New Delhi [India], August 29 (ANI): Passenger vehicle demand in August remains constructive, with growth likely to be more than 9-10 per cent year-on-year (YoY), according to a report by Yes Securities. The domestic automobile sector registered broad-based retail momentum across passenger vehicles (PV), two-wheelers (2W), and commercial vehicles (CV), supported by the onset of the festive season in southern markets, improving supply chains, and steady inquiry levels across urban and rural pockets.
The report noted that the low base from the corresponding period last year, caused by purchase deferrals prior to the implementation of GST 2.0, provides a statistical tailwind to headline retail growth. Demand in Kerala led the passenger vehicle segment, with Onam sales growing by more than 20 per cent YoY.
"Our channel check suggests PV demand in Aug'26 remains constructive, with growth likely in to be +9-10% YoY, partly led by low base (+0.9% YoY) due to postponement in purchase due to GST 2.0 implemented in Sep'25," the report said.
It noted that SUVs and alternate fuel powertrains, particularly CNG and electric vehicles (EVs), continue to dominate total industry volume additions.
"Our checks indicate continues spurt in the CNG and EV demand with >30% increase in inquiries and bookings led by new product launches and negativity around E20. Among OEMs, while TMPV's booking growth is much higher vs peers, OEMs like MSIL, Hyundai too is seeing similar trends, leading to the highest wait period increasing to 3-4 months."
The two-wheeler segment mirrors this positive momentum, registering an estimated 18 to 20 per cent YoY retail growth during August 2026. The southern region outperforms other geographic zones on the back of early Onam demand, while organic inquiries across India rose between 10 and 12 per cent. OEMs ramp up factory dispatches to build inventory for upcoming festivals.
"Retail sentiment across key regions remained healthy as demand outstrip supply in EVs (across OEMs) and premium ICE (mostly with TVS for Apache, select Jupiter variants and Ronin)," the report added.
The commercial vehicle segment exhibited steady trends, with medium and heavy commercial vehicles posting double-digit retail growth of 14 to 16 per cent YoY, driven by small fleet operators and vehicle replacement cycles.
Regulatory mandates, such as the impending restriction on BS4 commercial vehicles entering the National Capital Region starting November 2026, act as an additional catalyst for replacement demand heading into the second half of the financial year. (ANI)
PV and 2W retail demand strengthens in August ahead of festive season on strong Onam pull: Report
