Automobile Industry in India

Some of the recent/planned investments and developments in the automobile sector in India are as follows:

• In May 2026, Maruti Suzuki commenced commercial production at the second plant of its Kharkhoda manufacturing facility in Haryana, adding annual capacity of 250,000 vehicles and doubling the site’s total capacity to 500,000 units, while raising the company’s overall annual production capacity across Gurugram, Manesar, Kharkhoda and Hansalpur to 2.65 million units; once fully operational, the Kharkhoda facility is planned to reach annual capacity of 1 million vehicles.
• In May 2026, Force Motors announced plans to invest over Rs. 3,000 crore (US$ 317.9 million) over the next two-and-a-half years to expand its product portfolio, develop hybrid powertrains and strengthen exports.
• In May 2026, Hyundai Motor India announced plans to invest around Rs. 7,500 crore (US$ 794.7 million) in FY27 to expand production capacity to 1.14 million units and strengthen its SUV and EV portfolio.
• In May 2026, Tata Motors Passenger Vehicles announced plans to invest around Rs. 10,000 crore (US$ 1.06 billion) over the next two years to support new product development, EV expansion and manufacturing capacity addition.
• In May 2026, Hero MotoCorp announced plans to invest over Rs 1,500 crore (US$ 158.4 million) in FY27 to expand its scooter business and nearly double monthly scooter production capacity to around 100,000 units from approximately 60,000 units, while also scaling Vida electric two-wheeler capacity and investing an additional Rs 700 crore (US$ 73.9 million) in a second global parts centre in South India.
• In May 2026, Ola Electric’s board approved an investment of US$ 208.5 million in its core EV and battery-cell technology units, to be completed by May 14, 2027, as the company seeks to increase localisation and in-house cell production, reduce costs and support its push towards profitability.
• In May 2026, TVS Motor Company announced plans to invest around Rs 3,500 crore (US$ 369.6 million) in FY27 to expand production capacity, product development and R&D, including adding 1.5 million units of annual capacity over the next 12 months to raise total capacity to around 8.3 million units, while supporting growth across scooters, EVs, premium motorcycles and export markets.
• On May 11, 2026, Toyota Motor Corporation announced plans to establish a new Toyota Kirloskar Motor vehicle manufacturing plant in the Bidkin Industrial Area of Maharashtra, with annual production capacity of 100,000 vehicles and approximately 2,800 employees; scheduled to begin production in the first half of 2029, the facility will manufacture a new SUV and include stamping, welding, painting and assembly operations to serve India and surrounding markets.
• In April 2026, Vietnam-based Vingroup announced plans to invest Rs. 61,347 crore (US$ 6.5 billion) in Maharashtra over 2 years across electric mobility, renewable energy, smart townships, and public infrastructure, potentially creating around 24,700 jobs.
• In April 2026, Škoda Auto Volkswagen India inaugurated a new 33,000 sq. ft. R&D wing in Pune, accommodating over 250 engineers to strengthen vehicle development and software capabilities.
• On April 20, 2026, Hyundai Motor and TVS Motor Company announced a partnership to develop electric three-wheelers and micro four-wheelers for India, with Hyundai leading design, engineering and technology development and TVS evaluating manufacturing and commercialisation, targeting affordable last-mile urban mobility solutions.
• In April 2026, Maruti Suzuki announced plans to invest around Rs 14,000 crore (US$1.48 billion) in FY27, its highest-ever annual capital expenditure, to expand capacity at its Kharkhoda plant in Haryana, develop a new manufacturing facility in Gujarat and support future products and export growth, with recently commissioned 250,000-unit lines at Kharkhoda and Hansalpur expected to support additional production in FY27.
• On April 23, 2026, Stellantis India rolled out its 50,000th vehicle from its Thiruvallur manufacturing plant in Tamil Nadu, marking a key milestone for its India-developed Smart Car platform and strengthening the state’s role as an export-ready automotive manufacturing hub.
