Continued investments in infrastructure, sustained economic growth, and rising adoption of cleaner and more efficient mobility solutions are expected to support the automobile industry growth through the second half (H2) of financial year 2026-27 (FY27), Society of Indian Automobile Manufacturers (SIAM) said on Thursday.
Although reported growth rates may moderate as the sector begins to grow against a higher base, the demand fundamentals remain supportive, aided by the festive season, new product launches, last-mile mobility requirements, infrastructure spending and fleet replacement, it said.
According to the latest data shared by SIAM, vehicles wholesales (dispatches to dealers) across categories grew around 20 per cent year-on-year (YoY) to 1,58,00,017 units during April-September period as compared with 1,31,91,741 units in the same period last year.
Similarly, total vehicles sales across categories grew by 18.2 per cent YoY to 83,87,938 units during the July-September quarter, as compared with 70,98,111 units in the same period last year.
Total passenger vehicle (PV) dispatches grew around 31 per cent YoY 13,60,687 units in the domestic market as against 10,41,342 units in Q2 last year. Improved affordability post GST 2.0, lower base of last year, new vehicle technologies including alternate fuels and electric vehicles (EVs) besides strong financing support have helped impressive growth of PVs, SIAM said adding that with rural demand holding and the festive off take being healthy, PV sales have registered healthy growth.
Similarly, total two-wheeler dispatches grew by 15.2 per cent YoY 64,32,842 units during the period as compared with 55,85,699 units in July-September 2025.
The total three-wheeler sales grew by 23.6 per cent YoY to 2,85,342 units as compared with 2,30,907 units in the corresponding period last year. Sales of commercial vehicles (CVs) also saw a growth of 28.7 per cent YoY to 3,09,063 units as compared with 2,40,163 units in the July-September quarter last year.
“The Indian automotive industry delivered a strong performance in the first half of FY2026-27, following a robust second quarter and a strong September 2026. This stellar performance across all segments of the automobile industry has been supported by improved affordability following GST 2.0, resilient rural and urban demand, healthy freight movement, infrastructure-led economic activity, and a gradual replacement cycle across vehicle segments,” Shenu Agarwal, President, SIAM, said.
The EV ecosystem also continues to mature with multiple offerings, improving charging infrastructure and supportive policy measures, he said.
“At the same time, alternative fuel technologies are witnessing increasing acceptance and are expected to play an important role in India’s sustainable mobility transition,” Agarwal said.
Having said that Agarwal also added that the industry also remains cautiously optimistic due to prevailing geo-economic uncertainties.
In the monthly domestic sales, the PV dispatches grew by around 22 per cent YoY to 4,54,574 units in September, as compared with 3,73,347 units in the same month last year.
The total two-wheeler sales grew by 13.5 per cent YoY to 24,63,103 units during the month, as compared with 21,70,100 units in September 2025, the SIAM data indicated.
Total three-wheeler sales also grew by 16 per cent YoY to 98,162 units last month as compared with 84,635 units in September 2025.
Published on October 15, 2026
