India’s automotive industry entered March with strong domestic demand but rising global uncertainty.

February retail and wholesale numbers reinforced the industry’s recovery momentum, with robust growth across passenger vehicles, two-wheelers and tractors. Dealers reported strong retail traction supported by improved rural sentiment, stable pricing and continued benefits from GST rationalisation.

Yet the week also highlighted how quickly global developments can ripple through the sector. Escalating tensions between Iran, Israel and the United States sent crude oil prices into volatile territory and threatened shipping routes through the Strait of Hormuz, a key artery for vehicle exports and energy supplies. The conflict raised concerns about logistics disruptions, fuel costs and supply-chain stability for Asian automakers, including those in India.

Policy developments were equally significant. The government proposed Tractor Emission Stage V (TREM V) norms from October 2026, tightening environmental regulations for non-road vehicles while granting a longer transition window for the dominant 25–75 horsepower tractor segment, which will comply only from 2032.

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

Iran–Israel–US Conflict: Implications for India’s Auto Sector

As news broke of the US-Israel strike in Iran and subsequent retaliatory strikes on Gulf neighbours such as the UAE and Saudi Arabia, the geopolitical risk premium, industry jargon for the extra price we pay when the world gets messy, sent crude oil prices on a volatile ride. After climbing to $82, prices have hovered near $79, but analysts warn that a jump to $90 is well within sight if the situation does not cool down quickly.

For Indian motorists, automotive companies and the government alike, the math is painful. Every $1 increase in the price of a barrel of oil adds roughly Rs 12,000 crore to India’s annual import bill.

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Asian Automakers Brace for Billions in Losses as Middle East Conflict Chokes Key Shipping Route

Asian automakers are confronting a mounting threat to one of their most lucrative export corridors. The U.S.-Israel military campaign against Iran, now entering its seventh day, is disrupting the flow of vehicles from Asia to the Middle East — a region that absorbs billions of dollars' worth of cars from Chinese, Indian, South Korean, and Japanese manufacturers every year, Reuters reported.

The chokepoint is the Strait of Hormuz, the narrow waterway through which a significant portion of global shipping passes. Fears of Iranian attacks have caused cargo movement along the route to grind to a halt, sending shockwaves through supply chains that stretch from assembly lines in Shanghai and Chennai to dealership forecourts in Riyadh and Dubai.

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Crude Under the Crust: How India’s Deep-Earth Bunkers Hedge Against Middle East Conflict

Every time a missile is intercepted over the Middle East or a drone approaches a tanker in the Persian Gulf, the tremors are felt far beyond the immediate blast radius. For India’s automotive industry, the ongoing conflict involving Iran, Israel, and the US seems to be  a direct threat to the factory floor. The potential blockage of the Strait of Hormuz has sent shockwaves through the sector, sparking panic among motorists and manufacturers who rely on steady fuel prices to keep travel and logistical costs from spiraling out of control.

To combat this, India is looking  beneath the surface, turning to a strategy that is as much about engineering brilliance as it is about geopolitical survival.

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Why India’s CBG Revolution is Stuck in Neutral

In 2018, the Indian government unveiled an energy roadmap that was as audacious as it was green: a plan to deploy 5,000 large-scale compressed biogas (CBG) plants to convert the nation’s agricultural waste into 15 million metric tons of homegrown fuel. Seven years into the initiative, known as SATAT (Sustainable Alternative Towards Affordable Transportation), the arithmetic of India’s energy transition is failing to add up.

As of January 2026, only 133 plants are functional, producing a mere 926 tonnes per day. This supply crunch comes at a precarious time for the domestic automotive industry. Sales of CNG-powered passenger vehicles have surged, with market share jumping from 6% in 2020 to nearly 20% in 2025. While major manufacturers like Maruti Suzuki and Tata Motors have moved aggressively toward gas-based models, the infrastructure required to fuel them remains stuck in a cycle of hyper-local and systemic bottlenecks.

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Can Isobutanol Solve Diesel’s Dirty Emissions Secret?

The automotive industry's quest to decarbonize heavy-duty trucking consistently hits a wall: the stubborn efficiency of the diesel engine. While light-duty vehicles move toward electrification, the weight and range requirements of 19-ton trucks and long-haul freight make batteries a difficult sell. Amidst this struggle, isobutanol, a higher-order alcohol, is being hailed by industry insiders as a diesel-blending alternative that could bridge the gap, yet it remains conspicuously absent from commercial markets.

