Robust Growth Anticipated in Indian Automobile Sales

Passenger vehicle sales in India are projected to grow significantly in February, driven by improved affordability, new product launches, and favorable financing conditions, according to Nuvama's report. As customer sentiment strengthens, the two-wheeler segment is expected to see robust growth, with strong exports contributing to overall sales momentum.

According to a recent report by Nuvama, sales of passenger vehicles in India are expected to experience significant growth in February, with domestic volumes predicted to rise by over 10% year-on-year. This surge is attributed to better affordability, the introduction of new products, and abundant financing options.

The report highlights that positive consumer sentiment and favorable market conditions are bolstering demand in the passenger vehicle segment. Automobile wholesale figures for February 2026 are anticipated to remain strong, with projections indicating double-digit year-on-year growth across various segments.

The study notes promising growth in the two-wheeler industry, foreseeing a rise of over 30% year-on-year in domestic volumes, driven by improving affordability, customer sentiment, and heightened demand during the marriage season. Two-wheeler exports are also expected to show double-digit increases, fueled by demand from Asia, Africa, and Latin America.

The report underscores that exports across all automobile segments are likely to maintain positive growth, contributing to the overall sales momentum. Nuvama holds an optimistic view for the sector, forecasting a continuation of this growth trend through FY26-28E due to robust domestic demand, export opportunities, and supportive market conditions.