India’s Auto Retail Grows in Q2 FY26: Maharashtra Leads PV, UP Tops Two-Wheelers as Regional Demand Rebounds

India’s automobile market posted a steady rise in the second quarter of FY 2025–26, with fresh numbers from the Society of Indian Automobile Manufacturers (SIAM) highlighting renewed consumer activity across categories.

Passenger Vehicle (PV) sales reached 10.39 lakh units, marking a 12.7% increase over last year. The western region led with 3.44 lakh units, supported heavily by Maharashtra, which topped the country with 1.32 lakh cars and SUVs. Uttar Pradesh, which recorded a 9.7% rise in PV sales, followed next, ahead of Gujarat, Karnataka and Kerala. Industry observers note that the segment benefited from improving supply chains and a growing preference for compact SUVs and premium hatchbacks.

UP dominates two-wheeler volumes

Two-wheelers remained the largest segment with 55.62 lakh units sold in Q2. Uttar Pradesh continued as India’s biggest two-wheeler market with 6.93 lakh units, driven by strong commuter demand and improving rural liquidity. Maharashtra, Gujarat, Tamil Nadu and Rajasthan completed the top five. The western zone once again led region-wise with 19.33 lakh units. Dealers say the revival in rural purchasing power, coupled with new model launches in the commuter segment, played a key role in lifting volumes.

Also Read: Passenger Vehicle Retails Hit Record 5.57 Lakh In October, Driven By GST 2.0 And Rural Demand: FADA | Republic World

Three-wheeler demand driven by last-mile mobility

The three-wheeler category logged 2.29 lakh units, buoyed by expanding urban and last-mile transport needs. Uttar Pradesh headed the charts with 28,000 units, followed by Telangana, Gujarat, Maharashtra and Karnataka. In contrast to other segments, the southern zone led three-wheeler sales with 0.77 lakh units, reflecting increased adoption of shared mobility and small cargo carriers in metropolitan areas.

Maharashtra tops CV market

Commercial vehicle sales touched 2.40 lakh units, with Maharashtra firmly at the top at 37,000 units, reflecting strong freight movement and infrastructure-linked activity. Gujarat, Uttar Pradesh, Tamil Nadu and Karnataka followed, while the western region dominated again with 92,000 units. Fleet operators indicate that rising construction activity and stable financing conditions supported demand.

Analysts say improving macro indicators and festive-season buying are likely to sustain the industry’s momentum into the second half of the fiscal.