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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Maruti Suzuki India has received a 5-star safety rating in Adult Occupant Protection and Child Occupant Protection under the Bharat New Car Assessment Program for its upcoming Brezza SUV.

The SUV includes six airbags as standard across variants, Electronic Stability Program with Hill Hold Assist, Blind Spot Warning, Rear Cross Traffic Alert, Front Parking Sensors and a Tyre Pressure Monitoring System. The certification marks Maruti Suzuki's fifth consecutive 5-star Bharat NCAP rating, joining the Dzire, Victoris, Invicto and e Vitara.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India, said, “Brezza has been India’s highest selling Compact SUV since 2016 and a preferred choice for millions of customers. This 5-star Bharat NCAP rating reinforces the confidence customers place in the vehicle. The recognition for the new Brezza reflects our relentless focus on building safer vehicles for Indian roads. Safety is at the core of our vehicle design philosophy. By making 6 airbags as standard in 16 models and across 160 variants, we have democratized advanced safety, enabling more than 1.6 million new customers to benefit from advanced occupant safety in FY 2025-26, the highest in terms of industry volume. As customer expectations evolve, we remain committed to making advanced safety accessible across every segment, from entry-level models like Alto K10 and Celerio, to SUVs such as the new Brezza, Victoris, Jimny and Fronx.”

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Italian supercar maker Automobili Lamborghini has appointed Francesco Milicia as its new Marketing Director, effective 1 September 2026. He succeeds Christian Mastro, who has transitioned to the role of CEO of Automobili Lamborghini America.

Milicia brings experience from the automotive sector, having held roles at Ducati within the Volkswagen Group, including management positions in China, Managing Director of Ducati Motor Thailand, Purchasing Director and global responsibility for Sales & After Sales activities.

He holds a degree in Mechanical Engineering from the University of Bologna and an MBA, with executive education from INSEAD, CEIBS and the London Business School.

Federico Foschini, Chief Marketing & Sales Officer of Automobili Lamborghini, said, "We welcome Francesco Milicia to Lamborghini as Marketing Director. His managerial experience, gained in an environment of excellence such as Ducati, combined with the international vision and strategic expertise he has developed throughout his career, will make a valuable contribution to the further strengthening of the brand's positioning and to supporting the development of our global marketing strategy."

Francesco Milicia, said, "Joining Automobili Lamborghini is an honour and a privilege. I have always admired the brand and I am thrilled to contribute to the journey of a company that inspires people around the world through innovation, audacity and uncompromising excellence. I look forward to working alongside the Lamborghini team, learning from their experience and contributing together to writing the next chapter of the brand's growth and success."

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German luxury carmaker Mercedes-Benz India has launched the Mercedes-AMG E 53 HYBRID 4MATIC+ in India, available in Performance and Racing Editions priced at INR 14.5 million and INR 14.8 million, respectively (ex-showroom).

The luxury sedan combines a 3.0-litre in-line six-cylinder engine with an electric motor to deliver a system output of 430 kW (585 hp), which increases to 450 kW (612 hp) with the RACE START function, and 750 Nm of torque.

It has a claimed acceleration of zero to 100 kmph in 3.8 seconds and offers an electric-only range of more than 100 km (WLTP) via a 28.6 kWh battery.

Santosh Iyer, Managing Director & CEO, Mercedes-Benz India, said, “The E-Class has been the longest running nameplates in the Indian automotive industry and the AMG E 53 HYBRID 4MATIC+ underlines performance, practical usability and electric efficiency, making the E-Class portfolio truly unmatched. This performance sedan combines genuine AMG performance with plug-in hybrid’s efficiency, balancing an AMG customers need of racetrack performance with practicality of daily usage, perfectly. The AMG E53 Hybrid furthers our ‘powertrain agnostic’ strategy for India, where customers decide the powertrain of their choice, suiting their requirement.”

In addition to the vehicle launch, Mercedes-Benz India has announced a multi-year title partnership with the Indian Padel Tour for the 2026–27 season. The tournament series will feature 19 events across 11 cities, including five Grand Slam events, beginning in Mumbai in August 2026 and concluding in Bengaluru in June 2027. Customers purchasing the AMG E 53 Hybrid will receive direct entry into the Indian Padel Tour Grand Slam.

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Tata Motors-owned British luxury marque Range Rover has announced a fifth addition to its vehicle line-up: the Range Rover GT. It is the first all-electric Range Rover built on the EMA platform, manufactured in Halewood, UK.

The Range Rover GT will be available initially as a battery electric vehicle, with a hybrid electric vehicle option planned for later in the lifecycle. Prototype vehicles are undergoing on-road testing with a camouflage wrap.

The interior features a single screen design paired with a driver display, a concealed air vent running across the width of the cabin and a woven textile wrapping the dashboard.

Martin Limpert, Managing Director, Range Rover, stated, "The Range Rover GT will redefine the grand-touring segment with the ability to deliver beautiful and engaging GT poise, proportions and long-distance refinement while offering capabilities no conventional GT can match. We have spent the last few years working obsessively on the fundamentals of the GT formula, reinterpreted in a sophisticated, uniquely Range Rover way. The result is the most car-like, yet unmistakably capable, Range Rover ever created, now possible on our electrified EMA architecture – complementing our existing powertrain portfolio to deliver a complete set of options for every customer need. Its blend of effortless EV performance, first-class long-haul refinement and all-terrain capability is pure Range Rover; while its calming interior previews our vision of a modern grand tourer."

Further details will be released later in the year.

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