• On March 15, 2026, Honda Cars India announced plans to invest around Rs 1,200 crore (US$126.7 million) in a new EV manufacturing line at its Tapukara plant in Rajasthan to produce the upcoming 0 Alpha electric SUV, positioning the facility as a key production and export hub for Honda’s future electric vehicles.
• In FY26, India’s automobile sales reached a seven-year high of 28.03 million units, up 7.1% year-on-year, as all major vehicle segments recorded growth, with passenger vehicle sales rising 5.1% to a record 4.49 million units, two-wheeler sales increasing 7.2% to 20.50 million units and three-wheeler sales growing 8.4% to an all-time high of 0.80 million units, according to the Society of Indian Automobile Manufacturers (SIAM).
• The automobile sector received a cumulative equity FDI inflow of about Rs. 2,70,230 crore (US$ 40.31 billion) between April 2000-March 2026.
• On February 23, 2026, Škoda Auto Volkswagen India commenced production of the new Kushaq SUV at its Chakan plant in Pune, marking a key milestone in its India operations with deliveries scheduled to begin in March 2026.
• On February 16, 2026, JSW MG Motor India announced plans to invest US$330–440 million (Rs. 3,000–4,000 crore) aimed to increase plant capacity to around 300,000 units annually and accelerate its push into electric and hybrid vehicles.
• On February 9, 2026, Tata Motors-Jaguar Land Rover inaugurated a Rs. 9,000 crore (US$ 1.01 billion) luxury car manufacturing plant in Ranipet, Tamil Nadu, marking a major expansion in India’s premium auto manufacturing. The facility began operations with the rollout of the Range Rover Evoque and was planned to scale capacity to 2.5–3 lakh vehicles annually in phases.
• On February 6, 2026, Mahindra & Mahindra Ltd. announced a Rs. 15,000 crore (US$ 1.69 billion) investment to set up an auto and tractor manufacturing plant in Nagpur, Maharashtra. The facility was planned to support both ICE and electric vehicles, strengthening its production capacity. The move was expected to boost regional industrial growth and employment.
• On January 9, 2026, Ashok Leyland inaugurated an electric vehicle manufacturing plant in Lucknow, Uttar Pradesh, marking a major step in its clean mobility push. The facility was designed with an annual capacity of up to 5,000 vehicles and focused on electric buses and commercial vehicles.
• On December 4, 2025, VinFast announced a US$500 million (Rs. 4,418 crore) investment in India to expand its manufacturing operations in Tamil Nadu. The investment is aimed at developing new production lines for electric buses, scooters, and related infrastructure, alongside its existing EV plant.
• On November 20, 2025, Maruti Suzuki India Limited inaugurated its 1,500th parts and accessories distributor touchpoint in Mumbai, expanding the network to cover approximately 760 cities and enhancing parts availability for millions of vehicles.
• On October 15, 2025, Hyundai Motor India Ltd. (HMIL) announced an investment plan of Rs. 45,000 crore (US$ 5.07 billion) through FY30, aiming for 26 new launches (including 7 new nameplates), positioning India as a global export hub with target exports of up to 30% and revenue crossing Rs. 1,00,000 crore (US$ 11.28 billion) by FY30.
• The India-United Kingdom (UK) free trade agreement signed in July 2025, boosts the Indian auto sector’s domestic competitiveness by reducing import tariffs on fully built passenger vehicles from 100% to 10% over 10 years, alongside calibrated annual quotas starting at 10,000 units, encouraging localisation, innovation, and technology upgrades.
• Goods and Service Tax (GST) on EVs has reduced from 12% to 5%.
• The electric three-wheeler segment achieved record sales of 7,41,420 units in FY25. In this segment Mahindra and Mahindra Last Mile Mobility sold 78,524 units, the highest in the segment with a market share of 42.9%.
• Tata Motors is set to invest Rs. 33,000-35,000 crore (US$ 3.86-4.10 billion) between FY26 and FY30 to bolster its passenger vehicle and electric portfolio, launching 30 new models, aiming for a 16% market share by FY27 rising to 18-20% by FY30, with Rs. 16,000-18,000 crore (US$ 1.87-2.11 billion) specifically allocated to the EV arm.
