PV sales near 4 lakh units in June, up 24.1%; Tata Motors retains No. 2 spot ahead of Hyundai

Passenger vehicle sales gathered pace in June, rising 24.14% year-on-year to 3,97,607 units from 3,20,278 units a year earlier, as sustained demand for Sport Utility Vehicles (SUVs) and a rebound in entry-level cars lifted dispatches across most automakers. The industry ended the month just shy of the 4 lakh-unit mark, reflecting resilient consumer demand even as some automakers grappled with temporary supply-chain disruptions.

Industry executives attributed the strong performance to a combination of policy support and favourable macroeconomic conditions. According to industry officials, income tax relief announced last year, successive repo rate cuts and the benefits of GST 2.0 have supported consumer demand, although rising crude oil prices following the West Asia conflict and the progress of the monsoon remain key variables to watch in the coming months.

Maruti Suzuki extends market lead

Maruti Suzuki, the country's largest carmaker, reported domestic passenger vehicle sales of 1,47,187 units, up 23.7% over the year-ago period. The country's largest carmaker expects to gain at least 2 percentage points in both wholesale and retail market share during the April-June quarter, potentially taking its overall market share to around 41%, subject to final industry data.

The company attributed the outperformance to broad-based demand across product categories, supported by healthy traction in both rural and urban markets.

"We have outperformed the market in the first quarter and are growing at around 33.5%, higher than the industry. Our endeavour is to continue outperforming the market," said Partho Banerjee, Senior Executive Officer, Domestic Sales & Marketing, Maruti Suzuki India.

Banerjee said the company recorded its highest-ever June wholesale sales despite a planned one-week maintenance shutdown. Capacity expansion at Maruti Suzuki's Kharkhoda facility has helped ease production constraints, with output expected to rise further in July. Dealer inventory has declined to around 75,000 vehicles, equivalent to nearly 14 days of stock, as retail sales outpaced wholesale dispatches during the month.

"Our production numbers are the highest ever this quarter, thanks to the capacity ramp-up. Production constraints are now much lower after the annual maintenance shutdown in June, while network inventory is around 14 days and is expected to improve further as production normalises," Banerjee said, adding that Maruti Suzuki currently has a pending order book of around 1.3 lakh vehicles.

He said demand remained broad-based, with rural sales growing about 45% year-on-year and accounting for 53.1% of the company's overall sales. "The rural market is supporting us, our SUV portfolio continues to perform well, and small cars are also doing fantastically," Banerjee said. He added that there were no signs of weakness in the entry-level segment despite higher fuel prices, while demand for CNG-powered vehicles continued to strengthen.

Tata Motors strengthens its hold on second spot

Tata Motors reinforced its position as the country's second-largest passenger vehicle manufacturer, reporting domestic wholesales of 62,076 units, up 67% year-on-year. Total passenger vehicle sales, including exports, increased 69% to 63,083 units.

The company said production of the recently launched Sierra was affected by localised supply constraints despite a healthy booking pipeline. Its electric vehicle business, however, continued to gain momentum, with combined domestic and export dispatches touching a record 14,800 units in June, accounting for 23.4% of its total passenger vehicle sales.

"In EVs, we achieved our highest-ever monthly sales of 14,800 units, with volumes nearly tripling year-on-year. The sustained momentum across both wholesale and retail channels reinforces the growing strength of our portfolio and the positive response from customers across segments," said Shailesh Chandra, Managing Director and CEO, Tata Motors Passenger Vehicles Ltd.

Mahindra & Mahindra (M&M) also maintained its growth momentum, with domestic SUV sales rising 28% year-on-year to 60,393 units, helping overall automotive sales climb 37% to 1,06,207 units. Domestic passenger vehicle sales crossed the 60,000-unit mark for the first time in June.

"In June we achieved SUV sales of 60,393 units and LCV <3.5T segment sales of 26,076 units, delivering robust growth of 28% and 35%, respectively," said Nalinikanth Gollagunta, CEO, Automotive Division, M&M Ltd.

Hyundai hit by supply disruption; Toyota, Kia, Skoda post growth

Hyundai Motor India reported domestic sales of 39,635 units, down nearly 10% year-on-year after a fire at one of its suppliers' facilities disrupted the supply of critical components, resulting in a production loss of around 13,900 units.

"In June 2026, HMIL achieved total monthly sales of 51,335 units despite facing a production loss of 13,900 units owing to a fire incident at one of the supplier's manufacturing facilities," said Tarun Garg, Managing Director & CEO, Hyundai Motor India.

He said the company had activated alternate sourcing to restore production, which returned to normal from June 22, and expects to recover the lost output during the second quarter of FY27.

Among other automakers, Toyota Kirloskar Motor reported a 7.5% increase in domestic sales to 28,441 units during June, while Kia India delivered 24,552 units, up 19% year-on-year. Skoda India also posted healthy growth, with domestic sales rising to 6,220 units from 5,014 units in the year-ago period.

The June sales performance underscores the resilience of the passenger vehicle market, with SUVs continuing to power industry growth while improving availability and stronger consumer demand also lifted sales of entry-level cars after a prolonged period of subdued growth.

Industry executives, however, remain watchful of crude oil prices and the progress of the monsoon, both of which could influence consumer sentiment, vehicle costs and demand in the months ahead.