India’s automotive industry is entering a period of transition, with automakers and suppliers taking fresh bets on products, powertrains, manufacturing and technology. Skoda is at the centre of this shift, looking to deepen its India footprint with a potential local partner, a CNG push and new electric vehicles, while Volkswagen is also positioning India for a larger role in its global strategy.
Olectra Greentech is preparing for a sharp increase in electric bus deliveries, targeting 1,200 vehicles a quarter by FY28 as it works through supply chain and infrastructure constraints. The government has also given a boost to domestic electronics manufacturing, approving 31 new projects worth Rs 6,844 crore under the Electronics Components Manufacturing Scheme. The projects cover several areas critical to automotive and EV supply chains.
SIAM, meanwhile, has called for the removal of the 2.5% import duty on aluminium scrap, citing rising costs and tightening supplies. Yokohama India is weighing an entry into the two-wheeler tyre market by end-2027, potentially starting with premium radial motorcycle tyres. Together, these developments highlight an industry balancing localisation, alternative powertrains, capacity expansion and changing market demand.
Here is a detailed round-up of the key developments that shaped the automotive industry during the week:
Skoda Looks at Next India Chapter: New Investment, CNG and EV Plans
Skoda sees India playing a bigger role in its global growth, spanning sales, manufacturing, engineering and product development. The company is aggressively evaluating CNG for its 1.0-litre turbo engine, while planning limited EV imports next year. Its India 3.0 programme could involve around one billion euros, with a CNG Kylaq in 2027 and locally made BEVs from 2028. Skoda is also considering a strategic partner and remains committed to sedans.
India will Help Define how Skoda Grows Globally: CEO Klaus Zellmer
Skoda Auto Closes In on Next Phase of India Investment
Skoda to Bring EVs to India in Limited Batches Next Year, Hybrid Strategy on the Backburner
Skoda Plans CNG Push, Larger SUV under Study as it Charts its Next India Chapter
Skoda Bets on Sedan Legacy as New Slavia Leads India Portfolio Push
Skoda Auto Expects to Conclude India Partnership this Year: Klaus Zellmer
Skoda Auto expects to finalise an Indian partner by the end of this year as Volkswagen Group plans its next phase of growth in the country. CEO Klaus Zellmer said a local partner could strengthen momentum by providing capital and capabilities, supporting product expansion, EV development, engineering and manufacturing operations.
Volkswagen’s India Reset: Compact SUV Confirmed, Bigger Product, Investment Push on the Cards
Volkswagen CEO Thomas Schäfer says India will play a bigger role in Volkswagen’s global strategy as the company looks to cut costs, expand exports and deploy its wider powertrain portfolio in the market.
SIAM Seeks Removal of 2.5% Import Duty on Aluminium Scrap
SIAM has urged the government to remove the 2.5% customs duty on aluminium scrap, citing rising costs and tightening global supplies. The auto industry relies heavily on recycled aluminium, but domestic scrap collection meets only 15% of demand. Supply risks have increased after West Asia tensions and the UAE’s temporary export restrictions.
Olectra Targets 1,200 Electric Bus Deliveries a Quarter in FY28
Olectra Greentech plans to ramp up electric bus deliveries to around 1,200 vehicles per quarter in FY28, from 358 in the latest quarter. The company has an order book exceeding 8,000 buses, but says supply chains, depot readiness, power availability and market absorption remain key constraints.
The Gas Gambit: How CNG Became Maruti Suzuki’s True Growth Engine
Maruti Suzuki’s long-term CNG strategy has helped it offset the decline in petrol vehicles without relying heavily on EVs. Between 2021 and the first half of 2026, CNG’s share of Maruti registrations nearly tripled to 41.2%, while petrol’s share fell to 45.9%.
Govt Clears 31 More Electronics Manufacturing Projects
The government approved 31 projects under the Electronics Components Manufacturing Scheme, involving Rs 6,844 crore in investment. Several projects target automotive electronics and EV supply chains, including anode materials, conductive additives, rare earth magnets, connectors, displays, sensors and camera modules. Cumulative approvals have reached 106 projects worth Rs 69,548 crore.
Epsilon Gets ₹145 Crore Support for Anode Material Project
Spark Minda Gets ECMS Nod for Greenfield TFT Display Unit
Yokohama India Eyes Entry Into Two-Wheeler Tyre Market by 2027
Yokohama India is evaluating entering India’s two-wheeler tyre market by end-2027, potentially starting with premium radial motorcycle tyres before moving into higher-volume segments. The company is assessing market potential before committing, as it looks to expand beyond its established passenger car and SUV tyre business.
