Trade policy, luxury-car strategy and the future of alternative fuels dominated the Indian automotive industry during the week of June 15-21, 2026.
The biggest policy development came from the India-UK Free Trade Agreement, which will take effect on July 15. Under the agreement, import duties on eligible UK-built internal-combustion-engine cars will progressively fall to as low as 10% under a quota-based system. The move is expected to improve access for British luxury-car brands while creating new export opportunities for Indian manufacturers and component suppliers.
Jaguar Land Rover also used the week to outline the next phase of its growth strategy. The luxury carmaker is targeting double-digit revenue growth over the medium term, supported by five product launches, greater powertrain flexibility and a stronger focus on North America. It has also set an FY27 revenue target of around ₹3.30 lakh crore and an EBIT margin of about 4%.
In India, MINI is banking on the larger, locally assembled Countryman to expand beyond its traditional base of compact luxury-car buyers. The brand believes the SUV can significantly widen its addressable market and support its ambition of doubling volumes.
Mercedes-Benz India, meanwhile, clarified that all its cars sold since 2019-20 are compatible with E20 petrol. However, higher ethanol blends would require fresh testing and recalibration. The carmaker also ruled out a portfolio-wide plug-in-hybrid push because of the high cost of the technology, even as it introduced the S-Class plug-in hybrid in India.
The ethanol debate extended beyond passenger cars. A real-world test of Suzuki’s Gixxer SF 250 Flex Fuel highlighted the lower running efficiency of E85 compared with E20. Industry bodies also pushed for conversion kits, greater testing of existing vehicles and a gradual transition towards blends such as E25 and E30.
The week also brought major developments in batteries, electric buses, charging infrastructure and automotive components. Reliance Industries outlined plans to expand its battery capacity to 120 GWh, JBM Ecolife secured ₹750 crore for electric-bus deployment, and the government introduced a ₹1,500 crore incentive programme for recycling critical minerals.
Here is a detailed round-up of the key developments that shaped the automotive industry during the week:
India-UK FTA to Take Effect July 15; Auto Tariffs to Fall to 10%
The India-UK Free Trade Agreement will come into force on July 15, with tariffs on British automobiles entering India set to fall from 100% to 10% under a quota, according to the UK’s Department for Business and Trade.
The agreement will give British carmakers improved access to the Indian market, while opening new export opportunities for Indian manufacturers across textiles, leather, footwear, electronics, pharmaceuticals and other sectors.
JLR Eyes Double-Digit Revenue Growth With Wider Powertrain Choice
Jaguar Land Rover is targeting double-digit revenue growth in the medium term as it broadens its powertrain choices across its brands and increases its focus on North America.
The British luxury carmaker plans to use its House of Brands strategy to serve different customer segments and diversify its sources of growth. It will also launch five products over the next two years.
JLR Chief Executive Officer P B Balaji outlined the next phase of the company’s Reimagine strategy during an investor update at its headquarters in Gaydon, UK.
JLR Targets ₹3.30 lakh crore Revenue, 4% EBIT Margin in FY27
Range Rover Electric, New Jaguar to Drive JLR’s Next Phase: PB Balaji
‘New PV Launches, Multi-Powertrain Offerings to Drive FY27 Growth’: N Chandrasekaran
Tata Motors Passenger Vehicles Ltd expects to deliver industry-leading growth in FY27, supported by a strong pipeline of new models and a broad mix of powertrains, Chairman N Chandrasekaran said.
The company will build on the sales momentum seen in the second half of FY26, while keeping a close watch on geopolitical uncertainty, commodity prices and supply-chain risks.
“We enter FY27 with confidence, supported by a robust pipeline of new launches and multi-powertrain offerings,” Chandrasekaran said in the company’s 81st Annual Report.
SUV, CNG and EV Segments to Lead Growth in FY27: Shailesh Chandra
Tata Motors Passenger Vehicles Ltd expects SUVs, compressed natural gas vehicles and electric vehicles to lead its growth in FY27, as it looks to build on record sales and stronger momentum in the second half of the previous financial year.
The company enters the new fiscal year with a pipeline of product launches and a portfolio spanning petrol, diesel, CNG and electric powertrains, Managing Director and CEO Shailesh Chandra said.
MINI Bets on SUVs to Expand Its Addressable Market in India; the New Countryman Leads Push for 2x Growth
MINI is betting that what made it distinctive in India may also have limited its growth. After more than a decade as a niche luxury brand known for its compact cars and lifestyle appeal, the British marque is repositioning itself around the larger Countryman SUV, local assembly and a wider retail footprint in an effort to reach a broader pool of buyers.
"As India's luxury car market increasingly gravitates toward larger, more practical SUVs, a bigger MINI can unlock much bigger volumes," said Hardeep Singh Brar, President and CEO, BMW Group India.
