Wholesale sales of passenger vehicles in India are projected to grow 5-7% in fiscal year 2026, per an ICRA report released Friday. The growth narrative is woven from robust demand, GST cuts, and new vehicle launches energizing the market.
January’s figures were stellar: Passenger vehicle wholesale dispatches rose 14% from December, backed by aggressive production hikes. Year-over-year retail growth stood at 7%, wholesale at 12% reaching 4.5 million units.
The report attributes January’s vigor to unwavering demand, tax relief, wedding booms, and fresh launches boosting two-wheelers and PVs. Total wholesale vehicle sales climbed 6.7%, retail 8% annually.
Domestic two-wheeler wholesale jumped 25% to 1.8 million units year-on-year, with FY26’s first 10 months showing 6.7% growth. Retail sales for two-wheelers soared 20.8% amid Pongal festivities, weddings, and rising incomes.
ICRA eyes 6-9% growth for FY26 two-wheeler sales, powered by post-GST replacement demand, urban consumption thaw, and rural earnings growth. Electric two-wheelers dazzled with 123,012 retail units sold in January, up 25.3%.
These developments herald a dynamic phase for India’s automobile industry, where policy support meets consumer enthusiasm, paving the way for expansive market gains.