The Indian automotive industry concluded FY2025-26 with record-breaking results, with every vehicle category clocking its highest-ever annual sales, as per data released by the Society of Indian Automobile Manufacturers (SIAM).

For FY2026, a total of 28 million vehicles were sold across segments in the country, clocking a 10 percent YoY growth, as compared to 26 million vehicles a year ago. The robust performance was seen in passenger vehicles, commercial vehicles, two-wheelers and three-wheelers, all achieving peak volumes, marking a definitive recovery 7 years after the previous industry high.

The passenger vehicle segment recorded sales of 4.64 million units for the full year, representing a growth of 7.9 percent. This performance was bolstered by a strong second half, which saw a 16.7 percent increase compared to the same period in the previous year. Growth was supported by GST rate reductions, personal income tax relief and lower financing costs resulting from repo rate cuts by the RBI.

Notably, electric passenger vehicle registrations rose by more than 80 percent. Exports in this segment reached 905,000 units, a 17.5 percent increase, with demand remaining steady in the Middle East, Africa and Latin America.

Commercial vehicles also reached a milestone with 1.08 million units sold, growing by 12.6 percent. The rollout of GST 2.0 reforms and increased capital expenditure provided the impetus for fleet operators to purchase new vehicles. In Q4 alone, the segment grew by 18.9 percent to 325,000 units.

Two and Three-Wheeler Momentum

The two-wheeler segment surpassed its previous peak from FY 2018-19, clocking 20.17 million units in FY2026, marking a 10.7 percent annual growth, primarily led by urban demand. Exports for two-wheelers reached a record 5.18 million units.

On the other hand, three-wheelers posted a growth of 12.8 percent with 836,000 units sold, driven by increased economic activity and the expansion of electric autorickshaws. Exports in the three-wheeler segment grew by 50.1 percent, largely due to increased volumes to Sri Lanka and African nations.

Market Outlook and Challenges

While the industry remains optimistic for FY2026-27, several global uncertainties persist. Fluctuations in crude oil and commodity prices, disruptions in shipping routes, and exchange rate volatility linked to the West Asia conflict remain primary concerns for manufacturers.

Shailesh Chandra, President, SIAM, said, “Though FY2025-26 started modestly, the Indian Auto industry has closed the year on a high note with every vehicle category viz. passenger vehicles, commercial vehicles, three-wheelers and two-wheelers, together posting their highest ever sales in a Financial Year, after seven years. The strong contributors to this growth have been the positive sentiments created through GST 2.0 reforms and multiple Repo Rate cuts during the year. Looking ahead, domestic demand and macroeconomic fundamentals remain robust as we step into FY2026-27, which should aid steady growth for the industry. However, uncertainties arising from the West Asia conflict need to be closely monitored, as it may have impacts on production, commodity prices, fuel prices, freight rates and the overall economy.”

Rajesh Menon, Director General of SIAM, stated, “Each of the vehicle category, passenger vehicles, commercial vehicles, three wheelers and two wheelers posted their highest ever sales in the January to March Quarter with double digit growth compared to previous year’s quarter. In Q4 of 2025-26, passenger vehicles posted sales of 1.31 million units with a growth of 13.2 percent, commercial vehicles posted sales of 325,000 units with a growth of 18.9 percent, three-wheelers posted sales of 227,000 units with a growth of 26.7 percent and two-wheelers posted sales of 5.77 million units with a growth of 26.4 percent, compared to Q4 of 2024-25.”

Comments (0)

ADD COMMENT

Link Copied!

Japanese automaker Nissan Motor Corporation has announced the appointment of Cedric Ratinaud as the new Global Head of Brand, Nissan.

Ratinaud previously served as the Director of Creative and Campaigns for Global Communications at Nissan Motor Corporation, a role he held from April 2024. Prior to that position, he worked as General Manager of INFINITI Global Communications. His background includes two decades in the automotive sector across communications, marketing communications, and brand management roles.

His career at Nissan spans operations across Europe, Asia, and Oceania. Most recently, he served as General Manager of Brand, Marketing, and Communications for Nissan Motor Asia Pacific, operating out of Thailand.

