Auto sector demand in India showed resilience in June, particularly in personal mobility segments, as per a report by Asit C Mehta Investment Intermediates. The report highlighted that the easing of supply-side bottlenecks, healthy retail demand, and sustained export momentum contributed to volume growth during the month.
Two-wheeler retail growth rate saw acceleration across all players in June, surpassing the pace observed in May 2026. While wholesale growth varied among OEMs, the overall industry witnessed robust demand despite concerns such as fuel prices, inflation, and monsoon uncertainties.
Commercial vehicle retail traction did not exhibit significant growth, but wholesale growth was notably strong across OEMs in June. Factors like improving infrastructure activity, replacement demand, and export recovery were cited as key positives.
The report forecasted that tractor demand would remain steady in the first half of FY27, with monsoon progression and weather conditions posing as key variables for the latter half. Three-wheelers continued to outperform, with listed OEMs leading the industry trends once again.
Domestic two-wheeler sales surged by 22% year-on-year to 33.6 lakh units in April–June 2026, while domestic passenger vehicle sales increased by about 25% to 12.7 lakh units. The industry is expected to witness mid-single-digit growth in domestic PV sales volumes in FY27, supported by factors like enhanced consumer affordability, increasing EV adoption, and new model launches.
