Archive · 25 Jul 2025
Motilal Oswal Predicts Slow Growth for Indian Automakers in FY26
Imagine the car and bike market is like a race, but it's slowing down.
A report says the Indian auto industry won't grow much in the next year.
Some types of vehicles, like cars and bikes, are not selling as well as before.
Specifically, sales of cars and two-wheelers have decreased.
However, one company's boss thinks that SUVs will still do great.
So, some parts of the market are slowing down, while others might still speed up!
Motilal Oswal predicts subdued growth for the Indian auto industry in FY26.
Passenger vehicle sales declined by 1.4% due to weak demand.
Two-wheeler ICE sales volume saw an 8% decrease.
The small car segment witnessed significant volume declines across different models.
MM Automotive Division's CEO, Nalinikant Gollagunta, anticipates mid to high teens growth in SUVs.
- Who
- Motilal Oswal released the report; Nalinikant Gollagunta, CEO of MM Automotive Division, also provided insights.
- What
- The Indian auto industry is expected to experience slow growth in FY26, according to a report by Motilal Oswal.
- When
- The report covers the FY26 period, with data also referencing Q1 FY26.
- Where
- The focus is on the Indian auto industry.
- Why
- The report analyzes the auto industry's growth prospects, highlighting current demand weakness and segment-specific performance.
Motilal Oswal Report
MM Automotive Division
Overall Growth Expectations
Motilal Oswal Report
Forecasts subdued growth of 6-7% for the Indian auto industry in FY26.
MM Automotive Division
Nalinikant Gollagunta expects mid to high teens growth in SUVs and strong double digit growth in exports.
- FY26 Growth Forecast
- 6-7%
- Passenger Vehicle Decline (Q1)
- 1.4%
- Two-Wheeler ICE Decline (Q1)
- 8%
- Motorcycle Sales Decline (YoY)
- 9%
- Alto Decline (Q1)
- 36%
- SUV growth
- Mid to high teens (expected)