Q1 sees auto sales rising 21% YoY, momentum to continue in Q2 with festive purchase boost
India's automobile sector saw a 21.4% year-on-year growth in the first quarter of 2026-27, driven by strong domestic demand and lower financing costs. Industry leaders remain optimistic about continued growth despite potential geopolitical headwinds.
Why it matters
The automotive sector is a key indicator of consumer confidence and economic health in India, reflecting broader trends in manufacturing and retail.
India’s automobiles sector witnessed a high double-digit year-on-year (YoY) growth across all vehicle segments in the first quarter (Q1) of 2026-27 on the back of supportive domestic demand, aided by lower tax rates and softer financing costs.
Overall total vehicle sales surged 21.4% YoY to 73,81 656 units April-June 2026 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.”
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