The domestic automobile industry maintained its growth momentum in June, with passenger vehicle dispatches from manufacturers to dealers rising 24.1% year-on-year to 388,144 units from 312,851 a year earlier, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Wednesday.
Two-wheeler dispatches rose 18.6% to 1.85 million units in June from 1.56 million units a year earlier, with scooters continuing to outperform motorcycles. Scooter sales surged 39.1% to 744,823 units from 535,307, while motorcycle dispatches grew a modest 6.4% to 1.06 million units from 992,627. Three-wheeler sales also remained strong, increasing 26.1% to 77,951 units from 61,828 in June 2025.
The June performance capped a record first quarter for the industry. Passenger vehicle sales rose 25.9% year-on-year to a record 1.27 million units during April-June FY27 from 1.01 million units in the corresponding period last year. Two-wheeler sales grew 20.3% to 5.63 million units from 4.68 million units, while three-wheeler sales climbed 29.7% to 214,339 units from 165,211 units.
Festive Outlook Bright
Looking ahead, SIAM said demand is expected to remain steady in the July-September quarter as the industry enters the festive season. It said lower vehicle prices following GST 2.0, easier financing and improving monsoon conditions are expected to support demand. However, it cautioned that rising commodity costs remain a pressure point, while the industry is closely monitoring the evolving geopolitical situation in West Asia for its potential impact on the supply of fuel, gas and other commodities.
SIAM President Shailesh Chandra said the strong first-quarter growth across vehicle segments came despite disruptions in West Asia. He attributed the performance to supportive domestic demand, lower GST rates, softer financing costs, a favourable base effect and the launch of new models.
“While overall consumer sentiment and demand remain steady at present, the industry continues to closely monitor geopolitical developments and the progress of the monsoon, given its implications for agricultural output and rural demand,” Chandra said.
Exports also remained a bright spot for the industry. Passenger vehicle exports reached a record 222,000 units during the April-June quarter, up 8.8% from a year earlier, driven by robust demand from Latin America despite weaker shipments to the Middle East. Two-wheeler exports surged 36.6% to 1.55 million units, while three-wheeler exports grew 57.7% to 1,51,118 aided by demand from Africa, Southeast Asia and Latin America.
Automakers Post Mixed Results
At the company level, Maruti Suzuki India remained the market leader in June, with domestic passenger vehicle dispatches rising 23.8% YoY to 147,187 units from 1,18,906. Mahindra & Mahindra emerged as one of the fastest-growing major carmakers, posting a 27.7% increase in domestic sales to 60,393 units from 47,306, while Kia India registered a 19% rise to 24,552 units from 20,625. Honda Cars India also reported strong growth of 13.5%, with dispatches increasing to 5,243 units from 4,618.
The growth, however, was not uniform across the industry. Hyundai Motor India reported a 10% decline in domestic dispatches to 39,635 units from 44,024 units a year earlier.
Utility vehicles (UVs) continued to drive the passenger vehicle market in June, with domestic sales rising 19.9% YoY to 217,228 units from 181,199 a year earlier, underscoring consumers’ sustained preference for SUVs. Passenger cars also posted healthy double-digit growth, with sales increasing 15.7% to 98,610 units from 85,229 in June 2025.