Isobutanol is produced using the same biological feedstocks as ethanol, rather than being a derivative of ethanol itself. These include grains, specifically maize or broken rice. Industry experts have proposed using sugarcane molasses-based feedstocks for pilot isobutanol plants to utilize excess sugar industry byproducts.

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Govt Drafts TREM V for Tractors from October 2026; 25–75 HP Segment Gets Breather

In a bid to tighten emission norms for non-road vehicles, the government has proposed to introduce Tractor Emission Stage V (TREM V) norms for certain categories of agricultural tractors from October 1, 2026, while the norms for the 25–75 HP tractor category will move to TREM V only from 2032.

The existing emission standards for agricultural tractors, power tillers and combined harvesters will be replaced with Stage V norms in a phased manner, as per a draft notification issued by the Ministry of Road Transport and Highways. At present, tractors below 50 HP adhere to TREM IIIA norms, while those above 50 HP follow TREM IV norms.

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Mahindra to Exit Japan Agri Equipment Business JV

As part of restoring its global agricultural equipment business, Mahindra & Mahindra Ltd said its Japanese associate, Mitsubishi Mahindra Agricultural Machinery Co Ltd, plans to exit the agricultural machinery business and start liquidation.

In a stock exchange filing on Monday, the company said Mitsubishi Mahindra Agricultural Machinery, in which M&M holds a minority stake, will wind down research and development, production, and domestic and overseas sales of farm equipment. It will continue to supply spare parts and honour warranty obligations to customers.

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Escorts Kubota Targets Doubling South India Market Share to Tap Paddy Growth

India’s tractor industry is hurtling toward a record-breaking 11.5 lakh units this fiscal year, representing a staggering 25% year-on-year growth that has caught even seasoned analysts by surprise. Yet, for Escorts Kubota Limited, arguably the country's fourth-largest tractor manufacturer, these record volumes have historically highlighted a glaring regional imbalance: a product gap in the waterlogged paddy fields of Southern India.

The company is now moving to bridge that gap with the launch of the Shaurya series under its value-focused Powertrac brand. Spanning the 39 HP to 52 HP category, the launch of the new product line is a tactical strike aimed at doubling the company's market share in states like Telangana, Andhra Pradesh, Tamil Nadu, and Karnataka within the next three years. Escorts Kubota operates three tractor brands—Kubota, Farmtrac, and Powertrac—catering to the premium, entry-premium, and value segments respectively. 

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India's Auto Retail Hits Record in February 2026, Led by Tractor Surge

Japan and India Move to Break China's Grip on Critical Minerals

According to Reuters, Japan is in talks with India to jointly explore rare earth deposits in the desert state of Rajasthan, as Tokyo seeks to reduce reliance on China for supplies critical to magnet manufacturing. The report, based on two sources directly involved in the decision-making process, marks a notable development in efforts by both nations to reshape global critical mineral supply chains.

The talks are anchored in a recent geological find of considerable scale. India's Mines Minister G. Kishan Reddy announced last month the identification of three hard rock rare earth deposits in Rajasthan and Gujarat, containing an estimated 1.29 million metric tons of rare earth oxides — findings he said could significantly boost India's mineral security. The deposits are located in Rajasthan, a western state known for its arid terrain, and represent one of the more substantial rare earth discoveries in South Asia in recent years.

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BYD Announces Second-Generation Blade Battery and High-Speed Charging Network

BYD has unveiled its second-generation Blade Battery alongside a new charging system it calls FLASH Charging Technology, claiming a new record for electric vehicle charging speed. The announcement was made in Shenzhen, China, on March 6, 2026, and marks what the company describes as its most significant battery development since the original Blade Battery launched in 2020.

The company says the new battery can charge from 10% to 70% state of charge in five minutes, and reaches 97% in nine minutes. In temperatures as low as -30°C, BYD says the time required to charge from 20% to 97% increases by only three minutes compared to charging at room temperature. That cold-weather figure is likely to draw attention in Northern European and North American markets, where low-temperature battery degradation has been a persistent source of consumer dissatisfaction with electric vehicles.

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BYD Posts Steepest Monthly Sales Decline Since COVID Amid China Price War

Inside Three-Pointed Star's Global EV Rethink and Why the CLA Matters More Than It Seems

For most of the last decade, Mercedes-Benz has led India’s luxury car market with an authority few rivals can match. Scale, brand appeal and a widest modern portfolio has kept the three-pointed star firmly at the top.

