Did India’s Passenger Vehicle Sales Surpass 10 Lakh in Q1 FY26?
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Synopsis
In an impressive display of consumer demand, India’s passenger vehicle sales exceeded 10 lakh in Q1 FY26. With Maharashtra at the forefront, the automotive sector is poised for growth amid anticipated GST reforms that could lower vehicle prices ahead of the festive season.
Key Takeaways
- India's passenger vehicle sales surpassed 10 lakh in Q1 FY26.
- Maharashtra is the leading state in sales figures.
- Upcoming GST reforms may reduce vehicle taxes to 18 percent.
- Overall vehicle sales in multiple segments show strong growth.
- Uttar Pradesh leads in two-wheeler sales with 8.18 lakh units.
New Delhi, Aug 30 (NationPress) More than 10 lakh passenger vehicles were sold in India during the April to June timeframe, with Maharashtra leading the sales figures, according to new statistics from the Society of Indian Automobile Manufacturers (SIAM).
For the period spanning April to June, a total of 10.12 lakh passenger vehicles were sold nationwide, with the western region recording the highest sales at 3.21 lakh units.
In Maharashtra, 1.19 lakh units were sold in the June quarter. Following Maharashtra in the sales rankings were Uttar Pradesh, Gujarat, Karnataka, and Haryana, as compiled by SIAM.
In the two-wheeler market, 46.75 lakh units were sold across the country during this same period, with the western states contributing 14.19 lakh units, according to the industry body. Uttar Pradesh led in two-wheeler sales with 8.18 lakh units, followed by Maharashtra, Tamil Nadu, Bihar, and Madhya Pradesh.
For commercial vehicles, Maharashtra again took the lead with sales of 32,000 units in the June quarter. Overall, 2.23 lakh commercial vehicles were sold in India during this period.
The three-wheeler segment saw sales reach 1.65 lakh units, with Uttar Pradesh leading at 21,000 units sold, followed by Maharashtra, Gujarat, Karnataka, and Telangana, as reported by SIAM.
In a slight decline, passenger vehicle dispatches from manufacturers to dealers dropped to 3,40,772 units in July 2025, compared to 3,41,510 units the previous year.
Amid upcoming Goods and Services Tax (GST) reforms, the government is anticipated to reduce the tax on entry-level passenger vehicles and two-wheelers to 18 percent, enhancing affordability ahead of Diwali.
Currently, all combustion engine passenger vehicles are subject to a GST of 28 percent, in addition to a compensation cess that ranges from 1 percent to 22 percent, depending on engine capacity, length, and body design.
Point of View
I observe that the surge in passenger vehicle sales not only reflects consumer confidence but also highlights the need for supportive government policies. With anticipated GST reforms, this trend can bolster the automotive industry further, aligning with the nation's economic growth.
NationPress
30/08/2025
Frequently Asked Questions
What is the total number of passenger vehicles sold in India in Q1 FY26?
In Q1 FY26, India sold over 10 lakh passenger vehicles, according to SIAM.
Which state topped the sales chart for passenger vehicles?
Maharashtra led the sales chart with 1.19 lakh units sold in the June quarter.
How many commercial vehicles were sold in India during this period?
A total of 2.23 lakh commercial vehicles were sold in India during the April to June period.
What changes are expected in GST for the automotive sector?
The government is expected to reduce the GST on entry-level passenger vehicles and two-wheelers to 18 percent.
How did the July 2025 passenger vehicle dispatches compare to the previous year?
In July 2025, passenger vehicle dispatches totaled 3,40,772 units, slightly down from 3,41,510 units a year prior.
