While the industry expects the growth momentum to continue into the new financial year, it remains cautious about the ongoing West Asia conflict, which could pose supply-side risks and impact demand due to possible price hikes aimed at offsetting rising commodity costs.
According to industry executives, FY26 unfolded in two distinct phases—a subdued first half followed by a strong rebound in the latter half after the GST rate cut in September 2025 acted as a ‘demand unlock’, helping overall passenger vehicles (PV) sales reach around 47 lakh units. In comparison, total industry sales stood at about 43.4 lakh units in FY25.
Partho Banerjee, Senior Executive Officer (Marketing & Sales) at Maruti Suzuki India, noted that supportive factors such as income tax rebates, a repo rate cut by the RBI, and GST 2.0 have continued to fuel demand. However, rising commodity prices remain a concern and may compel automakers to increase vehicle prices, particularly affecting the price-sensitive small car segment.
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He added that Maruti Suzuki recorded its highest-ever annual sales of 24,22,713 units in FY26, up from 22,34,266 units in FY25. “If Maruti were a country, it would rank as the sixth-largest globally in PV sales,” he remarked.
At Tata Motors Passenger Vehicles Ltd, Managing Director and CEO Shailesh Chandra said the industry is expected to achieve record volumes of 4.7 million units, reflecting an 8 per cent year-on-year growth. He highlighted that the second half saw a strong rebound with double-digit growth, supported by GST 2.0 and a robust festive season.
Calling FY26 a landmark year, Chandra said Tata Motors achieved its highest-ever annual PV sales of over 6.4 lakh units, registering 15 per cent growth and emerging as the second-largest player in the industry based on Vahan registrations in the second half. He added that future growth is likely to be driven by SUVs, CNG vehicles and electric vehicles, though geopolitical developments will need close monitoring.
Meanwhile, Mahindra & Mahindra reported PV sales of 6,60,276 units in FY26, up from 5,51,487 units in FY25, marking a 20 per cent increase. CEO of the automotive division, Nalinikanth Gollagunta, said the company ended the year on a strong note with record volumes in both SUVs and light commercial vehicles above 3.5 tonnes.
Toyota Kirloskar Motor also posted a 20 per cent growth, with sales rising to 4,06,081 units in FY26 from 3,37,148 units in the previous fiscal. Executive Vice President Sabari Manohar attributed the growth to sustained demand across SUV, MPV and compact segments.
Hyundai Motor India reported total sales of 2,08,275 units in the January–March 2026 period, marking an 8.7 per cent increase year-on-year. MD and CEO Tarun Garg said the company achieved its highest-ever quarterly domestic sales of 1,66,578 units in the fourth quarter and remains cautiously optimistic amid geopolitical uncertainties.
Kia India recorded its best-ever quarterly performance, with sales of 84,316 units in the January–March 2026 period, reflecting an 11.6 per cent rise compared to the same period last year. Skoda Auto India also reported its highest-ever quarterly sales at 20,028 units during the same period, registering a 17 per cent increase over the previous year.
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