India Auto Sales Hit Record High in Q1 FY27 as Passenger Vehicles, Commercial Vehicles and Three-Wheelers Set New Milestones: SIAM

New Delhi, India, July 15, 2026: India’s automobile industry recorded its strongest-ever first quarter (April–June) performance in FY2026-27, with passenger vehicles, commercial vehicles and three-wheelers achieving record domestic sales, while exports across every major vehicle category also reached all-time Q1 highs, according to the latest data released by the Society of Indian Automobile Manufacturers (SIAM).

The industry was buoyed by lower GST rates, softer financing costs, new model launches and resilient consumer demand despite geopolitical uncertainties in West Asia.

Passenger Vehicle Sales Cross 1.27 Million in Record Q1

Passenger vehicle (PV) sales touched a record 12,73,811 units during April-June 2026, representing a 25.9% year-on-year growth, making it the highest-ever Q1 performance for the segment.

Utility Vehicles (UVs) continued to dominate the market, accounting for nearly 68% of all passenger vehicle sales, with the segment growing 28.6%, while passenger cars registered a healthy 21.3% increase.

Exports also reached a new benchmark, rising 8.8% to 2.22 lakh units, driven by robust demand from Latin America and improving shipments to Europe and Japan.

Two-Wheeler Industry Registers Strong Double-Digit Growth

India’s two-wheeler market sold 56,28,675 units during Q1 FY27, marking a 20.3% increase over the same period last year.

Scooters continued to outperform motorcycles, benefiting from the momentum created by reduced GST rates. The segment also posted its highest-ever Q1 exports, shipping 1.55 million units, up 36.6%, with demand led by Latin America, alongside stable markets in South Asia and Africa.

Three-Wheeler Segment Posts Best-Ever Quarter

The three-wheeler industry reported record domestic sales of 2,14,339 units, growing 29.7% year-on-year.

SIAM attributed the growth to strong demand for both passenger and goods carriers, supported by increased economic activity and easier financing availability.

Exports climbed 57.7% to 1.51 lakh units, also setting a new Q1 record.

Commercial Vehicle Sales Reach New High

Commercial vehicle sales touched 2,64,831 units during the quarter, registering an 18.3% increase, the highest-ever Q1 sales for the segment.

While passenger carriers witnessed modest growth, the goods vehicle segment expanded in double digits, supported by replacement demand and higher activity in the mining and cement industries.

Commercial vehicle exports rose 43.3%, reaching nearly 28,000 units, largely driven by demand for pickup trucks in Southeast Asia.

June 2026 Sales Snapshot

For June 2026, SIAM reported:

• Passenger Vehicles: 3,88,144 units
• Two-Wheelers: 18,51,400 units
• Three-Wheelers: 77,951 units

Total vehicle production, excluding some manufacturers whose data was unavailable, stood at 30,15,528 units during the month.

SIAM Optimistic Ahead of Festive Season

Commenting on the industry’s performance, SIAM President Shailesh Chandra said passenger vehicles, commercial vehicles and three-wheelers achieved their highest-ever first-quarter sales, while exports across all vehicle segments also reached record levels.

He noted that lower GST rates, affordable financing, new product introductions and a favourable base effect helped drive growth despite supply-chain concerns arising from geopolitical developments in West Asia.

Looking ahead to the July-September quarter, SIAM expects demand to remain steady as India enters the festive season. The industry believes lower vehicle ownership costs and improving financing conditions will continue to support sales. However, commodity prices and global geopolitical developments remain key risks, while the progress of the monsoon will also be closely monitored for its impact on rural demand.