Weekly News Wrap: GST shake-up, SUV bets, and Motherson’s $108 Billion Ambition

The first week of September was a defining one for India’s mobility and manufacturing ecosystem, combining sweeping policy reforms with bold corporate moves 

At the centre of the action was the GST Council’s historic restructuring of tax slabs for automobiles, slashing levies on small cars, two-and three-wheelers, commercial vehicles and farm equipment while sharply raising duties on premium motorcycles.

The move, timed ahead of the festive season, promises to reset affordability for mass-market buyers, revive rural demand, and realign the economics of India’s auto sector. Yet, the transition has also sparked friction, with car dealers warning of inventory losses and premium players staring at costlier imports.

Corporates, meanwhile, doubled down on growth bets. Maruti Suzuki unveiled Victoris, its first hybrid SUV under the Arena brand, while reaffirming its commitment to both small cars and SUVs as twin pillars of future strategy.

TVS celebrated 20 years of Apache with special editions and expansion plans, while also positioning the NTorq 150 at the heart of India’s fast-growing sporty scooter wave.

French automaker Citroën mapped out a scale-up, Stellantis executives highlighting a clear path to doubling volumes, while construction equipment leaders Ammann and Sany warned that India’s CE boom must be anchored in stronger ecosystems of scale, skills, and sustainability.

Amid these moves, auto component giant Motherson Group unveiled its audacious “Vision 2030”, targeting $108 billion in revenue by the end of the decade, a near fourfold jump from FY25 levels, anchored in diversification, acquisitions, and its “3CX10” principle of de-risking exposure. 

The week also brought a wave of global developments: Vietnam’s VinFast made its India debut, Tesla prepared to deliver its first Model Y units. Volkswagen consolidated its tech operations into its largest global digital hub in India, and Renault announced a sweeping management shake-up under its new CEO. 

The Supreme Court delivered two landmark rulings–upholding the rollout of E20 ethanol petrol despite concerns and exempting unused vehicles from motor tax–adding clarity to key regulatory debates.

Here’s the detailed round-up of all major developments this week:

INSIGHTS FROM CORPORATES

Maruti Suzuki Bets on Victoris to Expand SUV Play

Maruti Suzuki India Ltd (MSIL) has unveiled its much-anticipated mid-size SUV, Victoris, marking a bold step in its strategy to deepen its presence in India’s booming SUV market and expand exports to over 100 countries. This happens to be MSIL's first strong hybrid product to be sold via Arena dealerships.

Positioned as a flagship under the Arena channel, Victoris will complement the Nexa-sold Grand Vitara, giving Maruti Suzuki a dual offering in the mid-size SUV space — the fastest-growing and most competitive segment in the Indian passenger vehicle market.

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👉 Suzuki Japan to Channel More Exports Through India

Small Cars Are Our Core, We'll Have More Of Them In Future, Says MSIL MD

India’s largest carmaker, Maruti Suzuki Ltd (MSIL), will continue introducing new small car models even as it expands its SUV portfolio to stay competitive, senior executives said on the sidelines of the launch of the Victoris, its new mid-size SUV.

“We like small cars,” said Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India. “SUV is a big market, 55%. So we have to have products. But we believe small cars in India will continue, and we will keep introducing them, including new models. This is the base of our business.”

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SUVs Top Priority, Says Maruti CEO

Maruti Suzuki India Ltd (MSIL) has placed SUVs at the centre of its growth strategy. Managing Director and CEO Hisashi Takeuchi described them as the company’s “top priority” and stressed the need to “fix the problem quickly” of its relatively lower share in the segment.

SUVs currently account for 28 percent of Maruti Suzuki’s overall sales. The company already leads in the compact SUV segment with the Brezza and Fronx, but now wants to challenge Hyundai’s Creta in the mid-size SUV category, which makes up nearly 9 lakh units annually, or about 40 percent of the SUV market.

“The priority now has to be given to SUVs. Because if we have 20 plus models in the mid-size SUV segment and almost 20 models in the compact SUV segment, that is our priority. Now we have to fix this problem quickly,” Takeuchi said.

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Motherson charts  $108 billion Vision 2030, targets 33% CAGR through diversification and acquisitions

Auto component major Motherson Group, has unveiled an ambitious "Vision 2030" plan, targeting a staggering $108 billion in gross revenues by fiscal year 2030. This aspirational goal, shared during a recent analyst meet, marks a significant leap from its $25.7 billion revenue in FY25, projecting a robust 33% Compound Annual Growth Rate (CAGR) over the period.

