From EV expansion plans to billion-dollar deals, the auto industry charts a decisive path into 2026.
28 Dec 2025 | 6943 Views | By Darshan Nakhwa
India’s automotive industry wrapped up the final week of 2025 on a strong note, with manufacturers outlining ambitious electric vehicle roadmaps, announcing fresh investments, and consolidating positions through strategic acquisitions. From Tata Motors’ expanding EV portfolio to renewed momentum in the commercial vehicle and components space, the week underscored how ...
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India’s automotive industry wrapped up the final week of 2025 on a strong note, with manufacturers outlining ambitious electric vehicle roadmaps, announcing fresh investments, and consolidating positions through strategic acquisitions. From Tata Motors’ expanding EV portfolio to renewed momentum in the commercial vehicle and components space, the week underscored how policy tailwinds, capital inflows and product-led strategies are reshaping the sector.
Tata Motors reaffirmed its dominance in the electric passenger vehicle space, outlining plans to add five new EVs to its portfolio by FY30, including models under the upcoming Avinya brand. The company said it aims to cover every major price point in the EV market, building on strong demand for the Nexon and Punch EVs.
Deal activity remained strong during the week. BP agreed to sell a 65% stake in Castrol to private equity firm Stonepeak in a $10 billion deal, marking one of the largest transactions in the global lubricants space. HARMAN also announced the acquisition of ZF’s ADAS business for €1.5 billion, strengthening its position in automotive electronics and software.
Closer home, Samvardhana Motherson moved to acquire Nexans AutoElectric’s wiring harness business for €207 million, reinforcing India’s growing role in global automotive supply chains.
Ola Electric, meanwhile, received ₹366.78 crore under the PLI-Auto scheme, strengthening its manufacturing push, while Ather Energy announced a price hike amid rising input costs. Renault and Triumph also confirmed price increases effective January 2026.
Here’s the detailed round-up of all major developments from this week:
Tata Motors to Launch Avinya EV Brand by the End of 2026, to Add 5 New EVs by FY30
The company announced on Tuesday that it will enter the premium EV market under the Avinya brand by the end of 2026, following the Sierra EV and Punch EV during the year. Apart from these name plates, Tata Motors will be adding three new brands to its portfolio by FY30.
GST 2.0 Lifts ICE Sales, but Tata Motors Sees no Alarm for EVs Yet
He cautioned that the December quarter is not the right lens to judge consumer behaviour, given the distortions caused by the festive season and year-end buying. “This is a very high-volume quarter because of the festive season and December sales,” Chandra said during a media interaction. “The real impact has to be seen from January onwards, when we get a clearer sense of how customers respond.”
Tata Motors Bets on New Models to Regain 45-50% EV Market Share
Petrol SUVs Could Be 50% of the Premium Market in Three Years: Tata Motors' Vivek Srivatsa
M&M Seals No. 2 Position in 2025, Tata may Edge Ahead of Hyundai for No. 3
According to Vahan data till December 25, M&M’s registrations were around 5.81 lakh units in the calendar year, against 4.90 lakh units in 2024. Tata Motors saw its registrations increase to 5.52 lakh units from 5.38 lakh units, while Hyundai’s registrations fell to 5.50 lakh units from 5.60 lakh units last year.
BP Agrees to Sell Majority Stake in Castrol to Stonepeak in $10 Billion Deal
Under the terms of the agreement, Stonepeak will acquire a 65% stake in Castrol, while BP retains 35% ownership in a newly formed joint venture. The transaction is expected to generate approximately $6 billion in net proceeds for BP, which will be fully allocated toward reducing the company's net debt.
HARMAN to Acquire ZF's ADAS Business for €1.5 Billion
The deal includes ZF's automotive compute solutions, smart cameras, radars, and ADAS software functions. Approximately 3,750 ZF employees across Europe, the Americas, and Asia are expected to join HARMAN when the transaction closes in the second half of 2026, pending regulatory approvals.
Motherson to Acquire Nexans AutoElectric Wiring Harness Business
AutoElectric, a manufacturer with approximately 60 years of experience in automotive wiring harnesses, generated revenues of €749 million in 2024. The company's operations span both passenger vehicles, which comprised 81% of revenues, and commercial vehicles at 19%.
Belrise Industries, Plasan Sasa Form Partnership for Electric Military Vehicles in India
The collaboration brings together Belrise Industries, an Indian automotive systems manufacturer, with Plasan Sasa, an Israeli company specializing in armor and protection systems for military vehicles. The two companies will work to adapt the All-Terrain Electric Mission Module for use by Indian defense forces.
