A ₹35,000 crore plant pact, a plug-in hybrid alliance, EV localisation talks and Mercedes’ model-and-pricing roadmap highlighted an industry balancing growth ambition with cost reality.
18 Jan 2026 | 434 Views | By Darshan Nakhwa
The week of January 12-18 showed how quickly India’s auto market is widening into a multi-track story, where localisation, fresh investments and new technology bets are moving in parallel. On one end, Maruti Suzuki and the Gujarat government formally signed off on a ₹35,000 crore commitment for the Khoraj plant, ...
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The week of January 12-18 showed how quickly India’s auto market is widening into a multi-track story, where localisation, fresh investments and new technology bets are moving in parallel. On one end, Maruti Suzuki and the Gujarat government formally signed off on a ₹35,000 crore commitment for the Khoraj plant, underlining that scale and capacity planning remain central to the industry’s next phase.
At the same time, newer and returning players sharpened their playbooks. VinFast stepped up its localisation push by opening talks with Indian battery suppliers to raise local content beyond the current base, while the JSW Group’s partnership with China’s Chery signalled a more pragmatic route into electrification through plug-in hybrids.
In the luxury space, Mercedes-Benz offered a reminder that the market’s premium end is being shaped as much by currency and pricing discipline as by product launches. From quarterly price hikes to a packed 2026 pipeline and deeper localisation moves, the brand’s strategy highlighted how the industry is now balancing growth ambitions with margin protection.
Here’s the detailed round-up of all major developments from this week:
Gujarat, Maruti Suzuki Formalise Rs 35,000 Crore Investment for Khoraj Plant: Reports
The investment letter handover ceremony took place in Gandhinagar in the presence of Chief Minister Bhupendra Patel and Maruti Suzuki Managing Director Hitachi Takeuchi. The planned facility will have an annual production capacity of 10 lakh vehicles and is expected to create approximately 12,000 employment opportunities.
Maruti Suzuki Begins Global Exports of VICTORIS SUV, Rebranded as 'Across'
JSW Group Partners with Chinese Automaker Chery to Introduce Plug-in Hybrid SUV
The vehicle will mark JSW Group's debut in automobile manufacturing through its independent passenger mobility division. Unlike the company's existing joint venture with MG Motor, this launch will operate separately under JSW branding rather than carrying the Jetour nameplate.
Škoda Unveils 'Peaq' as Name for New All-Electric 7-Seater Flagship
Tata Motors to Ramp Up Sierra Capacity Over Next Six Months to Keep up with Demand
Autocar Professional has learnt that Tata Motors PV is expected to ramp up monthly production capacity of the Sierra to around 15,000 units by March 2026, positioning the SUV to contribute incremental volumes of over 1.5 lakh units annually once capacity stabilises.
Mahindra Records Over 93,000 Bookings for New XEV 9S and XUV 7XO Models
Punch Sales Will Start Hitting a New Peak With Facelift: Tata Motors’ Chandra
Since its debut in 2021, the Punch has been a cornerstone of Tata Motors’ passenger vehicle portfolio. In calendar year 2024, it emerged as India’s highest-selling car with volumes of slightly over 2 lakh units–becoming the first non-Maruti model in over four decades to top the sales chart. In 2025, however, the model slipped to the 10th position amid broader market headwinds.
Tata Motors Launches New Punch SUV at ₹5.59 Lakh
Tata Motors PV Could Be Last Man Standing in India’s Hatchback Segment, Says Shailesh Chandra
“There is a shift happening,” Chandra said. “In the last 5 years, hatchbacks have gone down from a share of 46-47% to 20-22%. All the facts show that the shift is imminent, and as more and more young customers, less than 35 years of age, come into the market, I think this trend will grow further.”
Yet, even in decline, Chandra believes the numbers still add up.
Tata Motors PV Sees Double-Digit Industry Growth in 2026; To Outperform Industry
Vinfast in Talks With Battery Makers in India For Localisation
"We try to increase our localization; it is very important. Since we didn't join the FAME scheme, we did not commit to a certain level of localization, but certainly, we try our best. At the moment, our localization is around 15%; we need to reach 40% soon. Once we have batteries, localization will increase tremendously. We are trying to tie up with a local battery manufacturer," VinFast Asia Chief Executive Officer Pham Sanh Chau said.
