New Delhi, Aug 7 (IANS) India’s passenger vehicle sales rebounded sharply in FY2026, with SUVs now accounting for two in three cars sold and commercial vehicle sales up 12.5 per cent, a report has said.
The report from Rubix Data Sciences said that SUV’s share of PV sales surged to 65 per cent in FY26 and the industry is entering accelerated growth driven by demand momentum, policy support and strategic investments.
India targets the global No. 1 spot in automobile manufacturing within five years, the report said, highlighting the country’s emergence as the third-largest automobile market globally in 2025.
“India also holds strong global rankings within the PV and CV segments; specifically, second in production of buses and coaches, third spot in production of passenger cars, fourth position in production of commercial vehicles, and third in the sales of both passenger cars and commercial vehicles,” the report said.
Under the Automotive Mission Plan 2047, total production across the broader automotive industry, spanning two-wheelers, three-wheelers, PVs, CVs, and quadricycles, is projected to increase from approximately 34.71 million units in FY2026 to 50 million units by 2030 and further to 200 million units by 2047.
“Every record export number and capacity announcement from an OEM sits on top of a much longer chain of component makers, dealers and logistics partners whose balance sheets weren’t built for this pace of change,” said Tushar Bhaskar, President, Rubix Data Sciences
“The winners over the next decade will be the companies that can grow while seeing the risk of building three tiers down their supply chain before it reaches them,” he added.
PV production rose at 13 per cent CAGR from 3.06 million units in FY2021 to 5.54 million units in FY2026, while domestic PV sales climbed at 11 per cent CAGR to 4.64 million units over the same period.
After both segments saw sales moderate in FY2025, momentum returned sharply in FY2026, with PV sales growing by around 8 per cent and CV sales by around 12.5 per cent year-on-year.
The report attributed the recovery to the rollout of GST 2.0, which lowered the tax burden on vehicles, and easing RBI repo rates, which reduced financing costs.
On the export front, PV exports grew at a 17 per cent CAGR to reach a record 0.77 million units in FY2025, led by compact cars and UVs from OEMs.
—IANS
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