Seeking details on how the Passenger Vehicle Business Unit of Tata Motors, like many other vehicle makers, faced several challenges from the aftermarket perspective during the lockdown and COVID-19 induced New Normal, the company spokesperson said, there were not many challenges as everything had been planned from their end well in time. However, during the initial days of lockdown, getting special permission from local authorities in certain markets was one challenge the company faced which was eventually resolved.

Tata Motors ensured that its customers and COVID frontline workers received seamless customer experience. As a part of its initiative, the company introduced tips to take care of their vehicles during lockdown along with breakdown assistance and hotline service, that was attending calls 24x7 to provide the necessary support. It also introduced an exclusive helpline for frontline COVID workers and healthcare professionals during the lockdown. Customers could dial the dedicated numbers for assistance in case of any emergency needs. The company has taken necessary approvals from local authorities to attend to vehicles safely and efficiently with all precautionary measures. It serviced 200 plus vehicles of COVID fighters such as doctors/police during the lockdown period across the country. To further support, it also extended the warranty and scheduled service period.

For all pending service appointments, the team called customers to ensure them that their vehicle was in safe hands. Given the relaxation in curbs, restarting of service appointments will be planned in a staggered manner to ensure sanitisation and social distancing to maintain utmost customer safety, the spokesperson said.

However, the average time to respond to customers’ call for repair/ service varied depending upon various factors. For service requests, customers could call the customer care number, where specialists were available to answer queries 24x7, he said. In the case of emergency roadside assistance, the company made arrangements that the services team reaches the location within 60 minutes under city limits and within 120 minutes on ghat roads and other places. The average time per service appointment depends on the type of job that needs to be done on the vehicle. For regular paid service it takes around three to four hours, and free services or minor check-ups are taken care of within 90 minutes, he said. “We have 633 workshops across the country, 444 dealer workshops and 189 TASCs (Tata Authorised Service Centres),” he added.

While these initiative are taken to cater to the requirements of the customers, the vehicle makers also face specific issues about increasing number of stock-keeping units, triggered by more models and variants being introduced. However, Tata Motors has been using a very sophisticated analytical tool to predict the consumption and stock accordingly. The planning for spare parts inventory is done at the dealerships to ensure that sufficient stock is available for all the models based on consumption pattern.

Skilling

Talking on the need to upskill the workforce at authorised service centres, the spokesperson said, upskilling is a continuous process to keep all the dealer workforce updated on the latest technological introductions in the new range of vehicles. “We have seven training centres across the country and are currently conducting regular online training sessions to ensure that our dealer manpower is well acquainted with the same,” he said.

With technological advancements in the cars increasing with every new model, the challenge is to match the service centres to cater to the emerging requirements. From a customer’s perspective, it is more convenient to operate any function with the click of a button or a touch screen. Therefore, from a service perspective, it has become easy to identify service requirements in the vehicle through the medium of a laptop, thereby resulting in faster repairs. “Tata Motors Passenger dealerships have a separate profile of DET (Diagnostic Expert cum trainer) who is skilled in identifying such service requirements and ensures that repairs take place faster and with accuracy. We do not see any challenges from a security perspective, as all technology and electronics in the vehicles undergo multiple tests before being launched,” he said.

Talking on sustainable initiatives, he said, “Earlier in September, the Tata Nexon became the first Indian car to be published on the prestigious International Dismantling Information System (IDIS) platform for End-of-Life Vehicles (ELV). With this achievement, Tata Motors reiterated its holistic commitment towards making the entire life cycle of its products sustainable, i.e. from the development of ultra-low/zero-emission vehicles to responsible dismantling and recycling of the vehicle at the final ELV stage. This milestone on the Nexon signifies the increasing commitment of Tata Motors to ‘End of Life’ across its range of vehicles and the beginning of sustained declaration of dismantling procedures across its entire range of vehicles that are complex with increasing technological content, though over the years commercial vehicles have achieved good levels of recyclability where dismantling procedures are better understood.” (MT)

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Indian automotive retail sales reached nearly 2.5 million units in August 2026, marking its best-ever performance for the month. A total of 2.42 million units were sold last month, which translates to a 17.51 percent YoY growth as per the latest data released by the Federation of Automobile Dealers Associations (FADA).

