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India's Passenger Vehicle Sales Set to Hit Record 5.9 Million Units in FY2027

Angitha Suresh — Wed, 13 May 2026 11:55:50

India's passenger vehicle industry is on course to record its highest-ever annual sales, with volumes projected to grow 5–7% to approximately 5.9 million units in fiscal 2027, according to a Crisil Ratings analysis published on May 13, 2026. The projection, based on an analysis of manufacturers accounting for roughly 94% of wholesale volumes, marks a continuation of the recovery momentum that gathered pace in the second half of the previous fiscal year. Domestic sales account for approximately 86% of total output, with exports making up the remainder.

The growth is primarily underpinned by a reduction in the goods and services tax implemented in September 2025, which lowered prices by 11–13% on sub-4 metre vehicles — a segment that constitutes just over half of total industry volumes. That price correction had a measurable effect on demand, propelling domestic sales by 16.7% in the second half of fiscal 2026 and reversing a 1.4% decline recorded in the first half. Full-year domestic volume growth for fiscal 2026 came in at 7.9%. Crisil expects the GST tailwind to persist into fiscal 2027, though its intensity is projected to moderate gradually as the initial price-shock effect dissipates.

Utility vehicles remain the dominant growth engine within the industry. Their share of the overall volume mix climbed to 67% in fiscal 2026, and Crisil projects this will rise further to 69% in fiscal 2027. The segment is expected to grow at 7–9%, driven by a structural shift in consumer preference toward larger, feature-rich vehicles and a widening range of models across price points. This trend has been building for several years and shows no signs of reversal, with manufacturers across the spectrum — from mass-market to premium — continuing to expand their utility vehicle portfolios.

The small car segment, which accounts for roughly 30% of domestic volume, is expected to grow at a more moderate 2–4%. Crisil attributes this to improved affordability following the GST reduction and a revival of interest from first-time buyers, aided by a stable interest rate environment. However, gains in this segment are expected to be gradual, as the structural shift in buyer preference toward utility vehicles continues to weigh on small car volumes relative to the overall market.

While the domestic demand outlook remains broadly constructive, the West Asia conflict introduces meaningful headwinds on multiple fronts. On the export side, volumes grew at a strong 17.5% in fiscal 2026 to reach 0.9 million units. However, with West Asia accounting for approximately 25% of total export volume, ongoing hostilities are expected to weigh on demand in the region while simultaneously driving up transportation costs. As a result, export growth is forecast to slow sharply to 6–8% in fiscal 2027.

The conflict has also pushed up global commodity prices, with costs rising across steel, aluminium, copper, and platinum group metals — all of which are critical inputs for vehicle manufacturing. Elevated shipping costs have compounded the pressure. Manufacturers have responded with calibrated price increases of 1–3% so far this fiscal, choosing to absorb a portion of the cost increase rather than pass it on entirely, in order to protect volume momentum. Crisil notes that with prices on sub-4 metre vehicles still well below pre-GST reform levels, the demand impact of these hikes is expected to remain limited — provided fuel prices do not rise significantly. Conventional fuel-based vehicles, running on petrol and diesel, continue to dominate the domestic market, making fuel price movements a key demand variable.

Beyond near-term cost pressures, the industry is entering a period of structural regulatory change that will require sustained investment over the coming years. The Corporate Average Fuel Efficiency, or CAFE-III, norms are scheduled to take effect from April 1, 2027 and will remain in force through fiscal 2032. These standards mandate progressively tighter fuel efficiency thresholds across a manufacturer's vehicle portfolio, requiring investment in powertrain technology and lightweighting. Bharat Stage VII emission standards are also in the pipeline, and the government is separately considering higher ethanol blending targets. Taken together, these measures will add to manufacturers' costs and capital expenditure requirements over the medium term.

Electric vehicles currently represent around 5% of passenger vehicle volumes in India. Crisil notes that the evolving regulatory environment creates conditions that could accelerate EV adoption over time, particularly as CAFE compliance calculations incentivise electrification. However, the pace at which penetration scales will depend critically on the development of public charging infrastructure, which remains limited in coverage and reliability, particularly outside major urban centres. The pace at which manufacturers are able to pass on the higher costs of EV production to buyers will also be a key variable to monitor as the regulatory cycle unfolds.

On the financial side, industry revenue is projected to grow 9–10% this fiscal, driven primarily by volume gains with incremental support from price increases. Operating margins, however, are expected to compress by 50–80 basis points to a range of 9.7–10%, compared to approximately 10.5% in fiscal 2026. The compression reflects the impact of elevated input and shipping costs that manufacturers have only partially offset through pricing actions. Despite this, Crisil notes that the sector's near debt-free balance sheets and robust liquidity position are expected to keep credit profiles stable, even as cost pressures persist through the year.

The road ahead for the passenger vehicle industry will be shaped by several intersecting factors — the trajectory of commodity and fuel prices in the context of the West Asia situation, the speed and manner in which new regulations are implemented, consumer appetite for further price increases, and the broader macroeconomic environment. For now, record volumes appear within reach, but sustaining profitability through the transition will require careful navigation by manufacturers.

Tata Motors Introduces AMT Option In Altroz iCNG Range

Autocar Professional Bureau — Tue, 12 May 2026 15:23:43

Tata Motors Passenger Vehicles has introduced an AMT option in the Altroz iCNG line-up, expanding the hatchback’s powertrain portfolio with a two-pedal transmission paired to its CNG powertrain.

With the launch, Tata Motors says the Altroz iCNG is now the first premium hatchback in India to offer an AMT gearbox with a factory-fitted CNG setup. Prices for the Altroz iCNG AMT start at Rs 8.69 lakh (ex-showroom, Delhi) and go up to Rs 10.76 lakh for the top-spec Accomplished S variant.

The Altroz iCNG AMT is powered by Tata’s 1.2-litre Revotron iCNG engine, producing 73.5 PS and 103 Nm in CNG mode. The company says the AMT has been introduced to improve drivability and ease of use, particularly in urban traffic conditions.

The model continues with Tata Motors’ twin-cylinder iCNG technology, which places the CNG cylinders beneath the luggage compartment floor. Tata claims this allows the Altroz iCNG to retain a usable 210-litre boot space, compared to the reduced cargo capacity typically associated with CNG vehicles. Petrol and diesel variants offer 345 litres of boot space.

Vivek Srivatsa, Chief Commercial Officer, Tata Passenger Electric Mobility Ltd, said, “With the introduction of AMT in the iCNG line-up, we are addressing a clear and growing customer need for greater convenience in CNG vehicles.”

The Altroz iCNG AMT also continues with features such as connected LED tail lamps, LED headlamps with DRLs, twin digital displays for infotainment and instrumentation, ambient lighting and rear AC vents. Safety equipment includes six airbags, ESP, ISOFIX mounts, and reverse parking sensors as standard.

Tata Motors said CNG penetration in India rose to 19 per cent in FY25 and further increased to 22 per cent in FY26, with adoption expanding beyond traditional CNG-focused regions.

Tata Sierra Crosses 30,000 Sales, Becomes Third Highest-Selling SUV for Tata Motors Since January

Ajit Dalvi — Tue, 12 May 2026 10:09:28

Tata Motors, which opened FY2027 with sales of 59,000 passenger vehicles, up 30.5% YoY (April 2025: 45,199 units), continues to ride the strong wave of demand for its SUVs. Its six-pack of SUVs comprising the Nexon, Punch, Safari, Harrier, Punch and the recently launched Sierra, clocked wholesales of 49,964 units in April 2026, up 49% YoY (April 2025: 33,454 SUVs). Year on year, the monthly share of SUVs has increased to 85% in April 2026 compared to 74% in April 2025. What has added tailwinds to Tata SUV sales is the launch of the Tata Sierra on November 25 last year.
Wholesale data reveals that the new Tata Sierra, the modern avatar of the iconic model sold between 1991 and 2003, has cumulatively sold an estimated 30,713 units since December 2025, when factory dispatches to Tata Motors’ showrooms began, followed by deliveries to customers from January 15 this year.

With 30,713 units sold since launch, the Tata Sierra accounts for an 12% share of Tata Motors’ wholesales of 255,442 SUVs in the past five months.

