The week of May 25-31, 2026, saw India’s automotive industry shift firmly into investment and capacity-expansion mode, led by Tata Motors Passenger Vehicles’ aggressive growth plans, JSW MG Motor India’s evolving ownership structure, strong passenger vehicle dispatch expectations for May and Toyota Kirloskar Motor’s move to build a large technology and engineering hub in Karnataka.
Tata Motors Passenger Vehicles emerged as one of the biggest newsmakers of the week. The company is looking to add around 300,000 units of annual capacity over the next two to three years, taking its total passenger vehicle production capacity beyond 1 million units. The expansion is expected to be largely brownfield in nature and is likely to be centred around Sanand, Gujarat, where Tata Motors already operates two passenger vehicle plants.
The automaker is also stepping up investments in new products, electric vehicles and manufacturing capacity. Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility Managing Director Shailesh Chandra said the company’s annual investment will rise to 7-9% of standalone passenger vehicle revenue, compared with its earlier guidance of 6-8%. This could translate into investment of around ₹10,000 crore over the next two years, as the company prepares for a busier product pipeline and rising EV demand.
The week also brought fresh movement in the JSW MG Motor India story. China’s SAIC Motor is reportedly set to sell another 10% stake in the Indian joint venture to JSW Group. If completed, the transaction will make JSW Group the single-largest shareholder in JSW MG Motor India, raising its stake to 45% from 35%, while SAIC’s holding will fall to 39%. The development comes as JSW MG Motor India sharpens its localisation strategy and targets at least 70% localisation across future vehicle launches.
Passenger vehicle dispatches remained another key theme. Despite higher fuel prices, India’s passenger vehicle market is expected to post double-digit wholesale growth in May, with dispatches likely to touch 4.2-4.4 lakh units. Low dealer inventories, pre-buying ahead of announced price hikes, healthy bookings and a favourable base are expected to support the industry’s performance during the month.
Toyota Kirloskar Motor also made a significant long-term move by signing a memorandum of understanding with the Karnataka government to establish a 300-acre technology and engineering facility, the TKM Bizintel Hub, in KWIN City. The proposed hub underlines Toyota’s intent to deepen its India engineering and technology footprint at a time when automakers are investing more heavily in local R&D, electrification and software-led mobility capabilities.
The week also saw developments across electric mobility, commercial vehicles, tyres, policy, finance and earnings. India’s passenger EV market is expected to enter a breakout phase in FY27, Ashok Leyland outlined battery pack localisation and ASEAN export plans, JK Tyre approved one of its largest capex programmes, and SIAM urged the Delhi government to reconsider its proposed ban on new petrol two-wheelers from 2028.
Here is a detailed round-up of the key developments that shaped the automotive industry during the week:
Tata Motors PV Eyes Over 1-Million-Unit Capacity; Plans 3 Lakh Capacity Addition in 2-3 Years
Tata Motors plans to increase its passenger vehicle production capacity by another 300,000 units annually over the next few years through a brownfield expansion, according to the Managing Director of Tata Motors Passenger Vehicles and Passenger Electric Mobility Shailesh Chandra.
With this, the automaker’s total passenger vehicle capacity will cross 1 million units from the current capacity of 850,000 units. The expansion is likely to take place in Sanand, Gujarat, where Tata Motors already operates two passenger vehicle plants. The automaker also has a passenger vehicle plant in Pune.
Tata Motors PV to Invest around Rs 10,000 Cr in 2 Years for Capacity Addition, Product development
Tata Motors is set to spend Rs 500-1,000 crore more annually than previously planned on its passenger vehicle business over the next two years, as the automaker accelerates investments in new products, electric vehicles and manufacturing capacity expansion.
Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility Managing Director Shailesh Chandra said the company’s annual investment would rise to 7-9% of standalone passenger vehicle revenue, compared with its earlier guidance of 6-8%.
Tata Motors Says No Need to Cut GST on Flex-Fuel Cars
‘We’ll be the Last Man Standing on Hatches’: Tata Motors’ Shailesh Chandra Expects Tiago to Drive 20% Segment Share
Tata Motors expects the refreshed Tiago to increase the share of hatchbacks in the company’s passenger vehicle portfolio to 20% from around 15% currently, said Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles.
