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.

Comments (0)

ADD COMMENT

Link Copied!

Skoda Auto India has launched the updated Kushaq, introducing technical and feature enhancements to its mid-size SUV. The model, which was the first vehicle developed under the India 2.0 strategy, now incorporates an eight-speed torque converter automatic transmission and integrated artificial intelligence.

The Kushaq comes with the Skoda Super Care package, providing a four-year warranty, four years of roadside assistance, and four labour-free services. Pre-bookings are open for INR 15,000, with deliveries scheduled to begin by the end of March 2026.

The vehicle debuts Skoda’s Modern Solid design language in India, featuring a new front grille with an illuminated light band, LED headlights, and connected taillights with sequential indicators. For the first time, the Monte Carlo variant is available from the start of sales. The SUV also introduces three colours: Shimla Green, Steel Grey and Cherry Red.

The new Kushaq offers two engine options and a revised range of automatic transmissions. The 1.0 TSI engine, producing 85kW and 178Nm, is now paired with a segment-first eight-speed torque converter or a six-speed manual gearbox. The 1.5 TSI engine, delivering 110kW and 250Nm, continues with the seven-speed DSG automatic and now features disc brakes on all four wheels.

Ground clearance remains at 188 mm, maintaining the vehicle’s capability for varying road conditions. The interior has been updated with a panoramic sunroof and a rear-seat massage function. Practical features include a 491-litre boot, expandable to 1,405 litres, and a 10.25-inch digital cockpit in higher specifications.

The infotainment system features a 10.1-inch screen with an AI voice assistant powered by Google Automotive AI. This system utilizes Gemini technology to provide real-time information and hands-free control over climate and media, specifically tuned to recognise Indian accents.

Safety remains a focus, with the Kushaq retaining its five-star Global NCAP rating. Six airbags and over 25 safety features are now standard across all variants, including: Electronic Stability Control (ESC), rain-sensing wipers, auto-dimming interior mirror and rear wiper & defogger.

Klaus Zellmer, CEO, Skoda Auto, said, “The updated Kushaq reinforces the importance of India as the springboard for Skoda Auto’s strategy to grow our international markets. The Kushaq has rapidly established itself with customers in India and as an export to ASEAN and the Middle East. Now we are setting the next benchmark for the model’s overall value proposition.”

Ashish Gupta, Brand Director, Skoda Auto India, said, “At Skoda, our mission is to democratise European technology and make it more accessible to customers across India. With the premiere of the new Kushaq today, we further build our legacy of having a class-leading range of ‘real automatics’ across our portfolio.”

Comments (0)

ADD COMMENT

Link Copied!

Toyota Kirloskar Motor has introduced the Urban Cruiser Ebella, its first Battery Electric Vehicle for the Indian market. This launch signifies Toyota's strategic entry into the country's growing electric mobility sector, underpinned by its three-decade legacy in global electrified technology. The vehicle embodies Toyota's multipath approach to sustainable transportation, aiming to broaden consumer choice in electrified powertrains while supporting national objectives for decarbonisation and energy independence.

The all-electric SUV is designed with a bold and aerodynamic silhouette, featuring a signature hammerhead front, premium LED lighting and dual-tone exterior options. Its spacious and premium cabin is crafted with dual-tone finishes, ambient lighting, ventilated front seats and a panoramic roof. Advanced technology is central to the experience, integrating a unified digital cockpit with a large combimeter and multimedia system, complemented by a JBL premium sound system.

Performance is delivered through two battery options, providing a driving range of up to 543 kilometres. The vehicle supports both AC and DC fast charging, with intelligent features for remote operation and scheduling via the i-Connect system. Safety is a paramount focus, with the inclusion of Level 2 Advanced Driver Assist Systems, a high-tensile body structure, seven airbags and a 360-degree camera.

Ownership is designed to be comprehensive and reassuring. The company is backing the vehicle with an eight-year battery warranty, assured buyback programmes and flexible Battery-as-a-Service options. To ensure expert support, over 500 service centres across the country have been equipped with specialised BEV diagnostic tools and infrastructure, staffed by more than 2,500 master technicians trained in electrification.

Bookings for the Urban Cruiser Ebella will commence on 20 January 2026, with pricing details to be announced in the near future.

Masakazu Yoshimura, Chairman, Managing Director & Chief Executive Officer, Toyota Kirloskar Motor, said, “The introduction of All-Electric Urban Cruiser Ebella is a key enabler towards furthering our multi-pathway approach, where our aim is to contribute towards carbon neutrality while leaving no one behind. Now, with the launch of All-Electric Urban Cruiser Ebella in India, we remain firmly committed to advancing our support towards India’s transition to greener mobility. With our compelling product line-up, technology leadership, strong after sales services and dealership network, we intend to achieve our sustainable mobility goals while providing freedom of mobility to all.”

Tadashi Asazuma, Deputy Managing Director, Toyota Kirloskar Motor, said, “With three decades of global expertise in electrified technologies, Toyota has consistently invested in focused innovation to address diverse mobility needs. As a result, our customers worldwide have already contributed to saving more than 197 million tonnes of CO₂ with over 38 million electrified vehicles on the road worldwide. At the heart of this progress is our philosophy of Mass Happiness, with carbon neutrality as its foundation. This has guided our preparation for Toyota Kirloskar Motor’s first BEV, the All-Electric Urban Cruiser Ebella. Our pre-launch readiness goes beyond the product to ensure a seamless, worry-free ownership experience, aligned with Toyota’s global standards and our vision for future-ready, sustainable mobility in India.”

