Weekly News Wrap: Skoda-JSW Explore JV, Ultraviolette Plans ₹1,000-Crore Bet, BMW Eyes Top Spot

India’s automotive industry saw another busy week between September 7 and 13, led by fresh investment and partnership plans, record vehicle retail, faster electric mobility adoption and new policy signals around ethanol and vehicle imports.

Skoda Auto and JSW took a step towards a proposed automotive joint venture, Ultraviolette outlined a ₹1,000-crore expansion programme, while BMW India said it is aiming for the top spot in the luxury-car market as EVs become a larger part of its sales. The government, meanwhile, indicated that the next phase of the ethanol programme will focus on flex-fuel vehicles and blends beyond E20.

Passenger Vehicles

Skoda, JSW Explore Strategic Joint Venture

Skoda Auto and JSW Green Mobility signed a non-binding memorandum of understanding to explore setting up a strategic automotive joint venture in India.

The proposed venture would develop, manufacture and sell passenger vehicles for India as well as export markets, covering internal-combustion, electric, plug-in hybrid and hybrid powertrains. The two companies stressed that discussions remain at an early stage and no definitive agreement has been signed.

The development gives further shape to JSW Group’s automotive ambitions even as it prepares its own vehicle business. Separately, JSW Motors’ first product, the Combat, is expected to be a five-seat plug-in hybrid SUV based on the Chery Jetour T2 and could make its India debut during the festive season. The SUV is expected to be positioned in the ₹30-50 lakh range.

BMW Eyes No. 1 Spot as EV Share Rises

BMW India is aiming for the top spot in the country’s luxury-car market after growing faster than the wider segment. 

The company grew around 15% in the first half of 2026 and is targeting more than 20,000 car sales for the full year. Electrification is becoming increasingly important to that growth. EVs accounted for 26% of BMW India’s sales in the first half, with 2,359 electric vehicles sold, up 78% year-on-year. The company expects EV penetration to cross 30% in the second half.

BMW is also betting heavily on long-wheelbase models, which are expected to account for around 60% of sales by year-end, up from 52% in the first half. The carmaker sees limited scope for plug-in hybrids in India as EV range improves and expects diesel to gradually lose share to electric vehicles.

Cost pressures remain a concern. BMW is considering a fourth price increase this year from October after three rounds of revisions as currency and commodity pressures weigh on costs.

Maruti Heads Towards Two Million Domestic Sales

Maruti Suzuki is on course to cross two million domestic passenger vehicle sales in a calendar year for the first time. The market leader sold 1.40 million vehicles in the first eight months of CY2026, up 22% year-on-year, and accounted for about 40% of domestic PV wholesales. Based on its current run rate and festive demand, the company could end the year above the two-million mark.

Its Ertiga MPV also crossed cumulative domestic sales of 1.5 million units, reaching 15,13,574 units since its 2012 launch. At the same time, the carmaker announced price increases of up to ₹20,000 on select models in September, citing sustained input-cost inflation.

Commercial Vehicles

Mahindra Bets on Replacement Demand, Adds Capacity

Mahindra & Mahindra expects small commercial vehicle demand to maintain double-digit growth in the second half of FY27, supported by a replacement cycle and demand from rural markets, infrastructure activity and urban logistics.

The company is preparing to operationalise additional capacity that will take its overall commercial vehicle capacity to around 36,000 units a month.

Mahindra also launched the Veero 1.1-tonne CNG, priced from ₹8.25 lakh, as it looks to strengthen its presence against products such as the Tata Intra and Ashok Leyland Dost.

Exports are emerging as another opportunity. Following a 35,000-unit Scorpio Pik Up order from Indonesia, Mahindra is evaluating small-CV opportunities across Southeast Asia and Africa.

Eicher, meanwhile, said its electric truck and bus fleet has grown to nearly 2,000 vehicles across distribution, tarmac, school, staff and city-bus applications.

Electric Mobility

Ultraviolette Plans ₹1,000-Crore Expansion

Ultraviolette Automotive outlined one of the biggest investment plans of the week, committing around ₹1,000 crore over five years to manufacturing, supply-chain development and new products.

Around ₹200 crore will go into its existing operations while ₹800 crore will be invested in a new Tamil Nadu plant. The company plans to build a six-product portfolio spanning electric motorcycles and scooters.

The new facility will initially have capacity for around 2.5 lakh vehicles annually and can eventually scale to five lakh units. Combined with the expansion of its existing Bengaluru operation, Ultraviolette expects total annual capacity to reach around three lakh units by mid-2027.

BGauss also stepped up its product-development programme during the week, unveiling a common modular EV architecture designed to shorten development cycles by allowing different motor, battery and wheel configurations on the same platform.

