SUVs, rural growth, premiumisation to keep PV sales in fast lane in 2026

From the Maruti WagonR Electric to the Tesla Model 3, 2026 will be a landmark year for India's auto industry, led by SUVs, hybrids, and EVs amid GST reforms and rising rural demand

Passenger vehicle sales will remain in the fast lane in 2026, driven by high demand for sports utility vehicles (SUVs), rural growth and premiumisation as companies will come out with a flurry of new models and upgraded versions.  

The 2026 calendar is packed with over 25 new models and facelifts across segments, beginning as early as January, according to industry watchers. The launches span the gamut of pricing and powertrain types. The year will see affordable electric vehicles (EVs) like the Maruti WagonR Electric (expected to cost around ₹8.5 lakh) and the Tata Punch 2025 (expected