Auto News Weekly Wrap-Up: This week was very exciting for the Indian automobile sector. The biggest highlight was the grand entry of 2026 Renault Duster, which is ready to compete with Creta-Seltos with new design, ADAS, hybrid option and premium features.
Imported luxury cars may soon become cheaper through India-EU FTA. With huge reduction in duty, these can be purchased at less money. The Skoda Kylaq touched the 50,000 units production milestone, while the Volkswagen Tayron R-Line and BMW X3 30 xDrive M Sport Pro also made headlines. How was the last week of January 2025 full of new launches, trade deals and milestones? Come, let us know.
Entry of 2026 Renault Duster
The biggest news is the unveiling of 2026 Renault Duster. Renault introduced the New Gen Duster in India on 26 January 2026 in Chennai. This iconic SUV is back after four years and is now coming in its third generation with a completely new design, features and powertrain. The India-specific model has two turbo-petrol engine options. This includes 1.0-litre and 1.3-litre (160 bhp, 280 Nm). Additionally, there will also be a strong hybrid variant (1.8-litre petrol + electric motor, total 160 hp), which will be launched by Diwali 2026.
Features include many premium elements like 10-inch touchscreen (Google OS), ADAS, panoramic sunroof, ventilated seats, 212 mm ground clearance and 518-litre boot space. Pre-bookings have started at ₹21,000, prices will be announced in March and deliveries are scheduled from April 2026. It will compete with competitors like Hyundai Creta, Kia Seltos, Maruti Grand Vitara.
India-EU Free Trade Agreement (FTA)
The second important news is the agreement of India-EU Free Trade Agreement (FTA). With this, imported cars can become cheaper. Recently India and the European Union have approved the “Mother of All Deals”. Under this FTA, the import duty on European cars will be reduced from 110% to 40% first and later to 10%.
This will mainly apply to cars priced above 15,000 euros and there will be a quota of 250,000 vehicles annually. With this, luxury cars like BMW, Mercedes-Benz, Audi, Volkswagen, Porsche can become cheaper by 20-30%. However, this benefit will start being available from 2027-2028, because the legal process and implementation will take time. This will be a big boost for European brands in the Indian market and may affect locally produced models as well.
Bumper demand for Skoda Kylaq
Skoda Kylak has touched a major production milestone. Skoda has completed production of 50,000 units of Kylaq at its Chakan plant, which has happened in just over a year. This compact SUV has become quite popular after production started in December 2024. Due to increase in demand, the capacity of the plant has been increased by 30%. Kylaq prices start at ₹7.59 lakh and is the most affordable product from Skoda.
VW Skoda Kylaq unveiled
Volkswagen also introduced the India-spec Tayron R-Line. This 7-seater premium SUV is based on the Tiguan platform, but comes with a different design. It has a 2.0-litre TSI turbo-petrol engine (201 bhp, 320 Nm), 4MOTION AWD, panoramic sunroof, 30-color ambient lighting, large boot space and ADAS features. This will be Volkswagen's flagship SUV and will be positioned above the Tiguan R-Line.
BMW X3 30 xDrive M Sport Pro
The last big news is about the BMW X3 30 xDrive M Sport Pro. BMW has confirmed the launch of this new variant and pre-bookings have started from January 30, 2026. This will be the most powerful X3 till date, which has a 2.0-litre turbo-petrol engine (258 hp). Big wheels, new exterior elements and premium features will be available with the M Sport Pro package. It will be produced locally at the Chennai plant and is expected to be launched on 16 February.