India's passenger vehicle sales surged by an estimated 35 to 36% year-on-year in August 2026 to approximately 4.5 lakh units, driven by strong domestic demand across major manufacturers. Commercial vehicle and two-wheeler segments also registered significant growth during the month, according to individual company sales reports.
Maruti Suzuki India Limited reported total sales of 219,220 units in August 2026, representing a 21.3% year-on-year increase from 180,683 units in August 2025. Maruti Suzuki's domestic passenger vehicle sales grew 34.8% year-on-year to 176,971 units, with utility vehicle sales rising 46.3% and passenger car sales increasing 29.4%, per company data.
Tata Motors retained second place in domestic passenger vehicle sales, recording 65,253 units in August 2026, a 59% year-on-year increase from 41,001 units in August 2025. Tata Motors electric vehicle sales, covering domestic and international volumes, nearly doubled to 16,549 units in August 2026, up 93.78% from 8,540 units in August 2025.
Mahindra and Hyundai Record Growth
Mahindra and Mahindra reported that its domestic utility vehicle sales jumped 50% year-on-year to 59,257 units in August 2026, contributing to a 42% overall vehicle sales growth including exports to reach 107,648 units. Velusamy R, President of Automotive Business at Mahindra and Mahindra, stated that demand continues to remain strong across the portfolio, with the updated Scorpio-N and BE 6 SPORTEQ receiving strong market response from customers, adding that the company looks forward to building on this momentum during the festive season.
Hyundai Motor India Ltd. reported its highest-ever domestic sales for any August, with 54,396 units sold, a 23.6% year-on-year increase. Tarun Garg, MD and CEO of Hyundai Motor India Ltd., stated that the August 2026 domestic sales figure reflects the popularity of the company's product range.
Commercial vehicle sales also showed strong growth, with Tata Motors reporting a 49% increase in total commercial vehicle sales to 44,411 units in August 2026. Mahindra reported domestic commercial vehicle sales grew 22% to 27,415 units in the same month.
Two-Wheeler Sector Performance and Hero MotoCorp Shortfall
In the two-wheeler sector, TVS Motor Company total sales grew 21% year-on-year to 591,437 units in August 2026, with domestic sales up 18% to 433,796 units. TVS Motor electric two-wheeler sales saw exponential growth of 137% year-on-year, reaching 59,453 units.
Hero MotoCorp remained the largest player in the domestic two-wheeler market with 542,305 units sold, but reported a modest 2.64% year-on-year increase in total dispatches to 568,398 units, missing street expectations of 590,000 units by approximately 3.66%. Hero MotoCorp motorcycle dispatches fell 2% year-on-year to 493,851 units, while scooter dispatches jumped 42.8% year-on-year to 74,547 units. Hero MotoCorp exports saw a significant decline of 24.6% year-on-year to 26,093 units in August 2026, reflecting weakness in its international business.
The robust growth in passenger vehicle sales is partly attributed to a low base effect from August 2025, when demand was affected by a potential GST cut announcement, according to comparative market assessments. Maruti Suzuki's achievement of crossing one million cumulative sales within the first five months of fiscal year 2027 from April to August 2026 marked a significant milestone, with total sales up 28.60% compared to the same period last year.
Indian auto manufacturers and their supply chains benefit from sustained strong demand, particularly in the passenger vehicle and electric two-wheeler segments, leading to increased production. Consumers benefit from a wider range of vehicle options, especially in the electric vehicle segment as companies expand their electric portfolios.
