175 STATUTORY REPORTS | Management Discussion and Analysis Product Technology Strategy A strong pipeline of new ICE SUVs, E-SUVs and global lifestyle pickups positions the Company for continued growth. The new NU_IQ platform provides flexibility for next-generation products with its modular, multi-energy architecture. E-SUVs remain a long-term technological focus, while multi-year capital commitments continue to drive product development and international expansion aspirations. Electrification and Sustainability Your Company continues to advance electrification through new product introductions, expansion of EV capacity, and a targeted plan to increase E-SUV contribution to the portfolio. The business is also expanding highway and corridor charging through its open-source Charge_iN platform, with a commitment to deploy 1,000 fast-charging points along major corridors by 2027. Initiatives across clean energy, circularity and alternate fuel development remain aligned with the Company’s long-term Planet Positive commitments. Banking and Credit Environment A stable credit environment remains key to vehicle financing in India, as banks and NBFCs continue to lend in a measured and disciplined manner. While interest rates remain a key monitorable, access to financing is expected to remain adequate for financially strong OEMs and well-rated customers. Outlook Your Company’s Auto and Farm businesses aim to consolidate domestic leadership, sustain profitable growth, and expand globally. The Company remains focused on achieving cost leadership through targeted cost optimisation, productivity gains, value engineering, and efficient supply chain management. Automotive Business India’s automobile sector plays a critical role in the overall economy, contributing 7–7.5% to GDP and nearly half of manufacturing GDP. As a structurally important sector, it acts as a key transmission channel for macroeconomic trends into real economic activity. From a demand perspective, the outlook for the sector is strongly aligned with a consumption-led growth cycle. Improving incomes, tax rationalisation and a rising aspirational class are expected to drive demand for passenger vehicles, particularly SUVs. This demand trend reinforces the ongoing structural shift toward premiumisation, with consumers increasingly opting for feature-rich and higher-value vehicles. Strengthening distribution networks, financing access and after-sales service capabilities will be critical for OEMs seeking to capture this growth. Government-led infrastructure investment is expected to provide a direct boost to the commercial vehicle segment, particularly LCVs. While the segment remains sensitive to oil price volatility, increased spending on roads, logistics, and MSME support will drive demand for last-mile transportation and fleet expansion, supporting both volume growth and asset utilisation. On the financing side, stable interest rates and strong credit growth are expected to support auto demand through financing channels. With a large proportion of vehicle purchases being credit-driven, the availability of affordable financing options will remain a key enabler of growth. Tractor and Farm Equipment Business The mid to long-term outlook for the Indian tractor industry remains positive, supported by improving agricultural resilience, stronger farm sentiment, and higher price realisation for key crops. The Government’s focus on agriculture, rural development, and infrastructure is expected to further support sustained demand. Rising labour shortages and increasing wage costs also continue to accelerate mechanisation adoption. Structural enablers such as higher cropping intensity, crop diversification, improved access to institutional credit, FPO-led farm consolidation, and Government subsidies for mechanisation further strengthen growth prospects. Key monitorable factors include the onset and distribution of monsoon rainfall, global commodity and input cost trends, and logistics. For FY27, the tractor industry is expected to deliver mid-single-digit growth, with strong rural fundamentals and continued policy focus, after a strong base in the previous year.
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