The passenger vehicle market may be becoming increasingly concentrated, but a clutch of global automakers and new entrants are preparing a fresh investment and product offensive aimed at strengthening their presence.
The push comes even as Maruti Suzuki India, Hyundai Motor India, Mahindra & Mahindra and Tata Motors together accounted for 78.28% of industry sales in April 2026, underscoring the growing dominance of the top four manufacturers.
Rivals, including Toyota, Honda, Renault, Nissan, Volkswagen, Skoda, Stellantis and MG Motor, along with new entrant JSW Motors, are responding with new factories, local product development programmes, SUVs, hybrids and electric vehicles.
Rs 20,000-Crore Bidkin Plant
Among them, Toyota is making one of the largest long-term bets on India. The Japanese automaker is setting up a Rs 20,000-crore manufacturing facility at Maharashtra’s Bidkin Industrial Area in Chhatrapati Sambhajinagar.
The plant is expected to commence production in the first half of 2029 with an initial capacity of 100,000 vehicles annually and direct employment for around 2,800 people.
The facility is expected to manufacture vehicles for both domestic and export markets. Among the products under development is a rugged SUV based on the Land Cruiser FJ platform. Toyota is also working on a three-row MPV derived from Maruti Suzuki’s YMC project as the partners deepen collaboration on India-focused products.
New SUV Pipelines
Much of the upcoming product pipeline across manufacturers is centred on the country’s fastest-growing segments. Renault and Nissan are preparing a new cycle of launches led by the Duster hybrid, a three-row derivative, compact SUVs and locally developed electric vehicles.
Volkswagen and Skoda are working on updates for their sedan portfolio while developing a new Volkswagen compact SUV based on the Skoda Kylaq platform. The group is also evaluating additional India-focused EVs.
Honda is expanding beyond its current lineup with the imported ZR-V SUV, a made-in-India born-electric SUV under development and two additional SUVs expected by 2028. The company is also planning multiple launches in FY27, including the Prelude coupe. MG Motor, meanwhile, is testing the SAIC-Wuling Starlight SUV, which is expected to launch later this year, alongside new products under its premium MG Select portfolio.
Partnerships are also emerging as a key element of future product strategies. Jeep parent Stellantis is working on a new SUV planned for 2028 that could be based on Tata Motors’ ARGOS architecture, according to industry sources. The platform supports petrol, diesel, hybrid and electric powertrains and currently underpins the upcoming Sierra.
Adding to the competitive intensity is JSW Motors, which is preparing to enter the passenger vehicle market later this year through a partnership with China’s Chery Automobile. Backed by investments of $2-3 billion, the company is building a manufacturing facility in Chhatrapati Sambhajinagar with an annual capacity of 350,000 vehicles. Its first model, expected around Diwali, is likely to be a plug-in hybrid SUV priced below Rs 40 lakh.
The planned investments and product launches signal that while market share gains have become harder to achieve, global automakers continue to view India as one of their most important long-term growth markets.