Festive inventory lift may give way to slower auto-sales growth, JM Financial says
JM Financial expects festive inventory build-up to support Indian auto wholesale volumes before growth normalises against a high base. SUVs remain the main passenger-vehicle growth driver, while premium motorcycles outperform; West Asia-linked inflation and higher input costs remain key risks.
What happened
Indian automobile sector · JM Financial expects festive inventory build-up to support Indian auto wholesale volumes before growth normalises against a high
Key facts
- Passenger vehicle volumes: +37% YoY in August 2026
- Passenger vehicle volumes: +30% in first five months of FY27
- Utility vehicle volumes: +46% YoY in August
- Utility vehicle share: about 69%, versus about 65% a year earlier
- Domestic ICE two-wheeler sales: +5% YoY in August
- FY27 YTD two-wheeler sales: +14%
- 150-250cc motorcycle sales: +28% YoY in FY27 so far
- >250cc motorcycle sales: +34% YoY in FY27 so far
- Sub-125cc motorcycle sales: about +6%
Why this matters
Focus partnership and acquisition scouting on SUV-adjacent and premium two-wheeler capabilities, where demand is structurally outperforming entry-level segments.