New Delhi: India’s leading carmakers like Maruti Suzuki, Tata Motors and Mahindra & Mahindra (M&M) have lined up for launch over 30 vehicles in the ongoing calendar year—the highest scheduled in the last five years—to add on to the momentum in the market where demand has seen a huge spurt since the tax reset by the Centre.
While Renault is set to take the covers off the next-generation Duster later this month, Maruti Suzuki will commence sales of its first EV SUV e-Vitara next month. Electric vehicles, in fact, are set to dominate the stage in the coming months with Tata Motors set to drive in two new cars including the Sierra EV in the upcoming quarter.
Also, on the cards are three new electric cars from Vietnamese carmaker VinFast, two new models from Chinese EV maker Leapmotor (which in collaboration with Citroen is set to foray into the market later this year), and an electric SUV from the stable of Toyota Kirloskar Motor (TKM), among others.
Overall, as many as 31 new vehicles are set to hit roads by the close of the year, up from 19 in CY25 and 10-11 vehicles introduced in the local market every year since CY21.
Tapan Ghosh, CEO, VinFast India, confirmed the company plans to introduce three new models to the Indian market in the ongoing calendar year. “We will begin with launching 7-seater MPV. This is a premium yet practical electric MPV developed with both family and commercial use in mind. It reflects how we see EV adoption evolving in India, not only as a personal choice, but also as a shared and fleet-based solution. Beyond that, additional models will follow, each addressing different segments and needs,” Ghosh said, adding, VinFast is also working on doubling its distribution network this year to tap into the latent demand in the local market.
Ravi Bhatia, president at automotive consultancy firm Jato Dynamics, said despite the heavy launch activity, consumer demand in the ongoing calendar year is likely to remain stable rather than grow sharply. “Most launches are facelifts/refreshes, especially among large OEMs, which should help defend market share and improve mix, not materially lift industry volumes.
SUVs—particularly mid-size and premium SUVs—will continue to drive demand, but increasing crowding in these segments will mean intense competition and share splits, limiting outsized volume growth. Small cars/hatches are likely to stay weak,” Bhatia informed.
As regards electric vehicles Bhatia said new launches will help shape portfolios more than near-term demand. “In CY26, EVs (share will) remain low single-digit in (total) volumes, though they form a rising share of new launches. He explained, “Adoption will stay urban and premium-skewed, with limited disruption to ICE (internal combustion engine) demand near term. The bigger impact of EVs is on regulatory compliance, cost structures and competitive positioning, with leaders better placed as CAFE norms tighten beyond CY27.”
Passenger vehicle sales closed on a strong note growing by 26.8 per cent, year-on-year, last month pushing up annual volumes by 5 per cent to a record 4.49 million units in CY25. December was the third straight month when the industry has posted strong double-digit growth in sales post GST cut, which became effective from September 22, 2025. Car sales had grown by 18.7 per cent in November and by 17.2 per cent in October, 2025.
As much as 56 per cent of industry sales last year came in from SUVs. Hatchback volumes remained largely flat despite the tax rationalisation measures undertaken by the government.
Shailesh Chandra, president at industry body Society of Indian Automobile Manufacturers (SIAM), said earlier this month that while the year (CY25) began with a subdued first half, and the industry continued to navigate supply side challenges, multiple structural policy reforms including the income tax relief, successive repo rate cuts and the rollout of GST 2.0 laid the foundation for a positive demand environment.
“The reduction of GST rates made vehicles more affordable and injected momentum into the sector,” he said, adding, the industry expects the positive momentum to continue well into 2026.
