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India PV, CV Sales Rebound in FY2026 as SUVs Gain Further Ground: Rubix Report

Autocar Professional Bureau — Fri, 07 Aug 2026 12:59:40

India's passenger vehicle (PV) and commercial vehicle (CV) industry returned to growth in FY2026 following a slowdown in the previous year, with stronger domestic demand, higher exports and a continued shift towards utility vehicles, according to a new industry report by Rubix Data Sciences.

The report states that domestic passenger vehicle sales rose around 8% year-on-year in FY2026, while commercial vehicle sales increased about 12.5%. It attributes the recovery to the implementation of GST 2.0, which reduced the tax burden on vehicles, and lower RBI repo rates that improved vehicle financing conditions.

PV, CV Production and Sales Rise Over Five Years

India's passenger vehicle production increased from 3.06 million units in FY2021 to 5.54 million units in FY2026, while domestic sales grew from 2.71 million to 4.64 million units over the same period. Commercial vehicle production rose from 0.62 million to 1.17 million units, with sales increasing from 0.57 million to 1.08 million units.

SUVs Now Drive 65% of India's PV Sales

The report also highlights an ongoing shift in consumer preference towards utility vehicles. Their share of passenger vehicle sales climbed from 39% in FY2021 to 65% in FY2025, driven by growing demand for SUVs and crossovers. In the commercial vehicle segment, medium and heavy commercial vehicles expanded their share of sales from 28% to 39%, supported by demand from infrastructure projects, mining and long-haul freight transport.

India's Vehicle Exports Hit Record Highs, Led by Maruti Suzuki

On the export front, passenger vehicle exports reached a record 0.77 million units in FY2025, growing at a 17% CAGR. Saudi Arabia emerged as the largest destination for Indian truck exports, while the UAE led bus exports. Maruti Suzuki recorded exports of 4.47 lakh units during FY2025-26.

ADAS and EV Adoption Rising, but Challenges Remain

The report identifies policy support, including the Production Linked Incentive (PLI) scheme, expanding vehicle financing, growth in the pre-owned vehicle market and replacement demand under the Vehicle Scrappage Policy as key drivers for the sector. It also notes increasing adoption of advanced driver assistance systems (ADAS), with penetration rising from 6.2% in the first half of 2024 to 8.3% in the first half of 2025. Battery electric vehicle penetration in passenger vehicle registrations increased from 1% in 2022 to 4% in 2025, while overall four-wheeler EV penetration reached 5.35% in 2026.

However, the report cautions that the industry continues to face challenges including supply chain disruptions linked to West Asia, higher compliance costs from stricter emission norms, increasing engineering complexity and volatility in raw material prices.

Veteran Auto Journalist Pankaj Doval Joins JSW Motor as the Head of Government, Corporate Affairs

Ketan Thakkar — Wed, 05 Aug 2026 13:05:05

Veteran automotive journalist Pankaj Doval has moved to JSW Motor as senior vice president for corporate affairs and public policy, joining the new energy vehicle maker as it ramps up hiring ahead of its planned market entry and expansion.

Doval joins JSW Motor after nearly two decades with The Times of India, where he most recently served as senior editor covering the automotive, government policy, consumer electronics, telecommunications and information technology sectors.

Before joining the Times Group, Doval worked with leading media organisations, including The Financial Express, Press Trust of India and United News of India.

His appointment comes as JSW Motor accelerates work on establishing itself as a full-fledged automotive manufacturer focused on new energy vehicles.

The company is building a greenfield manufacturing facility and plans to establish a dedicated R&D centre as part of its long-term strategy. It aims to expand its engineering workforce to about 2,000 by 2029 to support vehicle development, product engineering and technology capabilities.

Recently, JSW Motor also secured an Rs 8,000 crore funding arrangement from SBI to support its new energy vehicle venture. The financing is expected to back investments in manufacturing, product development and related infrastructure as the company prepares to enter India's passenger vehicle market.

The company is part of the JSW Group's broader push into the automotive sector and is positioning itself as a domestic manufacturer of new energy vehicles. It is investing in manufacturing, engineering and product development capabilities as it prepares to launch its operations over the coming years.

JSW Motor has been steadily strengthening its leadership team as it prepares to enter the Indian passenger vehicle market later this year. Over the past few months, the company has hired senior executives across engineering, product development, manufacturing, design, purchasing, quality, sales and marketing, many of whom have previously worked at leading automakers, including Tata Motors, MG Motor and Hyundai.

Most recently, it appointed former Tata Motors executive Rajesh Khatri as vice president and head of strategy and planning to oversee corporate strategy, business planning and transformation initiatives. The leadership build-out has been led by Chief Executive Officer Ranjan Nayak, who has been tasked with steering the JSW Group's entry into the passenger vehicle market.

Audi India Plots Comeback With Q3, A5 and Q9

Autocar Professional Bureau — Wed, 05 Aug 2026 13:00:47

With an aim to double its market share over the medium term and make a strong comeback in India’s highly competitive luxury car market, Audi India is preparing a major product offensive. Three strategically important models will be launched within nine months, Audi India head Balbir Singh Dhillon told Autocar India.

The rollout will begin with the new-generation Q3 in the fourth quarter of 2026, followed by the A5 in the first half of 2027. The third model will be the Q9, a new flagship SUV positioned above the Q7.

“This is a resurgence, if we can use that word. Most of our product portfolio will become new over a period of time,” Dhillon said.

“For sure, we will have three new models, probably in even less time, maybe within the next nine months.”

The launches will begin a wider portfolio renewal aimed at bringing Audi’s Indian line-up closer to its global product cycle. The need for a reset is clear. Audi sold 4,510 cars in 2025, less than half its peak of 11,192 units in 2015, when it briefly led India’s luxury-car market. Its share has since fallen to around 8-9 per cent.

Audi wants to increase this to 18-20 per cent over the next three to five years, with Dhillon indicating that the target could be reached in three to four years. The company is not chasing market leadership immediately, but wants to rebuild scale sustainably with newer products and less dependence on discounting.

Q9 Local Assembly Under Study
The Q9 will be the most important addition to Audi’s range. It will give the company an entrant against the Mercedes-Benz GLS and BMW X7, a segment in which it has not competed so far.

“The Q9 will potentially be our first product in the D segment. We are working to make it in India at some point,” Dhillon said.

Audi is studying local assembly of the Q9 at the Skoda Auto Volkswagen India facility in Chhatrapati Sambhajinagar. It is also evaluating local assembly of the larger engine required for the Q9. Audi currently assembles the 2.0-litre EA888 petrol engine in India.

The Q9 is being developed with greater emphasis on cabin luxury and rear-seat comfort, an important requirement at the top end of the Indian market.

“More than the size, it is also about the luxury inside. Most cars are focused on the driver, but this will focus equally on the people sitting behind,” Dhillon said.

Multiple seating and equipment configurations are planned, allowing Audi to cater to buyers looking for captain seats, a bench or a three-row layout. The Q9 will also provide a natural upgrade for existing Q7 owners.

A5 to Replace A4
The A5 will take over from the A4, though Audi plans to position it a step above the outgoing sedan.

“I would not call the A5 a one-to-one replacement for the A4. It is probably an A4 Plus,” Dhillon said.

The petrol-powered A5 will offer more cabin and boot space, higher comfort and newer technology. The A4 will be phased out as Audi transitions to the new model.

The new Q3 will lead the rollout in late 2026. Audi has not disclosed specifications but says it will be priced broadly in line with competitors rather than using a low starting price to chase volumes.

Audi’s internal data shows that the highest trim accounts for around 55 per cent of its sales, compared with 35 per cent for the middle trim and only 10 per cent for the entry version. This has convinced the company that luxury buyers will pay for technology and equipment.

Local Assembly Remains Central
Audi expects locally assembled models to eventually contribute 90-95 per cent of its India sales. Imports will largely be restricted to performance, niche and other brand-building products.

The India-European Union free trade agreement could make more low-volume imports viable, but Dhillon said the expected limit on vehicles eligible for lower duties means local assembly will remain central.

“Make in India will be 95 per cent of the strategy. The balance could be five, seven or 10 per cent. That is where these models will play as brand shapers,” he said.

The renewal comes amid higher product costs and a stronger euro, which Dhillon described as a “double whammy”. Audi has already taken two price increases and expects further revisions, as manufacturers cannot absorb the entire currency impact.

Audi will continue to focus on petrol and electric vehicles, with no plan to reintroduce diesel. The Q6 e-tron is under evaluation, but a decision has not been taken. Plug-in hybrids will depend partly on their treatment under the India-EU FTA.

Network Overhaul
The product push is being supported by a revamp of Audi’s retail network. Almost all its dealerships are being renovated or have recently completed upgrades, with dealers moving to Audi’s latest global showroom format.