The strategy hinges on aggressive diversification and strategic acquisitions, positioning Motherson not just as an automotive component supplier, but as a multi-industry player navigating the complexities of modern manufacturing.

The company management, while highlighting the Vision 2030 indicated it as an effort to fortify diversification through its "3CX10" principle, ensuring that no single country, customer, or component contributes more than 10% of total revenues. 

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TVS Apache Turns 20, Eyes Premium and Global Push

TVS Motor Company marked a landmark moment on Saturday as its Apache brand completed 20 years, a milestone few Indian motorcycle brands have achieved.

From its debut in 2005 as a track-inspired street bike to becoming a global name with over 6.5 million riders across 80 countries, Apache today stands as a symbol of performance and racing.

"It's rare to see a brand sustain momentum over two decades. Apache has evolved into a global phenomenon and proudly reflects its Indian origins," said Gaurav Gupta, President, India two-wheeler business, TVS Motor.

To celebrate 20 years of the Apache brand, the company launched special anniversary editions of its RTR and RR series, alongside upgraded 4V variants of the RTR 160 and 200.

Looking ahead, TVS sees Apache entering its third decade with renewed confidence and potential entry into higher-capacity segments. The company also sees fresh tailwinds at home, with GST reforms expected to boost demand during what could be one of the most buoyant festive seasons in recent years.

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TVS Motor Bets on NTorq 150 to Ride the Sporty Scooter Wave

TVS Motor Company is sharpening its focus on the performance-oriented scooter segment, one of the fastest-growing categories in India’s two-wheeler market.

With scooters increasingly becoming the vehicle of choice for younger, urban riders, the company sees sporty scooters as a long-term growth engine that will not only strengthen its leadership in the segment but also draw buyers from other segments.

“Two-wheeler industry over the last three years has a CAGR of 2%, scooters has a CAGR of 6% and sporty scooter has a CAGR of 11%, so scooters grew at 3x the rate of two-wheeler and sporty scooter grew at 2x the rate of scooters,” said Aniruddha Haldar, SVP, Head of Commuter & EV Business and Corporate Brand & Media.

“The sporty scooter industry has been a significant presence driving growth for the scooter industry and two-wheelers overall. Hence, our focus on space is warranted.”

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Citroën Targets 2,000 Monthly Sales in India, Plans to Double Volumes in FY26

Stellantis has sharpened its ambitions for Citroën in India, setting an immediate milestone of crossing 2,000 units in monthly sales while targeting a doubling of volumes by the end of FY26.

The French brand, which entered India just a few years ago, believes its growing product portfolio, expanding retail footprint, and localised marketing efforts have now created the right environment to scale up in one of the world's most competitive car markets.

"At this point, the heroes are set up, the environment is created, and it is time for customers to experience the brand," said Shailesh Hazela, Managing Director and CEO, Stellantis India. "Our immediate milestone is 2,000 sales a month. Once we cross that, growth momentum will follow."

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Local Price, Global Quality: CASE Bets on India for Growth

CASE Construction Equipment, a subsidiary of CNH Industrial Group, is positioning India as a critical hub for both domestic sales and the global scale. The company, which manufactures excavators, loaders, compaction rollers, and other machinery, is using its Pithampur facility not just to serve local customers but to supply machines globally.

Puneet Kumar Vidyarthi, Head of Brand Marketing, APAC and India said, “There are months where the number of machines exported are more than what we have sold in the domestic markets. What it brings to the table is scale and the confidence of our global customers, which starts from our internal teams as well,” he said.

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India Must Build Its Own Ecosystem for Construction Equipment: Ammann India’s Sundaresan

The Indian construction equipment (CE) industry has been on a remarkable growth trajectory over the last few years barring an odd blip, but Anand Sundaresan, Director of Ammann India Pvt Ltd, believes the foundations are not yet strong enough to sustain the journey. He pointed out that while industry volumes are rising, systemic gaps remain.

“If you include unorganised players in concreting and asphalt equipment, India’s construction equipment industry produced and sold nearly 150,000 units last year. That is a big number, but still only a step towards the $25 billion target by 2030,” Sundaresan said at Autocar Professional’s Construction Equipment Inner Circle, a CXO Roundtable hosted by ZF Group.

For him, the real challenge is not in selling more equipment but in creating the industrial backbone that makes such growth self-sustaining.

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Building Scale, Skills and Sustainability Key to CE Industry Growth: Sany India’s Jain

The Indian construction equipment industry has been charting an ambitious growth course, but sustaining that momentum will depend on more than just rising demand. For Sany India’s Kapil Jain, the answers lie in scale, skill-building, and a cultural shift towards accountability in both manufacturing and consumption.

