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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 Incorporates Teesta Renewable Energy SPV, Takes 26% Stake In New Power Venture

Autocar Professional Bureau — Wed, 13 May 2026 11:01:31

Tata Motors has incorporated a special purpose vehicle (SPV), Teesta Renewable Energy Private Limited (TREPL), to expand its involvement in renewable energy and captive power generation. The company disclosed the development through a regulatory filing dated May 12, 2026.

The automaker will hold a 26 per cent equity stake in the newly formed entity, thereby making TREPL an associate company of Tata Motors. Welspun Renewable Energy Private Limited has been identified as the holding company of the SPV.

According to the filing, TREPL has been incorporated in India and will operate in the power sector. Its business activities will include solar and wind power generation, along with captive generation and sale of electrical energy.

The filing did not specify the scale of the proposed renewable energy projects or provide timelines for commercial operations. However, the structure suggests the SPV could support Tata Motors’ broader energy requirements through captive renewable power sourcing, while also aligning with ongoing industrial decarbonisation efforts across the automotive sector.

Tata Motors stated that the initial capital subscription in the SPV will be made in cash, with the shares subscribed at par value at the time of incorporation. The company also noted that no governmental or regulatory approvals were required specifically for the incorporation process

Tata Motors Incorporates Teesta Renewable Energy SPV, Takes 26% Stake In New Power Venture

Autocar Professional Bureau — Wed, 13 May 2026 11:01:31

Maruti Suzuki Reaches 3 Million Rail Dispatches Milestone

Angitha Suresh — Wed, 13 May 2026 10:58:02

Maruti Suzuki India Limited announced on Wednesday that it has cumulatively dispatched over 3 million vehicles through railways, a threshold the company crossed in March 2026. The milestone marks a notable point in the automaker's decade-long effort to shift its outbound logistics away from road transport and toward rail, a move the company frames as central to reducing its carbon footprint and easing road congestion.

The progression from 2 million to 3 million cumulative rail dispatches took 21 months, shorter than the 2 years and 7 months it took to move from 1 million to 2 million, and significantly shorter than the 7 years and 8 months it took to reach the first million after rail operations began in 2014. The company said this acceleration reflects the expansion of its rail infrastructure and increased operational capacity in recent years.

The share of rail in the company's total outbound vehicle dispatches has grown from 5% in FY 2014-15 to 26.5% in FY 2025-26, representing a more than fivefold increase over the period. According to the company, rail-based dispatch volumes have grown ninefold since 2014 in absolute terms. Maruti Suzuki said it has committed over ₹13,720 million toward rail logistics infrastructure, covering in-plant railway sidings at its Hansalpur and Manesar manufacturing facilities, rail yards at logistics hubs, procurement of specialized automotive rakes, and supporting infrastructure upgrades.

Maruti Suzuki is currently the only passenger vehicle manufacturer in India with operational railway sidings at two of its plants. The Hansalpur siding in Gujarat, which began operations in March 2023, was formally inaugurated by Prime Minister Narendra Modi virtually in March 2024. In February 2026, the siding was registered as the world's first Modal Shift Transportation Project under the Verified Carbon Standard program of Verra, an international carbon credit registry and certification body. This recognition ties the facility's operations to quantifiable carbon reduction metrics under a globally accepted standard.

The Manesar siding in Haryana, described as India's largest automobile in-plant railway siding, was inaugurated in June 2025 by Union Minister for Railways Ashwini Vaishnaw and Haryana Chief Minister Nayab Singh Saini. The facility crossed 1 lakh vehicle dispatches by March 2026. Together, the two sidings have a combined annual dispatch capacity of 750,000 vehicles.

The rail network services more than 600 cities across the country through 22 hubs, operating on a dedicated hub-and-spoke model. Vehicles manufactured at the company's Gurugram, Manesar, and Gujarat plants — including the Swift, Baleno, WagonR, Brezza, Grand Vitara, Fronx, Dzire, Ertiga, Alto, Celerio, XL6, Eeco, and Super Carry — are transported through this network. The rail infrastructure also connects to the export ports of Mundra and Pipavav, extending its utility beyond domestic distribution.

In October 2025, the company transported its first batch of vehicles by rail to the Anantnag terminal in the Kashmir valley, marking an extension of rail-based delivery to a region that had not previously been part of the network. The development was notable given the geographical and logistical challenges associated with freight movement to that area.

Managing Director and CEO Hisashi Takeuchi said the company aims to raise the share of rail-based dispatches to 35% by FY 2030-31 and plans to add an in-plant siding at its upcoming Kharkhoda facility in Haryana, which is currently under development. He credited the government's PM GatiShakti National Master Plan — a multimodal connectivity initiative launched in 2021 — as providing the enabling framework for the company's rail logistics expansion.

