Auto sector demand in India weak across segments except tractors: Report

New Delhi [India]August 18 (Memorial): According to a report by Motilal Oswal Financial Services, the automobile sector witnessed a silent performance with demand expectations in most segments, except for tractors in the first quarter of 26 financial years.

In the report, except for tractors, domestic volumes for the automatic segment have fallen by 6 % (YOY) annually. The weakness in urban demand was the key factor behind the low performance managed by two -wheeled vehicles.

“It delayed demand expectations in most sectors, except tractors,” he said.

The 2W segment decreased by 8 percent in the first quarter of the 26 -existing fiscal years, both passenger vehicles (PV) and commercial vehicles (CVS) each fell by 1 percent.

Three -wheeled volumes remained flat in the quarter. On the other hand, tractors stood out with a 9 percent healthy growth.

In the 2W category, the report emphasized that motorcycles fell by 9 percent, while Scooters decreased by 5 percent. > Apart from 250cc motorcycles, all other segments have recorded lower volumes.

PVs, while automobile volumes decreased by 11 percent, benefit vehicles (UV), 4 percent growth by showing a growth of total PV volumes in the quarter to 66 percent increased.

For CVS, the medium and heavy commercial vehicle (MHCV) goods segment decreased by 4.5 percent and light commercial vehicle (LCV) goods segment decreased by 1 percent. Only the bus segment increased by 8 percent.

On the financial front, the operational performance within the scope of the Motilal Oswal universe was largely compatible with expectations. The total income for the sector grew by 4 percent due to a growth of 3 percent in OEMs and 6 percent growth on the automobiles.

When we look forward, the industrial organ foresees the growth of 2W of PVs in 2-4 percent of PVs, CVs in the middle single steps and 26 FY 26 in high single steps. Tractor OEMs expect high -digit growth supported by rural emotions. However, so far performance is below expectations.

After the first four months of FY26, 2W fell 4 percent, PVs fell by 1 percent and CVs remained flat, while the tractors remained in compliance with estimates.

Increased input cost inflation may focus on margins, while export -oriented assistants may face demand uncertainties due to tariffs. (MOMENT)