Key Points
Two-wheeler segment sees robust growth led by TVS and Royal Enfield
Passenger vehicle sales grow 5% driven by Toyota and M&M
Commercial vehicle sector shows marginal 2% year-on-year expansion
Tractor sales impressive with 32% year-on-year increase
Acccording to a comprehensive analysis done by Axis Securities, in the passenger vehicle segments, domestic PV industry sales grew by approximately 5 per cent year-on-year (YoY), driven by robust volumes from Toyota, Mahindra & Mahindra (M&M), and Kia.
Toyota recorded a 13 per cent YoY increase, Kia posted a 19 per cent rise, and M&M saw an 18 per cent growth.
However, Hyundai and Maruti Suzuki faced headwinds, with Hyundai's domestic volumes declining by 2 per cent YoY and Maruti Suzuki reporting an overall sales dip of 1 per cent YoY, primarily due to a 3 per cent decline in entry-level car sales. Tata Motors managed a modest 3 per cent YoY growth in March.
In the commercial vehicles, domestic CV segment saw a marginal 2 per cent YoY growth, with a stronger month-on-month (MoM) increase of 23 per cent.
Within the sector, VECV, M&M, and Ashok Leyland recorded growth rates of 6 per cent, 14 per cent, and 6 per cent YoY, respectively.
However, Maruti Suzuki's CV sales dropped significantly by 34 per cent YoY, while Tata Motors saw a 4 per cent YoY decline.
The report anticipates a single-digit growth for CVs in FY26, with strong demand anticipated in the bus segment.
The 2W segment witnessed significant growth, led by TVS, Suzuki, and Royal Enfield (RE), which registered YoY increases of 14 per cent, 33 per cent, and 23 per cent, respectively.
In the export market, TVS, RE, and Suzuki Motorcycles continued their positive trajectory, growing by 22 per cent, 36 per cent, and 15 per cent YoY, respectively.
Going forward, domestic demand in the segment is expected to be driven by a rural demand uptick, new model launches, and government consumption incentives such as tax relief for the middle class.
The tractor segment recorded an impressive 32 per cent YoY growth, with M&M and Escorts leading the charge with 34 per cent and 15 per cent YoY increases, respectively.
For the tractors, the report projects continued momentum in FY26, supported by strong rabi sowing, improved reservoir water levels, and a favorable base effect.
