Car Sales Increase in October Due to Festive Season

Passenger vehicle sales in India remain low for the third consecutive month in June. Factors attributed to slow sales volume are high base and reduced post-pandemic pent-up demand. Sales rose 3.7% from the previous year but slightly declined from May, with 3,40,784 units sold compared to 3,28,710 last year. SUVs constitute 53% of sales.

The shift in generational mindset in India is fuelling the growth of luxury car sales. According to industry data, the sale of luxury cars from brands like Lamborghini, Ferrari, McLaren and Aston Martin are experiencing robust demand in the domestic market. Interestingly, in the year 2023, sales more than doubled to 1000 units in the top-end car segment.

From October 1, 2026, the Indian government plans to make car mileage testing with the air-conditioning system running mandatory for all passenger cars sold in the country. The draft rule, proposed by the Ministry of Road Transport and Highways, is aimed at giving car buyers more realistic and practical fuel-efficiency figures that better reflect on-road conditions and help them make smarter purchase decisions.

Kia will unveil its entry-level EV2 at the 2026 Brussels Motor Show on 9 January. Likely headed to India, the compact EV retains its concept-inspired design and is expected to offer a 400-volt setup, a single front motor and two battery choices, delivering an estimated 450-500 km range.