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The Indian Automotive Market Forecast 2026 is our detailed report, which includes model-level sales and production for each Automotive segment. After the GST cut, the festive season, and attractive growth in October 2025, the Indian Automotive Industry is expected to grow after a market correction.

Recently, market demand parameters have changed, which will be reflected in 2026. Technology upgradation, Vehicle drivetrains, and customer behaviour are changing rapidly, along with the geopolitical situation. With an upgrade and an increase in buyers’ purchasing power, it is expected that vehicle price increases will vary in 2026.

Key Highlights of the Indian Automotive Market Forecast 2026 report and Data:

Indian Automotive Industry Overview, along with trends and Monthly forecasts
Sales, Production, Export, Pricing, and Technology
Level: Segment, Sub-segment, and Model level
Key Insight
Macro Economy forecast and its impact on the Indian Automotive Industry
Customer sentiments and their buying preference analysis
Frequency: Monthly, Quarterly, Half Yearly, and one-time
Format: Excel, PPT, PDF, Power BI, and Tableau

Drivetrain Type:

ICE
Electric
Hybrid
CNG, and
Others

Segment:

Passenger Vehicle: SUV, CAR, and MUV
Truck:
- Body Type – Tipper, Rigid Haluage, Tractor Trailer
- GVW-wise: Mini Truck, Pick-up Truck, Light Duty Truck, Medium Duty Truck, and Heavy Duty Truck
Bus:
- Application-wise STU, Intercity, Intarcity, Private, School, Tourism, etc
- GVW-Based: Mini Bus, Light Duty Bus, Medium Duty Bus, and Heavy Duty Bus
Two Wheeler:
- Sccoter
- Motorcycle
Three Wheeler:
- Goods
- Passenger
Construction Equipment
Agricultural Tractor

Truck Demand Roars Back in India in October 2025. The Indian Truck Market saw triple-digit growth of 58% in October 2025 compared to the previous month. This is exponential growth for the Indian Truck Industry because e-commerce and mining applications were in demand.

This was the expected trend in quarter two of FY 2025.

Tata Trucks’ sales grew by 52%, DICV Truck sales grew by 48%, and Scania Trucks’ sales numbers are small, but their sales increased by 500%.

In October 2025, Heavy Tipper sales almost doubled, and Tata Motors and Daimler India Commercial Vehicle sales increased by more than 100%. Ashok Leyland’s sales also grew in double digits.

There are attractive opportunities for an economical and eco-friendly truck portfolio, like CNG and Electric Trucks in India.

Check the Monthly Indian Truck Data and Report Subscription Plan here. Contact us at Info@autobei.com

Indian Electric Vehicle Sales increased by 28% in October 2025 compared to September 2025. This is lower than expected growth because Petrol and Diesel heavily benefited from the GST cut rate. The EV penetration rate declined by 0.4% on October 25 because the price reduction on ICE vehicles attracted potential buyers away from EV adoption.

Electric Car Sales Surge 17% in Oct 2025:

Indian Electric car sales increased by 17% in October 2025 compared to last year’s. YTD growth registered 80% on October 25 due to the launch of a New Model, Awareness of the Electric Car’s key features, and low operating costs. The penetration of electric cars decreased by 0.4% even during the festive season because the maximum price cut was for ICE Cars. This widens the price gap between Electric Cars and ICE cars.

Electric Two-Wheeler Sales Up 38% Despite 3.5% Share Dip:

The Electric Two Wheeler sales rose by 38% due to the festive season in October 2025, compared to the previous 2025. However, YTD sales increased by just 3% on October 25. During every year’s festive season, the sales of the Electric Scooter were at their peak.

Electric Truck Sales Up 27% in October 2025:

Indian Electric Truck sales increased by 27% in October 2025 compared to September 2025. The YTD sales rose by 254%.

Electric Bus Sales in October 2025:

Indian Electric Bus sales dropped by 24% in October 2025, but recently, a new tender was issued to procure new Electric Buses.

In some areas, electric bus sales have peaked due to bulk purchases. The overall trend looks volatile.

Electric Three Wheeler Sales in October 2025:

Indian Three-Wheeler Sales increased by 27% in October 2025 compared to September 2025. This Vehicle plays an essential role in last-mile delivery. E-rickshaws are the fastest-growing segment in the commercial three-wheeler segment.