One in every three new Audis is bought by an existing owner, but the company now needs more conquest sales to deliver its market-share target. Its Audi Approved: plus pre-owned network, which has expanded from seven outlets in 2021 to 27, will also be used to bring used-car customers into the new-car fold.

Audi’s earlier rise in India was powered by diesel engines, the Q range and aggressive prices. Its comeback will now rest on fresh products, higher local assembly and a stronger retail experience. The Q3, A5 and Q9 will be the first test of that resurgence.

Dhoot Transmission May Seek Government Incentives if Future Products Qualify

Shahkar Abidi — Tue, 04 Aug 2026 15:19:26

Dhoot Transmission may apply for PLI-like government incentive schemes if the products it is developing qualify in the future, Naveen Kumar, Group CEO of the company, said during an interaction with Autocar Professional.

When asked whether the company plans to seek PLI-like incentive schemes, the top executive said, "It depends upon the type of product you want to develop. We are in the strategy right now. So, once we finalise something and if it falls under the scheme, we will definitely go for that."

The gap is not for want of standing. Dhoot held 44.64 percent of India's two-wheeler and three-wheeler wiring harness market by value in FY25, placing it among the top two suppliers in the country. Its share of electric two-wheeler and three-wheeler harnesses was above 70 percent. A programme built to promote electric mobility does nothing for the company that supplies most of the wiring in India's electric two-wheelers.

Much of the distance is structural. The wiring harness is a conventional component and accounts for most of Dhoot's revenue. The production-linked incentive scheme for automobiles and auto components is designed around battery-electric and hydrogen fuel cell vehicles, and its incentive period ends this financial year. The government has not said what will replace it.

The newer side of the business sits closer to what such schemes reward. Dhoot makes sensors, controllers, on-board chargers and charging ports, and assembles battery packs. It is also backwards integrated into cables, connection systems and insulation, which helps it meet the domestic value addition requirements these programmes are based on.

The company has grown from Rs 900 crore in FY19 to Rs 4,626 crore in FY26 without any of it.

India's Organised Used Car Market Seen Growing 7-9% in FY27: Crisil Ratings

Autocar Professional Bureau — Tue, 04 Aug 2026 14:06:13

India's organised used car market is expected to record volume growth of 7-9% in FY27, crossing 7 million units, with the used-to-new car sales ratio remaining above 1x, according to a Crisil Ratings report. The ratings agency said improving economies of scale and tighter cost controls are helping organised players strengthen profitability, even as the market continues to be dominated by unorganised transactions.

Crisil estimates that organised players account for around 26% of India's used car market this fiscal, up from 20-21% in FY22. However, the segment still represents only about a quarter of total used vehicle sales, leaving significant scope for further formalisation.

Why First-Time Buyers Are Driving Used Car Demand

The report attributes demand growth primarily to first-time buyers, who account for nearly two-thirds of used car purchases. According to Crisil, higher new vehicle prices and affordability considerations are encouraging consumers to opt for used cars, while digital platforms have improved transparency, inspection standards and access to financing.

Used Cars vs New Cars: How Big Is the Price Gap Now?

Despite the GST rationalisation implemented last fiscal, Crisil expects demand to remain resilient. It estimates that the price gap between new and used vehicles narrowed by only 4-6%, while used hatchbacks and sedans remain around 25% cheaper than comparable new models over a five-year ownership period. Utility vehicles continue to offer savings of about 20%, supporting their value proposition.

Used Car Age Falls to 4 Years as India's Resale Market Matures

On the supply side, the average age of used cars sold has declined to around four years from more than eight years a decade ago. Crisil attributes this to faster model refresh cycles, shorter ownership periods and sustained new vehicle sales, which are increasing the availability of relatively newer vehicles in the secondary market.

The report also noted that India's used-to-new car sales ratio remains below the 2.5-3.5 times seen in mature markets, indicating further headroom for growth. It said higher leasing penetration and stronger used vehicle financing ecosystems in developed markets continue to support faster ownership turnover and resale activity.

Marketplace vs Inventory-Led Platforms: Who's Winning in India's Used Car Boom

Within the organised market, asset-light marketplace platforms account for around 85% of transactions, while inventory-led players make up the remainder. Crisil said marketplace operators achieved profitability last fiscal, while inventory-led businesses are reducing losses through tighter cost management and a greater focus on sustainable growth. Inventory-led platforms raised around Rs 3,000 crore over the past two years, whereas marketplace players did not require external funding.

Looking ahead, the report identified the availability of quality vehicle inventory, residual value trends during the GST transition, increasing financing penetration and the pace at which organised players achieve profitability as key factors to monitor.

India To Remain Among Fastest-Growing Steel Markets In FY27 Despite Global Oversupply: Ind-Ra

Autocar Professional Bureau — Mon, 03 Aug 2026 11:49:02

India's Steel Demand Outlook for FY27

India's steel industry is expected to remain among the world's fastest-growing markets in FY27 despite global oversupply, geopolitical uncertainties and evolving trade barriers, according to India Ratings and Research (Ind-Ra).

The ratings agency has maintained a neutral outlook on the sector for FY27, citing strong domestic demand, supportive trade measures, stable raw material costs and disciplined capacity expansion as key factors underpinning profitability, cash flows and credit profiles.

Ind-Ra expects domestic steel demand to grow at a high single-digit rate in FY27, following growth of 7.4% in FY26 and 10.4% in FY25. The demand is expected to be driven by continued government infrastructure spending, healthy activity across construction, engineering and automotive sectors, and a gradual recovery in private capital expenditure.

The agency said planned capacity additions are likely to broadly match demand growth, helping maintain a balanced domestic supply-demand environment while supporting production volumes. It added that India's structural demand drivers are expected to keep it among the fastest-growing steel markets globally, even as demand weakens across several international markets.

Safeguard Duties Boost Steel Profitability

Ind-Ra also expects profitability and cash flows to improve during FY27, supported by safeguard duties, easing import pressures, relatively stable steel prices and favourable raw material costs. The agency noted that recent import-control measures, including safeguard duties, stricter BIS norms and anti-dumping actions, have reduced the impact of China-led global oversupply on domestic producers.

Steel imports declined 18% year-on-year in FY26, helping support domestic pricing, particularly in the flat steel segment. However, Ind-Ra cautioned that raw material price volatility, geopolitical developments and changing global trade policies remain key risks to earnings.

Credit Profile And Capex Outlook For Steel Firms

The agency expects credit metrics across the sector to remain stable despite elevated capital expenditure, as most large producers continue to expand capacity from relatively stronger balance sheets following sustained deleveraging and improved cash generation.

While free cash flow is likely to remain under pressure due to ongoing expansion projects and higher working capital requirements, Ind-Ra does not anticipate significant liquidity challenges for large and mid-sized steel companies. However, lower-rated and non-integrated producers could face pressure from weaker conversion margins and refinancing needs.

Raw Material Prices And Stainless Steel Growth

On raw materials, the agency expects both iron ore and premium coking coal prices to remain largely range-bound during FY27, supported by adequate supply and subdued global steel demand. Stable input costs are expected to provide greater earnings visibility for domestic producers.

Ind-Ra also projected mid-single-digit growth in India's stainless steel market in FY27, supported by rising adoption across railways, automobiles, household applications and industrial sectors. Stainless steel production rose 14% year-on-year to around 4.45 million tonnes in FY26, while exports increased 35% from a low base.

CBAM And Expert View On Steel Sector Risks

The agency added that decarbonisation and evolving environmental regulations, including the European Union's Carbon Border Adjustment Mechanism (CBAM), will become increasingly important for the industry's long-term competitiveness. Investments in lower-emission production technologies and improved carbon efficiency are expected to play a larger role in sustaining export opportunities over the coming years.

"India's steel demand outlook remains structurally positive, supported by infrastructure and manufacturing growth. The profitability of steel players is also supported by the government imposing safeguard duties. However, raw material price volatility, significant capacity expansion risks, lower import quota in the EU, and the impact of Carbon Border Adjustment Tax (CBAM) on EU exports are the key near- to medium-term monitorables," said Rohit Sadaka, Director – Large Corporates, India Ratings and Research.

India’s Monsoon Test Puts Vehicle Rust Protection in the Spotlight

Autocar Professional Bureau — Sat, 01 Aug 2026 20:09:15

Every monsoon, Indian cars go through a durability test that few buyers think about at the time of purchase. They wade through waterlogged roads, sit in open parking lots through days of rain, and face a mix of rainwater, mud, road debris, humidity and, in coastal regions, salt-laden air. This year’s monsoon has again made that stress visible. The immediate impact of such rain is usually seen through flooded streets, stalled vehicles, traffic disruption and repair bills. But there is a longer-term ownership question that rarely gets asked in Indian showrooms: how well is the car’s body protected against rust?