Maruti Suzuki first entered rail logistics in May 2013, when it became India's first automobile manufacturer to obtain an Automobile Freight Train Operator (AFTO) license, which allows private operators to run freight trains on Indian Railways' network. The first Flexi-deck auto wagon rake — a specialized rail wagon designed to carry multiple vehicles on two levels — was flagged off in March 2014. By July 2022, the company and its AFTO partners had inducted 40 such rakes. The company reached 1 million cumulative rail dispatches in November 2021 and 2 million in June 2024.

The broader context for this shift is India's push to increase the share of freight moved by rail, which is generally more fuel-efficient and less carbon-intensive per tonne-kilometre than road transport. The automobile sector has historically relied heavily on car carriers operating on highways, and Maruti Suzuki's scale — it accounts for roughly two-fifths of India's passenger vehicle sales — makes its logistics choices consequential for overall freight patterns in the sector.

Praj, ARAI Deepen Diesel-Isobutanol Trials for Vehicle Compatibility

Autocar Professional Bureau — Wed, 13 May 2026 09:21:29

Early chassis dynamometer tests suggest a 5% blend delivers measurable emission cuts with a minimal 1 to 2% impact on fuel efficiency.

India's auto industry heavyweights, which include commercial vehicle OEMs, testing agency ARAI, the Council of Scientific and Industrial Research (CSIR), oil marketing companies, and others, are moving to break a decades-long deadlock in diesel decarbonization by launching a nationwide validation program for isobutanol blending.

Beginning this June, the Automotive Research Association of India (ARAI) will lead a 10-month technical assessment alongside bioenergy tech supply major Praj Industries to determine if isobutanol can serve as a seamless "drop-in" replacement for standard diesel. With nearly all major OEMs expected to participate, the initiative signals a shift away from problematic diesel-blending trials, focusing instead on a molecule that promises better stability and safety for the nation's critical transport fleet.

The experiments continue.

To understand why isobutanol is causing a stir, one must look at the failures of ethanol-diesel blending. For years, engineers tried to force ethanol into diesel tanks, but the chemistry refused to cooperate. Ethanol is a two-carbon alcohol with a "polar" structure, meaning it doesn't like to mix with the oily consistency of diesel. Without expensive chemical binders, the two fuels simply separate in the tank.

More critically, ethanol is a fire hazard in a diesel ecosystem. Its "flashpoint"—the temperature at which it catches fire—is a mere 12 to 13 degrees Celsius. Diesel, by contrast, is regulated to a minimum of 35 degrees. This difference puts them in entirely different petroleum safety classes, making shared storage and transport a logistical nightmare. Even with proprietary binders, OEMs were rarely comfortable going beyond a 5% blend before combustion issues emerged.

Enter Isobutanol: The Four-Carbon Fix

Praj Industries, the Pune-based bioenergy giant, has spent the last two years building the technical bridge that ethanol couldn't cross. As a four-carbon alcohol, isobutanol behaves much more like diesel. Its flashpoint sits between 27 and 30 degrees Celsius, which allows it to stay within the same "Class B" petroleum category as diesel. This means the existing network of tankers and pumps doesn't need a multi-billion-dollar overhaul.

Initial investigations found that isobutanol remained stable at 10% blends for over 40 days without any separation. Early dynamometer trials on standard Indian driving cycles showed that a 5% blend slashed emissions with a negligible 1 to 2% impact on fuel mileage, a trade-off most fleet operators would take in a heartbeat.

Moving from Lab to Road

The upcoming ARAI-led exercise is comprehensive. It will test everything from engine durability and material compatibility (ensuring the fuel doesn't eat through rubber seals) to particulate emissions across almost every major OEM in the country.

Oil majors are already showing commitment to the initiative. BPCL has been quietly testing isobutanol for two years, recently completing a three-month trial in stationary Cummins engines. They are now committing significant capital to validate data across 33 different vehicle types in India. However, as Anshul Gupta of BPCL noted, technical success is only half the battle; OMCs cannot blend at scale without a formal government mandate.

Retrofitting the Future

There is a persistent myth that you have to turn ethanol into isobutanol. In reality, the production shift happens earlier in the process. The debate has been whether India’s existing 1G ethanol plants, the ones processing corn and sugarcane, can be converted.

The emerging consensus points to a "hybrid" model. Industry leaders suggest that 1G plants can be retrofitted to produce both ethanol (for gasoline) and isobutanol (for diesel) simultaneously from the same ton of feedstock. This dual-track production could maximize the utility of India's agricultural surplus.

To sweeten the deal, the government is looking at existing financial vehicles. The Scheme to Enhance Ethanol Distillation Capacity, which offers interest subventions of 6% or 50% of the bank rate for retrofitting existing facilities, could potentially be applied to isobutanol retrofitting. Similarly, the PM JI-VAN Yojana, aimed at innovative biofuel pathways, might provide the necessary financial cushion for commercial-scale projects.

