CMV360 Weekly Wrap-Up | 29 Dec 2025 – 3 Jan 2026: Electric Bus Surge, Tata & Mahindra CV Growth, Tractor Sales Jump, Big EV Subsidy & Farmer Schemes

The week of 29th December 2025 to 3rd January 2026 highlighted India’s strong momentum in clean mobility, commercial vehicles, and farmer support. Major developments included PMI Electro leading the largest-ever PM E-DRIVE e-bus order, Delhi and Chennai adding 200+ electric buses, and Tata, Mahindra, and Ashok Leyland reporting robust CV and three-wheeler sales.

On the farming side, tractor subsidies, power tiller schemes, and skill development programs are empowering rural India, while initiatives like PM Kisan and Lakhpati Didi continue to boost farmer incomes and women entrepreneurship.

Together, these updates show balanced progress—where cleaner transport, industrial growth, and rural prosperity are moving forward together, offering cost-effective solutions and stronger opportunities for India’s economy.

Electric Bus Market Turns a Corner as PMI Electro Dominates PM E-DRIVE Deal

India has completed its largest electric bus tender under the PM E-DRIVE scheme, awarding 10,900 e-buses to new-age EV players. PMI Electro led with 5,210 buses, followed by EKA Mobility and Olectra. Traditional bus makers received no orders. The GCC model ensures cost-efficient operations, with major cities set for large-scale electric bus deployment from next year.

TVS Motor and Manba Finance Partner to Boost Commercial Vehicle Financing in India

TVS Motor Company has partnered with Manba Finance to offer easy financing for its commercial three-wheelers across India. The deal covers both ICE and electric passenger and cargo models, with benefits like flexible down payments, affordable EMIs, and faster loan approvals. The partnership focuses on supporting entrepreneurs, fleet operators, and buyers in rural and semi-urban markets, improving access to last-mile mobility solutions.

VECV Gets ₹192 Crore GST Demand; Eicher Motors to Challenge Order: Demand Linked to FY2017–18 Credit Note Reporting

Eicher Motors said its subsidiary VE Commercial Vehicles has received a ₹192.36 crore GST demand, including penalty and interest, linked to delayed credit note reporting for FY2017–18. The original demand was higher but later reduced by the tax authorities. VECV plans to challenge the order through an appeal within legal timelines. The company clarified that the issue will not impact Eicher Motors’ financial position or operations.

Centre Withdraws Subsidy for Electric Three-Wheelers After Target Achievement Under PM E-Drive

The Centre has withdrawn subsidies for electric three-wheelers under PM E-Drive after achieving the 2.9 lakh adoption target and 32% EV penetration. The move signals market maturity, with states expected to provide further support. Subsidies for electric two-wheelers may continue due to lower penetration, while e-buses and trucks await demand. Overall, PM E-Drive has supported 1.13 million EVs nationwide.

Delhi Aadhaar Mandatory for Free Bus Rides for Women From 2026; Pink Saheli Smart Card to Replace Pink Tickets

The Delhi government will introduce the Pink Saheli smart card from January 2026, making Aadhaar mandatory for women availing free bus rides. The digital card will replace paper pink tickets and be available to Delhi girls and women aged 12 and above. Issued at multiple centres, the card aims to improve transparency, reduce misuse, and make bus travel faster, paperless, and more efficient across the city.

Big Boost to Electric Mobility: Tamil Nadu Extends 100% EV Motor Tax Exemption Till December 2027

The Tamil Nadu government has extended the 100% motor vehicle tax exemption on all battery-operated electric vehicles till December 31, 2027, effective from January 1, 2026. The benefit covers both transport and non-transport EVs, including two-wheelers, cars, and three-wheelers. The move aims to boost EV adoption, reduce purchase costs, and support long-term growth of the state’s electric mobility and manufacturing ecosystem.

