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Explainer: The New Shop Floor Reality: Decoding the 2025 Labour Codes for the Auto Industry

Shahkar Abidi — Fri, 08 May 2026 12:15:53

The landscape of Indian industrial relations has undergone its most significant overhaul in decades. On November 21, 2025, the Union Government officially notified four major Labour Codes: the Code on Wages, the Occupational Safety, Health and Working Conditions (OSH) Code, the Social Security Code, and the Industrial Relations (IR) Code.

While corporate circles have largely welcomed these changes as essential "reforms," trade unions view them as a fundamental shift in how the State mediates the relationship between capital and labour. To help our readers in the automotive sector, from Tier-1 suppliers to assembly plant managers, understand what has changed, Autocar Professional's Shahkar Abidi spoke with Advocate Maitreyi Krishnan of the All India Central Council of Trade Unions (AICCTU). Krishnan warns that these codes represent an "abdication by the State" of its responsibility to protect the vulnerable

According to Krishnan, the new framework essentially creates a "dictatorship of the private employer," pushing millions of workers outside the protection of the law. Here is a breakdown of the "Earlier vs. Now" in simple terms:

1. Hiring, Firing, and Plant Closures (The IR Code)
For mid-sized automotive units, the rules regarding business agility versus job security have shifted dramatically.

Earlier: Establishments with 100 or more workers needed prior government permission to lay off staff or close down operations.

Now: That limit has been tripled to 300 workers.

Simplified Context: If you run a component plant with 250 employees, you can now retrench (cut jobs) or shut down without any prior government approval or public scrutiny.

2. Employee Handbooks/Service Rules (Standing Orders)
These are the rules that govern daily conduct, shift timings, and disciplinary actions on the shop floor.

Earlier: Any unit with 100 or more workers had to have "Certified Standing Orders"—rules vetted by authorities to ensure they were fair to workers.

Now: Only establishments with 300 or more workers are required to have these certified rules.

Krishnan’s Take: For units with under 300 staff, service conditions are now left entirely to "employer discretion," which can lead to arbitrary or discriminatory practices.

3. The Contract Labour System
The auto industry relies heavily on contract staffing for non-core tasks. The new codes change the definition of what is "allowable."

Earlier: The law applied to units with 20 or more contract workers, and use of contract labor in "core" production activities was strictly regulated.

Now: The threshold for the law to apply is raised to 50 workers. Furthermore, the definition of "core activity" now specifically excludes sanitation, loading/unloading, canteen services, and maintenance.

Simplified Context: These essential factory tasks are now legally "non-core," which Krishnan argues institutionalizes an exploitative system where marginalized workers are denied the benefits of permanent employment.

4. Women on the Shop Floor
While the codes are marketed as progressive, Krishnan highlights concerns regarding wage parity and safety.

Earlier: Night shifts for women were generally prohibited under the Factories Act to ensure safety.

Now: Women can work night shifts, provided they "consent".

The Concern: Krishnan argues that in a workplace with a high power imbalance, this "consent" is often illusory and exposes women to unsafe conditions. Additionally, a new, narrower definition of "wages" (excluding various allowances) may lead to lower maternity benefit payouts and "indirect" pay discrimination.

5. Trade Union Autonomy and the "Deregistration Weapon"
In large-scale automotive manufacturing, the relationship between management and registered trade unions is a cornerstone of the shop floor. The new code changes how these unions are regulated.

Earlier: Under the Trade Unions Act, 1926, union office-bearers enjoyed statutory immunity from civil and criminal prosecution for actions taken to achieve legitimate union goals. While registration could be cancelled, the grounds were relatively narrow.

Now: The Industrial Relations Code gives the Registrar of Trade Unions significantly broader discretion to cancel a union's registration based simply on "information received" regarding any violation of the Code.

The Impact for Auto Plants: Once a union’s registration is cancelled, its members lose all legal immunity from prosecution. Krishnan warns that this creates a "climate of fear," where the threat of deregistration can be used to intimidate workers and prevent them from challenging management decisions.

6. The "Wage Redefinition" and Social Security Payouts
The way "wages" are calculated has been completely overhauled, affecting everything from maternity leave to provident fund liabilities.

Earlier: Laws like the Equal Remuneration Act and the Maternity Benefit Act used a broader understanding of what constituted a worker's pay to ensure they received fair compensation.

Now: The Code on Wages redefines "wages" to exclude various allowances. This allows employers to "split" a worker's salary into many different heads to keep the official "wage" low.

The "Hidden" Change: Because benefits like maternity payouts are calculated based on this narrow definition of "wages," women workers in the industry will likely see a reduction in their actual cash benefits. Krishnan argues this effectively legitimises indirect wage discrimination, as employers can structure pay scales to avoid their full social security liabilities.

Explainer: The New Shop Floor Reality: Decoding the 2025 Labour Codes for the Auto Industry

Shahkar Abidi — Fri, 08 May 2026 12:15:53

TVS, Bajaj, Ather and Hero Vida Open FY2027 with Strong E-2W sales, Ola Sells 12,000 Units

Ajit Dalvi — Fri, 01 May 2026 13:46:55

The Indian electric 2-wheeler industry, which registered record retail sales of 1.40 million units in FY2026, has opened FY2027 on a strong note. April 2026 saw a total of 148,677 units delivered to e-2W buyers, up 61% YoY (April 2025: 92,536 units) and in line with the strong growth displayed since the start of CY2026. April sales are the second highest monthly numbers in the current year to date, after March 2026 (192,343 units, up 46% YoY).

Combined sales of the Top 4 OEMs – TVS, Bajaj Auto, Ather Energy and Hero Vida – at 112,798 units give them a 76% share of April’s retails of 148,677 units, which is the second highest monthly score.

Market leader TVS Motor Co, which sold a record 341,983 e-scooters comprising the iQube and Orbiter in FY2026, sold 37,661 units in April 2026. This is a handsome 96% YoY increase (April 2025: 19,176 units) and gives the company a monthly market share of 25% at the start of FY2027. TVS’ April sales are its second-highest monthly numbers, and come just one month after the company hit its highest scale in March 2026 (49,719 units). What has helped drive demand is the strategic move to offer the Battery-As-A-Service (BaaS) across its EV portfolio. The BaaS model lowers the upfront cost, while offering customers long-term battery assurance and peace of mind. While the flagship iQube remains the model with the highest share of sales, the Orbiter is witnessing growing demand. Two months ago, TVS launched a new edition in the form of the Orbiter V1 (1.8 kWh) at Rs 84,500 (ex-showroom Delhi, inclusive of PM e-Drive) and Rs 49,999 (with BaaS).

Bajaj Auto delivered 32,883 Chetak e-scooters last month, up 72% YoY (April 2025: 19,162 units), which gives it a 22% e-2W market share for April 2026. This is the third highest monthly score for the Pune-based major after March 2026 (46,544 units) which was only other month when the company had retailed over 40,000 units and March 2025 (35,215 units).

Third-ranked Ather Energy is still behind Bajaj Auto in numbers but eyeing the No. 2 position. The EV start-up, which has surpassed 600,000 cumulative retail sales recently, sold 27,024 units in April 2026. This gives it an 18% market share and marks robust 103% YoY growth (April 2025: 13,332 units) and is the company’s second-highest monthly total. This is the sixth instance of the smart e-scooter start-up clocking 20,000-plus sales with the highest coming in March 2026 (36,125 units).

Hero Vida, the EV arm of Hero MotoCorp, is now well entrenched as the No. 4 e-2W OEM. In April 2026, the company sold 15,230 units, up 148% YoY (April 2025: 6,150 units). The Vida brand, which has crossed cumulative sales of 200,000 units including 100,000 in 8 months, had an e-2W market share of 10% in April.

Ola Electric is back to being the No. 5 e-2W OEM in monthly sales for the second month in a row. Ola, which had slipped to No. 6 position in February 2026 and below Greaves Electric Mobility for the first time, sold 12,166 units in April 2026, which is 2,037 more e-2Ws than in March (10,117 units). This, however, is a 39% YoY decline (April 2025: 19,824 units) and its best monthly performance in the past six months after October 2025 (16,064 units). An energised Ola looks to be back in the ‘game’ with retail sales increasing month on month.

Greaves Electric Mobility (6,884 units, up 72% YoY) and Ampere Vehicles are back at No. 6 position they had occupied before February. In April 2026, GEM had a 5% e-2W market share. GEM’s previous best monthly sales came in October 2025 (7,635 units) and Ampere (as a single entity) in November 2022 (12,260 units). On April 24, GEM launched the new Ampere Magnus Neo, a lighter and redesigned variant which is aimed at urban commuter buyers.

Bengaluru-based River Mobility, which is witnessing growing demand for its sole product – the River Indie – delivered 3,198 units, up 302% YoY (April 2025: 796 units). The company had clocked its highest monthly sales in March 2026 (4,200 units) and has sold over 30,000 units till end-April 2026.

EV startup Bgauss Auto, which began sales in August 2022, sold 3,065 units last month, up 133% YoY (April 2025: 1,313 units).

Simple Energy, which is witnessing a good run of demand for its e-scooters, sold 1,188 units last month, up 338% YoY (April 2025: 271 units). The company, which has a two-model portfolio in the form of the Simple One (4.5 kWh, 5 kWh) and OneS has recently announced the Ultra claimed to deliver a 400km travel range. In January this year, the company introduced its Gen 2 line-up which are updated versions of the existing models. The upcoming e-scooter, understood to be called the Simple Arrive, is a family-centric model which could rival the TVS iQube, Ather Rizta and Bajaj Chetak.

Haryana-based Bounce Electric enters the Top 10 listing with 1,077 units, up 1583% YoY on a low base of just 64 units in April 2026.

Of the 10 companies vying for a slice of India’s booming e-2W market, combined sales of these Top 10 OEMs at 140,376 units accounted for 94% of the 148,677 units sold in April 2026, leaving the remaining six percent to be fought over by the other 150 players. The Top 5 OEMs – TVS, Bajaj Auto, Ather Energy, Hero Vida and Ola Electric – though maintained their stranglehold over the segment. Their combined sales of 124,964 units give them an 84% share of April’s retail sales.

Meanwhile, the three Japanese OEMs have together sold 753 e-scooters in April 2026. While Honda sold 377 units, Suzuki delivered 273 units of its e-Access and Yamaha 103 EC-06 e-scooters.

ALSO READ:
Ather Energy crosses 600,000 sales, 50% sold in the last 16 months

Tata EV Sales Jump 77% in April, Mahindra Outsells JSW Again, Maruti and JSW deliver 1,200 EVs Each

Ajit Dalvi — Fri, 01 May 2026 13:31:59

The India electric passenger vehicle (e-PV) industry, which closed FY2026 with record retail sales of 200,946 units and handsome 85% YoY growth, has carried over the same strong momentum into the first month of FY2027. April 2026 saw 17 manufacturers of zero-emission cars, SUVs and MPVs deliver 23,163 units to customers, up 73% YoY (April 2025: 13,409 units). This is the second highest monthly retails after March 2026 (23,749 units).

April 2026 retail sales of 23,163 electric cars and SUV is the second highest monthly total for the industry after March 2026 (23,749 units).

Tata Motors, the longstanding e-PV market leader, posted retail sales of 8,506 units in April 2026, up 77% YoY (April 2025: 4,816 units), which gives it a market share of 37% for last month, up from 36% a year ago. This is Tata Motors second highest monthly e-PV sales after March 2026 (8,684 units). While the Harrier EV has helped revive demand, the Nexon EV, Tiago EV and Punch EV continue to have their share of buyers. The Curvv coupe-SUV, however, is yet to achieve proper sales traction for Tata Motors, whose EV portfolio also has the Tigor (XPres-T). The company, which clocked record retails of 79,271 EVs in FY2026, has seen its e-PV market share drop to 40% in FY2026 from 53% in FY2025. That’s mainly due to the rapid advance of JSW MG Motor India and Mahindra & Mahindra, even as three new players – Maruti Suzuki India, Vinfast and Tesla – entered this segment last fiscal.

