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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Hyundai Motor India Limited (HMIL) has launched the nationwide ‘Hyundai Smart Care Clinic’, a service initiative designed to deliver comprehensive vehicle health assessments and special benefits to its customers. This programme underscores the company’s dedication to service excellence, drawing upon its three-decade legacy in the country and its foundational principles of trust, progress and pride.

Scheduled to run from 24 June to 8 July 2026, the clinic will be available at all Hyundai service centres. The offering includes a complimentary 30-point check-up for critical systems like brakes and suspension, alongside significant savings on extended warranty, mechanical labour, parts, car care, roadside assistance and Bluelink subscriptions, with discounts reaching up to 30 percent.

Timed ahead of the anticipated monsoon season, the initiative aims to ensure vehicles are prepared for wet conditions. By promoting timely maintenance and essential repairs, the programme is positioned to enhance vehicle longevity, safety and the overall driving experience for Hyundai owners.

Nilesh Shah, National Service Head, Hyundai Motor India Limited, said, “As Hyundai celebrates 30 years of its journey in India, we remain committed to placing our customers at the heart of everything we do. The Hyundai Smart Care Clinic reflects our customer-first philosophy, offering proactive vehicle care and a holistic service experience. Through this initiative, we aim to strengthen customer trust by ensuring their vehicles remain in optimal condition while delivering enhanced convenience, transparency and a truly rewarding ownership journey.”

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Renault India, one of the leading passenger vehicle manufacturers, has initiated exports of the new Duster SUV, with an initial shipment of 750 vehicles departing from Chennai to South Africa.

This development follows Renault Group's strategy to position India as a hub for manufacturing, engineering, and exports. The company has set an objective to reach EUR 2 billion in annual exports from India by 2030.

Stephane Deblaise, CEO, Renault Group India, said, "The start of exports of the all-new Duster is an important moment for Renault India and a strong validation of the quality, capabilities, and competitiveness of our operations in Chennai. It reflects the progress we have made in building India into an integral part of Renault’s global industrial footprint.”

"India possesses all the fundamentals required to emerge as a leading automotive export hub: world-class manufacturing capabilities, engineering talent, scale, and a rapidly evolving logistics ecosystem. As Renault continues to expand its international footprint, India will play an increasingly strategic role in our future plans. We remain committed to contributing to the country’s manufacturing ambitions and are working towards our objective of generating EUR 2 billion in annual exports from India by 2030,” he added.

The new Duster is the first vehicle in India built on the Renault Group Modular Platform (RGMP), which supports multiple powertrain technologies. All variants have achieved a 5-star Bharat NCAP safety rating.

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Stellantis-owned Chinese electric vehicle manufacturer Leapmotor has announced a significant operational milestone, reaching 1.5 million cumulative vehicle deliveries worldwide.

This delivery landmark comes eight months after the company surpassed the 1-million-unit threshold, signalling an upward shift in its global production and sales trajectory.

Since commencing its initial vehicle deliveries in China in June 2019, Leapmotor has maintained a consistent growth trajectory, which has experienced a notable surge over the last two years. It was in June 2019, the company delivered its electric vehicle in China. It reached 500,000 cumulative deliveries in October 2024 and 1 million in October in 2025.

The compression of the timeline between the 1 million and 1.5 million delivery marks was significantly accelerated by the company's formalised global export strategies executed through the Leapmotor International joint venture.

Leapmotor's product strategy relies on a diversified vehicle lineup designed to target distinct global consumer segments. The brand’s portfolio ranges from compact, agile city cars optimised for urban demographics to larger, versatile, family-oriented SUVs and sedans.

By scaling its manufacturing output, the company aims to sustain this momentum across key international markets by focusing on integrated software innovation, engineering efficiency and user-centric design principles to provide accessible electric mobility solutions.

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The Indian passenger vehicle industry is projected to achieve wholesale volume growth of 4–6 percent in FY2027, according to a sector update by credit rating agency ICRA.

Whilst the sector enters the upcoming financial year with demand momentum, the growth rate reflects a moderation compared to previous near-term spikes. The industry's baseline expansion continues to be supported by consumer demand, tax-driven affordability improvements, and a structural shift towards utility vehicles.

Data from May 2026 highlights near-term performance across manufacturing, wholesale allocations and retail customer handovers. Domestic wholesale volumes recorded a 27 percent YoY growth, reaching 440,000 units during the month.

Retail sales volumes outpaced wholesales by expanding 33 percent YoY. This retail growth was driven by consumer fundamentals, the commercial introduction of newly launched models, and an extended summer wedding season. Export volumes rose 13 percent YoY in May 2026, reflecting a supply push by Indian automakers looking to expand market shares across global markets.

The product mix in the Indian automotive market continues to skew towards larger body styles, though policy changes have sparked a recovery in entry-level segments. Utility vehicles continued to command the largest market share, contributing approximately 68% of overall passenger vehicle sales in FY2026. Demand recovery became visible across the mini and compact car categories, which was aided by improving affordability following recent GST rate cuts. The adoption of electric vehicles strengthened further, with EV penetration in the broader passenger vehicle segment rising to nearly 6 percent in early FY2027.

Despite underlying demand fundamentals, ICRA pointed out several headwind factors that could restrict growth or affect consumer sentiment in FY2027. Rising commodity prices threaten manufacturer margins, whilst increasing fuel prices could affect the total cost of vehicle ownership. Furthermore, concerns surrounding a potentially weak or uneven monsoon season remain a risk factor, as agricultural output impacts rural purchasing power and entry-level vehicle sentiment.

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