India’s auto industry saw mixed results in Q2 FY2025–26, with total vehicle sales showing strong export performance and robust gains in two- and three-wheelers, while passenger vehicle demand began to recover late in the quarter amid GST relief and festive buying.

• Passenger vehicle sales totaled 1.04 million units in Q2 FY2025–26, down -1.5% YoY, though September sales rose +4.4% MoM on improved sentiment and GST cuts; utility vehicles declined -2.1% YoY while passenger cars were flat.

• Passenger vehicle exports hit a record 242,000 units, up +23% YoY, underscoring strong overseas demand.

• Two-wheeler sales reached 5.56 million units, up +7.4% YoY, with scooters (+12.4%) outpacing motorcycles (+5.0%); exports also reached a record 1.3 million units (+25% YoY).

• Three-wheeler sales rose +9.8% YoY to a record 229,000 units, driven by passenger carriers and stronger urban transport demand; exports surged +51% YoY to 123,000 units.

• Commercial vehicle sales grew +8.3% YoY to 240,000 units, supported by freight, logistics, and construction activity; exports increased +22% YoY to 24,000 units.

• For September 2025 alone, production totaled 3.07 million vehicles, with domestic sales of 372,458 passenger vehicles, 84,077 three-wheelers, and 2.16 million two-wheelers, each posting record monthly levels despite GST 2.0 taking effect only in the final nine days.

• Industry leaders expect continued growth in H2 FY2025–26, supported by a longer festive season, healthy agricultural output, and stronger rural and urban demand under stable macroeconomic conditions.