India’s automobile industry recorded its strongest-ever July performance in 2026, with passenger vehicles, two-wheelers and three-wheelers all posting double-digit growth as domestic demand remained robust ahead of the festive season. Passenger vehicle dispatches rose 34.3 per cent year-on-year to a record 4,57,810 units in July, compared with 3,40,772 units in the same month last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM). Overall production across passenger vehicles, three-wheelers, two-wheelers and quadricycles stood at 33,70,958 units during the month.
Passenger vehicles emerged as one of the strongest-performing segments during July, with dispatches climbing by more than a third from a year earlier.
At 4.58 lakh units, the segment recorded its highest-ever sales for the month of July. The sharp increase reflected stronger demand as well as manufacturers building inventory ahead of the festive period.
The numbers also continued the strong performance seen during the first quarter of 2026-27, when passenger vehicle sales reached a record 1.27 million units, up 25.9 per cent year-on-year.
Two-wheelers also registered robust growth, with domestic sales increasing 22.6 per cent to 19,23,483 units in July from 15,69,120 units a year earlier.
Motorcycle sales climbed 20.7 per cent to 10,74,796 units, while scooter sales jumped 23.7 per cent to 7,98,190 units. Mopeds recorded the fastest percentage growth within the segment, rising 48.6 per cent to 50,497 units.
The broad-based increase indicated that the improvement was not restricted to a particular category of two-wheelers.
During April-July, overall two-wheeler wholesales expanded 20.9 per cent to 7.55 million units. Scooter sales during the four-month period rose 28.9 per cent, while motorcycle dispatches increased 15.6 per cent.
The three-wheeler segment maintained the industry's strong momentum, with domestic sales rising 33.4 per cent year-on-year to 92,560 units from 69,403 units in July 2025.
Passenger carrier sales increased 32.9 per cent to 77,994 units, while goods carriers posted a 40.3 per cent jump to 12,896 units.
E-rickshaw sales increased 7.5 per cent to 1,132 units, while e-cart volumes rose 16.2 per cent to 538 units during the month.
Like passenger vehicles and two-wheelers, three-wheelers registered their highest-ever July sales.
SIAM Director General Rajesh Menon said the industry had delivered its strongest-ever July performance, with double-digit growth across the three major vehicle segments.
The momentum has continued for several months as the automobile industry heads into the festive season with expectations of healthy consumer sentiment, he said.
The July performance was also supported by higher production and exports. Overall vehicle production increased 24.8 per cent year-on-year, while exports grew 25.1 per cent. Two-wheeler exports alone jumped 27.7 per cent.
The figures suggest that the industry's expansion was driven by a combination of domestic demand, inventory creation ahead of the festive season and stronger overseas shipments.
With passenger vehicles, two-wheelers and three-wheelers simultaneously registering record July volumes, the latest SIAM numbers point to broad-based momentum in India's automobile market heading into the crucial festive sales period.