AUTOMAKERS FUEL EFFICIENCY
Caught between costly inputs and cautious buyers, India Inc takes a hit
Companies in India's consumer goods, automobile, and paints sectors are increasing prices to offset rising costs. The West Asia conflict has severely impacted input and logistics expenses across various industries. While some companies have raised prices, they are still absorbing part of these costs to maintain demand. Consumer giants like Hindustan Unilever and Asian Paints report pressure on their margins despite price hikes.
Drought threatens India's 20% ethanol blending target as food takes priority
India faces a significant challenge in its ethanol production due to the lowest monsoon rainfall experienced in over a decade. This situation has prompted New Delhi to prioritize food security over its ethanol blending targets. Estimates suggest that the ethanol blending ratio may decrease this supply year from 20% to around 15%. Producers are being squeezed by increased corn prices and reduced purchasing prices for ethanol.
Kia India clocks highest-ever monthly sales of 33,462 units in October, up 13.22%
Kia India recorded its highest-ever monthly wholesales at 33,462 units in October 2026, up 13.22% year-on-year, surpassing its previous record set in September. Cumulative sales rose 21.31% to 2,86,470 units during January-October, exceeding the automaker's full-year 2025 sales, with festive demand and multiple powertrains supporting growth.
Volkswagen freezes India EV investment as JSW partnership talks continue
Volkswagen has paused further investment in its India electric-vehicle programme pending greater clarity on a potential partnership with Sajjan Jindal’s JSW Group. The German automaker has completed preliminary design work using a low-cost EV platform developed for China but awaits a clearer business plan. The pause could delay its India EV push as competition intensifies and affordable electric-car sales accelerate.
Renault India’s hybrid-CNG bet could transform its sales mix: CEO Stephane Deblaise
Renault is focusing on hybrid and CNG vehicles to enhance its presence in the Indian market. CEO Stephane Deblaise indicated these vehicles could comprise half of their sales mix in the next two to three years. The company has launched a strong hybrid Duster SUV and plans to introduce CNG models thereafter. Renault aims for a 3-5% market share by 2030 through its strategy of offering seven models in India.
India passenger vehicle sales rise 22% to 4.54 lakh units in September: SIAM
September 2026 marked a pivotal month for India's automotive sector, with car sales climbing by 22%, reflecting strong consumer interest. Ahead of the festive season, manufacturers stepped up shipments, while two-wheeler sales also surged by 13.5%. This upward trend was bolstered by enhancements in affordability and infrastructure. Despite ongoing global geopolitical tensions, optimism about maintaining this demand growth remains high.
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Cheaper to run, but costlier to buy? New CAFE III rules kick in from April 2027; here's how your next car could be affected
India’s CAFE III fuel-efficiency norms will take effect from April 1, 2027, tightening fleet-average targets for automakers until March 2032. The rules offer incentives for electric vehicles, hybrids, flex-fuel cars and fuel-saving technologies. But will they make cars cheaper to run or push up showroom prices? Here’s how the new standards could affect vehicle costs and what buyers should consider before purchasing their next car.
Why electric vehicles sales are lukewarm in America, but hot in Europe
Electric vehicle sales in the United States have dropped 30.7% this year following the expiration of a federal subsidy. In contrast, European buyers have embraced electric vehicles, significantly increasing their market share amid rising fuel prices. Many US automakers have discontinued electric models, with buyers shifting towards hybrids and used EVs. Meanwhile, certain EV-only brands like Tesla and Rivian continue to perform better than traditional automakers' electric offerings.
Half a dozen small hybrids getting ready for Indian launch
Automakers including Maruti Suzuki, Hyundai, Toyota and Renault are preparing around half a dozen small hybrid vehicles for India over the next 18-24 months, drawn by lower 18% GST on compact cars and tighter CAFE 3 norms. The sub-four-metre segment’s strong growth is also encouraging manufacturers to pursue affordable hybrids.
