India’s Auto Industry Posts Mixed Q1 Performance as Passenger Vehicle Exports Hit Record High
- By MT Bureau
- July 15, 2025
India’s automobile industry delivered a mixed performance in the first quarter of 2025-26, with passenger vehicle exports reaching an all-time high even as domestic sales remained largely flat, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Monday.
Passenger vehicle sales crossed the one million mark for the second consecutive year in Q1, reaching 1.01 million units, though this represented a 1.4 percent decline compared to the same period last year. The segment’s performance was buoyed by utility vehicles, which now account for 66 percent of passenger vehicle sales and posted 3.8 percent growth, whilst passenger cars declined 11.2 percent.
The standout performer was exports, with passenger vehicles achieving record Q1 exports of 204,000 units, marking a 13.2 percent year-on-year increase. This surge was driven by stable demand across most markets, with particularly strong performance in the Middle East and Latin America, alongside recovery in neighbouring markets such as Sri Lanka and Nepal.
"The performance of the Auto industry was relatively flat, though the retail registration for Passenger Vehicles, Two-Wheelers and Three-Wheelers were marginally higher than the previous Q1," said Shailesh Chandra, President of SIAM.
The two-wheeler segment faced headwinds with wholesale sales declining 6.2 percent to 4.67 million units due to inventory correction across the industry. However, retail registrations increased 5 percent during the quarter, driven by the marriage season and positive demand sentiments. Two-wheeler exports showed robust growth of 23.2 percent to 1.14 million units.
Three-wheelers achieved their highest-ever Q1 sales of 165,000 units, representing marginal growth of 0.1 percent. The segment benefited from increased economic activity supporting urban transportation demand and easier financing options. Exports in this category surged 34.4 percent to 96,000 units.
Commercial vehicles posted a marginal decline of 0.6 percent to 223,000 units, though exports grew strongly by 23.4 percent to around 20,000 units.
Looking ahead to Q2, SIAM expressed cautious optimism despite ongoing challenges. The upcoming festive season is expected to drive demand, particularly for passenger vehicles and two-wheelers, whilst an above-normal monsoon could aid rural income recovery.
"With the upcoming festival season coupled with the benefits of RBI repo rate cuts, we expect consumer sentiments to improve," Chandra added.
The Reserve Bank of India's cumulative repo rate cuts of 100 basis points over the past six months are expected to gradually ease borrowing costs, potentially boosting consumer sentiment and affordability.
However, supply-side challenges persist, particularly the recent export licensing requirement from China on rare earth magnets, which has raised concerns for original equipment manufacturers across all categories.
"Sales of Passenger Vehicles in Q1 of 2025-26 de-grew by (-) 1.4 percent, posting sales of 1.01 million units as compared to Q1 of previous year," said Rajesh Menon, Director General of SIAM.
In June alone, passenger vehicle sales declined 7.4 percent to 312,849 units, whilst two-wheeler sales fell 3.4 percent to 1.56 million units. Three-wheeler sales bucked the trend with 3.8 percent growth to 61,828 units.
The industry's overall domestic sales fell 5.1 percent in Q1 to 60.75 million units, reflecting the challenging operating environment facing India's automotive sector.
Nissan Motor India Delivers 100 Gravite SUVs In Hyderabad
- By MT Bureau
- April 22, 2026
Nissan Motor India (NMIPL), in partnership with Vibrant Nissan, reached a significant sales milestone by delivering 100 units of the all-new Nissan Gravite in a single day in Hyderabad.
The mass delivery event, held at Le Palais Royal Crown Villa Garden on 22 April 2026, the company said, highlights the strong market reception for the Gravite following its recent entry into the mid-size SUV segment.
The Nissan Gravite is positioned as a versatile family vehicle, featuring a bold design language and a focus on cabin flexibility. The successful delivery of 100 units underscores rising customer confidence in Nissan's refreshed product portfolio, which is currently anchored by the long-standing success of the Nissan Magnite and now bolstered by the Gravite's premium features and safety package.
With an expanding dealer network and a renewed focus on the Indian market, Nissan is entering a new phase of growth. The Gravite's performance in high-potential markets like Hyderabad is seen as a key indicator of the brand's ability to compete in the highly contested SUV categories.
"The 100 Gravite delivery milestone reflects growing demand for Nissan Motor India and rising customer confidence in the all-new Nissan Gravite. Backed by the Gravite’s bold design, spacious and flexible cabin, strong safety package, Nissan’s expanding network and the continued strong run of the Nissan Magnite, the company is entering a new phase of growth in India," said the company in a statement.
Tesla Launches Six-Seater Model Y L Launched At INR 6.19 Million In India
- By MT Bureau
- April 22, 2026
US-based electric vehicle maker Tesla India has launched the Model Y L, an all-new 6-seater SUV, at the Ballard Pier Downtown Experience Centre in Mumbai at prices starting INR 6.19 million.
Positioned as a versatile family vehicle, the Model Y L features an extended wheelbase and a three-row configuration. Online orders are open as of 22 April 2026, with the first deliveries scheduled to commence in June 2026.
The Model Y L is designed to maximise utility, offering a unique 2+2+2 seating layout.
- Second Row: Features individual captain seats with powered armrests, one-touch folding, ventilation and heating.
- Third Row: Equipped with power recline, one-touch folding and dedicated vented climate control.
- Cargo Space: Provides a massive storage capacity of up to 2,539 litres with seats folded.
The Model Y L is integrated into the broader Model Y lineup, offering a balance of range and acceleration. The Premium RWD (5-seater) with 500km range came at INR 5.98 million, L Premium AWD (6-seater) at INR 6.19 million and the Premium LR RWD (5-seater) at INR 6.78 million.
