Exports are also expected to remain strong, especially in the two-wheeler segment, with rising demand from Asia, Africa, and Latin America contributing to growth.Passenger vehicle (PV) sales in India are likely to rise in the teens in February, with domestic volumes expected to grow by over 10 per cent year-on-year, supporting overall automobile sales growth across segments, according to a report by Nuvama.
The report highlighted that the growth in passenger vehicle volumes is likely to be driven by better affordability, the launch of new products, and adequate availability of financing. Improved customer sentiment and favourable market conditions are also expected to contribute to higher demand in the segment.
It stated, “PV industry volumes likely to rise in teens in Feb-26 (over 10 per cent YoY in domestic market) supported by better affordability, new products and adequate financing availability”.
Overall, automobile wholesales in February 2026 are expected to remain robust, with double-digit year-on-year growth likely across segments.
The report noted that sales volumes are expected to be supported by continued positive customer sentiment, improved affordability, new product offerings, adequate finance availability, and inventory build-up with dealers.
The two-wheeler segment is expected to witness particularly strong growth during the month. According to the report, two-wheeler industry volumes are likely to grow in robust double digits in February 2026, with domestic volumes projected to rise by over 30 per cent year-on-year.
This strong performance in the two-wheeler segment is expected to be driven by positive customer sentiment, improved affordability, and increased demand during the marriage season. Adequate financing availability is also expected to support higher sales volumes.
In addition to domestic growth, exports are expected to remain a key contributor to overall automobile sales growth. The report forecast that two-wheeler exports would increase in double digits, supported by rising demand from markets in Asia, Africa, and Latin America.
The report further noted that exports across automobile segments are likely to remain positive, contributing to overall sales momentum.
Nuvama maintained a constructive outlook on the automobile sector, highlighting healthy growth prospects over the medium term.
The report stated that robust demand conditions, improving affordability, adequate financing availability, and strong export opportunities are expected to support automobile sales growth over FY26-28E.
So the report outlined that the automobile sector is expected to continue its growth momentum, supported by strong domestic demand, export growth, and favourable market conditions.