Within Tata Motors’ SUV portfolio, the Sierra is positioned between the Curvv and the Harrier, and goes head-to-head against 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.
In the short span of a little over four months, the Sierra (30,713 units) has become the third highest-selling SUV for Tata Motors after the Nexon and Punch compact siblings and accounts for a 12% share of the 255,442 SUVs the company dispatched between December 2025 and April 2026.
While the Nexon (100,106 units) tops with a 39% share, the Punch (94,069 units) has a 37% share. The Harrier (14,556 units, 6% share) is ranked fourth, followed by the Safari (8,468 units, 3% share) and the Curvv (7,530 units, 3% share).
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.
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.

Tata Sierra impresses with its premium, well-appointed cabin, a wide spread of powertrain options and a design that turns heads.

Sierra Goes 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, which has over 100,000 bookings, means that Tata Motors has had to ramp up production. It is understood that the company plans ramp up this midsize SUV’s monthly production to around 15,000 units over the next six months. It is understood that the Sierra, at present, has a waiting period of three to four months.

Maruti Suzuki Launches Second Edition of DesignXathon for Emerging Automotive Designers

Autocar Professional Bureau — Mon, 11 May 2026 19:18:38

Maruti Suzuki India Limited announced the launch of the second edition of its national design competition, DesignXathon 2026, on May 11. The initiative invites students from Indian and global design institutes located in India to submit concepts for future mobility solutions.

The theme for the 2026 edition requires participants to envision a vehicle that customers from the Gen Z and Alpha generations would aspire to own by the year 2036. Submissions will be assessed based on their holistic design vision, relevance to the target demographic's lifestyle, and the integration of sustainability and technology within the concept. The evaluation period for these futuristic vehicle designs is targeted at the 2035 to 2040 timeframe.

The competition offers a total cash prize pool of up to Rs 4.5 lakh. The top three winning teams will be awarded a six month internship with the Maruti Suzuki design team to gain hands-on industry experience. Teams ranked from fourth to tenth will receive formal recognition and the opportunity to apply for similar internships in a professional automotive studio environment.

Hisashi Takeuchi, Managing Director and CEO of Maruti Suzuki India, stated that the challenge provides a platform for young designers to translate creative ideas into practical concepts while contributing to a stronger design ecosystem in India. The inaugural edition of the competition in 2025 saw participation from over 400 students across 70 design institutes. The deadline for submitting applications for the current edition is July 13, 2026.

Toyota to Build Third Manufacturing Plant in India

Angitha Suresh — Mon, 11 May 2026 11:29:46

Toyota Kirloskar Motor (TKM) announced on Monday that it will construct a new vehicle manufacturing plant in the Bidkin Industrial Area of Maharashtra, India. The facility is planned to begin production in the first half of 2029, with an initial capacity of 100,000 vehicles per year.

The plant will employ approximately 2,800 workers at the time of launch and will cover the full range of core automotive manufacturing processes, including stamping, welding, painting, and assembly. The first model designated for production is a new SUV, though further specifications about the vehicle have not been disclosed. In addition to serving domestic demand, TKM indicated that the facility will supply vehicles to customers in regions surrounding India, suggesting an export role for the new plant from the outset.

Toyota Kirloskar Motor is a joint venture between Toyota Motor Corporation of Japan, which holds an 89% stake, and Kirloskar Systems Limited of India, which holds the remaining 11%. The partnership has operated in India for nearly three decades, with TKM describing its growth in the market as one that has developed alongside the pioneers who helped establish India's automotive industry, and from whom the company says it received significant early support and learning.

The company currently operates two manufacturing plants, both located in Bidadi, Karnataka. The first plant was established in October 1997 and has been in production since December 1999. It manufactures several of Toyota's widely sold models in India, including the Innova HyCross, Innova Crysta, Fortuner, and Legender, with an installed capacity of up to 132,000 units per year. The second plant, which began production in December 2010 and is located on the same Bidadi site, produces the Camry Hybrid, Urban Cruiser Hyryder, and Hilux, with a capacity of up to 210,000 units annually. Together, TKM's two existing facilities carry a combined installed production capacity of up to 342,000 units per year and employ 6,466 permanent staff across a total land area of approximately 432 acres.

Beyond its locally manufactured lineup, TKM also sells models sourced through other arrangements. The Glanza, Rumion, and Urban Cruiser Taisor are other Toyota models available in the Indian market, while the Vellfire and Land Cruiser 300 are imported as completely built units. The breadth of this portfolio reflects the company's efforts to cover multiple segments of the Indian market, from mass-market hatchbacks to premium SUVs.

The choice of Maharashtra for the new plant is notable. The Bidkin Industrial Area, where the facility will be located, is part of the Delhi-Mumbai Industrial Corridor, a large-scale infrastructure development project intended to boost manufacturing and industrial activity across several Indian states. Maharashtra is already home to significant automotive manufacturing activity, with several global and domestic carmakers operating plants in the state.

India has become one of the most strategically important markets for global automakers. The country surpassed Japan to become the third-largest vehicle market in the world in 2023, trailing only China and the United States, and has maintained strong growth momentum. Demand for SUVs in particular has risen sharply over the past decade, reshaping the product strategies of nearly every automaker operating in the country. Several manufacturers have announced or completed capacity expansions in India in recent years, seeking to reduce reliance on imports and respond more quickly to shifting consumer preferences.

In its announcement, Toyota described the new plant as a means of reinforcing its production infrastructure to allow for a flexible response to future demand growth and market changes in India and the surrounding region. The company also stated its intent to continue contributing to the development of India's automotive industry and the communities in which it operates, with the support of stakeholders at various levels.

No total capital investment figure was disclosed in the announcement. Further details about the SUV model to be produced at the new facility are also yet to be released.

The 34% Surge: How NBFC Muscle is Engineering India’s Used-Car Financing Reset

Autocar Professional Bureau — Sun, 10 May 2026 19:16:38

The landscape of the Indian automotive market is undergoing a structural transformation, moving away from a traditional reliance on new vehicle sales toward a high-velocity, credit-fueled surge in the pre-owned segment. According to the April 2026 CRISIL report, this vehicle financing reset is being spearheaded by Non-Banking Financial Companies (NBFCs), which have successfully unlocked demand in previously underserved geographies.

Pre-owned Powerhouse

While the broader automotive sector has seen steady growth, the used-car financing segment has emerged as the clear frontrunner, recording a staggering 34% CAGR between FY20 and FY25 to Rs 1,10,000 crore. This growth significantly outpaces other vehicle categories, reflecting a shift in consumer behavior where a four-wheeler is no longer just a luxury but a tangible aspiration for "Middle India". The auto industry contributes nearly 11% of credit rolled out by NBFCs annually.

This demographic, defined as households with annual incomes between Rs 2 lakh and Rs 10 lakh, is expected to grow to 181 million households by FY30. For these consumers, particularly in semi-urban and rural areas, financing access is enabling a leapfrog effect: moving directly from two-wheelers to pre-owned cars as their first four-wheeled asset.

NBFCs: Dominating the Last Mile

The rise of used-car sales is inextricably linked to the muscle of NBFCs. These lenders have secured a dominant 66% market share in the two-wheeler segment, which grew at a 17.70% CAGR during FY20-FY25 to Rs 1,70,000 crore. On the other hand, commercial vehicles, which form roughly 58.70% of the total auto share for NBFCs, grew at a CAGR of 13.70% to Rs 5,70,000 crore in FY25.

Their success is built on a deep penetration into rural and semi-urban markets where traditional banks have historically been cautious.

The contrast in credit delivery is stark: while rural India contributes an estimated 47% of the national GDP, it receives a mere 8% of overall banking credit. Banks continue to focus on "prime" salaried borrowers in metropolitan hubs to maintain asset quality. NBFCs, however, have filled this vacuum by leveraging specialized underwriting, a physical "phygital" presence, and an inherent flexibility in assessing borrowers with limited formal credit histories.

Macroeconomic Tailwinds: The Rate Cut Catalyst

The acceleration in auto lending is supported by a significant easing of monetary policy. Throughout CY2025, the Reserve Bank of India (RBI) implemented a cumulative 125-basis-point repo rate cut, bringing the rate down to 5.25% by December 2025. These lower borrowing costs have been a decisive tailwind for the sector, translating into reduced EMIs and improved credit affordability for the end consumer. This environment underpins CRISIL’s projection of 18–19% retail credit growth in FY26, with auto loans—alongside gold and personal loans—identified as primary drivers of this momentum.

