India’s auto industry had a subdued Q1 FY26 as PVs stayed flat, two-wheelers dropped, and exports showed strong gains.
India’s automobile industry witnessed a tepid first quarter in FY2025-26, with total wholesales reaching 312,849 units in June, down 7.4% year-on-year, according to SIAM. Despite a stable performance in some categories, overall growth remained sluggish due to weakening demand by quarter-end.
Passenger vehicle (PV) sales stood at 1.01 million units in Q1, declining 1.4% Y-o-Y. Utility Vehicles, however, continued to expand, making up 66% of total PV sales and growing by 3.8%, while passenger car sales fell 11.2%. PV exports surged 13.2%, hitting a Q1 record of 204,000 units, led by rising demand from the Middle East and South Asia.
The two-wheeler segment declined 6.2% to 4.67 million units due to inventory corrections, though retail sales rose 5%, aided by seasonal demand. Two-wheeler exports jumped 23.2%.
Three-wheelers recorded their highest-ever Q1 sales at 165,000 units with 0.1% growth, while commercial vehicle sales declined slightly by 0.6%. Exports of both categories rose significantly.
Industry leaders expect Q2 to improve, supported by festive demand, better financing, and benefits from RBI rate cuts, despite ongoing supply concerns.
Source: Business Today
