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Quick Pointers:

* Preference for SUVs/compact SUVs continues to grow

* Demand for 2Ws remains robust aided by improved affordability

Strong momentum in dispatches continued in Feb’26 ahead of festivities, amid ongoing wedding season and positive rural sentiments from robust crop cashflows, with sharper customer engagement and shift toward higher value models. PV growth is being driven by non-metro locations, although small car sales are seeing slower growth. Jan’26 inventory level of 32-34days vs. 37- 39days in Dec’25 indicate healthier channel discipline and efficient working capital. 2Ws remain strong with urban revival, although 350cc+ models see stagnation in volumes. CVs are on an upward trajectory from steady freight movements, fleet modernization, and government investments, with MHCV outpacing LCV growth. Demand for tractors is expected to see a boost in Mar’26 due to Navratri and on account of existing favorable government policies. Near-term challenges include geopolitical tensions, selective supply chain constraints, and aggressive competitive discounting

OEM-wise highlights

Mahindra & Mahindra: Sustained growth across all domestic segments; strong tractor growth continues

Overall group sales grew +21.5% YoY to 134.3k units. Total auto sales increased +18.0% (excl T&B) to 97.2k units, and domestic UVs, +19.0% YoY (60.0k units). Auto exports grew by +10.6% YoY. 3Ws continued strong growth (+43.7% YoY) to reach 9.2k units. Farm equipment volumes increased +33.7% YoY to 34.1k units (domestic: +34.6%, exports: +20.2%) and are expected to see continued growth in Mar’26. Total T&B division sales (CV > 3.5T, incl SML) grew +13.0% YoY to 3.0k units driven by SML passenger vehicles and M&M’s cargo vehicles, with robust outlook amidst geopolitical and other external challenges. FYTD YoY: overall: +20.2%, UVs: +19.2%, LCVs (<3.5T): +13.3%, T&Bs: +20.7%, 3Ws: +29.6%, Auto exports: +21.3%, tractors (incl exports): +23.5%

Maruti Suzuki: Domestic PV sales flat for 2nd consecutive month (weaker than industry); exports surge

Overall, 214.0k units were sold (+7.3% YoY). Total domestic sales (incl sales to other OEMs) were flat YoY at 174.8k units ; exports surged to 39.2k units (+56.5% YoY). Domestic passenger cars declined to 76.6k units (-9.1%), UVs +11.9% YoY to 72.8k units, translating to domestic PV sales of 161.0k units (flat YoY). LCVs (super carry) increased by 15.5% to 3.1k units. However, its PV Vahan registration for Feb’26 was 154.5k (+28% YoY, above industry growth) indicating stable consumer sentiments, with production volumes growing +19% YoY driven by SUV production (+54% YoY). SUV penetration as a percentage of total domestic PV sales was at 45.2% (+470bps YoY, +190bps MoM). Export penetration stood at 18.3% of the overall portfolio (+575bps YoY, -320bps MoM). FYTD YoY: overall: +7.7%, domestic PV: +2.9%, domestic LCV: +10.2%, exports: +33.7%

Tata Motors PV: Strong domestic sales (incl EVs) continues

PV sales grew +35.3% YoY to 63.3k units. Domestic sales rose +34.2% to 62.3k units, while exports surged ~3x YoY. Total EV sales reached 8.4k units (+56.9% YoY, -7.4% MoM) with 13.2% penetration (+180bps YoY, +50bps MoM). FYTD YoY: total PVs: +13.9%, domestic: +12.6%, exports: ~4x, EVs: +40.2%.

Hyundai Motor India: Improved domestic sales, albeit slower than industry growth. Strong exports growth continues

Overall volumes increased +12.6% YoY to 66.1k units. Export volumes grew +24.8% YoY, while domestic growth showed sustained momentum after weak sales in 8MFY26. Exports from India, which is the management’s focus, had 20.8% penetration (+200bps YoY, +160bps MoM). FYTD YoY: overall: +1.6%, domestic: - 3.1%, exports: +19.1%

Bajaj Auto: 2 nd consecutive month of strong growth in domestic 2W sales (slightly below industry); overall exports and CVs continue their momentum.

Overall sales grew +27.3% YoY to 448.3k units. Domestic growth (+26.8% YoY) was similar to exports (+27.9% YoY). 2W volumes rose +26.9% YoY to 380.0k units: domestic grew +27.4% (186.2k units) and exports grew +26.4% YoY (193.8k units). CV volumes remained strong (+29.8% YoY to 68.3k units) with growth in both exports (+42.6%, surge continued) and domestic (+24.5% to 46.4k units) YoY. FYTD YoY: overall sales: +9.1% YoY (4.7mn units) supported by exports (+20.8%), while domestic flattish (2.6mn units). 2Ws: +7.4% YoY (domestic: flat, exports: +17.3% YoY), CVs: +19.7% YoY (domestic: +7.1%, exports: +51.9%)

Eicher Motors:

