Growth, innovation, and global ambitions shaped India’s auto industry last week, with Mahindra unveiling a global SUV platform, Ashok Leyland targeting record exports, Piaggio and Omega Seiki announcing bold EV investments, and more.
17 Aug 2025 | 7207 Views | By Darshan Nakhwa
The week of August 11-17, 2025, was packed with major developments that underscored the Indian auto industry’s growing global stature and its rapid pivot towards electrification and technology.
Leading the headlines, Mahindra & Mahindra unveiled its NU_IQ global SUV platform, designed to underpin its next generation of models as ...
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The week of August 11-17, 2025, was packed with major developments that underscored the Indian auto industry’s growing global stature and its rapid pivot towards electrification and technology.
Leading the headlines, Mahindra & Mahindra unveiled its NU_IQ global SUV platform, designed to underpin its next generation of models as it eyes disruption not just in India but across international markets.
Ashok Leyland, meanwhile, sharpened its global play — approving investments of over Rs 300 crore in subsidiaries while projecting record exports in FY26 and a double-digit jump in defense revenues backed by a Rs 1,000+ crore order book.
On the electrification front, Piaggio Vehicles announced the development of a lightweight three-wheeler architecture, while Omega Seiki Mobility committed $25 million for a new EV assembly plant in Dubai.
The industry also got a strong policy and technology boost as the Union Cabinet cleared four new semiconductor projects worth Rs 4,600 crore, adding to the country’s electronics and EV value chain.
Supplier ecosystem moves were equally significant–Motherson Group said US tariffs won’t materially impact operations, while Pavna Industries struck a JV with Taiwan’s SmartChip for electronic locks and EV components.
Here’s the detailed round-up of all major developments this week:
Mahindra Launches ‘NU IQ’ Global SUV Platform, Targets Mainstream Disruption
“For us to be able to do that, we are looking at putting together a brand-new platform built to totally new standards in terms of performance, built on innovation which is borne out of our design centers in the UK and crafted and brought to life in MRV and infused with intelligence which will showcase each and every product coming out of this platform,” said Nalinikanth Gollagunta, CEO – Auto Sector, Mahindra & Mahindra.
Positioning NU_IQ as the foundation for Mahindra’s global ambitions, Gollagunta stressed the company’s intent to go beyond incremental improvements. “We are going to be doing that by pushing the boundaries of what’s possible,” he said.
👉 Know more about the platform
👉 Here’s all you need to know about Mahindra’s NU_IQ based SUVs
Can Mahindra’s NU_IQ Architecture Redefine SUVs?
Developed at Mahindra Research Valley with design input from its UK centres, the architecture represents a step-change in how the automaker intends to compete in both domestic and international markets. The first SUVs based on the NU_IQ platform are expected from 2027.
According to Velusamy R, President of Automotive Technology & Product Development at M&M, NU_IQ has been designed with a clear focus on customer comfort.
The platform offers a seating height of 1563 mm for a commanding road view, while its 2665 mm wheelbase provides generous cabin space. Rear passengers benefit from 937 mm of legroom—putting it ahead of most rivals in its class. Mahindra has also engineered a 15% increase in luggage capacity compared with global benchmarks, underlining its aim to balance practicality with comfort.
Mahindra’s SUV Surge Fuels Bold Global Ambitions Under Vision 2027 Roadmap
Rajesh Jejurikar, Executive Director, linked Mahindra’s success to a focus on “authentic SUVs” and a disciplined brand purpose, first defined in 2020 during the company’s customary Independence Day unveil in Mumbai.
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👉 Know more about Vision 2027
Mahindra to Boost Chakan Capacity by 2.4 Lakh Units
The company will add 2.4 lakh units of annual capacity at its Chakan facility, dedicated to the NU_IQ-based New Flexible Architecture (NFA). This brownfield expansion will raise Chakan’s output to about 7.5–7.6 lakh units annually, with some commercial vehicle production being shifted to other plants.
In addition, Mahindra’s Nashik plant contributes 2.5–3 lakh units annually, providing a strong second pillar of production.
Mahindra to Export NU_IQ based SUVs to South Africa, Australia in Phase 1
The platform will support petrol, diesel, and electric SUVs, with the first product launch slated for 2027. At its Independence Day event, Mahindra also unveiled four new concept SUVs—Vision.S, Vision.X, Vision.T, and Vision.SXT—based on NU_IQ.
Outlining the export strategy, Nalinikanth Gollagunta, CEO of Automotive Division, M&M and ED of Mahindra Electric Automobile Ltd., said:
“The first phase for us is taking NU_IQ SUVs to markets we already play in. That would be South Africa and Australia. Phase two will be driven by the UK, where it will be EV-first. Phase three will see a broader global pickup.”
Tata Motors to Re-Enter South Africa’s Car Market
Tata Motors Passenger Vehicles has appointed Motus Holdings Ltd, South Africa’s leading passenger vehicle retailer, as its exclusive distributor. The automaker will also focus on local value creation, supporting employment across sales, service, parts distribution, and technician training.
