Passenger vehicle dispatches hit record high in Q1 at 12,73,811 units: Siam

Domestic passenger vehicle dispatches from companies to dealers clocked a record 12,73,811 units in the first quarter of this fiscal year, registering a growth of 25.9 per cent driven by strong domestic demand despite the headwinds from the West Asia war, industry body Siam said on Wednesday.

Passenger vehicle dispatches in the first quarter of last fiscal year stood at 10,11,884, Society of Indian Automobile Manufacturers (Siam) said in a statement.

The previous highest dispatches of PVs in the first quarter of a fiscal year was posted in Q1 of 2024-25 at 1.03 million units.

Two-wheelers posted a growth of 20.3 per cent in the first quarter at 56,28,675 units as against 46,77,990 units in the year-ago period, Siam said.

 

Three-wheelers also clocked highest-ever Q1 dispatches at 214,339 units as compared to 165,211 units in the same period last fiscal year, a growth of 29.7 per cent, it added.

In Q1 of 2026-27, commercial vehicles also posted its highest-ever sales with 265,000 units posting a growth of 18.3 per cent compared to Q1 of last year, 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 President Shailesh Chandra said.

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, he added.

In June, domestic passenger vehicle dispatches from companies to dealers rose 24.1 per cent year-on-year to 388,144 units in June this year as compared to 312,851 units in June 2025, Siam said.

Total two-wheeler sales rose 18.6 per cent to 18,51,400 units last month as against 15,61,283 units in June last year, it added.

Three-wheeler dispatches to dealers were up 26.1 per cent last month at 77,951 units as against 61,828 units in the year-ago period, it added.

On the outlook for the second quarter of FY27, Siam said as the industry gets into the festive season, it is expected that the steady demand should continue, although 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," the auto industry body said.

Overall, the vehicle cost has remained lower due to GST 2.0 impact, along with availability of financing at lower rates, which are continuing to drive demand, it noted.

Rainfall in late June and the first week of July has reduced the monsoon deficiency to some extent till date and inflation has also been reasonable and has not impacted the demand in Q1, Siam said.