT reported a 26% year-on-year increase in consolidated revenue to Rs 4,762 crore in the September quarter, but net profit declined around 40% to Rs 112 crore as raw material costs weighed on profitability.
The company estimated that it would require price increases of approximately 7-8% across its portfolio to fully offset the inflationary impact. However, it remains uncertain how much of the increase can be passed on to customers.
Higher crude derivative prices and logistics costs linked to geopolitical tensions in West Asia have added to cost pressures across the tyre industry.
Bonfiglioli Plans New Plant to Expand Heavy-Duty Gearbox Business
IPO-bound Bonfiglioli Transmissions announced plans to set up another manufacturing facility at Talegaon in Maharashtra to strengthen its presence in the heavy-duty industrial gearbox market.
The company intends to expand beyond its established low- and medium-duty product range, targeting demand from steel, cement, power generation and other process industries.
Bonfiglioli is also exploring growth opportunities in electric drive systems for construction, material-handling and off-highway equipment. The planned investments will be supported by internal accruals, although the company has not disclosed a capex amount or commissioning timeline for the new plant.
Read the manufacturing expansion story, Read the off-highway electrification story
Nexon Geochem Plans Rs 1,250 Crore Rare-Earth Magnet Plant
Nexon Geochem announced plans to invest Rs 1,250 crore in an integrated rare-earth permanent magnet manufacturing facility in Andhra Pradesh.
The proposed plant in Kakinada district will have an annual capacity of 600 tonnes of neodymium-iron-boron magnets, which are used in EV motors, renewable energy equipment, and defence applications.
The first phase, involving Rs 750 crore, is targeted for April 2029, with further investment planned through 2035. The project is intended to support domestic manufacturing and reduce dependence on imported critical components.
ATS Plans Rs 60 Crore Battery Testing Laboratory in Pune
Automotive Test Systems announced plans for a battery testing laboratory at Talegaon, Pune, with a proposed initial investment of approximately Rs 60 crore.
The facility will offer performance, durability, safety, and abuse testing for battery systems ranging from electric two-wheelers to heavy commercial vehicles.
Developed in collaboration with a European testing and certification organisation, the laboratory is intended to strengthen domestic validation capabilities and reduce dependence on overseas testing facilities.
Varroc to Take Operational Control of Forsee Power India's EV Battery Business
Varroc Engineering and France's Forsee Power plan to develop and supply EV battery packs through a proposed joint venture. Varroc will acquire a 45% stake in Forsee Power India and take management and operational control, subject to approvals.
The venture will initially focus on electric three-wheelers before expanding to two-wheelers, commercial vehicles and off-highway applications, combining Forsee Power's battery expertise with Varroc's manufacturing operations and customer network.
Himadri Reports 58% Revenue Growth as Battery Materials Business Expands
Himadri Speciality Chemical reported a 57.9% increase in consolidated revenue to Rs 1,691 crore in the second quarter of FY27, while net profit rose 31.3% to Rs 231 crore.
The company highlighted its growing investments in advanced battery materials, including its increased exposure to Sicona Battery Technologies and silicon-anode technology following Sicona's acquisition of US-based Advano.
The developments come as Indian suppliers expand their presence in materials and components required for EV batteries and other emerging technologies.
Read the full story
Video Playlist
Deep Drive Podcast: Why Hybrids Are Suddenly in the Limelight
In the latest episode of the Deep Drive Podcast, Autocar India's Hormazd Sorabjee and Sergius Barretto discuss the growing importance of hybrid vehicles in India amid tighter fuel-efficiency regulations and changing consumer preferences.
The discussion covers the role of CAFE III norms, the impact of rising fuel costs, and the different hybrid technologies being developed by automakers. It also examines upcoming hybrid plans from Maruti Suzuki, Renault-Nissan, Hyundai, Kia, Mahindra, Tata Motors and Toyota, and whether competitive pricing can help hybrids gain market share.
Rolls-Royce's Julian Jenkins on India Growth, UK FTA and Spectre EV Plans
Julian Jenkins, Global Director of Sales and Brand at Rolls-Royce Motor Cars, discusses the company's double-digit growth in India, supported by demand from entrepreneurs and technology professionals.
In an interview with Autocar Professional's Mugdha Mishra, Jenkins outlines the potential impact of the India-UK Free Trade Agreement on vehicle pricing, the growing demand for bespoke luxury cars and the company's electric vehicle strategy. He also discusses the planned November arrival of the Spectre Series 2, battery support and the role of artificial intelligence in vehicle development.
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