The big news from April 2026 is Mahindra & Mahindra, which has been a consistent No. 3, outselling JSW MG Motor India for the second month in a row. April saw M&M achieve customer deliveries of 5,394 electric SUVs, up 63% on the year-ago sales (April 2025: 3,301 units), which gives it a market share of 24 percent. In March 2026, M&M (5,651 units) had sold more EVs than JSW MG Motor (5,550 units) for the first time in a single month. While the two new Born Electric SUVs – BE 6 and XEV 9e – launched in early 2025 have been the instruments of the rapid growth, the November 2025 launch of the XEV 9S, M&M’s first three-row, born-electric SUV gave it added firepower in the segment. The XEV 9S, which has battery options spanning 59 kWh, 70 kWh and 79 kWh, slots above the stylish XEV 9e and the radical BE 6 SUVs, both of which are two-row EVs.

JSW MG Motor India, now ranked the No. 3 e-PV OEM, sold 4,978 units last month, up 32% YoY (April 2025: 3,776 units). This gives it a 22% e-PV market share with the game-changing Windsor EV and the BaaS option being the growth accelerator. JS MG Motor’s portfolio also includes the M9 MPV, Cyberster roadster, ZS EV and Comet EV.

Vinfast India, the local arm of Vietnamese EV major Vinfast, is ranked fourth amongst the 17 e-PV OEMs with 1,231 units which give it a 5% e-PV share. This is the first time that the company has crossed 1,000-units in a month since it began deliveries of the locally assembled VF6 and VF7 e-SUVs in October 2025, followed more recently by the VF MPV7 which is claimed to deliver 517km range on a full charge. Between October 2025 and April 2026, Vinfast India has clocked total sales of over 3,500 EVs.

Maruti Suzuki India too has surpassed deliveries of 1,000 units for the first time in a month. The company sold 1,222 e-Vitara SUVs in April which gives it a market share of 5 percent. It is understood that due to production constraints, the company has allocated between 2,000-2,500 units for the domestic with far more for exports. In fact, the e-Vitara (25,549 units) was the fifth most-exported SUV in FY2026 after the Maruti Fronx (90,186 units), Jimny (72,209 units), Nissan Magnite (56,704 units) and the Toyota Hyryder (38,854 units).

Sixth-ranked Hyundai Motor India, which is experiencing the heat of the intense competition in the e-SUV market, sold 512 EVs, down 31% YoY (April 2025: 747 units). The company, whose e-PV share is down to 2% from 6% a year ago, continues to see tepid demand for its main product – the Creta EV – and the Ioniq 5.

BYD India, the local division of China’s BYD, sold 467 units, up 17% YoY (April 2025: 398 units). From May 1, the company will increase prices across its EV portfolio by Rs 50,000 to Rs 100,000 covering the Atto 3 SUV, e-Max 7 MPV, Seal sedan and Sealion 7 SUV. Current ex-showroom prices start from Rs 24.99 lakh for the entry level Atto 3 through to Rs 54.90 lakh for the top-spec Sealion 7.

Up next is Kia India with 341 units, up 903% on a low year-ago base of just 34 units. Following the launch of the mass-market Carens Clavis EV MPV, which joined the far more expensive EV6 and EV9 imported as CBUs, Kia has seen its monthly numbers improve. However, after having posted strong sales last August (465 units), September (530 units), October (681 units), November (480 units), demand has dropped in CY2026: January (321 units), February (304 units), March (476 units) and now in April (341 units).

BMW India led the luxury e-PV OEMs who sold 487 EVs to register a strong 70% YoY increase.

Luxury Carmakers Sell 487 Electric Vehicles to Register 70% Growth

In tandem with the mass-market e-PV market, demand for luxury cars, SUVs and sedans also continues to register good growth. Over the past four fiscals, demand for luxury cars, SUVs and sedans has risen by 450% from 986 units in FY2023 to 5,450 units in FY2026. FY2027 looks set to drive in the same growth lane. In April 2026, total retail sales of the eight OEMs in this sub-segment were 487 units, up 70% YoY (April 2025: 286 units).

BMW India, which topped this category in FY2026 with a record 3,566 e-PVs, and is ranked No. 9 amongst the 17 e-PV OEMs in April, maintained its No. 1 status with 296 units, up 106% YoY (April 2025: 144 units), which gives it a 61% share for last month.

Mercedes-Benz India, with 104 EVs sold last month, witnessed a 20% YoY sales increase (April 2025: 87 units), which gives it a 21% market share in this category. Expect monthly sales to further improve soon. The company’s upcoming CLA electric sedan has already received 400-plus bookings following the announcement of an indicative price of around Rs 60 lakh, with a majority of buyers entering the luxury car segment for the first time. Mercedes-Benz is positioning the CLA not as a price disruptor but as a technology-led model. Built on a new dedicated EV architecture with an 800-volt system and the brand’s latest MB.OS operating system, the model serves as a foundation for a new generation of software-defined vehicles in the company’s global portfolio.

Tesla has gone ahead of Volvo India to be ranked the No. 3 luxury e-PV OEM in April with 43 units. The company, whose first product has been the Model Y e-SUV, recently launched the Model Y L. Priced at Rs 61.99 lakh, the Model Y L is the long-wheelbase, six-seat version of Tesla’s best-selling global SUV and gives the American EV maker a more nuanced position in India’s premium EV market, sitting above value-led Chinese rivals like BYD and below more chauffeur-oriented luxury EVs such as the MG M9.

Volvo India, the consistent No. 3 in the luxury EV makers list, saw a decline in demand. The Swedish carmaker sold 41 zero-emission cars and SUVs, down 7% on the 44 units in April 2025.

Both German sportscar maker Porsche and Audi sold a single EV each last month, while JLR India and Rolls-Royce did not sell any. In terms of EV market penetration, the eight luxury EV OEMs had a 2.10% share in April 2026 compared to 2.13% in April 2025.

Tata EV Sales Jump 77% in April, Mahindra Outsells JSW Again, Maruti and JSW deliver 1,200 EVs Each

Ajit Dalvi — Fri, 01 May 2026 13:31:59

April 2026 retail sales of 23,163 electric cars and SUV is the second highest monthly total for the industry after March 2026 (23,749 units).

BMW India led the luxury e-PV OEMs who sold 487 EVs to register a strong 70% YoY increase.

Luxury Carmakers Sell 487 Electric Vehicles to Register 70% Growth

Volvo India, the consistent No. 3 in the luxury EV makers list, saw a decline in demand. The Swedish carmaker sold 41 zero-emission cars and SUVs, down 7% on the 44 units in April 2025.

Rebadged Models’ Share of Toyota India Sales Increases to 58% in FY2026

Ajit Dalvi — Thu, 23 Apr 2026 11:26:36

Product and marketing synergies often pay strong dividends and Toyota Kirloskar Motor (TKM) is benefiting hugely from the global alliance between Suzuki Motor Corp and Toyota Motor Corp. As a result of this product-sharing pact between the two Japanese automakers, Toyota Kirloskar Motor’s strategy to launch a clutch of Maruti-rebadged models has paid off handsomely in the Indian passenger vehicle market since the past three years.

In FY2026, sales of the four badge-engineered models bearing the Toyota logo – the Glanza (based on the Maruti Baleno), Urban Cruiser Hyryder (based on the Maruti Grand Vitara), Rumion (based on the Maruti Ertiga) and the Urban Cruiser Taisor (based on the Maruti Fronx) – crossed the 200,000 mark for the first time.

The 211,759 units are a strong 30% YoY increase (FY2025: 163,483 units) and translate into a 58% share of TKM’s record passenger vehicle wholesales of 366,896 units.

In the past three fiscals, wholesales of these four models have nearly doubled from 107,151 units in FY2024 to 211,759 units in FY2026. Interestingly, in FY2026, all 10 models in TKM’s PV portfolio which, other than the above four rebadged models, includes the Innova twins, Fortuner, Camry, Vellfire, LandCruiser 300 and Hilux posted YoY growth.

With 99,883 units, the Hyryder continued to be the best-selling Maruti-rebadged model for Toyota in for the third fiscal year in a row and contributed to 27% of TKM’s record sales of 366,896 PVs.

HYRYDER IS TOYOTA’S BEST-SELLING REBADGED MODEL FOR THIRD YEAR IN A ROW

The Urban Cruiser Hyryder midsize SUV, which clocked its highest sales in FY2026, continued to be TKM’s No. 1 rebadged model for the third straight fiscal. The 99,883 units gave it a 47% share of this four-model portfolio, improving upon the 37% it had in FY2025 (60,388 units) or the 45% in FY2024 (49,916 units). The Hyryder’s stellar performance is reflected in the fact that it was a close second behind TKM’s longstanding best-seller, the Innova (112,163 units) and even outsold the Innova twins in October 2025, February and March 2026. Since its launch in September 2022, the Hyryder has clocked cumulative sales of over 230,000 units.

The Glanza hatchback takes second position with 52,543 units, up 8% YoY (FY2025: 48,839 units) and a 25% share of the rebadged models’ sales. The Glanza, launched three years before the Hryder n June 2019, has cumulatively sold an estimated 262,000 units till end-March 2026. While the Urban Cruiser Taisor compact SUV (34,913 units) registered an 8% YoY increase, demand for the Rumion MPV (24,420 units) rose 12% YoY.

ALSO READ: SUV, MPV Sales Cross 3 Million for the First Time in FY2026, UV Share of PVs Jumps to 67%

SUV, MPV Sales Cross 3 Million for the First Time in FY2026, UV Share of PVs Jumps to 67%

Ajit Dalvi — Sat, 18 Apr 2026 12:40:51

If India’s passenger vehicle industry achieved its best-ever fiscal year wholesales of 4.64 million units in FY2026, then the credit once again goes to the utility vehicle (UV) segment. The UV sub-segment, which comprises SUVs and MPVs, continues to be the shining star of the Indian PV industry, even as demand returned to the hatchback and sedan segment (1.37 million units, up 2% YoY) compared to FY2025 when passenger car sales were down 12 percent.

The UV segment, which comprises 16 SIAM member companies, was on a roll in FY2026, thanks to the firepower provided by GST 2.0 from October 2025 onwards. While H1 FY2026 saw sales of 1.35 million UVs, up 1% YoY, H2 FY2026 clocked UV dispatches of 1.75 million units, up 20% YoY.

With record wholesales (factory dispatches) of 31,05,025 units last year, UV wholesales rose 11% YoY on a high base (FY2025: 27,97,229 units), which translates into an additional 307,796 units. To put the math and the UV segment’s growth into perspective, FY2026 saw 8,506 SUVs and MPVs sold each day!

That’s not all. . . because the UV segment surpassed the 3 million wholesales milestone in the domestic market for the first time and saw its share of the overall passenger vehicle market (cars, UVs and vans) increase to a new high of 67%, improving upon the 65% in FY2025 and 60% in FY2024. And the FY2026 UV share is a 16% jump over the 51% share in FY2023 (see 12-year PV and UV sales data table below).

SUV and MPV sales rose to a new high of 3.10 million units in FY2026 with the UV share of the Indian passenger vehicle market nearly doubling to 67% in a span of just six years.

What’s common to the past four fiscal years is the surging demand for utility vehicles (UVs), primarily SUVs. Having raced past the 2-million mark for the first time in FY2023 (2.03 million units), sales only got better in FY2024 (2.52 million units) and FY2025 (2.79 million units). Interestingly, the UV sales of 3.10 million units in FY2026 are 57,443 units more than the entire PV sales of 3.04 million units in FY2017 when the UV share was 25% (761,998 UVs).

Maruti Remains UV Leader but M&M, Tata, Toyota & Kia Increase Market Share

Of the cars, vans and UV sub-segments in the overall PV segment, UVs remains the most competitive. Every OEM worth its wheel is fighting for a share and slice of the mega action, with the battle for supremacy highest in the compact SUV and midsize SUV categories. These two sub-segments are also where the Top 20 best-selling models reside.

