India’s passenger vehicle sales soar 21% in Q3, hitting an all-time quarterly record

India’s automobile sector posted a robust performance in the third quarter of FY2025–26, with every major category achieving its highest-ever Q3 sales, supported by strong festive-season demand, favourable policies and improved affordability.

Passenger vehicles hit record highs

The passenger vehicle (PV) segment registered an unprecedented 12.76 lakh units in Q3, a 20.6 per cent jump over the same quarter last year.

The segment also closed the January–December 2025 period with its highest annual sales of 44.90 lakh units, marking 5 per cent year-on-year growth. A surge in consumer sentiment during the festive period helped lift volumes further.

PV exports also touched a fresh peak in Q3 FY26, rising to 2.25 lakh units, an 11.7 per cent increase year-on-year.

For the full calendar year 2025, PV exports grew 16 per cent to 8.63 lakh units, led by sustained demand from the Middle East, Africa and Latin America.

Two-wheelers cross historic milestones

The two-wheeler market delivered its strongest-ever quarter, with Q3 FY26 volumes climbing to 5.70 million units — the first time it has crossed the five-million mark in a single quarter.

This reflected a 16.9 per cent rise compared with Q3 FY25.

From January to December 2025, the segment crossed 20 million units, reaching 20.50 million, up 4.9 per cent year-on-year.

Industry officials attribute the surge to greater affordability following GST 2.0, improved disposable income, repeated repo rate cuts, and income-tax relief in 2025.

Two-wheeler exports strengthened as well, touching a record 1.37 million units in Q3 FY26, up 24.3 per cent year-on-year.

Full-year exports rose 24.2 per cent to 4.94 million units, aided by economic recovery in Africa, higher South Asian demand and stronger global uptake.

Three-wheelers see exceptional growth

Three-wheeler sales also recorded new highs in Q3 FY26, rising to 2.15 lakh units, a 14 per cent rise led primarily by passenger carriers.

In the January–December 2025 period, the segment reached 7.88 lakh units, up 8.2 per cent from the previous year.

Exports saw notable momentum — rising 70.1 per cent in Q3 FY26 to 1.27 lakh units.

For the calendar year 2025, three-wheeler exports increased 42.7 per cent, touching 4.26 lakh units, with stronger demand from Sri Lanka and African markets.

Commercial vehicles post strongest-ever Q3

Commercial vehicles (CVs) recorded their best Q3 performance, with sales reaching 2.90 lakh units in Q3 FY26.

For the January–December 2025 period, CV sales stood at a record 10.28 lakh units, a 7.7 per cent increase over 2024.

CV exports rose to 0.25 lakh units in Q3 FY26, up 13.6 per cent year-on-year.

Across the calendar year, CV exports climbed 27.1 per cent to 0.92 lakh units, driven by demand from neighbouring countries and the Middle East.

IANS