An Uncertain But Necessary Horizon

Despite the optimism, the market remains in its infancy. Bharati Balaji of the All India Distillers’ Association (AIDA) cautioned that while the emission reductions are impressive when mixed correctly, it is too early to set firm commercial timelines.

However, for Praj President Atul Mulay, the Middle East crisis and global energy volatility have created a "new normal" where India can no longer afford to wait.

As ARAI begins its 10-month countdown this June, the automotive industry isn't just looking at a new fuel; it’s looking at the potential end of the diesel-blending deadlock. For OEMs and fleet owners, the "Next Frontier" is finally coming into view.

Praj, ARAI Deepen Diesel-Isobutanol Trials for Vehicle Compatibility

Autocar Professional Bureau — Wed, 13 May 2026 09:21:29

Early chassis dynamometer tests suggest a 5% blend delivers measurable emission cuts with a minimal 1 to 2% impact on fuel efficiency.

The experiments continue.

Enter Isobutanol: The Four-Carbon Fix

Moving from Lab to Road

Retrofitting the Future

An Uncertain But Necessary Horizon

However, for Praj President Atul Mulay, the Middle East crisis and global energy volatility have created a "new normal" where India can no longer afford to wait.

Govt Approves Setting Up 4,874 EV Chargers Worth Rs 503 Crore

Autocar Professional Bureau — Tue, 12 May 2026 19:20:21

The Ministry of Heavy Industries organized a national conference in Bengaluru on May 12, 2026, to discuss the deployment of electric vehicle charging infrastructure. During the event, Union Minister for Heavy Industries and Steel H.D. Kumaraswamy announced the approval of proposals worth Rs 503.86 crore for installing 4,874 electric vehicle chargers nationwide under the PM E-DRIVE scheme. This includes a specific allocation of Rs 123.26 crore for 1,243 chargers in Karnataka.

The approved charging infrastructure will be deployed across several states including Rajasthan, Andhra Pradesh, Uttar Pradesh, Gujarat, Kerala, Telangana, Karnataka, and Tamil Nadu. Central public sector enterprises such as Hindustan Petroleum Corporation Limited, Indian Oil Corporation Limited, and Bharat Petroleum Corporation Limited are among the key implementing agencies for these projects. Ministry officials noted that the charging network will support electric two wheelers, three wheelers, cars, buses, and trucks.

The charging infrastructure expansion is part of the broader PM E-DRIVE initiative which commands a total financial outlay of Rs 10,900 crore. The scheme allocates Rs 2,000 crore specifically for public charging infrastructure. It also provisions Rs 3,679 crore towards demand incentives to support the adoption of 24.79 lakh electric two wheelers and 3.16 lakh electric three wheelers. Additionally, Rs 4,391 crore has been earmarked for the deployment of 14,028 electric buses across the country.

The government has also allocated Rs 780 crore for the modernization of vehicle testing agencies under the heavy industries ministry. The Bengaluru conference was attended by senior government officials from various states and representatives from original equipment manufacturers and charge point operators to coordinate standardisation and deployment strategies for the growing electric mobility ecosystem.

Puri Signals Fuel Price Hike as OMCs Losing Rs 1,000 Crore Daily

Kiran Murali — Tue, 12 May 2026 19:09:14

India may eventually have to consider fuel price increases if global crude oil prices remain elevated and losses of oil marketing companies keep mounting, according to Minister of Petroleum and Natural Gas Hardeep Singh Puri said.

After a strong demand in FY26 following the GST cut, the automotive industry is now cautiously optimistic about short term growth as any potential increase in fuel price could result in inflation and impact demand.

While speaking at an event organised by Confederation of India Industries, Puri said state-run oil marketing companies are under severe financial strain as crude prices surged amid prolonged geopolitical tensions and supply disruptions linked to the Strait of Hormuz.

According to him, Puri said oil companies were currently losing around Rs 1,000 crore per day as crude oil prices climbed from about $65 a barrel to nearly $115. “If you look at the fact that oil companies are losing what? Rs 1,000 crores every day,” he said. “How long can you keep it like this?”

The minister said the financial burden on refiners and fuel retailers could become unsustainable if high prices persist.

“Frankly, that is something that worries me,” Puri said when asked how long oil companies could continue absorbing losses. “At some stage, the government will have to take a view on that.”

There have been reports and speculation that the government may raise fuel prices after the recent state elections. Responding to the speculation, Petroleum and Natural Gas Minister Hardeep Singh Puri said fuel price revisions were not linked to elections.

“Somebody said elections are over, now fuel prices will suddenly go up. How many elections have there been in the last four years? The last time prices were raised was in 2022. Since then, there have been general elections and several state elections,” he said.

“It is not my case that prices will never go up. I am saying the two are unrelated,” the minister added.

