India’s automobile industry delivered a mixed performance in the first quarter of 2025-26, with passenger vehicle exports reaching an all-time high even as domestic sales remained largely flat, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Monday.

Passenger vehicle sales crossed the one million mark for the second consecutive year in Q1, reaching 1.01 million units, though this represented a 1.4 percent decline compared to the same period last year. The segment’s performance was buoyed by utility vehicles, which now account for 66 percent of passenger vehicle sales and posted 3.8 percent growth, whilst passenger cars declined 11.2 percent.

The standout performer was exports, with passenger vehicles achieving record Q1 exports of 204,000 units, marking a 13.2 percent year-on-year increase. This surge was driven by stable demand across most markets, with particularly strong performance in the Middle East and Latin America, alongside recovery in neighbouring markets such as Sri Lanka and Nepal.

"The performance of the Auto industry was relatively flat, though the retail registration for Passenger Vehicles, Two-Wheelers and Three-Wheelers were marginally higher than the previous Q1," said Shailesh Chandra, President of SIAM.

The two-wheeler segment faced headwinds with wholesale sales declining 6.2 percent to 4.67 million units due to inventory correction across the industry. However, retail registrations increased 5 percent during the quarter, driven by the marriage season and positive demand sentiments. Two-wheeler exports showed robust growth of 23.2 percent to 1.14 million units.

Three-wheelers achieved their highest-ever Q1 sales of 165,000 units, representing marginal growth of 0.1 percent. The segment benefited from increased economic activity supporting urban transportation demand and easier financing options. Exports in this category surged 34.4 percent to 96,000 units.

Commercial vehicles posted a marginal decline of 0.6 percent to 223,000 units, though exports grew strongly by 23.4 percent to around 20,000 units.

Looking ahead to Q2, SIAM expressed cautious optimism despite ongoing challenges. The upcoming festive season is expected to drive demand, particularly for passenger vehicles and two-wheelers, whilst an above-normal monsoon could aid rural income recovery.

"With the upcoming festival season coupled with the benefits of RBI repo rate cuts, we expect consumer sentiments to improve," Chandra added.

The Reserve Bank of India's cumulative repo rate cuts of 100 basis points over the past six months are expected to gradually ease borrowing costs, potentially boosting consumer sentiment and affordability.

However, supply-side challenges persist, particularly the recent export licensing requirement from China on rare earth magnets, which has raised concerns for original equipment manufacturers across all categories.

"Sales of Passenger Vehicles in Q1 of 2025-26 de-grew by (-) 1.4 percent, posting sales of 1.01 million units as compared to Q1 of previous year," said Rajesh Menon, Director General of SIAM.

In June alone, passenger vehicle sales declined 7.4 percent to 312,849 units, whilst two-wheeler sales fell 3.4 percent to 1.56 million units. Three-wheeler sales bucked the trend with 3.8 percent growth to 61,828 units.

The industry's overall domestic sales fell 5.1 percent in Q1 to 60.75 million units, reflecting the challenging operating environment facing India's automotive sector.

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Hyundai Motor India, one of the leading passenger vehicle manufacturers, has reported wholesales of 66,840 units in November 2025, up 9.1 percent YoY as against 61,252 units last year.

This includes domestic sales of 50,340 units, up 4 percent YoY and exports of 16,500 units, up 27 percent YoY.

Tarun Garg, Whole-time Director & Chief Operating Officer, Hyundai Motor India, said, “Supported by GST 2.0 reforms, we continue to carry forward sales momentum with a year-on-year growth in our monthly domestic sales in November 2025. Further, our commitment to bolstering India’s role as a global manufacturing hub is further solidified with 26.9% year-on-year growth in monthly exports.”

He further added that the all-new Hyundai Venue SUV, the company's first software-defined vehicle in India, has received more than 32,000 bookings within a month of its launch. The new Venue features ccNC infotainment powered by Nvidia.

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Toyota Kirloskar Motor (TKM) has announced its wholesales for November 2025, reporting total sales of 33,752 units, up 28 percent YoY.

This includes 30,085 units sold in the domestic market and 3,667 units exported.

Varinder Wadhwa, Vice-President, Sales–Service–Used Car Business, Toyota Kirloskar Motor, said, “Following a positive festive season supported by the government’s progressive GST reforms, we continue to witness a strong momentum, with a growth of 19 percent. The recent introduction of the Urban Cruiser Hyryder Aero Edition and Fortuner Leader Edition has also continued to help us reinforce this growth trajectory, receiving recognition across the country. The innovative initiatives such as the Drum Tao and the launch of the toyota experiential museum (tem) in Bangalore, have been highly appreciated, further strengthening customer engagement and brand connect.”

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Kia India, one of the leading passenger vehicle manufacturers, has released the first teaser of the all-new Kia Seltos SUV, offering a glimpse of its popular model ahead of its world premiere on 10^th December.

The teaser shows the SUV’s sharper design language, reflecting an evolution of the Seltos silhouette. The model is redesigned to lead and strengthen Kia’s presence in the growing mid-SUV segment in India.

The all-new Kia Seltos is rooted in Kia’s ‘Opposites United’ design philosophy. It combines SUV styling with a forward-looking, high-tech character. With new proportions, sharper lines and a muscular stance, the Kia Seltos is positioned to be a visually striking SUV designed for modern Indian lifestyles. Its design merges the rugged spirit of past SUVs with the sleek, aerodynamic sophistication of Kia’s innovations.

The Seltos SUV features proportions, striking cladding and precise surfacing. The new Kia Digital Tiger Face grille dominates the front, complemented by the signature Star Map lighting, echoed at the rear, creating a cohesive and futuristic identity. Details like flush door handles enhance practicality.

Gwanggu Lee, MD & CEO, Kia India, said, "The Seltos has always set benchmarks in the mid-SUV segment, and this new evolution takes it to the next level. The all-new Kia Seltos represents a bold evolution of India’s favourite mid-SUV. Every detail, from its striking design to advanced technology and enhanced performance – has been reimagined around the aspirations of our customers. This teaser gives just a glimpse of what’s to come, and we are thrilled to soon bring this sharper, bolder, and more refined Seltos to the Indian market, continuing to lead and redefine the mid-SUV segment."

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Mumbai-headquartered automotive major Mahindra & Mahindra has announced its wholesales for November 2025, selling 56,336 SUVs, which was 22 percent higher than the 46,222 units sold last year.

Furthermore, the company sold 24,843 commercial vehicles in the domestic market, clocking a 17 percent YoY growth.

Nalinikanth Gollagunta, CEO, Automotive Division, Mahindra & Mahindra, said, “In November, we achieved SUV sales of 56,336 units, a growth of 22 percent. The total vehicle sales stand at 92,670 units, a 19 percent year-on-year growth. We also celebrated the one-year anniversary of our Electric Origin SUVs and launched India’s first authentic Electric Origin 7-seater SUV – the XEV 9S - along with the world’s first Formula E-themed special edition SUV, the Mahindra BE 6 Formula E Edition.”

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