The UV arena is a tough one, what with 32 SUV and MPV manufacturers (including the 16 SIAM member OEMs with 75 models and the luxury OEMs), nearly 130 individual models and over 1,000 variants.

The Top 6 OEMs (2.91 million units), accounted for 94% of the 3.10 million UVs in FY2026. While Maruti and Hyundai saw their UV share fall, Mahindra, Tata Motors, Toyota and Kia posted gains.

Of the Top 6 players’ UV portfolio, Mahindra leads with 13 SUVs, followed by Maruti and Toyota with nine UVs each. While Kia has seven, Tata Motors has six with the recent addition of the Sierra, and Hyundai has five SUVs. Given the ongoing transition to electric mobility, which has picked up pace in FY2026 with a record 199,590 units, Tata Motors, JSW MG Motor, Mahindra & Mahindra, Hyundai, Kia and Maruti Suzuki already have electric vehicles in their UV stable, while Toyota India is slated to launch the Urban Cruiser e-Bella soon.

India’s Top 6 PV OEMs in FY2026 – Maruti Suzuki (1.82 million PVs, up 4%), Mahindra & Mahindra (660,276 PVs/SUVs, up 20%), Tata Motors (651,261 PVs, up 14%), Hyundai Motor India (584,906 PVs), Toyota Kirloskar Motor (366,896 PVs, up 19%) and Kia India (289,035 PVs/UVs, up 13%) – have benefited from having a strong UV/SUV portfolio. And, Skoda Auto India (75,556 PVs, up 68%), as a result of the strong demand for Kylaq compact SUV, is the new No. 7 UV OEM in FY2026.

For overall UV sales in FY2026, Maruti Suzuki (760,097 units, up 6%) holds onto its No. 1 UV OEM title for the ninth year in a row. The company, which accounted for a market-leading 24.50% share of the 3.10 million UV sales in FY2026, however saw its UV share reduce to 24.50% from 26% in FY2025 because of the higher growth rate displayed by Mahindra & Mahindra and Tata Motors.

M&M (660,276 units, up 20% and 21% UV share) maintains its No. 2 rank as does third-ranked Tata Motors (498,052 UVs, up 15% and 16% UV share). Hyundai Motor India (399,569 units, down 3% and 13% UV share) is followed by a resurgent Toyota Kirloskar Motor (312,007 units, up 21% and 10% UV share). Kia India (289,035 units, up 13% and 9% UV share) is ranked sixth. Skoda India, as a result of the Kylaq compact SUV selling 49,089 units and accounting for 80% of the company’s total UV sales of 61,073 units, has risen one rank from FY2025 to No. 7 in FY2026.

With a record 14,73,422 units sold in FY2026 and a 47% share of the record 3.10 million UVs, the compact SUV segment remains the largest sub-segment but there’s growing demand for midsize SUVs which are set to come into their own in FY2027 what with some new models launched in H2 FY2026. From the return of the Renault Duster, which has already given a fresh charge to the company in its first month, to the Tata Sierra with sales of over 23,000 units in 3 months, and the upcoming Nissan Tekton, the new fiscal promises to be an exciting one for India’s booming utility vehicle market.

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India Two-Wheeler Sales Hit Record 21.4 Million Units in FY26, Crosses Pre-COVID Peak

Kiran Murali — Mon, 13 Apr 2026 17:28:52

The financial year 2026 marked a turning point for India’s two-wheeler industry, which finally surpassed the pre-COVID peak after several years of gradual recovery. Two-wheeler retail sales came in at 21.42 million units during the year, growing 13.4% on a yearon- year basis, reflecting a steady return of demand across markets. The long-awaited recovery was unlocked by improved affordability, better rural cash flows and a wider range of products that catered to both entry-level buyers and more aspirational customers.

The first half of the year, from April to August, remained subdued, with most months recording low single-digit growth as consumers stayed cautious amid uncertainty around the proposed GST changes. Many buyers deferred purchases after indications that tax rates on vehicles could be reduced.

The momentum shifted in the second half. From September, demand strengthened as the GST revision improved affordability and lifted consumer sentiment, while the festival season further supported sales across segments. The competitive landscape also saw notable changes.

Hero MotoCorp retained its leadership position and TVS Motor emerged as the biggest share gainer among the top five manufacturers. In electric mobility, registrations rose 22% to 1.40 million units, with penetration increasing to about 6.5% of total two-wheeler sales, indicating a gradual but steady shift toward electrification despite temporary supply challenges. The year also marked a clear shift in the electric two-wheeler market, with leadership moving back to established manufacturers.

Hero Vs Honda

Hero MotoCorp maintained its leadership position in the domestic two-wheeler market during FY26 despite strong competition from Honda Motorcycle & Scooter India and managed to slightly widen the gap with the Japanese player in both retail and wholesale numbers.

The company dispatched 6.07 million units in the domestic market during the financial year 2026, compared with Honda Motorcycle & Scooter’s domestic sales of about 5.75 million units, giving Hero MotoCorp a lead of more than 300,000 units in the country’s largest two-wheeler market.

On the retail front, Hero MotoCorp’s retail sales came in at 6.08 million units, while Honda’s retail sales were at 5.36 million, 721,000 units lower than Hero MotoCorp. The gap between the two players, which more than halved to 655,000 units in the financial year 2025, saw an increase in FY26. The domestic market remains the backbone of Hero’s overall leadership, given the company’s strong dependence on the local market, unlike Honda, which has a strong export base.

The gap between the two companies in domestic dispatch volumes widened slightly in the financial year 2026 compared with around 286,000 units in the previous year, indicating a stabilisation in Hero MotoCorp’s performance after a period of pressure.

The rivalry between the two companies has intensified over the past few years, with Honda steadily closing the gap through consistent growth, particularly in scooters. However, Hero’s entrenched position in the commuter motorcycle segment has helped the company defend its leadership in the domestic market. The competitive landscape was more challenging for Hero MotoCorp in the previous financial years, with the Indian player losing its leadership to the Japanese player in a few months.

Hero’s sustained leadership in the domestic market was supported by continued demand for its commuter motorcycle portfolio, particularly the Splendor range, which remains a key contributor to volumes in rural and semi-urban markets. This was especially the case given that GST cuts gave a fillip to demand at the base of the pyramid.

The automaker has also been focusing more on the mid-size and premium segments to ride on the premiumisation trend, but has been met with limited growth in its electric mobility business, which added to its domestic dispatch momentum during the year. The expansion of Hero’s electric vehicle portfolio played a growing role in strengthening its domestic position.

Registrations of its electric scooter sold under the Vida brand nearly tripled during FY26, helping the company increase its share in the electric two-wheeler segment. The rapid growth in electric volumes provided additional support to overall domestic performance at a time when competition in conventional segments remained intense. Honda, meanwhile, continued to rely on its strong scooter portfolio to drive domestic sales.

The company remains a leading player in the scooter segment, though its earlier dominance has moderated as competitors such as TVS Motor Company and Suzuki Motorcycle India expanded their presence. This shift has created a more competitive environment in urban markets, where scooters account for a significant share of demand.

In commuter motorcycles, Honda continued to face headwinds against Hero’s deep-rooted dominance, which limited its ability to significantly alter the domestic market hierarchy despite expanding its entry-level product portfolio. Hero’s extensive dealer network and strong brand recall in rural markets continued to provide structural advantages in this segment.

E-2W Market

India’s electric two-wheeler market saw its registrations rise 22% year-on-year during FY26 to 1.40 million units. The growth rate moderated from the year-ago period rather than the sharp spikes seen in earlier phases of EV adoption, while penetration in overall sales increased. The growth reflects a wider spread of products across different price points, improved availability, and gradual consumer acceptance, particularly in urban and semiurban markets.

Unlike the earlier years, traditional ICE OEMs now hold more than half of the electric twowheeler market. TVS Motor emerged as the largest player in this segment, while Ola Electric, which was the market leader, fell to fifth place in sales. The moderation in growth compared with previous years suggests the market is entering a more stable, demand-led phase rather than one driven purely by subsidies.

The penetration levels continue to underline the gradual nature of the transition, accounting for around 6.5% of total two-wheeler sales in FY26, compared to 5.8% in the year-ago period. Industry participants say adoption is being supported by higher aspirational value, improved product quality and a broader choice of models, especially from established OEMs.

Pricing remains a key factor, with the narrowing cost differential between electric and ICE twowheelers influencing purchase decisions, particularly in the entry and commuter segments. TVS Motor emerged as the leader. Its registrations were at 340,758 units, marking a 43% year-on-year increase.

The company’s market share rose to 24.3% from 20.7%, reflecting steady scale-up in volumes and consistent demand. Bajaj Auto closed as the second-largest player with 288,866 units, recording 25% growth year-on-year. Its market share improved modestly to 20.6% from 20.1%, indicating stable expansion but at a slower pace compared to rivals.

Ather Energy and Hero MotoCorp emerged as the fastest-growing players among the top six in FY26. Ather’s registrations came in at 238,461 units, representing a jump of 82%, while its market share expanded sharply to 17% from 11.4%. Hero MotoCorp’s registrations almost tripled to 144,099 units. This rapid expansion helped the company increase its market share to 10.3% from 4.2%.

In contrast, Ola Electric saw a sharp decline in its sales during the year. Its registrations halved to 164,215 units and market share fell significantly to 11.7% from 29.2%, indicating loss of momentum in a highly competitive market. Greaves Electric rounded out the top six players, registering 61,641 units, a 51% increase year-on-year.

The company’s market share improved to 4.4%, gaining 85 basis points. Monthly momentum remained strong at the end of the fiscal. March 2026 registrations rose 45% yearon- year and 70% sequentially to 190,941 units, aided by year-end dispatches, dealer stocking and improved supply alignment. The sharp month-on-month jump also indicates that underlying demand remains intact, even as the market navigates changing dynamics.

The broader trend through FY26 points to a gradual shift in market dynamics, with established two-wheeler manufacturers such as TVS Motor, Bajaj Auto and Hero MotoCorp strengthening their presence. Their gains are being driven by stronger dealer networks, better brand value and service reach, which are increasingly becoming critical as the market matures.

Government subsidies under the PM E-Drive scheme, and earlier under the FAME programme, have played a key role in driving the adoption of electric vehicles. Subsidies for electric two-wheelers are now set to end in July. Several OEMs have said the industry is better prepared to sustain growth even without demand subsidies, as production volumes have increased and scale efficiencies have improved.

Looking Ahead

Rating agencies and brokerages are forecasting mid-to-high single-digit growth for the domestic twowheeler industry going forward on the back of better affordability, new launches. Production plans of major OEMs indicate that competition in the domestic market will remain intense.

According to industry sources, Honda is targeting production of about 6.79 million two-wheelers in the financial year 2027, while Hero MotoCorp plans output of around 6.92 million units during the same period, about 200,000 units higher than Honda. TVS Motor, which surpassed Yamaha in 2025 to become the world’s third-largest manufacturer by sales volume globally, is now targeting double-digit growth in its two-wheeler production to 6.8–7.2 million units in FY27.

This production target would position TVS Motor to challenge Honda for the number two spot in India’s twowheeler market. However, growth estimates and production targets for next year were made assuming normal business conditions, up until the start of the war in West Asia.

If the war continues for a longer period, the demand and production numbers may change. Brokerages highlighted cost pressure for manufacturers following the surge in input costs across all commodities amid the West Asia war. Motilal Oswal noted that there are clear headwinds emerging for the automotive sector, given the ongoing geopolitical turmoil in West Asia.

“While most of the large companies are managing gas supplies at their end very well so far (as well as their supply chain), there is no certainty that they would continue to do so in the coming months if this situation persists,” said Motilal Oswal said in a report.

According to Equiris Securities, the Indian two-wheeler market is entering a more stable growth phase, aided by replacement demand, better affordability following GST reductions and rising electrification, particularly in scooters, with the product mix gradually shifting toward scooters and electric vehicles over time.