Mahindra Reports 32,324 Domestic CV & 3-Wheeler Sales in December 2025, Up 33%

Mahindra & Mahindra reported strong domestic CV and 3-wheeler sales growth of 33% in December 2025, with volumes rising to 32,324 units. The LCV 2T–3.5T segment led growth with a 37% increase, while 3-wheeler sales, including electric models, grew 31%. Demand remained healthy across cargo and last-mile segments, though export volumes declined 9% year-on-year during the month.

VE Commercial Vehicles Records 32.8% YoY Growth in December 2025 with 8,534 Units Sold

Volvo Eicher Commercial Vehicles reported 32.8% year-on-year sales growth in December 2025, with total volumes reaching 8,534 units. Eicher commercial vehicles led performance, rising 35.7% on strong domestic demand, especially in SCV and light-duty trucks. Export sales improved, driven by a 112.5% jump in heavy-duty exports. However, Volvo Trucks sales declined 28.4% during the month.

Tata Motors Records 42,508 CV Sales in December 2025, Up 25% YoY

Tata Motors reported strong commercial vehicle sales of 42,508 units in December 2025, registering 25% year-on-year growth. Domestic CV sales rose 24% to 40,057 units, led by a 40% jump in the ILMCV segment. HCVs and SCVs also showed healthy growth, while passenger carriers remained stable. CV exports surged sharply by 63%, highlighting Tata Motors’ growing strength in both domestic and global markets.

Ashok Leyland CV Sales December 2025: 18,299 Units Sold, 24% YoY Growth

Ashok Leyland reported strong commercial vehicle sales of 18,299 units in December 2025, marking 24% year-on-year growth. Domestic sales rose 25% to 17,689 units, driven by a 27% increase in M&HCV volumes. LCV sales also showed healthy growth, while LCV exports jumped 55% year-on-year. Despite mixed export trends, overall market momentum remained strong during the month.

Tractor & Agriculture

Mahindra Tractors Joins Hands with MP Govt to Skill Rural Youth, Boost Farm Jobs Across the State

Mahindra Tractor Skill Development has signed an MoU with the Madhya Pradesh government to boost rural skill development in farm mechanization. Training in tractor and harvester technology will be offered at five state skill centres with a strong focus on hands-on, job-oriented learning. The initiative aims to improve employability for rural youth while supporting agricultural growth and meeting the rising demand for skilled manpower in the sector.

India Sets First Testing Standard for Electric Farm Tractors, Boosting Clean Mechanisation

India has launched IS 19262:2025, its first dedicated test code for electric agricultural tractors, on National Consumer Day 2025 in New Delhi. Issued by BIS, the standard covers performance, safety, vibration, and component testing to ensure reliability under farm conditions. It aims to build farmer trust, support fair competition, and provide regulatory clarity while aligning electric farming equipment with India’s clean mobility and climate goals.

PM Kisan Yojana 22nd Installment Update: Release Date, Reasons for Delay & How to Check Beneficiary List

The PM Kisan Yojana’s 22nd installment is expected in February or March 2026. Under the scheme, eligible farmers receive ₹6,000 annually in three installments. To avoid delays, e-KYC completion, Aadhaar-bank linking, and correct land and bank details are mandatory. Farmers can check their beneficiary list and installment status online through the official PM Kisan portal to ensure uninterrupted financial support.

Lakhpati Didi Yojana: Government’s Big Push to Make 1 Crore Women Self-Reliant in One Year

The Uttar Pradesh government aims to make one crore women financially independent in one year under the Lakhpati Didi Yojana. About three crore women will be linked with Self Help Groups and supported through training, loans, and market access. The scheme focuses on agriculture and small businesses, encouraging women to become entrepreneurs, boost household income, and strengthen the rural economy through sustainable livelihood opportunities.

Farmer Registry: 80 Lakh Farmers Enrolled, One ID to Get All Government Scheme Benefits

Rajasthan has registered over 80 lakh farmers under its Farmer Registry, providing each with a Unique Farmer ID to access government schemes easily. The system links benefits like PM Kisan, MSP procurement, crop insurance, and loans, removing repeated paperwork. Integrated with AgriStack, it ensures direct and transparent transfers while eliminating fake beneficiaries, helping farmers receive timely support and making agricultural services more digital and efficient.

