India’s auto industry ended February with its foot firmly on the accelerator, but the week made it clear that growth alone is no longer the whole story. Sales momentum remained broad-based across passenger vehicles, two-wheelers, tractors and commercial vehicles, underscoring resilient consumer demand and improving rural sentiment. Yet beneath the strong dispatch numbers ran a more complex narrative—one shaped by policy friction, supply constraints and a recalibration of global investment flows.
February wholesales confirmed that SUVs continue to anchor passenger vehicle growth, while two-wheelers and tractors reinforced the rural recovery theme. Several manufacturers posted double-digit gains, and even companies reporting flat numbers pointed to capacity ceilings rather than demand fatigue. In short, the demand engine is running hot—but production bandwidth is emerging as a limiting factor in the near term.
At the same time, policy took centre stage. Bajaj Auto’s Rajiv Bajaj delivered a rare public critique of Maharashtra’s EV policy, flagging subsidy delays and warning of a potential policy failure. The remarks added fresh urgency to debates around the sustainability of state-led EV incentives.
Global suppliers, meanwhile, are leaning in rather than pulling back. Germany’s ZF Group signalled plans to deepen partnerships and potentially double India revenue by 2030, reinforcing the country’s growing role in global automotive value chains. As Europe slows and geopolitical volatility reshapes supply chains, India is increasingly seen not as a peripheral growth story, but as a core strategic market.
Here’s the detailed round-up of all major developments from this week:
KTM AG Secures €550 mn Loan to Refinance Existing Debt With Bajaj Auto
KTM AG, a step-down subsidiary of Bajaj Auto Ltd, has secured a €550 million refinancing loan from an international banking consortium to refinance its existing debt with Bajaj Auto International Holdings B.V., according to an exchange filing.
In May 2025, Bajaj Auto International Holdings B.V. extended a €450 million loan to KTM AG to finance its restructuring plan.
The refinancing loan is unsecured, has a 5-year term, and bears interest in the low to mid-single-digit percentage range, the company said. During the loan period, KTM AG will be subject to standard market restrictions on dividend distribution.
Maharashtra EV Policy Could Be First Policy Failure in 36 Years, Says Rajiv Bajaj
Bajaj Auto Managing Director Rajiv Bajaj has raised serious concerns about the Maharashtra government's electric vehicle policy, warning it could turn out to be a rare policy failure. Speaking to CNBC-TV18, Bajaj said, "In my 36 years, I have never seen a policy failure but I am afraid that I will see it with Maharashtra government's EV policy."
In the CNBC-TV18 interview, Bajaj revealed that the company has received only a fraction of the subsidies owed by the Maharashtra government and expressed doubt that the remaining amount would ever be paid. Despite this, he maintained his broader skepticism about subsidies, saying that they "slow innovation and cushion inefficiency." He said he was glad subsidies on electric three-wheelers have ended and expressed hope that those on two-wheelers would follow suit by March.
The Maharashtra Blueprint: Scaling Toyota’s ‘Greenfield Ecosystem’ Beyond Karnataka
In the Chhatrapati Sambhajinagar of Maharashtra, a new kind of construction is beginning. It isn’t just about pouring concrete for another automotive plant; it is about seeding a skill park.
“In Maharashtra, we are coming out with a new skill park where a similar kind of institute, based on our learnings here, is going to be set up,” says Shankara G, Chief Strategy Officer and Director, EVP-Finance & Admin at Toyota Kirloskar Motor (TKM). The "learning" he refers to is a decades-long experiment in human engineering that began in Japan in 1937 and has found its most ambitious testing ground in India.
Toyota Motor Plans $19 Billion Cross-Shareholding Unwind, Sources Say
Switch Mobility to Close FY with 1,500 e-Bus Deliveries; Order Book at 2,500 Units for Next Fiscal: Dheeraj Hinduja
Finance remains the single biggest bottleneck in India’s electric mobility transition, even as battery costs continue to decline and total cost of ownership economics strengthen, according to Dheeraj Hinduja, Executive Chairman of Ashok Leyland and Chairman of Switch Mobility.