Royal Enfield: The company continued to record double-digit growth for the 5th consecutive month. De-growth continued in 350cc+ bikes for the 4th consecutive month post GST 2.0 reforms. The management is optimistic about the road ahead. Overall volumes increased by +11.3% YoY (100.9k units), with domestic sales up +12.9% (91.3k units), and international business growing slower than recent past (- 2.2% YoY). Sub-350cc models grew +15.5% YoY (90.0k units), while 350cc+ models declined 14.2% YoY (11.1k units). FYTD YoY: overall: +23.9% (1.13mn units), sub-350cc: +26.6% (989.1k units), 350cc+: +7.6%, domestic: +23.6% (1.01mn units), international business: +26.8%

VECV: The company saw strong growth led by sustained momentum in domestic LMD trucks and HDT. Overall volumes grew by 23.4% YoY to 10.0k units. Domestic trucks/SCVs led the growth (LMD < 18.5T: +41.3% at 4.9k units, HD ≥ 18.5T: +54.1% at 2.6k units), offsetting the decline of 25.2% YoY in domestic bus sales (1.63k units). Exports grew +8.9% (600 units), and Volvo T&B grew strong +20.2% YoY (220 units). FYTD YoY: overall: +15.5%, domestic: +14.0% led by trucks (mainly SCVs: +23.5%), exports: +46.5%, Volvo T&B: +1.4%

Hero MotoCorp: Strong performance across segments (above industry growth). Scooters maintained strong momentum and overall exports continued to grow.

Overall volumes grew +43.8% YoY to 558.2k units with domestic sales +44.7% (517.0k units) and exports up +34.0% (driven by premium portfolio). Motorcycle sales grew +41.9% YoY to 499.8k units (aided by strong 100-125cc segment). Scooter sales kept surging (+63.5% YoY), driven by new/refreshed models. Vahan registrations overall were 458.3k units (+18% YoY) and 12,514 units of VIDA. FYTD YoY: overall: +9.7% (5.87mn units), Motorcycles: +6.8% (5.31mn units), Scooters: +47.6% (9.5% penetration), domestic: +8.1% (5.51mn units), exports: +44.0% (6.1% penetration)

TVS Motor: Strong growth momentum continues across segments. Overall growth at par with industry. Overall, highest-ever international sales of 158k units

Overall volumes increased +31.0% YoY to 529.3k units. 2Ws grew +29.6% YoY to 507.9k units with contribution from both domestic (+32.4% YoY to 365.5k units) and exports (+22.9% YoY to 142.4k units). Overall, motorcycles sales grew 25.0% YoY to 241.3k units, and scooters grew +33.7% YoY to 220.0k units. EV sales grew +59.8% YoY/ +1.7% MoM, to 38.4k units. 3W sales almost doubled (21.5k units) with strong domestic and export volumes. FYTD YoY: +24.0% (5.37mn units), all subsegments grew in double digits (except Moped: +4.9% YoY, while domestic 3W sales > 2x), scooters: +26.4% (2.20mn units), motorcycles: +24.1% (2.48mn units), group total exports: +33.4%, domestic: +20.9% (3.92mn units)

Ashok Leyland: Strong domestic CV growth across sub-segments (except domestic bus and truck exports) continues

Overall volumes saw strong growth of +23.8% YoY to 22.2k units. Domestic volumes were up +27.9% YoY (20.3k units), with MHCV trucks growing +38.6%, MHCV bus declining 4.4%, and LCV growing +22.2% YoY. Exports declined 8.9% YoY to 1.8k units, dragged by MHCV trucks (-44.4%). FYTD YoY: overall: +14.0% (195.1k units); domestic: +13.5% (178.6k units), exports: +20.0%; overall MHCV bus: +17.8%, MHCV trucks: +13.9%, LCVs: +12.7%

Tata Motors CV: Strong growth across segments continues

HCV trucks and SCVs, which recorded subdued growth until Oct’25, drove volumes. Overall sales grew +32.0% YoY to 42.9k units (all segments recorded double-digit growth). Domestic sales were up +32.8% YoY (40.9k units), and exports grew +17.9% YoY. MH&ICV grew +34.9% YoY (domestic: +34.4% YoY). FYTD YoY: overall: +13.3% (380.4k units), domestic: +10.8% (354.3k units), exports: +61.9%

Escorts Kubota: Persistent strong tractor growth is likely to continue in the coming months. Steady volume growth in CE sales (monthly volume grew for the 1 st time in FY26) with expectations of continued growth in near future.

Tractors continued strong trajectory (+20.4% YoY to 10.3k units) with domestic sales growing +22.1% to 9.7k units (aided by positive rural sentiments, strong farm activity, government policy support), while exports degrew 1.3% YoY. FYTD YoY: Tractor sales: overall: +16.7% YoY, domestic: +15.7% YoY. Construction Equipment grew +4.8% YoY, with positive trend to be aided by recent project awards, focus on execution speed and anticipated government infra push. FYTD CE sales: -14.3% YoY

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