New Delhi, Aug. 22 -- India's automobile sector displayed a patchy performance in the first quarter of FY26, with two-wheelers and tractors driving growth while passenger and commercial vehicles remained largely subdued, according to a report by Axis Securities.

Two-wheeler exports jumped 23.2 per cent compared to last year. However, domestic volumes slipped 6 per cent due to affordability pressures, with motorcycles posting a 9 per cent decline. Still, the outlook for the segment remains positive, as the industry banks on premium launches, a prolonged replacement cycle, and possible GST relief in the coming months.

Tractors also saw momentum, with domestic sales rising 9.2 per cent year-on-year, supported by pre-election schemes, healt...