In July, the pace of wholesale automobile shipments accelerated as passenger vehicles (PV), two-wheeled, and three-wheeled transport demonstrated double-digit growth, aided by the start of the holiday season. Manufacturers consequently increased production.
According to data published by the Society of Indian Automobile Manufacturers (SIAM), PV deliveries to dealers grew by 34.3% compared to the same month last year, reaching 457,810 units in July, whereas this figure was 340,772 units last year.
Two-wheeler shipments increased by 22.6%, totaling 1.92 million units, while the sales volume of three-wheeled transport grew by 33.4%, reaching 92,560 units. SIAM noted that all three segments recorded their highest sales for July.
Rajesh Menon, CEO of SIAM, stated that the Indian automotive industry showed its strongest sales in July, noting confident double-digit growth in the passenger vehicle, three-wheeled, and two-wheeled transport segments. He added that this positive momentum is continuing over several months as the industry enters the holiday season amid expectations of high consumer sentiment.
The figures indicate that the acceleration in July was not limited to one category of vehicles. The rise in domestic shipments was accompanied by an overall production increase of 24.8% and an export growth of 25.1%. This suggests that the increase resulted from a combination of domestic demand, inventory building for the holidays, and stronger foreign supplies, rather than just dealer restocking.
The growth in the two-wheeler segment was broad. Scooter shipments increased by 23.7% to 798,190 units, and motorcycle volume grew by 20.7% to 1.07 million units. Moped shipments jumped by 48.6%, albeit from a smaller base, reaching 50,497 units.
Cumulative figures showed that scooters continued to grow faster than motorcycles. From April to July 2026, wholesale scooter sales increased by 28.9% to 2.98 million units, while motorcycle shipments grew by 15.6% to 4.38 million units. The total volume of two-wheeler wholesale sales expanded by 20.9% to 7.55 million units.
Production trends also indicated a growing lean towards scooters. Scooter production surged by 39.1% in July, significantly exceeding the 23.7% growth in domestic shipments. In comparison, motorcycle production grew by 16.9%, lagging behind both domestic shipments and exports. This suggests that manufacturers were stocking up on scooters before the holiday quarter, while stronger motorcycle supplies were partially covered by existing inventories.
Exports became another key factor for two-wheeler manufacturers. Foreign shipments grew by 27.7% in July, reaching 554,258 units. Over the period from April to July, exports increased by 34.1% to 2.11 million units, outpacing the 20.9% growth in domestic wholesale sales.
Motorcycle exports grew by 29.8% in July and by 33.4% over the April to July period. Scooter exports increased by 23.8% during the month and by 42.8% over the four-month period. Faster export growth provided manufacturers with a second engine of growth alongside the recovery in domestic demand.
In SIAM's detailed data for PV, excluding Tata Motors and certain luxury items, domestic shipments in July grew by 31.2% to 395,199 units. Passenger car sales volume increased by 37.6%, and commercial vehicle shipments grew by 29.2%. PV production in July increased by 26.4%, but exports only grew by 3.9%. The 14% increase in commercial vehicle exports was partially offset by a 3.6% decrease in passenger car shipments. This discrepancy shows that the growth in PV in July was driven predominantly by domestic shipments, not exports.
From April to July, domestic PV shipments grew by 27.1%, outpacing production growth of 19.1%. PV exports increased by 7.6%, while commercial vehicle shipments grew by 22.5%, despite a 5% decline in passenger car exports.
Overall, the production of all types of vehicles—PV, three-wheelers, two-wheelers, and quadricycles—reached 3.37 million units in July, and their cumulative exports increased to 677,122 units.
