India's automotive industry witnessed a week of strong festive demand, major investment announcements, regulatory developments and corporate earnings between October 19 and 25.
Vehicle registrations rose during the festive period, with Maruti Suzuki reporting a 35% increase in retail sales between Ganesh Chaturthi and Dussehra. Tata Motors projected double-digit growth for the commercial vehicle industry in FY27, while also reporting a sharp improvement in its September-quarter earnings.
In the passenger vehicle segment, Citroen is evaluating India as a manufacturing base for its upcoming 2CV electric hatchback, while future Jeep models for the Indian market could draw on Stellantis' Chinese joint venture with Dongfeng. JLR India also outlined plans to introduce four electric models and reintroduce Jaguar next year.
In the auto component sector, Balkrishna Industries (BKT) and Pirelli announced plans for a passenger car tyre joint venture, Steel Strips Wheels approved a Rs 1,400 crore manufacturing facility, and JK Tyre indicated further price increases amid rising input costs.
The government also proposed mandatory emergency braking systems for passenger vehicles, while new rear-impact safety requirements are set to take effect from 2029.
Meanwhile, Ultraviolette introduced a new electric motorcycle platform, Honda confirmed plans to manufacture its CB500 engine in India, and Tata Passenger Electric Mobility expanded its fast-charging network.
Market and Regulation
Festive Vehicle Retail Sales Cross 11.23 Lakh Units During Navratri
Registrations increased 26.76% compared with the corresponding 10-day period in 2024, although they were 6.52% lower than the 11-day Navratri period in 2025. The difference in festival duration affected the annual comparison.
Two-wheeler registrations rose 32.41% compared with 2024, while passenger vehicle registrations increased 10.39%.
Maruti Suzuki Festive Retail Sales Rise 35%, SUV Sales Double
Small-car retail sales increased around 16%, while SUV sales doubled during the period. The company also reported that pending bookings rose from approximately 2 lakh units at the beginning of October to 2.7 lakh units after Dussehra. Maruti Suzuki expects double-digit retail growth for the overall festive period through Diwali.
Centre Proposes Mandatory Emergency Braking for Cars From 2032
The proposed technology can automatically apply brakes to prevent or reduce the severity of collisions. The notification also outlines requirements for steering assistance and lane-keeping systems.
Separately, new cars manufactured from April 2029 will have to meet rear-impact safety requirements covering fuel leakage in conventional vehicles and battery protection in EVs.
Read the AEBS proposal and rear-impact safety requirements.
Compact SUV Sales Cross 8 Lakh Units in H1 FY27
Tata Motors led the segment with a 29% share, supported by the Punch and Nexon. The ten highest-selling compact SUVs collectively accounted for 7,27,773 units, or around 89% of total segment volumes.
Passenger Vehicle Strategy and New Products
Citroen Evaluates India Production for 2CV Electric Hatchback
The proposal comes as parent company Stellantis plans to invest another Rs 4,000 crore in India over the next three years. The company's Thiruvallur plant in Tamil Nadu already manufactures the C3, eC3, Aircross and Basalt with localisation exceeding 95%. India production could help Stellantis compete with low-cost Chinese electric vehicles in Europe.
Future Jeep Models for India Could Come From Dongfeng Venture
Jeep plans to introduce four new models and one updated model in India by 2030. The upcoming C- and D-segment SUVs are considered the most likely candidates to draw on the Dongfeng Peugeot Citroen Automobile joint venture.
Stellantis and Dongfeng signed an agreement in May for a project valued at more than 8 billion yuan to manufacture new-energy vehicles in China. The potential India-bound Jeeps could be locally manufactured, although their final powertrain configurations and sourcing arrangements have not been confirmed.
JLR India Plans Four Electric Models, Jaguar Comeback in 2027
The planned electric portfolio includes the Range Rover Electric, Range Rover Sport Electric, an all-electric Range Rover GT and Jaguar's Type 01. The launches form part of JLR's strategy to expand its presence in India's luxury electric vehicle market.
The company is also shifting towards higher-value vehicles, with Defender, Range Rover and Range Rover Sport accounting for more than 80% of its sales mix. Despite a 2% decline in retail sales in FY26, JLR India's revenue increased around 14%.
Maruti Suzuki Introduces Victoris Aurum Edition
The edition includes cosmetic upgrades such as copper-coloured inserts, chrome accessories and interior accessories.
The automaker said the Victoris had become the fastest-selling passenger vehicle in India to cross the one lakh and 1.5 lakh sales milestones.
The launch came ahead of the final phase of the festive season, as manufacturers sought to sustain showroom demand.
Commercial Vehicles and Corporate Earnings
Tata Motors Expects Double-Digit CV Industry Growth in FY27
In the September quarter, the company's consolidated net profit stood at Rs 1,254 crore, compared with a loss of Rs 867 crore a year earlier. Revenue from operations increased 36% to Rs 25,338 crore, supported by higher domestic and export volumes.
The company’s wholesale volumes increased 42% year-on-year to 1,35,100 units during the quarter. However, rising prices of steel, rubber, tyres and non-ferrous metals continued to put pressure on profitability. Tata Motors said commodity inflation had an adverse impact of around 540 basis points on margins compared with the year-earlier period.
Read the earnings report and management's industry outlook.
Tata Motors Rules Out Further Increase in Iveco Offer
The automaker had voluntarily increased its offer by €0.30 per share on October 9 to compensate investors for delays in securing regulatory approvals.
