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Hyundai to begin Talegaon plant operations in Q3; with Chennai unit, annual output to top 1 million
Business Line | 7 August 2025
- Hyundai Motor India will commence operations at its new Talegaon, Maharashtra plant in Q3 FY26, adding an initial 170,000 units to its annual capacity.
- Combined with its Chennai plant (824,000 units), this will push Hyundai's total annual production capacity in India beyond 1 million units.
- The expansion aims to achieve over 90% capacity utilization, deepen localization efforts around Talegaon, and includes a new engine plant with a 150,000-unit annual capacity.
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Bharat Forge Q1 results resilient amidst export headwinds
Business Line | 7 August 2025
- Bharat Forge reported resilient Q1 FY26 results with standalone revenue of ₹2,105 crore and a healthy EBITDA margin of 27.9%, despite a 12.7% decline in exports.
- Strong domestic performance in passenger vehicle and industrial segments, along with a robust defence order book of ₹9,463 crore, supported the quarter.
- The company secured new orders worth ₹847 crore during the quarter, including ₹269 crore in the defence sector.
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Automobile OEMs to switch to rare-earth magnet alternatives
Business Line | 7 August 2025
- Indian automakers are accelerating plans to adopt rare-earth magnet-free components for EVs due to a supply crunch, as China has not approved 30 Indian applications for heavy rare-earth magnet procurement.
- Limited proven alternatives like ceramic magnets or graphene-based tech exist, as rare-earth magnets are critical for high performance, efficiency, and compact size in EV motors.
- Experts view China's export restrictions as a deliberate strategy to promote its own components and assemblies and push global prices higher.
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Carmakers Could Face Steep Fines for Emission Violations
The Economic Times | 7 August 2025
- The government has drafted rules empowering the Bureau of Energy Efficiency (BEE) to enforce CAFE (Corporate Average Fuel Efficiency) norms and impose penalties on non-compliant carmakers.
- Penalties will be proportional to the shortfall in emission targets and will be credited to a central fund, with 80% distributed to states based on the sales share of non-compliant models.
- An assessment found eight carmakers, including Kia, Renault, and M&M, breached FY23 limits, potentially facing penalties totalling around ₹1,300 crore.
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Flood, landslides may hit auto sales in coming months: FADA
Business Line | 8 August 2025
- The Federation of Automobile Dealers Associations (FADA) warns that localized floods and landslides could hamper automobile sales in the coming months, despite a broadly supportive monsoon outlook.
- External headwinds from new US tariffs on Indian exports have caused market volatility, which could erode consumer confidence and put downward pressure on discretionary spending like vehicle purchases.
- Overall auto retail sales declined 4.31% year-on-year in July 2025, with the two-wheeler segment seeing a significant 6.48% drop, though commercial vehicles, three-wheelers, and tractors showed marginal growth.
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Philippines to get first batch of 50 locally assembled Ashok Leyland LCVs
Business Line | 9 August 2025
- The Hinduja Group announced the first batch of 50 locally assembled Ashok Leyland light commercial vehicles (LCVs) for the Philippines during a meeting with President Ferdinand Marcos Jr.
- The meeting aimed to strengthen strategic partnerships and invite Hinduja Group investments in defence, energy, automotive, and digital technology in the Philippines.
- Hinduja Global Solutions (HGS) also signed a letter of intent with the Philippine government to significantly expand its local business operations.
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Hyundai achieves 82% localisation in FY25, up from 78% a year ago
Business Line | 11 August 2025
- Hyundai Motor India increased its localisation level for ICE vehicles to 82% in FY25, up from 78% the previous year, by localising over 1,200 components since 2019.
- The company is building a holistic EV ecosystem, including localised battery pack assembly and plans for cell localisation through partnerships to boost cost efficiency.
- Initiatives like 'Make in India' and 'Aatmanirbhar Bharat' are credited for driving the localisation of critical components like engines, transmissions, and EV batteries.
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Auto parts makers gear up for profit squeeze
The Times of India | 13 August 2025
- New US tariffs threaten Indian auto component exports, with nearly $7 billion of exports facing duties; $6 billion at 25% and $1 billion at a reciprocal 50% rate.
- Profit margins are expected to be squeezed as US customers may seek price cuts to share the tariff burden, and some clients may explore alternative supply chains from lower-cost countries.
