India’s automobile industry delivered a mixed performance in the first quarter of 2025-26, with passenger vehicle exports reaching an all-time high even as domestic sales remained largely flat, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Monday.

Passenger vehicle sales crossed the one million mark for the second consecutive year in Q1, reaching 1.01 million units, though this represented a 1.4 percent decline compared to the same period last year. The segment’s performance was buoyed by utility vehicles, which now account for 66 percent of passenger vehicle sales and posted 3.8 percent growth, whilst passenger cars declined 11.2 percent.

The standout performer was exports, with passenger vehicles achieving record Q1 exports of 204,000 units, marking a 13.2 percent year-on-year increase. This surge was driven by stable demand across most markets, with particularly strong performance in the Middle East and Latin America, alongside recovery in neighbouring markets such as Sri Lanka and Nepal.

"The performance of the Auto industry was relatively flat, though the retail registration for Passenger Vehicles, Two-Wheelers and Three-Wheelers were marginally higher than the previous Q1," said Shailesh Chandra, President of SIAM.

The two-wheeler segment faced headwinds with wholesale sales declining 6.2 percent to 4.67 million units due to inventory correction across the industry. However, retail registrations increased 5 percent during the quarter, driven by the marriage season and positive demand sentiments. Two-wheeler exports showed robust growth of 23.2 percent to 1.14 million units.

Three-wheelers achieved their highest-ever Q1 sales of 165,000 units, representing marginal growth of 0.1 percent. The segment benefited from increased economic activity supporting urban transportation demand and easier financing options. Exports in this category surged 34.4 percent to 96,000 units.

Commercial vehicles posted a marginal decline of 0.6 percent to 223,000 units, though exports grew strongly by 23.4 percent to around 20,000 units.

Looking ahead to Q2, SIAM expressed cautious optimism despite ongoing challenges. The upcoming festive season is expected to drive demand, particularly for passenger vehicles and two-wheelers, whilst an above-normal monsoon could aid rural income recovery.

"With the upcoming festival season coupled with the benefits of RBI repo rate cuts, we expect consumer sentiments to improve," Chandra added.

The Reserve Bank of India's cumulative repo rate cuts of 100 basis points over the past six months are expected to gradually ease borrowing costs, potentially boosting consumer sentiment and affordability.

However, supply-side challenges persist, particularly the recent export licensing requirement from China on rare earth magnets, which has raised concerns for original equipment manufacturers across all categories.

"Sales of Passenger Vehicles in Q1 of 2025-26 de-grew by (-) 1.4 percent, posting sales of 1.01 million units as compared to Q1 of previous year," said Rajesh Menon, Director General of SIAM.

In June alone, passenger vehicle sales declined 7.4 percent to 312,849 units, whilst two-wheeler sales fell 3.4 percent to 1.56 million units. Three-wheeler sales bucked the trend with 3.8 percent growth to 61,828 units.

The industry's overall domestic sales fell 5.1 percent in Q1 to 60.75 million units, reflecting the challenging operating environment facing India's automotive sector.

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Skoda Auto India has marked its 25th anniversary in the country by re-introducing the Octavia RS in the country but in limited numbers as a Fully-Built Unit (FBU) at INR 4.99 million (ex-showroom).

At the core of the Octavia RS is a 2.0 TSI turbocharged petrol engine, which produces 195 kW (265) of power and 370 Nm of torque. Paired with a 7-speed DSG automatic transmission, the car accelerates from zero to 100 kmph in just 6.4 seconds, with a top speed limited to 250 kmph. It features progressive steering and sports suspension to aid handling.

The model is built on Skoda’s design language, featuring full LED Matrix headlights, LED tail lamps with dynamic indicators and glossy black styling elements. It sits on 19-inch Elias anthracite alloy wheels. On the inside, the cabin features Suedia/Leather upholstery with red contrast stitching, Sports front seats (with electric adjust, memory, heating and massage functions) and a virtual cockpit.

The Octavia RS is equipped with Skoda’s latest ADAS suite, which includes Adaptive Cruise Control (ACC), Autonomous Emergency Braking (AEB), Lane Assist and Intelligent Park Assist. Safety features are further enhanced with 10 airbags and a 360deg Area View camera.

The Octavia was Skoda’s first car in India in 2001. The RS variant first arrived in 2004 as the first turbocharged petrol engine passenger car in the country. The new launch is a symbol of Skoda’s commitment to combining legacy with performance in the Indian market.

Ashish Gupta, Brand Director, Skoda Auto India, said, “The response to the Octavia RS has been phenomenal. This iconic model has truly ignited the passion of driving enthusiasts across India, reinforcing the cult status that Octavia RS enjoys globally. As we celebrate 25 remarkable years of Skoda Auto in India, our commitment to delivering world-class cars remains stronger than ever. The RS badge symbolises more than just performance. It represents the emotional connection and trust our customers have in the Skoda brand. We are excited to welcome a new generation of enthusiasts into the Skoda family and continue building on the strong legacy and fandom that defines our brand in this market.”

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In a special event held at its facility in Neuburg an der Donau, Audi officially presented the FC Bayern Munich football squad with their new company cars for the upcoming season. The players had the opportunity to choose from a comprehensive selection of the brand’s latest fully electric and hybrid models, reflecting a diverse range of personal preferences and needs.

Team captain Manuel Neuer and several of his colleagues opted for the Audi Q8 SUV TFSI e quattro, while Alphonso Davies, Jamal Musiala and Michael Olise selected the high-performance, all-electric RS e-tron GT. Other choices included the Audi Q4 Sportback e-tron for young talent Tom Bischof and the spacious, seven-seat Audi Q7 SUV S line TFSI e quattro for Joshua Kimmich, catering to his family requirements.