This report is part of our Monthly Electric Vehicle Report and Data Subscription. To subscribe to the detailed monthly report, contact us at Info@autobei.com

India’s Automotive Market Booms in October 2025 is a detailed analytical report that is part of our Monthly Subscription to the Indian Automotive market.

The GST cut and the festive season are key drivers of this growth. In October 2025, retail sales grew by 119% compared to September 2025. The OEMs have passed price benefits to the end customer, and the easy Vehicle loan at attractive interest rates also accelerates sales in top gear.

Demand has been seen in both rural and urban areas. The timing and typical mansion boost market confidence and customer satisfaction.

In Calendar year 2025, Automotive sales increased by 75%. 42% YTD growth has been registered, which is highly advantageous for the domestic Automotive Market. If we compare the same month of 2023 with CY 2024, then YTD was 33%.

Top 6 Indian States covered more tha 50% sales in October 2025 because some states have a dense customer base and some have a strong purchasing power, like Maharashtra and Gujarat. These States are:

UP
Maharastra
Tamilnadu
Gujarat
Karnataka, and
MP

Indian Car Sales crossed half a million:

The car market showed double-digit growth after a long time. Customer sentiment was high. The price cut and festive season made 85% growth possible in October 2025 compared to the last month of the year.

Get our detailed monthly report. Contact us at Info@autobei.com.

Indian Automotive Market H1 FY 2026 is a detailed report on Sales, Exports, and Production with qualitative analysis and forecast.

Indian Automotive sales declined by 1.5% in Q1 FY 2026 compared to Q1 FY 2025. India is considered an export hub for vehicles, primarily cars and Two-Wheelers. Exports grew by a double-digit 22.2% in Q1 FY 2026. Vehicle production in India also rose by 1.5%.

Agricultural Tractor demand and retail sales have increased by 11% because of the above-normal monsoon and positive rural sentiments. However, the Construction Industry is going through a tough time in the housing and office segments. Construction equipment sales declined by 4% YTD.

After GST 2.0, car and two-wheeler OEMs passed the benefits on to buyers to boost demand.

The Indian automotive market started to improve in Q2 FY 2026. GST 2.0 will have a long-term impact on its growth.

There is a cumulative impact of Q1 and Q2, which showed minor sales growth of 0.6% in H1 FY 2026 compared to H1 FY 2025.

Production of the vehicle in India and Export registered 5.8% and 24.3% growth.

Subscribe to our Monthly Indian Automotive Market Intelligence report and Data with key insight, contact at Info@autobei.com

Indian Bus Market sales increased 7.7% in Q1 FY 2026 compared to Q1 FY 2025. Indian Bus Production and exports also increased 25.6% and 36.5% in the first quarter of the financial year 2026, respectively.

In Q2 FY 2026, Bus sales grew by 0.7%. Bus Production and Export registered double-digit growth of 10% and 56%.

In H1 FY 2026, Bus sales grew 4.8% due to increased demand in India. The export of buses outperformed, rising by 19%, and Production by 47% compared to H1 FY 2025.

Brand-wise Indian Bus Market Share H1 FY 2026:

Tata Motors leads the Bus market but faces tough competition from Force and Tata Motors in the light-duty and Heavy-Duty bus segments.

In the Light Duty bus segment, Force Motors held more than half the market share in H1 FY 2026, driven by its leading model, Traveller. The second largest player, Tata Motors, lost 2%, and SML Isuzu lost 1% in the first half of the current financial year.

In the medium- and heavy-duty bus segment, Ashok Leyland and Tata Motors have 33% and 31% market shares, respectively. Eicher is the third-largest brand with a 23% market share.

In the overall Bus segment, Mahindra sales declined by 7%, and Olectra Electric Bus sales dropped by 96% in H1 FY 2026 compared to H1 FY 2025. PMI and Pinnacle sales grew by 422% and 143% respectively, because of large bus orders in the first two quarters of FY 2026.

Switch Mobility Electric buses received multiple large Electric Bus orders, and its sales grew by 1119%.

10 SWITCH EiV12 electric buses delivered to Mauritius out of 100 bus orders. The company has also supplied the Delhi government with features such as CCTV, a Panic Button, and a CCS2 charging interface. These low-floor electric buses are suitable for a range of 314 km on a full charge for Short and Medium distances. Eco-Friendly SWITCH EiV22 double-decker buses are deployed on some notable routes for intra-city travel in urban areas, such as Gift City, Gandhinagar.

PMI, another electric bus manufacturer, received an order from BEST in Mumbai for 250 12M electric buses.

