The Society of Indian Automobile Manufacturers (SIAM) has published the industry sales data for the first quarter of the new financial year, reporting a 5.1 per cent decline in sales. The industry body reported a downturn in sales across almost all segments, with just three-wheelers staying in the green with a 0.1 per cent growth.
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Passenger vehicle sales declined 1.4 per cent year-on-year from 10,26,006 units in Q1 FY2025 to 10,11,882 units in Q1 FY2026. SIAM, however, noted that this marked a second consecutive year of passenger vehicle sales, crossing the 10-lakh unit mark in the first quarter. Passenger car sales declined 11.2 per cent from 3,41,293 units to 3,02,991 units while SUVs continued to post sales growth with 6,70,256 units sold – up 3.8 per cent. Van sales were relatively flat at 38,635 units (down 0.7 per cent).
The two-wheeler market reported a 6.2 per cent drop in sales, with sales of scooters, motorcycles and mopeds all witnessing a year-on-year decline. Scooter sales dipped 0.2 per cent from 16,64,994 units to 16,61,752 units, while motorcycle sales were down 9.2 per cent to 29,03,449 units. Moped sales dropped from 1,22,715 units to 1,09,361 units (down 10.9 per cent).
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Commercial vehicle and three-wheeler sales, meanwhile, were relatively flat, posting a decline of 0.6 per cent and a growth of 0.1 per cent, respectively.
Commenting on sales data of Q1 of 2025-26, Shailesh Chandra, President, SIAM, said, “The performance of the Auto industry was relatively flat, though the retail registration for Passenger Vehicles, Two-Wheelers and Three-Wheelers were marginally higher than the previous Q1. Overall sentiments across categories have remained subdued so far, even as the industry continues to navigate supply-side challenges. With the upcoming festival season coupled with the benefits of RBI repo rate cuts, we expect consumer sentiments to improve.”
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However, while sales in the domestic market were lacklustre, exports surged. Cumulative exports in the quarter grew by 22.2 per cent year on year in Q1 FY2026. Passenger vehicle exports grew a strong 13.2 per cent from 1,80,483 units to 2,04,330 units. Two-wheeler exports, meanwhile, were up 23.2 per cent to 11,36,942 units despite a decline in scooter exports from 1,55,980 units last year to 1,44,647 units. Commercial vehicle exports, meanwhile, were up 23.4 per cent while three-wheeler exports grew a notable 34.4 per cent.
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Moving to the month of June, total passenger vehicle sales declined 7.4 per cent year-on-year, declining from 3,37,757 units in 2024 to 3,12,849 units last month. Two-wheeler sales were down 3.4 per cent from 16,14,154 units to 15,59,851 units. Scooter sales dipped 1.7 per cent to 5,33,875 units while motorcycle sales declined from 10,30,906 units in June 2024 to 9,92,627 units last month (down 3.7 per cent). Moped sales were down a sharper 17.4 per cent from 40,397 units to 33,349 units.
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Exports in June grew 28.1 per cent on the back of strong growth posted by the two-wheeler and three-wheeler segments. Passenger car exports were relatively flat, posting a 0.6 per cent growth from 76,297 units to 76,719 units. Two-wheeler exports, meanwhile, were up 34.2 per cent from 2,88,967 units to 3,87,762 units, while three-wheeler exports grew 42.7 per cent to 37,188 units.