In terms of segment-wise sales, two-wheelers at 1.71 million units, passenger vehicles at 402,398 units, construction equipment at 5,166 units and commercial vehicles at 90,769 units, clocked strong double-digit YoY growth.

Interestingly, the penetration of alternative energy (CNG, hybrid and electric) in the passenger vehicle segment at 41.95 percent, surpassed petrol vehicle demand at 40.85 percent for the first time in the country.

The industry body attributed the shift to running-cost economics and continuing consumer hesitation around the E20 transition, which pushed petrol buyers towards CNG, hybrids and EVs.

Sai Giridhar, President, FADA, said, “Even as retails eased 6.48 percent over a record July on the seasonal monsoon lull and a festival calendar that shifted Ganesh Chaturthi and the spillover of Onam-led buying into September. Two-wheelers, passenger vehicles, commercial vehicles, tractors and three-wheelers each set fresh August records, and overall registrations were the highest ever for the month.”

“The defining development of the month, however, was a structural one: for the first time in India’s history, alternative fuels – CNG, hybrid and electric combined – overtook petrol in the passenger vehicle market, at 41.95 percent against petrol’s 40.85 percent. A little over a year ago petrol led this contest by nearly 11 percentage points; that lead has now been erased. We would, however, read the headline with discipline: much of the YoY strength rests on a soft August 2025 base, when buyers had deferred purchases awaiting the GST 2.0 rate cut, and dealers report that the festive curtain-raiser came in below their own expectations – the true test of the season lies in showroom conversion through September to November, not in year-on-year optics,” he said.

On the other hand, tractor sales at 87,977 units, witnessed flat growth, due to the widening monsoon deficit of about 13 percent across 14 states.

But rural passenger vehicles at 24.9 percent YoY, as against 10.9 percent YoY growth in the urban segment, pointing to a stronger base demand decoupled from the monsoon.

“Rural demand, in other words, has begun to decouple from the monsoon — the farm-income-linked segment softened, yet the non-farm rural economy of livelihood mobility, goods movement and construction kept accelerating. For an industry long accustomed to reading rural India through the rainfall map, that is the quiet structural marker of FY27, and a measure of how broad-based Bharat’s consumption has become,” pointed out Giridhar.

The two-wheeler segment at 1.71 million units recorded its peak for August since 2018, despite a 5.7 percent decline over July 2026.

FADA attributed sustained GST 2.0 affordability and steady rural demand to the performance. Interestingly, electrification in the segment crossed the 10 percent mark at 10.68 percent, as against 7.6 percent a year ago.

Similarly, electrification in the commercial vehicle segment too reached its highest-ever at 5.18 percent from a 2.06 percent penetration last year.

FADA expressed caution on the passenger vehicle inventory rose to 38-40 days, an additional 5 days over July 2026, as against the recommended 21-day benchmark. “With festive stocking now underway, we urge PV OEMs to bill strictly to retail so that dealer capital is not locked in ageing inventory,” said Giridhar.

Going forward, the industry body expects a positive growth story with the festive season leading to increased demand. But widening monsoon deficit and price hikes by OEMs could affect demand.

Furthermore, FADA has shared its outlook for the three-month period (September to November), which incorporates major festivals including Ganesh Chaturthi, Navratri, Dhanteras, and Diwali (November).

Dealers identified festive demand failing to meet expectations as the primary operational risk, cited by 29.06 percent of respondents. Additional risks include the impact of below-normal rainfall on rural demand, noted by 17.52 percent of dealers, and price increases affecting consumer affordability, identified by 11.11 percent.