“We will not increase our portfolio in hatches but we’ll be the last man standing with Tiago and Altroz. The hatchback segment has stabilised after years of decline and can sustain itself if automakers continue bringing meaningful upgrades and premium features to the category,” he said.
Tata Motors' X Alpha Architecture Aims to Reinvent the Small Car
Targeting Minimum 70% Localisation for All New Models, Says JSW MG’s Anurag Mehrotra
JSW MG Motor India plans to raise localisation levels to at least 70% across all future vehicle launches as the automaker accelerates investments in new products and seeks to reduce costs in India's fast-growing new energy vehicle market.
According to JSW MG Motor Managing Director Anurag Mehrotra, localisation is one of the company's key priorities as it looks to strengthen competitiveness, improve supply chain resilience and support long-term growth.
MG India Officially Launches Majestor SUV
China’s SAIC Plans to Divest Another 10% Stake in Indian JV to Partner JSW
China’s SAIC Motor is set to sell another 10% stake in its Indian carmaking joint venture, JSW MG Motor India, to local partner JSW Group, according to two sources familiar with the matter, Reuters reported.
The transaction will make JSW Group the single-largest shareholder in the company, increasing its stake to 45% from 35%, while SAIC Motor’s holding will decline to 39%, Reuters reported citing the sources.
Hyundai To Implement Price Hike From June 1
Ferrari Unveils Luce As Its First Fully Electric Model
Ferrari has unveiled the Luce, its first fully electric production model, introducing a new vehicle architecture and expanding the company's range beyond traditional combustion and hybrid powertrains. The model was revealed in Rome and represents a new direction for the Italian marque's broader multi-energy strategy.
PV Dispatches in May Seen Growing in Double Digits to 4.2-4.4 Lakh Units
Despite rise in fuel prices, consumer sentiments in India’s passenger vehicle market remained resilient in May. The domestic passenger vehicle industry is set to post one of its strongest monthly performances in recent years in May, with wholesale dispatches expected to rise in double digits to 4.20-4.40 lakh units from around 3.50 lakh units in the year-ago period, helped by low dealer inventory, pre-buying ahead of announced price hikes and a favourable year-ago base.
Strong retail demand following GST-led affordability gains, coupled with healthy booking backlogs at dealerships, supported dispatches. Industry estimates indicate retail sales could reach 4.45-4.48 lakh units in May, representing growth of around 27% from roughly 350,000 units a year earlier.
India's Passenger EV Market Set for Breakout Year; Sales Could Reach 400,000 Units in FY27
India's passenger electric vehicle market is poised for its strongest growth phase yet, with industry penetration expected to rise to around 8% in FY27 from about 4.2-4.5% in FY26, potentially pushing annual electric car sales close to 400,000 units.
The projected surge is being driven by a combination of rising fuel prices, improving charging infrastructure, expanding product portfolios and a growing recognition among consumers that electric vehicles are becoming economically compelling alternatives to conventional powertrains.
Royal Enfield Launches Bullet 650 In India At Rs 3.64 Lakh
Toyota Kirloskar Signs MoU With Karnataka Govt to Establish 300 Acre Technology Hub
Toyota Kirloskar Motor has signed a Memorandum of Understanding with the Government of Karnataka to establish a new technology and engineering facility called the TKM Bizintel Hub. The proposed hub will be set up across 300 acres in KWIN City, an integrated smart city development located along the Doddaballapur to Dabaspet Highway in Bangalore.
Toyota Kirloskar Motor Sets Price for All-Electric Urban Cruiser Ebella at Rs. 23.60 Lakh
Ashok Leyland To Begin In-House EV Battery Pack Production By FY28
Ashok Leyland plans to begin production at its EV battery pack manufacturing facility by the first half of FY28 as the commercial vehicle maker deepens its push into electric mobility and localisation.
