According to a recent analysis by ICRA, the Indian automotive sector is poised for a period of normalised wholesale volume expansion in the fiscal year 2026–27. This forecast follows a phase of accelerated growth in the latter half of 2025–26, which was primarily fuelled by factors emerging from post-GST reforms and positive rural market sentiment. The industry is currently undergoing significant structural changes, most notably a shift towards premium products and an evolving mix of powertrain technologies, signalling a deep-seated change in consumer behaviour and technological adoption.

In the passenger vehicle segment, domestic wholesale figures for 2025–26 are anticipated to rise by 5–7 percent. This uptick is attributed to increased affordability resulting from GST rate adjustments, a robust need for vehicle replacement and a continuing inclination towards private transportation. The utility vehicle sub-segment is particularly benefiting from shifting consumer tastes and a surge in new model introductions. Concurrently, alternative powertrains like CNG, hybrids and electric vehicles are gaining traction due to regulatory influences and changing customer preferences. However, building on a high base and elevated inventory levels with dealers, the growth in passenger vehicle wholesales is expected to temper to a more moderate 4–6 percent in 2026–27.

The two-wheeler market is on a path of steady recovery, with an estimated growth of 6–9 percent in 2025–26. This is supported by strong agricultural performance, easier access to finance and better overall affordability. Mirroring the passenger vehicle segment, a trend towards premiumisation is evident, with demand for premium motorcycles and scooters rebounding sharply, while entry-level models continue to face headwinds due to elevated prices and affordability issues for lower-income consumers. The penetration of electric two-wheelers is set to increase progressively, though the industry must monitor supply-side factors such as the availability of rare earth magnets. Looking ahead to 2026–27, the segment's growth is projected to normalise to 3–5 percent.

The commercial vehicle sector is forecast to see wholesale volumes grow by 7–9 percent in 2025–26, driven by increased activity in light commercial vehicles and buses. While replacement demand, infrastructure projects and a stable economy provide a solid foundation, cumulative price increases from successive regulatory changes, like emission norm updates, pose a constraint on more robust expansion, particularly for trucks. For 2026–27, the overall growth for commercial vehicles is expected to settle at 4–6 percent. Within this, medium and heavy commercial vehicles are projected to grow by 5–7 percent, light commercial vehicles by 3–5 percent and the bus segment is likely to outperform with 7–9 percent growth, buoyed by significant replacement needs from state transport undertakings.

Across all these segments, the adoption of electric vehicles is predicted to rise substantially by the end of the decade. This transition will be most pronounced in two-wheelers, three-wheelers and buses, with passenger cars and light commercial vehicles also seeing a gradual increase from their current low base. This widespread shift will be enabled by sustained governmental policy support, the expansion of charging networks and a progressively lower total cost of ownership for electric models.

Srikumar Krishnamurthy, Senior Vice President & Co–Group Head – Corporate Ratings, ICRA, said, “The current fiscal has unfolded as a tale of two halves for the Indian automotive industry, with the first half witnessing subdued demand while the second half is seeing a strong recovery on the back of policy support and healthy rural demand. Industry sales volumes have been robust over the past few months, aided by the GST rate cut, pent–up demand, supportive rural output and conducive financing environment. Although demand sentiment remains optimistic, volumes are reaching levels that would weigh on the potential for outsized growth in 2026–27.

“The Indian automotive industry is currently at crossroads amid changing consumer preferences, technological advancements and focus on sustainability. ICRA expects the growth trajectory to continue in 2026–27 even as growth is likely to remain modest across segments. Over the medium term, vehicle electrification is expected to be a key structural theme, with EV penetration rising steadily across segments.”

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Continental has secured a global original equipment supply agreement for the new all-electric Renault Twingo. The latest generation of the compact vehicle is now being produced exclusively with the 18-inch Continental EcoContact 7 tyre as standard across all worldwide markets.