Asset Quality: The Normalization of Risk

The aggressive expansion into newer geographies and riskier borrower segments has, predictably, led to a normalization of asset quality metrics. The auto loan segment enjoyed a cyclical low GNPA (Gross Non-Performing Assets) of 6.6% in FY22, 5.2% in FY23, 4.3% in FY24, and 3.7% in FY25. It is expected to close between 3.8% and 4.2% in FY26.

Next Steps

Even as the contribution of auto loans remains at 11% of NBFC credit, the increasing formalization of the Indian economy and NBFCs' ability to finance the "Middle India" aspiration for mobility remain the most critical engines of the country’s automotive reset.

Hyundai’s Margin Repair Plan: Price Hikes, Lower Discounts And Chennai Ramp-Up

Ketan Thakkar — Fri, 08 May 2026 21:10:30

Hyundai Motor India Ltd is banking on calibrated price hikes, lower discounts, higher volumes, improved utilisation at its Chennai plant and cost optimisation to restore margins in FY27, after commodity inflation, capacity addition costs and adverse product mix weighed on profitability in the March quarter.

The company, which has guided for EBITDA margins in the range of 11-14 per cent for FY27, said it has already taken multiple pricing actions and will continue to balance volume growth with profitability.

In Q4FY26, Hyundai Motor India’s consolidated EBITDA margin fell to 10.4 per cent, from 14.1 per cent in the year-ago quarter and 11.2 per cent in Q3FY26. EBITDA stood at ₹1,966 crore, down from ₹2,532.7 crore in Q4FY25 and ₹2,018.3 crore in Q3FY26.

During the analyst call, K S Hariharan, Head of Investor Relations at Hyundai Motor India Ltd said commodity inflation had a sequential margin impact of around 120 basis points in Q4FY26. Of this, around 50-60 basis points was one-off in nature and may not recur in the coming quarters.

The company also faced higher employee cost due to the impact of labour code provisions and actuarial assumptions. Management indicated that employee cost rose by around ₹100 crore sequentially, largely because of these one-off factors.

Hariharan said Hyundai’s Q4 profitability was also affected by costs linked to capacity addition and unfavourable product mix. Though volumes were higher, the cost pressures outweighed the benefit of scale, leading to a year-on-year decline in margins.

On a sequential basis, better volumes, calibrated pricing actions and government incentives helped partly offset the impact of commodities and unfavourable sales mix.

Price Hikes, Discount Discipline

According to Hariharan, Hyundai took a price increase of around 60 basis points in January, followed by a selective price increase for the Venue in March. Another price increase will be taken in May, he added. At the same time, the automaker reduced discounts. Management said discounts came down to 1.9 per cent of average selling price in Q4FY26 from 2.6 per cent in Q3FY26.

This discount discipline, along with price increases, is expected to support profitability in FY27, though the company said pricing will remain calibrated and linked to market conditions.

“Our strategy is we want to take a proper balance between volumes and profitability. So, the price increase also is something we need to look at the overall market condition. Accordingly, we will take a calibrated call,” Hariharan said.

Chennai Plant to Aid Fixed-Cost Absorption

According to Hyundai’s management, higher utilisation at the Chennai plant will be a key margin lever in FY27, with both upcoming launches — an internal combustion engine SUV and a dedicated compact electric SUV — slated to be produced at the facility.

The Chennai plant utilisation had dropped after production of the Venue was shifted to the Pune facility. The company said the two upcoming models will help bring Chennai utilisation back to healthier levels, improving fixed-cost absorption and supporting margins.

“Chennai plant provides us with a great opportunity… because the Venue was shifted, we had this temporary drop in the capacity utilisation. And now with these two models going to Chennai, we will be very good in Chennai,” Tarun Garg, Managing Director and Chief Executive Officer, Hyundai Motor India, said.

Garg said Pune is also ramping up after taking over Venue production, with monthly output rising from around 8,000 units to about 12,000 units. The company may consider a third shift at Pune if volumes justify it.

For FY27, Hyundai has lined up capital expenditure of around ₹7,500 crore. Around 45-50 per cent of this will go towards upcoming new products, while about 30 per cent will be used for plant-related investments, including Pune Phase-II expansion and upgrades at Chennai.

Volume Growth to Support Margins

Hyundai is targeting 8-10 per cent growth in domestic volumes and 8-10 per cent growth in exports in FY27. The company expects the two new launches to contribute meaningfully to volumes during the year. Garg said the company has started FY27 on a strong note, with April domestic volumes growing 17 per cent year-on-year.

“Backed by product actions and other initiatives, we remain confident of delivering domestic volume growth of 8 to 10% in FY27. Having said that, our enhanced plant capacity and flexible operations position us to swiftly respond to any further growth opportunities, even beyond 8 to 10%, should they arise during the year,” Garg said.

The company also expects to outpace industry growth and gain market share, helped by fresh product actions and expanded capacity. “We are fairly confident that we will be able to outpace the industry in this fiscal and gain market share,” Garg said.

Hyundai Plans Two New SUVs to Take On Maruti Victoris and Tata Nexon EV

Ketan Thakkar — Fri, 08 May 2026 20:45:31

Hyundai Motor India is preparing two new SUVs for the Indian market in 2026 as it looks to regain market share amid growing competition from Maruti Suzuki and Tata Motors.

The company is working on an ICE crossover internally codenamed Bc4i and a new electric SUV, HE1i, both of which were discussed by Hyundai management during recent interactions with media and analysts following its FY26 earnings. These two new SUVs begin the wave of over 2 dozen new product onslaught the company announced last year.

People aware of the plans said the Bc4i will be based on the Hyundai i20 platform and will measure around 4.18 metres in length. The model is expected to be positioned against the upcoming Maruti Suzuki Victoris instead of the Maruti Suzuki Fronx.

Hyundai is expected to position the SUV with naturally aspirated petrol and CNG powertrains, focusing on fuel efficiency and lower running costs rather than outright performance. The model is also expected to come with a high level of connected features, infotainment and driver assistance technologies, areas where Hyundai has traditionally focused strongly.

The second model under development is the HE1i electric SUV, which is expected to be under four metres in length and positioned directly against the Tata Nexon EV.
Unlike Hyundai’s earlier EVs, the HE1i is expected to be developed more closely around Indian market requirements, including localisation, pricing and urban usage patterns.

The two SUVs form part of Hyundai’s effort to widen its presence across multiple SUV price points instead of depending heavily on a few large-volume products.
“We shall be introducing two completely new nameplates which have been keenly awaited by all of you. Both these launches are expected to meaningfully boost our volumes and act as powerful catalysts for our next phase of growth,” Tarun Garg, MD and CEO of Hyundai Motor India, said.

“One will mark the debut of our new localized dedicated EV in the compact SUV space, accelerating our transition towards electrification and strengthening our future-ready portfolio. The other one will further expand our presence in the ICE SUV segment,” Garg added.

Industry executives said carmakers are increasingly introducing multiple SUVs in overlapping price brackets with different designs, body styles and fuel options to attract a wider set of buyers.

For Hyundai, the move is also aimed at strengthening its lineup around the Hyundai Creta, which continues to face growing competition in the mid-size SUV segment.
The company has guided for 8-10% domestic growth in FY27, supported by new launches and higher production capacity. “Backed by these product actions and other initiatives, we remain confident of delivering domestic volume growth of 8% to 10% in FY27,” Garg said.

Indian Automakers on Alert for Another Round of Price Hikes Amid Rising Commodity Costs & Supply Chain Pressures

Prerna Lidhoo — Fri, 08 May 2026 19:17:48

India’s automakers could be staring at another round of vehicle price hikes as rising commodity costs, supply chain disruptions and geopolitical tensions begin putting pressure on their margins, despite demand recovering following the GST rationalisation in September 2025. Inflation in key raw materials such as steel, aluminium, copper and platinum group metals is forcing companies to revisit pricing strategies, despite ongoing efforts to offset costs through localisation, value engineering and operational efficiencies.

