India's automotive industry witnessed a busy week between October 26 and November 1, with Tata Motors completing a major international acquisition, automakers reporting strong festive-season sales and electric two-wheeler manufacturers announcing production capacity expansions.
Tata Motors completed the initial settlement of its acquisition of Italian commercial vehicle maker Iveco Group, securing an 89.42% stake. Hyundai Motor India launched the Bayon SUV at Rs 9.99 lakh, while Tata Motors' plans for a new midsize electric SUV, internally codenamed Kuno, emerged.
Electric mobility remained a major focus. Ather Energy, Bajaj Auto, TVS Motor and Hero MotoCorp outlined plans to expand electric two-wheeler production as demand continued to exceed available capacity. A Boston Consulting Group report highlighted the concentration of India's electric two-wheeler market among five manufacturers.
The week also saw a series of quarterly earnings announcements, with strong revenue growth across several automakers but rising input costs weighing on profitability.
Acquisitions and Product Strategy
Tata Motors Completes Iveco Acquisition, Secures 89.42% Stake
Tata Motors completed the initial settlement of its voluntary tender offer for Iveco Group on October 30, acquiring an 89.42% equity stake in the Italian commercial vehicle manufacturer.
The company settled approximately 238.16 million shares at €14.40 apiece, making Iveco an indirect subsidiary. The transaction marks a major expansion of Tata Motors' international commercial vehicle business.
The combined enterprise is expected to deploy up to €1.5 billion annually towards research and development, focusing on zero-emission powertrains, alternative fuels and software-defined vehicles.
The acquisition also comes with commitments to maintain key manufacturing and research operations in Italy and continue supplying components to the country's defence industry.
Read more here.
Exclusive: Tata Motors Developing Kuno Electric SUV to Challenge MG Windsor
Tata Motors is developing a new midsize electric SUV, internally codenamed Kuno, as it looks to strengthen its position in India's growing electric passenger vehicle market.
The approximately 4.3-metre SUV is expected to be introduced during 2027-2028 and could be manufactured at the company's Sanand facility in Gujarat.
According to people familiar with the programme, Tata is considering annual production of around 80,000-100,000 units. The vehicle will target family buyers and compete with models such as the JSW MG Windsor, while complementing Tata's Curvv and Sierra portfolios.
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Hyundai Launches Bayon at Rs 9.99 Lakh, Targets Higher SUV Volumes
Hyundai Motor India launched the Bayon SUV at a starting price of Rs 9.99 lakh, expanding its presence in the competitive midsize SUV market.
The model comes with a 1.5-litre petrol engine, manual and iVT transmission options, a generative AI-powered voice assistant and Level 2 advanced driver assistance systems.
Hyundai is targeting combined annual sales of 2.5 lakh units for the Creta and Bayon from calendar year 2027.
The company also expects SUVs to account for as much as 75% of its domestic sales over the next 12-18 months, compared with 67% during Q2 FY27.
Read more here.
JLR Begins Local Assembly of Defender 110, Cuts Prices by Up to Rs 34 Lakh
JLR India began local assembly of the Defender 110 at its Pune facility, reducing prices of select variants by up to Rs 34 lakh.
The locally assembled range starts at Rs 99 lakh, ex-showroom, with deliveries scheduled to begin in November.
India has become the first market outside Europe to assemble the Defender 110. The move is expected to improve the SUV's price competitiveness in the domestic luxury vehicle market.
Read more here.
Electric Mobility and Capacity Expansion
Ather Energy Flags Unmet Monthly Sales of 20,000 Units, Announces Capacity Expansion
Ather Energy said production constraints were preventing it from tapping approximately 18,000-20,000 potential retail sales every month, prompting fresh investments in manufacturing capacity.
The electric scooter maker plans to invest Rs 122 crore to add 2.25 lakh units of annual production capacity across its Hosur and Chhatrapati Sambhajinagar facilities. The expansion will increase its combined installed annual capacity to approximately 11.4 lakh units by Q2 FY28.
Ather also delayed the entry-level Konarc SR1 variant to Q4 FY27, prioritising higher-margin models while manufacturing capacity remains constrained.
The company reported its first quarterly net profit of Rs 1.26 crore in Q2 FY27, compared with a loss of Rs 154 crore a year earlier.
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Bajaj Auto Targets 80,000 Monthly Chetak Units, Evaluates Sixth Manufacturing Plant
Bajaj Auto plans to increase monthly Chetak electric scooter production from approximately 62,000 units to 80,000 units by Q4 FY27 as demand continues to exceed supply.
The automaker is also evaluating locations for a sixth manufacturing plant to support future growth across electric scooters and premium motorcycles.
Joint Managing Director Rakesh Sharma expects electric scooters to account for as much as 50% of India's scooter market over the next three to five years.
