TL;DR
India's automotive sector showed strong growth in June 2026, with two-wheelers and passenger vehicles leading double-digit retail sales, while EV demand also saw a significant increase despite price hikes.
The Indian automobile sector experienced sustained demand momentum in June 2026, with two-wheelers and passenger vehicles demonstrating healthy double-digit retail growth year-on-year. According to a report by Yes Securities Institutional Equities, two-wheeler retail sales are expected to grow over 15% year-on-year, benefiting from a favorable base. While month-on-month sales for two-wheelers might see a slight decline of 2-3% due to Adhik Maas-related purchase delays, the underlying traction in the >125cc category for both ICE scooter and motorcycle segments remained robust.
Passenger vehicles are also projected to achieve healthy double-digit growth, supported by a strong rebound post-Adhik Maas and significant traction from new model launches. Improved footfalls were observed across various regions, with South India reporting healthy double-digit growth, and West and North India seeing high single-digit to early double-digit growth.
Despite industry-wide price hikes of 0.5-1.5% implemented by major OEMs in June 2026 to offset rising input costs, electric vehicle (EV) demand remained strong month-on-month. Driven by concerns over fuel costs and the introduction of new models, EV inquiries and bookings witnessed a rise of 15-20%. The tractor segment also maintained stable retail sales in June 2026, with strong volumes expected in Q1 FY27.
