The automotive sector remained busy this week, with strong July sales setting the tone alongside a series of strategic developments across manufacturing, commercial vehicles and electric mobility.
Mahindra Group announced a major restructuring of its truck and bus business under SML Mahindra and its electric three-wheeler arm entered the unicorn club following a fresh funding round. In the EV ecosystem, L&T marked its entry into the traction motor business with its first commercial order. Passenger vehicle dispatches are estimated to have crossed 4.60 lakh units in July as demand strengthened, while Maruti Suzuki expanded its manufacturing footprint with the commissioning of the fourth line at its Hansalpur plant.
Meanwhile, the government clarified that E20 petrol does not require engine modifications, although some older Bharat Stage III vehicles may need replacement of select rubber components during routine servicing.
Here is a detailed round-up of the key developments that shaped the automotive industry during the week:
Mahindra to Consolidate Truck & Bus Business Under SML Mahindra
Mahindra Group will consolidate its truck and bus operations by transferring Mahindra Truck and Bus Division to SML Mahindra for Rs 525 crore, creating India's fourth-largest commercial vehicle maker. The merger aims to improve scale, manufacturing utilisation and product synergies, while retaining financial flexibility as the company evaluates funding options. The combined entity expects stronger growth, higher capacity utilisation and an accelerated push for market share in trucks and buses.
India’s Truck Market Consolidation Quickens as M&M Moves Operations Into SML Mahindra
SML Mahindra Sees Wide Capacity Runway Ahead of Truck & Bus Merger
No Final Call Yet on How SML Mahindra Will Bankroll Its Next Phase
India's Passenger Vehicle Dispatches in July Estimated at Over 4.66 Lakh Units
India's passenger vehicle dispatches are estimated to have crossed 4.66 lakh units in July, with around 33% growth on year, led by improved affordability and stronger product availability.
Mahindra Last Mile Mobility Becomes Unicorn; Lightrock Leads Rs 322-Crore Funding
Mahindra's electric three-wheeler subsidiary, Mahindra Last Mile Mobility, has attained unicorn status after raising Rs 322 crore at a Rs 10,822 crore valuation. The funding strengthens its market leadership, supports future growth and comes ahead of a planned IPO in the second half of FY27.
L&T Enters EV Powertrain with a Five Lakh Motor Order
L&T EPS Mobility has secured its first commercial order to supply 500,000 electric two-wheeler traction motors over three years. The company plans to expand into motors for three-wheelers, passenger vehicles and commercial vehicles, targeting gaps in India's EV component supply chain.
Govt Says Some BS III Vehicles May Need Rubber Component Replacement with E20
The government said E20 petrol does not require engine modifications and has no significant impact on vehicle performance or durability. However, some Bharat Stage III vehicles built before 2016 may need replacement of certain rubber parts and gaskets during routine servicing to ensure compatibility with E20 fuel.
Maruti Suzuki Starts Production at Hansalpur Facility’s 4th Line, Total Capacity Now at 2.9 Million Units
Maruti Suzuki has begun production at the fourth line of its Hansalpur plant in Gujarat, increasing total annual capacity to 2.9 million vehicles. The facility is now Suzuki's first global manufacturing site with 1 million units of annual capacity and will initially produce the e VITARA.
Electric 2W Registrations Nearly Double in July; Penetration at 11%
India's electric two-wheeler registrations rose 80% year-on-year to 195,446 units in July, aided by a low base caused by last year's rare earth magnet shortage. TVS Motor and Bajaj Auto strengthened their leadership, while EV penetration increased to 11.1% despite flat month-on-month volumes.
Maruti Suzuki Sees PV Industry Growing by Around 10% in FY27
Maruti Suzuki expects India's passenger vehicle industry to grow around 10% in FY27, raising its outlook from the earlier 4-6% estimate. The company cited improving demand, easing supply constraints and new product launches, while expecting strong first-half growth before a moderation in the second half due to a higher base.
Maruti Says Small Car Demand is Back, Share of 1st Time Buyers at 54%
Maruti Suzuki said first-time buyers accounted for 54% of its sales in the first quarter, up from 51% in the previous quarter, signalling a recovery in India's entry-level car market. The company attributed the improvement to stronger small-car demand following the recent GST reduction.
India Set To Become Strategic V2X Tech Market: Qualcomm
Qualcomm said India's decision to delicense the 5.9 GHz spectrum positions the country as a key market for Vehicle-to-Everything (V2X) technology. The move enables connected vehicle deployment, allowing vehicles to exchange safety information and supporting broader adoption of advanced road safety technologies.
Electric Car Sales Surge 73% in July; Tata, Mahindra Tighten Grip While MG Loses Ground
India's electric passenger vehicle registrations rose 73% year-on-year to 31,138 units in July, while penetration held steady at 7.7%. Tata Motors strengthened its market leadership, Mahindra expanded share sharply, and MG Motor continued to lose ground despite remaining the third-largest EV manufacturer.
