TL;DR
India's automotive industry recorded its highest-ever January sales in 2026, driven by strong demand across all vehicle segments and supportive government policies.
India's automotive sector started 2026 with unprecedented sales volumes in January, reaching an all-time high across passenger vehicles, two-wheelers, and three-wheelers. The Society of Indian Automobile Manufacturers (SIAM) reported a combined domestic sale of 23,80,722 units, marking a 23% increase compared to January 2025. This robust performance is attributed to sustained consumer demand, buoyed by the Goods and Services Tax (GST) rate reduction implemented in September 2025.
Two-wheeler sales spearheaded this growth, surging by 26.2% to 19,25,603 units, with scooters experiencing a particularly sharp rise of 36.9%. Passenger vehicle sales also saw a healthy increase of 12.6%, reaching 4,49,616 units. Three-wheelers recorded a 30.2% growth, selling 75,725 units. Industry leaders believe the initiatives outlined in the Union Budget 2026, aimed at strengthening India's manufacturing base and providing policy support, will ensure continued growth in the medium term.
