India's automobile industry posted another month of impressive growth in June 2026, with domestic passenger vehicle sales rising 24% year-on-year. Industry momentum was supported by income tax relief, lower borrowing costs, affordable EMIs, and continued consumer demand across vehicle segments.

Automakers delivered nearly 4 lakh cars, SUVs, and sedans to dealers during the month, compared with around 3.21 lakh units in June 2025. It also marked the third consecutive month of double-digit growth in passenger vehicle sales. The figures include electric vehicle (EV) sales as well.

Major Automakers Report Strong Sales

Several leading manufacturers recorded healthy growth during the month.

• Maruti Suzuki reported a 24% increase in sales.
• Tata Motors posted an impressive 67% growth.
• Mahindra & Mahindra registered a 28% rise in sales.

Maruti Suzuki said it achieved its highest-ever wholesale sales for June, despite a week-long maintenance shutdown at one of its factories. The company credited increased production capacity at its Kharkhoda facility in Haryana and sustained demand for both hatchbacks and SUVs for the strong performance.

According to the automaker, customer demand remained resilient despite concerns such as geopolitical uncertainties and a weaker-than-normal monsoon.

EV and CNG Vehicles Continue to Gain Popularity

Demand for alternative fuel vehicles remained strong during June.

Maruti Suzuki said CNG models accounted for nearly 40% of its total monthly sales, while its pending order book stood at approximately 1.3 lakh vehicles by the end of the month.

Tata Motors attributed its strong performance to the positive response for newly launched models and the rapidly growing demand for electric vehicles. The company noted that increasing interest in entry-level EVs is accelerating electric vehicle adoption across India.

Mixed Performance Across Automakers

While most manufacturers reported growth, Hyundai Motor India registered a 10% decline in sales due to production disruptions caused by a fire at one of its supplier's facilities.

The company said production has now returned to normal and expects to recover the lost volumes during the second quarter.

Meanwhile, Toyota Kirloskar Motor posted an 8% increase in sales, continuing its steady growth in the Indian market.

Two-Wheeler and Commercial Vehicle Segments Stay Strong

The positive momentum extended beyond passenger vehicles.

• Honda Motorcycle & Scooter India and Royal Enfield reported healthy sales growth.
• Hero MotoCorp recorded a slight decline in wholesale dispatches, although retail demand improved.
• Tata Motors and Ashok Leyland registered strong growth in the commercial vehicle segment.
• Mahindra's tractor business grew by 12%, supported by government initiatives aimed at the agriculture sector, including fertilizer subsidies and farmer support schemes.

Bottom Line

India's automobile industry maintained its strong growth trajectory in June 2026, driven by supportive economic measures, improving affordability, and rising consumer confidence. Robust demand for SUVs, electric vehicles, CNG models, two-wheelers, and commercial vehicles indicates that the sector continues to gain momentum, with automakers expecting positive trends to continue in the coming months.