SIAM expects steady festive demand after record Q1 FY27 sales

Indian automobile industry is expected to see a continuous growth momentum as the Society of Indian Automobile Manufacturers (SIAM) hopes for a steady demand in the second quarter of FY27, as the festive season begins. The industry registered a strong sales performance across vehicle segments in the first quarter. In Q1 FY27, all the vehicle segments, including passenger vehicles, two-wheelers, three-wheelers, and commercial vehicles, recorded double-digit growth. The PV, CV and three-wheeler segments achieved their highest-ever Q1 sales. Now SIAM hopes the same momentum will continue in the coming months as well.

According to the apex governing body of the Indian automobile industry, various factors helped the sector to post a strong sales performance in the last quarter. These include the continuous impact of the GST rate reduction announced during the last festive season, easier availability of financing at lower interest rates, etc. SIAM has also added that reasonable inflation and improvement in the monsoon situation during late June and the first week of July did not affect demand in the Q1 FY27. However, the industry continues to monitor commodity prices and recent developments in West Asia, which remain key areas of concern.

Speaking on the sales performance last quarter, SIAM's Director General Rajesh Menon said the industry recorded high double-digit growth across all vehicle segments during the quarter, reflecting broad-based demand across the market.

Industry charts strong sales in Q1 FY27

The passenger vehicles recorded their highest-ever Q1 sales at 1.27 million units, registering a 25.9% year-on-year (YoY) growth over the same period last year. Two-wheeler sales rose 20.3% to 5.63 million units in the last quarter, while three-wheeler sales increased 29.7% to 2.14 lakh units during the same period. Commercial vehicle sales also reached a record 2.65 lakh units, up 18.3% compared to Q1 FY26.

Not only domestic vehicle sales, but exports also remained strong during the last quarter, with passenger vehicles, two-wheelers, three-wheelers and commercial vehicles - all recording their highest-ever Q1 export volumes. Passenger vehicle exports rose 8.8% to 2.22 lakh units, while two-wheeler exports grew 36.6%, three-wheeler exports increased 57.7%, and commercial vehicle exports were up 43.3% over the corresponding quarter last year.

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