India auto sector posts record FY26 sales and exports; EV registrations rise 24.7%
SIAM said India’s auto industry contributed more than Rs 22.75 lakh crore and supported over 30 million jobs in FY2025-26. Sales and exports grew across vehicle segments, while EV registrations reached 2.5 million units as E20 compliance and PM E-DRIVE support cleaner-mobility adoption.
What happened
Society of Indian Automobile Manufacturers (SIAM) · SIAM said Indian auto sales and exports hit records across passenger vehicles, two-wheelers, three-wheelers
Key facts
- Auto sector contribution exceeded Rs 22.75 lakh crore
- About 15% of India's GST collections
- More than 30 million direct and indirect jobs
- Passenger-vehicle sales: 4.6 million units in FY2025-26, up 7.9%
- 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: 8.4 lakh units, up 12.8%
- Three-wheeler exports: 4.6 lakh units, up 50.1%
- Commercial-vehicle domestic sales: 10.80 lakh units, up 12.6%
- Commercial-vehicle exports: 95,000 units, up 17.4%
- EV registrations: 2.5 million units in FY2025-26 versus 1.97 million in FY2024-25, up 24.7%
Why this matters
The sector’s scale-up creates attractive targets for acquisitions and partnerships in EV components, battery ecosystems, charging networks, export logistics and E20-compatible technology.
What to watch
- PM E-DRIVE disbursement pace, subsidy revisions and eligibility changes.
- E20 rollout progress, fuel-price spreads and any policy shift affecting ICE versus EV ownership economics.
- Public and residential charging-station additions, utilization rates and electricity-tariff changes.
- Monthly EV registrations by two-wheeler, three-wheeler, passenger vehicle and commercial-vehicle segments.
- Auto-loan approval rates, interest rates, delinquency trends and OEM discounting.
- Battery-price movements, domestic cell-manufacturing output and imported-component availability.
- Festival-season vehicle bookings and dealer inventory levels.
- Expand EV-adjacent assortments including portable chargers, charging cables, helmets, riding gear, tyre-care products, dashcams and vehicle-cleaning categories.
- Build partnerships with OEM dealers, charging operators, insurers and NBFCs to offer bundled ownership solutions and referral-led commerce.
- Prioritize tier-2 and tier-3 markets for EV accessory inventory, service kiosks and localized online fulfillment.
- Use financing, exchange and subscription offers to capture price-sensitive first-time EV buyers.
- Track fleet and commercial-EV demand, which can create recurring bulk demand for charging equipment, maintenance supplies and replacement parts.