The domestic automobile industry started 2026 on a strong note, with dispatches from OEMs to dealers rising across passenger vehicles, two-wheelers, and three-wheelers, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Friday.
Total wholesale across passenger vehicles, two-wheelers, and three-wheelers in January 2026 reached 2.38 million units, up 23% from 1.94 million units in January 2025. Passenger vehicle sales rose 12.6% year-on-year (YoY) to 4,49,616 units, compared with 3,99,386 units in the same month last year.
Segment-Wise Performance
The three-wheeler segment saw robust growth, with sales climbing 30.2% to 75,725 units from 58,167 units in January 2025. Two-wheeler sales surged 26.2% to 1.93 million units, up from 1.53 million units in January 2025.
Rajesh Menon, Director General of SIAM, said the strong start reflects sustained demand following the GST rate reduction.
“The new year has begun on a positive note, extending the momentum from the previous quarter. The initiatives announced in the Union Budget 2026 to strengthen India’s manufacturing base, along with existing policy tailwinds, are expected to deliver long-term benefits for the sector,” Menon added.
Within the two-wheeler category, scooters recorded a 36.9% rise in sales to 7,50,580 units, while motorcycles grew 20.3% to 11,26,416 units.
In the three-wheeler segment, passenger carriers increased 30.4% to 60,881 units, and goods carriers rose 33.4% to 13,374 units. Among electric variants, e-rickshaw sales declined 7.9% to 925 units, while e-cart sales rose 18.5% to 545 units.
The data highlights the sector’s resilience and the positive impact of policy measures on both manufacturing and consumer demand. SIAM expects that continued policy support, along with strong domestic demand, will help sustain growth in the medium term.
Dealer Insights
According to the latest report by FADA, dealer feedback indicates strong enquiry momentum, improved customer engagement, faster digital follow-ups, and a shift toward higher-value models. The PV inventory levels have continued to soften to ~32–34 days, which is a constructive indicator of healthier channel discipline and improved working-capital efficiency across the network.
However, dealers also pointed out challenges such as selective supply constraints, aggressive competitive discounting, and high-base effects in certain segments.