All segments of the automobile sector reported double digit growth in Q2 FY2027 (July-September 2026) with Passenger Vehicles (PVs) and Commercial Vehicles (CVs) reporting wholesales growth of nearly 30% year-on-year (YoY) according to auto wholesales data released by the Society of Indian Automobile Manufacturers (SIAM) on Thursday (October 15, 2026).
Passenger Vehicle sales stood at 1.36 million units in Q2 of 2026-27, registering a growth of 30.7% compared to Q2 of 2025-26.
The Utility Vehicle (UV) sub-segment continued to dominate the PV market, accounting for 68% of total PV sales, SIAM data shows.
UV sales grew by 34.2% in Q2 of 2026-27, compared with Q2 of 2025-26. Passenger car sales also recorded a strong double-digit growth rate of 24.9% during the quarter.
“Improved affordability post GST 2.0, lower base of last year, new vehicle technologies including alternate fuels and EVs besides strong financing support have helped impressive growth of passenger vehicles. With rural demand holding and the festive off take being healthy, passenger vehicles sales have registered healthy growth,” SIAM said.
Passenger Vehicle exports stood at 2.29 lakh units in Q2 of 2026-27, representing a decline of 5.2% compared with the same period last year, primarily due to higher base and logistics constraints due to West Asia crisis.
The Two-Wheeler segment posted wholesales of 6.43 million units in Q2 of 2026-27, registering a growth of 15.2% over Q2 of 2025-26.
Two-wheeler growth in Q2 was supported by a low base, improved affordability following GST 2.0, and an emerging replacement cycle across markets with varying penetration levels.
Growth was led by the scooter sub-segment, which grew by 27.7% in the quarter compared with the same period last year, while the motorcycle sub-segment recorded growth of 7.4%.
Two Wheelers recorded their highest ever exports of Q2 in 2026-27, reaching 1.65 million units registering a growth of 27.7% over Q2 of 2025-26.
In Q2 of 2026-27, Three-Wheelers posted sales of 2.85 Lakh units, with a growth of 23.6%.
3W domestic growth was driven by the post-GST reform step-up in ICE three-wheelers, the shift toward higher-quality L5 electric vehicles, and robust growth in the cargo three-wheeler segment across fuel types.
This was supported by increased last-mile mobility demand and the segment’s favourable total cost of ownership.
1.6 Lakh units of Three-Wheelers were exported in Q2 of FY-2026-27, which is the highest exports of Q2, with a growth of 30.4%, as compared to same period last year.
Commercial Vehicle wholesales stood at 3.09 lakh units in Q2 of 2026-27, reflecting a growth of 28.7% compared to Q2 of 2025-26.
“Infrastructure spending, strong freight movement, replacement demand of older trucks and buses and logistics fleet expansion are providing the impetus to modernize the vehicle.
More than 0.41 lakh units of Commercial Vehicles were exported with a growth of 72.5% in Q2 of 2026-27, as compared to Q2 of last year.
In September 2026 the total production of Passenger Vehicles’, Three Wheelers, Two Wheelers, and Quadricycle was 34,52,554 units.
Passenger Vehicles sales were 4,54,574 units in September 2026 as compared with 3,73,347 a year ago up 21.8%.
Three-wheeler sales were 98,162 units in September 2026 as compared with 84,635 units a year ago up 16%.
Two-wheeler sales were 24,63,103 units in September 2026 as compared with 21,70,100 units a year ago, up 13.5%.
Growth Outlook for H2
The automobile industry is expected to maintain positive growth momentum in H2 of FY2026-27, although reported growth rates may moderate as the sector begins to grow against a higher base, SIAM said.
“Demand fundamentals remain supportive, aided by the festive season, new product launches, last-mile mobility requirements, infrastructure spending and fleet replacement,” it added.
Passenger Vehicles growth will remain positive, with new launches expected to sustain consumer interest and demand.
For Two-Wheelers, the festive season is expected to support near-term momentum. While growth rates may moderate against the higher post-GST base of the previous year, underlying demand fundamentals are expected to remain supportive and sustain healthy growth.
Three-Wheelers demand is expected to remain strong, supported by growth in cargo applications across fuel types, robust last-mile mobility demand and the segment’s favourable total cost of ownership. However, inflationary pressures and any increase in interest rates could moderate demand.
Commercial Vehicles segment is expected to benefit from infrastructure spending, fleet replacement and demand generated by the PARIVARTAN scheme, SIAM said.
“While the automobile industry remains watchful of higher inflationary trend which can lead to higher interest rates and geopolitical developments, the overall outlook for rest of 2026-27 remains encouraging, with the automobile sector expected to close the fiscal year on positive growth trajectory,” it added.
Published – October 15, 2026 02:01 pm IST
