Robust utility vehicle demand, GST 2.0-led momentum and lower financing costs keep passenger vehicle dispatches strong, with industry expecting record sales in calendar 2026
India's automobile industry recorded its strongest-ever first quarter, with record sales across key segments, while SIAM expects festive demand and easier financing to sustain momentum
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 10.3 lakh 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 2,14,339 units as compared to 1,65,211 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 2.65 lakh un
Domestic passenger vehicle dispatches from companies to dealers rose 24.1 per cent year-on-year to 3,88,144 units in June this year, industry body SIAM said on Wednesday. Passenger vehicle dispatches stood at 3,12,851 units in June 2025, Society of Indian Automobile Manufacturers (SIAM) said in a statement. 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.
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The war in West Asia may have adverse implications for the Indian automotive industry and could pose near-term challenges for the sector, having an indirect impact on vehicle demand, Society of Indian Automobile Manufacturers President Shailesh Chandra said on Tuesday. While the automobile industry concluded the 2025-26 year from a position of strength, developments arising from the ongoing West Asian conflict pose certain risks, he told reporters here. "Recent uncertainties arising from the West Asia conflict need to be closely monitored. The evolving geopolitical situation may have adverse implications for automotive production, input and commodity prices, fuel prices and freight rates, which could pose near-term challenges for the industry and may also indirectly impact the demand requirement," he said. Sharing an update on the current situation faced by the domestic auto industry, Chandra said, "Supply disruptions have led to shortages of propane and ethylene, critical inputs
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