ICRA, one of the leading rating agencies, anticipates wholesale volume growth for the passenger vehicle industry to reach 4-6 percent in FY2027, as the market balances sustained demand against a high base from the previous year and uncertainties regarding monsoon performance.

In March 2026, industry wholesale volumes increased by 16 percent to 440,000 units, while retail sales grew by 21 percent over the same period. This activity followed the implementation of revised Goods and Services Tax (GST) rates and the introduction of new vehicle models.

For FY2026, wholesale volumes reached 4.7 million units, representing an 8.6 percent increase on the year, while retail volumes rose by 11 percent to 4.6 million units.

ICRA states that inventory levels reported by the Federation of Automobile Dealers Association (FADA) fell to 28 days by March 2026, down from 60 days in September 2025. This reduction resulted from the increase in retail offtake.

Within the passenger vehicle segment, utility vehicles represented 68 percent of volume in FY2026. Models in mini, compact and super-compact segments experienced recovery following tax changes.

Export volumes grew by 18 percent in FY2026. Maruti Suzuki India retained its position as the exporter with a 49 percent market share, followed by Hyundai Motor India.

Looking ahead, the passenger vehicle sector expects the utility vehicle segment to provide the volume, alongside an increase in demand for passenger cars. Factors such as the West Asia crisis and inflation levels remain indicators for future demand.

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Stellantis and Dongfeng Group have signed a non-binding Memorandum of Understanding to expand their 34-year partnership. The companies intend to create a Europe-based joint venture focused on the sales, distribution, manufacturing, purchasing and engineering of Dongfeng’s new energy vehicles (NEVs).

The proposed 51/49 joint venture led by Stellantis will primarily focus on sales and distribution of Dongfeng’s Voyah-branded premium NEVs in designated European markets, utilising the network and after-sales infrastructure of Stellantis.

The entity will also manage joint purchasing and engineering, accessing Dongfeng’s NEV ecosystem. Furthermore, the partners are considering the production of Dongfeng NEVs at the Rennes plant in France.

Antonio Filosa, CEO, Stellantis, said, “The plans we are announcing today take our recently strengthened cooperation with Dongfeng to an all-new dimension of an international partnership to the benefit of customers around the world. With this new chapter in our collaboration, we will give our customers an even greater choice of competitive products and pricing, leveraging the best of Stellantis’ global footprint alongside Dongfeng’s access to China’s advanced new energy vehicles ecosystem.”

Qing Yang, Chairman, Dongfeng, added, “Dongfeng will further strengthen and expand our partnership with Stellantis, closely aligning with China’s national strategies of high-level opening up, dual circulation and stabilising foreign investment, business and employment. This also meets both shareholders’ development needs. Through coordination in technology, branding and global markets, it will unlock greater value from the joint venture, accelerate Dongfeng’s global expansion, support Stellantis’ global strategic shift and China presence.”

This development follows a recent announcement regarding the strengthening of the existing Dongfeng Peugeot Citroën Automobile Co (DPCA) joint venture. That entity is scheduled to produce Peugeot and Jeep-branded NEVs at its Wuhan plant for China and global export starting in 2027. Since its start, the DPCA joint venture has produced over 6.5 million vehicles.

The implementation of the new project remains subject to the finalisation of agreements and the receipt of necessary approvals.

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Skoda Auto India has launched a campaign titled ‘Greatest On A Track’, which redefines the acronym G.O.A.T to highlight the performance capabilities of its vehicle range. The initiative aims to showcase the motorsport heritage and engineering focus of the brand.

The campaign began with a record for the ‘Fastest Multi-Car Relay of a Single Manufacturer on a Circuit’. Supervised by the India Book of Records and the Asia Book of Records, a fleet of five Skoda vehicles completed a relay at the Coimbatore Automotive Sports and Technical Training (CoASTT) track in a total time of 12:30:97.

The fleet included the Kylaq, Kushaq, Slavia, Kodiaq and Octavia RS. Each vehicle was driven in a relay format to demonstrate the performance across the portfolio.