Hyundai Motor India said commodity inflation had already shaved off around 120 basis points from margins in the last quarter on a sequential basis, although part of the impact was one-time in nature. “We will be looking at a price increase sometime in May. We agree that the commodity is unstable. We don't know what will happen next,” Tarun Garg, Managing Director and Chief Executive Officer of Hyundai Motor India said. Despite the pressure, Hyundai said it remains committed to maintaining its operating margin guidance of 11-14% through a combination of higher volumes, better plant utilisation and cost optimisation initiatives.

The automaker is banking on 8-10% domestic growth and a similar rise in exports in FY27 to help cushion the impact of inflation. The launch of two new SUVs from its Chennai plant is also expected to improve capacity utilisation after production of the Hyundai Venue was partly shifted to Pune last year. Hyundai added that it would continue focusing on localisation and value engineering to offset rising material costs before fully passing them on to customers. Garg added that any price increase would be taken through a “calibrated approach” depending on market conditions, volumes and profitability.

The situation is similar at Mahindra & Mahindra, where inflationary pressures and supply-side bottlenecks have already started affecting profitability. The company’s automotive EBIT margins remained largely flat at 10.9% in the fourth quarter of FY26 despite strong demand. It has already announced price hikes of up to 2.5% on its internal combustion SUVs and commercial vehicles from April 6, while its tractor business has also raised prices citing higher input costs. The company said sustained increases in commodity prices had pushed up manufacturing costs, although the extent of the hike varies across models and regions.

The company has been strengthening supply chain resilience by increasing localisation, reducing single-source dependency and building inventory buffers for critical components. It has also set up an “intelligence desk” for real-time supply tracking and commodity hedging.

Amarjyoti Barua, Group Chief Financial Officer at Mahindra & Mahindra, said the company is differentiating between temporary commodity spikes and structural disruptions that may require long-term pricing action.

“There are two types of commodities: those who are facing a temporary issue because of the current situation and those that might see some structural issue because of the disruption in global supply chain like aluminium where the constraint is seems to longer,” Barua said.

“The ones that are structural there are multiple actions we have to take with price increases being one of them. We'll make sure we're hedged in 90% of our purchases. We might have to look at price increases again if there are structural issues like that.”

However, the company said it remains cautious about overreacting to temporary inflationary spikes. “But right now we can't react to temporary inflation and end up creating a price point which is inaccessible. So that's the balance we're striving for,” Barua added.

At Maruti Suzuki India, the challenge is especially sensitive because the company’s strongest recovery is currently coming from small and entry-level cars, where customers are highly price conscious. The automaker said demand for hatchbacks and mini cars rebounded strongly after GST cuts improved affordability. Sales of small cars rose nearly 75% year-on-year in April, while mini car volumes more than doubled to 16,066 units.

“From the month of April, our production team has been able to partly unlock the production capacity for the small cars, and as the demand is there. We have been able to supply that,” said Partho Banerjee, Senior Executive Officer for Marketing and Sales at Maruti Suzuki India Limited.

But the company acknowledged that rising costs may soon force it to raise prices despite trying to protect first-time buyers. “In the small car segment in H2, we had very good growth of almost 12%. The company’s supply chain is actively managing production challenges. The traction is very good, even in the month of March, we have a waiting period of almost one month. But very soon, we are going to review that we need to increase the prices and pass it on to our customers,” Banerjee said.

He added that Maruti had delayed price hikes to support affordability in the entry-level segment. “But the management will very soon be taking a call to increase prices since there is a pressure. Our other OEM partners have increased the prices. But keeping in mind the first-time buyers, we have been holding it on,” he said.
Maruti also warned that any increase in fuel prices resulting from the West Asia crisis could directly hurt demand in the small car segment, where running costs remain a key purchasing factor. “On production, right now we are good but on the cost part, there is an impact,” Banerjee said.

The broader industry has already begun responding to the cost pressures. Carmakers including Tata Motors, JSW MG Motor India, BMW India, Mercedes-Benz India, Audi India and Honda Cars India have either implemented or announced price increases from April 2026 onward.

While mass-market manufacturers are attempting to soften the impact through cost controls and selective hikes, luxury brands have already raised prices by up to 2% citing input cost inflation, logistics expenses and currency depreciation. For now, automakers appear willing to absorb part of the inflationary burden to preserve demand momentum, especially after the GST-led recovery. But if commodity prices remain elevated for a prolonged period, the industry may have little choice but to pass on more of the costs to consumers in the coming quarters.

Skoda Auto India Inaugurates New Sales Facility in Hyderabad

Autocar Professional Bureau — Fri, 08 May 2026 18:44:41

Skoda Auto India has expanded its retail presence in Telangana with the inauguration of a new sales facility in Hyderabad. Located in the Raidurgam area, the new customer touchpoint was launched in partnership with Mody India Cars Private Limited.

The new facility spans 3,200 square feet and features a display capacity for four vehicles. The showroom is designed around the automaker's global Modern Solid design philosophy. With this addition, Skoda currently operates 15 active customer touchpoints across the twin cities of Hyderabad and Secunderabad.

On a state level, the manufacturer's network in Telangana has grown to 19 locations distributed across Hyderabad, Karimnagar, Nizamabad, and Warangal. Ashish Gupta, Brand Director at Skoda Auto India, stated that the continued expansion aims to bring the company's product range, which includes the Kylaq, Kushaq, Kodiaq, and Slavia, closer to regional buyers. Nationally, the brand has scaled its retail footprint from 120 outlets in 2021 to over 330 touchpoints across 182 cities.

Tata Motors Introduces Nexon Pure+ PS Variant

Dev Vadchhedia — Fri, 08 May 2026 17:59:23

Tata Motors Passenger Vehicles launched the new Nexon Pure+ PS variant on May 8, 2026, introducing a panoramic sunroof to the sub Rs 10 lakh segment. The new trim starts at an introductory price of Rs 9.59 lakh, ex showroom Delhi, for the manual petrol version.

Beyond the voice assisted panoramic sunroof, the updated variant is equipped with a 26.03 cm Harman infotainment system supporting wireless Android Auto and Apple CarPlay. The cabin also features a six speaker audio setup, an HD rear view camera, automatic LED headlamps, and rain sensing wipers.

The automaker is offering the Pure+ PS trim across multiple powertrain configurations. Alongside the base petrol manual, buyers can opt for a petrol automated manual transmission priced at Rs 10.14 lakh. The twin cylinder compressed natural gas manual variant is available for Rs 10.39 lakh. For diesel buyers, the manual and automated manual transmission options are priced at Rs 10.54 lakh and Rs 11.19 lakh respectively.

Vivek Srivatsa, Chief Commercial Officer at Tata Passenger Electric Mobility, noted that the introduction of the new variant strengthens the model's overall value proposition by making a highly aspirational feature accessible to a wider segment of buyers.

Hyundai Confident on CAFE 3 Compliance, Plans Local Dedicated EV in FY27

Darshan Nakhwa — Fri, 08 May 2026 17:47:23

Hyundai Motor India Ltd is confident of meeting the upcoming Corporate Average Fuel Efficiency, or CAFE 3, norms, backed by its powertrain strategy and upcoming product interventions, Managing Director and Chief Executive Officer Tarun Garg said.

The company has already complied with the norms applicable for FY26 and has assessed the requirements under the latest CAFE 3 draft, he said during a media call after Hyundai Motor India’s Q4 and FY26 results.

“On the regulatory front, we have fully met CAFE requirements for FY26. For CAFE3, based on the recent draft, we have calculated the requirements and remain fully confident of meeting the compliance backed by our strong powertrain strategy,” Garg said.

Hyundai’s confidence comes from a portfolio that spans multiple body styles and powertrains. Its India line-up includes hatchbacks such as Grand i10 Nios and i20, sedans such as Aura and Verna, and SUVs such as Exter, Venue, Creta and Alcazar. The company also sells electric models such as Creta Electric and Ioniq 5, while its mass-market portfolio includes petrol, diesel and CNG options.

This spread is important because CAFE compliance is calculated at a fleet level. Companies with wider powertrain options and lower-emission models have more flexibility in managing their corporate average emissions.

