Strap: From a policy push on vehicle-to-vehicle safety tech to BMW’s aggressive product offensive and India crossing 2.27 million EV sales, the new year opens with clear signals on where the auto industry is headed.
11 Jan 2026 | 448 Views | By Darshan Nakhwa
The first full week of 2026 set the tone for what is shaping up to be a decisive year for India’s automotive industry, marked by an unusual convergence of policy intent, product aggression and hard data that underscores how quickly the market is evolving.
On the regulatory ...
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The first full week of 2026 set the tone for what is shaping up to be a decisive year for India’s automotive industry, marked by an unusual convergence of policy intent, product aggression and hard data that underscores how quickly the market is evolving.
On the regulatory front, road safety moved firmly back into focus, with the government signalling that vehicle-to-vehicle (V2V) communication technology will soon become mandatory. The push reflects a broader shift from reactive enforcement to preventive, technology-led safety frameworks, at a time when India continues to grapple with high accident fatalities. Complementing this were stricter norms for sleeper bus manufacturing, underlining a renewed emphasis on accountability and standardisation in public transport.
At the same time, the product cycle is accelerating sharply. BMW Group India laid out one of the most aggressive roadmaps seen in the luxury segment, announcing 27 product actions in 2026 as it targets sustained double-digit growth and closes in on the market leader. The German automaker’s confidence is rooted not just in fresh launches, but in the steady deepening of its portfolio, rising EV penetration and India’s growing importance within BMW’s global rankings. Elsewhere, Mahindra & Mahindra continued to capitalise on its premium SUV momentum with the debut of the XUV 7XO, while several global and domestic OEMs outlined expansion and recovery plans as the market resets after a volatile 2025.
Perhaps the clearest signal of structural change, however, came from the data. India’s electric vehicle market closed calendar year 2025 with record sales of 2.27 million units, with all four EV segments–two-wheelers, three-wheelers, passenger vehicles and commercial vehicles–scaling new highs. While growth moderated from the previous year, penetration continued to rise, reinforcing the view that EV adoption has moved beyond early experimentation into a more resilient, if uneven, phase of scale-up.
Here’s the detailed round-up of all major developments from this week:
Gadkari Calls for V2V Rollout, Automakers to Align on Safety Tech
Union Minister for Road Transport and Highways Nitin Gadkari announced that vehicle-to-vehicle (V2V) communication technology will soon become mandatory in India, according to news reports. The minister stated that the technology, which enables cars to communicate with each other, will help reduce road accidents and improve overall road safety.
Speaking at an event, Gadkari emphasized that the government is working on implementing V2V communication systems that will allow vehicles to share information about their speed, location, and direction with nearby vehicles. This real-time data exchange can help prevent collisions by alerting drivers to potential hazards.
Government Restricts Sleeper Bus Production to Accredited Manufacturers After Fatal Fires
The central government has announced strict regulations for sleeper coach bus manufacturing, restricting production to automobile companies and facilities accredited by the Centre, Union Minister Nitin Gadkari announced Thursday.
The decision follows a concerning trend of fire accidents involving sleeper coaches. In the last six months, six such incidents have claimed 145 lives, prompting authorities to implement immediate safety measures.
M&M Clocks ₹50,000 Crore in Premium SUVs as XUV 7XO Debuts
Having been the fastest to ₹50,000 crore in revenue in the premium SUV space, Mahindra & Mahindra plans to “reset” the premium SUV segment with the all-new XUV 7XO by raising the bar in the C-SUV segment.
The launch of the premium SUV comes close on the heels of Mahindra & Mahindra climbing to the number two position in the highly competitive Indian passenger vehicle market, marching ahead of South Korean auto major Hyundai Motor India and homegrown rival Tata Motors.
Mahindra & Mahindra Launches XUV 7XO at ₹13.66 Lakh to ₹22.47 Lakh
Mahindra Launches XUV 3XO Electric SUV Starting at ₹13.89 Lakh
Hyundai Chairman Reveals Strategic Vision for 2026
Hyundai Motor Group chairman Euisun Chung has announced the Group’s 2026 strategic vision with global employees, presenting priorities focused on continuous customer-focused transformation, strengthened ecosystem competitiveness, and AI-driven innovation to navigate evolving market dynamics and lead new industry standards.
