Automobiles – Monthly Update – Festive Stocking Fuels Auto Volumes
Published on 02 Sep 2026
Auto wholesales for Aug’26 benefited from festive stocking as retail demand sustained. Rural sentiments remained stable following improved rainfall (although still deficient) and near-normal kharif sowing. PVs reported strong growth on a low base, while 2Ws saw modest growth, with continued surge in e-2W demand. PV inventories further built up on the latest reported ~34days at the end of Jul’26 vs. ~33/32/29 days at the end of Jun’26/May’26/Apr’26. The CV industry reported very strong performance, led by MHCV trucks, driven by infrastructure spending, freight demand and replacement demand. Tractors saw a mixed month, posting moderate YoY growth, but a decline on MoM basis. Upcoming months will benefit from delayed festivities, although against a very strong base following GST 2.0 rationalization toward the end of Sep'25. Key monitorables going ahead will be rainfall progression, reservoir levels, kharif crop outcomes, ongoing input cost pressures, and geopolitical uncertainties.
