India passenger vehicle sales rise 22% to 4.54 lakh units in September: SIAM

Benchmarks Nifty23,017.25394.55FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.52 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.82 % Invest NowEnter search text:

The Economic Times daily newspaper is available online now. Read Today's Paper India passenger vehicle sales rise 22% to 4.54 lakh units in September: SIAMBy Sharmistha Mukherjee, ET BureauLast Updated: Oct 15, 2026, 01:06:00 PM ISTSynopsis

September 2026 marked a pivotal month for India's automotive sector, with car sales climbing by 22%, reflecting strong consumer interest. Ahead of the festive season, manufacturers stepped up shipments, while two-wheeler sales also surged by 13.5%. This upward trend was bolstered by enhancements in affordability and infrastructure. Despite ongoing global geopolitical tensions, optimism about maintaining this demand growth remains high.

Car sales rose in strong double-digits year-on-year last month, albeit on a low base, as manufacturers ramped up dispatches to build stocks anticipating robust customer demand during the festivals of Navratri and Dussehra this month.

As per data released by industry body Society of Indian Automobile Manufacturers (SIAM), as many as 454,574 cars, sedans and utility vehicles were sold last month, which is an increase of 22% over the year-ago period. Two-wheeler sales in the period under review grew 13.5% to 2.46 million units. Three-wheeler dispatches went up by 16% to 98,162 units in September.

Category
Sep 2025
Sep 2026
% Change
Passenger vehicles
373,347/
454,574/
21.8
Three-wheelers
84,635/
98,162/
16
Two-wheelers
2,170,100/
2,463,103/
13.5
Domestic sales only

Source : SIAM

Overall, in the first half of the ongoing financial year, passenger vehicle sales went up by 28.3% to 2.64 million units. Commercial vehicle sales grew 23.8% to 564,255 units in the period under review. Two-wheeler and three-wheeler sales rose by 17.6% (to 12.09 million units) and by 26.3% (to 501,879 units), respectively.

Live Events

Shenu Agarwal, President, SIAM said, “The Indian automotive industry delivered a strong performance in the first half of FY2026- 27, following a robust second quarter and a strong September 2026. This stellar performance across all segments of the automobile industry has been supported by improved affordability following GST 2.0, resilient rural and urban demand, healthy freight movement, infrastructure-led economic activity, and a gradual replacement cycle across vehicle segments.”

Utility vehicles continued to show strong traction with sales growing by 31.4% between April-Sep FY27. Sales of hatchbacks and sedans went up by 23.1% in the same period. With this, utility vehicles accounted for 68% of all cars sold in the local market.

New vehicle technologies, alternate powertrains like CNG, EV, Hybrids helps we build demand. Agarwal confirmed, “The electric vehicle ecosystem also continues to mature with multiple offerings, improving charging infrastructure and supportive policy measures. At the same time, alternative fuel technologies are witnessing increasing acceptance and are expected to play an important role in India's sustainable mobility transition.”

In the two-wheeler segment, growth was driven by demand for scooters whose sales increased by 29.4% to 4.87 million units in the first half of the fiscal. Motorcycle sales grew 10.4%, on a larger base, to 6.93 million units in the same period.

Automakers are optimistic about the demand momentum sustaining in the ongoing festive period, though challenges persist on account of geopolitical uncertainties. Demand fundamentals remain supportive, aided by the festive season, new product launches, last-mile mobility requirements, infrastructure spending and fleet replacement.

Agarwal informed, “Continued investments in infrastructure, sustained economic growth, and rising adoption of cleaner and more efficient mobility solutions are expected to support industry growth through the second half of 2026-27.” Growth rates may, however, moderate as the sector begins to grow against a higher base.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onIndia passenger vehicle salesSIAMcar sales growthautomobile industry performanceutility vehicle salesfestive season car saleselectric vehicle ecosystemcommercial vehicle salesinfrastructure investment in India

(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)

...moreless
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onIndia passenger vehicle salesSIAMcar sales growthautomobile industry performanceutility vehicle salesfestive season car saleselectric vehicle ecosystemcommercial vehicle salesinfrastructure investment in India

(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)

...morelessContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Big Price Drop! Flat 40% Off

Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail OfferAvail OfferClaim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '

' + h3 + '

' + h4 + '

' + listing + '

'; $('#paidSCWidget').html(html); var callback = $('#paidSCWidget').attr('data-callback'); if(callback && window[callback]) { window[callback](); } customDimension.dimension72 += ' | Shown SYFT no Trial_With Missed Paywalled Articles Collection'; } else { _processNormal() } } }); } else { _processNormal(); } } catch (e) { _processNormal(); } }, function () { _processNormal(); }); //console.log('storyCollectionLoad', $); }

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with
in-depth insights that matter

• Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

  What Adani’s US indictment means for India Inc’s overseas fundraising

• Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

  Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?

• Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

  The problem with lab grown diamonds

• Why a falling rupee is a better option for the economy

  A list of top 20 momentum stocks that have delivered massive returns in one year

2Invest Wisely With Smart Market Tools & Investment Ideas

Alpha Trade

Get daily trade ideas from SEBI-registered research analysts.

Investment Ideas

Grow your wealth with stock ideas & sectoral trends.

Stock Reports Plus

All-in-one stock research with Stock Score, peer comparison & key signals.

BigBull Portfolio

Get to know where the market bulls are investing to identify the right stocks.

Stock Analyzer

Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.

Market Mood

Analyze the market sentiments & identify the trend reversal for strategic decisions.

Stock Talk Live at 9 AM Daily

Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.

3Stay informed anytime, anywhere with ET ePaper

ePaper - Print View

Read the PDF version of ET newspaper. Download & access it offline anytime.

ePaper - Digital View

Read your daily newspaper in Digital View & get it delivered to your inbox everyday.

Wealth Edition

Manage your money efficiently with this weekly money management guide.

TOI ePaper

Read the PDF version of TOI newspaper. Download & access it offline anytime.

Deep Explainers

Explore the In-depth explanation of complex topics for everyday life decisions.

Health+ Stories

Get fitter with daily health insights committed to your well-being.

Personal Finance+ Stories

Manage your wealth better with in-depth insights & updates on finance.

5Enjoy Complimentary Subscriptions From Top Brands

Stream new documentaries from all across the world every day.

Stories you might be interested in