Automobiles – Monthly Update – Upward trajectory continues in Feb’26
Published on 04 Mar 2026
Strong momentum in dispatches continued in Feb’26 ahead of festivities, amid ongoing wedding season and positive rural sentiments from robust crop cashflows, with sharper customer engagement and shift toward higher value models. PV growth is being driven by non-metro locations, although small car sales are seeing slower growth. Jan’26 inventory level of 32-34days vs. 37-39days in Dec’25 indicate healthier channel discipline and efficient working capital. 2Ws remain strong with urban revival, although 350cc+ models see stagnation in volumes. CVs are on an upward trajectory from steady freight movements, fleet modernization, and government investments, with MHCV outpacing LCV growth. Demand for tractors is expected to see a boost in Mar’26 due to Navratri and on account of existing favorable government policies. Near-term challenges include geopolitical tensions, selective supply chain constraints, and aggressive competitive discounting.