FADA stated that retail sales figures for October and November will be compared against the previous year's high base, which was influenced by GST rate adjustments, alongside the calendar shift of Diwali into November. Total retail sales for the 2027 financial year have risen 18.47 percent over the initial five-month period. FADA noted that price increases driven by input costs have reduced the consumer affordability cushion provided by tax revisions across entry-level passenger vehicles, commuter two-wheelers, and commercial vehicles.

The industry body highlighted supporting structural factors, including a stable central bank repo rate, electric vehicle promotion policies and rural economic growth. Non-fossil fuel powertrains have passed petrol options in passenger vehicle retail volumes. Water reservoir levels supporting the upcoming Rabi crop cycle and non-agricultural rural activity were cited as additional factors supporting demand across rural regions.

“Two-wheelers should draw support from festive demand and the alternative-fuel shift, though rural cashflows remain hostage to late-season rainfall; Passenger vehicles enter September with fresh launches and healthy pipelines but must convert them against elevated inventory and a demanding base; and Commercial Vehicles should firm up as post-monsoon freight, infrastructure and harvest movement resume. Overall, the outlook for September’26 appears Cautiously Optimistic – with festive conversion and the monsoon’s closing behaviour the key swing factors,” concluded Giridhar.

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The Executive Committee of the Society of Indian Automobile Manufacturers (SIAM) has elected Shenu Agarwal, Managing Director and Chief Executive Officer of Ashok Leyland, as its President for the 2026–27 term.

The election took place during the organisation's Executive Committee meeting in New Delhi.

Agarwal, who previously served as Vice-President of the SIAM, succeeds Shailesh Chandra, Managing Director and Chief Executive Officer of Tata Motors Passenger Vehicles.

The Executive Committee also elected K N Radhakrishnan, Director and Chief Executive Officer of TVS Motor Company, as Vice-President for the 2026–27 term. Santosh Iyer, Managing Director and Chief Executive Officer of Mercedes-Benz India, was elected as Treasurer.

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Federation of Automobile Dealers Associations (FADA), the apex national body for automobile retail in India, has unveiled the findings of its sixth annual Dealer Satisfaction Study (DSS) 2026. The results were announced during a prestigious awards ceremony at the 8th Auto Retail Conclave on 1 September. This comprehensive industry barometer is conducted in collaboration with PremonAsia, a Singapore-based consumer-insight and advisory firm.

The 2026 study broadened its analytical framework to include the Tractor and Wheeled Construction Equipment sectors for the first time. The Tractor segment recorded a satisfaction index of 784, while the 4-Wheeler Luxury category posted an index of 758. JSW MG Motor maintained its dominant position in the 4-Wheeler Mass Market with an industry-leading score of 865 points. Royal Enfield retained its top ranking in the Two-Wheeler category with 878 index points, closely pursued by Hero MotoCorp.

The Commercial Vehicle segment witnessed a shift in leadership, with Tata Motors CV ascending to the top spot with 800 points, narrowly edging out Ashok Leyland. In the Pure Electric category, Ather Energy and VinFast Auto emerged as frontrunners in the 2-Wheeler and 4-Wheeler sub-segments, respectively. BMW in the 4-Wheeler Luxury segment and Mahindra's Swaraj Division in tractors secured pole positions in their respective categories.

The aggregate Industry Average Dealer Satisfaction score rose by 29 points to 810. The Two-Wheeler segment improved by 35 points to 827, while the 4-Wheeler Mass segment saw a 39-point increase to 810. Toyota Kirloskar Motor and Kia Motors recorded the most notable gains among 4W Mass OEMs, while VECV-Eicher demonstrated strong improvement in the CV space.

Product attributes continue to garner the highest scores, reflecting robust dealer confidence in reliability and refresh cycles. After-Sales service holds the highest importance in dealers' minds, and together with Sales & Order Planning and Business Viability & Policy, these account for nearly 68 percent of dealer priorities. Business Viability & Policy remains the lowest-scoring factor, with dealers highlighting challenges such as unsold inventory buyback policies, training cost-sharing and margins on vehicles and spare parts.

