Indian auto industry clocks record CV sales, EV registrations surge to 3.5 million in FY26: SIAM

The Indian automobile industry recorded strong growth across several segments in FY26, with commercial vehicle domestic sales reaching an all-time high of 10.8 lakh units, Society of Indian Automobile Manufacturers (SIAM) President Shailesh Chandra said at the industry body’s annual convention in New Delhi on Thursday.

Commercial vehicle sales grew 12.6% during the financial year, while exports increased 3.4% to 95,000 units, Chandra said.

The three-wheeler segment also registered robust domestic demand, with sales rising 12.8% to 8.4 lakh units in FY26.

EV adoption gains momentum

Electric vehicle adoption continued to accelerate across major vehicle categories. Total EV registrations in India reached 3.5 million units in FY26, compared with 1.9 million units in FY25, according to Chandra.

He said the share of EVs in the new vehicle fleet continued to grow in double digits across passenger vehicles, two-wheelers and three-wheelers.

MUST READ | UP buys India's bikes, Maharashtra buys its cars: SIAM data reveals two-speed auto market

Chandra attributed the momentum to close collaboration between the industry and the government, with government support providing an impetus to accelerate the transition towards electric mobility.

Push for alternative fuels

The industry is also stepping up efforts around alternative fuels and energy security. Chandra said the auto industry moved to manufacturing fully BS-VI compliant gasoline vehicles from April 1, 2025, while some automakers have recently demonstrated and commercially launched flex-fuel vehicles.

SIAM’s gas penetration initiative is also supporting the expansion of CNG infrastructure, while LNG could emerge as a viable solution for long-haul heavy trucks, Chandra said.

The industry is also partnering with the government on pilot deployment of green hydrogen-powered buses and trucks.

Scrappage and localisation

Chandra said the industry is looking to partner with the government on the recently launched Parivahan scheme, which focuses on scrapping old commercial vehicles through authorised registered vehicle scrapping facilities.

On localisation, Chandra said collaborative initiatives involving SIAM members and the Automotive Component Manufacturers Association of India (ACMA) have helped reduce imports by more than ₹20,000 crore. This translated into a 16.6% decline in imports in FY25 compared with FY24, based on estimates cited by SIAM.

DON'T MISS | SIAM flags high chloride levels in E20 fuel, warns of permanent engine part damage, govt responds

Automotive Vision Plan 2025-47

Chandra also welcomed the Ministry of Heavy Industries’ initiative to develop an Automotive Vision Plan covering 2025 to 2047.

He said SIAM has been identified as a key stakeholder in formulating the plan, which will provide a long-term roadmap for India’s automotive sector and align the industry with the broader Viksit Bharat 2047 objective.

“The industry’s collective progress gives me immense satisfaction and I am very optimistic about the future trajectory of the industry,” Chandra said.

The industry’s agenda will continue to focus on sustainability, decarbonisation, electrification, localisation, recycling and road safety, he said.