Comments (0)

ADD COMMENT

Link Copied!

TVS Supply Chain Solutions has signed a Memorandum of Understanding with Japan-based Sankyu Inc. to collaborate across supply chain and engineering services.

As part of the agreement, Sankyu intends to acquire a 0.5 percent equity stake in TVS Supply Chain Solutions, subject to regulatory approvals.

The partnership combines TVS Supply Chain Solutions' logistics network in India with Sankyu's engineering capabilities and corporate connections in Japan. Initial operations will focus on serving manufacturing and industrial clients in India, where over 1,400 Japanese companies operate.

Future plans include expanding joint operations into regions across Asia, the Middle East, Africa and additional international markets where both firms hold established infrastructure.

To manage operations under the agreement, the companies will form a joint steering committee with representatives from both organisations to identify operational opportunities and oversee joint initiatives.

R. Dinesh, Chairman, TVS Supply Chain Solutions, said, “This partnership represents an important step in our strategy to strengthen our capabilities and create greater value for customers. Sankyu's engineering expertise and deep relationships across the Japanese industrial ecosystem complement TVS Supply Chain Solutions' integrated supply chain capabilities, strong customer relationships and market presence. We share a strong commitment to long-term value creation, and together we are well positioned to deliver more comprehensive solutions, support the evolving needs of manufacturing and industrial customers, and unlock new growth opportunities across India and other strategic markets.”

Kimihiro Nakamura, President and CEO, Sankyu Inc, said, "Since our inception in 1918, Sankyu has been dedicated to supporting the progress of the manufacturing sector, underpinned by our core philosophy of valuing our people. We are profoundly honoured to enter into this partnership with TVS SCS, an organisation that shares our philosophy and commitment to the highest ethical standards. Our two companies possess a strong strategic alignment, and by integrating and complementing our respective strengths, we look forward to achieving collective growth in the global market and contributing to sustainable industrial development."

Comments (0)

ADD COMMENT

Link Copied!

Vietnamese automotive company VinFast has expanded the role of its India Chief Executive Officer, Tapan Ghosh, to oversee operations in Indonesia, uniting the company's management structure across both regional markets.

Interestingly, Ghosh becomes Chief Executive Officer for VinFast Operations across both countries, making him the first executive from India to manage multiple markets for the Vietnamese company.

Since joining the Vietnamese brand in 2025 from Hyundai Motor India, Ghosh has managed local manufacturing setups, dealership distribution expansion and product strategies. His new responsibilities will include overseeing the development of a complete knock-down (CKD) assembly operation in Indonesia.

The dual-country manufacturing and distribution setup establishes operational hubs for VinFast across South Asia and Southeast Asia, supporting its strategy to expand production beyond Vietnam.

Comments (0)

ADD COMMENT

Link Copied!

Chinese automotive major Geely Automobile Holdings has announced changes to its board of directors and executive leadership structure, effective 18 August 2026, as part of its succession planning framework.

Li Shu Fu has resigned as Chairman of the Board and Executive Director to focus on other business commitments. He has accepted an appointment as Honorary Chairman for Life, a role outside the formal corporate governance structure. Li remains a controlling shareholder of the company and confirmed that he has no disagreement with the board regarding his departure.

On the other hand, Executive Director An Cong Hui has been appointed Chairman of the Board. The board cited An's operational experience within the group and strategic alignment with the controlling shareholder entity as factors supporting the appointment. Independent non-executive directors will continue to oversee potential conflict management protocols under Hong Kong Stock Exchange listing rules.

Further board adjustments include the resignation of Li Dong Hui, Daniel, from the role of Vice-Chairman. He retains his seat as an Executive Director. Gui Sheng Yue has stepped down as Chief Executive Officer and assumed the role of Vice Chairman while remaining an Executive Director.

Following Gui's transition, Executive Director Gan Jia Yue has been appointed Chief Executive Officer. Gan assumes responsibility for managing the group's operational activities and executing long-term business objectives.

Comments (0)

ADD COMMENT

Link Copied!