Passenger vehicle manufacturers may have seen a revival in demand in the second half of 2025 following the GST rate cuts, but this is not expected to translate into a flurry of brand-new launches in 2026.Â
Instead, most companies are preparing a year centred on facelifts, mid-cycle updates and feature enhancements aimed at keeping existing models relevant.Â
The emphasis is on incremental improvements rather than introducing completely new products, reflecting both market realities and regulatory caution.
Strategic Caution
The strongest activity will continue to be concentrated in the compact and midsize SUV categories, especially in the `10-20 lakh price band, where demand from both first-time buyers and upgraders remains steady. Electric vehicles will have a higher profile, though adoption will still vary depending on segment and affordability.Â
Much of the industry’s measured planning stems from the expected CAFE 3 norms due in April 2027, which are likely to influence decisions around new platforms and powertrains. Until there is more clarity, manufacturers are favouring design updates, added connectivity, safety upgrades and better equipment over large engineering changes.
Brand-Wise Update Plans
Among mass-market brands, Tata Motors is likely to begin the year with the Punch facelift, followed by the long-awaited Sierra EV before the end of the first quarter. Several smaller updates across its wider portfolio are also expected through the year.
Maruti Suzuki will make its entry into the EV market in January with the eVitara, shortly followed by Toyota’s Urban Cruiser EV, its badge-engineered counterpart, both offering an estimated 543 km range. Beyond these EVs, 2026 will bring refreshed versions of the Brezza, Grand Vitara, Baleno and Fronx, with Toyota applying corresponding changes to the Glanza, Taisor and Hyryder.
Mahindra will also centre much of its activity on updates. The refreshed XUV700, expected to be branded as XUV7XO, will arrive in January, followed by the Scorpio N facelift with added equipment and technology. The company’s next-generation Nu-IQ platform is still under development and unlikely to reach showrooms before late 2026 or early 2027, keeping the focus squarely on existing models for much of the year.
Hyundai will adopt a similar path, starting with facelifts for the Verna and Exter. It does have an all-new compact SUV planned below the Venue, but most other introductions in 2026, apart from the next i20, will largely be evolutionary. Hyundai is expected to preview its Punch EV rival late in the year, though a market launch will follow only in 2027. Kia’s key additions will be the Sorento, positioned above the new Seltos, and the long-awaited Syros EV.
Renault will reintroduce the Duster on January 26, with a three-row variant to follow, while Nissan prepares the Duster-based Tekton SUV and an MPV derived from the Triber. Honda will shift its attention to premium imports, including the ZR-V SUV and the Prelude coupe. Volkswagen and Å koda will continue their coordinated refresh cycle with facelifts for the Taigun, Kushaq, Virtus and Slavia, along with the new three-row VW Tayron. New entrant VinFast will launch the Limo Green, an electric MPV for both personal and fleet use.
Luxury marques will also update important models. Audi is looking to introduce the new Q3 and the A6 e-tron, while BMW will bring in the i5 LWB and the next-generation iX3, with updates to the 7 Series and i7 can be expected later in the year. Mercedes-Benz will add the new CLA EV and a round of mid-cycle revisions across parts of its line-up.
According to industry observer Ravi Bhatia of JATO Dynamics, product planners are using this period to keep portfolios fresh, refine feature packaging and reassess pricing as they prepare for the next phase of competition.
