New Delhi [India], May 6 : Auto sector in India is likely to see a low single-digit growth in the Financial Year 2026 (FY26E) for commercial vehicle (CV) players, according to a report by Axis Security.
"We expect a low single-digit growth in FY26E for CV players, driven by a high demand in the bus segment," the report said.
Commercial and passenger vehicle sales for the month of March witnessed a mixed trend, as shown by the figures released by the automotive manufacturers.
As per the report, factors such as rural recovery, new model launches, and potential government support for consumption through middle-class tax relief will be key drivers for the tractor industry.
The report adds that the IMD's forecast of an above-normal southwest monsoon is also a major tailwind for the agriculture sector and tractor demand.
In April 2025, domestic passenger vehicle (PV) sales grew by 6-7 per cent year-on-year (YoY), supported by strong performance from Toyota, Mahindra, JSW MG, and Kia.
Maruti Suzuki posted a 4 per cent YoY rise, driven by a 4 per cent increase in SUV sales and a sharp 79 per cent jump in supplies to other OEMs, though entry-level car sales dipped 2 per cent.
Tata Motors and Hyundai, however, saw declines of 6 per cent and 12 per cent, respectively. In the commercial vehicle (CV) segment, volumes declined 1 per cent YoY and 28 per cent month-on-month (MoM).
Despite the overall weakness, VECV, Mahindra, and Maruti reported YoY growth of 28 per cent, 4 per cent, and 34 per cent, respectively, while Ashok Leyland and Tata Motors declined by 7 per cent and 10 per cent.
Low single-digit growth is expected for CVs in FY26, mainly driven by strong demand for buses.
The two-wheeler (2W) segment saw a 17 per cent YoY decline in domestic sales following high volumes in March 2025.
Among 2W Original equipment manufacturer (OEMs), TVS and Eicher registered YoY growth of 8 per cent and 1 per cent, while Bajaj, Hero, and Honda declined by 13 per cent, 44 per cent, and 12 per cent, respectively.
Export volumes showed strength with TVS, Bajaj, Royal Enfield, and Suzuki growing by 46 per cent, 4 per cent, 55 per cent, and 57 per cent YoY.
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