The passenger vehicle segment continues to see a steady growth with automakers across segment reporting healthy sales in June. 

Maruti Suzuki India, the country’s largest carmaker reported wholesales of 148,915 units, which was 6.6 percent higher over last year. 

Hyundai Motor India clocked a muted growth with 50,202 units, compared to 50,001 units for the same period last year. 

Tarun Garg, COO, Hyundai Motor India Limited said, “We closed H1 of CY2024 with an overall sales growth of 5.68 percent YoY. SUVs have contributed strongly, accounting for 66 percent of our domestic sales. The new Hyundai Creta has been a key driver for domestic H1 sales with 91,348 units sold, a growth of 11 percent over same period last year.”

Tata Motors, reported a decline of 8 percent in its sales, with 43,524 units (including EVs) sold in June, as compared to 47,235 units for the same period last year. The company attributed the slowdown on the back of general elections and heat waves that impacted consumer sentiment.

Shailesh Chandra, MD, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility said, “In Q1 FY2025, after a boost in demand in the first half of April, due to festivities in some parts of country, the passenger vehicle industry saw a decline in retails (registrations) in the months of May and June, influenced by the general elections and heat waves across the country. Tata Motors wholesales of 138,682 cars and SUVs in Q1 FY2025 remained flat compared to Q1 FY2024, as we readjusted our wholesales in line with retails to keep channel inventory under control.”

“The electric vehicle industry was affected by the broader industry trend and the impact of significant preponement fleet sales in Q4FY2024, due to expiry of FAME II subsidy in March 2024. Consequently, while the personal segment retails have grown slightly, there was a sharp decline witnessed in the fleet segment, which is expected to recover in the coming quarters. Going forward, we foresee recovery of demand, as enquiries have remained strong despite low retails in the past two months. This strong enquiry pipeline, in addition to onset of festive season from August, augurs well for the industry. Tata Motors is fully geared up to leverage this growth opportunity on the back of strong demand for its SUV portfolio, especially Punch and Nexon, as well as new launches in the coming months,” added Chandra.

Mumbai-headquartered Mahindra & Mahindra reported a growth of 22.8 percent selling 40,022 vehicles.

Veejay Nakra, President, Automotive Division, Mahindra & Mahindra stated, “We sold a total of 40,022 SUVs in June, a growth of 23 percent and 69,397 total vehicles, a 11 percent growth over last year. June has been a momentous month, as we rolled out the 200,000th XUV700 from our facility. We also celebrated 25 years of Bolero Pik-Ups, a category creator and a market leader in the LCV segment.”

Toyota Motor Corp continued to ride on the success of its new models. The company sold 27,474 units in June, marking a 40 percent growth. This also marked its best-ever monthly sales.

Sabari Manohar – Vice President, Sales-Service-Used Car Business, Toyota Kirloskar Motor said, “Our product strategy and continued focus on offering a delightful ownership experience across all touchpoints allowed us to maintain a consistently strong performance. Notably, we achieved our highest ever monthly sales of 27,474 units in June, and the overall 47% growth for the Calendar Year highlights the success of our invigorated strategy. Our recently launched Urban Cruiser Taisor continues to perform beyond expectations with order intake doubling compared to the previous month. The model's growing popularity underscores Toyota’s growing presence in the SUV segment. Overall, our SUV and MPV segments continue to lead our impressive sales surge thus reflecting a strong consumer preference for these versatile and reliable vehicles. Beyond our strong presence in major cities, TKM has strategically increased its focus on rural areas, broadening our customer base and driving significant momentum.”

Kia India sold 21,300 units, a growth of 9.8 percent, compared to 19,391 units sold for the same period last year. 

Hardeep Singh Brar – Senior Vice President and National Head Sales & Marketing, Kia India said, "We have observed a healthy month-on-month sales growth in H1 2024, averaging over 21,000 units per month. Our superior product offerings have consistently attracted customers to our showrooms throughout the year, maintaining a strong sales position. We are committed to sustaining this positive trend for the remainder of the year through network expansion and by adding value to our customers' aspirations."

Interestingly, Kia India recently surpassed 250,000 export milestone to over 100 markets from its Anantapur plant. 

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Stellantis-owned Chinese electric vehicle manufacturer Leapmotor has announced a significant operational milestone, reaching 1.5 million cumulative vehicle deliveries worldwide.

This delivery landmark comes eight months after the company surpassed the 1-million-unit threshold, signalling an upward shift in its global production and sales trajectory.

Since commencing its initial vehicle deliveries in China in June 2019, Leapmotor has maintained a consistent growth trajectory, which has experienced a notable surge over the last two years. It was in June 2019, the company delivered its electric vehicle in China. It reached 500,000 cumulative deliveries in October 2024 and 1 million in October in 2025.

The compression of the timeline between the 1 million and 1.5 million delivery marks was significantly accelerated by the company's formalised global export strategies executed through the Leapmotor International joint venture.

Leapmotor's product strategy relies on a diversified vehicle lineup designed to target distinct global consumer segments. The brand’s portfolio ranges from compact, agile city cars optimised for urban demographics to larger, versatile, family-oriented SUVs and sedans.

