India auto sales rise across segments in FY2025-26, SIAM says
SIAM reported record domestic sales across passenger vehicles, two-wheelers and commercial vehicles in FY2025-26, alongside stronger exports and a 24.7% rise in EV registrations to 2.5 million units.
What happened
Society of Indian Automobile Manufacturers (SIAM) · SIAM said India’s auto industry posted record FY2025-26 domestic sales across passenger vehicles,
Key facts
- Indian auto industry contribution exceeded Rs 22.75 lakh crore
- About 15% of India's GST collections
- More than 30 million direct and indirect jobs
- Passenger-vehicle domestic 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 in FY2024-25
Why this matters
The accelerating EV base and growth across every major vehicle segment strengthen the case for partnerships or acquisitions in charging, batteries, components, financing and aftermarket services.
What to watch
- Monthly SIAM wholesales versus dealer-retail registrations and inventory days by segment.
- Festival-season booking trends, cancellation rates, discounts and dealer incentive intensity.
- Rural wage growth, monsoon distribution, agricultural output and entry-level two-wheeler financing approvals.
- Auto-loan interest rates, delinquencies, loan-to-value ratios and used-vehicle residual values.
- EV subsidy or tax-policy changes, charging-station rollout, battery-price trends and state-level registration data.
- Commercial-vehicle fleet utilization, freight rates, infrastructure spending and fuel-price movements.
- Export orders and shipment trends, particularly for two-wheelers and small vehicles.
- Increase dealer inventory selectively in fast-turning two-wheeler, compact SUV, commercial-vehicle and EV categories rather than broad-based stocking.
- Expand finance, insurance, maintenance and exchange offers to capture higher vehicle throughput and improve conversion among price-sensitive buyers.
- Prioritize service-bay capacity, technician hiring and parts availability; the expanding vehicle parc should create recurring aftersales revenue beyond new-vehicle sales.
- Accelerate EV-ready retail capabilities, including trained sales staff, battery diagnostics, charging partnerships and transparent resale-value programs.
- Monitor supplier bottlenecks in semiconductors, batteries, tyres and critical electronics as stronger domestic volumes and exports tighten capacity.
- Use commercial-vehicle demand as a lead indicator for logistics, construction, industrial activity and fleet-finance opportunities.