DRIVING TRENDS. In FY26, growth in the Indian auto sector increasingly flowed to companies with strong brands and richer product mixes
TVS Motor, Maruti Suzuki, Tata Motors and Mahindra & Mahindra grew between 15 per cent and 30 per cent in FY26, far outpacing India’s auto industry growth of 10.4 per cent and emerging the year’s biggest winners across the two-wheeler, passenger vehicle, commercial vehicle and tractor segments. TVS rode premium motorcycles, electric scooters and exports to 30 per cent growth, Mahindra’s SUV and tractor franchises powered a similar rise, Maruti benefited from SUV demand and record exports, while Tata gained from both sale of electric passenger vehicles and a recovery in commercial vehicle sales.
India’s auto industry sold a record 2.83 crore vehicles in FY26, but beneath the headline numbers a more important trend emerged: growth increasingly flowed to companies with strong brands, richer product mixes and leadership positions in their segments.
The SUV and EV push
Passenger vehicles offered the clearest evidence of the shift. Industry wholesales grew 7.9 per cent to 46.4 lakh units, yet Mahindra & Mahindra’s automotive business expanded 30 per cent, driven by a strong demand for SUVs such as the Scorpio, Thar and the XUV range. The company strengthened its position as India’s leading SUV player, benefiting from consumers’ willingness to move up the value chain.
Maruti Suzuki, too, bested the market with 20.2 per cent revenue growth, as its SUV push gained traction. Exports rose 34.6 per cent to 4.48 lakh units, giving the company nearly half of India’s passenger vehicle export market. The pending order book of about 1.9 lakh vehicles tells its own story.
Similarly, Tata Motors’ passenger vehicle business grew faster than the market, supported by rising EV adoption and a broader portfolio of utility vehicles. EV volumes grew more than 43 per cent, helping the company retain leadership in India’s electric passenger vehicle segment.
The contrast came from Hyundai Motor India, whose revenue grew just 2.3 per cent, underscoring the difficulty in competing in a market increasingly dominated by SUVs and premium products.
TVS steals a march
The two-wheeler industry grew 10.7 per cent in FY26, crossing 2.17 crore units, but TVS Motor emerged one of the sector’s biggest winners with 30 per cent revenue growth. Unlike many rivals, TVS expanded across all three of its major growth engines simultaneously. Exports rose 31 per cent, electric scooter volumes increased 33 per cent, and domestic sales remained robust, making it the only major two-wheeler manufacturer to post broad-based growth across domestic, international and EV businesses.
Hero MotoCorp and Bajaj Auto also outperformed the market, benefiting from premium motorcycles and export demand.
The numbers suggest India’s two-wheeler industry is increasingly driven by higher-value products than commuter motorcycles alone.
The gains came partly at the expense of rivals. Ola Electric’s sharp decline in volumes and revenue allowed established players such as TVS and Bajaj to strengthen their positions in the fast-growing electric scooter market.
The CV recovery
Commercial vehicles followed a different script. Industry volumes rose 12.6 per cent, supported by infrastructure spending, freight movement and fleet replacement demand.
Tata Motors remained the market leader, while Ashok Leyland reported record revenue as truck demand improved. Unlike in the case of passenger vehicles and two-wheelers, revenue growth broadly tracked volume growth in the truck segment, suggesting this was primarily a cyclical recovery rather than a premiumisation story.
For Tata Motors, the commercial vehicle rebound provided a second growth pillar alongside its passenger vehicle and EV businesses.
Mahindra’s dominance
The tractor industry crossed 11 lakh units for the first time, with volumes rising 23.5 per cent on strong rural demand and favourable farm conditions.
Mahindra strengthened its status as FY26’s most diversified winner. Alongside its 30 per cent automotive growth, the company remained the market leader in tractors and light commercial vehicles below 3.5 tonnes. Farm equipment revenue rose 20 per cent, giving Mahindra leadership positions across urban and rural mobility markets.
The tractor story again differed from that of passenger vehicles and two-wheelers. Growth was driven primarily by rural demand, supportive policies and strong farm economics rather than premiumisation. Even so, Mahindra emerged as the segment’s biggest beneficiary.
FY26’s bigger lesson
FY26 was not merely a record year for India’s auto industry. It was also a year in which growth became increasingly concentrated among category leaders. SUVs powered passenger vehicles, premium motorcycles and exports lifted two-wheelers, freight recovery boosted commercial vehicles, and rural demand supported tractors.
Together, these trends helped TVS Motor, Maruti Suzuki, Tata Motors and Mahindra & Mahindra grow significantly faster than the industry’s 10.4 per cent pace, widening the gap between the market leaders and the rest.
As FY27 rolls on, the industry’s biggest question is no longer whether demand will grow, but which manufacturers can continue to outgrow the market itself.
Published on June 22, 2026
