-
India–Indonesia Auto Relationship Gains Strength
Aditya Kondejkar The evolving automotive relationship between India and Indonesia is increasingly defined by structured, government-linked procurement and industrial collaboration rather than routine export activity. Recent transactions involving Tata Motors, Mahindra & Mahindra, and Ashok Leyland signal a measurable expansion of India’s commercial vehicle footprint in Southeast Asia’s largest economy.
Indonesia’s infrastructure expansion, rural logistics formalization, and cooperative-based distribution programs have generated concentrated demand for light and medium commercial vehicles. Unlike fragmented retail-driven sales, these programs are characterized by bulk institutional procurement, creating predictable order pipelines and scale efficiencies for suppliers. Indian manufacturers, with established competencies in cost-optimized, durable vehicle platforms suited to emerging market operating conditions, have been able to secure sizeable allocations.
-
Brazil, Colombia Renew 2026 Free Trade Quota
Fabio Ferraresi Brazil and Colombia have agreed to extend for 12 months the bilateral automotive quota allowing duty-free export of up to 50,000 Brazilian vehicles per year. The mechanism, which had expired in September, risked reinstating a 16.1% import tariff on Brazilian ICE and flex-fuel passenger vehicles entering the Colombian market from 2025 onward. From January to September 2024, Colombia remained Brazil’s third-largest automotive export destination, receiving 38,500 units (+55.2% YoY), below but close to the annual quota.
Source: Autodata Read The Article
-
Auto Sector Driven by 2Ws, Stable PV Demand
INDIA REPORT
Aditya Kondejkar India’s auto sector delivered a resilient performance in the first half of FY26 (April–September 2025), supported by healthy two-wheeler volumes, steady passenger-vehicle demand, and a modest recovery in commercial vehicles — even as the industry navigated EV market churn and shifting policy tailwinds.
Two-wheelers continued to underpin volume growth: production and domestic sales surged, with about 10,200,000 (1.02 crore) two-wheelers produced/sold in 1H FY26. This strength was driven by durable rural demand, improved affordability, and strong scooter and motorcycle cycles during the pre-festive and monsoon seasons.
Passenger vehicles showed robustness across the board, with roughly 2.05 million units recorded in the six-month period (Apr–Jun ~1.01m; Jul–Sep ~1.04m). OEMs benefited from a combination of steady urban demand, renewed festive spending and a partial easing of supply constraints. Strong export momentum — India recorded a record H1 export tally — also helped OEM plant utilizations.
-
GST 2.0 Could Be Fiscal Reset for Auto Industry
INDIA REPORT
Aditya Kondejkar The Indian automobile industry has received a significant policy boost with the rollout of GST 2.0, a major change in indirect taxes aimed at restoring affordability and stimulating consumption. The reform, which reduces GST rates on vehicles and components, arrives at a crucial juncture when entry-segment sales, rural demand, and OEM margins have been under pressure.
Scale of reduction and market impact. GST 2.0 lowers the rate on small cars and two-wheelers from 28% to 18%, while standardizing the rate on most auto components at 18% instead of the earlier 18%–28% range. Larger SUVs and luxury models now fall under a simplified 40% composite slab, down from nearly 50% earlier. These changes translate into tangible price cuts—ranging from $750 USD (₹65,000) for hatchbacks to over $3,400.00 USD (₹3 lakh) for premium models—resulting in an estimated 10-percentage-point drop in overall tax burden for the sector. Analysts see this as a long-awaited correction that could lift FY26 passenger-vehicle demand by 8–10%.
-
Dongfeng Plans To Sell 50% Stake in Honda Engine
Jack Hao Dongfeng Motor Group reportedly plans to sell its 50% stake in Dongfeng Honda Engine Co., Ltd. Joint venture with Honda Motor Co., according to an Aug. 18post on the official website of Guangdong United Property and Equity Exchange. The project is in the pre-listing phase, with no reserve price set, and the deadline is Sept. 12.
