Powered by tax relief, auto sales race to record 29.5 million in FY26

Business Standard
Written By Zainab Ashraf

India’s automobile sales are expected to reach a record 29.5 million vehicles in FY26, growing by over 12%. This rise is driven by strong rural demand, tax cuts, lower interest rates, and festive-season buying.

Electric vehicles (EVs) are growing quickly, with sales crossing 2.5 million units for the first time (up about 22%).

All major segments—especially two-wheelers, cars, and three-wheelers—saw growth, and EV adoption is increasing across public transport and everyday use.

In short: India’s auto market is booming, with EVs becoming a key part of future growth.

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Zainab Ashraf
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