New Delhi [India], September 3 : India's auto export segment remained mixed in August 2026, with automakers having higher exposure to West Asia witnessing weaker export trends amid logistical disruptions caused by the ongoing regional crisis, according to a report by Kotak Institutional Equities.
The brokerage said exports remained weak across original equipment manufacturers (OEMs) due to supply and logistical disruptions arising from the West Asia crisis.
However, domestic demand remained strong across most auto segments during the month. Overall retail volumes grew by more than 15 per cent year-on-year in August, despite geopolitical uncertainty linked to the Iran conflict.
According to the report, domestic passenger vehicle (PV) wholesale volumes increased by more than 30 per cent year-on-year, supported by strong retail demand, channel filling and a favourable low base. Retail PV volumes grew 15 per cent year-on-year during the month.
Maruti Suzuki's total volumes rose 21 per cent year-on-year, supported by 29 per cent growth in the domestic market. This offset a 7 per cent decline in exports and the impact of fewer production days.
Tata Motors' passenger vehicle volumes increased 56 per cent, while Mahindra & Mahindra's passenger vehicle volumes rose 50 per cent. Hyundai Motor India's total volumes grew 9 per cent, with a 24 per cent rise in domestic dispatches partly offset by a 31 per cent decline in exports.
The two-wheeler segment also recorded strong growth, with retail volumes rising 20 per cent year-on-year and wholesale volumes registering double-digit growth.
Internal combustion engine (ICE) two-wheeler retail volumes increased 16 per cent, while electric two-wheeler retail sales surged 67 per cent year-on-year.
Royal Enfield's total volumes grew 11 per cent, supported by a 10 per cent recovery in overseas shipments. Bajaj Auto's two-wheeler volumes increased 30 per cent, while TVS Motor and Hero MotoCorp recorded growth of 21 per cent and 3 per cent, respectively.
Commercial vehicles (CVs) also recorded double-digit growth, supported by improving sentiment among fleet operators and demand following GST-related measures.
Wholesale dispatches of medium, heavy and light commercial vehicles grew more than 20 per cent year-on-year, while retail goods vehicle volumes increased 14 per cent.
Tata Motors' commercial vehicle volumes rose 49 per cent, helped by growth in trucks, passenger carriers and exports. Ashok Leyland recorded 38 per cent growth, while VE Commercial Vehicles grew 18 per cent.
In the farm equipment segment, domestic tractor volumes grew in the mid-to-high single digits year-on-year in August, despite concerns over weak monsoon conditions.
The report attributed the growth to favourable farm sentiment, adequate reservoir levels and supportive terms of trade for farmers.
However, Kotak Institutional Equities cautioned that rising input costs and weak monsoon trends remain key risks for the sector.
Escorts Kubota recorded 21 per cent growth in domestic tractor volumes, while Mahindra & Mahindra's tractor dispatches increased 5 per cent year-on-year.