Media365
Prime Minister Narendra Modi on Wednesday hailed India’s record-breaking automobile sales in the first quarter of FY27, saying the milestone reflects the country’s growing manufacturing strength and rising domestic demand, after industry body SIAM reported its highest-ever April-June sales across key vehicle segments.
India’s automobile industry recorded its strongest-ever first quarter, with passenger vehicle dispatches from manufacturers to dealers rising 25.9 per cent year-on-year to a record 12,73,811 units during April-June, according to the Society of Indian Automobile Manufacturers (SIAM). The industry body attributed the growth to robust domestic demand, lower GST rates, softer financing costs, new model launches and a favourable base effect.
The momentum was visible across all major segments. Two-wheeler sales grew 20.3 per cent to 56,28,675 units, while three-wheeler dispatches jumped 29.7 per cent to a record 2,14,339 units. Commercial vehicle sales also touched an all-time quarterly high, rising 18.3 per cent to around 2.65 lakh units.
SIAM President Shailesh Chandra said the industry’s performance remained resilient despite disruptions arising from the conflict in West Asia.
“The strong performance across segments in Q1 of 2026-27, despite headwinds arising from disruptions in West Asia, can be attributed to supportive domestic demand, aided by lower GST rates, softer financing costs, low base effect and introduction of new models,” Chandra said.
He added that the industry continues to monitor geopolitical developments and the progress of the monsoon because of their implications for rural demand.
The strong quarterly showing followed another robust month in June, when passenger vehicle dispatches rose 24.1 per cent year-on-year to 3,88,144 units, while two-wheeler sales increased 18.6 per cent to 18,51,400 units. Industry executives expect demand to remain supported by the upcoming festive season, improving financing conditions and continued product launches.
