New Delhi [India], September 30 : Passenger vehicle (PV) sales in the domestic market are likely to register robust growth of around 20 per cent year-on-year in September, supported by better affordability, new product launches, adequate financing availability and inventory build-up with dealers, according to a Nuvama report.
The report expects wholesale growth to continue in September 2026, with passenger vehicle and commercial vehicle volumes likely to grow in double digits year-on-year. Exports are also expected to remain positive for most original equipment manufacturers (OEMs), led by growth across Africa, Latin America and Asia.
It stated, “PV industry volumes likely to log robust double-digit growth in Sep-26 (approx. 20 per cent YoY in domestic market)”
The report also mentioned that the broader auto market is likely to see different growth trends across segments. Commercial vehicle volumes are expected to grow by more than 15 per cent year-on-year in the domestic market in September, supported by positive trends in e-way bills and freight rates.
It highlighted that the two-wheeler volumes are likely to grow in the mid-single digits during the month. The segment is expected to benefit from adequate financing availability and inventory build-up with dealers.
The report also added that positive export growth for mass-market two-wheeler manufacturers is expected, led by demand from Africa, Latin America and Asia.
In contrast, tractor industry volumes are likely to decline by more than 10 per cent year-on-year in September.
The report shared that the fall is expected mainly because of a high base, particularly in the West and South regions, where state-level subsidies and an early festive season supported volumes last year.
Terms of trade also remain adverse for tractors, mainly due to fuel inflation.
Looking ahead, it noted that domestic passenger vehicle growth is expected to remain stronger over FY26-28E, with the segment projected to record a 13 per cent compound annual growth rate (CAGR). Two-wheelers are expected to grow at 7 per cent CAGR, while medium and heavy commercial vehicles (MHCVs) are expected to grow at 6 per cent CAGR.
In comparison, tractor growth is expected to remain moderate at a 2 per cent CAGR over FY26-28E.
Overall, September is expected to remain a strong month for passenger vehicles, with affordability, new products, financing availability and dealer inventory supporting demand, while tractors are likely to face pressure from a high base and segment-specific factors.