Top Indian Automobile Industry News & Updates - 02 Feb 2026,Monday

🏢 Industry

Electric vehicle ecosystem gets incentives to localise amid China threat
New Delhi: Manufacturers of electric vehicles (EVs) and their parts have got another nudge from the government to double down on localisation with the announcement of four special corridors for rare earth minerals, and extension of duty concessions for lithium-ion cell manufacturing and import.
Tata Motors and Hyundai report robust sales growth in January 2026
New Delhi: Major Indian automobile manufacturers Tata Motors Passenger Vehicles Limited and Hyundai Motor India Limited reported a surge in their sales figures for January 2026, according to the company's regulatory filings. Both companies achieved substantial year-on-year growth in domestic and total sales, marking a strong start to the calendar year for the passenger vehicle segment.Hyundai Motor India Limited (HMIL) recorded its highest-ever monthly domestic sales of 59,107 units in January 2026, representing a 9.5 per cent increase compared to the same period last year.
📝  Passenger vehicle sales begin New Year with a strong start
📝  Mahindra Auto sales rise 25% to 63,510 units in January 2026
📝  Auto industry gets multi-layer boost in Budget 2026
📝  Govt Scraps tax on motor accident compensation
📝  Another ₹2,200 crore goes to NCRTC for cleaner, faster mode of public transport
Read More >>

🚗 ICE Car/SUV

Maruti Suzuki aces midsize SUV race, but it’s a close call
Maruti Suzuki has finally wrested the top spot in the fiercely contested midsize SUV segment, ending nearly a decade-long dominance of Hyundai’s Creta, but the lead remains narrow and vulnerable as rivals line up fresh launches that could quickly alter the pecking order.
Buying Citroen C3? Be ready to shell out more. Old vs new prices compared
Citroen has increased the pricing of its Citroen C3, alongside the other models like Aircross and Basalt. Under this latest price revision has Citroen C3 has become costlier by up to ₹40,000, depending on variants. The Citroen C3 now comes priced between ₹4.95 lakh and ₹9.45 lakh (ex-showroom), depending on variants, as compared to the older price range of ₹4.80 lakh and ₹9.05 lakh (ex-showroom).
India should be among our top 5 global markets: Renault
Source Credit: Arshad Khan, Sanal Sudevan, New Indian Express

French carmaker Renault aims to rank India among its top five global markets, ramping up its presence in the world’s third-largest passenger vehicle (PV) market with fresh models.
📝  Hyundai sales up 11.5% to 73,137 units in January 2026
📝  Toyota Kirloskar Motor sales up 15 pc at 33,880 units in Jan
📝  Kia India January 2026 sales rise 10.3% to 27,603 units, Seltos and Sonet lead demand
📝  Renault India sales up 33.6 per cent to 3,715 units in January 2026
📝  How Tata Motors PV packed more punch into the Punch
📝  Hyundai hits record year with 7.6 lakh units, SUVs contribute 69% of sales!
📝  Mahindra XUV 7XO waiting period extends up to 1 year: Full list here
📝  2026 Hyundai Exter spied: What's new in updated Tata Punch rival
📝  Mahindra Vision S SUV spotted ahead of launch
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🚗 Luxury

Volvo targets 30%+ BEV mix in India by 2026
Volvo Car India is aiming for battery electric vehicles (BEVs) to account for over 30% of its India sales by 2026. Currently, BEVs contribute around 25% of Volvo’s India volumes, with the remainder coming from internal combustion engine models equipped with mild-hybrid technology. The Swedish luxury carmaker plans to expand its electric portfolio with two new BEV launches over the next year.
📝  Budget 2026-27: Building the infrastructure for India's next growth chapter: Santosh Iyer, Managing Director & CEO, Mercedes-Benz India
📝  BMW cars to get new logo from this date: Here’s how it looks
📝  Maserati blends fire and ice for a one-off MCPura
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🎤 Interviews & Features

📝  Updated Tata Punch review: Stylish, practical, and ready for urban roads
📝  Giving wings to aspirations: Budget lays the groundwork for competitive manufacturing, resilient supply chains and inclusive growth
📝  Facelifted Skoda Kushaq 2026 Review: Premium interiors, turbo petrol & DSG options
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🏍 EV/ICE Two Wheelers

