India Automobile Sales Hit Record Highs in Q2 FY2026-27

The Society of Indian Automobile Manufacturers (SIAM) reported that domestic automobile sales in India rose 18.2% year-on-year to 83.88 lakh units during the second quarter of FY2026-27. Passenger vehicles, two-wheelers, three-wheelers, and commercial vehicles all achieved their highest-ever second-quarter sales, with passenger vehicle sales growing 30.7% and commercial vehicles increasing 28.7%.

September 2026 continued this trend with double-digit growth across major segments. Passenger vehicle wholesales increased 21.8% to 454,574 units, two-wheeler sales rose 13.5% to 24.63 lakh units, and three-wheeler dispatches grew 16% to 98,162 units. The electric vehicle market also hit a record monthly high in September with 333,634 total retail sales, a 74% year-on-year increase, bringing EV penetration to approximately 13%.

Industry leaders attribute the growth to GST 2.0 affordability, infrastructure-led economic activity, and resilient demand in both urban and rural areas. However, passenger vehicle exports declined 5.2% due to logistics constraints caused by the West Asia crisis. While the industry looks toward the festive season and new launches for continued momentum, officials warned that inflation and geopolitical uncertainties could moderate future demand.