Mahindra & Mahindra to Double SUV Capacity by FY31
Mahindra & Mahindra plans to double its monthly vehicle production capacity by FY2031 through expansions at existing plants and a new Nagpur facility. The investment will support sustained SUV demand, new ICE and EV launches, and the company's long-term multi-powertrain growth strategy.
Maruti Suzuki Reaffirms Commitment to Small Cars as Entry-Level Segment Shows Signs of Revival
Maruti Suzuki says it remains committed to India's entry-level car segment despite the industry's SUV shift, arguing affordable small cars are essential to raising vehicle ownership. The automaker believes India's low car penetration offers significant long-term growth potential and says most buyers cannot directly upgrade to premium vehicles.
Hyundai India Sticks to Full Year FY27 Guidance Despite Q1 Hit
Hyundai Motor India retained its FY27 sales growth guidance of 8–10% despite a weak first quarter, saying production has largely recovered from a supplier fire. The automaker expects festive demand, new launches, export recovery and expanded capacity to support growth and profitability in the coming quarters.
European OEMs Need to Cut Vehicle Costs by 30-40% to Remain Competitive, Says KPIT
KPIT Technologies said European automakers must cut vehicle costs by 30-40% to compete with Chinese rivals. The company expects software engineering, artificial intelligence and manufacturing improvements to drive savings as European manufacturers contend with rising costs, weaker demand and intensified competition.
Royal Enfield Targets 2.45 Million-Unit Capacity by FY30
Royal Enfield plans to expand annual motorcycle production capacity to 2.45 million units by FY2030 through expansion at its Cheyyar plant and a new Andhra Pradesh facility. The move follows rising capacity utilisation, strong demand and increased investment to support future domestic and export growth.
Royal Enfield to Invest ₹1,225 Crore for Phase 1 of New Andhra Pradesh Plant
Royal Enfield will invest Rs 1,225 crore in the first phase of its Andhra Pradesh greenfield manufacturing plant, adding annual capacity of 450,000 motorcycles. The expansion, targeted for completion by FY2030, will support the company's long-term production growth, subject to market demand.
Royal Enfield Mulls Setting Up CKD Assembly Plant in Indonesia
Royal Enfield is evaluating a CKD assembly plant in Indonesia to bypass import quotas and expand in the country's large two-wheeler market. The move follows similar overseas manufacturing plans and would strengthen the company's international expansion strategy through greater local assembly and lower trade barriers.
Honda Cars India Names Toshiyuki Yanagisawa as President & CEO
Honda Motor has appointed Toshiyuki Yanagisawa as President and CEO of Honda Cars India from October 1, 2026. Yanagisawa, who currently heads Honda's India Strategic Development Office, will succeed Takashi Nakajima and also continue leading Honda Digital Innovation India.
Royal Enfield Says ICE will Remain Central as Flying Flea Begins EV Journey
Royal Enfield says petrol motorcycles will remain central to its business despite identifying ICE dependence as a long-term risk. Under its RE-BALANCE strategy, the company will continue investing in new ICE models and technology while gradually expanding its electric portfolio, beginning with the commercial rollout of the Flying Flea EV.
Ather Energy to Unveil Mass Market Electric Scooter on August 29
Ather Energy will unveil a new mass-market electric scooter platform at its Community Day event on August 29. The platform is designed to broaden EV adoption by focusing on affordability, resale value, serviceability, ride comfort, fast charging and enhanced hardware and software safety features.
Mahindra Expects Demand to Offset Commodity Inflation, Retains FY27 Guidance
Mahindra & Mahindra has retained its FY27 growth outlook despite rising steel, aluminium, copper and rubber prices. The company expects strong demand for SUVs, tractors and light commercial vehicles to offset higher input costs, while acknowledging continued exposure to unhedged steel and rubber price volatility.
Haryana Gives 100% Tax Waiver On EVs Up To ₹30 Lakh, 50% Above; CNG Unchanged
Haryana has approved a 100% motor vehicle tax exemption for new battery electric vehicles priced up to Rs 30 lakh and a 50% exemption for costlier EVs. The state also introduced a 1% tax rebate for women registering new cars priced up to Rs 20 lakh.
Mahindra Signals H2 FY27 Window for Last Mile Mobility Public Debut
Mahindra & Mahindra reaffirmed plans to list its Last Mile Mobility business in the second half of FY27. The electric three-wheeler unit maintained market leadership with 39.5% share, while volumes surged 68% amid rising EV adoption in the L5 cargo and passenger vehicle segment.
