The Indian automotive sector recorded a steady climb in the first ten months of the current fiscal year, with cumulative domestic two-wheeler (2W) sales growing by 9 per cent year-on-year (YoY) to 1.5 crore units and the passenger vehicle (PV) industry posting a 7 per cent YoY increase to approximately 35.2 lakh units.
According to the monthly volume update for the automotive industry report by Axis Direct, this broad-based growth spanned across two-wheelers, three-wheelers (3W), passenger vehicles, commercial vehicles (CV), and tractors.
The 2W segment’s performance over the April to January 2026 period was bolstered by TVS, which saw a 19 per cent increase, and Royal Enfield, which grew by 25 per cent. In January 2026 alone, TVS Motors’ total 2W sales rose approximately 28 per cent year-on-year, while Hero MotoCorp reported a 26 per cent increase.
The Axis report noted that “potential upside triggers for domestic demand include government-led consumption measures, a rural demand uptick, and new model launches.”
In the PV segment, growth was primarily driven by Toyota Kirloskar, Mahindra & Mahindra (M&M), and Kia India. However, the industry leader Maruti Suzuki saw flat wholesale figures YoY for January, even as the broader domestic PV sales rose about 13 per cent during the month. Tata Motors’ PV division registered a 48 per cent growth in January.
“We remain cautiously positive and expect industry volumes to grow in high single digits, supported by a reduction in GST rate and improving affordability for consumers,” the report stated regarding the outlook for the remainder of the fiscal year.
The CV and tractor segments also maintained upward momentum. Domestic CV volumes increased 10 per cent on a year-to-date (YTD) basis, indicating stable freight demand. In January, Ashok Leyland posted a 31 per cent surge in domestic volumes, followed closely by Tata Motors at 32 per cent.
The tractor industry saw a volume growth of 48 per cent YoY in January, with VST Tillers surging 55 per cent and Escorts Kubota rising 51 per cent.
The report suggests this momentum is “driven by GST reductions, adequate reservoir levels, and improved rabi harvest.”
The overall industry sentiment remains optimistic as the sector enters the final quarter of FY26. “The overall industry outlook remains optimistic, supported by strong domestic demand, a reduction in GST rates, and a continued positive stance on income tax through rate stability, which together are expected to drive demand momentum in Q4FY26 and FY27,” the report noted.
