Nissan plans fourfold sales growth in India by 2028, betting on exports

Japanese automaker Nissan has set ambitious goals for developing its presence in the passenger vehicle (PV) market in India, aiming to transform the country into a key export hub for its global operations. The company targets a fourfold increase in domestic sales by the fiscal year 2027-2028 (FY28).

Sales and Export Targets

By FY28, Nissan plans to sell 100,000 vehicles in the Indian domestic market and export another 100,000 units from its Chennai plant. This plan represents significant growth compared to FY26, when the company realized 22,505 PVs in India, securing only a 0.48 percent market share, while 82,408 vehicles were sent to foreign markets.

Growth Strategy and New Models

The new Tekton SUV model, starting at 10.49 lakh rupees, is expected to be the driving force behind achieving these goals. The vehicle will be manufactured in India and destined for the African, South African, and Gulf Cooperation Council (GCC) markets, thereby strengthening India's status as a production base in the Nissan network.

Saurabh Vatsa, Managing Director (MD) of Nissan Motor India, stated that the company's goal is 100,000 domestic sales and 100,000 exported units. He added that internal expectations could be even higher if the products meet the plans.

Investment and Network Development

Despite geopolitical uncertainty in the Middle East, the company's management confirmed its commitment to the export strategy. The top executive noted that although the global market is full of surprises, investments are planned for a period of four to five years, and India, Africa, and the GCC remain growing markets where the company is confident in long-term opportunities.

In addition to expanding its product range, Nissan is actively investing in its retail network. It plans to increase the number of dealerships from 135 last year to 200 by mid-August and to 250 by the end of 2026. The expansion will cover Tier I–IV cities, with new points being opened based on market potential and ensuring dealer profitability.

Digitalization and Electrification

The automaker is also enhancing its digital capabilities by implementing an AI-based vehicle configurator to improve the customer buying experience. Regarding electrification, Nissan announced that it will decide on launching an electric vehicle (EV) in the Indian market by 2028, in line with changing Corporate Average Fuel Economy (CAFE) regulations.

Although the company has access to hybrid, e-Power, and battery electric technologies globally, executives emphasized that any product strategy will be determined by consumer demand, infrastructure readiness, and regulatory clarity. Furthermore, PHEVs are not considered an immediate priority due to the high cost of the technology for the Indian market. Nissan will continue to focus on Internal Combustion Engine (ICE) vehicles, which account for over 90 percent of PV sales, while monitoring EV adoption rates. The company also specified that all its gasoline models sold in India comply with E20 fuel standards, and factory CNG kits constitute about 10 percent of sales among the relevant models.

business-standard.comJuly 9, 07:07

Honda plans to increase production and create 3.8 thousand jobs in India by 2028

Honda Motorcycle & Scooter India, a division of Japanese Honda Motor Co, intends to expand its annual production capacity to 8 million units by 2028. Consequently, it is expected that over 3,800 new jobs will be created in India.

Global Production Strategy

According to President and CEO Tsutomu Otani, India is becoming an increasingly significant part of Honda's global strategy for production and exports. The company's production facilities are designed not only to meet domestic demand but also to support growing international markets.

Although electric mobility is an important element of Honda's long-term vision, the company maintains a commitment to a balanced, multi-pronged approach that includes ICE technologies, electrification, and alternative fuels in India.

Exports and Current Operations

As export demand grows, the company is investing in expanding production capabilities to efficiently serve both domestic and international customers. Currently, Honda Motorcycle & Scooter India exports products to 65 countries, including mature markets such as Japan and Europe.

Otani noted steady growth in export figures: from 0.36 million units in fiscal year 2024 to 0.51 million units in 2025 and 0.62 million units in 2026, demonstrating India's increasing role as a strategic global manufacturing hub for Honda.

Production Capacity Expansion

The company currently has a total installed production capacity of over 6 million units across four plants located in Manesar (Haryana), Tapuka (Rajasthan), Narasapura (Karnataka), and Vitlapura (Gujarat).

