India’s automobile industry delivered a mixed performance in the first quarter of 2025-26, with passenger vehicle exports reaching an all-time high even as domestic sales remained largely flat, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Monday.

Passenger vehicle sales crossed the one million mark for the second consecutive year in Q1, reaching 1.01 million units, though this represented a 1.4 percent decline compared to the same period last year. The segment’s performance was buoyed by utility vehicles, which now account for 66 percent of passenger vehicle sales and posted 3.8 percent growth, whilst passenger cars declined 11.2 percent.

The standout performer was exports, with passenger vehicles achieving record Q1 exports of 204,000 units, marking a 13.2 percent year-on-year increase. This surge was driven by stable demand across most markets, with particularly strong performance in the Middle East and Latin America, alongside recovery in neighbouring markets such as Sri Lanka and Nepal.

"The performance of the Auto industry was relatively flat, though the retail registration for Passenger Vehicles, Two-Wheelers and Three-Wheelers were marginally higher than the previous Q1," said Shailesh Chandra, President of SIAM.

The two-wheeler segment faced headwinds with wholesale sales declining 6.2 percent to 4.67 million units due to inventory correction across the industry. However, retail registrations increased 5 percent during the quarter, driven by the marriage season and positive demand sentiments. Two-wheeler exports showed robust growth of 23.2 percent to 1.14 million units.

Three-wheelers achieved their highest-ever Q1 sales of 165,000 units, representing marginal growth of 0.1 percent. The segment benefited from increased economic activity supporting urban transportation demand and easier financing options. Exports in this category surged 34.4 percent to 96,000 units.

Commercial vehicles posted a marginal decline of 0.6 percent to 223,000 units, though exports grew strongly by 23.4 percent to around 20,000 units.

Looking ahead to Q2, SIAM expressed cautious optimism despite ongoing challenges. The upcoming festive season is expected to drive demand, particularly for passenger vehicles and two-wheelers, whilst an above-normal monsoon could aid rural income recovery.

"With the upcoming festival season coupled with the benefits of RBI repo rate cuts, we expect consumer sentiments to improve," Chandra added.

The Reserve Bank of India's cumulative repo rate cuts of 100 basis points over the past six months are expected to gradually ease borrowing costs, potentially boosting consumer sentiment and affordability.

However, supply-side challenges persist, particularly the recent export licensing requirement from China on rare earth magnets, which has raised concerns for original equipment manufacturers across all categories.

"Sales of Passenger Vehicles in Q1 of 2025-26 de-grew by (-) 1.4 percent, posting sales of 1.01 million units as compared to Q1 of previous year," said Rajesh Menon, Director General of SIAM.

In June alone, passenger vehicle sales declined 7.4 percent to 312,849 units, whilst two-wheeler sales fell 3.4 percent to 1.56 million units. Three-wheeler sales bucked the trend with 3.8 percent growth to 61,828 units.

The industry's overall domestic sales fell 5.1 percent in Q1 to 60.75 million units, reflecting the challenging operating environment facing India's automotive sector.

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Japanese passenger vehicle manufacturer Nissan Motor India (NMIPL) has opened 54 customer touchpoints across the country during the first quarter of CY2026.

The expansion includes a combination of 3S (Sales, Service, and Spare Parts), 2S and 1S facilities as part of the company's strategy to reach 400 touchpoints by the end of FY2027.

This growth coincides with a period of increased sales for the manufacturer. In March 2026, Nissan recorded cumulative sales of 10,388 units, with domestic wholesales accounting for 4,408 units. This represents a 98 percent growth in domestic wholesale compared to the previous year and the highest monthly domestic figure for the company in five years. Export volumes for the same month stood at 5,980 units.

The network development is intended to support a product offensive that includes the Nissan Gravite and the upcoming Nissan Tekton and a seven-seater C-SUV. The expansion follows the established market presence of the Nissan Magnite. The new facilities are built to global retail standards and are intended to improve brand accessibility across various Indian regions.

Saurabh Vatsa, Managing Director, Nissan Motor India, said, “The opening of 54 new customer touchpoints across India in Q1 2026 marks an important milestone in Nissan’s growth journey in India. As we strengthen our product portfolio with the launch of the all-new Nissan Gravite, soon to be launched all-new Nissan Tekton & C-SUV 7-seater along with our popular New Nissan Magnite; network expansion continues to be a critical pillar of our strategy. This growth underlines our commitment to improving accessibility, enhancing customer reach, brand experience while progressing towards our goal of 400 touchpoints by the end of FY2027.”

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Hyundai Motor India (HMIL), one of the leading passenger vehicle manufacturers, has introduced the ‘Vibe’ edition to the Grand i10 NIOS model range with prices starting INR 709,400 for the manual transmission version.

The update targets a customer base that has exceeded 500,000 buyers since the model's inception. This edition includes the Sportz Vibe and Sportz (O) Vibe variants, featuring design and hardware changes alongside the addition of a dashcam.

The interior of the Vibe edition is finished in black with red inserts, while the exterior features black painted alloy wheels. Further upgrades include a leather-wrapped steering wheel, an 8-inch touchscreen audio system with smartphone integration, automatic air conditioning and cruise control.

