Summary:

With the help of GST 2.0 changes, repo rate reductions, and updated income tax slabs that boosted affordability and sentiment, India's automobile industry posted its highest-ever yearly sales across all key vehicle categories in FY 2025–2026. SIAM reports that sales of passenger vehicles increased by 8% to 4.64 million, commercial vehicles by 12.6% to 1.08 million, three-wheelers by 12.8% to 0.84 million, and two-wheelers by 10.7% to 21.71 million. Due to a robust post-pandemic rebound, the year saw the first industry-wide sales record since FY19. India's position as a global automobile powerhouse was reinforced by a 24% increase in exports to 6.65 million units. Despite persistent geopolitical and commodity price uncertainties, growth is anticipated to increase investments across car components, EV systems, financing, and mobility industries.

Source: IBEF

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