New Delhi, July 15
Passenger Vehicles and Two-Wheelers sales are expected to experience an uplift, helped by the upcoming festive season typically serves as a demand driver, according to the recent report by the Society of Indian Automobile Manufacturers (SIAM).
Additionally, the report reveals that an above-normal monsoon is likely to aid rural income recovery, which is expected to be a positive signal for two-wheelers and entry-level vehicles that rely heavily on rural demand.
The auto sector is expected to witness improved affordability and boosted consumer sentiment in the coming months, boosted by the RBI's cumulative repo rate cuts of 100 basis points over the past six months are expected to gradually ease borrowing costs.
However, supply-side challenges, particularly China's export licensing requirement for rare earth magnets, remain a concern for OEMs.
The report also highlights that the passenger vehicle segment crossed a milestone of 1 million mark in Q1 of 2025-26, specifically 1.01 million units. This is the 2nd time in a row in Q1 in the last 2 years that the sales for passenger vehicles crossed the 1 million mark.
According to the report, the Utility Vehicles (UVs) continued to drive the passenger vehicle segment, growing to 66 per cent market share and posting a 3.8 per cent growth in Q1 2025-26.
In contrast, passenger cars experienced an 11.2 per cent degrowth. Passenger vehicle exports hit a record 2.04 lakh units in Q1 2025-26, a 13.2 per cent increase, fuelled by strong demand in the Middle East and Latin America, and revival in neighbouring and FTA markets.
The Two-Wheeler segment recorded 4.67 million units in Q1 2025-26, a 6.2 per cent de-growth, attributed to inventory correction. Despite wholesale declines, retail registrations for two-wheelers rose by 5 per cent in Q1 due to the marriage season and positive demand. Two-wheeler exports also saw significant growth of 23.2 per cent, reaching 1.14 million units.
Three-wheelers achieved their highest-ever Q1 sales at 1.65 lakh units in 2025-26, a marginal 0.1 per cent growth, primarily driven by the Passenger Carrier sub-segment and increased economic activity. Exports in this segment grew by 34.4 per cent. Commercial Vehicles experienced a marginal 0.6 per cent degrowth in Q1, with sales of 2.23 lakh units, though exports grew by 23.4 per cent.
— ANI
Reader Comments
While urban sales are picking up, I hope manufacturers don't ignore rural markets. My father in our village in UP has been waiting 3 months for a basic motorcycle spare part. If monsoon helps farm incomes, two-wheeler companies should improve their rural service networks too.
The shift to UVs is interesting but concerning. Our cities are already choked with traffic and these bigger vehicles consume more fuel. Govt should incentivize compact EVs instead of these gas-guzzlers. #ThinkGreen
As a working woman in Bangalore, I'm happy to see more UV options with better safety features. But manufacturers should focus on better mileage - petrol prices are still too high! Maybe the China supply issue will push them to source locally 🤞
The export numbers are impressive! Shows 'Make in India' is working. But domestic sales need more push - why can't we have better EMI schemes like other countries? Even with rate cuts, down payments are too steep for young buyers.
Working in auto finance sector here in Mumbai. The inventory correction in 2-wheelers was much needed. Now with good monsoon and marriage season, we're seeing 20% more loan applications than last quarter. Hope this trend continues!
N Nisha Z < We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.