Overview
- Overall domestic auto sales in Q1 FY26 fell 5.1% year-on-year to 60.75 lakh units, with passenger vehicle dispatches to dealers in June sliding 7.4% to 3.13 lakh—the lowest in 18 months.
- Exports jumped 22.2% to 14.57 lakh units in Q1, driven by a 52.8% surge in commercial vehicle shipments and strong orders from the Middle East and Latin America.
- Utility vehicles led category gains with 3.8% growth and a 66% share of passenger vehicle sales, while passenger cars tumbled 11.2%, two-wheelers declined 6.2% and three-wheelers inched up 0.1%.
- Manufacturers cite supply-chain strains, notably rare-earth magnet licensing delays from China, as a factor in rising dealer stocks and production constraints.
- The Society of Indian Automobile Manufacturers remains cautiously optimistic for Q2, forecasting a rebound supported by monsoon-linked rural demand, festival season buying and RBI repo rate cuts.