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Auto dispatches for Jul’26 continued the strong momentum with sustained retail demand, improving supply chain, and reduction in rainfall deficit that lifted rural sentiments. PVs reported growth in 30s, while 2Ws saw sustained growth with e-2Ws reporting continued surge in demand. PV inventory remained slightly higher at ~33 days at the end of Jun’26 vs. ~32/29 days at the end of May’26/Apr’26, and with the numbers reported so far, it seems to have inched further up at the end of Jul’26, even before the festive build-up starts. CV industry reported broadly strong performance from accelerating fleet replacement despite cost pressures. MHCV trucks were driven by infra-activities, government’s capex push and improved freight demand, while ILMCVs benefited from e-com and last-mile mobility demand. However, MHCV buses saw some moderation. Signs of recovery in monsoon (although the pattern remains mixed across regions) and acceleration in kharif sowing provided a fillip to rural sentiments. Tractors remained on strong growth trajectory, although there was a significant decline on MoM basis. While underlying rural fundamentals remain resilient, the progression of monsoon, kharif crop activities, delayed festive season in Q3 this year, ongoing input cost pressures, and an elevated base remain key monitorables.

OEM-wise highlights

Mahindra & Mahindra: Strong growth sustained across all segments. T&B sector well positioned for sustained growth going forward

Overall group sales grew +24.1% YoY to 141.3k units. Total auto division sales grew +25.8% YoY (excl. T&B) to 103.9k units; domestic UVs, +20.4% YoY (60.0k units); and LCVs, +23.2% (25.2k units). 3Ws continued their strong growth trajectory (+53.4% YoY) to reach 14.5k units. Auto exports grew +46.7% YoY to 4.1k units. Tractor volumes increased by +19.9% YoY to 34.4k units (domestic: +20.9%, exports: +3.4%), driven by significant recovery in rainfall, improved reservoir levels and accelerated kharif sowing aided by government support, although domestic volumes declined by 43.9% MoM. Total T&B division sales (CV > 3.5T, incl. SML) grew +18.7% YoY to 3.0k units. YTD FY27 YoY: overall: +21.8% (609.2k units); UVs: +16.3% (234.8k units), LCVs (<3.5T): +20.6%; 3Ws: +69.1%; auto exports: +60.5%; T&Bs: +12.9%; tractors (incl exports): +18.2%

Maruti Suzuki: Very strong domestic sales (its highest-ever monthly) across segments (although on a weak base) to fulfil order backlog, exports moderate

Overall, 241.4k units sold (+33.7% YoY). Total domestic sales (incl. sales to other OEMs) increased +42.1% YoY (207.4k units); exports declined to 30.1k units (-5.3% YoY). Domestic passenger cars increased to 103.5k units (+42.4%), and UVs, +49.4% YoY (78.9k units). LCVs (super carry) grew by +40.3% to 3.9k units. SUVs accounted for 40.2% (+190bps YoY, -175bps MoM) of total domestic PV sales. Export penetration stood at 12.4% of the overall portfolio (-510bps YoY, -890bps MoM). Overall production volumes for Jul’26 indicate stronger growth in the SUV segment. YTD FY27 YoY: overall: +30.5% (924.2k units), domestic PV: +33.0%, domestic LCV: +19.4%, exports: +20.3% 

Tata Motors PV: Domestic sales (incl. EVs) continue to surge, although on a low base

PV sales grew +58.7% YoY to 63.8k units. Domestic sales rose +58.4% to 62.6k units, while exports surged +75.7%. Total EV sales reached 15.2k units (+113.6% YoY, +2.8% MoM) with 23.9% penetration (+615bps YoY, +40bps MoM). YTD FY27 YoY: total PVs: +49.3% (246.3k units), domestic +48.6% (242.8k units), exports: +119.0%, EVs: +112.7% with penetration at 20.2%

Hyundai Motor India: Strong domestic volumes from order backlog. Exports bounce back (after 4 consecutive months of decline) recording highest-ever monthly volume in last 100 months

Overall volumes grew +25.4% YoY to 75.4k units. Domestic sales rose +23.3% YoY (54.2k units). Exports (which is the management’s focus) surged by +31.4% YoY (28.1% penetration). YTD FY27 YoY: overall: +5.4% (253.4k units), domestic: +9.8%, exports: -6.8%

Bajaj Auto: Strong exports growth continues, domestic sales post decent growth (although on a low base)

