- Industry
- 3 min read
India’s auto sales hit record high in Q1; PVs log 26% growth: SIAM
Exports across all major vehicle segments also touched record highs, driven by robust demand from Latin America, Africa and Southeast Asia.
India's automobile industry started FY27 on a strong note, with passenger vehicles (PVs), commercial vehicles (CVs) and three-wheelers registering their highest-ever first-quarter sales, while exports across all major vehicle segments touched record highs despite geopolitical headwinds in West Asia.
According to data released by the Society of Indian Automobile Manufacturers (SIAM) on Wednesday, passenger vehicle sales rose 25.9 per cent year-on-year to 12,73,811 units during April-June 2026, marking the highest-ever first-quarter sales for the segment.
Utility vehicles continued to dominate the passenger vehicle market with 861,918 units sold reporting a growth of 28.6 per cent during the quarter, outpacing passenger cars, which recorded 21.3 per cent growth with 367,549 units.
Passenger vehicle exports also reached a record 2.22 lakh units in the quarter, up 8.8 per cent year-on-year, supported by strong demand from Latin America and improving shipments to Europe and Japan, although exports to the Middle East remained under pressure.
The two-wheeler segment also delivered a robust performance, with domestic sales increasing 20.3 per cent to 3,67,549 units during the quarter. Scooter sales continued to outpace motorcycles, benefiting from the momentum created following lower GST rates.
Two-wheeler exports surged 36.6 per cent to a record 1.55 million units, aided by stable demand from South Asia and Africa and strong growth in Latin American markets.
Three-wheelers posted their best-ever first-quarter performance, with domestic sales rising 29.7 per cent to 3,67,549, driven by healthy demand across both passenger and goods carrier categories. SIAM attributed the growth to improving economic activity and easier financing availability in urban markets.
Exports of three-wheelers climbed 57.7 per cent year-on-year to a record 1.51 lakh units during the quarter.
Commercial vehicles also recorded their highest-ever first-quarter sales at 2.65 lakh units, registering an 18.3 per cent increase over the year-ago period.
Within the segment, goods carriers posted double-digit growth, supported by replacement demand and sustained activity in the mining and cement sectors, while passenger carriers reported marginal growth.
Commercial vehicle exports rose 43.3 per cent to around 28,000 units, the highest ever for any first quarter, driven primarily by growing demand for pickup trucks in Southeast Asia.
(Source- SIAM)
June performance
For June alone, passenger vehicle sales stood at 388,144 units reporting a growth of 24.1% YoY, when compared with 3,12,851 in the same period last year.
Two-wheeler sales reached 18,51,400 units, as against 15,61,283 units in Q1 FY256.
Three-wheeler sales during the month stood at 77,951 units.
Outlook remains positive, but risks persist
Commenting on the performance, SIAM President Shailesh Chandra said the industry's strong first-quarter growth came despite supply chain disruptions arising from tensions in West Asia.
"Passenger vehicles, commercial vehicles and three-wheelers posted their highest-ever Q1 sales, while all vehicle segments, including two-wheelers, recorded their highest-ever exports during the quarter," he said.
He attributed the strong performance to supportive domestic demand, lower GST rates, softer financing costs, the low base effect and the launch of new vehicle models.
Rajesh Menon, Director General, SIAM said, “High double-digit growth was recorded across all vehicle segments in Q1 of 2026- 27, compared to the corresponding quarter of the previous financial year.”
Looking ahead, SIAM expects demand to remain steady in the July-September quarter as the festive season approaches. Lower GST rates and easier financing conditions are expected to continue supporting vehicle purchases.
However, the industry cautioned that commodity prices remain a concern. While the earlier ceasefire in West Asia had eased pressure on fuel and raw material supplies, manufacturers are closely monitoring recent geopolitical developments.
The industry is also tracking the progress of the monsoon, given its importance for agricultural output and rural demand, both of which play a crucial role in sustaining automobile sales during the festive season.
According to data released by the Society of Indian Automobile Manufacturers (SIAM) on Wednesday, passenger vehicle sales rose 25.9 per cent year-on-year to 12,73,811 units during April-June 2026, marking the highest-ever first-quarter sales for the segment.
Utility vehicles continued to dominate the passenger vehicle market with 861,918 units sold reporting a growth of 28.6 per cent during the quarter, outpacing passenger cars, which recorded 21.3 per cent growth with 367,549 units.
Passenger vehicle exports also reached a record 2.22 lakh units in the quarter, up 8.8 per cent year-on-year, supported by strong demand from Latin America and improving shipments to Europe and Japan, although exports to the Middle East remained under pressure.
The two-wheeler segment also delivered a robust performance, with domestic sales increasing 20.3 per cent to 3,67,549 units during the quarter. Scooter sales continued to outpace motorcycles, benefiting from the momentum created following lower GST rates.
Two-wheeler exports surged 36.6 per cent to a record 1.55 million units, aided by stable demand from South Asia and Africa and strong growth in Latin American markets.
Three-wheelers posted their best-ever first-quarter performance, with domestic sales rising 29.7 per cent to 3,67,549, driven by healthy demand across both passenger and goods carrier categories. SIAM attributed the growth to improving economic activity and easier financing availability in urban markets.
Exports of three-wheelers climbed 57.7 per cent year-on-year to a record 1.51 lakh units during the quarter.
Commercial vehicles also recorded their highest-ever first-quarter sales at 2.65 lakh units, registering an 18.3 per cent increase over the year-ago period.
Within the segment, goods carriers posted double-digit growth, supported by replacement demand and sustained activity in the mining and cement sectors, while passenger carriers reported marginal growth.
Commercial vehicle exports rose 43.3 per cent to around 28,000 units, the highest ever for any first quarter, driven primarily by growing demand for pickup trucks in Southeast Asia.
June performance
For June alone, passenger vehicle sales stood at 388,144 units reporting a growth of 24.1% YoY, when compared with 3,12,851 in the same period last year.Two-wheeler sales reached 18,51,400 units, as against 15,61,283 units in Q1 FY256.
Three-wheeler sales during the month stood at 77,951 units.
Outlook remains positive, but risks persist
Commenting on the performance, SIAM President Shailesh Chandra said the industry's strong first-quarter growth came despite supply chain disruptions arising from tensions in West Asia."Passenger vehicles, commercial vehicles and three-wheelers posted their highest-ever Q1 sales, while all vehicle segments, including two-wheelers, recorded their highest-ever exports during the quarter," he said.
He attributed the strong performance to supportive domestic demand, lower GST rates, softer financing costs, the low base effect and the launch of new vehicle models.
Rajesh Menon, Director General, SIAM said, “High double-digit growth was recorded across all vehicle segments in Q1 of 2026- 27, compared to the corresponding quarter of the previous financial year.”
Looking ahead, SIAM expects demand to remain steady in the July-September quarter as the festive season approaches. Lower GST rates and easier financing conditions are expected to continue supporting vehicle purchases.
However, the industry cautioned that commodity prices remain a concern. While the earlier ceasefire in West Asia had eased pressure on fuel and raw material supplies, manufacturers are closely monitoring recent geopolitical developments.
The industry is also tracking the progress of the monsoon, given its importance for agricultural output and rural demand, both of which play a crucial role in sustaining automobile sales during the festive season.
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