Domestic automobile sales across major vehicle segments rose 18.2% year-on-year to 83.88 lakh units in July-September 2026, with passenger vehicles, two-wheelers, three-wheelers, and commercial vehicles all recording their highest-ever second-quarter sales, according to the Society of Indian Automobile Manufacturers (SIAM).
SIAM said passenger vehicle sales grew 30.7% to 13.61 lakh units in the second quarter of FY2026-27, while two-wheeler sales increased 15.2% to 64.33 lakh units. Three-wheeler sales rose 23.6% to 2.85 lakh units, and commercial vehicle sales grew 28.7% to 3.09 lakh units.SIAM Director General Rajesh Menon said, “Q2 of FY 2026–27 recorded the highest ever Q2 sales of all the segments, including Passenger Vehicle, Commercial Vehicle, Three-Wheeler, and Two-Wheeler."
The industry body attributed the strong performance to improved affordability following GST 2.0, resilient rural and urban demand, healthy freight movement, infrastructure-led economic activity, and a gradual replacement cycle across vehicle segments.
Within the passenger vehicle category, utility vehicles remained the dominant segment, accounting for 68% of sales. Utility vehicle sales rose 34.2% year-on-year, while passenger car sales increased 24.9% during the quarter.
Scooters led two-wheeler growth, with sales rising 27.7%, compared with a 7.4% increase in motorcycle sales.
Exports also recorded gains in several categories. Two-wheeler exports rose 27.7% to 16.5 lakh units, marking the highest-ever second-quarter level. Three-wheeler exports increased 30.4% to 1.6 lakh units, while commercial vehicle exports grew 72.5% to more than 41,000 units.
Passenger vehicle exports, however, declined 5.2% to 2.29 lakh units, mainly due to a higher base and logistics constraints linked to the West Asia crisis, SIAM said.
SIAM expects the industry to maintain positive growth in the second half of FY2026-27, supported by the festive season, new vehicle launches, infrastructure spending, fleet replacement, and last-mile mobility demand.
“Industry looks forward to the festive season for the continued momentum while remaining cautiously optimistic due to prevailing geo-economic uncertainties,” SIAM President Shenu Agarwal said.
The industry body cautioned that higher inflation, possible interest rate increases and geopolitical uncertainties could affect demand, while growth rates may moderate against a higher base. - ANI