The selection of this specific tyre is underpinned by its superior performance on the EU tyre label, particularly regarding energy efficiency and rolling noise. These attributes are critical for electric vehicle applications, as low rolling resistance directly contributes to maximising the driving range per charge, while reduced noise emission ensures a more serene cabin environment.

The tyre’s exceptional energy efficiency stems from a novel rubber compound and the advanced Smart Energy Casing technology, which incorporates new materials to minimise internal friction. Efficiency is further amplified by an aerodynamically optimised sidewall, featuring a golf-ball-inspired ‘Aerodimple’ structure that reduces air turbulence and the energy required to maintain motion.

Furthermore, Continental has engineered the Silent Pattern tread design to specifically mitigate rolling noise. By meticulously calibrating the tread block spacing and angles to counteract low-speed urban frequencies, the tyre delivers a quieter experience for both passengers and surrounding communities. This tyre variant, size 205/45 R18 90H XL FR, has been homologated for the Twingo in numerous countries.

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Bridgestone UK has been named Tyre Manufacturer of the Year at the 2026 TyreSafe Awards, recognising its sustained efforts to improve road safety and influence driver behaviour across the country. The honour specifically highlights the effectiveness of the company’s 'Be a Road Safety Hero' initiative.

Since its inception, that campaign has reached over 24 million individuals, combining public education, retailer participation and direct engagement to translate awareness into practical action. More than 25 nationwide events have been held at venues ranging from supermarkets to tyre retail sites, resulting in over 10,500 complimentary safety inspections. Those checks uncovered more than 1,200 separate issues, including roughly 200 tyres deemed illegal for road use.

Beyond these hands-on clinics, the programme has distributed extensive educational resources and maintained visibility through digital media and targeted public relations. Partnerships with groups like Sporting Bears have helped convey safety messages to enthusiast communities, while Bridgestone staff have collectively logged over 10,000 volunteer hours in support of the campaign’s objectives.

Helen Roe, Senior Manager – Brand, Events, Product & Digital Marketing, said, "While we're naturally delighted to receive this recognition, what matters most to us is the impact the campaign is having beyond the award itself. Our 'Be a Bridgestone Road Safety Hero' campaign was designed to encourage drivers to take simple steps that can make a big difference, and we're proud that the campaign is helping to identify potentially dangerous tyres and prompting drivers to take action. Tyre safety isn’t something any one organisation can tackle alone. That’s why we’ve worked closely with our retailers and partners to take this message directly to motorists in ways that are practical, visible and engaging. To have carried out over 10,500 tyre checks over the last couple of years, demonstrates the scale of the challenge but also the power of education and collaboration. We see this award not as the finish line, but as motivation to continue championing safer roads for everyone.

“We’d also like to recognise and congratulate TyreSafe, on their 20th year anniversary, for bringing together so many to collaborate on raising tyre safety awareness in the UK and for their continued work with government, police and emergency services to raise the profile of tyre safety nationwide. Ultimately, tyres carry lives. With an estimated 6.1 million illegal tyres still on UK roads, raising awareness remains critical. Regular tyre checks are a simple step that can make a real difference – for drivers and for everyone around them.”

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Toyo Tires secured a dominant performance at the 58th SCORE Baja 500, with drivers Trey Gibbs and Gustavo Vildósola Sr. claiming victories in the Trophy Truck Spec and Legends classes, respectively. The championship-winning Open Country M/T-R tyres were instrumental in the success, particularly in the highly competitive Spec class, which boasted the largest field among the top five categories. Brent Fox added to the brand's success by finishing second in the Spec class, delivering a third podium finish for Team Toyo over the race weekend.