“We expect domestic 2W volumes to grow ~6% CAGR over FY25–FY30E, supported by replacement recovery and rising penetration, before moderating structurally over the long term as electrification reshapes the industry mix,” the investment banker said.

Toyota Hyryder Outsells Innova Again in March, Sells 99,890 Units in FY2026

Ajit Dalvi — Sat, 11 Apr 2026 11:28:30

The Toyota Urban Cruiser Hyryder midsize SUV has outsold Toyota Kirloskar Motor’s best-selling model, the Innova MPV, for the third time in FY2026 and for two months in a row.

Having first achieved this feat with its highest monthly wholesales of 11,555 units in October 2025, news which was broken by Autocar Professional, the Hyryder repeated the act in February 2026 with sales of 9,359 units and now in March. In March 2026, the Hyryder sold 10,206 units, up 93% YoY (March 2025: 5,286 units), which is 50 units more than the combined sales of the Innova Hycross and the Crysta (10,156 units, up 3% YoY).

This made the Hyryder the best-selling Toyota model in March 2026, accounting for a 29% share of TKM’s domestic market factory dispatches of 35,125 units, up 19% YoY, which is similar to the two Innovas’ share.

Though the Hyryder outsold the Innova thrice in FY2026, the MPV remained TKM’s best-selling model with 112,186 units to the Hyryder’s 99,890 units. Will the Hyryder turn the tables on the Innova in FY2027?

The Urban Cruiser Hyryder’s March sales constitute the second instance of the midsize SUV surpassing 10,000 units after October 2025 (11,555 units). The midsize SUV’s cumulative 12-month wholesales of 99,890 units in FY2026 are a handsome 65% YoY increase (FY2026: 60,388 units), albeit they missed hitting the 100,000 fiscal year milestone by a whisker – just 110 units. The YoY increase is an additional 39,502 units, which has powered Toyota India’s record wholesales of over 360,000 passenger vehicles last fiscal.

What added tailwinds to the Hyryder sales in the second half of FY2026 was the GST 2.0-driven price reduction, followed a few months later by the launch of the Hyryder Aero Edition which features an exclusive styling package with front spoiler, rear spoiler and side skirts. End-January 2026 saw TKM introduce an official accessories ‘Tech Package’, which adds some features and safety kit for a Rs 29,499 premium, a strategic model-differentiator move which would have helped accelerate sales.

Nevertheless, despite the charge of the Hyryder, the Innova maintained its numero uno status in the Toyota India stable and kept its midsize SUV sibling at bay in FY2026. In FY2026, combined Innova Hycross and Crysta sales were 112,186 units, up 5% YoY (FY2025: 107,204 units) and 12,296 units ahead of the Hyryder.

Despite the growing competition, the Hyryder has made its mark in the midsize SUV market. The strong-hybrid variant has an EV-only mode that delivers stellar economy.

Making a Mark in a Competitive Midsize SUV Market

The Urban Cruiser Hyryder is part of the competitive midsize SUV pack which has been witnessing growing demand over the past year. Its rivals include the Tata Sierra, Hyundai Creta, Maruti Victoris, Kia Seltos, Maruti Grand Vitara, Skoda Kushaq, Volkswagen Taigun, Renault Duster and Citroen Aircross. It also competes with SUV-coupes like the Tata Curvv and Citroen Basalt.

The petrol-only SUV is currently available in 13 variants — 8 petrol, 2 CNG, and 3 strong hybrid — with pricing starting at Rs 10.99 lakh for the Petrol E Neodrive MT trim to the top-end Petrol V Hybrid AT trim (Rs 19.99 lakh ex-showroom). The engines on option are a 103hp petrol and a 116hp strong-hybrid petrol, with manual and automatic transmission choices. The petrol engine is also available with an AWD option with an automatic transmission. A CNG powertrain (89hp and 121.5 Nm) mated with only a manual transmission is also offered. The Toyota Hyryder’s mileage ranges between 19.2kpl and 27.97kpl.

The Hyryder’s USP is its strong-hybrid petrol powertrain, aimed at filling the void created by the lack of a diesel engine and also bridging the gap between petrol and EVs. With a claimed fuel efficiency figure of 27.97kpl, the Hyryder is one of the most fuel-efficient vehicles available in India and benefits from technology that minimises losses in a pure IC engine through electrification — leveraging benefits such as brake-energy recuperation and turning off the engine while idling excessively.

The Hyryder, launched in September 2022, drove past the 200,000 sales milestone in December 2026, and has clocked total sales of 232,033 units from launch till end-March 2026. While the first 100,000 units were sold in 26 months, the next 100,000 units’ sales took 15 months, reflecting the frenetic increase in customer demand as well as its growing share of TKM sales. Over 85,000 units have also been exported till date.

In FY2026, while the two Innovas took the 11^th rank amongst the best-selling utility vehicles, the Toyota Urban Cruiser’s stellar performance saw its jump five ranks YoY to No. 14 and helped Toyota Kirloskar Motor achieve record UV and PV sales in FY2026.

Of the company’s 10-model portfolio, the Innova continued to have the largest model-wise share – 31% in FY2026. The Hyryder with 27% was its second best-selling product, maintaining this podium position right since FY2024 which was its first full year of sale. Will the Hyryder, which is witnessing a much higher rate of growth than the Innova and also outsold the MPV in the last quarter of FY2026, turn the tables on its big brother in FY2027? Watch this space for the latest sales and number-crunching analyses.

ALSO READ: Tata Nexon reclaims No. 1 SUV crown in FY2026

The Million-Unit Milestone: FY26 Redefines India’s Tractor Market

Anurag Chaturvedi — Fri, 10 Apr 2026 11:25:00

Few years in recent memory have brought together as many tailwinds for Indian tractor makers as fiscal 2026. An above-normal monsoon refilled rural cash flows. State governments in poll-bound Maharashtra and Bihar opened the subsidy taps. An unexpected cut in the Goods and Services Tax on tractors from 12 to 5 percent in late September lowered sticker prices overnight. And as the deadline for stricter TREM 5 emission norms drew closer, dealers and farmers pulled forward purchases they might otherwise have made later. By the close of March, the industry had sold more tractors than ever before.

Domestic wholesale dispatches are estimated to have risen by 23.47 percent to 11,60,231 units in FY26. Retail registrations tracked by FADA reached 10,50,077, up from 8,82,825 a year earlier. Both numbers are the highest the Indian tractor industry has recorded, and the first time wholesale volumes have crossed one million in a single fiscal year.

Mahindra & Mahindra retained its leadership by a wide margin. The group, which houses both the Mahindra and Swaraj brands, sold 5,05,930 tractors in the domestic market in FY26, a 24.28 percent rise over the previous year, lifting its wholesale share marginally to 43.61 percent. On the retail side, the Mahindra brand alone accounted for 23.81 percent of registrations and Swaraj for another 18.76 percent. In its April 1 statement, Veejay Nakra, president of Mahindra's Farm Equipment Business, said the company "ended FY26 with highest ever sales of 5,05,930 registering growth of 24%". He added that March alone delivered 43,403 units, a 33 percent jump "driven by the full Navratri season falling entirely in March'26, unlike last year when it was split between March and April".

The fastest gainer among the top six was CNH Industrial's New Holland, which expanded its wholesale volumes by 36.95 percent to 53,225 units and lifted its FADA-tracked retail sales by close to a third to 47,122 units. Speaking to Autocar Professional, Narinder Mittal, who heads CNH India, traced the year's outperformance to an effort that had begun nearly two years earlier, built on investments in network, brand and product. "Last year was a good year because of those actions we have taken," he said. The returns showed in the north. New Holland's market share in Punjab moved from around 11.5 to roughly 15 percent over the year, and in Haryana from about 6.5 to 9 percent. Mittal acknowledged that the September GST cut had caught the company off guard. "GST was something which was not expected," he said.

The Policy Tailwind

The single intervention that defined the year was GST 2.0, approved at the 56th Council meeting on September 3, 2025. The levy on tractors was cut from 12 to 5 percent with effect from September 22, lowering ex-showroom prices by ₹40,000 to ₹60,000 per unit depending on horsepower. The Council also reduced GST on tyres, tubes, hydraulic pumps and agricultural diesel engines from 18 to 5 percent, correcting a long-standing inverted duty structure.

Retail data tracked the change almost in real time. November 2025 was the industry's strongest month at around 1.26 lakh units, with December and January each holding at roughly 1.15 lakh.

Beyond GST, the fiscal backdrop was unusually supportive. The Union Budget for 2026-27 allocated ₹1,40,561 crore to the agriculture ministry. The Pradhan Mantri Kisan Samman Nidhi disbursed roughly ₹78,000 crore in four installments. The Sub-Mission on Agricultural Mechanisation continued to subsidise 40 percent of the cost of new equipment for general-category farmers and 50 percent for small, marginal, women and SC/ST buyers.

By January 2026, the Agriculture Infrastructure Fund had sanctioned ₹80,224 crore for over 1.5 lakh projects. Maharashtra's Mahayuti government ran the Namo Shetkari Mahasanman Nidhi, which adds ₹6,000 a year to PM-KISAN's ₹6,000, and committed ₹20,000 crore to a free-power scheme for irrigation pumps. Bihar, which went to the polls in November 2025, introduced a ₹3,000 state top-up to PM-KISAN that lifted the combined annual transfer for a Bihar farmer to ₹9,000, and offered subsidies of 40 to 80 percent on 91 categories of farm machinery. The pattern was clear in the sales data. "Maharashtra clearly outpaced pan-India growth by a decent margin," said Hemal Thakkar, senior director at CRISIL, attributing the gap partly to political factors.

The regional mix has shifted too. The northern belt still accounts for over a third of sales, but its growth has moderated relative to the rest of the country. The west was the strongest performer in FY26, taking nearly 40 percent of the market on year-on-year growth of up to 28 percent.

Trade policy added another layer. The India-UK Comprehensive Economic and Trade Agreement, signed in July 2025, grants 99 percent of Indian exports duty-free access to the British market from April 2026. The India-EU FTA was concluded on January 27, 2026, and the EFTA agreement with Switzerland, Norway, Iceland and Liechtenstein took effect on October 1, 2025, bringing with it a binding $100 billion investment commitment over 15 years. In early February, a reset with Washington lowered the effective US tariff on Indian goods from a stacked 50 to 18 percent, restoring competitiveness for exporters such as Mahindra and Sonalika after a bruising first half. Tractor exports are expected to cross 1 lakh units for the first time in FY26.

The looming implementation of TREM 5 shaped the second half of the year. The norms, comparable in scope to the BS-VI transition for passenger vehicles, will require diesel particulate filters and selective catalytic reduction systems on most tractor engines, and ICRA estimates this will add ₹1.5 lakh to ₹3 lakh to sticker prices once fully implemented. A draft notification from the Ministry of Road Transport and Highways has since proposed a phased rollout, starting with sub-25 HP and above-75 HP tractors in October 2026 and pushing the full norm for the dominant 25 to 75 HP segment to April 2032. Whether the prospect of those price increases pulled some FY27 demand into the closing months of FY26 remains contested. Thakkar is sceptical. "I don't think so," he said. "At the end of the day, the dealer knows the customer will come back to buy again in the future. Making a one-time push at the customer's expense is not a sustainable strategy for the dealer."

The Currents Beneath the Surge

The power profile of the Indian tractor market is shifting underneath these headline volumes. The 41-50 HP segment has grown from under half of all sales in FY19 to nearly two-thirds by FY26, largely at the expense of the 31-40 HP band. The 51 HP and above category has shrunk to a sliver. The industry appears to have settled on a band that suits both commercial haulage and the economics of custom hiring.

The first shift is the rise of non-farming use. Tractors are increasingly deployed for haulage, construction, sand mining and rural infrastructure work, and the share of commercially deployed units now varies, by various estimates, between 12 and 20 percent in normal years and considerably higher when rural construction activity is strong. An analyst who asked not to be named put the FY26 figure as high as 45 to 55 percent, citing the Vahan portal as the closest available source even though the absence of a separate commercial registration category for tractors makes precise measurement impossible.

