Auto Sector

Mahindra has expanded its electric vehicle portfolio with the launch of the XEV 9e Cineluxe special edition, priced at Rs. 29.35 lakh (ex-showroom). Positioned above the Pack Three Select variant equipped with an 11kW AC charger and priced at Rs. 28.65 lakh, the new edition commands a Rs. 70,000 premium. The incremental pricing reflects primarily cosmetic enhancements aimed at strengthening the model’s aspirational positioning rather than mechanical upgrades.

India’s automobile retail market gathered significant momentum in February, with sales across major vehicle categories rising between 25% and 36% year on year, according to an analysis of Vahan registration data by Elara Securities. The surge was broad-based, encompassing two-wheelers, passenger vehicles, tractors and commercial vehicles. Notably, cumulative performance for FY26 has now shifted firmly into double-digit growth territory across all key segments.

TVS Motor Company reported a robust performance in February 2026, posting total sales of 5,29,308 units, a 31% increase over 4,03,976 units a year earlier. The growth was broad-based across domestic and international markets, with exports reaching a record 1,58,268 units. Two-wheeler volumes rose nearly 30% year on year, while three-wheeler sales surged 77%. Electric mobility remained a standout contributor, with iQube sales climbing 60%.

Kia India has achieved its strongest February performance since entering the Indian market, dispatching 27,610 units in February 2026. The figure represents a 10.3% year-on-year increase over the 25,026 units sold in February 2025, underscoring resilient consumer demand despite evolving market dynamics. On a month-on-month basis, sales remained largely stable compared with 27,603 units in January 2026, signaling consistent momentum at the start of the calendar year.

Homegrown auto major Bajaj Auto has raised concerns about the effectiveness of Maharashtra’s electric vehicle policy, cautioning that regulatory uncertainty and implementation gaps could deter future investments. The company signaled that inconsistent incentive structures and delays in subsidy disbursement risk undermining industry confidence at a critical juncture in India’s EV transition. Maharashtra, one of the country’s largest automotive hubs, has been positioning itself as a leader in electric mobility.

Tata Motors is set to deploy hydrogen-powered trucks at V.O. Chidambaranar Port, marking a significant milestone in India’s transition toward low-emission freight transportation. The initiative underscores the automaker’s commitment to alternative fuel technologies and aligns with national decarbonization objectives. Hydrogen fuel cell trucks are expected to reduce carbon emissions in heavy-duty logistics operations while maintaining long-haul efficiency.

The launch of the Tata Punch EV marks a pivotal moment in India’s electric vehicle transition, signaling a decisive push toward mass-market electrification. Positioned at the entry level, the compact electric SUV blends affordability, practicality and credible driving range, challenging the perception that EVs remain a premium indulgence. Backed by Tata Motors’ expanding EV ecosystem, the Punch EV aims to bring electric mobility within reach of first-time buyers and urban commuters.

Global semiconductor major Qualcomm and Indian conglomerate Tata Group have announced a strategic collaboration to manufacture advanced automotive modules in India, marking a significant step in the country’s push toward high-value electronics manufacturing. The partnership is aimed at developing and producing next-generation vehicle technologies, including connected, intelligent and software-defined automotive solutions.

Ashok Leyland has entered into a strategic partnership with Rajasthan Gramin Bank to strengthen financing access for commercial vehicle buyers in rural and semi-urban markets. The collaboration aims to provide streamlined credit solutions tailored to small transport operators and entrepreneurs, enhancing vehicle penetration in underserved regions. The initiative reflects a broader push to stimulate rural mobility infrastructure while supporting micro and small enterprises.

French automotive technology firm Valeo has announced plans to invest 200 million euros in India, underscoring the country’s rising prominence in the global mobility transition. The capital infusion will focus on expanding manufacturing capacity, advancing research and development and strengthening supply chain resilience. The move reflects accelerating demand for electric vehicle components and advanced driver-assistance systems in emerging markets.