India, the world’s third-largest oil importer and consumer, has kept petrol and diesel prices largely unchanged despite volatility in global crude markets.

The government has said it wants to protect consumers from inflationary pressures, especially after the pandemic and recent geopolitical conflicts.

At the same time, he stressed there was no immediate supply concern, saying India had adequate stocks of crude oil, LNG and LPG, and that fuel supplies across the country remained uninterrupted despite the ongoing crisis.

AIMTC Urges Maharashtra Government to Scrap Border Check Posts Amid West Asia Fuel Concerns

Autocar Professional Bureau — Tue, 12 May 2026 19:03:16

Transport industry representatives formally requested Maharashtra Chief Minister Devendra Fadnavis to immediately abolish state border check posts. In a letter dated May 12, 2026, Bal Malkit Singh, Advisor and Former President of the All India Motor Transport Congress, highlighted that the removal of these physical barriers aligns with the recent national appeal by Prime Minister Narendra Modi to conserve fuel. The request comes in response to the ongoing geopolitical conflict in West Asia, which threatens to impact fuel prices, imports, and the broader economy.

The communication outlines that border check posts create a major bottleneck in the logistics sector, causing commercial vehicles to face unnecessary stoppages despite the implementation of the Goods and Services Tax and digital enforcement systems. According to industry estimates cited in the letter, an idling heavy commercial vehicle consumes approximately two to three litres of diesel per hour. With trucks waiting in long queues during peak periods, this results in the annual wastage of lakhs of litres of fuel, thereby increasing foreign exchange losses and vehicular pollution. Furthermore, the resulting supply chain delays negatively impact the cost of essential commodities and overall industrial competitiveness in Maharashtra.

Singh noted that the state government has already completed almost all formalities regarding the abolition of these check posts. Termination notices have been issued to the concerned concessionaire, and the necessary digital monitoring systems are currently available for deployment. The road transport fraternity has urged the state leadership to make the formal announcement to provide relief to the transport sector and improve national supply chain efficiency. Copies of the representation were also marked to the state transport ministers and the Transport Commissioner.

JBM Auto Reports 13.6% Profit Jump in Q4FY26

Shahkar Abidi — Tue, 12 May 2026 18:23:52

JBM Auto Limited closed the 2026 fiscal year, reporting a 13.60% year-on-year increase in net profit for the fourth quarter. The company’s latest financial disclosure reveals an upward trajectory, driven by strong performances across its diverse business divisions and an increasingly commanding presence in the electric vehicle (EV) sector.

For the quarter ended March 31, 2026, JBM Auto posted a net profit of Rs 74.98 crore, up from Rs 66.00 crore in the same period last year. This bottom-line growth was supported by a 12.55% rise in total sales, which reached Rs 1,852.27 crore.

JBM Auto’s first move toward green mobility is yielding substantial market share. The company now controls a staggering 79% of the electric tarmac bus market (specialized shuttle buses used at airports) and more than 50% of the intercity electric luxury coach segment.

This dominance is being bolstered by aggressive government procurement. During the quarter, 200 JBM electric buses were flagged off by Prime Minister Narendra Modi for service in Guwahati, Nagpur, and Bhavnagar under the PM e-Bus Sewa Scheme.

PTC Bets on India’s Auto Growth, Sees Opportunity in EVs, Digital Engineering

Kiran Murali — Tue, 12 May 2026 18:04:35

Software and digital engineering solutions provider PTC sees India as a key growth market for the automotive sector, with rising electric vehicle adoption and increasing demand for faster and more cost-effective product development creating fresh opportunities for the company, according to its India Vice President Upkar Saini.

India is already the world’s third-largest automobile market by volume and has significant headroom for EV penetration, especially in passenger vehicles and SUVs, Saini said during a company event.

“We are really poised towards an extremely strong growth,” Saini said, but adding that India still has a long road ahead in EV adoption compared with markets such as China and western economies.

He said the company sees strong potential as automakers focus on affordable mobility, faster product development and cost efficiencies.

Saini said EV adoption in India has already gained traction in the two and three-wheeler segments, while passenger vehicles remain a major opportunity area.

He added that automakers are increasingly looking to integrate engineering, manufacturing and services instead of operating in silos.

PTC provides product lifecycle management, engineering and manufacturing software solutions across sectors including automotive, aerospace and defence, industrial manufacturing, med-tech, electronics and retail.

The company boasts of working with 90% of Fortune 500 automotive original equipment manufacturers globally.

Saini said PTC’s key differentiator is its ability to create a seamless data foundation across the product lifecycle, helping companies integrate engineering, manufacturing and service functions on a single platform.

The company also focuses on open architecture systems, multi-CAD interoperability and organisational change management to support digital transformation projects.