Vinfast To Expand Product Portfolio With Three New Models In 2026
"In 2026, VinFast plans to introduce three new models to the Indian market. These products are designed around real usage patterns and premiumness, not just specifications on paper, but they aim to deliver strong value for price-conscious Indian consumers. We will begin with launching a 7-seater MPV," VinFast India CEO Tapan Ghosh said.
Vinfast's Next Four Big Moves In India In 2026
Rupee Depreciation: Mercedes-Benz India to Raise Prices by 2% every Quarter, says Santosh Iyer
Rising input costs and a weakening rupee have made periodic price corrections unavoidable, Iyer said, even as the luxury carmaker looks to balance profitability with demand stability. He added that the effective price increase last year was limited to around 5%, spread across three quarters. “In the fourth quarter, we skipped because GST went down but now we have to start increasing by 2% every quarter."
Won't Engage in Price War: Mercedes' Santosh on Entry-level Degrowth
Mercedes-Benz Lines up 12 Launches for 2026
The company did not reveal the details of the new models. The German carmaker closed 2025 with sales of 19,007 vehicles, a marginal decline of about 2 percent year-on-year, but posted its highest-ever revenue in India, underlining a clear shift toward a richer product mix and higher average selling prices.
Mercedes-Benz to Locally Assemble Maybach GLS in India—First Market Outside US
EV Demand is Rebounding both in India and Around the Globe: JLR's Rajan Amba
KTM Parent Company Cuts 500 Jobs as Part of Ongoing Restructuring Effort
The job cuts, which primarily affect white-collar positions and middle management, come as the company continues its recovery from KTM AG's insolvency at the end of 2024. The headcount stood at 3,794 employees as of December 31, 2025, down from 5,310 the previous year.
Royal Enfield Unveils Updated Goan Classic 350 for 2026
SIAM Looking Ahead Conclave Estimates India’s FY27 PV Growth at 5-7%, 2W at 6-8%
According to sources, the SIAM Looking Ahead Conclave, held on Thursday, which brought together OEMs and research houses to discuss factors influencing the market for the year ahead, estimated the passenger vehicle market to grow in the range of 5-7% during the next financial year, while the two-wheeler market is projected to grow between 6-8%.
New Supply Contracts to US in Limbo Amid Tariff Woes: ACMA
“New contracts that are due are a little bit in limbo, whereas existing supply chains continue because a supplier has to go through qualification processes and stringent approval processes. It is not very easy for an OE to switch suppliers,” Vikrampati Singhania, President of the Auto Component Manufacturers Association (ACMA) said.
US Orders Allies to Secure Critical Minerals Within 180 Days
India's Auto Component Industry Slips to Trade Deficit in H1FY26
According to data shared by the Auto Component Manufacturers Association (ACMA), the auto component industry clocked US$41.2 billion in revenue during April–September 2025, a growth of 3.5% year-on-year. Component exports during the period rose 9.3% to US$12.1 billion, while the value of components imported into India rose at a faster rate of 12.5% to US$12.3 billion.
Bajaj Auto Launches Chetak C25 at Rs 91,399
The C25 has become the most affordable offering in the Chetak line-up and the Pune-based company’s second model in the sub-Rs 100,000 category. The new electric scooter will sit alongside the existing Chetak variants 3501, 3502, 3503 and 3001. In the Indian market, it will compete with models such as the TVS Orbiter, TVS iQube 2.2, Hero Vida VX2 Go, Ola S1X and other models.
Zelio E-Mobility Launches 2026 Logix Cargo Scooter at ₹56,551
Minister Kumaraswamy Chairs Meeting on Rare Earth Magnet Manufacturing Scheme
Ducati Plans Ten Model Launches for Indian Market in 2026
The company plans to launch Desmo450 MX, Multistrada V4 Rally (2026 Edition), Panigale V4 Lamborghini, Panigale V4 Marquez Replica, Panigale V2 Special Edition MM93, Panigale V2 Special Edition PB63, Monster V2, Diavel V4 RS, and Hypermotard V2/V2 SP. On January 2, it launched the Panigale V4R in January.
