India's Auto Sales Hit Record High in Q3, Driven by Festive Demand & Policy

The passenger vehicle segment recorded its best-ever Q3 sales at 12.76 lakh units in Q3, marking a sharp growth of 20.6 per cent compared with the same period last year.

The segment also achieved its highest-ever calendar year sales of 44.90 lakh units during January to December 2025, registering a growth of 5 per cent over the previous year.

A renewed sense of optimism among buyers during the festive season further boosted demand.

Passenger vehicle exports also hit a record high in Q3 FY26 at 2.25 lakh units, growing 11.7 per cent year-on-year.

For the full calendar year 2025, exports stood at 8.63 lakh units, up 16 per cent, with steady demand from markets such as the Middle East, Africa and Latin America.

The two-wheeler segment also posted a historic quarter, with Q3 FY26 sales touching an all-time high of 5.70 million units, crossing the five-million mark for the first time.

This represented a growth of 16.9 per cent compared with Q3 FY25. During the January-December 2025 period, two-wheeler sales crossed 20 million units at 20.50 million, growing 4.9 per cent year-on-year.

Improved affordability following the rollout of GST 2.0, higher disposable incomes, multiple repo rate cuts and income tax relief in 2025 supported demand.

Exports of two-wheelers also surged, reaching a record 1.37 million units in Q3 FY26, a jump of 24.3 per cent.

For the full calendar year, exports stood at 4.94 million units, up 24.2 per cent, driven by improving economic conditions in Africa, steady demand from South Asia and a broa

Three-wheeler sales also reached new highs in Q3 FY26, with volumes rising to 2.15 lakh units, marking a growth of 14 per cent, mainly led by the passenger carrier segment.

For the January-December 2025 period, three-wheeler sales stood at 7.88 lakh units, up 8.2 per cent over the previous year.

Exports of three-wheelers grew sharply, rising 70.1 per cent in Q3 FY26 to about 1.27 lakh units.

For the full calendar year 2025, exports reached 4.26 lakh units, a growth of 42.7 per cent, supported by higher shipments to Sri Lanka and African nations.

The commercial vehicle segment also delivered its strongest Q3 performance on record, with sales of 2.90 lakh units in Q3 FY26.

Calendar year sales for January to December 2025 stood at a record 10.28 lakh units, growing 7.7 per cent compared with 2024.

Commercial vehicle exports rose to 0.25 lakh units in Q3 FY26, up 13.6 per cent year-on-year.

For the full calendar year, exports stood at 0.92 lakh units, growing 27.1 per cent, with neighbouring countries and the Middle East remaining key markets.

- IANS