Maruti Suzuki, Tata, and Mahindra drive India's passenger vehicle growth story amid war impact

India's passenger vehicle sales in June grew nearly 25% to about four lakh units, despite the impact of the West Asia war. The Middle East conflict impacted the vehicle prices and fuel prices in India adversely, while the ongoing deficient monsoon also impacted the demand for passenger vehicles in June. Amid this, automakers like Maruti Suzuki, Tata Motors and Mahindra were the major OEMs that drove India's passenger vehicle growth story.

Helping the growth momentum amid the challenging phase were factors such as the GST 2.0 tailwinds, income tax relief on income up to ₹12 lakh and repo rate cuts by the RBI. These factors, altogether, continued to propel the demand for big-ticket purchases like passenger vehicles by enhancing affordability and purchase power of the consumers.

Maruti Suzuki, Tata, Mahindra drive momentum

Maruti Suzuki reported total domestic PV sales of 147,187 units last month, the highest June sales performance for the company. This was registered in comparison to 118,906 units recorded in June 2025, marking a year-on-year (YoY) growth of 23.8%.

PTI has quoted Maruti Suzuki India Senior Executive Officer, Marketing & Sales, Partho Banerjee, saying that the tailwinds of GST 2.0, income tax relief on income of up to ₹12 lakh and repo rate cuts by the RBI continue to drive demand in the domestic market. He also added that the total industry sales estimate for June 2026 is around 4 lakh plus or minus 2,000 or 3,000 units, which in June 2025 was around 3.22 lakh units. "The three tailwinds of GST 2.0, the income tax benefit on up to ₹12 lakh income, and repo rate reduction are still very much there," Banerjee said, while adding, "Obviously, some headwinds are coming in the form of the war in Iran and implications that it will have on the vehicle prices and also now the deficient monsoon, which is there. We need to wait and watch."

Speaking about the impact of the fuel price hike, Banerjee said that it has an obvious impact because it is ultimately the total cost of ownership which gets impacted, and the impact on small cars is more. However, he said that with the running cost of CNG much less than petrol, Maruti Suzuki increased supplies of the CNG variants of its models in the market when petrol prices were hiked. As a result, in Q1 FY27, the company clocked its highest ever quarterly CNG sales at 218,213 units.

Among other major players, Tata Motors reported a 67% domestic PV sales growth in June at 62,076 units, as compared to 37,083 units registered in the year-ago period. Another homegrown major player, Mahindra, reported a 28% rise in its domestic PV sales at 60,393 units in June, as compared to 47,306 units in June 2025.

Hyundai records nearly 10% YoY domestic sales decline

Hyundai, a major player in the Indian passenger vehicle market with its SUVs and small cars, reported domestic sales of 39,635 units. This marked a 9.96% YoY decline in the company's domestic sales number, as it recorded 44,024 units in the corresponding month a year ago.

The automaker's Managing Director & CEO, Tarun Garg, said that the company faced a production loss of 13,900 units owing to a fire incident at one of its suppliers' manufacturing facilities, which led to a temporary disruption in production. However, with the production operations across its manufacturing facilities returning to normal on June 22, Hyundai expects to recover the lost volume in Q2 FY27.

Toyota, Kia, MG, Nissan clock domestic sales uptick

Toyota reported an 8% rise in its domestic sales at 28,441 units in June, as compared to 26,453 units sold in the same month last year. The high demand for utility vehicles continued to fuel Toyota's sales, with the company selling some key models like Fortuner, Innova Crysta, etc.

Kia reported its highest-ever June sales since inception last month, with its wholesale numbers reaching 24,552 units, up by 19% from 20,625 units sold in the same month last year.

Nissan also reported a massive 129% YoY growth in its domestic wholesales at 3,006 units in June 2026.

JSW MG Motor India reported a 30% YoY rise in wholesales at 7,568 units in June, clocking its best-ever monthly sales. The rising demand for electric cars continued to drive their growth momentum. The electric cars, like the Windsor EV and Comet EV, contributed over 75% of MG's total sales.

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