Weekly News Wrap: Maruti’s FY27 Production Push, E85 Rollout, NCR Fleet Scrappage Scheme And May Sales  

The week saw strong May dispatches, sharper clean-fuel policy action, aggressive OEM product planning and fresh investment signals across PVs, CVs, EVs, tyres and lubricants. 

07 Jun 2026 | 1 Views | By Darshan Nakhwa

The first week of June 2026 brought together several strands of India’s changing automotive story: record sales momentum, a sharper policy push towards clean fuels, renewed confidence in vehicle production, and a growing focus on supply-chain resilience.

Maruti Suzuki emerged as one of the biggest themes of the week, with the country’s largest carmaker preparing to ramp up production sharply in FY27, launch more SUVs, invest in green energy and enter the flex-fuel passenger vehicle space. At the policy level, the government moved forward on two fronts: launching high-ethanol fuel retailing across select pumps and announcing a Rs 9,585 crore scheme to phase out older trucks and buses in Delhi-NCR.

The week also saw strong May sales numbers across passenger vehicles, two-wheelers, commercial vehicles and tractors. Maruti, Mahindra, Tata Motors Passenger Vehicles, Hero MotoCorp, Bajaj Auto, Royal Enfield and tractor makers reported healthy growth, while electric passenger vehicle registrations continued to rise. At the same time, companies across the value chain, from Mahindra and TVS to Lubrizol, Motul, tyre makers and LNG infrastructure players, outlined strategies for an auto market that is becoming more localised, more premium and more fuel-diverse.

Here is a detailed round-up of the key developments that shaped the automotive industry during the week:   

Maruti Suzuki To Ramp Up Production By 22% YoY in FY27

To make a strong comeback in the SUV space and regain lost market share, Maruti Suzuki India, the country’s largest car maker, is preparing for an aggressive nine-product onslaught in the next three years, with seven of them being SUVs. 

The automaker has set a target of manufacturing 2.82 million vehicles in the financial year 2027, representing an aggressive 22% growth from the previous year, according to sources familiar with the company’s production plans.

Read

Fire at Supplier Facility Causes Temporary Disruption to Hyundai Motor India Production

No Single Technology Can Solve India's Clean Mobility Challenge: Maruti Suzuki's Hisashi Takeuchi

India's transition to cleaner mobility will require multiple technologies working together, rather than depending on a single solution, according to Maruti Suzuki India Managing Director and Chief Executive Hisashi Takeuchi.

While launching the country's first flex-fuel passenger vehicle - WagonR Flex Fuel, Takeuchi said India's energy and emissions challenges were too large to be addressed by any one technology alone.

Read

Maruti Suzuki to Invest ₹925 Crore for Green Energy by FY31

M&M Redraws the Supplier Playbook for a More Uncertain World

Mahindra & Mahindra wants its suppliers to move faster. At the company's annual vendor conference in Mumbai in the last week of May, management used the platform to outline what it expects from suppliers as it prepares a 26-product rollout through FY31, expands its electric vehicle portfolio and grows its international business. The message centred on four areas: supply-chain resilience, faster development cycles, automation and greater technology participation.

Read

TVS Taps Brand Expert Lippincott for Premium Brand Revamp, Paddock Rollout

TVS Motor Company has engaged global brand consultancy Lippincott to help reshape its premium business as the Indian two-wheeler maker prepares a broader push into higher-end motorcycles, scooters and electric vehicles, according to people familiar with the matter.

The exercise includes a review of the company's retail strategy, customer experience, brand architecture and visual identity, the sources said. It is also expected to support the rollout of TVS Paddock, a dedicated premium retail format being developed for the company's future premium products.

Read

TVS Motor Company Developing New 160cc Liquid-Cooled Maxi-Scooter

TVS Motor Company is working on an all-new 160cc maxi-scooter platform that would mark the brand's entry into the fast-growing premium scooter segment. The scooter is expected to be powered by a new liquid-cooled engine, a departure from the air-cooled units found in the company's existing Ntorq range.