The Sportz (O) Vibe variant also incorporates a smart key with push-button start. Safety features across the range include six airbags and a highline tyre pressure monitoring system.

A primary addition to the Vibe and Asta trims is a dashcam that provides multiple recording modes, such as driving, emergency and vacation recording. The system allows users to download video and capture photos via a mobile application. The Vibe edition is powered by a 1.2-litre Kappa petrol engine and is available with either a five-speed manual or an automated manual transmission (AMT).

The Sportz Vibe edition is priced from INR 709,400 for the manual version and INR 761,400 for the AMT. The Sportz (O) Vibe AMT is available at INR 773,400, while the updated Asta variant ranges from INR 750,700 to INR 8,02,600. Hyundai has also introduced a Titan Grey Matte colour option to the Grand i10 NIOS line-up.

Amit Dhaundiyal, Head of Product Strategy & Planning, Hyundai Motor India, said, “At Hyundai Motor India Limited, we are constantly evolving our product offerings to align with the aspirations of our customers. The introduction of the Vibe edition in the Grand i10 NIOS reflects our commitment to delivering enhanced value, style and convenience to new-age buyers. Alongside the Vibe edition, the addition of Dashcam in both the Vibe edition and Asta variant addresses the growing focus on road safety while also adding engaging features like photo capture and more. Further, the introduction of the new Titan Grey Matte colour resonates with the lifestyle and aspirations of our customers.”

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JSW MG Motor India has announced that its recently introduced MG Majestor has established a Guinness World Records title for the heaviest train pulled by a sports utility vehicle on rail. The vehicle towed a 406.4 tonne train over a distance of 300 feet on a railway section between Kakapora and Awantipora in Jammu and Kashmir. This performance exceeded the qualifying benchmarks of 400 tonnes and 100 feet.

The attempt used a production vehicle without modifications to the engine, drivetrain, or traction systems. The train consisted of a WAG-9HC locomotive, passenger coaches and a guard coach.

Independent experts monitored the event to confirm that the movement was powered solely by the SUV and that no external propulsion was used. The vehicle is equipped with a 2.0-litre twin-turbo diesel engine producing 215.5 PS and 478.5 Nm of torque, paired with an eight-speed automatic transmission.

The SUV features triple differential locks, a four-wheel-drive system with 10 modes and Level 2 ADAS technology. JSW MG Motor India has opened pre-reservations for the model at INR 41,000. The initial 3,000 customers are eligible for an ownership package including a five-year unlimited kilometre warranty, five years of roadside assistance and five services without labour charges.

Anurag Mehrotra, Managing Director, JSW MG Motor India, said, “This achievement is a powerful demonstration of what the MG Majestor is engineered to deliver. It reflects our focus on building vehicles that combine strength, precision and control, even in the most demanding conditions. With the Majestor, we are setting new benchmarks for capability while staying committed to delivering meaningful innovation and confidence to our customers.”

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Toyota Kirloskar Motor (TKM) has announced that cumulative sales of the Innova HyCross in India have surpassed 200,000 units. The milestone was achieved within 41 months of the model's launch in November 2022. The Innova HyCross is priced from INR 1.95 million (ex-showroom).

The Innova HyCross is built on the Toyota New Global Architecture (TNGA) platform. The flagship powertrain features a 5th Generation Self-Charging Strong Hybrid Electric System, which combines a 2.0-litre four-cylinder petrol engine with an e-drive sequential shift.

The hybrid tech has a claimed power output of 137 kW (186 PS), which allows the vehicle to operate in electric (EV) mode for approximately 60 percent of the time during typical driving cycles. A 2.0-litre naturally aspirated petrol engine option is also available, delivering 129 kW (174 PS).

The Innova HyCross scored a 5-Star safety rating in the Bharat New Car Assessment Programme (BNCAP).

It comes equipped with the Toyota Safety Sense suite, which includes active safety technologies to assist driver awareness. Interior features include powered Ottoman second-row seating, ventilated front seats, and over 65 connected vehicle functions.

Toyota provides an 8-year warranty on the hybrid battery for select variants. Ownership is supported by the T CARE ecosystem, a service framework covering the vehicle lifecycle from pre-sales to repurchase, including roadside assistance and periodic maintenance packages.

The achievement of this sales volume reinforces the model's position in the premium MPV segment and supports Toyota’s ‘multi-pathway’ strategy for carbon reduction through hybrid technology.

Sabari Manohar, Executive Vice-President, Toyota Kirloskar Motor, said, “We are proud to celebrate a significant achievement of over 2 lakh Innova HyCross sales, highlighting the model’s strong legacy and enduring appeal among customers. This milestone also reflects growing customer trust in Toyota’s self-charging hybrid technology, along with the brand’s commitment to design, performance, comfort, and reliability. It further motivates us to continue delivering market-relevant products, advanced technologies, and a seamless ownership experience aligned with evolving customer expectations. We extend our sincere gratitude to our customers and remain confident that the Innova HyCross will continue to inspire confidence and set new benchmarks in the mobility ecosystem.”

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