He presented five key strategic priorities — customer-focused evolution, agile decision-making, ecosystem competitiveness, bold collaboration, and leading new industry standards — to navigate the evolving global landscape.
Read
Kia Reports Record 2025 Sales, Sets 2026 Target
Kia Corporation reported global vehicle sales of 3,135,803 units for 2025, marking the company's highest annual sales total and representing a 2 percent increase over 2024.
The South Korean automaker sold 2,584,238 vehicles outside Korea, a 2 percent year-over-year increase, while domestic sales reached 545,776 units, up 1 percent from the previous year. Special purpose vehicle sales totaled 5,789 units, down 5 percent.
BMW India Targets Sustained Double-digit Growth with 27 Product Actions in 2026
BMW Group India is banking on a sweeping product offensive to sustain double-digit sales growth and sharpen its push for the top position in India’s luxury car market, with 27 product actions planned for 2026. “2026 is a very big year for us. We are launching 10 new products,” said Hardeep Singh Brar, President and CEO, BMW Group India.
Of the 27 actions planned, six will be all-new nameplates, four existing models will see major changes, and the remaining 17 will be upgrades across the current portfolio, reflecting BMW’s strategy to drive growth through depth and cadence rather than one-off launches. “When I say new products, six are absolutely new which you don’t have today, and four will see major changes,” Brar said.
BMW Motorrad to Launch All-new 450cc Twin-cylinder Bike in the First Half of 2026
BMW’s EV Penetration Hits 21%, Targets 25% of Sales from EVs in 2026
India enters BMW’s top 20; Brar eyes top 15 by 2030
On the back of sustained double-digit growth, India has broken into the top 20 markets for BMW globally by sales volume, underscoring the rising importance to the German luxury carmaker even as global auto demand remains uneven.
Speaking to Autocar Professional, Hardeep Singh Brar, President and CEO, BMW Group India, said, “The next target is to be in the top 15. Let’s see by 2030.” To support this ambition, the company has lined up 27 product actions for 2026, including 10 new model launches, aimed at strengthening its portfolio and sustaining global momentum.
BMW Moves Within Striking Distance of Mercedes-Benz
The race for the top position in India’s luxury car market is tightening, with BMW Group India closing in rapidly on long-time leader Mercedes-Benz India, even as it insists it will not chase volumes at the cost of brand or profitability. “Who minds getting number one, but we want it to be an organic growth to number one and not inorganic,” said Hardeep Singh Brar, President and CEO, BMW Group India.
BMW narrowed the sales gap to about 1,000 vehicles in calendar year 2025 from nearly 2,500 units a year earlier, riding strong momentum in the second half of the year and a surge in electric vehicle demand. “So now the gap is about 1,000 units,” Brar said. “Last year, I think it was close to 2,500.”
BMW Plans to Double MINI Sales With 10 New Models by 2026
Jaguar Land Rover Reports Sharp Sales Decline Following Cyber Incident
Jaguar Land Rover (JLR) has reported significant declines in both wholesale and retail sales for the third quarter of fiscal year 2026, with the luxury automaker's performance heavily impacted by a cyber incident that disrupted production operations.
The British manufacturer recorded wholesale volumes of 59,200 units for the quarter ending December 31, 2025, representing a 43.3% decrease compared to the same period last year. Retail sales fared somewhat better but still declined 25.1% year-on-year to 79,600 units.
Tata Motors Launches Petrol Variants of Harrier and Safari SUVs Starting at ₹12.89 Lakh
Volkswagen India to Launch All-New Tayron R-Line SUV in First Quarter
Can Suzuki's e-ACCESS Finally Put Japan on India's EV Map?
On January 9, 2025, Suzuki Motorcycle India announced the commencement of bookings for its first electric scooter, the e-ACCESS. Priced at Rs 1,88,490 (ex-showroom Delhi), this modest-looking electric scooter carries on its slim shoulders a rather immodest burden: reversing years of Japanese dormancy in India's electric two-wheeler revolution.