Hyundai has also been seeing stronger contribution from alternative fuel options. In Q4 FY26, the company reported its highest-ever quarterly CNG contribution of 18%, driven by rising adoption and entry into the commercial mobility segment.

FY27 Growth Plan

For FY27, Hyundai Motor India is targeting 8-10% domestic volume growth, driven by product actions and network expansion. It is also aiming for 8-10% export volume growth, supported by market diversification and product-led opportunities. The company has lined up two completely new nameplates in FY27, both in the SUV category. One will strengthen its position in the mid-SUV segment, while the other will mark the debut of its localised dedicated EV in the compact SUV space.

Garg said Hyundai has started FY27 on a strong note, with April domestic volumes growing 17% year-on-year. He said the company expects the momentum to continue, backed by new launches in high-demand segments.

On EVs, Garg said industry penetration has moved up from around 2.2–2.4% earlier to 4.4% in calendar 2025 and 4.8% in calendar 2026, indicating that the category is gaining momentum.

“And we do not have a fully dedicated mass-volume, dedicated model. I believe that the strong, dedicated EV will bring a very strong EV portfolio addition to us,” he said.

For Hyundai, EV penetration is currently lower than the industry average. Garg said the company sells around 700-800 electric vehicles a month out of average monthly volumes of about 50,000 units, putting Hyundai’s EV penetration at around 1.5-2%. “Industry, 4.8%. Hyundai, 2.0%,” he said.

Hyundai has also said it intends to regain the number two position in India’s passenger vehicle market, though Garg did not put a timeline to it.

“We already shared with you the volume plan and we have every intention to come back to the number two position. Now, which year and all depends on so many other things. Not only on us, but on the competition, etc. So, I think we will not make any claim as such. But yes, we are very passionate about our position and we will get it back sooner or later,” he said.

CAFE 3 Draft Eases Curve, Deadline Remains

The latest CAFE 3 draft has proposed softer emission limits compared with the September draft. The latest draft keeps the same formula for calculating fuel-efficiency targets but changes the constants, making the curve flatter and allowing higher permissible emissions for the same vehicle weight. Smaller cars benefit more from the flatter curve, although the earlier explicit 3g CO₂/km relief for small cars has been dropped.

The CAFE norms apply to M1 category passenger vehicles, which include cars that seat up to nine people and weigh up to 3,500 kg. The proposed standards are scheduled to come into force from April 1, 2027.

The government has also indicated that there will be no extension to the deadline. Hanif Qureshi, additional secretary at the Ministry of Heavy Industries, said the question of an extension was unlikely to arise as the ministry had been consulting manufacturers through the drafting process and had taken their feedback on board. The CAFE 3 window runs from April 1, 2027, to March 31, 2032.

Mahindra Also Confident

Hyundai is not alone in expressing confidence on compliance. Mahindra & Mahindra expects to meet the upcoming fuel efficiency norms by increasing the share of EVs in its SUV portfolio. The company is targeting EV penetration of 13-17% in its passenger vehicle portfolio by March 2027 and expects to reach 18-20% over a five-year period.

Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra, said the company’s EV mix had already moved from around 9.5% to over 11% in recent months, supported by traction in its electric SUV portfolio. “We were already at around 9.5%… the last two months have been 11% plus. So we should comfortably be able to meet the requirements,” Jejurikar said.

Mahindra’s position is helped by the fact that its passenger vehicle portfolio is entirely SUV-led and its EV compliance strategy is centred around electric SUVs.

Maruti Sees Multi-Fuel Path

Maruti Suzuki, too, expects the new CAFE rules to be manageable, though its approach is different. Chairman R C Bhargava said the norms are unlikely to be very difficult for the company, especially if it has multiple fuel options.

“The new CAFE rules are not going to get that difficult for us to do, especially if we have multiple fuel options and we can get into CBG and ethanol and such fuels. I think it's not going to make too much of a difference,” Bhargava said.

Maruti’s position reflects its broader multi-powertrain approach, where small cars, CNG, hybrids, ethanol and compressed biogas are expected to play a role in lowering fleet emissions, even as the company gradually builds its EV portfolio.

‘Post-GST Growth in Sedans and Hatches Not Really a Sustainable Trend’: Hyundai Motor’s Tarun Garg

Ketan Thakkar — Fri, 08 May 2026 17:41:24

The recent rebound in India’s hatchback and sedan segments following the GST rate rationalisation may not represent a long-term structural shift, according to Tarun Garg, Managing Director and Chief Executive Officer of Hyundai Motor India. Speaking about changing market dynamics after the GST revision in September 2025, Garg said the recent growth across body styles has improved overall industry sentiment and plant utilisation, but SUVs are expected to continue dominating the market going forward.

“So, before GST reform, the mix was heavily skewed in favor of only cars more than 4 meters but now we are seeing a growth across segments. But I don’t think this is a trend as such. We’re going to introduce two new models this year which are both going to be SUVs,” Garg said.

The comments come at a time when passenger vehicle demand has shown signs of revival after a weak first half of FY26. According to data from JATO Dynamics, hatchback sales rose 20% year-on-year in the October-December quarter of 2025, while the sedan segment posted a sharp recovery led by the strong performance of the Maruti Suzuki Dzire. The sedan recorded 33.18% year-on-year growth in October 2025 alone and eventually emerged as India’s best-selling car in FY26 with sales of 2,29,130 units.

Hyundai said the first half of the year remained subdued due to weak consumer sentiment, while the second half witnessed a strong turnaround after GST rationalisation improved affordability and boosted demand.

“GST rate rationalization in September acted as a strong catalyst for recovery. This shift coincided well with the commissioning of our new plant and product launch cycle kicking in. Together, these factors created strong leverage and allowed us to respond to the improving demand environment, supporting a steady acceleration in the latter half of the year,” he said.

Hyundai Motor India on Wednesday posted its highest-ever quarterly domestic sales at 1,66,578 units for the fourth quarter of FY26, up 8.5% compared to the same quarter last year. He added, “So, obviously this is very good from the overall plant capacity utilization point of view and from a growth point of view. We are very happy as long as the overall volumes keep on increasing.”

The company said refreshed versions of the Hyundai Exter and Hyundai Verna are expected to support further momentum in the coming quarters. Looking ahead, Hyundai plans to introduce two new nameplates in FY27, including its first locally developed dedicated electric compact SUV.

“We feel very excited to inform you that during this financial year, we shall be introducing two completely new nameplates which have been keenly awaited by all of you. Both these launches are expected to meaningfully boost our volumes and act as powerful catalysts for our next phase of growth,” Garg said.

“Of these two new launches, one will mark the debut of our new localized dedicated EV in the compact SUV space, accelerating our transition towards electrification and strengthening our future-ready portfolio,” he added.

The second launch will expand Hyundai’s internal combustion engine SUV portfolio in the mid-size SUV category. According to the company, both launches are aimed at strengthening its presence in high-demand segments. Hyundai said it expects domestic volume growth of 8-10% in FY27, supported by new launches, increased production flexibility and stronger market sentiment following GST cuts. The company said the strongest demand growth is currently visible in the mid-SUV, Hyundai Venue and Hyundai Aura segments. Garg also flagged macroeconomic uncertainties arising from geopolitical tensions in West Asia, particularly around oil prices, supply chains and consumer sentiment.

“We know that there are some uncertainties because of the Middle East war. What will happen once the war ends? How will it affect the supply chain? How will it affect the sentiment? How will it affect oil prices, petrol prices? So, there are uncertainties, we don't know. But the good thing is, post GST, we are seeing a strong traction in demand,” he adds.

Hyundai Motor India Targets 8-10% Growth in FY27, Guides for Improved Margins

Darshan Nakhwa — Fri, 08 May 2026 16:07:51

Hyundai Motor India Limited (HMIL) has projected 8-10% growth in both domestic sales and exports in FY27 and expects profitability to improve, supported by new product launches, better operating leverage, and a stronger export mix.

The guidance was shared by the company in its investor presentation released after its Q4 FY26 earnings announcement.

Hyundai has guided for EBITDA margins of 11-14% in FY27, indicating expectations of margin expansion from current levels despite continuing cost pressures across the industry.

The outlook comes after Hyundai reported a mixed FY26 performance, where strong export growth helped offset weakness in the domestic market.

