Car firms likely to witness sales growth crawling at 1-2% in FY26

Two-wheeler industry's volume growth expected to be in 8-10 pc in FY26

Major Indian carmakers are bracing for sluggish domestic passenger vehicle (PV) sales growth of just 1-2 per cent in 2025-26, citing weak demand, affordability concerns, declining entry-level car sales, the fading post-pandemic surge, inflation, rupee depreciation against the dollar, and geopolitical uncertainties, Business Standard has learnt.

 

At an internal meeting on Wednesday, members of the Society of Indian Automobile Manufacturers (Siam) reached a consensus that PV sales could inch up just 0.07 per cent in the current financial year and grow only marginally by 1-2 per cent in the next. In FY24, domestic PV sales stood at 3.89 million units.