India’s auto industry expects steady demand in Q2 FY26-27, buoyed by the upcoming festive season. This follows a record-breaking Q1 where PVs, CVs, and three-wheelers saw their highest-ever sales, driven by lower prices and easier financing.
India’s automobile industry is expected to see steady demand in the second quarter of FY26-27 as the festive season begins. This follows a strong first quarter, during which all vehicle segments recorded double-digit growth. Passenger vehicles, commercial vehicles, and three-wheelers achieved their highest-ever first-quarter sales, according to the Society of Indian Automobile Manufacturers (SIAM).
SIAM said lower vehicle prices following the impact of GST 2.0, along with easier availability of financing at lower interest rates, continued to support demand during the April-June quarter. It added that reasonable inflation and improvement in the monsoon situation during late June and the first week of July did not affect demand in the first quarter. However, the industry continues to monitor commodity prices and recent developments in West Asia, which remain key areas of concern.
Record-Breaking Q1 Sales and Exports
Passenger vehicles recorded their highest-ever Q1 sales at 1.27 million units, registering 25.9 per cent growth over the same period last year. Two-wheeler sales rose 20.3 per cent to 5.63 million units, while three-wheeler sales increased 29.7 per cent to 2.14 lakh units. Commercial vehicle sales also reached a record 2.65 lakh units, up 18.3 per cent compared to Q1 of last year.
Exports also remained strong during the quarter, with passenger vehicles, two-wheelers, three-wheelers and commercial vehicles all recording their highest-ever Q1 export volumes. Passenger vehicle exports rose 8.8 per cent to 2.22 lakh units, while two-wheeler exports grew 36.6 per cent, three-wheeler exports increased 57.7 per cent and commercial vehicle exports were up 43.3 per cent over the corresponding quarter last year.
SIAM Commentary on Market Performance
Commenting on the performance, SIAM President Shailesh Chandra said, “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 added that the strong performance was supported by lower GST rates, softer financing costs, a low base effect and the launch of new models, while the industry continues to closely monitor geopolitical developments and the progress of the monsoon because of their impact on agricultural output and rural demand.
SIAM Director General Rajesh Menon said the industry recorded “high double-digit growth” across all vehicle segments during the quarter, reflecting broad-based demand across the market. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)