By scaling its manufacturing output, the company aims to sustain this momentum across key international markets by focusing on integrated software innovation, engineering efficiency and user-centric design principles to provide accessible electric mobility solutions.

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The Indian passenger vehicle industry is projected to achieve wholesale volume growth of 4–6 percent in FY2027, according to a sector update by credit rating agency ICRA.

Whilst the sector enters the upcoming financial year with demand momentum, the growth rate reflects a moderation compared to previous near-term spikes. The industry's baseline expansion continues to be supported by consumer demand, tax-driven affordability improvements, and a structural shift towards utility vehicles.

Data from May 2026 highlights near-term performance across manufacturing, wholesale allocations and retail customer handovers. Domestic wholesale volumes recorded a 27 percent YoY growth, reaching 440,000 units during the month.

Retail sales volumes outpaced wholesales by expanding 33 percent YoY. This retail growth was driven by consumer fundamentals, the commercial introduction of newly launched models, and an extended summer wedding season. Export volumes rose 13 percent YoY in May 2026, reflecting a supply push by Indian automakers looking to expand market shares across global markets.

The product mix in the Indian automotive market continues to skew towards larger body styles, though policy changes have sparked a recovery in entry-level segments. Utility vehicles continued to command the largest market share, contributing approximately 68% of overall passenger vehicle sales in FY2026. Demand recovery became visible across the mini and compact car categories, which was aided by improving affordability following recent GST rate cuts. The adoption of electric vehicles strengthened further, with EV penetration in the broader passenger vehicle segment rising to nearly 6 percent in early FY2027.

Despite underlying demand fundamentals, ICRA pointed out several headwind factors that could restrict growth or affect consumer sentiment in FY2027. Rising commodity prices threaten manufacturer margins, whilst increasing fuel prices could affect the total cost of vehicle ownership. Furthermore, concerns surrounding a potentially weak or uneven monsoon season remain a risk factor, as agricultural output impacts rural purchasing power and entry-level vehicle sentiment.

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VinFast Auto India, a subsidiary of the global electric vehicle (EV) brand VinFast, has signed a Memorandum of Understanding (MoU) with Tata Capital to establish a comprehensive auto and inventory financing framework for its exclusive dealer network.

The partnership is structured to provide VinFast’s retail partners with customised credit lines to manage working capital requirements, optimise inventory volumes and fund physical network expansion as the brand establishes its commercial footprint in India.

The collaboration bridges VinFast's entry into the Indian automotive space with the expansive fiscal network of Tata Capital, which ranks as India's third-largest non-banking financial company (NBFC).

The dealer financing agreement functions as an operational anchor for VinFast’s broader strategy to build a self-sustaining electric vehicle ecosystem in India. Furthermore, to alleviate consumer hesitation regarding EV depreciation curves, VinFast is launching structural assured resale value programs.

It was just recently that VinFast announced an extension of its free charging program across the V-Green charging network, which will remain active for owners until 31 March 2029.

Tapan Ghosh, CEO, VinFast India, said, “VinFast India is pleased to partner with Tata Capital, one of the most trusted financial services providers in the country, in a collaboration that reflects our shared commitment to advancing electric mobility in India. This partnership will enable us to offer comprehensive financing solutions for our dealer network, thereby supporting greater accessibility, operational ease and long-term growth for the brand. We are confident that their strong pan-India presence and financial expertise will play an important role in enhancing the ownership journey for our customers and partners.”

Narendra Kamath, COO - SME Finance, Tata Capital, said, "India’s transition to electric mobility is gathering significant momentum, creating a growing need for innovative and scalable financing solutions. Through our partnership with VinFast, we aim to empower dealers with tailored financing support that enables business growth and operational efficiency. Together, we are committed to strengthening the EV ecosystem and accelerating the adoption of sustainable mobility across the country."

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Maruti Suzuki India Limited has launched the Smart Maintenance Plan (SMP), a flexible prepaid after‑sales service package aimed at giving existing customers a worry‑free ownership experience. The plan is open to all private and commercial vehicle owners.

Customers can subscribe at the time of vehicle purchase or later during a periodic maintenance visit to any authorised workshop. The plan offers various configurations, including labour‑only, parts and labour, commercial vehicle minor services, customer‑demanded services and engine oil with coolants. Optional wear‑and‑tear coverage for clutch and brake parts is also available.

Subscribers save at least 10 percent on labour costs, with extra savings on parts and consumables, while gaining protection against future inflation. Tenure and mileage options range from two years or 20,000 kilometres up to 10 years or 100,000 kilometres for private vehicles, and 10 years or 160,000 kilometres for commercial vehicles. The plan applies nationwide at any Maruti Suzuki authorised workshop.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India Limited, said, “Since inception, our focus has been to deliver complete peace of mind and a truly joyful ownership experience to our customers. As customer expectations continue to evolve towards greater flexibility and personalised solutions, we are introducing the Smart Maintenance Plan. It is a prepaid service offering designed around individual driving needs. Customers can customise service packages while also protect themselves from future fluctuations in service costs by locking in maintenance expenses. Through this initiative, we aim to further enhance convenience, trust and long-term value for our customers.”

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