India’s automobile industry closed FY26 on a strong note, registering its highest ever annual sales across all segments. According to the Society of Indian Automobile Manufacturers (SIAM), total wholesale vehicle sales in the country stood at 2,82,65,519 units, up 10.4 percent from 2,56,09,399 units recorded in FY25.What makes this performance significant is that every major segment of passenger vehicles, commercial vehicles, two-wheelers and three-wheelers posted record sales in the same financial year, which was last seen in 2018-19. SIAM President Shailesh Chandra said the industry started the year on a modest note but picked up sharply towards the end, closing FY26 at an all-time high.Wholesale sales of passenger vehicles rose to 46,43,439 units in FY26, up 7.9% from 43,01,848 units in the previous fiscal. The two-wheeler segment dominated the volume, with sales up 10.7 percent to 2,17,05,974 units. Within this, motorcycle sales grew by 6.6 per cent to 1,30,64,789 units, while scooter sales grew by a sharp 18.5 per cent to 81,17,945 units.
Commercial vehicles also saw healthy growth, with sales up 12.6 per cent to 10,79,871 units. Three-wheelers followed a similar trend, recording 8,36,231 units in FY26, up 12.8% over the previous year.Industry experts attribute the growth to improved consumer sentiment due to GST 2.0 reforms and several repo rate cuts during the year. At the same time, exports also saw strong momentum, rising 24% to 66,47,685 units in FY26 from 53,62,884 units in FY25.Looking ahead, the outlook for FY27 remains positive, supported by robust domestic demand and stable economic fundamentals. However, SIAM warned that geopolitical tensions, particularly in West Asia, could affect supply chains, fuel prices and overall production if the situation persists.
