India’s automobile industry closed FY26 on a strong note, recording its highest ever annual sales across all segments. According to the Society of Indian Automobile Manufacturers (SIAM), total vehicle wholesales in the country stood at 2,82,65,519 units, 10.4 percent higher than the 2,56,09,399 units recorded in FY2025.What makes this performance significant is that each major segment passenger vehicles, commercial vehicles, two-wheelers and three-wheelers recorded record sales in the same financial year, which last happened in 2018-19. SIAM President Shailesh Chandra said the industry started the year at a modest pace, but eventually picked up momentum and closed FY26 at an all-time high.Passenger vehicle wholesales increased to 46,43,439 units in fiscal year 2026, up 7.9 percent from 43,01,848 units in the previous fiscal year. The two-wheeler segment continued to dominate as sales grew 10.7 percent to 2,17,05,974 units. In this, motorcycle sales increased by 6.6 percent to 1,30,64,789 units, while scooter sales increased by 18.5 percent to 81,17,945 units.
Commercial vehicles also saw good growth, with sales rising 12.6 percent to 10,79,871 units. Three-wheelers also followed a similar trend and recorded 8,36,231 units in FY26, up 12.8 percent from the previous year.Industry experts attribute this growth to improved consumer sentiment driven by GST 2.0 reforms and multiple repo rate cuts during the year. Additionally, exports also saw strong momentum, growing by 24 percent to 66,47,685 units in FY2026 from 53,62,884 units in FY2025.Looking ahead, the outlook for FY27 remains positive, supported by strong domestic demand and stable macroeconomic fundamentals. However, SIAM cautioned that if the situation continues to be the same, geopolitical tensions, especially in West Asia, could impact supply chains, fuel prices and overall production.
(TagstoTranslate)Indian auto sector(T)SIAM(T)Automobile sales FY26(T)Passenger vehicles(T)Record vehicle sales 2026(T)Commercial vehicles growth(T)Two-wheeler segment(T)Three-wheeler sales(T)GST 2.0 reforms
