Effect of cheap bikes-scooters, vehicle sales in India set a new record, know what changed

India Auto Sales Record 2026: India’s automobile market is growing strongly even amidst economic fluctuations worldwide. Even before the end of the financial year 2026, the country has moved towards creating a new record. India is already the world’s third largest auto market, and it is now estimated that total vehicle sales could cross 27 million units in FY2026. This figure can surpass the old record of 2.62 crore units of FY2019, which will be a big achievement in itself.

Two-wheelers took command

The biggest contributor behind this rapid growth is the two-wheeler (2W) segment. According to data from the Society of Indian Automobile Manufacturers, more than 1.97 crore two-wheelers have been sold in the first 11 months of FY2026. This represents an increase of about 10% compared to last year. It is estimated that this figure may reach 2.17 crore units in the entire financial year.

GST 2.0 becomes a gamechanger

A major reason behind this rise is the new tax policy GST 2.0, which came into effect at the end of September 2025. Under this change, GST on two-wheelers up to 350cc was reduced from 28% to 18%. Due to this, bikes and scooters became cheaper for the common people, which had a direct impact on sales. Two-wheeler sales witnessed a massive growth of 22% between October 2025 and February 2026.

Tremendous boom in scooter segment

The scooter segment is also growing rapidly. More than 73.5 lakh scooters have been sold in the first 11 months of FY2026, which is the highest figure so far. This number is expected to reach 80 lakh in the entire year. Scooter sales have increased by 17%, while the growth of the motorcycle segment has been only around 6%.

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Growing craze for electric vehicles

Electric vehicles also have a big contribution in this growth. More than 13 lakh electric two-wheelers have been sold so far in FY2026. The special thing is that the share of EV in the scooter segment has reached about 13%. Due to this, the share of scooters in the market has increased to 37%, while the share of motorcycles has decreased to 60%.

India’s auto sector at new heights

India’s automobile sector is changing rapidly. Cheaper prices, better options and increasing demand for electric vehicles have given a new direction to the market. FY2026 could prove to be a historic year for India’s auto sector.