Auto Wholesale Report June 2026: Key Highlights and Future Outlook

Update of the Auto Wholesale sector for the month of March

Growth Momentum Continues; SUVs, Exports and CVs Lead

June 2026 witnessed another healthy month for the Indian automobile industry, with overall wholesale volumes across key OEMs growing 24.6% YoY, while remaining broadly stable on a monthly basis (-0.3%), supported by a favourable base, sustained consumer demand, improved affordability following GST rationalisation, lower interest rates and healthy export momentum. Retail demand remained resilient across most vehicle categories, while comfortable inventory levels and stable supply conditions enabled OEMs to maintain healthy dispatches. Passenger vehicles continued to see robust demand, driven by strong traction in SUVs and accelerating adoption of alternative technologies, while the 2W segment remained supported by premium motorcycles and scooters, with overseas demand improving. Commercial vehicles also registered broad-based growth, aided by infrastructure activity and replacement demand, whereas the tractor segment maintained healthy momentum on the back of improving monsoon progress and resilient rural sentiment.

Looking ahead, the near-term outlook for the automobile industry remains positive, supported by improving affordability, healthy retail demand, and a gradual recovery in export markets. The revival in monsoon activity towards the end of June is expected to support rural demand and Kharif sowing, although the pace of growth may moderate as the favourable base effect wanes. Commodity price volatility, geopolitical uncertainties, inventory levels and freight activity remain key monitorables in the coming months.

Passenger Vehicles

The PV segment continued its healthy growth trajectory in June 2026, with wholesales across key OEMs up 32.6% YoY, although volumes declined 12.3% MoM, reflecting normalisation following a strong May performance. Maruti Suzuki reported 23.8% YoY growth in domestic PV sales, supported by broad-based demand across rural and urban markets, improving traction in the entry-level segment, record CNG sales and healthy exports. Tata Motors emerged as the strongest performer, with domestic PV volumes surging 67.4% YoY, driven by sustained demand for its SUV portfolio and record electric-vehicle sales, supported by recent product launches and an expanding electrified portfolio. Mahindra & Mahindra also delivered a robust 27.7% YoY growth, driven by sustained demand across its SUV portfolio, led by the Scorpio-N, XUV700, Thar and XUV 3XO, supported by healthy bookings and continued preference for premium utility vehicles. Industry demand remained supported by improving affordability, sustained preference for SUVs and increasing EV adoption. Inventory levels remained comfortable across the industry, while healthy demand for SUVs and electric vehicles continued to keep waiting periods elevated for select high-demand models. Hyundai’s performance, however, was impacted by temporary production disruptions at a key supplier rather than underlying demand weakness.

Two Wheelers

The 2W segment continued its healthy growth trajectory in June 2026, with aggregate domestic wholesales up 17.8% YoY, although volumes declined 3.0% MoM. TVS Motor remained the standout performer, reporting 46.8% YoY growth, driven by robust demand across its motorcycle and scooter portfolio, sustained traction in the electric 2W segment and healthy export performance. Bajaj Auto reported an 11.8% YoY increase in domestic volumes, while exports surged 49.1% YoY to over 2.2 lakh units, achieving the company’s stated monthly export target, reflecting a broad-based recovery across key overseas markets. Eicher Motors continued to witness healthy momentum, with Royal Enfield volumes growing 27.4% YoY, supported by sustained demand for its mid-size motorcycles in both domestic and international markets. In contrast, Hero MotoCorp reported a 4.2% YoY decline in domestic dispatches, reflecting continued weakness in the entry-level commuter motorcycle segment despite healthy demand for premium motorcycles and scooters across the industry.

On the EV front, the momentum remained strong, with registrations rising 12% MoM to 193,495 units, marking the second-highest monthly retail volume on record, and taking H1CY2026 sales to over 9.7 lakh units, up 53% YoY. Legacy OEMs continued to consolidate their leadership, with TVS Motor retaining the top position with a 24% market share, while Bajaj Auto (22% market share) further strengthened its presence through the Chetak portfolio, with the two manufacturers collectively retailing nearly 90,000 electric scooters during the month. The sustained shift towards established OEMs reflects increasing consumer preference for wider distribution networks, stronger after-sales support, and a broader product portfolio. The continued strength in bookings and rising waiting periods for select electric models indicate sustained consumer acceptance of EVs, while ongoing product launches are expected to support further penetration.

Commercial Vehicles

The CV segment delivered a strong performance in June 2026, with domestic wholesales across key OEMs growing 32.3% YoY and 20.0% MoM, supported by pre-buying ahead of anticipated price hikes by OEMs in July, attractive dealer discounts, softer financing rates, and improved funding availability for fleet operators. Infrastructure-led demand and replacement buying supported dispatches during the month, while freight conditions largely stabilised after recent weakness, leading to an improvement in fleet sentiment despite booking conversions remaining relatively measured. Tata Motors remained the leading performer, reporting a 31.0% YoY increase in domestic CV sales, driven by healthy demand across its truck, bus and SCV portfolio. Mahindra & Mahindra also reported a robust 37.4% YoY growth, while VECV posted a healthy 28.4% YoY increase in domestic volumes, led by strong growth in its light and medium-duty truck portfolio and continued improvement in heavy-duty truck dispatches. Ashok Leyland’s domestic volumes increased 26.3% YoY, supported by a sharp recovery in M&HCV truck sales.

Tractors

The tractor segment remained resilient in June 2026, with domestic wholesales of key listed OEMs growing 13.7% YoY and 19.4% over the previous month, supported by the commencement of Kharif sowing, healthy reservoir levels and stable rural sentiment. Mahindra & Mahindra reported a 12.4% YoY increase in domestic tractor sales, with management highlighting that sustained fertilizer subsidies and targeted government support measures are expected to mitigate the impact of emerging El Niño conditions on the Kharif season. Escorts Kubota outperformed the industry, reporting a 19.8% YoY growth in domestic volumes, driven by improved wholesale and retail demand. While rainfall distribution and emerging El Niño conditions remain key monitorables, higher tractor prices and the gradual withdrawal of certain state-level subsidy programmes could moderate demand over the coming quarters. Nevertheless, healthy agricultural activity, favourable reservoir levels and continued policy support are expected to underpin rural demand going forward.