While Renault will take the covers off the next-generation Duster SUV on January 26, Maruti Suzuki will start selling its first electric car, the e-Vitara SUV, next month.
Electric cars in particular are set to dominate the launch portfolio in the coming months, with Tata Motors introducing two new models next quarter, including the Sierra EV. Also planned are three new models from Vietnamese electric carmaker VinFast, two from Chinese EV manufacturer Leapmotor – which will enter the Indian market later this year in partnership with France’s Citroen, and an electric SUV from Toyota Kirloskar Motor (TKM).
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In total, as many as 31 new vehicles will hit the road in December, up from 19 in CY25, and 10 to 11 vehicles every year since CY21.
VinFast India CEO Tapan Ghosh confirmed the company’s plan to introduce three new models this year. “We will start the year with the launch of a seven-seater MPV,” he said. “This is a premium, yet practical electric MPV, developed with both family and commercial use in mind. It reflects how we see electric vehicle adoption evolving in India, not just as a personal choice, but also as a shared and fleet-based solution. There will be more models to come, each catering to different segments and needs.”
VinFast is also working on doubling its distribution network this year to respond to the latent demand for electricity in India.
Ravi Bhatia, president of auto consultancy Jato Dynamics, said despite the heavy launch activity, consumer demand is likely to remain stable in 2026 and grow strongly sooner. “Most launches are facelifts/refreshes, especially among major OEMs, which should help defend market share and improve mix, rather than substantially increase industry volumes,” he said.
“SUVs – especially mid-size and premium SUVs – will continue to drive demand, but the increasing crowds in these segments will bring intense competition and stock splits, limiting excessive volume growth. Small cars/hatchbacks are likely to remain weak.”
SUVs at the top
In the EV space, Bhatia expects the new launches to help shape product portfolios more than short-term demand. “In CY26, the share of electric vehicles in (overall) volumes will remain low even as they form an increasing share of new launches,” he said. “Adoption will remain urban and premium-skewed, with limited disruption to demand for ICE (internal combustion engines) engines in the near term.”
Passenger car sales rose 27% year-on-year in December, pushing total volumes up 5% to a record 4.49 million units in CY25. December was the third consecutive month of double-digit sales growth following the Goods and Services Tax (GST) cut effective September 22. SUVs contributed a whopping 56% of industry sales last year.
Shailesh Chandra, president of the Society of Indian Automobile Manufacturers (Siam), said earlier this month that while 2025 had started with a subdued first half and the industry continued to deal with supply-side challenges, multiple structural policy reforms, including income tax relief, successive repo rate cuts and the rollout of GST 2.0, had laid the foundation for a positive demand environment.
“The reduction in GST (goods and services tax) rates made vehicles more affordable and created new momentum in the industry,” he said, adding that the industry expects the positive momentum to continue well into the new year.
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