Autobayng News Team
ICRA anticipates modest passenger vehicle industry growth with 1-4 per cent wholesales increase in FY26, post 1.1 per cent contraction in the April–July period.“>
Maharashtra and Uttar Pradesh emerged as frontrunners in state-wise vehicle sales in the first quarter of financial year 2025-26 (Q1 FY26), according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Friday.As per the latest data, despite the challenges faced in the previous quarter, Maharashtra grabbed the top position in passenger and commercial sales while Uttar Pradesh led in two-wheeler and three-wheeler sales.India’s auto industry witnessed subdued performance in April to June quarter of FY26 weighed down by supply chain hurdles, rare earth crisis, US tariffs and more. However, the industry is relying on the upcoming festive season, monsoon season, a better rare earth magnet situation, and the new GST reform expectations to drive the auto sales in the coming months.
State-wise performance
With Maharashtra leading its presence in passenger vehicle sales capturing the highest, 11.8 per cent market share followed by Uttar Pradesh with 11.3 per cent, Gujarat with 7.6 per cent, Karnataka and Haryana managing to capture the fourth and fifth position with 7.2 and 6.8 per cent of market shares, respectively. In total, 10.12 lakh units of passenger vehicles were sold in India where Western Zone has led the segment sales with 3.21 lakh units in total. Maharashtra reported 1.19 lakh units of sales. Out of 2.23 lakh commercial vehicles sold in the last quarter, Western Zone led the sales by comprising 0.77 lakh unit sales. Maharashtra reported highest sales with 0.32 lakh units with 14.2 per cent market share, followed by Uttar Pradesh a drop to 8.6 per cent, Tamil Nadu to 8.5 per cent, Gujarat 7.9 per cent and Karnataka to 7.5 per cent.
Uttar Pradesh with 17.5 per cent of market share in the previous quarter and 8.18 lakh units sold. Western Zone has again led the segment sales with contributing 14.19 lakh units of sales out of 46.75 lakh sales in total. Followed by Maharashtra with a drop to 10.3 per cent, Tamil Nadu with 7.3 per cent, Bihar with 6.9 per cent and Madhya Pradesh with 6.4 per cent.
The three-wheeler industry was again led by Uttar Pradesh with a sales of 0.21 lakh units. Out of 1.65 units sold in Q1 FY26, Southern Zone led the segment’s sales with 0.52 lakh unit sales. Followed by Maharashtra with 11.5 per cent, Gujarat with 9.4 per cent, Karnataka 8.9 per cent, Telangana with 6.4 per cent market share.
Cautious optimistic outlook
While Q1 sales were muted, SIAM noted that the industry remains cautiously optimistic about the coming quarters, supported by the festive season, a normal monsoon outlook, easing rare earth magnet supply and expectations of GST reforms.“Rising input cost inflation and global tariff uncertainties remain headwinds, particularly for export-driven auto ancillary players. However, positive macroeconomic and seasonal indicators could aid recovery,” SIAM said in its quarterly update.ICRA anticipates modest passenger vehicle industry growth with 1-4 per cent wholesales increase in FY26, post 1.1 per cent contraction in the April–July period.
As per a Motilal Oswal Financial Services report, commercial vehicles are expected to increase in mid-single digits, while two-wheelers and tractors might report high-single digit growth.
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