India The ongoing rising demand cycle in the automobile sector of India is expected to continue for the next 2-3 quarters (December 2026). This high growth rate is likely to continue till the year 2026, after which it will gradually come back to normal level in the year 2027. This estimate has been made in a report of Antique Stock Broking. The report states that the auto sector has made a great start to the current financial year 2026-27, which witnessed a massive increase in sales across all segments such as passenger vehicles, commercial vehicles, two-wheelers, tractors and electric vehicles. This growth is supported by increased affordability following the GST rate cut, positive sentiment in rural areas and growing trend towards premium products.
Geopolitical tensions a big risk
However, the report also warns that rising geopolitical tensions remain a major risk. Especially the first half of the financial year 2026-27 looks quite challenging regarding exports and profits. Rising freight costs, rising commodity prices and potential supply chain disruptions are expected to remain key concerns.
Bumper increase in sales of Tata Motors and Maruti Suzuki
In the passenger vehicle segment, domestic wholesale volumes in April 2026 increased by nearly 20 percent over the previous year. Tata Motors and Maruti Suzuki played the biggest role in this growth, with sales increasing by 31 percent and 32 percent respectively. Mahindra & Mahindra and Hyundai recorded relatively moderate growth, at 8 percent and 17 percent, respectively. According to the report, Maruti’s performance was better due to strong demand in utility vehicles, compact cars and mini segments. Toyota Kirloskar also performed strongly with 21 per cent growth, while JSW MG Motor and Kia posted moderate growth of 4 per cent and 3 per cent respectively.
Sales of commercial vehicles also increased
Coming to commercial vehicles (except Ashok Leyland), the segment grew by around 16 per cent over last year, supported by infrastructure-led demand and stable freight movement. Tata Motors was the best performer with a growth of 28 percent. Tata’s sales growth was mainly driven by strong demand in small commercial vehicles (cargo and pickup segments), which grew by nearly 40 percent. Eicher and Volvo’s joint venture VE Commercial Vehicles and Mahindra’s light commercial vehicle (LCV) business posted steady growth of 9 per cent and 7 per cent respectively.
Two wheeler sales increased by 30 percent
The two-wheeler category (except Bajaj Auto) grew nearly 30 per cent year-on-year, led by strong growth of Hero MotoCorp at 85 per cent and Royal Enfield at 37 per cent. TVS Motor Company gained 8 per cent, boosted by 36 per cent rise in EV sales. However, motorcycle sales declined by 9 percent due to supply-chain disruptions. Exports increased by 19 percent, although the performance of different companies varied.
There is also huge demand for tractors, three-wheelers and EVs.
Sales of tractors also remained strong. Domestic sales of tractors in the country increased by about 23 percent. This was strengthened by favorable environment for farming, good water levels in reservoirs and government support. Mahindra, Escorts and VST Tillers gained 21 per cent, 28 per cent and 17 per cent respectively. Among three-wheelers, Mahindra and TVS registered strong growth of 81 per cent and 61 per cent respectively. The pace of adoption of electric vehicles is continuously increasing. The electric passenger vehicles segment grew by 74 per cent year-on-year, with Tata Motors, Mahindra and Maruti Suzuki accounting for 37 per cent, 23 per cent and 5 per cent market share respectively.
