Car sales rose in strong double-digits year-on-year last month, albeit on a low base, as manufacturers ramped up dispatches to build stocks anticipating robust customer demand during the festivals of Navratri and Dussehra this month.

As per data released by industry body Society of Indian Automobile Manufacturers (SIAM), as many as 454,574 cars, sedans and utility vehicles were sold last month, which is an increase of 22% over the year-ago period. Two-wheeler sales in the period under review grew 13.5% to 2.46 million units. Three-wheeler dispatches went up by 16% to 98,162 units in September.

Domestic sales only

Source : SIAM

Overall, in the first half of the ongoing financial year, passenger vehicle sales went up by 28.3% to 2.64 million units. Commercial vehicle sales grew 23.8% to 564,255 units in the period under review. Two-wheeler and three-wheeler sales rose by 17.6% (to 12.09 million units) and by 26.3% (to 501,879 units), respectively.

Shenu Agarwal, President, SIAM said, “The Indian automotive industry delivered a strong performance in the first half of FY2026- 27, following a robust second quarter and a strong September 2026. This stellar performance across all segments of the automobile industry has been supported by improved affordability following GST 2.0, resilient rural and urban demand, healthy freight movement, infrastructure-led economic activity, and a gradual replacement cycle across vehicle segments.”

Utility vehicles continued to show strong traction with sales growing by 31.4% between April-Sep FY27. Sales of hatchbacks and sedans went up by 23.1% in the same period. With this, utility vehicles accounted for 68% of all cars sold in the local market.

New vehicle technologies, alternate powertrains like CNG, EV, Hybrids helps we build demand. Agarwal confirmed, “The electric vehicle ecosystem also continues to mature with multiple offerings, improving charging infrastructure and supportive policy measures. At the same time, alternative fuel technologies are witnessing increasing acceptance and are expected to play an important role in India's sustainable mobility transition.”

In the two-wheeler segment, growth was driven by demand for scooters whose sales increased by 29.4% to 4.87 million units in the first half of the fiscal. Motorcycle sales grew 10.4%, on a larger base, to 6.93 million units in the same period.

Automakers are optimistic about the demand momentum sustaining in the ongoing festive period, though challenges persist on account of geopolitical uncertainties. Demand fundamentals remain supportive, aided by the festive season, new product launches, last-mile mobility requirements, infrastructure spending and fleet replacement.

Agarwal informed, “Continued investments in infrastructure, sustained economic growth, and rising adoption of cleaner and more efficient mobility solutions are expected to support industry growth through the second half of 2026-27.” Growth rates may, however, moderate as the sector begins to grow against a higher base.