Passenger Vehicle Sales in India Surge 21% in Q3, Hit Record High

New Delhi - India’s automobile industry posted a robust performance in the third quarter of FY2025–26, with all major vehicle segments recording their highest-ever Q3 sales, driven by strong festive demand, supportive policy measures and improved affordability.

The passenger vehicle segment delivered its best-ever Q3 performance, with sales reaching 12.76 lakh units, a sharp increase of 20.6 per cent compared to the same period last year.

The segment also achieved its highest-ever calendar year sales, with 44.90 lakh units sold between January and December 2025, reflecting a year-on-year growth of 5 per cent. A renewed sense of consumer optimism during the festive season further supported demand.

Passenger vehicle exports also touched a record high in Q3 FY26 at 2.25 lakh units, marking an 11.7 per cent annual growth. For the full calendar year 2025, exports stood at 8.63 lakh units, up 16 per cent, driven by sustained demand from markets such as the Middle East, Africa and Latin America.

The two-wheeler segment also registered a historic quarter, with Q3 FY26 sales reaching an all-time high of 5.70 million units, crossing the five-million mark for the first time. This represented a growth of 16.9 per cent compared to Q3 FY25.

During January–December 2025, two-wheeler sales crossed 20 million units to reach 20.50 million, growing 4.9 per cent year-on-year. Improved affordability following the rollout of GST 2.0, rising disposable incomes, multiple repo rate cuts and income tax relief in 2025 supported demand.

Two-wheeler exports surged as well, touching a record 1.37 million units in Q3 FY26, a jump of 24.3 per cent. For the full calendar year, exports stood at 4.94 million units, up 24.2 per cent, aided by improving economic conditions in Africa, steady demand from South Asia and broader global recovery.

Three-wheeler sales also scaled new highs in Q3 FY26, with volumes rising to 2.15 lakh units, marking a growth of 14 per cent, largely driven by the passenger carrier segment. For January–December 2025, three-wheeler sales stood at 7.88 lakh units, up 8.2 per cent over the previous year.

Exports of three-wheelers recorded a sharp rise, increasing 70.1 per cent in Q3 FY26 to around 1.27 lakh units. For the full calendar year 2025, exports reached 4.26 lakh units, registering a growth of 42.7 per cent, supported by higher shipments to Sri Lanka and African markets.

The commercial vehicle segment also reported its strongest-ever Q3 performance, with sales of 2.90 lakh units in Q3 FY26. Calendar year sales from January to December 2025 stood at a record 10.28 lakh units, growing 7.7 per cent compared to 2024.

Commercial vehicle exports rose to 0.25 lakh units in Q3 FY26, up 13.6 per cent year-on-year. For the full calendar year, exports stood at 0.92 lakh units, registering a growth of 27.1 per cent, with neighbouring countries and the Middle East remaining key markets.

— IANS