Auto Sector

Maruti Suzuki has entered into a partnership with Kerala Grameena Bank to strengthen vehicle financing options across key regional markets. The collaboration is designed to improve credit accessibility for customers, particularly in rural and semi-urban areas, by offering tailored loan products and faster approvals. By combining Maruti Suzuki’s extensive dealership network with the bank’s strong local presence, the alliance aims to support car ownership and stimulate demand.

The global automobile industry is entering a decisive phase as manufacturers prepare to recalibrate strategies in response to slowing demand, evolving consumer preferences, and rapid technological change. Carmakers are reassessing product portfolios, accelerating innovation cycles, and tightening cost structures to remain competitive in an increasingly complex environment. Electric mobility, regulatory compliance, and pricing pressures are reshaping boardroom priorities, while traditional internal combustion engine models face declining momentum.

ICRA Ratings has projected a robust 15–17% growth in India’s tractor sales for the current fiscal year, reflecting strong demand in the agricultural machinery segment. The growth is driven by favorable monsoon patterns, government initiatives promoting farm mechanization, and increasing adoption of modern agricultural practices. Industry experts note that higher rural incomes and enhanced crop productivity expectations are also supporting sustained demand for tractors.

Renault has announced a planned increase in vehicle prices effective January, citing persistent cost pressures across the automotive value chain. Rising input expenses, higher logistics costs, and ongoing investments in technology and regulatory compliance have collectively squeezed margins, prompting the automaker to recalibrate its pricing strategy. While the company has not disclosed the exact quantum of the hike, the adjustment is expected to vary by model and variant.

India’s automobile industry is expected to deliver a measured yet resilient performance in 2026, supported by rising consumer demand, infrastructure expansion, and a broad-based product pipeline. While volume growth may moderate compared to post-pandemic highs, the sector is undergoing a structural transformation driven by electrification, premiumisation, and stricter regulatory norms. Automakers are recalibrating strategies to balance cost pressures with technology investments, particularly in electric and hybrid vehicles.

The Indian automobile industry is preparing for an aggressive product expansion in 2026, with more than 25 new car models expected to be launched across segments.

Tata Motors has outlined an ambitious roadmap for its electric vehicle business, announcing plans to introduce five new EV models by FY30 while targeting a dominant share of India’s rapidly expanding electric mobility market. The strategy underscores the company’s confidence in long-term demand for clean transportation, supported by favorable policy frameworks, improving charging infrastructure, and growing consumer acceptance. By broadening its product portfolio across price segments, Tata Motors aims to consolidate leadership, deepen localization, and achieve economies of scale.

India’s automobile sector is projected to maintain steady growth through 2026, supported by resilient domestic demand, improving supply chains and a gradual shift toward higher-value vehicles. Industry leaders and analysts expect volume expansion to be led by passenger vehicles and premium two-wheelers, even as entry-level segments face selective pressure. Policy support, infrastructure spending and rising consumer confidence are reinforcing the outlook, while electrification and technology upgrades continue to reshape product strategies.

The Kia Seltos continues to be a cornerstone of Kia India’s portfolio, combining design appeal, technology, and multiple powertrain options to stay competitive in the crowded mid-size SUV segment. With regular updates focused on safety, connectivity, and performance, the Seltos has evolved in line with changing consumer expectations and regulatory standards. Its strong sales performance reflects sustained demand from urban and semi-urban buyers seeking a balance between premium features and value pricing.

India’s automobile industry registered a strong resurgence in November, with passenger vehicle sales rising 19 percent year-on-year. The surge reflects improving consumer sentiment, easing supply-chain pressures, and robust festive-season demand across urban and semiurban markets. Strong traction in SUVs and compact models contributed significantly to the uptick, supported by attractive financing schemes and improved dealer inventory. Commercial vehicles, two-wheelers, and three-wheelers also recorded steady performance, signaling a broad-based recovery in the country’s mobility sector.