For years, Indian buyers have compared cars on mileage, airbags, service cost, resale value, infotainment screens and, more recently, safety ratings. But as car prices increase and ownership expectations stretch longer, body durability could become an equally important part of the purchase conversation. Rust is not just a cosmetic issue. It can affect appearance, resale value, repair costs and, in severe cases, the strength of body panels with consequences for passenger safety and protection of valuable electronic components.

This is where the conversation needs to move beyond aftermarket anti-rust coatings that are merely add-on barrier coatings and into how cars are built. According to the American Galvanisers Association, zinc-coated or galvanised steel is widely used globally because zinc not only provides barrier protection but also provides a sacrificially protective layer. Its technical note also says zinc can corrode 10 to 100 times slower than ferrous materials, depending on the environment, and that steel corrosion does not commence until the adjacent zinc coating is consumed.

With regard to automobiles, the International Zinc Association says zinc-coated steel helps create durable, long-lasting vehicles that enable high warranty periods against corrosion. It also says virtually all automakers have adopted galvanised steel for high-volume internal combustion, hybrid and electric vehicle models. Durable vehicles are also safer, as shown in the results of a study by Thatcham Research (U.K.) for the insurance company Folksam (Sweden) that showed there is a 20% higher chance of fatality in a crash involving a heavily rusted car than a rust-free car.

That matters in India because vehicles operate in difficult conditions. Monsoon moisture, waterlogging, coastal humidity, outdoor parking and road debris can all test the durability of the body shell over time. Also, for most of the year the many hours of bright Indian sunshine eventually compromise the organic paint layer, opening pathways to the underlying steel. If zinc is not present, the unprotected steel will rust. In such an environment, the question is not only whether a car has an anti-rust coating applied later, but whether corrosion protection is built into the vehicle from the start.

Warranty language is one visible sign of this shift. Volkswagen India’s ownership page lists a 2-year unlimited-kilometre new vehicle warranty, a 3-year paint warranty and a 6-year anti-perforation warranty. Renault India’s warranty document mentions an anticorrosion warranty of 3 years or 1,00,000 km, whichever is earlier, and says the warranty covers bodywork and sub-frame perforation from the interior due to steel-panel corrosion caused by manufacturing, material or protective-product application defects.

Premium brands communicate this even more prominently. Audi India mentions a 12-year unlimited-kilometre body warranty against corrosion/perforation. BMW India says vehicles sold after 2010 come with a 12-year bodywork warranty, regardless of mileage, along with a 3-year paintwork warranty. India Volvo Cars India says its corrosion protection warranty begins with the vehicle warranty and continues for 12 years.

But the story is not simply about which brand offers how many years of coverage. It is about whether rust protection becomes a mainstream ownership issue in India. A buyer may understand engine warranty or battery warranty, but very few ask whether the car’s body panels are galvanised, what corrosion protection is built into the body-in-white, or whether anti-perforation coverage exists at all.

This gap matters because standard vehicle warranty and corrosion protection are not the same thing. Hyundai Motor India says its warranty information is valid from January 2022 onwards; it lists models such as NIOS, Aura and i20/N Line at 3 years / 100,000 km, while Venue/New Venue, Verna, Creta, Alcazar, Tucson, Exter, IONIQ 5 and Creta Electric are listed at 3 years / unlimited km. Toyota India’s warranty page specifically excludes cosmetic or surface corrosion from stone chips or paint scratches, and also excludes surface corrosion problems due to environmental factors such as acid rain, salt, floods and torrential rain.

For carmakers, this creates both a challenge and an opportunity. The challenge is that Indian buyers are still more likely to pay attention to sunroofs, screens and connected-car features than to steel treatment or body corrosion protection. There is an opportunity for the manufacturer which communicates that durability is as essential to the car’s value as the many other promoted features – durability that can be related to reliability and trust in the vehicle brand.

Electric vehicles could make this question even more important. If consumers are expected to keep EVs longer, then the body shell, underbody and battery enclosure must also be able to withstand Indian weather and road conditions. Passenger safety in electric vehicles involves not only crash protection but also protection from the higher voltages used in the vehicles. Corrosion protection may therefore become part of the broader EV durability conversation, not just an issue for petrol and diesel cars.

The next evolution in Indian car buying may therefore not be only about features or safety ratings. Safety ratings made consumers ask how a car performs in a crash. Monsoons may now push them to ask how a car survives years of rain, humidity, slush and coastal air.

For a country where vehicles routinely face waterlogging, outdoor parking and intense seasonal weather, rust protection should no longer remain hidden in warranty booklets or service add-ons. The next practical showroom question may be simple: is this car built to resist corrosion from the start?

Frank E. Goodwin is the Director of Technology & Market Development at International Zinc Association. Views expressed are the author's personal.

The Cars India's EV Plan Leaves Behind

Anurag Chaturvedi — Thu, 23 Jul 2026 13:20:37

More than 30 crore vehicles run on India's roads, and the majority burn petrol or diesel. The country's plan to clean them up runs almost entirely through new sales, electric cars, electric scooters and tighter emission limits on the next model to leave the factory. It says far less about the vehicles already out there, which will keep running, and emitting, for a decade or more before anyone retires them.

That silence is where a small industry has set up. Retrofitment takes an existing petrol or diesel car and either rebuilds its drivetrain to add an electric motor and battery to make it cleaner, or strips out the engine altogether. The rules that govern it are still relatively new, and Folks Motor is among the few firms to have opened workshops for it.

The pressure that makes such a business viable is newer still. India's scrappage policy, in force since 2021, made automated fitness tests compulsory for both commercial and private vehicles as of June 2024. Older vehicles that fail them are meant to come off the road. The capital even went further. On July 1, 2025, Delhi launched a policy: diesel cars older than 10 years and petrol cars older than 15 were to be denied fuel in Delhi and five neighbouring districts. But the implementation ran into many technical issues.

Nevertheless, retrofitting is one of the few legal ways out. The conversions fall under an automotive standard, AIS-123. Both the kit and the workshop must be cleared by an agency such as the Automotive Research Association of India (ARAI) or the International Centre for Automotive Technology (ICAT). Under a draft policy floated in early 2026, Delhi offered ₹50,000 each to the first 1,000 cars converted from engine to electric. There is a catch the sales pitch skates over. Only stripping the engine out and going fully electric changes the fuel on the car's papers and earns a reprieve. A hybrid conversion leaves the engine in, and with it, the car's age.

Folks Motor was founded in 2016 by Nikhil Anand Khurana, who patented the idea in 2012 as a second-year engineering student and fitted an early version to a Maruti 800 soon after. His starting point was waste. A manual petrol car, he argues, loses much of its energy in the clutch and gearbox, and an electric motor can win some of it back. "Any fuel-efficient internal combustion engine is 20 to 30 per cent efficient," he says. "If you integrate an 80 per cent efficient electric powertrain into it, the overall efficiency gain is somewhere between 40 and 60 per cent." He has little time for the fuel-side answer the government has pushed hardest, the rising share of ethanol in petrol. "Flex fuel does not have a large effect on fuel efficiency," he says. "But a retrofit with a flex-fuel engine can cut emissions by 80 per cent."

Bolting on a Second Powertrain

The conversion adds a second, electric powertrain to the one the car already has. Folks brands the platform xEV and the system that runs it ReGeN Drive. It sells the conversion two ways, as a kit fitted to a customer's own car, or as a ready-converted car it certifies and resells. Into the engine bay go an electric motor and a generator. A lithium-ion battery pack sits in the boot, taking up about a quarter of it, along with a motor controller. A converter steps the high battery voltage down to the ordinary 12-volt system that runs the lights and the radio. The petrol engine itself is left in place.

The system works through the car's existing manual gearbox. In electric mode, it drives gear-free from rest to a claimed 60 to 80 kmph. Beyond that, the petrol engine drives through the normal gears, with the motor assisting, and the setup can run as a series, parallel or plug-in hybrid. What marks it out from an electric car is that the driver need never plug in. The battery refills itself as the car runs, drawing on the engine through the generator and recovering energy under braking. After 70 to 100 km of fuel driving, Folks says, it holds around 50 km of electric range, with an optional plug-in socket for those who want one.

For now, the kit fits only a set list of Maruti Suzuki models, all with 1,000cc to 1,500cc petrol engines and manual gearboxes. They run from the Swift and WagonR to the Ertiga and Ciaz. Each car, the company says, is first checked for the condition of its chassis, brakes, suspension, wiring, weight and age. Afterwards, it is subjected to insulation, high-voltage safety, waterproofing, thermal, and road tests. Folks puts the turnaround at one to three days, and the warranty at two years or 50,000 km.

