India’s automobile industry had a remarkable performance in the third quarter of FY2025–26, with all major vehicle segments achieving their highest-ever Q3 sales. The passenger vehicle segment, in particular, reported a significant growth of 20.6% with 12.76 lakh units sold in Q3.
This segment also set a new record for calendar year sales, reaching 44.90 lakh units in 2025, reflecting a 5% increase from the previous year. The festive season brought a renewed sense of optimism among buyers, further boosting demand.
Passenger vehicle exports surged to a record high of 2.25 lakh units in Q3 FY26, marking an 11.7% year-on-year growth. Throughout the full calendar year 2025, exports reached 8.63 lakh units, showing a 16% increase, driven by consistent demand from markets like the Middle East, Africa, and Latin America.
The two-wheeler segment also witnessed historic success, achieving an all-time high of 5.70 million units in Q3 FY26, surpassing the five-million mark for the first time. Sales in this segment grew by 16.9% compared to the previous year.
During the January–December 2025 period, two-wheeler sales exceeded 20 million units at 20.50 million, showing a 4.9% year-on-year growth. Factors such as improved affordability post the GST 2.0 rollout, increased disposable incomes, repo rate cuts, and income tax relief in 2025 contributed to this growth.
Exports of two-wheelers also saw a significant rise, reaching a record 1.37 million units in Q3 FY26, a notable 24.3% increase. For the entire calendar year, exports stood at 4.94 million units, up by 24.2%, fueled by improving economic conditions in Africa and sustained demand from South Asia.
Three-wheeler sales hit new highs in Q3 FY26, with volumes reaching 2.15 lakh units, a growth of 14%, primarily driven by the passenger carrier segment. For the January–December 2025 period, three-wheeler sales totaled 7.88 lakh units, up by 8.2% from the previous year.
Exports of three-wheelers experienced a sharp increase, rising by 70.1% in Q3 FY26 to approximately 1.27 lakh units. In the full calendar year 2025, exports reached 4.26 lakh units, showing a substantial 42.7% growth, supported by enhanced shipments to Sri Lanka and African nations.
The commercial vehicle segment also marked its strongest Q3 performance on record, with sales hitting 2.90 lakh units in Q3 FY26. Calendar year sales for January to December 2025 reached a record 10.28 lakh units, growing by 7.7% compared to 2024.
Commercial vehicle exports rose to 0.25 lakh units in Q3 FY26, a 13.6% year-on-year increase. Throughout the full calendar year, exports amounted to 0.92 lakh units, growing by 27.1%, with neighbouring countries and the Middle East being key markets.
