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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Citroen India, in partnership with its dealership La Maison Nanavati, has completed the handover of 51 Citroen C3 CNG vehicles to the Luthra Group. The ceremony took place at the Luthra Group’s headquarters in Surat.

The delivery is part of Citroen's strategy to expand its presence in tier-II and tier-III markets by providing mobility solutions to businesses and individuals.

The Citroen C3 CNG is designed for high-usage environments and daily commutes. The model includes several features tailored for the Indian market, integration of a factory-fitted CNG kit to manage running costs. A suspension system tuned specifically for local road conditions. Provisions for cabin space and air-conditioning systems designed for high-ambient temperatures.

The handover to Luthra Group represents the brand's focus on cost-efficient transportation. By targeting the regional business sector, Citroen India aims to strengthen its footprint in Gujarat and the broader Indian mobility market.

The C3 CNG is positioned as a solution for users requiring reliability and low operating expenses without compromising on ride comfort.

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Maruti Suzuki India has signed a Memorandum of Understanding (MoU) with Uttar Pradesh Gramin Bank, a regional rural bank, for vehicle retail financing partnership on new cars, pre-owned vehicles and commercial vehicles.

This collaboration marks the 50th retail finance partner for Maruti Suzuki India. The partnership is intended to use the bank’s network to provide credit options to a range of customer profiles, particularly in rural and semi-urban regions.

The partnership aims to increase the accessibility of Maruti Suzuki products through, tailored finance schemes designed for rural and regional customers.

Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India, said, “Our partnership with Uttar Pradesh Gramin Bank marks a significant milestone as we onboard our 50th retail finance partner. This reinforces our commitment to making car ownership simpler and more affordable for customers across India. By expanding our reach through this strategic alliance, we aim to empower buyers with competitive, customer-friendly financing solutions that enhance the overall purchase experience. We remain focused on delivering seamless, tailored finance options, and this collaboration strengthens our vision of providing the Joy of Mobility to aspiring Indian consumers.”

Yadav S. Thakur, Chairman, Uttar Pradesh Gramin Bank, said, “At Uttar Pradesh Gramin Bank, empowering customer aspirations is at the heart of everything we do. Our partnership with Maruti Suzuki, a leader in the automotive industry, is a strategic step towards enhancing our service offerings and delivering greater value to our customers. This collaboration aligns with our 'Customer-First' mission, enabling us to provide accessible and affordable vehicle financing solutions. We look forward to helping more individuals and families across the country realise their dream of owning a Maruti Suzuki vehicle.”

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Kia India has started production of the latest generation Seltos at its manufacturing facility in Anantapur. The company has confirmed that prices for the mid-SUV will be announced on 2 January 2026.

The Anantapur plant, established in 2019, serves as a hub for both the Indian domestic market and international exports. The facility uses automation and a local workforce to manufacture the Seltos, which was the first model produced by the company in India.

The new model is built on Kia’s K3 platform, which has been engineered to increase structural rigidity and improve suspension damping. The vehicle has grown in size compared to its predecessor to increase cabin space and stability. It has 4,460 mm of length, 1,830 mm of width and a wheelbase of 2,690 mm.  

The exterior design follows the ‘Opposites United’ philosophy, featuring a ‘Digital Tiger Face,’ LED projection headlamps, and alloy wheels with neon brake callipers.

The vehicle integrates several digital interfaces and driver assistance systems. It features an upgraded Kia Connect 2.0 suite with over-the-air (OTA) software updates and a proximity unlock function.

In terms of safety, it gets 24 features as standard, while ADAS Level 2 offers 21 autonomous features to assist the driver. The Kia Seltos SUV comes with three engine options – 1.5-litre Petrol producing 115 PS of power and 144 Nm of torque, 1.5 T-GDI Petrol producing 160 PS of power and 253 Nm of torque and a 1.5-litre diesel engine producing 116 PS of power and 250 Nm of torque.

Transmission choices include a 6-speed manual (6MT), intelligent manual (6iMT), IVT, 7-speed dual-clutch (7DCT) and a 6-speed automatic (6AT). The model will be sold in four trims – HTE, HTK, HTX and GTX – with additional option variants and an X-Line styling pack.

Gwanggu Lee, Managing Director & CEO, Kia India, said, “The roll-out of the All-New Kia Seltos marks a proud milestone for Kia India. Seltos has long set benchmarks in the mid-SUV segment, and this new generation represents a bigger, bolder, and more progressive evolution shaped by insights from Indian customers. With production now underway at our Anantapur facility, our teams are fully geared to ensure customers can take delivery of their all-new Seltos without long waiting periods. We are confident the all-new Seltos will once again redefine expectations in the segment and strengthen Kia’s leadership in India."

“The new Seltos looks fantastic. The Anantapur team, together with our supplier partners, have done an outstanding job in delivering our customers a great looking, significantly bigger, technologically progressive and safe vehicle with impressive functionality and connectivity,” he said.

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Stellantis-owned French automotive brand Citroen India has inaugurated its 126th point of sales and service (POS&S) facility in Chennai, continuing the expansion of its network under the ‘Citroen 2.0 – Shift Into The New’ strategy.

The new 3S (Sales, Service and Spares) facility is located at Chitlapakkam, near Chrompet. It is an extension of the partnership with VTK Automobiles, which now operates five Citroen touchpoints in the city. The outlet functions as a ‘Stellantis Brand House,’ allowing customers to access both Citroen and Jeep brands within a single space.

Since the announcement of the Citroen 2.0 strategy, the brand has increased its network by 48.6 percent. Over the last six months, the company added 43 points of sale through its network expansion programmes. Citroen expects to reach a total of 135 outlets by the end of the year, with further operations planned for the north, west, and east of India.

The strategy focuses on several pillars – deepening the domestic supply chain for India-centric products. Expanding the dealer footprint into Tier 2 and Tier 3 locations. Using digital tools and unified spaces for sales and aftersales services.

Shailesh Hazela, CEO and Managing Director, Stellantis India, said, “The expansion of Stellantis network further with VTK dealership in Chennai marks another important step in Citroen and Jeep India’s network growth strategy. Chennai is a key market for us, and this upgraded facility will enable us to serve our customers better with a seamless sales and ownership experience. Aligned with our Citroen 2.0 strategy, we remain committed to strengthening our dealer partnerships and building a robust, customer-centric network across the country.”

Kumar Priyesh, Director Automotive Brands, Stellantis India, said, “We have grown our network by almost 48.6 percent since we announced the Citroen 2.0 strategy and have been able to expand our operations in different parts of country: adding tier 2/3 locations while further strengthening in Metro/ Tier 1 cities. Through project Visitar, Network Expansion Program and expansion in new geographies we added over 43 POS in the last 6 months and are already in advanced stages to start additional operations in North, West and Eastern parts of the country and expected to close the year with 135 POS for Citroen.”

Sree Venkata Teja Kethineni, Dealer Principal, VTK Automobiles, said, “We’re happy to partner to this pivotal shift in automotive retail, proudly representing Jeep and Citroen. Our dual-brand strategy empowers us to deliver a truly elevated and distinctive experience – whether customers seek rugged performance or refined sophistication. With passion, professionalism and personalised care at the core, our team is committed to exceeding expectations and upholding the global standards these iconic brands represent.”

The facility includes a service centre equipped with diagnostics and digital tools. Staff members are trained across both Jeep and Citroen product lines to provide technical support and product information.

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