Thakkar offers a more conservative band. "Whenever rural construction intensity is very high, commercial demand picks up," he said, noting that eastern states such as Bihar, West Bengal, Jharkhand and Odisha tend to have the highest commercial share. CNH's Mittal, too, said the company is "quite extensively working on the loader application" and on rig and trench-digging variants, with "a substantial improvement on these applications" expected this year.

The second shift concerns the land itself. The average operational landholding in India fell from 1.08 hectares in 2016-17 to 0.74 hectares in 2021-22, a product of inheritance laws, urbanisation and economic distress. On its face, this is a structural negative for an industry whose unit economics improve with scale. "Structurally, it should impact the industry negatively, because smaller farmland sizes reduce affordability," Thakkar said. The industry has so far defied that logic by moving up the horsepower curve, as labour shortages make mechanisation indispensable and as land consolidation through custom hiring offsets the fragmentation of ownership.

That brings the third trend into view. Custom Hiring Centres, which rent machinery to farmers who cannot justify the capital cost of ownership, have proliferated to 75,915 across India as of 2025, according to a recent review in the Asian Journal of Current Research. Punjab leads with 11,148 centres, followed by Andhra Pradesh and Haryana. Studies cited in the review suggest hiring through a CHC cuts the cost of cultivation by around 15.71 percent compared with private rentals and lifts net returns by 24 percent.

Financing remains the most reliable underpinning of demand. Roughly 95 percent of tractors sold in India are bought on credit, and 125 basis points of policy rate cuts delivered by the Reserve Bank in 2025 lowered borrowing costs for rural buyers.

Replacement demand, muted in 2023-24 because the cohort of tractors coming up for replacement was small, has also turned supportive. "The base coming up for replacement is from 2018-2019, which were strong years for the industry," Thakkar said, adding that a typical owner replaces a tractor every five to nine years.

Whether FY26 marks a new floor for the industry or an aberration will hinge largely on the rains. ICRA expects domestic tractor volumes to grow at a more modest 1 to 4 percent in FY27, citing the high base, the probability of an El Niño event, and the demand hangover after the GST-fuelled rush of the second half. CRISIL strikes a similar tone. "On a very high base, 20 percent plus for FY26, growth will be very muted. We will be happy if the industry grows at even a marginal single-digit level," Thakkar said. He flagged two specific risks for the year ahead. The first is the timely availability of fertilisers, made uncertain by the West Asia conflict, since a delay in supply during the sowing season directly impairs production. The second is the IMD's forecast of subpar rainfall, which in his view "could bring the industry down" if it materialises.

Even a flat year would leave the industry within striking distance of the run rate it touched in FY26. As one analyst, who requested anonymity, observed, "We have reached sales of 1,156,000 units, the highest ever recorded. Even if we are able to maintain around 1,127,000 units, that is still a very big number." The million-unit mark, in other words, may have begun to look less like a ceiling and more like a baseline.

From Slow Start to Strong Finish: India PV Sales Cross 47 Lakh in FY26

Darshan Nakhwa — Fri, 10 Apr 2026 10:18:00

India’s passenger vehicle (PV) market closed the financial year 2025-26 on a historic note, with retail sales crossing the 47-lakh mark for the first time. However, this record performance was shaped by sharp contrasts, with a subdued first half followed by a strong policy-led rebound in the second.

Much of the growth in the second half of the year was driven by the government’s push to boost consumption through policy interventions, improving macroeconomic conditions, and tactical industry actions.

“The year did not start out exciting, but it became exciting because of the interventions that GST brought in. There was a clear indication that more money was coming into consumers’ hands, and that supported demand,” said Ravi Bhatia, President, JATO Dynamics India.

According to data from the Federation of Automobile Dealers Associations (FADA), PV retail sales stood at 47,05,056 units in FY26, up 13% year-on-year. The industry moved through two distinct phases during the year, shaped as much by macroeconomic uncertainty as by policy intervention.

The April to September period was marked by caution. Geopolitical tensions with Pakistan, tariff uncertainties, and heavy rains disrupted both supply chains and consumer confidence. Financing remained tight, and buyers, especially in the entry-level segments, deferred purchases amid uncertainty around GST 2.0.

The result was a muted first half, with dealerships reporting slower footfalls and rising inventory levels. PV stock, which had been a persistent concern throughout FY25, remained elevated in the early months of FY26. During this period, PV sales grew 4% year-on-year to 19,50,586 units.

The narrative changed decisively in the second half. The rollout of GST 2.0 improved affordability, particularly in the small and mid-size car segments, and helped unlock pent-up demand. The recovery was also aided by a strong festive season, lower borrowing costs following repo rate cuts, a stabilizing macro environment, and aggressive discounting and pricing interventions by OEMs.

The second-half surge was further underpinned by a release of pent-up replacement demand, as customers who had deferred purchases amid high prices and uncertainty returned to the market following GST-led corrections.

The strength of the recovery was evident in Q3, which saw record PV sales of over 12.7 lakh units, underscoring the sharp demand rebound following GST-led interventions.

“FY26 was clearly a two-phase year. The second half saw a decisive upshift as GST 2.0 improved affordability, lifted sentiment, and triggered broad-based retail momentum,” said FADA President CS Vigneshwar.

Importantly, the year also marked a shift in OEM strategy, with higher pricing power and premiumization driving improved margins, as automakers balanced affordability gains from GST with selective price increases.

“We saw average prices go up; mass-market car prices went up by over 5% and luxury cars by about 8.8%, which clearly indicates that margins improved for automakers,” Bhatia said.

The recovery was not just visible in overall PV volumes but also in inventory discipline. Dealer stock levels corrected sharply from over 50 days to around 28 days by March, signaling a healthier balance between wholesale dispatches and retail demand. For the first time in recent years, the industry appeared aligned, and what was being sold to dealers was largely being sold to customers.

However, industry sources indicate that inventory remains uneven, with faster-moving models facing supply constraints while slower-moving variants continue to account for a significant share of dealer stock.

In FY26, rural markets emerged as a key growth driver for PVs, outpacing urban regions by a meaningful margin. Rural sales grew by 17.12% during the year, compared to 10.43% in urban markets.

“Rural demand has been a key driver of growth, supported by improved farm incomes and favorable monsoon conditions,” said Hemal Thakkar, Senior Director, Crisil Intelligence.

The stronger rural traction was supported by improved farm incomes, better monsoons, and increasing aspiration-driven purchases, particularly in SUVs and utility vehicles. In contrast, urban demand remained relatively measured in the first half due to macro uncertainties and financing constraints, before picking up pace in the second half following GST 2.0-led improvements in affordability and sentiment.

A Reshaped Pecking Order

FY26 did more than just deliver record volumes; it altered the competitive landscape of India’s PV market.

For years, the hierarchy beneath Maruti Suzuki India Ltd had remained relatively stable, with Hyundai Motor India Ltd holding the second position and Tata Motors Passenger Vehicles Ltd and Mahindra & Mahindra Ltd alternating between third and fourth. FY26 disrupted that order.

Mahindra emerged as the second-largest player with a 13.42% market share. Hyundai slipped to fourth place with a 12.29% share, down sharply from 13.48% in FY25. Even market leader Maruti Suzuki saw its share decline to 39.71% from 40.20% in FY25, marking the fifth consecutive year of erosion since FY22.

The used car market has also been slower to adjust to the new price dynamics, further complicating recovery in the entry-level segment.

Hyundai, on the other hand, faced a different set of challenges. While it has a broad portfolio, parts of it have aged, and its positioning appears increasingly misaligned with the fastest-growing segments of the market. The company has had limited successful offerings in the highly competitive sub-Rs 12 lakh SUV segment, where demand has surged.

The erosion in Hyundai’s share is particularly notable. The company’s domestic volumes declined even as the broader market expanded, making it the only one among the top-four OEMs to report negative growth.

In FY26, other mass-market players delivered mixed performances. Toyota Kirloskar Motor Pvt Ltd continued to gain traction, aided by strong hybrid offerings, increasing its share to 7.13%. Kia India Pvt Ltd held steady with a 5.94% share, and Skoda Auto Volkswagen Group saw its share increase to 2.34%. Meanwhile, Honda Cars India Ltd and Renault India Pvt Ltd saw marginal declines, reflecting limited product momentum.

The luxury segment, while small in absolute terms, continued to grow steadily in FY26. Mercedes-Benz India remained the market leader with 18,160 units, followed closely by BMW India Pvt Ltd at 17,301 units. Jaguar Land Rover India Ltd and BYD India Pvt Ltd also posted incremental gains, reflecting rising demand for premium SUVs and electric vehicles.

According to JATO Dynamics India, among luxury passenger vehicles, Mercedes-Benz’s E-Class emerged as the highest-selling model in FY26, with sales rising 22.3% year-on-year to 4,350 units. The standout performer, however, was BMW’s electric SUV iX1, which recorded a sharp 378% surge to 3,210 units, highlighting the growing traction for EVs in the luxury space. Mercedes-Benz also saw steady demand for its SUVs, with the GLE growing 11.5% to 3,069 units and the GLS remaining largely stable at 2,791 units. Meanwhile, BMW’s 3 Series sedan posted modest growth of 3% to 2,753 units.

Body Styles and Powertrains

The market is also increasingly splitting into two distinct cohorts: value-conscious buyers at the entry level and experience-driven consumers willing to pay a premium, forcing OEMs to recalibrate product strategies across price bands.

“You need different products for India 1 and India 2. Those who are reading the market correctly are the ones succeeding,” Bhatia noted.

If FY26 had a defining theme, it was the continued dominance of SUVs. The body style now accounts for over half of all PV sales, reshaping the structure of the Indian car market.

Consumers are increasingly prioritizing higher ground clearance, better road presence, and feature-rich vehicles. As a result, hatchbacks continued to lose share, particularly in the entry-level segment. Sedans, mini MPVs, and vans saw steady demand, while niche categories such as coupes and convertibles remained small.

The shift was even more visible in the fuel mix. Petrol/ethanol vehicles continued to dominate but saw their share decline to 47.48% from 50.82% in FY25, indicating a gradual diversification. Diesel remained stable at around 18%, while CNG/LPG saw a rise to 21.98%, driven by lower running costs and improved availability.

The rise of CNG has also been closely linked to fleet demand, with segments such as taxis and shared mobility driving a significant portion of volumes, supported by faster replacement cycles and favorable operating economics.

Hybrids accounted for 8.22%, while EVs continued to gain traction, with their share rising to 4.25% in FY26 from 2.61% a year ago. Customer preference for greener technologies gained further momentum in FY26, with EV volumes growing 84% year-on-year to 1,99,923 units, as per FADA data.

However, EV adoption remains uneven. “EV penetration in the sub-Rs 10 lakh segment has actually declined, which shows that affordability remains a key constraint,” Bhatia said.

Beyond pricing, practical challenges around usage continue to weigh on EV adoption. “Charging infrastructure is still not convenient enough — availability is one thing; usability is another,” he added.

The shift toward alternative powertrains reflects a broader change in consumer behavior. “India is no longer just a value-for-money market. Buyers today are looking for experience, technology, and aspiration,” Bhatia said.

Buyers are increasingly evaluating the total cost of ownership rather than just the upfront price, especially in a high fuel-cost environment due to emerging geopolitical tensions.

The transition to E20 fuel has also introduced new considerations for consumers, with concerns around real-world efficiency and long-term engine performance influencing buying decisions.

According to JATO Dynamics India, petrol vehicle sales remained largely flat at 26,06,118 units in FY26 compared to 26,04,939 units a year ago. In contrast, CNG vehicles recorded strong traction, with sales rising 23.3% year-on-year to 10,21,156 units, driven by lower running costs and wider availability. Diesel also saw a healthy rebound, growing 10.2% to 8,80,735 units, supported by sustained demand in SUVs and utility vehicles.