During a media call on Thursday, the company’s management said the battery pack project, being developed in partnership with Chinese battery manufacturer CALB, is progressing as planned.
Ashok Leyland Appoints K M Balaji as Whole-Time Director and CFO
Ashok Leyland Targets ASEAN As Next Export Growth Hub
Ashok Leyland is targeting ASEAN as its next export growth hub as the company looks to scale overseas volumes to around 25,000 units over the medium term through deeper localisation, partnerships and ecosystem-led expansion.
Speaking during a post-earnings media call, Managing Director and CEO Shenu Agarwal said after building scale in GCC, Africa and SAARC markets, the company is now shifting focus towards ASEAN.
Ashok Leyland Board Approves Setting Up Wholly Owned Subsidiary in Indonesia
CV Demand Resilient Despite West Asia Shock: Ashok Leyland CEO
Ashok Leyland said demand in India’s commercial vehicle industry remains resilient despite rising diesel prices and global geopolitical uncertainty, driven by GST-led price cuts and an ageing truck fleet that is triggering replacement demand.
Speaking during a post-earnings media call, Managing Director and CEO Shenu Agarwal said industry demand remained resilient in the first two months of FY27 despite global uncertainties. “The CV industry remained quite strong in April, and May is also looking like it will be either at par with or better than last year,” he said.
Hydrogen CVs Unlikely To Become Mainstream For Years: Hinduja
SIAM Urges Delhi Govt to Reconsider Proposed Ban on New ICE 2W From 2028
The Society of Indian Automobile Manufacturers (SIAM) has urged the Delhi government to reconsider a proposal to stop registrations of new petrol-powered two-wheelers from April 2028, saying that the move would do little to improve air quality and instead hurt consumers who depend on such vehicles for daily mobility.
In a letter to Delhi Transport Minister Pankaj Kumar Singh, seen by Autocar Professional, the industry body sought reconsideration of Clause 8.2.1 of the draft Delhi Electric Vehicle Policy, which proposes that only electric two-wheelers be allowed for new registrations in the national capital territory from April 1, 2028.
Belrise Industries Board Approves Plan to Raise Rs 2,000 Crore Through QIP
TVS Srichakra Approves Rs 220 Crore Capex for Capacity Expansion at Madurai Plants
JK Tyre Unveils One Of Its Largest Capex Plans As Capacity Utilisation Crosses 90%
JK Tyre & Industries Ltd has announced one of its largest-ever capital expenditure plans, approving a Rs 4,980 crore phased expansion of its truck and passenger car radial tyre capacities amid strong demand across domestic and export markets.
The expansion, approved by the company’s board, will increase overall capacity by 24% over the next three years and will primarily focus on the Chennai and Mysore plants. The company currently has a combined TBR and PCR capacity of 2.1 crore tyres per annum.
JK Tyre Turns Eastward As West Asia Crisis Raises Input Costs
The New Automotive Battleground is Data: PTC’s Michele Del Mondo
As EVs, AI, software-defined vehicles (SDVs) and connected ecosystems reshape the automotive industry, data is emerging as a critical competitive differentiator for OEMs.
Speaking to Autocar Professional during the PTC Automotive Executive Exchange Delhi, Michele Del Mondo said future automotive leaders will be companies capable of mastering connected feedback loops across software, products and customer usage.
Ather Energy Sets Up Wholly Owned Insurance Subsidiary
Earnings Report Card
Ashok Leyland Q4FY26 PAT Surges 13%; FY26 Revenue Up 14%
Cummins India Q4 PAT Rises 25% To ₹650 Crore On Strong Domestic Sales
Varroc Engineering Q4 PAT More Than Triples To ₹70.5 Crore
Amara Raja Posts 16% Revenue Growth in FY26
JK Tyre Q4 Net Profit Rises 83%; Approves Rs 4,980 Crore Capacity Expansion Plan
Exports, Agri Demand Drive Carraro India’s Strong Q4
Olectra Greentech FY26 Net Profit up 29% to ₹179.5 crore
Tenneco India FY26 Profit Rises 9.3% to Rs 604.4 Crore; Announces New Plant in Western India