The development comes as India's scooter market sees increasing demand for premium, differentiated products. Within the next year, the segment is expected to grow more crowded, with the Honda ADV160 and Yamaha NMax 155 set to compete alongside existing models such as the Yamaha Aerox 155 and Hero Xoom 160, putting pressure on manufacturers to offer compelling alternatives.

Read

Honda’s Long Overdue India Reset

Honda Cars India is attempting something it has not done in years: reinvent itself before the market sidelines it further.

After spending much of the last decade steadily losing relevance in India’s rapidly transforming passenger vehicle market, the Japanese automaker is now preparing a far more aggressive strategic reset built around India-specific SUVs, localised hybrid technology, mainstream EVs, faster development cycles and a more decentralised operating structure. The shift marks one of the most significant changes in Honda’s thinking on India since the company first entered the country nearly three decades ago.

Read

Cabinet Announces Rs 9,585 Crore Scheme to Phase out Old Trucks, Buses in Delhi-NCR

In a bid to curb air pollution in the Delhi-National Capital Region, the Centre on Wednesday announced a Rs 9,585-crore scheme to replace older trucks and buses in the region with cleaner BS-VI or electric vehicles.

Of the total Rs 9,585 crore financial outlay, Rs 5,041 crore will be from the Central government and an estimated Rs 1,601 crore will be in tax concessions from participating state governments.

Read

ROCE at 72.3% Puts Tata Motors Among Top‑Tier Global CV Operators, Says Chairman

The 2026 fiscal year began under a veil of cautious optimism, with industry analysts expecting soft inflation and stable global financial conditions. However, this stability was short-lived; by May 2025, the introduction of aggressive U.S. tariffs sent ripples through global trade routes. India’s internal response was decisive, utilizing domestic policy by lowering Goods and Services Tax (GST) rates to jumpstart internal consumption, which successfully bolstered growth in the year's second half.

Despite the progress of major trade agreements with the European Union and the United States, the year ended under the shadow of a crisis in West Asia that erupted in March, bringing with it the specter of stagflation, which is the punishing combination of shrinking economic output and rising prices.

Read

Our Focus Was On Staying Anchored To Fundamentals: Girish Wagh of Tata Motors on FY26 performance

Fiscal year 2026 was a foundational period for Tata Motors Commercial Vehicles, following its structural transformation into an independently listed, pure-play commercial vehicle entity. MD and CEO Girish Wagh in his FY26 annual report address, characterized the year as one of two distinct halves for the broader industry. The initial months were marked by supply chain dislocations and muted buyer sentiment, but the sector witnessed a decisive rebound in the second half. This recovery was largely supported by structural enablers, including the implementation of GST 2.0 and sustained government infrastructure spending. 

Read

PMO Advisor Tarun Kapoor Hints at Large Scheme for Electric Truck Adoption, Calls For Faster EV Adoption in 4Ws

Prime Minister's Office Advisor Tarun Kapoor on Thursday indicated that the government is preparing a larger support programme for electric trucks after an initial pilot under the PM E-Drive scheme, as India looks to reduce diesel consumption and cut dependence on imported fossil fuels.

The goods transport segment would be central to India's energy transition as diesel consumption is about twice that of petrol, he said while speaking at an event organised by the Society of Indian Automobile Manufacturers (SIAM) on the occasion of World Environment Day.

Read

Electric Bus Adoption Could Reach 50%, Trucks 35% By 2035: Olectra CEO

JBM Bets on Scale, Exports and Fast Charging to Defend Electric Bus Lead

India’s electric bus market may still be at a relatively early stage compared to China, but the sector is beginning to show signs of moving beyond pilot projects and subsidy-driven deployments into a more scalable and commercially viable phase. For JBM, that transition is already underway.

Nishant Arya believes the company is well positioned to maintain its leadership in the domestic bus market after emerging as India’s largest busmaker last fiscal. Backed by a growing order pipeline, expanding customer categories and increasing global traction, the company is preparing for what it sees as the next major growth phase for electric public mobility.

