Around €1 billion is to be invested towards this purpose that includes acquisition of 50 percent of JAG, the parent company of the Volkswagen partner JAC, and an increase in the stake in JAC Volkswagen from 50 to 75 percent. By gaining Management control, Volkswagen is paving the way for more electric models and infrastructure.
In addition, Volkswagen will acquire a 26 percent stake in battery manufacturer Gotion High-Tech Co., Ltd. for around €1 billion, becoming the company’s largest shareholder.
Dr Herbert Diess, CEO of Volkswagen AG, said, “Together with strong and reliable partners, Volkswagen is strengthening its electrification strategy in China. The electric cars segment is growing rapidly and offers a great deal of potential for JAC Volkswagen. We are actively driving forward the development of battery cells in China through our strategic investment in Gotion.”
Dr Stephan Wöllenstein, CEO of Volkswagen Group China, said, “I am delighted with this strategic milestone in our mutual and trusted relations as Volkswagen takes a strategic role in a state- owned company for the first time, as well as investing direct in a Chinese battery supplier. These investments shape the character of Volkswagen in China, making it a more localized, more sustainability-focused mobility company. By opening up the market, China is giving Volkswagen new business opportunities.” Volkswagen Group China has already outlined its route to becoming a net carbon-neutral company. In 2025, around 1.5 million NEVs are planned for delivery to customers across the country. China is the world´s biggest market for e-mobility.
Transformation
By strengthening its position and advancing the JAC Volkswagen joint venture through a capital increase, Volkswagen is taking the next step in its Chinese electrification strategy. Letters of intent were co-signed by Volkswagen (China) Investment Co. Ltd. and the Government of Anhui province, which foresee Volkswagen raising its stake from 50 percent to 75 percent within the JAC Volkswagen joint venture via a capital increase. To make this possible, the group will also be investing in the Anhui Government-owned entity JAG, the parent company of JAC. The parties intend to close the deal amounting to €1 billion by the end of the year, subject to customary regulatory approvals.
Founded in 2017, the JAC Volkswagen joint venture is an all-electric company which develops, produces and sells NEVs. A portfolio expansion of up to five additional BEV models by 2025 is planned, as well as building a full-scale e-model factory and finishing the R&D center in Hefei.
Securing Battery Supply
Volkswagen has found a further partner to secure future demand for batteries for its Chinese e- models. With the signing of binding agreements, Volkswagen (China) Investment Co Ltd will become the largest shareholder in Gotion, with 26 percent of the shares, through a buy-in of around €1.1 billion. It is the first global automaker to invest direct in a Chinese battery supplier. It is planned to complete the deal by the end of 2020, subject to customary regulatory approvals.
The partnership is an opportunity for Volkswagen to achieve deeper know-how in the field of batteries. Gotion maintains various current and future projects over the entire battery value chain from sourcing, development and production to recycling. The company is in the process of becoming a certified Volkswagen Group battery supplier in China, including supplies for local MEB vehicles.
The MEB is the new modular electric vehicle platform of the Volkswagen Group. The deal will not affect ongoing contracts with other battery suppliers. (MT)
Honda Cars India Sells 4,069 PVs In April 2026
- By MT Bureau
- May 01, 2026
Honda Cars India (HCIL), a leading manufacturer of premium cars in India, has reported its wholesales for April 2026.
In April 2026, the Japanese automaker sold a total of 4,938 vehicles, a flat growth, as against 4,871 units sold last year.
Interestingly, domestic sales grew by 21 percent at 4,069 units, as against 3,360 units last year. On the other hand, the exports saw a decline of 42 percent at 869 units, as against 1,511 units a year ago.
Kunal Behl, Vice-President, Marketing & Sales, Honda Cars India, said, “The new fiscal year has begun on a positive note for us, with good sales momentum for Amaze, City and Elevate. Honda Cars India has recorded a 21 percent growth in domestic sales for April 2026. We remain confident of sustaining this growth trajectory in the coming months.”
Maruti Suzuki India Reports Highest-Ever Monthly Sales In April 2026, To Focus On Unlocking Capacities
- By Nilesh Wadhwa
- May 01, 2026
Maruti Suzuki India (MSIL), the country’s largest passenger vehicle manufacturer, has kicked off the new fiscal year with a historic performance, reporting its highest-ever monthly sales in April 2026.
The company dispatched a staggering 239,646 units, bolstered by a significant resurgence in the small car segment and a relentless push in the SUV space.
During a post-sales conference, Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India and Rahul Bharti, Senior Executive Officer, Corporate Affairs, Maruti Suzuki India highlighted a shifting landscape where traditional entry-level models are finding new life alongside the company’s aggressive EV and SUV expansion.