Equipment-as-a-Service Model Touches Rs 100 Crore Revenue Stream for Volvo CE India
Dimitrov Krishnan, Managing Director of Volvo CE India, highlighting this transition, said, "Services business is actually the bedrock of a stable construction equipment industry business performance," he said on the sidelines of the EXCON 2025 event held in Bengaluru.
Steel Strips Wheels to Expand Gujarat Operations with ₹420 Crore Investment
The company's board approved the execution of a lease agreement with AMW Autocomponent Limited (AACL), its wholly owned subsidiary, for an initial period of 11 months commencing December 26, 2025. The lease covers approximately 288,793 square meters of land situated at Bhuj-Bhachau Road, Near Village Kannaiyabe, Kachchh, Bhuj, Gujarat, with a monthly rental of ₹45 lakh.
Ola Electric Receives ₹366.78 Crore PLI-Auto Incentive from Ministry of Heavy Industries
The sanction covers the Demand Incentive for the Determined Sales Value for FY 2024-25. The payment will be released through IFCI Limited, the designated financial institution for disbursement under the scheme. The incentive has been sanctioned according to the applicable terms and conditions of the PLI-Auto Scheme, as amended from time to time.
Ola Electric Launches Hyperservice Centres with Same-Day Service Guarantee
Renault India Announces Price Increase Across Vehicle Range from January 2026
The adjustment will vary depending on specific models and variants within the company's portfolio. According to the automaker, the decision stems from increased input costs and ongoing macroeconomic challenges affecting the automotive sector.
Triumph Motorcycles to Increase Prices from January 2026
The price revision comes after the brand absorbed the impact of a recent GST slab revision on motorcycles above 350 cc. The company had also offered a 'Special Festive Price' on the Speed 400 and Speed T4 models to protect customers from increased ownership costs.
Ather Energy Announces Price Increase of Up to ₹3,000 on Electric Scooters
India Yamaha Motor Appoints Hajime Aota as Chairman
Aota previously served as Executive Officer at Yamaha Motor Co., Ltd. and Chief General Manager of the Corporate Strategy Center at the company's global headquarters in Japan.
Naxatra Labs Raises $3 Million for Electric Motor Technology
ICRA Raises Tractor Growth Forecast to 15-17% for FY2026
The rating agency's revision comes on the back of robust industry performance in recent months. Wholesale tractor volumes registered 30.1% year-on-year growth in November 2025, while cumulative growth for the first eight months of FY2026 stood at 19.2%.
Long Reads
A Year of Reset: India's PV Market's Late-2025 Revival
The turning point came in September with the rollout of GST 2.0. The reform reset vehicle affordability across segments and coincided with the festive season, pulling buyers back into showrooms and restoring momentum after a prolonged period of hesitation.
India's CV Market Roars Back in 2025 on Policy Reforms and Infra Boost
Analysts now anticipate that the combination of recent Goods and Services Tax (GST) reforms and heightened government capital expenditure (capex) will propel the sector to a strong close in November and December, potentially delivering higher-than-expected growth for the full financial year (FY26).
A Look Back at the Major Policy Developments of 2025
It began with a reform-heavy Union Budget that offered income-tax relief to consumers and cut duties on several battery components, giving a push to electrification. Midway through the year, the government unveiled the draft of the next-generation CAFE 3 norms, signalling a sharper turn toward efficiency and cleaner technologies.
Takshi Auto Targets ₹1,000-Crore Turnover by 2030, Eyes M&As, Defence JV
Founder and Managing Director Amol Patel says Takshi Auto, which currently clocks around ₹550 crore in annual turnover, is targeting ₹1,000 crore by 2030. Patel expects this growth to be fuelled by rising domestic demand, a new defence-axle joint venture with a European partner, an EV-focused last-mile mobility strategy, and strategic acquisitions to expand into new product lines.
Insights & Interpretations
How Technology is Powering India’s EV Charging Revolution
As of mid-2025, India’s public charging stations scaled up to more than 29,000 from just 1,800 sites in February 2022. The jump mirrors India’s explosive EV sales; the fiscal year 2025 alone recorded 1.96 million electric vehicles sold, a 17% increase over the previous year. Promisingly so, this rapid expansion is also backed by the PM E-DRIVE scheme, which allocates ₹10,900 crore (USD 1.3 billion) through March 2026 for thousands of new public fast-chargers, including 48,400 dedicated for two- and three-wheelers.
Why India Must Build Stronger EPR Partnerships to Recycle Batteries in 2026
India plans to see 30% adoption of electric cars, 70% adoption in commercial cars, and close to complete adoption in two/three-wheelers by the end of this decade, which is driving battery ecosystem growth in India at an unprecedented pace. Despite this success, a challenge lurking beneath the surface threatens to emerge in 2026: the lithium-ion battery value chain remains fragmented, especially in the end-of-life stage.