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India Auto Recovery: How Festive Demand Sparked Q2 Turnaround Amid Mixed Trends

India's automobile industry displayed mixed performance in Q2 FY2025-26 with clear recovery signals emerging. While passenger vehicles saw marginal decline, September brought 4.4% growth thanks to GST cuts and festive demand. Two-wheelers and three-wheelers showed particularly strong performance with record exports across segments. The upcoming festive season is expected to drive further growth with Navratri already showing 15-35% retail sales increases.

Key Points: India Auto Industry Q2 Mixed Trends Show Recovery Signs SIAM

  • Passenger vehicle exports surged 23% to record 2.42 lakh units in Q2
  • Two-wheeler segment grew 7.4% with scooters leading at 12.4% growth
  • Three-wheelers achieved highest-ever Q2 sales at 2.29 lakh units, up 9.8%
  • Commercial vehicles posted 8.3% growth driven by strong freight demand
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India's automobile industry showed mixed trends in Q2, with recovery signs visible across key segments: SIAM

India's auto sector shows mixed Q2 results with two-wheeler growth hitting 7.4% and passenger vehicle exports reaching record highs amid festive recovery signs.

"Green shoots of recovery visible across key segments - Society of Indian Automobile Manufacturers"

New Delhi, October 15

India's automobile industry showed mixed trends in the second quarter (Q2) of the Financial Year (FY)2025-26, with green shoots of recovery visible across key segments, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Wednesday.

The SIAM data shows that the passenger vehicle (PV) sales reached 1.04 million units during July-September 2025, reflecting a marginal de-growth of 1.5 per cent year-on-year.

However, September sales climbed 4.4 per cent, buoyed by GST reductions, improved consumer sentiment, and early festive demand. Utility Vehicles (UVs), although still dominating with two-thirds share, dipped by 2.1 per cent. Notably, PV exports hit an all-time high of 2.42 lakh units--a 23 per cent surge over last year.

The Two-Wheeler segment emerged strong with 5.56 million units sold, marking a 7.4 per cent growth. Scooters led the charge with a 12.4% rise, while motorcycles followed at 5 per cent. The segment also celebrated record-high exports at 1.3 million units, up 25 per cent YoY.

Three-Wheelers registered their highest-ever Q2 sales of 2.29 lakh units, growing 9.8 per cent, powered by the passenger carrier sub-segment and easier financing. Exports soared 51 per cent, touching a six-year high of 1.23 lakh units.

Commercial Vehicles posted 8.3 per cent growth at 2.40 lakh units, driven by strong freight demand and urban logistics. Exports grew 22 per cent to 0.24 lakh units.

Various sectoral reports have predicted Dhanteras and Deepawali to deliver peak festive sales for both PVs and 2Ws.

Auto retail sales witnessed a robust recovery during the Navratri festival, with growth ranging between 15-35 per cent year-on-year (YoY) across passenger vehicle (PV) and two-wheeler (2W) segments, driven by strong festive sentiment, according to a report by Centrum Institutional Research.

The report highlighted that retail demand in the PV segment across dealerships grew between 15-22 per cent YoY, led by major automakers including Maruti Suzuki India (MSIL), Tata Motors (TTMT), Honda Motor India (HMI), and Mahindra & Mahindra (M&M).

- ANI

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Reader Comments

R
Rohit P
The export numbers are really impressive! 23% growth in passenger vehicles and 25% in two-wheelers shows our manufacturing quality is being recognized globally. Make in India is working! 🇮🇳
A
Aditya G
While the overall numbers look positive, I'm concerned about the 1.5% de-growth in passenger vehicles. With rising fuel prices and expensive EVs, many middle-class families are postponing car purchases. The industry needs more affordable options.
M
Meera T
The three-wheeler growth at 9.8% is fantastic! Auto-rickshaws are the backbone of last-mile connectivity in our cities. Easier financing options are helping many drivers become entrepreneurs. 🚗
S
Sarah B
The festive season numbers during Navratri show how important cultural factors are for the Indian economy. Dhanteras and Diwali will definitely push these numbers even higher! ✨
K
Karthik V
Commercial vehicles growing at 8.3% indicates strong economic activity. When trucks and delivery vehicles are selling well, it means goods are moving across the country. Good sign for the economy overall! 📈

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