Q1 sees auto sales rising 21% YoY, momentum to continue in Q2 with festive purchase boost

High double-digit growth was recorded across all vehicle segments in Q1 of 2026-27, compared to the year ago period. 

Overall total vehicle sales at 73,81 656 units surged 21.4% in the April-June 2026 quarter as compared to the same quarter in the previous year as per data released by Society of Indian Automobile Manufacturers (SIAM) on Wednesday (July 15, 2026). 

Passenger Vehicles, Commercial Vehicles and Three-Wheelers posted their highest-ever Q1 sales in the April to June 2026 quarter while all vehicle segments, including Two-Wheelers, recorded their highest-ever exports during the quarter. 

Commenting on the performance of Q1 of 2026-27, Rajesh Menon, Director General, SIAM, said, “Passenger Vehicle sales reached 1.27 million units, registering a robust 25.9% growth over Q1 of 2025-26. Three-Wheeler 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,” he added. 

“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,” said Shailesh Chandra, President, SIAM.

“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,” he added. 

For the month of June Passenger Vehicles2 sales were 3,88,144 units up 24.1% YoY,

Three-wheeler sales were 77,951 units, up 26.1% YoY and Two-wheeler sales were 18,51,400 units up 18.6% YoY.

On the outlook for the second quarter of this financial year, SIAM said “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.”

As the industry gets into the festive season, it is expected that the steady demand should continue, it added. 

“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 othercommodities, industry continues to closely monitor the very recent developments,” it said.