Facelifts to beat new cars in 2026

PASSENGER VEHICLE MANUFACTURERS may have seen a revival in demand in the second half of 2025 following the GST rate cuts, but this is not expected to translate into a flurry of brand-new launches in 2026.

- AKBAR MERCHANT

Instead, most companies are preparing a year centred on facelifts, mid-cycle updates and feature enhancements aimed at keeping existing models relevant.

The emphasis is on incremental improvements rather than introducing completely new products, reflecting both market realities and regulatory caution.

The strongest activity will continue to be concentrated in the compact and midsize SUV categories, especially in the ₹10-20 lakh price band, where demand from both first-time buyers and upgraders remains steady. Electric vehicles will have a higher profile, though adoption will still vary depending on segment and affordability.

Much of the industry's measured planning stems from the expected CAFE 3 norms due in April 2027, which are likely to influence decisions around new platforms and powertrains. Until there is more clarity, manufacturers are favouring design updates, added connectivity, safety upgrades and better equipment over large engineering changes.