India’s auto industry is entering 2026 with a mix of strong exports, a rebound in commercial vehicles and a slow‑but‑steady push into electric mobility and hybrids, even as companies hedge their bets on multiple technologies.
Tata Motors recently stated how the demand for trucks and buses picked up sharply in the December quarter after the GST 2.0 rate rationalisation, which lowered logistics costs for many sectors.
Industry registrations for commercial vehicles rose 25.8 per cent from Q2 to Q3, while Tata’s own volumes jumped about 29.4 per cent, helping it lift its CV market share to 35.7 per cent overall and nearly 56.7 per cent in heavy trucks above 28 tonnes.
The company sold 1,15,577 commercial vehicles in the third quarter, up 21 per cent from 95,770 units a year earlier, and has rolled out 17 “next‑generation” trucks across electric and diesel ranges. These include new heavy electric trucks from 7 to 55 tonnes under the Tata Trucks.ev brand.
Carmakers bet on ‘multi‑pathway’ electrification
On the passenger vehicles side, Toyota Kirloskar Motor recently announced it was broadening its India line‑up with a “multi‑pathway” strategy: internal combustion engines, strong hybrids and now full battery EVs.
The company, on Tuesday, launched its first pure electric model for India, the Urban Cruiser Ebella, sourced from Maruti Suzuki’s Gujarat plant under the global Toyota–Suzuki alliance and also slated for exports to Europe.
Toyota executives stated that they do not expect all buyers to shift to EVs soon, and see BEVs mainly as city cars for now, with over 90 per cent of surveyed customers preferring to charge at home or at work.
The firm is partnering with Jio‑bp to slowly expand charging options, while continuing to push strong hybrids and other electrified technologies aimed at lowering fuel use and emissions.
Exports emerge as major growth engine
Exports have become a key bright spot in the Indian auto story. Automobile shipments from India surged 24.1 per cent in calendar 2025 to 63.25 lakh units, compared with 50.98 lakh in 2024, driven by strong demand from the Middle East, Africa and Latin America, according to SIAM.
Passenger vehicle exports rose 16 per cent to 8.63 lakh units, led by utility vehicles, which jumped 32 per cent to 4.27 lakh.
Maruti Suzuki alone shipped 3.95 lakh cars and SUVs and aims to cross 4 lakh exports in FY2026.
Two‑wheeler exports climbed 24 per cent to 49.40 lakh units, with motorcycle shipments up 27 per cent and scooter exports up 8 per cent, while three‑wheeler exports soared 43 per cent to 4.26 lakh units.
Commercial vehicle exports also grew 27 per cent to 91,759 units. As we start 2026, India’s auto sector is looking at having a bigger piece of the global pie, positioning it as a major hub for affordable cars, bikes and small trucks. All this, while the domestic market is touted to see more experiments with cleaner technologies.
