India Auto Sales Surge 18.2% to Record 83.88 Lakh Units in Q2
SIAM reports record-breaking Q2 sales for all vehicle segments, including passenger, two-wheelers, and commercial vehicles, driven by GST 2.0 and demand.
The Indian automotive sector has achieved a historic milestone, with domestic sales across all major vehicle segments hitting unprecedented heights during the second quarter of the 2026-27 fiscal year. According to the latest data from the Society of Indian Automobile Manufacturers (SIAM), total sales climbed 18.2 per cent year-on-year, reaching a massive 83.88 lakh units between July and September 2026.
This surge marks a significant turning point for the industry, as every single major category—ranging from passenger cars to heavy commercial vehicles—recorded its highest-ever second-quarter performance.
All Segments Hit Historic Highs
The growth was widespread, reflecting a robust recovery and expansion across different modes of transport. The breakdown of the quarterly performance reveals the depth of this market expansion:
- Passenger Vehicles: Sales jumped by 30.7 per cent, totaling 13.61 lakh units.
- Two-Wheelers: This segment saw a 15.2 per cent increase, reaching 64.33 lakh units.
- Commercial Vehicles: Sales grew by 28.7 per cent to 3.09 lakh units.
- Three-Wheelers: Recorded a 23.6 per cent rise, hitting 2.85 lakh units.
“Q2 of FY 2026–27 recorded the highest ever Q2 sales of all the segments, including Passenger Vehicle, Commercial Vehicle, Three-Wheeler and Two-Wheeler,” stated Rajesh Menon, Director General of SIAM.
Drivers of Growth: GST 2.0 and Infrastructure
Industry experts attribute this remarkable performance to a combination of policy shifts and economic momentum. The implementation of GST 2.0 has reportedly improved affordability for consumers, while resilient demand from both rural and urban sectors has provided a steady floor for sales.
Furthermore, the industry pointed to several macro-economic tailwinds:
- Infrastructure Development: Increased economic activity driven by massive infrastructure projects.
- Freight Movement: Healthy movement of goods supporting commercial vehicle demand.
- Replacement Cycles: A gradual trend of consumers replacing older vehicles with newer models.
Utility Vehicles and Scooters Lead the Charge
Within the passenger vehicle segment, Utility Vehicles (UVs) continue to be the undisputed kings of the road, accounting for a staggering 68 per cent of total sales. UV sales grew by 34.2 per cent year-on-year, significantly outpacing the 24.9 per cent growth seen in standard passenger cars.
In the two-wheeler category, the shift in consumer preference is evident as scooters led the growth with a 27.7 per cent increase, while motorcycle sales saw a more modest rise of 7.4 per cent.
Export Trends: A Mixed Bag
While the domestic market roared, the export sector showed contrasting results. Two-wheeler exports saw a massive 27.7 per cent jump to 16.5 lakh units, marking a record Q2 level. Three-wheeler exports also climbed 30.4 per cent, and commercial vehicle exports saw an explosive 72.5 per cent growth.
However, passenger vehicle exports faced a setback, declining by 5.2 per cent to 2.29 lakh units. SIAM attributed this dip to a higher base from the previous year and logistical hurdles stemming from the ongoing crisis in West Asia.
Outlook for the Second Half of FY2026-27
Looking ahead, the industry remains optimistic but maintains a level of caution. The upcoming festive season, coupled with a flurry of new vehicle launches and continued infrastructure spending, is expected to sustain the momentum.
“Industry looks forward to the festive season for the continued momentum while remaining cautiously optimistic due to prevailing geo-economic uncertainties,” said SIAM President Shenu Agarwal.
Despite the record-breaking numbers, the industry body warned that potential headwinds—such as rising inflation, possible interest rate hikes, and geopolitical instability—could impact future demand and moderate growth rates.