The March 2026 quarter (Q4FY26) revealed a diverging landscape for India’s auto giants. While domestic demand for SUVs and EVs surged, traditional small car segments faced headwinds from geopolitical uncertainties and rising input costs.
The Leaderboard: Volume Growth (y-o-y).
Tata Motors emerged as the clear winner in terms of growth percentage, followed closely by Mahindra & Mahindra’s SUV-heavy portfolio.
| Company | % Sales Change (y-o-y) | Total Units Sold (Q4FY26) |
| Tata Motors (PV) | +37% | 201,368 |
| Mahindra & Mahindra | +21% | 301,455 |
| Maruti Suzuki | +11.8% | 676,209 |
| Hyundai Motor India | +8.7% | 208,275 |
1. Tata Motors: The EV Powerhouse
Tata Motors Passenger Vehicles took the lead by leveraging a massive 69% y-o-y jump in EV sales (27,000 units).
-
Drivers: High demand for Nexon and Punch EVs, alongside the newly launched petrol variants of Harrier and Safari.
-
Investor Focus: While domestic sales are booming, markets are eyeing the March quarter results for Jaguar Land Rover (JLR) in the UK, which is recovering from a recent cyber incident.
2. Mahindra & Mahindra: SUV Dominance
M&M continues to ride the “premiumization” wave, with its SUV division growing by 23.3%.
-
Key Models: The new XUV7XO (launched Jan 2026) and electric models like the BE 6 and XEV 9E are the primary growth drivers.
-
Scale: Total auto sales crossed the 3-lakh unit mark for the quarter.
3. Maruti Suzuki & Hyundai: Export Lifelines
Both leaders saw a slowdown or stagnation in specific domestic segments, finding relief in international markets.
-
Maruti Suzuki: Despite total volume growth, small car sales (Alto, WagonR) fell 4%. Consumers in the middle-income bracket appear cautious due to Middle East tensions. However, a 61.2% surge in exports saved the quarter.
-
Hyundai: Achieved its highest-ever domestic quarterly sales (1.66 lakh units), but relied on a 9.4% growth in exports to maintain momentum.
Cost Pressures and Margins
The “Iran-USA/Israel war” has sent shockwaves through the supply chain:
-
Raw Materials: Aluminium prices rose 20% ($3,200/tonne) and steel rose 10% y-o-y.
-
Response: Maruti and Hyundai have announced 2% price hikes effective April 2026 to protect margins, which have already seen contraction (Maruti’s margin shrank to 11% in Q3).
Valuation Watch: Who is the Best Buy?
For investors, Tata Motors currently offers the most “reasonable” entry point based on Price-to-Earnings (P/E) ratios, provided the UK operations stabilize.
-
Tata Motors PV: 18.6 P/E (Consolidated)
-
Hyundai Motor India: 23.9 P/E
-
Mahindra & Mahindra: 24.5 P/E
-
Maruti Suzuki India: 26.7 P/E
Note: As of April 2, 2026, the market remains volatile. Investors are balancing the strong domestic festival-led momentum against the “consumer uncertainty” created by global conflicts and rising fuel costs.
