The Indian auto industry started FY2025-26 with mixed results. According to the latest report by SIAM (Society of Indian Automobile Manufacturers), total vehicle production in June 2025 touched 23.64 lakh units. But sales across most categories remained flat or saw a slight dip.
A Look at June 2025
In June alone, India produced over 23 lakh vehicles. Passenger Vehicle sales stood at 3.12 lakh units, while Three-Wheelers recorded 61,828 units. Two-Wheelers continued to dominate with 15.59 lakh units sold. But these numbers didn’t boost the overall Q1 story.
Q1 FY2025-26: Sales Struggle, Exports Shine
Total vehicle production for April to June 2025 was over 76 lakh units. But the Indian auto industry didn’t see big jumps in sales.
Passenger Vehicle sales crossed 1 million for the second time in a row during Q1. Still, they fell by 1.4% compared to Q1 of FY2024-25. The reason? Lower sales in the later part of the quarter.
On the bright side, exports gave something to cheer about. Passenger Vehicle exports hit an all-time high of 2.04 lakh units. That’s a 13.2% growth over last year.
Two-Wheelers and Three-Wheelers: Mixed Bag
The Two-Wheeler segment saw a dip. It posted sales of 4.67 million units, down by 6.2%. The drop is mainly because of inventory corrections across dealerships.
Three-Wheelers, however, recorded their best Q1 ever. Sales hit 1.65 lakh units, with a small growth of 0.1%. Passenger carriers led the segment, showing growing demand in smaller cities.
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Commercial Vehicles: Slight Decline
Commercial Vehicle sales in Q1 stood at 2.23 lakh units. That’s a marginal dip of 0.6% compared to the same period last year. Fleet operators held back slightly due to rising input costs and economic caution.
What’s Ahead in Q2?
The road ahead looks cautiously positive. The Indian auto industry hopes for a recovery in Q2. Festive demand, rural push, and better financing could help boost sales.
But not all is smooth. Supply-side concerns remain. The new export licensing rules from China on rare earth magnets are already hitting OEMs across all categories. This could cause delays or cost hikes in the near term.
The Indian auto industry may have had a slow start this year, but it’s holding steady. Exports are booming, and demand may bounce back soon. The road isn’t easy, but India’s wheels are still in motion.
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