• On August 12, 2025, DPIIT signed an MoU with Hero MotoCorp to support early-stage startups via the ‘Hero for Startups’ accelerator, offering mentorship and R&D access.
• On August 11, 2025, VinFast inaugurated its Rs. 16,000 crore (US$ 1.87 billion) EV assembly plant in Thoothukudi, Tamil Nadu, its first outside Vietnam, aiming to make the city a South Asian export hub with an initial capacity of 50,000 vehicles annually, scalable to 1.5 lakh units.
• On August 2, 2025, Mahindra & Mahindra completed the acquisition of a 58.96% stake in SML Isuzu for Rs. 555 crore (US$ 64.9 million), aiming to expand its commercial vehicle market presence.
• In July 2025, Maruti Suzuki India Limited has partnered with DPIIT, to support ‘Startup India’ innovators in mobility and manufacturing with mentorship, industry access, and testbed facilities to accelerate market-ready solutions.
• On May 28, 2025, Nissan announced an Rs. 6,496 crore (US$ 760 million) investment in India over the next two years to launch multiple new models and expand operations, reinforcing its strong commitment to the Indian market
• On April 17, 2025, Tata Motors announced that it had filed a record 250 patents and 148 design applications in FY25, its highest ever in a single year.
• On March 29, 2025, BYD announced plans to set up its first EV manufacturing plant near Hyderabad, Telangana, targeting an annual capacity of 6,00,000 vehicles by 2032.
• In October 2024, Hyundai Motor India raised a record Rs. 27,870 crore (US$ 3.26 billion) through what became India’s largest-ever IPO, achieved via a fully subscribed offer-for-sale.
• Skoda Volkswagen India plans a Rs. 9,923 crore (US$ 1.16 billion) investment under its India 3.0 strategy to boost premium SUVs and electric vehicles using the CMP 21 platform.
• On May 15, 2024, Kinetic Green announced plans to enter battery manufacturing as part of its Rs. 10,000 crore (US$ 1.17 billion) company by 2029 strategy, with a Rs. 500 crore (US$ 58.5 million) capex investment over 3-4 years to produce batteries for its e-Luna and L5 3-wheeler models.
• Mahindra & Mahindra Ltd plans to invest Rs. 26,000 crore (US$ 3 billion) in its automotive business over 2027, with Rs. 12,000 crore (US$ 1.42 billion) allocated specifically for its electric vehicle unit.
• Between March and May 2025, Hero MotoCorp invested Rs. 525 crore (US$ 62.1 million) in Euler Motors for a 32.5% stake, leading its Rs. 638 crore (US$ 76.6 million) Series D round and marking its entry into the electric three-wheeler market.
• On February 2025, TVS Motor Company announced a Rs. 2,000 crore (US$ 236.6 million) investment in Karnataka over the next five years to enhance its presence in the state through new infrastructure and expanded capabilities.
• Honda Motor Japan has announced plans to establish a dedicated electric motorcycle production facility in India by 2028. The new plant will be operational by 2028 and is expected to produce a wide variety of electric two-wheelers by combining modules common to multiple models, aiming to reduce costs and increase efficiency.
• In January 2025, Force Motors Ltd announced securing an order to supply 2,429 ambulances to Uttar Pradesh's Health Department, enhancing the region's medical services.
• On October 30, 2024, the Asian Infrastructure Investment Bank approved up to Rs 501.96 crore (US$ 53 million) in non-sovereign equity funding for India’s MEAL E-Mobility project through BII India EV LLP, including a Rs 473.54 crore (US$ 50 million) equity investment, to support Mahindra Electric Automobile Limited and accelerate the adoption of four-wheeler passenger EVs in India, replacing the earlier Mahindra EV fundraising update.