Management expressed confidence in achieving the required 80% shareholder acceptance threshold. Subject to successful completion, settlement is scheduled for October 30, with financial consolidation expected to begin in the third quarter of FY27.
Mahindra Finance Q2 Profit Rises 55% as PV Disbursements Grow 28%
Passenger vehicle disbursements increased 28% during the quarter, accounting for 41% of total disbursements of Rs 16,499 crore. Overall disbursements grew 22%, while standalone assets under management rose 15%.
On a consolidated basis, the company's profit after tax increased 61% to Rs 911 crore. However, management indicated that funding costs could rise in the coming quarters.
Mahindra Finance Flags Softer Tractor Demand, Drought Risks
Chief Executive Raul Rebello said early trends during Navratri suggested tractor demand may have declined compared with the previous year, although the comparison was affected by a high base.
The company is also monitoring drought-related risks, particularly in Maharashtra, where collection teams are assessing possible financial stress among borrowers. With half-yearly agricultural loan repayments falling due in the coming months, the company expects a clearer picture of rural repayment capacity.
Investments and Auto Components
BKT, Pirelli Plan 50:50 Passenger Car Tyre Joint Venture
The proposed joint venture will manufacture tyres under the respective brands of both companies, with a new plant planned in India. Incorporation is targeted by December 31, 2030, subject to specified conditions and execution of definitive agreements.
Under an interim arrangement, BKT will manufacture Pirelli-branded passenger car tyres at its existing facility in Bhuj, Gujarat. The partnership marks an important step in BKT's expansion beyond its established off-highway tyre business.
Read the joint venture announcement and BKT's passenger tyre strategy.
JK Tyre Plans Another 4-5% Price Increase in Q3
The proposed increase follows cumulative price hikes of around 11-12% during the first half of the financial year.
In the September quarter, the company reported consolidated revenue of Rs 4,850 crore, up 20% year-on-year, while net profit stood at Rs 60 crore. Domestic OEM sales increased 65% and overall domestic sales rose 32%, reflecting strong demand despite input cost pressures.
Read the price hike story and quarterly earnings report.
Steel Strips Wheels Approves Rs 1,400 Crore Maharashtra Plant
The proposed facility will have an initial annual capacity of 13 lakh alloy wheels and 25 lakh steel wheels, along with a hot-stamping line for passenger vehicle structural components.
Separately, Lumax Auto Technologies announced plans to invest around Rs 150 crore in a mechatronics manufacturing plant at Manesar, Haryana, to expand its electronic component manufacturing operations.
Read the Steel Strips Wheels story and Lumax investment announcement.
Tsuyo Partners With China's LvKON for Electric CV Powertrains
Tsuyo is also planning a 24-acre greenfield facility for electric powertrain engineering, assembly, testing and product development.
Separately, Switch Mobility and Purple Bus deployed the first six electric intercity coaches from a 50-bus order on the Nagpur-Chandrapur route in Maharashtra.
Read the Tsuyo partnership story and Switch Mobility deployment.
HORIBA Sees EV Semiconductor Opportunity, Flags Supply Chain Gaps
HORIBA India President Rajeev Gautam said access to raw materials, supply-chain localisation and skilled manpower would be critical to developing India's semiconductor manufacturing ecosystem.
He identified dependence on China for raw materials as a key challenge, noting that India needs to strengthen domestic capabilities in material sourcing, processing and purification. HORIBA supplies precision equipment used in semiconductor manufacturing rather than manufacturing chips itself.
European Automakers Turn to India for Full-Vehicle Engineering
Tata Technologies recently secured a $138 million full-vehicle engineering contract from a European luxury automaker covering two vehicle programmes, from initial concept to launch, over approximately two-and-a-half years.
Tata Technologies CEO and Managing Director Warren Harris said Western automakers are reassessing their engineering strategies amid growing competition from Chinese manufacturers. The trend reflects a shift from outsourcing individual engineering tasks to assigning complete vehicle development responsibility to technology partners.
Electric Vehicles
Ultraviolette Launches X-47 Venom, Plans Four New Products
The motorcycle comes with an 11 kWh battery offering a claimed IDC range of up to 343 km on a single charge. Deliveries are scheduled to begin in November 2026.
Ultraviolette also announced plans to introduce four products based on its 100V architecture over the next 12 months, expanding its portfolio across motorcycles and scooters. The company is preparing to introduce its Tesseract electric scooter and Shockwave motorcycle in the first quarter of 2027.
Read the X-47 Venom launch story and future product plans.
Tata Motors EV Charging Network Crosses 1,000 Fast-Charging Points
The expansion comes as automakers and charging companies work to improve access to charging infrastructure and address range-related concerns among electric vehicle buyers.
Two-Wheelers
Honda Confirms India Production of CB500 Engine
The company is also preparing additional product launches in India during 2027 and evaluating opportunities to manufacture other motorcycles from its global portfolio domestically.
HMSI separately indicated that it intends to retain its existing 60:40 scooter-to-motorcycle sales mix as it works towards annual sales of around six million units.
Read the CB500 localisation story and Honda's sales strategy.
Corporate Developments
Schaeffler India CEO Gets Interim Relief in Factory Accident Case
The police subsequently dropped the non-bailable charge against Kadam, and he was released on a bail bond on October 22.
On October 23, the Bombay High Court stayed further investigative proceedings against him pending further orders. Schaeffler India maintained that its business operations were continuing normally.