The announcement marks Suzuki's global entry into electric mobility in the two-wheeler segment, starting with India–a market where Japanese brands have long dominated the petrol-powered scooter space but have been conspicuously absent from the electric conversation
Suzuki Goes for Premium Pricing Strategy for e-ACCESS at Rs 1.88 Lakh
SoftBank Entity Reduces Stake in Ola Electric by 2.15%
SVF II Ostrich (DE) LLC, a SoftBank-affiliated entity, sold 94,628,299 equity shares of Ola Electric Mobility Ltd between September 3, 2025, and January 5, 2026, reducing its stake in the electric vehicle manufacturer by 2.15%. The company disclosed the transaction to exchanges on January 7, after the cumulative sales crossed the 2% regulatory threshold.
The shares were disposed of through a series of open market transactions over the four-month period. The final transaction on January 5, 2026, involving 8,423,833 equity shares, triggered the mandatory disclosure requirement.
Simple Energy Plans IPO to Raise $350 Million by End-2026
Bengaluru-based electric two-wheeler startup Simple Energy is planning to tap the public markets to raise about $350 million (approximately Rs 3,100 crore) through an initial public offering before the end of calendar year 2026, as it looks to scale operations while tightening its focus on margins and value-driven products.
The startup till now had only the Simple One electric scooter model with two variants, and has sold around 1,000 units in the past few months. The company is expanding its dealerships across the country to 150 by March from the current 60 outlets.
Simple Energy Launches 400 km Range Electric Scooter Starting at Rs 1.4 Lakh
Ashok Leyland Opens EV Plant in Lucknow
Ashok Leyland inaugurated a new commercial vehicle manufacturing plant in Lucknow on January 9, 2026, marking the company's entry into Uttar Pradesh's clean mobility sector. Chief Minister Yogi Adityanath, Defence Minister and Lucknow MP Rajnath Singh, and Heavy Industries Minister H.D. Kumaraswamy inaugurated the facility at Sarojini Nagar Industrial area near Lucknow Airport.
The 70-acre integrated plant will focus primarily on electric vehicle production, with an annual capacity currently at 2,500 units, which will be increased to 5,000 units in phases. The facility employs a predominantly local workforce from Uttar Pradesh, including a significant proportion of women.
Bharat Forge and Agile Robots Sign MoU for AI-Driven Industrial Automation
How Parag Satpute Is Positioning Greaves Cotton for 16-20% CAGR
Prerna Lidhoo speaks with Parag Satpute, MD and Group CEO of Greaves Cotton, on India’s pivotal moment in economic and industrial evolution.
Satpute discusses his return to India with a clear sense of purpose, Greaves Cotton’s deep engineering legacy, and how the Greaves.Next strategy is shaping the company’s future across energy, mobility and industrial solutions.
From backing a multi-powertrain approach to leveraging India’s China-plus-one opportunity, entering the European quadricycle market with Ligier, and targeting 16–20% CAGR growth, Satpute lays out Greaves’ roadmap in an increasingly competitive automotive landscape.
Murugappa’s TI Clean Mobility to Enter E-Rickshaw Market, Investment Crosses ₹3,000 Cr
The Murugappa Group’s electric mobility arm TI Clean Mobility, has already invested close to Rs 3,000 crore into electric vehicles and will continue to deploy capital as required over the next two to three years, as it builds scale across multiple commercial EV segments.
Speaking on the sidelines of a dealership inauguration, Arun Murugappan, Executive Chairman of TI Clean Mobility and Tube Investments of India Limited, said the group remains committed to expanding its electric vehicle footprint beyond the platforms already under development.
Valeo and Hero MotoCorp Partner on Advanced Safety Systems for Two-Wheelers
Valeo and Hero MotoCorp have announced a strategic partnership to co-develop Advanced Rider Assistance Systems (ARAS) for motorcycles and scooters, marking a significant step toward enhanced safety in the two-wheeler market.
The collaboration, formalized through a Memorandum of Understanding signed on January 8, 2026, brings together Valeo's expertise in automotive sensing technology with Hero MotoCorp's manufacturing scale and market reach. The partnership aims to introduce intelligent safety features across both entry-level and premium two-wheeler segments, including Hero's electric mobility portfolio under the VIDA brand.
ZF and Qualcomm Partner on Advanced Driver Assistance Technology
ZF and Qualcomm Technologies have announced a collaboration to develop an advanced driver assistance system (ADAS) solution that combines artificial intelligence computing capabilities with perception technology for automated driving applications.
The partnership centers on integrating Qualcomm's Snapdragon Ride system-on-chips with ZF's ProAI supercomputer to create a platform designed to support various levels of vehicle automation, from basic regulatory functions to Level 3 automated driving. The solution is intended to provide automakers with flexibility in deploying driver assistance features across different vehicle types.
