India’s auto industry recorded a 5.1% drop in overall sales in Q1 FY26, according to SIAM data. The decline was primarily driven by weak performance in the two-wheeler and passenger car segments. However, gains in utility vehicles, passenger vehicle exports, and three-wheeler sales helped cushion the impact. Looking ahead, SIAM maintains a cautiously optimistic outlook for Q2, backed by expectations of festive demand, a normal monsoon, and lower repo rates. Yet, concerns remain over production disruptions due to China’s restrictions on rare-earth magnet supplies.
PV sales dip 1.4% in Q1 FY26; two-wheelers slump, UVs shine
Passenger vehicle (PV) sales reached 10.11 lakh units in April–June 2025, marking a slight 1.4% year-on-year decline. Within the PV category, passenger car sales dropped 11.2%, while utility vehicles (UVs) defied the downturn with a 3.8% growth, now contributing 66% of total PV sales. Van sales remained nearly unchanged.
The two-wheeler segment saw a sharper fall, down 6.2% to 46.74 lakh units. Motorcycle sales declined by 9.2% and mopeds by 10.9%, while scooters remained relatively steady, registering just a 0.2% dip.
Three-wheeler sales hit an all-time high of 1.65 lakh units in Q1 FY26, with a marginal 0.1% uptick. Growth was driven by passenger carriers, though goods carriers and e-rickshaws witnessed declines.
CV sales slip slightly; pv and two-wheeler exports hit new highs in Q1 FY26
Commercial vehicle (CV) sales declined marginally by 0.6% to 2.23 lakh units in Q1 FY26. Despite the dip, the public transport segment showed resilience, with medium and heavy passenger carriers growing 6.6% and LCV passenger carriers rising 8.8%.
On the export front, momentum was strong. Passenger vehicle (PV) exports surged 13.2% year-on-year to a record 2.04 lakh units, fueled by demand from Latin America, the Middle East, Japan, Sri Lanka, and Nepal. Two-wheeler exports also saw robust growth, jumping 23.2% to 11.4 lakh units during the quarter.
Commenting on sales data of Q1 of 2025-26, Mr Shailesh Chandra, President, SIAM said, “The performance of the Auto industry was relatively flat, though the retail registration for Passenger Vehicles, Two-Wheelers and Three-Wheelers were marginally higher than the previous Q1. Overall sentiments across categories have remained subdued so far, even as the industry continues to navigate supply side challenges. With the upcoming festival season coupled with the benefits of RBI repo rate cuts, we expect consumer sentiments to improve.”
Commenting on the performance of Q1 of 2025-26, Mr Rajesh Menon, Director General, SIAM said, “Sales of Passenger Vehicles in Q1 of 2025-26 de-grew by (-) 1.4%, posting sales of 1.01 million units as compared to Q1 of previous year. Sales of Three-Wheelers in Q1 of 2025-26 grew marginally by 0.1% compared to last year, with 1.65 Lakh units, which is the highest ever in Q1. Two-Wheelers registered a de-growth of (-) 6.2% in this Quarter, compared to last year, with sales of 4.67 million units while Commercial Vehicles de-grew marginally by (-) 0.6% in Q1, compared to Q1 of last financial year, with sales of 2.23 Lakh units.”
India’s car sales to dealers drop to 18-month low in June, SIAM data shows
Indian automakers’ car sales to dealers slid to an 18-month low in June, data from an industry body showed on Tuesday, amid weak demand in urban areas. Car makers delivered 312,849 units to dealers last month, the Society of Indian Automobile Manufacturers said in a statement, down from 337,757 units a year before
Car dispatches hit 18-month low in June amid weak urban demand: SIAM
Car sales to dealers in India dropped to an 18-month low in June, according to data released by the Society of Indian Automobile Manufacturers (SIAM). Automakers dispatched 3,12,849 units during the month, down from 3,37,757 units in June last year, as urban demand remained sluggish.