Massachusetts-based PTC, which is listed in NASDSQ has a market capitalisation of about $32 billion and annualised revenue of around $2.48 billion, with over 7,500 employees globally. India accounts for nearly 32% of its workforce and also houses one of its largest research and development centres in Pune.

Tractor Industry Opens FY27 on Strong Note, Domestic Sales Up 27% in April

Darshan Nakhwa — Tue, 12 May 2026 17:53:19

India’s tractor industry opened FY27 on a strong note, with total wholesale volumes rising 27.1% year-on-year to 1,14,725 units in April 2026, supported by steady farm demand, healthy rural cash flows, and the carryover impact of affordability gains from GST rationalisation.

According to data from the Tractor and Mechanization Association, domestic tractor sales rose 26.8% year-on-year to 1,05,021 units in April, compared with 82,839 units in the year ago period. Exports outpaced domestic growth, rising 30.4% to 9,704 units from 7,441 units. Overall production increased 18.1% year-on-year to 1,10,261 units.

On a sequential basis, however, industry momentum was more measured. Total sales grew 2% from March’s 1,12,468 units, while domestic sales rose 1.8% and exports increased 4.6%. Production was almost flat sequentially, rising 0.3% from March.

The country’s largest tractor maker, Mahindra & Mahindra Ltd.’s Farm Equipment Business (FEB), reported a 20% year-on-year increase in domestic tractor sales, reaching 46,404 units compared with 38,516 units a year earlier. Its exports rose 30% to 2,007 units from 1,538 units in April 2025.

Veejay Nakra, President of Farm Equipment Business, Mahindra & Mahindra Ltd, said, “This strong performance was delivered despite the absence of Chaitra Navratri in April this year, unlike last year when April included seven Navratri days.”

Escorts Kubota Ltd. sold 10,857 tractors in April 2026, marking a 24.4% increase from 8,729 units in the same month last year. Domestic sales accounted for the bulk of the volume, rising 27.6% to 10,398 units, while exports declined by 21% to 459 units from 581 units.

Sonalika Tractors recorded sales of 16,223 units in April 2026, up 36% on year. The company attributed the growth to continued demand for mechanisation, supported by factors such as higher foodgrain production and GST-led cost adjustments in the agricultural sector.

The wholesale momentum was also reflected in retail sales in April. Tractor retails rose 23.22% year-on-year to 75,109 units in April, making tractors the fastest-growing vehicle category in the month, according to the Federation of Automobile Dealers Associations (FADA). FADA said tractor demand remained anchored in healthy farm economics and Bharat momentum.

FY27 Outlook

Despite the strong start, tractor makers expect growth to moderate in FY27 because of the high base created in FY26 and the cyclical nature of rural demand.

Mahindra & Mahindra expects tractor industry growth to moderate to mid-single digits in FY27, after a strong FY26 base. Rajesh Jejurikar, Executive Director and CEO for Auto and Farm Sector at M&M, said the tractor business remains cyclical, but the company continues to manage margins within a defined band.

M&M has also taken corrective steps in its international farm equipment business, including exiting select markets where profitability was under pressure. “With these changes, we see a path to profitability,” Jejurikar said.

The company, however, said the outlook remains subject to geopolitical developments, which could influence demand, supply chains and input costs.

Escorts Kubota has guided for a broadly flat tractor industry in FY27, with movement of plus or minus 2-3%. The company expects the first half to see some growth because of last year’s weak base, but the second half could be tougher. The comparison base of 11.6 lakh units is the highest the industry has ever produced, while the GST tailwind has now normalised into baseline pricing.

Sonalika has also indicated that geopolitical conditions, supply-chain impact and rising input costs could moderate farmer affordability and market sentiment in the near term. Evolving weather patterns will remain a key factor to watch for future demand trends.

For now, April numbers show that rural demand remains resilient. But after a strong FY26 and a robust start to FY27, the industry’s growth trajectory will depend on monsoon progress, crop realisations, input costs and whether the post-GST demand lift can sustain beyond the first half.

LANXESS and HPCL Partner to Expand Aviation and Industrial Lubricant Supply in India

Autocar Professional Bureau — Tue, 12 May 2026 17:09:44

Specialty chemicals company LANXESS and Hindustan Petroleum Corporation Limited (HPCL) entered into a memorandum of understanding on May 12, 2026, to expand the availability of aviation and industrial lubricants. The agreement targets the Indian market and neighboring SAARC countries to provide technologically advanced lubricant solutions for specialized sectors.

Under the terms of the partnership, both entities will explore marketing and business development opportunities across short, medium, and long term horizons. The collaboration is intended to provide broader local access to premium LANXESS branded products, including those used in critical industrial segments. LANXESS produces a range of synthetic basestocks and additives under various brands, including Royco and Anderol, while HPCL is currently the largest distributor of industrial and automotive lubricants in India.