Outlook for FY27

As the industry moves into FY27, sentiment remains cautiously optimistic. According to FADA, nearly 75% of dealers expect growth in the 3-7% range, indicating confidence in the underlying demand story. However, risks remain.

“While the growth outlook for FY27 remains positive, it is likely to be more measured. With several macroeconomic headwinds beginning to emerge, there is a slight downward revision; we expect the PV market to grow by 5% to 7% from an earlier guidance of 3% to 5%,” added Thakkar. (Note: You may want to review this quote with the author, as a change from 3-5% to 5-7% is technically an upward revision, contradicting the word "downward".)

Geopolitical uncertainties, particularly in West Asia, could disrupt supply chains and impact production schedules. Rising fuel prices and a broader economic slowdown are also key concerns.

Rising input costs, particularly in energy and raw materials, are also beginning to strain supplier ecosystems, especially at the Tier 2 and Tier 3 levels, potentially impacting production economics in the coming quarters.

“Increasing input costs, particularly in energy and commodities, are beginning to put pressure across the value chain, especially for Tier 2 and Tier 3 suppliers,” said Thakkar.

At the same time, the accelerating shift toward EVs and CNG vehicles is expected to continue. Over 56% of dealers report increasing customer interest in these powertrains, suggesting a structural transition in the market.

“Looking ahead, industry momentum is expected to sustain, led by growth in SUVs, CNG, and EVs. At the same time, the industry will need to closely monitor geopolitical developments to mitigate potential supply-side risks. For Tata Motors Passenger Vehicles, we expect to build on the strong momentum of H2 and continue to deliver industry-beating growth in FY27, supported by recent launches, a strong pipeline of new products, and an established multi-powertrain strategy,” said Chandra.

“We stay mindful of the prevailing geopolitical uncertainties; Hyundai Motor India Limited is well-prepared for a strong FY2026-27, delivering aspirational, connected, and innovative products,” TarunGarg, MD & CEO of HMIL, said.

Automakers, too, are preparing for the next phase of growth. Tata Motors is expanding its EV lineup with upcoming launches such as the Sierra EV and Safari EV. Hyundai is banking on product refreshes and new launches, including its EV push, to regain momentum. Honda Cars India is also set to enter the EV space with its first battery electric vehicle.

A Year of Transition

FY26 will be remembered not just for its record volumes but for the shifts it triggered.

It was a year where policy intervention, particularly GST 2.0, played a decisive role in reviving demand. It was also a year where the market’s center of gravity moved further toward SUVs and alternative powertrains. More importantly, it marked a change in competitive dynamics. Mahindra and Tata have emerged stronger, while Maruti and Hyundai face the challenge of realigning their portfolios with a rapidly evolving market.

While FY26 delivered record volumes, a significant part of the growth was underpinned by policy support, pricing interventions, and replacement demand. This raises questions about how sustainable this momentum will be as these tailwinds begin to normalize—particularly as the West Asia crisis fuels inflationary pressures, strains supply chains, and risks dampening demand through rising prices.

“The momentum seen in the second half of FY26 may not fully sustain as some of these supporting factors begin to normalize,” Thakkar opined.

As the industry steps into FY27, the outlook is more measured, even as the sector remains on course to approach the 5-million annual sales mark over the medium term. SIAM, the industry body, has guided for 5–7% growth, though a downward bias is emerging amid the protracted West Asia crisis, which is expected to impact input costs, supply chains, and pricing.

“The industry is clearly moving toward the 5-million mark, but getting there will depend on how demand holds up amid rising prices and macro uncertainties,” said Bhatia.

These pressures are likely to temper momentum, requiring automakers to carefully balance both cost and demand in the year ahead.

EV Share of 3-Wheeler Sales Jumps to 61%, CNG Falls to 24% in FY2026

Ajit Dalvi — Sat, 04 Apr 2026 13:19:35

The smart growth of India’s electric 3-wheeler industry, which continues to witness the fastest transition from conventional fuels to electric mobility amongst all vehicle segments, continues to eat into the CNG-powered 3W market. In FY2026, e-3W sales hit a record 830,819 units as compared to CNG 3Ws whose sales at 327,958 units (down 4% YoY) have dropped to their lowest level since FY2024 when they registered their highest sales.

The electric 3W segment’s record retail sales in FY2026 have given the category a 61% market share – an additional 4% YoY – while that of CNG 3Ws dropped to 24% from 28% in FY2025.

As per Vahan data for FY2026, of the total 1.36 million 3Ws sold in India across all powertrains (electric, CNG, diesel, LPG and petrol), zero-emission electric 3Ws account for the bulk of them – 61% – clearly establishing their stranglehold over this vehicle segment.

Furthermore, the e-3W sub-segment is also the one to register the highest YoY growth (see FY2026 vs FY2025 data table above). The 19% YoY growth in sales has given it an additional 4% market share, increasing from the 57% it had in FY2025.

In comparison, CNG three-wheelers have lost exactly the same level of market share that 3W EVs have gained: 4 percent. The 4% decline in CNG 3W sales in FY2026 meant that this sub-segment delivered 12,630 fewer units to customers YoY (FY2025: 340,588 units).

Among the impediments to better adoption of CNG three-wheelers have been regular price hikes of this fuel which increase the total cost of vehicle ownership, which is critical in this vehicle category which caters to both passenger and cargo transport. As of today (April 4, 2026), CNG costs Rs 81 per kg in Mumbai, which is a Rs 4 per kg rise from the Rs 77 per kg rate (on December 20, 2025). In comparison, a litre of petrol costs Rs 103.49 and diesel Rs 90.01.

In a highly price- and value-conscious market like India, which have scores of individual-owned 3Ws and a growing number of last-mile mobility fleet operators, the e-3W value proposition as compared to CNG and costlier petrol and diesel is hitting home.

When compared to electric 3Ws, CNG loses out on the zero-emission wallet-friendly alternative. EVs offer a much lower running cost per kilometre of around Rs 1.40 per kilometre with a 90-120km range on a full charge. Meanwhile, a CNG 3W has an estimated running cost of around Rs 1.40 per kilometre, which works out to a 140% increase compared to an e-3W.

Meanwhile, in FY2026, diesel-engined 3W sales (166,045 units) rose by 20% YoY. This sees the diesel 3W share improve marginally to 12% from 11% in FY2025. LPG-fuelled 3W sales (33,226 units) were down 1% YoY with the LPG 3W market share falling to 2 percent. Ethanol-fueled 3Ws (3,004 units) sold more than the 2,227 petrol-engined 3Ws (down 75% YoY), which is understandable given the wallet-busting cost of this fossil fuel.

Shifting market dynamics after BS VI kicked in sees diesel share whittle down to 12% from 41% in FY2021. E-3Ws now rule the market with a 61% share while CNG share has dropped to 24%.

Electric 3W Share at Its Highest in FY2026, CNG at Lowest Since FY2023

A deep dive into the 3W industry’s sales since FY2020 reveals some interesting takeaways. Total 3W sales across all powertrains have risen 68% over the past seven years from 812,494 units in FY2020 to 13,63,278 units in FY2026.

The shifting market dynamics, particularly after BS 6 emission norms kicked in from April 2020, show that diesel which had the largest share – 41% – of the 3W market in FY2021 has whittled down to just 12% in FY2026. While expensive petrol was never a draw for 3W buyers, the combined electric and CNG share of 3Ws has risen from 41% in FY2020 to 85% in FY2026.

The rapid advance of the e-3W segment, can be seen from its speedy growth particularly since FY2023 when it crossed the 400,000 retail sales milestone for the first time and accounted for every second 3W of the total 785,094 units sold in India. Demand continued to rise over the next three fiscals and in FY2026 the e-3W industry doubled its FY2023 volume to surpass the 800,000 milestone for the first time.

In comparison, the CNG-powered 3W segment which registered its highest sales in FY2024 (356,284 units) for a 30% share of the 1.16 million 3Ws sold, sees its share of the overall 3W market progressively reduce to 28% in FY2025 and to 24% in FY2026.

The CNG 3W segment’s performance in the past fiscal gives it the lowest share (24%) since FY2023 when it contributed to 31% of the 3W industry sales of 785,094. Will electric 3Ws continue to take away buyers from the CNG segment in FY2027? Watch this space as we bring you the latest sales updates and analyses.

ALSO READ: Mahindra, Bajaj and TVS power electric 3W sales past 800,000 for the first time in FY2026

Record 1.4 million electric 2Ws sold in FY2026, command 57% share of India EV market

Luxury electric car and SUV sales jump 61% to a new high of 5,404 EVs in FY2026

EV Share of 3-Wheeler Sales Jumps to 61%, CNG Falls to 24% in FY2026

Ajit Dalvi — Sat, 04 Apr 2026 13:19:35

The electric 3W segment’s record retail sales in FY2026 have given the category a 61% market share – an additional 4% YoY – while that of CNG 3Ws dropped to 24% from 28% in FY2025.

Shifting market dynamics after BS VI kicked in sees diesel share whittle down to 12% from 41% in FY2021. E-3Ws now rule the market with a 61% share while CNG share has dropped to 24%.

Electric 3W Share at Its Highest in FY2026, CNG at Lowest Since FY2023

ALSO READ: Mahindra, Bajaj and TVS power electric 3W sales past 800,000 for the first time in FY2026

Record 1.4 million electric 2Ws sold in FY2026, command 57% share of India EV market

Luxury electric car and SUV sales jump 61% to a new high of 5,404 EVs in FY2026

Iran War Likely to Hasten Self-Reliance Quest

Autocar Professional Bureau — Mon, 23 Mar 2026 15:41:37

As escalating conflict in the Middle East keeps global energy markets on edge, India will have to attempt a radical shift toward bio-energy sovereignty. Faced with an 85% reliance on imported energy and a volatile geopolitical landscape, the world's most populous nation would have to work to establish a "new normal" that prioritises domestic self-reliance over fragile global supply chains, industry leaders said.

"Most of the countries that actually suffered from this (energy sourcing), they will work out a new normal for energy," said Atul Mulay, President of Corporate Strategy at Praj Industries, a leading bio-energy technology provider.

Industry experts pointed out that the anticipated shift should be seen in the context of logistical bottlenecks, including the near blockage of the Strait of Hormuz, which have made energy security synonymous with national sovereignty. New Delhi has walked a diplomatic tightrope, navigating US pressure on Russian crude sourcing while monitoring shifting alliances in the Middle East. The impact has been tremendous. Geopolitical tensions since the beginning of the US-Israel-Iran war on February 28, 2026 have not only raised crude prices but also created severe shortages of gas and commodities including those used in the automotive ecosystem. Also, India will have to consider a future where its neighbourhood is likely to change in the coming years with some countries forming their own 'NATO-like' regional forces, which may further complicate matters.

Automotive Friction

India's new normal will depend heavily on reducing the country's fuel sourcing needs. According to experts, this could be largely achieved through greater adoption of biofuels, which are abundant considering India remains largely an agrarian economy. For instance, the nation's ethanol blending programme has been one of its success stories in the green transition, with the government advancing its E20 (20% ethanol blending in petrol) targets by five years, moving the deadline from 2030 to 2025. This trajectory has established India as the third-largest ethanol producer in the world. India's adaptability has resulted in the production of 1,700 crore litres of ethanol, significantly exceeding the 1,000 crore litres required for the 2025 target, leading the government to permit exports.

As per government data, ethanol blending has already saved an estimated ₹1.55 lakh crore and substituted roughly 2.66 lakh metric tons of crude oil. The programme has led to a reduction of 800 lakh metric tons of CO2 emissions and approximately ₹1.36 lakh crore has been paid back to farmers for ethanol feedstocks. There were even plans to take the blending levels to E27, E30, and even further.

However, the ethanol blending programme faced its share of challenges. Last year, there was social media outrage over the issue from certain sections of the general public and media, who worried about its corrosive nature harming the health of their vehicles. Motorists, especially those with older vehicles not explicitly designed for E20, voiced fears of a drastic reduction in mileage and long-term corrosion of mechanical components. Anecdotal reports suggest efficiency losses of 15-20%, although official Automotive Research Association of India tests indicate a smaller dip of 1-6%, varying by vehicle and usage. Although the government denied the allegations, with Minister Nitin Gadkari even terming them "politically motivated", critics' apprehensions have not been successfully addressed.