Speaking at Autocar Professional’s Construction Equipment Inner Circle, a CXO Roundtable hosted by ZF Group, Jain–Head of Key Account Business and Business unit Head, Access Business–drew on Sany’s own experience of setting up shop in India to make a larger case for how the sector can evolve.

Jain said that global peers offered both inspiration and cautionary tales. European and Japanese majors, he observed, struggled to sustain operations in India, weighed down by the market’s sensitivity to costs and its unique operating conditions.

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3M bets big on aftermarket car care in India

The Indian automotive aftermarket has undergone a quiet but significant transformation in the past decade. What was once dominated by Teflon coatings and basic wax polishes is today seeing strong demand for advanced chemical treatments such as ceramic and graphene coatings, paint protection films (PPF), and increasingly sophisticated detailing solutions.

Few companies have had a ringside view of this evolution like 3M India, which has been synonymous with car care for more than two decades.

In an exclusive interaction with Autocar Professional, Amlendukumar Singh, Vice President, 3M India, said that the shift is driven by an increasingly informed and aspirational customer base.

“People today research extensively before purchasing a car and accessories. They come prepared, knowing what they want even before stepping into a store. This helps us because our legacy, reach, and assurance resonate with such customers,” he adds.

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OTHER UPDATES

Tata Motors Reports Global IT Security Incident at JLR Operations

Tata Motors Limited has disclosed a significant IT security incident affecting its UK-based subsidiary Jaguar Land Rover Automotive Plc (JLR), according to a regulatory filing made with Indian stock exchanges on Sunday.

The disclosure contained a brief statement from JLR: "We are working at pace to resolve global IT issues impacting our business. We will provide an update as appropriate in due course." The company has not provided specific details about the nature or scope of the incident.

JLR operates a complex global IT infrastructure spanning 128 sites worldwide. The company has undergone significant digital transformation through strategic partnerships within the Tata Group ecosystem.

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VinFast Kicks Off India Journey with VF6 and VF7; Prices Start at ₹16.49 Lakh

Vietnamese conglomerate Vingroup’s car brand, VinFast, has officially entered the Indian market with the launch of its VF6 and VF7 electric SUVs at introductory prices of ₹16,49,000 for the VF6 and ₹20,89,000 for the VF7.

Vietnam’s biggest car brand, with a 36% market share, says India is an essential market for its global expansion. “This is a milestone in our extraordinary journey of belief—that premium e-mobility should be accessible to everyone,” said Pham Sanh Chau, CEO of VinFast Asia.

“For us, India is not just another market, but essential to our mission. With its scale, India can lead the global electric revolution.”

Both models come with a 10-year / 2 lakh km warranty on the vehicle and battery pack, free charging until July 2028, and three years of free maintenance, to woo Indian buyers.

VinFast emphasized that its India strategy goes beyond simply selling cars. “We have a customer-first approach, which involves adapting to local norms and expectations. We will also focus on building a robust charging and after-sales infrastructure,” he adds. The company plans to expand into 27 major cities with 35 showrooms by end-2025.

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Tesla Model Y India deliveries to commence this month

Tesla has gathered 600 bookings of the Model Y in India since sales commenced in mid-July. The first batch of cars, shipped from the company’s Shanghai factory, is scheduled to arrive in early September, with deliveries initially limited to Mumbai, Delhi, Pune, and Gurugram according to Bloomberg.

According to people familiar with the matter, Tesla plans to deliver between 350 and 500 units this year, well short of its original target of fully utilising its 2,500-car annual quota.

The delivery schedule is being aligned with confirmed full payments and the company’s ability to service customers beyond its current four-city footprint.

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Volkswagen Group Consolidates Indian Tech Operations Under Single Entity

Volkswagen Group announced the consolidation of its Indian technology operations under the newly renamed "Volkswagen Group Digital Solutions [India]" on September 2, 2025. The strategic move brings together the company's diverse tech teams under a single organizational structure, marking a significant step in the automaker's global digitalization strategy.

The consolidation affects over 3,800 technology professionals across multiple Indian locations, making the country Volkswagen Group's largest digital partner globally.

The unified entity will work alongside the company's established IT hubs in Germany and Portugal as part of what the group calls its "One Strong Global Network" vision.

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Renault Group revamps Management Structure

Renault Group has announced a reorganization of its executive leadership structure, marking the first strategic move by new CEO François Provost since his appointment on July 31. The changes affect positions across the company's operations, from brand management to engineering and procurement.

The most notable change involves the creation of a Chief Growth Officer position, filled by Fabrice Cambolive, who will retain his role as CEO of the Renault brand.