As part of the expansion, Otani announced the recent plan to establish a new third production line at the Tapuka (Rajasthan) plant with investments of approximately 150 billion rupees. This line, which is set to start operations in 2028, will add 670,000 units to the annual capacity, bringing the total capacity of the Tapuka plant to 2.01 million units.

Furthermore, in 2025, HMSI announced the addition of a fourth production line at the Vitlapura (Gujarat) plant with an investment of 92 billion rupees. This line will begin operating in 2027 and add 650,000 units to the annual capacity, increasing the plant's total volume to 2.61 million units, making it Honda's largest motorcycle assembly plant globally.

Outlook and Policy

As a result of these planned expansions, HMSI's total annual production capacity in India is expected to reach approximately 8 million units by 2028, supporting more than 3,800 new jobs.

Responding to questions about electrification, Otani emphasized that electric mobility remains a key direction in the long-term strategy, and the company continues to strengthen its readiness to expand its EV portfolio in line with market and ecosystem development.

When asked about Delhi's policy regarding EVs, which mandates that only electric two-wheelers will be registered starting April 1, 2028, Otani called it a 'positive step towards promoting sustainable mobility and improving air quality.'

However, he also noted that the pace of transition will ultimately depend on consumers. Existing ICE vehicles will continue to be used, and buyers will choose the mobility solution that best suits their needs based on factors such as availability, convenience, charging infrastructure, and daily usage patterns.

business-standard.comJuly 8, 16:06

Tata Motors plans tenfold growth in passenger vehicle business by 2031 with a 20% market share goal

Tata Motors Passenger Vehicles (TMPVL) has presented an ambitious plan to scale its passenger vehicle business tenfold by the fiscal year 2031. According to the plan, the company aims for annual sales exceeding 1.2 million vehicles, with electric vehicles (EVs) accounting for over 30 percent of total sales, and EBITDA margins reaching double-digit figures.

Company's Long-Term Growth Strategy

As part of its long-term growth strategy, TMPVL also plans to introduce six new models and conduct more than 20 updates to existing products. At the 81st Annual General Meeting (AGM), Chairman N Chandrasekaran noted that the separation of passenger and commercial vehicle businesses marks the beginning of a new phase for the company as a focused player in personal mobility, operating in India and in conjunction with Jaguar Land Rover (JLR).

Progress Over Recent Years

Speaking about the company's evolution over the last six years, Chandrasekaran reported that passenger vehicle sales in the country have increased nearly fivefold since the fiscal year 2020, while revenue has grown almost sixfold. During the same period, the company increased its market share from 4.8 percent to 14.2 percent in the first quarter of fiscal year 2027, becoming the second-largest passenger vehicle manufacturer in the country.

Financial Results and Development

In fiscal year 2026, the company achieved record passenger vehicle sales in the country—around 642,000 units, which is 15.3 percent higher than the previous year and nearly double the industry growth rate. Revenue from the Indian business increased by 20.7 percent, reaching a record 58,465 crore rupees, while the company maintained an EBITDA margin of about 7 percent and ended the year with a net cash reserve of 6,710 crore rupees.

Technology and Future Collaboration

Chandrasekaran emphasized that the company's multi-engine strategy continues to drive growth in the gasoline, compressed natural gas (CNG), and electric vehicle segments. During the year, Tata Motors expanded its portfolio with models such as Sierra, Harrier.ev, the updated Punch lineup, gasoline versions of Harrier and Safari, and the new Altroz model. The company also delivered 300,000 electric vehicles, maintaining its lead in the Indian EV market for the seventh consecutive year.

Looking ahead, Chandrasekaran stated plans to launch six new models and implement over 20 updates by fiscal year 2031, alongside increasing investments in digital technologies, artificial intelligence (AI), safety, and customer experience. He added that closer collaboration between TMPVL and JLR, including operations at the Panapakkam facility in Tamil Nadu, will help strengthen the company's manufacturing and technological capabilities in achieving long-term growth.