An Integrator, Not a Manufacturer

Folks sells engineering as its advantage. But when asked which suppliers stand behind the kit, and where it buys its motors, the company would name none, calling the arrangements confidential. The motors, it said, come from a mix of domestic and international suppliers, and depending on the vehicle platform and application, components are sourced from suppliers specialising in electric motors, thermal management, wiring harnesses and other critical subsystems. Its own work is the systems layer, assessing the car, integrating the parts, writing the software that governs them and building the high-voltage safety electronics.

In plain terms, the pieces that actually move the car are bought in, and what Folks makes is the integration and the code. The split is common among retrofitters. It also means the durability of a Folks conversion depends heavily on suppliers.

The Economics, and Who They Suit

Price is one of the obstacles. Folks quotes ₹4 lakh to ₹6 lakh to convert a car, ₹1.5 lakh to ₹2 lakh for a three-wheeler or small commercial vehicle, and ₹8 lakh to ₹10 lakh for a bus. A used version of a BS6 hatchback usually costs less than the lower end of that car figure. The wider evidence is not kind to the private buyer. An analysis in Down To Earth, published by the Centre for Science and Environment, found that the 18 per cent tax on parts makes conversion "unviable in comparison to a new EV." Financing is scarce, it added, and the sums favour fleets over individual owners.

Khurana's defence rests on running cost, which he puts at roughly half, with fleet operators recovering the outlay in 18 to 24 months. Folks' own figures for that saving are not fixed. Its website offers buyers of the kit 70 per cent lower running costs and 60 per cent better mileage. A ready-converted car is advertised at 30 per cent savings and 40 per cent better mileage. The claim shifts with the product. Folks says it has converted more than 250 vehicles. It also claims its parts sit in some 2 lakh two-wheelers, close to 10 lakh three-wheelers and 3 to 4 lakh pieces of farm equipment, but those are components sold to other manufacturers, not cars it has electrified. On the order book, he is frank about the gap. "When the order book is 150 to 250 crore, I have only been able to fulfil 50 to 70 crore," he says, pointing to shortages of semiconductors and raw materials.

The Carmakers' Objection

The industry Folks wants to work alongside is, for now, mostly sceptical. Only a few global carmakers, Toyota among them, have shown any warmth to retrofitting. Swapping an engine for a battery and motor, experts say, changes a car's weight, software and handling in ways that need engineering built into the platform and cannot be added afterwards.

Khurana meets the safety charge directly. "If these platforms were really unsafe," he asks, "why did ARAI do all the work on them in the first place?" He reads the resistance as commercial rather than technical, since every car converted is a new one unsold. "Even now, when carmakers oppose retrofitment, we tell them this market will grow," he says. His patience with the argument at home, however, is thinning. "India will question everything," he says. "It has been questioning retrofitment even as the world adopts it." The company is now pushing into Europe and export markets.

None of this settles whether the conversions work as promised, because the evidence is not yet in. Autocar Professional has not driven a Folks-converted car or visited its plants at Sonipat and Manesar, and the figures here are the company's own. What a fair test would look for is clear enough, and it follows from the company's own claims. Whether the 50 km of electric range holds up after a few years with a battery charged by the engine rather than a plug. Whether a kit fitted in a workshop performs as well as one on a test bench. The problem Folks is chasing is real, and the country has not found a better answer for the fleet it already owns. On the evidence so far, the idea holds promise and is worth considering.

IIIT Hyderabad Develops AI-based Traffic Violation Detection System

Arunima Pal — Wed, 22 Jul 2026 12:05:19

The International Institute of Information Technology Hyderabad (IIIT-H) has developed an artificial intelligence (AI)-based traffic violation detection system that uses dashcams mounted on police patrol vehicles to identify traffic offences and assist in generating e-challans.

Called VIOLA, the system has been developed by IIIT-H's Applied AI Research Centre (INAI). It analyses video captured by dashcams to detect violations such as riding without a helmet, triple riding and wrong-side driving. The system also uses automatic number plate recognition (ANPR) to identify vehicles and forwards verified cases to the Telangana Police's existing e-challan system.

The project builds on earlier AI research by Prof. Ravi Kiran S. of IIIT-H's Centre for Visual Information Technology (CVIT), which focused on helmet detection. INAI expanded the research into a deployable traffic enforcement system.

Instead of relying solely on fixed CCTV cameras, the system uses four dashcams installed in police patrol vehicles. According to the institute, the mobile cameras expand enforcement coverage without requiring additional roadside infrastructure.

Police personnel continue to verify each violation before a challan is issued, with the AI system functioning as a decision-support tool rather than replacing human oversight.

According to IIIT-H, the system has helped generate several traffic challans during its pilot phase. The institute said around 96% of the violations flagged by the AI have been approved by police after verification.

The developers are working on adding capabilities such as speed detection and identifying road infrastructure issues, including potholes, damaged roads and missing lane markings, using the same dashcam footage.

The project was developed through IIIT-H's Applied AI Research Centre with support from iHub-Data, the institute's technology innovation hub. The team said it is in discussions with police departments outside Telangana to explore wider deployment of the system.

Weekly News Wrap: CAFE draft, Ather fund raise, JSW MG's new multi-powertrain platform

Kiran Murali — Sun, 19 Jul 2026 21:35:47

The Indian automotive industry witnessed several important developments this week, with updates on the policy front, investment announcements and expansion plans dominating the headlines. The government released the draft Corporate Average Fuel Economy (CAFE) III regulations for passenger vehicles, opening them for public consultation ahead of implementation from the 2027-28 financial year. The proposed norms retain the broad framework shared with the industry earlier while introducing technical refinements and implementation details aimed at improving fuel efficiency and reducing carbon emissions.

In the electric vehicle segment, Ather Energy approved a Rs 1,200 crore preferential fund raise. Existing investor Hero MotoCorp will increase its investment, while the government-backed India-Japan Fund will also participate, reflecting continued confidence in the Bengaluru-based EV maker.

JSW MG Motor India announced a Rs 1,400 crore investment this year to expand manufacturing capacity, increase localisation and launch new products. The company also unveiled its ADAPT architecture, India's first multi-new energy vehicle platform supporting electric, hybrid, plug-in hybrid and range-extender technologies.

Meanwhile, Amara Raja said India-made battery cells will initially cost 20-25% more than Chinese products, while confirming it is evaluating a dedicated passenger EV battery pack plant as it expands its battery business.

Power Ministry Releases Revised CAFE III DraftThe government has issued a revised draft of the CAFE III fuel-efficiency norms for passenger vehicles, to be rolled out from 2027-28 to 2031-32, for public consultation. While retaining the core framework proposed earlier in April, the draft adds technical refinements, implementation details and incentives aimed at reducing fuel consumption and carbon emissions.

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JSW MG Motor India Unveils MG AdaptJSW MG Motor has unveiled India's first multi-new energy vehicle platform, ADAPT, supporting EVs, hybrids, plug-in hybrids and range-extenders. The company will launch two SUVs on this architecture this financial year while boosting localisation and manufacturing capacity to support future growth.

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JSW MG Motor to Invest Rs 1,400 Crore This Year, Launch 4 VehiclesJSW MG Motor India will invest Rs 1,400 crore this year to expand manufacturing capacity, raise localisation, launch four vehicles and introduce its ADAPT multi-energy platform, supporting EVs and hybrids as it targets the next phase of growth in India's new-energy vehicle market.

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Tata Motors Seeks Changes to Proposed CAFE Credit Buying MechanismTata Motors has urged the government to revise the proposed CAFE framework, opposing plans to let the Bureau of Energy Efficiency sell compliance credits directly to automakers. It said credits should come only from verified overperformance to preserve market credibility and encourage genuine fuel-efficiency improvements.

CEAT to Invest ₹1,205 Crore to Expand Two-Wheeler Tyre Capacity by 66%CEAT will invest Rs 1,205 crore to expand two-wheeler tyre production by 66% by FY31, increasing capacity to 1.33 lakh tyres a day as strong demand and near-full utilisation drive its long-term manufacturing expansion plans.

Amara Raja Expects India-Made Battery Cells To Carry 20-25% Cost Premium Over ChinaAmara Raja expects India-made battery cells to initially cost 20-25% more than Chinese equivalents, citing China's scale and supply-chain advantages. The company expects the gap to narrow as domestic production expands, localisation improves, and investments strengthen India's battery manufacturing ecosystem.

Amara Raja Eyes Passenger EV Battery Pack PlantAmara Raja is evaluating a dedicated passenger EV battery pack plant after initiating discussions with multiple automakers. The company expects battery packs to remain its primary revenue driver as domestic cell production begins and expands under its Telangana gigafactory plans

From Banks to E-Mobility: Inside Sumit Mittal’s Multi-Crore Plan to Scale JSW GreentechSumit Mittal, a former infrastructure banker, leads JSW Greentech's ambitious entry into electric commercial vehicles through a massive greenfield facility in Maharashtra.