India Crosses 10 Million Cumulative EV Sales

India crossed another electric-mobility milestone, with cumulative EV sales since 2017 reaching 10 million units.

Around nine million of those vehicles were sold in the past five years. EV penetration has increased to around 11% in CY2026, while 2.26 million electric vehicles had already been sold in the first eight months and eight days of the year.

FADA data for August also showed EV retail jumping 52.9% year-on-year to 2,98,448 units, with penetration rising to 12.3% from 9.5% a year earlier.

Electra EV Scales Up as Commercial EV Demand Surges

Electra EV is expanding battery-pack capacity from 3.6 GWh to more than 7 GWh as its monthly business run-rate has jumped sharply over the past six months. The company is scaling across three-wheelers, LCVs, buses and battery-energy storage, while adding a Chennai facility and evaluating sites in Gujarat and Maharashtra.

Two-Wheelers

Classic Legends Moves From Turnaround to Capacity Expansion

Classic Legends said its turnaround phase is over, with improving Jawa, Yezdi and BSA sales shifting the focus to capacity expansion. The company retailed 22,279 motorcycles in April-August FY27, up about 87% year-on-year, and Co-Founder Anupam Thareja said it is currently selling what it can produce.

The company is also seeing an improvement in after-sales engagement, with paid-service retention rising to 54% from around 45% a year earlier. During the week, Jawa also launched the updated 42 All Stars at ₹1.79 lakh, with more than 60 changes across design, chassis and ergonomics.

Policy and Fuels

Government Looks Beyond E20

After reaching 20% ethanol blending in petrol, the government’s attention is shifting towards flex-fuel vehicles and blends above E20.

PMO Advisor Tarun Kapoor said higher blends would need to be used with flex-fuel vehicles as India seeks to absorb additional ethanol production and expand the role of biofuels.

India supplied 895 crore litres of ethanol by the end of August, equivalent to around 85% of the 1,048 crore litres contracted for the 2025-26 ethanol supply year.

India-EU FTA Opens Door to Lower-Tariff Car Imports

Details of the India-European Union free trade agreement also emerged during the week.

European carmakers will initially be allowed to import one lakh completely built-up ICE and non-plug-in hybrid vehicles annually at concessional tariffs, with the quota gradually rising to 1.6 lakh from the tenth year.

Meanwhile, Yulu opposed the road transport ministry's proposal to remove the existing 60kg weight ceiling for low-speed electric vehicles exempt from registration and licensing requirements.

Auto Components and Technology

Hero Motors Looks Beyond Auto, Seeks Broader Customer Base

Ahead of its IPO, Hero Motors said it is exploring acquisitions and strategic alliances outside automotive as it searches for new high-growth businesses. Chairman Pankaj Munjal said the company has spent nearly two years studying opportunities, particularly in North America and Europe.

The powertrain supplier is also trying to reduce customer concentration. Its top 10 customers accounted for 72.89% of FY26 revenue, down from 78.03% a year earlier, while its largest customer alone contributed 35.57%.

Aumovio, the automotive supplier spun off from Continental, is also preparing a lower-cost single-camera ADAS system for India, aimed at bringing driver-assistance functions to smaller and more affordable cars.

EU Cyber Rule Puts Indian Suppliers on a 24-Hour Clock

Indian auto and technology suppliers selling certain connected products in Europe will face new 24-hour cybersecurity reporting requirements under the EU Cyber Resilience Act from September 11. Companies covered by the rules must provide an early warning within 24 hours of discovering an actively exploited vulnerability or severe security incident, followed by a more detailed notification within 72 hours.

India Makes EV BMS Cybersecurity Testing Mandatory

India has introduced mandatory cybersecurity testing for wireless battery management systems used in L-category EVs. The amendment to AIS-156 tests whether unauthorised devices or apps can connect to a BMS, access data or execute safety-critical functions such as disabling charging or opening battery contactors.

August Retail Sets New Records

FADA’s August numbers underlined the strength of the market across most vehicle segments.

Passenger vehicle retail rose 16.14% to 4,02,398 units, marking the first time August sales crossed four lakh units. Rural PV demand increased nearly 25%, substantially faster than urban growth.

Two-wheeler retail increased 19.69% to 17.15 lakh units, also the highest-ever August, while EV penetration in the segment crossed 10%.

Commercial vehicle sales increased 14.45% to 90,769 units, while three-wheeler retail rose 8.64% to 1.22 lakh units, with EVs accounting for more than 65% of three-wheeler sales.

Tractors were the outlier, with retail increasing just 0.84% to 87,977 units as uneven monsoon conditions weighed on demand.