India auto sales hit record FY26 levels as tax cuts and rate cuts fuel demand across segments

Exports surged 24% as domestic demand stayed resilient

India’s automobile sales reached a record high in FY26, boosted by tax cuts, easing interest rates and revised income tax slabs, according to SIAM. Growth spread across vehicle categories: passenger vehicles rose 8%, while exports climbed 24%. Industry leaders expect momentum to continue, even as global uncertainty, geopolitical risks and rising costs remain under watch.