Domestic automobile sales jumped 18.2% year-on-year to 83.88 lakh units in July-September 2026. According to SIAM, this represents the highest-ever Q2 sales for passenger vehicles, two-wheelers, three-wheelers and commercial vehicles.
Domestic automobile sales across major vehicle segments rose 18.2 per cent 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).
Segment-wise Sales Performance
SIAM said passenger vehicle sales grew 30.7 per cent to 13.61 lakh units in the second quarter of FY2026-27, while two-wheeler sales increased 15.2 per cent to 64.33 lakh units. Three-wheeler sales rose 23.6 per cent to 2.85 lakh units, and commercial vehicle sales grew 28.7 per cent 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”.
Factors Behind the Surge
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.
Utility Vehicles and Scooters Dominate
Within the passenger vehicle category, utility vehicles remained the dominant segment, accounting for 68 per cent of sales. Utility vehicle sales rose 34.2 per cent year-on-year, while passenger car sales increased 24.9 per cent during the quarter. Scooters led two-wheeler growth, with sales rising 27.7 per cent, compared with a 7.4 per cent increase in motorcycle sales.
Export Performance
Exports also recorded gains in several categories. Two-wheeler exports rose 27.7 per cent to 16.5 lakh units, marking the highest-ever second-quarter level. Three-wheeler exports increased 30.4 per cent to 1.6 lakh units, while commercial vehicle exports grew 72.5 per cent to more than 41,000 units. Passenger vehicle exports, however, declined 5.2 per cent to 2.29 lakh units, mainly due to a higher base and logistics constraints linked to the West Asia crisis, SIAM said.
Future Outlook
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)
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