- The impact will vary by product, with 30-40% of exports coming from programs where India is one of multiple suppliers, making it vulnerable to being replaced.
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PV despatches in reverse gear for 3rd straight mth in July
Business Standard | 15 August 2025
- Passenger vehicle (PV) dispatches to dealers declined 0.2% YoY in July, marking the third consecutive month of decline, due to high inventory levels (55 days) and muted urban demand.
- Despite the wholesale slowdown, the industry is cautiously optimistic for the upcoming festival season, expecting demand to be supported by good monsoons and potential MSP hikes.
- Two-wheeler and three-wheeler dispatches showed strong growth of 8.7% and 17.5% respectively, while PV exports grew 8.7% on a low base.
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EV 4-wheeler registrations up 12% m-o-m in July; e2Ws down 3.5% : Vahan
Business Line | 3 August 2025
- Electric four-wheeler (e4W) registrations grew 12% month-on-month in July, led by strong growth from JSW MG Motor (+16%), Tata Motors (+51%), and Hyundai (+12%).
- In contrast, electric two-wheeler (e2W) registrations declined by 3.5%, highlighting a divergence in segment performance.
- Industry experts caution that the e4W growth momentum faces challenges from high costs, charging infrastructure gaps, and potential disruptions from China's rare-earth magnet supply issues.
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VinFast rolls out assembly unit for EVs in Thoothukudi
Business Standard | 5 August 2025
- Vietnamese EV maker VinFast inaugurated its EV assembly plant in Thoothukudi, Tamil Nadu, with a total planned investment of ₹16,000 crore (₹4,300 cr in first phase).
- The plant, built in a record 17 months, has an initial capacity of 50,000 vehicles per year (scalable to 150,000) and will focus on assembling premium electric SUVs VF 7 and VF 6.
- VinFast aims to develop Thoothukudi into its largest export hub for South Asia, West Asia, and Africa, creating thousands of direct and indirect jobs.
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Tesla leases space for second India showroom in Gurugram
Business Standard | 6 August 2025
- Tesla has leased a 33,475 sq. ft. space in Gurugram for a showroom, service, and delivery centre, marking its second retail location in India after its recent Mumbai launch.
- The nine-year lease comes with a monthly rent of ₹40.47 lakh, escalating 4.75% annually, and includes a security deposit of ₹2.44 crore.
- This expansion is part of Tesla's continued investment in the Indian market, following earlier leases for offices and a warehouse in Pune and Mumbai.
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18 R&D Proposals Shortlisted for EV Parts
The Economic Times | 6 August 2025
- The government has shortlisted 18 R&D proposals for EV subsystems like wireless chargers and traction motors to boost local manufacturing and reduce import dependence.
- Projects must be near commercialization (Technology Readiness Level 7+) and will be executed by consortia of industry, academia, and government, with a minimum 20% industry cash contribution.
- Companies using the successfully developed technology will pay a 3% royalty on net sales to MeitY, which will be applicable until the total royalty equals 1.6 times the grant received.
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EV car sales nearly doubled in July
Business Standard | 9 August 2025
- Electric passenger vehicle (ePV) retail sales nearly doubled (up 99% YoY) in July 2025, with their market share rising to 4.7% from 2.4% a year ago.
- Tata Motors and JSW MG Motor led the market with strong growth, while Mahindra, Hyundai, and BYD also posted significant YoY gains on smaller volumes.
- In contrast, electric two-wheeler (e2W) sales fell 4.3% YoY, with leading players like Ola, TVS, and Bajaj reporting monthly declines.
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Electric 2W manufacturing loses charge on rare earth shortage
Business Standard | 11 August 2025
- A global shortage of heavy rare-earth magnets from China is forcing Indian e2W makers to slash production (e.g., Bajaj Auto cut output by 50% in July) and fast-track magnet-free motor designs.
- Companies are managing the crisis differently: TVS is using local stocks, Hero claims secured supplies for Q2, and Ola says it's unaffected due to its upcoming in-house magnet-free motor design.
- The crunch is expected to increase costs for the industry due to the need for alternative suppliers or motor technologies, even if outright production stops are avoided.
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Tractor sales plunge 40% m-o-m in July
Business Line | 12 August 2025
- Tractor sales fell nearly 40% month-on-month in July 2025, following a cyclical pattern where sales peak in June post-harvest and slow down in July.