Aptiv Secures ADAS Contract for Indian Commercial Vehicles
Long Reads
Why Toyota Is Building Its Carbon-Neutral Future Around India
Even as global rivals chase the EV journey, Toyota Motor Corporation is on a different path: One where carbon is the only enemy, software becomes the new engine, and India plays an important role as a test bed for many of the proposed strategies.
“The enemy is carbon, not the engine, not the battery, not the technology.” This line repeated, emphasised, and returned throughout the lecture that Autocar Professional attended on the sidelines of Japan Mobility Show 2025. In an unusually candid and technically rich session, five of Toyota’s most influential engineering leaders detailed how they see the next…
ZF’s Construction Equipment Strategy Reveals How India Has Moved Beyond the Auto Market
When a German engineering giant bets €20 million (approximately Rs 192 crore) on a factory in Coimbatore, Tamil Nadu, the location matters less than the message. ZF Group's new transmission and axle plant, opened this June, signaled something strategic is at work. One of the world's largest automotive suppliers now believes India's growth in coming years may see an accelerated growth in the construction equipment industry, even as the automotive sector in general moves at a slower pace or remains static.
The timing is awkward for the broader automotive industry. Indian vehicle sales have flatlined in recent years, vehicle makers are cautious, and global automakers are retreating. Yet ZF's leadership sees the construction equipment sector as an anomaly, a segment that, despite its current sluggishness, will double in size over the next five years while the rest of the motor industry moves at a slower pace.
India Breaks Into Exclusive Auto Export League With Over 5 Million Units Shipped
Not very long ago, Indian factories were viewed largely as frugal and low-cost assembly lines but rarely trusted with scale and consistency on the global stage. India's export footprint was limited, focused largely on two-wheelers for African markets and small cars for a narrow set of emerging economies, with the components segment doing the heavy lifting instead of fully-built vehicles. This perception has been changing steadily over the past decade, with 2025 being the year India finally broke out for good.
Analysis
EV Sales in India Hit Record 2.27 Million in 2025, All 4 Segments Scale New Highs
India EV Inc has entered 2026 on a good note. Total retail sales in 2025 were 2.27 million units, up 16% YoY. While this is much lower than the 27% growth achieved in 2024, the EV penetration level in overall automobile sales in India has risen to 8% from 7.47% in 2024 and 6.38% in 2023.
Overall new EV deliveries in 2025, which surpassed the 2-million mark for the first time (in November itself) should have been more but for the lesser-than-expected performance of the biggest volume segment of e-2Ws, which felt the heat of the impact of fence-sitting buyers deciding on ICE 2Ws following the slashing of taxes with the GST 2.0 reform in end-September.
Maharashtra Is Top Buyer of Electric Cars and SUVs in 2025
Maharashtra has maintained its numero uno position as the state with the highest demand for zero-emission cars, SUVs and MPVs in India. In 2025, Maharashtra, which has India’s financial capital Mumbai as its leading buyer of electric passenger vehicles, doubled its new electric vehicle sales year on year.
In 2025, 30,596 e-passenger vehicles were sold in Maharashtra, up 103% YoY (2024: 15,038 units), which gives it a 17% share of the record sales of e-PVs in India last year and improves upon the 15% share the state had in 2024.
South India Is No. 1 Buyer of Electric 2-Wheelers in 2025 With 34% Share
With intense competition in Indian electric two-wheeler market, which has nearly 270 players and is the largest volume sub-segment, it is always interesting to know the regions which are displaying the highest number of sales, the ones which have potential and those who are laggards.
Of the total 22,70,425 electric vehicles (EVs) sold in India across the four zero-emission vehicle sub-segments in 2025 (up 16% YoY), electric scooters, motorcycles and mopeds accounted for nearly 1.28 million units (up 11% YoY) or 56%.
India's Auto Retail Sector Posts 7.71% Growth in CY'25
India's automobile retail sector concluded calendar year 2025 with total sales of 2.82 crore units, marking a 7.71% year-on-year increase, according to data released by the Federation of Automobile Dealers Associations (FADA).
