Automobiles – Monthly Update – No Sign of Weakness in Demand
Published on 02 Jul 2026
Jun’26 saw strong wholesale growth across the auto segments as sentiment remains positive. PVs reported growth in 20s, while 2Ws saw stable growth with scooters growing faster than motorcycles. PV inventory was slightly higher at ~32 days at May’26-end vs. ~29 days at Apr’26-end, warranting dispatch discipline. CV industry reported strong performance broadly as it sees demand from infra/ mining activities & freight availability (HCV), e-com/ FMCG/ last-mile mobility (ILMCV), and replacement cycle in the medium term, although RM cost pressures (expected to persist) and macroeconomic uncertainties impacted fleet expansion decisions in the short term. Tractors saw positive rural sentiments with adequate reservoir levels offsetting impact from delayed monsoons as kharif sowing progresses. Growth is expected to moderate in the upcoming quarters with El Nino impact, monsoon progression, and input cost inflation as key monitorables, while fertilizer subsidies and other support measures are likely to cushion some impact.
