Domestic automobile wholesales are expected to maintain strong momentum in July 2026, with passenger vehicle (PV) and commercial vehicle (CV) segments likely to record more than 20 percent year-on-year (YoY) growth, according to a report by Nuvama.
The brokerage expects demand across key vehicle categories to remain supported by improved affordability, new model launches and easier access to financing.
Passenger Vehicle Sales Seen Growing Over 25%
According to the report, the passenger vehicle segment is likely to post over 25 percent YoY growth in domestic wholesales during July.
The commercial vehicle industry is also expected to deliver robust performance, with domestic volumes projected to increase by more than 20 percent YoY.
Industry demand continues to benefit from favourable financing conditions, improving affordability and the introduction of new products across segments.
Two-Wheelers and Tractors to Continue Growth
Nuvama expects domestic two-wheeler (2W) sales to rise by more than 15 percent YoY in July 2026. The report attributed the expected growth to enhanced affordability, demand generated by the ongoing marriage season and adequate availability of vehicle financing.
It also noted that exports are likely to remain strong for most original equipment manufacturers (OEMs), supported by increasing demand across Africa, Latin America and Asia.
Overall, the report said two-wheelers and tractors are expected to record growth of over 10 percent, while exports are likely to remain positive for most manufacturers.
Rural Demand Supports Tractor Sales
The tractor segment is also expected to maintain its growth trajectory, with domestic volumes projected to increase by more than 10 percent YoY during July.
According to Nuvama, improved affordability, stronger rural liquidity and easier access to credit are supporting demand in the segment. However, the report cautioned that terms of trade remain unfavourable due to higher fuel prices. Looking ahead, it identified rainfall distribution as a key factor influencing rural demand.
“Going forward, rainfall coverage and spread would be key monitorables for farmer sentiments and tractor demand,” the report said.
Medium-Term Outlook Remains Positive
Looking beyond the current financial year, Nuvama expects personal mobility segments to outperform commercial and agricultural vehicle categories over the medium term.
Between FY26 and FY28, the brokerage projects domestic:
- Passenger vehicle sales to grow at an 11 percent compound annual growth rate (CAGR)
- Two-wheeler sales to expand at a 7 percent CAGR
In comparison, growth is expected to remain relatively moderate for medium and heavy commercial vehicles (MHCVs) and the tractor industry.
