New Delhi — SUVs accounted for nearly two-thirds of passenger vehicles sold in India in fiscal 2026, while commercial vehicle sales jumped 12.5% as the country’s automobile industry regained momentum, according to a report by Rubix Data Sciences.
SUVs represented 65% of passenger vehicle sales during the fiscal year, reflecting the continued shift in consumer demand toward larger utility vehicles.
The report said India’s auto industry is entering a period of accelerated growth supported by stronger demand, government policies and investments in manufacturing capacity. India emerged as the world’s third-largest automobile market in 2025 and is targeting the No. 1 position in global automobile manufacturing within five years.
India ranks second globally in the production of buses and coaches, third in passenger car production and fourth in commercial vehicle production. It also ranks third in sales of both passenger cars and commercial vehicles, according to the report.
Under the Automotive Mission Plan 2047, total vehicle production across two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and quadricycles is projected to rise from about 34.71 million units in fiscal 2026 to 50 million by 2030 and 200 million 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,” Rubix Data Sciences President Tushar Bhaskar said.
“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.
Passenger vehicle production increased at a compound annual growth rate of 13% from 3.06 million units in fiscal 2021 to 5.54 million in fiscal 2026. Domestic passenger vehicle sales grew at an 11% CAGR over the same period to reach 4.64 million units.
After growth moderated in fiscal 2025, passenger vehicle sales rebounded by about 8% in fiscal 2026, while commercial vehicle sales increased roughly 12.5%.
The report attributed the recovery partly to the rollout of GST 2.0, which reduced the tax burden on vehicles, and lower Reserve Bank of India policy rates, which helped reduce financing costs.
Exports have also expanded rapidly. Passenger vehicle exports grew at a 17% CAGR to a record 770,000 units in fiscal 2025, led by shipments of compact cars and utility vehicles from Indian automakers. (Source: IANS)