CII GreenCo’s Common Auto ESG Platform to Go Live by FY27-End
CII’s GreenCo Council is developing a common ESG framework and digital platform for India’s automotive supply chain, targeting full operation by end-FY27. The system will help OEMs and suppliers track and reduce Scope 3 emissions, eventually extending to Tier 2 and Tier 3 suppliers, with CII calling it a first-of-its-kind global initiative.
BMW Expects India-Made X1 LWB To Lift First-Time Luxury Buyer Share By 10%
BMW Group India expects the new X1 Long Wheelbase to increase first-time luxury buyers by 10 percentage points from the previous model’s 50% share. The SUV adds 110mm in length and wheelbase, boosting rear legroom by 150mm. Long-wheelbase models already account for 52% of BMW India’s sales.
CAQM Approves Phased Registration Ban on Fossil-Fuel Goods Vehicles Across Delhi-NCR
CAQM has approved a phased ban on new registrations of petrol, diesel and CNG light goods vehicles in Delhi-NCR. N1 vehicles up to 3.5 tonnes will face restrictions in Delhi from January 2027, followed by high-density districts and the rest of NCR. Similar curbs on heavier N2 vehicles will extend through January 2029.
BKT Bets on Digital, AI and Rider Communities to Build Consumer Tyre Brand
BKT is targeting a place among India’s top three tyre brands in consumer recall as it expands its B2C business beyond off-highway tyres into two-wheelers, commercial vehicles and passenger cars. The company is increasing digital marketing, AI and community-led engagement to connect with individual consumers.
Brazilian Experience Suggests E20 Fears Overblown: Infineum Experts
When Brazil introduced higher ethanol mandates in the 1970s, motorists raised concerns over engine damage. However, long-term data shows standard petrol vehicles running on E20 and higher blends did not face major mechanical failures, with problems largely confined to early vehicles using pure E100.
Engineering for an Uncertain Future
With no clear winner among powertrains, flexible multi- energy platforms are becoming the industry's biggest insurance policy.
VinFast Elevates Tapan Ghosh to Lead India, Indonesia Operations
VinFast has expanded India CEO Tapan Ghosh’s role to include Indonesia, making him the first Indian executive to lead multiple Asian markets for the automaker. Ghosh, now CEO of VinFast ASIA, will oversee India and Indonesia, excluding Vietnam. His remit expands as VinFast builds manufacturing and dealer networks in both markets.
Hyundai Motor India to Raise Vehicle Prices by up to 1% From September
Hyundai Motor India will raise vehicle prices by up to 1% from September 2026, with increases varying by model and variant. The company cited rising input and commodity costs, higher operating expenses and geopolitical and macroeconomic uncertainties, despite efforts to absorb costs and limit the impact on customers.
Tata Motors to Raise Prices of Cars and SUVs by Up to Rs 25,000 from September
Tata Motors Passenger Vehicles will raise prices across its ICE and electric car and SUV portfolio by up to Rs 25,000 from September 1. The company cited rising input costs and inflationary pressures, saying the hike will vary by model and variant while it continues absorbing a significant portion of higher costs.
Euler Motors Invests Rs 100 Crore to Expand Palwal Plant
Euler Motors has commissioned a dedicated four-wheeler production line at its Palwal plant in Haryana, investing Rs 100 crore and raising annual capacity to 24,000 vehicles. The facility will produce the Turbo EV 1000 electric truck and ADAS-equipped Storm EV, with in-house battery assembly and testing facilities.
Maruti Suzuki's FRONX Becomes Fastest SUV From India to Cross 2 Lakh Exports
Maruti Suzuki’s Fronx has crossed 2 lakh exports in under 38 months, making it the fastest Indian SUV to reach the milestone, according to SIAM data. Exports began in June 2023, with the second lakh achieved in around 13 months. The Fronx is made at Hansalpur, Gujarat, and shipped to nearly 90 countries.
Exicom Makes India’s First Liquid-cooled Charging Modules, Starts US Exports
Exicom has started manufacturing India’s first liquid-cooled power modules for EV chargers at its Hyderabad facility and is exporting them to the US. The company invested about $3.5 million and spent nearly two years developing the technology. The modules are used in next-generation DC fast chargers and solar inverters for international markets.
Cybersecurity Dialogue Ep1: Can Your Car be Hacked?
Spark Minda CTO Dr Suresh D and HackersEra CEO Vikas Chaudhary discuss why cybersecurity must be embedded into vehicles from the design stage.
Escorts Kubota Breaks Ground on ₹2,000 Crore Manufacturing Plant in Uttar Pradesh
Escorts Kubota has started construction of a new 154-acre manufacturing plant in Uttar Pradesh, involving investment of over Rs 2,000 crore. Phase one will have annual capacity for up to 60,000 tractors and 15,000 construction equipment units. Subsequent phases will expand the facility, potentially making it one of Kubota Group’s largest globally.