In this expanded capacity, Cambolive will oversee both the Renault and Dacia brands, aiming to create synergies while maintaining distinct brand identities at the national sales company level.

Moreover, the appointment represents a shift toward unified brand management while preserving individual market positioning. Cambolive will also spearhead Renault Group's international expansion efforts, with particular focus on growth markets in India, Latin America, and Korea.

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Government Approves ₹1,500 Crore Scheme to Boost Critical Mineral Recycling

The Union Cabinet has approved a ₹1,500 crore incentive scheme to develop domestic recycling capacity for critical minerals from secondary sources, marking a significant step toward supply chain resilience in strategic materials.

The scheme, running from FY 2025-26 to FY 2030-31, forms part of the National Critical Mineral Mission (NCMM) and addresses the immediate need for critical mineral supply while long-term mining operations mature. Prime Minister Narendra Modi chaired the cabinet meeting that greenlit the initiative.

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Supreme Court Dismisses PIL Against E20 Petrol Implementation

India's Supreme Court today dismissed a public interest litigation challenging the nationwide rollout of 20% ethanol-blended petrol, dealing a decisive blow to critics who argued that millions of motorists were being forced to use fuel incompatible with their vehicles.

The ruling by Chief Justice B.R. Gavai and Justice K. Vinod Chandran effectively validates the government's ambitious ethanol blending programme amid fierce debate over vehicle compatibility and consumer choice.

The PIL, filed by advocate Akshay Malhotra, sought to compel the Ministry of Petroleum and Natural Gas to ensure ethanol-free petrol remained available at fuel stations across India.

Senior Counsel Shadan Farasat, representing the petitioner, argued that consumers lacked choice and that many vehicles, particularly those manufactured before April 2023, were not designed for high ethanol blends, risking engine damage and reduced mileage.

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No Motor Vehicle Tax If Vehicle Not Used or Kept for Use in Public Place: SC

The Supreme Court has ruled that owners cannot be compelled to pay motor vehicle tax if their vehicles are not used in or kept for use in a “public place.”

According to media reports, the Court emphasized that the levy is compensatory in nature and directly tied to the benefit of public infrastructure such as roads and highways.

The ruling came in an appeal arising from an Andhra Pradesh High Court order, reported LiveLaw and other legal news outlets. A Division Bench of Justice Manoj Misra and Justice Ujjal Bhuyan observed that the legislature had consciously used the term “public place” in Section 3 of the Andhra Pradesh Motor Vehicle Taxation Act, 1963.

“If a motor vehicle is not used in a public place or not kept for such use, then the person concerned is not deriving benefit from the public infrastructure; therefore, he should not be burdened with tax for that period,” the judges held, as cited in reports.

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Two-Wheelers Ride Festive Momentum as Carmakers Stall in August

The Indian automobile market in August 2025 told two very different stories. Passenger vehicle makers stumbled badly, reporting rare synchronized declines, while two-wheeler manufacturers surged ahead, setting new sales records and milestones on the back of the early festive season.

Maruti Suzuki, Hyundai Motor India, Mahindra & Mahindra, and Tata Motors all saw shipments contract between six and twelve percent compared to a year earlier.

This downturn came despite Onam and Ganesh Chaturthi arriving earlier than usual, typically a reliable spark for showroom footfalls. Instead, the timing clashed with policy speculation. From mid-August, expectations spread that the government was weighing a cut in GST rates on automobiles from 28 percent to 18 percent. 

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Tractor Industry Expected to Grow 4-7% in FY2026

India's tractor industry is projected to maintain growth momentum with volumes expected to rise 4-7% in FY2026, driven by favourable monsoon conditions and positive farm sentiments, according to ICRA's latest assessment.

The growth forecast comes as the industry seeks to build on a mixed FY2025 performance. The Indian tractor industry witnessed a marginal decline of 1% in overall sales during FY2025, though recent months have shown strong recovery with July 2025 recording wholesale volumes increasing 8.0% year-on-year and retail volumes climbing 11.0% year-on-year.

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GST REFORMS 

GST on Small Cars, Motorcycles Slashed to 18% from 28%

The government on Wednesday announced sharp cuts in Goods and Services Tax (GST) rates across a wide swath of vehicles and equipment in a bid to spur demand.

GST on small cars, motorcycles up to 350cc, three-wheelers, buses, trucks, and ambulances has been reduced to 18% from 28%, Finance Minister and GST Council Chairperson Nirmala Sitharaman said after the 56th GST Council meeting. The new rates will take effect from September 22.

For the auto components sector, the Council also decided to introduce a uniform GST rate of 18% on all auto parts, irrespective of their HS codes. The agriculture sector, too, will benefit from lower levies. 

