India auto sales rise across segments in FY2025-26 as EV registrations reach 2.5m
SIAM reported higher domestic sales and exports across passenger vehicles, two-wheelers, three-wheelers and commercial vehicles in FY2025-26. EV registrations rose 24.7% year on year to 2.5 million units, while passenger-vehicle sales increased 7.9% to 4.6 million.
What happened
Society of Indian Automobile Manufacturers (SIAM) · SIAM reported record FY2025-26 domestic sales across passenger vehicles, two-wheelers, three-wheelers and
Key facts
- Auto industry contribution exceeded Rs 22.75 lakh crore
- About 15% of India GST collections
- More than 30 million direct and indirect jobs
- Passenger vehicle sales: 4.6 million units, up 7.9% in FY2025-26
- Passenger vehicle exports: 0.91 million units, up 17.5%
- Two-wheeler domestic sales: 21.71 million units, up 10.7%
- Two-wheeler exports: 5.18 million units, up 23.4%
- Three-wheeler domestic sales: 840,000 units, up 12.8%
- Three-wheeler exports: 460,000 units, up 50.1%
- Commercial vehicle domestic sales: 1.08 million units, up 12.6%
- Commercial vehicle exports: 95,000 units, up 17.4%
- EV registrations: 2.5 million units, up 24.7% from 1.97 million
Why this matters
Rapid EV registration growth alongside strong two- and three-wheeler exports makes Indian EV ecosystems, export-oriented component suppliers and charging networks attractive partnership and acquisition targets.
What to watch
- Monthly retail registrations versus wholesale dispatches and dealer inventory days.
- Changes to central or state EV incentives, battery-manufacturing support and charging policy.
- Battery-cell prices, lithium and other critical-mineral costs, and local-cell production ramp-ups.
- Rural income indicators, monsoon conditions, consumer-loan delinquencies and vehicle-finance approval rates.
- Fuel prices and interest-rate moves that affect operating-cost comparisons and vehicle affordability.
- Export order trends, freight rates, currency movements and import-policy changes in key destination markets.
- EV charging uptime, charging-station additions and reported battery safety incidents.
- OEMs are likely to accelerate launches in affordable electric two-wheelers, compact EVs and fleet-oriented three-wheelers.
- Dealers will expand EV service bays, battery diagnostics, charging partnerships and used-vehicle financing programs.
- Auto-component makers will prioritize batteries, motors, power electronics, thermal systems and lightweight materials while reducing exposure to legacy-only supply chains.
- Manufacturers with export exposure will add capacity selectively and seek new distribution agreements in Africa, Latin America and South Asia.
- Financiers may broaden EV-specific lending and residual-value products, especially for commercial fleets and last-mile operators.