Archive · 24 Sep 2025
Indian Auto Sector Expected to Grow in FY26
The Indian auto industry is expected to grow in the upcoming fiscal year.
Specifically, tractor sales are predicted to increase by 4-7%, and two-wheeler sales by 6-9%.
This growth is because of tax cuts on tractors and the good monsoon season, which helps farmers.
The tractor industry is already seeing strong sales.
Two-wheeler sales are also showing signs of improvement due to rural incomes and recovery.
The new rules about emissions for tractors will start in April 2026.
Analysts predict growth for the Indian auto sector in FY26.
Tractor sales are projected to grow 4-7% in FY26.
Two-wheeler sales are expected to grow 6-9% in FY26.
GST rate cuts on tractors are likely to aid demand.
Wholesale volumes of tractors rose 28.2% YoY in August 2025.
- Who
- Indian auto sector
- What
- Growth forecast
- When
- FY26
- Where
- India
- Why
- Supported by GST cuts, monsoon, and rural incomes
- Tractor Growth Forecast
- 4-7% in FY26
- Two-Wheeler Growth Forecast
- 6-9% in FY26
- Driving Factors
- GST cuts, above-normal monsoon, and rural incomes
- August 2025 Wholesale Tractor Growth
- 28.2% YoY
- August 2025 Retail Tractor Growth
- 30.1% YoY
- August 2025 Two-Wheeler Wholesale Growth
- 7.2% YoY
- August 2025 Two-Wheeler Retail Growth
- 2.2% YoY
- TREM V Emission Norms
- Effective April 1, 2026
Sources
Premium car sales to remain strong, but GST cuts will revive below-₹10-lakh category, says JPMorgan’s Amyn Pirani
Auto Giants Kick Off Navratri With Record Sales, Tata Motors Delivers 10,000 Cars As GST Cut Drives Festive Demand
GST new rates 2025: How much Maruti, Hyundai sales increased amid Navratri
GST cut impact? Tata Motors sells 10k cars, Maruti, Hyundai sales soar on first day of Navratri amid reduced prices
Apparel makers not hiking prices on premium products despite higher GST, absorbing full or partial impact
Pharma sales may rise after GST cuts, but margin pressure could challenge companies
Tractor sales to grow 4-7% in FY26: Report
