India's automotive retail sales see 28.6 pc growth in July so far: Report

New Delhi, July 24 (IANS): India's automotive retail sales rose 28.6 per cent year‑on‑year in July 1–23, with all segments expanding compared with the same period last year, a report said on Friday.

The report from Choice Institutional Equities said two‑wheeler sales grew 31 per cent YoY, while passenger vehicle sales rose 20.6 per cent YoY, driven by strong demand in the SUV and passenger car segments.

Commercial vehicle sales recorded 27.3 per cent YoY growth, while three‑wheeler sales grew 18.1 per cent.

The tractor segment was up 36.8 per cent YoY, the report added.

"Overall, we expect the industry to report strong growth in July 2026, supported by a low base in July 2025, steady consumer sentiment, recent model launches, strong EV adoption, softer interest rates and improved affordability following GST rationalisation," the report said.

It added that outlook for subsequent months is positive supported by strong demand, lower base for August–September 2026 and the festival-led demand support in the second half of Q2FY27.

The firm noted that historically, for July, the last eight days have accounted for roughly 25–28 per cent of the month’s volume.

India’s auto and auto ancillaries sector is expected to see operating revenue to grow by around 8 per cent in FY27, another recent report said.

The report from Brickwork Ratings said the sector is entering a new investment cycle with Rs 703 billion of projects scheduled for commissioning between FY27 and FY29.

The investments are supported by a pipeline of 184 projects worth Rs 4.76 trillion and 70 projects already under implementation.

The investment momentum is backed by Production Linked Incentive schemes, FAME III incentives and sustained capacity expansion by original equipment manufacturers and Tier I suppliers.