Electric mobility, however, has proved to be a more intricate chapter. Seen early on as a disruptive force that could redefine the future of mobility, Mercedes-Benz chose to carve out a distinct electric identity, complete with its own design language and architecture. The EQ range was conceived not merely as a powertrain shift, but as a brand-within-a-brand.

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Mercedes Expands Luxury Playbook, Adds V-Class to Strengthen Top-End Portfolio

Mercedes-Benz India has expanded its portfolio beyond sedans and SUVs with the launch of the V-Class, betting that a white space in the luxury MPV segment can drive incremental growth without diluting brand equity.

The German carmaker has introduced the luxury MPV at an introductory price of ₹1.4 crore. The model will initially arrive as a completely built unit (CBU) and will transition to local assembly in Pune before the end of the year.

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Mercedes-Benz Launches V-Class at ₹1.4 Crore; MPV to be Locally Made in Pune

TVS Surpasses Yamaha to Become 3rd-Largest Global 2W Maker by Volume

TVS Motor Company has overtaken Yamaha Motor in global two-wheeler sales to become the world’s third-largest manufacturer by annual volume, marking a rare reshuffle in the global motorcycle industry. Autocar Professional had earlier reported that TVS Motor was expected to surpass Yamaha’s global volume last year.

TVS sold 5.46 million units in 2025, up 20.7% from 4.52 million units in 2024, according to industry data. The sharp increase enabled the Chennai-based manufacturer to surpass Yamaha, which recorded approximately 5 million units in 2025, a modest 0.8% rise from 4.96 million units a year earlier.

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Classic Legends Enters Top 10; Ola Electric Slips Out as Greaves Sells More

Ola Electric slipped out of the top 10 overall two-wheeler manufacturers (ICE + EV) list in February 2026 after its volumes fell below those of Greaves Electric Mobility, which retails vehicles under the Ampere brand. Classic Legends also entered the top 10 during the month, reflecting movement in the lower half of the combined rankings.

Ola Electric reported sales of 3,968 units in February, marking a decline of nearly 47 percent compared to January 2026 and over 54 percent lower than February 2025. In contrast, Greaves Electric Mobility recorded 4,724 units during the month, placing it ahead of Ola in the overall OEM list that includes both internal combustion engine and electric vehicle volumes.

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India's Two-Wheeler Retail Hits Record High in February 2026

Tata Sierra Sells 14,000 Units in 2 Months Since Launch for 11% Share of Tata Motors Sales

Tata Motors, which is set to clock its highest-ever 12-month wholesales of 600,000 units in FY2026, has received a sales booster in the form of the recently launched Tata Sierra SUV. The modern avatar of the Sierra, which was launched on November 25, and received 70,000-plus order confirmations on the first day of bookings opening (December 16), has sold an estimated 14,394 units till end-February 2026. Deliveries to customers commenced from January 15. 

The Sierra, with factory dispatches of 7,003 units in its first full month of sales, contributed 10% to Tata Motors’ highest-ever monthly wholesales of 70,222 units in January 2026, and did even better the next month. With an estimated 7,100 units in February, the Sierra accounted for an 11% share of  Tata Motors’ 62,329 PVs, up 34% YoY. 

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Tata.ev Partners With Hopcharge to Launch On-Demand EV Charging Vans in NCR

Mahindra Brings Back the BE 6 Batman Edition After 999 Units Sold Out in 135 Seconds

Toyota Hyryder Outsells Innova Twice in 4 Months, Toyota Set for Record 360,000 Units in FY2026

The Toyota Urban Cruiser Hyryder has done the unthinkable again. The popular midsize SUV has once again outsold Toyota Kirloskar Motor’s best-selling model, the Innova MPV. Having first achieved this with its highest monthly wholesales of 11,555 units in October 2025, news which was broken by Autocar Professional, the Hyryder has repeated the act in February 2026 with sales of 9,359 units, up 117% YoY (February 2024: 4,314 units). 

The Innova, which comprises the Hycross and Crysta models, sold 8,703 units last month, up 3% YoY (February 2025: 8,449 units). This makes the Hyryder the best-selling Toyota in February 2026, accounting for a 30% share of TKM’s total wholesales of 30,737 units, up 17% YoY. The two Innovas, with 8,703 units, had a 28% share last month. Combined Hyryder and Innova sales, at 18,062 units, comprised nearly 59% of the company’s total PV dispatches last month. 

