Top Indian Automobile Industry News & Updates - 31 Dec 2025,Wednesday

🏢 Industry

Delhi’s new EV policy to focus on charging infra, R&D
The new electric vehicle (EV) policy of the Delhi government is likely to have emphasis on boosting public charging infrastructure and research and development activities, officials said on Tuesday.
Bharat Forge inks its largest small arms contract with Defence Ministry
Pune: The Defence Ministry has awarded Bharat Forge Ltd (BFL) a ₹1,661.9-crore contract to supply 2,55,128 CQB Carbines (5.56×45 mm) to the Indian Army. The contract, signed on December 30, 2025, provides for execution over a five-year period. The 5.56×45 mm CQB Carbine is an indigenously designed, developed, and manufactured (IDDM) weapon, jointly developed by the Armament Research and Development Establishment under the Defence Research and Development Organisation and Bharat Forge in Pune.
Hyundai Motor India’s big commercial foray – takes onTaxi market with ‘Prime’ range
Hyundai Motor India, in a bid to shore up its market share, announced its entry into the commercial mobility segment with the launch of its dedicated taxi offerings under the ‘Prime’ brand.
Tamil Nadu extends 100% road tax exemption for EVs for two more years
Chennai: In a boost to electric vehicles adoption, the Tamil Nadu government has extended by two years - from January 1, 2026 to December 31, 2027 - the 100 per cent tax exemption granted for all Battery-Operated Vehicles (Electric Vehicles) covered in all Transport and Non-Transport vehicles. This has been a strong request from EV manufacturers and other industry stakeholders to the State government.
What is BS7? When could Indian Govt implement it? Here is everything you need to know
As India grapples with persistent air pollution challenges in the winter months, the anticipation for the introduction of Bharat Stage 7 (BS7) emission norms is at an all-time high, with both automakers and consumers waiting to see how the new norms affect the Indian auto sector. Speculations are rife that these stricter regulations, aligned with Euro 7 standards, may spell trouble for popular diesel-powered vehicles, potentially leading to higher prices or even the discontinuation of certain models.
How India’s next wave of EV innovation will come from precision local manufacturing
https://manufacturing.economictimes.indiatimes.com/news/automotive/how-indias-next-wave-of-ev-innovation-will-come-from-precision-local-manufacturing/126230016
Double-digit growth projected as auto sector shows steady retail growth in December 2025: Report
 
Auto PLI favours large original equipment makers, Ather tells PMO
 
📝  50 percent of cars sold in South Africa are connected to India: Report
📝  CPOSI names Rajeev YSR national spokesperson to deepen EV charging policy engagement
📝  CarDekho Group posts 24% revenue growth in FY25, narrows losses
📝  Two-wheelers, cars and CVs expected to drive December auto growth
📝  Maruti to lead 2025 sales; Mahindra pushing past Hyundai, Tata climbs to third
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🚗 ICE Car/SUV

‘Timeless machines meet timeless heritage’: 35 classic cars find place at CCFC-EIMG Vintage Car Display 2025
 
📝  Buying a used Honda City in Delhi: Price trends, generations and what to check
📝  Top 5 confirmed SUV launches for January 2026
📝  Renault cars to get costlier from January 2026: Here's by how much
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Electric Car/SUV

📝  MG announces extended assured buy back program for EVs
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🚗 Luxury

Luxury automakers Mercedes-Benz, BMW eye Indian real estate sector
 
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⛟ Commercial Vehicles

CESL to float ₹9,000-10,000 crore tenders for 6,000 e-buses next week
 
📝  VE Commercial Vehicles gets Rs 192.36 cr demand from GST authority
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🎤 Interviews & Features

Top 5 confirmed features of the upcoming Mahindra XUV 7XO
Mahindra is all set to introduce the XUV 7XO on January 5, 2026, and the brand has been steadily teasing key details ahead of the official debut. Positioned as a heavily updated and more tech-focused evolution of the XUV700, the XUV 7XO brings several firsts for Mahindra’s ICE portfolio. Based on official teasers and confirmations, here are the top five features we know so far:
These 7 SUVs will become more expensive in January 2026
If you are planning to buy an SUV in the new year, January 2026 may bring slightly higher price tags. Several carmakers have confirmed annual price revisions that will kick in from January 1. Manufacturers have cited rising input costs, logistics expenses and currency pressures as the reasons. While these hikes follow a year of significant GST-led price corrections, buyers should be prepared for modest increases across segments, from mass-market compact SUVs to luxury offerings.
📝  Petrol vs diesel: What used Scorpio prices say about buyer preferences
📝  New Kia Seltos first drive impression
📝  Mahindra XUV 7XO's new teaser confirms Harman Kardon sound system
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🏗 Construction & Agriculture

📝  Escorts Kubota gets Rs 3.4-cr demand from Maharashtra tax authority
📝  India introduces first BIS test standard for electric agricultural tractors
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🏍 EV/ICE Two Wheelers