For FY26, Hyundai’s total sales rose 1.7% year-on-year to 775,031 units. Export volumes grew 16.4% to 190,125 units, while domestic sales declined 2.3% to 584,906 units.

The company said demand recovery during the second half of the fiscal year, aided partly by GST reductions in select vehicle categories, supported volumes.

Hyundai is preparing a fresh product offensive in FY27 as competition intensifies in the SUV and electric vehicle segments.

The automaker plans to introduce two new nameplates during the year, including a new internal combustion engine SUV and an electric SUV. The launches are expected to strengthen Hyundai’s position in utility vehicles, which continue to account for the bulk of growth in the passenger vehicle market.

SUVs contributed 68% of Hyundai’s domestic sales mix in FY26, led by models such as the Hyundai Creta, Hyundai Venue, and Hyundai Exter. The Creta continued to remain among the company’s strongest-selling products during the year.

The company also highlighted growing traction in rural markets and alternative fuel vehicles. Rural penetration reached a record 25% in Q4 FY26, while CNG contribution rose to 18%.

In FY26, Hyundai’s revenue rose 2.3% to ₹70,763 crore. However, the EBITDA margin narrowed to 12.2% from 12.9% a year earlier due to commodity inflation and costs related to capacity stabilisation.

Hyundai Motor India Q4 Revenue Rises 5%, Profit Falls 22% on Margin Pressure

Darshan Nakhwa — Fri, 08 May 2026 16:01:45

Hyundai Motor India Ltd reported a 5.4% year-on-year rise in consolidated revenue from operations to ₹18,916.2 crore in the quarter ended March 31, helped by GST-led demand tailwinds, product interventions, higher exports and its highest-ever quarterly domestic sales.

However, consolidated profit after tax declined 22.2% year-on-year to ₹1,255.6 crore from ₹1,614.3 crore in the year-ago quarter, as operating margins moderated. EBITDA, excluding other income, fell 22.4% year-on-year to ₹1,966 crore, while EBITDA margin narrowed to 10.4% from 14.1% in Q4FY25.

Sequentially, the automaker’s revenue grew 5.2% from ₹17,973.5 crore in Q3FY26. PAT rose 1.7% from ₹1,234.4 crore, even as EBITDA declined 2.6% from ₹2,018.3 crore and margin contracted from 11.2% in the previous quarter.

“Backed by new product actions and other initiatives, we remain confident of delivering domestic volume growth of 8% to 10% in FY27. Even in an extremely uncertain environment, we are determined to go the extra mile and deliver volume growth of 8% to 10% in exports as well in FY27,” said Tarun Garg, MD & CEO of Hyundai Motor India.

Q4 Sales Performance

The company domestic wholesale volumes grew 8.7% year-on-year in Q4FY26, supported by GST 2.0 tailwinds and agile product interventions. The New Venue, the first product from Hyundai’s Pune plant, continued to be a growth driver and also secured a 5-star Bharat NCAP rating.

Hyundai also reported record rural penetration of 25% in Q4FY26 and its highest-ever quarterly CNG contribution of 18%, helped by rising adoption and entry into the commercial mobility segment. Aura recorded its all-time high sales volume for both the quarter and the full year.

Exports grew 9.4% year-on-year in Q4FY26 despite geopolitical headwinds, the company said.

FY26 Revenue Up, PAT Slips

For FY26, Hyundai Motor India’s consolidated revenue from operations rose 2.3% to ₹70,763.3 crore from ₹69,192.9 crore in FY25. EBITDA declined 4% to ₹8,598.5 crore, while EBITDA margin narrowed to 12.2% from 12.9%. Consolidated PAT declined 3.7% to ₹5,431.5 crore from ₹5,640.2 crore.

The company closed FY26 with export volume growth of 16.4%, reinforcing its position as a hub for emerging markets. The board recommended a dividend of ₹21 per share, subject to shareholder approval.

Commenting on the performance, Garg said, “FY26 was a year where we demonstrated our ability to effectively navigate a challenging environment while capitalizing on emerging opportunities, supported by GST 2.0 reforms, strategic product interventions, strong export volumes and our continued focus on ‘Quality of Growth’.”

FY27 Outlook

Hyundai Motor India expects domestic volume growth of 8-10% in FY27, driven by product actions and network expansion. The company also expects export volume growth of 8-10%, led by market diversification and product-led opportunities.

“Looking ahead to FY27, we have started the year on a strong footing, with April domestic volumes growing 17% YoY. We expect this positive momentum to continue and backed by new product launches in high-demand segments and other strategic initiatives, we expect 8-10% volume growth in domestic market,” Garg said.

The company also plans to launch two completely new nameplates in FY27, expanding its presence in the SUV category. One model will strengthen Hyundai’s position in the mid-SUV segment, while the other will mark the debut of its localised dedicated EV in the compact SUV space.

Hyundai has also guided for EBITDA margins in the 11-14% range and has planned capex of about ₹7,500 crore for FY27. Garg said the company will expand the Pune facility by another 70,000 units after Phase-II expansion, taking overall capacity to 1.14 million units by 2030.

Hyundai Motor India to Invest ₹7,500 crore, Expand Capacity to 1.14 Mn Units

Ketan Thakkar — Fri, 08 May 2026 15:58:05

Hyundai Motor India Ltd (HMIL) is preparing for another round of expansion in India, with plans to invest about ₹7,500 crore in FY27 to increase production capacity and support a broader pipeline of SUVs and electric vehicles. This is the highest ever CAPEX incurred by the company in the country.

The company disclosed the plans in its investor presentation released after announcing its Q4 FY26 results. “Our growth ambition plans will be fuelled by aggressive investments of around Rs 7,500 crore in FY27, marking the highest-ever capex in recent years.” said Tarun Garg, MD & CEO of Hyundai Motor India

As part of the expansion, Hyundai plans to raise its total installed manufacturing capacity to 1.144 million units through phased development of its Pune facility.
At present, Hyundai has a combined installed capacity of 994,000 units annually, including 824,000 units at its Chennai plant and 170,000 units at the Pune facility.

The Pune plant is expected to scale up to 250,000 units initially and later to 320,000 units after the second phase of expansion.

The investment comes as Hyundai sharpens its focus on the utility vehicle market, where competition has intensified with Mahindra & Mahindra and Tata Motors steadily gaining ground.

The automaker has outlined plans to introduce two new nameplates in FY27, including a new SUV with an internal combustion engine and another electric SUV. Industry sources have indicated that Hyundai is also working on a wider refresh cycle for its India lineup as it looks to defend market share in key segments.
SUVs continued to remain central to Hyundai’s India business in FY26, accounting for 68% of domestic sales.

Models such as the CRETA, EXTER and VENUE remained volume drivers for the company during the year.

Hyundai’s push into electric mobility has also gathered pace following the launch of the Creta Electric, while the company has simultaneously expanded its CNG portfolio amid rising demand for lower running-cost vehicles.

For FY26, Hyundai reported total sales of 775,031 units, up 1.7% year-on-year, helped largely by strong export growth. Export volumes rose 16.4% to 190,125 units, while domestic sales declined 2.3% to 584,906 units.

The company also reported record rural penetration of 25% and CNG contribution of 18% during the fourth quarter, reflecting growing traction in smaller markets and alternative fuel segments.

Hyundai’s revenue for FY26 rose 2.3% to ₹70,763 crore. However, profitability remained under pressure, with EBITDA margin narrowing to 12.2% from 12.9% a year earlier due to commodity inflation and costs linked to capacity stabilisation.

Bajaj Auto Q4 Profit Nearly Doubles; Revenue up 41%

Arunima Pal — Wed, 06 May 2026 19:01:27

Bajaj Auto Limited today announced its audited financial results for the fourth quarter and full financial year ended March 31, 2026, reporting record performance across volumes, revenues, profits, and cash generation.

Q4 FY26 Highlights

Bajaj Auto delivered a standout quarter, with consolidated revenue from operations reaching ₹17,832 crore, up sharply from ₹12,646 crore in Q4 FY25 — a jump of approximately 41% year-on-year. Profit after tax for the quarter came in at ₹3,662 crore, compared to ₹1,802 crore in the same period last year, nearly doubling on a year-on-year basis.

