How Did Passenger Vehicle Sales in India Surge 21% in Q3?

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How Did Passenger Vehicle Sales in India Surge 21% in Q3?

Key Takeaways

Passenger vehicle sales reached 12.76 lakh units in Q3 FY26.
Two-wheeler sales surpassed 5.70 million units, hitting a historic high.
Passenger vehicle exports increased by 11.7 percent year-on-year.
Three-wheeler sales rose to 2.15 lakh units, reflecting strong growth.
Commercial vehicle segment saw record sales of 2.90 lakh units in Q3 FY26.

New Delhi, Jan 13 (NationPress) The Indian automotive sector exhibited a remarkable performance in the third quarter of FY2025–26. All primary vehicle categories achieved their highest-ever Q3 sales, propelled by festive demand, supportive policies, and better affordability.

The passenger vehicle segment marked its best Q3 sales ever at 12.76 lakh units, showcasing a significant rise of 20.6 percent compared to the same timeframe last year.

This segment also reached its peak calendar year sales of 44.90 lakh units from January to December 2025, reflecting a 5 percent increase over the preceding year.

A renewed consumer optimism during the festive period further spurred demand.

Exports of passenger vehicles also reached an all-time high in Q3 FY26 at 2.25 lakh units, marking an 11.7 percent increase year-on-year.

For the entire calendar year 2025, exports totaled 8.63 lakh units, up 16 percent, supported by continuous demand from markets like the Middle East, Africa, and Latin America.

The two-wheeler segment also experienced a record-breaking quarter, with Q3 FY26 sales hitting an unprecedented 5.70 million units, surpassing the five-million milestone for the first time.

This signifies a growth of 16.9 percent compared to Q3 FY25. During the January to December 2025 period, two-wheeler sales exceeded 20 million units, reaching 20.50 million, and grew by 4.9 percent year-on-year.

Enhanced affordability due to the implementation of GST 2.0, rising disposable incomes, multiple repo rate reductions, and income tax relief in 2025 fueled demand.

Two-wheeler exports also surged, achieving a record 1.37 million units in Q3 FY26, a remarkable increase of 24.3 percent.

For the full calendar year, exports reached 4.94 million units, an increase of 24.2 percent, driven by improving economic conditions in Africa, stable demand from South Asia, and a broadening consumer base.

Sales in the three-wheeler category also achieved new heights in Q3 FY26, with volumes climbing to 2.15 lakh units, reflecting a growth of 14 percent, primarily led by the passenger carrier segment.

For January to December 2025, three-wheeler sales totaled 7.88 lakh units, marking an 8.2 percent increase over the previous year.

Three-wheeler exports increased significantly, soaring by 70.1 percent in Q3 FY26 to approximately 1.27 lakh units.

For the entire year 2025, exports reached 4.26 lakh units, reflecting a growth of 42.7 percent, bolstered by higher shipments to Sri Lanka and African countries.

The commercial vehicle segment also recorded its strongest Q3 performance ever, with sales reaching 2.90 lakh units in Q3 FY26.

Calendar year sales for January to December 2025 reached a record 10.28 lakh units, a 7.7 percent increase compared to 2024.

Commercial vehicle exports grew to 0.25 lakh units in Q3 FY26, up 13.6 percent year-on-year.

For the full calendar year, exports totaled 0.92 lakh units, a growth of 27.1 percent, with neighboring countries and the Middle East being key markets.

Point of View

The impressive growth of the Indian automobile sector not only reflects consumer confidence but also underscores the effectiveness of supportive government policies and economic recovery. This trend is crucial for the overall economic landscape and is likely to continue shaping the industry positively.
NationPress
21 Jun 2026

Frequently Asked Questions

What factors contributed to the rise in passenger vehicle sales in India?
The rise in passenger vehicle sales was driven by festive demand, supportive government policies, and improved affordability for consumers.
How did two-wheeler sales perform in Q3 FY26?
Two-wheeler sales reached a historic high of 5.70 million units in Q3 FY26, marking a 16.9 percent increase from the same period last year.
What were the export figures for the automobile sector in Q3 FY26?
Passenger vehicle exports hit a record 2.25 lakh units, while two-wheeler exports also surged to 1.37 million units.
How did the commercial vehicle segment perform in 2025?
The commercial vehicle segment recorded its strongest Q3 performance, with sales of 2.90 lakh units and calendar year sales reaching a record 10.28 lakh units.
What impact did GST 2.0 have on the automotive market?
The implementation of GST 2.0 improved affordability, which significantly supported demand in the automotive market.
Nation Press
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