New Delhi, Oct. 15 -- Domestic passenger vehicle dispatches from automakers to dealers stood at 13,60,687 units in July-September this year, registering an on-year rise of 30.7 per cent, supported by improved affordability following GST 2.0, robust demand and infrastructure-led economic activity, the Society of Indian Automobile Manufacturers (SIAM) said on Thursday.
According to SIAM, the automobile industry is expected to maintain positive growth momentum in H2 of FY27, though the pace of expansion may moderate due to the higher baseline from the previous year.
"Demand fundamentals remain supportive, aided by the festive season, new product launches, last-mile mobility requirements, infrastructure spending and fleet replacement. Passenger Vehicles growth will remain positive, with new launches expected to sustain consumer interest and demand," SIAM stated.
However, passenger vehicle exports stood at 2.29 lakh units in Q2, representing a 5.2 per cent decline compared with the same period last year, primarily due to a higher base and logistics constraints due to the West Asia crisis.
During April-September 2026 (H1), domestic passenger vehicles sales were 26,37,067 units, as against 20,55,122 units during H1 of last fiscal, registering 28.3 per cent growth on a year-on-year basis.
In September, domestic passenger vehicle dispatches from companies to dealers rose 21.8 per cent year-on-year to 4,54,574 units this year, as compared to 3,73,347 units in the same month last year.
Domestic two-wheeler sales rose 13.5 per cent to 24.63 lakh units last month as against 21.70 lakh units in September last year. Three-wheeler dispatches to dealers were up 16 per cent last month at 98,162 units in September 2026 as against 84,635 units in the year-ago period.
"The Indian automotive industry delivered a strong performance in the first half of FY2026-27, following a robust second quarter and a strong September 2026. This stellar performance across all segments of the automobile industry has been supported by improved affordability following GST 2.0, resilient rural and urban demand, healthy freight movement, infrastructure-led economic activity, and a gradual replacement cycle across vehicle segments," said Shenu Agarwal, President, SIAM.
Agarwal further said alternative fuel technologies are witnessing increasing acceptance and are expected to play an important role in India's sustainable mobility transition.
The Utility Vehicle (UV) sub-segment continued to dominate the PV market, accounting for 68 per cent of total PV sales. UV sales grew by 34.2 per cent in Q2 of 2026-27, compared to Q2 of 2025-26. Passenger car sales also recorded a strong double-digit growth rate of 24.9 per cent during the quarter.
Total domestic vehicle dispatches during the second quarter rose 18.2 per cent year-on-year to 83.87 lakh units, while exports grew 23.9 per cent to 20.89 lakh units.
Total production during the quarter was at 1.05 crore units, up 18.6 per cent year on year.
Published by HT Digital Content Services with permission from Millennium Post.