SDG 9: Industry, Innovation & Infrastructure | SDG 8: Decent Work & Economic Growth
Institutions: Ministry of Heavy Industries | Ministry of Commerce & Industry
The Society of Indian Automobile Manufacturers (SIAM), in its Q2 FY 2025–26 release, reported a mixed performance for India’s auto industry, marked by a late-quarter recovery following the rollout of GST 2.0 and festive-season demand.
SIAM data show that Passenger Vehicle (PV) sales fell 1.5 % year-on-year to 10.4 lakh units, though September sales grew 4.4 %. Utility Vehicles (UVs)—two-thirds of total PVs—declined 2.1 %. By contrast, PV exports reached a record 2.42 lakh units (+23 %).
Two-wheelers rose 7.4 % to 55.6 lakh units, led by scooters (+12.4 %) and motorcycles (+5 %); exports grew 25 %. Three-wheelers climbed 9.8 % to 2.29 lakh, with exports (+51 %) at a six-year high. Commercial Vehicles (CVs) expanded 8.3 % to 2.4 lakh units, buoyed by freight and replacement demand.
SIAM notes that GST 2.0, implemented on 22 September 2025, lowered effective tax incidence on several vehicle categories and revived buyer sentiment. Early festive spending, stable macro conditions, and improving rural incomes also supported demand. The outlook for H2 FY 2025–26 remains optimistic.
The data underline the need to align industrial and tax policy, sustain rate stability, and extend demand support through scrappage and EV incentives. Strengthening exports, localisation, and clean-mobility infrastructure will anchor recovery in the auto value chain.
Follow the full update here: https://www.siam.in/pressrelease-details.aspx?mpgid=48&pgidtrail=50&pid=591