Automobile Industry in India

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

• Maruti Suzuki’s Kharkhoda plant (Haryana) began commercial production in February 2025, adding 2,50,000 units of capacity to lift India output to 2.6 million, supporting record exports and aligning with plans for a fourth Gujarat plant to reach 4 million units annually by FY31.
• On September 2, 2025, Tata Motors broke ground on a new greenfield vehicle manufacturing facility in Panapakkam, Ranipet district, Tamil Nadu, set to produce next-generation cars and SUVs for Tata Motors and Jaguar Land Rover.
• 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 automobile sector received a cumulative equity FDI inflow of about Rs. 2,48,683 crore (US$ 29.10 billion) between April 2000-March 2025.
• 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.
• In March 2025, company has announced a significant investment of Rs. 7,410 crore (US$ 864 million) to establish a third manufacturing facility in Haryana. This strategic expansion is projected to elevate the region's production capacity to 7,50,000 units annually by 2029.
• 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.
• Mahindra & Mahindra plans capital expenditure of Rs. 20,000-25,000 crore (US$ 2.3-2.9 billion) over FY26 and FY27 to expand its automotive and farm equipment businesses.
• JSW MG Motor India plans to raise Rs. 2,564-2,991 crore (US$ 300-350 million) to expand its electric vehicle lineup and increase production capacity, targeting EVs to make up 65% of sales by end-2025.
• 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.
• In December 2024, Mercedes-Benz sold 1,468 luxury cars, the highest in the segment, which gave it a market share of 0.50%. BMW sold 1,302 cars in December 2024.
• 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.
• 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 March 2024, Tata Motors Group has signed a facilitation Memorandum of Understanding (MoU) with the Government of Tamil Nadu to explore setting-up of a vehicle manufacturing facility in the state. The MoU envisages an investment of US$ 1,081.6 million (Rs. 9,000 crores) over 5-years.
• Tata Motors, in April 2024, announced the inauguration of a new commercial vehicle spare parts warehouse in Guwahati. 
• In April 2024, Maruti Suzuki India Limited, commissioned another vehicle assembly line at its Manesar facility.
• In February 2024, Hyundai Motors has announced it will invest over US$ 3.85 billion from 2023 to 2033 in expanding its EV range and enhancing its current car and SUV platforms.
• 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.
• Ola Electric IPO to be the first auto company in India to launch an IPO in over two decades (20 years). It has an expected size of US$ 1.01 billion (Rs. 8,500 crore).
• 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, Hero MotoCorp inaugurated its first state-of-the-art premium dealership in India.
• 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).
• India accomplished a significant milestone, with the sale of 8,47,439 EVs in FY24 (till August 2023). A y-o-y growth of 209.17% was witnessed with 1.02 million registered EVs in FY23, as compared to FY22.
• In July 2023, Renault Nissan announced plans to invest US$ 1,68,762.86 (Rs. 1.4 crore) to upgrade infrastructure at eight schools near Chennai.
• In July 2023, Mahindra & Mahindra was in advanced talks with British International Investment (BII) and some other global investors to raise up to US$ 602.72 million (Rs. 5,000 crore) for its electric vehicles (EV) unit.
• In June 2023, Tata Motors announced to invest US$ 2 billion towards developing new products and platforms over the next four years.
• In June 2023, Hero MotoCorp revealed plans to invest up to US$ 180.81 million (Rs. 1,500 crore) for developing premium bikes and EVs in India.
• In June 2023, Kinetic Green Energy and Power Solutions revealed plans to raise up to US$ 100 million by selling a 10-15% stake in the company to investors.
• In May 2023, Maruti Suzuki India revealed plans to invest over US$ 5.5 billion to double capacity by 2030.
• In April 2023, Power Finance Corporation Ltd (PFC) approved US$ 76.39 million (Rs. 633 crore) loan for 5,000 passenger EVs and 1000 cargo EVs.
• 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 the January-June period this year, Mercedes-Benz posted its best-ever half-yearly sales in India at 8,528 units, a growth of 13% a year-ago. During the same period BMW and Audi came at the 2nd and 3rd position with sales of 5,867 and 3,474 units, respectively.
• In February 2023, Nissan and Renault revealed plan to invest US$ 600 million in India over the next 3-5 years to expand their market share in passenger cars and electric vehicles.
• 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.
• In January 2023, MG Motor India announced plans to invest US$ 100 million to expand capacity, eyes 70% growth in 2023.
• In January 2023 at the Auto Expo 2023, Tata Motors announced to launch Tata Altroz CNG.
• Tata Group Chairman, Mr. N Chandrasekaran said that "EV contribution in our portfolio is likely to increase to 25% in five years and reach 50% by 2030, thus significantly increasing investments in this sector” in January 2023.