In a strategic shift reshaping the Indian automotive landscape, homegrown giants Tata Motors and Mahindra & Mahindra are dramatically accelerating their product development cycles. Their goal is clear: to match the blistering pace set by Chinese automakers and secure a larger slice of the fiercely competitive domestic market.
The Race for "China Speed" in India
Senior executives from leading auto component firms have confirmed that Indian manufacturers have now achieved parity with European, Japanese, and Korean counterparts. The new benchmark, however, is the agility of Chinese original equipment manufacturers (OEMs). A November 2024 analysis by the Boston Consulting Group highlighted that Chinese carmakers can roll out new models in as little as 24 months.
Nalinikanth Gollagunta, CEO of Mahindra’s automotive division, underscored this imperative. He revealed that while development cycles previously stretched to five years, Mahindra's new Inglo platform has slashed this to roughly 33 months. "The notion is, we have to keep collapsing that, there is no question," Gollagunta stated during an interview in November. He emphasized that especially in segments like sub-4-meter cars, agility is paramount.
Digital Tools and Supplier Evolution Fuel the Shift
This acceleration is powered by a triad of factors: advanced digital tools, expanded component manufacturing capacities, and flexible vehicle platforms. Crucially, automakers are forging deeper, more collaborative relationships with their supply chain.
Chandrasekhar Krishnamurthy, global head of product management at BorgWarner Inc., noted that Indian OEMs are adopting the "China playbook" but with a distinct local flavor, often requesting specific customizations. Anmol Jain, managing director of Lumax Auto Technologies Ltd., added that Indian companies are now "way more agile and responsive" than many European or Japanese makers, but still push suppliers to benchmark against Chinese firms for even greater speed.
This push has catalyzed the rise of the Tier 0.5 supplier—partners who integrate directly into the design and development phase, moving beyond merely building to print. Companies like Samvardhana Motherson, Tata AutoComp, Lumax, and Belrise Industries are positioning themselves for this critical role.
Market Impact and Ambitious Roadmaps
The results of this newfound agility are already visible in the market. In a significant milestone, Mahindra & Mahindra Ltd. climbed to the number two position in annual retail sales in 2025, displacing the long-standing Korean automaker Hyundai Motor India Ltd. This marks the first time in at least a decade that Mahindra has held this spot.
While Tata Motors and Mahindra currently derive minimal sales from exports—focusing intensely on the domestic arena—Maruti Suzuki and Hyundai draw about a fifth of their sales from international markets. Rahul Bharti, a senior executive at Maruti Suzuki, highlighted that exports serve as the ultimate test of product excellence, requiring vehicles to meet diverse regulatory and consumer demands across over 100 countries.
The race for speed aligns with an explosive product pipeline. India's top four carmakers—Maruti Suzuki, Mahindra, Hyundai, and Tata Motors—are collectively gearing up to launch more than two dozen new models, facelifts, and upgrades over the next five years. As Natarajan Sankar, Managing Director at BCG, concluded, Indian automakers have scrutinized traditional cycles and made significant progress on their journey to become dramatically faster, a transformation essential for thriving in the modern auto industry.