On the standalone front, Q4 revenue from operations stood at ₹16,006 crore, a robust 32% YoY growth, while standalone profit after tax reached an all-time quarterly high of ₹2,746 crore, up 34% YoY. EBITDA for the quarter was ₹3,323 crore, growing 36% YoY, with margins holding firm at 20.8%.

Volume performance was equally strong, with total sales of 13.71 lakh units in Q4 FY26, up 24% from 11.03 lakh units in Q4 FY25. Exports crossed the 6-lakh-unit mark for the quarter, with revenues growing over 30% YoY.

Full Year FY26 Performance

For the full financial year, Bajaj Auto's consolidated revenue from operations grew 23% YoY to ₹62,905 crore, against ₹50,995 crore in FY25. Consolidated profit after tax surged 47% to ₹10,744 crore, up from ₹7,325 crore the previous year — reflecting the significantly expanded group footprint following the acquisition of controlling interest in Bajaj Auto International Holdings AG (BAIHAG), the parent entity of KTM AG and Bajaj Mobility AG, in November 2025.

On a standalone basis, full-year revenue from operations reached a record ₹58,732 crore, up 17% YoY, while standalone profit after tax climbed 21% to ₹9,825 crore. EBITDA for the full year was ₹12,019 crore, up 19% YoY, with margins improving 30 basis points to 20.5%.

Total volumes for FY26 crossed the 51 lakh unit mark — the highest ever for the company — up 10% YoY, surpassing the previous peak set in FY19. Domestic volumes grew 3% to 28.67 lakh units, while exports expanded 21% to 22.50 lakh units. Commercial vehicle exports were particularly strong, rising 49% YoY.

Key Business Highlights

Chetak (EVs): Bajaj retained its position as India's largest electric two-wheeler player, with EV revenues exceeding ₹8,000 crore and accounting for over 20% of domestic sales. Chetak posted revenues above ₹4,000 crore for the year, hitting a quarterly retail milestone of over 1 lakh units in Q4.

KTM–Triumph: The premium motorcycle duo delivered its best-ever performance with global revenues of approximately ₹5,000 crore, up 40% YoY, delighting around 2.25 lakh riders during the year.

Commercial Vehicles: The segment posted a landmark year, with total volumes crossing 8 lakh units. The company exited FY26 as the #1 player in electric three-wheelers, and expanded into the e-rickshaw space through its Riki platform, now present in 100+ cities.

Bajaj Auto Credit Limited (BACL): The financing subsidiary saw its AUM nearly double to ₹18,835 crore. Profit after tax surged over 11x to ₹665 crore, with a return on equity of 23% and an industry-leading Net NPA of ~1%.

The Board of Directors recommended a final dividend of ₹150 per share (1,500% on face value of ₹10), subject to shareholder approval at the AGM scheduled for July 21, 2026. The record date for dividend eligibility has been fixed as May 29, 2026, with payment expected on or around July 24, 2026.

In addition, the Board approved a share buyback of up to 46.94 lakh equity shares at ₹12,000 per share, for an aggregate consideration of up to ₹5,633 crore via the Tender Offer route. Together, the dividend and buyback amount to approximately ₹9,825 crore — representing a 100% payout of FY26 standalone profit after tax.

Mahindra Says April Output Hit by Supplier Shortfalls, Expects Recovery in May

Darshan Nakhwa — Wed, 06 May 2026 18:20:00

Mahindra & Mahindra Ltd’s April production was hit by shortfalls at two suppliers, with the disruption affecting both passenger vehicle and commercial vehicle output, a senior company official said. The automaker expects the situation to improve in May after resolving one supplier issue and creating alternate options for the other.

Speaking during the company’s post-earnings analyst call, Rajesh Jejurikar, Executive Director and CEO of Auto and Farm Sector, said April was affected by issues at two suppliers, which led to a shortfall against the company’s production plan. “We are hoping May will not be like April. April was a huge disappointment for us,” he said.

The supply issue came at a time when Mahindra is seeing strong demand across several SUV nameplates, including the XUV7X0, XUV 3XO, Thar, Scorpio-N and its electric SUV portfolio. The company has guided for mid-to-high-teens growth in SUVs in FY27, supported by capacity expansion and sustained demand.

Jejurikar said the April weakness should also be seen against a high base for Mahindra. In Q1FY26, the company grew 22%, while the rest of the industry declined 4.7%.

According to Jejurikar, April’s shortfall was not an overall capacity issue but was linked to specific supplier constraints.

“It was 2 suppliers on which we had major shortages,” he said. “One is definitely out of it. The 2 we’ve created some options and is out of it,”

Separately, Mahindra said the memory-chip issue is not over and is unlikely to ease quickly, as global demand for artificial intelligence applications continues to tighten supplies.

“I don’t think there is going to be a behind that on that. You just have to stay ahead of that,” Jejurikar said in response to a question on memory chips.

He said demand for memory chips is being driven by large AI applications, and this is likely to keep the market tight for some time.

“That issue is not going to go away for a while because, as you all know, the memory chips are being driven into vast AI applications, and that is not going to slow down for some point of time,” he said.

Mahindra has been trying to secure supply by contracting early, buying larger quantities and building inventory. This strategy, however, comes with a cost impact.

“The DRAMs, we were anticipating this 3, 4 months back, and we have got aggressively into contracting and buying long quantities, whatever we could. There’s a huge inflationary impact in doing that, but we have focused on fortifying our supply so far,” Jejurikar said.

He added that the company will continue to build inventory even if it means buying at higher prices. “It’s really a question of building inventory or buying in the aftermarket, and we are aggressively buying in aftermarket to build inventory,” he said.

The comments underline the supply-chain pressures facing automakers even as demand remains healthy. While earlier disruptions were led by semiconductors and rare-earth materials, the current pressure points include memory chips, supplier-level manpower issues, fuel-linked supply concerns and commodity inflation.

Mahindra said gas availability, which had been difficult earlier, has stabilised in recent weeks and has not caused production disruption. However, manpower shortages at suppliers had emerged as a major issue, first due to gas-related disruption and later because of elections.

“Gas has been very difficult, but has not caused any disruption. We have been able to manage for us and our suppliers, availability of gas so far. Things have stabilized a lot in the last 2, 3 weeks,” Jejurikar said.

“The big disruptor for us was manpower. First because of gas and then because of elections. We are hoping that manpower starts coming back now that elections are over. This is not for us. This is for our suppliers,” he added.

For Mahindra, managing these supply-chain constraints will be critical as it ramps up SUV capacity during FY27. The company has said it will exit the first half of the year with 60,000 units of ICE SUV capacity and 8,000 units of EV capacity, before adding another 10,000 ICE units and 4,000 EV units by the end of the year for products planned in FY28.

Hyundai Motor India Marks 30 years With 13.5 Million Units Sold; Outlines ₹45,000 Crore Future Investment Plan

Arunima Pal — Wed, 06 May 2026 17:58:13

Hyundai Motor India Limited (HMIL) on Tuesday marked its 30th foundation day, reporting cumulative sales of over 13.5 million units since its inception in 1996, including 9.6 million units in India and more than 3.9 million exports to over 150 countries.

The company said it has invested ₹40,700 crore in India to date and outlined plans to invest a further ₹45,000 crore between FY26 and FY30 to expand manufacturing, accelerate electrification, and develop future mobility solutions.

HMIL currently operates manufacturing facilities in Sriperumbudur near Chennai and Talegaon in Pune, with a combined annual production capacity of 9.94 lakh units. The company plans to scale this up to 10.74 lakh units by 2028, reinforcing India’s role as a global manufacturing and export hub within Hyundai Motor Company’s network.

Hyundai said it remains the largest exporter of passenger vehicles from India on a cumulative basis, with exports exceeding 3.9 million units. Key export markets include Saudi Arabia, South Africa, Mexico, Chile, and Peru.

On the domestic front, the company has built a sales network of over 1,500 outlets across more than 1,100 cities, covering 78% of Indian districts. Its aftersales footprint includes 1,675 service touchpoints across 1,025 cities, supported by over 50,000 trained professionals.

HMIL reported an average localisation level of 82%, contributing to domestic supply chain development and foreign exchange savings.

