Mahindra, Tata step up fight for India’s No.2 carmaker tag

Companies roll out facelifts, upgrades and EV launches to outpace each other in 2026

- Ayaan Kartik [e-mail]

Automakers are bracing for the third phase of CAFE norms.

(MINT)

The race for the second-largest carmaker is heating up, with Tata Motors and Mahindra & Mahindra rolling out a spate of facelifts, upgrades and electric launches to outpace each other in 2026.

Tata Motors Passenger Vehicles is set to kick off this push on Tuesday with the Tata Punch facelift, one of nearly half a dozen new and refreshed models planned by the two homegrown rivals as they battle for the No.2 spot in India’s passenger vehicle market. Market leader Maruti Suzuki India Ltd continues to dominate the segment by a wide margin.

Tata's launch follows closely after Mahindra unveiled upgraded versions of its flagship SUVs—the XUV 7XO and XUV 3XO—at an event in Jaisalmer, Rajasthan earlier this month.

The product plans come as automakers brace for the third phase of Corporate Average Fuel Efficiency (Cafe) norms, proposed to be implemented from April 2027. These norms tighten fleet-level emission targets and are expected to push higher penetration of clean-fuel vehicles.