Key Highlights from Q1 (April–June 2026)
a) Passenger vehicles
- Passenger Vehicles posted its highest ever sales of Q1, in FY 2026-27, with 1.27 million units, with 25.9% growth over Q1 of FY 2025-26.
- The share of Utility Vehicles (UVs) in the Passenger Vehicle segment has now grown to about 68%, with UVs posting a growth of 28.6%, followed by passenger Cars with 21.3% in Q1 of 2026-27, over Q1 of 2025-26.
- Passenger Vehicles saw their highest ever exports in Q1 of 2026-27 of 2.22 Lakh units registering a growth of 8.8% over Q1 of 2025-26. Export growth in this segment was driven by good demand from Latin America though there is an impact on exports to Middle East. Rising demand from Europe & Japan has also contributed to the overall uptick.
b) Two-Wheelers
- The Two-Wheeler segment posted sales of 5.63 million units in Q1 of 2026-27, posting a growth of 20.3%, compared to the same period of last year.
- The growth in the scooter segment was higher compared to Motorcycles in TwoWheelers in Q1 FY2026-27 and the segment continued with the momentum created due to reduced GST.
- Highest Q1 exports of Two-Wheelers was recorded in this quarter with 1.55 million units, with a considerable growth of 36.6%, compared to Q1 of 2025-26. Demand in South Asia and Africa have been steady, while growth has been driven by markets in Latin America.
c) Three Wheelers
- In Q1 of 2026-27, Three-Wheelers posted its highest ever Q1 sales with 2.14 Lakh units, along with a significant growth of 29.7%, compared to Q1 of 2025-26, driven by good growth in both Passenger Carriers and Goods Carriers.
- Increased economic activity and easier financing options are creating urban demand.
- 1.51 Lakh units of Three-Wheeler were exported, which is the highest ever in Q1, with a strong growth of 57.7%, as compared to last year’s Q1.
d) Commercial Vehicles
- In Q1 of 2026-27, Commercial Vehicles also posted its highest ever sales with 2.65 Lakh units posting a decent growth of 18.3% compared to Q1 of last year.
- Within the Commercial Vehicle segment, the Passenger vehicle segment posted marginal growth, while the Goods segment posted double digit growth backed by continued replacement demand and demand from the mining and cement sector.
- Exports of Commercial Vehicles posted a growth of 43.3% in Q1 of 2026-27, compared to Q1 of previous year, with exports of around 0.28 Lakh units, which is also the highest ever exports in any Q1, due to recent demand of Pick-ups in Southeast Asia.
Growth Outlook for Q2 (July – Sept 2026)
- Overall, the vehicle cost has remained lower due to GST 2.0 impact, along with availability of financing at lower rates, which are continuing to drive demand.
- Rainfall in late June and first week of July has reduced the monsoon deficiency to some extent till date. Inflation has also been reasonable and has not impacted the demand in Q1.
- As the industry gets into the festive season, it is expected that the steady demand should continue.
- However, commodity costs continue to remain a pressure point for the industry,
- While the earlier ceasefire in West Asia eased the supply of gas, fuels and other commodities, industry continues to closely monitor the very recent developments.
Monthly Performance: June 2026
Production: The total production of Passenger Vehicles , Three Wheelers, Two Wheelers and Quadricycle in the month of June 2026 was 30,15,528 units
Domestic Sales:
- Passenger Vehicles2 sales were 3,88,144 units in June 2026.
- Three-wheeler sales were 77,951 units in June 2026.
- Two-wheeler sales were 18,51,400 units in June 2026.
Quarterly Performance: Q1-April – June 2026
Production: Total production of Passenger Vehicles , Commercial Vehicles , Three Wheelers, Two Wheelers and Quadricycle in April – June 2026 was 93,60,297 units.
Domestic Sales:
- Passenger Vehicles3 sales were 12,73,811 units in April – June 2026.
- Commercial Vehicles4 sales were 2,64,831 units in April – June 2026.
- Three-wheeler sales were 2,14,339 units in April – June 2026.
- Two-wheeler sales were 56,28,675 units in April – June 2026.
Commenting on sales data of Q1 of 2026-27, Mr Shailesh Chandra, President, SIAM said, “Passenger Vehicles, Commercial Vehicles and Three-Wheelers posted their highest-ever Q1 sales, while all vehicle segments, including Two-Wheelers, recorded their highest-ever exports during the quarter. The strong performance across segments in Q1 of 2026-27, despite headwinds arising from disruptions in West Asia, can be attributed to supportive domestic demand, aided by lower GST rates, softer financing costs, low base effect and introduction of new models. While overall consumer sentiment and demand remain steady at present, the industry continues to closely monitor geopolitical developments and the progress of the monsoon, given its implications for agricultural output and rural demand.”
Commenting on the performance of Q1 of 2026-27, Mr Rajesh Menon, Director General, SIAM said, “High double-digit growth was recorded across all vehicle segments in Q1 of 2026- 27, compared to the corresponding quarter of the previous financial year. Passenger Vehicle sales reached 1.27 million units, registering a robust 25.9% growth over Q1 of 2025-26. ThreeWheeler sales grew by 29.7% to 2.14 lakh units, while Two-Wheeler sales increased by 20.3% to 5.63 million units. Commercial Vehicle sales also posted a healthy 18.3% growth, reaching 2.65 lakh units during the quarter compared to the same period last year.”
