Auto Sales up 18.2% in July-Sept, PV Sales Rise 30.7%

Domestic sales of passenger vehicles in India rose 30.7% year on year to 13,60,687 units in the July-September quarter (Q2 of FY2026-27), according to data released today by the Society of Indian Automobile Manufacturers (SIAM). Sales in all four main segments (passenger vehicles, two-wheelers, three-wheelers and commercial vehicles) were the highest recorded for a second quarter, SIAM said.

Total domestic sales across categories were 83,87,938 units in the quarter, up 18.2% from 70,98,111 a year earlier. For April-September, total sales were 1,58,00,017 units, up 19.8%.

SIAM attributed the growth to lower prices after the GST 2.0 changes, a low base from last year, financing support, rural and urban demand, and infrastructure spending. Exports of passenger vehicles fell, while exports of the other segments rose.

Passenger vehicles

Utility vehicles made up about 68% of passenger vehicle sales in the quarter, with 9,19,068 units, up 34.2%. Passenger cars sold 3,98,631 units (up 24.9%) and vans 42,988 units (up 15.3%).

Passenger vehicle exports were 2.29 lakh units, down 5.2%. SIAM cited a high base and logistics constraints linked to the West Asia crisis.

In September, passenger vehicle sales were 4,54,574 units, up 21.8% from 3,73,347 a year earlier. Excluding Tata Motors, whose September figure is included only in the total, sales were 3,85,764 units, compared with 3,13,680 in September 2025.

For April-September, passenger vehicle sales were 26,37,067 units, up 28.3%.

Two-wheelers

Two-wheeler sales were 64,32,842 units in the quarter, up 15.2%. Scooter sales rose 27.7% to 26,61,039 units, motorcycles rose 7.4% to 36,19,853 units, and mopeds rose 15.4% to 1,51,950 units.

Two-wheeler exports were 1.65 million units, up 27.7% and the highest for a second quarter. SIAM said growth was supported by a low base, GST-related price reductions and a replacement cycle in markets with varying levels of vehicle ownership.

September sales were 24,63,103 units, up 13.5%. Scooters rose 34.1% to 9,95,576 units, while motorcycles rose 2.8% to 14,12,010 units. April-September sales were 1,20,86,812 units, up 17.6%.

Three-wheelers

Three-wheeler sales were 2,85,342 units in the quarter, up 23.6%. Passenger carriers sold 2,40,137 units (up 22.9%) and goods carriers 39,913 units (up 33.8%). E-rickshaw sales fell 7.6% to 3,760 units, and e-cart sales fell 3.0% to 1,532 units.

SIAM said growth was driven by a step-up in internal combustion engine (ICE) three-wheelers after the GST changes, a shift toward L5 electric vehicles, and growth in cargo vehicles. Exports were 1.6 lakh units, up 30.4%, the highest for a second quarter.

September sales were 98,162 units, up 16.0%. April-September sales were 5,01,879 units, up 26.3%.

Commercial vehicles

Commercial vehicle sales were 3,09,063 units in the quarter, up 28.7%. Medium and heavy commercial vehicles (M&HCVs) sold 1,21,171 units (up 37.0%), and light commercial vehicles (LCVs) sold 1,87,892 units (up 23.8%). Within M&HCVs, goods carriers rose 38.4% to 1,02,908 units. Within LCVs, goods carriers rose 23.0% to 1,72,127 units.

Exports were more than 0.41 lakh units, up 72.5%. SIAM cited infrastructure spending, freight movement, replacement of older trucks and buses, and fleet expansion. April-September sales were 5,74,255 units, up 23.8%.

Total production of passenger vehicles, three-wheelers, two-wheelers and quadricycles in September was 34,52,554 units. Production across all categories was 1,05,57,400 units in July-September and 1,99,46,193 units in April-September.

SIAM expects positive growth in the second half of FY2026-27 (October to March), though growth rates may moderate as comparisons are made against a higher base. It listed the festive season, new launches, infrastructure spending and fleet replacement as supports for demand. For commercial vehicles, it also cited demand from the PARIVARTAN scheme.

The industry body said inflation that could lead to higher interest rates, and geopolitical developments, are risks. It said higher interest rates could moderate three-wheeler demand.

"The Indian automotive industry delivered a strong performance in the first half of FY2026-27," SIAM President Shenu Agarwal said. Rajesh Menon, SIAM's Director General, said Q2 sales in each of the four main segments were the highest ever for the quarter.