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Informist, Tuesday, Sept. 1, 2026

 

NEW DELHI – Indian automobile companies are confident that the recent sales growth momentum, spurred by the cut in goods and services tax, will continue in the coming months, with sales expected to grow year-on-year despite a high base, top company executives across two-wheeler, passenger, and commercial vehicles said at the 8th Auto Retail Conclave hosted by the Federation of Automobile Dealers Associations Tuesday. 

 

TVS Motor Co. Ltd. expects the two-wheeler industry's growth rate to slow a tad year-on-year, but believes the overall structure is in place to support respectable growth. "We may not see the double-digit growth we have seen so far, but will definitely see high single-digit growth... overall euphoria will help us," Gaurav Gupta, president of India two-wheeler business of TVS Motor, said. 

 

Gupta expects new product launches, policy measures such as the GST cut and stable interest rates, sustained consumer sentiment, and a less-than-expected impact from the monsoon to help sustain growth momentum.

   

According to a top Hero MotoCorp Ltd. official, growth in the two-wheeler industry is continuing as expected even as they foresee a high base effect kicking in going forward. "GST on entire basket of offerings has come down, that has had a cascading impact (on two-wheeler sales)," Ashutosh Varma, chief business officer of Hero MotoCorp's India business unit, said.

 

"Many things are working in the industry's favour, and that should continue. Overall, the industry looks in a very solid shape," Varma said.

 

COMMERCIAL VEHICLES 

The overall consumption push created by the GST cut has helped commercial vehicle sales in recent months. Executives expect this high growth rate to moderate, but demand should continue.

 

"There will be a base effect, but people don't buy commercial vehicles just for sentiment. Maybe they postpone, but they buy for commercial reasons," said S.S. Gill, chief commercial officer of VE Commercial Vehicles Ltd. VE Commercial Vehicles is a joint venture between Eicher Motors Ltd. and Sweden's Volvo Group.

 

"Replacement demand is up. September-October are festive seasons. There are many positives which can be seen going forward," Gill said. "(it) is to be quite positive. Maybe a little lower than seen now, but it will definitely touch double-digit in H2 (Oct-Mar) even with a high base," Gill said. 

 

A senior official of Ashok Leyland Ltd. echoed the sentiment. "Fundamentally, demand is good. We may talk of high base effect, but the industry has seen high growth rates by high falls (in the past)," said Viplav Shah, head of Ashok Leyland light commercial vehicles business. 

 

He expects sales of small and light commercial vehicles to continue on a strong footing, as they are purely consumption-driven and trends have been positive. Growth in medium and heavy commercial vehicles may also continue, as government infrastructure projects and fleet modernisation programmes continue to give companies confidence.  End

 

Reported by Anand JC

Edited by Saji George Titus

 

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