Maruti, Tata Motors PV, M&M drive robust June sales; analysts see domestic demand holding up

Passenger vehicle sales in the country are estimated to have grown nearly 25% in June to about 4 lakh units, led by the likes of Maruti Suzuki, Tata Motors PV and Mahindra & Mahindra, amid concerns over the impact of the West Asia war on vehicle and fuel prices, and deficient monsoon on demand going forward.

The tailwinds of GST 2.0, income tax relief on income of up to ₹12 lakh and repo rate cuts by the Reserve Bank of India (RBI) continue to drive demand in the domestic market, Maruti Suzuki India Senior Executive Officer, Marketing & Sales, Partho Banerjee, told reporters in an interaction.

The total industry sales estimate for June this year is around "4 lakh plus or minus 2,000 or 3,000 (units)", and it was around 3.22 lakh units in June 2025, he added.

"The three tailwinds of GST 2.0, the income tax benefit on up to ₹12 lakh income, and repo rate reduction are still very much there," Banerjee said when asked about the growth drivers of the industry.

Global investment firms gave a thumbs-up to June auto sales data, with analysts at Macquarie, Morgan Stanley, Jefferies, and JPMorgan saying that growth momentum remained strong in June.

Macquarie: Demand momentum remains robust

Macquarie, in a note, said that demand momentum remained strong in June, led by passenger vehicles while two-wheeler sales remained firm. Macquarie noted that June wholesales remained firm while retail volumes confirmed underlying demand. The global investment firm added that the first quarter will be muted for auto companies and focus shifts to the second quarter for margin outlook.

Morgan Stanley: Healthy retail growth across segments

Morgan Stanley said that the retail growth trajectory remained strong in June across passenger vehicles, two-wheelers, commercial vehicles and tractors. It added that electric vehicle penetration continued to improve across segments, and falling commodity costs and healthy volume growth will support margin improvement going ahead.

Jefferies: Strong volume growth continues

Jefferies noted that the Indian auto industry witnessed strong volume growth across segments in June, and it estimated that wholesales for trucks grew 38% annually, 23% for passenger vehicles and 14% for tractors.

JPMorgan: Retail demand broad-based despite wholesale volatility

JPMorgan said retail demand continued to remain broad-based, although wholesale sales were volatile due to company-specific factors.

Among individual companies, the global investment firm said Maruti Suzuki's wholesale performance was largely in line with the industry while its retail sales outperformed. Mahindra & Mahindra's wholesale performance improved, although its retail performance was mixed.

JPMorgan added that Maruti Suzuki and Tata Motors outperformed in passenger vehicle retail sales, while Eicher Motors and TVS Motor delivered stronger-than-industry growth in two-wheeler retail sales. In commercial vehicles, Tata Motors and Mahindra & Mahindra outperformed in the heavy goods vehicle segment.