Neelanjan Banerjee, Senior Vice President and Global Head of Lubricant Additives at LANXESS, stated that the partnership aims to set quality benchmarks while accelerating growth in the domestic aviation market. Srinivas Ch, Executive Director of Lubes at HPCL, noted that the collaboration combines LANXESS’ technical expertise with HPCL’s existing market presence to drive efficiency across the industrial sector.

Indian Freight Rates Soften in April as Industrial Activity Moderates

Dev Vadchhedia — Tue, 12 May 2026 16:52:02

Freight rates across major Indian trucking corridors witnessed a decline in April 2026, primarily due to a slowdown in industrial and manufacturing dispatches following the fiscal year end momentum in March. The Crisil Pan-India Freight Index (CRISFrex) showed a marginal dip to 100.5 during the month, reflecting subdued cargo movement and high fleet availability that intensified competitive pricing pressures on long haul routes.

The logistics sector continued to navigate global supply chain disruptions linked to the West Asia conflict, which has impacted trade flows and weighed on overall cargo sentiment. While broader industrial freight remained soft, select segments including auto carriers and agricultural products demonstrated resilience, supported by healthy seasonal demand and steady cargo movement.

Despite the softening of freight rates, transport operators are facing sustained pressure on operating margins due to elevated costs for tyres, maintenance, and wages. While domestic diesel prices have remained steady at a baseline of Rs 90.03 per litre in Mumbai, the ongoing geopolitical conflict exerts upward pressure on crude oil. Industry analysis indicates that for every Rs 5 per litre increase in diesel prices, transporters may require a freight rate revision of 2.5 to 2.8 percent to maintain baseline profitability.

Data from FASTag daily transaction volumes mirrored the subdued activity levels, showing only a marginal sequential recovery in April after a sharp decline in March. Fleet utilisation levels also softened during the month, following a brief period of improvement earlier in the year. Beyond global factors, local election activity in markets such as Tamil Nadu, West Bengal, and Assam contributed to temporary operational disruptions across select freight corridors.

LetzRyd Names Ambuj Mishra as New Head of Product

Autocar Professional Bureau — Tue, 12 May 2026 16:38:44

Mobility infrastructure platform LetzRyd announced the appointment of Ambuj Mishra as its Head of Product on May 12, 2026. In his new role, Mishra is tasked with leading the company’s product strategy and execution, specifically focusing on the development of an artificial intelligence-led fleet operating system. The platform is designed to automate workflows and optimize supply-demand matching to address fragmentation and low utilization in urban transport.

Mishra brings a decade of experience in product management to the startup, having previously held leadership positions at Flipkart-Cleartrip where he managed booking automation and growth systems. His career includes roles at organizations such as Ajio, UpGrad, and Flyhomes, focusing on platform strategy and end to end product lifecycles. He holds a Master of Science by Research degree in Electronic System Design from IIIT Bangalore.

Tarun Jain, Founder and CEO of LetzRyd, stated that the appointment aligns with the company’s goal of building a digital infrastructure layer to organize mobility supply. The company intends to leverage data and automation to create a more integrated mobility network and improve unit economics for fleet operators. Mishra noted that his immediate focus will be on reducing operational friction and building scalable systems that continuously improve through network data.

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 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.

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.

How India MATLAB Expo Grew with Auto’s Software Shift

Shahkar Abidi — Tue, 12 May 2026 15:15:26

India’s auto industry has spent the last 15 years racing from mechanical dominance to software overload. BS4 gave way to BS6, electric drivetrains arrived in force, and automated driving moved from conference slides to regulatory drafts. In that same window, one constant in engineering toolchains has quietly reshaped itself: MATLAB and Simulink, and with them the India MATLAB Expo that has grown into a key metric of the sector’s software ambitions.

From Combustion Controls to Software-defined Cars

When the first India MATLAB event ran in 2010, most automotive code written on the platform ended up in engines and transmissions. “Fifteen years ago, the automotive industry was majorly using electronics and software for their powertrain controls, for engine-related controls, for transmission controls, and so on. That mechanism is model-based design,” recalls Prasanna Deshpande, Manager, Application Engineering at MathWorks India. Engineers built mathematical models of engines and gearboxes and tuned controllers in simulation.

Today, the same tools sit much closer to the centre of the vehicle architecture conversation. As automakers pursue software-defined vehicles, where application software is decoupled from hardware and over-the-air updates are expected, MATLAB and Simulink are used to sketch system architectures, validate service-oriented designs, and coordinate software and data flows across domains. The journey mirrors the industry’s own evolution from a few standalone ECUs to fleets of controllers backed by high-performance compute platforms and GPUs running ADAS and automated driving algorithms.

