June Car Sales Indicate Strong Recovery in Demand for India’s Auto Boom

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India’s passenger vehicle industry concluded the first quarter of FY27 on a strong note with top automakers in the country registering strong year-on-year growth for June. The jump underscores a robust consumer appetite for sport utility vehicles and electric vehicles that has successfully mitigated supply chain challenges experienced by some manufacturers.

Market leader Maruti Suzuki maintained its lead in volumes with total sales of 200,390 units in June, a 19.3% increase over the same period last year. The automaker’s domestic passenger vehicle sales increased 23.8 per cent to 1,47,187 units from a year ago, riding on the continued momentum in the utility vehicle segment, while the export volumes grew 13 per cent.

On the other hand, Hyundai Motor India reported total sales of 51,335 units, including 39,635 units in the domestic market and 11,700 units in exports. But the company’s June numbers got a temporary bump when a fire at a supplier’s manufacturing facility resulted in a loss of production of about 13,900 units. However, operations resumed by June 22, and Hyundai expects to recover those lost volumes in the second quarter.

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Mahindra & Mahindra also recorded a stellar month, with its total vehicle sales, including exports, jumping 37% to 106,207 units. Driven heavily by the SUV wave, domestic utility vehicle sales surged to 60,393 units from 47,306 units a year ago, bringing total SUV sales (including overseas markets) to 61,504 units. Mahindra’s exports more than doubled to 5,918 units, showing solid international traction.

Representing the highest growth surge among the top players, Tata Motors Passenger Vehicles registered a massive 69% year-on-year increase, selling 63,083 cars and SUVs in June. The brand also achieved its highest-ever monthly EV sales at 14,800 units nearly tripling last year’s performance which helped push its overall quarterly passenger vehicle sales up 46% to 1,82,574 units. Tata credited this success to strong demand for its refreshed Tiago and Punch models, adding that supply bottlenecks impacting Sierra production are expected to ease in the current quarter.

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