Consequently, the ethanol blending programme appears to have plateaued since then, as the government has not officially announced any policy regarding increasing the blending levels.

Bharati Balaji, Dy. Director General, All India Distillers' Association (AIDA), stated that the ethanol blending programme assumes critical importance in this context. Accelerating the adoption of higher blending levels will not only reduce import dependence but also enhance energy security and provide greater stability against external shocks. India's ethanol industry has already made substantial investments and is well-positioned to support this transition. India's 1,800 crore litre ethanol capacity is a strategic energy reserve to explore. "A calibrated and forward-looking roadmap to increase blending targets will be essential to fully leverage the country's existing production capacity and ensure long-term sustainability of the biofuel ecosystem," Balaji noted.

The Stalled Promise of CBG

While ethanol has flourished, India's SATAT (Sustainable Alternative Towards Affordable Transportation) programme has languished. Originally targeting 5,000 Compressed Biogas (CBG) plants, the programme has only 133 plants on the ground.

In 2018, the Indian government unveiled an energy roadmap that was as audacious as it was green: a plan to deploy 5,000 large-scale CBG plants to convert the nation's agricultural waste into 15 million metric tons of homegrown fuel. Seven years into the initiative, the arithmetic of India's energy transition is failing to add up.

As of January 2026, only 133 plants are functional, producing a mere 926 tonnes per day. This supply crunch comes at a precarious time for the domestic automotive industry. Sales of CNG-powered passenger vehicles have surged, with market share jumping from 6% in 2020 to nearly 20% in 2025. While major manufacturers like Maruti Suzuki and Tata Motors have moved aggressively toward gas-based models, the fuelling infrastructure remains stuck in a cycle of lack of local focus and systemic bottlenecks.

Compressed Biogas is a renewable, eco-friendly fuel chemically identical to the natural gas (CNG) used to power cars and trucks. While standard natural gas is a fossil fuel extracted from the earth, CBG is green because it is produced from organic waste that would otherwise be discarded or burned.

Dr DK Ojha, Deputy Director General at the Ministry of Petroleum and Natural Gas (MoPNG), during a recent interaction with Autocar Professional, suggested that biofuels — fuels derived from organic matter like sugar, bamboo and others — are poised for significantly faster adoption by the automotive sector than electric vehicles (EVs). This shift is not merely a matter of preference but a pragmatic response to India's unique economic and logistical landscape.

A Circular Future

Despite the current hurdles, the strategic imperative is clear. The move toward a bio-energy-led economy is not just about fuel; it is a circular economy model that keeps capital within the country. By shifting from imported crude to domestic ethanol and CBG, India can stop billions of dollars from flowing out to foreign regimes.

A circular bioeconomy can transform India's vast agri-produce and agri-residue into sustainable fuels, reduce import dependence and power true energy self-reliance. "If we build our own energy, produced within our borders, from our own resources, we don't just insulate ourselves, we future-proof the nation. This is not just resilience, it is sovereignty in action," Mulay concludes. As the global energy map is redrawn by conflict and new alliances, India's best defence may well be its own fields.

Iran War Likely to Hasten Self-Reliance Quest

Autocar Professional Bureau — Mon, 23 Mar 2026 15:41:37

Automotive Friction

Consequently, the ethanol blending programme appears to have plateaued since then, as the government has not officially announced any policy regarding increasing the blending levels.

The Stalled Promise of CBG

A Circular Future

Two-Wheeler Sales to Surpass Pre-Covid Level, Will Hit a New High in FY2026

Ajit Dalvi — Sat, 21 Mar 2026 11:47:23

Amidst the ongoing global geopolitical turbulence, India continues to be a buoyant market in the form of automobile sales. With just 10 days left for the current fiscal year to come to a close, the world’s third largest automotive market is set to register a new high in FY2026 of over 27 million vehicles comprising the two- and three-wheeler, passenger and commercial vehicle segments. This will mean India Auto Inc will surpass FY2019’s record factory dispatches of 26.26 million units. Powering this growth is the largest volume segment – two-wheelers.

As per SIAM wholesales data for the first 11 months of FY2026, India 2-Wheeler Inc has clocked wholesales of 19.72 million units (1,97,29,846) which marks 10% YoY growth (April 2024-February 2025: 17.95 million 2Ws). This total is 1.45 units million shy of the record 21.17 million 2Ws sold in FY2019. Considering 2W OEMs have averaged monthly sales of nearly 1.9 million units in January-February 2026, expect this gap to be easily bridged and surpassed in March, the closing month of FY2026. One can expect total 2W wholesales in FY2026 to be in the region of 21.72 million units.

With 19.72 million units sold in the first 11 months of FY2026, 2W sales are 1.45 million units away from FY2019’s 21.17 million. With growing demand for EVs, the scooter share has risen strongly.

GST 2.0 THE MARKET MOVER IN H2 FY2026

If the Indian two-wheeler industry, which comprises motorcycles, scooters and mopeds, is in good nick after the first 11 months of the current fiscal year, it’s thanks to GST 2.0 which kicked in from end-September 2025.

The 2W industry has been among the biggest beneficiaries of the revised GST which has made this vehicle segment more affordable, particularly entry-level and commuter models. The rate cut from 28% to 18% for up to 350cc models covers nearly 97% of the motorcycle and scooter models in India. While electric 2Ws did not see any reduction in their 5% GST, above 350cc 2Ws (mainly motorcycles) saw a GST hike to 40% from 28 percent.

While the first 6 months of FY2026 saw sale of 10.23 million 2Ws, GST 2.0-fueled sales from October 2025 to February 2026 have jumped 22% to 9.49 million units with March sales still to be counted.

The growth accelerator for overall 2W sales has clearly been GST 2.0. This is amply seen when the segment’s H1 FY2026 (April-September 2025) and first five months of H2 FY2026 (October 2025-February 2026) are compared.

In first-half FY2026, 10.23 million 2Ws were dispatched to dealers across the country and made for near-flat growth (+0.7% YoY). In the last five months FY2026, thanks to GST 2.0, total wholesales at 9.49 million units are up by a robust 22% YoY (October 2024-February 2025: 77,85,413 units). This essentially has helped India 2W Inc achieve the 10% YoY growth for the first 11 months of FY2026.

EVs (964,747 units), which account for a 13% share of the 7.35 million scooters sold in the first 11 months of FY2026, helped the scooter share of the 2W market rise to 37% from 32% in FY2019.

EVs HELP SCOOTER SHARE RISE TO 37%, MOTORCYCLE SHARE DROPS TO 60%

The growing demand for scooters – both ICE and electric – has been one of the key factors for the strong growth in the 2W market. As accurately forecast six months ago in October 2025 in Autocar Professional, domestic market scooter wholesales have surpassed 7 million units for the first time in fiscal in 2026, and with one month (March 2026) still to be counted.

At 73,56,523 units (7.35 million units) in the first 11 months of FY2026, scooter sales have gone past their previous best of 6.85 million units in FY2025 and are could even close the current fiscal with record dispatches of 8 million units.

While the scooter market has recorded 17.4% YoY growth, motorcycles (11.89 million units) have witnessed a 6.1% YoY increase, improving upon their tepid growth in H1 FY2026. The scooter segment’s rapid growth is reflected in its growing share in the overall 2W pie in FY2026 YTD compared to motorcycles which has dropped.

In the FY2019 vs FY2026 (11 months) comparison, the scooter share has increased to 37% from 32% seven years ago, while that of motorcycles has fallen to 60% from 64% in FY2019. Meanwhile, the share of the humble moped has halved to 2% from 4% in FY2019 when it had clocked record sales of 880,227 units versus 477,048 units in FY2026 YTD.

What has also helped scooter OEMs is the growing demand for two-wheeled EVs. Compared to FY2019, when e-2Ws had little of a presence in India, FY2026 has already witnessed record retails (customer deliveries) of over 1.3 million units (as of March 20).

As per SIAM wholesales data for its member companies, seven e2W OEMs (TVS, Bajaj Auto, Ather Energy, Hero MotoCorp, Honda, Suzuki, Yamaha) has clocked wholesales of 964,747 e-scooters in the past 11 months and account for a 13% share of the 7.35 million scooters (ICE and EV) sold in FY2026 YTD.

In comparison, the motorcycle segment has very little or no legacy OEM presence in EVs and is currently led by start-ups including Revolt Motors, Ola Electric and Ultraviolette.

ALSO READ: TVS Clocks Retail Sales of 300,000 Electric 2Ws for the First Time in a Fiscal

Scooter exports surpass 600,000 units, Honda leads the charge in FY2026

Volkswagen India Dispatches 113 Tayron Premium SUVs in First Month of Sale

Ajit Dalvi — Sat, 14 Mar 2026 12:44:46

Volkswagen India’s recently launched Tayron premium three-row SUV has registered wholesales of 113 units in February 2026, which is its first month of sale in the Indian market. This gives the seven-seater Tayron a 13% share of Volkswagen India’s utility vehicle dispatches (835 units) and a 4% share of passenger vehicles (2,639 units) last month.

Volkswagen India commenced local assembly operations for the Tayron R-line at its Chhatrapati Sambhajinagar (Aurangabad) plant on January 22, 2026, and opened bookings for its new flagship SUV on February 5. Two weeks later, on February 19, the company officially launched the premium three-row SUV at an introductory price of Rs 46.99 lakh (ex-showroom) and Rs 54.58 lakh (on-road Delhi) for the R Line trim.

Built on the VW Group’s MQB EVO platform, the Tayron is an XL-sized Tiguan with added length and targets the growing demand for spacious, easy to drive and fully laden SUVs in India. This SUV, which sports an urbane design both inside and out along with modern convenience and safety features, is powered by a 2.0-litre turbo-petrol engine which develops maximum power of 204hp and 320 Nm torque, and comes mated to a 7-speed dual clutch automatic gearbox.

This is the same engine that powers the Tayron’s closest rival, the Skoda Kodiaq which has sold 146 units in February and a total of 1,729 units (up 5% YoY) in the April 2025-February 2026 period, as per the latest SIAM wholesales data. The Jeep Meridian, the Tayron’s other rival, sold 124 units last month and 1,103 units in the past 11 months, down 4.50% YoY. The Tayron also competes with the Toyota Fortuner petrol variants.

In the first 11 months of FY2026, Volkswagen India has sold a total of 34,494 units, down 11% YoY (April 2024-February 2025: 38,692 units), which comprises 20,950 cars and sedans (up 7.51% YoY) and 13,544 UVs (down 29% YoY). The Virtus sedan (20,950 units) is currently the best-selling VW India model, followed by the Taigun compact SUV (12,004 units), Tiguan midsize SUV (1,149 units), Golf GTI (240 units) and the new Tayron (118 units).

ALSO READ: Skoda Slavia and Volkswagen Virtus sales cross 150,000 units

Hyundai Aura Sales Cross 300,000, GST 2.0 Drives 23% Growth in 11 Months of FY2026

Ajit Dalvi — Fri, 13 Mar 2026 14:11:50

The Hyundai Aura sedan has driven past the 300,000 cumulative wholesales milestone in the domestic market. With factory dispatches of 6,733 units in February 2026, up 40% YoY (February 2025: 4,797 units), India-market sales of this entry -level sedan from launch in January 2020 are 302,365 units. Hyundai Motor India, which is the country’s second largest passenger vehicle exporter, has also shipped 144,199 units to overseas markets till end-January 2026, which takes the Aura’s combined domestic and export total to 446,564 units.

As the data table below indicates, the Aura has already clocked its highest-ever wholesales in the current fiscal, with March 2026 numbers still to be factored in. In the first 11 months of FY2026, Hyundai India dispatched 61,403 Aura sedans to its dealers and showrooms. This constitutes strong 23% YoY growth (April 2024-February 2025: 49,871 units) and gives the Aura a 12% share of the 529,842 cars and SUVs the company has sold in the past 11 months.

