India auto sales accelerate in August as major automakers post growth

MUMBAI: India’s auto market put its foot down in August, with sales picking up speed across motorcycles, passenger vehicles, commercial vehicles and tractors, while exports and electric vehicles added further momentum.

Royal Enfield reported an 11 per cent year-on-year rise in total sales to 1.26 lakh motorcycles in August. Exports grew 10 per cent, pointing to continued demand in overseas markets alongside its domestic business.

Bajaj Auto delivered one of the strongest performances, with total sales climbing 28 per cent to 5.36 lakh units. Exports were the standout, surging 51 per cent and making international markets a major contributor to its monthly volumes.

Passenger vehicles also stayed in the fast lane. Tata Motors reported a 59 per cent increase in domestic sales, while its electric vehicle sales nearly doubled during the month, highlighting the growing contribution of EVs as manufacturers expand their electric portfolios.

JSW MG Motor India posted a 14 per cent increase in sales and began dispatches of its Hector Tomahawk EV, adding another electric model as competition in the country’s EV market continues to intensify.

The commercial vehicle segment delivered some of the sharpest gains. SML Mahindra reported a 40 per cent increase in August sales, supported by growth across both its cargo and passenger vehicle businesses.

Ashok Leyland recorded a 38 per cent jump in sales, ahead of market expectations. However, its strong operational performance did not translate into a stock-market rally, with shares falling around 4 per cent, underscoring the gap that can emerge between sales momentum and investor expectations.

The tractor market also shifted up a gear, with Escorts Kubota selling 19 per cent more units in August than in July. Its shares gained following the sales update.

Taken together, the numbers point to growth that is broad rather than concentrated in one corner of the automobile market. Two-wheelers posted healthy volumes, passenger vehicles remained resilient and commercial vehicles recorded some of the strongest percentage increases.

Exports were another important growth engine. Bajaj Auto’s 51 per cent increase and Royal Enfield’s 10 per cent rise show how overseas demand is increasingly contributing to manufacturers’ performance.

Meanwhile, the EV numbers underline another shift underway. Tata Motors’ near-doubling of electric vehicle sales, alongside JSW MG Motor India’s Hector Tomahawk EV dispatches, comes as manufacturers race to expand their electric offerings and capture a larger share of India’s changing mobility market.

For August, at least, India’s auto industry appears to have found several gears at once.