India Powers Cummins' Destination Zero
In an aggressive bet on the future of clean energy, Cummins has designated its facility in Jamshedpur as the exclusive global manufacturing site for this specific platform. If a customer in Europe or North America wants a Cummins hydrogen engine of this capacity, it will carry a 'Made in India' stamp.
JK Tyre Targets Aerial Work Platforms as Next Growth Engine
For years, the market for Aerial Work Platforms (AWP), the sophisticated lifts and telescopic arms that allow workers to operate safely at height, was the exclusive playground of European and Chinese imports. Now, Indian companies such as JK Tyre are looking to disrupt this foreign hegemony with their homegrown range.
JK Tyre Expands Passenger Car Radial Production Capacity at Banmore Plant
Forvia Shifts Focus, Expands India’s Role Beyond Services
Fischer, a global automotive leader with over 25 years of experience, took the CEO reins in March, quickly moving to re-evaluate the company’s decade-spanning presence in the subcontinent. What he found was a significant footprint with around 6,000 employees, split between manufacturing operations and a robust engineering base, but a return on investment that felt out of sync with India's massive growth potential.
CNH to Bolster 'Make in India' Portfolio Through New Greenfield Plant by 2026
Domestic CV OEMs Master Heavy-Duty Physics for India's Booming Infra Projects
For years, the sight of a massive boom pump, the spindly, mechanical arms used to pour concrete at dizzying heights, meant one thing to an automotive observer: an imported chassis. The extreme weight and stability requirements of these mega-machines often exceeded the engineering specifications of domestic truck frames. However, at the latest Excon gathering, a 56-meter boom pump standing tall on a homegrown Tata chassis signaled the ongoing evolution that is taking place in Indian automotive engineering.
Neolite ZKW Positions for Growth as Lighting Becomes a Differentiator
IPO-bound Neolite ZKW Lighting Ltd is betting big on this shift, positioning itself to ride the trend and drive its next phase of growth. With the premiumisation trend accelerating the adoption of LEDs and electronics, and EV-led design changes and localisation taking centre stage, the Haryana-based automotive lighting company believes its next phase of growth will be driven more by value per vehicle.
BillionE Mobility Secures $25 Million to Expand Electric Truck Fleet
The funding round was supported by ultra-high-net-worth individuals, family offices, and financial institutions including State Bank of India. The capital will fund the deployment of more than 500 electric trucks during the 2026-27 financial year, along with fleet management systems and technology infrastructure.
Long Reads
How Greater Consumer Responsiveness Helped Indian Brands Overtake Global Giants
For the first time in years, there was a structural shift in India’s passenger vehicle pecking order, with Tata Motors and Mahindra & Mahindra both overtaking Hyundai to break into the top three by domestic retail sales.
From Rs 431 Crore Loss to Recovery: Inside TIL’s Comeback
A year later, two Danish refugees, Henning Holck-Larsen and Soren Toubro, followed a similar path, signing an agreement with Caterpillar to market earthmoving equipment, giving rise to what became Larsen & Toubro.
Sales Analysis
TVS, Bajaj, Ather, Hero Open 2026 on a Strong Note, E-2W Sales Cross 55,000 in January First-Half
In the e-2W segment, the top four OEMs, have opened CY2026 on the same strong note wherein they exited CY2025.
Two-Wheeler Sales Hit Record High in October-December Quarter with 5.7 Million Units
India’s Top 30 SUVs, MPVs In 2025; Hyundai Creta Pips Tata Nexon To Top Spot
With record wholesales (factory dispatches) of 2.95 million SUVs and MPVs last year, the UV segment grew 7.43% YoY on a high base. This continuing strong performance has ensured that the UV share of the overall passenger vehicle market (cars, UVs and vans) has further risen in 2025 to 66%, improving upon the 64% in 2024 and 57% in 2023.
