Q1 sees auto sales rising 21% YoY, momentum to continue in Q2 with festive purchase boost
India's automotive sector recorded a 21.4% year-on-year growth in sales during the first quarter of 2026-27. Industry leaders attribute this surge to supportive domestic demand, lower financing costs, and the introduction of new vehicle models.
Why it matters
Strong automotive sales serve as a key indicator of consumer confidence and economic health in the Indian market.
High double-digit growth was recorded across all vehicle segments in Q1 of 2026-27, compared to the year ago period.
Overall total vehicle sales at 73,81 656 units surged 21.4% in the April-June 2026 quarter as compared to the same quarter in the previous year as per data released by Society of Indian Automobile Manufacturers (SIAM) on Wednesday (July 15, 2026).
Passenger Vehicles, Commercial Vehicles and Three-Wheelers posted their highest-ever Q1 sales in the April to June 2026 quarter while all vehicle segments, including Two-Wheelers, recorded their highest-ever exports during the quarter.
Commenting on the performance of Q1 of 2026-27, Rajesh Menon, Director General, SIAM, said, “Passenger Vehicle sales reached 1.27 million units, registering a robust 25.9% growth over Q1 of 2025-26. Three-Wheeler sales grew by 29.7% to 2.14 lakh units, while Two-Wheeler sales increased by 20.3% to 5.63 million units.”
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in