Three-Wheeler Sales Reach Record High in Q3 2025-26 with 14% Growth

Three-wheeler sales in India reached their highest ever third-quarter performance with 2.15 lakh units sold in Q3 of 2025-26, marking a 14.0% growth compared to the same quarter last year, primarily driven by the passenger carrier sub-segment amid rising urban and semi-urban transportation demand.

The segment's robust performance extends beyond the quarterly figures, with the industry also recording its highest ever calendar year sales of 7.88 lakh units during January-December 2025, registering an 8.2% increase over the corresponding period in 2024. This milestone underscores the sustained momentum in the three-wheeler market across both domestic and international markets.

Domestic Market Performance

The three-wheeler segment has emerged as a critical component of India's transportation ecosystem, serving the essential mobility needs of millions across the country. The 14.0% growth in Q3 of 2025-26 represents a significant acceleration in a segment that has traditionally been a barometer of economic activity in tier-2 and tier-3 cities.

The passenger carrier sub-segment has been the primary growth driver within the three-wheeler category, reflecting the increasing demand for last-mile connectivity solutions in rapidly urbanizing areas. This sub-segment serves as an affordable and efficient transportation mode for daily commuters, particularly in areas where traditional public transport infrastructure remains limited or inadequate.

The calendar year performance of 7.88 lakh units sold between January and December 2025 marks a new peak for the industry, demonstrating consistent month-on-month traction despite seasonal variations typically observed in the automotive sector.

Key Growth Drivers

The three-wheeler segment's performance has been attributed to multiple converging factors that have created favorable market conditions. Increased economic activity across urban and semi-urban areas has generated higher demand for both passenger and goods transportation, with three-wheelers serving as a cost-effective solution for businesses and individual operators.

Rising movement of people and goods has become a defining characteristic of India's evolving economic landscape, with three-wheelers playing an instrumental role in facilitating this mobility. The vehicles serve dual purposes, addressing both personal transportation needs and commercial requirements for small-scale logistics and delivery services.

Strengthening personal and commercial mobility needs for meeting transportation requirements in urban and semi-urban areas have positioned three-wheelers as an indispensable part of the transportation matrix. These vehicles offer operational flexibility, lower ownership costs, and easier maneuverability in congested traffic conditions compared to larger commercial vehicles.

Financial accessibility has emerged as another crucial factor supporting market growth. Easier financing options have made three-wheeler ownership more attainable for aspiring entrepreneurs and small business operators who view these vehicles as income-generating assets. Non-banking financial companies and banks have expanded their lending portfolios in this segment, offering tailored loan products with competitive interest rates and flexible repayment terms.

Increased replacement sales have also contributed to the growth momentum, indicating a maturing market where existing operators are upgrading their vehicles to newer, more efficient models. This replacement cycle reflects growing income levels among three-wheeler operators and the availability of technologically advanced vehicles with better fuel efficiency, comfort features, and compliance with updated emission norms.

Export Market Surge

The export segment of three-wheelers has demonstrated exceptional performance, outpacing domestic growth rates significantly. Three-wheeler exports posted strong growth of 70.1% in Q3 of 2025-26, with approximately 1.27 lakh units shipped to international markets compared to Q3 of the previous year.

For the full calendar year January-December 2025, three-wheeler exports reached 4.26 lakh units, posting a growth of 42.7% compared to the same period in 2024. This substantial expansion in export volumes reflects the growing acceptance of Indian three-wheelers in international markets.

Increased exports to Sri Lanka and African nations have contributed significantly to this growth trajectory. Sri Lanka, a traditional market for Indian three-wheelers, has seen rising demand as the country's economy gradually stabilizes and transportation needs increase. African nations, particularly in East and West Africa, have emerged as high-potential markets where three-wheelers are increasingly being adopted as affordable transportation solutions for both passenger and cargo movement.

The export success also highlights the competitive positioning of Indian three-wheeler manufacturers in global markets, where their products offer a compelling combination of affordability, fuel efficiency, durability, and ease of maintenance—attributes particularly valued in developing economies with similar infrastructure and usage patterns as India.

The three-wheeler industry's performance in Q3 of 2025-26 and across calendar year 2025 demonstrates the segment's resilience and growth potential, supported by favorable domestic economic conditions and expanding international market opportunities.