It is no secret that hybrid cars are attracting the attention of more and more buyers in India as they promise a combination of an electric system and an IC engine, providing superior fuel efficiency, a silent ride when propelled by the electric system and good performance with the motor contribution to the power and torque output of the vehicle. 

Despite attracting a higher tax than the IC engine or electric vehicles in India at 42 percent as compared to the latter two which are taxed at 28 percent, hybrid vehicles such as the Toyota Hycross and the Maruti Grand Vitara are selling god numbers in their respective segments.

As the demand for reduction in tax on hybrid turns vocal and state governments – the Government of Uttar Pradesh has announced a reduction in registration tax of a strong hybrid vehicle by eight to ten percent – begin to sops, hybrid vehicles seem to get into an advantageous position in terms of their market value and position. 

With this as a basis, the time may be right to ask if extended-range hybrids would make a good case for India? The extended-range hybrid technology in vehicles is promoted as a step towards full-electric, informed an industry source. It is led by China and as a technology subject to certain challenges, he added. 

With automakers like Stellantis and Ford gearing up to unveil range-extended hybrids in Europe, the challenge they are going to face is the European Union (EU) emission regulations. It would be necessary that such vehicles are excluded from the EU's 2035 combustion engine sales cut-off.

Essentially plug-in hybrids with a drive range of up to a whopping 2,100 km, the extended-range hybrid cars such as the two models (one is named Qin L) unveiled by BYD to challenge Volkswagen and Toyota in the Chinese market recently works in a manner that the electric power architecture, which is the foundation for achieving lower energy consumption and higher thermal efficiency, works smartly. 

In other words, the technology taps the higher thermal efficiency of electricity on the basis that the same amount of fuel can generate more electricity for the battery, directly enhancing the vehicle’s range. This in-turn should also explain the lower energy consumption factor. 

Providing an insight into the 2,100 km drive range claim by BYD for the two range-extended hybrid models it launched in China recently, an engineer mentioned that the company has simplified the conditions that govern the IC engine (this is unlike before when the IC engine handled various conditions as the sole powertrain) and have let the electric motor handle more. The result is an improvement in thermal efficient as the engine conditions are simpler. 

For a strictly electric vehicle company to enter IC engine manufacture and deploy it in its cars marks a significant shift in how the electric vehicle industry is responding to the market requirements. 

Innovating a powertrain such that the IC engine handles only 20 percent of what it handled as the sole powertrain of a petrol or diesel vehicle, BYD opted for a high compression ratio. The challenge this move presented saw the global EV leader from China to conduct over 240 combustion combination experiments to ensure the engine does not overheat, does not knock, does not experience reduction in power and speed and causing instability. 

The thermal efficiency of BYD’s engine is a very high 46.06 percent. That of the Great Wall Motor’s Hi4 hybrid system is 41.5 percent. The power density of the BYD system has gone up by about 70 percent, reducing significant the energy flow path losses. The overall efficiency achieved is about 92 percent. 

The cost of such a technology since it is at a nascent stage right now will be high. Its ability to cut down emissions by increasing the thermal efficiency is something that will put cars with such technology in a good position in India. 

The real excitement will however lie in democratizing this technology to bring it down to the volume production car level in the next three to five years. This will definitely make a good case for India. Ironically, the IC engine is not showing any signs of disappearing yet. 

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Tata Motors Passenger Vehicles, has reported its best-ever annual performance in FY2026 with wholesales of 641,587 units, up 15 percent YoY. This includes 631,387 units in the domestic market, up 14 percent, while exports came at 10,200 units, up 281 percent YoY.

For March 2026, the company’s sales came at 66,192 units, up 28 percent, while exports came at 779 units, up 204 percent YoY.

Interestingly, electric vehicles recorded its highest-ever quarterly sales of approximately 27,000 units, a 69 percent increase YoY. Annual EV volumes reached 92,120 units. On the other hand, sales of CNG vehicles crossed 170,000 units, up 24 percent YoY.

The Nexon and Punch models were the top-selling SUV models in the second half of the financial year. Recent launches, including the Sierra, a refreshed Punch and petrol variants of the Harrier and Safari, also saw continued customer traction.

The company expects the passenger vehicle industry to reach record annual volumes of approximately 4.7 million units, reflecting an 8 percent growth. Tata Motors emerged as the second-ranked player in the industry based on Vahan registrations during the second half of FY2026.

Shailesh Chandra, MD and CEO, Tata Motors Passenger Vehicles, said, “PV industry sales are expected to reach record volumes of around 4.7 million units for the year, reflecting 8 percent year on year (YoY) growth. The industry witnessed a strong rebound in the second half, posting double digit growth, supported by GST 2.0 implementation and a robust festive season. For Tata Motors Passenger Vehicles, FY26 has been a landmark year marked by multiple milestones. We achieved our highest ever annual sales volumes of over 640,000 units, delivering industry beating growth of 15 percent YoY and ended it with strong positive momentum. Looking ahead, industry momentum is expected to sustain, led by growth in SUVs, CNG and EV. At the same time, the industry will need to closely monitor geopolitical developments to mitigate potential supply-side risks.”