- Despite the monthly drop, sales were up 8% year-on-year, indicating underlying healthy demand supported by a good monsoon and kharif sowing.
- The decline is attributed to OEMs moderating dispatches to dealers to manage inventory levels after heavy stocking in June, a typical annual occurrence.
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JSW Steel, JFE to invest ₹5.8K cr to spur steel output
Business Standard | 5 August 2025
- JSW Steel and Japan's JFE will invest ₹5,845 crore to expand production of grain-oriented electrical steel (GOES) in their Vijayanagar and Nashik joint ventures.
- This investment will increase their total GOES capacity to 350,000 tonnes per annum, crucial for making energy-efficient transformers and generators.
- The expansion aims to enable import substitution and support India's green energy transition and digital infrastructure development.
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Eye on EU carbon levy, govt to incentivise steel-makers for cutting CO₂ emissions
Business Line | 15 August 2025
- The government is preparing a policy to financially reward steelmakers for proven reductions in carbon emission intensity, to protect exports from the EU's carbon border tax (CBAM).
- Mills will earn ₹100 for every 0.1 tonne of CO₂ reduced per tonne of steel produced, with an annual cap of ₹1,000 per tonne; no payout if emissions don't improve.
- The scheme (FY27-FY31) aims to cover 60 million tonnes of "sustainable steel" and requires independent verification of emission data to prevent manipulation.
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Just 1/5th of auto PLI firms have products cleared for incentives
Business Standard | 4 August 2025
- Only 16 out of 84 companies eligible under the auto PLI scheme have met the 50% Domestic Value Addition (DVA) criteria to qualify for incentives, with just 107 models/components approved.
- China's restrictions on rare-earth magnet exports are making it harder for companies, especially those making motors, to achieve the localization target, prompting calls to exclude motors from DVA calculation.
- The scheme's disbursement has been slow, with only ₹322 crore paid out by Dec 2024 against a revised FY25 allocation of ₹346.87 crore, though FY26 has a larger allocation of ₹2,818 crore.
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NITI Aayog bats for national EV policy with clear targets
Business Line | 5 August 2025
- NITI Aayog recommended a national EV policy with clear targets, phased mandates, and a regulatory framework to accelerate India's transition to electric mobility.
- It suggested expanding CAFE norms, creating a pooled fund for low-interest loans on e-buses, and scaling R&D to reduce battery costs and reliance on imported materials.
- Its 'India E-Mobility Index' ranked Delhi and Maharashtra as frontrunners in EV adoption, while Haryana and Karnataka led in charging infrastructure readiness.
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Govt, auto majors differ over use of ethanol-blended petrol
Business Line | 5 August 2025
- The government claims the mileage drop from E20 fuel is marginal (1-6%) and can be minimized with engine tuning, while downplaying corrosion risks as fixable by replacing cheap rubber parts.
- Automakers and experts warn that E20 is decidedly corrosive, can damage metal and non-compatible plastic/rubber parts in older vehicles, and may cause engine issues like poor combustion.
- Vehicles manufactured before April 2023 may require retrofitting with E20-compatible materials to run efficiently and avoid potential damage.
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PME-DRIVE scheme extended by 2 years
Business Standard | 9 August 2025
- The government claims the mileage drop from E20 fuel is marginal (1-6%) and can be minimized with engine tuning, while downplaying corrosion risks as fixable by replacing cheap rubber parts.
- Automakers and experts warn that E20 is decidedly corrosive, can damage metal and non-compatible plastic/rubber parts in older vehicles, and may cause engine issues like poor combustion.
- Vehicles manufactured before April 2023 may require retrofitting with E20-compatible materials to run efficiently and avoid potential damage.
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LS approves updated I-T bill, to ease compliance burden
The Times of India | 12 August 2025
- The Lok Sabha approved a new Income Tax Bill aimed at simplifying the decades-old law, easing compliance for individuals and companies, and promoting a transparent tax system.
- Key changes include reducing the time for filing TDS correction statements from 6 years to 2 years and providing flexibility for refund claims on late-filed returns.
- The revised bill incorporates most recommendations from a parliamentary panel, addressing previous concerns about ambiguities in house property taxation, pensions, and refunds.
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