The 61,403 units sold in the first 11 months of FY2026 give the Aura a 12% share of Hyundai Motor India’s PV sales. In FY2026 YTD, it Hyundai’s the second highest export model after the Verna sedan.

The sales accelerator for the Aura, as well as the overall passenger vehicle segment, has been GST 2.0 which enabled sizeable price reduction – Rs 55,780 for the base variant to Rs 71,367 for the to-end variant) from end-September 2025. The 11-variant Hyundai Aura’s current pricing starts at Rs 600,000 for the base Petrol E MT and rises to Rs 854,000 (ex-showroom) for the top CNG SX MT variant. Sales have risen quarter on quarter: Q1 FY2026 (14,862 units) was bettered by Q2 (15,359 units) and Q3 (16,471 units).

Q4 (with March sales to come in) bids fair to beat them all – 14,711 units were sold in January-February 2026 (14,711 units) with Hyundai registering highest-ever monthly sales of 7,978 units in January. One of the reasons for the high sales in January 2026 is the launch of the Aura Prime SD targeted at the fleet and taxi operator market.

AURA SALES RISE QUARTER ON QUARTER IN FY2026

The Aura, which essentially rivals the Maruti Suzuki Dzire, Honda Amaze and Tata Tigor, is powered by a 1.2-litre petrol engine that develops 83 hp, paired with a manual and an automatic gearbox, along with a 1.2-litre bi-fuel petrol with CNG engine that produces 69 hp, with only a manual gearbox. The Aura’s mileage ranges between 17kpl to 28.4 km/kg, depending on the chosen variant.

With 61,403 units in FY2026 YTD, the entry-level Aura sedan is currently the third best-selling model in Hyundai India’s 10-model portfolio after the Creta midsize SUV (184,083 units, 35% share) and the Venue compact SUV (106,590 units, 20% share) and 1,004 units ahead of the Exter compact SUV (60,399 units, 11% share). Hyundai’s other sedan, the sixth-gen Verna executive sedan has sold 8,526 units.

With this performance, the Aura is set to be India’s second best-selling sedan in FY2026 after the Maruti Dzire (207,906 units). Of the estimated 362,537 sedans (up 17% YoY) sold in the past 11 months of FY2026, the Dzire has a 57% share, followed by the Aura with 17 percent. Of the 12 sedans in the market, only four – Dzire, Aura, Volkswagen Virtus and Toyota Camry – have registered YoY growth, reflective of the growing demand for Hyundai Motor India’s entry-level sedan.

ALSO READ: Maruti Dzire set to be India’s best-selling car in FY2026
Skoda Slavia and VW Virtus Sales Cross 150,000 Units, Virtus First to Cross 75,000 Units

Tata Sierra Sells 14,000 Units in 2 Months Since Launch for 11% Share of Tata Motors Sales

Ajit Dalvi — Sat, 07 Mar 2026 12:39:23

Tata Motors, which is set to clock its highest-ever 12-month wholesales of 600,000 units in FY2026, has received a sales booster in the form of the recently launched Tata Sierra SUV. The modern avatar of the Sierra, which was launched on November 25, 2025 and received 70,000-plus order confirmations on the first day of bookings opening (December 16), has sold an estimated 14,394 units till end-February 2026. Deliveries to customers commenced from January 15.

The Sierra, with factory dispatches of 7,003 units in its first full month of sales, contributed 10% to Tata Motors’ highest-ever monthly wholesales of 70,222 units in January 2026, and did even better the next month. With an estimated 7,100 units in February, the Sierra accounted for an 11% share of

Tata Motors’ 62,329 PVs, up 34% YoY. The Sierra is currently the third best-selling SUV for the company after the Nexon and Punch compact SUVs and ahead of the Harrier and Safari midsize SUVs. Combined January-February sales (14,013 units) make for an 11% share of Tata Motors’ 132,551 PV sales in the past two months.

With 14,103 units in January-February 2026, the Tata Sierra accounts for an 11% share of Tata Motors’ wholesales of 132,551 units in the first two months of CY2026.

Sierra bookings have crossed 100,000 units and Tata Motors is adequately ramping up Sierra manufacturing capacity to cater to the surging demand for its latest model which has entered the hotly contested midsize SUV segment. The Sierra’s rivals include the Hyundai Creta, Maruti Grand Vitara and Victoris, Renault Duster, Toyota Hyryder, Kia Seltos, Honda Elevate, Volkswagen Taigun, Skoda Kushaq, MG Astor and Citroen Aircross X. Within Tata Motors’ SUV portfolio, the Sierra is positioned between the Curvv and the Harrier.

Pricing for the 24-variant Tata Sierra starts from Rs 11.49 lakh through to Rs 21.29 lakh (ex-showroom). In terms of powertrain, the Sierra debuts Tata’s all-new 1.5-litre direct injection turbo-petrol engine and also has the naturally aspirated 1.5-litre petrol and diesel engine options on offer with manual and automatic transmissions. Fuel efficiency depends on the engine and transmission options. As per ARAI, the petrol variants deliver 16-18kpl, while the diesel variants deliver better fuel efficiency of 18–20kpl.

The Tata Sierra, crowned Autocar India’s Car of the Year 2026 as well as the winner of the Best Design & Styling, Viewer’s Choice for Car of the Year and the Midsize SUV of the Year awards, had impressed the jury with its premium, well-appointed cabin, a wide spread of powertrain options and a design that turns heads. Clearly, this is now playing out in the real-world market where the value-conscious buyer is keen on the latest Tata SUV in town.

BIG ON THE DESIRABILITY QUOTIENT

The feature-laden Sierra is big on the desirability quotient, which is key in the SUV segment. It comes with dual-tone 19-inch alloy wheels, LED headlights with a full-width LED light bar on top, panoramic sunroof, flush-type door handles, a powered tailgate, segment-first three-screen setup: one for instrumentation and two for infotainment, Dolby Atmos, rear window sunshades, Boss mode functionality for the front passenger seat and more.

The safety features include six airbags as standard, Level 2 ADAS, traction control, front and rear disc brakes, 360-deg camera, ABS with EBD, front and rear parking sensors, electronic parking brake with auto hold, hill hold assist, and more.

The surging demand for the Tata Sierra means that Tata Motors has had to ramp up production. It is understood that the company plans to ramp up this midsize SUV’s monthly production to around 15,000 units over the next six months. At present, the Sierra has a waiting period of between three to four months, depending on the powertrain chosen.

Toyota Hyryder Outsells Innova Twice in 4 Months, Toyota Set for Record 360,000 Units in FY2026

Ajit Dalvi — Sat, 07 Mar 2026 12:26:45

The Toyota Urban Cruiser Hyryder has done the unthinkable again. The popular midsize SUV has once again outsold Toyota Kirloskar Motor’s best-selling model, the Innova MPV. Having first achieved this with its highest monthly wholesales of 11,555 units in October 2025, news which was broken by Autocar Professional, the Hyryder has repeated the act in February 2026 with sales of 9,359 units, up 117% YoY (February 2024: 4,314 units).

The Innova, which comprises the Hycross and Crysta models, sold 8,703 units last month, up 3% YoY (February 2025: 8,449 units). This makes the Hyryder the best-selling Toyota in February 2026, accounting for a 30% share of TKM’s total wholesales of 30,737 units, up 17% YoY. The two Innovas, with 8,703 units, had a 28% share last month. Combined Hyryder and Innova sales, at 18,062 units, comprised nearly 59% of the company’s total PV dispatches last month.

Though the Hyryder has outsold the Innova twice over the past 11 months, the MPV remains TKM’s best-selling model, accounting for 31% of the 331,778 passenger vehicles dispatched in FY2026 YTD.

However, when it comes to cumulative 11-month sales, the Innova continues to keep its midsize SUV sibling at bay. In the April 2025-February 2025 period, combined Innova Hycross and Crysta sales are 102,030 units, up 5% YoY on the 97,348 units sold a year ago. The Hycross, with an estimated 65% share, accounts for the bulk of the Innova sales this fiscal. As such, the Innova leads the Hyryder (89,684 units, up 63% YoY) by 12,346 units and will ensure it remains TKM’s No. 1 model in FY2026 when March 2026 numbers are counted.

February sales constitute the fourth instance of the Hyryder surpassing 9,000 units after August 2025 (9,100 units), October 2025 (11,555 units) and January 2026 (9,359 units). The midsize SUV’s cumulative 11-month total of 89,684 units is already its highest-ever fiscal year sales, having long driven past FY2025’s 60,388 units. End-January saw TKM introduce an official accessories ‘Tech Package’, which adds some features and safety kit for a Rs 29,499 premium, a strategic move which would have helped accelerate sales in February.

Despite growing competition, the Hyryder has made its mark in the midsize SUV market. The strong-hybrid variant has an EV-only mode that delivers stellar economy.

MAKING A MARK IN A COMPETITIVE MARKET

The petrol-only SUV is currently available in 13 variants — 8 petrol, 2 CNG, and 3 strong hybrid —

with pricing starting at Rs 10.99 lakh for the Petrol E Neodrive MT trim to the top-end Petrol V Hybrid AT trim (Rs 19.99 lakh ex-showroom). The engines on option are a 103hp petrol and a 116hp strong-hybrid petrol, with manual and automatic transmission choices. The petrol engine is also available with an AWD option with an automatic transmission. A CNG powertrain (89hp and 121.5 Nm) mated with only a manual transmission is also offered. The Toyota Hyryder’s mileage ranges between 19.2kpl and 27.97kpl.

With 331,778 PVs sold in the past 11 months, TKM has surpassed its previous fiscal best of 309,230 units in FY2025. Expect the company to wrap up FY2026 with a record score of 360,000 vehicles.

TOYOTA DRIVES TOWARDS RECORD SALES IN FY2026

Like Mahindra & Mahindra, Tata Motors and Kia India, Toyota Kirloskar Motors too will achieve its highest-ever fiscal year sales in FY2026. In fact, cumulative 11-month sales at 331,778 units are already a new high, having beaten the previous best – FY2025’s 309,230 units.

With GST 2.0-fuelled price reductions providing a tailwind (the Hyryder’s price dropped by up to Rs 65,000), TKM clocked its highest monthly sales in October 2025 (40,247 units) and has registered 30,000-plus sales for the next four months on the trot. Expect it to register a similar number in March 2026, which would take its FY2026 PV sales to 360,000 units and a doubling of sales in just three years.

Of the company’s 10-model portfolio, the Innova continues to have the largest model-wise share – 31% in FY2026 YTD. The Hyryder has become the second best-seller for TKM right since FY2024 which was its first full year of sale.

The Hyryder, which drove past the 200,000 sales milestone in December 2026, has clocked total sales of 221,827 units from launch in September 2022 till end-February 2026. While the first 100,000 units were sold in 26 months, the next 100,000 units took 15 months, reflecting the frenetic increase in customer demand as well as its growing share of TKM sales. Over 82,000 units have also been exported till date.

As in FY2025, when it was TKM’s best-selling Maruti-rebadged model, the Hyryder remains ahead of the three other badge-engineered models in India that sport the Toyota logo: the Maruti Baleno-based Glanza hatchback, the Fronx-based Urban Cruiser Taisor and the Ertiga-based Rumion MPV.

In FY2023, the Hyryder (22,839 units) accounted for 13% of TKM’s 173,245 units. This rose to 20% in FY2024 (48,916 units out of TKM’s 245,000 PVs and FY2025 (60,388 units out of TKM’s 309,230 PVs).

In FY2025, the two Innovas had sold 108,642 units, a score which will be surpassed in FY2026. The Hyryder has already hit a new high with 89,684 units in the past 11 months of FY2026 and a 27% share of TKM’s total PV dispatches of 331,778 units. It now needs to sell another 10,316 units in March to achieve the 100,000 milestone for the first time in a fiscal. Will it? Watch this space for the latest news on model-wise sales and analyses.