India’s Auto Sector Shifts Gears: July 2026 Trends and Insights | autoverse.cc
In July 2026, India’s automotive industry recorded a 12% year-on-year increase in domestic sales, driven by strong demand for SUVs and electric vehicles. The Society of Indian Automobile Manufacturers (SIAM) reported that passenger vehicle sales crossed 3.5 lakh units, with Maruti Suzuki and Hyundai leading the chart. Meanwhile, EV registrations surged by 18%, thanks to expanded charging infrastructure and new model launches from Tata Motors and Ola Electric.
However, the sector faces headwinds from rising input costs and global semiconductor shortages, which have forced automakers like Mahindra & Mahindra to temporarily halt production of select models. Analysts predict a cautious outlook for the festive season, with inventory levels at a six-month high.
| Segment | Sales (Units, July 2026) | YoY Change |
|---|---|---|
| Passenger Vehicles | 3,52,000 | +12% |
| Electric Vehicles | 48,000 | +18% |
| Two-Wheelers | 12,85,000 | +8% |
| Commercial Vehicles | 1,02,000 | +5% |
“India is on the cusp of an EV revolution, but we need consistent policy support and localised supply chains to sustain this momentum,” said Rajesh Gupta, Director at AutoVerse Consulting.