Read more here.
TVS Motor Plans 8.3 Million Annual Two-Wheeler Capacity, 80,000 Monthly EV Units
TVS Motor Company is preparing to increase its annual two-wheeler manufacturing capacity to 8.3 million units from 6.8 million units by Q4 FY27.
The company is also working towards raising monthly electric two-wheeler capacity to approximately 80,000 units from its current operating level of 60,000-65,000 units.
The expansion follows strong sales growth during the September quarter, when TVS Motor's electric two-wheeler volumes increased 133% year-on-year to 1,86,186 units.
Read more here.
Hero MotoCorp Plans to Expand VIDA Capacity Beyond 80,000 Units Monthly
Hero MotoCorp plans to increase VIDA electric scooter manufacturing capacity to more than 80,000 units a month by Q2 FY28 from 30,000 units in September 2026.
The company expects capacity to reach 45,000 units a month by Q4 FY27 before further expansion.
Hero said demand was exceeding production, with VIDA dealer inventories at approximately one day. Its electric vehicle business also turned gross-margin positive during Q2 FY27, although it remained loss-making at the EBITDA level.
The automaker has separately nearly doubled its petrol scooter capacity to around 80,000 units a month.
Read more here.
Five Brands Control 83% of India's Electric Two-Wheeler Market: BCG
India's electric two-wheeler market remains highly concentrated, with five brands accounting for approximately 83% of sales despite a sharp increase in available models, according to a Boston Consulting Group report.
The number of electric two-wheeler models has increased nearly 30% since 2023, while electric motorcycle choices have doubled.
Consumer acceptance is also improving. The proportion of respondents actively considering an electric two-wheeler increased to 43% in 2026 from 30% in 2024, while outright rejection declined from 38% to 29%.
Read more here.
October Sales and Market Trends
Maruti Suzuki October Dispatches Rise 25% to Record 2.76 Lakh Units
Maruti Suzuki reported its highest-ever monthly factory dispatches of 2,76,120 vehicles in October, an increase of 25% year-on-year. Domestic passenger vehicle dispatches increased approximately 20% to 2,12,384 units, supported by strong demand across passenger cars and utility vehicles. Exports increased 59% to 49,872 units.
Despite higher production, dealer inventory remained at just 12 days, while pending bookings stood at approximately 2.45 lakh units. The automaker also announced plans to expand CNG vehicle production capacity from January 2027 as demand continued to outpace supply. CNG sales reached nearly 87,000 units in October, accounting for approximately 40% of domestic volumes.
Read more here.
Hyundai Reports Record October Sales of 82,299 Units
Hyundai Motor India recorded its highest-ever monthly sales of 82,299 vehicles in October 2026, an increase of 17.7% year-on-year. Domestic dispatches rose 16.7% to 62,799 units, while exports increased 21.1% to 19,500 units.
The Venue SUV (pictured here) recorded its highest-ever monthly sales of 13,017 units, supported by festive demand and the company's expanding SUV portfolio.
Read more here.
Tata Motors PV Sales Rise 23% in October, EV Volumes Jump 75%
Tata Motors Passenger Vehicles reported a 23% year-on-year increase in total factory dispatches to 75,426 units during October.
Domestic passenger vehicle dispatches increased 21% to 73,894 units, while combined domestic and international electric vehicle dispatches rose 75% to 16,244 units.
Separately, a VAHAN registration snapshot showed passenger vehicle registrations approaching five lakh units in October, with Tata Motors ranking second behind Maruti Suzuki. The data covered 14 manufacturers and remained subject to updates.
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Mahindra Records Highest-Ever Monthly SUV Sales of 73,338 Units in October
Mahindra recorded its highest-ever monthly domestic SUV dispatches of 73,338 units in October, an increase of 2% year-on-year.
The automaker's total vehicle sales reached a monthly record of 1,31,109 units, supported by festive demand across SUVs, pickups and three-wheelers.
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October PV Registrations Approach Half a Million, Shows VAHAN Data
Passenger vehicle registrations across 14 manufacturers reached 4,98,208 units in October, according to a VAHAN data snapshot as of November 1.
Maruti Suzuki led with 2,11,444 registrations, followed by Tata Motors at 73,002 units and Mahindra at 64,248 units. Electric passenger vehicles accounted for 7.2% of the listed registrations. The figures are provisional and measure retail registrations rather than factory dispatches.
Read more here.
