New Delhi, July 15 : India's passenger vehicle sales crossed the one million mark in the April-June quarter (Q1) of 2025-26 with exports registering a double-digit growth, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday.

'Passenger Vehicles, comprising utility vehicles and cars, saw their highest ever exports in Q1 of 2025-26 of 2.04 Lakh units, registering a growth of 13.2 per cent over Q1 of 2024-25,' according to the SIAM statement.

Export growth in this segment was driven by stable demand across most markets, with strong performance in the Middle East and Latin America. Revival in neighbouring markets like Sri Lanka and Nepal, rising demand from Japan, and growing exports under

FTAs such as Australia also contributed to the overall uptick, the statement said.

Exports of two-wheelers shot up to 1.14 million units with a robust growth of 23.2 per cent in Q1 of 2025-26, over Q1 of last year. This growth was driven by a revival in neighbouring markets and continued growth momentum across key export markets, according to SIAM data.

As many as 0.96 Lakh units of three-wheelers were also exported with a growth of 34.4 per cent in Q1 of 2025-26, as compared to last year's Q1.

Exports of Commercial Vehicles also posted a strong growth of 23.4 per cent in Q1, with around 0.2 lakh units being shipped out to foreign markets.

This is the second time in a row that passenger vehicle sales in Q1 have surpassed the one million mark. However, due to lower sales in the later part of the quarter, sales in Q1 were lower by 1.4 per cent at 1.01 million units as compared to Q1 of 2024-25.

The two-wheeler segment posted sales of 4.67 million units in Q1 of 2025-26, resulting in a degrowth of 6.2 per cent, as compared to the same period of last year, as there was some inventory correction in the Industry.

However, while the wholesale sales declined, two-wheeler retail registration increased by 5 per cent in Q1, driven by the marriage season and positive demand sentiments.

The share of the scooter segment in two-wheelers increased in Q1 FY2025-26 over last year by 2.15 per cent.

The three-wheeler segment posted its highest ever Q1 sales of 1.65 lakh units in 2025-26, especially driven by the passenger carrier sub-segment.

The sustained performance of the three-wheeler segment is driven by factors, including increased economic activity supporting transportation, creating urban demand, SIAM said.

The retail registration of the cargo segment continues to grow well, reflecting the increased demand for intracity low-load cargo. Easier financing options also helped in supporting this momentum, the statement explained.

The commercial vehicles segment posted a marginal degrowth of 0.6 per cent compared to Q1 of last year, with sales of 2.23 Lakh units.

However, within the commercial vehicle segment, passenger vehicles posted growth, indicating continued momentum in public transportation.

Looking ahead to Q2, the overall industry outlook remains cautiously optimistic. While the challenges from Q1 may continue to linger in the near term, several positive macroeconomic and seasonal indicators could support a gradual recovery, SIAM said.

The upcoming festive season typically serves as a demand driver, particularly for passenger vehicles and two-wheelers, and could help uplift consumer sentiments.

An above-normal monsoon is likely to aid rural income recovery, which is especially important for two-wheelers and entry-level vehicles that rely heavily on rural demand.

The RBI's cumulative repo rate cuts of 100 basis points over the past six months are expected to gradually ease borrowing costs, which could positively impact the auto sector by improving affordability and boosting consumer sentiment in the coming months, the statement said.

However, the supply side challenges, especially the recent export licensing requirement from China on rare earth magnets, have been a concern for vehicle manufacturers, the statement added.

/IANS