E2W registrations rise 22% in Jan; Ola slips to fifth as TVS tightens grip
Chennai: The electric two-wheeler (e2w) market - covering both pure electric vehicles and battery-operated vehicles - started 2026 on a strong note, with registrations rising 22 per cent year-on-year to 2.08 lakh units in January 2026, compared with 1.71 lakh units in January 2025. Barring Ola Electric, all major manufacturers recorded growth in January 2026 over the year-ago period.
📝  Hero MotoCorp January dispatches up 26 pc at 5,57,871 units
📝  VinFast targets India, Southeast Asia in global e-scooter expansion push
📝  GST rate cut-induced demand to stay unless inflation erodes purchasing power: Bajaj Auto ED
📝  TVS Motor Company sales up 30% to 383,262 units in January 2026
📝  Honda Shine 125 Limited Edition unveiled, will launch soon
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🌇 Allied Industries

📝  Ola Electric begins deliveries of ‘Ola Shakti’ home battery storage system, secures BIS certification for both variants
📝  Luminous inaugurates first lithium-ion battery assembly line at Baddi
📝  Renesas appoints Balaji Kanigicherla as Vice President, Head of Engineering and CTO
📝  Continental launches CrossContact A/T² Off-Road Tyre in India: Details
📝  AI infrastructure boom pushes up metal prices, squeezes margins of Indian automakers
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🌢 Fuels, Lubricants

📝  Essar oil & gas to invest $100 million to expand raniganj CBM output
📝  Reliance to gain as Trump signals resumption of India–Venezuela oil trade
📝  Budget boost: Excise relief on biogas-blended CNG to aid gas retailers
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🌍 Emissions/Environment

Why Mumbai continues to record unhealthy AQI even during January this year
Mumbai’s Air Quality Index (AQI) usually witnesses an improvement during the month of January, following its winter slump. The reason behind this has been a strong reversal of winds which are complemented by rising day temperature levels.
Delhi gasps as budget to combat pollution lowered
Source Credit: Kushagra Dixit, The Times of India

New Delhi: The Union Budget 2026–27 on Sunday cut allocation for pollution control at a time when the toxic air quality of Delhi-NCR and the Indo-Gangetic Plains has set off alarm bells on an unfolding public health crisis.
📝  Budget allocation for 'control of pollution' increases
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💸 Finance & Insurance

Govt proposes to exempt award given by Motor Accident Claims Tribunal from income tax: FM
Finance Minister Nirmala Sitharaman on Sunday proposed a tax exemption on awards given by the Motor Accident Claims Tribunal in the Union Budget 2026-27.
📝  Centre scraps tax on motor accident compensation, interest
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📖 Magazines