In line with its sustainability goals, the company said all its offices and plants in India are powered by 100% renewable energy under the RE100 initiative. It has also implemented over 350 energy efficiency projects in the past five years and continues to work toward Hyundai Motor Company’s global target of carbon neutrality by 2045.

Through its CSR arm, Hyundai Motor India Foundation, the company has invested over ₹803 crore since 2014, impacting an average of 2.2 million people annually across areas such as education, healthcare, environment, and skill development.

Looking ahead, HMIL plans to introduce 26 new products and variants by FY2030, including a mix of new models, full model changes, and upgrades, as it aims to strengthen its presence in both domestic and global markets.

India's Electric Passenger Vehicle Retail Rises 75% Year-on-Year in April 2026

Angitha Suresh — Wed, 06 May 2026 16:06:36

Electric passenger vehicle (EV) retail in India recorded 23,506 units in April 2026, marking a 4.52% month-on-month increase from 22,490 units in March 2026 and a 75.14% year-on-year rise from 13,421 units in April 2025, according to data released by the Federation of Automobile Dealers Associations (FADA). The data, collated on May 3, 2026, covers 1,463 of 1,466 Regional Transport Offices (RTOs) across the country, with Telangana excluded from the current reporting cycle.

The numbers represent one of the stronger April performances the segment has seen, with month-on-month growth sustained despite April typically being a softer month for automobile retail following the year-end push in March. The fact that sequential growth held positive is being viewed by industry observers as an indication of underlying demand rather than a calendar-driven spike.

The segment's share of total passenger vehicle retail stood at 5.8% in April 2026, up from 5.1% in March 2026 and significantly higher than the 3.7% recorded in April 2025. The consistent upward movement in penetration rate over a twelve-month period points to a structural shift in consumer preference, even if the absolute numbers still leave considerable room for growth relative to overall passenger vehicle volumes.

Market Leaders Consolidate Their Positions

Tata Motors Passenger Vehicles Ltd retained its position at the top of the electric passenger vehicle segment by a considerable margin, retailing 8,543 units in April 2026. This represented a 3.51% increase over the 8,253 units recorded in March 2026 and a substantial 77.17% jump compared to 4,822 units in April 2025. Tata Motors, which was among the earliest manufacturers to commit seriously to an electric-first product strategy in the mass market, continues to benefit from an established lineup and a wide service and charging network that provides some reassurance to first-time EV buyers.

Mahindra & Mahindra Ltd held the second position with 5,413 units, up 3.24% from 5,243 units in March 2026 and 63.98% higher than the 3,301 units it retailed in April 2025. The company's electric SUV offerings have found traction particularly in urban markets, and its year-on-year growth trajectory suggests its newer models have successfully converted consideration into purchases.

JSW MG Motor India Pvt Ltd came in third with 5,006 units, recording a marginal month-on-month decline of 2.63% from 5,141 units in March, though it remained 32.54% above the 3,777 units retailed in April 2025. The company's EV portfolio, which spans multiple price points, has helped it maintain a consistent presence in the top three, though the slight month-on-month softening may reflect some post-March normalisation in retail activity.

Together, the three leading manufacturers — Tata Motors, Mahindra & Mahindra, and JSW MG Motor — accounted for approximately 80% of total electric passenger vehicle retail in April 2026, underlining the degree to which the segment remains concentrated at the top even as new entrants expand the competitive landscape.

New Entrants and Mass-Market Players Gather Momentum

Among the more notable developments in April 2026 was the performance of manufacturers that either entered the EV segment recently or significantly scaled up their volumes. VinFast Auto India Pvt Ltd and Maruti Suzuki India Ltd, both of which have no recorded retail figure for April 2025 — indicating either a negligible presence or no commercial launch in the EV segment at that point — posted 1,232 and 1,231 units respectively in April 2026.

VinFast's April 2026 tally represented a 78.29% month-on-month increase over the 691 units it retailed in March 2026, making it one of the fastest-growing manufacturers in the segment on a sequential basis. The Vietnamese automaker, which entered the Indian market with a focus on competitive pricing and a direct sales model, appears to be gaining traction relatively quickly within a short retail window.

Maruti Suzuki India Ltd, the country's largest passenger vehicle manufacturer by overall volume, reported 1,231 units in April 2026, up 29.72% from 949 units in March 2026. The company's entry into the electric passenger vehicle space was long-anticipated given its dominant position in the broader market, and early retail data suggests it is building momentum, though it remains well behind the top three in absolute numbers.

Hyundai Motor India Ltd retailed 516 units, a 8.40% month-on-month increase from 476 units in March 2026. However, the figure represents a 30.92% decline compared to the 747 units it sold in April 2025, suggesting some loss of share in a segment that has grown considerably around it. BYD India Private Limited posted 469 units, growing 13.29% month-on-month from 414 units in March and 17.84% year-on-year from 398 units in April 2025. The Chinese manufacturer continues to operate in the premium end of the mass-market EV space and has maintained steady, if unspectacular, growth.

Premium and Luxury Segment Shows Divergent Trends

The premium and luxury EV segment presented a more mixed picture in April 2026, with some manufacturers recording strong year-on-year growth even as monthly figures fluctuated.

Kia India Private Limited retailed 342 units in April 2026, down 25.33% from 458 units in March 2026, but posting a striking 905.88% increase year-on-year compared to just 34 units in April 2025. The dramatic year-on-year figure is largely a reflection of the low base from which the comparison is made, but it does indicate that Kia's electric offering has established a firmer retail presence over the past twelve months.

BMW India Pvt Ltd sold 300 units in April 2026, a 31.35% decline from 437 units in March 2026, though the year-on-year comparison remains strongly positive at 108.33% over the 144 units recorded in April 2025. The monthly dip likely reflects the concentration of luxury vehicle purchases around the financial year-end in March, a pattern that commonly results in softer April numbers for premium brands.

Mercedes-Benz AG retailed 104 units in April 2026, a 7.22% increase over 97 units in March 2026 and a 19.54% gain over the 87 units it posted in April 2025. For a manufacturer operating at the very top of the price spectrum, its consistency across months is notable.

Volvo Auto India Pvt Ltd sold 41 units, recording the steepest month-on-month growth rate among all manufacturers at 86.36% over the 22 units it retailed in March 2026, though it remained 6.82% below its April 2025 figure of 44 units.

Tesla India Motors and Energy Pvt Ltd retailed 43 units in April 2026, a 12.24% decline from 49 units in March 2026. With no April 2025 comparable available, the year-on-year picture remains incomplete, though the month-on-month trend warrants attention given the brand's global profile and relatively modest Indian retail volumes to date.

Stellantis Automobiles India Pvt Ltd posted 25 units in April 2026, declining 16.67% month-on-month from 30 units in March and 50.98% year-on-year from 51 units in April 2025, making it one of the few manufacturers to record a contraction on both timeframes. The residual category of other manufacturers collectively retailed 241 units, up 4.78% month-on-month and a sharp 1,406.25% year-on-year, though the latter figure is distorted by a very low base of 16 units in April 2025.

India's electric passenger vehicle segment has been on a consistent upward trajectory over the past year, supported by an expanding product portfolio across multiple price points, a gradually improving public charging infrastructure, and government-level policy support. The PM Electric Drive Revolution in Innovative Vehicle Enhancement scheme, along with state-level incentives in several large markets, has provided some demand-side support, though industry participants have noted that underlying product improvement and price competitiveness have been equally important drivers of adoption.

The near-doubling of retail volumes on a year-on-year basis across multiple consecutive months indicates that growth is not isolated to a single quarter or a one-time product launch effect. The entry of established mass-market players such as Maruti Suzuki and VinFast into meaningful retail volumes has also broadened the competitive field, which is expected to intensify pressure on pricing and features over the medium term.

At 5.8%, the electric passenger vehicle penetration rate in India remains well below that of leading EV markets such as China and Norway, as well as some European nations. However, the rate of change — from 3.7% in April 2025 to 5.8% in April 2026 — within a single year suggests the segment is moving through its adoption curve at a pace that is beginning to attract more serious attention from manufacturers who had previously maintained a wait-and-watch posture.

FADA collects retail registration data directly from RTOs, making it a more accurate reflection of actual consumer purchases than wholesale dispatch data reported by manufacturers, which can be influenced by inventory build-up at the dealer level.