New Delhi
The Indian automobile industry is entering the second half of FY26 with cautious optimism. Festive demand, GST cuts, and income tax relief are expected to boost consumer buying. September sales showed mixed results, with growth in two-wheelers, three-wheelers, commercial vehicles, and tractors, while passenger vehicle sales declined compared to last year.
Two-wheelers rose 6% year-on-year (YoY), helped by brands like Royal Enfield and Suzuki. Three-wheelers grew 12% YoY, led by M&M and TVS. Passenger vehicles fell 5% YoY but rose 16% month-on-month (MoM), supported by Tata Motors and MG Motor. Tractor sales surged 50% YoY due to good monsoons, with M&M and Escorts Kubota showing strong growth. Commercial vehicles grew 11% YoY, with Tata Motors and M&M leading.
Axis Securities expects steady demand in H2FY26, driven by festivals, GST cuts, rural recovery, and new launches. Tractor sales are also expected to remain strong, supported by improved harvests and reservoir levels.