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Society of Indian Automobile Manufacturers (SIAM) President Shailesh Chandra said India’s automotive industry continues to be a key driver of economic growth, contributing more than Rs 22.75 lakh crore to the economy. The industry also accounts for around 15 per cent of the country’s Goods and Services Tax (GST) collections and provides direct and indirect employment to more than 30 million people.  

Highlighted the industry’s performance across domestic and export markets in FY2025-26, he said passenger vehicle sales reached a record 4.6 million units in FY26, up 7.9 per cent year-on-year, while exports rose 17.5 per cent to an all-time high of 0.91 million units. The two-wheeler segment recorded its highest-ever domestic sales of 21.71 million units in FY26, a growth of 10.7 per cent year-on-year. Two-wheeler exports registered a growth of 23.4 per cent in FY26, amounting to 5.18 million units. Similarly, three-wheeler domestic sales grew 12.8 per cent to 8.4 lakh units in FY26, while exports jumped 50.1 per cent to 4.6 lakh units. The commercial vehicle industry clocked highest-ever domestic sales of 10.80 lakh units with a growth of 12.6 per cent in FY26, and exports grew at 17.4 per cent to 95,000 units.   

Alongside this growth, SIAM President said the industry has made significant strides in aligning with global and national priorities of sustainability, decarbonisation, and safety. He also said the entire auto industry moved to manufacturing fully E20-compliant gasoline vehicles from April 1, 2025. The move supports the government's objectives of reducing dependence on crude imports and strengthening energy security. As part of this initiative, in recent months, the auto industry has seen commercial launches and demonstrations of flex fuel vehicles by some OEMs.

Talking on electrification, he said the share of electric vehicles (EVs) in the new vehicle fleet continued to grow in double digits across passenger vehicles, two-wheelers and three-wheelers in FY26. Total EV registrations in India rose to 2.5 million units in FY26 from 1.97 million units in FY25, marking a 24.7 per cent increase. He noted that the strong momentum in EV adoption has been made possible through close collaboration across the industry, with the Government of India's PM E-DRIVE scheme providing a significant impetus to accelerate the transition.