The vehicle handover was part of a broader, action-packed day for the stars. They participated in the Audi driving experience, testing their skills on dynamic handling courses where the Audi RS e-tron GT performance was a particular source of excitement. The agenda also featured an exclusive look at the Audi F1 Project, offering the team a rare behind-the-scenes tour. They visited the assembly workshop for V6 hybrid engines, observed the dynamic simulator, Mission Control Room, and saw the engine test benches, gaining a deeper understanding of the sophisticated technology that powers the future of Formula 1.

Adding to the significance of the day, 100 Audi employees, chosen through an internal competition, were given the chance to meet the football stars. For 16 of these employees, the experience was especially memorable as they had the honour of personally presenting the players with the keys to their new vehicles, creating a unique and lasting connection between the automotive brand and the celebrated team.

Marco Schubert, Member of the Board for Sales and Marketing at Audi AG, said, “It’s great to see how enthusiastic the players are about driving our flagship electric models. It shows just how emotionally engaging electric mobility can be. The FC Bayern players chose vehicles that impressively reflect the diversity of our range – from the compact Q4 e-tron series to the powerful Audi Q8 SUV TFSI e quattro and sporty RS e-tron GT performance. Everyone found a model that was right for them.”

Jan-Christian Dreesen, CEO, FC Bayern, said, “The handover of vehicles from Audi to FC Bayern is a longstanding tradition that reflects our dependable partnership and is always a special event for our players. After 23 successful years together, we continue to pursue the same ambitious goals and spur each other on to peak performance. That connects us on and off the field! In this day and age, such a long-term partnership is not commonplace, and we all truly value it.”

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Nissan Motor India has expanded its CNG retrofitment programme to include the new Nissan Magnite BR-10 EZ-Shift (AMT). This, the company shared, follows customer response to the programme, which was launched earlier this year for the Manual Transmission (MT) variant.

The government-approved CNG retrofitment is available for the Magnite with the 1.0 litre naturally aspirated petrol engine and comes with a 3-year or 100,000 km warranty.

In response to customer feedback, the company has also introduced an integrated fuel-filling system where the CNG filling valve is now located within the standard fuel-filling lid.

Nissan is offering the CNG retrofitment kit at an MRP of INR 71,999, a price resulting from the recent GST rate reduction from 28 percent to 18 percent. This price has been effective since 22 September 2025 and remains unchanged despite the upgrade.

The retrofitment kit is available across 13 states in India through authorised Nissan retrofitment centres. The programme was initially launched across seven states and has since expanded to six more, including Rajasthan, Bihar, Jharkhand, Madhya Pradesh, Chhattisgarh and Tamil Nadu.

Saurabh Vatsa, Managing Director, Nissan Motor India, said, “We are delighted to take another step forward in our CNG journey with the expansion of the retrofitment program to the New Nissan Magnite BR10 EZ-Shift (AMT). This agile and quick development reflects our continued focus on customer needs, combining Nissan’s engineering excellence with affordability and convenience. The new fuel-lid integration and reduced kit price make the ownership experience even more seamless and rewarding. We remain committed to offering practical, value-driven mobility solutions that enhance customer satisfaction and strengthen our brand’s trust.”

The New Nissan Magnite is also offered with a 10-year Extended Warranty Plan and has a 5-star rating in overall passenger safety from GNCAP.

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Tata Motors Passenger Vehicles (TMPV), one of the leading passenger vehicle manufacturers, has announced the inclusion of Advanced Driver Assistance Systems (ADAS) technology across its Nexon lineup, which was also the top-selling model in the country last month.

The Nexon SUV was the first car in the country to receive a 5-star safety rating and holds dual 5-star ratings from both GNCAP and BNCAP. The addition of ADAS features is intended to offer a higher level of safety.

 Tata Motors has introduced the exclusive Red Dark edition, available in petrol, diesel and CNG powertrains, starting at INR 1.24 million. The ADAS features are included in the new Fearless +PS DCA ADAS persona, priced at INR 1.35 million (ex-showroom, Pune).

The new Red #DARK edition pricing (ex-showroom, Pune) is as follows: Petrol MT at INR 1.24 million, Petrol DCA with ADAS INR 1.38 million, CNG MT at INR 1.33 million, Diesel MT at INR 1.35 million and Diesel AMT at INR 1.41 million.

The ADAS suite offers safety technologies that are designed to enhance driver awareness and help prevent potential collisions. Key features include: Autonomous Emergency Braking (AEB), Forward Collision Warning (FCW), Lane Keep Assist (LKA), Traffic Sign Recognition (TSR), High Beam Assist (HBA), Lane Departure Warning (LDW) and Lane Centering System (LCS).

Vivek Srivatsa, Chief Commercial Officer, Tata Passenger Electric Mobility, said, “Since its debut in 2017, the Nexon has redefined the SUV segment with its bold design, thrilling performance, and uncompromised safety. As India’s first car to pioneer the safety revolution, the Nexon has set new benchmarks in vehicle safety. Building on this strong foundation, the Nexon has become the No. 1 selling car in India in September 2025 — a major milestone that reflects the trust and preference of customers across the country. As part of this celebration, we are introducing the Red #DARK Edition and expanding the Nexon portfolio with advanced safety technologies. With a wide range of powertrains, segment-leading features, and striking styling, the Nexon continues to cater to every lifestyle. The recent GST amendments further strengthen its value proposition, making it the unanimous choice of Indian customers. This milestone reinforces our commitment to delivering products that embody progress, performance, and purpose, while evolving to meet the aspirations of modern Indian customers.”

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