• Tata Passenger Electric Mobility, a subsidiary of Tata Motors Limited and pioneer of India’s EV revolution (TPEM), along with the Rajasthan Solar Association (RSA), has entered a Memorandum of Understanding (MoU) to promote electric vehicles (EVs) and the use of solar energy for EV charging in Rajasthan.
• The Renault-Nissan alliance is stepping up its investments in India plans to invest US$ 600-700 million at its Chennai-based facility to step up platform localisation and improve sophistication levels in manufacturing.
• In April 2024, Maruti Suzuki India Limited, commissioned another vehicle assembly line at its Manesar facility.
• In January 2024, Mercedes-Benz announced an investment of Rs. 200 crore (US$ 24.04 million) in India and is gearing up to introduce more than a dozen new cars, including EVs, during the year.
• In February 2024, Klaus Zellmer CEO of Skoda Auto said India is the most promising growth market for Skoda Auto and Skoda Auto India is looking to increase its share in the Indian market to 5% by 2030.
• In April 2024, Hero Motocorp said it has opened an assembly facility in Nepal in partnership with its distributor CG Motors with capacity of 75,000 units per annum.
• In January 2024, BMW sold 1,340 luxury cars, the highest in the segment, which gave it a market share of 0.34%. Mercedes-Benz sold 1,333 cars in January 2024.
• In January 2024, Hyundai Motor India Limited announced US$ 743.8 million (Rs. 6,180 crore) investment plans in the state of Tamil Nadu including US$ 21.7 million (Rs. 180 crore) towards a dedicated ‘Hydrogen Valley Innovation Hub,’ in association with IIT- Madras.
• In January 2024, Hyundai Motor India Ltd. finalized the acquisition and transfer of specified assets at General Motors India's Talegaon Plant in Maharashtra and inked an MoU with the Government of Maharashtra committing to an investment of US$ 722 million (Rs. 6,000 crore) in the state.
• In January 2024, Mahindra & Mahindra Ltd. and the India-Japan Fund ("IJF"), managed by the National Investment and Infrastructure Fund Limited ("NIIF"), entered into a binding agreement, with IJF committing to invest US$ 48.1 million (Rs. 400 crore) in Mahindra Last Mile Mobility Limited (MLMML).
• In January 2024, at the Vibrant Gujarat Global Summit, Maruti Suzuki announced the investment plans in Gujarat with a New Greenfield plant and a fourth line in SMG.
• In December 2023, Tata Passenger Electric Mobility Ltd. (TPEM) and Bharat Petroleum Corporation Limited (BPCL) signed an MoU to jointly establish 7,000 public charging stations nationwide to enhance customer satisfaction.
• In December 2023, Maruti Suzuki India Limited entered into an agreement with the Government of Haryana to establish the second Japan-India Institute for Manufacturing (JIM) as part of its corporate social responsibility (CSR) initiative. The company will invest US$ 698 thousand (Rs. 5.8 crore) to upgrade the existing ITI Kansala into a JIM.
• In December 2023, Hero MotoCorp announced a partnership with Ather Energy for an interoperable fast-charging network in India which will cover 100 cities with over 1900 fast-charging points.
• In November 2023, TVS Motor announced its entry into the European market through a distribution agreement with Emil Frey, a renowned automotive distribution company with a century-long legacy.
• In November 2023, SAIC Motor and JSW Group announced a strategic joint venture to accelerate growth with focus on green mobility.
• In November 2023, Tata Motors inaugurated its state-of-the-art Registered Vehicle Scrapping Facility in Chandigarh.
• In October 2023, Tata Motors signed a definitive agreement to acquire a 27% stake in Freight Tiger, a software-as-a-service (SaaS) company, for US$ 17.99 million (Rs. 150 crore).
• In March 2023, the Central government sanctioned US$ 72.41 million (Rs. 800 crore) under FAME India Scheme Phase II to Indian Oil (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL), for setting up 7,432 public fast charging stations across the country.
• In February 2023, German luxury car maker Audi India began local production of the Audi Q3 and Audi Q3 Sportback at the Skoda Auto Volkswagen India Private Limited (SAVWIPL) plant in Aurangabad.