Automakers Focus on Facelifts and Feature Upgrades as Fewer All-New Cars Are Planned for 2026

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Mon Dec 08 15:49:01 IST 2025
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After the reduction in GST rates in the second half of 2025, demand for passenger vehicles saw a noticeable rise. However, despite this positive momentum, 2026 is expected to witness fewer all-new car launches. According to auto industry experts, most manufacturers are now prioritizing facelifts, minor updates, and feature enhancements instead of developing entirely new models.

This strategy helps companies control costs while strengthening their existing product lineup

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in an increasingly competitive market. Rather than investing heavily in new platforms, automakers are refreshing their current models with better design, updated technology, improved safety features, and enhanced connectivity.

SUV Segment to See the Most Activity

The compact and mid-size SUV segment (₹10–20 lakh) is expected to see the highest number of upgrades. This price bracket is popular among both first-time car buyers and upgrade customers

, making it the most commercially attractive segment.

Another key reason for the slow pace of brand-new launches is the upcoming CAFE 3 emission regulations, which will come into force in April 2027. These norms will significantly impact:

  • Engine development

  • Vehicle platforms

  • Fuel efficiency standards

Until then, carmakers are choosing to delay major mechanical changes and instead focus on:

  • Exterior and interior design updates

  • New infotainment and connectivity features

  • Advanced safety technologies

Brand-Wise Plans for 2026
Tata Motors

Tata will kick off the year with a facelifted Punch, followed by the launch of the Sierra EV before the end of the first quarter. Apart from this, several Tata models will receive minor feature upgrades throughout the year.

Maruti Suzuki & Toyota

Maruti is set to introduce its first electric vehicle, the eVitara, in January 2026. Toyota’s version of this EV, the Urban Cruiser EV

, will follow shortly. Both electric SUVs are expected to offer a driving range of around 543 km.

Updated versions of the following models are planned for 2026:

  • Maruti: Brezza, Grand Vitara, Baleno, Fronx

  • Toyota: Glanza, Taisor, Hyryder

These updates will mainly include feature additions and cosmetic changes.

Mahindra

Mahindra will also concentrate on refreshes rather than brand-new platforms:

  • The updated XUV700, likely called the XUV7XO, is expected to launch in January.

  • A facelifted Scorpio N with new features will follow.

Vehicles based on the new Nu-IQ platform

are not expected before late 2026 or early 2027, so the brand will continue focusing on its current lineup for now.

Hyundai

Hyundai will begin with facelifts for the Verna and Exter. The company will also introduce an all-new small SUV positioned below the Venue. Along with this, most Hyundai models will receive minor updates during 2026.

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