Key Highlights:
a) Passenger vehicles
•Passenger Vehicle segment posted its highest ever sales of Q4 of 13.16 Lakh units in Q4 of 2025-26, registering a growth of 13.2%, compared to Q4 of same period last year.
•The segment also clocked its highest ever sales of 46.43 Lakh units in FY2025-26, posting a growth of 7.9%, as compared to previous financial year.
•This robust performance was supported by improved affordability following the GST rate reduction, enhanced purchasing power from personal income tax relief and lower financing costs due to successive repo rate cuts by RBI. Therefore, H2 of 2025-26 posted a robust growth of 16.7% compared to 2024-25, whereas there was a (-)1.4% de-growth in H1 in 2025-26, compared to previous H1. Further, increase in registration of electric Passenger Vehicles by more than 80% in FY 2025-26, compared to previous years, also propelled this growth.
•Passenger Vehicles also saw their highest ever exports of 9.05 Lakh Units in 2025-26 registering a growth of 17.5% over FY 2024-25. The demand has been steady across most markets including in the Middle East, Africa and Latin America last year.
b) Two-Wheelers
• In Q4 of 2025–26, Two-Wheelers posted their highest ever Q4 sales of 57.73 lakh units, with a growth of 26.4%, as compared to Q4 of 2024–25.
• For FY 2025-26 period, the Two-Wheeler segment posted the highest ever sales of 2.17 Crore units, with a growth of 10.7%, crossing the previous peak achieved in FY2018-19.
• The implementation of GST 2.0 has spurred growth in both Q3 and Q4 for 2025-26. While H1 growth was flat at sub 1%, H2 posted growth of about 21.5% compared to previous H2. In addition, EV offtake also increased in March, driven by anticipation of rising fuel prices.
• Complementing these structural reforms, supportive macroeconomic measures, including multiple repo-rate reductions and income tax relief in FY2025-26 provided the necessary impetus, further strengthening consumer demand.
• While growth has been observed across both urban and rural markets, the current trend has been led primarily by urban demand.
• Two Wheelers also recorded their highest ever exports in a Financial Year with 51.8 Lakh units in 2025-26 with a growth of 23.4% 2024-25. Wider product range and recognition of Indian Two-wheeler brands and its robust quality is increasing acceptance globally. Further, the depreciated value of Rupee is also helping the exports volumes.
c) Three Wheelers
• In Q4 of 2025-26, Three-Wheelers posted their highest ever Q4 sales of 2.27 Lakh units, with a growth of 26.7% Q4 of 2024-25.
• Three Wheelers also posted their highest ever sales in FY 2025-26 of 8.36 Lakh units, registering a growth of 12.8%, as compared to FY 2024-25.
• Performance of the Three-Wheeler segment is driven by increased economic activity, rising movement of people and goods, strengthening personal and commercial mobility needs for meeting the transportation needs in urban and semi urban areas.
• Demand has been further aided by the expansion of electric autorickshaws. In addition, the issuance of new permits for ICE three-wheelers by select State governments has also contributed positively to overall growth.
• Exports of Three Wheelers grew by 50.1% in FY 2025-26, compared to last year, with exports of around 4.61 Lakh units. Increased exports to Sri Lanka and African nations have contributed to this growth.
d) Commercial Vehicles
• Commercial Vehicle segment recorded its highest ever sales of Q4 in 2025–26 with 3.25 Lakh units, resulting in a growth of 18.9%, compared to Q4 of 2024–25.
• This segment also posted its highest ever sales in FY 2025-26 with 10.80 Lakh units, with a growth of 12.6%, compared to FY2024-25.
• The rollout of GST 2.0 reforms has provided a strong impetus to domestic CV sales, with consumption demand driving new vehicle purchases by fleet operators. Additionally, the RBI’s repo-rate cuts have significantly lowered the Total Cost of Ownership easing financing for consumers and strengthening overall market sentiment. Increased Capital Expenditure has further spurred economic activity in the country, providing a boost to the Commercial Vehicle segment.
• 0.95 Lakh units of Commercial Vehicles were exported in FY 2025-26 with a growth of 17.4% over 2024-25. Neighbouring countries and the Middle East have been the steady markets for Commercial Vehicles.