Ashish Gupta, Brand Director, Skoda Auto India, said, “Every Skoda is engineered to deliver precision, control, and dynamism at the very edge of performance. For us, motorsport DNA isn’t a halo; it is inherent, and it comes standard across our entire range. This belief anchors our newest campaign, where we redefine ‘Greatest On A Track’ to mean, quite simply, a Skoda on a track. This campaign is a natural extension of our strategy of democratizing performance, ensuring that every Skoda, across segments, offers uncompromising dynamic capability, safety, and confidence that translates seamlessly into the real world. At its core, G.O.A.T celebrates the intangibles that truly define the Skoda driving experience: steering precision, chassis balance, braking assurance, and the deep connection between driver and machine. These are qualities that will never be captured on a spec sheet but are unmistakable the moment you get behind the wheel.”

The campaign draws on the history of Skoda, including its motorsport involvement since 1901 and the introduction of the RS badge in 1975. The brand states that this performance-focused engineering is present across its current Indian lineup, from the Kylaq to the Octavia RS.

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Toyota Kirloskar Motor, one of the leading passenger vehicle manufacturers, has announced that its cumulative sales of self-charging hybrid electric vehicles (SHEVs) in India have surpassed 300,000 units.

The milestone marks a major point in the automaker's ‘multi-pathway’ strategy for cleaner mobility in the Indian automotive market.

The company’s domestic hybrid vehicle portfolio includes the Urban Cruiser Hyryder, Innova HyCross, Camry Hybrid and Vellfire. Toyota Kirloskar Motor attributes the growing consumer acceptance of its hybrid lineup to strong real-world fuel efficiency, lower tailpipe emissions and the convenience of driving an electrified vehicle without relying on external charging infrastructure.

Toyota’s self-charging hybrid architecture integrates an internal combustion petrol engine with an electric motor and a battery pack that automatically charges via regenerative braking and engine power. To assure customers of the long-term dependability of this dual powertrain setup, Toyota provides an eight-year warranty on its hybrid battery packs.

Sabari Manohar, Executive Vice President, Sales-Service-Used Car Business, Toyota Kirloskar Motor, said, “We are immensely proud to achieve the milestone of 3 lakh hybrid vehicle sales in India, reflecting the strong and growing customer trust in Toyota’s Self-charging Hybrid Electric technology. At Toyota, our philosophy of ‘Mass Electrification’ is rooted in offering practical, scalable, and inclusive mobility solutions. Hybrid technology serves as a critical bridge towards a cleaner future, enabling customers to embrace electrification seamlessly without compromising on performance, convenience, or reliability."

Globally, Toyota has sold more than 38 million electrified vehicles over the past three decades. Moving forward under its global vision of ‘Mass Happiness to All,’ Toyota Kirloskar Motor intends to expand its clean-energy offerings in India beyond traditional hybrids to include Plug-in Hybrid Electric Vehicles (PHEVs), Battery Electric Vehicles (BEVs), Fuel Cell Electric Vehicles (FCEVs) and Flex-Fuel Vehicles (FFVs).

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Aston Martin has appointed Andrea Baldi as its new Chief Commercial Officer, a strategic move aimed at reinforcing the brand’s standing in the ultra-luxury performance automotive sector. Baldi will join the Executive Committee of Aston Martin Lagonda Limited, where he will take charge of the company’s global commercial operations.

Bringing over 25 years of automotive industry experience, Baldi previously spent a decade at Ducati followed by 15 years at Lamborghini. During his time at Lamborghini, he held senior international leadership roles spanning Europe, the Asia Pacific region, and the United States. In his new capacity at Aston Martin, Baldi is entrusted with shaping the company’s commercial strategy, strengthening its presence across key markets, and driving long term sustainable growth worldwide.

Adrian Hallmark, CEO, Aston Martin Lagonda, said, “Andrea is a highly accomplished international leader with deep luxury automotive expertise and a proven track record of building demand and driving performance. His perspective and experience will be invaluable as we continue to grow our global presence and deliver sustainable results.”

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