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Vehicle sales in India crossed 60 lakh units in the first quarter of 2025-26, with Maharashtra and Uttar Pradesh emerging as the top markets across categories, according to data from the Society of Indian Automobile Manufacturers (SIAM). While Maharashtra dominated in cars and trucks, Uttar Pradesh remained the country’s largest market for two- and three-wheelers.
“Uttar Pradesh is largely a rural market where public transport is limited, so motorcycles and three-wheelers are natural choices. That is why the state consistently shows strong numbers in these categories,” said Vinkesh Gulati, former president of the Federation of Automobile Dealers Associations (FADA).
In passenger vehicles, sales crossed 10.12 lakh units in the April–June quarter. Maharashtra emerged as the largest state market, accounting for nearly 12% of the total at 1.19 lakh units, followed by Uttar Pradesh (11.3%), Gujarat (7.6%), Karnataka (7.2%) and Haryana (6.8%). Maharashtra’s lead, analysts pointed out, reflects both purchasing power and lifestyle. “Maharashtra has a higher standard of living, which reflects in stronger passenger car sales. In contrast, UP’s strength lies more in two-wheelers and three-wheelers as it is densely populated,” Gulati added.
The country’s two-wheeler market, the largest driver of India’s automobile sector, recorded 46.75 lakh units in the quarter. Uttar Pradesh maintained a commanding lead with 17.5% of the total sales at 8.18 lakh units, followed by Maharashtra (10.3%), Tamil Nadu (7.3%), Bihar (6.9%), and Madhya Pradesh (6.4%). “UP is a state where people tend to spend rather than save. That makes it naturally buoyant for categories like motorcycles and scooters,” said Hemal N Thakkar, Senior Practice Leader & Director at CRISIL.
Thakkar pointed out that events such as the Maha Kumbh Mela also had a ripple effect on the market. “The Kumbh Mela brought a surge of cash flow into the state, from tea vendors and street hawkers to hotels and tourism. That liquidity found its way into vehicle demand, particularly two-wheelers,” he explained.
Saurabh Agarwal, Partner at Ernst & Young, said the two states highlight the multi-dimensional nature of India’s auto demand. “In UP, the economic boost from the Maha Kumbh Mela, along with the state government’s move to waive registration fees on hybrids, gave a clear push to two- and three-wheeler sales. Maharashtra, meanwhile, continued to lead on the back of its strong economy, supported by high GST collections, strong consumption, and rising infrastructure like new expressways that are improving connectivity,” he said.
Three-wheelers, the backbone of last-mile urban transport, saw sales touch 1.65 lakh units during the quarter. Uttar Pradesh once again led the category with 13% of the total sales, or over 21,000 units, ahead of Maharashtra’s 11.5%. Gujarat and Karnataka followed with 9.4% and 8.9% respectively.
Commercial vehicles, too, mirrored this state-wise pattern. Sales reached 2.23 lakh units in Q1 FY26, with Maharashtra topping the chart at 14.2% (32,188 units). Uttar Pradesh followed at 8.6%, with Tamil Nadu (8.5%), Gujarat (7.9%) and Rajasthan (6.5%) close behind. “Truck sales have risen sharply in Maharashtra, supported by the industrial and manufacturing hubs around Nashik and Pune. Wherever there is manufacturing activity, commercial vehicle demand is stronger,” Gulati noted.
According to SIAM, vehicle sales in the quarter fell by around 5% compared to last year. “This quarter has been tough, with overall vehicle dispatches down by around 5 percent compared to last year. Weak consumer sentiment and economic uncertainty such as US tariffs and rare earth clearly weighed on demand,” Gulati said, adding that changes in GST, festive season buying and rural sentiment will be crucial going forward.
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