With the festive season around the corner, India’s passenger vehicle industry posted a strong performance in July, with almost all major automakers reporting record domestic sales, signalling resilient consumer demand despite price hikes across SUVs, entry-level small cars and electric vehicles.
With numbers from major OEMs out by late Saturday afternoon, the industry is estimated to clock approximately 4.7 lakh units in July 2026, compared to 3.5 lakh units in the same month last year, depicting growth of more than 33 per cent.
This demand is buoyed by GST rationalisation, RBI repo rate cuts, income-tax relief boosting disposable income for entry-level buyers.
According to industry experts, these policies have revived affordability, especially for first-time buyers, along with fresh upgrades and new launches, pre-price-hike buying, and a delayed monsoon, which led to fewer disruptions to dealership footfalls and logistics.
| July 2025 | OEM | Rank | OEM | July 2026 |
| 140570 | Maruti Suzuki | 1 | Maruti Suzuki | 200123 |
| 49871 | Mahindra & Mahindra | 2 | Tata Motors | 62611 |
| 43973 | Hyundai India | 3 | Mahindra & Mahindra | 60048 |
| 39521 | Tata Motors | 4 | Hyundai India | 54210 |
| 29159 | Toyota Kirloskar Motor | 5 | Toyota Kirloskar Motor | 30516 |
Leaders clock best-ever performance
Industry leader Maruti Suzuki India reported its highest-ever domestic monthly sales of 200,123 units in July 2026, up 42.4 per cent from 140,570 units a year earlier, driven by a 34 per cent revival in small car sales, a sharp increase in CNG and EV volumes, and a 44 per cent surge in SUV sales, which also helped expand its market share.
“For the first time, an Indian automobile OEM has crossed the 2 lakh domestic sales mark in a month. It clearly shows the love and affection of Indian customers for our brand,” said Maruti Suzuki Senior Executive Officer (Marketing & Sales) Partho Banerjee during a media briefing.
Banerjee added that the market is witnessing healthy demand supported by the revival in entry-level cars, sustained SUV growth and improving production capacity.
Tata Motors continued to hold the second position with domestic sales jumping 58 per cent to 62,611 units, aided by robust demand across its SUV and electric vehicle portfolio. Its EV wholesales surpassed 15,000 in July, and the Punch reported its best-ever monthly sales.
Mahindra & Mahindra continued to drive its strong SUV-led run, with sales increasing to 60,048 units, up 20 per cent year-on-year.
Nalinikanth Gollagunta, CEO, Automotive Division, M&M said, “The total vehicle sales stood at 1,03, 860, a 26 per cent YoY growth reflecting all-round demand traction across the portfolio.”
Hyundai fights back
While Hyundai Motor India retained its fourth position in the domestic passenger vehicle market, its performance improved significantly in July, with domestic sales rising 23 per cent year-on-year to 54,210 units, driven by sustained demand for the Creta and i20. The company also recorded its highest monthly export sales in more than 100 months, strengthening its overall sales momentum.
“We have kicked off the new quarter on a strong note. Furthermore, delivering 21,150 export units (up 31.4% YoY), our highest in more than 100 months, reinforces our relentless commitment to Make-in-India, Made-for-the-World,” said Tarun Garg, MD & CEO, Hyundai Motor India.
Toyota Kirloskar Motor remains steady in fifth position with a modest growth of 5 per cent, selling 30,516 units, while JSW MG Motor India registered 22 per cent growth with 8,158 units, helped by continued traction in its EV portfolio.
Japanese automaker Nissan made a comeback with dispatches surging 218 per cent to 4,518 units, driven by the launch of its new premium SUV, Tekton.
Watchful of uncertainties
Despite the strong start to the festive season, automakers remain cautious after commodity inflation squeezed margins in the first quarter of FY27.
The industry is keeping a close watch on raw material prices and global supply-chain risks, which could weigh on profitability in the coming quarters.
Along with this, higher semiconductor costs leading to vehicle price hikes, and CAFE III compliance costs, which could push up vehicle prices later this year, could act as potential hurdles, Puneet Gupta, Mobility Global, Director India & ASEAN, told ETAuto.
“The biggest challenge from September will be the high base. If repo rates or fuel prices rise further, demand could come under pressure. At the same time, the Iran conflict poses a risk to oil prices, while prolonged disruption after the Japan earthquake could impact global supply chains,” he added.