TVS Motor October Dispatches Cross 7 Lakh Units, Rise 29% YoY
Royal Enfield October Dispatches Rise 7% to 1.33 Lakh Units on Festive Demand
Tata Motors CV Dispatches Up 27% to 47,652 Units in October
VECV Reports 35% Rise in October Dispatches to 10,861 Units
Mahindra Trucks and Buses Business Posts 40% Volume Growth in October
Force Motors Reports 48% Increase in October Domestic Dispatches to 4,011 Units
Mahindra Tractor Domestic Sales Decline 13% in October
Escorts Kubota October Tractor Dispatches Drop 10%, Construction Equipment Rises 42%
Quarterly Earnings and Business Outlook
Maruti Suzuki Q2 Profit Falls 27% Despite Record Revenue
Maruti Suzuki reported a 27% year-on-year decline in standalone net profit to Rs 2,415 crore in Q2 FY27 as higher raw material costs and lower non-operating income weighed on profitability.
Net sales increased 26% to a record Rs 50,616 crore, supported by higher volumes and stronger demand across small cars and SUVs.
Raw material and component costs increased 48% during the quarter, outpacing revenue growth and putting pressure on operating margins.
Read more here.
Hyundai Motor India Q2 Profit Drops 24% as Material Costs Rise
Hyundai Motor India reported a 24% decline in consolidated net profit to Rs 1,196 crore during the September quarter, despite record revenue.
Revenue from operations increased 18% to Rs 20,696 crore, while higher material costs affected profitability.
The automaker expects high double-digit export growth during H2 FY27, supported by demand from Latin America, Mexico and new SUV models, even as shipping disruptions persist in West Asia.
Read more here.
Hero MotoCorp Q2 Consolidated Profit Rises 41% to Rs 1,861 Crore
Hero MotoCorp reported a 41% year-on-year increase in consolidated net profit to Rs 1,861 crore in Q2 FY27, while revenue increased 23% to Rs 14,971 crore.
The profit included a one-time gain of Rs 397 crore arising from the equity consolidation of an associate company.
On a standalone basis, profit increased 5% to Rs 1,456 crore. The company also outlined plans to introduce three to four additional premium motorcycle products by March 2027, as it seeks to improve its position in higher-capacity segments.
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TVS Motor Q2 Net Profit Rises 52%, Revenue Jumps 44%
TVS Motor reported a 52% increase in standalone net profit to Rs 1,377 crore during Q2 FY27, supported by record quarterly vehicle sales.
Revenue from operations increased 44% to Rs 17,103 crore, while operating EBITDA rose 47% to Rs 2,219 crore.
The company's total two-wheeler and three-wheeler sales increased 27% to 19.19 lakh units, with electric scooters and international markets contributing to growth.
Read more here.
Policy, Manufacturing and Auto Components
MoRTH Formalises E100 and B100 Vehicle Testing Norms
The Ministry of Road Transport and Highways amended the Central Motor Vehicles Rules to formalise emission testing and homologation requirements for vehicles designed to run on 100% ethanol and 100% biodiesel.
The amendments provide a clearer regulatory framework for manufacturers developing flex-fuel vehicles.
The notification also raises the relevant light-vehicle testing weight threshold to 3,500 kg, aligning the rules with evolving vehicle categories and testing requirements.
Read more here.
Gadkari Asks Maharashtra to Reduce EV Charging Rates to Rs 5 Per Unit
Union Road Transport Minister Nitin Gadkari urged the Maharashtra government to reduce electricity charges at EV charging stations to Rs 5 per unit during daytime hours.
The proposal came during the inauguration of six EKA Mobility manufacturing plants, representing an investment of approximately Rs 3,500 crore and combined annual capacity of 40,000 vehicles.
Maharashtra Chief Minister Devendra Fadnavis said the state would work towards reducing charging tariffs. He also called on EKA Mobility to deploy 50,000 electric buses over the next three years.
Read more here.
Skoda Auto Volkswagen India and ARAI Plan New Crash-Test Facility
Skoda Auto Volkswagen India has partnered with the Automotive Research Association of India (ARAI) to establish a crash-testing facility at Chakan, near Pune.
The automaker will provide land adjacent to its manufacturing facility to support the development of the testing infrastructure.
The project is expected to strengthen India's vehicle safety testing capabilities for both electric and conventional vehicles.
Read more here.
Subros Starts Production at Rs 150 Crore Kharkhoda Plant
Automotive air-conditioning supplier Subros commenced commercial production at its new manufacturing facility in Kharkhoda, Haryana.
The Rs 150 crore facility adds annual production capacity of approximately 4.5 lakh units for automotive air-conditioning systems and hose assemblies.
The plant is intended to support growing demand from vehicle manufacturers and improve supply proximity to customers.
Read more here.
Motherson Sumi Wiring Q2 Profit Rises 35% to Rs 223 Crore
Motherson Sumi Wiring India reported a 35% year-on-year increase in net profit to Rs 223 crore during Q2 FY27.
The automotive wiring harness supplier benefited from higher vehicle production and increased content per vehicle across electric and conventional powertrain platforms.
The results reflected continued demand for wiring systems as automakers introduce more electronic features and electrified powertrains.