Your car knows where you go. Insurers, lenders and automakers want to know too
Connected cars continuously generate data regarding various attributes like location, driving patterns, and vehicle diagnostics. This data collection offers manufacturers and service providers insights to enhance their offerings. Diverse stakeholders can leverage this information, including insurers and fleet managers, to better assess risks and operational efficiencies. However, concerns about data privacy and user consent complicate the monetization landscape.
Fuel-efficiency rules 2027: How CAFE-III norms will affect EVs, hybrids, small cars & petrol vehicles
India’s CAFE-III norms will come into force from April 1, 2027, tightening fleet-wide fuel-efficiency targets for passenger vehicle manufacturers until March 2032. The framework offers higher compliance benefits for EVs, hybrids and alternative-fuel vehicles, allows credit trading and incentives for fuel-saving technologies, and introduces carbon-neutrality factors. The rules could influence automakers’ product strategies and future vehicle choices.
CAFE-III gives auto industry investment clarity, supports cleaner technology adoption: Industry Experts
Industry leaders have welcomed India’s CAFE-III norms, saying the five-year framework provides automakers with greater policy certainty for technology investments and innovation. SIAM, Mahindra and the All India Distillers’ Association highlighted the balance between environmental goals, industry feasibility and energy security. The norms also recognise EVs, hybrids, ethanol-blended fuels and flex-fuel vehicles, supporting wider clean-mobility and biofuel adoption.
Stricter CAFE III norms notified for automakers: Cos need to cut average fuel usage of PV fleets over a 5-year period
The Indian government has rolled out the CAFE III guidelines, pushing automakers to significantly reduce fuel consumption. This will entail a consistent decline in the average fuel usage of passenger cars over the next five years.
In CAFE 3, auto companies have wider choices and a better view of the road
India's new CAFE 3 emission norms are set to reshape automakers' investment strategies by promoting cleaner technologies alongside electric vehicles. These regulations introduce a credit system for various powertrains, encouraging firms to rethink their portfolios and investments through March 2032. This shift could impact companies heavily invested in battery EVs, offering a broader compliance path for others.
New BMW 3 Series unveiled: Check i3, M350 xDrive price, range, features and more
BMW has introduced the eighth-generation 3 Series, featuring a fully electric i3 promising impressive range capabilities. The petrol variant, M350 xDrive, offers swift acceleration and innovative driving modes. Launching with two electric models, the new series integrates advanced Neue Klasse technology for enhanced performance. Additionally, BMW plans to expand its line with a plug-in hybrid option within the year.
CAFE III fuel efficiency norms notified for cars: 3x credit for battery EVs, no special benefit for small cars
The Indian government has announced Corporate Average Fuel Economy norms for passenger vehicles effective from April 2027. These standards include fuel consumption calculations based on various vehicle types, including electric and hybrid models. Manufacturers must report CO2 emissions and actual fuel consumption annually to ensure compliance. A system of credits and debits will be established for vehicle manufacturers based on their compliance levels.
Why is Trump administration looking to implement new lower fuel economy standards in US?
New lower vehicle fuel economy standards are being set by the Trump administration. The move will reduce the technology costs of the automakers and help them sell gas-powered vehicles. The new vehicles' cost will decrease but the fuel consumption and carbon dioxide emissions will increase for decades.
US fuel economy standards: Trump admin set to roll out new regime for cars, light trucks
The Trump administration is set to announce relaxed fuel economy standards affecting gasoline cars and light trucks. These changes aim to lower mileage requirements, impacting automakers' pollution control measures. Secretary of Transportation Sean Duffy has said these new rules will enhance access to various gasoline vehicles.
Trump says he approved fuel economy standards ending Biden EV mandate
US President Donald Trump has announced new fuel economy standards that reverse the previous administration's policies. These new standards aim to simplify car manufacturing in America and lower consumer prices. Families are expected to save significantly when purchasing new vehicles under these guidelines. The Trump administration plans to implement sharply lower fuel-efficiency standards soon. This move signals a shift away from promoting electric vehicles towards more traditional fuel consumption.
