Automobiles – Monthly Update – Volumes resilient amid uncertainty
Published on 06 Apr 2026
FY26 concluded on a strong note as Mar’26 wholesale volumes saw sustained momentum across segments amid geopolitical tensions. However, continued gas and supply chain constraints might result in production cuts and cost pressure as the short-term sentiment remains cautiously optimistic. PV growth during the month continued to be driven by non-metro locations, with SUVs still gaining preference. Inventory was 27-29 days in Feb’26, lower than 32-34days in Jan’26, indicating better wholesale-retail alignment. 2W growth remained broad based with urban slightly outpacing rural. MHCV growth slowed with the bus segment seeing decline. Replacement demand and government projects could be offset somewhat by supply chain risks and the impact on select sectors. Tractor growth was strong due to Chaitra Navratri and positive rabi harvest outlook, although fertilizer and other supply side risks can impact kharif preparedness.