Speaking at the launch of the electric double-decker bus in Delhi, Hinduja said Switch Mobility will close the current financial year with around 1,500 electric bus deliveries, including vehicles being dispatched in March. The company will enter the next fiscal with an order book of approximately 2,500 electric buses, providing visibility for continued scale-up.
ZF Group Actively Explores More Partnerships, JVs in India
ZF Friedrichshafen AG is actively exploring partnerships and joint ventures in India as it sharpens its focus on growth markets, with Chief Executive Officer Mathias Miedreich saying collaborations will be central to expanding the group’s presence in the country.
In response to a question on the role of alliances, partnerships, and acquisitions going forward, he said: “It is extremely important because of the magnitude of the task and the number of problems to solve.”
Miedreich said India is likely to be the fastest-growing market in ZF’s global portfolio over the next five years and will play a key role in rebalancing the company’s revenue mix. “At a minimum, we aim to double our revenue in India. That is the goal,” he said.
ZF Aims to Double India Revenue by 2030; Sees India as Fastest-Growing Market
Suppliers Need Speed, Flexibility, not Rigid 10-Year Plans: ZF CEO Miedreich
Automotive suppliers must prioritise speed and flexibility over rigid long-term roadmaps as markets turn increasingly unpredictable, according to ZF Friedrichshafen AG Chief Executive Officer Mathias Miedreich. He believes that traditional decade-long planning cycles no longer work in today’s environment.
“In the automotive world, you cannot make any more long-term plans. A 10-year plan, forget about it,” Miedreich told Autocar Professional. He cited rapid shifts in geopolitics, trade policy and technology that have reshaped the industry in recent years.
BorgWarner Secures Contract to Supply Drive and Generator Modules for OEM’s REEV Trucks and SUVs
Greaves Cotton Earmarks Rs 500-700 Crore for Next Phase of Growth
Mumbai-based Greaves Cotton has committed to a capital expenditure (capex) program of Rs 500 to 700 crore over the next five years to anchor its new "Greaves Next" strategy.
The strategic reset comes at a critical juncture for the automotive components industry, which is grappling with the dual pressures of stringent emission norms and the accelerating though uneven transition to electric mobility. Greaves Cotton’s response is a multi-pronged approach that emphasizes technological IP, international expansion, and a shift from being a product-centric vendor to a comprehensive systems provider.
Yogi, Aakash Minda Discuss Manufacturing Collaboration in Tokyo After ₹522 Cr UP Land Allotment
Uttar Pradesh Chief Minister Yogi Adityanath met Aakash Minda, Executive Director of Minda Corporation Limited, in Tokyo during his official visit to Japan, weeks after the company secured a key industrial land allotment in the state.
In December 2025, the Yamuna Expressway Industrial Development Authority allotted around 23 acres in Sector 10 of the Yamuna Expressway Industrial Area to Minda Corporation for a proposed ₹522 crore automotive components manufacturing facility. The project is expected to focus on wiring harnesses and related connection systems.
Sedemac Mechatronics to Enter CV Segment
After embedding its electronics into millions of two- and three-wheelers, Pune-based Sedemac Mechatronics is now looking toward the commercial vehicle (CV) segment.
The company’s newest frontier is the development of Aftertreatment Control Modules (ACM) for heavy-duty diesel-powered commercial vehicles.
These units are essentially the conscience of a commercial engine, managing complex systems to ensure they meet stringent emission standards like India’s BS-VI. The company’s launch of an aftertreatment controller for an Indian CV maker, with series supply, is currently under validation.
IAC India Targets 15-20% CAGR Over Next 5 years; New Plants, OEM Pacts on Cards
Auto interior systems and component supplier IAC India is gearing up for its next phase of growth, with plans to diversify its customer base, expand product portfolio, scale up engineering capabilities, strengthen presence in commercial vehicle segment and enter the aftermarket segment, said a senior company official.
Over the next five years, the company expects its revenue to grow at a 15-20% compounded annual growth rate. “We continue to stay at our original target of 15-20% CAGR over the next five years,” Managing Director Sunil Koparkar said.
Power Ministry Sends CAFE-3 Norms to PMO for Approval: H D Kumaraswamy
The Ministry of Power has sent the Corporate Average Fuel Efficiency (CAFE-3) norms proposal to the Prime Minister’s Office for approval after stakeholder consultations, Heavy Industries Minister HD Kumaraswamy said on Wednesday.
