“Domestic passenger vehicle dispatches from companies to dealers clocked a record 12,73,811 units in the first quarter of this fiscal year, registering a growth of 25.9% driven by strong domestic demand despite the headwinds from the West Asia war,” industry body Society of Indian Automobile Manufacturers (SIAM) said on Wednesday (July 15, 2026).

“Passenger vehicle dispatches in the first quarter of last fiscal year stood at 10,11,884,” SIAM said in a statement.

The previous highest dispatches of PVs in the first quarter of a fiscal year was posted in Q1 of 2024-25 at 10.3 lakh units. “Two-wheelers posted a growth of 20.3% in the first quarter at 56,28,675 units as against 46,77,990 units in the year-ago period,” SIAM said.

“Three-wheelers also clocked highest-ever Q1 dispatches at 2,14,339 units as compared to 1,65,211 units in the same period last fiscal year, a growth of 29.7%,” it added.

“In Q1 of 2026-27, commercial vehicles also posted its highest-ever sales with 2.65 lakh units posting a growth of 18.3% compared to Q1 of last year,” SIAM said.

“The strong performance across segments in Q1 of 2026-27, despite headwinds arising from disruptions in West Asia, can be attributed to supportive domestic demand, aided by lower GST rates, softer financing costs, low base effect and introduction of new models,” SIAM president Shailesh Chandra said.

“While overall consumer sentiment and demand remain steady at present, the industry continues to closely monitor geopolitical developments and the progress of the monsoon, given its implications for agricultural output and rural demand,” he added.

“In June, domestic passenger vehicle dispatches from companies to dealers rose 24.1% year-over-year to 3,88,144 units in June this year as compared to 3,12,851 units in June 2025,” SIAM said.

“Total two-wheeler sales rose 18.6% to 18,51,400 units last month as against 15,61,283 units in June last year,” it added.

“Three-wheeler dispatches to dealers were up 26.1% last month at 77,951 units as against 61,828 units in the year-ago period,” it added.

On the outlook for the second quarter of FY27, SIAM said as the industry gets into the festive season, it is expected that the steady demand should continue, although commodity costs continue to remain a pressure point for the industry.

“While the earlier ceasefire in West Asia eased the supply of gas, fuels and other commodities, industry continues to closely monitor the very recent developments,” the auto industry body said.

“Overall, the vehicle cost has remained lower due to GST 2.0 impact, along with availability of financing at lower rates, which are continuing to drive demand,” it noted.

“Rainfall in late June and the first week of July has reduced the monsoon deficiency to some extent till date and inflation has also been reasonable and has not impacted the demand in Q1,” SIAM said.