PVs drive auto sales to record August high as India gears up for festive season

India’s automobile industry posted its strongest-ever August sales across passenger vehicles, three-wheelers and two-wheelers, with robust consumer demand and resilient rural markets driving growth ahead of the festive season.

Passenger vehicle domestic sales rose sharply in August, while three-wheelers and two-wheelers also posted year-on-year growth, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday.

Passenger vehicle sales rose 36.5% year-on-year to a record 4,39,309 units in August from 3,21,901 units a year earlier, according to data released by the Society of Indian Automobile Manufacturers (SIAM).


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The August 2025 base was relatively low as consumers had delayed purchases ahead of the GST rate cuts announced in September last year. Automakers subsequently reduced vehicle prices, helping revive demand.

SIAM Director General Rajesh Menon said passenger vehicles, three-wheelers and two-wheelers recorded their highest-ever August sales in 2026.

“India’s automobile industry is passing through a robust growth phase. The growth in August 2026 has been supported by a lower base of previous year. The broader demand environment remains fundamentally healthy,” Menon said.

Passenger vehicles lead August growth

Within passenger vehicles, utility vehicles remained the key growth driver. In SIAM’s detailed monthly report, which does not include Tata Motors’ domestic sales, utility vehicle sales rose to 2,50,084 units in August from 1,79,613 units a year earlier.

Within this segment, sales of UV1 vehicles rose to 86,935 units from 59,280, while UVC sales increased to 97,881 units from 73,504.

Passenger car sales in the detailed report stood at 1,12,011 units in August, while vans contributed 11,961 units.

The broader demand environment has also been supported by resilient rural markets, improving financing conditions and growing consumer interest in alternative powertrains, SIAM said.

Three-wheelers see broad-based growth

Three-wheeler sales rose to 93,764 units in August from 76,324 units a year earlier.

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Passenger carriers accounted for the bulk of sales at 78,680 units, up from 64,294 units. Goods carriers increased to 13,320 units from 9,876 units.

Electric three-wheelers, however, saw mixed trends. E-rickshaw sales fell to 1,264 units from 1,344, while e-cart sales declined to 500 units from 810.

Two-wheelers cross 20 lakh units

Two-wheeler sales crossed the 20-lakh mark in August, with scooters providing a significant boost.

Scooter sales rose 23.8% to 8,55,715 units from 6,91,430 a year earlier. Electric scooters with motor power above 250 watts accounted for 1,85,303 units of August sales, compared with 81,017 units a year earlier.

Motorcycle sales were comparatively steady, rising 2.4% to 11,33,047 units from 11,06,638. Moped sales increased 4.7% to 45,936 units. Total two-wheeler sales stood at 20,34,698 units in August, compared with 18,41,954 units a year earlier.

With the festive season approaching, automakers are expecting consumer demand to remain firm, supported by rural consumption, easier financing and the lower comparison base from last year.

SIAM’s cumulative data also shows the broader recovery in vehicle demand, with total domestic sales across passenger vehicles, three-wheelers and two-wheelers reaching 1.21 crore units during April-August 2026, compared with about 1 crore units in the year-earlier period.