India’s automobile industry delivered a record performance in the October–December quarter of FY2025-26 and the calendar year 2025, while closing December on a strong note, driven by policy-led affordability, festive demand, and easing financing conditions, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday.
Passenger Vehicles Lead Growth
Passenger vehicle sales rose 20.6% year-on-year to 12.76 lakh units in Q3FY26, marking the segment’s highest-ever third-quarter performance. For the full calendar year 2025, passenger vehicle sales reached a record 44.90 lakh units, up 5.0% from 2024. December 2025 alone saw passenger vehicle sales of 3,99,216 units, a 26.8% increase compared with December 2024.
SIAM attributed the growth to improved affordability following GST rate reductions, personal income tax relief, repo rate cuts by the Reserve Bank of India, and renewed consumer optimism during the festive season. Exports of passenger vehicles also hit record levels, rising 11.7% to 2.25 lakh units in Q3FY26 and 16.0% to 8.63 lakh units for the full calendar year, driven by demand from the Middle East, Africa, and Latin America.
Two-Wheelers Cross 20 million Units
Two-wheeler sales climbed 16.9% year-on-year to a record 5.70 million units in Q3FY26. For the calendar year 2025, the segment crossed the 20-million mark, posting 20.50 million units, up 4.9% from 2024. December 2025 witnessed a sharp rise of 39.4%, with 15,41,036 units sold, led by scooters and motorcycles. Exports of two-wheelers rose 24.3% in Q3FY26 and 24.2% for the full calendar year, supported by improving African markets and steady demand in South Asia.
Three-Wheelers and Commercial Vehicles Post Robust Growth
Three-wheeler sales increased 14.0% year-on-year to 2.15 lakh units in Q3FY26. The full-year 2025 marked record sales of 7.88 lakh units, up 8.2%. December 2025 saw sales of 61,924 units, a 17.4% rise, supported by higher passenger mobility and improved financing options.
Commercial vehicle sales rose 21.5% year-on-year to 2.90 lakh units in Q3FY26—the highest-ever for a third quarter. Calendar year sales reached a record 10.28 lakh units, up 7.7%.
Positive Outlook for Q4FY26
SIAM President Shailesh Chandra described 2025 as a landmark year for the industry, citing broad-based growth across segments and double-digit export expansion. SIAM Director General Rajesh Menon noted that the industry enters Q4FY26 with strong momentum, expecting steady demand driven by year-end sales, healthy booking pipelines, and the impact of interest rate cuts.
While remaining watchful of geopolitical developments, SIAM expects FY2025-26 to close on a positive growth trajectory, underpinned by stable macroeconomic conditions and continued policy support.