From Watches to Factory Automation: Inside Titan Engineering’s Next Growth Bet
Born from Titan’s need to build its own watchmaking equipment, TEAL has grown into a nearly ₹1,500-crore engineering business. With capacity now running full, it plans to invest close to ₹400 crore as it looks to semiconductors, electronics, batteries and EVs for its next phase of growth.
PV Dealers Set For 10-12% Growth On Demand, Premiumisation
Domestic passenger vehicle dealers are expected to see 10-12% revenue growth in fiscal 2027, according to Crisil Ratings, supported by healthy demand, premiumisation and OEM price hikes. PV volumes are projected to grow 8-10%, although rural demand could weaken due to El Niño risks and higher fuel prices amid West Asian tensions.
Rane Completes Hindustan Composites Friction Business Acquisition
Rane (Madras) has completed its acquisition of Hindustan Composites’ friction business after securing regulatory approvals and meeting closing conditions. The deal, signed in June 2026, will see the business integrated into RML’s Brake Components Business in phases, with the company targeting operational synergies and complementary capabilities.
Relux’s Big EV Charging Bet: Pan-India Expansion, ₹50 Cr Revenue & 5,000 Chargers
Relux Electric founder Kartikeyan Santharam discusses India’s EV charging ecosystem, expansion plans, fast-charging infrastructure, funding discipline and the company’s strategy for nationwide growth.
Exide Industries Infuses Rs 200 Crore into EV Battery Arm Exide Energy Solutions
Exide Industries has invested about Rs 200 crore in wholly owned subsidiary Exide Energy Solutions through a rights issue, taking cumulative investment to Rs 5,102.23 crore. The funding supports EESL’s greenfield multi-gigawatt lithium-ion battery cell plant in Bengaluru. Exide’s ownership remains at 100%.
Genesys International Appoints Nikhil Alulkar as New CEO
Genesys International has appointed former Tech Mahindra executive Nikhil Alulkar as CEO as it seeks to expand beyond government projects. Alulkar will lead operations and growth, with the company targeting greater adoption of its mapping, Digital Twin and spatial intelligence platforms among enterprise and B2B customers in India and overseas.
Two-Wheeler Loans: India’s Biggest Yet Riskiest Credit Entry Point
India’s active two-wheeler borrowers rose from 2.3 crore to 3.6 crore in five years, pushing outstanding loans to Rs 1.9 lakh crore by June 2026. NBFCs account for 70.6% of originations. Average loan balances increased to Rs 50,000, while premium and electric models above Rs 1 lakh represent 43% of new loan value.
Used Cars, Commercial Vehicles Emerge as Fastest-Growing Segments in India's Vehicle Finance Market
India’s vehicle finance market is becoming more segmented, with used-car loans growing 26.2% annually over five years to June 2026, followed by commercial vehicle loans at 20.1%. Two-wheeler financing remains the largest segment, reaching 3.6 crore borrowers, with 80% new to credit, highlighting its role in financial inclusion.
Bajaj Pulsar 125, Pulsar 150 Set for August 24 Launch with Major Updates
Bajaj Auto will launch updated Pulsar 125 and Pulsar 150 motorcycles on August 24, with both expected to get new chassis and monoshock rear suspension. The Pulsar 150 is also expected to receive an updated oil-cooled engine, while details of the Pulsar 125’s revised engine remain unconfirmed.
India’s Used Car Loan Boom Battles a Two-Day Disbursal Lag
India's used car loan portfolio reached Rs 1.3 lakh crore in June 2026, growing at an annual rate of 26.2 percent over five years. This rapid expansion makes pre-owned vehicle financing the fastest-growing segment in the country's auto credit market.
Deep Drive Podcast: The Lowdown on Pickups
The new Toyota Hilux and Mahindra Scorpio Lifestyler have put the spotlight on the Lifestyle Pickups segment. Hormazd Sorabjee and Sergius Barretto discuss the new models and why pickups could see increased interest
BMW on India’s Luxury Market: X1 LWB, EVs & What Comes Next
Hardeep Singh Brar, President and CEO, BMW Group India talks about the new X1 LWB, BMW’s plan to attract more first-time luxury customers and BMW’s upcoming product pipeline.
Velusamy R on BE Sporteq, Google Gemini AI & 40% EV Target
Velusamy R, President – Automotive Technology and Product Development at Mahindra, speaks about the new BE 6 Sporteq, Mahindra's new Maya AI and production capacity plans as EV demand in India grows.