Research Report

Wholesale volumes rose by 36% year-on-year (YoY) to 4.4 lakh units in August 2026, as original equipment manufacturers (OEMs) continued steady production to cater to robust domestic demand. Retail sales also recorded strong YoY growth of 16% in August 2026, supported by the sustained traction of newly launched models, higher discounting by OEMs, and the continued positive impact of the revised Goods and Services Tax (GST) rates. In 5M FY2027, wholesale dispatches and retail registrations grew by around 29% and 27% YoY, respectively, on a relatively modest base in 5M FY2026, which was partly impacted by geopolitical tensions in northern India.

• Inventory levels rose by 5 days MoM to 38-40 days in August 2026, driven by pre-festive stocking, but remained well below the 56-day level recorded in August 2025.
  
• Export volumes moderated by 2.4% on sequential basis and 17% on YoY basis in August 2026, as OEMs increasingly focused production on strong domestic demand.