Mercedes-Benz India Line-Up E20-Compliant; Higher Blends Will Need Retesting: Iyer
Luxury carmaker Mercedes-Benz India today said all vehicles it has sold in the country since 2019-20 are E20-compatible, but have not been tested for higher ethanol blends such as E22 and above.
A move from E20 to higher blends would require the company to test and recalibrate its vehicles, Mercedes-Benz India Managing Director and CEO Santosh Iyer told Autocar Professional.
Mercedes-Benz Rules Out Portfolio-Wide PHEV Push as High Costs Limit Business Case
Mercedes-Benz Launches S-Class PHEV at ₹2.20 Crore; Deliveries to Begin in Q4
E85 Fuel Delivers Lower Running Efficiency Than E20 in Real-World Flex-Fuel Motorcycle Test
A real-world fuel-efficiency comparison conducted on Suzuki’s Gixxer SF 250 Flex Fuel Vehicle (FFV) has highlighted the trade-off between lower fuel prices and reduced energy density as India expands the rollout of E85 fuel.
The test comes shortly after the introduction of E85 petrol—containing 85 per cent ethanol and 15 per cent petrol—at select fuel stations. In Delhi, E85 is currently priced at Rs 82.12 per litre, around Rs 20 lower than E20 petrol, which remains the standard fuel available nationwide.
Ethanol Conversion Kits Should Cost No More Than Rs 15,000: ISMA DG
Ethanol conversion kits for existing petrol vehicles should cost no more than Rs 15,000 if manufactured locally, according to Deepak Ballani, Director General, Indian Sugar & Bio-energy Manufacturers Association (ISMA). The industry body has also worked with IIT Delhi to evaluate imported ethanol conversion kits on a BS4 Maruti Suzuki Swift Dzire, which Ballani said was run on E20, E85 and E100 fuels without any damage being reported during testing.
BS4 Swift Put Through 1,000 km on E100 in IIT Delhi-ISMA Study
Beyond E20: AIDA Sees E25 Leading India’s Next Ethanol Chapter
With India having achieved nationwide E20 rollout, attention is increasingly shifting to what comes next in the country’s ethanol roadmap. According to Vijendra Singh, President of the All India Distilleries Association (AIDA), E25 is likely to be the next significant milestone in India’s blending journey.
Speaking to Autocar Professional, Singh said he expects E25 to emerge before E30, although both blends could eventually coexist as vehicle manufacturers certify products for higher ethanol compatibility.
Don’t See India Ever Importing Ethanol From The US: AIDA President Vijendra Singh
RIL Sets Sights on 120 GWh Capacity Expansion Beyond Initial 40 GWh
"The first phase of our 40 GWh annual BESS and Cell Giga Factory is on track to be commissioned this year, with plans to enhance this up to 120 GWh of annual capacity", Mukesh Ambani, Chairman and Managing Director of Reliance India Ltd stated in his address during company's 49th annual general.
To put things into perspective, Ambani highlighted that in a world where supply chains are being contested and access to technology is being weaponised, building world-scale battery manufacturing capacity in India is not merely a business decision, but is a strategic imperative for national resilience.
Balkrishna Industries Appoints Saroj Kumar Khuntia as CFO
Himadri Speciality Chemical Increases Equity Stake in International Battery Company
Himadri Speciality Chemical Limited has expanded its equity footprint in the energy storage sector by increasing its stake in United States-based International Battery Company, Inc. (IBC) to 20.47 percent on a fully diluted basis. The specialty chemical manufacturer executed the transaction through an additional capital infusion of USD 0.66 million, equivalent to approximately ₹5.51 crore. Prior to this latest investment round, Himadri held a 17.29 percent stake in the technology developer following an initial aggregate investment of USD 5.43 million, which translates to roughly ₹45.32 crore.
Govt Deploys ₹1,500 Crore Recycling Incentive Scheme to Secure Localized EV Battery Materials
The Union Government has introduced a 1,500 crore rupee Critical Mineral Recycling Incentive Scheme designed to advance industrial circularity and secure localized raw material streams for the domestic electric vehicle component industry. Announced by the Ministry of Coal and Mines at the Battery Summit 2026, the fiscal framework establishes direct state support to formalize end-of-life battery deconstruction and secondary resource extraction.
Motherson Acquires Controlling Stake in Chinese Camera Systems Firm for $22.6 Mn
Samvardhana Motherson International Limited (SAMIL) has approved the acquisition of a controlling stake in Shenzhen Autocruis Technology Co., Ltd., a Chinese developer of automotive camera and vision systems, through a primary capital increase valued at CNY 153.3 million (approximately USD 22.6 million).
