Domestic Auto Vehicle Sales Hit Record 83.88 Lakh Units in Q2 FY27, Up 18.2% YoY: SIAM

New Delhi, Oct 15 (KNN) Domestic automobile sales across major vehicle segments rose 18.2 per cent year-on-year (YoY) to a record 83.88 lakh units in the July-September quarter of FY27, with passenger vehicles, two-wheelers, three-wheelers and commercial vehicles all registering their highest-ever second-quarter sales, according to the Society of Indian Automobile Manufacturers (SIAM).

Passenger vehicle sales grew 30.7 per cent to 13.61 lakh units, while two-wheeler sales increased 15.2 per cent to 64.33 lakh units. Three-wheeler sales rose 23.6 per cent to 2.85 lakh units, and commercial vehicle sales grew 28.7 per cent to 3.09 lakh units.

SIAM Director General Rajesh Menon said, “Q2 of FY 2026–27 recorded the highest ever Q2 sales of all the segments, including Passenger Vehicle, Commercial Vehicle, Three-Wheeler and Two-Wheeler.”

“This stellar performance across all segments of the automobile industry has been supported by improved affordability following GST 2.0, resilient rural and urban demand, healthy freight movement, infrastructure-led economic activity, and a gradual replacement cycle across vehicle segments,” SIAM President Shenu Agarwal noted. 

Segment-Wise Performance

The industry body highlighted that utility vehicles continued to dominate the passenger vehicle market, accounting for 68 per cent of sales. Their sales increased 34.2 per cent during the quarter, while passenger car sales grew 24.9 per cent.

In the two-wheeler segment, scooter sales rose 27.7 per cent, significantly higher than the 7.4 per cent growth recorded by motorcycles.

Three-wheeler sales benefited from increased demand for last-mile mobility, cargo applications and electric vehicles, while commercial vehicle demand was supported by infrastructure spending, freight movement, fleet expansion and replacement of older trucks and buses.

Export Performance

SIAM noted that two-wheeler exports increased 27.7 per cent YoY to 16.5 lakh units, the highest-ever second-quarter level. Three-wheeler exports rose 30.4 per cent to 1.6 lakh units, while commercial vehicle exports grew 72.5 per cent to more than 41,000 units.

Passenger vehicle exports, however, declined 5.2 per cent to 2.29 lakh units, primarily due to a higher base and logistics constraints linked to the West Asia crisis.

Industry Outlook

Agarwal said, “Industry looks forward to the festive season for the continued momentum while remaining cautiously optimistic due to prevailing geo-economic uncertainties. Continued investments in infrastructure, sustained economic growth, and rising adoption of cleaner and more efficient mobility solutions are expected to support industry growth through the second half of 2026-27.”

Passenger vehicle demand is expected to benefit from new launches, while two-wheeler sales are likely to receive support from festive demand and the replacement cycle. Three-wheeler demand is expected to remain firm on the back of cargo applications and last-mile mobility requirements, the industry body noted.

The commercial vehicle segment is expected to benefit from infrastructure investment, fleet replacement and demand generated by the PARIVARTAN scheme.

However, SIAM cautioned that inflationary pressures, possible interest rate increases and geopolitical uncertainties could affect demand.

(KNN Bureau)