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India Auto Sales Surge to Record Highs in FY26
3 Sep
Summary
- Indian auto sector contributed over Rs 22.75 lakh crore to the economy.
- Passenger vehicle sales reached an all-time high of 4.6 million units.
- Electric vehicle registrations grew by 24.7% to 2.5 million units.
The Indian automotive sector has demonstrated remarkable performance in fiscal year 2025-26, with overall sales reaching unprecedented levels. Passenger vehicle sales soared to an all-time high of 4.6 million units, marking a 7.9% increase from the previous year. Exports in this segment also reached a record 0.91 million units, growing by 17.5%.
The two-wheeler segment recorded its highest-ever domestic sales of 21.71 million units, a 10.7% year-on-year rise. Exports for two-wheelers also surged by 23.4% to 5.18 million units. The commercial vehicle industry saw domestic sales of 10.80 lakh units, a 12.6% increase, with exports growing by 17.4%.
Alongside robust sales figures, the industry is prioritizing sustainability and decarbonization. All gasoline vehicles manufactured now comply with E20 fuel standards as of April 1, 2025, supporting India's goal of reduced crude oil dependency. Electric vehicle adoption continues to accelerate, with registrations climbing by 24.7% to 2.5 million units in FY2025-26, bolstered by initiatives like the government's PM E-DRIVE scheme.