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Honda Cars India (HCIL), a leading manufacturer of passenger vehicles, has recorded domestic sales of 7,585 units in March 2026, up 5 percent YoY, as compared to the 7,228 units sold last year. The company also reported exports of 2,451 units for the month.

The sales growth was supported by demand for the Amaze and Elevate models. Honda Cars India intends to expand its vehicle lineup in the upcoming financial year, with the launch of its first battery electric vehicle (BEV) scheduled for the second half of the year.

Kunal Behl, Vice-President, Marketing & Sales, Honda Cars India, said, “Demand for all Honda models specially Amaze and Elevate continues to be strong with exciting promotions and product offerings which helped us achieve 5 percent growth during Mar 2026. We are excited to enter the new fiscal with plans to expand our lineup, including the launch of our first BEV in the second half. We remain highly optimistic that our strong focus on customer satisfaction will continue to drive growth and sustain positive momentum.”

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Nissan Motor India (NMIPL), one of the leading passenger vehicle manufacturers, has recorded its best-ever monthly sale in March 2026, its highest in the last five years.

The company sold a total of 10,388 units in March 2026, which includes 4,408 units in the domestic market, while exports came at 5,980 units. This marks a 98 percent growth in domestic wholesales compared to February 2026.

The company attributed the smart uptick on the back of beginning of customer deliveries for the Nissan Gravite MPV, while the Nissan Magnite maintained its sales momentum. The expansion of its network presence also supported increasing customer traction.

The start of Gravite deliveries is identified as a milestone in the company’s growth phase in India. Nissan intends to sustain this trajectory by strengthening sales and service experiences and further expanding its network footprint across the country.

Saurabh Vatsa, Managing Director, Nissan Motor India, said, “March has been a defining month for Nissan in India, the strong growth in domestic sales reflects the positive customer response to our product portfolio. With the commencement of customer deliveries of the all-new Nissan GRAVITE, we would like to thank our customers for their love and appreciation for the Nissan Brand. The over-whelming response to the product reinforces our confidence in the opportunities ahead. Together with the continued momentum of the Nissan Magnite, the dedication of our Network Partners and support of Nissan Finance & other Banking partners, we remain focused on strengthening our Sales & Service experience, while further expanding our network footprint for sustaining long-term growth in the Indian market.”

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  - Bidyut Ghosh April 02, 2026 11:35 AM

  This is excellent move from Nissan India

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Toyota Kirloskar Motor (TKM) reports 20 percent uptick in its wholesales for FY2026 with 406,081 units sold, as compared to 337,148 units last year.

The company recorded growth across both domestic and export markets during the financial year. Domestic sales rose by 19 percent to 367,107 units, while exports grew by 41 percent to 38,974 units.

In March 2026, Toyota Kirloskar Motor reported a 24 percent increase in total sales, with 37,194 units sold compared to 30,043 units a year ago.

The company attributes a robust demand for its product portfolio, which was supported by the introduction of the Land Cruiser 300, as well as new grades and special editions for the Innova Hycross, Fortuner, Camry Hybrid and Hilux. Technical updates included a new six-speed automatic transmission for the Urban Cruiser Hyryder AWD variant.

The company also standardised six airbags across the Rumion, Glanza, Urban Cruiser Taisor, and Urban Cruiser Hyryder models. The Innova Hycross achieved a five-star Bharat NCAP rating during this period.

Toyota Kirloskar Motor expanded its market reach through customer-centric initiatives and brand engagement activities, including the Toyota Experiential Museum (TEM) and a tour by brand ambassadors Drum Tao. These efforts were intended to increase reach among younger audiences and reinforce the brand's mobility positioning.

Sabari Manohar, Executive Vice-President, Sales-Service-Used Car Business, Toyota Kirloskar Motor, said, “We delivered a positive performance this financial year, driven by sustained demand across our SUV, MPV and compact segments. The introduction of new products and customer centric initiatives during the year further helped position Toyota as a dynamic, technology driven and youth‑oriented brand. This momentum reflects the continued trust in Toyota’s quality, reliability and overall ownership experience. In a rapidly evolving market, such consistency underscores the strength of our fundamentals and positions us well for long‑term sustainable growth. We sincerely thank our customers, dealer partner, Government and other stakeholders for their trust & unwavering support. We remain focused on strengthening our product and technology offerings in line with our multi‑pathway approach of hybrid & electrified vehicle technologies in the mobility space. Looking ahead, we remain committed to creating long‑term value while continuously improving every touchpoint across the customer ownership journey.”

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