Press Releases

Auto Industry Sales Performance of September 2025 and Q2 (July–September 2025)

Key Highlights from Q2 (July–September 2025)

1. Passenger vehicles

• Passenger Vehicle sales stood at 1.04 million units in Q2 of 2025–26, registering a de-growth of (-)1.5% compared to Q2 of 2024–25. However, the segment showed signs of recovery towards the end of the quarter, with September 2025 sales up by 4.4%, aided by recent GST reduction measures, improved consumer sentiment, and the onset of the festive season.
• The Utility Vehicle (UV) sub-segment continues to dominate the PV market, accounting for around two-thirds of total PV sales, however, posted a de-growth of (-) 2.1% in Q2 of 2025-26, over Q2 of 2024-25. While Passenger Cars remained relatively flat during the quarter.
• Passenger Vehicles saw their highest ever exports in Q2 of 2025-26 of 2.42 Lakh units registering a growth of 23% over Q2 of 2024-25.

2. Two-Wheelers

• The Two-Wheeler segment posted sales of 5.56 million units in Q2 of 2025–26, registering a growth of 7.4% over Q2 of 2024–25.
• This growth was supported by a combination of higher economic activity, improved affordability resilient rural mobility demand, and the positive impact of GST rate reduction implemented in late September.
• Growth is led by scooter segment which grew by 12.4% in this quarter over the same period last year as compared to growth in Motorcycles which grew by 5% in Q2 of 2025-26 over Q2 of last year.
• Two Wheelers also recorded their highest ever exports in Q2 of 2025-26 of 1.3 million units registering a growth of 25% over Q2 of 2024-25.

3. Three Wheelers

• In Q2 of 2025-26, Three-Wheelers posted their highest ever Q2 sales of 2.29 Lakh units, with a growth of 9.8%, especially driven by the Passenger Carrier sub-segment.
• Performance of the Three-Wheeler segment is driven by factors including increased economic activity for meeting the transportation needs in urban and semi urban areas.
• Easier financing options and increased replacement sales has also been helping in supporting this growth momentum.
• 1.23 Lakh units of Three-Wheelers were exported, which is the highest exports of Q2 in last six years, with a growth of 51% in Q2 of 2025-26, as compared to last year’s Q2.

4. Commercial Vehicles

• Commercial Vehicle sales stood at 2.40 Lakh units in Q2 of 2025–26, reflecting a growth of 8.3% compared to Q2 of 2024–25.
• The growth was broad-based across segments, with Medium & Heavy Commercial Vehicles (MHCVs) benefiting from strong freight demand, and Light Commercial Vehicles (LCVs) showing improvement due to robust intra-city logistics requirement.
• Freight carrying activity increased significantly, reflecting heightened movement of goods across key sectors such as steel, cement, mining, and construction.
• The recent GST rate reduction also had a positive spillover on logistics and fleet replacement decisions.
• 0.24 Lakh units of Commercial Vehicles were exported with a growth of 22% in Q2 of 2025-26, as compared to Q2 of last year.

Growth Outlook for H2 (October 2025 – March 2026)

• The Indian Automobile industry enters the second half of FY2025–26 with renewed cheer, supported by strong festive season momentum, stable macroeconomic conditions, and GST 2.0 reforms that have improved overall affordability and consumer sentiment.
  • This year, the festive season commenced earlier than last year, beginning from 22^nd September with Navratri, which helped stimulate retail activity during the latter part of Q2 itself. The extended festive and wedding season is expected to sustain the growth momentum through Q3, reinforcing positive consumer sentiment across all vehicle categories.
  • The Kharif harvest is expected to be broadly healthy, supported by an above-normal monsoon. However, flooding parts North, West and Eastern regions impacted certain crops and logistics temporarily. Despite these disruptions, overall agricultural output and rural sentiment remain stable, which is likely to support rural consumption and mobility demand in H2.
  • The rollout of GST 2.0 reforms, coupled with earlier RBI rate rationalization measures and Income Tax relief to common Taxpayers, are expected to sustain buying interest across all vehicle segments through the festive and post-festive months.

• While the industry remains watchful of geopolitical developments, the overall outlook for rest of the current Financial Year remains encouraging, with the sector expected to close the fiscal year on a positive growth trajectory.

Monthly Performance: September 2025

Production: The total production of Passenger Vehicles¹, Three Wheelers, Two Wheelers, and Quadricycle in September 2025 was 30,73,654 units

Domestic Sales:

• Passenger Vehicles² sales were 3,72,458 units in September 2025.
• Three-wheeler sales were 84,077units in September 2025
• Two-wheeler sales were 21,60,889 units in September 2025.

¹ BMW, Mercedes, JLR, Tata Motors & Volvo Auto data are not available.

² BMW, Mercedes, JLR & Volvo Auto data are not available. Tata Motors Domestic Sales data for September included only in this document. However, without Tata Motors, ‘Total PV’ would be 3,12,791 units for September 2025

Performance: July-September 2025

Production: The total production of Passenger Vehicles³, Commercial Vehicles⁴, Three Wheelers, Two Wheelers, and Quadricycle in July-September 2025 was 88,73,894 units

Domestic Sales:

• Passenger Vehicles³ sales were 10,39,200 units in July-September 2025.
• Commercial Vehicles⁴ sales were 2,39,781 units in July-September 2025.
• Three-wheeler sales were 2,29,239 units in July-September 2025.
• Two-wheeler sales were 55,62,077 units in July-September 2025.

Performance: April-September 2025

Production: The total production of Passenger Vehicles³, Commercial Vehicles⁴, Three Wheelers, Two Wheelers, and Quadricycle in April-September 2025 was 1,65,34,997units

Domestic Sales:

• Passenger Vehicles³ sales were 20,51,082 units in April-September 2025.
• Commercial Vehicles⁴ sales were 4,63,502 units in April-September 2025.
• Three-wheeler sales were 3,94,450 units in April-September 2025.
• Two-wheeler sales were 1,02,36,639 units in April-September 2025.

³BMW, Mercedes, JLR & Volvo Auto data are not available.

⁴Daimler data is not available.

Commenting on the Q2 2025-26 performance, Mr Shailesh Chandra, President, SIAM said, “The GST 2.0 reform is a landmark decision of the Government of India, which apart from catapulting the Indian auto industry to the next level, would bring in vibrancy in the entire economy, as this industry is closely intertwined with strong forward and backward linkages. Inspite of the new GST rates coming into effect from 22^nd of September, i.e. only for 9 days of the month, Passenger Vehicles, Two-Wheelers and Three-Wheelers have already posted their highest ever sales of September. In addition, very strong exports growth, in all segments in Q2, indicates the growing brand acceptance on Indian made vehicles. Looking ahead, the outlook for the sector remains encouraging on the back of key tailwinds.”

Commenting on the performance of Q2 of 2025-26, Mr Rajesh Menon, Director General, SIAM said, “Sales of Passenger Vehicles in Q2 of 2025-26 de-grew by (-) 1.5%, posting sales of 1.04 million units as compared to Q2 of previous year. Sales of Three-Wheelers in Q2 of 2025-26 grew by 9.8% compared to last year, with 2.29 Lakh units, which is the highest ever in Q2. Two-Wheelers registered a growth of 7.4% in this Quarter, compared to last year, with sales of 5.56 million units while Commercial Vehicles grew by 8.3% in Q2, compared to Q2 of last financial year, with sales of 2.40 Lakh units.”

Rajesh Menon, Director General, SIAM

rajesh.menon@siam.in