PV Sales Hit Record High in Q1 FY27, UVs Lead the ChargeIndia's passenger vehicle market recorded its strongest-ever first quarter, with domestic sales rising 25.9% year-on-year to 12.74 lakh units between April and June 2026, according to SIAM data

Harman India Expects Automotive Business to Double in Five YearsHarman expects its India automotive business to double over the next five years, driven by growing demand for connected vehicles, software-defined technologies and premium in-car experiences. The company is also strengthening India's role as its global innovation and engineering hub for future mobility solutions.

Hero MotoCorp Warns of Impact From Abrupt CAFE RolloutHero MotoCorp's annual report highlights a two-pronged strategy: expanding its premium motorcycle business through new products, Harley-Davidson models and retail growth, while warning that a sudden extension of CAFE norms to two-wheelers could raise compliance costs, disrupt product development and pressure profitability in India's price-sensitive market.

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Gabriel India to Invest ₹180 Crore in New Capacity, Automation in FY27Gabriel India plans to invest Rs 180 crore in FY27 to expand manufacturing, including a new Hosur plant, while raising sunroof localisation to over 60% and increasing exports to 10% of its portfolio as it broadens its customer base and strengthens its global presence.

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VinFast Charts FY27 Roadmap Around Localisation, 2W Debut and Network GrowthVinFast is making one of the biggest commitments by a global EV manufacturer in India, with a planned $2 billion investment, a manufacturing facility in Thoothukudi, Tamil Nadu, and an expanding electric vehicle portfolio.

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SEO Got Us Found, GEO Gets Us Recommended: Why the Next Frontier of Automotive Digital Marketing Is Winning Inside AI, Not Just Search

Autocar Professional Bureau — Sun, 19 Jul 2026 16:35:20

The Day Bots Stopped Being the Enemy
For years, automotive brands invested heavily in CAPTCHAs, cybersecurity tools, and digital safeguards designed to keep bots out of their websites. Today, a fascinating reversal is taking place. The bots have not only arrived, they are also increasingly becoming the intermediaries between brands and consumers.

The next generation of car buyers may never see many of the webpages, review articles, or comparison portals that marketers spend millions creating. Instead, they may simply ask:

"Which SUV is best for a family of four?"

"What's the safest compact SUV under ₹20 lakh?"

"Should I buy X or Y?"

And an AI engine will provide the answer. This shift represents one of the most profound changes in digital discovery since the birth of search engines.

From Dealerships to Search Engines to AI
The automotive purchase journey has continuously evolved. For decades, dealerships controlled information. Consumers visited multiple showrooms, gathered brochures, spoke to sales representatives, and gradually formed opinions.

The internet shifted power toward consumers. Digital platforms enabled buyers to research vehicles, compare specifications, watch reviews, and shortlist options long before entering a showroom. Consumers learned to ask Google questions, and SEO emerged as the discipline that helped brands appear when those questions were asked.

Today, another shift is underway. Consumers are no longer just searching for information. Increasingly, they are asking AI to interpret the information for them.

The Evolution of SEO Has a New Name: GEO. SEO Was About Visibility. GEO Is About Influence.
SEO helped brands answer one critical question:

"How and where do I appear when consumers search?"

GEO asks something far more consequential:

"How do I become the brand AI recommends?"

This distinction is critical. When users interact with traditional search engines, they receive a list of links and perform their own research. With generative AI, users increasingly receive a synthesised conclusion. The consumer is no longer evaluating ten links.

The AI is. And then it delivers a recommendation.

SEO Got Us Found. GEO Gets Us Recommended
That single shift changes everything. Success is no longer measured solely by rankings. It is measured by whether AI systems include your vehicle in the shortlist—or exclude it altogether.

Rather than viewing GEO as a replacement for SEO, brands should see it as its natural evolution.

SEO Optimizes for Discovery.

The objective is visibility.

Rank high on Google
Drive traffic
Increase clicks
Capture leads

GEO Optimizes for Recommendation.

The objective is inclusion in AI-generated responses.

Influence AI-generated conclusions
Strengthen credibility signals
Create authoritative digital narratives
Ensure key brand strengths are accurately represented

Simply put: GEO is the evolution of SEO.

The challenge is no longer getting people to visit your content. The challenge is optimising content so AI engines like ChatGPT, Google AI Overviews, Copilot, Gemini and voice assistants recommend your brand.

Why AI Recommendations Feel Different
Consider how consumers perceive a vehicle review. When a YouTube creator criticises a car, viewers instinctively recognise that the opinion may contain personal bias.

The audience knows it is one person's viewpoint. But when an AI platform reaches a similar conclusion, the psychology changes. Consumers often assume the answer reflects analysis of thousands of reviews, websites, specifications, owner discussions, and expert opinions.

Whether that assumption is entirely accurate is almost beside the point. The recommendation feels objective. And therefore, more persuasive.

A single opinion can now become part of what appears to be a broader digital consensus. For brands, that makes reputation management exponentially more important.

The Multi-Engine Challenge
The SEO era was dominated largely by Google. The GEO era is far more fragmented.

Today's consumers may ask the same question across:

ChatGPT
Google AI Overviews
Microsoft Copilot
Gemini
Claude
Meta AI
Voice Assistants

And receive different answers from each.

The reason is simple. Each engine interprets authority, relevance, context, and intent differently. A vehicle that performs exceptionally well in one AI ecosystem may receive limited visibility in another.

For marketers, this introduces a challenge that never existed at scale in traditional SEO:

Brands Are No Longer Optimising for One Search Engine.

They need to be optimising for Multiple AI Reasoning Engines.

The New Automotive Battleground: The Consideration Set
In automotive marketing, inclusion in the consideration set has always been critical.

Historically, consumers created that shortlist themselves. Today, AI increasingly creates it on its behalf.

This means OEMs face a new strategic reality: A vehicle that never appears in an AI-generated recommendation may never receive a dealership visit, test drive, or quote request.

The battle is increasingly being won—or lost—before the consumer enters the funnel.

What OEMs Need to Do Differently
1. Monitor AI Recommendations Continuously

Brands must understand and monitor:

Which vehicles appear in AI recommendations
Which competitors are consistently mentioned
Which attributes are owned by competing brands
Which weaknesses repeatedly emerge

Unlike websites, AI outputs evolve almost everyday.

Monitoring cannot be a once in a while exercise.

2. Build Authority Beyond Owned Media

Traditional SEO focused heavily on brand-owned or Brand Influenced assets. GEO places greater emphasis on external validation.

AI engines consume:

Reviews
Comparison articles
News coverage
Expert opinions
Community discussions
Forum conversations

The broader and more credible the digital footprint, the stronger the signals available to AI. Controlling narratives become even more relevant which means quicker interventions when needed.

3. Move Beyond a Single USP

Many OEMs attempt to own one defining attribute: Safety. Technology. Mileage. Performance.

The risk is obvious. If AI assigns that attribute more strongly to a competitor, the entire positioning strategy weakens. The strongest brands create multiple reasons to remain in consideration. If one narrative fails, another keeps the vehicle on the shortlist.

Dealerships Must Evolve Too
The impact extends beyond OEM digital teams. Dealerships increasingly face customers arriving with fully formed AI-generated opinions. The traditional sales process assumed customers were gathering information. Tomorrow's customers may arrive believing they already possess the answer. Sales teams must therefore become better at validating, challenging, and expanding AI-generated conclusions.

The conversation is no longer:

"Let me tell you about this vehicle."

It becomes:

"Let me show you why the recommendation you received may not tell the entire story."

The Next Frontier Is GEO
For twenty years, digital marketing revolved around winning in search. The next decade will revolve around winning inside AI, maybe even now. The brands that succeed will be those that understand a fundamental shift: Consumers are increasingly outsourcing research. Soon, they may outsource comparison. Eventually, many may outsource the recommendation itself. In that world, being searchable is no longer enough. Being recommended and not just visible becomes the new competitive advantage.

Conclusion: Winning Inside AI, Not Just Search
SEO transformed how brands became discoverable. GEO will transform how brands become preferred. For OEMs, the question is no longer whether consumers will use AI during their purchase journey.

They already are. The real question is: When an AI engine compares your vehicle against competitors, what conclusion does it reach?

Because the future of automotive marketing may no longer be determined by who ranks first on a search page. It may be determined by who gets recommended in a single AI-generated answer.

Balaji Pandiaraj is the Group Head of Customer Experience & Automotive & Mobility Development at Ipsos India & Sudeep Raj is a senior automotive expert at Ipsos India. Views expressed are the author's personal.