The transaction will be executed by SMR Automotive (Langfang) Co., Ltd., an indirect wholly-owned subsidiary of SAMIL. Upon completion of the initial investment, SMR Langfang will hold a 64.76% equity stake in the target on a fully diluted basis. Following a planned share buyback by Shenzhen Autocruis, that shareholding is expected to rise to 67.78%.
JBM Ecolife Secures ₹750 Crore Investment for E-Bus Expansion
The investment is expected to facilitate the deployment of approximately 2,000 electric buses under long-term agreements with state transport authorities. According to the company, the initiative aims to accelerate the adoption of zero-emission public transport systems while supporting national sustainability and urban mobility objectives.
Lumax Secures Rs 180 Crore Greenfuel Order Book Amidst Fuel Price Hikes
Tata Motors To Increase Commercial Vehicle Prices By Up To 2.5% From July 1
Tata Motors will increase prices across its commercial vehicle range by up to 2.5% from July 1, 2026, as the company seeks to partially offset the impact of rising commodity prices and other input costs. The increase will vary depending on the model and variant.
The price revision comes amid continued cost pressures across the automotive industry, with manufacturers facing higher raw material and operational expenses. Tata Motors said the increase is necessary to mitigate a portion of these rising costs while continuing to serve a broad range of commercial mobility applications.
Royal Enfield Begins Deliveries of Electric Flying Flea C6 in Bengaluru
Everta Eyes 10–15% Market Share, DC Charger Shipments Set for Q2
Everta is targeting a 10–15% share of India’s DC charging market over the next two years and expects to begin commercial shipments of its DC chargers in the second quarter of the current fiscal year, according to Manasvi Sharma, CEO, Everta.
In an interaction with Autocar Professional, Sharma said the company has already started proto production and is currently progressing through certification and validation processes, including approvals from the Automotive Research Association of India (ARAI).
Ampere Launches Reo VYB Electric Scooter at ₹69,499
AM/NS India Launches First Domestically Produced Premium Automotive Coated Steel
ArcelorMittal Nippon Steel India (AM/NS India) launched Zagnelis Protect on June 17, marking the first domestic production of a premium zinc-aluminium-magnesium (ZAM) coated steel brand for the automotive sector in India. The product, patented by ArcelorMittal and previously available only in European markets, was unveiled in Chennai.
The launch addresses a longstanding gap in India's automotive supply chain. An estimated 8–10% of critical automotive steel grades used in the country are currently imported, owing to their coating and metallurgical complexity.
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How MINI Is Building a Stronger India Business Through Localisation
Could The Countryman C Expand MINI's Market Beyond Its Traditional Buyers?
MINI is banking on the new Countryman C to drive its next phase of growth in India. According to Florian Kuenstner, Vice President MINI for Region China, Asia-Pacific, Eastern Europe, Middle East and Africa at BMW Group, customer demand for a larger, more practical SUV led to the development of the latest-generation Countryman. While bigger than before, the SUV retains MINI's sporty DNA and has significantly expanded the brand's addressable market.
The company believes the Countryman can help accelerate sales growth, supported by local production that reduces reliance on imports and improves competitiveness. MINI also expects demand for electrified vehicles to rise over time, positioning the brand to benefit from evolving consumer preferences and a growing premium SUV market.
How Yulu Built a Shared EV Business Around India's Gig Economy
From a simple idea inspired by China's shared mobility boom to becoming one of India's most prominent micro-mobility startups, Yulu's journey has been anything but straightforward.
In Episode 2 of Start to Scale, Autocar Professional's Prerna Lidhoo sits down with Naveen Dachuri, Co-founder and CTO of Yulu, to unpack how the company identified a massive mobility gap in India's cities, built vehicles specifically for shared use and navigated the challenges of scaling a capital-intensive business.
India Won’t Need US Ethanol Imports, Says AIDA DDG Bharati Balaji
In this exclusive conversation with Autocar Professional, Balaji discusses India’s ethanol production capacity, the growing role of maize-based ethanol, the future of E25 and E30 blends, flex-fuel vehicles, and the policy measures needed to accelerate adoption. He also explains why the industry believes domestic production can meet future demand and shares AIDA’s perspective on India’s evolving biofuel roadmap.
ISMA Sees ₹15,000 Kits Enabling Ethanol Use in BS4 Cars
Ballani reveals that ISMA imported flex-fuel conversion kits and worked with IIT Delhi to evaluate the technology on an existing passenger vehicle. According to him, the trials were successful, with the vehicle covering thousands of kilometres without any major compatibility concerns. He estimates that locally manufactured kits could eventually cost around ₹15,000, making them a potentially affordable pathway for consumers looking to adopt ethanol fuels.