New Delhi, July 24: The Indian automobile industry has reported a remarkable 28.6% increase in retail sales year-on-year for July, covering the period from July 1 to July 23. This information was released in a report on Friday.
According to the report by Choice Institutional Equities, the sales of two-wheelers surged by 31% year-on-year. Meanwhile, the SUV and passenger car segments experienced robust demand, leading to a 20.6% increase in passenger vehicle sales.
The report also highlighted a 27.3% rise in commercial vehicle sales and an 18.1% increase in three-wheeler sales compared to the previous year.
Notably, the tractor segment saw a strong annual growth of 36.8%.
The report stated, “We anticipate that the auto industry will record strong growth in July 2026. Key factors contributing to this include a low base from July 2025, stability in consumer sentiment, the recent launch of new models, rapid adoption of electric vehicles, easing interest rates, and increased purchasing power following GST reductions.”
Looking ahead, the outlook for the coming months remains positive. This is attributed to strong demand, a low base in August-September 2026, and a surge in demand due to festivals in the latter half of the second quarter of the fiscal year 2026-27.
Historically, the last eight days of July account for approximately 25-28% of total sales for the month.
In another recent report, it is estimated that the operational revenue of India’s auto and auto ancillary sector will grow by around 8% in the fiscal year 2026-27.
According to Brickwork Ratings, this sector is entering a new investment cycle, with projects worth ₹70,300 crore expected to commence between fiscal years 2026-27 and 2028-29.
The report indicated that this investment is supported by a pipeline of 184 projects worth ₹4.76 lakh crore and 70 projects already in the implementation phase.
The surge in investment is driven by Production Linked Incentive (PLI) schemes, FAME III incentives, and capacity expansions by Original Equipment Manufacturers (OEMs) and Tier-1 suppliers.
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