Read

Green SM Eyes 10,000-vehicle India Fleet, Says Haryana Minister Rao Narbir Singh

Government Commences High Ethanol Blend Rollout Across 48 Petrol Pumps Throughout India

A total of 48 retail outlets managed by public sector oil marketing companies have commenced the commercial distribution of E85 fuel to inaugurate India's high-ethanol blending rollout. Union Minister for Petroleum and Natural Gas Hardeep Singh Puri launched the initiative at an IndianOil station in New Delhi to mark the transition toward a structured national flex-fuel ecosystem. The government plans to scale the specialized refueling infrastructure to 500 outlets by December 2026 and approximately 5,000 installations by December 2027, supporting broader mandates to push the national aggregate ethanol blending average to nearly 26 percent by the 2030-31 fiscal year. 

Read

India Gets First E85 Fuel Pump; Fuel Priced at Rs 20 Cheaper Than E20 Petrol

Hero Launches Flex-Fuel Splendor, Plans Expansion Across All Models

Hero MotoCorp on Wednesday launched flex-fuel versions of its bestselling Splendor and HF Deluxe motorcycles and said it is preparing to expand the technology across its entire model lineup as India's ethanol ecosystem continues to develop.

The motorcycles were unveiled in the presence of Union Minister for Road Transport and Highways Nitin Gadkari and Union Minister for Petroleum and Natural Gas Hardeep Singh Puri, both of whom have been among the strongest proponents of ethanol and alternative fuels in India.

Read

Maruti Suzuki Unveils India's First Flex-Fuel Car, the Wagon R E100

Maruti Suzuki India took the wraps off the country's first mass-market flex-fuel car, a Wagon R capable of running on blends up to 100% ethanol (E100), positioning the launch as the opening move in what it called a new chapter in India's energy journey.

The vehicle was unveiled at an event in the capital attended by Union Minister of Road Transport & Highways Nitin Gadkari and Union Minister of Petroleum & Natural Gas Hardeep Singh Puri, alongside leaders from the oil and ethanol industries. 

Read

India's Ethanol Push Opens New Growth Avenue For Additives Makers, Says Lubrizol India

Lubrizol Expects India's Share Of Global Business To Double In 6-8 Years 

Speciality chemicals maker Lubrizol expects India to contribute more than one-fifth of its global business over the next six to eight years, driven by strong growth in mobility, infrastructure, healthcare and consumer-focused industries.

The Berkshire Hathaway-owned company currently derives about 10 per cent of its business from India. However, Abhishek Shrivastava, Managing Director, India, Middle East and Africa (IMEA), said the country's contribution is expected to rise sharply as the company expands its local manufacturing footprint, technology capabilities and partnerships.

Read

PPFs Could Become An OEM Dealership Offering In 3 Years: Nippon Paint's Jenender Anand

Inside Ultra Gas & Energy's Plans To Scale LNG Refuelling network

India's push to reduce its dependence on diesel in the trucking sector faces a familiar problem. Transporters are reluctant to switch to LNG-powered trucks due to a lack of confidence in finding fuel along major routes. Fuel retailers, meanwhile, are hesitant to invest in expensive infrastructure until many vehicles hit the road.

Somewhere between those two challenges sits Ultra Gas & Energy Ltd. Part of Essar's green mobility ecosystem, the company is working to establish a nationwide LNG refuelling network to support long-haul freight movement.

Read

Hero MotoCorp CEO Cites the Lack of Affordable EV Tech for Motorcycles

Affordable electric vehicle technology for motorcycles is still not available anywhere in the world, Hero MotoCorp CEO Harshavardhan Chitale said, underscoring the challenges facing the electrification of India's largest two-wheeler segment even as the country pushes toward cleaner mobility.

While speaking at a World Environment Day event organised by the Society of Indian Automobile Manufacturers (SIAM), Chitale said electric motorcycles would play a crucial role in India's long-term decarbonisation journey, but current technology remains inadequate for the mass market.