Expo as a Mirror of the Auto’s Software Turn

The 15th India MATLAB Expo in Bangalore, still the event’s home base after occasional forays into multi-city formats, reflects how its remit has broadened. What began as a user conference for control engineers is now pitched as a platform where industry, academia, and startups compare notes on AI, electrification, virtualisation, and software-defined vehicles. “Technology is transforming at a very rapid pace, be it in the form of AI, electrification, automotive, aerospace… customers are continuously interested to know what are the recent developments and how it can benefit them,” says Vijayalayan R, Senior Manager, Application Engineering at MathWorks India.

The Expo’s audience has diversified, too. The core remains R&D and engineering design teams, but the personas now include system architects, software developers working on embedded controls and AI, and data engineers charged with extracting insights from vehicle and fleet data. For many OEMs, the event doubles as a forum to understand how peers are using virtual vehicles, virtual sensors, and digital twins to compress test cycles and avoid late-stage surprises.

Model-based Design Becomes a Digital Thread

Vijayalayan describes a shift from MBD as an isolated activity to models acting as a digital thread that stitches together requirements, design, testing, and field data. In a classic V-cycle, many software defects only surface during hardware-in-loop or full-vehicle testing, when fixing them is slow and costly. By contrast, “shift left” practices move as much verification as possible to the early stages, using models as virtual prototypes to check feasibility and behaviour while requirements are still being written. The aim, he says, is to “front-load most of the activities that actually happen in the test track to the desktops,” so teams can get it “right the first time.”

From Statistics to AI, and On to GenAI

MATLAB’s analytics stack has also expanded in lockstep with the data deluge hitting automakers. Early statistical and neural-network toolboxes have been re-cast as Statistics and Machine Learning Toolbox and Deep Learning Toolbox, reflecting the leap from basic data analysis to production AI deployed on vehicles and in the cloud. Those tools underpin virtual sensors that replace or augment physical devices – for example, using data-driven models instead of costly emission after-treatment sensors now mandated by BS6 and future BS7 norms.

On the newest frontier, MathWorks is weaving generative AI into its workflows, albeit with caution. The company launched MATLAB Copilot in 2025, followed by Simulink Copilot and Polyspace Copilot in April 2026, as embedded assistants that explain models, annotate scripts, and help track down bugs. “It’s like an interactive AI assistant that can help the engineers to explore, explain the models, explain the scripts, and debug everything,” says Vijayalayan. Deshpande stresses that in an industry full of safety-critical functions and tightly regulated user experiences, GenAI must remain a “productivity and efficiency multiplier” wrapped around “trusted tools” that perform the core work.

The newly introduced agentic toolkit extends that logic by allowing AI agents – running on whichever large language model a customer prefers, to call into MATLAB and Simulink through defined skills and plug-ins. “We are in the era of agentic workflows, where AI agents help in automating multiple-step tasks… Our goal is to enable the seamless integration of AI agents with MATLAB Simulink,” Vijayalayan says. In practice, that could mean agents that generate test benches, run design-of-experiments campaigns, or refactor model structures, leaving engineers to focus on architecture and interpretation.

Electrification: Batteries, Twins and Range Anxiety

If there is one technical area where MATLAB’s evolution is particularly visible, it is batteries. Indian operating conditions, heat, dust, and load cycles, have exposed the limits of naïve pack designs and shallow BMS strategies. Deshpande points out that engineers do not really “control” batteries; they manage them, working around electrochemistry that is highly sensitive to temperature and current. Keeping thousands of cells within safe thermal and electrical bounds, and preventing a single runaway cell from cascading, is the central BMS challenge.

Simscape Battery, a domain-specific library within the Simscape family, is MathWorks’ answer to that modelling burden. Engineers can pick from established cell types such as pouch and prismatic, assemble modules and packs, add cooling hardware, and quickly evaluate thermal performance and control strategies in one-dimensional simulations. On top of that, supervisory logic for detecting low voltage, high temperature, or other fault conditions is built in Stateflow, a graphical environment for state machines and decision logic. Because temperatures cannot be measured at every cell, MATLAB’s estimation algorithms, including Kalman filters, infer internal states from limited sensor data.

As EV fleets grow, those models evolve into digital twins, updated using operational data to reflect ageing and real-world stress. That enables more accurate range predictions, better charging recommendations, and, potentially, new services such as battery-as-a-service or cloud-based battery health offerings. For consumers, the payoff is less range anxiety; for OEMs and suppliers, it is a way to turn data and models into recurring revenue rather than one-time hardware sales.

Startups as Proof Points

One way to read MATLAB’s 15-year arc is through the lens of Indian startups that built their engineering pipelines around it. Ather Energy, now a mainstream electric two-wheeler OEM, first used MATLAB on complimentary licences while incubated at IIT Madras around 2013. “Then they shifted to our startup offerings, which is a very discounted offering. And then our technical teams were all through engaged with them,” says Deshpande.