Sabari Manohar, Executive Vice President, Sales–Service–Used Car Business & Profit Enhancement, Toyota Kirloskar Motor, said, “The All-Electric Urban Cruiser Ebella, showcases an authentic SUV character inspired by its ‘Urban Tech’ design philosophy. With a bold hammerhead expression and three-dimensional surfaces, the BEV delivers a strong, futuristic road presence. It is available with 49 kWh and 61 kWh battery options, with latter pack producing 128 kW and 189 Nm of torque and offering a driving range of up to 543 km (Certified by ARAI) on a single charge. The vehicle is backed by a robust service network, Electrified Technology trained dealer teams, an 8-year battery warranty, flexible ownership programmes (Assured Buy Back & Battery as a Service), and an expanding charging ecosystem to ensure Assured care and delightful BEV ownership experience.”

Comments (0)

ADD COMMENT

Link Copied!

Mercedes-Benz India has expanded its retail network with the inauguration of a new luxury sales facility in Bhopal. Operated by its established franchise partner, Landmark Cars, this strategic move reinforces the brand's commitment to penetrating key emerging luxury markets and bringing its world-class offerings closer to discerning customers in growing urban centres.

Situated in the premium commercial complex of Habib Ganj, the 1,100-square-foot showroom was completed in just four and a half months, demonstrating the agility of the brand's retail operations. Its location ensures strong connectivity and access to Bhopal's existing and prospective luxury car clientele.

The outlet employs the innovative 'Stars at Mercedes-Benz' retail format, designed for high flexibility within urban settings. This concept allows for the seamless display of the brand's entire portfolio – including Mercedes-Maybach, AMG, G-Class and core Mercedes-Benz models – within a single space. Adaptable brand elements and optimised layouts enable easy switching between vehicle displays while maximising the use of luxury display areas. The format also dedicates space to exclusive customer consultations, ensuring a focused and personalised client experience.

Staffed by a team of trained professionals, this facility adds to Landmark Cars' network of nine Mercedes-Benz outlets nationwide, with plans for further growth based on market potential. This opening is part of Mercedes-Benz's broader strategy to deepen its presence across India's luxury consumption hubs. By combining modern retail formats with curated customer experiences, the brand continues to strengthen its leadership position, now boasting a presence in over 50 Indian cities with more than 140 luxury touchpoints.

Emrah Oezer, CFO and Executive Director, Mercedes-Benz India, said, “Mercedes-Benz continues its strong momentum in the Indian market in 2025, remaining the most desirable luxury automotive brand. Mercedes-Benz witnessed increase in sales in it’s top-end vehicles and BEV portfolio, along with strong performance in terms of revenue. This year we will launch 12 new products, expand of our local production portfolio, launch the MB.Charge Public, expand into new markets and invest in upgrading our entire network. Bhopal is an important emerging market for Mercedes-Benz and with a new state-of-art showroom, our discerning customers in Bhopal will have an elevated luxury retail experience synonymous with the values of trust, prestige and excellence associated with Mercedes-Benz.”

Sanjay Thakker, Chairman & Executive Director, Landmark Cars, said, “We are delighted to further strengthen our partnership with Mercedes-Benz by inaugurating a world-class luxury sales outlet in Bhopal, a city witnessing steady growth in premium automotive aspirations. This new facility reflects the global luxury standards of Mercedes-Benz, seamlessly integrating modern design, digital-enabled consultations and a highly personalised customer engagement model. Designed to deliver an immersive and refined purchase journey, the showroom offers customers a holistic luxury ecosystem under one roof, focused on exclusivity, comfort and convenience. We are confident this new touchpoint will resonate strongly with customers in Bhopal and the surrounding region, reinforcing Mercedes-Benz as the most aspirational and trusted luxury automotive brand.”

Comments (0)

ADD COMMENT

Link Copied!

MG SELECT and designer Gaurav Gupta have collaborated to produce an artistic version of the MG Cyberster. The project was revealed on 17 January 2026 at the opening of the designer's menswear flagship store in New Delhi. The partnership integrates automotive engineering with textiles and sculpture.

The MG Cyberster is a convertible sportscar with a claimed acceleration of zero to 100 kmph in 3.2 seconds. The creative process for this interpretation lasted six months, focusing on translating speed into a visual language. The vehicle's exterior features brocade patchwork and zari embroidery, applying traditional Indian craft techniques to an industrial surface.

The car incorporates organic forms and tonal gradients that follow the vehicle's contours. A custom hood features the Serpent Infinity motif, a symbol used in the designer's previous collections to represent energy and transformation. This integration of material and form treats the vehicle as a moving artwork rather than a machine.

The project serves as a bridge between the automotive sector and the lifestyle market. It aligns with the launch of the MG SELECT brand, which focuses on the intersection of performance design, fashion, and culture.

Gaurav Gupta, said: “I approached the car as I do couture, shaping it with movement and energy. The Serpent Infinity extends my creative narrative into a new medium. Elements of traditional Indian embroidery and embellishment are reinterpreted for the automotive form, merging heritage craftsmanship with modern technology. Every surface and curve has a purpose.”

Milind Shah, Interim Head – MG SELECT, JSW MG Motor India, added, “We see MG SELECT as a bridge between automotive engineering and contemporary lifestyle, where a car becomes part of a wider ecosystem of fashion, art and culture. Our focus is on creating moments where performance-led design naturally intersects with the worlds our customers already engage with. The Cyberster represents a modern interpretation of the iconic roadster, and collaboration with Gaurav allows us to express that philosophy beyond the car itself, through form, materiality and emotion.”

Comments (0)

ADD COMMENT

Link Copied!