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👉 Three-Wheeler GST Reduced

👉 CV Industry to Benefit

Small SUV prices could go down by Rs 68,000-Rs 1.49 lakh, hatchbacks cheaper by Rs 47,000-Rs 1.38 lakh

Small car and SUV buyers are set to benefit from the Indian government’s latest “next-gen” GST reforms, which introduce a heavily reduced 18 percent GST slab on cars and SUVs measuring under four metres in length and powered by engines smaller than 1,200cc.

This change directly impacts some of the most popular compact SUVs in the market, such as the Mahindra XUV300 and Tata Nexon, which now qualify for the lower tax rate. For prospective buyers who were deferring their new car purchase, this translates into significant price cuts and improved affordability.

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FADA Warns of Rs 2,500-Crore Hit to Car Dealers from Cess Paid on Festive Inventory

India’s automobile dealers have sounded the alarm over a looming Rs 2,500-crore blow from cess already paid on festive season passenger vehicle inventory, warning that blocked credits could leave many retailers strapped for working capital.

The warning comes days after the Goods and Services Tax (GST) Council, chaired by Finance Minister Nirmala Sitharaman, slashed GST rates on small cars, two-wheelers up to 350cc, and other vehicles to 18% from 28%, while also scrapping the associated cess from September 22.

“While the recent GST cut is a fantastic initiative, the one big challenge for the auto retail fraternity is the cess amount on already bought inventory,” said Saharsh Damani, CEO, Federation of Automobile Dealers Associations (FADA).

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GST on 350cc-Plus Motorcycles Hiked to 40% from 28%

The Goods and Services Tax (GST) Council on Wednesday approved an increase in levies on high-capacity motorcycles, raising the tax rate on two-wheelers above 350cc engine capacity to 40% from 28%. The new rates will come into force on September 22.

“Mid-size and large cars, motorcycles of engine capacity exceeding 350cc, aircraft, airplanes for personal use… are all under 40%,” Finance Minister and GST Council Chairperson Nirmala Sitharaman said after the 56th Council meeting.

The move is significant for India’s premium motorcycle segment, which, though relatively niche in volume terms, has been expanding steadily with the rise of aspirational buyers. This category is dominated by Royal Enfield, Triumph, KTM, Harley-Davidson and others.

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GST on Tractors and Tractor Parts Cut to 5% 

The GST Council on Wednesday reduced the tax rate on tractors and farm machinery from 12% to 5%, marking a 7 percentage point drop aimed at lowering costs for farmers and boosting rural mechanisation.

Tractors (except road tractors used for pulling semi-trailers and having engine capacity over 1800 cc) are taxed at 5% GST. However, road tractors used for semi-trailers, with engine capacity over 1800 cc, are taxed at 18% GST. Earlier, this rate was 28%, so it has been reduced.

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EXPLAINERS

Lifting Sugar Ethanol Barriers: What It Means for India's Auto Industry

The Central government has lifted all restrictions on ethanol production from sugarcane sources for the 2025-26 Ethanol Supply Year (ESY), a move set to bolster fuel supplies amid the country's ambitious ethanol blending targets with petrol.

This policy shift, detailed in a recent notification, could push up  the automotive fuel landscape by ensuring abundant ethanol for petrol mixes, though it raises questions about vehicle performance and industry adaptations

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How India’s New GST Slabs Reshape Road Freight Economics

India’s revamp of the Goods and Services Tax (GST) regime with three uniform slabs of 5%, 18% and 40% is expected to alter cost structures across the logistics sector, according to a note from Crisil Intelligence. 

The biggest relief has come for exporters, with the tax on multimodal logistics services cut to 5% from 12%. This will directly bring down operational costs for companies moving goods through multiple modes of transport, Crisil Intelligence stated in its impact report released on Thursday, sectors reliant on international trade such as from automotive suppliers  are expected to see tangible savings on freight bills.

Third-party insurance on goods carriages will also become less burdensome, with the GST rate reduced to 5% from 12%.  This will translate into lower operating costs for transporters, particularly in an environment where fuel and financing overheads remain elevated.

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What Ashok Leyland’s Long-Term Battery Deal Means for India’s EV Supply Chain

Ashok Leyland, India’s second-largest commercial vehicle maker, has announced a Rs 5,000 crore investment over the next 7–10 years to manufacture next-generation batteries for both automotive and energy storage applications in partnership with China’s CALB Group, one of the world's leading battery technology companies.

This exclusive long-term collaboration comes as India-China relations improve, creating opportunities for technological knowledge transfer and local manufacturing.

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