Top two-wheeler makers force rethink on antilock braking system mandate ahead of Jan 1 deadline
New Delhi : A proposed Indian government mandate that all two-wheelers come installed with anti-lock braking systems, or ABS, from 1 January hangs in balance with no clarity less than 48 hours before the said deadline. The country's largest two-wheeler makers, including Hero MotoCorp, Bajaj Auto, Honda and TVS, had strongly pushed against the proposal citing supply constraints, cost concerns, and a lack of global precedent as reasons for a phased rollout instead.
📝  TVS Motor launches 2026 edition of PETRONAS TVS India Make Championship programme
📝  From new Bullet to BMW GS: Two-wheelers set to launch in India in January 2026
📝  Yamaha Motor India will pin growth hopes on new Chairman
📝  Kawasaki Z650RS launched in India: Price, engine specs, features & more
📝  Ducati XDiavel V4 now in India: Top 5 highlights of the sport cruiser
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⚙ Components

India's EV penetration hinges on securing raw materials, key components
 
📝  RSB Group targets 50% renewable energy use, 45% emissions cut by 2030
📝  Ramkrishna Forgings bulk deal: Morgan Stanley buys shares worth Rs 95 crore
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🌇 Allied Industries

📝  Mappls gets multimodal public transport routing for metro, rail and bus journeys
📝  Automotive lighting company Neolite ZKW Lightings files DRHP with Sebi for ₹600 crore IPO
📝  India imposes tariff on some steel products for three years to curb cheap imports
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🌢 Fuels, Lubricants

V-GREEN, HPCL partner to expand EV charging network across fuel stations
The Tribune
https://www.tribuneindia.com/news/business/v-green-and-roadgrid-india-announce-strategic-collaboration-to-expand-fast-electric-vehicle-charging-infrastructure-across-india/
With US sanctions’ shadow on Rosneft, Lukoil, little-known intermediaries step in to supply Russian crude to India
 
📝  ‘No helmet, no petrol’ rule in Vizag from 2026
📝  Russian oil flows to India sink but Reliance may limit decline
📝  Oil prices retreat slightly; investors wary of Russia-Ukraine tensions
📝  India's petrochemical consumption growth to remain at 6-7% annually, capacity expansion to cut imports: Report
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🌍 Emissions/Environment

With 363 AQI, Panchkula fifth most polluted city in north India

According to the data released by the Central Pollution Control Board (CPCB), the Air Quality Index (AQI) in Panchkula was recorded at 363 at 7 pm, making it the fifth most polluted city in the north India. Ghaziabad recorded the AQI of 396, Noida 383, Delhi 375 and Greater Noida 370.
Delhi records highest PM2.5 this month since Dec 2018
 
📝  Pollution Control Board considers citywide vehicular emission assessment in Visakhapatnam
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💸 Finance & Insurance

No claim bonus in car insurance: How it works in India
Noida (Uttar Pradesh) [India], December 30: When it comes to car insurance, many insurers have introduced multiple attractive features in their policies to ensure that every car is insured. No Claim Bonus (NCB) is a feature or reward that allows car owners to make considerable savings on their insurance premiums.

Therefore, understanding the role of NCB in car insurance is necessary for every vehicle owner. Whether you are buying a car insurance policy or transferring plans, a complete knowledge of NCB will help you save money and make informed choices.
How India’s motor insurance landscape changed in 2025
For decades, motor insurance in India was largely seen as a ‘grudging purchase’ – a mandatory hurdle to clear before hitting the road. But data from this year – shared with FE by Policybazaar.com – reveals a fundamental transformation. Driven by the surge in electric vehicles (EVs), and a newfound appetite for data-driven savings, Indian drivers are moving from compliance to protection.
📝  Maruti Suzuki partners Kerala Grameena Bank to expand vehicle financing in state
📝  TVS Motor Company ties up with Manba Finance to offer retail financing for commercial mobility vehicles
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📖 Magazines

2025 Recap: Major Milestones in the Two Wheeler Industry
The year saw record sales milestones, long-awaited brand revivals, major acquisitions and important policy changes. Here is a list of the important happenings in the two-wheeler industry in 2025:
Will 2026 car price hikes offset the benefits of lower GST?
Several carmakers have announced a price hike from January 2026, citing higher input and logistics costs and weaker currency positions. The revision follows the rollout of GST 2.0 in September 2025, which lowered taxes for a wide range of vehicles, resulting in a drop in their ex-showroom prices.
2026 Kawasaki Z650RS launched at Rs 7.83 lakh
Kawasaki has launched the updated Z650RS in India; it remains mechanically identical, but the engine is now E20-compliant and produces slightly less torque. This neo-retro sibling of the Z650 also gets a new colour and is priced at Rs 7.83 lakh, ex-showroom.
Hyundai Grand i10 Nios, Aura based fleet-only Prime HB, Prime SD launched
Hyundai India has officially entered the fleet segment with its new range of Prime vehicles – the Prime HB, which is based on the Grand i10 Nios, and the Prime SD, based on the Aura. The ex-showroom prices start at Rs 6 lakh for the Prime HB and at Rs 6.90 lakh for the Prime SD. For reference, the regular version of the Grand i10 Nios CNG is priced from Rs 7.17 lakh, while the base Aura CNG is priced at Rs 6.90 lakh. 
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📰 International

South Korea's L&F sees Tesla contract value slashed to almost zero
 
📝  Tesla quarterly deliveries seen falling as lack of tax credits, competition sap demand
📝  Hyundai not in a position to buy back Russian auto factory
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