Growth Outlook for Indian Auto Industry - FY 2026-27
• FY 2025-26 has been a landmark year for the Indian Automobile industry, supported by a series of structural policy reforms that have strengthened demand fundamentals and significantly boosted consumer confidence.
• Therefore, Industry is optimistic and expecting growth to continue in all the Vehicle Categories in 2026-27, continuing strong domestic momentum from the latter half 2025-26.
• However, uncertainties arising from the West Asia conflict, particularly prices of Crude Oil and Commodities, higher exchange rates and disruptions in Shipping Routes, remains a concern for the Auto Sector. Stable geopolitical environment will help build confidence of the industry, which can in-turn drive further growth Auto Industry’s performance in 2026-27.
Monthly Performance: March 2026
Production: The total production of Passenger Vehicles1, Three Wheelers, Two Wheelers and Quadricycle in the month of March 2026 was 29,78,173 units
Domestic Sales:
• Passenger Vehicles2 sales were 4,42,460 units in March 2026.
• Three-wheeler sales were 76,273 units in March 2026.
• Two-wheeler sales were 19,76,128 units in March 2026.
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 March included only in this document. However, without Tata Motors, ‘Total PV’ would be 376,268 units for March 2026
Quarterly Performance: Q4 (January - March 2026) FY-2025-26
Production: Total production of Passenger Vehicles3, Commercial Vehicles4, Three Wheelers, Two Wheelers and Quadricycle in January – March 2026 was 93,36,821 units.
Domestic Sales:
• Passenger Vehicles3 sales were 13,16,282 units in January-March 2026.
• Commercial Vehicles4 sales were 3,25,462 units in January-March 2026.
• Three-wheeler sales were 2,26,571 units in January-March 2026.
• Two-wheeler sales were 57,73,137 units in January-March 2026
Financial Year Performance: FY-2025-26
Production: Total production of Passenger Vehicles3, Commercial Vehicles4, Three Wheelers, Two Wheelers and Quadricycle in April 2025 – March 2026 was 3,47,08,984 units.
Domestic Sales:
• Passenger Vehicles3 sales were 46,43,439 units in April 2025 – March 2026.
• Commercial Vehicles4 sales were 10,79,871 units in April 2025 – March 2026.
• Three-wheeler sales were 8,36,231 units in April 2025 – March 2026.
• Two-wheeler sales were 2,17,05,974 units in April 2025 – March 2026.
3BMW, Mercedes, JLR & Volvo Auto data are not available.
4Daimler data is not available.
Commenting on sales data of Financial Year 2025-26, Mr Shailesh Chandra, President, SIAM said, “Though FY 2025-26 started modestly, the Indian Auto industry has closed the year on a high note with every vehicle category viz. Passenger Vehicles, Commercial Vehicles, 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.
In FY 2025-26, Passenger vehicles posted sales of 46.43 Lakh units with a growth of 7.9%, Commercial Vehicles posted sales of 10.80 Lakh units with a growth of 12.6%, Three Wheelers posted sales of 8.36 Lakh units with a growth of 12.8%, and Two Wheelers posted sales of 2.17 Crore units, with a growth of 10.7%, over FY 2024-25.
Looking ahead, domestic demand and macroeconomic fundamentals remain robust as we step into FY 2026-27, 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.”
Commenting on the performance of Q4 (January to March) of 2025-26, Mr Rajesh Menon, Director General, SIAM said, “Each of the vehicle category, Passenger Vehicles, Commercial Vehicles, Three Wheelers and Two Wheelers posted their highest ever sales in the January to March Quarter with double digit growth compared to previous year’s quarter. In Q4 of 2025-26, Passenger Vehicles posted sales of 13.16 lakh units with a growth of 13.2%, Commercial Vehicles posted sales of 3.25 Lakh units with a growth of 18.9%, Three-Wheelers posted sales of 2.27 Lakh units with a growth of 26.7% and Two-Wheelers posted sales of 57.73 Lakh units with a growth of 26.4%, compared to Q4 of 2024-25.”
Rajesh Menon, Director General, SIAM
rajesh.menon@siam.in