Auto wholesales likely to stay strong in July on PV, CV demand: Nuvama

New Delhi: Domestic automobile wholesales are expected to sustain their upward trajectory in July 2026, with passenger vehicle (PV) and commercial vehicle (CV) volumes likely to expand by over 20 per cent year-on-year (YoY), according to a report by Nuvama.

The PV segment is anticipated to register robust double-digit growth, expanding by over 25 per cent YoY in the domestic market during July 2026.

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Simultaneously, CV industry volumes are projected to post double-digit expansion exceeding 20 per cent YoY in the domestic market for the month.

Industry demand continues to receive support from improved affordability, new product introductions, and adequate financing availability across retail channels.

Detailing the near-term momentum across primary categories, the Nuvama report stated, "2Ws and tractors are anticipated to report growth of over 10%. Meanwhile, exports growth is likely to remain positive for most OEMs, supported by growth across Africa, Latin America and Asia regions."

In the two-wheeler (2W) sector, volumes are also set to expand in double digits, recording over 15 per cent YoY growth domestically in July 2026. This trajectory is underpinned by "enhanced affordability, marriage season demand, and adequate financing availability."

Furthermore, positive export growth for mass-market original equipment manufacturers is expected to continue, driven by expanding sales across Africa, Latin America, and Asia.

The tractor segment is projected to continue its upward trajectory in July 2026, with domestic volume growth exceeding 10 per cent YoY. This momentum stems from "improved affordability, enhanced rural liquidity, and credit availability." However, terms of trade within the sector remain adverse, largely on account of fuel inflation.

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Addressing the key variable for rural demand going forward, the report noted, "Going forward, rainfall coverage and spread would be a key monitorables for farmer sentiments and tractor demand."

Looking at the medium-term outlook spanning FY26 to FY28, the report highlights stronger growth prospects for personal transport segments compared to commercial and agricultural machinery. Domestic PVs and 2Ws are expected to achieve compound annual growth rates (CAGR) of 11 per cent and 7 per cent, respectively.

Conversely, growth is projected to remain moderate for medium and heavy commercial vehicles (MHCVs) as well as tractors.