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.”

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Mumbai-headquartered automotive major Mahindra Group has highlighted the development of its corporate exhibition space, The Museum of Living History, at Mahindra Towers in Worli, Mumbai, to mark International Museum Day.

Established in July 2022 to document the group’s operations since its inception, the facility records an average attendance of 900 to 1,000 visitors per month, including students, professionals and the public.

The facility incorporates physical and digital art installations to display the timeline of the company’s business sectors. Recent updates made to the repository include a ‘culture wall’ detailing the group’s involvement with the Mahindra Season of Festivals music events, alongside exhibits representing updated corporate values.

The architecture of the 4,000-square-foot space is based on the nautilus shell, utilising a spiral design to illustrate business expansion and structural changes. The interior layout uses variations in light and texture to connect historical records with current industrial projects. The curation, designed by creative consultant Elsie Nanji and experience designer Harsh Manrao, focuses on individual narratives and commissioned artworks rather than traditional historical artifacts.

Anand Mahindra, Chairman, Mahindra Group, said, “The Museum of Living History has evolved to reflect the changing Mahindra business and cultural landscape, while still staying true to the Group’s philosophy and core values. The cornucopia of stories from both businesses and our people is reflective of the brand we are – a living, breathing entity in this ever-changing world.”

The exhibition path follows a nonlinear format, allowing visitors to interpret the installations independently. The museum serves as a central repository for the group's corporate history while functioning as an interactive space for public and institutional visits.

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Chennai-headquartered mid-sized motorcycle major Royal Enfield has announced plans to secure a land parcel for a greenfield manufacturing facility in Tada (Tirupati), Andhra Pradesh.

The company intends to invest approximately INR 25 billion in the expansion project, which will be implemented in phases subject to board approval and market conditions.

At present, the motorcycle manufacturer has a capacity to produce 1.46 million units per year, which is currently operating near full utilisation. This announcement follows an INR 9.58 billion investment made in February 2026 for a brownfield expansion in Cheyyar, Tamil Nadu, which is projected to increase the company's total production capacity to 2 million units annually. In FY2026, Royal Enfield recorded sales of 1.2 million motorcycles.

B. Govindarajan, Managing Director - Eicher Motors, and Chief Executive Officer, Royal Enfield, said, “Royal Enfield's philosophy has always been to stay connected with our community to deliver the best possible products and experiences. We currently operate four world-class manufacturing facilities in Tamil Nadu, with a total projected capacity of 2 million units annually. This investment in Andhra Pradesh will augment that capacity and provide the impetus for our next phase of growth. We are grateful to the Government of Andhra Pradesh for their support and partnership as we strengthen our presence in a state with immense potential. Having already established over 100 retail and service outlets and more than 1,200 direct and indirect employment opportunities, we are proud to contribute to its industrial and economic landscape.”

The company’s existing infrastructure includes four manufacturing bases in Tamil Nadu, alongside seven Completely Knocked Down (CKD) assembly plants located in Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia. Technical operations are managed through two centres in Bruntingthorpe, UK, and Chennai, India.

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Chinese automotive major BYD is on an expansion spree; the world’s leading electric vehicle manufacturer is said to be in conversation with automakers in Europe for acquiring their underused production facilities, says Bloomberg.

The revelation was made in an interview with Stella Li, Vice-President of International Operations, BYD, who said, “We are talking to not only Stellantis, but also other companies too. We are looking for any available plant in Europe because we want to utilise this kind of spare capacity."

It is important to note that BYD is already setting up its own production facility in Szegad, Hungary, which is set to be operational next year.

The Chinese automaker is already the world’s biggest electric vehicle manufacturer, but has been under pressure on the back of weak domestic demand. It has been actively looking to expand its product portfolio and sales in newer markets.

Interestingly, the report further mentioned that BYD may also be open to acquiring European luxury brands such as Stellantis’ Maserati, which she found ‘very interesting’.

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After reports of a lack of availability or less availability of petrol, diesel and CNG came in from various parts of India, the news is out that the state refiners have hiked the price of petrol and diesel by roughly INR 3 per litre across major parts of India.

The hike in petrol and diesel prices has come after four years and against the background of the West Asia conflict involving US, Israel and Iran. Since the conflict began a few months back, the prices of crude oil per barrel have been rising. They stand at approximately USD 107.09 per barrel as of current. 

The price increase, industry sources aware of the overall development in the crude oil sector indicate, is only about one-tenth of the rise that would be necessary to make up for the losses the oil refiners are incurring at the moment. 
The increase in petrol and diesel prices follows the increase in CNG prices by around INR two sometime ago by providers like Mahanagar Gas. 

While the Union Petroleum Minister is known to assert that there is no shortage of fuel in the country, there have been reports from regions like the stretch of the Mumbai-Goa highway in Maharashtra, where pumps have run dry. There have been reports from regions like Nagpur in central India, where truckers have had to halt their journey as pumps ran dry of fuel earlier than expected and had to limit the quantity of fuel they could provide to their consumers. 

Petrol in Mumbai now costs INR 106.68 per litre, approximately, whereas diesel now costs INR 93.4 per litre, roughly. CNG per kg retails at about INR 84, up from the earlier INR 82.

As a result of the price rise in all the fuels used by the mobility sector, a fear is growing that the freight rates will go up, which would have a ripple effect on the prices of commodities. Other than plastics and metals, the prices of various oils, including cooking oil, are expected to go up somewhat if not sharply.   

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