Two-Wheeler dealers appreciate product reliability but voice concerns over inventory write-offs and cost-sharing. In the 4-Wheeler Mass segment, operational pressures like stock carrying costs and network expansion policies are paramount. Commercial Vehicle dealers are focused on service economics including labour rates and warranty reimbursement, while Tractor dealers seek improvements in trial-vehicle support and warranty policies.

Profitability and margins are the most frequently cited requests for improvement, followed by concerns regarding the EV transition and OEM relationships. Dealers are increasingly calling for fairer agreement principles, greater predictability in network policies and more robust support systems to navigate the evolving automotive landscape.

FADA President Sai Giridhar said, “The DSS 2026 continues to provide an important reflection of the evolving Dealer–OEM relationship. This year’s record participation reinforces the confidence of dealers in using this platform to voice their expectations and concerns. While product quality, reliability and range continue to be strong areas, the findings clearly underline the need for greater focus on dealer viability, including sustainable margins, inventory and buyback policies, training cost-sharing and greater clarity in OEM policies. Dealers are also seeking more structured involvement in decision-making and regular engagement with OEMs at national, regional and zonal levels. As the automotive retail business evolves, particularly with the transition towards new technologies, strengthening dealer economics and ensuring a fair, collaborative and sustainable OEM–dealer relationship will be critical for the industry’s long-term growth.”

PremonAsia Director and COO Rahul Sharma said, “The Overall Dealer Satisfaction Index has moved up 29 points over 2025. Changing importance of factors influencing dealer satisfaction displays the dynamic nature of Industry. While Product remains the strongest pillar, After-Sales, Sales & Order Planning and Business Viability & Policy together account for nearly two thirds of dealer mind space. The 2026 DSS study is not just about ‘who ranks where’; it is a clear mandate to build a more viable, fair and future-ready dealer ecosystem. The Voice of Dealer reinforces the quantitative findings – profitability, inventory, dealer rights and future readiness are now central to the OEM-dealer partnership.”

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IDFC FIRST Bank has launched an accelerator programme in collaboration with the Pilani Innovation & Entrepreneurship Development Society (PIEDS) at BITS Pilani. This initiative operates under the IGNITE startup incubation programme, which is managed by the bank’s CSR division, FIRST IMPACT. The partnership is designed to foster enterprises that address critical health and environmental challenges.

The programme will provide catalytic grants, incubation, acceleration, mentorship and ecosystem connections to nurture purpose-driven ventures. It aims to strengthen business and investment readiness while promoting sustainable, high-impact solutions. Eight startups from across India have been selected to participate, focusing on climate technology, carbon reduction and removal, AI and machine learning-based healthcare diagnostics, medical devices and assistive technologies.

These selected startups will receive mentorship, business guidance, access to industry experts and investors and performance-linked grants of up to INR 2,500,000 each. The initiative seeks to scale innovative solutions for carbon sustainability and healthcare accessibility. It is also expected to contribute to employment generation and broader sustainable development goals within the country.

Saptarshi Bapari, Head, Investor Relations and ESG, said, “India is witnessing a remarkable wave of entrepreneurship, with innovators building solutions that are shaping a more sustainable, inclusive and resilient future. What many early-stage startups need is the right support at the right time to turn promising ideas into scalable solutions that can create meaningful impact. Through the IGNITE Social Incubation Program, we are supporting startups working in healthcare and climate sustainability, two areas that are critical to the well-being of our communities and the future of our planet. Our partnership with BITS Pilani combines funding, mentorship and access to a strong innovation ecosystem, helping entrepreneurs accelerate their growth and bring their ideas to life. We hope this initiative empowers founders to scale their solutions, reach more people and create lasting positive impact at scale.”

Prof V Ramgopal Rao, Vice-Chancellor, BITS Pilani, said, “BITS Pilani has spent five decades building an entrepreneurial ecosystem, with impact across all sectors and geographies. We are excited to launch IGNITE to deliver measured community impact across Health and Climate – partnering with IDFC FIRST Bank allows us to apply that discipline to two sectors where India's need is most urgent.”

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