Automobile Sales Rise 18.2% to Record 83.88 Lakh Units in Q2 FY27
- IBEF
- October 16, 2026
India’s domestic automobile sales across four major vehicle segments increased by 18.2% year-on-year to a record 83.88 lakh units in the July–September quarter of FY27, according to the Society of Indian Automobile Manufacturers (SIAM). Passenger vehicle sales grew 30.7% to 13.61 lakh units, while two-wheeler sales increased 15.2% to 64.33 lakh units. Three-wheeler sales rose 23.6% to 2.85 lakh units, and commercial vehicle sales grew 28.7% to 3.09 lakh units. All four segments recorded their highest-ever second-quarter sales for a financial year. The industry attributed the performance to improved affordability following GST 2.0, sustained rural and urban demand, healthy freight movement, infrastructure-led economic activity and a gradual vehicle replacement cycle. Utility vehicles continued to lead the passenger vehicle segment, accounting for 68% of total sales, with sales increasing 34.2% year-on-year. Passenger car sales rose 24.9%, while scooter sales and motorcycle sales increased by 27.7% and 7.4%, respectively.
Automobile exports also recorded growth across several categories during the quarter. Two-wheeler exports increased 27.7% to 16.5 lakh units, reaching their highest-ever second-quarter level, while three-wheeler exports rose 30.4% to 1.6 lakh units. Commercial vehicle exports surged 72.5% to more than 41,000 units. However, passenger vehicle exports declined 5.2% to 2.29 lakh units, primarily due to a higher base and logistics constraints associated with the West Asia crisis. SIAM Director General Mr. Rajesh Menon highlighted the record sales performance across major vehicle segments. SIAM President Mr. Shenu Agarwal expressed cautious optimism about sustaining growth during the festive season. The industry expects demand in the second half of FY27 to benefit from new vehicle launches, infrastructure spending, fleet replacement and rising demand for last-mile mobility, while higher inflation, potential interest rate increases and geopolitical uncertainties remain key risks.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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