Under the Smart City Initiative, Olectra Greentech delivered 25 electric buses to Puducherry Road Transport Corporation (PRTC).

CESL will invite participants to a mega tender for 10,900 electric buses for five major cities on November 6, 2025. Under the PM E-DRIVE scheme, the tender will invite 4500 electric buses for Bangalore, New Delhi, 2800, Ahmedabad, 1000, Hyderabad, 2000, and Surat, 600, electric ebuses, respectively.

Check the Monthly Indian Bus Data and Report Subscription Plan.

The Indian Passenger Vehicle market declined by 1.4%, the car segment decreased by 5.8%, and combined sales of SUVs and MUVs registered minor growth of 0.7% in H1 FY 2026 compared to H1 FY 2025. In the same period, Production of the Indian Passenger Vehicle grew by 3.8%, and exports grew by 18.4% in the first half of the current financial year.

In Q2 FY 2026, Car sales in India declined by 11.2% compared to Q2 FY 2025. SUV and MUV combined sales grew by 3.8% in Q1 FY 2026. In the first half of FY 2026, passenger vehicle exports were around 0.2 M units.

The sales declined because the Demand for the Value Plus segment decreased.

Indian PV Brand-wise Market Share in H1 FY 2026:

In Q2 FY 2026, Car sales in India registered a 11.2% degrowth compared to Q2 FY 2025. The SUV and MUV combined sales grew by 3.8% in Q1 FY 2026. The passenger vehicle exports were around 0.2M units in the first half of FY 2026. Under the new market dynamics, it is challenging for Maruti Suzuki to increase or keep its existing market share. In H1 FY 2026, Maruti lost 2% market share.

Hyundai, which has a firm grip on the Indian car and SUV market, lost 1% of its market share in the first half of the financial year.

Mahindra continuously increases its market share by launching new models with digital technology features. Toyota and Skoda are the other brands that increased their market share in H1 FY 2026 compared to H1 FY 2025.

Skoda, Kia, Mahindra, and Toyota sales grew by 55%, 3%, 13%, and 9% in H1 FY 2026 compared to the last half of the financial year.

BYD Monthly Car Sales Trend:

BYD sales are growing in India because of its attractive looks and price point. The company registered 82% growth in the last nine months of 2025. The monthly sales of BYD Electric cars have had a zigzag pattern. Its performance and design are adding value.

BYD’s 38% sales are coming from Delhi and Maharashtra. This shows that its customers are mainly in metro cities; Ahmedabad is also a growing market for the company. Our Electric Car survey found that 66% of potential buyers have struggled to get a demo for the last three months.

Kerala, Karnataka, and Tamil Nadu contributed 32% of sales in the first nine months of 2025. However, these five states have a 70% market share for BYD in India.

The company’s average over the last three months has been around 500 cars per month. During the festive season, BYD Electric car sales grew by 19.3% in September 2025 compared to the previous month.

This is part of our Monthly Indian Passenger Vehicle Market report and Data. To subscribe to the Monthly PV Deep Analytics report and data, please get in touch with Info@autobei.com

The Indian two-wheeler market is moving towards registering a growth of 0.7% in H1 FY 2026. In Q1 FY 2026, the Indian two-wheeler industry registered a decline of 6% compared to FY 2025. The market recovered speedily in the second quarter of FY 2026 and grew by 7%.

Excess scooter production occurred in Q1 FY 2026, assuming the demand or sales of Scooters will exceed 5% growth. However, sales declined by 0.2% in the same period. An almost similar situation was noted for Motorcycles because their production fell by 1.3%, but sales decreased by 9.3% in Q1 FY 2026. The export of the two-wheeler increased by a double-digit of 29%, but the scooter export decreased by 7.3% in Q1 FY 2026.

In Q2 FY 2026, the Scooter and Motorcycle segments recovered from negative to positive growth. Their production volume increased by 12% and 10.4%, respectively. Their sales grew by 12.4% and 5%. The exports of both segments registered double-digit growth.GST rate cut and the festive season were the key factors behind the growth.

In FY H1 2026, the Scooter segment registered 6.4%, and the Motorcycle segment declined by 2.1%. The Two-Wheeler export market is flourishing for Indian Two-Wheeler Brands.

Honda lost 7% of its market share in H1 FY 2026 in the Scooter segment because Indian buyers widely accept TVS Motors’ Scooters. Suzuki, Hero MotorCorp, and Ather are benefiting from favourable market dynamics. Bajaj Electric Scooter lost minor market share in H1 FY 2026.

