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flag India's vehicle sales rise in FY2026, led by SUVs, exports, and policy support despite short-term dips.

flag India’s passenger vehicle sales are projected to grow 1% to 4% in FY2026, driven by new models and policy support, though August sales dipped due to buyer delays ahead of potential GST cuts. flag Exports rose 25% in August and 15% year-to-date. flag Commercial vehicle wholesale volumes grew 6% year-on-year in August, with retail up 3.2%, while light commercial vehicle sales rose 8.2%, facing competition from pre-owned vehicles and electric three-wheelers. flag Medium and heavy commercial vehicle sales surged 9.2% despite monsoon disruptions, and bus sales are expected to grow 8% to 10% due to replacement demand. flag SUVs remain dominant, making up 65% to 66% of passenger vehicle sales. flag Favorable economic conditions, rising construction and mining activity, and festive season demand are supporting overall sector growth.

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