India's auto export segment remained mixed in August 2026, with automakers having higher exposure to West Asia witnessing weaker export trends amid logistical disruptions caused by the ongoing regional crisis. According to Kotak Institutional Equities report, exports remained weak across original equipment manufacturers (OEMs) due to supply and logistical disruptions arising from the West Asia crisis. The situation has been further complicated by fresh disruptions at Mundra Port, India's busiest private port, where an operational issue has escalated into a strike by empty-container yard operators. This has put nearly 5,000 containers a day at risk of being held up, adding another layer of uncertainty to an already strained export-import supply chain.
Domestic demand remained robust with overall retail volumes growing by more than 15 per cent year-on-year in August, despite geopolitical uncertainty linked to the Iran conflict. According to the Kotak report, domestic passenger vehicle (PV) wholesale volumes increased by more than 30 per cent year-on-year, supported by strong retail demand, channel filling and a favourable low base. Retail PV volumes grew 15 per cent year-on-year during the month.
Maruti Suzuki's total volumes rose 21 per cent year-on-year, supported by 29 per cent growth in the domestic market, which offset a 7 per cent decline in exports and the impact of fewer production days. Tata Motors' passenger vehicle volumes increased 56 per cent, while Mahindra & Mahindra's passenger vehicle volumes rose 50 per cent. Hyundai Motor India's total volumes grew 9 per cent, with a 24 per cent rise in domestic dispatches partly offset by a 31 per cent decline in exports.
The two-wheeler segment recorded strong growth with retail volumes rising 20 per cent year-on-year and wholesale volumes registering double-digit growth. Internal combustion engine (ICE) two-wheeler retail volumes increased 16 per cent, while electric two-wheeler retail sales surged 67 per cent year-on-year. Royal Enfield's total volumes grew 11 per cent, supported by a 10 per cent recovery in overseas shipments. Bajaj Auto's two-wheeler volumes increased 30 per cent, while TVS Motor and Hero MotoCorp recorded growth of 21 per cent and 3 per cent, respectively.
Commercial vehicles recorded double-digit growth, supported by improving sentiment among fleet operators and demand following GST-related measures. Wholesale dispatches of medium, heavy and light commercial vehicles grew more than 20 per cent year-on-year, while retail goods vehicle volumes increased 14 per cent. Tata Motors' commercial vehicle volumes rose 49 per cent, helped by growth in trucks, passenger carriers and exports. Ashok Leyland recorded 38 per cent growth, while VE Commercial Vehicles grew 18 per cent. In the farm equipment segment, domestic tractor volumes grew in the mid-to-high single digits year-on-year, with Escorts Kubota recording 21 per cent growth in domestic tractor volumes, despite concerns over weak monsoon conditions.
