Jefferies said the Indian auto industry posted notable volume expansion across several segments in June, with wholesales showing double-digit year-over-year growth in trucks, passenger vehicles and tractors.
Overall wholesale performance was led by the truck segment, which recorded a 38% year-over-year increase in June. Passenger vehicle wholesales rose roughly 23% year-over-year, and tractor wholesales increased about 14% year-over-year, according to Jefferies estimates based on original equipment manufacturer data.
Within passenger vehicles, growth patterns differed substantially by manufacturer. Tata Motors Passenger Vehicles recorded a 67% year-over-year increase in wholesales. Maruti Suzuki and Mahindra & Mahindra each posted gains in the mid-20s range, rising roughly 24-28% year-over-year. Hyundai was the notable laggard, with wholesales down 10% year-over-year.
Hyundai s decline reflected a supplier-related disruption: the company lost production of 14,000 units in June after a fire at a supplier facility. Hyundai s production returned to normal levels on June 22, and the company plans to recover the lost production in the second quarter of fiscal year 2027.
Registration activity accelerated across segments, with year-over-year registration growth in the range of 20-38%. Electric vehicles continued to gain share in both two-wheelers and passenger cars. In the passenger vehicle market, the share of electric vehicles rose by approximately 1.1 percentage points month-over-month to 7.7% in June.
In the two-wheeler market, electric vehicle penetration climbed by 1.3 percentage points month-over-month to 10.6% in June, crossing the 10% threshold for the first time. Market leadership in electric two-wheelers for June was led by TVS Motor with a 24% share, followed by Bajaj Auto at 22% and Ather Energy at 16%.
Company-specific wholesale trends in two-wheelers were mixed. Eicher Motors reported a 27% year-over-year increase in wholesales for June. Honda posted 23% year-over-year growth, while Hero MotoCorp saw wholesale volumes fall 2% year-over-year.
Tractor industry registrations rose more sharply than wholesales, with registrations up about 30% year-over-year in June while wholesales grew approximately 14% year-over-year. Jefferies reaffirmed buy ratings on Eicher Motors, TVS Motor, Mahindra & Mahindra and Maruti Suzuki.
The data indicate a broad recovery in underlying demand across commercial and consumer vehicle categories in June, with electric mobility continuing to make incremental inroads in both passenger cars and two-wheelers.