SUV Share of PV Market Jumps to New High of 66% in 2025
Commercial Vehicle Sales Hit Record Q3 High with 21.5% Growth at 2.90 Lakh Units
Construction Equipment Industry Domestic Sales Down 10% Amid Infrastructure Slowdown
Video Playlist
What Drove BMW India’s Strongest Sales Performance Yet
From electrification and long-wheelbase models to an assured buyback programme for EVs, aggressive product launches, and rapid network expansion, Brar explains the strategy powering BMW India’s momentum. He also addresses foreign exchange volatility, potential US tariff risks, and the evolving profile of India’s luxury car buyers.
Has India's Auto Components Industry Trumped The Tariff Equation?
In a conversation with Autocar Professional, Vikrampati Singhania, President of the Automotive Component Manufacturers Association of India (ACMA) and Managing Director of JK Fenner (India) Ltd, along with Vinnie Mehta, Director General, Automotive Component Manufacturers Association of India, shared insights into the sector’s performance, export trends and emerging risks.
Insights & Interpretations
Riding with India: Celebrating 25 Years of Mobility, Partnership, and Progress- Tsutsumu Otani
Across cities, towns, and villages, mobility solutions have enabled people by delivering freedom, convenience, and enjoyment while meeting India’s evolving needs. Mobility has not just been about machines. We create mobility that unlocks freedom, expands possibilities, and strengthens trust in everyday lives. This commitment has been guided by the responsibility of being a trusted mobility partner making mobility safer, more inclusive, more innovative, and increasingly responsible, while offering universal and essential value for people.
Building Trust in New-Age EV Brands: Key Lessons from 2025
In 2025 registrations crossed 2.02 million units, already eclipsing the full year 2024 total of 1.95 million. Electric two-wheelers lead the surge with 1.2 million registrations so far. These headline numbers signal momentum, yet the deeper takeaway from the market response seen in 2025 is that adoption has moved faster than long-term trust and ownership confidence.
EV Retrofits Emerge as Fast-Track Solution for India's Commercial Vehicle Transition
With approximately 5-6 million three-wheelers currently operating across India, replacing the entire fleet through new vehicle sales alone would take at least a decade, even if all new sales were electric from tomorrow. Industry observers suggest the actual timeline could stretch to 20 years.
Earnings Report Card
Tata Technologies Posts 3.2% QoQ Revenue Growth in Q3 FY26
The Tata Group company posted total operating revenues of ₹13,657 million in Q3 FY26, registering a growth of 3.2% quarter-on-quarter (QoQ). Revenues from the services segment stood at ₹10,602 million, up 4.7% QoQ. In dollar terms, services revenues were reported at $118.6 million, reflecting a 2.6% sequential increase.
SML Mahindra Reports 62% Revenue Growth in Q3
The Punjab-based commercial vehicle manufacturer's profit before tax reached Rs 23.52 crores for the quarter, compared to Rs 0.75 crores in Q3 FY2025. Basic and diluted earnings per share for the quarter stood at Rs 12.11 versus Rs 0.36 in the year-ago perio
Landmark Cars Reports 10.8% Revenue Growth in Q3FY26; Highest Quarterly Performance
The company achieved an 11.59% sequential growth over Q2FY26, which recorded Rs 1,657 crore in revenue. For the nine-month period ending December 2025, total revenue reached Rs 4,921 crore, up 20% from Rs 4,101 crore in the corresponding period last year.
Entry & Exits
Nissan Appoints Thierry Sabbagh as India President in Leadership Restructure
Effective January 1, 2026, Sabbagh has been appointed Divisional Vice President and President for Middle East, KSA, CIS and India, covering both Nissan and Infiniti brands. The appointment forms part of Nissan's Re:Nissan transformation plan aimed at improving operational efficiency and customer focus.
Nissan India Appoints Gagan Mangal as Head of Communications
Schaeffler Names Maximilian Fiedler as Regional CEO for Asia Pacific
Fiedler had been serving as Chief Financial Officer for the Asia Pacific region since 2022. In June 2025, he took on the regional CEO role temporarily while continuing his CFO responsibilities.
Switch Mobility Appoints Sonali Singh as Head of Marketing
In her new role, Singh will spearhead brand strategy, integrated marketing, digital initiatives and public relations, working closely with the leadership team to drive market expansion and strengthen Switch Mobility’s positioning in the electric commercial vehicle space.