Suzuki to cut vehicle development time by half by 2030; India capacity target at 4 million
Suzuki Motor Corporation plans to halve vehicle development times by 2030 as it overhauls manufacturing and engineering processes, targeting 30% higher development efficiency and 50% greater factory productivity. The Maruti Suzuki parent also aims to raise India’s annual production capacity to 4 million vehicles from 2.9 million currently.
Hyundai Motor India opens booking for Bayon at Rs 11,000; check how to book, specifications & more
Hyundai Motor India Limited has announced the opening of bookings for the Hyundai Bayon, which features advanced technology. The Bayon includes an in-built generative AI voice assistant and is based on the Global K Enhanced Platform. It is specifically designed for Indian customers seeking intelligence, comfort, and style in their vehicles. Interested customers can book the SUV online or at any authorized dealership with an initial payment.
India’s cab game has a new green player: A Vietnamese behemoth aiming to win fast
Green SM enters India with a controlled electric vehicle fleet, challenging the aggregator model. This Vietnamese company aims for a premium segment, unlike Uber and Ola's mass-market approach. BluSmart's prior electric fleet operations faced challenges after regulatory issues arose. Green SM's strategy is closely linked to VinFast, its parent automotive ecosystem. Success hinges on managing fleet costs and attracting customers to its premium electric service.
How Trump's war on EVs derailed America's auto-factory revival | Explained
US electric vehicle projects and jobs face setbacks due to policy shifts. Automakers canceled billions in investments and thousands of jobs were lost. Many affected states supported Donald Trump in the 2024 election. This situation contrasts with China and Europe's EV market growth. The industry now focuses on energy storage batteries and gasoline vehicles.
Supreme Court dismisses PIL seeking disclosure of ethanol content in petrol at fuel pumps
The Supreme Court on Monday refused to entertain a public interest litigation seeking mandatory disclosure of the exact ethanol content in petrol sold at fuel pumps across India. The plea sought prominent displays at stations and the inclusion of ethanol percentage on fuel receipts and invoices issued to consumers nationwide.
India proposes CAFE-III norms to tighten fuel efficiency standards for passenger vehicles
New fuel economy standards for passenger vehicles are proposed by the Ministry of Power. These Corporate Average Fuel Economy-III norms will apply from 2027-28 to 2031-32. Carmakers must meet fleet-wide fuel efficiency targets under the proposed rules. The aim is to improve fuel efficiency and lower vehicle emissions across India.
India trims fuel efficiency penalties for automakers to Rs 2,728 crore from earlier estimates
India has taken a bold step toward incentivising fuel efficiency in the automotive sector, cutting penalties for companies that fall short of their targets to Rs 2,728 crore—markedly lower than before. This revised fine will impact nine carmakers over the next three years.
Automakers may get to trade fuel-efficiency credits to meet stricter CAFE norms
India is introducing a new system for automakers to trade fuel-efficiency credits. This will help companies meet stricter Corporate Average Fuel Efficiency norms. Manufacturers exceeding targets can sell surplus credits to those falling behind. This market-based approach aims to encourage cleaner vehicle technologies. Electric vehicles will receive more credits than fuel-efficient internal combustion engine cars.
Auto companies push for easing of fuel efficiency norms
Automakers are urging the government to relax new CAFE III fuel efficiency norms, set to begin in April 2027, due to the low penetration of electric vehicles. They argue current standards are too stringent without significant EV adoption and seek calculations based on the MIDC cycle.
Passenger vehicle makers miss fuel efficiency targets
Indian makers of passengers vehicles comprising cars, vans, and utility vehicles achieved corporate average fuel economy (CAFE)- a measure of carbon emission of a vehicle - of 116.78 gm per km in the year ended March 31 2023, missing the target of 113 gm per km set by the MoRTH, said several people aware of developments.
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