Car sales are likely to have grown by a whopping 33% in July 2026 to nearly 4.7 lakh units, despite a sharp rise in fuel prices and multiple price hikes initiated by automakers in the backdrop of geopolitical tensions in West Asia which have disrupted the supply chain and led to an increase in raw material costs.
India’s auto industry has been in a strong bull phase since the reduction of the GST rate in late September 2025. Income tax benefit and repo rate cut have further lifted sentiments, said Partho Banerjee, Senior Executive Officer, Marketing & Sales at Maruti Suzuki India (MSIL).
While Banerjee accepts that fuel and car price hikes do have an impact on demand, especially in the price-sensitive entry-level segment, much of this has been offset by the growing acceptance of CNG-powered vehicles. For Maruti, CNG vehicle sales grew by 50% year-on-year last month.
The country’s largest carmaker reported a 34% rise in total sales to 2,41,421 units in July, compared with 1,80,526 units in the corresponding month last year.
MSIL’s domestic PV sales surged 43% to a record 1,96,203 units, while total domestic sales, including light commercial vehicles, touched an all-time high of 2,00,123 units. Banerjee stated that they have a backlog of about 1.20 lakh CNG vehicles and the newly launched Brezza is clocking daily bookings of 2,000 units.
Hyundai Motor India Limited (HMIL) reported its highest-ever monthly total sales (domestic plus exports) of 75,360 units in July 2026 with a robust YoY growth of 25.4%. This figure includes monthly domestic sales of 54,210 units (+23.3% YoY) and exports of 21,150 units (+31.4% YoY).
Tarun Garg, MD & CEO - HMIL, said, “We have kicked off the new quarter on a strong note. Achieving 75,360 total sales (domestic + exports; up 25.4% YoY), our highest-ever monthly volume since inception, underscores the immense trust consumers place in brand Hyundai.“
Tata Motors Passenger Vehicles recorded sales of 63,760 units in the domestic and international markets in July 2026, compared to 40,175 units in July 2025, representing a robust growth of 59% year-on-year. Tata Motors’ EV sales grew by 114% to 15,217 in July 2026. SUV major Mahindra & Mahindra sold 60,048 vehicles in the domestic market, a growth of 20% and overall, 60,887 vehicles, including exports.