Automotive Deal Volumes Drop, Investment Remains Focused on EVs and Mobility Tech

Autocar Professional Bureau — Mon, 13 Jul 2026 12:25:37

India's automotive dealmaking slowed sharply in the second quarter of 2026 as investors adopted a more selective approach amid global economic uncertainty. However, capital continued to flow into mobility technology, electric vehicle (EV) businesses and software-led automotive companies.

According to Grant Thornton Bharat's latest Automotive Dealtracker, the quarter recorded 20 transactions valued at USD 717 million, marking the lowest quarterly deal volume since Q2 2023. While transaction numbers nearly halved from 35 deals in the previous quarter, deal values slipped only marginally by around 4 per cent as investments remained concentrated in a handful of large transactions.

The consultancy attributed the moderation to an increasingly uncertain operating environment shaped by evolving global trade policies, geopolitical tensions, supply-chain realignments and tighter capital allocation. At the same time, it noted that long-term structural themes such as electrification, connected mobility, localisation and software-defined vehicles continue to attract investment.

H1 Deal Activity Declines Despite Continued Investment
For the first half of 2026, the automotive sector recorded 55 transactions worth USD 1.46 billion, compared with 59 deals valued at nearly USD 2.8 billion during the second half of 2025.

Grant Thornton Bharat said the decline reflects a shift away from broad-based investment towards businesses with differentiated technologies, established operating performance and clearer paths to profitability and scale.

According to the report, investors are increasingly favouring companies operating at the intersection of mobility, software, electrification and advanced vehicle technologies rather than traditional automotive manufacturing businesses.

Private Equity Continues to Dominate
Private equity remained the biggest contributor to automotive funding during the quarter, accounting for 13 deals worth USD 341 million, representing roughly 72 per cent of total deal volumes and 71 per cent of overall deal value.

Although PE activity declined significantly from the previous quarter, the report noted that investment remained concentrated in a limited number of larger transactions, indicating a cautious deployment strategy.

Mobility-as-a-Service (MaaS) emerged as the largest recipient of capital during the quarter after Rapido raised USD 240 million from Prosus, WestBridge Capital and Accel. The transaction was the largest PE investment during Q2 and reflected continued investor interest in scalable mobility platforms with established market positions.

Beyond ride-hailing platforms, investors also directed capital towards companies supporting the broader EV ecosystem, including charging infrastructure, fleet electrification, battery technologies and energy management solutions.

Notable PE transactions during the quarter included investments in JBM Ecolife Mobility (USD 47 million), Exponent Energy (USD 21 million), Simple Energy (USD 13 million) and Astranova Mobility (USD 6 million).

The report observed that investors are increasingly shifting from early-stage experimentation towards businesses demonstrating commercial traction, operational execution and scalable business models.

M&A Focus Shifts Towards Automotive Software
Merger and acquisition activity remained relatively muted with five transactions valued at USD 138 million, although average deal size increased sharply owing to a single large acquisition.

The report said KPIT Technologies' acquisition of Israeli cybersecurity specialist Cymotive Technologies for USD 120 million accounted for approximately 87 per cent of total M&A value during the quarter.

Grant Thornton Bharat noted that the transaction reflects the industry's growing emphasis on automotive cybersecurity, software-defined vehicles and connected mobility capabilities as OEMs continue integrating software into future vehicle architectures.

Besides cybersecurity, acquisitions continued to target electric powertrain technologies, mobility solutions and specialised engineering capabilities rather than conventional manufacturing scale.

The consultancy also observed that cross-border acquisitions are increasingly being used to access intellectual property, specialised talent and advanced automotive technologies not readily available in domestic markets.

EVs, Mobility Platforms Continue to Attract Capital
Electric mobility continued to remain a key investment theme throughout the quarter.

While EV companies accounted for the largest share of PE transaction volumes, Mobility-as-a-Service generated the highest investment values. Investors also broadened their focus beyond vehicle manufacturers to companies involved in charging infrastructure, battery optimisation, fleet management and energy solutions.

Grant Thornton Bharat said valuation premiums remain concentrated among category leaders capable of demonstrating differentiated technology, strong execution and clear pathways to profitability.

The report added that funding conditions remain more disciplined than in previous years, with investors increasingly favouring businesses capable of delivering sustainable returns rather than pursuing aggressive expansion.

Public Markets See Revival
After a quiet first quarter, public market fundraising returned in Q2 through two qualified institutional placements.

Ather Energy raised USD 156 million, while Ola Electric secured USD 81 million, taking combined public fundraising during the quarter to USD 238 million.

Grant Thornton Bharat said the QIPs indicate continued investor appetite for established EV companies despite the broader moderation in deal activity.

Sector Outlook
Looking ahead, Grant Thornton Bharat expects investment activity to remain concentrated around long-term mobility themes, including electrification, software-defined vehicles, mobility platforms and advanced automotive technologies.

The consultancy said policy initiatives supporting manufacturing and localisation, along with the recently concluded India–UK Comprehensive Economic and Trade Agreement (CETA), could improve market access for Indian automotive component manufacturers and engineering companies while creating opportunities for deeper collaboration in manufacturing and research and development.

However, it cautioned that geopolitical developments, supply-chain resilience, evolving emission regulations and critical mineral security are expected to remain key factors shaping investment decisions over the coming quarters.

Renault Partners With IIT Kanpur for Vehicle Aerodynamics, Wind-Noise Testing

Autocar Professional Bureau — Fri, 10 Jul 2026 13:40:41

Renault India has signed a strategic partnership with the Indian Institute of Technology (IIT) Kanpur to strengthen its vehicle research and development capabilities in the country through advanced aerodynamic and wind-noise testing.

As part of the collaboration, Renault India will use IIT Kanpur's National Wind Tunnel Facility (NWTF) to evaluate the aerodynamic characteristics and wind-noise performance of its passenger vehicles. The company said the partnership is intended to support product development by validating vehicles against predefined engineering targets.

"This partnership marks an important step in strengthening Renault's engineering capabilities in India. By collaborating with IIT Kanpur and leveraging the National Wind Tunnel Facility, we are bringing together world-class research infrastructure and Renault's global engineering expertise to develop future-ready vehicles," said Dr Vikraman V, Chief of Engineering, Renault Group India.

The National Wind Tunnel Facility features a continuous closed-jet test section measuring 3.0 m x 2.25 m and supports aerodynamic testing at speeds ranging from 80 km/h to 280 km/h. According to IIT Kanpur, the facility is being upgraded to accommodate testing at speeds exceeding 400 km/h.

The collaboration will operate under a Memorandum of Understanding (MoU) that outlines the framework for commercial engagement, intellectual property management and confidentiality between the two organisations.

India's Shift to E20 Was More Than Two Decades in the Making: Centre

Darshan Nakhwa — Fri, 10 Jul 2026 13:31:15

India’s ethanol-blending programme began with a pilot project in 2001 and was not introduced only in the past few years, the Ministry of Petroleum and Natural Gas has said while rejecting claims that the country rushed its transition to E20 petrol.

The pilot programme was formally announced in 2004. Petrol containing 5% ethanol, or E5, was subsequently introduced across several states by 2006, the ministry said in a question-and-answer note issued on July 10.

The policy framework was later notified in the Gazette of India in January 2013. However, ethanol blending remained at around 1.5% until 2014, mainly because India did not have enough production capacity, the ministry said.

The government was responding to criticism that India advanced its ethanol-blending targets too quickly compared with countries such as Brazil, which took several decades to build a large ethanol fuel market.

The Centre had initially set 2030 as the target for achieving 20% ethanol blending in petrol. However, the Cabinet Committee on Economic Affairs advanced the target to 2025, bringing the rollout forward by five years. The ministry said the faster transition was supported by higher ethanol production capacity, a wider feedstock base and investment in distilleries, storage and supply infrastructure.

According to the ministry, India’s programme developed over more than two decades through pilot projects, policy changes, the expansion of feedstocks, investment in distilleries, and consultation with vehicle manufacturers and other stakeholders.

Limited Capacity Slowed Early Progress
India initially depended almost entirely on sugarcane for ethanol production. Annual capacity stood at around 400 crore litres, which was not enough to support higher blending levels across the country, the ministry said.

The government changed its approach after introducing the National Policy on Biofuels in May 2018. The policy expanded the range of raw materials that could be used to make ethanol and encouraged investment in additional production capacity.

Several ministries worked together to expand feedstocks, improve logistics, build infrastructure, and provide greater certainty to ethanol producers, according to the release. These included the petroleum, food distribution, road transport, and heavy industries ministries.

A major step came in 2021 when Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation invited proposals for dedicated ethanol plants in ethanol-deficit regions.

The projects were supported by long-term purchase agreements from oil marketing companies and financing arrangements with public-sector banks. The ministry said these measures reduced investment risk and helped attract fresh capacity.

Supply Expansion Supported Higher Target
The NITI Aayog roadmap for ethanol blending was also published in June 2021, following consultations with vehicle manufacturers, oil companies, agricultural experts, and other stakeholders.

