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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Eurogrip Tyres, a prominent two- and three-wheeler tyre brand under TVS Srichakra Ltd., recently orchestrated a strategic trade engagement initiative in Mumbai. The event served as a platform to underscore the brand’s distinct European engineering heritage and to showcase its newly introduced, Europe-inspired product lineup, reinforcing its commitment to advanced mobility solutions.

Silvio Montanari, the Head of Design and R&D based in Milan, steered the session, offering a comprehensive overview of the company's foundational product development strategies. He elaborated on emerging tyre technologies and the robust engineering frameworks that underpin Eurogrip’s international portfolio while also updating trade partners on the pivotal innovations poised to define future tyre generations and address shifting rider demographics.

Concurrently, Eurogrip is executing an aggressive expansion of its distribution and retail footprint nationwide. This growth strategy ensures that its diverse range, encompassing radial, adventure, touring and commuter tyres, is now readily accessible to consumers across every region of India, thereby solidifying its market presence.

T K Ravi, Chief Operating Officer (COO), Eurogrip Tyres, said, "Today, Eurogrip is recognised globally as a specialist in 2‑wheeler tyres, and our premium range has found strong acceptance among biking communities in India and abroad. It is a privilege to bring our Milan team to India to demonstrate the engineering and technology behind our products. This engagement gives our trade partners the technical insights and market updates they need to better serve customers and riders, and they pave the way for a wider roll‑out of our Europe‑benchmarked products in India.”

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Cabot Corporation has officially released its 2026 Sustainability Report, which details the company’s environmental, social and governance performance throughout the 2025 calendar year. The document serves as a comprehensive account of the organisation’s measurable outcomes, culminating in the final assessment of its previous five-year sustainability strategy.

By the conclusion of 2025, the speciality chemicals firm had successfully achieved 14 of its 15 original sustainability targets established in 2020. Eleven of these objectives were completed ahead of the projected timeline, effectively fulfilling the company’s ambition to embed sustainable practices more deeply into its operational framework and corporate systems.

Looking forward, Cabot has transitioned to its newly established 2030 Sustainability Goals, which concentrate on six priority areas deemed most significant to its business model. Early progress includes a collaborative effort with the International Carbon Black Association to create a standardised lifecycle assessment methodology for furnace carbon black. The company intends to develop a certified internal tool for tracking product carbon footprints across its entire portfolio. Additionally, an initiative at the Franklin, Louisiana, facility has converted synthetic gypsum into a cement ingredient, slashing site landfill waste by 87 percent and contributing to a 70 percent global reduction in non-hazardous waste disposal.

The 2026 report has been prepared in alignment with the Global Reporting Initiative Standards and supports Cabot’s ongoing participation in the United Nations Global Compact. These disclosures mark a significant step in the company's continuing journey toward greater transparency and industrial responsibility.

Sean Keohane, President and CEO, said, “Sustainability is embedded in how we operate and underpins our purpose of creating materials that improve daily life and enable a more sustainable future. I am immensely proud of the unwavering commitment of our teams across the globe as we close out our 2025 Sustainability Goals while making headway on our next key priorities, delivering meaningful impact today and for future generations. As we advance in our efforts, we remain focused on strengthening the integration between our sustainability agenda and our Creating for Tomorrow strategy, ensuring sustainability remains a catalyst for value creation and differentiation.”

Jennifer Chittick, Senior Vice President, Safety, Health and Environment (SH&E) and Government Affairs, and Chief Sustainability Officer, said, “As we conclude our 2025 Sustainability Goals, we are entering the next chapter of our sustainability journey with momentum and clear direction. Building on our strong foundation of safety, innovation and operational excellence, we are making measurable progress towards our targeted 2030 Sustainability Goals through initiatives that reduce our environmental footprint and strengthen our overall impact across our value chain. Through collaboration, process optimisation and strategic investments in technology, I am confident that we will continue to advance our commitments and deliver long-term results for our stakeholders worldwide.”

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Tegeta Green Planet, in collaboration with Shine Energy, spearheaded an environmental education initiative at Lampari School-Lyceum on 8 May 2026. The programme targeted seventh through ninth-grade students, focusing on the interconnected themes of sustainable development, transportation and energy consumption under the theme ‘A Sustainable Future: Environment, Transportation and Energy’.

The session moved beyond traditional lectures, employing interactive presentations and hands-on activities to engage the young audience. Core topics covered included resource efficiency, waste management strategies and the significance of renewable energy sources, alongside an exploration of individual environmental responsibility. A significant portion of the discussion was dedicated to the Extended Producer Responsibility system, clarifying its mechanisms and vital function in safeguarding the environment.

The event’s interactive nature was underscored by a series of educational games and team challenges that saw enthusiastic participation from the students. To mark their involvement and completion of the programme, each participant received certificates and symbolic gifts, recognising their engagement with the material.

Established in 2022, Tegeta Green Planet stands as a pioneering authorised organisation in Georgia, operating under the Ministry of Environmental Protection and Agriculture’s EPR framework. The entity manages the complete lifecycle of used tyres, oils and batteries, adhering to circular economy principles. This school visit forms part of an ongoing series of educational meetings designed to cultivate an environmentally conscious generation and instil a culture of stewardship, which both organisations consider essential for long-term ecological sustainability.

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Continental’s presence at the 2026 Tour de France will be notably pronounced, with the German manufacturer supplying road bike tyres to six competing teams. From 4th to 26th July, more than a quarter of the peloton will rely on tyres produced at Continental’s Korbach plant in Hesse. Over the three-week event, the company will provide over 1,000 tyres, all manufactured and tested at the German facility.

The six teams utilising Continental rubber are Groupama-FDJ United, UAE Team Emirates – XRG, Movistar Team, Bahrain-Victorious, Decathlon CMA CGM and Uno-X Mobility. Teams have access to four tyre models for different stage conditions. The Grand Prix 5000 S TR serves as the primary option, offering balanced rolling resistance, puncture defence and weight.

For wet weather, the all-season Grand Prix 5000 AS TR provides superior grip. Time trial specialists favour the lightweight Grand Prix 5000 TT TR, while the Aero 111 tyre handles windy stages with its aerodynamic tread pattern. All models are tubeless-ready, allowing sealant to seal small punctures automatically.

Continental’s involvement extends beyond bicycles, as over 70 support vehicles and 30 motorbikes will use Continental tyres. As an official main partner, Continental will present stage winners with their trophies. The tyres are commercially available, allowing recreational cyclists to purchase the same products used by professionals.

The company develops tyres using both laboratory data and racing feedback. Test rigs measure rolling resistance and durability, while professional riders provide handling data under extreme conditions. Hannah Ferle, Continental’s product expert, has noted that racing exposes tyres to conditions impossible to replicate in the lab, and these insights directly inform product development.

Balancing low weight, high grip, low rolling resistance and puncture protection remains a central challenge. Continental addresses this through rubber compounding and reinforcing layers beneath the tread. Since the first Tour in 1903, average speeds have risen from 25 to over 40 kilometres per hour, reflecting ongoing technological evolution.

Ferle said, “The trust placed in us by the six teams is both an honour and an incentive. The Tour is decided by the smallest details: on every stage, in every kind of weather and on every surface. That is why we put so much time and effort into developing our tyres in close collaboration with the professional racing teams. And ultimately, recreational riders benefit as well.”

Pelayo Sánchez, a rider on the Movistar team, said, “Sometimes a race is decided by a fraction of a second. To focus on our legs, we need to be able to rely on tyres that deliver top performance at all times.”

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