Tractor Subsidy 2026: Government Offers Up to ₹3 Lakh Help for Farmers

The 2026 Tractor Subsidy Scheme offers up to ₹3 lakh for Scheduled Caste farmers in Haryana and Uttar Pradesh to buy tractors of 45 HP or more. Applications are available online only, with a deadline of January 15, 2025. Selected farmers receive direct bank transfers, must retain the tractor for five years, and benefit from improved productivity and rural employment. Haryana uses a lottery system, while UP uses district-level verification.

Escorts Kubota Tractor Sales Jump 38.5% in December 2025, Exports Lead Growth

Escorts Kubota Limited reported strong tractor sales in December 2025, selling 7,577 units, a 38.5% YoY increase. Domestic sales rose 36.1% to 6,828 units, while exports jumped 64.3% to 749 units. Q3 FY26 sales grew 13.5%, and nine-month FY26 sales crossed 1 lakh units. Growth was driven by supportive government policies, healthy farm output, favourable rural sentiment, and rising overseas demand, strengthening Escorts Kubota’s market position and global presence.

VST Tillers & Tractors Records Strong Sales Growth in December 2025

VST Tillers & Tractors posted strong domestic sales in December 2025, with tractors up 60% to 584 units and power tillers rising 26.11% to 3,792 units. Total December sales grew 29.77%. Year-to-date, power tiller sales jumped 55.6%, and overall YTD sales reached 41,611 units, up 48.53%. Growth was driven by increased farm activity, rising mechanisation adoption, and positive rural sentiment, highlighting VST’s strong market position and steady domestic demand.

Mahindra Tractors Sales Rise 37% in December 2025, Strong Demand Continues

Mahindra & Mahindra’s Farm Equipment Business reported strong tractor sales in December 2025, with domestic sales up 37% to 30,210 units and exports rising 78% to 1,649 units, driving total sales 39% higher year-on-year. Year-to-date, total sales grew 21% to 4,06,592 units. Strong farm activity, favourable harvests, healthy reservoirs, and rising Rabi sowing supported growth, while robust domestic and export demand positions Mahindra to sustain momentum and market leadership.

Big Relief Likely for Farmers in 2026: 7 Major Announcements Under Discussion

In 2026, Indian farmers may benefit from major reforms, including an increase in Kisan Samman Nidhi to ₹8,000–₹10,000, stronger MSP with 100% procurement for pulses, faster crop insurance under simplified Fasal Bima Yojana, and a Digital Farmer Card for quick scheme access. Additional measures include a new seed law, a crackdown on fake fertilizers, and expanded free or low-cost electricity. These initiatives aim to boost income, reduce risks, and strengthen agriculture.

Good News for Farmers: Madhya Pradesh Offers Up to 55% Subsidy on Power Tillers

The Madhya Pradesh government offers up to 55% subsidy on power tillers for small and marginal farmers, reducing diesel and farming costs. Prices start from ₹70,000, and applications are online. Power tillers aid ploughing, sowing, weeding, and harvesting, improving efficiency and income. Farmers with under 5 acres get 55% subsidy, while larger holdings receive up to 45%. The scheme promotes affordable mechanization, higher productivity, and self-reliance for rural farmers.

Also Read: CMV360 Weekly Wrap-Up | 22–27 Dec 2025: New EV Cargo Launches, Electric Bus Surge, Truck & Tractor Growth Signals, Big Farmer Income Boosts and Women-Centric Schemes Take Centre Stage

CMV360 Says

In short, the week of 29th December 2025 – 3rd January 2026 showed India moving ahead on multiple fronts. Strong commercial vehicle and three-wheeler sales, rapid electric bus deployments, and supportive policies for farmers and women entrepreneurs highlight balanced growth. With cleaner transport, smarter mobility solutions, and rural empowerment progressing together, India’s economy and mobility sectors are set for a promising start to 2026.