Shifting Gears: Auto Sales See Mixed Performance in Q1 FY26
In the first quarter of FY26, domestic passenger vehicle sales fell by 1.4%, two-wheelers decreased by 6.2%, and commercial vehicles saw a slight drop. However, three-wheeler sales rose marginally. Despite challenges, the upcoming festive season and RBI repo rate cuts are expected to uplift consumer sentiment in the auto sector.
- Country:
- India
The automotive industry witnessed a mixed performance in the first quarter of Fiscal Year 2026. According to the Society of Indian Automobile Manufacturers (SIAM), domestic passenger vehicle sales slid by 1.4% to 1.01 million units compared to the previous year. Two-wheeler sales also experienced a notable decline of 6.2%.
While the commercial vehicle segment saw a marginal 0.6% dip, the three-wheeler market emerged with a slight growth of 0.1%. On the brighter side, passenger vehicle exports reached a record high with a 13.2% increase, driven by demand in the Middle East, Latin America, and Asia, including emerging markets like Sri Lanka and Nepal.
Looking ahead, the industry remains cautiously optimistic with the festive season and RBI's repo rate cuts expected to invigorate consumer demand. However, supply-side challenges, such as China's export licensing on rare earth magnets, pose ongoing concerns for original equipment manufacturers across categories, SIAM noted.
(With inputs from agencies.)
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