Synopsis

India's passenger vehicle sales rose 24% year-on-year to 388,144 units in June, marking the third consecutive month of strong double-digit growth. Two-wheelers and three-wheelers also posted robust gains, helping the auto industry achieve record first-quarter sales despite geopolitical uncertainties, supported by steady demand, lower financing costs and new model launches.

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Car sales last month grew by 24% year-on-year to 388,144 units amid sustained consumer demand in the local market.

Two-wheeler sales went up by 19%, three-wheelers by 26% in the same period (see chart), show data available with industry body Society of Indian Automobile Manufacturers (SIAM).

While sales of scooters went up by 39.1% to 744,823 units in the month under review, those of motorcycles grew by 6.4% to 1,056,422 units.

June is the third consecutive month that passenger vehicle sales rose in strong double-digits this fiscal.

In fact, passenger vehicles, commercial vehicles and three-wheelers posted their highest ever Q1 sales in April-June 2026. While passenger vehicle sales grew 26% to 1.27 million units last quarter, those of three-wheelers and commercial vehicles went up by 30% (to 0.21 million units) and 18% (to 0.27 million units), respectively. Two-wheeler sales rose 20% to 5.63 million units in the same period.

Shailesh Chandra, President, SIAM, said, “The strong performance across segments in Q1 of 2026-27, despite headwinds arising from disruptions in West Asia, can be attributed to supportive domestic demand, aided by lower GST rates, softer financing costs, low base effect and introduction of new models.”

SIAM said rainfall in late June and first week of July has reduced the monsoon deficiency to some extent till date. Inflation has also been reasonable and has not impacted the demand in Q1. As the industry gets into the festive season, it is expected that the steady demand should continue. However, commodity costs continue to remain a pressure point for the industry. While the earlier ceasefire in West Asia eased the supply of gas, fuels and other commodities, industry continues to closely monitor the very recent developments.

“While overall consumer sentiment and demand remain steady at present, the industry continues to closely monitor geopolitical developments and the progress of the monsoon, given its implications for agricultural output and rural demand”. Chandra added.