Sales of mini cars rose 86.3 per cent year-on-year in the first half of 2026-27 (FY27), signalling a recovery in India’s entry-level passenger vehicle market after a prolonged period of weak demand.
Domestic wholesales of mini cars, comprising Maruti Suzuki’s Alto and S-Presso under the Society of Indian Automobile Manufacturers’ (SIAM) classification, increased to 75,269 units during April-September 2026 from 40,405 units a year earlier.
The recovery continued in September, when mini car sales rose 39.8 per cent to 10,079 units from 7,208 units in the corresponding month last year.
The sharp increase, albeit on a relatively low base, comes amid improving affordability following GST reforms and stronger demand across the automobile industry.
The broader compact car segment, which includes models such as Maruti Suzuki Swift, Baleno, WagonR and Dzire, Hyundai Grand i10 and i20, Tata Tiago and Altroz, and Honda Amaze, also recorded growth.
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H1 wholesales increased 20.8 per cent to 668,788 units from 553,595 units.
However, mid-size passenger cars, including the Honda City, Hyundai Verna, Skoda Slavia and Volkswagen Virtus, saw sales decline 22.4 per cent to 20,840 units.
Overall passenger car wholesales rose 23.1 per cent to 766,200 units during April-September, while utility vehicle sales increased 31.4 per cent to 1.78 million units.
According to SIAM data released on Thursday, passenger vehicle wholesales rose 30.7 per cent to 1.36 million units during the July-September quarter, compared with 1.04 million units a year earlier.
Utility vehicles continued to dominate, accounting for nearly 68 per cent of passenger vehicle sales during the quarter.
September passenger vehicle wholesales increased 21.8 per cent to 454,574 units, compared with 373,347 units a year earlier.
SIAM attributed the strong performance to improved affordability following GST 2.0, resilient rural and urban demand, financing support and new product offerings.
“The Indian automotive industry delivered a strong performance in the first half of FY2026-27, following a robust second quarter and a strong September 2026,” said Shenu Agarwal, president, SIAM.
He attributed the performance to improved affordability, resilient demand, freight movement and infrastructure-led economic activity.
Commercial vehicle wholesales rose 28.7 per cent to 309,063 units during Q2 FY27, with medium and heavy commercial vehicles (M&HCVs) growing faster than light commercial vehicles (LCVs).
M&HCV goods carrier sales increased 38.4 per cent to 102,908 units, compared with 74,364 units a year earlier.
LCV goods carrier sales rose 23 per cent to 172,127 units.
Overall M&HCV sales increased 37 per cent, against 23.8 per cent growth for LCVs.
SIAM attributed the recovery to infrastructure spending, strong freight movement, replacement demand for older trucks and buses, and expansion of logistics fleets.
Scooters emerged as the principal growth driver within the two-wheeler market, with Q2 wholesales rising 27.7 per cent to 2.66 million units, compared with 2.08 million units a year earlier.
Motorcycle sales, in contrast, grew 7.4 per cent to 3.62 million units.
Overall two-wheeler wholesales increased 15.2 per cent to 6.43 million units during the quarter.
The divergence was sharper in September, when scooter sales surged 34.1 per cent to 995,576 units, while motorcycle sales increased just 2.8 per cent to 1.41 million units.
SIAM expects the industry to maintain positive growth momentum during the second half of FY27, although growth rates could moderate against a higher base.
It flagged inflationary pressures, potential interest rate increases and geopolitical uncertainties as risks to the outlook.