Indian Auto Sector Reports Record Q1 2026-27 Sales Growth

The Society of Indian Automobile Manufacturers (SIAM) reported that India's automobile sector achieved a 21.4% year-on-year increase in total vehicle sales during the first quarter of 2026-27. Total sales from April to June 2026 reached 7,381,656 units, with passenger vehicles, commercial vehicles, and three-wheelers all hitting their highest-ever first-quarter sales. Record export levels were also reached across all vehicle segments.

Specific segment growth for the quarter included passenger vehicles at 25.9%, three-wheelers at 29.7%, two-wheelers at 20.3%, and commercial vehicles at 18.3%. June data showed sustained momentum, with passenger vehicle dispatches rising 24.1% to 388,144 units and two-wheeler dispatches increasing 18.6% to 1,851,400 units. Overall vehicle exports in June grew 34% year-on-year.

SIAM attributed the surge to supportive domestic demand fueled by lower vehicle costs under GST 2.0, softer financing costs, and the launch of new models. While industry officials expect demand to remain steady entering the festive season in the second quarter, they remain cautious regarding commodity prices and geopolitical disruptions in West Asia. Additionally, the industry is monitoring monsoon progress to gauge its impact on agricultural output and rural demand.