India Auto Sales Hit Record High in FY26

India's automobile sales reached a record high in FY26, with growth registered across every segment, according to the Society of Indian Automobile Manufacturers (SIAM). The rally was driven by a convergence of fiscal and monetary easing: tax cuts, revised income tax slabs that expanded disposable income, and lower interest rates that reduced the cost of vehicle financing. Passenger vehicle sales rose 8% year-on-year, while exports surged 24%, signaling strengthened global demand for Indian-manufactured vehicles. The export jump is particularly notable as it comes against a backdrop of broader geopolitical uncertainty weighing on global trade flows. Industry leaders flagged two headwinds to monitor: geopolitical risks that could disrupt supply chains or export markets, and rising input costs that may compress manufacturer margins if sustained. The domestic demand impulse, however, appears structurally supported by policy tailwinds rather than one-off factors, suggesting the sector's growth trajectory is unlikely to reverse sharply in the near term absent a significant macro shock.