Top 5 midsize SUVs: Most features on a base variant
While mid-spec trims remain the most popular choice for new car buyers, striking a balance between features and affordability, base models often get overlooked due to their reputation for being under-equipped. Yet this perception doesn't always hold. Several mid-size SUVs deliver impressively well-appointed base trims that include essential safety tech and feature an infotainment system with Apple CarPlay and Android Auto, a sunroof, and a rear seat armrest, without requiring an upgrade to a higher trim level. We rank the five best-equipped base trims in the mid-size SUV segment, listed in ascending order. Interestingly, some of these models aren't as popular compared to better-selling rivals, but they more than compensate with generous standard features right from the entry point. 
Mercedes Benz GLS long term review, 16,000km report
While a Rs 1.3 crore (ex-showroom, India) luxury SUV is a common sight in five-star hotel lobbies, and being valeted outside high-end restaurants, its real strength lies in shrinking distances – especially when it’s powered by a diesel engine. Our newest long termer, the Mercedes-Benz GLS 450d, proved to be the ultimate long-distance family car, as I found out on a Mumbai-Nagpur-Mumbai trip.
Union Budget 2026-27: Expectations of the auto industry
The ongoing 2025-26 financial year has so far been marked by revised GST rates on cars and the signing of a free trade agreement with the UK and, more recently, the European Union, which have lifted sentiment across the industry. With Finance Minister Nirmala Sitharaman set to present the Union Budget 2026-27 on February 1, Autocar Professional, our sister publication, spoke to leaders across the automobile sector to gauge their expectations.
New Renault Duster hybrid vs midsize cars spec comparison
The new Renault Duster has been revealed with a strong hybrid powertrain option, a first for the nameplate in India. The latest from Renault competes in the midsize SUV space, where only the Maruti Grand Vitara, Maruti Victoris and Toyota Hyryder currently offer a hybrid choice. Honda does not offer a hybrid setup with the Elevate at the moment, though the City midsize sedan has been equipped with one. But how do these vehicles stack up on paper when it comes to specifications? Let's find out.
KTM 390 Enduro R: 3 reasons to buy and 2 to skip it
The KTM 390 Enduro R is based on the same 390 Adventure platform, but gets a sleek-looking front end, leaner body panels, a 9-litre fuel tank, and a flatter rally-style seat. Compared to the 21-inch and 17-inch wheel setup on the KTM 390 Adventure, this gets a 21-inch front and an 18-inch rear spoked wheel.
Tata Motors crosses 71,000 passenger car sales in January 2026
Tata Motors has sold over 71,000 passenger cars in January 2026. Of these, 822 unit sales are from the international markets, while the remaining 70,222 unit sales are from the Indian market. Amongst these, the Tata Nexon nameplate (including both ICE and EV versions) has secured its highest-ever sales of over 23,000 units.
3 reasons to buy the Simple One Gen 2 and 2 to skip
Simple Gen 2 was launched recently with two battery pack options – 4.5kWh and 5kWh, we got to experience the latter and here are a few reasons why you should buy the Simple One and two reasons to skip it.
Mercedes-AMG CLE Mythos with V8 teased
Photos of a Mercedes-Benz coupe prototype wrapped in camouflage and ripping through the snow-blanketed landscape of Sweden have been released by the German marque. Mercedes confirmed in a press release that the car being tested is based on the CLE. It also stated that this will be the second model belonging to the exclusive Mythos series – first being the limited-run SL Roadster-based PureSpeed in 2024. With its uncanny resemblance to the CLE 53 Coupe, this is likely a new AMG V8-powered CLE.
Mercedes-AMG CLE Mythos with V8 teased
Photos of a Mercedes-Benz coupe prototype wrapped in camouflage and ripping through the snow-blanketed landscape of Sweden have been released by the German marque. Mercedes confirmed in a press release that the car being tested is based on the CLE. It also stated that this will be the second model belonging to the exclusive Mythos series – first being the limited-run SL Roadster-based PureSpeed in 2024. With its uncanny resemblance to the CLE 53 Coupe, this is likely a new AMG V8-powered CLE.
Vespa 946 horse edition scooter revealed
Over the years, Vespa has produced many special edition models based on its 946 scooter, some in conjunction with the Chinese Zodiac signs for each calendar year. 2026 being the year of the horse, the Italian scooter maker has revealed a special Vespa 946 Horse.
Union Budget 2026-27: What it means for consumers and the automobile industry
Given the GST reforms in September last year, which reduced taxes across nearly all passenger vehicle sectors, there were few direct auto manufacturing and sales-specific announcements at the 2026-27 budget. However, the budget proposed by Union Finance Minister Nirmala Sitharaman had benefits which would help the Indian automobile industry.
What to expect from the BMW X3 30 xDrive M Sport Pro
BMW India will soon launch a new variant of the X3 SUV: the 30 xDrive M Sport Pro. Slightly perplexing nomenclature aside, the upcoming X3 variant will introduce a more powerful state of tune for the existing petrol engine, as well as some sporty exterior fitments. Below, we’ve laid out everything you can expect from the X3 30 xDrive M Sport Pro ahead of launch.
Opinion: How TVS became No.3 globally
2025 will go down as a landmark year for TVS for a number of reasons, but it will perhaps be remembered most for being the year when the company became the third largest two-wheeler manufacturer in the world. What was Yamaha’s domain for years behind Honda and Hero is now TVS territory. Official figures are not yet out, but Yamaha guided its investors that the company was expected to post volumes of just under 5 million units being sold in the last calendar year. TVS clocked 5.38 million units in the same period, which is a margin that quite decisively settles the ranking.
5 Things to know before buying the 2026 Kawasaki Z650RS
Source Credit: Azaman Chothia, Autocar India

The Kawasaki Z650RS combines retro style with modern technology. Kawasaki have given it styling elements like a classic round LED headlight, analogue dials, 70’s influenced bodywork and paint scheme, plus a twin-cylinder engine, to create a stunning neo-retro motorcycle.
Read More >>

📰 International

Recall alert: Why automaker Toyota is recalling over 1,61,000 vehicles in the US — All you need to know
Toyota is reportedly recalling around 1,61,268 vehicles in the United States over issues with the rear-view camera display while reversing, Reuters reported on 31 January, citing the National Highway Traffic Safety Administration (NHTSA).
Read More >>


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