Caution stems from the yet-to-be-finalised CAFE 3 norms, expected in April 2027.Passenger vehicle manufacturers are entering 2026 with a measured product strategy, despite the demand revival triggered by GST rate cuts in late 2025, according to a report by Financial Express. Instead of brand-new models, most companies are preparing a year dominated by facelifts, mid-cycle upgrades and feature enhancements to keep existing line-ups competitive.
The compact and midsize SUV segments in the ₹10–20 lakh range will continue to see the most activity, supported by strong demand from first-time buyers and upgraders. Electric vehicles will gain visibility, though adoption will vary by segment and affordability.
Caution stems from the yet-to-be-finalised CAFE 3 norms, expected in April 2027. With uncertainty around future platform and powertrain requirements, manufacturers are prioritising design tweaks, safety enhancements and connectivity upgrades over costly new engineering programmes.
Brand-Wise Rollout Plans
Tata Motors will begin with the Punch facelift, followed by the Sierra EV, and multiple smaller updates.
Maruti Suzuki will debut the eVitara EV in January, alongside Toyota’s Urban Cruiser EV; both OEMs will refresh the Brezza, Grand Vitara, Baleno and Fronx, with equivalent updates for Toyota’s Glanza, Taisor and Hyryder.
Mahindra will focus on the updated XUV700 (XUV7XO) and Scorpio N facelift, as its Nu-IQ platform remains a late-2026 or early-2027 prospect.
Hyundai will roll out facelifts for the Verna and Exter and preview a new compact SUV below the Venue; Kia will bring the Sorento and the long-awaited Syros EV.
Renault will relaunch the Duster on January 26 with a three-row variant to follow; Nissan will introduce the Tekton SUV and a Triber-based MPV.
Honda will shift focus to premium imports such as the ZR-V and Prelude.
Volkswagen and Å koda will refresh the Taigun, Kushaq, Virtus and Slavia and introduce the three-row VW Tayron.
VinFast, the newest entrant, will roll out the Limo Green electric MPV.
Luxury Segment Updates
Audi will introduce the new Q3 and A6 e-tron; BMW will bring the i5 LWB and the next-generation iX3, followed by updates to the 7 Series; Mercedes-Benz will add the CLA EV and carry out mid-cycle updates across its portfolio.
According to Ravi Bhatia of JATO Dynamics, automakers are using 2026 to refine feature packaging, adjust pricing and prepare for heightened competition once regulatory clarity emerges post-CAFE 3.