CASE India Sets Out to Double Revenue by 2030 Despite a Slowing Start to FY27
CASE Construction Equipment aims to double its India revenue by 2030 with market share gains, new product introductions and higher exports. Expansion at its Pithampur plant, increased localisation and a broader product portfolio are expected to help the company outpace overall construction equipment industry growth.
India’s Trade Pacts Open Access To $70 Trillion Market Across 38 Countries: Piyush Goyal
Commerce Minister Piyush Goyal said India's nine free trade agreements provide preferential market access to 38 countries with a combined GDP of nearly $70 trillion, creating significant export opportunities and strengthening the global competitiveness of Indian manufacturers.
Tier-1s Outpace OEMs In Automotive Validation Investments: NI India
Tier-1 suppliers are investing more heavily than OEMs in automotive validation as software-defined vehicles, ADAS and connectivity increase complexity, NI India said.
CEAT Raises R&D Spend to Rs 240 Crore in FY26, Opens New Compound Lab at Ambernath
CEAT increased its R&D spending to a record Rs 240 crore in FY2026 as it advanced its innovation-led growth strategy. While absolute investment rose from the previous year, R&D expenditure as a share of net sales eased to 1.56%, reflecting faster revenue growth alongside continued investment in research and product development.
V2X Technology Complements ADAS by Detecting Hidden Road Hazards: Qualcomm
Qualcomm said Vehicle-to-Everything (V2X) technology will complement, not replace, ADAS by providing an additional safety layer. Through real-time communication between vehicles and infrastructure, V2X can warn drivers of hidden hazards, emergency vehicles and sudden braking beyond the range of cameras and sensors.
Mahindra Leadership Sees ‘Growth Gems’ Outpacing Core Business With 3x Profit Jump
Mahindra & Mahindra's "Growth Gems" businesses posted a threefold rise in profit and 39% revenue growth in the first quarter, helping diversify earnings beyond its core auto and farm operations. Despite rapid growth, the automotive and farm businesses remained the group's largest contributors by revenue and profit.
CEAT Chairman Flags Input Costs as FY27 Headwind
CEAT Chairman Harsh Goenka warned that rising raw material costs, geopolitical tensions and supply chain disruptions could pressure performance in FY27.
Heavy Rain Disruption Halts Tata Motors Production at Sanand Facilities
Tata Motors Passenger Vehicles temporarily halted operations at its Sanand plant after heavy rainfall and flooding disrupted manufacturing and supplier operations in Gujarat. The facility produces the Tiago, Tigor, Nexon and Sierra.
Petroleum Ministry Confirms No Formal Assessment of E20 Fleet Compatibility
The government told Parliament it has not assessed what share of India's vehicle fleet is fully compatible with E20 petrol. However, it said extensive trials conducted with industry stakeholders found E20 safe for legacy vehicles, with no significant impact on performance, durability, emissions or component wear under prescribed standards.
ZF Wins ESC Supply Deals from Three Major OEMs
ZF Commercial Vehicle Control Systems India has secured supply nominations from three major commercial vehicle OEMs for its ESCsmart electronic stability control system ahead of India's October 2027 ESC mandate. The locally assembled systems will enter production in 2027, supporting the industry's shift toward mandatory active safety technologies.
India's Grey-Market Construction Equipment Exports Top Rs 4,000 Crore
Around 6,500 construction machines worth Rs 3,900-4,500 crore were exported from India through unauthorised channels last year, driven by overseas price arbitrage. Equipment makers are responding with remote tracking, sales restrictions and calls for tighter port oversight to curb the growing grey-market trade
Bombay High Court Permits Nitin Gadkari to File Civil Suit Over E20 Social Media Claims
Union Minister Nitin Gadkari has moved the Bombay High Court to file a civil defamation suit against Meta, X, Google and others over AI-generated deepfakes and social media posts falsely linking him and his family to financial gains from the E20 ethanol blending programme. The suit seeks removal of the content.
Indian CV Industry to Reach 45% Alternative Fuel Share by FY2030
Alternative-fuel commercial vehicles are expected to account for 40–45% of India's CV market by FY2030, up from 27% in FY2026, ICRA said. CNG and LNG will drive most of the growth, while EV adoption, led by buses, will accelerate as improving economics and government incentives support the transition.
Montra Electric Deploys 250-Truck Fleet Across 1,450-km Freight Corridor for Wonder Cement
Montra Electric will supply around 250 Rhino 5538 electric heavy-duty trucks to Wonder Cement for operations on a 1,450-km freight corridor linking Rajasthan and Gujarat.
TVS Acquires Additional Equity in TVS Credit for ₹711 Crore
TVS Motor has increased its stake in subsidiary TVS Credit Services to 85.15% by acquiring an additional 4.39% equity for Rs 711 crore. The move consolidates ownership, simplifies governance, and follows the company's recent efforts to explore restructuring its financial services business to unlock shareholder value.