What Government Says on Concerns About Impact of E20 Fuel on Mileage, Engine
Amid fears and reports of “drastic” mileage to concerns over engine wear, corrosion, and warranties, the government has issued a clarification stating that any claims of drastic reduction in efficiency are “misplaced” and any decrease in mileage in older vehicles running on E20 fuel has been "marginal, if at all."
“Extensive discussions have been carried out with the Society of Indian Automobile Manufacturers (SIAM) as well as prominent manufacturers of vehicles. The efficiency drop (if any) in E10 vehicles has been marginal. For some manufacturers, vehicles have been E20 compatible from as far back as 2009. The question of any drop in fuel efficiency in such vehicles does not arise,” the Ministry of Petroleum and Natural Gas said on Tuesday.
Mercedes-Benz India Fully E20-Ready Since 2018
CEO Santosh Iyer said the company engineered its vehicles for ethanol compatibility well ahead of policy timelines, ensuring no impact on performance or durability. Mercedes-Benz began its ethanol-readiness journey as early as 2012-13, when it demonstrated a biofuel-powered car in a nationwide drive.
Ola Electric Unveils S1 Pro Sport, Non-Rare-Earth-Magnet Motor
The automaker also unveiled an indigenous ferrite motor that uses no rare-earth magnets, while it showcased the working prototype of its Moonshot Project – Diamondhead.
“We are expanding our product portfolio with the S1 Pro Sport and the S1 Pro+ & Roadster X+ with our own cells. This, alongside our Moonshot project, the Diamondhead, builds on our efforts to EndICEAge and make India a global hub for clean energy and EVs,” Ola Electric founder, Chairman and MD Bhavish Aggarwal said.
Currently, Ola Electric’s portfolio includes two models - S1 (scooter) and Roadster (motorcycle) - with multiple variants. The company boasts that the new S1 Pro Sport, a high-performance variant of the S1 scooter, has been designed for a more dynamic ride. The deliveries of S1 Pro Sport are expected to start in January 2026.
Ather announces BaaS model; Rizta price starts at Rs 75,999, 450 Series at Rs 84,341
Through BaaS, Ather has made its scooters more affordable. Customers can now purchase the Ather Rizta starting at Rs 75,999 and the 450 Series starting at Rs 84,341 (both ex-showroom prices).
Instead of a high upfront cost for the battery, customers pay a flexible monthly fee as low as Rs 1 per kilometer for battery usage through financial partners that have teamed up with Ather, including banks and other non-banking financial corporations, the company said in a press release.
Ultraviolette Secures $21 million Funding from TDK Ventures to Scale EV Operations
The round also saw continued support from existing investors, including Zoho Corporation, Lingotto (formerly Exor Capital), and other institutional investors. TDK Ventures joins a list of prominent backers that includes Qualcomm Ventures LLC, Speciale Invest, TVS Motor Company Limited, and individual investors such as Sriharsha Majety (Co-founder & CEO, Swiggy), Ankit Nagori (Co-founder, Cure Foods; former Chief Business Officer, Flipkart), Aprameya Radhakrishna (Co-founder, TaxiForSure), and actor Dulquer Salmaan.
Classic Legends Targets Festive Season Surge to Break Sales Stagnation, Bets on New Models and Dealer Push
“Sales have been flattish so far, but we expect a strong pick-up in the festive season,” Thareja said. The company’s Chief Business Officer Sharad Agarwal said that this is a “year of growth” for the company, with its touchpoints set to rise from 350 at present to 450 before Diwali, and aim to have 500 outlets by end of FY26. The network expansion will cover all three brands.
Ashok Leyland Approves Rs 300 Crore Investment in OHM Global Mobility, Rs 5.70 Crore in VBCL
The proposed investments, subject to necessary approvals and regulatory requirements, are aimed at supporting business expansion and operational growth. The company plans to invest up to Rs 5.70 crore in VBCL and up to Rs 300 crore in OHM Global Mobility, with the latter to be disbursed in one or more tranches.
Ashok Leyland Sets Sights on Record Exports & Defense Orders
For exports, Ashok Leyland has a very strong outlook for FY26, with expectations to achieve its highest-ever sales in export markets this year. This follows an all-time high export volume of 3,011 units in Q1 FY26, representing a 29% year-on-year growth, building on impressive growth in the two preceding quarters.
Furthermore, Ashok Leyland's non-Commercial Vehicle businesses are also progressing as planned. The defense business is expected to post double-digit revenue growth in FY26, backed by a strong order book exceeding Rs 1,000 crores and an additional Rs 2,000 crores of tenders awaiting orders, making it the strongest defense order book ever.
Piaggio Vehicles to Invest in New 3W Architecture, Eyes Stronger Domestic and Export Play
“So far we have been mostly investing into powertrain, efficiency of a driveline, and battery pack…But now the next phase is also to invest into vehicle architecture,” Graffi told Autocar Professional. “So far our vehicle architecture has been more or less the same, common to ICE models. Now we see that there are some specific needs in terms of weight reduction that are required.”