The year exhibited a distinct two-phase pattern, with subdued performance from January through August followed by significant acceleration in the September-December period. FADA President C S Vigneshwar attributed the upturn to the GST 2.0 rate rationalization implemented in September, which improved affordability across mass segments including small cars, two-wheelers up to 350cc, three-wheelers, and commercial vehicles.
BNP Paribas Sees Auto Sector Entering New Upcycle; PVs to Outpace Two-Wheelers
India’s automobile sector is entering a new upcycle, with passenger vehicles expected to lead the recovery while two-wheelers see a more muted improvement, according to BNP Paribas. The financial services firm said recent GST reductions have emerged as a key catalyst after a prolonged period of weak demand, improving affordability and triggering a revival in volumes across segments during the festive season.
“From 2026 onwards, we see passenger vehicle OEMs to be better placed,” BNP Paribas said, adding that incremental volumes from GST-led price reductions, better operating leverage and lower discounting are likely to drive margin expansion across major manufacturers. The firm expects industry capacity utilisation to improve from around 70% in FY25 to about 75% by FY28, noting that planned capacity additions by OEMs should be sufficient to meet the anticipated rise in demand.
Entry & Exits
M&M Appoints Rajeev Goyal as CEO of Agri, New Energy Business in Senior Management Reshuffle
Mahindra & Mahindra has appointed Rajeev Goyal, the current Chief Financial Officer of its Auto and Farm Sector (AFS), as Chief Executive Officer of its Agri and New Energy businesses, including Powerol, in a newly created role effective April 1, 2026.
Goyal’s elevation is part of a wider leadership restructuring to sharpen execution and accelerate growth within Mahindra’s Auto and Farm Sector, as the portfolio of businesses expands.
Mahindra EV Charging Head Kedar Apte Exits; Anoop Kachhara Appointed Successor
Mahindra & Mahindra has appointed Anoop Kachhara as vice president and business head of EV charging infrastructure, following the departure of the current head of charging, Kedar Apte.
Apte is moving on to pursue opportunities outside the Mahindra Group, the company said in an internal announcement. He had joined Mahindra as chief of international operations for the farm equipment business and later took charge of EV charging initiatives, leading the rollout of public charging stations and partnerships for home charger installation and servicing since October 2024.
Mahindra Group HR Chief Ruzbeh Irani to Retire; Rohit Thakur Named Group CHRO
Surabhi Loshali Named Chief Human Resources Officer at Ather Energy
Ather Energy Limited, one of India's leading electric two-wheeler manufacturers, has appointed Surabhi Loshali as its Chief Human Resources Officer (CHRO), effective immediately.
In her new role, Loshali will oversee the company's entire HR function, including talent acquisition, leadership development, organisation design, employee experience, diversity and inclusion, HR technology, and people analytics.
Castrol India Appoints V Kaushik Vedula as VP and Head of Marketing
JSW Motors Appoints Amit Jain as Chief Commercial Officer
Insights & Interpretations
How India’s Evolving Supply Chains Will Shape the Auto Industry – Expectations from the Upcoming Budget
India’s auto industry enters 2026 on a strong footing, with broad-based recovery across segments and a clear pivot toward clean mobility. Overall, the vehicle production across categories has been growing by over 4% year on year (YTD till October 25). The auto-component sector mirrored this momentum, reaching ₹6.73 lakh crore (US$80.2 billion) in FY25, a 9.6% year-on-year increase.
Yet this momentum coincides with heightened exposure to global shocks: shipping dislocations, tariff resets, and critical-mineral dependencies that collectively test resilience and price competitiveness. The focus for the upcoming Budget should align with stitching together policy continuity and targeted incentives so that India’s supply chains can absorb turbulence while accelerating the transition to advanced, cleaner technologies.
Development and Adoption of Alternative Fuel Technologies Beyond Electric (e.g. Cng, Flex-Fuel) in Two Wheelers
Every big shift in India’s two-wheeler market seems to start with a simple question - what do riders need? And if we’re being honest, the answer has never really been just about price or performance. It’s about finding a bike that fits real life. These days, that also means looking at smarter fuel choices, cleaner options, and practical alternatives to petrol that work for the long run.
Electric scooters and bikes have been stealing the spotlight for a while now. With about six percent of the two-wheeler market by the end of Oct 2025, they’re making decent headway, indicating steady adoption momentum in the segment, they form a small slice of the overall market but are making decent headway.