Skoda Auto Volkswagen India (SAVWIPL), a leading passenger vehicles manufacturer, has begun local production of the Skoda Kylaq compact SUV at its Chakan facility in Pune.

The Skoda Kylaq is the company’s fifth model on the MQB-A0-IN platform and is the most affordable model in its portfolio. Powered by Skoda's 1.0-litre TSI engine that produces 115bhp and 178Nm the Skoda Kylaq can be had in either a 6-speed MT or a 6-speed AT torque converter. The SUV can accelerate from zero to 100kmph in 10.5 seconds and attain a claimed top speed of 188kmph. It is launched at starting price of INR 789,000. The Czech carmaker stated it has expanded its local supplier base by 10 percent that will help bring down the cost of ownership and also enable faster turnaround time.

Piyush Arora, Managing Director and CEO, Skoda Auto Volkswagen India, said, “We’re thrilled to begin production of Skoda Auto India’s first sub-4-meter SUV. Congratulations to the entire team on the successful start of production. Kylaq is engineered and developed in India to cater to the evolving requirements of Indian customers. By manufacturing Kylaq locally, we proudly support the Make-in-India initiative, maintaining Group’s DNA of delivering safety, comfort and driving dynamics.”

Furthermore, Skoda Auto Volkswagen India has increased production at its Chakan facility by 30 percent, which now can produce 255,000 vehicles per year.

Andreas Dick, Member of the Board of Management of Skoda Auto for Production and Logistics, said, “The successful start of production for Skoda Kylaq reflects the incredible teamwork and collaboration between our teams in India and the Czech Republic. Every detail has been meticulously planned and executed, from design to the implementation of advanced manufacturing processes, ensuring we meet the highest standards of quality and efficiency. These efforts have created the ideal prerequisites for Kylaq to become a cornerstone of our success in India, setting new benchmarks in the compact SUV segment and strengthening our commitment to this dynamic market.”

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Ford Motor Company has opened an 800-seat Global Capability Centre in Coimbatore. It is part of the automaker’s strategy to expands its India operations. The company sold its Sanand plant to Tata Motors but has retained its Chennai plant, which is indicative of the fact that it is still interested in the Indian market.
The Global Capability Centre commissioned at Coimbatore is third centre by the company of its kind. It follows centres in Chennai and Bengaluru. The 82,000 sq ft facility at Coimbatore will mainly support accounting, Ford Credit and other business operations, while also serving as a business continuity hub for the company's Chennai GCC.
“We earlier operated a centre in Coimbatore, which we closed during the COVID pandemic. We have had positive experience with the local talent pool here especially in terms of quality and the range of talent across commercial, operational and engineering operations,” said Gangapriya Chakraverti, India Site Head and Managing Director, Ford Business Solutions. “Ford's biggest talent demand in India continues to be in software engineering, data science and data analytics, alongside the company's growing investments in AI,” she added.

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Skoda Auto Volkswagen India, one of the leading passenger vehicle manufacturers, has announced a leadership change within its sales, marketing and digital division. Jan Bures, who currently serves as Executive Director of Sales, Marketing, and Digital, will conclude his assignment in India and move to a new role at Volkswagen, effective September 2026.

Following the departure of Bures, Piyush Arora, Managing Director & CEO of Skoda Auto Volkswagen India, will take on the additional responsibility of Executive Director of Sales & Marketing for the group in India.

The company stated that this structure is intended to improve strategic alignment, decision-making and accountability across the organisation.

At present, Skoda Auto Volkswagen India operates six brands: Volkswagen, Skoda, Audi, Bentley, Lamborghini and Porsche.

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German luxury carmaker Mercedes-Benz India has recorded its highest-ever sales for the H1 of 2026, retailing 9,768 units between January and June, a 9 percent YoY increase over the 9,013 units sold in the same period last year.

The company also achieved its best-ever second quarter Q2 CY2026, with 4,637 units sold, representing a 10 percent growth compared to Q2 2025.

Sales were driven by the performance of the core and top-end portfolios. The top-end luxury segment, which includes models such as the S-Class, Maybach, AMG and V-Class, grew by over 20 percent and accounted for 28 percent of total sales. Notably, Mercedes-AMG sales increased by 50 percent during the period.

Interestingly, electric vehicles now comprise 14 percent of total sales, supported by the launch of the CLA BEV and demand for the EQS SUV. The entry-level luxury segment also saw a 29 percent growth in Q2, aided by the introduction of the CLA BEV and the GLA SUV. The E-Class long-wheelbase sedan remained the highest-selling luxury car in the country.

Santosh Iyer, Managing Director and CEO, Mercedes-Benz India, said, “Mercedes-Benz’s strong growth in first half of 2026 underlines the success of our strategy rooted in offering desirable products, elevated customer experience and transforming our network with clear focus on getting closer to customers. The new V-Class and CLA BEV drove our best-ever H1 and Q2 sales, underpinning superior product substance, reconfirming Mercedes customers’ preference for value over entry price points.”

He added: “The success of the new CLA BEV is an affirmation that Mercedes-Benz customers prefer owning the latest technology, with the car being sold out within few days of market introduction, customers willing to wait till 5-6 months, to proudly own the car which is truly distinctive and a ‘Class of its Own’. The CLA BEV has propelled Mercedes-Benz’s BEV penetration to reach 14 percent in Q2 2026.”

Regarding the top-end segment, he stated: “H1 2026 has shown increased preference for our top-end vehicles, with the share of TEVs now reaching an all-time high of 28 percent, fuelled by the introduction and growing demand for the new V-Class and the 50 percent growth trajectory achieved by the AMG portfolio.”

The company plans to expand its retail network, aiming to open 20 outlets across India in 2026, including a debut in Varanasi during the third quarter. This expansion is supported by an investment of INR 4.5 billion from franchise partners over the next two years.

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French automotive brand Renault India has introduced the new Renault Kwid hatchback, featuring updates to its design and a simplified two-variant structure: Evolution and Climber.

The company has also adjusted its pricing, with the Climber variant now available at an effective price of INR 499,000 following an online purchase benefit of INR 15,000. Prices for the Kwid range begin at INR 452,000 lakh with the Climber.

The updated model incorporates the Renault brand identity and includes features such as an 8-inch touchscreen with Apple CarPlay and Android Auto compatibility, a digital LED instrument cluster and a rear-view camera. Safety equipment includes dual front airbags, ABS with EBD and seat belt reminders.

The vehicle is powered by a 1.0-litre petrol engine and is available with either a 5-speed manual or Easy-R AMT transmission. It offers a ground clearance of 184 mm and a boot capacity of 279 litres.

Francisco Hidalgo, VP - Sales and Marketing Renault India, said, “For millions of Indians, owning their first car remains an important milestone. With an increasingly aspirational middle class and a large base of two-wheeler owners looking to upgrade, first-time ownership continues to be a strong and enduring aspiration. Over 4.5 lakh customers in India have started their journey with Kwid, and that trust is something we deeply value. With the new Kwid, we are building on this legacy by making the offering simpler, clearer, and more relevant.”

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