The ministry held discussions with industry representatives before forwarding the proposal, he told reporters on the sidelines of an event organised by FICCI. He did not disclose whether any changes had been made to the draft issued in September, or if the same proposal, which sought relief for small cars, has been sent to the PMO.
CDEP Highlights Possible Eligibility Bias in India’s E2W PLI Scheme
India’s electric two-wheeler penetration has climbed from 0.14 percent in FY 2019–20 to 6.09 percent in FY 2024–25, reflecting what the Centre for Digital Economy Policy described as a “40x rise in E2W sales since FY 2019–20.” Presenting its analysis, CDEP said the Auto Production Linked Incentive scheme has contributed to this growth, but argued that the current eligibility design places greater emphasis on financial scale than on innovation metrics.
The Centre for Digital Economy Policy is an independent public policy think tank focused on digital economy, trade, technology and industrial policy. Dr Jaijit Bhattacharya, President, CDEP, said the objective of the study was to assess whether the Auto PLI scheme’s stated goals, boosting domestic manufacturing, strengthening competitiveness and driving exports, are being fully realised in the electric two-wheeler segment.
Don’t Lock Into Hybrids; Commit to EVs, Says Amitabh Kant
As India weighs its mobility future, Amitabh Kant, former CEO of NITI Aayog, said the country must avoid locking itself into hybrid technologies and instead commit decisively to electric vehicles, framing the EV transition as a strategic economic choice rather than merely a climate response.
Speaking at the 3rd FICCI National Conference on Electric Vehicles, Kant warned that backing intermediate technologies such as hybrids could slow India’s technological leap and risk locking the country into legacy platforms for the next 25 to 30 years. “If the world has moved from typewriters to computers, India should not hold on to typewriters,” he said, comparing internal combustion engines to outdated machines and hybrids to incremental upgrades, while describing EVs as the true transformational shift.
Govt Mandates Nationwide Sale of E20 Petrol with RON 95 From April 1
The Centre has directed oil marketing companies to sell petrol blended with up to 20 per cent ethanol across India from April 1. The fuel must meet a minimum Research Octane Number (RON) of 95.
The order was issued through a notification by the Ministry of Petroleum and Natural Gas. “The Central Government hereby directs that the oil companies shall sell Ethanol Blended Motor Spirit with a percentage of ethanol up to twenty per cent as per the Bureau of Indian Standards specifications and having a minimum Research Octane Number (RON) of 95,” the notification said.
Indonesia Postpones 105,000-Vehicle Import Plan From India, Bloomberg Reports
Indonesia has temporarily postponed a plan to import more than 100,000 vehicles from India under a state-backed rural development programme, according to a report by Bloomberg.
Citing statements from senior officials, Bloomberg reported that the Indonesian government is reassessing the proposed import of 105,000 pickup trucks and vans for the Merah Putih Village Cooperative programme, amid concerns about the potential impact on domestic industry.
Schaeffler India Sees Export Growth Moderating to 5-10% in 2026
Schaeffler India Ltd expects export growth to moderate to 5–10% in 2026 after a strong performance in 2025, as demand normalises across key global markets. The company’s exports grew by 30–35% in 2025 and will now expand at a more measured pace due to a high base and macroeconomic conditions in Europe and Asia Pacific.
“We see that the order book for 2026 is in line with last year,” said Hardevi Vazirani, Director Finance and Chief Financial Officer. “In 2025, we already saw demand coming back, but moving forward, we don’t see the same momentum of 30–35% continuing. It will moderate based on economic growth projections, specifically in Europe and Asia Pacific. We do not see that it will be more than five to ten percent.”
Schaeffler India Q4 Revenue Rises 27%
Schaeffler India To Step Up Capex to ₹500 Cr in 2026 As Utilisation Crosses 85%
JSW Motors Gets Ready for Independent Auto Venture: Launches Dealer Hunt
JSW Motors, the standalone automotive arm of the JSW Group, has officially kicked off its retail expansion in India with a striking full-page newspaper advertisement in The Economic Times, inviting dealer partners to "join the drive."