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Tamil Nadu, Gujarat Lead India's Auto Retail in February 2026

Tamil Nadu and Gujarat posted the most notable state-level gains in vehicle retail for February 2026, while two outlier figures — a 253% jump in West Bengal's three-wheeler registrations and a 64.5% collapse in Delhi's — reflect regulatory events rather than shifts in consumer demand. Nationally, total retail registrations rose 25.6% year-on-year to 24,09,362 units, surpassing the previous best February recorded in 2024.

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Ind-Ra Maintains Neutral FY27 Auto Outlook, Projects 5-8% Volume Growth

India Ratings and Research Projects Steady FY27 Growth for Auto Ancillaries

India's Electric PV Market Sees 44% Annual Surge in February 2026; Monthly Sales Dip Sharply

India's electric passenger vehicle (EV) segment continued its structural growth trajectory in February 2026, with total retail volumes reaching 13,733 units — a robust 44.48% jump compared to 9,505 units sold in February 2025, according to data released by the Federation of Automobile Dealers Associations (FADA). However, on a month-on-month basis, sales contracted sharply by 25.65% from the 18,470 units recorded in January 2026, reflecting typical post-festive season softness.

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India's Electric Two-Wheeler Sales Dip in February 2026, but Annual Growth Holds Firm

Electric Three-Wheeler Retail Sales Fall 12% Month-on-Month in February 2026

India's Electric Commercial Vehicle Retail Holds Steady in February 2026

Mahesh Babu’s Drive to Make Olectra’s EV Math Add Up

Hundreds of silent, electric buses have replaced the raucous diesel engines of old, promised as the green panacea for Mumbai's chronic pollution and transit woes. But behind the sleek, zero-emission facades of these vehicles, a high-stakes mathematical discrepancy threatens to stall the electric vehicle (EV) transition's momentum.

For Mahesh Babu, the Managing Director of Olectra Greentech who took charge about five months ago, the challenge is reconciling the "reality gap" between paper-thin tender assumptions and the crushing operational reality of Indian urban density. Previously, he served as CEO of SWITCH Mobility and Managing Director of Mahindra Electric.

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Uber Launches Intercity Bus Ticketing in India, Its First Market Globally for the Service

Motilal Oswal Acquires 1.65% Stake in Zelio E-Mobility for ₹9.8 Crore

Motilal Oswal Financial Services has acquired 3.5 lakh shares of Zelio E-Mobility, representing a 1.65 percent stake in the BSE-listed electric vehicle manufacturer. The transaction, recorded in exchange data, was executed at ₹280 per share, amounting to a total consideration of ₹9.8 crore.

Zelio E-Mobility's shares were trading at approximately ₹338 at the time of the transaction, up around 10 percent in early trade, reflecting continued market interest in the company. Its market capitalisation stood at ₹716 crore.

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Ola Electric Cuts Roadster Prices, Starting at ₹79,999

Ultraviolette Cuts Entry Price of X-47 by 40% With Battery Subscription Plan

KTM AG Prepays €450 Million Loan from Bajaj Auto Arm

Bajaj Auto Ltd on Wednesday said its step-down subsidiary, KTM AG, has cleared all outstanding dues under the earlier €450 million secured term loan provided by Bajaj Auto International Holdings BV.

“KTM AG has pre-paid all the outstanding dues under the said facility agreement to BAIH BV. This has consequently marked the termination of the agreement on March 5, 2026,” the Pune-based company said in an exchange filing.

Last week, KTM AG secured a €550 million (about Rs 5,904.8 crore at an assumed exchange rate of €1 = Rs 107.36) refinancing loan from an international banking consortium to refinance its existing debt with Bajaj Auto International Holdings BV. The consortium includes DBS Bank Ltd, JP Morgan S.E., The Hongkong and Shanghai Banking Corporation Ltd, and MUFG Bank Ltd.

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MRF Signs MoU with Tamil Nadu Government for Greenfield Tyre Plant in Sivaganga

MRF Limited has entered into a Memorandum of Understanding (MoU) with the Government of Tamil Nadu to set up a Greenfield manufacturing facility for automotive tyres and allied products in Sivaganga District. The agreement was signed on 4th March 2026 through the state's nodal investment facilitation agency, Guidance, and was disclosed to Indian stock exchanges the same day.