At that time, India required about 500-600 crore litres of ethanol annually to achieve 10% blending. As investment increased, the country’s potential production capacity was expected to rise to nearly 1,200 crore litres, the ministry said.

The Centre said the move towards 20% blending became feasible only after the supply side improved.

India reached 10% average ethanol blending in the 2021-22 ethanol supply year. This rose to 12.1% in 2022-23, 14.6% in 2023-24, and 19.2% in 2024-25. Average blending reached 20% between November 2025 and June 2026, according to the ministry.

The progression shows that the blending level increased in stages rather than through a single nationwide shift, it added.

Centre Cites Global Learning
The ministry said Brazil took longer because it was developing one of the world’s first large-scale ethanol ecosystems. India, by comparison, could learn from technologies, policies, and operating experience already available in international markets.

The Centre said better coordination between ministries, a clearer investment framework, and the use of proven technology allowed India to shorten the implementation period.

It maintained that the faster timeline did not come at the cost of technical evaluation or vehicle safety. Automobile manufacturers, testing agencies, oil companies, and other stakeholders were consulted before the rollout.

Govt Rules Out Nationwide Choice of Pure Petrol, E10 and E20

Darshan Nakhwa — Fri, 10 Jul 2026 13:05:05

The Central government has rejected the idea of offering pure petrol, E10 and E20 simultaneously across India, saying separate fuel grades would raise distribution costs and create a major logistical challenge.

The Ministry of Petroleum and Natural Gas said India’s fuel network covers more than one lakh retail outlets. It is supported by refineries, terminals, depots, pipelines and storage facilities.

Maintaining three petrol grades across this network would require separate storage and inventory management at several points in the supply chain, the ministry said in a question-and-answer note issued on July 10. It would also increase handling costs and reduce operational efficiency.

The government’s response makes its policy position clear, although the document does not announce a fresh legal ban on the sale of pure petrol or E10.

The ministry was responding to concerns that consumers, particularly owners of older vehicles, should be allowed to choose between pure petrol, petrol blended with 10% ethanol and petrol containing 20% ethanol.

Premium Petrol Comparison Rejected
The Centre also rejected comparisons with premium petrol, which is offered alongside regular fuel at some outlets.

Premium petrol is a niche product sold in smaller quantities and generally contains performance-enhancing additives, the ministry said. It does not require a separate nationwide base-fuel supply chain.

Offering pure petrol, E10 and E20 across the country would be very different because oil companies would have to maintain parallel fuel streams through refineries, depots, pipelines and retail outlets, it added.

The government said consumer interest must be considered alongside the cost and practicality of running the country’s fuel distribution system.

Investments in Ethanol Capacity
The ministry also pointed to the investments made in ethanol production and related infrastructure over the past few years.

Dedicated ethanol plants, distilleries, storage facilities and logistics networks have been developed to meet the country’s blending targets. The release said public-sector banks had financed substantial investments in this ecosystem.

Moving back to E10 after creating this capacity could leave ethanol plants with surplus production and affect investments made by farmers, cooperatives, companies, lenders and public-sector entities, the ministry said.

The government argued that fuel policy must balance consumer choice with energy security, environmental goals, farmer incomes and the use of public and private investment.

India recorded average ethanol blending of 20% between November 2025 and June 2026, compared with 19.2% in the previous ethanol supply year.

Concerns Over Older Vehicles
The question of consumer choice has gained importance because many older vehicles were originally certified or labelled for use with E10.

The ministry said vehicle manufacturers, component suppliers, testing agencies and research institutions had been consulted before E20 was introduced. The assessment covered material compatibility, engine calibration, fuel systems, durability, emissions and fuel economy.

It also said vehicle manufacturers continue to honour warranties and cited service data from Maruti Suzuki and Hero MotoCorp to argue that E20 had not caused widespread corrosion or abnormal component wear in older vehicles.

The ministry acknowledged that some vehicles could record a 3–5% reduction in fuel economy when operated on E20. However, it maintained that this must be weighed against the fuel’s higher octane rating and the wider benefits of lower crude oil imports and reduced emissions.

These are claims made by the Petroleum Ministry in support of the E20 programme. The release does not provide an independent comparison of the additional cost of maintaining multiple fuel grades against the benefit of allowing consumers to select fuel based on their vehicle’s original certification.

The Centre’s position, however, indicates that nationwide parallel sales of pure petrol, E10 and E20 are not under consideration. The policy will remain focused on E20 as the standard petrol blend.

E20 Is Costlier to Produce Than Pure Petrol at $70 Crude: Oil Ministry

Darshan Nakhwa — Fri, 10 Jul 2026 12:51:53

E20 petrol can be costlier to produce than pure petrol when international crude oil trades at around $70 a barrel, the Ministry of Petroleum and Natural Gas has said, challenging the assumption that blending ethanol should automatically make fuel cheaper.

The government currently procures maize-based ethanol at around ₹71.86 a litre. This price excludes goods and services tax, transportation, storage and handling charges, the ministry said in a question-and-answer note on India’s ethanol-blending programme.

“Therefore, if international crude oil is trading at around US$70 per barrel, E20 is actually costlier to produce than pure petrol,” the ministry said.

E20 contains 20% ethanol and 80% petrol. Since the ethanol component is bought at a fixed remunerative price intended to support domestic producers and farmers, its cost does not move directly with international crude prices.

The economy would change if crude oil prices rose sharply, the ministry said. At crude prices of around $120-130 a barrel, ethanol would become cheaper than petrol produced from imported oil.

The government said the ethanol-blending programme should therefore not be viewed only as a way to reduce fuel prices on a particular day. Its wider purpose is to reduce India’s dependence on imported crude and provide some protection against global oil-price volatility.

“Ethanol blending is therefore not about making petrol cheaper on a particular day. It is about reducing India’s exposure to imported crude oil,” the ministry said.

Domestic Component Provides Price Buffer
The ministry argued that nearly one-fifth of petrol sold in India now comes from domestically produced ethanol. Unlike crude oil, the procurement price of this portion does not change daily because of geopolitical tensions, shipping disruptions or movements in global benchmark prices.

Average ethanol blending reached 20% during November 2025 to June 2026, up from 19.2% in the previous ethanol supply year, according to the release.

The procurement price varies depending on the feedstock used to produce ethanol. The government’s release listed provisional FY26 prices of ₹57.97 a litre for ethanol produced from C-heavy molasses, ₹60.73 a litre for B-heavy molasses and ₹71.86 a litre for maize-based ethanol, among other sources.

The actual cost of E20 at the refinery or fuel outlet would also depend on the mix of ethanol feedstocks, taxes, transportation, storage, dealer margins and the cost of the petrol component.

The release did not provide a complete city-wise comparison of E20 production costs and retail petrol prices.

Energy Security Over Immediate Savings
The ministry said the programme had reduced the country’s foreign-exchange outflow and supported farm incomes.

Since the 2014-15 ethanol supply year, the blending programme has saved more than ₹1.97 lakh crore in foreign exchange and replaced nearly 316 lakh tonnes of crude oil, according to government estimates.

It has also transferred more than ₹1.66 lakh crore to farmers through ethanol procurement, the ministry said.

The government’s position is that these wider benefits—lower crude imports, greater energy security, support for farmers and reduced exposure to volatile global oil prices—should be considered alongside the cost of producing E20.

The ministry’s statement is a government assessment of the programme. It does not establish that E20 is always more expensive than pure petrol, as the comparison changes with crude prices, ethanol feedstocks, taxes and logistics costs.

India-UK FTA: DGFT Imposes Use-It-or-Lose-It Rule on Automotive Import Quotas

Mukul Yudhveer Singh — Fri, 10 Jul 2026 11:13:17

The Directorate General of Foreign Trade (DGFT) has operationalised the automotive import provisions of the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA), paving the way for concessional-duty imports of up to 20,000 UK-built internal combustion engine passenger cars in the first year under the tariff rate quota (TRQ) mechanism. The notification also lays down the procedures governing quota allocation, eligibility, customs documentation and utilisation for eligible vehicle imports from the United Kingdom.

The first-year quota covers 20,000 internal combustion engine passenger cars, including 10,000 vehicles above 3,000 cc petrol or 2,500 cc diesel, 5,000 vehicles between 1,500 cc and 3,000 cc petrol (or up to 2,500 cc diesel), and 5,000 vehicles up to 1,500 cc. Separate tariff rate quota schedules have also been notified for ICE goods vehicles, while a dedicated TRQ regime for electric, hybrid and hydrogen-powered passenger cars will come into effect from the sixth year of the agreement. The notification also prescribes phased annual quota schedules and corresponding concessional customs duty rates over the duration of the pact.