In a notable shift from recent industry trends, Maruti’s Mini segment (including Alto, Celerio, S-Presso and WagonR) witnessed a massive 253.7 percent growth. The overall small car category grew by 74.4 percent YoY, a surge management attributed to ‘unlocking’ production capacity that was previously constrained.
"As we had capacity to increase production, the sales of the mini segment have grown, especially from people upgrading from two-wheelers to passenger vehicles," noted Banerjee.
Simultaneously, the SUV portfolio reached an all-time high of 55,062 units. The newly launched Victoris has become a standout performer, clocking 13,700 sales last month and becoming the fastest model to hit the 50,000-unit milestone in India.
Maruti Suzuki India confirmed that SUVs now account for 30 percent of its total portfolio, and the company is closing in on the ‘pole position’ in the segment. Interestingly, the automaker’s other portfolio continues to grow as well.
CNG, EV Momentum and defying global headwinds
Sustainability and fuel efficiency continue to drive volumes. April saw the highest monthly CNG sales at 76,348 units. Remarkably, 4 out of every 10 cars sold by Maruti were now CNG-powered.
On the other hand, Maruti Suzuki India’s first electric SUV, the e-Vitara, saw 2,006 units domestic sales in April. Banerjee revealed that 85 percent of demand is skewed toward the higher 61kW variant. Full-scale production capacity is expected to be reached by the June-July window.
Despite ongoing geopolitical tensions in West Asia and uncertainty over the Strait of Hormuz, Maruti’s exports grew by 43.3 percent to 40,054 units.
Bharti emphasised a de-risking strategy, stating that leadership is about ‘growing exports with or without the war.’
The Jimny emerged as the star of the export stable, with 6,938 units shipped, primarily to Japan, making it the company’s highest-exported model for the month.
Focus on unlocking capacities
Going forward, Maruti Suzuki India remains upbeat on the remainder of the year, with on-ground stock remaining lean at 16-17 days as of May 1st.
At present, the focus is on unlocking and streamlining capacities with a massive pending booking list of 165,000 units, with the Ertiga remaining a key focus for ‘debottlenecking.’
Rural markets now contribute 52.3 percent of total sales, growing at 39 percent as Maruti penetrates deeper into the hinterlands.
Addressing the future of the Ignis, management hinted at a strategic refresh. While current production has ceased, the brand is expected to return in a ‘different avatar’ to meet evolving customer needs.
Overall, Banerjee expects the total industry volume (TIV) for April to land between 445,000 units and 450,000 units, a significant jump from 350,000 units last year. While rising fuel prices remain a potential threat to small car growth, the management remains bullish, citing ‘Triple Tailwinds’ – GST 2.0, income tax relief and reduced repo rates – as the primary drivers for a strong FY2027.
Toyota Kirloskar Motor Domestic Sales Grows 21% In April 2026
- By MT Bureau
- May 01, 2026
Toyota Kirloskar Motor (TKM), one of the leading passenger vehicle manufacturers, has announced its wholesales of 32,086 units for April 2026. This marks a 17 percent YoY growth, as compared to the 27,329 units sold in April 2025.
Interestingly, the company’s domestic volumes grew by 21 percent to 30,159 units, as against 24,833 units a year ago. On the other hand, exports declined by 23 percent to 1,927 units, as against 2,496 units for the same period last year.
Between January and April 2026, Toyota Kirloskar Motor has sold a total of 137,194 units, representing a 19 percent growth over the same period in 2025.
A significant achievement for the month was the Innova HyCross, which reached 200,000 cumulative sales milestone. The company noted that this reflects the increasing market acceptance of its hybrid vehicle offerings.
Sabari Manohar, Executive Vice-President, Sales-Service-Used Car Business, Toyota Kirloskar Motor, stated, “Our sales performance in April 2026 reflects steady and sustained progress, driven by a strong focus on customer centricity, product excellence and disciplined execution across markets. A key highlight during the month was the Innova HyCross achieving the 2‑lakh cumulative sales milestone, reinforcing the positive and growing market acceptance of our hybrid offerings. Despite evolving industry conditions, we continue to see good performance due to the consistent efforts to align technological innovations with customer expectations. We remain confident that this momentum, supported by our expanding product portfolio and a robust dealer network will sustain our progress in the months ahead.”
Renault India Sells 5,413 PVs In April 2026
- By MT Bureau
- May 01, 2026
French automotive major Renault India has reported its domestic wholesales of 5,413 units in April 2026, which marks a 108 percent YoY growth, as compared to 2,602 units sold in April 2025.
The OEM said it has sustained double-digit growth following the launch of the new-generation Triber and Kiger in September 2025. Other key factors contributing to the April results include a strong response to the recently launched Renault Duster.
To support increasing demand, Renault India is growing its retail and service footprint, which includes the recently opened new "R store" and a workshop in Ranchi. With this, Renault India has expanded its sales and service touchpoints to 638 touchpoints across the country.
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