New Delhi: The Indian automobile industry is heading into the second half of FY26 with cautious optimism, as festive stocking, reduction in GST rates, and income tax relief are expected to boost consumer demand, a report said on Friday. Meanwhile, September sales data reflected a mixed trend — with strong growth in two-wheelers, three-wheelers, commercial vehicles, and tractors, even as passenger vehicle volumes slipped on a Year-on-Year (YoY) basis, Axis Securities highlighted.
Two Wheeler/Three Wheeler (2W/3W) Segment
Domestic two-wheeler sales rose 6 per cent YoY and 18 per cent month-on-month (MoM), supported by strong performances from Royal Enfield (43 per cent YoY), Suzuki Motorcycle (37 per cent YoY), and TVS Motor (12 per cent YoY). Exports remained firm, rising 17 per cent YoY and 2 per cent MoM, led by Bajaj Auto, Hero MotoCorp, RE, and TVS.
Three-wheeler sales recorded 12 per cent YoY and 6 per cent MoM growth, largely driven by M&M (30 per cent YoY) and TVS (60 per cent YoY), the report noted.
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Passenger Vehicles (PV)
The PV segment saw a 5 per cent YoY decline in wholesales, though sales rebounded 16 per cent MoM, aided by deferred inventory clearance and GST reductions.
JSW MG Motor and Tata Motors outperformed with 47 per cent and 45 per cent YoY growth, respectively, followed by Toyota Kirloskar (31 per cent YoY) and M&M (10 per cent YoY). Maruti Suzuki, however, slipped 6 per cent YoY, while Hyundai remained flat.
Company-wise, Tata Motors’ PV sales jumped 45 per cent YoY, while M&M’s PV division rose 10 per cent YoY. Maruti Suzuki reported a 6 per cent YoY drop in domestic sales, though MoM performance improved 2 per cent.
Tractors
The tractor industry witnessed a sharp rebound, with volumes up 50 per cent YoY and 124 per cent MoM, buoyed by good monsoons and high reservoir levels. M&M’s tractor sales surged 50 per cent YoY and 148 per cent MoM, Escorts Kubota rose 49 per cent YoY and 125 per cent MoM, while VST Tillers and Tractors posted a 42 per cent YoY gain but fell 27 per cent sequentially.
Commercial Vehicles (CV)
Domestic CV sales rose 11 per cent YoY and 19 per cent MoM. Tata Motors and M&M recorded mid-double-digit growth, while Ashok Leyland reported a 9 per cent YoY rise. Eicher Motors’ VECV division remained flat YoY, but improved 6 per cent MoM. Maruti Suzuki’s CV sales fell 7 per cent YoY.
Axis security said that it remains cautiously optimistic for H2FY26, expecting high single-digit growth in PVs and steady demand in CVs, supported by festive demand, GST cuts, rural recovery, and new model launches.
Tractor sales are also expected to remain buoyant, aided by improved kharif harvest and reservoir conditions, the domestic brokerage firm said.