The ad, featuring a shadowy silhouette of an SUV with glowing headlights against a dramatic backdrop, signals the company's entry into the PV segment, independent of its joint venture with MG Motor India.
BKT, the ‘Off-Road King,’ Chases the Consumer Market
About 15 months ago, in the hushed, climate-controlled luxury of a five-star Mumbai hotel, three men sat down for a lunch that would effectively redraw the map for one of India’s most successful automotive tyre exporters.
On one side of the table were the promoters of Balkrishna Industries Limited (BKT): Arvind Poddar, the Chairman and Managing Director, and his son Rajiv, the Joint Managing Director. Across from them was Satish Sharma, Senior President & Director (Business Development and Strategy) a man whose core strength in the tyre industry was well-known, having recently joined from Apollo Tyres.
BKT Enters India's On-highway Tyre Market with Two-wheeler and CV Range
Why Your Next High-Paying Job Might Come with a Welding Torch
Shubhangi Sethi, the Regional Manager for India at Seabery, stood before a packed classroom at a school on Toyota’s sprawling Bengaluru campus and asked the one question most Indian parents have spent decades teaching their children to avoid: “Who in this room wants to take up welding as a profession?”
The silence was predictable. In a country where the professional hierarchy has long been topped by doctors and IT engineers, welding is often dismissed as a "blue-collar" dead end, a job characterized by heat, sparks, and low social standing. But Sethi, representing a Spanish firm at the cutting edge of industrial training, wasn’t there to talk about the smoky workshops of the past. She was there to talk about the future of the automotive components industry, where the "torch" is often a digital simulator and the "workshop" is a high-tech laboratory.
Sales Analysis
Nexon Tops February Chart for 2nd Straight Month; Punch Reinforces Tata’s SUV Lead
Tata Motors’ Nexon retained its position as India’s highest-selling passenger vehicle model in February 2026 with 19,430 units, topping the industry charts for the second consecutive month this year.
The compact SUV’s continued leadership comes amid intense competition in the segment and reflects sustained demand across both its internal combustion and electric variants. The Nexon has consistently been one of the volume anchors for Tata Motors in recent quarters, and February’s performance reinforces its central role in the company’s portfolio.
Operating at 100% Manufacturing Capacity, Ramp Up Likely From May: Maruti Suzuki
India’s largest passenger vehicle maker, Maruti Suzuki India, reported muted domestic passenger vehicle growth in February wholesales. But the automaker said the wholesale numbers reflect production constraints rather than demand weakness, as the company is operating at 100% of its manufacturing capacity.
Maruti Suzuki’s total domestic passenger vehicle wholesales rose marginally by 0.1% year-on-year to an all-time high of 161,000 units in February. The trend was similar in January as well. When asked about the muted growth, the company’s Senior Executive Officer for Marketing & Sales, Partho Banerjee, said wholesale numbers reflect factory dispatches and do not accurately indicate underlying market demand.
Exposure Not Very High in Middle East, Closely Monitoring Situation: Maruti Suzuki
Maruti Suzuki India Ltd is closely tracking developments in the Middle East amid escalating geopolitical tensions, but said its exposure to the region remains limited.
Escalating military strikes by the US and Israel on Iran have heightened concerns over potential disruptions to global trade with the Strait of Hormuz, a key shipping route for oil and other goods, being closed. Reports indicated that clearance for several containers bound for the Middle East, mostly carrying food items from India, was halted on Saturday noon.
Maruti Suzuki exceeds FY27 export target of 4 lakh units
Maruti Suzuki’s Feb Wholesales Rise 7%, Domestic PV Sales Remain Flat
Hyundai India posts record February sales, up 12.6% YoY
Mahindra SUV Domestic Sales Rise 19% in February
Mahindra & Mahindra Ltd. reported total auto sales of 97,177 vehicles in February 2026, marking an 18% year-on-year growth including exports. The company’s Utility Vehicles segment remained the primary growth driver, with domestic SUV sales reaching 60,018 units, up 19% compared to the same month last year.
Including exports, total SUV sales stood at 60,685 units for the month. Nalinikanth Gollagunta, CEO, Automotive Division, M&M Ltd., said, “February saw SUV sales of 60,018 units, a growth of 19% reflecting robust customer demand across the portfolio. Total vehicle sales stood at 97,177 units, an 18% year-on-year growth.”