Read

River Mobility: The EV Startup That Refused to Scale Blindly

In the first episode of Start to Scale, Prerna Lidhoo sits down with Aravind Mani, Co-founder & CEO of River Mobility, to unpack the realities of building an EV startup in one of the world's toughest two-wheeler markets.

From raising River's first $2 million during the pandemic to becoming India's 7th-largest EV two-wheeler brand with just 45 stores, Aravind shares why River chose focus over hype, execution over press releases and profitability over reckless growth. He also talks about the company's partnership with Yamaha, the lessons of being a late entrant, and River's roadmap to scale from 3,000 to 20,000 vehicles a month.

Watch

Low-Speed Electric Two-Wheelers Specs Reconsidered

Ola Electric Raises ₹780 Cr via Oversubscribed QIP

Ola Electric has successfully closed its qualified institutional placement at ₹780 crore, significantly exceeding its initial target of ₹500 crore. The company allotted 21.76 crore equity shares to eligible qualified institutional buyers at ₹35.86 per share — a 4.98% discount to the SEBI-prescribed floor price of ₹37.74 per share, which includes a premium of ₹25.86 over the ₹10 face value.

The QIP, launched on June 1 with its Fund Raising Committee setting the floor price, attracted a mix of global and domestic institutional investors including Goldman Sachs, BNP Climate Fund, Motilal Oswal Mutual Fund, Mirae Asset Mutual Fund, Kotak Mahindra Mutual Fund, and JM Financial Mutual Fund. The oversubscription signals renewed institutional confidence in the company despite ongoing financial challenges.

Read

Simple Energy Closes ₹250 Crore Series B Round

Tyre Makers Walk Tightrope In FY27 As Demand Holds Firm, But Costs Surge

India’s tyre makers are entering FY27 with strong demand visibility, high plant utilisation and a fresh capex cycle. But they are also facing one of the sharpest input cost shocks in recent quarters, triggered by the West Asia crisis, crude-linked raw material volatility, higher natural rubber prices, rupee depreciation and rising logistics costs.

The result is a difficult balancing act. Companies need to add capacity because demand from OEMs and the replacement market remains supportive. At the same time, they need to protect margins through price hikes without weakening demand from vehicle owners, fleet operators and export customers.

Read

India's Tyre Exports Hit Record High in FY26

SUV Boom, Premiumisation to Power Continental India’s Growth Ambitions

India has emerged as one of Continental’s most important growth markets globally, driven by improving infrastructure, rising disposable incomes and a rapidly evolving vehicle parc. The company’s recent introduction of the CrossContact AT2 in India reflects the strategic importance it now attaches to the country.

“India absolutely, with the premiumisation, is a key market for us where we put a lot of importance,” said Nevin Aslan-Özkan, Managing Director, Continental Tyres India. “We try to bring our global technology into the market, making sure that whatever the Indian consumer needs, we leverage this in the most appropriate way.”  

Read

May Sales

Maruti's Entry-Car Volumes Jump 2.4 Times as Kharkhoda Capacity Unlocks Demand

Maruti Suzuki India's entry-level car volumes have risen nearly 2.4 times following the ramp-up of production at its Kharkhoda facility, a development the company says validates its long-held belief that demand for affordable passenger vehicles remains intact despite the industry's shift towards SUVs and premium products.

The country's largest carmaker posted record sales of 242,688 units in May, including 193,535 units in the domestic market, the highest monthly volumes in its history. 

Read

Maruti Suzuki Posts Record Monthly Sales Of 242,688 Units In May 2026

Mahindra Auto Sales Rise 20% To 99,636 Units In May 2026

Tata Motors Passenger Vehicles Reports 42 Percent Sales Volume Increase in May

Toyota Kirloskar Motor Reports 7% Sales Growth In May 2026

Honda Cars India Posts 31% Sales Growth in May 2026

Renault India Continues Growth Trend with May Sales Increase

Nissan India Reports Strong Domestic Volume Growth in May 2026

India’s Electric Car Registration in May at 26,319 units; EV Penetration Rises to 6.4%

Registrations of electric passenger vehicles in India rose 79% year-on-year in May to 26,319 units, as rising fuel costs, better charging infrastructure and a broader selection of electric models drew more buyers to the market. 

