INDUSTRY
Passenger vehicle sales hit record 46.43 lakh units in FY26, revved up by GST cuts, I-T breaks
- IBJ Bureau
- Apr 15, 2026
Passenger vehicle segment posted its highest-ever annual sales of 46.43 lakh units in 2025-26, marking 7.9 per cent growth over the sales during the previous financial year.
The Society of Indian Automobile Manufacturers (SIAM), which put out the numbers, attributes the upbeat sales to improved affordability following GST rate cuts, higher purchasing power due to Income Tax (I-T) relief and lower financing costs from successive Repo Rate cuts by the RBI.
A more than 80 per cent rise in electric passenger vehicle registrations in FY26 further supported growth.
Passenger vehicle exports reached a record 9.05 lakh units in 2025-26, up by 17.5 per cent from 2024-25, with steady demand across West Asia, Africa and Latin America.
For FY26, two-wheeler sales rose to a record 2.17 crore units, up by 10.7 per cent, surpassing the previous peak of FY19.
Two-wheeler exports also hit a record at 51.8 lakh units in FY26, registering growth of 23.4 per cent over the previous year.
Annual sales of three-wheelers reached a high of 8.36 lakh units in FY26, marking a 12.8 per cent increase over the year-ago numbers.
The commercial vehicle segment also recorded its highest-ever annual sales of 10.80 lakh units, rising by 12.6 per cent during the period under review.
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