The framework is expected to provide a preferential import route for eligible UK-built premium and luxury vehicles while retaining quantitative limits through annual quotas rather than permitting unrestricted concessional-duty imports. Manufacturers such as Jaguar Land Rover, MINI, Bentley, Rolls-Royce, Aston Martin, McLaren and Lotus could be among those eligible to benefit, subject to meeting the origin and eligibility conditions prescribed under the notification.

The public notice establishes the operational framework for administering tariff rate quotas covering completely built-up (CBU) passenger cars and goods vehicles imported from the United Kingdom. It specifies eligibility criteria, documentation requirements, quota allocation methodology, customs procedures and utilisation conditions that importers must comply with to avail themselves of the concessional tariff benefits under the agreement.

Only original equipment manufacturers (OEMs), or dealers and channel partners authorised by UK vehicle manufacturers, will be eligible to apply for TRQ allocations. Applicants must furnish a pre-purchase agreement issued by the OEM specifying the quantity of vehicles proposed to be imported, while every consignment must be supported by a valid UK Certificate of Origin. The eligibility conditions effectively prevent unauthorised traders from independently accessing the concessional-duty quota. Importers have also been asked to endeavour to pass on the benefit of the concessional customs duty to the final buyer or consumer.

Where the total quantity sought by eligible applicants remains within the annual quota, applicants will receive the quantity requested. However, if applications exceed the notified limit, allocations will be made on a pro-rata basis in proportion to the quantities specified in the respective pre-purchase agreements. DGFT will electronically issue TRQ certificates and monitor cumulative utilisation, with authorisations ceasing once the annual quota has been exhausted.

The notification also introduces a mechanism aimed at improving utilisation of the quota. Importers that fail to utilise a significant portion of their allotted quota during a TRQ year could see such under-utilisation taken into account while determining allocations for the following year. The DGFT has also retained the flexibility to review the allocation methodology after two years based on utilisation trends, signalling that the framework may be refined to improve the effective utilisation of the concessional import quotas.

TRQ authorisations will remain valid for 12 months from the date of issue or until the end of the relevant calendar year, whichever is earlier. The notification, which takes immediate effect, completes the procedural framework required to operationalise the automotive market access commitments under the India-UK CETA, enabling eligible UK-built vehicles to be imported into India under concessional tariff quotas, subject to the prescribed conditions.

India’s Battery Manufacturing Push Gains Momentum as Energy Storage Demand Soars

Autocar Professional Bureau — Wed, 08 Jul 2026 14:13:23

India’s battery manufacturing ecosystem is set for significant expansion as demand for energy storage systems gathers pace, a development that could also strengthen the country’s electric vehicle supply chain. A report released by the India Energy Storage Alliance (IESA) and Customised Energy Solutions (CES) projects that India’s energy storage requirement will rise to 888 GWh by 2035-36 from around 1 GWh today, underscoring the scale of investment expected across the battery value chain.

The report, titled India BESS Market Review, was released at the opening of India Energy Storage Week (IESW) 2026 in New Delhi. While it focuses on battery energy storage systems (BESS) for the power sector, the expansion of domestic battery manufacturing capacity is also expected to support India’s broader battery ecosystem, which serves both stationary storage and electric mobility applications.

According to the report, India’s installed BESS capacity increased more than elevenfold in just six months, rising from 0.78 GWh in December 2025 to 8.7 GWh in the first half of 2026. The country is also expected to surpass 10 GWh of installed BESS capacity by the end of the year.

The report noted that 47 GWh of energy storage tenders were floated during H1 2026, taking India’s overall ESS tender pipeline to 260 GWh. It also said that 18 BESS projects have been commissioned so far, with merchant projects accounting for around 70% of capacity additions during the first half of the year.

India’s manufacturing ambitions are also gathering pace. Current lithium-ion battery cell manufacturing capacity stands at around 2 GWh, while announced plans target approximately 110 GWh of cell manufacturing capacity by 2030. Cell, pack, and container manufacturing capacity is projected to reach between 180 GWh and 200 GWh over the same period, reflecting growing investments across the domestic battery ecosystem.

Debmalya Sen, President of IESA, said the projected 888 GWh energy storage requirement signals a new phase in India’s clean energy transition, with storage expected to play a central role in improving grid reliability and supporting renewable energy deployment.

Industry leaders participating at the event also highlighted the growing importance of energy storage. Nitin Bhatia, CEO of Radiance Renewables, said the combination of solar power and battery energy storage would be critical to future growth, while Venugopal Rao Maddisetty, Chairman and Managing Director of Pace Digitek, described energy storage as essential infrastructure for enabling renewable energy and enhancing grid resilience.

IESW 2026, organised by IESA at Yashobhoomi in New Delhi, has brought together more than 200 exhibitors, over 10,000 industry participants, and delegates from 15 countries to discuss policy, technology, and investment opportunities across the clean energy and battery sectors.

The report said that despite global supply chain volatility and higher battery prices, India’s battery energy storage market has continued to expand rapidly, supported by policy initiatives, sustained tender activity, and increasing domestic manufacturing investments.

Grain-Based Ethanol Accounts for 67% of India's Supplies in ESY 2025-26 Till June

Autocar Professional Bureau — Wed, 08 Jul 2026 14:02:22

India's ethanol blending programme continued to rely primarily on grain-based feedstocks during the Ethanol Supply Year (ESY) 2025-26, with grain accounting for nearly 67 per cent of total ethanol supplied till June, according to the latest data released by the All India Distillers' Association (AIDA).

As of June 2026, cumulative ethanol supplies stood at 717 crore litres against contracted volumes of 1,048 crore litres, translating to a supply achievement of 68 per cent for the ongoing supply year. Grain-based ethanol contributed 480 crore litres, while sugarcane-based feedstocks accounted for 238 crore litres.

Among individual feedstocks, maize remained the largest contributor with 258 crore litres of ethanol supplied. Ethanol produced from surplus Food Corporation of India (FCI) grains contributed 177 crore litres, followed by sugarcane juice at 144 crore litres, B-heavy molasses at 82 crore litres and damaged food grains at 45 crore litres. According to AIDA, the wider mix of feedstocks has reduced dependence on a single crop and supported year-round ethanol availability.

The association said the current supply pattern reflects increasing diversification in India's ethanol production ecosystem as the country continues its ethanol blending programme.

"The latest ethanol supply data demonstrates that India's biofuel programme has evolved into a robust and resilient ecosystem driven by diversified feedstocks. While maize continues to be the largest contributor, the increasing participation of surplus food grains and sugarcane-based feedstocks reflects the strength of a balanced supply chain," said Vijendra Singh, President, All India Distillers' Association (AIDA).

According to AIDA, India's ethanol industry has expanded production capacity across both grain and sugar sectors in recent years, supported by government policies and investments. The association added that future policy support for higher ethanol blends, flex-fuel vehicles and new ethanol applications would be important to utilise the industry's expanding production capacity.

ISMA Calls for Fact-Based Debate on E20 Amid Rising Misinformation

Autocar Professional Bureau — Wed, 08 Jul 2026 13:44:53

The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) has called for a fact-based public discourse on ethanol-blended petrol, stating that misinformation surrounding E20 fuel risks undermining India's ethanol blending programme and its broader energy security objectives.

The industry body said recent claims circulating on social media—including allegations that E20 petrol damages vehicles, attracts insects, invalidates insurance policies or involves direct mixing of sugarcane juice with petrol—are factually incorrect.

According to ISMA, the Ministry of Petroleum and Natural Gas has clarified that India's Ethanol Blending Programme has undergone scientific validation, extensive testing and continuous monitoring in consultation with oil marketing companies, automobile manufacturers, fuel testing agencies and other stakeholders. The ministry has also stated that no incidents of engine failure or vehicle breakdown have been linked to E20 petrol since its rollout.

The association also noted that fuel-grade ethanol is produced through industrial processes such as fermentation and distillation and is sourced from feedstocks including sugarcane juice, molasses, broken rice and maize before meeting prescribed fuel-quality standards for blending.

Referring to concerns over vehicle compatibility and fuel efficiency, ISMA said automobile manufacturers, oil companies, the Society of Indian Automobile Manufacturers (SIAM), Federation of Indian Petroleum Industry (FIPI), oil marketing companies (OMCs) and the Automotive Research Association of India (ARAI) have previously maintained that reports of vehicle damage are not supported by evidence. It added that any variation in fuel economy is marginal while ethanol blending contributes to lower emissions and reduced crude oil imports.

According to official estimates cited by ISMA, ethanol blending has helped India save more than ₹1.4 lakh crore in foreign exchange through lower crude oil imports while creating additional demand for agricultural feedstocks and supporting farmer incomes. The association also pointed out that ethanol blending is already widely adopted in countries including the United States, Brazil and Japan, with Brazil using E27 as its standard fuel blend.