India Auto Industry Hits Record Sales In FY26 Growth Momentum Seen Continuing: SIAM

(MENAFN- KNN India) New Delhi, Apr 15 (KNN) India's automobile industry ended FY26 on a strong note, with all major vehicle segments recording their highest-ever domestic annual sales, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

Total domestic wholesales rose 10.4 per cent year-on-year to 2.83 crore units, compared to 2.56 crore units in FY25, reflecting robust demand across categories.

Strong Growth Across Segments

Passenger vehicles (PV) recorded sales of 46.43 lakh units, up 7.9 per cent year-on-year, while commercial vehicles (CV) grew 12.6 per cent to 10.79 lakh units.

Three-wheelers saw a 12.8 per cent rise to 8.36 lakh units, and two-wheelers posted the highest volume at 2.17 crore units, registering a 10.7 per cent increase.

Within the PV segment, utility vehicles continued to drive growth, rising 11 per cent to 31.05 lakh units. In contrast, passenger cars grew modestly by 1.9 per cent.

In the two-wheeler category, scooters outpaced motorcycles, growing 18.5 per cent to 81.17 lakh units, while motorcycles rose 6.6 per cent to 1.30 crore units.

Policy Support and Demand Boost

The strong performance was supported by a combination of policy and macroeconomic factors, including GST reforms, multiple repo rate cuts by the Reserve Bank of India, and income tax relief measures. These steps improved affordability and boosted consumer sentiment during the year.

Commenting on the annual performance, SIAM President Shailesh Chandra said,“Though FY26 started modestly, the Indian auto industry has closed the year on a high note with every vehicle category viz. PVs, CVs, three-wheelers and two-wheelers, together posting their highest ever sales in a financial year, after seven years.”

“The strong contributors to this growth have been the positive sentiments created through GST 2.0 reforms and multiple repo rate cuts during the year,” he added.

Exports and Outlook for FY27

Exports also witnessed strong growth, with passenger vehicles, two-wheelers and three-wheelers registering double-digit increases, supported by steady demand from regions such as the Middle East, Africa and Latin America.

"Looking ahead, domestic demand and macroeconomic fundamentals remain robust as we step into FY27, which should aid steady growth for the industry. However, uncertainties arising from the West Asia conflict need to be closely monitored, as it may have impacts on production, commodity prices, fuel prices, freight rates and the overall economy," Chandra noted.

(KNN Bureau)

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