The EV features a refined chassis with adaptive suspension and electronic damping to filter road vibrations. For a premium cabin experience, it includes acoustic glass and an 18-speaker immersive Tesla Audio system.
Furthermore, as part of its focus on driving adoption of the green vehicles, Tesla continues to build its ecosystem in India to support new and existing owners:
At present, Tesla operates 5 Supercharger stations (20 Superchargers) and plans to add 7 more along major highways connecting Delhi, Mumbai, Bengaluru and other key cities.
Existing service centres in Mumbai, Gurugram, Delhi and Pune are being augmented this quarter with new locations in Bengaluru, Hyderabad, Chennai and Ahmedabad.
The Model Y L will be available for public viewing from 23 April 2026 at Tesla locations in BKC (Mumbai), Aerocity (Delhi) and Orchid Business Park (Gurugram).
Monthly financing for the Model Y L starts at INR 49,000, and the EV supports the full suite of Tesla connected features, including live traffic visualisation and integrated streaming services like Spotify and Netflix.
Toyota Kirloskar Motor Reaffirms Carbon-Neutral Goals On Earth Day 2026
- By MT Bureau
- April 21, 2026
Toyota Kirloskar Motor (TKM), one of the leading passenger vehicle manufacturers, has marked Earth Day 2026 by providing an update on its progress toward the Toyota Environmental Challenge 2050.
The company has reported significant milestones in manufacturing decarbonisation, water stewardship, and logistics efficiency, aiming to achieve carbon-neutral manufacturing operations by 2035.
Toyota Kirloskar Motor has focused on eliminating its environmental footprint across its production and supply chain through several key initiatives:
Renewable Energy: For the 5th consecutive year, Toyota Kirloskar Motor’s manufacturing facilities have utilised 100 percent renewable grid electricity, effectively eliminating all Scope 2 emissions.
Logistics Decarbonisation: The company has shifted 24 percent of its vehicle logistics to rail transport, reducing emissions per vehicle from 185 kg to 175 kg. Additionally, the pilot of electric trucks for short-distance transport has resulted in an annual reduction of approximately 950 CO2 emission.
Water & Waste Management: Approximately 89 percent of water requirements are currently met through recycling and rainwater harvesting. The company also maintains a Zero Waste-to-Landfill status, with a recycling rate of over 96 percent.
Aligned with India’s energy landscape, Toyota Kirloskar Motor is pursuing a multi-pathway approach to clean mobility. This includes active pilot projects for Hydrogen Fuel Cell Electric Vehicles (FCEV) and Electrified Flex-Fuel Vehicles (FFV-SHEV) to reduce dependence on energy imports and leverage domestic resources.
On-site, TKM’s Green Wave Project has successfully sequestered 8,118 CO2-emission through afforestation, supporting over 650 plant species. The company's Ecozone, a 25-acre experiential learning centre, has trained over 62,000 students to date, fostering environmental awareness in the next generation.
B Padmanabha, Executive Vice-President of Manufacturing, Toyota Kirloskar Motor, said, “On Earth Day 2026, Toyota Kirloskar Motor proudly reinforces its commitment to ‘Our Power, Our Planet,’ advancing a carbon‑neutral future by embedding sustainability into every aspect of our products, operations, and partnerships. Since 2021, our manufacturing facilities have been powered entirely by renewable grid electricity, eliminating Scope 2 emissions for five consecutive years and demonstrating that industrial growth and environmental responsibility can go hand in hand.”
Renault Duster Bags 5-Star BNCAP Rating For Adult And Child Occupant Protection
- By MT Bureau
- April 20, 2026
European automaker Renault India has announced that its all-new Renault Duster SUV has achieved a 5-star safety rating from the Bharat New Car Assessment Programme (BNCAP).
The results apply across the vehicle's entire range, including the 1.0-litre and 1.3-litre turbo-petrol variants. The SUV scored 30.49 out of 32 for Adult Occupant Protection (AOP) and 45 out of 49 for Child Occupant Protection (COP).
The rating is based on crash tests conducted on the Evolution, Techno and Iconic trims.
Built on the new RGMP platform, the Duster was engineered to meet structural integrity targets for various crash scenarios. Standard safety equipment across all variants includes six airbags, Electronic Stability Program (ESP) and ISOFIX child seat anchors. The vehicle also features Level 2 Advanced Driver Assistance Systems (ADAS), providing 17 active safety functions such as autonomous emergency braking and lane keep assist.
The Duster, which launched in the Indian market last month with a starting price of INR 1.04 million (ex-showroom), is the first Renault model in India to offer this level of automated safety technology. The SUV is backed by a 7-year warranty, positioning it as a highly competitive entry in the mid-size segment against rivals like the Hyundai Creta and Kia Seltos.
Francisco Hidalgo-Marques, VP, Sales & Marketing, Renault Group India, said, “Since the moment of its reveal, the Duster has appealed to Indian customers with its strong SUV design, outstanding ride and handling, and confident performance. With this latest achievement, the Duster now also makes a compelling case for rational buyers combining one of the best fuel efficiency figures in the segment with a 5-star BNCAP safety rating for adult and child occupant protection, and the added reassurance of a best in-market 7-year warranty.”
Dr. V Vikraman, Chief of Renault Engineering, India, added, “This result is rooted in engineering execution on the ground. The Duster was subjected to extensive simulations, physical crash tests, and system-level validations, with a strong focus on real-world Indian driving conditions. From body structure performance to restraint calibration and electronic safety systems, every element was engineered, tested and refined to work together. The 5-star BNCAP rating reflects the rigour of that end-to-end engineering and validation process.”

Comments (0)
ADD COMMENT