Mahindra Launches XEV 9e Cineluxe Edition at ₹29.35 Lakh; Bookings Open March 2
Toyota Kirloskar posts 20% rise in total February sales
Kia India clocks record February wholesales of 27,610 units, up 10.3% YoY
Tata Motors Passenger Vehicles Reports 35% Growth in February
Tata Motors Passenger Vehicles Ltd. reported total sales of 63,331 units in February 2026, marking a 35% increase compared to 46,811 units in the same month last year.
Domestic passenger vehicle sales stood at 62,329 units, up 34% from 46,435 units in February 2025. International business (IB) sales rose sharply to 1,002 units from 376 units a year earlier, registering 167% growth.
Tata Motors Retains No. 2 in Vahaan; Market Grows 25% in Feb 2026
Renault India Reports 31% Growth in February Wholesales at 3,495 units
JSW MG Motor India Reports 24% Year-on-Year Growth in February
Hero MotoCorp Posts 44% Dispatches Growth in February 2026
Hero MotoCorp dispatched 558,216 units in February 2026, up 44% from 388,068 units in the same month a year earlier. VAHAN registration data (excluding Telangana), which captures retail-level demand, showed 458,346 registrations for the month, an 18% increase year-on-year.
The scooter segment continued to gain ground, with models including the Xoom and Destini attracting buyer interest. The 100cc–125cc motorcycle segment also contributed to overall dispatch volumes. The company dispatched 499,756 motorcycles and 58,460 scooters in February 2026, compared to 352,312 motorcycles and 35,756 scooters in February 2025.
TVS Motor Company Reports 31% Sales Growth in February 2026
Royal Enfield Sells 1,00,905 Motorcycles in February 2026; up 11%
Greaves E-Mobility 2W Sales Cross 270,000 units, Ampere Outsells Ola in February 2026
Tata Motors Posts 32% Growth in February 2026 CV Sales
Tata Motors Limited reported total commercial vehicle sales of 42,940 units in February 2026, marking a 32% year-on-year increase compared to 32,533 units sold in February 2025.
Domestic and international sales combined stood at 42,940 units during the month. Domestic sales accounted for 40,893 units, up 32.8% from 30,797 units in the same month last year. International business contributed 2,047 units, registering a 17.9% growth over 1,736 units in February 2025.
Mahindra Tractor Sales Surge 35% in February
Mahindra & Mahindra’s Farm Equipment Business reported a 35% year-on-year growth in domestic tractor sales for February 2026, selling 32,153 units compared to 23,880 units in the same month last year.
Total tractor sales, including exports, stood at 34,133 units during the month, up from 25,527 units in February 2025. Exports for the month rose 20% to 1,980 units. Veejay Nakra, President, Farm Equipment Business, Mahindra & Mahindra Ltd., said the company registered “a robust growth of 35% over last year” in the domestic market.
Maharashtra Leads India's Passenger Vehicle Sales in Q3 FY2025-26
Maharashtra accounted for 12.4% of total passenger vehicle sales across the country in the third quarter of financial year 2025-26 (October to December 2025), according to data released by the Society of Indian Automobile Manufacturers (SIAM). The state's performance placed it well ahead of the second-ranked Uttar Pradesh, which contributed 10.8% of national sales, reflecting the geographic spread of demand across both western and northern India.
Gujarat ranked third with an 8.2% share, followed by Karnataka at 7.0% and Tamil Nadu at 6.9%. The presence of three western states — Maharashtra, Gujarat, and Rajasthan — among the top ten contributors reinforces the Western Zone's position as the country's most active automobile market. The zone as a whole recorded sales of 4.21 lakh units in the quarter, the highest among all regional zones in the country.
Maharashtra Leads India's Commercial Vehicle Sales in Q3 FY2025-26
Gujarat Leads India's Three-Wheeler Sales in Q3 FY2025-26
Top 10 MPVs in First 10 Months of FY2026: Maruti Ertiga to Kia Carnival
India’s utility vehicle segment, which clocked record wholesales of 2.79 million units in FY2025, has gone past the 2.50 million sales in the first 10 months of FY2026 and should cross the 3 million milestone for the first time with ease at the end of the current fiscal.