The second round of the 2026 SCORE World Desert Championship unfolded on a demanding 468.70-mile circuit through the northern Baja California peninsula. Driving the #215 Mason Motorsports / Toyo Tires / Ford Raptor, Gibbs achieved his maiden SCORE race victory with a winning time of 9 hours, 46 minutes and 7.59 seconds. This triumph extended Team Toyo’s remarkable winning streak in the Spec class to four consecutive years, a reign that began at the 2023 Baja 500. Fox secured the runner-up position in his #282 1Nine Industries / Ford Raptor, clocking in at 9 hours and 55 minutes to complete a one-two finish for the team.

In the Legends category, Vildósola Sr. returned to the top step of the podium behind the wheel of his #1L Mason Motorsports / Toyo Tires / Vildosola Racing / Ford Raptor. His winning effort, completed in 9 hours, 47 minutes and 56.17 seconds, marked his first victory of the season and extended his personal winning streak at the Baja 500 to five consecutive races, a run that started in 2022.

Looking ahead, Team Toyo aims to build on this momentum as the series progresses towards the Baja 400 in September. The brand’s legacy in the SCORE World Desert Championship remains extensive, with multiple victories across all major events. Notable wins include the San Felipe 250 on four occasions, the Baja 500 six times, the Baja 400 five times and the prestigious Baja 1000 six times, with a roster of accomplished drivers contributing to this storied record.

Gibbs said, “Winning the Baja 500 is something I’ve always dreamed of, and it still hasn’t fully hit me what my team and I accomplished over the weekend. Honestly, I don’t have the words to describe what this win feels like.”

Fox said, “Taking home second place in the Trophy Truck Spec class and completing the Baja 500 is something we’re really proud of. Thanks to Toyo Tires, we ran the entire race with no flats and zero issues.”

Stan Chen, Deputy Director – Consumer Marketing, Toyo Tire U.S.A. Corp, said, “Congratulations to Trey Gibbs on earning his first SCORE race victory this weekend, and to Gustavo Vildósola Sr. on adding another win to his accomplished career. Our drivers have continued to set the standard in the Spec and Legends classes at the Baja 500, and we’re proud of this past weekend’s continued success.”

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Tyres Europe has joined a broad coalition of industrial sectors calling on the European Union to adopt a more dynamic and forceful trade policy amid deliberations by the European Council on economic security, competitiveness and EU-China relations. The tyre industry contends that current frameworks are increasingly mismatched with the realities of a fast-moving global economy, where distortions rapidly transcend borders and sectors.

The sector underpins approximately 500,000 jobs across the Union and supplies essential products for passenger mobility, freight, agriculture and defence. Its viability depends on fair competition within deeply interconnected value chains, yet structural overcapacity, state-induced market distortions and unfair trading practices are simultaneously affecting multiple industries. These pressures cascade across supply networks, weaken investment incentives and progressively hollow out Europe's industrial base. Tyres Europe argues that only a coherent policy combining robust trade defence instruments with broader industrial resilience measures can effectively counter this erosion.

A critical challenge lies in the temporal disconnect between agile global supply chains and the slower pace of EU investigations and duty implementation. Tyre manufacturing routes can be reconfigured within months, allowing exporters to front-load shipments during probes and redirect production to alternative locations once tariffs are imposed. This leaves European manufacturers under sustained competitive pressure even after investigations conclude. Tyres Europe has therefore endorsed the Joint Industry Statement, which urges a more ambitious application of trade policy that reflects the fundamentally altered contours of global commerce.

The organisation supports enhanced resources for investigations, a more proactive deployment of existing instruments aligned with industrial objectives and exploration of additional WTO-compatible tools to tackle systemic state-induced distortions. It also advocates for strategic use of the Foreign Subsidies Regulation to address recurrent distortive patterns beyond isolated case assessments. Given that tyre manufacturing involves long-term, capital-intensive decisions with near-irreversible capacity loss, preserving a competitive domestic base is framed as both an industrial goal and a matter of strategic autonomy. As European leaders shape their response to a volatile trading environment, Tyres Europe urges them to ensure that trade defence evolves to safeguard fairness and the industrial capabilities underpinning prosperity and innovation.

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