Ather needed to make an electric scooter feel as familiar as an internal-combustion one while hitting performance and cost targets. Model-based design lets the team quickly prototype battery systems, motor controllers, and charging logic in simulation, benchmark against conventional vehicles, and cut the number of physical prototypes they have to build. According to Deshpande, Ather’s own user story describes reducing prototype counts from double digits to roughly a third of that, with strong designs emerging “even before the physical prototypes” were on the road.

Newer players such as Raptee, which is targeting high-voltage architectures for motorcycles, use MATLAB and Simulink to explore trade-offs between motors, battery packs, and vehicle dynamics entirely on the desktop. In three-wheelers, where price pressure is intense, and hardware must be heavily optimised, MathWorks has supported companies on motor controls and BMS that squeeze more control out of smaller ECUs.

Industry 4.0 and Beyond the Vehicle

The same modelling and AI tools are also moving deeper into the factory. As Indian auto hubs expand in regions such as Aurangabad and Nashik, machinery builders and plant engineers are using MATLAB and Simulink for virtual commissioning, modelling multi-domain production systems, and testing complex control algorithms in a virtual environment before installing them on expensive hardware. In parallel, predictive maintenance models help operators anticipate failures that could shut down lines, combining physics-based models with historical data to catch edge cases.

Computer-vision-based automated visual inspection is another emerging use case. Instead of relying on humans to spot cracks, paint defects, or assembly errors on fast-moving lines, camera systems feed images into AI models built and tested in MATLAB to flag anomalies at speed. For MathWorks, this extends its automotive exposure from vehicles in the field to the plants that build them.

Financials: Tools as a Growth Engine

All of this is showing up in MathWorks India’s financial trajectory. The company’s total income rose from Rs 923.6 crore in FY2024 to Rs 984.6 crore in FY2025, while net profit increased from Rs 54.0 crore to Rs 73.8 crore.

The directors, in their latest regulatory filings, say they are “continuously looking for avenues for future growth” and expect higher turnover and profit alongside broader economic expansion. For now, the combination of export-linked development work and rising domestic demand for licences and services, with automotive a key vertical, is turning what was once a specialist engineering tool into a visible profit engine.

The company faces intense competition from major software giants and specialised engineering simulation providers such as Dassault Systèmes and Altair, among others. Many companies, including startups, are also using open-source models.

According to a list prepared by TheirStack, Indian auto companies using MATLAB include KPIT, Tata Technologies, Ather, and Mercedes-Benz Research & Development India Pvt Ltd., among several others.

Next phase: Agents in a Billion-line World

Looking ahead, both Deshpande and Vijayalayan see the scale of automotive software as the main driver of change. A modern luxury car, they note, can already approach a billion lines of code, on par with aircraft, with around 100 ECUs gradually giving way to zones run by powerful processors. In that context, the industry’s move to software factories, where code flows through automated pipelines of modelling, testing, and deployment, looks inevitable.

If the past 15 years are any guide, the answer will be written both in the sessions at future India MATLAB Expos and in the software stacks of the vehicles rolling out of Indian plants.

CNH India Marks 800,000-Tractor Milestone At Greater Noida Facility

Autocar Professional Bureau — Tue, 12 May 2026 14:00:50

CNH India has rolled out its 800,000th tractor from its Greater Noida manufacturing facility, marking a production milestone for the company’s India operations.

Operational since 1999, the Greater Noida facility manufactures tractors under the New Holland and Case IH brands for both domestic and export markets. According to the company, the latest milestone comes two years after the plant crossed the 700,000-unit mark in 2024.

The company said the facility currently has an annual production capacity of around 60,000 tractors and is in the process of ramping this up to 70,000 units. The plant manufactures a broad range of tractor models catering to varied agricultural applications in India and overseas markets.

“As a key pillar in CNH’s global manufacturing network, our Noida plant continues to deliver world-class, technology-driven solutions backed by the trust of our customers and our commitment to the future of farming,” said Ravi Kundra, Director Manufacturing Agriculture, CNH India.

Spread across 60 acres, the facility also manufactures engines, transmissions, power take-offs and axles. CNH India said the plant produces over 3,000 tractor variants and exports products to more than 90 countries across Asia, Africa, the Middle East, Australia and North America.

The company added that the facility uses automated manufacturing systems and has implemented sustainability measures, including rooftop solar power generation, water conservation initiatives and Miyawaki-based afforestation programmes.

CNH India also said it plans to establish a new tractor manufacturing facility to support future domestic and export demand for locally manufactured equipment.

CNH India Marks 800,000-Tractor Milestone At Greater Noida Facility

Autocar Professional Bureau — Tue, 12 May 2026 14:00:50

CNH India has rolled out its 800,000th tractor from its Greater Noida manufacturing facility, marking a production milestone for the company’s India operations.

CNH India also said it plans to establish a new tractor manufacturing facility to support future domestic and export demand for locally manufactured equipment.