The proposed plant is to be located at the SIPCOT Industrial Park in Sivaganga District, in the southern part of Tamil Nadu. The company estimates a total investment of approximately Rs 5,300 crore over a period of 12 years. Upon completion, the facility is expected to generate direct employment for around 1,000 persons, with the potential for additional indirect employment in ancillary and support industries in the region.

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Marposs Eyes India as a Top-three Market in Five Years

As Marposs sets sight on high-growth markets, India is emerging as a strategic priority in the group’s game plan. The Italian precision engineering company, known for its grinding, measurement and machine-monitoring systems, currently counts India among its top 10 markets. However, on the back of rapid industrial expansion, technology upgrades, the country is expected to be in the top three list over the next five years.

Cosimo Cereda, managing director of Marposs India operations, sees the opportunity here on two fronts. On one side, India’s industrial base is expanding in double digits, particularly in automotive and advanced engineering spaces. On the other side, manufacturers are moving up the value chain with tighter tolerances, better process control, and global quality benchmarks. For Marposs - whose solutions are for precision and defect prevention - that transition creates structural demand, not just a cyclical opportunity.

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The Car that Exists Before it Exists

Across four vehicle development programmes, engines built by Jaguar Land Rover, Isuzu, Mahindra, and Sharda Motor Industries, engineers using the same simulation software cut development time by an average of 58% and reduced costs by 43%. Those are not projections. They are outcomes—documented across production programmes, on hardware that is on the road today.

The numbers deserve a moment because they reframe a question the automotive industry usually treats as an engineering one. It is a question of whether a manufacturer can afford not to, particularly in India, where development timelines are compressing and powertrain complexity is multiplying.

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Tata Elxsi Releases AI Platform Aimed at Automotive Software Development

Tata Elxsi announced on Wednesday the commercial launch of DevStudio.ai, a multi-agent generative AI platform designed specifically for automotive software engineering. The platform is aligned with the Automotive SPICE (ASPICE) quality framework and supports the full software development lifecycle (SDLC), from requirements and architecture through implementation, testing, and qualification.

According to the company, DevStudio.ai is capable of operating in both cloud-based and air-gapped on-premise environments, a feature intended to accommodate the varied infrastructure and data-security policies of large enterprise clients in the automotive sector. The platform also integrates with existing OEM and Tier-1 supplier toolchains, allowing engineering teams to incorporate the system into their current workflows without wholesale changes to their development environments.

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Tata Technologies and WITTENSTEIN Form Partnership to Develop Software-Defined Vehicles

Lumax Auto Technologies Appoints Pooja Minocha as Chief Human Resource Officer

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India Auto Sales Surge In February: Strong Retail Momentum Across Segments, But Global Risks Loom

India’s automobile industry delivered an exceptional performance in February, with strong growth recorded across passenger vehicles, two-wheelers, tractors and commercial vehicles. In the latest episode of the AP Trends Podcast, auto industry expert Arun Malhotra highlights how robust retail demand, stable pricing, and continued benefits from GST rationalisation have driven a sharp upswing in the market. February auto sales - both wholesale and retail,  signal a strong recovery in consumer sentiment and dealership momentum.

However, while February’s numbers reflect powerful demand, global uncertainties could influence the trajectory ahead. Rising crude prices and geopolitical tensions in the Middle East could affect supply chains, consumer sentiment, and costs in the coming months. Silver lining is that dealer inventories are currently at comfortable levels and most OEMs have strong bookings in the pipeline. Despite headwinds, the industry is expected to close FY26 with record volumes, particularly in two-wheelers and tractors, making GST rationalisation the defining catalyst behind this year’s growth story.

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Electronics to Drive 90% of Future Automotive Technologies, Says Infineon’s Girish Kamala

Electronics is rapidly emerging as the central force behind India’s automotive transformation, with nearly 90% of upcoming automotive technologies expected to depend on it, according to Girish Kamala, Senior Director and Head of Automotive, India, at Infineon Technologies.

Speaking at SIAT 2026, Kamala pointed out that the scale and intensity of discussions around electronics have grown sharply across the ecosystem. Tier 1 and Tier 2 suppliers today are discussing electronic content nearly 20 times more frequently than they did five years ago, reflecting how deeply semiconductor and power electronics technologies are reshaping vehicle development.

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