In the Motorcycle segment, TVS and Royal Enfield are two brands that increased their market share in H1 FY 2026 compared to H1 FY 2025. TVS and Royal Enfield Motorcycle quality and performance are the main drivers behind their growth. Royal Enfield grew by 21%, and TVS grew by 8% in the first six months of the current financial year.

Subscribe to our Monthly Indian Two Wheeler Report and Data, contact us about the Monthly Subscription, Email: Info@autobei.com

The Indian Truck market started to show growth in Q2 FY 2026. In Q1 FY 2026, the market registered a 2% decline compared to Q1 FY 2025. However, in Q2 FY 2026, the Indian Truck Industry grew by 9% compared to the same quarter of the last Financial year. In H1 FY 2026, Truck sales in India grew by 3.4% compared to H1 FY 2025.

Truck production increased by 5%, and the Exports of trucks grew by 15%.

The actual impact of the GST cut will be reflected in the second half of the financial year. GST reform 2.0 will boost demand in every sector. We have created a segment—or application-wise Truck demand forecast for 2040.

Tata Motors lost 2% of its market share, but all other brands, like Mahindra Trucks, Eicher Trucks, Scania, Maruti Suzuki, and TI Clean, increased or stabilized their market share in H1 FY 2026. However, Heavy-Duty truck sales registered different growth. BharatBenz Truck sales have also declined since May 2025. After the increase in truck demand, BharatBenz Truck sales are expected to resume positive growth.

Tipper and Tractor Trailer segment sales showed minor degrowth in H1 FY 2026.

OEMs like Montra Electric and Blue Energy are launching new models because many applications in India are suitable for Electric trucks. Our exclusive database is Truck Opportunities for various applications.

Subscribe to our Quarterly Indian Truck Market Key Insight Report and Forecast, email at Info@autobei.com

Indian Commercial Vehicles showed 6% growth in Production, 4% in Sales, and 19% in Exports in H1 FY 2026, which is an excellent improvement compared to Q1 FY 2026. ACG forecasted in our earlier articles that after Q2, the government will spend funds on development, which is one reason for the growth in the Indian Commercial vehicle Market.

Tata Motors is the market leader in the Indian CV segment, but is facing challenges from its competitors. Mahindra sold 10K units more in H1 FY 2026 compared to FY 2025. Ashok Leyland, Eicher, Maruti Suzuki, Mahindra, SML Isuzu, Force Motors, Isuzu Motors, and Volvo sold more vehicles than Tata Motors in H1 FY 2026 compared to the previous year’s H1.

Tata Motors is pursuing a multi-level strategy to increase its market share. The company is launching new models, developing an EV drivetrain, acquiring businesses, making Organizational changes, implementing Digitization, and engaging in aggressive marketing.

Electric Commercial vehicle OEMs like TI Clean Mobility, Toyota, JBM Auto, PMI, Pinnacle Mobility, and Switch Mobility registered double-digit sales growth in H1 FY 2026. Olectra sales declined but are expected to grow in H2 FY 2026. Scania CV sales more than doubled in the first half of FY 2026.

Indian MHCV Sales Q2 FY 2026:

Indian CV sales grew by 7% in Q2 FY 2026; however, Q1 FY 2026 was negative. The H1 FY 2026 Indian commercial Vehicle sales also increased by 1.9%. The market momentum is expected to continue for the next half year of FY 2026. The detailed report is available under our subscription package.

Indian LCV Sales Q2 FY 2026:

LCV sales showed impressive growth of 10% in Q2 FY 2026, compared to only 0.4% in Q1 FY 2026.

Indian CV brand-wise Market Share:

Tata Motors, Mahindra, Ashok Leyland, and Eicher control over 90% of the market share. Other OEMs Switch Mobility, Isuzu Motors, JBM Auto, PMI, TI Clean Mobility, Toyota, Pinnacle Mobility, Scania, Daimler, Blue Energy, IPl Tech, Propel, and Olectra are growing players, especially in the EV CV segment.

Indian Commercial Vehicle Competitor Tracking:

Due to the positive market sentiment and released news, funds supported increased sales of all major OEMs in the second quarter of the current Financial year.

The gap between Tata Motors’ and Mahindra’s sales is narrowing in the CV segment. A similar pattern has been noticed with Tata Motors and Ashok Leyland.