Overall sales grew +29.7% YoY to 474.7k units. 2W volumes rose +31.2% YoY to 388.7k units: domestic volumes grew +19.0% (165.8k units) and exports surged by +42.0% YoY (223.0k units). CV volumes grew +23.2% YoY to 86.0k units with domestic growth at +24.1% YoY. YTD FY27 YoY: overall sales: +29.5% (1.91mn units), domestic: +13.2%, exports: +49.7%, 2Ws: +29.4% (domestic: +12.5%, exports: +49.0%), CVs: +29.9% (domestic: +16.5%, exports: +54.1%)

Eicher Motors:

• Royal Enfield: Higher-than-industry growth continues, with 350cc+ segment and IB returning back to growth

The management feels it is well positioned to sustain the momentum. Overall volumes increased by +34.3% YoY (118.2k units), with strong domestic sales growth of +38.1% (105.3k units), while international business (IB) grew (+9.5% YoY). Sub-350cc models grew +38.1% YoY (105.1k units), while 350cc+ models increased by +9.9% YoY. YTD FY27 YoY: overall: +26.9% (448.7k units), sub-350cc: +31.7% (399.7k units), 350cc+: - 2.2%, domestic: +33.3% (406.5k units), IB: -13.1%

• VECV: Strong, sustained trucks growth, partially offset by decline in domestic bus and in exports

Overall volumes grew by +15.8% YoY to 8.2k units. Domestic HD trucks/SCVs led the growth (LMD < 18.5T: +28.9% at 4.4k units, HD ≥ 18.5T: +13.2%), domestic LMD bus flattish YoY at 1.1k units, while HD bus declined -25.5%. Exports de-grew -11.3%, while Volvo T&B grew by +12.0% YoY. YTD FY27 YoY: overall: +15.1% (33.1k units), domestic: +16.0%, exports: -2.3%, Volvo T&B: +29.7%

Hero MotoCorp: Sustained domestic growth on a low base, exports moderate

Overall volumes increased +18.6% YoY to 533.4k units. Domestic volumes grew +21.6% (501.4k units), while exports declined -14.3% YoY. Total motorcycle sales grew +17.0% YoY to 468.6k units. Scooter sales kept surging (+32.0% YoY). Its domestic ICE volumes grew +19.3% YoY and e-2W VIDA VOOM dispatched 22.7k units. YTD FY27 YoY: overall: +21.7% (2.21mn units), motorcycles: +16.6% (1.95mn units), scooters: +81.2% YoY, domestic: +20.9% (2.07mn units), exports: +34.8% (6.2% penetration)

TVS Motor: Strong sales growth sustained across the portfolio

Overall volumes increased +38.0% YoY to 630.0k units. 2Ws grew +37.5% YoY to 603.1k units (domestic: +41.7%, exports: +27.4%). EV sales surged by +158.1% YoY (+25.5% MoM) to 60.9k units. 3W sales increased by +51.1% YoY (26.5k units) with contribution from both domestic and export sales. YTD FY27 YoY: overall: +30.4% (2.26mn units), group total domestic: +29.8% (1.61mn units), exports: +31.9% 

Ashok Leyland: Significant growth in truck and LCV sales, moderate in domestic MHCVs and decline in MHCV bus exports

Overall volumes grew by +30.0% YoY to 19.6k units. Domestic volumes increased by +33.2% YoY (18.0k units), with MHCV trucks increasing by +43.0%, MHCV bus was up by +6.1%, while LCVs grew +29.4% YoY. Exports rose +3.0% YoY. YTD FY27 YoY: overall: +15.3% (68.4k units), domestic: +17.5%, exports: -11.0%, overall MHCV trucks: +24.8%, MHCV bus: -24.8%, LCVs: +22.8%

Tata Motors CV: Strong momentum sustained across sub-segments. Exports surge for 2nd consecutive month

Overall sales grew +36.9% YoY to 39.6k units (double-digit growth across all sub-segments). Domestic sales increased +28.2% YoY (33.9k units), while exports surged by +128.4% YoY. MH&ICV grew +19.7% YoY (domestic: +24.7% YoY). YTD FY27 YoY: overall +29.3% (148.1k units), domestic: +26.6%, exports: +62.5%

Escorts Kubota: Strong domestic tractor sales continue. Surge in CE on a weak base, with supportive near-term outlook, although geopolitical risks persist

Tractors continued upward trajectory (+22.0% YoY to 8.7k units) with domestic sales growing +23.7% YoY to 8.2k units (down 37.8% MoM). Rural fundamentals remain positive. YTD FY27 YoY: tractors: +20.8%, domestic: +23.1% (43.7k units). For Construction Equipment (CE), growth of +49.2% YoY was due to a low base and infra execution/ project pipelines, government capex, and increasing export opportunities. YTD FY27 YoY: CE: +32.9% (1.9k units)

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