According to the audited figures in the listing documents, Dongfeng Honda Engine was valued at RMB 5.4 billion (approximately USD 752 million) in 2024. The company posted a net loss of RMB 227.8 million for the same period, carries liabilities of RMB 3.3 billion.
According to the official website of Dongfeng Honda Engine Co., Ltd., the company was established in 1998. Its shareholders are Dongfeng Motor Corporation, Honda Motor Co., Ltd., and Honda Motor (China) Investment Co., Ltd., holding 50%, 40%, and 10% of the shares respectively.
-
BYD Delivers 90,000 vehicles to Thailand in three years
Akihiro Komuro BYD announced that it has delivered a cumulative total of 90,000 vehicles to the Thai passenger car market since entering it three years ago. Last year, BYD began producing EVs at its Thai plant. BYD is preparing to produce plug-in hybrid electric vehicles (PHVs) to further expand its market share.
BYD reported that 6,100 of the factory’s 6,900 employees are Thai nationals. BYD also announced that it will produce plug-in hybrid electric (PHV) sedans at the Thai factory. This will be the first time BYD has produced PHVs in Thailand. The factory has an annual production capacity of 150,000 vehicles. Expanding the range of models produced will increase consumer choice and the factory’s operating rate.
BYD entered the Thai passenger vehicle market in 2022 by exporting the EV SUV “ATTO3” from China. BYD is focusing on establishing local factories to expand into overseas markets. The Thai factory began operations in July 2024 and is positioned as BYD’s first full-scale passenger vehicle factory overseas.
-
Lexus China Plant To Begin Production in 2027
Jack Hao Toyota has announced plans to build a research, development, and production company for Lexus electric vehicles and batteries in Jinshan District, Shanghai, and plans to start production in 2027.
“China has a complete electrification and intelligent technology industry chain,” says Ji Xuehong, Director and Professor of the Automotive Industry Innovation Research Center at North China University of Technology, “and stablishing a factory locally will allow Toyota to deeply integrate into China’s industry chain, quickly access advanced electrification technologies and high-quality parts resources, and thereby enhance the overall competitiveness and price advantage of its products.”
Localization will also enhance Lexus’ export capabilities, he says. Production in China can meet domestic demand, also reduce costs and improve the competitiveness of products in the international market.
-
Rural Recovery Drives Surge in Auto Demand
INDIA REPORT
Aditya Kondejkar The upcoming festive season presents a promising outlook for India’s automobile sector, with expectations of significant growth, particularly in the two-wheeler (2W) segment. A projected increase of over 15% in the sector reflects heightened consumer interest, fueled largely by a recovering rural economy.
Rural areas, which contribute more than half of two-wheeler demand, are showing early signs of post-COVID recovery. The rise in customer inquiries, especially for mass-market brands like TVS Motors, Hero MotoCorp, and Bajaj Auto, suggests a favorable trend for the festive season.
The launch of new two-wheeler models, such as the TVS Jupiter and Hero Xtreme 125R, is likely to further drive sales. However, premium motorcycle manufacturers like Eicher Motors, producing Royal Enfield, may not experience the same robust demand due to a different target demographic, where rural recovery has less impact.
TPI
PSR Truck Production Index
Free quarterly global commercial vehicle production report.
Alternative Power Report
The latest EV and power source news including batteries and fuel cells with analysis by PSR experts.
PowerTALK News
Stay informed each month with insights from Power Systems Research’s analysts working around the world as they identify and comment on important news items in the company’s monthly newsletter.
Subscribe View Archive
OE Link™ Offers
Global Coverage
OE Link™ database provides OEM products, both On-Road and Off-Road, in 12 regions.
Current Reports
Download complimentary reports that show the type of information available from Power Systems Research.
PowerTALK News
Stay informed each month with insights from Power Systems Research analysts working around the world as they identify and comment on important news items in the company’s monthly newsletter.
Subscribe