Big year for Indian Auto sector! Sales jump 10% to record high in FY26

India’s automobile industry closed FY26 on a strong note, registering its highest-ever annual sales across all segments. According to the Society of Indian Automobile Manufacturers (SIAM), total vehicle wholesales in the country stood at 2,82,65,519 units, marking a 10.4 per cent increase over the 2,56,09,399 units recorded in FY25.

What makes this performance significant is that every major segment passenger vehicles, commercial vehicles, two-wheelers and three-wheelers posted record sales in the same financial year, something that last happened in 2018-19. SIAM President Shailesh Chandra said the industry started the year on a modest note but gathered pace towards the end, closing FY26 at an all-time high.

Passenger vehicle wholesales rose to 46,43,439 units in FY26, up 7.9 per cent from 43,01,848 units in the previous fiscal. The two-wheeler segment continued to dominate volumes, with sales climbing 10.7 per cent to 2,17,05,974 units. Within this, motorcycle sales grew 6.6 per cent to 1,30,64,789 units, while scooters saw a sharper jump of 18.5 per cent, reaching 81,17,945 units.


Commercial vehicles also witnessed healthy growth, with sales increasing 12.6 per cent to 10,79,871 units. Three-wheelers followed a similar trend, recording 8,36,231 units in FY26, up 12.8 per cent compared to the previous year.

Industry experts attribute this growth to improved consumer sentiment driven by GST 2.0 reforms and multiple repo rate cuts during the year. At the same time, exports also saw strong momentum, rising 24 per cent to 66,47,685 units in FY26 from 53,62,884 units in FY25.

Looking ahead, the outlook for FY27 remains positive, backed by strong domestic demand and stable macroeconomic fundamentals. However, SIAM cautioned that geopolitical tensions, especially in West Asia, could impact supply chains, fuel prices and overall production if the situation persists.