India's passenger vehicle industry ended the first quarter of FY27 on a strong footing, with most major automakers reporting healthy year-on-year growth in June, reflecting resilient consumer demand for SUVs and electric vehicles, despite supply disruptions at select manufacturers, according to a report by Business Today.
Major Automakers Post Double-Digit Growth
The June sales data from India's top four passenger vehicle manufacturers shows a broad-based recovery. The table below summarises the key figures:
| Company | June Sales (units) | YoY Growth | Notable Details |
|---|---|---|---|
| Tata Motors Passenger Vehicles | 63,083 | +69% | Highest-ever monthly EV sales of 14,800 units, nearly 3x last year |
| Maruti Suzuki | 200,390 | +19.3% | Domestic PV sales up 23.8% to 147,187 units; exports up 13% |
| Mahindra & Mahindra | 106,207 | +37% | Domestic UV sales 60,393 units; total SUV sales including exports 61,504; exports more than doubled to 5,918 |
| Hyundai Motor India | 51,335 | — | Domestic 39,635, exports 11,700; fire at supplier caused ~13,900 unit production loss; normalized by June 22 |
Tata Motors Leads with Record EV Sales
Tata Motors emerged as the biggest gainer among leading carmakers, reporting sales of 63,083 cars and SUVs in June, up 69% from a year earlier. The company also recorded its highest-ever monthly EV sales of 14,800 units, nearly three-times last year's figure, helping quarterly passenger vehicle sales climb 46% to 1,82,574 units. Tata attributed the growth to strong demand for refreshed Tiago and Punch, while noting that supply constraints affecting Sierra production are expected to ease during the current quarter.
Maruti Suzuki Maintains Volume Leadership
Market leader Maruti Suzuki retained its dominance in volumes, posting total sales of 200,390 units in June, up 19.3% year-on-year. Domestic passenger vehicle sales rose 23.8% to 1,47,187 units, driven by sustained demand for utility vehicles, while exports increased 13%.
Mahindra & Mahindra Reports Strong SUV Demand
Mahindra & Mahindra also delivered another strong month, with overall vehicle sales, including exports, rising 37% to 106,207 units. Domestic utility vehicle sales grew to 60,393 units from 47,306 a year ago, while total SUV sales, including exports, reached 61,504 units. Exports more than doubled to 5,918 units, highlighting continued traction in overseas markets.
Hyundai Hit by Supplier Fire but Recovers
Hyundai Motor India reported total sales of 51,335 units, including 39,635 domestic units and 11,700 exports. The company said a fire at a supplier's manufacturing facility led to a production loss of around 13,900 units during June, although production normalised by June 22 and the lost volumes are expected to be recovered in the second quarter.
Implications for Manufacturing and Supply Chains
The strong sales figures indicate robust demand recovery for passenger vehicles, particularly in the SUV and EV segments. For manufacturing executives and procurement professionals, this signals a need to align production capacity with rising orders. Notably, Tata Motors' record EV sales underscore the accelerating shift toward electric mobility, which may drive investments in EV-specific assembly lines and battery supply chains. Hyundai's temporary supply disruption highlights the vulnerability of just-in-time manufacturing; the company's quick recovery suggests effective contingency planning. As automakers ramp up output to meet demand, plant managers can expect increased utilisation rates and potential pressure on component suppliers to maintain quality and delivery schedules.
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