Auto companies ride on a low base to deliver robust 22% sales in September

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

The Society of Indian Automobile Manufacturers (SIAM) data showed as many as 454,574 cars, sedans and utility vehicles were sold last month, a 22% jump over the year-ago period. Two-wheelers grew 13.5% to 2.46 million units. Three-wheeler dispatches also went up 16% to 98,162 units in September.

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Auto sales had remained low in the first three weeks of September 2025 as buyers waited for cars to become cheaper after the GST cut on 22 September, 2025.

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.

"The Indian automotive industry delivered a strong performance in the first half of FY27, 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," said Shenu Agarwal, president, SIAM.

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

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New vehicle technologies, alternate powertrains like CNG, EV, Hybrids help build demand. Agarwal said that 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 jumped 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.