New Delhi: Sales momentum in the passenger vehicles segment continued in June 2026, with most automobile companies posting double digit growth despite concerns over the West Asia conflict and rising energy prices.
Demand outstripped supplies for almost all automakers as consumers brushed aside economic uncertainty and went ahead with planned purchases, industry data showed.
The strong performance came even as crude oil prices remained elevated due to the ongoing conflict, pushing up fuel costs and transport expenses. Analysts had expected the geopolitical tensions to weigh on discretionary spending, but buyer sentiment in the auto sector stayed resilient.
Demand for electric vehicles saw a notable surge during the month, outpacing overall market growth as buyers looked to hedge against higher fuel costs. Several manufacturers reported waiting periods extending into months for popular EV models.
Dealers said new launches, easier financing options, and sustained preference for personal mobility continued to drive showroom traffic. Entry-level and SUV segments both recorded healthy gains.
Automakers are now ramping up production to clear order backlogs, though supply chain checks remain in place due to global commodity price volatility.
The June numbers extend the growth streak for the sector in the first quarter of FY27, with industry executives expecting the momentum to hold if energy prices stabilize.