Omega Seiki Mobility to Invest $25 Million in Electric Vehicle Assembly Plant at Dubai’s Jafza
The new facility, spanning over 42,000 square feet, will assemble OSM’s range of electric two-wheelers and three-wheelers. It will also serve as a hub for storage and distribution of automotive components and spare parts. Operations are expected to begin by the end of 2025.
Cabinet Clears Four New Semiconductor Projects Worth Rs 4,600 Cr
The projects, located in Odisha, Punjab, and Andhra Pradesh, represent a combined investment of approximately Rs 4,600 crore and are expected to generate direct employment for over 2,000 skilled professionals.
The approved proposals are from SiCSem Private Limited, Continental Device India Private Limited (CDIL), 3D Glass Solutions Inc. (3DGS), and Advanced System in Package (ASIP) Technologies. With these additions, the total number of semiconductor projects approved under the ISM rises to 10, with cumulative investments reaching around Rs 1.60 lakh crore across six states.
Tata Hitachi’s Next Act: Mining, Exports, and Electrification to Power Growth
These moves come at a time when the Indian construction equipment (CE) market is experiencing both rapid expansion and intense competition. Infrastructure spending by the government has pushed excavator sales to the 30,000–32,000 unit range, but the number of active players has surged from just four or five a decade ago to over a dozen today. Chinese brands, in particular, have shaken up pricing and credit norms, forcing established players to redefine their value propositions.
For Managing Director Sandeep Singh, these challenges are not new. They are the next phase in a journey of transformation he has led since taking charge — a journey that began with stabilisation and is now about strategic expansion.
Samvardhana Motherson Sees no Material Impact From US Tariffs
“In light of the recent shift of tariff policies towards India, we do not foresee any material impact,” SMAIL Director Laksh Vaaman Sehgal told investors on Wednesday. The management believes that the company’s globally local business model enhances resilience and helps withstand economic and geopolitical uncertainty.
“In relation to the evolving trade policies, I would like to highlight that Motherson is well-positioned to navigate this landscape. We have a globally local strategy, and hence a significant level of our production is in the local country of consumption,” he said
Pavna Industries and Taiwan’s SmartChip Microelectronic Corporation Announce Joint Venture
The newly formed entity will focus on the development and production of electronic locks and electric vehicle (EV) components, aiming to serve both the automotive and non-automotive sectors. Applications are expected to include e-lock systems for residential and commercial use, as well as critical EV components such as motor controllers, throttle bodies, dashboards for two-wheelers and three-wheelers, and EV charging infrastructure.
Domestic Tractor Sales See Fall in July from June, up 8% YoY
According to the Tractor and Mechanization Association (TMA), domestic tractor sales stood at 64,320 units in July 2025, compared with 59,529 units in the same month last year. This was significantly lower than the 112,677 units sold in June 2025, when the industry delivered its strongest monthly performance since October 2024. Exports in July fell 5% on-month to 8,477 units, from 8,936 units in June.
Toyota Kirloskar Motor Delivers Record Rs 5,672 Cr Profit in FY25, Elevates India’s Role in Global Sales
Surging demand for hybrid models, an expanded retail network, and incremental volumes from Maruti Suzuki helped Toyota Kirloskar post its highest-ever production and sales figures.
The company’s FY25 performance underscores its rising influence in Toyota’s global operations and reinforces its position as a key player in India’s mid-to-premium passenger vehicle market. Record revenues, a sharp jump in dividend payouts, and sustained investments in future-ready manufacturing mark a year of significant milestones.
Maharashtra, Karnataka, Kerala command 40% share of record 91,000 electric cars, SUVs sold this year
Unless production in the remaining five months of this year is hampered by delayed supplies of rare earth magnets (from China), the Indian e-PV industry should go on to hit a record 150,000-plus units in CY2025.
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India’s Public EV Charging Stations Quadrupled to 24,000 by Mid-2025
India’s public EV charging infrastructure has expanded fourfold from 2023 to mid-2025, reaching 24,000 stations across highways and cities, according to the India Charging Report 2025 by TATA.ev.
The study shows that 65% of the country’s pin codes now have at least one registered electric vehicle, and 84% of EV owners in 2025 use them as their primary mode of transport—up from 74% in 2023.
EVs in India are now driven an average of 1,600 km per month—40% more than internal combustion engine (ICE) vehicles, compared to an 11% lead in 2023. Owners report using their EVs on 27 days a month, 35% higher than ICE owners, aided by lower running costs and a growing charging network. The report notes that EVs now traverse over 95% of India’s motorable roads, with half of TATA EV owners having completed long-distance journeys of 500 km or more along corridors such as Delhi–Manali, Mumbai–Goa, and Hyderabad–Bengaluru.
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Interview: SRM University's Formula for Preparing a Future-Ready Automotive Workforce
Dr K. Kamalakkannan, Professor, Department of Automobile Engineering, SRM University, told Autocar Professional about how the university is increasingly bringing focus towards research in EVs, friction materials, and alternative fuels, among other key technology areas to produce a future-ready workforce. "We have added alternative fuels and ADAS in our syllabus," Dr Kamalakkannan, said.
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