Even as compact and midsize SUVs grab the bulk of the market, multi-purpose vehicles (MPVs) are also making their presence felt. Demand for this vehicle category is on the upswing and compared to an 11% share of UV sales in FY2025, MPV sales in the April 2025-January 2026 period are estimated to account for a 17% share of the 25,09,991 UVs sold in the past 10 months.
Video Playlist
e-Vitara India Output Fixed at 2,000/Month Till July; Nexa Expansion to 700 Studios
Maruti Suzuki Senior Executive Officer (Sales & Marketing) Partho Banerjee reveals that the company can only allocate 2,000 to 2,500 e-Vitara units per month for the Indian market until July 2025, citing production capacity constraints.
The company manufactures the e-Vitara at its Gujarat plant, which also caters to exports and OEM partner Toyota. Banerjee adds that Maruti is receiving 2,000–2,500 inquiries per day post-launch and is prioritising test drives and customer experience over aggressive sales targets.
First-time Buyers To Fuel Tata’s EV Push; Punch.ev Volumes Expected To Grow 30–50%
In this candid conversation, Vivek Srivatsa, Chief Commercial Officer at Tata Passenger Electric Mobility, explains why India’s EV adoption hinges on first-time car buyers and how Tata Motors plans to win them over.
Srivatsa tells Autocar Professional's Prerna Lidhoo about the thinking behind Punch.ev’s positioning, how it tackles battery life misconceptions and how a quick “tea break” charge can unlock up to 250 km of added range. He also outlines why Tiago.ev is being positioned as a city car, why charging infrastructure alone can’t solve adoption challenges and how Tata’s multi-fuel strategy will continue alongside EVs.
Ganesh Mani on Switch Mobility’s $1 Billion Revenue Target
Switch Mobility is aiming to cross the $1 billion revenue mark within the next five years, signalling an aggressive scale-up in India’s electric commercial vehicle market.
In a video interaction with Autocar Professional on the sidelines of the launch of Delhi’s first electric double-decker bus, Ganesh Mani, CEO, Switch Mobility and COO, Ashok Leyland, said the milestone would mean growing nearly four times from current levels.
India’s Strategic Rise for ZF Accelerates Under India–EU FTA: CEO Matthias Miedrich
India is fast emerging as a strategic growth engine for the ZF Group, and the India–EU Free Trade Agreement could further accelerate that momentum.
In this exclusive interaction with Autocar Professional, ZF Group Global CEO Matthias Miedrich outlines why India is now a prime focus region for growth, technology development, and global sourcing.
With Europe accounting for nearly 50 percent of ZF’s revenue but representing only 20 percent of the global automotive market, the company is rebalancing its growth strategy. India, backed by strong GDP growth, policy support, rising consumer demand, and new trade agreements, is positioned to play a two-fold role.
India Could Emerge Among Top 5 Markets For FEV Group As EV Transition Accelerates: Norbert W. Alt
Why is India becoming a critical growth market for global automotive engineering companies? In this conversation, Dr. Norbert W. Alt, Executive Vice President and COO of FEV Group, explains why India is central to FEV’s global strategy and how the India-EU FTA, electrification, localisation, and new technologies like range extenders are shaping that outlook.
Speaking with Autocar Professional's Features Editor Prerna Lidhoo, Dr. Alt outlines how FEV expects India to deliver strong double-digit growth, potentially entering its top five global markets in the coming years.
Diesel Still Matters As EV Adoption Remains Uneven: Pierpaolo Antonioli Of Dumarey Automotive
Why is diesel still part of the future even as EVs dominate the headlines? In this candid conversation with Autocar Professional's Prerna Lidhoo, Pierpaolo Antonioli, CTO/CEO of Dumarey Automotive Italia breaks down why clean diesel, hybrid diesels and alternative fuels remain critical, especially for India.
From the European Union–India FTA to the realities of EV affordability and the case for hybrids in trucks and CVs, Antonioli lays out a pragmatic, market-by-market strategy. He also discusses hydrogenation of diesel engines, the role of CNG and hydrogen in India and why local partnerships are essential to build a resilient ecosystem.