India’s automobile sector is accelerating at full throttle, propelled by GST reductions and surging domestic demand. January 2026 marked an all-time high for sales across passenger vehicles, two-wheelers, and three-wheelers, according to data from the Society of Indian Automobile Manufacturers (SIAM).
Domestic sales of passenger vehicles jumped 12.6% year-on-year to 449,616 units, up from 399,386 units in January 2025. This robust growth underscores the sector’s recovery and resilience amid favorable policy shifts.
Two-wheeler sales soared even higher, registering a 26.2% increase to 1,925,603 units compared to 1,526,218 units the previous year. Within this segment, scooters led the charge with a 36.9% surge to 750,580 units from 548,201 units. Motorcycles followed with a 20.3% rise to 1,126,416 units, while mopeds grew 16.1% to 48,607 units.
Three-wheeler sales weren’t far behind, climbing 30.2% to 75,725 units from 58,167 units. Passenger three-wheelers rose 30.4% to 60,881 units, and transport variants increased 33.4% to 13,374 units, though e-rickshaws dipped 7.9% to 925 units.
Overall, total sales of passenger vehicles, three-wheelers, two-wheelers, and quadricycles reached 2,927,394 units in January 2026. SIAM Director General Rajesh Menon hailed this as the highest-ever January performance, attributing it to sustained demand post-GST cuts and positive momentum from the previous quarter.
Menon highlighted the supportive role of the Union Budget 2026 initiatives and existing policies, which are poised to bolster India’s manufacturing base. These factors promise long-term gains and sustained growth for the industry in the medium term. As consumer confidence builds and economic indicators align, the auto sector appears set for an exhilarating ride ahead.