Market AnalysisJuly 21, 2026

India Auto Market Records Moderate Growth in June 2026

India’s automotive market recorded a moderate 1.1% month-on-month growth in June 2026, reaching 25.64 lakh units from 25.38 lakh units in May. Growth was driven by Construction Equipment (+33.5%), Tractors (+22.0%), Buses (+24.1%), Commercial Vehicles (+5.5%), and Passenger Vehicles (+2.4%). However, 2W sales declined 0.9%. Overall, strong rural demand, infrastructure activity, passenger mobility, and fleet demand supported market growth.

By Race Auto Analytics
India Auto Market Records Moderate Growth in June 2026

India’s automotive market recorded a moderate +1.1% month-on-month growth in June 2026, increasing from 25,37,764 units in May 2026 to 25,64,464 units in June 2026.

The market growth was mainly supported by strong gains in Tractors, Buses, Construction Equipment, 3W and Passenger Vehicles, while the 2W segment declined slightly by -0.9%, limiting overall market expansion.

Construction Equipment was the fastest-growing category, rising +33.5% from 3,879 units to 5,180 units, indicating stronger infrastructure and project activity.

Tractor sales showed strong rural momentum, increasing +22.0% to 99,766 units, supported by agricultural demand and seasonal buying activity.

Bus sales grew +24.1%, while Commercial Vehicles increased +5.5%, reflecting improvement in passenger mobility, freight movement and fleet demand.

Key Insights

  • Total automotive sales increased by 26,700 units in June 2026.
  • Construction Equipment recorded the highest growth at +33.5%.
  • Tractor sales rose strongly by 17,990 units month-on-month.
  • PV sales grew +2.4%, reaching 4,19,311 units.
  • 2W sales declined slightly by -16,762 units, down -0.9% from May.

Conclusion

India’s automotive market showed a stable growth trend in June 2026. While total growth remained moderate, strong performance in Tractors, Construction Equipment and Buses helped offset the slight decline in 2W sales.

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