Read more here.
Michelin Launches India-Made Truck and Bus Tyre
Michelin launched the X Multi Energy Z2 truck and bus tyre in India, targeting fleet operators seeking lower fuel consumption and operating costs.
The India-made tyre is claimed to deliver fuel savings of up to 13% compared with leading competing products, depending on size and application.
The product will be available through Michelin's distribution network from November 1, expanding the company's commercial vehicle tyre portfolio in India.
Read more here.
India EV Conclave 2026: Industry Leaders Outline the Next Phase of Electrification
The Autocar Professional India EV Conclave 2026, held in New Delhi on October 27, brought together automakers, policymakers, component suppliers and charging infrastructure providers to discuss the next phase of electric mobility.
Discussions highlighted the challenges of meeting rising EV demand, reducing import dependence, improving charging reliability and expanding electric mobility beyond passenger vehicles and urban markets.
Tata Motors Expects EV Supply to Catch Up With Demand in 2-3 Months: Shailesh Chandra
Tata Motors Passenger Vehicles Managing Director and CEO Shailesh Chandra said the automaker expects EV supply to catch up with demand over the next two to three months as component manufacturers expand capacity.
The company's EV bookings have tripled since February, supported by fuel supply concerns, higher running-cost awareness and new product launches. Chandra said the unexpected surge in demand had caught manufacturers and suppliers off guard.
Read more here.
Mahindra's EV Output Hits Capacity Ceiling as Demand Outruns Supply
Mahindra Electric Automobile has reached its structural production capacity of 8,000 electric vehicles a month, with demand exceeding available supply, Managing Director R Velusamy said.
The company expects supply constraints to begin easing during Q3 FY27, with additional manufacturing capacity becoming available from Q4. Velusamy also highlighted growing EV acceptance in smaller cities, where customers are increasingly attracted by lower running costs and improved driving experience.
Read more here.
India, South Korea Can Offer Competitive Alternative to China in EVs: Hyundai India CEO
Hyundai Motor India Managing Director and CEO Tarun Garg said India's manufacturing cost advantages and South Korea's technological expertise could provide a competitive alternative to China's dominance in electric vehicles.
Hyundai has already localised battery packs and is working to localise power electronics and integrated charging control units ahead of its upcoming mass-market electric SUV. Battery cell localisation remains a challenge, although the automaker continues to work towards increasing domestic sourcing.
Read more here.
Electric Scooters Enter Mainstream, Motorcycles Remain a Challenge: Ather CBO
Ather Energy Chief Business Officer Ravneet Phokela said electric scooters were increasingly becoming mainstream, with 85% of prospective scooter buyers willing to consider an electric option, according to a consumer study cited by the company.
However, electric motorcycle adoption continues to lag, highlighting the need for different strategies across the two segments. Concerns about battery life, resale value and aftersales support remain important barriers to broader adoption.
Read more here.
Electric Trucks Next Big EV Growth Opportunity, Financing Key to Adoption: Olectra MD
Olectra Greentech Managing Director Mahesh Babu said electric trucks and intercity buses could emerge as the next major growth opportunities for India's EV industry.
However, high upfront costs, limited highway charging infrastructure and inadequate financing options remain major obstacles. Babu said longer financing tenures and dependable charging networks would be critical to improving the commercial viability of electric trucks and buses.
Read more here.
Beyond Subsidies: India Targets Rare-Earth Supply Chains, Cybersecurity and Overseas Plants
Dr Hanif Qureshi, Additional Secretary, Ministry of Heavy Industries, outlined a shift in India's EV policy priorities from purchase subsidies towards strengthening domestic manufacturing capabilities and addressing supply chain vulnerabilities.
The next phase will place greater emphasis on localisation, battery production, access to critical minerals, cybersecurity, and building globally competitive Indian electric vehicle manufacturers.
Read more here.
Thin Margins Leave India's Highway EV Chargers Unguarded
Charging infrastructure reliability emerged as another major concern at the conclave. Tata Power's Deepak Jain said India's public charging network could expand from around 52,000 points to 70,000 by next year.
However, outages caused by vandalism, power interruptions and weak commercial returns continue to affect charging availability. FADA President Sai Giridhar also highlighted the high cost of securing electricity connections for dealership charging stations.
Read more here.
Premium EV Makers Flag Policy Uncertainty, Price Parity and Battery Technology Challenges
Executives from Mercedes-Benz, BMW, Volvo Cars and BYD highlighted the need for stable state-level taxation policies to encourage premium EV adoption.
The discussion also covered price competitiveness, guaranteed resale values and differences between NMC and LFP battery technologies. Industry leaders warned that sudden changes in state tax exemptions could disrupt demand despite growing customer interest in premium electric vehicles.
Read more here.