India has notified the CAFE-III norms for passenger vehicles, effective from April 1, 2027. The new rules introduce progressively stricter fleet-level fuel-efficiency and CO₂ targets through 2032, while encouraging EVs, hybrids, flex-fuel, CNG and other efficiency technologies.

The India–EU Free Trade Agreement will allow up to 1 lakh European ICE and hybrid cars to enter India at lower import tariffs in the first year. The deal introduces phased duty reductions, price thresholds and separate quotas for CKD vehicles and electric cars.

Prime Minister Narendra Modi has urged India’s automobile industry to focus on innovation, excellence, sustainability and global competitiveness as the country advances towards the Viksit Bharat 2047 vision.

India’s passenger vehicle market is shifting towards cleaner alternatives, with CNG, hybrid and electric vehicles together capturing 42% of retail sales in August 2026, surpassing petrol vehicles for the first time.

Tata Motors has introduced Tata.Cars as the new customer-facing identity for its passenger vehicle business, bringing its cars and SUVs under a unified brand.

India could emerge as a major global automotive innovation hub within the next three to five years, driven by rapid developments in AI, software-defined vehicles, connected-car technologies and advanced connectivity, according to Harman India MD Krishna Kumar.

India’s passenger vehicle market remained strong in July 2026, with Maruti Suzuki dominating the top 10 best-selling cars by securing six positions. The Dzire led the charts, followed by the Wagon R and Ertiga, while Tata Punch emerged as the highest-selling non-Maruti model, highlighting continued strong demand for SUVs and compact cars.

India’s passenger vehicle market reached a new monthly record in July 2026, with sales rising 34% year-on-year to over 4.69 lakh units. Maruti Suzuki crossed the 2 lakh sales mark for the first time, while Tata Motors, Mahindra and Hyundai also posted strong gains.

The Indian passenger vehicle market remained strong in H1 2026, with the Maruti Suzuki Dzire emerging as the country’s best-selling car. SUVs continued to dominate the market as Tata Punch, Tata Nexon, Hyundai Creta and Mahindra Scorpio featured among the top performers, reflecting changing consumer preferences toward practical and feature-rich vehicles.

Maruti Suzuki is revamping its strategy to meet changing customer preferences in India. With buyers demanding premium features, SUVs and advanced technology, the company is accelerating R&D, shortening development timelines and planning seven new SUVs by 2030 to strengthen its market position.

Asahi India Glass (AIS) will invest ₹2,700 crore in a new float glass plant at Soniyana, Rajasthan, boosting automotive glass production, localisation and supply chain strength.

JSW MG Motor India has unveiled MG ADAPT, India’s first multi-energy vehicle platform capable of supporting EVs, hybrids, plug-in hybrids and range-extender EVs on a single architecture. The company will launch its first EV and PHEV based on the platform during FY2026-27, strengthening its future electrified vehicle lineup.

Tesla retained its position as the world’s most valuable automotive company in 2026 with a market capitalisation of around ₹120 lakh crore. Toyota secured second place, followed by BYD, while Hyundai and Xiaomi completed the top five. The rankings highlight the growing influence of electric vehicles, software-driven mobility and Asian automakers in shaping the future of the global automotive industry.

The Automotive Research Association of India (ARAI) has stressed the urgent need to strengthen cybersecurity across India’s automotive industry as connected and software-defined vehicles become increasingly common. With modern vehicles relying on cloud connectivity, ADAS, telematics and OTA updates, robust cybersecurity measures are essential to protect vehicles, users and manufacturers from evolving cyber threats.

Electric three-wheelers captured 64.08% of India’s total three-wheeler retail registrations in June 2026, according to FADA’s VAHAN data. Driven by lower operating costs, government support and rising demand for commercial mobility, the segment has emerged as the country’s fastest-growing electric vehicle category.

Toyota has warned its suppliers that the automotive industry must adapt to rising competition from Chinese automakers. The company plans to reduce manufacturing costs while maintaining its renowned safety and quality standards.

Renault India has partnered with IIT Kanpur to strengthen passenger vehicle research and development. The collaboration will utilise the National Wind Tunnel Facility to advance aerodynamics, vehicle performance, engineering research and sustainable mobility technologies.

India’s passenger vehicle market reached a historic milestone in June 2026 as CNG, hybrid and electric vehicles together captured 40.35% of retail sales for the first time. The shift highlights changing consumer preferences driven by lower running costs and improved fuel efficiency.

Tata Group has unveiled an ambitious plan to achieve US$100 billion in automotive revenue by FY2031 through major investments in passenger vehicles, commercial vehicles, Jaguar Land Rover, electrification, AI and advanced manufacturing.

India’s auto component industry grew 12.7% to ₹7.6 lakh crore in FY26, driven by strong domestic demand and OEM supplies. However, imports exceeded exports, resulting in a wider trade deficit. The report highlights the sector’s continued expansion while underlining the need to strengthen domestic manufacturing and reduce dependence on imported components.