India's auto demand remains resilient in June: Report
New Delhi, July 4
Auto sector demand in India remained resilient in June, with personal mobility segments continuing to outperform, a report has said.
The report from Asit C Mehta Investment Intermediates said easing of supply-side bottlenecks at several OEMs, healthy retail demand and sustained export momentum supported volume growth during June.
Export momentum for two- and three-wheelers is also expected to remain supportive, the report added.
Two-wheeler YoY retail growth rate accelerated across all players for June, compared to slightly slower traction seen in May 2026, while wholesale growth was mixed across OEMs
"June 2026 remained another healthy month for the domestic auto industry, with demand holding up well across all segments despite macro and geopolitical risks and price hikes," the brokerage said.
Retail demand was supported by healthy consumer sentiment, while exports maintained strong momentum across most OEMs.
"Overall, demand remained resilient despite concerns around fuel prices, inflationary pressures and monsoon uncertainty," it noted.
For commercial vehicles, retail traction did not show high growth, but wholesale growth was very strong across OEMs for the month, with improving infrastructure activity, replacement demand and export recovery being major positives.
Tractor demand should remain supported through H1FY27 on a favourable base, while monsoon progression and weather risks remain the key variables for H2, the firm forecasted.
Three-wheelers continued their broad-based outperformance, with listed OEMs once again growing ahead of industry trends.
Cumulative domestic two‑wheeler sales grew 22 per cent year‑on‑year to 33.6 lakh units in April-June 2026, while passenger vehicle domestic sales rose about 25 per cent to 12.7 lakh units, a recent report said.
It predicted domestic PV sales industry volumes to grow at a mid-single-digit pace in FY27.
The growth will be supported by improving consumer affordability, rising EV adoption and new model launches, partly offset by price hikes undertaken by OEMs to mitigate the impact of volatile raw material prices amid macroeconomic uncertainties.
— IANS
Reader Comments
The growth in EV adoption is promising. I switched to an electric scooter last year and it's saving me a lot on petrol. But the government needs to fix the charging infrastructure in smaller towns for this to really take off.
Good news for the economy, but I wish the report addressed the fact that many of us are still struggling with EMIs. Price hikes by OEMs are making cars unaffordable for first-time buyers. The 25% growth in PV sales sounds impressive on paper, but a lot of that is probably from fleet sales and luxury segment. 🙄
Interesting read. As someone who works in auto logistics, I can confirm the export momentum for two-wheelers is real. We're shipping to Africa and Southeast Asia like crazy. India is becoming a global hub for affordable mobility.
Monsoon uncertainty is a real worry for tractor demand. My family's farm in Karnataka was badly affected by erratic rains last year. Fingers crossed the weather gods are kinder this season. Otherwise, all this growth talk won't matter to the rural economy. 🌾
Good analysis from ACMIIL. One point missing: the chip shortage is easing but not gone. Also, the 22% YoY growth in two-wheelers is misleading because last year's base was affected by supply issues. Still, the trend is positive. Let's hope the infrastructure spending continues to support CV demand. 🚛
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