Subscribe to our Monthly Indian Commercial Vehicle Report and Data. Contact us at Info@autobei.com

We support many Startups, Venture capitalists, and established OEMs in setting up Electric Vehicle manufacturing in strategic locations in India. We create a complete project blueprint, from Market assessment to sales planning.

Greenfield projects require precise planning to succeed in the market. They also save significant costs and time, build customer trust, and create brand value. ACG has been engaged in such EV manufacturing projects since 2015. We have implemented multiple EV projects.

Before implementing Electric Vehicle manufacturing, we create scenarios based on business cases that guide the project’s feasibility. The Business case provides possibilities for Return on Investment, Cost breakdown, Expenses, Sales volume forecast, Risk Analysis, Contingency plan, Various EV policies and their impact on your business, etc., and the impact we will have if we change any of these dynamics to make the project profitable.

Even a small step, such as land acquisition or supplier selection, can save considerable costs and deliver high value to our client.

The Following Types of Vehicles are considered:

Electric Two-Wheeler – Scooter and Motorcycle
Electric Car
Electric Three Wheeler
Electric Truck
Electric Bus
Off-road Electric Vehicle

We offer the following services to manufacturing Electric Vehicles:

Product Idea, Product approval, Product costing, Product Market fit
EV Manufacturing Policy Analysis
EV Charging analysis
Sales Planning
Suppliers Comparison
Factory Design
Assembly line required
AI-based manufacturing processes and other functions
Detailed Budgeting
Brand Story and Advertising Budget
Marketing and Sales Strategy
Competitor Analysis
Market Forecast
Product Launch Strategy
Pricing Strategy
Target Customer Segment
GTM
Details of Manpower requirements
Financial Analysis

India’s EV Industry Shows Steady Growth Across Segments, showing robust growth of the Indian Automotive Industry from January 24 to September 2025. However, in August 2025, the Electric Vehicle Industry registered a 3.3% degrowth compared to August 2025. The GST cut on ICE vehicles was one of the reasons behind this trend.

ACG expects that the EV market in India will continue to grow strongly because of the expansion of charging infrastructure, affordable pricing, better range, Customer trust, and policy support from the state and central governments.

The EV dealership business model must still be re-innovated to make it feasible.

Segment-wise Electric Vehicle Sales in India:

Indian Registrations of two-wheeled electric Scooters are leading the EV volume because this segment has a better product-market fit. New Startups are trying to decode or win the Electric Motorcycle segment. Ola, Ather, TVS, and Bajaj are the leading players in the Two-Wheeler Electric Scooter segment. Ather plans to launch a couple of new products in the coming years.

The electric three-wheeler vehicle Segment registration volume increased 3X from May 2024 to September 2025. Pricing is a challenge or barrier to increasing Electric 3W. Many 3W vehicles come with a lead-acid battery. E Rickshaw has different market dynamics since it is limited to running a certain number of kilometers and specific areas of operation. 3W EVs are dominated by passenger carrier vehicles, and Goods 3W carrier sales are stagnant.

Electric Cars are the most attractive segment, and their sales grew by 2X in the last 20 months. This shows strong commitment by OEMs and interest by buyers.

Electric Trucks and Electric Buses volumes are small but expected to grow exponentially by 2030.

Subscribe to our monthly electric vehicle report and data for details on the Indian EV industry. Contact at Info@autobei.com

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Key Highlights of the Indian Automotive Market Forecast 2026 report and Data:

Drivetrain Type:

Segment:

Check the Monthly Indian Truck Data and Report Subscription Plan here. Contact us at Info@autobei.com

Electric Car Sales Surge 17% in Oct 2025:

Electric Two-Wheeler Sales Up 38% Despite 3.5% Share Dip:

Electric Truck Sales Up 27% in October 2025:

Electric Bus Sales in October 2025:

Electric Three Wheeler Sales in October 2025:

Indian Car Sales crossed half a million:

Brand-wise Indian Bus Market Share H1 FY 2026:

Check the Monthly Indian Bus Data and Report Subscription Plan.

Indian PV Brand-wise Market Share in H1 FY 2026:

BYD Monthly Car Sales Trend:

Indian MHCV Sales Q2 FY 2026:

Indian LCV Sales Q2 FY 2026:

Indian CV brand-wise Market Share:

Indian Commercial Vehicle Competitor Tracking:

Segment-wise Electric Vehicle Sales in India:

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