The registrations rose 1% from April, while electric cars accounted for around 6.4% of total passenger vehicle registrations in May, up from 5.9% in April. In the first two months of the current financial year, electric passenger vehicle registrations climbed 77% to 52,274 units.

Read

Maruti Suzuki in India's Top 5 EV Car Sales Rankings, Surpassing Hyundai, BYD, VinFast

Hero MotoCorp May Dispatches Rise 12% on Strong Domestic Demand, Export Recovery

Hero MotoCorp reported a 12.3% increase in dispatches in May 2026, aided by healthy domestic demand, a sharp recovery in exports and continued growth in its electric mobility business.

The country's largest two-wheeler manufacturer dispatched 570,068 motorcycles and scooters during the month, compared with 507,701 units in May 2025.

Domestic dispatches rose 9.8% year-on-year to 536,784 units from 488,997 units a year earlier. Retail momentum remained strong, with 496,957 vehicle registrations recorded on the VAHAN portal during the month, according to the company.

Read

Honda Two-Wheeler Sales Surge 12% in May 2026

Bajaj Auto Reports 20% Increase In May Sales At 4.61 Lakh Units

Royal Enfield May Sales Rise 15% To 1.03 Lakh Units

Suzuki Motorcycle India Records Peak Monthly Volumes in May 2026

Tata Motors Commercial Vehicle Sales Rise 17% In May 2026 To 32,850 Units

Tata Motors reported total commercial vehicle sales of 32,850 units in May 2026, registering a 17 per cent year-on-year increase compared to 28,147 units sold in May 2025. Growth was led by stronger domestic demand, while international business volumes declined during the month.

Domestic sales stood at 30,784 units in May 2026, up 19 per cent from 25,872 units recorded in May 2025. International business volumes fell 9 per cent year-on-year to 2,066 units from 2,275 units in the corresponding period last year.

Read

Ashok Leyland May Sales Decline 4% Amid Weak M&HCV Bus Volumes

Mahindra Trucks and Buses Registers Mixed Sales Growth in May

Mahindra Tractor Sales Grow 23% To 49,695 Units In May 2026

Mahindra & Mahindra’s Farm Equipment Business reported total tractor sales of 49,695 units in May 2026, marking a 22% increase over 40,643 units sold during the same period in 2025.

Domestic tractor sales stood at 47,845 units during the month, up 23% from 38,914 units recorded a year earlier. Export volumes increased 7% to 1,850 units.

Read

Escorts Kubota Reports Higher Tractor, Equipment Volumes In May

Entry, Exit, & Elevation

Ammann India Appoints Prashant Morankar as Head of After Sales Division

JK Fenner Appoints Jegapriyan Govindarajan As President

Napino Auto and Electronics Appoints Vikrant Sharma as Dual Chief Business and Strategy Head

JNV Group Names Sandeep Jad as Automotive CEO

RELATED ARTICLES

"Our Focus Was On Staying Anchored To Fundamentals": Girish Wagh of Tata Motors on FY26 performance

Shahkar Abidi 07 Jun 2026

The commercial vehicle division reports a 14 percent volume growth and a decade-high 55 percent heavy vehicle market sha...

ROCE at 72.3% Puts Tata Motors Among Top‑Tier Global CV Operators, Says Chairman N Chandrasekaran

Shahkar Abidi 07 Jun 2026

The commercial vehicle major charts an 18.2 percent jump in non-cyclical segments and targets global manufacturing expan...

EXCLUSIVE: Maruti Suzuki To Ramp Up Production By 22% YoY in FY27

Ketan Thakkar 07 Jun 2026

The automaker aims to manufacture 2.82 million units, while preparing for aggressive SUV product launches with one model...

NEXT STORY