TL;DR
India's passenger vehicle sales grew 13% in FY26, with Mahindra overtaking Tata for second place and Maruti Suzuki retaining leadership amidst strong EV and SUV demand.
The Indian automotive industry achieved a significant milestone in Fiscal Year 2026, recording a robust 13.0% year-on-year growth in passenger vehicle sales. According to the latest VAHAN data from FADA, total passenger vehicle registrations surged to 4,705,056 units, up from 4,163,927 in FY2025. This growth underscores the resilience and expanding demand within the Indian market.
Maruti Suzuki maintained its leadership position, delivering over 1.86 million units, though its market share slightly dipped to 39.7%. The highlight of the year was Mahindra officially claiming the second spot, surpassing Tata Motors with a strong 22.2% growth rate and capturing 13.4% of the market. Tata Motors secured the third position, bolstered by its expanding EV and SUV portfolio, registering a 14.5% growth. Hyundai, despite being fourth, experienced a modest 3.1% growth, leading to a noticeable loss in market share.
Toyota continued its upward trajectory, driven by strong demand for its hybrid models and SUVs, with a 20.4% growth. The combined group of Skoda, Volkswagen, and Audi also posted a healthy 29.8% growth, indicating success in their localized strategies. Notably, Vinfast made its debut in the Indian market, recording 2,390 units in its inaugural year. The overall trend highlights increasing competition and evolving consumer preferences towards SUVs and electric vehicles.
