Business EconomyPosted at: Apr 14 2026 3:14PM


Auto industry hits record high in FY26; all segments post strong growth: SIAM

New Delhi, April 14 (UNI) The Indian automobile industry registered its best-ever performance in the financial year 2025-26, with all vehicle segments recording the highest annual sales, driven by strong demand, policy support and improving macroeconomic conditions.
Passenger vehicle sales rose to a record 46.43 lakh units, marking a growth of 7.9 per cent over the previous year. The segment benefited from improved affordability, lower financing costs, and a sharp rise in electric vehicle adoption.
Two-wheelers led the growth momentum, with sales touching an all-time high of 2.17 crore units, up 10.7 per cent, surpassing the previous peak. The segment saw strong traction in the second half of the year, supported by policy reforms and rising consumer demand.
Commercial vehicles also achieved their highest-ever sales at 10.80 lakh units, registering a growth of 12.6 per cent, aided by increased economic activity, infrastructure spending and better financing conditions.
Three-wheelers recorded a new peak of 8.36 lakh units, growing 12.8 per cent, driven by demand for last-mile mobility and expansion of electric autorickshaws.
Exports remained robust across categories, with passenger vehicles, two-wheelers and three-wheelers witnessing strong growth, reflecting increasing global acceptance of Indian vehicles.
The January–March quarter capped the year on a high note, with all segments reporting their highest-ever quarterly sales and double-digit growth. Passenger vehicles grew 13.2 per cent to 13.16 lakh units, commercial vehicles rose 18.9 per cent to 3.25 lakh units, three-wheelers increased 26.7 per cent to 2.27 lakh units, while two-wheelers surged 26.4 per cent to 57.73 lakh units.
Society of Indian Automobile Manufacturers (SIAM) Director General Rajesh Menon said each vehicle segment recorded its highest-ever sales during the January–March quarter, registering strong double-digit growth compared to the same period last year.
He noted that the broad-based growth across passenger vehicles, commercial vehicles, three-wheelers and two-wheelers reflects the improving demand environment and positive market sentiment.
The industry remains optimistic about sustaining growth momentum in 2026-27 on the back of strong domestic demand and stable economic fundamentals, though concerns over global uncertainties, including geopolitical tensions and fuel price volatility, persist.
UNI SAS AKU
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