Has India’s Q1 passenger vehicle sales topped one million again?

New Delhi, July 15 (NationPress) India’s passenger vehicle sales have once again surged past the one million mark in the April-June quarter (Q1) of 2025-26, as reported by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday. Exports in this sector witnessed a remarkable double-digit growth, highlighting the resilience of the market.

According to the SIAM statement, Passenger Vehicles, which include utility vehicles and cars, experienced record exports in Q1 of 2025-26 with a total of 2.04 lakh units, marking a growth of 13.2 percent compared to Q1 of 2024-25.

The rise in exports was fueled by stable demand from various markets, particularly strong sales in the Middle East and Latin America. Revitalization in nearby markets like Sri Lanka and Nepal, increased demand from Japan, and growing exports under FTAs such as Australia also contributed to this positive trend.

Additionally, exports of two-wheelers soared to 1.14 million units, reflecting a robust growth of 23.2 percent in Q1 of 2025-26 compared to the same quarter last year. This growth was bolstered by a rebound in nearby markets and a sustained upward trend in key export regions.

Exports of three-wheelers also saw a significant boost, with 0.96 lakh units exported, representing a growth of 34.4 percent in Q1 of 2025-26 compared to the previous year.

The commercial vehicles segment also experienced a strong growth of 23.4 percent in Q1, with around 0.2 lakh units shipped to international markets.

This marks the second consecutive quarter where passenger vehicle sales exceeded the one million mark. However, due to decreased sales in the latter part of the quarter, total sales for Q1 were down by 1.4 percent at 1.01 million units compared to the same quarter in 2024-25.

In the two-wheeler segment, total sales reached 4.67 million units in Q1 of 2025-26, reflecting a decline of 6.2 percent year-on-year, primarily due to inventory adjustments within the industry.

Despite the decrease in wholesale sales, retail registrations for two-wheelers saw a 5 percent increase in Q1, driven by the marriage season and positive consumer sentiment.

The scooter segment's share in two-wheelers rose by 2.15 percent compared to last year in Q1 FY2025-26.

The three-wheeler sector achieved its highest Q1 sales ever with 1.65 lakh units sold in 2025-26, mainly due to the passenger carrier sub-segment.

Factors such as enhanced economic activity supporting transportation and urban demand have been pivotal in the consistent performance of the three-wheeler segment, according to SIAM.

Moreover, the retail registrations in the cargo segment continue to grow, indicative of the rising demand for intracity low-load cargo. Improved financing options have also bolstered this growth, as stated in the report.

Conversely, the commercial vehicles segment experienced a slight decline of 0.6 percent compared to Q1 of the previous year, with sales reaching 2.23 lakh units.

However, within the commercial vehicle segment, sales of passenger vehicles have shown growth, reflecting a sustained demand for public transportation.

Looking forward to Q2, the overall industry outlook remains cautiously optimistic. While challenges from Q1 may persist in the short term, several macroeconomic and seasonal factors could pave the way for gradual recovery, as per SIAM.

The approaching festive season is anticipated to drive demand, particularly for passenger vehicles and two-wheelers, potentially uplifting consumer sentiments.

Additionally, an above-normal monsoon is expected to bolster rural income recovery, which is crucial for two-wheelers and entry-level vehicles that heavily rely on rural demand.

The recent cumulative repo rate cuts by the RBI, totaling 100 basis points over the past six months, are predicted to gradually reduce borrowing costs, positively impacting the auto sector by enhancing affordability and boosting consumer sentiment in the following months, as stated in the report.

However, supply-side challenges, particularly the recent export licensing requirements from China concerning rare earth magnets, remain a concern for vehicle manufacturers, according to the statement.